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Is Another Big Snowstorm About to Hit the Mid-West?

Credit: ABC News. A woman puts a scarf over her head to try and keep the snow off in Hoboken, N.J., March 7, 2018.

WHAT YOU NEED TO KNOW

  • A winter storm is forecasted to hit the Midwest and East Coast on Friday.
  • This will be the second wave of a nationwide winter storm.
  • This storm is expected to drop freezing rain and sleet leaving dangerous, icy roads.
  • Pending road closures in areas of the upper East Coast and the Midwest.

 

Midwest Weather Forecast is threatening heavy snowfall, severe flooding, strong winds and thunderstorms this weekend into next week. A winter storm watch has already been issued from Colorado to Michigan, including Kansas City, Missouri, St. Louis, Chicago, Indianapolis and Detroit.

 

How Severe Will the Storm be?

More than 1 foot of snow is possible between Chicago and Indianapolis and also near Detroit. Earlier this week snow fell across areas in Utah, Colorado, New Mexico and Arizona with up to 2 feet of snow. ABC News also reported the wind chill plunged on Wednesday morning to minus 18 in Chicago, minus 32 degrees in Minneapolis, minus 29 in Green Bay and minus 13 in Indianapolis.

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Six to 12 inches of snow is expected for parts of the Rockies, as well as from Oklahoma and the Texas panhandle into Kansas, Missouri, Illinois and Michigan.

Meanwhile, Snowfall from 8-14 inches is being predicted in the Northeast – it will be thawing out, with temperatures rising to the mid 40’s in New York City and Boston.

 

How to Stay Safe Outside In Cold as Frigid Temperatures Hit?

While the best case is not being outside at all – since prolonged exposure or those not dressed appropriately for the weather are in danger of frostbite and hypothermia – if you have symptoms of frost-nip or frostbite, keep the area covered and don’t rub your hands as rubbing actually causes tissue damage. If you can, always get rid of wet clothes and wear sufficient head gear because that’s where majority of heat gets lost.

Getting behind the wheel can be very dangerous in these conditions. However, for truckers and road users who do anyway, do basic pre-trip inspections before you hit the road such as Checking your battery, windshield and wiper blades and keep your gas tank at least half full. Winter weather can cause unexpected traffic delays, using more gas than you may have anticipated.

Make certain your tires are properly inflated and have adequate tread. Colder weather typically requires increasing tire pressure. You will also want to ensure you have emergency contact details and prepare a Winter Emergency Kit.

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Samuel’s Way Logistics Recommended Winter Emergency Kit

  • Keep a Flashlight and extra batteries
  • Jumper cables (and a portable starter if possible)
  • Mobile phone and a portable charger
  • pre-installed rescue apps and emergency phone numbers
  • Abrasive material (sand, salt, cat litter) or traction mats
  • Snow shovel
  • De-icer
  • Ice scraper with brush
  • Extra warm clothing (gloves, hats, scarves), and blankets
  • Drinking water and non-perishable snacks
  • Warning devices (flares or triangles)
  • First-aid kit
  • Basic toolkit (screwdrivers, pliers, adjustable wrench)

 

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Porsches, Lamborghinis, and Bentleys sink with cargo ship in the Atlantic

Credit: Ship carrying Porsches and Bentleys ablaze near Azores, towing boats en route. February 18, 2022. Reuters

KEY POINTS

  • A cargo ship carrying thousands of new cars bound for the US caught fire on Wednesday.
  • The Volkswagen Group confirmed nearly 4,000 of its vehicles was on the ship.
  • All 22 crew members were evacuated – Business Insider.
  • Around 1,100 Porsches and 189 Bentleys were on board – spokesperson.

 

Nearly 4,000 new vehicles destined for North America are now in the bottom of the mid-Atlantic Ocean off the coast of a region of Portugal. On February 16th, the cargo ship – Felicity Ace, was carrying thousands of cars when a fire broke out while traveling from Germany to the USA.1

 

“The Felicity Ace fire is one of the first on board a major vehicle carrier loaded with a substantial cargo of electric vehicles.” The Wallstreet Journal

 

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According to the Associated Press, the 650-foot-long Felicity Ace was carrying Porsches, Bentleys, Lamborghinis, and other luxury cars were among those on board. In the US, the Volkswagen Group sells vehicles under the Volkswagen, Porsche, Audi, Lamborghini, Bentley, and Bugatti brands. A Porsche spokesperson confirmed that “a number” of Porsche cars are among the Felicity Ace’s cargo and said it’s too early to tell if any can be salvaged.

While it’s unclear exactly what started the blaze, it was suspected that lithium-ion batteries in EVs aboard the ship caught fire. All 22 crew members were evacuated from the ship and did not need medical attention, the Portuguese Navy said when the fire first broke out.

 

Will The Russia-Ukraine Conflict Also Attack Supply Chains?

 

KEY POINTS

  • Russia and Ukraine are major exporters of food grain, natural gas and metals.
  • More than 2,200 U.S. and European based firms have at least one direct supplier in Russia.
  • Gas supply interruptions could spur an energy crisis and a further rise to record power prices to consumer energy bills.4
  • Russian cyber aggression threatens security collateral damage.

 

The U.S. stocks market has been hammered for two consecutive weeks as the Nasdaq erases 2.6% and Dow tumbles by 540 points.³ While the implications of the sooner-than-expected interest rate hikes by the Federal Reserve is seen as a big reason for the sell off, stocks has also extended losses as rumors of war persist. The spikes in interest rates could see even higher inflation driven by potential commodity shortages.

