When it comes to inflation forecasting, pretty everyone had it wrong. New research suggests that a misunderstanding of what was happening with global supply chains might be part of why. When U.S. inflation first began to heat up in 2021, it was written off by many economists as largely a temporary thing. The interaction of reopening economies with the supply-chain snarls the pandemic had set off caused a burst higher in prices that wouldn’t last. Or, as Federal Reserve policymakers put it when they left rates on hold near zero in November 2021, “Inflation is elevated, largely reflecting factors that are expected to be transitory.” As 2022 got under way, the New York Fed’s Global Supply Chain Pressure Index showed the shipping snarls that had beset the economy were getting untangled. By September 2022, it was back to pre-pandemic levels. But inflation kept running hot: That same month, the Commerce Department measure that the Fed prefers showed that prices excluding food and energy were up 5.5 percent from a year earlier, just shy of the 39-year high it hit that February.
Truck transportation jobs continued a slow recovery from the depths of the freight recession and the job losses created when Yellow Corp. went out of business in 2023. The December figures released by the Bureau of Labor Statistics on Friday showed that seasonally adjusted truck transportation jobs rose 3,300 last month, rising to 1,586,300 jobs. That increase also was fueled by upward adjustments in the earlier-reported figures for November and October. As a result, the December figure was 5,700 jobs more than the “final” figure for October of 1,580,600 jobs. The other significant trend this year has been the continued loss of jobs in the warehouse sector. Seasonally adjusted employment in the warehouse sector has declined in 16 of the last 17 months. In the one month it didn’t drop, it was unchanged. Figures in the latest report showed a relatively restrained decline. Jobs in the warehouse sector were down 4,900 jobs. That’s the fourth smallest monthly decline in 2023, but the end result is stark: Warehouse sector jobs in December 2022 stood at 1,933,400 jobs. A year later, they were 1,851,200 jobs, a drop of 82,200 jobs.
The Port of Virginia has become the first US East Coast port powered by 100 percent clean energy, achieving its clean energy goal eight years ahead of schedule. Today, the port is powering all its terminals with electricity from clean resources and accelerating its goal of becoming carbon-neutral by 2040. Using clean electricity helps the port offset its carbon footprint by reducing carbon emissions 45 percent per container. The reduction comes in two target areas, scope 1 and 2 emissions. This milestone demonstrates the port’s commitment to supporting sustainability in Virginia. In addition, the accomplishment puts the port eight years ahead of its original 2032 goal of using clean energy to power operations, an integral step in reaching its net-zero by 2040 commitment.
That’s all for this week. Enjoy the weekend, and the song of the week, It’s So Hard to Say Goodbye by Boyz II Men.
The post This Week in Logistics News (January 6 – 12) appeared first on Logistics Viewpoints.