Panic buying fuel

[Mudball]

This is true…but the best tightrope walkers avoid doing so where the wind is likely to suddenly change and subject the walker to strong gusts…they mitigate the risk and either choose to walk elsewhere or ensure they have a net or safety harness.

And so for fuel, if JIT means walking a tightrope then one obvious mitigation would be to ensure that there are sufficient drivers and tankers immediately available to support a sudden increase in demand. And clearly these last couple of weeks tell us that that is not currently the case. The industry and JIT in respect of fuel, essentially requires supernumeracy…and that will cost us all at the pump unless we can tap into a ready supply that is not paid by UK business to be on stand-bye.

JIT has been part of supply chains for decades now. In fact it would have fine tuned over the years to cope with a level of unexpected or seasonal demand eg. If heavy snow is predicted in a region, they might ensure more diesel etc. A run on a petrol station is not a normal event and is not baked into the thresholds. They may do desktop scenario planning. Last week unfortunately, it happened and it was coupled with other factors like panic buying, lack of drivers etc, the system did not have time to react. I am not assuming it will change the JIT models, they may fine tune how much is available before replenishing. Also scenario planning will incorporate new elements around lack of drivers, media frenzy, incompetence of those who lead us etc.

 

[Mudball]

The 'Lean' supply chain reduces costs. If you want to pay more for products then companies might hold buffer stocks- but I suspect not as its become an embedded concept as the high ROI is liked by the city and shareholders.

More succinct than me…

 

[Lord Tyrion]

JIT has been part of supply chains for decades now. In fact it would have fine tuned over the years to cope with a level of unexpected or seasonal demand eg. If heavy snow is predicted in a region, they might ensure more diesel etc. A run on a petrol station is not a normal event and is not baked into the thresholds. They may do desktop scenario planning. Last week unfortunately, it happened and it was coupled with other factors like panic buying, lack of drivers etc, the system did not have time to react. I am not assuming it will change the JIT models, they may fine tune how much is available before replenishing. Also scenario planning will incorporate new elements around lack of drivers, media frenzy, incompetence of those who lead us etc.

To be fair to the system, there was always sufficient fuel, the crucial bit in my eyes although perhaps not to other people. The issue became getting it out frequently enough to cope with the spike in demand. I would be far more worried about a lack of fuel than the ability to get it into the stations. Transport should be relatively easy to resolve, the physical lack of fuel, much more difficult.

 

[Mudball]

To be fair to the system, there was always sufficient fuel, the crucial bit in my eyes although perhaps not to other people. The issue became getting it out frequently enough to cope with the spike in demand. I would be far more worried about a lack of fuel than the ability to get it into the stations. Transport should be relatively easy to resolve, the physical lack of fuel, much more difficult.

Dont start a new round of panic buying... Golf balls are in shorter supply than petrol at the moment.

But i agree with your point - dialing up the transport velocity is an easier problem to solve. Apparently not acc to the Govt, since a whole of 27 EU drivers have applied for the new visa.

 

[SwingsitlikeHogan]

Dont start a new round of panic buying... Golf balls are in shorter supply than petrol at the moment.

But i agree with your point - dialing up the transport velocity is an easier problem to solve. Apparently not acc to the Govt, since a whole of 27 EU drivers have applied for the new visa.

Not sure how you dial up transport velocity without more drivers and more trucks. The latter is easy. Where do the former come from when they are required to cope with a surge in demand.

pNursing used to cope with issues of workload when numbers were down for whatever reason, by student nurses being mostly trained on the job and supernumerary. Not so nowadays - and hospitals have to go to expensive agency nursing when numbers are down. Maybe that’s an answer - agency tanker drivers - but we know they’d be very expensive and so we’ll be asked to foot the bill to some degree.

 

[Lord Tyrion]

Not sure how you dial up transport velocity without more drivers and more trucks. The latter is easy. Where do the former come from when they are required to cope with a surge in demand.

pNursing used to cope with issues of workload when numbers were down for whatever reason, by student nurses being mostly trained on the job and supernumerary. Not so nowadays - and hospitals have to go to expensive agency nursing when numbers are down. Maybe that’s an answer - agency tanker drivers - but we know they’d be very expensive and so we’ll be asked to foot the bill to some degree.

I suspect most tanker drivers are now contractors, either private or more likely via a firm. The days of fuel companies employing their own drivers are largely gone, sadly, as a cost cutting measure. There will be drivers around, they just need to be enticed to do the job. No doubt wages have been driven down by the fuel companies screwing down contracts. The main way for firms to win these is to reduce pay and conditions. It seems as though this finally caught up with BP and this is the price. It may lead to higher prices, they may take it on the chin elsewhere and absorb costs, but in the grand scheme of an oil companies turnover, the pay of tanker drivers is pretty darned small.

