Keep Your Ear to the Rail – Transportation Costs are Increasing

Keep Your Ear to the Rail

CSXWord on the street is that base oil suppliers, lubricant manufacturers, distributors, and others in the lubricant supply chain have been challenged over the past two months to ship and receive product by rail, specifically CSX Rail (the country’s third largest railroad). This is because CSX is currently restructuring to rationalize infrastructure and consolidate operations.

As is the case when many corporations restructure, there are bound to be some ripples. In the case of CSX, these ripples are reportedly resulting in delays, inconsistency, unpredictability, and longer than expected transit times. As a result, a number of suppliers in the lubricants value chain are feeling the pinch and say they are using alternative methods of transportation (tank trucks) to assure their customers’ needs are met. But whereas the alternative to rail is tank truck, for those involved in transportation, it’s no secret that moving 30,000 gallons by rail is significantly less expensive than transporting 7,500 gallons by tank truck. Further, when suppliers and buyers shift from rail to tank trucks, there are bound to be backups at terminals, and that too adds to costs.

So keep your ear to the rails, because if the challenges in rail transport continue, there is a good chance the higher transportation costs will be passed down the rail to lubricant marketers and ultimately, the consumer.

Ron Hayes Joins Other Distinguished Speakers at the PQIA Lubricant Quality Summit

Hayes will speak about the work the State of Missouri is doing to help protect consumers from obsolete and off-spec Tractor Hydraulic Fluids

ronhayes2

Ron Hayes
Director, Missouri Department of Agriculture, Division of Weights, Measures and Consumer Protection

The Petroleum Quality Institute of America is pleased to announce that Ron Hayes, Director, Missouri Department of Agriculture, Division of Weights, Measures and Consumer Protection; and the Vice-chair of the National Conference on Weights and Measures (NCWM) Fuels and Lubricants Subcommittee will speak at the 2017 PQIA Lubricant Quality Summit in Cleveland, OH on September 14, 2017.

The presentation by Hayes will provide information and insights about the work the State of Missouri is doing to help protect consumers from obsolete and off-spec Tractor Hydraulic Fluids (THF). In addition, Hayes will participate on the summit panel addressing what is being done and what more can be done to assure the quality and integrity of lubricants in the market.

CLICK FOR MORE ON THE PQIA LUBRICANT QUALITY SUMMIT

Update on the DG Class Action

Last week, a Missouri Federal judge rejected most of the arguments in Dollar General’s request to dismiss the class action suit alleging that Dollar General engaged in misleading sales and marketing tactics by selling obsolete motor oil adjacent to motor oils meeting current specifications. With the class action moves on.

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Classified

Two Openings for Regional Sales Managers

WarrenDistributionBased in Omaha, NE, Warren Distribution is a family-owned and operated business dating back to 1922. We are North America’s leading independent blender and packager of lubricants, primarily for our customer’s proprietary brands, which we produce out of our plants in Council Bluffs IA, Glen Dale WV and Guntersville AL. We have a well-earned reputation for being the best in quality, integrity and service.

We have two openings for the Regional Sales Manager role that would support our existing Distributor Channel customers and identify, cultivate and close new accounts. Looking for someone with a solid track record of developing highly collaborative relationships with Distributor principals and their teams. Must have strong product knowledge and applications experience, especially in the Commercial and Industrial segments. Would work out of home office or one of our facilities. Flexible regards location, although preference is for Northeast, Southeast or South Central. If interested, please send your resume and cover letter to Mark Bezek at mbezek@wd-wpp.com.

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