ILMA Compoundings September 2018 - 23
A
By Mindy Long
strong economy, new driver regulations and a driver
shortage are leading to tight capacity and increased
rates within the trucking industry, and the challenges are expected to continue as the industry works to
improve productivity and attract more drivers to the field.
"The market is still extremely tight, capacity is hard to
find and truck rates are still at a premium," said Brad Delco,
an analyst with Stephens Inc.
Those within the lubricants industry said they are experiencing the constraints firsthand. "Economic growth coupled
with driver shortage has left many companies, including
ours, to look outside the box to find capacity and keep our
customer base satisfied," said Barbara Kudis, president of
Allegheny Petroleum Products Co. "With increased pressure
to deliver materials in a more timely fashion, this has put
even more burden on increased costs."
Industrial growth, coupled with tight capacity and the
driver shortage, will keep transportation rates high, Kudis
said. "The fuel surcharge is increasing at an alarming rate,
going from 17 percent in January to almost 30 percent
currently," she explained.
Ike Tripp, CEO of Etna Products Inc., said he decided a
long time ago that he is in the lubricant business, not the
transportation business.
"We hire out, and more and more they can't get enough
truckers," he said. "You call and schedule and then they
don't show up. The issue is unless they've got a trucker or
enough freight in a given area to pick up, they just don't
bother coming anymore."
When drivers don't show up, Etna files a corrective action,
and the carrier generally comes within a day or two.
"The one it is mainly affecting is our customer. They are
paying for it and not getting what they pay for," Tripp said.
"As a consequence, I think the people are ordering a little
ahead to make sure they have extra stock."
To help address the tight market, Allegheny Petroleum
Co. has worked to diversify its carrier portfolio, engaging
more carriers and third-party logistics (3PLs), and to secure
contracts with current carriers, Kudis said.
"We are using our own fleet of trucks to deliver further
and pick up at our vendors' locations, where historically
they would arrange freight. This will also cut down on
23
ILMA Compoundings September 2018
Table of Contents for the Digital Edition of ILMA Compoundings September 2018
LETTER FROM THE CEO
INSIDE ILMA
WHAT’S COMING UP
INDUSTRY RUNDOWN
ROUGH ROAD AHEAD
A BRIEF HISTORY OF BASE OILS
BUSINESS HUB
COUNSEL COMPOUND
WASHINGTON LANDSCAPE
IN NETWORK
PORTRAIT
ILMA Compoundings September 2018 - Cover1
ILMA Compoundings September 2018 - Cover2
ILMA Compoundings September 2018 - 1
ILMA Compoundings September 2018 - 2
ILMA Compoundings September 2018 - LETTER FROM THE CEO
ILMA Compoundings September 2018 - INSIDE ILMA
ILMA Compoundings September 2018 - 5
ILMA Compoundings September 2018 - 6
ILMA Compoundings September 2018 - 7
ILMA Compoundings September 2018 - 8
ILMA Compoundings September 2018 - 9
ILMA Compoundings September 2018 - 10
ILMA Compoundings September 2018 - 11
ILMA Compoundings September 2018 - WHAT’S COMING UP
ILMA Compoundings September 2018 - 13
ILMA Compoundings September 2018 - INDUSTRY RUNDOWN
ILMA Compoundings September 2018 - 15
ILMA Compoundings September 2018 - 16
ILMA Compoundings September 2018 - 17
ILMA Compoundings September 2018 - 18
ILMA Compoundings September 2018 - 19
ILMA Compoundings September 2018 - 20
ILMA Compoundings September 2018 - 21
ILMA Compoundings September 2018 - ROUGH ROAD AHEAD
ILMA Compoundings September 2018 - 23
ILMA Compoundings September 2018 - 24
ILMA Compoundings September 2018 - 25
ILMA Compoundings September 2018 - 26
ILMA Compoundings September 2018 - 27
ILMA Compoundings September 2018 - 28
ILMA Compoundings September 2018 - 29
ILMA Compoundings September 2018 - A BRIEF HISTORY OF BASE OILS
ILMA Compoundings September 2018 - 31
ILMA Compoundings September 2018 - 32
ILMA Compoundings September 2018 - 33
ILMA Compoundings September 2018 - BUSINESS HUB
ILMA Compoundings September 2018 - 35
ILMA Compoundings September 2018 - COUNSEL COMPOUND
ILMA Compoundings September 2018 - 37
