The person who weathers a disaster well is a prepared person. This issue of the Pallet Enterprise features an article on key challenges facing the industry and things you need to do to prepare.
One lesson the pandemic has taught us is that almost anything can happen. Just this past week, motorists on the East Coast and Southeast were shocked to learn of a ransomware attack that crippled part of the U.S. fuel infrastructure. Panic buying combined with more seasonal driving activity spurred demand this week. Many fuel stations ran out of gas amid long lines. While this was a temporary problem, it does bring to the surface just one more thing that pallet and lumber companies have to plan for.
Beyond this short-term supply blip, CNN Business warned in late April that shortages could exist in some areas this summer as a lack of qualified tank truck drivers could hamper delivery. According to CNN Business, the National Tank Truck Carriers (NTTC) forecasted that somewhere between 20-25% of tank trucks in the fleet are parked heading into the summer due to a lack of qualified drivers. At this point in 2019, only 10% of trucks were idle for this reason.
As gas demand decreased in 2019 and 2020, drivers shifted to other industries or retired. And they may not be back quickly. It requires special training to drive a tanker truck. Unfortunately, COVID-19 worries caused many truck driving schools to shut down for a period of time. Also, the Drug and Alcohol Clearinghouse, a new federal program that identifies people with prior alcohol or drug violations, has disqualified up to 60,000 existing truck drivers. What does this mean? It all depends on demand. But there could be some fuel shortages this summer in some areas. And there certainly will be competition for drivers and trucks when it comes to shipping everything from food to fuel to pallets.
Smart pallet companies need to plan for these challenges. When it comes to businesses planning for temporary fuel shortages, the Department of Energy encourages the following steps:
• Plan ahead and review your fuel supply contracts—Arrange priority contacts with fuel suppliers, including an out-of-region supplier, and include language for providing fuel supplies during an emergency. Can your fuel suppliers operate with no power? Do they have gravity-fed systems? What if your fuel supplier can’t access your facility?
• Keep adequate supplies on hand —Take care in considering how much fuel you can safely store and for how long. Gasoline and diesel fuel stored for long periods may need added chemicals to keep them safe for use. Check with your supplier for recommendations.
• Store all fuels in specifically designed containers in a cool, dry, well-ventilated place, away from all potential heat sources. Check aboveground storage tanks, pipes, and valves regularly for cracks and leaks, and replace damaged materials immediately.
Pallet companies will want to optimize backhauls and reduce empty miles as well as decrease hauling activity that doesn’t really pay good money. Some pallet companies are deciding not to handle the transportation aspect of returning stray rental pallets for CHEP and PECO. This keeps from tying up their trucks and limited drivers.
Another key consideration is passing along higher fuel costs. As fuel dropped in price significantly last year, many pallet companies dropped fuel surcharges if they ever assessed them. But now with fuel on the rise as the economy heats back up, you may want to evaluate your options to quantify and pass along rising fuel costs.
