Visualizing the Week in Supply Chain: A Graphical Recap
West coast ports lose steam
The West Coast ports' share of total US container volumes keeps slipping. At the start of 2017, the share was 57%. In February 2023, it dropped to 44%.
Reject Rejection
The outbound tender rejection index, which evaluates carriers' willingness to accept tendered loads, is now at 2019 "bloodbath" levels. Higher tender rejections indicate higher demand for carrier services, while lower rejections demonstrate lower demand. In other words, at present, the demand for carrier services is notably low.
EV tax credit: Shockingly complex
Thinking about buying an EV and want to qualify for a federal tax credit? Well, it's complicated. The Inflation Reduction Act provides federal tax credits of up to $7,500 for buyers of EVs that meet the following requirements:
Vehicle price caps: Cars priced above $55,000 and trucks, vans, and SUVs priced over $80,000 aren't eligible for the tax credit.
Made in North America: Only EVs that "undergo final assembly" in the U.S., Canada, or Mexico are eligible for the credit.
Buyer income limits: If you're a single individual with a modified adjusted gross income of $150,000 or more, or a head of household with more than $225,000 of income, or a married couple filing jointly with income over $300,000, you aren't eligible for the credit.
Critical minerals: To be eligible for the credit in 2023, at least 40% of the critical minerals by value – including lithium, nickel, manganese, graphite, and cobalt -- in the vehicle's batteries must have been extracted, processed, or recycled in the U.S. or in a country with which the U.S. has a free trade agreement. That percentage will increase to 50% in 2024, 60% in 2025, 70% in 2026, and 80% after 2026.
Battery components: To be eligible for the credit in 2023, at least 50% of the value of the components in an EV's battery must be manufactured or assembled in North America. That percentage will increase to 60% in 2024 and 2025, 70% in 2026, 80% in 2027, and 90% in 2028.
Brakes on car buying
Thinking about buying a car, used or new? The data does not look good. In fact, it's one of the worst times to buy a car in decades. Since 2020, prices have been climbing faster than at any point in more than 30 years.
The average price of a new car is now almost $48,000. Only five years ago, the average new car cost was just shy of $36,000.
Silicon Valley Shakedown
The collapse of Silicon Valley Bank on March 9th reverberated across the entire banking sector. As the chart shows, investors quickly pulled back from bank stocks. The Morningstar US Banks Index fell further than all other Morningstar stock indexes – down nearly 25% in the first quarter of 2023.
Supply chain cash flow
A 2023 logistics salary survey showed strong salary numbers for logistics and supply chain professionals.
What is your current annual salary for 2023? (Including bonuses and commissions, etc.)
Salary by years in the present position (average and median):
Salary by job title:
Job openings: down but not out
Job openings dipped under 10 million for the first time since May 2021. This implies that the Federal Reserve’s rate increases are, in fact, slowing the economy and functioning as intended.
However, before thinking that the Fed should ease, it’s important to consider additional information that Powell and the Board examine - the ratio of open jobs to unemployment, shown in the bottom panel. That ratio currently stands far above anything before the pandemic. Thus, while job openings are moving in the right direction, they are still historically high, and the ratio of open jobs to unemployment also remains too high for the Fed to pull back.
Switch and get rich!
Want to leave your job for another one? Currently, the price is right. Switchers enjoy a 2.1% premium. Examine the wage growth of job switchers versus job stayers – that difference has never been higher. This implies that upward pressure on wages remains steadfast, and it may be some time before wage inflation recedes.
Fuel prices running on fume
A time-series of diesel and gas prices highlights the elevated prices of the past year. The average price per gallon of gas increased to $3.50 in the week ending April 3, while diesel declined to $4.11 per gallon.
Polarizing politics
A familiar partisan pattern for a polarizing political figure. Undoubtedly, more of this to come…
Texas is blown away!
Wind and solar energy generation growing notably in Texas.
Going in circles sustainably
Circular supply chains may replace linear ones, as the looping reduces spending on raw materials and complies with increasingly strict government regulations on recycling and waste disposal.
Deficit disorder
US trade deficit widens for a third month to over $70.5 billion.
Walmart ups automation ante
Since the pandemic, Walmart has increased investment on automation.
Manifest 2024 served as a reminder of the immense potential that lies ahead in the realm of supply chain technology.