ILMA Compoundings September 2018 - WASHINGTON LANDSCAPE
ILMA Compoundings September 2018 - 39
ILMA Compoundings September 2018 - IN NETWORK
ILMA Compoundings September 2018 - 41
ILMA Compoundings September 2018 - 42
ILMA Compoundings September 2018 - 43
ILMA Compoundings September 2018 - PORTRAIT
ILMA Compoundings September 2018 - Cover3
ILMA Compoundings September 2018 - Cover4
https://www.nxtbook.com/ygsreprints/ILMA/G127535ILMA_vol71_no7
https://www.nxtbook.com/ygsreprints/ILMA/G126213ILMA_vol71_no6
https://www.nxtbook.com/ygsreprints/ILMA/G125546_ILMA_vol71_no5
https://www.nxtbook.com/ygsreprints/ILMA/G124996_ILMA_vol71_no4
https://www.nxtbook.com/ygsreprints/ILMA/G123886_ILMA_vol71_no3
https://www.nxtbook.com/ygsreprints/ILMA/G123315_ILMA_vol71_no2
https://www.nxtbook.com/ygsreprints/ILMA/G122980_ILMA_vol71_no1
https://www.nxtbook.com/ygsreprints/ILMA/G121540_ILMA_vol70_no11
https://www.nxtbook.com/ygsreprints/ILMA/G120882_ILMA_vol70_no10
https://www.nxtbook.com/ygsreprints/ILMA/G120035_ILMA_vol70_no9
https://www.nxtbook.com/ygsreprints/ILMA/G121XXX_ILMA_vol70_no8
https://www.nxtbook.com/ygsreprints/ILMA/G120XXX_ILMA_vol70_no7
https://www.nxtbook.com/ygsreprints/ILMA/G119XXX_ILMA_vol70_no6
https://www.nxtbook.com/ygsreprints/ILMA/G118112_ILMA_vol70_no5
https://www.nxtbook.com/ygsreprints/ILMA/G117382_ILMA_vol70_no4
https://www.nxtbook.com/ygsreprints/ILMA/G116888_ILMA_vol70_no3
https://www.nxtbook.com/ygsreprints/ILMA/G115555_ILMA_vol70_no2
https://www.nxtbook.com/ygsreprints/ILMA/G114774_ILMA_vol70_no1
https://www.nxtbook.com/ygsreprints/ILMA/g110500_ILMA_vol69_no12
https://www.nxtbook.com/ygsreprints/ILMA/g110500_ILMA_vol69_no11
https://www.nxtbook.com/ygsreprints/ILMA/g110500_ILMA_vol69_no10
https://www.nxtbook.com/ygsreprints/ILMA/g109884_ILMA_vol69_no9
https://www.nxtbook.com/ygsreprints/ILMA/g109284_ILMA_vol69_no8
https://www.nxtbook.com/ygsreprints/ILMA/g108494_ILMA_vol69_no7
https://www.nxtbook.com/ygsreprints/ILMA/g107507_ILMA_vol69_no6
https://www.nxtbook.com/ygsreprints/ILMA/g106483_ILMA_vol69_no5
https://www.nxtbook.com/ygsreprints/ILMA/g105803_ILMA_vol69_no4
https://www.nxtbook.com/ygsreprints/ILMA/g104743_ILMA_vol69_no3
https://www.nxtbook.com/ygsreprints/ILMA/g103647_ILMA_vol69_no2
https://www.nxtbook.com/ygsreprints/ILMA/g102869_ILMA_vol69_no1
https://www.nxtbook.com/ygsreprints/ILMA/g101930_ILMA_vol68_no12
https://www.nxtbook.com/ygsreprints/ILMA/g100836_ILMA_vol68_no11
https://www.nxtbook.com/ygsreprints/ILMA/g99200_ILMA_vol68_no10
https://www.nxtbook.com/ygsreprints/ILMA/g98468_ILMA_vol68_no9
https://www.nxtbook.com/ygsreprints/ILMA/g97711_ILMA_vol68_no8
https://www.nxtbook.com/ygsreprints/ILMA/G96767ILMA_vol68_no7
https://www.nxtbook.com/ygsreprints/ILMA/G95397ILMA_vol65_no6
https://www.nxtbook.com/ygsreprints/ILMA/G94323ILMA_vol68_no5
https://www.nxtbook.com/ygsreprints/ILMA/G93127_ILMA_vol69_no4
https://www.nxtbook.com/ygsreprints/ILMA/G91785_ILMA_vol68_no3
https://www.nxtbook.com/ygsreprints/ILMA/G90956_ILMA_vol68_no2
https://www.nxtbook.com/ygsreprints/ILMA/G89146_ILMA_vol68_no1
https://www.nxtbook.com/ygsreprints/ILMA/G87981_ILMA_vol67_no12
https://www.nxtbook.com/ygsreprints/ILMA/G85409_ILMA_vol67_no11
https://www.nxtbook.com/ygsreprints/ILMA/G83595_ILMA_vol67_no10
https://www.nxtbook.com/ygsreprints/ILMA/G81672_ILMA_vol67_no9
https://www.nxtbook.com/ygsreprints/ILMA/G80238_ILMA_vol7_no8
https://www.nxtbook.com/ygsreprints/ILMA/G79388_ILMA_vol7_no7
https://www.nxtbook.com/ygsreprints/ILMA/G78361_ILMA_vol7_no6
https://www.nxtbook.com/ygsreprints/ILMA/G77448_ILMA_vol7_no5
https://www.nxtbook.com/ygsreprints/ILMA/G75899_ILMA_vol67_no4
https://www.nxtbook.com/ygsreprints/ILMA/G75036_ILMA_vol67_no3
https://www.nxtbook.com/ygsreprints/ILMA/G72720_ILMA_vol67_no2
https://www.nxtbook.com/ygsreprints/ILMA/G72220_ILMA_vol67_no1
https://www.nxtbook.com/ygsreprints/ILMA/G70970_ILMA_vol66_no12
https://www.nxtbook.com/ygsreprints/ILMA/G69813_ILMA_vol66_no11
https://www.nxtbook.com/ygsreprints/ILMA/G67522_ILMA_vol66_no10
https://www.nxtbook.com/ygsreprints/ILMA/G66343_ILMA_vol66_no9
https://www.nxtbook.com/ygsreprints/ILMA/G64859_ILMA_vol66_no8
https://www.nxtbookmedia.com