Yes, but do you have any answer to my questions?
“Cost savings were minimal, amounting to about 6.6 cents per gallon on West Coast routes.”
That is the SAVING, what would it be WITHOUT the “saving” of using JA exempt ships to carry petrol from Gulf Coast to the West Coast
Probably 6.6 cents higher. Do you have a hard time reading the article?
Basis for my questions are from the article:
Any your answer is??
Let’s add to the complexity: how would the price differential and trading pattern be different if California suspended the mandatory use of Carbob temporarily?
What if California had not forced their refiners to close and thereby shift trading patterns? After Gulf coast refiners allocated more throughput to Carbob, average voyage lengths, time to delivery and Panama canal transits have increased. The JA waiver should likely be studied in that calculus.
What the waivers have shown is that there sufficient cargo to warrant more ships. The cost of building a US ship is just so much more expensive to justify from a business perspective. Get the cost to build down and I’m sure you’d see more ships.
Math is hard.