👎🥳❌ Contract Crumble, Marketing Madness, & Gas Export Delay
Good morning! ☀️
It's a frosty Thursday morning in January, and we're here to kickstart your day. ☕️
While the weather may be chilly, our newsletter is anything but frosty - expect our sizzling takes on the latest news. So, grab your coffee, put on your supply chain thinking cap, and let's dash through this Thursday with enthusiasm - because in the world of logistics, we know how to turn even the coldest challenges into hot opportunities!
“The biggest risk is not taking any risk. In a world that’s changing quickly, the only strategy that is guaranteed to fail is not taking risks.”
Transportation | Rates | Pricing
Dry Van Freight Contracts Fall
While contract and spot prices in the transportation industry have been narrowing, there's still a significant gap between the two, as pointed out by Adamo. Shippers have managed to secure lower contract rates due to ample capacity in the market relative to freight volume and persistently low spot rates, according to DAT. Despite the overall decline in dry van contract rates, there have been exceptions, as highlighted by Tim Denoyer of ACT Research. With spot rates holding steady for several months, the downward pressure on the broader contract market is easing.
In December 2023, the spread between dry van spot and contract rates was reduced by 7 cents, narrowing the difference to 39 cents compared to 2019 levels, based on DAT data. ACT Research also noted that while freight demand has been below the usual trend, it is starting to recover as post-pandemic effects wane, with disposable incomes and retail sales on the rise. Additionally, disruptions in ocean shipping are contributing to the conclusion of an 18-month destocking phase.
Read more about this at Supply Chain Dive >
WHY IS THIS IMPORTANT FOR MY INDUSTRY?
It's like peeking behind the scenes of the ongoing negotiations between shippers and carriers. Knowing how contract and spot rates are doing helps the bigwigs in the industry make educated calls when they're hammering out pricing deals. The shrinking gap between contract and spot rates is a sign of the times. The report throws in tidbits about things like people's spending power and retail sales. It's a weather forecast for the economy, and it helps businesses see how the bigger economic picture might affect how much stuff needs hauling.
🔥 OUR HOT TAKE?
While the industry narrative may paint a picture of narrowing contract and spot prices as a win-win for shippers and carriers… there's a different perspective here to consider. The substantial gap that still exists between these rates raises questions about the fairness of the transportation market.
While the data suggests positive trends, do these trends truly reflect a fair and equitable transportation industry for all stakeholders - including carriers and drivers? The industry must continue to grapple with questions of fairness, sustainability, and profitability in the face of evolving market dynamics.
Marketing | Media | Trust
Building Trust and Engagement in the 21st Century Marketing Landscape
In the ever-evolving landscape of marketing, defining branded content has been a challenge, primarily due to the industry's constant changes. Branded content has come a long way from its early days as advertorials, with more publishers and advertisers embracing it. Whether you're a startup looking to disrupt an industry or a Fortune 500 company like IBM or JP Morgan Chase aiming to engage with new generations of customers, branded content has become the go-to strategy. It goes beyond traditional advertising, which consumers have grown weary of, with 25% using ad-blockers.
Moreover, branded content is a premium product, with prices ranging from $1,000 to $50,000 or more, depending on the campaign's scope. Teams are increasingly focused on proving its effectiveness, as it not only raises awareness but also drives traffic and revenue for brands. In today's marketing landscape, branded content is the way forward.
Read more about this at CNBC >
WHY IS THIS IMPORTANT FOR MY INDUSTRY?
Staying informed about the evolving marketing landscape, including the rise of branded content, can help the trucking, transportation, supply chain, and logistics industries ALL refine their marketing strategies, connect with their target audience more effectively, and ultimately drive business growth and success.
🔥 OUR HOT TAKE?
Listen… branded content might not be all it's hyped up to be. Sure, it's a hot topic in marketing, but is it really worth the price tag? First of all, defining what branded content even is has been a never-ending puzzle. The constant changes in the marketing world don't make it any easier. So, are we all just throwing money at something we can't quite grasp? Not to mention those premium prices. Branded content can cost a pretty penny, ranging from a thousand bucks to a small fortune. Is the return on investment really worth it, or are brands just getting caught up in the trend?
With a quarter of internet users blocking ads, it seems like the intended audience is trying to dodge marketing altogether.
While some swear by it, others might see branded content as a pricey gamble in the ever-shifting landscape of marketing. Maybe it's the way forward, or maybe it's just another shiny distraction.
Biden | Gas Export | Delay
Biden Administration's Delay on Major Natural Gas Export Terminal
The Biden administration has hit the pause button on a critical decision regarding the approval of the largest natural gas export terminal in the United States. This delay could extend beyond the November election and impact not only the project in question but also 16 other proposed terminals. The White House has directed the Energy Department to conduct a more comprehensive evaluation of the project, considering its environmental impact on climate change, economic factors, and national security.
This move is strategically timed as President Biden seeks reelection, aiming to appeal to climate-conscious voters. It's also significant given the United States' leading position in liquefied natural gas (LNG) exports and oil and gas production. The project in question, Calcasieu Pass 2 (CP2), is one of 17 proposed by the fossil fuel industry.
However, this decision is likely to face opposition from Republicans, including former President Donald Trump, who view it as hampering American energy. Senator Mitch McConnell has already criticized it as a potential ban on new LNG export permits.
CP2 is a substantial project that could significantly increase the export of American natural gas. Still, concerns about its environmental impact, particularly methane emissions, have prompted the need for a more in-depth evaluation. This decision could set a precedent for other proposed natural gas terminals.
Read more about this at NY Times >
WHY IS THIS IMPORTANT FOR MY INDUSTRY?
Natural gas prices might not be the first thing on a trucker's mind, but they can sneakily affect how much it costs to keep those wheels turning. If this gas project takes off, it could nudge energy prices, which in turn might pinch the wallets of trucking and logistics businesses.
The timing of this decision, with a presidential election around the corner, hints at some politics in play. Political stability and policies can ripple through the whole economy, and guess what? That includes the world of trucking and logistics. If this move sets a precedent for other energy projects, it could mean more scrutiny and green thinking for other infrastructure projects, including things tied to the world of trucks and shipping.
🔥 OUR HOT TAKE?
The Biden administration's move is a classic example of political posturing at the expense of American energy and economic growth. While they may claim to be considering environmental impact, it’s our opinion that this delay is nothing more than an attempt to pander to climate-conscious voters in an election year. In the end, this delay may be more about playing politics than protecting the environment.
Daily Riddle:
I'm the art of crafting stories and information,
In the digital world, I lead the creation.
Words, images, and videos are my foundation,
What am I in the realm of online fascination?
Jan 24 Answer: driver pay
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.