Supply Chain Optimization

The good news and the bad news in trucking + Panama Canal

First, the bad news:

  • OPEC+ agreed to extend all production curbs into next year and adjust supply down  (if needed) —Crude oil prices will stay in the current range 
  • Truck volume, measured by posts to DAT’s van spot market, is down ~6% from April to May and ~23% from May 2023.  
 The worst news:  

When volume trends up, expect a significant spike in rates as a reduced carrier base (many are going out of business),  weakened by low or no profitability, tries to (but fails) to scale up.

The good news:  

  • Diesel prices are still falling (See graph from the Wall Street Journal)
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  • The Panama Canal increased the allowed vessel draft ahead of schedule as an early rainy season improves conditions.