Supply Chain Optimization

Good News

The Canadian Pacific and Kansas City Southern rail merger is a significant and positive step toward building a more robust north-south supply chain. Key points: The combined entity is still the smallest of the class 1 railroads. The approval of the ...

Read More

Margins On Diesel Double From 2021

The graph below tells the whole painful story. For a wealth of additional resources and insights, explore our website at https://provisionai.com/ and connect with us on our social media channels for the latest updates and information! Discover ...

Read More

More On The Variability Enemy

A few weeks back, I talked about the high costs generated by deployment variability. You may recall this graphic of an actual plant to DC lane volume in trucks... Now Dan Gilmore is quoting noted Gartner Analyst Amber Salley: "But Gartner says it is ...

Read More

First crack in the Jones Act?

First crack in the Jones Act?

The Jones (Maritime) Act of 1920 applies only to ships carrying commercial cargo from one place in the U.S. to another. It forces shipments between US ports to be on US-built and registered ships with US crews. For example, it does not affect a ...

Read More

More Humping

While 2 unions are threatening a walkout this week, if there isn’t a stoppage, there will be more humping. Even if there is a stoppage, when they come back to work, there will be more humping. Before your mind goes in the wrong direction, humping is ...

Read More

Container Arteries Constricted

Railroads are limiting container loads to locations like Chicago. Here is why: Inland container yards are full Warehouses are full. Prologis Inc. said the vacancy rate in the firm’s top 30 U.S. markets is 3%—good for them but historically, vacancy ...

Read More

How Technology Is Eliminating Deployment Volatility And High-Cost Freight

LevelLoad and AutoO2 eliminate deployment (e.g., from plant to customer-facing distribution centers) volatility using a combination of: Tendering early smooth freight volumes over time by pushing lower-priority deployment demand to a later day and ...

Read More

Are You Targeting A Payload That Is Too Low?

I advocate weighing the trucks to see where payload targets should be set. Here is a sample of refrigerated trucks from major carriers in 2021. What does this tell you? In this sample, which was large enough to be valid, 69% of all trucks could ...

Read More

Good News And Bad News On Diesel Prices

Good News (Price will go down): Today: Crude oil prices are way down + refiners’ margins are down by ~50% Future: High prices ~$100/barrel for oil and $9+ for gas mean that economically recoverable reserves rise. e.g. Eagle Ford sees a fifteen-fold ...

Read More

Freight Rates On Their Way Down?

Freight Rates On Their Way Down?

The Cass freight index appears to show expenditures and Shipments tracking fairly closely. Case Freight index The same is not true for bulk ocean freight. The London-based Baltic Exchange index is a weighted average based on 11-20 international ship ...

Read More