Transportation Insight Hosts Fuel Solutions Press Conference
HICKORY, NC, July 7, 2008 – Transportation Insight, a freight cost management and logistics consulting firm, hosted a press conference led by U.S. Congressional Representative Patrick McHenry to discuss the impact of rising fuel prices on freight costs, small businesses, and households.
Congressman McHenry stated that because global demand for oil will continue to increase, Congress “must take action now to lower prices and move us toward energy independence” by working toward specific solutions.
Paul Thompson, co-founder and CEO of Transportation Insight, followed Congressman McHenry at the podium to reinforce the expediency of finding a solution to rising fuel costs. “Oil prices are everybody’s problem,” he said. Transportation Insight recognizes the impact of rising fuel costs and provides numerous resources to maximize client profitability.
According to the Department of Energy, at the time of the press conference, diesel fuel costs had risen approximately $.08 per gallon over a one week period and approximately $1.878 per gallon since the same time in 2007. At a record high of $4.839 per gallon this summer, diesel fuel costs are seriously impacting raw material costs, operating costs, transportation costs, and consumer spending.
In relation to the rise in fuel costs, shipping costs have increased as well. That increase often forces retailers to raise prices of goods. The higher cost of groceries is the biggest source of concern for many families, but those higher prices are a direct result of the increased cost of diesel.
To illustrate the impact fuel prices have on the shipping industry and everyday goods delivered, Mr. Thompson presented the simple example of the paper cup. By the time a paper cup arrives in a cupboard, it has traveled on at least six trucks and across 1500 miles. Transportation Insight helps to mitigate the cost of moving products – such as paper cups – across the miles by analyzing and optimizing transportation networks.
Also speaking at the press conference were local business leaders Jeff Hale, CFO of Hickory Printing, and Carey Latimer, Vice President of Operations for Von Drehle Corporation. Mr. Hale stated that because consumers’ buying power is restricted, the flow of currency into the economy is shrinking. Likewise, he added that “rising fuels costs also limit the hiring power of small companies” since more of their budgets must be dedicated to the cost of shipping goods necessary for business.
Mr. Latimer linked the restrictive nature of high fuel prices to growing problems with customer service. Businesses often cannot supply customers with the products they need as promptly as in the past.
Paul Thompson and Congressman McHenry offered closing remarks which welcomed innovative energy solutions. Congressman McHenry remained to answer questions and to discuss the issue further with attendees.
About Transportation Insight, LLC
Transportation Insight is a global lead logistics provider with more than $1.2 billion in supply chain spend under management. For over a decade, the 3PL has helped companies improve profitability and competitive advantage by providing customized supply chain solutions. Transportation Insight offers a co-managed logistics form of 3PL, carrier sourcing, freight bill audit and payment services, state-of-the-art transportation management system (TMS) applications and business intelligence. Additional competencies include international transportation, warehouse sourcing, LEAN consulting and supply chain sourcing of indirect materials. For more about Transportation Insight, visit www.transportationinsight.com.