Supply Chain Industry Insights
October 2023
Welcome to the PGL Industry Insights report for October, 2023.
The UAW strike, now well over a month old not only continues, but is expanding as the Detroit big 3 automakers make adjustments in pursuit of a tentative agreement. According to economic analysts, Anderson Economic Group, projected losses from the strike have topped 7.5 billion dollars and the longer it goes on, the more suppliers may struggle to resume operation once the strike ends.
Container import volumes are showing some positive signs with steady increases since the February low and positive numbers relative to the pre-Covid conditions of 2019. As we’ve noted before, 2019 is not a great benchmark for defining “normal”, as it was not a great year for the supply chain industries, but as we search for some indication of what a post-panedmic reality looks like, current conditions do look like a good sign for international ocean freight. Further bolstering this cautious optimism, despite developments in near-shoring manufacturing to places like Mexico, Imports from China are showing more signs of recovery.
DHL Express has announced a rate increase of 5.9% on U.S. originating shipments to take effect on January 1, 2024. This rate increase is on pace with FedEx and UPS rate increases, though it’s worth noting that this year’s price bump is less significant than last year. If you’ve been considering engaging with a DHL Express Authorized Reseller like PGL, now is the time to start that conversation as purchasing power is extended to customers offering attractive discounts for international express service.
Diesel prices have continued to fall in October, but futures and uncertainty surrounding conflict in the middle east are driving futures higher, so we can expect this recent break in diesel pricing to reverse itself sooner rather than later.
In more news affecting North American Trucking, Q3 earnings are projected to be higher for carriers in the wake of the recent closure of Yellow Freight and other carriers. It appears that the the loss of some big players in the space is allowing the surviving LTL carriers to benefit.
It’s best to approach these positive indicators with cautious optimism, but good news is always more fun to report. As always, PGL will continue doing what we do best, delivering peace of mind, 24/7/365.
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