Recession fears grow as the Fed hikes interest rates 75 basis points
subscribe to the daily
-
subscribe to the daily -
Good morning. Happy Friday! Do you have any weekend plans?
The Federal Reserve made good on their warnings - they raised interest rates by 75 basis points this week, making it the largest increase on record since 1994. Chair Jerome Powell is warning that another interest rate hike could occur in the near future, as the Fed desperately tries to fight back against inflationary catastrophe.
Check out today’s featured article from TT News for an explanation of why the Federal Reserve raised the rates and what it could mean for the transportation industry and the American economy as a whole. ☕️
Good Morning Reaction GIF By Satisfied Customer via GIPHY
Featured Article:
Fed Hikes Rates 75 Basis Points, Intensifying Inflation Fight | Transport Topics (ttnews.com)
“The Federal Reserve raised interest rates by 75 basis points — the biggest increase since 1994 — and Chair Jerome Powell signaled another big move next month, intensifying a fight to contain rampant inflation.”
Water Cooler Topics
🌴 California is usually the first to try things out and Amazon drones won’t be any different. The mega-company is launching its first-generation U.S. Prime Air drone to make deliveries in Lockeford, California - a community in San Joaquin County - later this year. Packages weighing up to five pounds will be delivered in less than an hour to customers via drone, hovering above their backyard and dropping the package, “at a safe height.” Hopefully, you won’t be ordering any fine china in Lockeford this Fall!
🤜🤛 As far as diversity stands, larger companies tend to have a foothold on minority hiring in contrast to their smaller competitors. A Gartner Inc. survey in partnership with the Association for Supply Chain Management (ASCM) found that publicly held organizations generally have a more diverse racial and ethnic workforce among all levels of management. ASCM CEO Abe Eshkenazi says that by analyzing the study, it seems that companies incorporating DEI initiatives into their progress will “fare better” in the years to come.
🛢 The largest oil refineries are facing backlash from the Biden Administration as they report a combined $10 billion in profits this quarter, regardless of refineries being shut down. With the national average now $5 for a gallon of gasoline, Americans are struggling and the Biden administration has placed the blame on both Russia and oil refineries for “taking advantage” of the situation.
There is a pay and contentment gap between men and women in supply chain sectors
Grant Thornton reached out to 2,800 American women who participate in the workforce for its The Women in Business 2022 report. The report found that less than half (49%) of women feel like they are being fairly compensated for their work. In contrast, 62% of men feel they are fairly compensated.
30% of women report that their lifestyle needs are met by their pay, while 56% of men feel the same.
Spot freight rates expected to continue climbing into 2023 due to port congestion
All around the globe, port congestion riddled the supply chain with stressors. Starting with the Covid-19 outbreak, furloughing workers, and restricting access and trade, the ports have dealt with issues surrounding an excess of freight passing through their waters.
Particularly in the United States and China, ports have struggled to manage the flow, and spot freight rates have risen regardless of vessel capacities increasing.
Business Strategy 💡
Say Yes to the YMS - Inbound Logistics
“Companies sometimes overlook how important the yard is to their success.”
FedEx set to deliver greater focus on financials after boardroom shuffle - The Loadstar
“Barely two weeks after founder Fred Smith handed over the reins of FedEx to his anointed successor, Raj Subramaniam, the integrator has revealed a major change in its boardroom and a greater focus on financials.”
Customer Relations 🤝
“Service organizations, hard hit by the skills shortage, are looking to technology to mitigate the impact of a constantly dwindling talent pool.”
Unions 🪧
Railroad, Union Labor Fight Moves Toward Emergency Intervention | SupplyChainBrain
“Major railroads, including Union Pacific Corp. and BNSF Railway Co., and their unions remain at an impasse after a government board ended efforts to mediate a settlement, a move which will likely force President Joe Biden’s administration to intervene and prevent a strike that could cripple an already-strained U.S. supply chain.”
Ports 🚢
California ports build on rail capabilities, but there are fears of new congestion - The Loadstar
“The ports of Los Angeles and Long Beach are moving to beef up their rail capabilities, with US imports expected to surge in the coming months.”
Industry Forecast 📊
Trust will be an issue for supply chains of future - UST | Supply Chain Digital
“In April 2022, Procurement Magazine, Supply Chain Digital, and Bizclik Media Group returned to London's Tobacco Dock to host our second Procurement & Supply Chain LIVE.”
Trucking industry at a crossroads in 2022 | Commercial Carrier Journal (ccjdigital.com)
“The trucking industry is today in the public eye far more than it has been in recent years.”
Can Strong Job Growth in Trucking Continue? - Fleet Management - Trucking Info
“Only three times in the 32-plus years of available data has trucking seen a larger two-month surge in trucking employment. And at least one of those (May to June 1994) resulted from the resolution of a huge Teamsters strike.”
Global logistics news round-up for road, rail and sea | Supply Chain Digital
“FedEx Express unveils new route between Asia & Europe.”
Freight market pendulum gains momentum - TheTrucker.com
“ACT Research has released the latest installment of the ACT Freight Forecast, U.S. Rate, and Volume OUTLOOK report.”
