Ahead of midterms and post-OPEC decision, White House releases 15 million oil barrels from reserve
Good morning! It’s Thursday, folks. You ready for it?
“Oh yes, the past can hurt. But you can either run from it, or learn from it.” – Rafiki, The Lion King
With next month’s midterm elections right around the corner, the Biden Administration seems to be pulling out all stops. After OPEC+ nations decided to make oil production cuts, President Joe Biden has announced that there will be another release of 15 million barrels of oil from the United States’ strategic reserve. This will complete the 180 million barrel release authorized in March of 2022, which was supposed to occur over the span of six months. Our reserves now contain about 400 million barrels of oil.
Check out today’s featured article from AP News to read about Joe Biden’s decision to release an additional 15 million barrels of oil from the strategic reserve after the controversial OPEC+ decision and what is could mean for fuel prices, the supply chain, and our future. ☕️
Featured Article:
Biden to release 15M barrels from oil reserve, more possible | AP News
“President Joe Biden will announce the release of 15 million barrels of oil from the U.S. strategic reserve Wednesday as part of a response to recent production cuts announced by OPEC+ nations, and he will say more drawdowns are possible this winter, as his administration rushes to be seen as pulling out all the stops ahead of next month’s midterm elections.”
Ports & Railroads 🚂
Port of LB director voices concern over stalled rail contract talks
Port of Long Beach Executive Director Mario Cordero is not thrilled about the latest supply chain snag: a renewed sense of uncertainty as railroads and its laborers reach another stalemate. The Brotherhood of Maintenance of Way Employees Division, the country’s third-largest rail union, has rejected the five-year agreement proposed by the railroads with the help of the Biden Administration. Cordero is warning that a rail strike would be catastrophic for the United States supply chain and that the ports rely upon railroads to move cargo.
At the American Association of Port Authorities annual convention on October 17th, Cordero also advised that he is monitoring labor negotiations between the International Longshore and Warehouse Union and the management team from the Pacific Maritime Association. Both sides have pledged that they want to settle upon a long-term deal and will keep negotiations out of the public eye.
We wouldn’t want both port workers and railroad workers striking, now would we?
Midterm Elections 🇺🇸
Independent women flocking to GOP in final days before midterms: Poll | Fox Business
In this article, Fox Business contributor Anders Hagstrom writes about the growing number of Independent women voting Republican in the upcoming midterm elections.
Fuel & Small Businesses ⛽️
As diesel prices rise, smaller carriers will feel the brunt of it
Another week, another price climb. Fuel prices hit record highs this past spring and summer and it seems to be on a journey back there again. For now two weeks in a row, retail diesel prices have jumped - this week rising 11.5 cents after spiking 38.8 the week previously.
Diesel costs $1.668 more per gallon than it did one year ago and the trucking industry is suffering. With rising fuel costs and declining spot rates, some are worried that the market cannot handle the double whammy.
Let’s Get Global 🌎
🌏 Retail, manufacturing, transport, and logistics are all taking an ‘L’. According to the Index of Global Trade Health, a report released by Tradeshift, supply chain activity is on the decline. In Q3, activity in these sectors dropped 5% across the board. So, what’s the deal? Supply chain bottlenecks are being dealt with while demand has begun to ease. The United States has seemed to stabilize the supply chain issues that plagued most of 2021 and 2022… but experts say that Europe is in for a wild ride.
🇨🇳 Looks like China is no longer the “cheaper” option. According to data collected by The Reshoring Institute (TRE), a non-profit advocacy and consulting group, labor rates have as much as doubled over recent years. Many manufacturers are returning to American shores, focusing on automation to extract labor costs and remain competitive in their market. While China used to be the low-cost country of choice, other low-cost markets taking their spot are India, Mexico, and Vietnam.
📱 The semiconductor shortage has rocked the world. Expected to expand to 2023 and beyond, there is the question of whether the market will ever recover to pre-2020 levels. There is a global dependence on the Taiwan Semiconductor Manufacturing Company (TSMC), which has only exacerbated the issue. The U.S. passage of the CHIPS Act may ease the nation’s foreign reliance on semiconductors, but it will take some time for its goals to come to fruition.
iLevel With You
More topics for the average American household to consider…
🛍 Customers know what’s best.. and that means shopping early. Consumers are starting their holiday shopping earlier than ever this year. Shoppers are searching for the most generous return policies due to many retailers cutting back. In an IBM-led survey of 12,000 adults across nine countries, results show that 58% of responders are planning on completing holiday shopping before November. November is typically the beginning of the peak season spending. The IBM report shows that shopping budgets are up 8% from 2021, which may signal that spending will actually continue to grow... despite inflationary concerns.
