News

Before recent changes to US Coast Guard (USCG) regulations on the transport of ammonium nitrate (AN) on water, there were 28 vessel operators transporting AN on the nation’s inland waterways.  According to Ken Knox, a contractor working for the USCG who is studying the commodity flow of AN on water, only one remains today.  Mr. Knox met with IME recently to discuss the industrial side of AN. 

The USCG estimated that the interim final rule would have significant impact on vessel operators, costing them between $40 and 45 million over the next 10 years for compliance.  In reality however, nearly all these vessel operators decided to cease carrying AN rather than comply with the new rules.  With only one vessel operator left, the new costs from this rule will obviously be paid by manufacturers, distributors and consumers of AN.

IME supports the USCG’s decision to make AN a CDC.  However, the exercise should remind those considering the impact of new requirements that the “Law of Unintended Consequences” often applies.