All Columns Entries
Wednesday, August 01, 2012
Shippers are increasingly telling me that the number of options in the less-than-500-pound shipment market confuses them. The one thing that many can understand is that costs continue to climb despite the deregulation of rates. However, enormous savings can be achieved by knowing your shipment weight and distance, direction, and cube as well as the capabilities of your carrier.
In last month’s column, we presented some dramatic research insights about emerging markets. By 2020, 57 percent of the world’s economic growth could come from emerging markets. Emerging market household incomes are expected to increase by a total of $8.5 trillion between 2010 and 2020. And if emerging-market-to-emerging-market (E2E) exports continue to increase at their current rate, they will outpace developed-country-to-developed-country (D2D) volumes by 2013.
The average truck consumes roughly 11,000 gallons of diesel per year. Consequently, even minor shifts in fuel prices have a significant impact on operating costs. For instance, when applied to a fleet of 100 trucks, a price drop of 25 cents per gallon generates annual savings exceeding a quarter of a million dollars.
It dawned on me the other day that some of the practices we employ in the planning and management of our logistics operations are similar to how farmers plan and harvest crops and how baseball managers select their team and deal with the variety of performance issues and injuries throughout the long season.
Sunday, July 01, 2012
Not long ago, the price for a barrel of crude was $110, and a gallon of regular gasoline would set you back nearly $4. While consumers wished for relief, politicians hunted scapegoats on Wall Street.
If you’ve been keeping one eye on ocean fuel (“bunkers”) pricing as I have, you know that the slowdown in the economy has had a pleasing effect on fuel prices.
“Mom, can you change the time on my watch?” “Sure…bring it over, it should only take a few seconds.”
Friday, June 01, 2012
In every issue of Logistics Management
) we devote an article to the growing importance that warehouse and distribution center (DC) operations are playing in transportation and overall logistics management.
Brian pierce, chief economist at the International Air Transport Association (IATA), recently reported that there are mixed signals for air cargo shippers during this year and heading into next. Air cargo shippers need to be aware of the current and future challenges that are facing air carriers in order to better position themselves for the service levels and capacity they’ll need if their companies are going to compete on a global level.
As a logistics manager, understanding that oil and fuel prices are a function of supply and demand rather than the rogue actions of “evil speculators” is important.