Amazon proves profit can be made in these uncertain economic times
Good morning! Happy Tuesday and make sure to celebrate. 🌮
Pre-market trading on Friday created an impressive 12% jump in Amazon’s shares as investors celebrated the company’s second-quarter sales report. The report exceeded analysts’ forecasts, showing a 17% growth in the current period, regardless of cutbacks on company expenses. Amazon has slowed down its hiring rate for the first time since 2019 and has focused on calming inflationary pressures such as transportation costs for deliveries.
Check out today’s featured article from SupplyChainBrain to read about Amazon’s second-quarter sales “come-back” and what the mega-company is doing to generate sales amidst consumer economic fears and hesitation. ☕️
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Featured Article:
Amazon Shows It Can Generate Sales While Slowing Spending | SupplyChainBrain
“Amazon.com Inc. showed its e-commerce and cloud-computing businesses can churn out revenue even as consumers worry about inflation and the company gets serious about curtailing expenses.”
Water Cooler Topics
🥤 Winston-Salem, North Carolina-based Pepsi Bottling Ventures has announced plans to expand production to help meet the demand for its products. Brands such as Aquafina, Lipton Tea, and Nature’s Twist will benefit from the expansion, as the plans include manufacturing bottles made from 100% recycled materials. Pepsi Bottling Ventures is a privately owned company that bottles PepsiCo products and the new bottling line is expected to be fully operational by the end of 2024. With millions of cases of beverages expected to be produced per year, this announcement has been met with excitement by the food and beverage industry.
🚢 East Coast ports are starting to see a wild influx of traffic as the West Coast continues to navigate an excess of supply chain hiccups. The Port Authority of New York and New Jersey has released data showing that an average of 22 container ships are anchoring off the coast of the NYC metropolitan area per day, waiting to make port. The Port Authority reported an 11.5% growth of imports in the first five months of 2022 and it is estimated that at least 6.5% of that amount was originally intended to be shipped to West Coast ports, particularly in California. The Ports of Los Angeles and Long Beach have seen massive supply chain issues due to pandemic-related shutdowns and restrictions, causing many shippers to diversify their shipping routes.
🚛 With the traditional owner-operator business model threatened, the trucking industry is looking to get creative moving forward. California’s Assembly Bill 5 has passed, restricting businesses from classifying workers as “independent contractors if those workers are in the same business. Plenty of motor carriers are exploring their options, some suggesting owner-operators relocate from California or gain their own authority to operate. The regulatory, safety and insurance obligations required to operate as a motor carrier are extensive, and many owner-operators are reluctant to pivot in that direction.
Spot market rate decreases may indicate your fleet should revisit accounting practices
Carriers should be prepared to reevaluate profitability on every lane their trucks take amid dropping spot rates. Spot market rates have dropped approximately 14% since January and the era of Covid where consumers relied on physical goods is falling to the wayside.
From an accounting perspective, load rates need to be tied to the activities that move them specifically, not just historical data anymore. Resource allocation can be the key to profitability during a falling spot rate market.
Average price of a gallon of gasoline drops, again
For 48 days in a row, the average price for a gallon of gasoline has dropped - but it’s not all rainbows and butterflies. As of Monday, August 1, 2022, the national average is $4.212 a gallon, a stark difference from the record $5.016 in June. The decline has offered some relief at the pump for consumers.
California, Hawaii, Alaska, Oregon, Nevada, and Washington continue to have the highest cost per gallon of gasoline while Texas, South Carolina, Georgia, Mississippi, Tennessee, and Arkansas boast the lowest.
Sustainability ♻️
Visibility of Scope 3 Emissions Is Lacking. It’s Time to Fix That | SupplyChainBrain
“Companies seeking to decarbonize their supply chains will never reach that goal without the help of suppliers over which they assert no direct control.”
Supply Chain Comment: The State of Global Energy 2022 - SC Digest
“I looked forward every year to the BP Statistical Review of World Energy, released by the company each year in late June.”
Driving decarbonization: Accelerating zero-emission freight transport | McKinsey
“Two mutually reinforcing enablers—a standardized book-and-claim framework and a green supply-chain coalition—can accelerate decarbonization in the transport sector.”
Connecticut takes bold measures against big truck emissions - TheTrucker
“Connecticut officials are heralding a new law aimed at reducing greenhouse gasses.”
Buttigieg Praises West’s Green Energy Potential | Transport Topics
“Motorists taking advantage of electric vehicle tax breaks contained in a $739 billion Senate bill introduced this week will be well-served by existing and planned infrastructure in the West, Transportation Secretary Pete Buttigieg said in Coeur d’Alene, Idaho, on July 29.”
Network Association 🤝
LaserShip and OnTrac launch transcontinental delivery ahead of peak season | Supply Chain Dive
“LaserShip and OnTrac have launched a transcontinental service delivering packages between their respective coverage areas on the East Coast and West Coast, an operational milestone in the ongoing merger of the two regional carriers.”
