Supply Chain Optimization

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 ...

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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 ...

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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 ...

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Obvious Yes— But It Still Hurts

American Transportation Research reports trucking operating costs = $1.855 per mile, a 12.7% year-over-year increase only slightly offset by a 14.8% decrease in deadhead mileage Trucking companies hired about 73,000 new workers in the 12 months ...

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Shame On The Government (EIA)

The EIA (Energy Information Administration), which is responsible for publishing the weekly diesel fuel costs, has failed in this simple duty for June 20, June 27, and July 4. “Unfortunately, we will not be able to publish those figures by the next ...

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The Fallacy of Transportation Contracts

The Fallacy of Transportation Contracts

Most contracts read like this: “We’ll give the carrier x lots per year (maybe), and the carrier will accept some of them if they feel like it.” Sounds like a great basis for a partnership. So, what is happening: Ocean carriers are refusing contract ...

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No Pain Like The Fuel Pain

April 12, 2022 Diesel: $5.07 (down 7 cents). But, in March, fuel prices were up 27%! Are brokers passing fuel surcharges (FSC) on fast enough? By their very nature, FSC is in arrears—so when prices rise fast, the carrier is playing catchup—add ...

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Victory for 3PL’s

Victory for 3PL’s

This is a victory for 3PLs and everybody who uses contractors in the supply chain. While it was overshadowed by the union win against Amazon, something good came out of the Senate: David Weil’s nomination for the Labor Department’s Wage and Hour ...

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Carriers Make Money From Diesel + We Are Helping Ukraine

Diesel topics worth repeating: Street prices react to oil’s rise quickly — but when oil falls, the price you pay lags far behind. In traditional contracts, carriers make incremental income out of fuel surcharges: Their real mpg vs. that contracted ...

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