Supply Chain Optimization

Diesel Prices—No Relief In Sight

On Monday afternoon, the future price for Ultra Low Sulfur Diesel (ULSD)  was $2.94.  Recall that this is the price in NY Harbor if you buy 42,000 gallons next month.  The graph below shows it is even more expensive than ARA – ARA (Amsterdam, Rotterdam, Antwerp including Flushing and Ghent) and Singapore.  

 

Remember that these prices don’t include taxes, transportation, distributor margins, etc.  

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What’s the future?  Who knows?  But you should keep in mind Russia is one of the largest oil producers in the world (see table) and cutting them off would create massive inflation.

Other points of interest:

  • Why is there a container shortage?  Answer — productivity is down 11%.   Source:  Drewry Shipping Consultants.  The average container was moved 17.8 times during last year, down from 20.1 moves in 2018.
  • What is the result of the spike in road accident fatalities? Per-mile insurance premiums for trucking companies have increased by 47% in the past decade.
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