Delivery To Customer
Moving product from terminal tanks to the customer is the last step in the supply line. For both Diesel Exhaust Fluid (DEF) and diesel
fuel, this is typically accomplished through tank trucks – this the only similarity in regard to delivery to the customer.
Who Delivers Diesel Exhaust Fluid?
There are typically three types of DEF distributors:
- Third-party distributors
- Diesel fuel distributors
- General chemical distributors
Third-party distributors are commonly utilized to move DEF from the plant to the tank. Since DEF is a chemical, companies transporting bulk chemicals have also expanded into delivering DEF. Many large diesel suppliers do not participate in DEF delivery since it’s an entirely different business and requires significant capital. Due to this reason, a fuel transporter who would like to enter into the DEF market would need to invest in new equipment.
Higher Inital Equipment Costs
There are higher initial equipment costs for companies delivering Diesel Exhaust Fluid. Examples of costs include stainless steel trailers which cost more to manufacture, have lower product capacity than lightweight aluminum bulk fuel trailers, and require a longer lead time to be manufactured. A diesel fuel transporter who would like to enter into the DEF market would need to invest in new equipment requiring significant capital.
Comparing DEF and Diesel Fuel Delivery Factors
Since DEF is not diesel fuel, there are different delivery factors between the two products including:
- DIESEL EXHAUST FLUID (DEF) - DEF requires stainless steel for all equipment including tank trucks, since it's slightly corrosive.
- DIESEL FUEL - Aluminum tank trucks are suitable for diesel fuel.
- DIESEL EXHAUST FLUID (DEF) - Customers require a variety of solutions varying from 2.5 gallon jugs to 5,000 gallon bulk loads depending on the demand at each site. For this reason, DEF is delivered in pre-packaged quantities including 2.5 gallon jugs, 55 gallon drums, and 330 gallon totes AND is also available in bulk quantities.
- DIESEL FUEL - Diesel fuel is typically only sold and delivered in bulk quantities.
- DIESEL EXHAUST FLUID (DEF) - DEF product flow has logistical variability and is commonly converted into final product at the terminal. For this reason, consideration of lead time needs to be taken when estimating delivery to the customer.
- DIESEL FUEL - Product is pulled directly from the pipeline, so there isn't a heavy logistical variability compared to DEF.
- DIESEL EXHAUST FLUID - DEF is heavy in weight, which creates additional logistic costs.
- DIESEL FUEL - Diesel fuel is lighter compared to DEF around 2 pounds per gallon.