Although Russia denies it plans to attack Ukraine, tensions between Russia and Ukraine have spiked in recent months as Russia built up troops along its border with Ukraine. Being strategically located between Russia and the rest of Europe, the possibility of Ukraine joining the EU and becoming a member of the Western military alliance NATO, has received strong opposition from Russia that dates back to 2014 when Russia annexed Crimea from Ukraine.²

 

“it’s absolutely mandatory to make sure that Ukraine never — never ever — becomes a member of NATO.” Moscow, via Sergei Ryabkov. by Euronews 11/01/2022¹

 

What Commodity Markets are Most Affected?

Just when it seemed to have eased, it’s now more increasingly possible that the global shortage in semiconductors will likely be extended well into next year. The two countries at the heart of recent tensions, have an outsize impact on a few key commodity markets – some essential to the creation of semi-conductors. Ukraine is a leading exporter of highly purified neon gas, which is necessary for making chips.9

Russia, on the other hand, is the world’s biggest exporter of natural gas and wheat, the second-largest exporter of oil and a top exporter of metals such as aluminum, copper and is the world’s leading producer of palladium, which is essential for many memory and sensor chips.8

The impact on aluminum markets is one of the easiest to see – Aluminum prices have risen about 15% year to date major plus producers such as Alcoa, hit new 52-week highs this week. Russia itself is a large aluminum producer, the country made roughly 3.7 million metric tons of the metal 2021.4

Ukraine was the world’s fifth-largest exporter of wheat. Both countries also account for a large market share or global wheat production. Russia and Ukraine are responsible for a combined 113 million metric tons of wheat annually. Additionally, as it has been in most world conflicts, oil may be at the center of this one as well.4

Russia is a large producer of energy, the country pumps about 9 million barrels of crude oil a day and about 639 billion cubic meters of natural gas in 2021.4 The European Union depends on Russia for around a third of its gas supplies, and U.S. sanctions over any conflict could disrupt that supply. The U.S. government has held talks with several international energy companies on contingency plans for supplying natural gas to Europe if conflict between Russia and Ukraine disrupts Russian supplies.5

 

More Cyber Attacks on Supply Chains?

Russian has a well know history in cyber aggression. Russia disrupted the Ukrainian electric grid, both in 2015 and the following year, leaving hundreds of thousands of Ukrainians in the cold.7

Software and IT services account for around 12% of supplier relationships between U.S. and Russian/Ukrainian companies. The Federal Reserve Bank estimated that victims of the attack, which included companies such as Maersk, Merck and FedEx, lost a combined $7.3 billion.6

 

Contingency Plans for Supply Chain Leaders Ahead of a Disruption

As suppliers scramble to mitigate supplier risks, GEP recommends “Mapping dependence from the viewpoint of raw material procurement; Create risk profiles of your suppliers; Ramp up cybersecurity – given the threat of cyberattacks from Russia; Increase inventory by estimating your short to medium term demand; Supporting suppliers as well as looking for alternatives; Hedge for commodities and secure ruble and hryvnia currencies to pay local suppliers.”8

 

 

What Is Causing The Supply Chain Chaos?

America seems to be running out of everything. Businesses across the nation have been stretched with the ongoing supply-chain crunches across almost every industry. Companies are feeling the pinch from supply chain bottlenecks and labor shortages.

In an interview with Yahoo Finance Live, one such company, Atlanta-based Veritiv, which sells packing an19d paper products, sees these challenges being “driven by three key variables”.

 

1: Unprecedented demand

The supply-chain crisis is the result of COVID-19 disruptions paired with a boom in demand. Global supply-chains did not recover from 2020’s coronavirus which wreaked havoc on logistics systems.  The “unprecedented demand” is not only a result of pent-up demand after millions of Americans spent many months in quarantine during the COVID-19 pandemic but also the e-commerce boom, he added.

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2: Raw material shortage

Meanwhile, the surge in demand is matched with a shortage in raw materials. Other firms have also reported supply chain challenges for getting required goods due to congestion at U.S. ports. Many expect the flow of goods to continue to be slow and backlogged into next year.

 

3: Lack on talent

Shortages of workers, equipment, and space have only made the issue worse. “The most significant is the labor shortage.” With the workforce millions of people short and more exiting in 2021, there is a huge exodus of talent which is being felt across industries going into 2022.

Meanwhile, inflation in America reached a 30-year high in October: The Consumer Price Index (CPI) increased by 6.2% in October as compared to the previous year, the largest 12-month increase since November 1990.

 

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Terminals Increase Fees For Peak Hours

In an effort to incentivize increased use of marine terminal gates during off-peak hours, the Biden-Harris Administration Supply Chain Disruptions Task Force announced that the Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach will be temporarily adjusted from December 1, 2021, through January 31, 2022, subject to regulatory clearance by the Federal Maritime Commission.

During this period, there will be a financial incentive to move containers during off-peak hours by charging a TMF during peak hours.

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From December 1, 2021, through January 31, 2022, the TMF will be $78.23 per TEU (twenty-foot equivalent unit) or $156.46 for all other sizes of container for non-exempt international container moves through the terminals at the ports of Los Angeles and Long Beach between the hours of 7:00 a.m. and 5:59 p.m. Monday through Friday.

 

The TMF began as an incentive for Beneficial cargo owners (BCOs) to send their trucks to the ports during the 6 p.m.-3 a.m. second shift to avoid heavy traffic during normal daytime hours. Until November 2018, the fee was levied on daytime truck calls, but not against truck calls on the second shift.

 

The fee was cut by more than 50 percent last November but is now levied on all non-exempt container moves regardless of the time of day the trucks call at the terminals. The TMF is not charged on exempt containers.

 

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