Is There a Coal Shortage?

 
Vinmaker
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Post by Vinmaker » Tue. Sep. 30, 2014 8:46 am

Hello everyone,

I was just wondering if everyone is experiencing a shortage of coal from their suppliers?

I usually buy my coal from Squire Lumber in Monson, MA but they have been out of nut coal. They have been reliable in the past but for some reason they either dropped the ball this year or they are getting slammed because of the cold winter last year. I feel it is the later. So the run on coal could be causing a shortage. I am getting nervous because I burned through it all last year and need to get coal soon.

I ordered the coal in August and still nothing.

Does anyone know what is causing the problem?

Thanks,

Vin.


 
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Richard S.
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Post by Richard S. » Tue. Sep. 30, 2014 8:55 am

Nut and rice are the two most popular sizes. Usually around this time of the year you might see some minor shortages but they disappear in a few weeks. Same thing can happen around late January/February especially if there is long freeze. That's when people will be getting their second load and the breakers may not be running.

That said if I was coal dealer with coal yard I'd already have my stocks in place to take advantage of the summer price and to prevent myself from not having coal. You need a lot of money and space to do that.

 
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Rob R.
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Post by Rob R. » Tue. Sep. 30, 2014 9:04 am

When does your dealer expect to get a delivery? It isn't rocket science, their supplier should be able to estimate when their load will arrive.

I had no problems at all getting two loads of rice in August, and my local dealers seem to have plenty of inventory.

 
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Post by gaw » Tue. Sep. 30, 2014 9:07 am

Where I buy mine they do not have any stockpiled. Sale were steady all year long and there could be shortages come this winter. This is just speculation because the steady summer sales could translate to softer winter sales but that remains to be seen.
Trust me, they are still digging it out of the ground. I don’t know what the situation is with the big guys like Reading and Blashack or why your supplier is having problems getting coal.

 
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Post by Vinmaker » Tue. Sep. 30, 2014 10:03 am

My supplier carries Blashack. Not sure if that is the problem or what. But something is causing the shortage.

 
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Post by McGiever » Tue. Sep. 30, 2014 10:12 am

It is not a supply issue...it is all your distributors doings.
He/they already have your money...where's the incentive to deliver?

 
Vinmaker
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Post by Vinmaker » Tue. Sep. 30, 2014 10:50 am

McGiever wrote:It is not a supply issue...it is all your distributors doings.
He/they already have your money...where's the incentive to deliver?
lol. So true my friend. They sure do charge you quick.


 
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Post by titleist1 » Tue. Sep. 30, 2014 11:25 am

I picked up a load from my normal dealer in southern Lancaster county, Pa last Saturday and he said that Blaschak told him their rice, pea and stove sizes are projected to be in short supply this year they are processing mostly nut size. I have dealt with him for many years and he is the driver that picks up their loads from Blaschak so I don't doubt his story. Stock up now if you have the space.

 
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Post by Normy » Tue. Sep. 30, 2014 11:44 am

Not a shortage so to speak, supply and demand principles at work here I would speculate. A lot of coal is still being sent to China and overseas just like our oil. The coal is there for the getting but majority is sold at much higher prices to foreign buyers and the remainder of which to "us folks" are waiting and paying inflated prices because of this.

Of course this is only my opinion and I have nothing to back this up.

Coal Rocks!!

 
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Post by Richard S. » Tue. Sep. 30, 2014 11:54 am

Rob R. wrote:When does your dealer expect to get a delivery? It isn't rocket science, their supplier should be able to estimate when their load will arrive.
If they don't have contract or not a lot of volume that may not be the case. The breaker is going to take care of their contracts first and the large volume dealers that are there day in and day out second.

 
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Post by Rob R. » Tue. Sep. 30, 2014 1:10 pm

I guess it also depends on the supplier. Whenever I have ordered a load they have given me an estimated delivery date based on their queue of orders...I don't think it has ever been off by more than a week.

 
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Post by Vinmaker » Tue. Sep. 30, 2014 1:24 pm

titleist1 wrote:I picked up a load from my normal dealer in southern Lancaster county, Pa last Saturday and he said that Blaschak told him their rice, pea and stove sizes are projected to be in short supply this year they are processing mostly nut size. I have dealt with him for many years and he is the driver that picks up their loads from Blaschak so I don't doubt his story. Stock up now if you have the space.
Thanks. I will have to stock up. I will have to make space for extra once I can find a supplier that actually has coal. There is no telling how long this shortage is gonna last. I am not wed to only Blaschak coal. Any would be fine. One cannot be picky when supplies are out. I would hate to switch over to the Bituminous stuff. Not even sure where I could find it. That is also gonna be a learning curve to burn that. Do they even sell that stuff in bags?

 
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Richard S.
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Post by Richard S. » Tue. Sep. 30, 2014 2:31 pm

Just so it's clear Vinmaker I have no clue how good the supply is, any shortages at this time of the year are usually short lived. The worst I saw it was about month in 2005 or '06 where they were selling the rice as fast as they could make it and I was limited to about 10 ton a day. Where I was getting it the worse case was they could of "made" rice by grinding up the pea but they would of had to start charging more for it because of the extra processing.

Don't go jumping the gun, contact who your supplier and voice your concerns and tell them unless you can get a reasonably close date for delivery you'll have to look elsewhere.

 
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Post by Vinmaker » Tue. Sep. 30, 2014 3:28 pm

Richard S. wrote:Just so it's clear Vinmaker I have no clue how good the supply is, any shortages at this time of the year are usually short lived. The worst I saw it was about month in 2005 or '06 where they were selling the rice as fast as they could make it and I was limited to about 10 ton a day. Where I was getting it the worse case was they could of "made" rice by grinding up the pea but they would of had to start charging more for it because of the extra processing.

Don't go jumping the gun, contact who your supplier and voice your concerns and tell them unless you can get a reasonably close date for delivery you'll have to look elsewhere.
Thanks Richard,

Yes. I agree. I am gonna give it a couple of weeks and then get more concerned. What sucks is that I will now be put to the back of the line if I go to a new supplier which is only fair to the existing customers. Maybe my best course of action is to just buy some from anyplace I can get it and put some in my trunk. This way I can remain in line and just wait out the shortage.

 
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Post by Lightning » Tue. Sep. 30, 2014 3:42 pm

Vinmaker wrote:Maybe my best course of action is to just buy some from anyplace I can get it and put some in my trunk. This way I can remain in line and just wait out the shortage.
The sky isn't falling,,, yet.. I agree this is your best course of action unless they bluntly tell you they will not be able to fulfill their obligation.


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