Dan ... there are a couple of things that you are missing as well I think...I agree with all your comments above, but you have to add...the Canadian dollar/US dollar exchange and the pickup in international business. The Canadian exchange is relatively low and the rise of the world crude oil prices, Canada being a major player in that market, if it rises, don't be surprised if the looney (Canadian dollar) rises as well and that in itself will really pressure Canadian mill/distributor/transport margins. It will make your pellets coming from Canada, not the deal that a lot of them are now and will make even fewer trucks coming south out of Quebec and therefore possible even less and further apart loads of pellets headed into New England. The industrial markets of Europe and Asia are on fire and the demand here has increased hugely in the last 16-18 months...BC/Ontario/Quebec mills are booked solid, along with mills in the south and can't ship product fast enough overseas to offset the use of coal to produce electricity...which takes product from the home heating market...I realize that this is a totally different market from New England, but indirectly it has an impact...The transportation costs are going up for everyone and I have first hand knowledge that some dealers simply aren't or even can't get as much of certain pellets this season as in years past because it just simply costs to much or the lane is very difficult to get trucks into. One more thing....with winter stretching farther into April this season and since Feb had a brief warm spell, generally speaking, the consumer has burnt everything they bought at the beginning of the season and some even have had to come back late in the month to get that extra 5-15 bags to "get them thru", so as a whole the consumers garages and basement's are empty. The mills' inventory yard is empty and the market has shown signs that this will be a full restocking year, unlike last year where mills ended the season with extra stock and cut some great deals to move it in the offseason. I know what dealer's margins are and if their costs go up $6-$10 per ton, there just isn't enough in the margin to start with and they have any other choice but to raise their prices.....Dan is giving you some straight goods above...ignore at your own risk to your pocketbook....
Zactly... just what I been talkin about... The new electronic 'trackers' are HATED. Truckers can drive no more than 11 hours in a 14-hour period of time, and have to take 10 hours of mandatory rest, according to federal regulations. So a guy HAS to comply.. even if he is 30 minutes away.... Dan
That's just not right.............. I have had drivers say that we cannot open damaged boxes to inspect. I tell them, "no problem because I wont sign for a thing and you can put the entire f'ing shipment back on the truck then, bring it back to the dock and explain to your supervisor why you returned with the shipment-all of it, not just the damaged merchandise". A-holes
Fortunately with pellets, we all want the product to move to the consumer. So the reps and the mills work with the dealer on damaged product. We don't refuse as a general rule. I have a couple of minor issues now that will result in credits on the next loads.
That helps. I am dealing with electronic office equipment worth thousands of $$ each and is unusable due to damage. Seller allows refusal t go back for credit and is way easier than accepting, filing insurance claims and waiting for repayment.
For one thing... it isn't the trucker's fault... But the big thing is, we get "some" damage... but on a whole trailer load, if you get 3 or 4 busted bags, you have to eat it.. The guys that deliver to us are awesome guys... own their own stuff.. take care of us in crappy conditions at times... even sleep in the yard sometime.. Dealer has made it up occasionally... just a different situation than yours... Dan
I dont take it out on the trucker because I know that-it happens during transfers at the terminals by fork lift drivers that dont care. But when one of the drivers is an a-hole about it, they get it right back. I will say that is not the norm and generally a sub driver on the route
I agree with a lot of what I read about above....on the manufacturer, retailer, and consumer end. Truckers are under ever-increasing pressure, given new DOT and local regulations, and also the fact that new generations just don't seen to want that type of lifestyle.....it at times isn't an easy one, especially with a family. We TRY to bring in product early, but there's only so much capital one can tie up, as well as space requirements. It becomes problematic when everyone decides to buy, or wait for delivery "until September". How many tons /day, /week, can a driver deliver? Don't think that because of the posts from the more proactive people in this forum that all consumers do the same thing. The GREAT MAJORITY of consumers don't even get into the market before August. I can't give percentages, but, I'd say it's around 70%, they just don't want to deal with it after a long winter season. We send out spring mailers, etc, and that helps, sometimes if only to be able to say "we tried". Trucking......yep, not a lot of back hauling going on out of New England. Which means that the trucker ends up heading back empty, which no one wants. What happens in that case? Yup, we pay for two trips, going AND coming....I don't blame the truckers.....they are theoretically "for profit" as well. So, that adds to shipping costs (doubles it).....and we, retailers pass that on. Sorry, that's how it is. What's going to happen next fall/winter? I've not a clue. There are far too many variables. I wish I knew the answers.....then I wouldn't be working saturdays and sundays. I feel pretty good though, about stating the more or less obvious......pricing won't be less in the summer/fall. Fire away!
Everyone makes a big deal of this trucking situation. They can send down the nice softies pellets and can back haul our hardwood pellets up there. PROBLEM SOLVED!!!
The other issue with bringing pellets up from ezblaze is the tolls a d the driving conditions on I95. Several bridges, jersey turnpike, a d the GW or Tappanzee add to the cost. A d it's a lovely drive.
this hits the nail on the head about Trucking future....... Trucking Shortages Make Wood Pellet Price Rise Inevitable | WoodPellets.com Blog
Don't know... 1st time i read it but it appears to be current situations. specially about youngins who do not want to be truckers... prob cause a CB radio is so 80's.......
Amen to that. Up here, most just want to deal drugs and shoot heroin. Occasionally rob a gas station for excitement.
In some ways... perhaps. However... the "NEW" most significant change is in the Electronic Logging system that they have to use now... It is horrible... It takes so many of the available trucks off the road. Which translates to fewer trucks making deliveries. If they aren't on the road as long, and there are fewer trucks entering the arena, you can see it is a compound problem... from different angles.. Dan
