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Case Study: Transportation

Customer operates a transportation fleet of over 200 trucks for a large Mid-Atlantic grocery store chain.

Challenge

Customer struggled to secure diesel fuel supply during tight markets, especially when cold weather caused significant market-wide demand spikes. Customer also needed protection against the price spikes inherent in volatile fuel markets.

Solution

Guttman Energy offered pricing strategies that would help the customer manage price risk in a volatile market. Programs included fixed price and cap-collar. Based on market dynamics at the time, Guttman advised the customer that a firm fixed price program was the best approach.

Guttman supply experts analyzed the market and advised the customer that the time was right to lock in a price.

Benefits

The fixed price program provided the customer with a competitive price that fit well within budget constraints. By analyzing historical prices, Guttman’s supply team was able to advise the customer to pull the trigger on a fixed price that was within 20% of the low.  Customer also has peace of mind regarding assured supply when markets tighten.

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