Current Affairs
February 9, 2022
Supply Chain Normalization?
World’s Top Shipping Exec Says Worst Supply-Chain Snarls Have Peaked
by Tyler DurdenWednesday, Feb 09, 2022 – 11:11 AM
AP Moller-Maersk suggests the climax of global supply-chains snarls has passed, and bottlenecks will alleviate in the second half of the year. There are emerging signs major transpacific shipping freight rates are at a critical inflection point.
“We are guiding in an environment where we are coming out of a pandemic, and we don’t have much experience with that to be honest,” Chief Executive Officer Soren Skou said in a Bloomberg TV interview.
“So we are saying we expect quite a strong first half of 2022, and then we expect what we call a normalization early in the second half,” Skou said.
The top shipping exec expects transpacific shipping rates to decline as COVID restrictions are lifted, leading to the easing of congestion at the US’ largest container ports, ones located at Los Angeles and Long Beach on the US west coast.
“We are trying to guide as best as we possibly can, not to be optimistic or pessimistic,” he said. “We do not have much visibility to what will happen when people return to work, when bottlenecks open up and a lot of the capacity tied up today in Los Angeles and Long Beach gets released — how is that going to work out. We’ll have to see.”
There’s growing consensus on Wall Street, especially with JP Morgan, as one of their analysts told clients days ago that global supply chain constraints have peaked. A leading indicator of this is major shipping rates which have slumped in recent months.
The exact timing of the normalization to the shipping industry is unknown, considering there’s no data of coming out of a virus pandemic. Though the world’s top shipping exec says it could happen as soon as this summer.
If peak congestion has already hit, this would suggest chip shortages could diminish later this year, thus increasing new vehicle production and possibly topping out used car prices.
February 9, 2022
Supply Chain Normalization?
World’s Top Shipping Exec Says Worst Supply-Chain Snarls Have Peaked
by Tyler DurdenWednesday, Feb 09, 2022 – 11:11 AM
AP Moller-Maersk suggests the climax of global supply-chains snarls has passed, and bottlenecks will alleviate in the second half of the year. There are emerging signs major transpacific shipping freight rates are at a critical inflection point.
“We are guiding in an environment where we are coming out of a pandemic, and we don’t have much experience with that to be honest,” Chief Executive Officer Soren Skou said in a Bloomberg TV interview.
“So we are saying we expect quite a strong first half of 2022, and then we expect what we call a normalization early in the second half,” Skou said.
The top shipping exec expects transpacific shipping rates to decline as COVID restrictions are lifted, leading to the easing of congestion at the US’ largest container ports, ones located at Los Angeles and Long Beach on the US west coast.
“We are trying to guide as best as we possibly can, not to be optimistic or pessimistic,” he said. “We do not have much visibility to what will happen when people return to work, when bottlenecks open up and a lot of the capacity tied up today in Los Angeles and Long Beach gets released — how is that going to work out. We’ll have to see.”
There’s growing consensus on Wall Street, especially with JP Morgan, as one of their analysts told clients days ago that global supply chain constraints have peaked. A leading indicator of this is major shipping rates which have slumped in recent months.
The exact timing of the normalization to the shipping industry is unknown, considering there’s no data of coming out of a virus pandemic. Though the world’s top shipping exec says it could happen as soon as this summer.
If peak congestion has already hit, this would suggest chip shortages could diminish later this year, thus increasing new vehicle production and possibly topping out used car prices.
February 4, 2022
Driver Pay Increases
Driver pay hikes continue to roll in
Midwest Carriers, CFI latest to raise pay
Todd MaidenThursday, February 3, 2022 2 minutes read
Listen to this article 0:00 / 3:40 BeyondWords
High demand and a lack of qualified drivers has pushed truckload carriers to raise pay substantially over the past year and a half. Wage increases have helped fleets maintain size through the pandemic, but few have been able to grow organically. Following a round of large pay increases in 2021, it appears the industry will continue to push pay rates higher to address a labor shortfall.
Two more fleets announced pay hikes this week.
Kaukauna, Wisconsin-based Midwest Carriers announced a 9% pay increase for over-the-road drivers. The pay bump takes average annual pay to a range of $86,395 to $92,250. Average annual pay for the top half of the company’s over-the-road drivers increased to $97,550.
“As a driver-focused trucking company, we know that taking care of our drivers is job number one,” said President Eric Van Handel. “This increase is our way of showing how much we value their hard work and dedication.”
The company also announced a 9% reduction in health insurance premiums for 2022.
