The distribution of bulk liquids and compressed gases is a complex and critical part of the gas supply chain. According to Fleet Owner estimates (February 2011, www.fleet owner.com), there are over 4,000 bulk rigs in the US encompassing tractors, trailers, tankers, and tube trailers. Industrial gas companies manage some of the largest trucking fleets in the US.
The Distribution Equation
Delivery Methods Industrial gas products are unique, and distribution requires specialized equipment, skills, and proficiencies. Drivers have to be highly qualified in a variety of areas, paying attention to regulatory compliance, safety, and customer service, and they must be knowledgeable about various delivery methods. For example, while delivery methods for liquid oxygen, nitrogen, and argon (LOX/LIN/LAR) and carbon dioxide (CO2) are similar, liquid hydrogen (LH2 ) and liquid helium (LHe) are distributed in special tankers. Bulk acetylene trailers (BATs) transport between 200 and 225 large cylinders each holding 450 cubic feet (cu ft) of acetylene, up to 100,000 cu ft per transport. Microbulk trucks (sometimes called pumper trucks, city trucks, or bobtails) can deliver payloads of 3,000 gallons and are optimized with special off-loading pumps to allow high product transfer rates at high pressure. Each distribution method has its own safety and compliance requirements that must be followed.
Delivery Costs Delivery costs are the second largest unit cost (after product cost) in the industrial gas supply chain. Distribution costs for bulk liquid can be 20–70 percent of cost of goods sold (COGS) or about 40 percent on average. Costs for compressed gases can be as much as one-third, or 33 percent of COGS. Managing these costs is critical, but so is safely delivering the right product at the right time.
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