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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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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Are You Targeting A Payload That Is Too Low?

I advocate weighing the trucks to see where payload targets should be set. Here is a sample of refrigerated trucks from major carriers in 2021. What does this tell you? In this sample, which was large enough to be valid, 69% of all trucks could ...

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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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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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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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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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