📉 Inflation Takes November Nap
Good morning! Welcome to "The Workday Dash," your source for the latest updates in supply chain and logistics! It's December 14th, and today is no ordinary day – it's Free Shipping Day! As we approach the peak of the holiday season, retailers and logistics experts are working tirelessly to ensure packages reach their destinations in time for the festivities.
So, grab a cup of your favorite holiday beverage and join us as we embark on this exciting journey through the world of logistics and supply chain magic! 📦🚛✨
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November Sees Unexpected Easing of Wholesale Inflation
Looks like wholesale prices in the U.S. are taking a chill pill, and it might just ease the pain at the checkout counter. The latest word from the Labor Department is that the producer price index (which keeps tabs on wholesale inflation) didn't budge in November when you compare it to the previous month.
Year-on-year, wholesale prices crept up by 0.9%, a drop from September's 1.3% spike. And guess what? The experts at Refinitiv were expecting a small 0.1% monthly uptick and a 1% annual bump, so this news is even better than expected.
Check out today’s featured article from Fox Business to learn more about why November wholesale prices eased so much more than previously thought. Will prices go down even more for December? Will inflation go down faster than expected?
Featured Article
Wholesale inflation eases more than expected in November | Fox Business
“Inflation at the wholesale level moderated more than expected in November, the latest sign that high consumer prices are beginning to loosen their stranglehold on the U.S. economy.”
Deliveries & Business Strategy
Dollar Tree Gears Up for Efficient Delivery Expansion
Dollar Tree is giving some new tricks a shot to make their supply chain smoother. They're testing out rotacarts and doing a bunch of other cool stuff to fine-tune how they get things from point A to point B. Plus, they've introduced supply chain finance options, offering suppliers some payment flexibility.
It's all about keeping up with the Joneses, with other big players like Southern Glazer's Wine and Spirits and Walmart also spicing up their supply chains for better store deliveries and overall performance.
Yellow & Law
Court Approves Sale of 128 Yellow-Owned Terminals in Bankruptcy Proceedings
A Delaware court gave the green light to sell off 128 freight terminals that Yellow Corp. owned. The whole deal's worth a cool $1.88 billion, and guess who snagged the juiciest slice? XPO Inc. came out on top with a $870 million offer for 26 owned terminals and a couple of leased ones.
But that's not all – Saia Motor Freight Line and real estate giant Ramar Land Corp. also walked away with a stack of properties worth over $200 million. The auction for Yellow's other terminals and leased spots is still in progress.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
💰Argentina Implements 54% Peso Devaluation in Shock Measures Led by Milei. In Argentina, there's a new sheriff in town – President Milei. The country has decided to give the peso a bit of a makeover, going from 366.5 pesos per dollar to a whopping 800 pesos per dollar. Economy Minister Luis Caputo explained, saying they needed to fix Argentina's financial situation. The plan is to cut back on spending by about 2.9% of GDP, which means slashing things like energy and transport subsidies, social security, and pensions. Oh, and those pension payments? Yeah, they won't be tied to inflation anymore. Even the International Monetary Fund (IMF) gave them a thumbs-up for these changes, and you can bet the central bank's got more tricks up its sleeve to keep things on track.
🛳 New Year Demand Sees Ocean Carriers Revisiting Charter Market. Big ocean carriers are giving the charter market another look because it seems like the demand for shipping is shaping up to be pretty darn good. Most giant ships are already booked up until spring next year, which means the daily hire rates are looking pretty sweet. Word on the street is that we might see a 3-4% bump in demand next year, so the carriers are getting ready to flex their muscles and hike up those rates, especially on the Asia-North Europe route. They're talking about new FAK (freight all kinds) rates of $3,000 per 40ft starting January 1 – a big jump from the $1,000 spot rates in December. Plus, with the Chinese New Year around the corner and shippers looking at detours like the Panama Canal and the Red Sea, they're trying to get their cargo moving ahead of schedule.
iLevel With You 🏡
More topics for the average American household to consider…
🌲 Rising Christmas Tree Prices Spell A Costlier Holiday Season for Shoppers. Brace yourselves because we're looking at a 10 to 15% price hike compared to last year for Christmas trees. People were clamoring for those festive firs, and it led to some trees getting chopped down earlier than usual, which resulted in lower supplies and higher prices for the last couple of Christmases. Hardworking Christmas tree farmers are dealing with higher labor costs and production expenses. That's why we're seeing those price tags go up.
💰 America's Rapid Descent Towards Fiscal Insolvency. The Department of Transportation busted out an $8.2 billion grant for passenger rail projects, and a big slice of that pie is headed to California's High-Speed Rail Authority. Now, this project's had its fair share of hiccups, from delays to budget blow-ups, and it's got folks raising an eyebrow about Uncle Sam's spending habits. The Congressional Budget Office also spilled the beans on a $383 billion deficit in the first two months of FY 2024. That's a wallet-wincing 65% jump in interest payments compared to the previous year. The deficit is beginning to raise more and more eyebrows; we're talking about $33.8 trillion gross national debt and over $75 trillion in unfunded Social Security and Medicare liabilities.
⛽️ Unpacking the Reasons Behind Pre-Holiday Drops in Gas Prices. Gas prices are giving your wallet a little break, dropping down to an average of $3.15 per gallon. That's a cool 5 cents cheaper than last week and a sweet 20 cents less than what you were paying a month ago. It's partly thanks to the OPEC+ oil cartel get-together on November 30. The group had a bit of a struggle coming to a consensus, and it left them with some wonky results. On top of that, the U.S., Brazil, and Guyana decided to step up their oil supply game, which gave crude oil prices a nudge in the down direction. And when crude oil prices drop, you know what happens next: your gas prices get to chill too.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
💊 Securing the Pharma and Healthcare Supply Chain Amidst Uncertainty. Over the past decade, we've seen our fair share of global curveballs tossing supply chains and manufacturing for a loop. This rollercoaster ride has made it crystal clear that we need to beef up our healthcare supplies and medication game. But how do we do that? Well, we've got a trusty sidekick called Advanced Technology, and it's here to help us build some rock-solid manufacturing and supply chain superhero infrastructure.
🔋Congress Allocates $7.5 Billion for E.V. Chargers, But Two Years Later, None Are Constructed. In 2021, the Biden Administration set aside $7.5 billion in the Infrastructure Investment and Jobs Act to build half a million public charging stations. Sounds great, right? Well, here's the kicker – as of now, we haven't seen a single one of those chargers up and running. It's due to a mix of state agencies and charging companies struggling to meet Uncle Sam's requirements and dealing with some pretty hefty bills. To keep up with the growing demand for electric cars, we've got to quadruple the number of chargers by 2025. And if we want to match the sales forecast, we need to multiply that number by eight by 2030.
✈️ IATA's Air Cargo Focus for 2024 is on ‘De-Risking’. The International Air Transport Association (IATA) has its sights set on a few key areas for the air cargo industry. First off, they're all about going digital, making sustainability a priority, and keeping things safe and secure. Even though air cargo demand jumped up by 3.8% in October, there are some speed bumps ahead. We're talking about economic ups and downs, inflation, wacky currency rates, slower GDP growth, and China's supply chain concerns. The hero behind this air cargo boom is e-commerce. Online shopping is taking over the world, and air cargo is hustling to keep up. This means the U.S. government needs to team up with the delivery crew to get those packages to your doorstep even faster.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 22, 2024, from iLevel Logistics Inc.