Worthington Industries has announced a price increase on some of its steel and aluminium cylinders, effective on all new orders shipped on or after 1st July, or as contracts allow.

Announcing the hike on Tuesday (11th May), Worthington said the increase will be made on the following:

-Steel portable, forklift, specialty chemical and fire extinguisher cylinders will advance 15%.

-Heating and system tanks, including 100-pound carbon steel tanks, will advance 15%.

-Steel refillable and non-refillable cylinders for refrigerant, foam and adhesive products will advance 15%.

-Aluminium portable and forklift cylinders will advance 5%.

Jimmy Bowes, General Manager of the Industrial Products Business for Worthington, said, “Raw materials and other market conditions continue to increase our manufacturing costs.”

“As always, we remain dedicated to meeting the needs of our customers during these challenging times.”

Norris Cylinder has said it will implement a price increase on all products for new orders shipping on or after 1st February (2021), or pursuant to individual customer contracts.

In a statement, the Michigan-based company said prices on all high-pressure cylinder models will rise by 7% and acetylene cylinders will increase by 9%.

“We will continue to monitor the situation and remain focused on pursuing world-class manufacturing practices and investments that allow us to remain an industry leader of highest quality cylinders to customers in over 120 countries,” said Norris Cylinder.

Explaining the new prices, Norris said that increases in the cost of steel, components, and other key raw materials including acetone, have risen to levels that can no longer be absorbed or outpaced by operational efficiency improvements, resulting in the need to increase sale prices.

Worthington Industries has announced a price increase for its steel and aluminium cylinders, effective on all new orders shipping on or after 1st Feb (2021), or as contracts allow.

According to a statement released on 11 January, prices on all fire extinguisher and suppression system cylinders, and specialty chemical cylinders will advance 15%.

Prices on all aluminium forklift cylinders and aluminium portable cylinders will advance 10%.

The company also said that prices on all steel heating and system tanks, including 100-, 200- and 420-pound tanks, all steel portable cylinders, steel forklift cylinders, steel industrial cutting gas cylinders, and all refrigerant refillable and recovery cylinders, sizes 30 to 1,000 pounds, will advance 8%.

“Steel prices and other operating expenses continue to rise, forcing us to make adjustments to offset these costs,” said Jimmy Bowes, General Manager of the Industrial Products Business for Worthington Industries.

“We remain focused on meeting the needs of our customers and our country while balancing the demands of the pandemic and the safety of our employees.”

The Occupational Safety and Health Administration (OSHA) has updated their fines for the new year. The maximum penalty amounts, with the annual adjustment for inflation, that may be assessed after January 15th 2021 are the following:

TYPE OF VIOLATION PENALTY

Serious Violation $13,653 Per Violation

Other-Than-Serious Violation $13,653 Per Violation

Violation of Posting Requirements $13,653 Per Violation

Failure to Abate $13,653 per day beyond the abatement violation

Willful or Repeated Violation $136,532 per Violation

On March 25, 2020, the Pipeline and Hazardous Materials Administration (PHMSA) issued a notice of enforcement action regarding obtaining or providing recurrent training to hazmat employees. The notice stated that no enforcement action would be taken against companies that were unable to provide recurrent training for 90 days. On June 24, 2020, PHMSA extended the hold on enforcement actions until October 31, 2020.

PHMSA recognized that the unprecedented changes in business practices related to the COVID-19 outbreak left many companies without a means to obtain or provide recurrent training for their employees in their traditional ways, such as in person classroom training. While time was provided for companies to adjust their training plans, this enforcement discretion was never anticipated to be permanent.

October 31, 2020, is almost here, how does this effect companies?

The hazardous materials regulations are found in 49 CFR Parts 100–180. The regulations are enforced by PHMSA, the Federal Motor Carrier Safety Administration (FMSCA), the Federal Railroad Administration (FRA), the Federal Aviation Administration (FAA), and the US Coast Guard.

The training requirements are found in 49 CFR Subpart H (172.700). All hazmat employees are required to receive training within 90 days of beginning hazmat functions and recurrent training at least every 3 years after that. PHMSA’s policy meant that no enforcement actions would be taken against a company that didn’t provide recurrent training between March 25 and October 31, 2020. The policy never applied to initial training.

After October 31, 2020, PHMSA expects that companies have been able to rework and adapt their operations with the COVID crises in mind and can provide the recurrent training as required by the regulations. This means that violations and penalties will be issued for non-compliance with the recurrent training requirements.

