Will holiday shopping drive up logistics growth?
While many consumers have concerns about inflation driving up prices, they aren’t being deterred from still shopping. According to the U.S. Commerce Department’s Bureau of Economic Analysis (BEA), consumer spending increased 3.7%, the most since early 2023, thanks to rising incomes. This in part has helped the GDP increase at an annual rate of 2.8% in the third quarter of 2024.
Hopefully, this rise in spending will also occur with in-store shops and not just online. The in-store shopping experience could help to boost freight volumes as retailers stock up to meet demands. After many quarters of decreasing shipments, the uptick in shopping could help lead to an increase in the freight market.
FDA’s grace period ends for pharmaceutical supply chain
The Drug Supply Chain Security Act (DSCSA), established in 2013, aims to safeguard consumers from the dangers of contaminated, stolen, or counterfeit drugs. The U.S. Food and Drug Administration (FDA) initially granted a grace period for companies to adjust to the new requirements. However, that period is coming to an end. By November 27, 2024, all life sciences and healthcare supply chain organizations must comply with the law’s serialized traceability requirements, unless they have a specific exemption. This means they need to be able to track and trace prescription drugs electronically at the individual package level throughout the supply chain.
QUICK FACTS:
Fuel Prices:
The average U.S. regular gasoline retail prices averaged $3.052 per gallon on 11/11/24 which is down $0.297 from the average a year ago. And the retail diesel prices were $3.521 per gallon on average and $0.773 less than it was one year ago.
Tonnage:
The latest date released by the American Trucking Association shows that for-hire truck tonnage decreased 2.1% in September after rising 1.7% in August. ATA Chief Economist Bob Costello said, “Freight has been very choppy this year, but despite the latest drop, tonnage is up 1.8% since hitting a low in January. No doubt, the climb up has been slow and difficult as manufacturing activity remains flat, but the trend is up, not down.”
Sources:
https://www.commerce.gov/data-and-reports/economic-indicators
https://www.eia.gov/petroleum/weekly/index.php
