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 […]
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: […]
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? […]
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 […]
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 […]
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 […]
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 […]
Several sources have commented that spot truckload rates have leveled off or have even declined. This may be true, but savings are being masked by fuel surcharges running 65 cents per mile (dry van) — up 19 cents from February and 33 cents more than March 2021. Companies renegotiating annual contracts are certainly not feeling […]
According to UNHCR The Refugee Brief, the number of people who have fled Ukraine reached 2.5 million. At the same time, nearly 2 million escaped to other parts of Ukraine inside the country. It is the most significant refugees flow from WWII.Poland, as a neighbor, has accepted the highest number of people who escaped the […]
Diesel topics worth repeating: Good luck trying to claw back any of these savings in this environment. T|WO team members are helping Ukraine […]