$200B of tariffs imposed on Chinese imports today; the 4PL era is here; China cancels further trade talks; Germany’s maritime fleet shrinks by 1/3; air cargo not yet feeling tariff pain; oil rallies.
In today’s pickup, CEOs on analysts calls don’t see a peak and see better driver retention for their companies. Also: OPEC output and a change in Chinese scrap policy.
Oil production faces volatile times, as multiple OPEC countries witness geopolitical problems and unstable governments, leading to the possibility of yet another rise in fuel prices.
The FMCSA and ATA talk regulations at SMC3; Cummins has to pay tariffs to import its own engines; Canadian National and Canadian Pacific investing in Port of Vancouver; why protectionist rhetoric is roiling the markets; key takeaways from OPEC’s Vienna meeting.
Cutbacks dating back to 2015, strong economic growth and problems in a lot of producing countries have brought the oil market to this point.
The U.S. trade tariffs on Chinese exports is due to come into force on July 6, with U.S. businesses looking for different manufacturing options in South Asia to adapt their supply chains around the new reality.
U.S. shale oil production is fast-growing, but pipeline bottlenecks at the Permian basin could mean that it can’t completely fill the gap being created by the drop in Venezuelan oil production.
“We’re still in a little bit of wait and see mode in terms of detail, but I think the outcome is pretty positive in my mind,” said Clive McDonnell, the Singapore-based head of emerging market equity strategy at Standard Chartered Bank.
Mexico, Canada, and the EU announce retaliatory tariffs; Dow Transports still above 200 day average; the US asks OPEC for a production hike; DHL remains largest air freight forwarder; containership loses 86 boxes in storm off Australia; how China beats US steel tariffs.
Oil, which helped drive a rally for stocks Wednesday, began pulling back ahead of U.S. supply data.
TMC offers a free dashboard for unscheduled maintenance data using VMRS codes; Omnitracs gets into software; OPEC meets with shale producers in Houston; the Port of Virginia begins using truck reservations to manage traffic.
The news out of the Middle East on Thursday that OPEC would continue recent production cuts in an effort to boost oil prices may have upset some oil traders, but it shouldn’t have much effect on diesel fuel prices at the pumps, according to experts.
A boom in U.S. oil production is not only helping keep fuel prices low, but it is driving more trucking business. The addition of a 2-rig, 8-well design could drive between “5,850 to 8,905 truckloads of equipment, drilling fluids, sand, water, etc.”
