The winter of 2025-26 significantly strained the already limited deicing salt supply across North America. But the shortage wasn't caused by a single storm or season. Rather it is the result of a "domino effect" of systemic vulnerabilities that have been developing for years.
Road salt demand typically increases in late December. However, the 2025-26 winter started aggressively with significant snow and ice events in early November and December depleting municipal and contractor stockpiles faster than replenishment cycles could keep up. We forgot these types of November/December storms are "normal."
North American salt supply capacity has declined due to several factors, including Stone Canyon Industries' reduction of excess capacity after acquiring K+S Americas in 2020; Compass Minerals' 2024 strategic production cuts at its Goderich and Cote Blanche mines; and the permanent loss of capacity from the 2022 closure of Cargill's Avery Island mine (2.5 million tonnes) and a major Cincinnati salt terminal (over 200,000 tons).
After several mild winters (2023-2025), regional distributors and ports lowered their "carryover" inventory levels to reduce overhead. By moving the demand timeline forward by six weeks, they were caught with their guard down when a "normal" winter returned. Mines were playing catch-up from the beginning, shipping record tonnages in January just to meet immediate needs, which left them unable to rebuild strategic reserves.
Unplanned maintenance delays at key North American salt mines and equipment failures at loading ports created a bottleneck at the source.
Several major salt mines, particularly in the Great Lakes region and Eastern Canada, faced structural maintenance delays, labor disputes and increasing environmental liabilities throughout 2024 and 2025. This reduced the "piling capacity" at major ports in Milwaukee, Cleveland, upstate New York and Newark, N.J., leaving the supply chain without the necessary and usual buffer.
A critical shortage of CDL drivers – exacerbated by aging demographics and increased competition from long-haul freight – and rail capacity meant that even when salt was available at the port, there weren't enough wheels to move it the "last mile" to contractors' and municipalities' storage yards during peak demand. Even contractors and municipal organizations with "guaranteed" contracts saw delivery windows slip from 24 hours to 10 days.
State and city contracts often include "first-priority" clauses, leaving private contractors at the bottom of the delivery list during a crisis. When supply gets tight, the "public safety" hierarchy kicks in. Under emergency declarations, salt barges from overseas and rail cars were legally diverted to state and municipal agencies, leaving private commercial contractors to fight over the "scraps" in the retail market, with some paying $300/tonne or more – if they could find any salt at all.
Historically, imports from neighboring countries served as a critical buffer against domestic supply shortages. In early 2025, President Trump's imposition of 25% tariffs on imports from Canada and Mexico made existing domestic salt supply issues worse. These tariffs, combined with global freight delays affecting shipments from Chile and Egypt, significantly increased the risk of the East Coast running out of inventory.
Imported salt became too expensive to be competitive in the bidding market. As a result, U.S. service providers who relied on Canadian salt faced a choice: absorb a direct 25% price hike or be forced to switch to domestic suppliers who were already struggling to keep up with demand.
Two winters ago (2024-25), the New York state-legislated "Buy American Salt Act" contributed to the depletion of salt at two of the major Northeast salt mines. The New York state DOT was "cut off" and left to scramble for its supply, thus virtually cutting off the private industry of its typical "just-in-time deliveries" when the state – under eminent domain – legally seized a majority of the bulk salt inventories available in New York. The New York governor has since paused this act.
Atlas Salt's Great Atlantic Project in Newfoundland is set to begin construction this year with production starting in 2029. It will be the first new mine to open in North America since New York's American Rock Salt mine in 2001. The company estimates that once online it will be able to produce 4 million tons per year. The project provides a significant logistical advantage, with the ability to service the U.S. East Coast, New England, Quebec and Atlantic Canada far quicker than turnaround times by international competitors.
The economic fallout of the shortage is characterized by extreme volatility and structural inflation. Many private contractors reported pricing skyrocketed - if they could get salt at all.
| Challenge | Impact |
| Extreme Price Inflation | Private contractors faced staggering price hikes due to low supply and priority given to municipal contracts. |
| Inventory & Supply Rationing | Suppliers limited the amount of salt private firms could purchase, preventing necessary stockpiling for future storms. |
| Logistics & Procurement | Contractors wasted significant time and resources searching for and waiting for salt, severely limiting their operational efficiency during storms. |
| Product Scarcity & Quality Shift | Total depletion of local yards and retail shelves forced contractors to use alternative, less-effective materials. |
Phill Sexton, ASM, has been developing, practicing, and teaching winter management standards for over 30 years. Contact him at psexton@witadvisers.com or visit www.witadvisers.com/swim. The Snow Business content team contributed research to this special report.