Freight sector dips another 1% in Q4, not keeping up with GDP growth
Good morning! We hope you had a great weekend and are ready to dive into today’s edition of our newsletter. Today, we have a packed issue filled with insights and updates on the latest developments in the world of supply chain management. From new technologies to innovative strategies, we've got everything you need to stay ahead of the curve. So sit back, relax, and let's get started!
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GDP increased by nearly 3% annualized in Q4… but the freight transportation sector didn’t keep up. Dipping an additional 1% for the third consecutive quarter, the freight economy doesn’t seem as healthy as how some are claiming the economy to be.
Check out today’s featured article from MHL News to read about the slowly declining freight market, and why its drift away from GDP growth is troubling. ☕️
Featured Article:
Freight Transportation Dipped 1% For 3rd Straight Quarter | MHL News
“RTF report notes that even with the economy growing, the freight sector isn't following.”
Retail & Artificial Intelligence 🤖
Artificial Intelligence can sniff out those counterfeit bags
While the counterfeit market has only become more impressive to the naked eye over the last decade, Artificial Intelligence is beginning to stamp out the market’s confidence. AI technologies such as machine learning, computer vision, and natural language processing can be applied to analyze large amounts of data and identify patterns that may indicate counterfeiting activities.
For example, computer vision algorithms can analyze images of products and compare them to authentic ones to identify any differences. Machine learning models can be trained to detect unusual patterns in sales data that may indicate counterfeiting. Natural language processing can be used to analyze customer complaints and other written sources of information to identify potential counterfeit products. Additionally, AI can be used to improve supply chain management and monitor the flow of goods from the manufacturer to the consumer, reducing the risk of counterfeit products entering the market.
However, it is important to note that AI is not a silver bullet for solving the problem of counterfeiting. The effectiveness of AI in detecting counterfeits depends on the quality of the data and the algorithms used, and counterfeiters are constantly finding new ways to evade detection. Therefore, AI should be used in conjunction with other measures such as stronger intellectual property protection and increased enforcement to effectively combat product counterfeiting.
Artificial Intelligence & Customer Relations 🤝
Customers can expect fresher produce with the implementation of automation
While it's important to note that while automation can help improve the efficiency and quality of the supply chain, it's only one part of the solution. Producers still need to consider factors such as sourcing fresh produce, developing strong relationships with suppliers, and investing in sustainable practices to ensure a steady supply of fresh, high-quality produce. However, automation can help keep up with consumer demand and deliver fresher produce in several ways:
Increased efficiency: Reduces the time it takes to move produce from the farm to the store, which can result in fresher produce for consumers and a more efficient supply chain for producers.
Better inventory management: Helps track inventory levels and make sure that produce is being moved quickly to reduce spoilage.
Improved accuracy: Reduces human error in tracking inventory and orders, leading to a more accurate and reliable supply chain.
Increased safety: Reduces the need for manual labor in handling and sorting produce, leading to a safer working environment for employees.
Flexibility: Easily scaled up or down to match changes in consumer demand, helping producers keep up with market changes.
Real-time monitoring: Provides real-time data on inventory levels and other supply chain metrics, allowing producers to make informed decisions and respond quickly to changes in consumer demand.
Let’s Get Global 🌎
Thriving Sheldon Cooper GIF By CBS via GIPHY
🇪🇺 European Unions risks transatlantic trade war over clean technology laws. The Biden Administration’s $500 billion legislation encouraging new spending in the domestic green energy industries may be the final straw for the EU, which unveiled its Green Deal Industrial plan in response. The EU’s leaders are maintaining an air of skepticism that the United States will follow through with major change regarding its green subsidies law, and claims that it will only take jobs and investment away from companies in Europe. The rules of globalization have been jeopardized, say its critics.
♻️ Does fighting climate change disrupt free trade? On the one hand, reducing greenhouse gas emissions is essential to slowing the pace of climate change and avoiding its worst consequences. This can be achieved through the implementation of policies that promote renewable energy, energy efficiency, and sustainable transportation, among others. On the other hand, free trade can help countries access the resources, technology, and capital they need to transition to a low-carbon economy and achieve their climate goals. Trade can also help increase access to climate-friendly products and services, and foster cooperation and technology transfer between countries. It is possible to pursue both climate action and free trade by creating policies that balance economic and environmental objectives, and by encouraging businesses to adopt sustainable practices and invest in low-carbon technologies.
