The entire supply chain is under great financial stress as the spot price of WTI crude oil rose steadily to over US$110 per barrel, on March 13th of 2008 — a record-setting price.

While the price for WTI crude oil is expected to average near $100 per barrel through the rest of this year, transport companies and everybody else getting their supply through their services are bracing for the effects of higher fuel prices during the summer season, defined as the period from April 1st to September 30th.

Pricewise, let’s start with the regular grade gasoline retail prices, which averaged $2.93 per gallon last summer (of 2007) and are projected to average $3.54 per gallon during the current driving season.

The trucking business is going to be hit even harder as diesel fuel prices, which averaged $2.85 per gallon last summer, are projected to average $3.73 this summer.

In fact, the monthly average gasoline price at the pump is projected to peak at just over $3.60 per gallon in June while the monthly average diesel price is expected to peak at just over $3.90 per gallon in April.

These rather scary retail price projections reflect higher prices for the refiners’ average acquisition cost of crude oil, projected to average close to $97 per barrel, up from about $67 per barrel last summer which account for a hefty $30 price hike, per barrel. Furthermore, strong world distillate demand growth, especially in Europe and Asia, will do nothing to help the situation domestically, in America.

It is important to note, however, that even if the US national average monthly gasoline price comes to peak around $3.60 per gallon this summer, it’s entirely possible that prices, at some point, will cross the $4 per gallon threshold, severely hurting the transport industry and those who depend on it.

Countless consumers may be forced to reconsider driving their cars at all and the same kind of dilemma may happen for transport operators of all sizes as well as petroleum-based product manufacturers.

Transportation and logistics companies, especially in America, need to plan (and provision lots of “emergency money”) right now for this summer’s potential fuel price explosion.

Tags: gas, fuel, wti crude oil, oil, diesel, petroleum, pump, america, usa, transport, logistics, summer

The United Transportation Union recently published a preoccupying report on limbo time.

For those unfamiliar with this rail industry-specific terminology, limbo time refers to the time on duty that is seldom paid for -and- not counted towards hours of service. Simply said, it’s that time when a worker is exhausted and therefore, more dangerous to himself, his colleagues and the public.

The US Congress is expected to look into this widespread problem, causing (among other things) more train collisions, caused by human factors, in 2006 than any other year in recent history. Until then, the limbo time issue continues to be a major security problem.

Obviously, limbo time or similarly named situations where workers work longer than expected to end up being a danger to themselves and others, is a problem in transportation, at large — not just in the rail industry.

While limbo time eats away at the quality of life of the employee and his loved ones, it’s the security issue that should command swift action to end this situation.

A train accident is already bad enough, per se. Learning that over 90 of them were directly caused by human errors (generally related to limbo time issues) in 2006 alone should prompt the US Congress to stop talking and start moving.

While carriers are unwilling to eliminate limbo time, mainly because they multiply their profits because of it, it’s up to the worker’s unions, the workers themselves and the general public to put some pressure on their elected leaders — it’s also very sad to see the carriers acting so carelessly about their employees’ and the public’s security.

Tags: limbo time, rail workers, rail industry, carriers, transport, utu, congress

The May / June 2006 Edition of the excellent Public Roads magazine includes a wonderful article on how the highways trucks use could take a hint from the information superhighway.

With freight volume on American highways expected to increase by a whopping 70% by 2020, over 1998 levels, Electronic Freight Management (EFM) can help considerably reduce congestion by better coordinating intermodal connections.

Biometric smart cards are already in use and contain information on truck drivers, including a photocopy of a commercial driver license as well as the driver’s thumbprint. This information, contained in the embedded gold-colored chips, is used to expedite the movement of cargo through intermodal transfer facilities and trucks through border crossings.

Learn more about EFM and the future of transportation by clicking on the title of this article.

Yet another important speech has been given by Norman Y. Mineta, df, before the prestigious U.S. Chamber of Commerce, in Washington D.C., at 11 AM, today July 6th, 2006.

The tone was resolutely engaging and the crowd listening to this speech meant business, big infrastructure development business. Most experts agree Mr Mineta want to help the American transports industry as well as the already stressed out commuters, especially in dense urban areas.

Click on the title to read the complete speech transcript.

The Truck Show is an opportunity for your company to meet with decision makers from the Western U.S. and beyond. For many truck show visitors this may be their only opportunity to meet face to face with exhibitors.

Roger Sherrard, President of Independent Trade Show Management resumed the show’s intent in an elegant way:

“Our goal is simple. Bring together buyers and sellers of heavy and medium duty truck equipment and services in a forum that makes it easy to conduct business. Achieving this goal is our speciality.

In 2005 over 16,000 registered attendees visited with 342 companies during the three days of The Truck Show Las Vegas.

Almost 90% of our attendees were qualified industry personnel and over 67% of them told us they were decision makers or company management.”

It’s also a great way to spend some quality time in Las Vegas, Nevada, June 15, 16 and 17, 2006. The event will take place at the Las Vegas Convention Center.

Tags: las vegas, nevada, convention center, quality time, trucks, transport, attendees, trade show

Happy birthday Transport Canada!

Or, should we say “http://www.tc.gc.ca/” to be more precise — this abundant and resourceful public web site has celebrated its 10th year on the web on January 15th, 2006.

The full story is available here.

It’s one thing to create a web site of this scope but it’s another to maintain it daily. More than 8 million visitors came to TC’s web site in 2005 alone.

In their own words, TC looks into the future with these objectives in mind:

“As more Canadians turn to the Internet as a source of information, Transport Canada remains committed to providing accurate, timely, relevant information, tools and services that support business objectives and meet requirements under all relevant policies and standards.”

Let’s hope TC has many more successful years ahead with their web site destined primarily to the general public but also to the T&L industry specialists.

Tags: transport canada, 10th anniversary, celebration, successful years, transport, logistics