Supply Chain by the Numbers
   
 

- Jan. 22, 2015 -
   
  Supply Chain by the Numbers for Week of Jan. 22, 2015
   
 

Diesel Prices Finally Reacting to Falling Oil; Just What Would be Economic Impact from West Coasr Port Strike? The Mexican Truckers are Coming; Container Ships Just Got Even Larger
   
 
 
 

$2.93

That's the level to which average diesel prices fell per gallon last week, as diesel finally starts to react to dramatically decreasing oil prices the way consumer gasoline costs have plummeted. That $2.93 price is down seven cents from the week before, 18 cents from the last week in December, and 54 cents from the last week of September, as carriers and shippers finally get to share in the falling oil price bounty.
 
 


 
 
 

$2 Billion

That's the approximate economic cost per day that would result from a stoppage of container traffic at West Coast ports in the event of a strike or lockout, as the labor negotiations seems to be worsening after more than six months since the previous contract expired. That figure comes from estimates made jointly by business groups such as the National Retail Federation and the US Chamber of Commerce. Our thinking is that the number is exaggerated in the sense that much of the initial losses would be recovered once an agreement was reached - the 2002 lockout lasted 10 days - but there is no doubt such a move would cause havoc in many supply chains.
 
 
 
 
 
19,000

That's the number of TEU the new CSCL Globe from Hong Kong-based China Shipping Container Line can carry, as it embarked on its first voyage from Asian to Europe starting in December. That makes it the world's largest container ship, taking over from the Maersk Triple E's, which launched in 2013 and carry about 18,000 TEU. But the CSCML Globe itself will hold the top spot for an even shorter period than the Triple E did. Soon to set sail in its first voyage is the MSC Oscar, which is capable of carrying about 120 more containers than the new CSCL ship.
 
 
 
 

1.5 Million

That's how many miles 15 Mexican truckers logged in the US under a second pilot program that ended in October, leading the Federal Motor Carrier Safety Administration to recently make the program permanent - as required by NAFTA 20 years ago - and begin accepting applications from any interested firms. While strongly opposed by the Teamsters and the Owner Operator Independent Drivers Association (OOIDA), many think the impact will be modest, as the current use of drayage drivers to get across the border may be more asset-efficient for some Mexican carriers, and the Mexican firms would incur big deadhead miles if they can't get a return load back to Mexico.
 
 
 
 
 
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