 

[Mudball]

I suspect most tanker drivers are now contractors, either private or more likely via a firm. The days of fuel companies employing their own drivers are largely gone, sadly, as a cost cutting measure. There will be drivers around, they just need to be enticed to do the job. No doubt wages have been driven down by the fuel companies screwing down contracts. The main way for firms to win these is to reduce pay and conditions. It seems as though this finally caught up with BP and this is the price. It may lead to higher prices, they may take it on the chin elsewhere and absorb costs, but in the grand scheme of an oil companies turnover, the pay of tanker drivers is pretty darned small.

Other than the bad press... has any Oil company or independents lost any money in this fiasco? you could argue that some may have actually made a few extra bucks..

 

[Piece]

Queues have definitely died down in my area this last few days

 

[Neilds]

Not sure how you dial up transport velocity without more drivers and more trucks. The latter is easy. Where do the former come from when they are required to cope with a surge in demand.

pNursing used to cope with issues of workload when numbers were down for whatever reason, by student nurses being mostly trained on the job and supernumerary. Not so nowadays - and hospitals have to go to expensive agency nursing when numbers are down. Maybe that’s an answer - agency tanker drivers - but we know they’d be very expensive and so we’ll be asked to foot the bill to some degree.

They need to look at the whole package for drivers. I'm not sure I would be willing to retrain to get similar to what I am on now to sleep in my truck in laybys, eat overpriced, crap service station food, etc. From what is being said, these issues are causing as many to leave as the bad pay.

Although I am led to believe there are certain perks to be had in laybys at night

 

[Lord Tyrion]

Other than the bad press... has any Oil company or independents lost any money in this fiasco? you could argue that some may have actually made a few extra bucks..

Oil companies have scored big time in this. For those big boys who extract, they have made even more. Their costs are the same but demand ha pushed prices up. It's a win win for them

 

[SocketRocket]

They need to look at the whole package for drivers. I'm not sure I would be willing to retrain to get similar to what I am on now to sleep in my truck in laybys, eat overpriced, crap service station food, etc. From what is being said, these issues are causing as many to leave as the bad pay.

Although I am led to believe there are certain perks to be had in laybys at night

There must be good business opportunities to provide rest facilities for truck drivers, the question is why are they not available, is it that the Drivers or their employers are not prepared to pay for them? They seem to be available in other countries.

I don't understand whether electric trucks are a realistic proposition in the near future, if they're not then why don't we make more use of the rail infrastructure to move freight between major regional depots where road transport could carry out the local distribution. It would certainly free up the national road system somewhat.

 

[bobmac]

I don't understand whether electric trucks are a realistic proposition in the near future,

That would be weird, electric trucks delivering petrol/diesel

 

[SocketRocket]

That would be weird, electric trucks delivering petrol/diesel

I kind of thought the idea of electrifying trucks was to reduce the need for petrol/diesel. If we have to move away from fossil fuel usage then I guess trucks will be a part of that plan.

 

[chrisd]

There must be good business opportunities to provide rest facilities for truck drivers, the question is why are they not available, is it that the Drivers or their employers are not prepared to pay for them? They seem to be available in other countries.

Living just a few miles from the channel tunnel and also one of the main routes to and from Dover we get plagued with lorry drivers, particularly from the European countries pitching up in lay byes and any where else that they dont have to pay for when coming to and from Europe.

Its always been understood that they get an allowance to go to the various truck stops but if they save the money by stopping in a layby that increases their take home pay. Meanwhile someone in the UK clears up the mess they leave at ratepayers expense

 

[bobmac]

I kind of thought the idea of electrifying trucks was to reduce the need for petrol/diesel. If we have to move away from fossil fuel usage then I guess trucks will be a part of that plan.

I guess that would depend on the mileage.
There are still talks about using hydrogen for the long haul trucks but electric for the short haulers.
I'm looking forward to the day when DPD deliver my parcel in an electric van.

https://www.commercialfleet.org/new...oyal-mail-commits-to-3-000-more-electric-vans

 

[Beezerk]

Queues have definitely died down in my area this last few days

Bloody hope so, driving down to Hillingdon this weekend and I'll need fuel on the way home.

 

[Imurg]

Still plenty of queues but they are shorter...seems to be lack of diesel in the town at the moment...

 

[rulefan]

Plenty of fuel everywhere now. Everybody is stuck at home with an empty fuel tank.

 

[Robster59]

I guess that would depend on the mileage.
There are still talks about using hydrogen for the long haul trucks but electric for the short haulers.
I'm looking forward to the day when DPD deliver my parcel in an electric van.

https://www.commercialfleet.org/new...oyal-mail-commits-to-3-000-more-electric-vans

Our company has committed to hydrogen power for its trucks. The fact we produce the hydrogen might help.

 

[ColchesterFC]

Plenty of fuel everywhere now. Everybody is stuck at home with an empty fuel tank.

Or everyone is now at home with a full fuel tank having panic bought fuel that they didn't actually need.