Tuesday, July 8, 2008

Is Your Supply Chain Efficient Enough To Handle $200 A Barrel Oil?

We all thought $100 a barrel for oil would be a magical ceiling,
like most magic, that was just an illusion that went up in smoke.

In spite of over capacity for LTL and Truckload in some markets,
transportation costs are still rising. And fuel surcharges have
enabled carriers to push all those risks back on to the shippers.
The American Trucking Association now states that fuel costs
are now exceeding labor costs for drivers. And for truckload
carriers, fuel costs can be 25% or more of total operating costs.

Goldman Sachs has predicted that oil prices are headed for
$200.00 a barrel, and there’s a real chance that we’ll see $150
by the end of the year. While reducing costs in your
supply chain is your objective, at those prices, it’s a lifeline.
We may not be just talking profitability, we may be talking
existence! There is something you can do about rising prices.
Visit us at www.totalogistix.com and see what we can do to
improve the picture.

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