Diesel prices remain stubbornly high compared to dropping gasoline prices
Good morning! Happy Wednesday, folks. 🐫
“And the day came when the risk to remain tight in a bud was more painful than the risk it took to blossom.” – Anaïs Nin
For most consumers, the price of gasoline is giving them a bit of relief. After the summer high of $5 per gallon, the price of gasoline has plummeted more than 35% to an average of approximately $3.44 in early December. Diesel, however… is a different story. Sitting at about $5.40 nationally last week, the price of diesel remains stubbornly high.
Check out today’s featured article from Logistics Management to read about the baffling gap between diesel and slowly declining gasoline prices - and why truckers are struggling to get a grasp on it. ☕️
Featured Article:
Widening spread between $5 diesel and lower gasoline prices baffles truckers | Logistics Management
“It’s on display at virtually every gasoline station, the price of gasoline in red and the price of diesel in green."
Sales & Forecasting 📊
GAP celebrates lower air freight rates, improving operating margins
In a November 17th earnings call, Gap CFO Katrina O’Connell credited lower air freight rates to the company’s improved operating margins during Q3. Freight rates are expected to continue normalizing after 2021’s high-rate environment, leading to even greater results during the incoming quarter.
Air cargo rates are still higher than they were in the pre-pandemic days of 2019, but spot rates have continued to steadily drop. To avoid ocean congestion and disruption, Gap started focusing on moving its inventory by air last year - and it seems to have paid off in a huge way.
Electric Vehicles & Taxes 🔋
Hawaii suggests 8 cents per mile tax on electric vehicles drivers
Hawaii’s Department of Transportation is recommending a road usage tax starting with 8 cents per mile for electric vehicles in order to combat the lack of traditional gas tax revenue in the state. With more “green” vehicles on the road, a gradual transition from a gas tax to charging per mile driven would help HDOT adjust to the change.
Hawaii currently hosts the second-largest percentage of electric vehicles on the road - the first being California. This proposed project would be the largest road usage tax demonstration in the country yet and likely lead the charge for other states to do the same, if successful.
Let’s Get Global 🌎
Truck GIF via GIPHY
🇨🇳 Tesla’s Shanghai factory will be manufacturing fewer units going forward. While a Tesla representative in China declined to comment on the matter, some are stating that the demand in China is much lower than what was expected. After Tesla’s shares dropped during early trading on December 5th, the output cuts were scheduled to be implemented the next day. By voluntarily reducing production, Tesla is compounding on the previous months of production slowdown that was caused by the city’s two-month COVID lockdown and similar supply chain issues.
📱 Production of Apple products is shifting from China to India and Vietnam. Apple sent notice to its suppliers that the company was actively looking to focus its production in other Asian countries. This comes on the heels of the Foxconn facility in Zhengzhou, China - the largest iPhone manufacturing facility in the world - experiencing issues with Covid shutdowns and rioting.
✈️ Moving an oversized aircraft engine is no easy task. Air Partner Group took on the huge project when agreeing to move a replacement aircraft engine, empty stand, tooling, lifting beam, and a 48-ton mobile crane from Miami, Florida to the Azores. The act was accomplished while using an Antonov AN-124 and a Boeing 747 Freighter.
iLevel With You
More topics for the average American household to consider…
🧐 The US unemployment rate is sitting at 3.7%, despite job additions. Regardless of the 263,000 jobs added in November, the unemployment rate remained close to a 50-year low, signaling another strong month of job growth for the economy. The Federal Reserve’s staunch mission to increase interest rates to stamp out inflation is still on track, but the economy seems to be battling its efforts. Eventually, it’s expected that hiring will experience a slump due to interest rate hikes.
🌊 Ever wonder what the deepest harbor on the US East Coast is? Try the Port of Charleston in South Carolina, sitting at a maximum depth of 52 feet. With this depth, the harbor can welcome some of the largest ships into its berth, attracting new ship services and first-in-calls. The harbor was deepened purposely by SC Ports President and CEO Barbara Melvin, along with other project partners, and business and maritime community leaders.
🎤 Speaker Nancy Pelosi pushed a multi-bill package for fiscal 2023. Wrapping up her tenure as leader of the House Democratic caucus, Pelosi urged the legislative tool for averting a federal shutdown. Majority Leader Chuck Schumer (D-N.Y.) echoed her sentiments.
GET SMART
Ramp up that brain power for these advanced topics…
🫡 Convoy, J.B. Hunt, and Uber Freight are partnering to set the shipment scheduling standard. These three massive companies in the freight-hauling sector are aiming to ease friction among carriers, brokers, and shippers. The three joined forces to release the Scheduling Standards Consortium (SSC) - an application programming interface (API) that establishes the first standards in the industry.
