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Transportation Capacity + Supply Accessibility
View Designed Edition1 original publication pageToday’s Question
Propane inventories are building. As of August 14, 2026, U.S. propane/propylene inventories reached 107.0 million barrels, with 26.15 million barrels in the Midwest (PADD 2). Source: EIA.
At the same time, diesel markets remain under pressure with historically low distillate inventories and strong competition for exports. Source: WSJ.
This creates the critical question for every leader:
If propane supply is available this winter, what could still prevent your operation from getting product where it needs to go—transportation cost, carrier capacity, terminal access, driver availability, or planning?
There is no single right answer. Different leaders see different risks. Review the five perspectives, challenge your assumptions, and prepare your operation now.
Five Perspectives From the Executive Roundtable
1. OUR SUPPLY POSITION IS STRONG.
Leaders may look at current propane inventories and believe the company is adequately protected.
Leadership consideration
- Having product available somewhere in the system is not the same as having it at the branch when needed.
2. TRANSPORTATION COST IS BECOMING THE PROBLEM.
Higher diesel and freight costs can change the economics of moving propane even when the commodity is plentiful.
Leadership consideration
- Know the delivered cost—not only the propane acquisition cost.
3. CARRIER CAPACITY WORRIES ME MORE THAN PRICE.
During peak demand, the truck and driver may become more valuable than the gallon.
Leadership consideration
- Determine how much transportation capacity is actually committed versus assumed.
4. TERMINAL ACCESS COULD BECOME THE BOTTLENECK.
Long lines, reduced loading windows, outages, weather, or congestion can turn adequate supply into a local operational shortage.
Leadership consideration
- Identify alternative terminals and realistic turnaround times before winter.
5. OUR BIGGEST EXPOSURE IS STILL EXECUTION.
Sometimes the problem is neither propane nor transportation. It is waiting too long to replenish, operating tanks too low, or failing to respond as conditions change.
Leadership consideration
- Establish escalation triggers before the branch reaches a critical inventory level.