Midwest Carriers operates a fleet of 166 trucks and 455 trailers, hauling temperature-controlled and dry freight.
TFI International (NYSE: TFII) affiliate CFI announced Wednesday it increased driver pay in its truckload and temperature-controlled units by two cents per mile. Drivers will also be eligible for incentive bonuses tied to safety, productivity and years of service.
The Joplin-Missouri-based company said it plans to take delivery of 770 new Kenworth tractors and 250 new trailers in 2022, moving its average tractor age to less than 2 years. It also plans to invest $3.75 million in additional fleet upgrades during the year to attract drivers to the company.
“We continue to invest in our people with modern, fuel-efficient equipment, including options and accessories most in demand by professional drivers supporting safe operations and driver comfort,” said CFI President Greg Orr.
CFI employs nearly 3,000 drivers for its fleet of more than 3,900 tractors and 10,000 trailers. The company also utilizes capacity from an owner-operator network of 700.
“We recognize our professional drivers as the ‘captain of their ship’ who pick up and deliver on time and safely, as promised to our customers,” Orr said. “As such, we are implementing driver pay increases that align pay across our services with an attractive compensation package.”
February 4, 2022
Driver Pay Increases
Driver pay hikes continue to roll in
Midwest Carriers, CFI latest to raise pay
Todd MaidenThursday, February 3, 2022 2 minutes read
Listen to this article 0:00 / 3:40 BeyondWords
High demand and a lack of qualified drivers has pushed truckload carriers to raise pay substantially over the past year and a half. Wage increases have helped fleets maintain size through the pandemic, but few have been able to grow organically. Following a round of large pay increases in 2021, it appears the industry will continue to push pay rates higher to address a labor shortfall.
Two more fleets announced pay hikes this week.
Kaukauna, Wisconsin-based Midwest Carriers announced a 9% pay increase for over-the-road drivers. The pay bump takes average annual pay to a range of $86,395 to $92,250. Average annual pay for the top half of the company’s over-the-road drivers increased to $97,550.
“As a driver-focused trucking company, we know that taking care of our drivers is job number one,” said President Eric Van Handel. “This increase is our way of showing how much we value their hard work and dedication.”
The company also announced a 9% reduction in health insurance premiums for 2022.
Midwest Carriers operates a fleet of 166 trucks and 455 trailers, hauling temperature-controlled and dry freight.
TFI International (NYSE: TFII) affiliate CFI announced Wednesday it increased driver pay in its truckload and temperature-controlled units by two cents per mile. Drivers will also be eligible for incentive bonuses tied to safety, productivity and years of service.
The Joplin-Missouri-based company said it plans to take delivery of 770 new Kenworth tractors and 250 new trailers in 2022, moving its average tractor age to less than 2 years. It also plans to invest $3.75 million in additional fleet upgrades during the year to attract drivers to the company.
“We continue to invest in our people with modern, fuel-efficient equipment, including options and accessories most in demand by professional drivers supporting safe operations and driver comfort,” said CFI President Greg Orr.
CFI employs nearly 3,000 drivers for its fleet of more than 3,900 tractors and 10,000 trailers. The company also utilizes capacity from an owner-operator network of 700.
“We recognize our professional drivers as the ‘captain of their ship’ who pick up and deliver on time and safely, as promised to our customers,” Orr said. “As such, we are implementing driver pay increases that align pay across our services with an attractive compensation package.”
January 27, 2022
Business Travel Still Lagging
Consumers Are “Going Everywhere…Except The Office”, AmEx CEO Says This Week
by Tyler DurdenThursday, Jan 27, 2022 – 05:45 AM
According to American Express, spending is still almost “everywhere you want to be”. Except in the office and for business travel, that is…
The company’s Chief Executive Officer Stephen Squeri said this week that “corporate travel will never be the same” after the pandemic, Bloomberg reported. This is despite the fact that U.S. consumers “staged a robust comeback” in the last quarter of 2021, he said.
In fact, spending on travel and entertainment has actually passed pre-Covid levels. But business spending is still about 33% of what it once was, the report says.
On Tuesday, the AmEx chief said: “People are skeptical about business travel because of all the remote workforce.”
He continued: “Business travel is going to be completely different. And, I think, as you have more people in more remote locations, they may need to get together three, four, maybe five times a year to come to headquarters.”
Squeri, talking about how the climate for work has changed since employees abandoned their offices in 2020, concluded about Covid: “Consumers are learning to live with it — we’re over it. They’re going everywhere right now except the office.”
https://www.zerohedge.com/markets/consumers-are-going-everywhereexcept-office-amex-ceo-says-week
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