Driver Issues 🚛
“In recent times, shortages of goods have caused widespread supply chain issues. Labor shortages have also been troublesome for production and the economy. In particular, the shortage of workers able to transport goods has been pinpointed as a driver of supply chain chaos.”
American Politics 🇺🇸
FTC Bolsters Its Labor Relations Role | Material Handling and Logistics
“FTC joins with the NLRB to target employers said to abuse gig workers.”
Dems Go After a Main Street Necessity, Not a Wall Street Loophole - RealClearPolicy
“Small business owners have always had it tough — making payroll, dealing with customers, and of course, writing a large check to Uncle Sam at the end of the year — but this year inflation is making things particularly hard.”
Bad Piled on Bad | City Journal
“Less than a month after the Supreme Court’s decision in West Virginia v. EPA, the White House is reportedly contemplating declaration of a ‘national climate emergency.’”
Marketing 🤳
Procurement 'can end Scope 3 supply chain greenwashing' | Supply Chain Digital
“Scope 3 supply chain emissions are derailing net zero plans, and it is procurement teams that can best protect firms against accusations of greenwashing.”
Hours of Services ⏰
Hours of service flexibility survives court challenge - Land Line
“Truckers get to keep the flexibility won for them in fall 2020 codified in the most recent revision to the hours of service regulations.”
Company Culture 🎉
How the world's biggest four-day workweek trial run changed people's lives - CNN
“Workers are fed up.”
Leadership 🏆
Pop Quiz: Supply Chain Educators Answer 6 Pressing Questions - Inbound Logistics
“For much of the decade prior to the pandemic, the number of students in supply chain programs couldn’t match industry’s need for supply chain professionals.”
CEO says ArcBest ‘firing on all cylinders’ | FleetOwner
“July tonnage at the FleetOwner For-Hire 500 carrier is running 6% higher than last year.”
Trucking CEOs expect higher prices, potential disruptions in second half of the year - CNBC
“Trucking CEOs see elevated prices continuing in the second half of 2022.”
Electric Vehicles 🔋
A looming graphite shortage could snarl the EV battery supply chain | Supply Chain Dive
“Lithium constraints have dominated headlines, but experts say a lack of graphite could soon create supply headaches for automakers.”
Andy Jassy and RJ Scaringe discuss Rivan electric vehicles | Amazon News
“Andy Jassy and RJ Scaringe share their perspectives on building a more sustainable future as hundreds of Rivian vans begin delivering orders to Amazon customers.”
Ports 🚢
Oakland’s June cargo volume down 1.5% | DC Velocity
“Supply chain issues continue to dampen total cargo volume growth, port officials say.”
Sales 🧾
Largest Container Ship in the World Delivered to ABS Class - Marine Link
“The EVER ALOT, the largest container ship in the world, with just over 24,000 teu capacity, has been delivered to ABS class.”
Manufacturing ⚙️
California is King of Manufacturing - Los Angeles Business Journal
“California leads the nation in terms of manufacturing jobs and gross domestic product, according to a study released this month by California Manufacturing Technology Consulting.”
Trade & Border Issues 🗺
First Grain Ship Departs Odesa - G Captain
“The first ship loaded with Ukrainian grain has departed the port of Odesa today as part of a deal to ease the global food crisis caused by the Russian invasion.”
Accenture supply chain experts' analysis of Ukraine war | Supply Chain Digital
“Michael Brueckner, Eloi Decottignies & Kris Timmermans of Accenture offer analysis and advice on building resilient value chains in face of war in Ukraine.”
Federal Maritime Commission To Hire Investigators For Foreign Carrier Crack-Down - G Captain
“As part of the new Shipping Reform Act the Federal Maritime Commission (FMC) announced it’s reorganizing its enforcement structure and plans to hire more investigators to crack down on ports and foreign-owned shipping companies who are breaking the law.”
Owner-Operators 🚚
Companies prep ahead of possible AB5 rollout - Land Line
“Estimates have the future of approximately 70,000 California truck drivers in limbo with implementation and enforcement of AB5 looming.”
Industry Forecast 📊
Congestion at ports is leading to unusual action in ocean spot prices - CNBC
“A dynamic mix of consumer demand, inflation and traditional peak ocean shipping season that begins in August will result in volatility in ocean spot prices.”
Quote of the Day:
“Would you like me to give you a formula for success? It’s quite simple, really: Double your rate of failure. You are thinking of failure as the enemy of success. But it isn’t at all. You can be discouraged by failure or you can learn from it, so go ahead and make mistakes. Make all you can. Because remember that’s where you will find success.”
— Thomas J. Watson, 2nd President of IBM, political figure, and philanthropist
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for July 31, 2025, from iLevel Logistics Inc.