🛢️ Trafigura reports that 600 tankers transporting Russian fuel are operating globally. Dubbed a “shadow fleet” the crude oil vessels are quietly transporting the EU-banned Russian product. Trafigura is a multinational commodity trading company headquartered in Switzerland and one of the largest independent oil traders in the world. Trafigura is involved in the trading, storage, and transportation of crude oil, petroleum products, and other commodities such as metals, minerals, and agricultural products. Trafigura has a reputation for being a highly innovative and flexible company, leveraging its expertise in logistics, finance, and technology to create value in the commodity trading industry.
iLevel With You 🏡
More topics for the average American household to consider…
😭 Is DOT Secretary Pete Buttigieg looking at other political gigs? While some have speculated that Buttigieg would be aiming for a Senate seat in Michigan, he himself has stated he doesn’t plan on leaving the Biden Administration’s DOT anytime soon. The role of Secretary for the department has been wrought with strife as of late, with his predecessor Elaine Chao of the Trump Administration resigning abruptly. It’s expected that Mayor Pete will remain on staff for the DOT for the time being while he works on several initiatives announced by the department recently regarding roadway safety.
💸 Tesla’s price cut was fun while it lasted. The U.S. government has adjusted rules for EV tax credits, allowing for versions of the small SUVs to be eligible. Tesla increased the prices of its Model Y only three weeks after a nearly 20% price cut on the model. This up to $7,500 tax credit made possible through the Inflation Reduction Act will be available through March, at least. Automakers have been lobbying the Biden Administration to amend the laws so that higher-priced vehicles would still qualify - now EVs with price tags up to $80,000 are included in the tax credit rule.
🇺🇸 President Biden points to January’s employment report as proof of economic strength. The GOP is pushing back, stating that rampant inflation and prices of household staples like gasoline and groceries are crippling the country. While neither side of the political aisle seems to be harping on the complete picture, economists are conflicted on the issues at hand. The economy is full of “contradictions”, according to Mark Zandi, the chief economist at Moody’s Analytics. In a recent poll, 76% of Americans claim that US economic conditions are “poor” while 24% of adults are calling it “good.”
🚂 Norfolk Southern train derailment sends Ohio residents evacuating. After the 50-car train wreck crashed along the Ohio-Pennsylvania border, a large fire began to burn and forced residents of East Palestine, Ohio to leave their homes for their safety until the blaze is under control. Thankfully, no injuries were reported after the crash, but approximately 5,000 people are under shelter-in-place orders who are not within a one-mile radius of the incident. The Environmental Protection Agency is monitoring the situation and the Red Cross is assisting displaces residents.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🧢 The driver compensation model continues to be called into question. Wayne State University professor Michael Belzer, Ph.D., shares his thoughts with Land Line on the topic and what he believes needs to be changed. Many truck drivers complain about low wages, despite long hours on the road and the physically and mentally demanding nature of their work. Some drivers argue that the benefits offered by trucking companies are not adequate, such as health insurance and time off. The industry is divided on the best way to compensate drivers, with some favoring a pay-per-mile model and others advocating for a pay-per-hour model.
🚙 The DOT laid out fewer regulatory changes in the second half of 2022. Juxtaposed with rule-making during the beginning of the Biden Administration, the Department of Transportation took a slowdown during the latter half of the previous year. But don’t hold your breath… this lack of regulatory adjustment isn’t likely to persist. Due to Congressional changes of party power, the Biden Administration is likely to shift from policymaking to regulatory change in order to bypass gridlock issues.
➡️ Amazon rounds the wagons: focusing on restructuring operations after rough 2022. Over Q4, Amazon reported a 9% net sales increase, regardless of product sales falling 1.2% to $70.5 billion. With the elimination of 18,000 corporate positions, Amazon has signaled a major overhaul of its operations and transportation network. CEO Jassey states that the company is looking to shift focus to productivity rather than purely expansion.
🌪️ Climate change threatens supply chain risk management. An increase in natural disasters such as hurricanes, earthquakes, and droughts, can disrupt the flow of goods and services and result in production shutdowns and supply chain disruptions. Extreme weather conditions such as heat waves, heavy rain, and snowstorms can also cause production slowdowns and supply chain disruptions, particularly in industries that rely on outdoor operations or transportation. : Climate change-related natural disasters can also damage critical infrastructure such as ports, roads, and bridges, making it difficult for goods to be transported and delivered.
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.