Supply Chain Optimization

Carrier Supply = Bigger

For the past months, freight demand has run ahead of 2018 (it just went below this week).  Yet, at the same time, everybody tells me this has been a much easier year to find trucks.  Even that data bears that out:  Tender rejection rate July 2018 = 32% –  now 6%.  This means supply has grown….despite dire warnings about a driver shortage.

 
One area where supply is not meeting demand is in domestic maritime transportation.  The Jones Act of 1920 says that to move freight from one US port to another, the ship has to be built in the US, and the crew must be 75% American.
 
Result:
  • Puerto Rico is importing gas from Russia
  • Two winters ago, New England also got gas from Russia
  • It is sometimes cheaper to ship to Hawaii via China versus from LA to Hawaii