Penalties for non-compliance with the recurrent training requirements can be $1,000+ per employee and can add up quickly.

How does a company avoid being in non-compliance?

The simple answer is to get your training updated now before you are out of time. There is no requirement for hazmat training to be given in an in-person classroom setting. In the notice, PHMSA states that training can be provided by any method including webinars or self-paced online computer-based instruction such as online hazmat training provide by American Cylinder and Safety.

Today is the first day of October. This means different things to different people. For some it means fall is here, the leaves change, and weather starts to get colder. For the U.S. Government, it means the beginning of a new fiscal year. The new fiscal year brings about new editions of the Codes of Federal Regulations (CFR). Updated every year, they are published and available for purchase starting in November. This is important because a cylinder requalifier needs to have on hand the latest regulations in order to satisfy the requirements of the U.S. Department of Transportation under section 180.205(a)(4). If you are party to a unannounced compliance inspection, one of the first questions a DOT enforcement inspector will ask during an audit is "show me your latest CFR book". If you show them a previous edition it could be a $600 - $1200.00 fine. Ensure that you are not out of compliance by procuring the latest edition when published.

The US Department of Transportation (DOT) has reached a reciprocity agreement with Transport Canada (TC) which allows all DOT-3AL qualified aluminum high pressure gas cylinders to be sold, put into service, and retested in Canada. Transport Canada has advised that the TC-3ALM crown markings/stampings on aluminum cylinders are no longer necessary.

The US Department of Transportation (DOT) Pipeline and Hazardous Materials Safety Administration (PHMSA) has released the 2020 edition of its Emergency Response Guidebook (ERG). This edition provides first responders with the revised and updated go to manual that offers guidance on what to do in that first critical 30 minutes of a HAZMAT response. The revised ERG contains an indexed list of dangerous goods, their associated ID numbers, and general hazards that they might pose in a transportation accident. It also provides the recommended safety precautions when responding to a event with HAZMAT. This guidebook is available to all public safety agencies in all States and territories for free, through designated state Emergency Management coordination offices. It is also available as a free mobile app. For additional information visit www.phmsa.dot.gov.

PHMSA has extended the Exemption of Enforcement of Division 2.2 cylinders that are out of Requalification through October 31st, 2020.  Full details can be read in the blog bost below.

NOTICE OF ENFORCEMENT DISCRETION REGARDING CYLINDERS THAT HAVE EXCEEDED THEIR PERIODIC REQUALIFICATION TEST DATE

The U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration (PHMSA) understands that due to the Coronavirus Disease 2019 (COVID-19) public health emergency, many members of the medical and industrial gas industry may be experiencing difficulty in obtaining cylinders due to the increased demand for these gases or a disruption in the normal business model for cylinder exchanges. This has made it difficult for the industry to consistently obtain cylinders which can be filled in accordance with the requalification provision specified in 49 CFR 173.301(a)(6). PHMSA gives notice that it will not take enforcement action against any person who fills a DOT-specification cylinder used to transport Division 2.2 non-flammable gas provided the cylinder meets all requirements of the Hazardous Materials Regulations (HMR) except that the cylinder is overdue for periodic requalification by no more than 12 months. Depending on the cylinder type, periodic requalification is required at either a 5-year or 10-year interval. This enforcement discretion is in response to unprecedented changes in business practices related to the COVID-19 outbreak and is intended to minimize disruptions in the supply chain, especially those related to providing medical gases to the health care industry. This enforcement discretion will be exercised by the Federal Motor Carrier Safety Administration and PHMSA. This relief applies only to transportation by motor vehicle, and does not extend to transport by air, vessel, or railroad. Prior to filling and offering for transportation, all cylinders must be inspected in accordance with the applicable Compressed Gas Association Pamphlet and DOT requirements. Any cylinder that does not pass the prefill inspection criteria must not be filled. This notice is limited to the filling and offering of cylinders containing Division 2.2 gases when such cylinders are no more than 12 months past their periodic requalification test date. These cylinders must be in compliance with all other requirements of the HMR. This Notice of Enforcement Discretion is effective while the Department of Health and Human Services determination that a public health emergency related to COVID-19 exists or 90 days from its date of issuance, whichever is sooner.

Issued April 6, 2020, in Washington D.C.