Q4 is coming: truckers, prepare yourselves
Good morning! It’s World Smile Day and Friday. Now that’s a reason to smile.
In other news… truckers need to prepare for the upcoming season. Q4 sales are predicted to boom in a big way and with an industry struggling to retain truckers and profit margin, this could mean there are big challenges ahead for fleets of under 20 trucks. These fleets, which make up 97% of the country, are likely to feel the brunt of regulatory challenges and elevated fuel costs. Is the industry prepared?
Check out today’s featured article from Supply Chain Brain to read about the upcoming Q4 retail market boom and why truckers need to prepare for conditions that are likely to be tighter and more difficult to navigate than ever before. ☕️
Featured Article:
The Trucking Industry Needs to Prepare for the Q4 Retail Boom | Supply Chain Brain
“Global e-commerce sales in 2022 are expected to hit $5.4 trillion, up from $4.28 trillion in 2017.”
Fuel & Inflation ⛽️
Gas prices are about to go up, again
OPEC+, a team of oil-exporting countries, made the unified decision to decrease the production of oil based on “uncertain market outlooks.” After this decision, American gas prices rose nearly 3 cents per gallon at $3.83 - this is the largest price hike for gas prices in almost four months. It’s been 99 days of declines, so this increase was felt across the country. The bad news? More price increases are coming.
Besides the OPEC decision, increases have all been happening because of an unusual amount of oil refineries being shut down for maintenance and repairs. According to the global head of energy analysis for OPIS, Tom Kloza, almost 18% of the country’s refining capacity is offline for this reason. This tight market means gas prices will remain high, and likely continue growing. Some industry officials are hoping California’s summer regulation of blended gasoline being lifted a month early may ease the price at the pump. California’s average is currently sitting at $5.52 per gallon.
Midterm Elections 🇺🇸
Kari Lake’s Arizona campaign looks like nothing you’ve seen before | Politico
Politico contributor Alex Isenstadt writes an article analyzing Arizona Republican Kari Lake’s campaign for governor. Lake has been both praised and condemned for aligning with controversial President Donald Trump and has stirred up some division in her own political party.
GOP optimistic about Senate chances despite Walker turmoil | AP News
AP News contributor Steve Peoples writes about the recent internet issues stemming from Herschel Walker’s condemnation by his son for lying about personal life issues. But despite this controversy, the GOP is feeling confident about the U.S. midterm elections.
Republican support from this key voting group is in jeopardy. Abortion is to blame. | Politico
Politico contributor Elena Schneider writes about the voting population of white women without college degrees. With the abortion topic on the table after SCOTUS’s overturn of Roe v. Wade, Democrats are hoping to appeal to this group after they’ve turned away over recent years.
Company Culture & Unions 🪧
Growing dispute issues with pilots union force FedEx Express to hire mediator
The federal government is stepping in to help mediate labor talks between FedEx Express and Air Line Pilots Association, International (ALPA). The National Mediation Board has been hired after the goal of achieving a new agreement between the two parties by May 2022 failed. The labor. talks began in May of 2021 and the current work contract became amendable in November 2021.
FedEx has insisted that the Mediation Board's involvement will not affect the operations of the company. The pilot union has issued statements of frustration over the extended negotiations and has picketed the headquarters of FedEx in Memphis, Tennessee as a response.
Let’s Get Global 🌎
🔋 Let’s get manufacturing. China and Europe are far ahead of the United States in terms of manufacturing electric batteries for electric vehicle usage, but the United States is aiming to gain headway with the Inflation Reduction Act. The legislation, signed into law by President Joe Biden, offers incentives for U.S. companies to domestically manufacture lithium-ion batteries and offers tax credit qualifications for sourcing materials needed for those EV batteries on U.S. soil. Seeing the writing on the wall, many companies are throwing their hat in the ring, hoping to reap the financial benefits of a rapidly growing market.
