New State of Transportation Report shows rates on the rise.
http://www.scdigest.com/ONTARGET/11-03-23-1.PHP?cid=4340&ctype=content
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The author is Director of New Business Developement for Landis Logistics, a fulfillment warehouse serving Pennsylvania, New York, New Jersey, and points nationally.
@LandisLogistics
@kennethkowal
Showing posts with label Logistics. Show all posts
Showing posts with label Logistics. Show all posts
Thursday, March 31, 2011
Sunday, March 6, 2011
March Truckload Pricing Update
Truckload Pricing Update - 3/06/11
From the US Energy Information Administration - the projected average annual retail fuel prices are detailed in this link.
Link to: Detailed snapshot of current fuel indices from the EIA.
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Ecommerce Order Fulfillment for Online Retailers
Social Media for Logistics
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From the US Energy Information Administration - the projected average annual retail fuel prices are detailed in this link.
Link to: Detailed snapshot of current fuel indices from the EIA.
_______________________________
Ecommerce Order Fulfillment for Online Retailers
Social Media for Logistics
Free TMS
Tuesday, February 8, 2011
Thursday, December 9, 2010
An update on the BTS Freight Index
From 3PLnews.com: An update on the BTS Freight Index:
BTS Releases Freight Transportation Services Index (TSI); Freight Index Rose 0.2% in October from September 2010
http://bit.ly/ekqn2I
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Social Media for Logistics
Logistics Software
Ecommerce Order Fulfillment
BTS Releases Freight Transportation Services Index (TSI); Freight Index Rose 0.2% in October from September 2010
http://bit.ly/ekqn2I
______________________________
Social Media for Logistics
Logistics Software
Ecommerce Order Fulfillment
Saturday, October 23, 2010
Truckload Pricing and Fuel Trends
Here is an update on fuel prices as of 10/20/10.
From the US Energy Information Administration - the projected average annual retail fuel prices are detailed in this link.
Link to: Detailed snapshot of current fuel indices from the EIA.
Freight Transportation Services Index (TSI) increased in June.
____________________
Sponsored by www.eroutingguide.com - check out the free truckload rate calculator.
From the US Energy Information Administration - the projected average annual retail fuel prices are detailed in this link.
Link to: Detailed snapshot of current fuel indices from the EIA.
Freight Transportation Services Index (TSI) increased in June.
____________________
Sponsored by www.eroutingguide.com - check out the free truckload rate calculator.
Monday, September 20, 2010
Update on Truckload Pricing Trends - 9/18/10
Here is an update on fuel prices as of 9/18/10.
From the US Energy Information Administration - the projected average annual retail fuel prices are detailed in this link.
Link to: Detailed snapshot of current fuel indices from the EIA.
Freight Transportation Services Index (TSI) increased in June.
____________________
Sponsored by www.eroutingguide.com - check out the free truckload rate calculator.
From the US Energy Information Administration - the projected average annual retail fuel prices are detailed in this link.
Link to: Detailed snapshot of current fuel indices from the EIA.
Freight Transportation Services Index (TSI) increased in June.
____________________
Sponsored by www.eroutingguide.com - check out the free truckload rate calculator.
Wednesday, July 14, 2010
Fuel Surcharges make up 40% of your logistics costs - know how they work
Fuel Surcharges make up 40% of your logistics costs – you need to know how they work
Around 10 years ago is when fuel surcharges became ubiquitous. Prior to that time, the cost of fuel was always there of course, but in those days shippers essentially paid for fuel as a part of their linehaul rates. The market changes in fuel costs were for the trucking companies to worry about. The impact of fuel was something left to maybe negotiate at year’s end, or perhaps as part of a contract renewal. The shipper’s perspective was that managing fuel costs were a trucking company’s problem to understand and account for. Since that time, the burden of dealing with market changes in fuel costs has shifted from the trucking companies to shippers.
With fuel surcharge making up 30-40% of a typical company’s logistics costs it important for managers in both operations and finance to know how fuel surcharges are calculated and how the diesel market affects their freight spend. These days shippers are directly exposed to the potentially budget crushing fluctuations in fuel costs and the curiously structured surcharge matrices. Theoretically the fuel surcharge tables that most carriers use are a direct representation of actual fuel costs to calculate the fuel surcharge but I have yet to be given an explanation that makes me feel comfortable that the matrices are more than just an extension of a carrier’s line haul costs. This is not to say that fuel costs are not a major cost factor for carriers, I just disagree that the tables represent the impact of fuel accurately for a carrier from an operating perspective. There is too great of a difference from carrier to carrier for it to be a true representation. This tells me there is a “fudge” factor built into the numbers allowing carriers to hide operating costs beyond just fuel in the fuel surcharge matrix.
