Code Red, Code Red! Diesel Company Warns Historic Shortages Are On The Horizon

By Ryan Canady | Thursday, 03 November 2022 03:45 PM
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Code Red, Code Red! Diesel Company Warns Historic Shortages Are On The Horizon

A diesel logistics company put out a red alert for at least seven states in the southern United States regarding potential shortages of diesel supplies coming to those areas very soon.

The company is called Mansfield, and they released an “Alert Level 4” for the states of North Carolina, Tennessee, Virginia, Maryland, Alabama, South Carolina, and Georgia. These are the areas where they are seeing the biggest potential threat to normal levels of supply of fuel products very soon. They are concerned about what this could mean for fuel supply levels in those areas, and understandably, they are warning right now to let people know that they need to prepare themselves for possible shortfalls.

The company said the situation is similar to what we said in May when supply got tight and prices at the pump increased by nearly $1 per gallon. That can create quite an economic shock to the system, and companies like Mansfield must help us get ahead of these things. Fortunately, they issued the alert to warn people about the potential danger in the days and weeks ahead.

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The alert stated that certain hot spots within the forecast could become particularly economically challenging for those areas. For example, areas of Tennessee might see problems in its ability to get the diesel supplies necessary to keep things running as smoothly as possible.

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The alert from the company continued by saying:

“At times, carriers [are] having to visit multiple terminals to find supply, which delays deliveries and strains local trucking capacity.”

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Diesel fuel inventories are about 45% below their average in many parts of the South. The situation is problematic. There was already concern about tight supply, and now there are logistics companies that monitor these things saying that it is about to get worse.

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A newsletter published by the company said that the nation’s fuel supply is down to about 25 days worth at this time. That is significantly below the 35-40 days’ worth typically held in reserve. This low supply could make for fuel scarcity issues, and analysts anticipate that this might get people’s nerves up even more about what they are witnessing.

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