🎣 That’s illegal! The Thunder is a fishing vessel sitting comfy on Interpol’s Most Wanted List along with four other ships. The ship has spent the past decade collecting over $76 million in illicit sales while illegally fishing, particularly in Antarctic waters. The Thunder is responsible for an extraordinary sea chase that is being chronicled by The Outlaw Ocean Profit, a non-profit journalism organization. Illegal fishing is one of the top crimes that take pay offshore and is a global business of over $10 billion.
👨💻 Crossing the border. GEODIS MyParcel, a cross-border delivery software system that operates on a direct-to-customer basis, is looking to assist brands in expanding their e-commerce businesses on a global scale. Already the service is operated in the United States, Canada, the United Kingdom, and twenty-six other European countries. Currently, the service promises delivery fulfillment within a 2-7 day allotment. When surveyed by the International Post Corporation, customers often reference delivery speed as a number one concern in relation to cross-border commerce. GEODIS wants to be the solution.
iLevel With You
More topics for the average American household to consider…
⛴ M-I-S-S-I-S-S-I-P-P-I. The Mississippi River is shrinking and the largest barge operator in the U.S., Ingram Barge Company, is wanting the historically low water levels will hinder deliveries. Currently the top water route for moving U.S. soybeans and grains to an international market, many vessels are running aground. The U.S. Coast Guard has been forced to dislodge ships near Stack Island in Louisiana and near Memphis, Tennessee. With 60% of U.S. grain exported in the Mississippi River, many on the river are praying for a major storm to roll through.
⛽️ Pump prices may be rising, again. We know - are you tired of it all yet? OPEC+, a team of oil-exporting countries, made the unified decision to decrease the production of oil based on “uncertain market outlooks.” This move is likely to issue another blow to the global economy and increase gas prices at the pump, in which seems like a never-ending black hole. One alliance member, Russia, might be hoping this agreement will offset the looming European ban on its oil exports. The White House issued a statement on the OPEC+ decision, saying that President Biden is disappointed and hopes to diminish OPEC’s control over energy prices by developing new legislation in Congress.
🛻 Better start saving up even more for that new pick-up truck. Ford Motor is increasing the price tag on its new electric F-150 Lightning pickup truck for the second time in less than sixty days, frustrating potential buyers. The car manufacturer’s entry-level price of the 2023 model is raising another $5k for “supply chain issues and growing cost of manufacturing.” In May 2021, the starting price of $39,974, and today the price is now $51,974. This is a 30% increase and for those who haven’t ordered their new truck yet… possibly enough to give them second thoughts.
GET SMART
Ramp up that brain power for these advanced topics…
🚛 The customer is always right. That’s what supply chain leaders, e-commerce retailers, and manufacturers can all agree on - hence, the great importance of getting the delivery experience right. With the e-commerce boom seemingly here to stay in a post-pandemic world, product and price are no longer the only benchmarks companies should consider when enhancing a customer’s experience with their brand. Enhancing delivery logistics operations are a critical matter and can make-or-break a company’s quarterly sales. Last-mile logistics are the key to delivering to a customer in a safe, time-effective, and cost-effective manner.
🍅 “Saving money” while eating at home isn't necessarily the truth anymore. Grocery prices increased by 13%+ over the past year, inflating the largest amount in over forty years. Many customers have turned to online grocery shopping after the pandemic, and an average spend of $6.7 billion per month is a staggering amount - more than double what was purchased prior to the Covid-19 shutdowns. Grocers are beginning to leverage delivery management tools as more and more customers turn to delivery services for food.
♻️ Clean vehicles are all the rage - we all know this. The industry is growing by the day. Now, investment firms and governments alike are looking to assist companies in achieving their net-zero emissions goals by putting money where their mouths are. By itself, The Bipartisan Infrastructure Bill (IIJA) is awarding $16.45 billion in programs such as Rebuilding American Infrastructure with Sustainability and Equity (RAISE), Infrastructure for Rebuilding America (INFRA), and the National Infrastructure Project Assistance Program. Federal money is being poured into clean energy initiatives and economic stimulus packages aren’t just relegated to the United States - Europe is committing over $2 trillion through 2027 for a “greener” future.