Owner-Operators 🚛
One operator's success resisting rate-cutting efforts | Overdrive (overdriveonline.com)
“While it bears noting that in terms of market fundamentals we're nowhere near the dire nature of that calamity now more than two years gone, the "reverse gouging" notion did rear its head in conversation with longtime operator Scott Carlson.”
Electric Vehicles 🔋
Federal Highway Administration Proposes National EV Charging Network Standards - NGT News
“In keeping with President Biden’s commitment to jumpstart the construction of a national network of 500,000 electric vehicles (EV) chargers by 2030, the U.S. Department of Transportation’s Federal Highway Administration has released a Notice of Proposed Rule-making (NPRM) on proposed minimum standards and requirements for projects funded under the National Electric Vehicle Infrastructure (NEVI) Formula Program.”
Leveraging the benefits of BEVs on urban routes | Fleet Maintenance
“City delivery is the ideal application for fleets to begin making the migration to battery-electric vehicles (BEVs). Shorter routes and slower speeds are among the many reasons why.”
Giant Food Adds Fully Electric Step Vans to Delivery Fleet - NGT News
“Giant Food, a greater Washington, D.C., regional grocery chain, has deployed new, fully electric Giant Delivers vehicles.”
Fuel ⛽️
High gasoline prices crimping drivers' spending at the pump | AP News
“Soaring gasoline prices have left many consumers with no choice but to cut spending on non-essentials, but it might be coming full circle by stopping some drivers from filling up their tanks.”
Safety 🦺
A year after JBS cyberattack, food suppliers remain prime targets for ransomware | Supply Chain Dive
“A sweeping supply chain has vulnerabilities in legacy equipment and systems that lack modern security tools.”
What drivers should do when they spot emergencies | FleetOwner
“Fleet managers must ensure their drivers know protocol in emergency situations.”
Inflation 💸
Why the Fed raising interest rates helps inflation and what it means - Vox
“If you are a person living in the United States right now, you are probably at least medium worried about the economy.”
U.S. Retailers Plan Big Discounts as Inflation, Inventory Add Up | SupplyChainBrain
“A nationwide inventory glut has led to unexpected bargains for U.S. shoppers, especially for goods that used to be hot sellers during the pandemic.”
“We all know inflation is soaring, confirmed again this week, with a year-over-year rise in wholesale prices of a scary 10.8%, as measured by the Producer Price Index (PPI).”
Fed's aggressive rate hikes raise the likelihood of a recession | AP News
“Federal Reserve Chair Jerome Powell has pledged to do whatever it takes to curb inflation, now raging at a four-decade high and defying the Fed’s efforts so far to tame it.”
Fuel Tech ♻️
The plastic elephant in Amazon’s boardroom | Fortune
“Amazon has taken significant country-level steps to reduce its reliance on single-use plastic–but the company has been reluctant to commit to a global strategy to report and reduce its use of plastic.”
Three Ways Shippers Can Shape a Greener Future | SupplyChainBrain
“Consumers are driving shippers and distributors to go green at a quickening pace. In fact, more than a third of shoppers choose brands based on their sustainability values and actions.”
Pilot Diversifying into Industrial CNG, Hydrogen - Fuel Smarts - Trucking Info
“Pilot Companies' new CNG and hydrogen trailers are a departure from the familiar tankers.”
Air Freight ✈️
Warning to forwarders and carriers as box lines boost their airfreight credentials - The Loadstar
“Maersk’s global head of air cargo, Ferwin Wieringa, has told customers air freight should be more professional as he outlined some of the plans for the new division.”
Network Association 🤝
PAM Transport acquires Metropolitan Trucking | Commercial Carrier Journal (ccjdigital.com)
“PAM Transportation (CCJ Top 250, No. 58) has acquired New York City-based Metropolitan Trucking (No. 234) for $77.4 million, the company announced Wednesday – PAM's first acquisition since buying Little Rock-based McNeill Trucking in 2003.”
Artificial Intelligence 🤖
Kodiak's new sensors seek to simplify AV maintenance | FleetOwner
“Southern Tire Mart has found autonomous vehicle developer Kodiak Robotics' SensorPods, which house several complex cameras and sensors to enable autonomous trucks to operate, are as easy to change out as a tire.”
Gatik will run autonomous hauls for Georgia-Pacific to Sam's Club locations | Transport Dive
“Gatik’s autonomous box trucks will move Georgia-Pacific shipments to 34 Sam’s Club locations in the Dallas Fort-Worth area as part of a multi-year commercial partnership, the company announced last week.”
Autonomous vehicle crash reports reveal little information - Land Line
“The first batch of autonomous vehicle crash reports from the federal government is now available, but incomplete and inconsistent data collection leaves more questions than answers.”
Driver Issues 🚚
ATA's Chris Spear Touts Issues-First Approach to Infrastructure Bill | Transport Topics (ttnews.com)
“American Trucking Associations President Chris Spear praised the bipartisan work that carried a federal infrastructure package across the finish line and stressed that his group will always put issues ahead of politics”
Quote of the Day:
“Anything that is measured and watched, improves.”
— Bob Parsons, founder of GoDaddy
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.