Supply Chain Optimization

Container Arteries Constricted

Railroads are limiting container loads to locations like Chicago. Here is why: Inland container yards are full Warehouses are full. Prologis Inc. said the vacancy rate in the firm’s top 30 U.S. markets is 3%—good for them but historically, vacancy ...

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How Technology Is Eliminating Deployment Volatility And High-Cost Freight

LevelLoad and AutoO2 eliminate deployment (e.g., from plant to customer-facing distribution centers) volatility using a combination of: Tendering early smooth freight volumes over time by pushing lower-priority deployment demand to a later day and ...

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Avoid High-Cost Carriers: Why You Need Transportation Planning

Transportation Planning provides an incredible competitive edge. To quote a VP at a Fortune 50 consumer goods manufacturer: “We deploy, at a premium cost, a product that may not be needed, from sites that may struggle to ship it, to sites that may ...

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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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Predictions On Container Rates = Guesses

The contradiction is: Maersk’s CEO sees inflation pushing container rates up faster than 25% to 30%. This is aided by port and rail congestion Spot rates for containers are sometimes not below contract rates. The average rate per 40-foot container ...

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I Was Wrong

Diesel prices are holding their own— despite refineries coming online. What gives? While fuel exports haven’t hit records, they are trending higher than in prior years. Seaborne gasoline, diesel, and jet fuel shipments departing the U.S. Gulf Coast ...

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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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