The incident,which involved 73 runaway railcars that were en route to Irving’s oil refineryin New Brunswick, could have an impact on other components of a supply chain that is struggling to adapt to the rapid rise in North American oil and gas production,according to ICAP Shipping.

The topic took centre stage in the UK brokerage’s daily report about thetanker market in which its shipping researchers were quick to point out that thedisaster follows a de-railing of a train carrying refined products, withoutspillage, in Calgary just last week.

“The rapidly changing domestic oil supply environment in Canada and the UShas prompted a huge increase in oil shipments via railcar and barge due to thelong approval process for pipeline projects,” they told clients Monday.

“The recent incidents could have implications for the inland movement ofcrude oil and oil products around North America, such as increased railroadcosts due to safety improvements.

“They also add weight to the pro-pipeline groups as they try to convincepoliticians and environment groups of the benefits. It may also boost seaborneimports into the St John refinery in the short-term.”

As wehave reported freight rates tied to tankers, tugs and barges that are US built,flagged, crewed and owned have soared in recent months due to the surge inproduction from shale oil formations like Eagle Ford and Bakken.

Rates have surpassed the $65,000 mark in boththe spot and period markets and some shipbrokers claim to have seen coastwisefixtures with price tags in excess of $100,000 per day.

MJLF & Associates of the US, one of thefew mainstream tanker brokerages with a desk dedicated to the Jones Act,believes levels will remain strong and are unlikely to fall below the $65,000benchmark over the next few years.

“The continued increase in production fromthese areas, combined with the lack of tonnage available to transport thisadditional crude, supports forecasts for increased demand for long term tankercharters and newbuild projects in the US market for the foreseeable future,” itwrote in a recent report.