If Komex or a partner has its own ships, the costs are less drastic than one might think.
I pointed out the other night that Mittal has its own shipping fleet, so for the sake of example, lets use that.
I am not saying there is any connection with Mittal. We do not even know 100% that we have the correct Komex. THIS IS ALL SPECULATION FOR EXAMPLE!!!!
FYI Poland is a leading producer of coal, so that is why there are several industries that process steel and other items that require extreme heat centered in and around Poland.
But anyways, say Mittal has a shipment of Steel bound for the US. We know Mittal is tied with the Komex we think is involved. What do those ships bring back? Who knows, perhaps nothing.
Mittal requires refractory materials for thier process. Komex is a refractory manufacturer and needs different minerals to manufacter its products.
Komex contracts with Mittal to bring back materials from the US pit belonging and/or leased to Phoenix after it dumps its steel load. So what extra costs are associated with doing that? Labor and Fuel. The ships have to return anyway for the next load.
The biggest cost additive is probably going to be the fuel, but wait, Phoenix has fuel located near the port. Phoenix contracts with Mittal for fuel at a discount, which almost eliminates the extra fuel consumed by returning with a heavier load than unloaded. IF Progas lines were used, well that woudl be a dream deal right? Mittal ships do not come back empty and everyone profits, everyone happy....well almost.
Speculation, but definitely plausable.
Regards,
Fizzlegig
