The Weekly Freight Report for September 22nd, 2022
The Top Headlines in Freight, Transportation, & Logistics from FLS Transport
This week’s report covers confusion around California’s AB5 law enforcement, harvesting headaches because of crop yield, and 13 items that will be harder to find this fall. The report also covers the August tonnage trends and data as well as reshoring benefits and costs.
- BAFFLED BY AB5 | 70,000 truck drivers are seeking legal clarity on California’s AB5 law.
- HARVEST HEADACHES | Lower than expected crop yields drive prices skyward.
- SCARY SCARCITY | Halloween candy makes the list of 13 items that will be hard to find this fall.
- TONNAGE TRENDS | Truck tonnage sees another significant increase in August.
- RESHORING BENEFITS | What are the costs and benefits of reshoring your supply chain?
BAFFLED BY AB5 | 70,000 truck drivers are seeking legal clarity on California’s AB5 law.
Since the lifting of the AB5 injunction, many trucking organizations have been in a state of confusion.
The Owner-Operator Independent Driver Association (OOIDA) is seeking clarification from California’s governor on what AB5 means for approximately 70,000 owner-operators.
How will the law be interpreted and enforced? What changes do owner-operators need to make to keep working in California?
The California Trucking Association (CTA) mentioned that this could severely disrupt supply chains and transportation routes from some of the largest ports in the country.
Learn more about the questions and concerns surrounding AB5 here.
HARVEST HEADACHES | Lower than expected crop yields drive prices skyward.
Everything from too much rain to too much heat impacted crop yields this summer across the globe, but crops were hit especially hard here in the US.
For example, the USDA lowered its nationwide corn-production yield prediction by 3%, or 13.9 billion bushels.
Futures prices for corn, wheat, and soybeans are up worldwide, and these prices are hitting 77 low- and middle-income countries the hardest.
Click here for more data on other impacted crops, prices, and the causes.
SCARY SCARCITY | Halloween candy makes the list of 13 items that will be hard to find this fall.
What are the top 13 items that will either be in short supply or have higher prices this fall?
As Halloween approaches, candy, beer, and popcorn will be scarce for various reasons, primarily due to raw material shortages.
Condiments such as ketchup, Sriracha, and mustard have also made the shortage list, along with peaches and champagne.
Check out the complete list and the reasons for the shortages here.
TONNAGE TRENDS | Truck tonnage sees another significant increase in August.
Truck Tonnage saw another increase in August by 7.4% Year-Over-Year, the largest jump since 2018.
Even with changing consumer demand and economic changes, the freight industry will experience growth in consumer spending and manufacturing.
Get the rest of the data, comparisons, and projections here.
RESHORING BENEFITS | What are the costs and benefits of reshoring your supply chain?
Companies that moved their operations overseas to save on operational costs are considering the benefits of bringing business back to the US.
They are considering reshoring to shorten supply chains, remove the risk of reliance on foreign suppliers, and the environmental benefits of bringing operations closer to home.
Domestic supply chains are more transparent, safer, and cleaner.
If you are a manufacturer and considering reshoring, check out the Reshoring Initiative’s Total Cost Calculator to analyze the relevant costs and risks associated with keeping operations where they are or bringing them back to the US.
Learn more about reshoring costs and the calculator here.
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