For small package shipping, companies are at the mercy of UPS and Fed Ex for not just air and ground services and pricing, but to both company’s own fuel surcharge tables. There is not a lot to understand about small package fuel surcharge other than to know you have to think of the cost as an extension of their pricing and pay attention as the fuel prices change – for better or worse.
For truckload and LTL shipping, you’ll see fuel surcharge matrices calculated as both a per mile and a percentage of line haul cost basis. In both cases – the fuel surcharge table will be based on the US Governments Diesel Fuel Index (posted on the DOE website). It is updated weekly and is also calculated on a regional and national basis. Depending on the footprint of your trucking company either type of fuel index could apply. The “per mile” basis is simply calculated by adding the per mile charge on top of your line haul rate, then multiplied by the number of miles shipped. The “percentage” type surcharge takes the cost of the shipment (for LTL, the discounted tariff rate and for TL, the linehaul portion) and adds the percentage of cost derived from the table on to that. Just like you audit line haul costs on freight invoices, it is also important to audit fuel surcharges.
Fuel matrices are generally built to adjust with every $.05 increase or decrease in the DOE diesel fuel index and are effective for any shipments tendered in a given week’s period of time.
Ken has 15+ years supply chain logistics experience, and is founder of www.Fillship.com.
Around 10 years ago is when fuel surcharges became ubiquitous. Prior to that time, the cost of fuel was always there of course, but in those days shippers essentially paid for fuel as a part of their linehaul rates. The market changes in fuel costs were for the trucking companies to worry about. The impact of fuel was something left to maybe negotiate at year’s end, or perhaps as part of a contract renewal. The shipper’s perspective was that managing fuel costs were a trucking company’s problem to understand and account for. Since that time, the burden of dealing with market changes in fuel costs has shifted from the trucking companies to shippers.
With fuel surcharge making up 30-40% of a typical company’s logistics costs it important for managers in both operations and finance to know how fuel surcharges are calculated and how the diesel market affects their freight spend. These days shippers are directly exposed to the potentially budget crushing fluctuations in fuel costs and the curiously structured surcharge matrices. Theoretically the fuel surcharge tables that most carriers use are a direct representation of actual fuel costs to calculate the fuel surcharge but I have yet to be given an explanation that makes me feel comfortable that the matrices are more than just an extension of a carrier’s line haul costs. This is not to say that fuel costs are not a major cost factor for carriers, I just disagree that the tables represent the impact of fuel accurately for a carrier from an operating perspective. There is too great of a difference from carrier to carrier for it to be a true representation. This tells me there is a “fudge” factor built into the numbers allowing carriers to hide operating costs beyond just fuel in the fuel surcharge matrix.
For small package shipping, companies are at the mercy of UPS and Fed Ex for not just air and ground services and pricing, but to both company’s own fuel surcharge tables. There is not a lot to understand about small package fuel surcharge other than to know you have to think of the cost as an extension of their pricing and pay attention as the fuel prices change – for better or worse.
For truckload and LTL shipping, you’ll see fuel surcharge matrices calculated as both a per mile and a percentage of line haul cost basis. In both cases – the fuel surcharge table will be based on the US Governments Diesel Fuel Index (posted on the DOE website). It is updated weekly and is also calculated on a regional and national basis. Depending on the footprint of your trucking company either type of fuel index could apply. The “per mile” basis is simply calculated by adding the per mile charge on top of your line haul rate, then multiplied by the number of miles shipped. The “percentage” type surcharge takes the cost of the shipment (for LTL, the discounted tariff rate and for TL, the linehaul portion) and adds the percentage of cost derived from the table on to that. Just like you audit line haul costs on freight invoices, it is also important to audit fuel surcharges.
Fuel matrices are generally built to adjust with every $.05 increase or decrease in the DOE diesel fuel index and are effective for any shipments tendered in a given week’s period of time.
Ken has 15+ years supply chain logistics experience, and is founder of www.Fillship.com.
Wednesday, June 16, 2010
Truckload Pricing and Fuel Trends - Update 7/14/10
Updated Truckload Pricing and Fuel Data
Here is an update on fuel prices as of 6/17/10.
From the US Energy Information Administration - the projected average annual retail fuel prices are detailed in this link.
Link to: Detailed snapshot of current fuel indices from the EIA
The Truckload Price trends:
The Freight Transportation Services Index (TSI) rose 0.3 percent in April from its March level, rising for the third consecutive month, the U.S. Department of Transportation's Bureau of Transportation Statistics (BTS). BTS, a part of the Research and Innovative Technology Administration, reported that the Freight TSI index has risen 4.9 percent over the last 11 months, starting in June 2009, after declining 15.3 percent in the previous 10 months beginning in August 2008. The index has increased in nine of the last 11 months. The index started 2010 with a decrease of 1.4 percent in the first four months. For additional historic data, go to http://www.bts.gov/xml/tsi/src/index.xml.
