Analysis of shipping and receiving cotton by gins, gin-warehouses, shippers, and textile mills in Tennessee

The general objective of this study was to determine the methods, problems, and costs associated with assembling cotton for shipment directly from gins and gin-warehouses to domestic mills and export outlets. Personal interviews with 34 gins which shipped cotton directly to mills, 3 gin-warehouses, 4 textile mills, and 15 cotton shippers were conducted to collect data for the study. Data were analyzed manually and by using the SPSS computer program. The gins' average volume was 2,428 bales in 1976. Seventy percent of the total volume of the gins surveyed were shipped directly with Tennessee textile mills being the major destination. The average volume handled by the gin-warehouses was 4,407 bales, again with Tennessee mills as the major destination. Eight gins that made direct shipments to mills incurred additional costs averaging 34.3 cents per bale. These costs were due primarily to additional trucking expense. Labor availability was a problem in 20 gin operations. Gin-warehouses also experienced this problem. Thirty-three gins had modified flat gin presses, while one had a standard density press and received a $1.00 per bale payment for com-pression. Two gin-warehouses had standard density presses, one of which received a $3.75 per bale payment. Shippers surveyed marketed a total of 4,618,662 bales in 1975-76, of which 4,437,667 bales were handled as a shipper. The remainder was marketed by Rule 3 of the cotton trade. These shippers purchased 4,212,167 bales at local market warehouses. The other 225,500 bales were purchased at gins. The largest regional volume was purchased in the Southcentral region. Group 201 textile mills were shipped nearly 1/4 of total shipments and was the leading single destination. Approximately 56 percent of the cotton was shipped by truck and 44 percent shipped by rail. Assembly costs varied from $18.25 to $30.00 per bale depending on its location when shipped. Congestion during the peak season was a major problem. Six shippers purchased 225,500 bales of cotton at gins. Most of this cotton was purchased in the Southcentral region. Group 201 textile mills were the leading destination. Almost 78 percent of the cotton purchased at gins was shipped by truck. Assembly costs ranged from $12.00 to $25.00 per bale. Shortage of trucks and rail cars was a major cause of shipping delays. Four textile mills in Tennessee purchased bale cotton. They bought 101,100 bales in 1976-77, after having purchased 131,000 bales the previous year. A major portion of this cotton, 73,600 bales in 1976-77 and 105,000 bales in 1975-76, was purchased in Tennessee. Much of this cotton was shipped directly by truck in flat bales. The only problems reported were delays by railroads. Two mills forward contracted cotton.