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?

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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Freight Rates Up And Down

May 24, 2022 The good news: The Cass Freight Index declined 0.5% year-over-year in April. The bad news: Petroleum product tanker rates for routes originating in Europe rose to record highs in April 2022. And this is important because of how we ...

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Why The Price Of Diesel Has Risen Faster Than Gasoline?

From the EIA: “We expect prices for gasoline, distillate fuel oil, and jet fuel to begin decreasing after May as refinery maintenance from April comes to an end, increasing production and reducing some of the pressure on prices in the current ...

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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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Diesel $5.509 (A Record) + Amazon Fighting Unions

The second Staten Island Amazon distribution center rejected the union by a factor of 68% to 32% — wait, there is more. Amazon is challenging the other election where the union won by, amongst other things, attacking the NLRB (National Labor ...

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JB Hunt + Addressing Rail Issues

JB Hunt quarterly report: Intermodal (JBI) revenue grew 36%, driven by a 28% increase in revenue per load and complimented by a 7% increase in load volume. Truckload (JBT) and Integrated Capacity Solutions™ (ICS) — aka brokerage — grew revenue by ...

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