The Freight TSI measures the month-to-month changes in freight shipments in ton-miles, which are then combined into one index. The index measures the output of the for-hire freight transportation industry and consists of data from for-hire trucking, rail, inland waterways, pipelines and air freight.
From the US Energy Information Administration - the projected average annual retail fuel prices are detailed in this link.
Link to: Detailed snapshot of current fuel indices from the EIA
The Truckload Price trends:
The Freight Transportation Services Index (TSI) rose 0.3 percent in April from its March level, rising for the third consecutive month, the U.S. Department of Transportation's Bureau of Transportation Statistics (BTS). BTS, a part of the Research and Innovative Technology Administration, reported that the Freight TSI index has risen 4.9 percent over the last 11 months, starting in June 2009, after declining 15.3 percent in the previous 10 months beginning in August 2008. The index has increased in nine of the last 11 months. The index started 2010 with a decrease of 1.4 percent in the first four months. For additional historic data, go to http://www.bts.gov/xml/tsi/src/index.xml.
The Freight TSI measures the month-to-month changes in freight shipments in ton-miles, which are then combined into one index. The index measures the output of the for-hire freight transportation industry and consists of data from for-hire trucking, rail, inland waterways, pipelines and air freight.
Tuesday, May 25, 2010
Transportation Pricing on the Rise - Survey
An excerpt from Supply Chain Today regarding the Freight Pulse 18 Morgan Stanley/ Logistics Today survey - by Dave Blanchard.
"According to FreightPulse 18, a semi-annual survey of preferred transportation modes conducted by equity research firm Morgan Stanley with Logistics Today, it’s expected that those shippers using rail carriers to move their freight will see a 2.5% hike in their rates through the end of 2010. Even so, rail carriers will see a 2.6% increase in the amount of goods shipped this year. Rail is generally the least expensive mode of domestic transportation, and volume growth is expected to be comparable to the 2003/2004 rebound."
Read the whole story...
Follow me on Twitter @kennethkowal
"According to FreightPulse 18, a semi-annual survey of preferred transportation modes conducted by equity research firm Morgan Stanley with Logistics Today, it’s expected that those shippers using rail carriers to move their freight will see a 2.5% hike in their rates through the end of 2010. Even so, rail carriers will see a 2.6% increase in the amount of goods shipped this year. Rail is generally the least expensive mode of domestic transportation, and volume growth is expected to be comparable to the 2003/2004 rebound."
Read the whole story...
Follow me on Twitter @kennethkowal
Sunday, May 23, 2010
Additional Resource for Truckload/ Logistics Pricing Trend Information
I just came across this and it may be worth monitoring: http://www.transcoretrendlines.com/
Monday, May 17, 2010
Two good articles on pricing trends
In keeping with the theme - I came across two decent articles related to a freight industry pricing forecasts.
http://www.businessweek.com/ap/financialnews/D9FM1IMO0.htm
http://logisticsmgmtnewsroomnotes.wordpress.com/2010/05/11/higher-rates-are-coming-says-analysts/
http://www.businessweek.com/ap/financialnews/D9FM1IMO0.htm
http://logisticsmgmtnewsroomnotes.wordpress.com/2010/05/11/higher-rates-are-coming-says-analysts/
Thursday, May 13, 2010
Fuel Pricing Update 5.13.10
Here is an update on fuel prices as of 5/13/10.
From the US Energy Information Administration - the projected average annual retail fuel prices are detailed in the attched link.
Link to: Detailed snapshot of current fuel indices from the EIA
The Truckload Price trend from the BTS has not been updated since my last post.
From the US Energy Information Administration - the projected average annual retail fuel prices are detailed in the attched link.
Link to: Detailed snapshot of current fuel indices from the EIA
The Truckload Price trend from the BTS has not been updated since my last post.
Tuesday, April 20, 2010
First Post - Truck Pricing and Fuel Trends
Welcome to a new blog I have started to provide updated information on trends and forecasts related to truckload pricing and fuel costs in the US. The goal is to provide a quick look at data and information that is important to shippers of all sizes to assist with understanding what is happening in the marketplace and allow better forecasting and budgeting of transportation related costs.
From the US Energy Information Administration - the projected average annual retail fuel prices are forecast at $2.95 and $3.12 per gallon for 2010 and 2011, respectively.
From the US Energy Information Administration - the projected average annual retail fuel prices are forecast at $2.95 and $3.12 per gallon for 2010 and 2011, respectively.
Link to: Detailed snapshot of current fuel indices from the EIA
The Freight Transportation Services Index (TSI) rose 0.3 percent in February from its January level, rising for the second consecutive month, the US Dept. of Transportation Statistics (BTS) reported on April 14, 2010.
The sources of data are updated by the government monthly and this information will be updated around the middle of each month. Additional sources of relevant data will be added when possible. Ideas or comments for improving the content of the blog are appreciated.
visit our other blog: Easy Logistics Management
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