📦 So, you want your deliveries on the same day you order them? Keep in mind that this is a very grey area of sustainability and ethics. Lockdowns created a demand for convenience and quicker delivery times, which has cost a lot of money to make happen. Workforces working under the tightest of deadlines are beginning to suffer both physically and psychologically.
💸 Even Bezos is waving the warning flag. Amazon founder Jeff Bezos is the latest leader in the corporate world to warn the public that tough financial times are ahead of us. The former Amazon CEO predicts further volatility, echoing JPMorgan Chase CEO Jamie Dimon’s recent statements that America is heading for a recession within the following six months. How’s that savings account looking, folks?
GET SMART
Ramp up that brain power for these advanced topics…
🏆 Getting smart about supply chain volatility. Geo-political tensions, worldwide inflation, cyber security risks, and supply chain disruptions of all sorts are only a few of the back-breaking challenges supply chain officers face today. Professional analysts at Gartner want to help. Some suggestions for leaders in the supply chain industry are to speed up digital transformation within the company and to study where the company is particularly vulnerable to outside risk.
🚛 Talking tonnage. According to the American Trucking Associations (ATA)’s monthly survey, truck tonnage has risen to 5.5% in September. That is its third-highest level on record. This For-Hire Truck Tonnage Index had grown 2.1% already in the previous month of August. Year-to-date through September, the same period in 2021 sat at 4% less than it does today. So what does this mean? Despite a weakening spot market, the freight market is remaining strong
📋 Need a better measure of success? Logistics KPIs (Key Performance Indicators) are a sure-fire way measure the capabilities of an organization. Logistics is the lifeblood of the supply chain… so treat it that way. Is your company meeting its goals in regards to safety, time, cost, and quality? Keeping KPI’s trackable is necessary for optimal use.
Business Strategy 💡
McCormick plans to eliminate $100M in costs and inefficiencies | Supply Chain Dive
In this article, Associate Editor Alejandra Salgado writes about McCormick & Company's newest strategy for dealing with persistent inflation and fluctuating demand. The Baltimore-based company has announced it will be eliminating almost $100 in costs.
In this article, the SC Digest team shares their thoughts on the earnings call with McCormick and PepsiCo. Both companies are focusing on supply chain strategies as they launch into the next business quarter.
FM LOGISTIC: INVESTING IN MORE RESPONSIBLE LOGISTICS IS IN OUR DNA | Post and Parcel.info
In this article from Post and Parcel, we take a deep dive into the business strategies of FM Logistic.
Safety 🦺
5 trucking behaviors are strongly linked to future crashes: ATRI | Transport Dive
In this article, associate editor David Taube writes about the latest crash predictor report released by the American Transportation Research Institute.
Regulations ⚖️
Truckers weigh in on Labor Department proposal | Land Line
In this article, Land Line contributor Mark Schremmer writes about the trucking response to the U.S. Department of Labor’s proposal to reclassify the definition of an independent contractor.
Ports 🚢
Port of Long Beach Imports Fall in September | G Captain
In this article, G Captain contributor Mike Schuler writes about the third consecutive decline of imports at the Port of Long Beach recorded in September.
Sales 🧾
Holiday Sales: What Should Retailers do to Prepare their Supply Chains | MH&L News
In this article, MH&L News Staff writes about IBM’s findings in a recent survey. Respondents have signaled that they are willing to spend more money earlier this year to get holiday gifts squared away before the rush.
Hours of Service ⏰
Are Changes to ELD Rules in the Air? [Video] | Trucking Info
In this video, HDT Editor-in-Chief Deborah Lockridge speaks with Brandon Wiseman, the president of TruckSafe. Together, they discuss the possibility of ELD regulation updates by the Federal Motor Carrier Safety Administration.
Driver Issues 🚛
How Yellow plans to train 1,000 drivers by the end of 2022 | Transport Dive
In this article, reporter Colin Campbell writes about the driver retention strategies implemented by the carrier, Yellow. Yellow is expanding its private driver academy through the work of safety trainers. This expansion draws hope that the carrier will train an extra 1,000 drivers by the end of the year.
Tech 👩💻
Watch: Can Technology Save Last-Mile Delivery? | Supply Chain Brain
In this article and conjoining video, Anar Mammadov, the technical founder of Senpex, dives into what he thinks will assist companies in strengthening their last-mile delivery services.
Fuel & EVs 🔋
Here’s why convenience stores aren’t rushing to replace gas pumps with EV chargers | CNN Business
In this article, CNN Business contributor Matt McFarland writes about why convenience stores don’t seem to be in a hurry to replace gas pumps with electric vehicle stations, regardless of an industry push toward the latter. The reason: it’s unprofitable.
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.