Peak season shopping is underway and strong
Good morning! Happy Tuesday - let’s get the ball rolling.
“The fastest way to change yourself is to hang out with people who are already the way you want to be.” — Reid Hoffman, LinkedIn co-founder
Holiday shopping kicked off a little earlier than normal this year. Major sales in October had people in a shopping mood and the National Retail Federation is expecting somewhere between $942.6 billion and $960.4 billion to be spent by eager consumers… despite inflationary pressures.
Check out today’s featured article from MHL News article to read about the holiday sales forecast which is expected to smash records this upcoming season. ☕️
Featured Article:
Holiday Sales Should be Quite Healthy Says NRF | MHL News
"There is continued stratification with consumer spending and behavior among households at different income levels, consumers remain resilient and continue to engage in commerce.”
Fuel & Trade - Border Issues 🚢
EU’s Oil Sanctions on Russia leave some gaps
While the European Union’s impending oil sanctions on Russia seem strict and exclusionary on its face, there are still some loopholes in the deal. Refiners, or those that convert crude oil into fuels like gasoline and diesel, have the advantage. Any refinery could buy Russian crude oil - likely at a less expensive price than global crude benchmarks - and still ship it safely and legally.
Essentially, diesel coming out of a third-party refinery fed with Russian crude oil is still considered a third-party country’s diesel. Signed, sealed, and delivered.
Business Strategy & Competition 💡
UPS CEO praises company direction offering logistics-as-a-service
UPS CEO Carol Tomé is singing praises for UPS as they move to create more value for customers and new revenue opportunities with logistics improvement. By combining digital solutions with the company’s global integrated network, Tomé believes that the company is “unstoppable.”
The UPS logistics as a service (LaaS) strategy is primarily focusing on the following: five strategic pillars: delivery density; end-to-end visibility; financial solutions; robust reverse logistics; and advanced capabilities that assist clients optimize their supply chain. The target of UPS while integrating this business strategy is small and mid-sized businesses, which offer higher profit margins than large shippers.
Let’s Get Global 🌎
Grow Annie Potts GIF By CBS via GIPHY
🌎 Global supply chain expansion depends on improved supply chain agility. Supply Chain Agility is when a multi-enterprise supply chain network platform suppliers order fulfillment applications and advanced risk analytics on a public cloud - available for trading partners to view and analyze. Descartes is one of the top companies offering this kind of network, a Waterloo, Canada-based network that offers cloud-based solutions.
🇹🇼 Dependence on Taiwan-made semiconductor chips is hurting the U.S. Around 65% of the global semiconductor supply is originating from Taiwan - another 90% when it comes to the smallest type of semiconductor chip. The domestic semiconductor supply chain is very fragile, and only recently has America begun to address that issue. With August’s CHIPS and Science Act moving into motion, U.S. domestic research, development, and production of semiconductors should begin to increase.
🇿🇦 Extortion and violence disrupt South African coal shipments. A Nov. 8 derailment of South Africa’s Transnet SOC Ltd shipment to the Richards Bay Coal Terminal has spiraled out of control as community leaders and a group known as the Ulundi Business Forum demanded contracts and business opportunities in the event. When Transnet refused the Forum, violence ensued.
iLevel With You
More topics for the average American household to consider…
📨 USPS rates are rising in 2023. The United States Postal Service announced a few price hikes for the upcoming calendar year, depending on the product. While they insist that some rates will remain the same, the rate hikes still signal that lower volumes and inflationary pressures are forcing most to make these price adjustments. Before officially taking effect on Jan. 22, 2023, the Postal Regulatory Commission is reviewing the price adjustments. The largest of the adjustments is the price of shipping a First-Class Package Service (parcels less than one pound), which is set in incur a 7.8% average increase.
💸 A cool-off in the logistics industry could mean slowing inflation. Maybe… at least that’s what CNBC’s Jim Cramer suggested last week as he dove into the freight industry’s decline after its massive pandemic boom. October’s consumer price index data was calmer than what had been expected and sent stocks surging in a way we hadn’t seen since 2020. Massive logistics companies such as C.H. Robinson are cutting employees and costs, signaling a significant slowdown on the horizon after the holiday season is over.
🗳️ Voters approve of transportation improvement projects in 18 states. Expected to generate $19.6 billion in one-time and recurring revenue, these now-passed initiatives were supported with higher measures than the historical average tracked by American Road & Transportation Builders Association (ARTBA’s) Transportation Advocacy Center. This widespread voter support comes a year after the passage of the federal Infrastructure Investment and Jobs Act.
GET SMART
Ramp up that brain power for these advanced topics…
🤖 Amazon Prime Air unveils new MK30 drone design for 2024 deliveries. Amazon’s had big dreams of drones fulfilling final-mile deliveries for years, but this new robot is now slated for operation in 2024. The MK30 drone is lighter and smaller than its previous model, with an increased range, expanded temperature tolerance, and new capability to fly in light rain. Amazon customers in Lockeford, California, and College Station, Texas will be some of the first to experience the MK30 drone in flight.
🧐 TuSimple tosses independent directors after throwing out the CEO. After a thorough U.S. national security review was concluded, the self-driving start-up based in San Diego ousted its CEO after national security implications of foreign investments. Following this move, the company has now also removed several independent directors from its board. This action consolidates control under co-founders Mo Chen and Xiaodi Hou, the sole continuing board members.
🚂 Rail carload and intermodal volumes are giving mixed signals. During the week ending November 5, rail carloads saw a 3.2% annual increase while intermodal containers and trailers fell 3.6%. These results were released by the Association of American Railroads (AAR).
Trucker’s Lounge 🧢
Leadership lessons from trucking’s military veterans | Fleet Owner
Fleet Owner contributor John Hitch writes about how leaders at some of trucking’s largest companies can share how their military experience is helpful in their everyday lives.
Fleet Maintenance guide to hiring veterans | Fleet Maintenance
In the article, Fleet Maintenance contributor John Hitch writes about the importance of considering America’s veterans while hiring.
Leadership 🏆
TuSimple Brings Cheng Lu Back as CEO | TT News
TT News shares an article about TuSimple’s leadership rearrangement after prior CEO Xiaodi Hou was terminated.
Driver Issues 🚛
What’s the latest trucking jobs estimate? | Transport Dive
Transport Dive shares an article about The Bureau of Labor Statistics estimates for October truck transportation jobs.
Sales 🧾
Excess inventory problem 'needs more than sales' - E2Open | Supply Chain Digital
Supply Chain Digital contributor Sean Ashcroft writes about E2open, where Lori Harner, AVP of Product Marketing, spoke about planning and tech investment.
Cab Tech 🚛
Is Your Truck Fleet Ready for the Canadian ELD Deadline? | Trucking Info
Trucking Info contributor Jim Park writes about Canada’s long-awaited ELD regulations which will be required on January 1st.
Industry Forecast 📊
Trucking industry’s November economic forecast shows slight uptick | The Trucker
In this article, the Trucker News Staff writes about peak season trucking forecasts, which looks like it will only be slight.
FedEx Freight enacts furloughs as it faces volume decline | Transport Dive
In this article, Transport Dive Reporter Max Garland writes about LTL carrier FedEx Freight’s decision to enact furloughs upon employees.
Safety 🦺
No evidence ELDs have improved safety, OOIDA says | LandLine
Landline contributor Mark Schremmer writes about the Owner-Operator Independent Drivers Association’s opinion on electronic logging devices.
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.