Transport Troubles

By Jim Stavis

     If it wasn’t hard enough just
finding enough steel to service
customer needs, the challenge
we now face is getting steel
shipped out from the producing
mills. It may seem like the
easiest part of the transaction
should be getting it from point
A to point B, but there are
many factors that have made
this process a problem.
     For domestic produced
steel, where the majority of
products are now made, it’s a
railcar shortage that has left
material stacked up at the mill
waiting to be shipped. A few
years ago when the domestic
industry was creeping along,
the railroads responded by
pulling unused railcars off
their tracks. Now with the
steel industry enjoying a
resurgence, there are not
enough railcars to move the
steel that customers are now
demanding. As a result, steel
mills are being forced to use
more truck and barge
transport whenever possible.
     The situation has put a
pinch on steel buyers who are
seeing extended lead times for
receipt of their steel. These
delayed lead times should
extend through the rest of this
year. The problem with truck
shipments is the increasing
cost of fuel and an aging
highway system that makes
shipping more dangerous. In
Los Angeles the freeways are
jammed with commuter traffic
that makes truck shipment all
the worse. On the west coast, we rely
on the port located in Long
Beach for the majority of
imported steel products.

There too has been a
shortage of ships for the
hauling of raw materials as
China has taxed the world’s
supply of ocean freighters. The number of vessel movements is up nearly 20%
over last year. The vessel
manufacturers cannot build
them fast enough to keep up
with the rising demand.
     The steel industry relies
upon a cost-effective and
efficient transportation
industry to bring their
products to market. Unlike
Fed-X or UPS, there is no
transportation leader that we
can turn to when products
require expedited delivery. We
are somewhat at the mercy of
the producing mills and their
railway alliances. It is indeed a
system in need of change.

What a Difference a Century Makes

By Jim Stavis

Here are some wild statistics of where we were 100 years ago in 1904.

• The life expectancy in the U.S.
was 47 years (that counts me out). Only 8% of homes had a telephone (more today have cell phones)

• Sugar cost 4 cents a pound,
eggs were 14 cents a dozen and
coffee was 15 cents a pound (pre-
Starbucks).

• The American flag had 45
stars since Oklahoma, Arizona,
New Mexico, Hawaii and Alaska
were not states yet (thank God
we got Hawaii)

• The population of Las Vegas
was 30 people (I hope they have
invested in property there)

• 20% of adults could not read
or write. Only 6% of all
Americans graduated high school
(Keep that one from your kids)

• There were no televisions,
airplanes, AOL, etc. In fact there
weren’t a whole lot of things that
we take for granted today. Think
of where we will be in the next
100 years.