This year is shaping up to be a very challenging year. Large demand from Europe, and Asia. Many of the Quebec mills now have significant export business. All shiping through the Port of Montreal. I have heard that LG between domestic and export is now oversold for the year. I know that very popular pellets in the Northeast including Vermont, Spruce Pointe, Okanagan reds have also sold out.Trucks will still be available from certain dealers but they are on allocation, which means they are only allotted a certain number of trucks and that's it. Another concern is trucking. It's very tough get trucks right now, and surcharges are way up. The only way to get product is to pay more for transportation. I talked to one large Ct. dealer and he told me he hasn't had a truck from his west virginia supplier in more than 6 weeks. Can't get trucks.Lastly and most important, even if production and demand were in line on a yearly basis, that's not how pellets are bought. When the first snow falls there won't be enough supply or trucks around to get pellets to dealers. There is no overhang of inventory from last year. Maybe I'm wrong but I thought I'd throw it out there.
New England (MA, CT, ME, NH, VT, RI) So you think last year pellets were tough!!
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Pete Zahria
Minister of Fire
What's the reason for this? Fuel prices are low right now, so why the difficulty getting a truck to carry product from A to B? Is it a regional problem?
Gas prices are lower right now. I know this may be hard to believe, but with the economy getting better ( retail sales) pellets compete with every other commodity. Have a look in your grocery store to see how much prices have jumped, mostly due to increased transportation. Truckers were running at break evens or losses for the last few years. Too many trucks, not enough business. Even though they have seen fuel costs drop they have increased their rates so they can make a little money.
Pete Zahria
Minister of Fire
I hope you are right.
But the people we do business with aren't jumping all over that opinion...
As for the trucking issue. It isn' t just the cost of fuel that is the problem.
Another factor is the difficulty 'getting' truckers. There are plenty of pellets on
the ground, moving them has been difficult.
Dan
Gasoline prices right now really don't matter. The majority of trucks used to transport pellets are diesel powered. On road diesel fuel is only 8 cents per gallon cheaper that it was a year ago at this time.
That's weird. I drive the section of the mass pike between Auburn and Framingham every day, and it seems like these days I'm seeing more flat bed trucks on the road than ever. Probably just a coincidence, but I also notice that the vast majority of them are not carrying a load.
I was at the place I get pellets at, today, ordered a ton for delivery tomorrow. As I was leaving, a semi pulled into the lot with 24 ton from the mill...........
I backed up our logistics person at the last company I worked for. Flatbeds were often hard to book; there's just not as many of them for one. That is compounded with the general reluctance to haul to this area because of the likelyhood they would be returning empty (not much manufacturing in Maine these days). Just my $0.02.
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