M. Holland’s latest logistics outlook examines current challenges and industry trends that are impacting shipping, trucking and rail. Although the plastics industry is faring a little better than earlier this year, M. Holland’s experts predict disruption to continue well into 2023. Click here to read the full outlook for the remainder of 2022.
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Oil prices surged 4% Tuesday on news of tighter supply in the U.S. and possibly Saudi Arabia.
Crude prices continued rising Wednesday morning on fears that OPEC could cut production, with WTI up 0.4% at $94.18/bbl and Brent up 0.4% at $100.60/bbl. U.S. natural gas futures were up 0.9% at $9.28/MMBtu.
The American Petroleum Institute reported a larger-than-expected crude draw of 5.63 million barrels last week, putting upward pressure on prices. U.S. government data will be released today.
Freeport LNG pushed back the timeline for partially resuming operations at its fire-damaged Texas export facility from October to November.
With two-thirds of the continent in a state of alert or warning, Europe appears to be in its worst drought in at least 500 years, causing widespread disruption to inland shipping, electricity generation and crop yields.
Global airfreight rates are down nearly 50% from last year’s peak, according to freight booking platform Freightos.
In the highly squeezed U.S. warehouse market, vacancy rates have dipped into the low single digits in some areas, turning more companies to ad hoc arrangements that include storing goods in parking lots and on truck trailers as they cope with excess inventories.
U.S. imports from China totaled $271.7 billion in the first half of the year, nearly 19% higher than a year ago.
Emirati port operator DP World posted a 60% gain in first-half revenue but expects shipping growth to slow later this year.
Directors at two of the Federal Reserve’s 12 regional branches — St. Louis and Minneapolis — voted for a full 100 basis-point interest-rate hike at the central bank’s last meeting in July, signaling internal pressure for a bigger move than policy makers delivered.
Some 20 million American households — about 1 in 6 homes — are behind on their energy bills, the largest share on record.
Citigroup predicts British inflation could rise to more than 18% next year, a 50-year high due primarily to soaring energy prices.
Argentina plans to launch new measures in the coming days aimed at restricting imports and preserving the central bank’s foreign currency reserves. Latin America’s third-largest economy is just one of many with dwindling foreign currency reserves that could lead to default.
Births in China are poised to hit record lows this year as fallout from the pandemic raises costs for education and child-rearing, posing long-term problems for the nation’s economic growth.