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Diesel Squeezes Trucking; Strained Farm Supplies; Plugging In Trucks
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A truck stop in Whiteland, Ind. PHOTO: LUKE SHARRETT/BLOOMBERG NEWS
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This month’s surge in diesel prices is putting the biggest squeeze on trucking’s smallest operators. Some small fleets say they are taking steps to conserve fuel after the rapid increase in costs that one owner said had triggered a “shock factor” across the sector. The WSJ Logistics Report’s Lydia O’Neal writes the jump in per-gallon average prices across the U.S. to a record $5.25 has slipped back but the price is still nearly $2 per gallon higher than it was a year ago. Industry experts say bigger carriers generally have the financial cushion to absorb the increases, and several say they are passing along higher fuel surcharges to their shipping customers. Still, the fuel surcharges lag behind the
rising prices and smaller operators are taking a hit as they cope with fast-rising costs and sticker-shock from shippers. One small operator says he may have to park trucks without relief.
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Consumer interest in electric vehicles and other clean energy technologies is picking up as energy prices soar and oil tops $100 a barrel. (WSJ)
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California Gov. Gavin Newsom proposed an $11 billion relief package that includes direct payments to state car owners and reduced fuel taxes to offset rising prices. (WSJ)
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Germany is cutting fuel taxes as part of new actions to soften the impact of rising energy prices. (WSJ)
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Striking truckers in Spain rejected a package of some $550 million in direct aid to offset rising fuel prices. (The Loadstar)
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A worker loaded a tractor with fertilizer in Brazil, in February. PHOTO: ADRIANO MACHADO/REUTERS
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Russia’s invasion of Ukraine has taken troubles in supply chains about as far upstream as it gets. Fertilizer exports from Russia have tumbled sharply and prices for the bedrock agricultural material are skyrocketing, the WSJ’s Jon Emont reports, and the impact is reaching farmers from South America to Asia. Fertilizer prices were already high before the war, and the commodity is about three to four times costlier now than in 2020. That has far-reaching consequences for farmer incomes, agricultural yields and food prices. One West African corn and rice farmer says he’s sought to replace missing Russian shipments but was told order books are full until the end of the year. The shortage will roll across global
agriculture markets. Farmers are forecasting reduced yields, and smaller harvests will hit developing countries hard, forcing their cash-strapped governments to import large quantities of staples such as wheat at high prices.
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Here are recent developments following Russia’s invasion of Ukraine:
The U.S. and western allies imposed new measures on Russia and increased aid to Ukraine amid rising concerns that Moscow could order the use of chemical or other unconventional weapons there. (WSJ)
Over 350 vessels with some 1,000 seafarers have not moved since Russia invaded Ukraine and at least 128 foreign-flagged ships are stuck inside Ukraine ports or anchorages. (Lloyd’s List)
Germany rebuffed a call by Russian President Vladimir Putin for importers to pay for Russia energy supplies in rubles. (WSJ)
Russian business that has been a bright spot for Alibaba is now putting the Chinese e-commerce giant in an awkward position. (WSJ)
Philip Morris is suspending planned investments in Russia and will scale down manufacturing in the country. (WSJ)
For the latest updates from Russia and Ukraine, click here
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An artist's rendering of an Einride electric truck. PHOTO: EINRIDE
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The freight-sector push toward electric trucks is picking up steam. Maersk Line is bringing 300 heavy-duty electric trucks into its North American business under a deal with Sweden’s Einride, the WSJ’s Denny Jacob reports, and the structure of the agreement may be just as important as the substantial number of trucks. Under the new plan, Einride will continue to own the trucks while helping the container shipping line extend electrification across more of its operations in North America. The effort will focus first on big seaport gateways, including Los Angeles, Newark, N.J., and Savannah, Ga., so the distance the trucks can travel on a single charge shouldn’t be a concern.
If the plan works, that could make Einride’s model of owning the trucks and leasing the technology more popular as trucking companies weigh whether to plug in.
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65 cents
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The national average fuel surcharge per mile in the spot market for truckload vans this week, up 19 cents from the February average and 33 cents more than the monthly average in March 2021, according to DAT Solutions.
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New U.S. unemployment claims fell in the past week to the lowest level since 1969. (WSJ)
Europe’s economic recovery slowed this month after Russia’s invasion of Ukraine disrupted supply chains and sent raw-material and energy prices soaring. (WSJ)
The Supreme Court temporarily blocked New Jersey from leaving the two-state agency that fights crime at the Port of New York and New Jersey. (Dow Jones Newswires)
A jury found a former Boeing pilot innocent of deceiving air-safety regulators about a 737 MAX flight-control system later blamed for two fatal crashes. (WSJ)
Instacart will launch ultra-fast delivery service, starting with grocery store Publix’s customers in Atlanta and Miami. (WSJ)
Toshiba shareholders rejected a management plan to split the company into two parts. (WSJ)
The logistics arm of JD.com is seeking up to $1.1 billion in a new share placement. (South China Morning Post)
The chief executive of P&O Ferries effectively admitted to breaking the law by firing the company’s entire British crew without notice or consultation. (Financial Times)
Container throughput at Canada’s Port of Vancouver rose 6% last year, including a 56% increase in empty outbound boxes. (Globe and Mail)
Waterways connecting the Great Lakes to the St. Lawrence Seaway opened for the freight shipping season. (Northwest Indiana Times)
Orders for new ships at Chinese shipyards fell 17% in January and February. (Seatrade Maritime)
Plant-based milk producer Oatly is expanding its sourcing options after poor harvests strained its oat supplies. (Supply Chain Dive)
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