🚢 When freight moves from a port to a destination, its drayage. Sometimes drayage is known as “the first mile”, without reliable drayage services, issues can have a trickle-down effect along the entire supply chain.
🦾 It’s expected that 26% of warehouses will have some type of automation by 2027. According to Interact Analysis research, that number is up from the 18% recorded today. That percentage is predicted to climb as more and more warehouses embrace the new age of technology working together with human workers.
Safety 🦺
The Most Effective Way to Ship Liquids | More Than Shipping
In this article, More The Shipping contributor Marc Holder writes about the new flexitank storage method for shipping liquids.
Top 10 Risky Truck Driver Distractions | Trucking Info
Trucking Info contributor Vesna Brajkovic writes about what the Virginia Tech Transportation Institue’s Division of Freight, Transit, and Heavy Vehicle Safety says are the top safety concerns and distractions for truck drivers while on the road.
Network Association 🤝
Disruptions force manufacturers to rethink logistics outsourcing | Supply Chain Movement
Supply Chain Movement contributor Marcel te Lindert writes about growing geopolitical tensions and the trade conflict between China and the United States.
Owner-Operator 🚛
Market Update: The Armchair Attorney clears up myths about California’s AB5 legislation | DAT.com
DAT Freight & Analytics contributor Dean Croke summarizes the latest DAT Freight & Analytics show interview with Matthew Leffler, The Armchair Attorney.
Department of Labor proposal generates tens of thousands of comments | Landline Media
Landline Media contributor Mark Schremmer contributor writes about the proposed federal general employment law.
TSMC ups its Arizona chipmaking investment to $40 billion ahead of Biden’s visit | CNN
CNN contributor Jordan Valinsky writes about Taiwan Semiconductor Manufacturing Company's investment in an Arizona chipmaking factory.
Electric Vehicles 🔋
How to smooth the road to electric work trucks | Fleet Maintenance
Fleet Maintenance contributor Christopher Lyon writes about the streamlining of converting a fleet of work trucks to EVs.
Ford CEO says 65% of U.S. dealers agree to sell EVs under company’s investment programs | CNBC
CNBC contributor Michael Wayland writes about Ford CEO Jim Farley’s announcement that most of its dealers agree to sell electric vehicles with its new program incentives.
Marketing Approach 📲
GM continues to evaluate Twitter advertising suspension following Musk takeover | CNBC
CNBC contributor Michael Wayland writes about GM’s continued analysis of their marketing strategy on Twitter after it was pulled. CEO Mary Barra says the decision was made after Elon Musk, CEO of Tesla Motors (GM’s competitor) purchased the social media platform.
Ports 🚢
Georgia Ports to Renovate Savannah Terminal as Container Business Takes Off | G Captain
G Captain contributor Mike Schuler writes about the soon-to-be-underway project a renovation of the Port of Savannah’s Ocean Terminal.
Port of New York and New Jersey Will Fight to Retain Leading Market Share | G Captain
Bloomberg writes about the boom on the east coast ports of New York and New Jersey and how they are fighting to keep the bulk of the market share away from the west coast ports of Long Beach and Los Angeles.
Industry Forecast 📊
Fleets begin to get a feel for the future of moving freight | Fleet Owner
Fleet Owner contributor Josh Fisher writes about the future of human-less freight transportation and what the industry is doing in preparation.
Fuel 🛢️
Big oil’s high fuel prices focus of California special legislative session | The Trucker
The Trucker News Staff writes about the special legislative session in California over oil prices.
EU Is Hooked on Russia LNG and Paying Billions to Keep It Coming | Bloomberg
Bloomberg contributors Elena Mazneva and Anna Shiryaevskaya write about Europe’s dependence on Russian liquified natural gas.
Human Resources 📋
Tell the full story in driver recruitment ads | Truck News
Truck News contributor Michael Zelek writes about the importance of being clear on
Diversity 👱♀️
Women In Trucking Association Announces its December 2022 Member of the Month | Women In Trucking
In this article, Women In Trucking Staff writes about the latest winner of Member of the Month, Kathy Tuccaro.
Loans & Leases 💰
House panel says lax screening helped facilitate PPP fraud | AP News
AP News contributor Fatima Hussein writes about the House investigations panel analysis of Paycheck Protection Program fraud.
Artificial Intelligence 🤖
Amazon Invests Heavily In Robots To Lift Its Human Workers | Real Clear Markets
Real Clear Markets contributor John Tamny writes about Amazon’s growing use of robotics in its factories.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 28, 2024, from iLevel Logistics Inc.