Hurricanes to Cyberattacks: How Fuel Contracts Protect You From Supply Disruptions
If you’re a gas station owner or fleet manager, you are constantly thinking about your fuel supply. Did I order enough? Did I get the best price? Are my forecasts accurate?
Staying afloat during normal circumstances is tough enough.
Then, the unexpected hits. A hurricane rolls in, a cyberattack knocks down entire systems or a pipeline gets disrupted—completely halting your business operations.
That’s where contracts come in handy. Getting on contract with a supplier provides the best safety net for unforeseen events so that you can rest assured that you’ll have enough fuel when you need it most.
Month-to-Month Fuel Buying Leaves You Vulnerable.
Many gas station owners and fleet managers opt for week-to-week or month-to-month fuel procurement, believing it offers the most flexibility and savings. However, it also comes with significant risk. You might save here and there, but what happens when disaster strikes? You won’t be a priority for suppliers because they will service their contracted customers first.
Hurricane Season Brings Higher Risk Of Shortages.
During hurricane season, supply chains are vulnerable to severe disruption. Roads may be inaccessible, and refineries might shut down. If you’re not currently on a contract, or if your supplier doesn’t have enough fuel in storage for such disruptions, you could run out quickly, leaving your bottom line and your community at risk.
Cyberattacks Are Disrupting Infrastructure More And More.
Cyberattacks on critical infrastructure, including pipelines and fuel supply systems, have become more frequent. As we know, the 2021 ransomware attack on the Colonial Pipeline impacted the fuel industry across the entire Southeast. These attacks damage the distribution network and cause shortages that ripple through the market. Again, you’re affected more if you don’t have a contract that guarantees your supply.
Contracts Are A Lifeline When Disaster Strikes.
So, how can you avoid major supply disruptions? You guessed it— contracts. They are your lifeline in turbulent times and offer the following benefits:
1. They Secure Your Supply, Offering Reliability: When you sign a contract, you secure a dedicated, reliable fuel supply.
2. You Get Priority Access During Emergencies: Suppliers prioritize contract customers during supply shortages so you won’t have to compete with others in the scramble for fuel.
3. Enjoy Price Stability & More Predictable Profit Margins: Contracts offer price stability, protecting you from sudden price spikes that can affect your profit margins.
4. Peace of Mind Is Priceless: With a contract in place, you can focus on running your business, knowing that your supply is secure and the price is stable.
Choose Your Fuel Contractor Carefully.
Not all fuel suppliers or contracts are created equally. Consider factors like their storage capacity, emergency preparedness, and track record in crisis delivery. Ask where they source their fuel and how much they can store. Quality suppliers get it from multiple places and can store large volumes at their facilities. For example, at Hutchens Rentz-Eden, we contract our own supply by the month, and our half-million-gallon storage tank in Reidsville provides our customers peace of mind in volatile market conditions.
Trust Hutchens Rentz-Eden With Your Fuel Supply Contract Needs.
Hutchens Rentz-Eden has proudly served customers in VA and NC since 1975. Whether you run a convenience store or manage a fleet, you can rely on us when disaster strikes. Contact us to discuss your fuel needs today.