Network Association 🤝
DC Velocity shares an article diving into the new partnership between SEKO Logistics, a leading global logistics provider, and Airhouse - a next-generation fulfillment platform that aims to simplify the complicated nature of e-commerce operations for the most popular brands of the new age.
Industry Forecast 📊
September Services sector activity remains solid, reports ISM | Logistics Management
Logistics Management’s Group News Editor Jeff Berman writes about the Services PMI growth in September and what that could mean for November and October numbers around the bend.
Sustainability ♻️
Supply Chain Execs Focused on ESG but Lack Measurement Methods | MH&L News
MH&L Staff write an article about ESG (Environmental Social Governmental) goals in supply chains, and whether executives can effectively implement lofty goals promised to shareholders.
Reason Foundation contributor Robert Poole writes about the conflicting litigation and bureaucracy issues slowing down environmental reform.
Electric Vehicles 🔋
Scaling charging infrastructure: Planning for the future of your electric fleet | Fleet Maintenance
Fleet Maintenance contributor Anthony Allard writes about how fleets can plan ahead while incorporating electric vehicles into their operation.
CNBC contributor John Rosevear writes about Amazon’s electric vehicle Rivian and how its 2022 targets can only be met if the speed up manufacturing. Wall Street seems to be under the impression the company will prove worthy of those targets.
Company Culture 🎉
How shared values influence driver satisfaction | Bulk Transporter
Bulk Transporter contributor Dameous Little writes about the importance of an employer and an employee’s value aligning in order to retain talent and fulfill driver satisfaction.
There’s an ESG backlash inside the executive ranks at top corporations | CNBC
CNBC contributor Eric Rosenbaum writes about the leadership of many corporations arguing over public ESG goals.
Inflation 💸
Forbes released a video of Steve Forbes sending a message to central bankers and Fed chairman Jerome Powell to stop trying to achieve a 2% inflation rate.
News Bag 🗞
Supply Chain by the Numbers for October 6, 2022 | Supply Chain Digest
SC Digest summarizes the top stories of the previous week in the logistics realm, including an Amazon worker walkout in New York and how much new manufacturing orders are now declining.
Warehousing 📦
SC Digest shares an article explaining why so many companies in the U.S. are paying over market value and asking amounts from warehouse owners in order to access warehouse space. According to the national average rent for warehouses, renters are paying 28.2% over the asking price.
Leadership 🏆
HDT's Innovators on Leading Fleets into the Future | Trucking Info
Trucking Info contributor Deborah Lockridge writes about the six-person panel discussions at the Scottsdale, Arizona Heavy Duty Trucking Exchange.
Sales 🧾
Class 8 orders soar in September to record high. Can OEMs deliver? | Fleet Owner
Fleet Owner contributor Scott Achelophl writes about recently released ACT Research and FTR Transportation Intelligence data that shows Class 8 orders were record-high in the month of September.
Fox Business contributor Aislinn Murphy writes about the recent Bank of America report citing the price tags of commodities and persistent inflation as the primary concerns of small businesses, regardless of sales growing stronger as the holiday season approaches.
Trucker’s Lounge 🧢
Supply Chain Rallies in Wake of Hurricane Ian | TT News
TT News Senior Reporter Roger Gilroy writes about the notable effort being made on the coast of Florida as supply chain professionals work to restore a sense of normalcy after Hurricane Ian wreaked havoc throughout the region.
U.S. Economy 🇺🇸
Jobless claims rise more than expected as labor market starts to cool | Fox Business
Fox Business contributor Megan Henney writes about the cooling labor market, leaving more people forced to apply for unemployment as the Federal Reserve continues to raise interest rates.
Air ✈️
How Congress has transformed the US airline industry | The Hill
The Hill opinion contributors Captain Chelsey “Sully” Sullenberger and Captain Joseph G. Depete write about the airline industry's big changes due to Congress stepping in.
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.