sure, agree 110% with ya, pelletguy! Transportation is shockingly expensive, prices are generally set by distance from the source. For instance a typical Doug Fir pellet is generally pretty good quality, and the price per ton FOB the mill, isn't bad at all.....I'm jealous of you folks who live out there and have the availability of premium fir pellets with minimal transport. Getting them out here though requires quite a lot of handling (transportation). Almost exclusively, they are brought out by rail, either palletized, or bulk. The bulk pellets are bagged closer by, but still require handling AT LEAST twice....once in the bulk form by rail, secondly after bagging to the pellet distributor or retailer, and maybe thirdly, to you, then end user. Each time its moved, it costs more. Now, if its brought out palletized, its even worse, since you have to add unloading from the rail at a reload, then loading onto trucks. There's also more breakage that way as well..... And yep, trucks have become increasingly difficult to find and schedule, THAT situation is getting worse, not better.
Seems to be no problem getting transportation for bagged mulch, topsoil, etc. Does not seem to be that great a price impact on those non essential items either. I thinks its all a big hogwash conspiracy by the big boxes to keep prices inflated on pellets!!!!
Thanks Pell it…you might be on to something here. Do you mind if I use that logic next time I have to negotiate with the CN, BN and CSX for a new contract?…I feel that might be the leverage I am looking for so they will lower their rates. I have been looking for something genius like this for a few years now….thanks again...
Or, now this is just a thought. Why not explain why you disagree with his logic??? How IS there plenty of trucking for all other goods needed but not pellets?? Seems like a valid question, no?? As "North American Sales Director" did you take any Public Relations courses? If not the University of Phoenix is right near you.........
Mmmmm, Yummy. Just the right amount of salt and butter. Getting thirsty though, Is it too early for beer? Popcorn for breakfast, Dis is the life!
Pellets are sold year round in NE....top soil, mulch is very limited and usually a small window. More of those products get shipped in vans, most pellets get shipped on flatbeds, When was the last time you saw 20 people lined up outside a store waiting to buy topsoil....Happens daily and has been for the last 3-4 weeks in most parts of NE for pellets. Another words the demand is overwhelming this time of year, once the boxes run out and the weather is still cold...the economy is improving, slowly...but it is improving and that has sucked up excess trucking..... You guys believe what you want to believe....but I live this stuff daily....trucking is harder to find than last or the year before...not impossible to find....but harder....sorry gotta go, I have truckers to book and load to move......oh by the way, you too can go to the University of Phoenix....its mostly online.. Going to stick to sales thanks, PR isn't my strong suit
Myself being on the producer/supply end of the home heat fuel business. I find times like these are good times to weed out customers that tie up my trucks while unloading or ones that are unprepared when we are scheduled to show up. Those customers who don't/won't pay COD and want terms. Customers who order and have every excuse under the sun to NOT take a load on a day when I have a backhaul. Customers with inadequate facilities for a drop.Customers who are on the outer limits of my delivery area. Etc. I'm sure pellet producers are on the same page. The retailer with all his ducks in a row,,, like a big box or a high end stove shop is prolly the first to get delivery with the others pushed back on the list. The shortage is real. The reasons some retailers aren't getting product could be one of many.
All those trucks were busy hauling lawn mowers, yard tractors, wheelbarrows, BBQs, and Gazebos for the big boxes.
Ow that hurt! (but thanks for confirming my suspicions) "Me thinketh thou doth protest too much" If it is such a logistical nightmare to ship wood pellets overland across a country that has had transcontinental shipping abilities approaching 150 years, maybe it is time to invest in manufacturing facilities closer to your "bread and butter" target consumer market. Or you could just load all those pellets on ships and let the overseas customers burn up all that glorified horse bedding you peddle.
