News For and About Lubricant Marketers
September 26, 2005
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LUBE DAY at the POC Draws Big Crowd
Nearly 200 lubricant marketers and manufacturers
were in attendance at the LUBE DAY conference in
Reno on September 19. According to many, the
conference provided them with the first truly
independent appraisal of where the lubricants
business is and where it's heading.
Specifics about the conference and insights and
commentary on some rather controversial statements
made about private label and the value of branded
lubricants and others will be
provide in an upcoming SPECIAL EDITION of Jobbers
World News Briefs.
Katrina Blows in Allocation!
According to a number of lubricant marketers, the
cards and letter started to arrive last week and it
has not been pretty. Most say the same thing and its
Shell for example,
notified its marketers late last week that effective
September 19, 2005, orders for certain SOPUS
lubricants will be limited (in other words allocated).
This action was reportedly taken as a direct result of
Hurricane Katrina’s impact on Chevron Oronite’s Oak
Point lubricant and fuel additive manufacturing
facility in Belle Chasse, La. This plant is a key
supplier of additives to SOPUS and, as discussed in
last week’s Jobbers World News Brief, Oronite
declared Force Majeure due to damage done to the
plant by the storm.
ConocoPhillips – increased freight rates and fuel surcharge
On September 15, ConocoPhillips informed its
marketers that it will be passing along increased
freight rates and implementing an
additional “temporary fuel surcharge.”
Jobbers World was told that the freight rate
increases will impact bulk product out of Los Angeles,
McKees Rock, and Rochester plants. On top of that,
CP will also implement a “temporary fuel surcharge”
for all ConocoPhillips arranged bulk truck and package
truck orders sourced from any of its plants.
In what appears to be an effort by ConocoPhillips to
assure that its marketers remain whole on DFOA
business, marketers say ConocoPhillips will increase
the freight reimbursements on buybacks
and temporarily increasing buyback fees by $0.05 a
gallon to offset the temporary fuel surcharge.
Valvoline Trims the Waistline
According to several marketers, Valvoline recently
thinned the ranks of its field sales reps by close to
15 people. In addition, it announced a price
increase on bulk of $0.28 a gallon set to take affect
on October 24.
the views of some marketers, this increase is not
unexpected and may be no more than an effort by
Valvoline to "catch up" with the rest of the pack
since Valvoline did not put through a bulk price
increase the last time most other majors did.
CITGO's prices up and its marketer meeting may be down
Citgo reportedly announced across the board price
increases of $0.35 a gallon set to take affect on
October 3. The price of synthetics are said to be
increasing $0.48 a gallon at that time as well.
It what some marketers say may be good "thinking
ahead" by CITGO, CITGO has reportedly cancelled its
marketers meeting set for next week due to
uncertainties associated with Hurricane Rita's impact
on its Lake Charles facility.
Reapply for Your Jobs?
According to JW's sources, while the rest of the
world was glued to the television set last week trying
to figure out where and when Rita was going to hit,
many of Castrol's sales reps were attending a
meeting held by Castrol and trying to figure out
where and when they might get hit.
Why? Because, according to our sources, Castrol
its sales reps at last week's meeting that they will
need to reapply for
their jobs. In the views of several Jobbers World
spoke with, this can only mean one thing - Head
In Jobbers World's view, it's interesting stuff when
both Castrol and Valvoline
appear to be making moves to reduce headcount.
Learn more about it and what it might mean by
subscribing to the full print
version of Jobbers World.
Chevron increases lube prices
Letters reportedly went out on September 23
notifying Chevron marketers that Chevron will
increase its prices for lubricants by 5 to 8%
affective October 24.
Subscribe to the full print version of Jobbers World
for complete details.
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