[FFW News] Government shutdown woes

Welcome back to Freight Weekly

Will’s Note

“Going to The F3 Future of Freight Festival in Chattanooga?”

Welcome back to Freight Weekly. Will Ward here. I’m the guy behind this newsletter, the FFS website, Load Board, the whole shebang. Till now, I’ve fancied myself as the “behind the scenes” guy, but that ends now. From now on, I will be writing a short note at the beginning of each newsletter we send. It could be my thoughts on something going on in our industry, a freight meme from the dark corners of the internet, or a shameless pitch :)

Today, I want to let you know that I will be attending the F3 Future of Freight Festival in Chattanooga, TN this November 7-9 put on by the fine people a Freightewaves. If you are going to the conference and in the sound of my voice, I would love to meet up with you! (Drinks on Boxy.) Just reply to this email and I will figure out the details. Now on with the show… -Will

A government shutdown could be headed our way. Prepared?

Need more news and freight industry intelligence? Check out the Freight Forward newsletter exclusively on LinkedIn. Written and compiled by veteran supply chain writer and researcher Cathy Morrow Roberson, Freight Forward is an authority. Boxy and I even read it. Be sure to subscribe and enjoy her work.

📈 BY THE NUMBERS: Important numbers impacting freight and logistics

⛽ Diesel: $4.586 gal (⬇️from $4.633 last week) - Source: EIA

✈️ Air Cargo Index (Aug ‘23): 157.9 (⬇️from $166.2 in July ‘23) - Source: FRED

🚢 Global Container Index: $1,251.08 - Source: Freightos

Logistics News for Sept. 27, 2023

⚖️Federal lawmakers push for railway safety proposal

Lawmakers in both chambers of Congress are urging their colleagues to adopt a broad railway safety proposal that’s currently mired in the Senate. The Railway Safety Act has bipartisan support and would overhaul safety policies governing freight rail operations across the United States. Much of the justification for the bill stems from the Norfolk Southern derailment in East Palestine, Ohio, from earlier this year, including several other derailments that have unfortunately become commonplace for the news media to report on. Read more here…

🪫Government shutdown will impact supply chains, economy

Also, in Congress news, the GOP-controlled House of Representatives has set the U.S. federal government on a path toward a government shutdown. U.S. House Speaker Kevin McCarthy, R-Calif., is in a standoff with hard-right members of his caucus who refuse to support a budget deal that would at least temporarily fund the government while the finer details of a full appropriations package for the 2024 fiscal year is ironed out. At the time of this newsletter, Senate leadership has reached a deal, but the roadblock is the House GOP. If the government is forced to enter into a partial or full shutdown, essential services impacting the functions of supply chains would be impacted. For example, a government shutdown would drastically impact national security supply chains. Or, on the private sector side of things, the uncertainty in the bonds market brought on by the private sector would lead the U.S. economy back to a recession or to the conditions of a pre-recession drop in economic performance. Read 1, Read 2

📦Parcel carriers announce seasonal hiring targets for peak season

With peak shipping season right around the corner, parcel carriers announced plans to hire seasonal employees to assist in the surge of volumes. UPS said that they would hire 100,000. Amazon said they have the intention to bring on about 250,000. FedEx also has plans to bring on thousands. The U.S. Postal Service is only hiring around 10,000 seasonal employees adding that they covered peak season labor needs during hiring drives earlier in the year. Read this report…

⏫Port of LA sees a climb in container volumes in August

The Port of Los Angeles saw container volumes climb in August. The sister Port of Long Beach sagged in comparison. Year-over-year volumes are still down at both of the San Pedro Bay container ports. Cargo has shifted back to trade lanes that are more ‘traditional.’ Ports on the Gulf of Mexico and on the East Coast have seen drops in volumes. For example, the Port of Savannah saw volumes fall in August by 28 percent. Port Houston fell 20 percent. Read about LA…

📰Read these stories that are impacting trade…📰

• “FedEx gains volume from UPS labor talks, Yellow bankruptcy in Q1” - Supply Chain Dive

• “Amazon FTC lawsuit assigned to Reagan-appointed judge” - Reuters

• “New York Steps Up as Unlikely Diesel Supplier” - Bloomberg via GCaptain

• “Survey: Despite Economic Challenges, Holiday Spending Looks Strong” - TV Technology

• “Looming government shutdown sparks financial panic in Congress” - Axios

Compiled by Michael McGrady – news analyst and writer.

Do you have a tip? Feedback? Email him – [email protected]