Shippers v. carriers: 2023 may be the “return to normal” we’ve been waiting for
Good morning! So, the first day of the new year is behind us. How did it go? Let’s keep the ball rolling! 🚛💨
Spot rates are the prices that carriers (such as trucking companies) charge for transporting goods on a spot basis, rather than under a long-term contract. Spot rates are typically determined by the current market conditions, including the availability of carriers, the distance of the shipment, the type and volume of the goods being shipped, and other factors.
Spot and contract rates have been softening over the last half of 2022… and shippers are continuing to reign. However, several industry analysts are advising that they expect a normal shipper and carrier relationship will return within the following year.
Check out today’s featured article from TT News to read about the likelihood of regaining a sense of “normalcy” in the supply chain as rates continue to stabilize. ☕️
Featured Article:
Shippers Remain in Control of Rates, but 2023 Could Bring Balance | TT News
“Shippers are in the driver’s seat as spot and contract rates continue to soften, but industry analysts said rates likely will stabilize throughout 2023.”
Fuel Tech & Grants 💰
$750 million DOE grant issued to hydrogen technologies for heavy-truck fuel cells
The U.S. Department of Energy must be feeling generous after a commitment of $750 million to assist in lowering the cost of lower the cost of hydrogen technologies for heavy-truck fuel cells, hydrogen delivery, and hydrogen storage. Energy Secretary Jennifer Granholm has noted that the financial pledge is an “exciting step forward” and will Riley continue to further implement the climate agenda put forth by the Biden Administration.
Hydrogen fuel cells are a type of energy technology that converts the chemical energy of hydrogen into electricity. They are often used in vehicles as an alternative to traditional internal combustion engines, and they are particularly well-suited for heavy-duty trucks due to their high energy density and long driving range. Hydrogen fuel cells for heavy-duty trucks typically consist of a fuel cell stack, a hydrogen storage tank, and other associated hardware and controls. The fuel cell stack generates electricity by reacting hydrogen with oxygen from the air, producing water as the only byproduct. The hydrogen is stored in a high-pressure tank and is fed into the fuel cell stack as needed.
Drivers Issues & Company Culture 🚛
Polling shows most truckers had a satisfactory 2022, but 2023 outlook isn’t clear
A trucker's job satisfaction matters because it can have a significant impact on their overall well-being and quality of life. Job satisfaction is an important aspect of work that can affect an individual's mental and physical health, as well as their overall happiness and sense of fulfillment.
Truckers often work long hours and may be away from home for extended periods of time, which can be challenging and isolating. If a trucker is not satisfied with their job, they may be more likely to experience stress, burnout, and other negative health consequences. In contrast, if a trucker is satisfied with their job, they may be more likely to be motivated, engaged, and committed to their work, which can lead to better job performance and a higher quality of life. In addition, job satisfaction can also have an impact on a trucker's retention and turnover rates. If truckers are dissatisfied with their job, they may be more likely to leave and seek employment elsewhere, which can be costly and disruptive for the trucking company. On the other hand, if truckers are satisfied with their job, they may be more likely to stay with the company and provide reliable, high-quality service.
iLevel With You 🏡
More topics for the average American household to consider…
💸 The Inflation Reduction Act was a big move by the Biden Administration in 2022. But do you actually remember what’s in it? CNBC breaks down the historic climate and tax deal so that American citizens can get educated on what’s included. The IRA bill will likely affect many industries for years to come.
🛢️ Kansas section of the Keystone Pipeline is back online 3 weeks post-spill. Canada-based T.C. Energy issued repairs, inspection, and testing before bringing the damaged section back online after the incident in early December. The section was responsible for spilling the equivalent of 14,000 bathtubs of crude oil into a Kansas creek. The Keystone system carried crude oil from western Canada to the Gulf Coast and to central Illinois.
⛽️ Dipping gasoline prices may be too good to be true. GasBuddy, an app that provides real-time gas price information, is projecting that Americans may see an average of $4 per gallon by May. However, January and February gas prices are expected to remain seasonally low before summertime.
❄️ Did electric vehicles withstand the frigid temperatures over the holiday? An Arctic storm blasted much of the United States over the Christmas holiday, freezing homes in Buffalo and grounding planes from Chicago to Denver. However, electric vehicles were put to the test… and the results were mixed.
GET SMART 🧠
Ramp up that brain power for these advanced topics…
⚖️ The U.S. Supreme Court is getting involved in broker liability. In the trucking industry, a broker is a company or individual that arranges for the transportation of goods on behalf of shippers. Brokers do not own or operate their own trucks, but rather work with carriers (trucking companies or owner-operators) to provide transportation services to shippers.
📉 Year-to-date, Tesla stock is down 70%, says Morgan Stanley analysts. While some point to CEO Elon Musk’s escapades with newly-purchased Twitter and a floundering public image, Tesla’s problems are much bigger than that. EV competition is speeding up and Tesla has suffered as the relationship between China and the United States continues to strain.
♻️ Marketing should put their money where their mouth is: no more greenwashing. Greenwashing is a term used to describe the practice of companies making false or misleading claims about the environmental benefits of their products or services in order to appeal to consumers who are concerned about the environment. Greenwashing can take many forms, including making false or exaggerated claims about a product's environmental impact, using vague or misleading language to describe the product's environmental benefits, or using logos or other symbols that suggest environmental responsibility without actually providing any meaningful information.
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.