Today’s Pickup: Federal Reserve’s ‘patient’ approach leaves experts guessing

Good day,

The Federal Reserve is being “patient” with rate adjustments, spurring a range of theories from market experts. While The New York Times is reporting a possible interest rate cut in 2019 amid a two-day central bank policy meeting, Bloomberg suggests one or two rate increases between this and next year, citing its survey of economists. In the meantime, central bank Chairman Jerome Powell’s commitment to diligence in Fed decision-making is inspiring confidence for many, resulting in stocks soaring more than 15 percent since he made the original statement on patience, according to the Times.

Did you know?

The U.S. Supreme Court, without comment, chose this week to not review a decision received in September 2018 by the United States Court of Appeals for the Ninth Circuit, which covers the western-most U.S. The case was brought by the California Trucking Association (CTA) against Julie Su, the former Labor Commissioner of the California Department of Industrial Relations, who is now the Secretary of Labor in the new administration of Governor Gavin Newsom.

Quotable:

“Asia volume weakness which we experienced during peak season deepened post-Chinese New Year.”

–FedEx CFO Alan Graf

In other news:

How Iran fuel oil exports beat U.S. sanctions in tanker odyssey to Asia

At least two tankers have ferried Iranian fuel oil to Asia in recent months despite U.S. sanctions against such shipments. (Reuters)

Aldo optimizes shipping from store with AI

Footwear retailer Aldo Group realizes the best ship-from-store options do not always take the fewest steps. (CSA)

Thomas Foods International and Drakes Supermarket join IBM Food Trust blockchain program

The largest family-owned meat processor in Australia, along with the largest independent grocery retailer, has entered the blockchain food ecosystem conversation. (Supply Chain Digital)

Ship-to-ship transfers obscure Venezuelan oil trades

Tankers seen transferring Venezuelan crude in the Mediterranean as the embattled state struggles to keep up oil exports in the face of U.S. sanctions. (Lloyd’s List)

Labor Department argues there’s no evidence of driver shortage

Any perceived shortage is isolated to long-haul truckload fleets, argues the study from BLS. (CCJ)

Final thoughts:

Having a consistent relationship with your carriers gives you and your vendor a better functioning, long-term relationship with more stable costs. There are hidden costs in high vendor turnover situations, just like with employee turnover. Freight markets like the one seen in 2017-18 are more easily managed when the relationship is balanced between carrier and shipper. Inevitably the majority will not follow this advice, but those that do will enjoy consistent returns.

Hammer down everyone!