Tag: #cost
Not so good news for OPEC+ and the new world order
The “new order” in energy: “The new order promises to make the energy trade less efficient and more expensive, potentially putting commodities at the center of the next global economic crisis” former Treasury official — Zoltan Pozsar. So, oil is no longer freely traded — hence it will be more expensive/less efficient to transport. (Think […]
Freight rates up and down
The good news: The Cass Freight Index declined 0.5% year-over-year in April. The bad news: Petroleum product tanker rates for routes originating in Europe rose to record highs in April 2022. And this is important because of how we balance fuel stocks between Europe and the US. Here is a tidbit on tankers from the EIA: […]
Why the price of diesel has risen faster than gasoline?
From the EIA: “We expect prices for gasoline, distillate fuel oil, and jet fuel to begin decreasing after May as refinery maintenance from April comes to an end, increasing production and reducing some of the pressure on prices in the current market.” That’s the good news. The bad news is in the following graph: Why? […]
The Fallacy of Transportation Contracts
Most contracts read like this: “we’ll give the carrier x lots per year (maybe) and the carrier will accept some of them if they feel like it.” Sounds like a great basis for a partnership. So, what is happening: Contracts are a sham. What is the problem here? Class 8 truck sales down 28% from […]
Diesel $5.509 (A record) + Amazon fighting unions
The second Staten Island Amazon distribution center rejected the union by a factor of 68% to 32% — wait, there is more. Amazon is challenging the other election where the union won by, amongst other things, attacking the NLRB (National Labor Relation Board). Their 25 objections include The author of the act certainly never intended […]
JB Hunt + Addressing rail issues
JB Hunt quarterly report: On this last point, regulators, in the form of the “Surface Transportation Board,” are issuing new rules compelling railroads to respond to shippers’ issues: People have been waiting in lines for hours to purchase the Ukrainian stamp that depicts soldiers suggesting the Russians should “go away” in terms I can’t write […]
Driver shortage, ways to cut it
Driver shortage is almost 80,000 this year. Last year at CSCMP, Unilever spoke of freeing truck drivers (and trucks) by increasing load size — they use our AutoO2 tool to do that. But here is another way that helps solve 2 problems: Tennessee Senate Bill 2399 enables qualifying (i.e. not every) incarcerated individuals (aka convicts) […]
No pain like the fuel pain
Diesel: $5.07 (down 7 cents). But, in March fuel prices were up 27%! Are brokers passing fuel surcharges (FSC) on fast enough? By their very nature, FSC is in arrears—so when prices rise fast, the carrier is playing catchup—add delays (e.g. from a broker) and carriers have a cash crunch. Why is oil at $94/barrel […]
Victory for 3PL’s
This is a victory for 3PL’s and everybody who uses contractors in the supply chain. While it was overshadowed by the union win against Amazon, something good came out of the Senate: David Weil’s nomination for the Labor Department’s Wage and Hour Division was defeated. Recall Mr. Weil did the same job for Obama and […]