Oil prices hit a two-week high Tuesday after the American Petroleum Institute reported its first crude inventory draw in six weeks, fueling speculation that the White House will soon tap into emergency crude reserves. Futures were lower in late morning trading, with WTI down 1.9% at $82.52/bbl and Brent down 1.2% at $83.79/bbl. U.S. natural gas was 1.2% lower at $4.92/MMBtu.
The national average price per gallon of diesel rose slightly last week to $3.73 per gallon, the highest weekly average since December 2014. Rebounding international air travel and higher oil demand in Asia could push crude prices past $120/bbl in the first half of 2022, Bank of America predicts.
The White House and the U.S. Army Corps of Engineers are reportedly looking into replacing Enbridge’s major pipeline that carries crude from Canada to the U.S. through the Great Lakes. The news comes after concerns over initial plans to shut down the pipeline completely.
Paint and coatings makers PPG and Sherwin-Williams said continuing resin supply constraints following 2021 weather events have impacted third-quarter results.
Spot prices for recycled PET have nearly doubled this year in Europe, while the price for food-grade recycled PET in the U.S. now tops $1 a pound.
PepsiCo and Unilever cited a need for more chemical recycling of hard-to-recycle plastics to help them achieve their sustainability goals.
Our most recent list of force majeure and allocation announcements from suppliers is here.
More than 70 container ships remain stuck waiting to dock at Southern California ports, with wait times at the Port of Los Angeles averaging two weeks since the beginning of October.
The number of imported containers passing through major U.S. ports in October hit 2.19 million TEUs, down 1.2% from last year but 2.3% higher than September.
Shippers are having an increasingly difficult time finding warehouse and distribution space given the tightest market conditions in years, with vacancy rates hovering near historic lows and expected to thin even more the rest of 2021.
Air cargo demand in October was 3% higher than in October 2019, while rates are 155% higher.
Common medical treatments including insulin, supplements, Adderall and oxycodone are running low nationwide due to supply chain disruptions, with the FDA currently listing 112 drug shortages on its website.
U.S. retail sales of new vehicles are estimated to have fallen 17.4% year over year in October to just 943,500 units due to continued impacts of the global chip shortage.
Container shortages, factory shutdowns, and increasing labor and transportation costs are hampering apparel production and putting used clothing retailers back on the map, with shares of several of the largest secondhand dealers rising by double digits in recent trading. U.S. apparel imports from China rose 25.2% in September, while imports from Vietnam fell 4.6%.
Columbia Sportswear is reporting doubled transit times of up to six weeks for its U.S. imports.
Out-of-stock messages to online customers have risen 32% since June, led by apparel, sporting goods, baby products and electronics.
Stopgap measures in response to supply and shipping disruptions are being adopted permanently by many large firms, including consumer-goods suppliers trimming product lines and manufacturers resetting assembly lines to accommodate parts shortages.
Farm equipment dealers are bracing for delayed deliveries from John Deere, the nation’s leading supplier, due to a 10,000-worker strike now stretching into its third week.
UPS is responding to job applicants in as little as 30 minutes, down from an average response time of two weeks before the pandemic as labor shortages continue.
Unemployment in the U.S. transportation sector fell to 5.1% in October, down 3.8 percentage points from the same time last year.
Evergreen Marine’s container ship order book increased by two to 78 vessels, with a projected capacity addition of 24,000 containers per ship.
For a partial list of automotive disruptions caused by semiconductor and component shortages, click here.
The U.S. reported 79,829 new COVID-19 infections and 1,662 virus deaths Tuesday.
New research from Texas shows unvaccinated people are 20 times more likely to die from COVID-19 than those vaccinated.
Colorado has opened COVID-19 booster shots to its entire adult population amid a surge in infections that has pushed state hospitals to ration care.
California’s COVID-19 case rate is now above that of Texas and nearly double Florida’s, a result health experts attribute to vaccinations being administered earlier in California and therefore waning earlier. Hospitalizations in some regions of the state are up more than 20% the past several weeks.
Older U.S. apartment buildings with low-income tenants have seen larger rent spikes than higher-end properties since March, a reversal from trends earlier in the pandemic as people begin returning to cities and more densely populated areas.
Airlines are adding flights following the lifting of restrictions on nonessential travel.
American Airlines is offering to pay employees three times their normal salaries as well as $1,000 bonuses to work during the holiday season, a bid to avoid the critical staffing shortages that led to thousands of recent flight cancellations.
Amazon-backed electric vehicle maker Rivian went public yesterday at a valuation of more than $10.5 billion, topping $78 per share as preorders rise above 55,000 vehicles in the U.S. and Canada.
Ford sold 14,062 electric vehicles in October, three times the number of electric vehicles sold from a year earlier.
Confidence among Japanese manufacturers fell to a seven-month low in November, the third straight month of declines due to ongoing supply shortages. New data shows the nation’s economic output fell 2.1% in September.
In October, China’s producer price index rose a record 13.5% due to higher energy costs, the second consecutive month of double-digit inflation.
The possibility that developer Evergrande will not be able to meet interest payments today has added to fears of a liquidity crisis in the Chinese property sector.
Over 1 billion people will be at risk of extreme heat and humidity stress if global temperatures rise by an average of 2°C, researchers at the COP26 climate summit in Glasgow say. Global water shortages are set to exacerbate the problem:
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