Weekend Update – Long Lines Delay Deliveries

Terminal Truck Lines Delay Deliveries

While we’re at the very early stages of normalizing fuel supply, one of the largest concerns currently hindering quick deliveries in Texas, Louisiana, and certain Southeast markets is long lines at terminal racks.

For every major market (Atlanta, Dallas, Houston, etc), fuel trucks fill up at a select few terminals, massive tanks that receive product (typically by pipeline or by rail), store the fuel, and distribute products to fuel trucks. In Houston, Dallas, and other markets in Texas, some terminals have been offline due to power outages.

For racks that are operational, every fuel truck in the market must fuel in the same place, leading to lines at the rack lasting 6-8 hours, or more in some markets. Many drivers are waiting in line 8 hours before long-hauling product to another city (or even another state, in some cases). While under normal conditions a truck can make numerous deliveries daily, some trucks have only been delivering one or two deliveries each day, putting significant strain on fueling logistics. Markets have been significantly affected by the one-two combo of limited fuel supply and long lines at rack.

Texas Market Updates

Dallas: Outlook looks tight for the next 2-3 weeks due to Port Arthur refinery being down. With the Magellan Pipeline coming back online, we expect allocation to begin improving around Sept 5.

Houston: North Houston terminal is running, but the Magellan terminal remains offline. Limited supply is available, though extremely long lines at the rack are delaying deliveries.

San Antonio: Very limited product exists in the San Antonio market. One of the pipelines feeding San Antonio is up and running now, so we expect supply to begin flowing into the city by Sept 6. In the meantime, nearly all deliveries are coming by long haul.

Corpus Christi: Supply is continuing to imrpove, and is being shipped to other areas as necessary.

Southeast Market Update

Colonial’s gasoline and diesel lines are up and running, though not accepting product form Houston yet. Colonial has announced they may begin accepting Houston product by the end of today. Diesel shipments are running on a 7 day turn, better than previously expected. The main concern is gas supply, particularly for the Atlanta market, which expect to be nearly dry in the coming days. The next gasoline batch from Colonial is not due until Sept 11. The Plantation Pipeline, which also supplies the Southeast, is operational and running normally, but its capacity is significantly lower than that of Colonial.

Market Summary

Mansfield continues to work around the clock to help our customers fuel during the storm. If you have any questions or need to secure supply in the Gulf area or in the Southeast along the Colonial Pipeline, please reach out to your sales rep or customer relationship manager for more information about ordering product. Please place orders 48-72 hours in advance whenever possible, to allow time to secure supply and freight during the shortage.

Code Red (Areas with significantly reduced or unavailable supply)

• Austin, TX
• Beaumont, TX
• Buda, TX
• Dallas/Ft Worth, TX
• Houston, TX
• Port Arthur, TX
• San Antonio, TX
• Waco, TX
• Colonial Pipeline Markets (Mississippi through Maryland)

Code Orange (Areas with limited supply availability)

• Corpus Christi, TX
• Edinburgh, TX
• El Paso, TX
• Harlingen, TX
• Odessa, TX
• Lake Charles, LA
• Baton Rouge, LA

Tank Maintenance Alert: If your company has underground storage tanks in the impacted zones, make sure you’re familiar with the EPA’s safety recommendations for returning the tank to service. NACS Online has compiled the information you need to make sure that no further damage comes to your tank. Contact your Mansfield sales representative if water pump-outs and tank cleanings are necessary.