Welcome back to another market update! In this journal I’m going to talk about supply chain current events, freight, PMI, technological advancements, and the stock market.
The sole purpose for me to do this is to spark a conversation with you in the future and maybe gain perspective of your thoughts and insights.
“Money is like gasoline. It gets you where you want to go, but it’s not the destination.”
That being said let’s jump into where the markets are:
Dealing with freight transport on a daily basis provides an intriguing perspective on the ever-changing landscape of shipping rates. It’s quite interesting to see the varying costs that customers incur when moving their products from A –> B. My time working as a broker has allowed me to build a strong network of contacts, including owner-operators, large trucking companies, and dispatchers. However, I have observed that most businesses in the trucking industry are struggling to make a profit, with the exception of customers and original equipment manufacturers (OEMs). This is due to a number of factors, including rising costs and increasing competition. As a result, many businesses are consolidating or going bankrupt.
This transitions this next part the journal: Market correction.
The month of October 2023 has been marked by a series of events that have stirred the US markets and raised concerns about a potential market correction. High interest rates and inflation have been key factors, and the Federal Reserve has been hiking interest rates to combat inflation. This has made borrowing more expensive for businesses, potentially hampering investment, and growth. On the consumer side, higher prices can reduce spending, further slowing economic growth.
The Tech-heavy Nasdaq Composite sank 0.5%, falling even further into correction territory. It is now down more than 10% since its most recent high in July. This suggests that some stocks may indeed be overvalued, and this is just a small correction that was overdue. In the commercial real estate sector, the shift towards remote work during the pandemic has led to rising office vacancy rates and declining rents. The growth of e-commerce has similarly affected Retail real estate, with increasing vacancy rates and falling rents due to the decline of brick-and-mortar stores.
Geopolitical tensions have also added to market uncertainties. The ongoing conflict in Ukraine has led to higher energy prices and supply chain disruptions. As well as the conflict that is happening with Israel and Palestine. The United States government has responded by providing substantial aid to Ukraine, with a total of $61.4 billion requested for aid to Ukraine. In Israel, amidst conflict, the United States is providing $14.3 billion in aid. This support is crucial for maintaining stability in the region but also contributes to the overall expenditure of the US government.
In conclusion, October 2023 was a month filled with economic and geopolitical events that have significantly impacted the US markets. These factors have led to increased speculation about another market correction that can turn into a recession. Currently, I have positioned myself in a state of liquidity, patiently awaiting a shift toward a more bullish sentiment. This cautious approach will enable me to reposition my portfolio when the time is ripe.
The last topic I want to talk about is Supply chain innovations:
Google Cloud and Flexport partner to launch new freight platform. The new platform, called Flexport Ocean+, uses Google Cloud’s artificial intelligence (AI) and machine learning (ML) capabilities to provide real-time visibility into freight shipments and optimize routing and scheduling. The platform also offers predictive analytics to help businesses anticipate potential disruptions and make informed decisions.
Walmart partners with Drone Up to launch a drone delivery service. Walmart has partnered with Drone Up, a drone delivery company, to launch a drone delivery service for its customers in Arkansas. The service will initially be available in two towns, and Walmart plans to expand it to other locations in the future.
Amazon launches new warehouse robotics program. Amazon has launched a new program called Amazon Robotics Accelerator that provides grants and support to startups developing new robotics technologies for warehouses. The program is designed to help Amazon identify and adopt the latest robotics innovations to improve its warehouse operations.
Paperless shipping is gaining more traction in our environment. This method that allows you to electronically transmit documents to Customs, eliminating the need to print and manually attach them to shipments. This feature helps you avoid costly delays caused by handwritten, misread Customs documentation.
Sources
To read more about Innovation
Written by:
-DAIVIK SURESH-
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