Supply Chain Optimization

Predicting Oil Prices Is A Mug’s Game

We often talk about labor constraints, but there are many infrastructure bottlenecks, such as in this email the last year – the aging locks on the inland waterways or pipelines under capacity. A constraint just surfaced – very large crude carriers ...

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Margins Eroding

I’ve been asked recently if CPG companies will be able to increase their prices as supply-chain costs increase. The answer is… I’ve been asked recently if CPG companies will be able to increase their prices as supply-chain costs increase. The answer ...

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Congestion Hurts Canada

News from Canada tells a sad story, and it is hurting the US too: Canadian grain shippers can’t get rail cars for weeks Halliburton blames Canadian National…for halting new shipments of fracking sand out of Wisconsin and Minnesota Degradation of ...

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Ambush At National Labor Review Board Hurts Companies Employing 3PL’s

The NLRB had historically defined an employer as somebody who could hire and fire workers. The previous administration had “expannnnded” that definition to, for example, companies that employed 3P3PLs This was reversed when this administration put a ...

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One more thing for Food Shippers (and Others) + Uber parcel from DHL

Our Will Cotten was at the Food Shippers Conference last week, where many attendees focused on truck capacity shortages. Their solution set seems to be: Make freight more enticing – offer drop trailers to help with hours of service, etc. Fix current ...

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Not So Fast…

The International Energy Agency forecasts that the U.S. will overtake Russia to become the worlds… The International Energy Agency forecasts that the U.S. will overtake Russia to become the world’s largest oil producer by 2023. Not so fast, says an ...

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Gas Tax Increase? No – A Fuel User Fee Increase

Because tax is a dirty word, the trucking industry is proposing a fuel user fee to pay for infrastructure improvements. Class 8 truck orders were up 76% in February. CSX is seeing benefits from its “precision railroading”: CSX’s new CEO indicated he ...

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Is There Such A Thing As A Shipper Carrier Partnership?

In good times, my conjecture is that there is… In good times, my conjecture is that there is… no such thing as a shipper carrier partnership. Think about it when they have a choice: Do carriers accept a lower-paying load from a favored “partner” ...

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US Postal Service (USPS) Subsidizes China

Hard to believe, but it is often cheaper to ship a parcel from China to a US address than from another state. A vendor in New Jersey showed it cost him $6.30 to ship a parcel that cost a Chinese shipper a mere $1.30. I have experienced something ...

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Warren Buffet’s Railroad Profits And Oil Price Predictions

Rail efficiency is up and oil is expected to be $70 At Warren Buffet’s railroad BNSF, over the past 2 years, revenues are down 14% while profits are only down 7%, suggesting better margins and increased productivity. Warren claims, “Price ...

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