A new shipping standard for hazardous material in Canada could limit styrene monomer (SM) shipments into the country.
Transport Canada's new standard, called Containers for Transport of Dangerous Goods by Rail, went into effect on 1 May. The standard restricts SM transportation to class 117 tank cars, phasing out the previously used class 111 tank cars. Class 117 tank cars have a thicker shell and steel jacket outside the car, which provides thermal protection under the jacket to protect the tank car in the event of a fire.
BNSF Railway on 24 April began rejecting any billing for tank cars that are subject to the phase-out in order to keep chemical shipments in compliance, the company said.
The number of US SM sellers or distributors with class 117 tank cars is limited, meaning the standard could limit SM shipments into Canada, sources said.
That could prove problematic if Shell, an SM producer in Canada, is offline long enough. Last week, Shell declared a force majeure on SM from its unit in Scotford, Alberta, but said they expect the plant to be back online as soon as 23 May.
Only one other producer in the US, Ineos Styrolution, is known to have access to class 117 tank cars. This producer has a supply of them from their facility in Sarnia, Ontario, although that facility has been offline since April 2023 and the company plans on permanently closing it by October 2026.
The US also restricts shipping of some hazardous materials to class 117 tank cars, but the US regulation does not yet include SM. The US will restrict SM to class 117 tank cars starting 1 May 2029.
