Supply Chain Optimization

Surprise! Rates Are Up

Looking at the JB Hunt quarterly report released last week, it becomes clear: Truckload revenue per loaded mile – excluding fuel – is up 19% year over year (YOY) Deadhead down slightly – 18.4% vs. 19.2% YOY Dedicated is a money spinner – $4,544 per ...

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The Future of Supply Chain

Will electric “Semi” become the norm? Right now, my guess is that the electrification of trucks will revolve around the following: Battery technology – not up to big rig standards – and progressing slower than expected. Recall that Tesla promised an ...

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Container rates + Thanksgiving + History

Average spot container freight rates from Shanghai have hit all-time highs, according to Jefferies. Rates from North Asia to the West Coast of North America were… Firstly – Happy Thanksgiving to all readers! Average spot container freight rates from ...

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Year-End Woes

Year-end will be tough for direct-to-consumer businesses… Year-end will be tough for direct-to-consumer businesses: Cardboard lead times are getting much longer Delivery (UPS/FedEx/etc.) is projecting capacity constraints despite adding 99K people ...

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Big Ships Hurt Global Trade

The very large container ships (14,000 TEU’s* or larger) were supposed to help commerce – they have not because … The very large container ships (14,000 TEU’s* or larger) were supposed to help commerce – they have not because they go against all ...

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Freight Costs Rising

Average price per mile of $2.46 = U.S. truckload spot market in the first week of October – up… Average price per mile of $2.46 = U.S. truckload spot market in the first week of October – up 20.6% since July and a record high in the DAT Solutions ...

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Uber Freight Getting Friends With Benefits

Greenbrier – a private equity company – focused on logistics and transportation, is buying a stake in Uber Freight. Uber gets $500 Million, which values the Freight business at $3.3 Billion, and it also gets Greenbrier’s expertise. But Uber Freight ...

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What If You Invested $ 1 billion In Transportation Assets…And Nobody Wanted Them?

That is what is happening now to some oil pipelines. Two years ago, getting oil out of the Permian Basin was hard…there wasn’t enough pipeline capacity. Now, there is more capacity than needed. Here is what is causing this: Lower oil volumes New, ...

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New Life For Old Software And Capacity Issues?

Strange as it may seem, some major companies are abandoning their “best-of-breed” warehouse management software (WMS) and going back to their legacy systems ….why can be summarized as control, customization, and cost. Inventory expressed as a ratio ...

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Why Did Diesel Stay Pricey When Gas Was So Cheap?

U.S. gasoline and diesel crack spreads (the difference between the price of crude oil and the wholesale price of the petroleum product, which are used as estimates of refinery margins) diverged sharply in March as the Covid shutdown happened. Cars ...

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