Are you looking for solutions to penetrate a new market or to supplement your current supply in a region? Consider transloading. Transloading can be a less expensive, eco-friendly alternative to import and export products.
Background
A tapped out fuel market negatively impacted a western-based convenience store’s gas/diesel supply causing frequent shortages and significant price increases. It was critical they find a reliable way to keep their stores fueled while keeping prices down for their consumers. KAG logistics suggested a transloading solution.
Solution
KAG Logistics repurposed a local transloading facility to begin importing gas and diesel into this region for the client. The result? The store is kept in fuel, the prices are kept down, and there was a double digit savings on 30 million gallons of product per year.
Additionally, this convenience store chain targets customers for the state’s numerous parks and recreation areas. Transloading allows them to bring in a reliable supply of dyed diesel for seasonal off-road activities. The solution has been so successful, the client’s business in this location has grown 200% since implementation, with plans to replicate this method in additional markets.
Transloading can also be a viable option for exporting products in order to stay in balance with shifting market price fluctuations. For example, an ethanol producer was being squeezed out of the market when its customers began importing ethanol at a much lower price than the domestic ethanol company could produce it.
The producer was left with two options – to close the doors to their business or diversify. They opted to diversify into the alcohol market, distributing food-grade ethanol to be made into brandy, vodka, seltzers, and other spirits. They were referred to KAG Logistics’ transloading service to export their product to alcoholic beverage companies across the U.S., and the company remains in business today.
Results Overview
- Alleviated supply constraints
- Ensured consumers with access to fuel
- Stabilized area fuel prices
- Provided alternative solution to shifting market price fluctuations
Overall, transloading can be a proactive and effective solution to address immediate supply challenges, support economic activity, and maintain essential services.
This strategy can benefit a wide range of industries including manufacturing, chemical, food, retail, merchant gases, military, construction and petroleum.
