⛈️✈️📦 Francine's Fuel Freeze, Boeing Pay Standoff, & Tariff Takedown
Good morning! ☀️
Buckle up, folks, because today’s supply chain news is a wild ride.
👉 In the wake of Hurricane Francine, 20% of crude oil production and 28% of natural gas in the Gulf are still offline (yep, fuel costs are sweating).
👉 Meanwhile, Boeing workers hit the picket line after saying "no thanks" to a new labor contract, adding another layer of turbulence to the industry.
👉 And just when you thought e-commerce had it easy, the US is gearing up to slap new taxes on low-value Chinese shipments—looking at you, Shein and Temu.
Ready for the dash? Let's dive in!
“Every small positive change we make in ourselves repays us in confidence in the future.”
Hurricane Francine Hits Gulf Oil & Gas Hard
In the aftermath of Hurricane Francine, nearly 20% of crude oil production and 28% of natural gas output in the Gulf of Mexico is still down. This Category 2 storm caused some serious damage in Louisiana and beyond—flooding, power outages, and major disruptions in energy production. As of Sunday, we’re looking at over 338,000 barrels of oil and 515 million cubic feet of natural gas offline.
Recovery’s in progress, but it’s a slow climb.
Why does this matter? If you're in transportation and logistics, it’s simple: energy disruptions = higher fuel costs and slower shipping. When oil and gas take a hit, we all feel it.
🔥 Hot Take: Francine is another reminder that weather events are as crucial to track as freight rates. The more flexible we are, the better we can dodge those financial storms!
Boeing Workers Push for Fair Pay Amid Strike
After rejecting a new labor contract, Boeing workers hit the picket line, demanding better wages. Even with rainy weather in Renton, the team is standing strong. Vaughn Johnson, one of the employees, highlighted that while profits have soared and CEOs got bonuses, workers have only seen a 1% raise in the past eight years – not even enough to keep up with inflation. The financial hit to Boeing could be huge, with estimates suggesting a $3.5 billion loss if the strike lasts through mid-November.
💡 Why It Matters: For those of us in transportation and logistics, a strike at Boeing means potential delays in plane production, which could mess with supply chains, shipping schedules, and costs.
🔥 Hot Take: Labor disputes can throw major wrenches in even the most efficient supply chains. Being flexible and prepared for potential disruptions is key to keeping things running smoothly.
US Cracks Down on Low-Value Chinese Shipments
The US is looking to tax low-value shipments from China, targeting big e-commerce players like Shein and Temu. Right now, packages under $800 slip through without tariffs, but the Biden administration wants to close that loophole, saying it’s unfairly helping these companies offer ultra-low prices. This move could slow down their rapid growth, as it forces more transparency and removes tariff exemptions on certain goods.
Temu and Shein are pushing back, saying their success is all about efficiency. But if these new rules kick in, we could see higher costs that might get passed on to consumers.
🔍 Why It Matters: For transportation and logistics pros, more tariffs = more paperwork, customs delays, and potential shifts in shipping demand.
🔥 Hot Take: These new rules could shake up e-commerce logistics, giving smart logistics providers an edge as companies adjust to the new complexity.
Daily Riddle:
I move without feet,
Across screens I glide,
Bringing goods to your door,
With no need to hide.
I’m fast and convenient,
With clicks I am done,
What am I, in this digital run?
______
Previous Riddle Answer: Transparency
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 4, 2024, from iLevel Logistics Inc.