Welcome to the lithium gold rush
Good morning! International Sweatpants Day is upon us, but don’t worry… the supply chain’s got you covered from the waist down. 😎
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The United States needed to kickstart its renewable energy goals with a plan. That plan was funneled into existence with the Inflation Reduction Act - a significant piece of legislation from the Biden Administration that distributes large sums of grants and tax relief to companies incorporating clean energy strategies into their operations. This federal air is going a long way for the domestic lithium industry, which has the potential to grow significantly in the near future due to increasing demand for lithium-ion batteries, which are used in electric vehicles (EVs) and energy storage systems.
Check out today’s featured article from Oil Price to read about the U.S. energy transition and the upheaval the lithium-ion industry needs to meet growing demand. With the federal government basically throwing money at lithium producers… is the lithium “boom” set to be the new gold rush? ☕️
Featured Article:
U.S. Lithium Production Is Set To Explode | Oil Price
“The Inflation Reduction Act, which has been described as “the most significant climate legislation in U.S. history”, is an attempt to kickstart the U.S. renewable energy and EV industries.”
Warehousing & Suppliers 📦
Are you an Amazon seller that needs more space? You’re in luck
The mega-company has announced the roll-out of its new capacity management system for March 1, 2023. The system is meant to provide its third-party sellers an opportunity to bid for additional storage space in the Amazon Distribution Centers - likely giving them the opportunity to provide their products to paying customers faster than ever.
Third-party sellers on Amazon benefit from more storage space in the warehouses because it allows them to hold more inventory - meaning that they can have a larger selection of products available for sale, which can increase their sales and revenue. Additionally, having more storage space can also enable sellers to take advantage of bulk purchasing discounts, which can lower their costs and increase their profit margins. More inventory on hand can also help sellers to fulfill customer orders more quickly, which can improve customer satisfaction and lead to higher customer retention and repeat business. Overall, having more storage space in the warehouses can help third-party sellers on Amazon to be more competitive, efficient, and profitable.
Shipping & Carrier Rates 🚢
Carriers forced to reduce ocean container rates with cooling demand
After historically high freight rates in the maritime shipping industry clouded the sector while consumers panic-bought everything from furniture to toilet paper during the pandemic years - the rates have finally cooled off. Ocean container rates have cooled off recently due to a number of factors such as:
A decrease in demand for goods as a result of the COVID-19 pandemic and the resulting economic downturn.
A decrease in the number of ships sailing due to reduced schedules and blank sailings has caused a temporary oversupply of available shipping capacity.
An increase in the number of new ships entering the market and an oversupply of shipping containers.
Port congestion and delays caused by the pandemic and other factors, caused disruptions to supply chains and slowed down the movement of goods.
All these factors have resulted in a decrease in the rates that shipping lines charge for transporting containers, which makes it cheaper for importers and exporters to move their goods. However, it's worth noting that the shipping market is highly cyclical and rates can fluctuate depending on demand and supply dynamics. Therefore, the rates may pick up again in the future.
iLevel With You 🏡
More topics for the average American household to consider…
😭 Dear Federal Reserve… please be gentle! The job market has been cooling off and inflation seems to be on the decline, signaling that the Federal Reserve may be less inclined to raise interest rates again and again, mirroring the increases of 2022. But rest assured, those current interest rates should remain until 2024 and the Federal Reserve hasn’t always been known for being entirely predictable. Some hope that if the economy falls into a recession, the Fed will in turn begin to lower interest rates in order to encourage borrowing and spending and help boost economic growth.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🥥 Vita Coco is just one of many CPGs that have had to change the way it does business. CPG stands for "Consumer Packaged Goods." It refers to products that are sold to consumers for their personal or household use, such as food, beverages, cleaning supplies, personal care items, and over-the-counter medications. These goods are packaged in small, consumer-friendly sizes, such as cans, bottles, boxes, and bags, and sold through retail channels such as supermarkets, drug stores, and online marketplaces. Vita Coco Company co-founder and executive chairman Mike Kirban has spoken up about the uncertainty that the company has faced over the last several years of supply chain constraints.
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.