This fireside chat recap is from Thursday, the third day of FreightWaves’ Global Supply Chain Week.
FIRESIDE CHAT TOPIC: How the fuels supply chain held up during the pandemic
DETAILS: While there were shortages of all sorts of products during the pandemic, and many of them continue today, fuel supply never reached crisis levels. Supplies got tight but did not buckle. Longtime consultant Gary Bevers of Bevers & Co. reviews how that key part of the economy held up during those difficult times.
KEY QUOTES FROM BEVERS:
“The industry has figured out that you can’t have a 60-day delay to resupply a terminal in a big event.”
“The powers that be, the majors, are way upstream and then you have local distributors. Basically they all just stayed calm and waited for the other shoe to drop, whether there was going to be regulatory edicts put in place during hurricanes. But in this case the government sat on the sidelines and let the industry work it out for itself.”
(On the speed of price changes at the pump): “Most retailers are independents. The gas station owners are small guys and they look across the street at the other station because if they raise their price more than 2 cents, they lost customers. So they wait to follow Joe around the corner. They will run their margin down until they are almost making no money.”