Welcome to Freight Forwarding Weekly.
If you’re new here, this email is a quick recap of the most important stories in the global freight & logistics industry.
Today’s edition is brought to you by Premium Member First Class Trucking.
You can learn more about the benefits of premium membership here. But first, let’s dive into:
The Numbers*
⛽ Diesel: $5.310 / gal
✈️ Air Cargo Index: 236.5
🚢 Container Index: $3,340
The News
🌎 Long Live Deglobalization?
Greg Heckman, CEO of St. Louis grain giant Bunge Ltd. is warning that globalization is over. But this is not negatively affecting profits for the conglomerate. In fact, the current wave of de-globalization as a result of the Ukraine war and US-China tensions has led to surging demand for Bunge’s biofuel products in addition to driving up base commodity prices. More at GCaptain.
💸 Declining Fuel Prices
Truckers have been feeling the pain as fuel prices are 44 percent higher than this time last year. Yet there is some light at the end of the tunnel as the price of diesel is expected to decrease with the recent dip in crude oil prices. Freight rates are expected to remain high through the winter, adversely affecting shipping customers who have not yet stocked up ahead of the holiday season. More at Drovers.
🏭 TikTok: China’s New Logistics Superpower?
Social media giant TikTok, or Douyin as they say in China, is striving to be the next logistics superpower. TikTok has had major success driving dropshipping sales, and the company has started advertising for logistics and warehousing roles in the US. TikTok is not the only Chinese company now working in logistics and distribution. Alibaba’s Cainiao, Shein, and SF Express are also expanding into this sector. More at Yahoo! Finance.
🐻 Container Bear Market Is Here
The latest numbers from DP World are a mixed bag. The third quarter saw a 2.1 percent increase in gross container volume while a decline is forecast for the upcoming quarter. Gross profit was up by $2.7 billion compared to last year, but demand remains stagnant. With a projected decline in air and sea transport by up to 15 percent, sales teams will need to step up the pace to satisfy management. More from Maritime Executive.
🚚 The Changing Landscape for U.S. Trucking
This Bloomberg podcast offers an insightful look at the legal challenges currently faced by truckers, including the effects of a new California worker classification law, and a U.S. Supreme Court ruling on accident liability for freight forwarders. A must-listen for anyone involved in U.S. trucking. More from Bloomberg.
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