All The Supply Chain News You Need To Know 3.4-3.8
Winter storms slow shipments, stall truckers. On Monday, a slew of winter storms blanketed the US East Coast with, what that the National Weather Service warned was, "significant amounts of snow, sleet and ice [that] will make travel very hazardous or impossible." States from Maine to West Virginia experienced heavy snow that dumped over a foot of powder in some Northern areas, including over 16” in Boston. Meanwhile, Midwestern states are contending with deadly cold, ice, and wind as temperatures drop to -35 degrees F and below. Nevada and NorCal could see flooding from heavy rains that are expected to start Tuesday and last through Thursday. Washington and Oregon are bracing for a mid-week storm front that will bring a wintery mix and widespread precipitation.
Trade war may end in truce. Discussions between the US and China to end tariffs the two nations have levied against each other are “progressing”, according to Bloomberg. Although President Trump delayed the 25% March 1st tariff increase, the tariffs that are already in place remain a point of contention to getting a deal done. As part of the agreement, the Chinese would increase purchases of US goods by $1.2 trillion over six years and they’d pledge to better protect intellectual-property rights. China is adamant that the US remove trade war tariffs quickly before they finalize any deal.
Trade war could cost US $40 billion in lost exports.
With
China’s retaliatory tariffs hitting nearly 900 categories of American products,
US exports are the first casualties of the conflict, according to a recent study
by the Institute of International Finance. The study looked at freight from July
– November where the value of lost exports topped $17 billion, according to
Sergi Lanau, the IIF’s deputy chief economist. Just looking at November, exports
were down $4.1 billion from the same month in 2017. “Whatever your intentions
were, I have to tell you the evidence on the ground is really grim,” Florida
Democrat Stephanie Murphy told US Trade Representative Robert Lighthizer. “I’ve
had small business owners in my community, in central Florida, break down when
they talk to me about the impact that tariffs are having on the companies that
they have spent a lifetime building.”
CMA CGM’s revenues soar while profits spiral. The French carrier saw record revenues of $23.48 billion in 2018 but profits plummeted 91% due to massive cost increases. The company attributes a 9.3% upswing in container volume for the steamship line’s windfall, but industry dynamics have sunk their bottom line. Net profits were down from $662.4 million to $68.3 million. Stevedoring, bunker/fuel, feeder, inland, logistics, and employee expenses were all up double-digits for the firm in 2018.
Walmart introduces plastic waste reduction commitments for suppliers. The big box beast shared its plan this week for Walmart and its US private labels to achieve 100% recyclable packaging by 2025, while encouraging their national suppliers to do the same. “As a global retailer that has set an ambitious aspirational goal to create zero waste, we fully recognize that reducing plastic waste by increasing packaging circularity is an area where Walmart can lead,” said Laura Phillips, Senior Vice President, Global Sustainability, Walmart, according to Supply Chain Digital.
Diesel average up for third straight week. The national diesel average per gallon spent its third week in a row above the $3 mark as it climbed 2.8 cents to $3.076. Annually, the national average is up 8.4 cents.
Lucky turkey thankful after carve up with trucker’s windshield. The bird ran afoul of veteran trucker Nick Gerken’s semi while it was traveling 65 mph on I-75 in Sarasota County. Gerken, a driver for 20 years, was certain the gobbler had the stuffing knocked out of it but to his surprise the Tom had landed in his sleeper and was uninjured in the collision.
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