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Supply
Chain by the Numbers |
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- Aug. 11, 2022
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Oil Prices Dropping, Sending Diesel Lower; The Unwind of XPO Logistics almost Complete; Truck Driver Pay Rose Sharply in 2021; Phoenix Now Distribution Hot Spot |
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$91 |
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That about the price per barrel of West Texas crude oil this week. That puts it about where it was in early February, before the Russian invasion of Ukraine sent prices soaring for a while, reaching over $120 per barrel in March and then again in June. But it’s been a steady march down from there to the low $90’s. And that decline is sending gasoline and diesel prices lower, with average US over-the-road diesel falling to below $5.00 per gallon last week for the first time since March, according to the Energy Information Administration. And that should reduce inflationary pressures a bit. |
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| That was the high watermark for annual revenue from XPO Logistics, achieved in 2018. Why is that newsworthy? Because late last week, CEO Brad Jacobs's announced he was moving to a chairman’s role, as the company is almost done unwinding the acquisitions Jacobs used to grow the company into a logistics giant. What will be left at XPO is a LTL freight carrier with last mile delivery services for big items such as appliances, as other units such as freight brokerage, international logistics, and contract logistics have or will be sold or spun out. The LTL business brought in about $4.1billion in revenue in 2021. Jacobs will be succeeded as CEO by Mario Harik, now head of the trucking operation after other executive roles at the company. |
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16 Million |
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That is how many feet of distribution center square footage was leased in the Phoenix area in the first half of this year, based on a report this week by the Wall Street Journal, based on data from commercial real estate firm CBRE. Most of that new space is located in a rising logistics hub along Loop 303 outside of town. That data also puts Phoenix as behind only Chicago and the Dallas-Fort Worth region as the country’s fastest growing markets for new DC space in 2022. What’s more, another 19.8 million square feet of industrial space is under construction in the Phoenix area. Some companies are actually servicing customers in Southern California from Phoenix. |
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That was the average annual pay for US truck drivers in 2021, according to the new American Trucking Associations annual salary survey. That was up 11% from 2020, as carriers struggled to find and retain drivers. That includes pay for both drivers who work for freight carriers as well as those driving for private fleets. We will also note the nearly $70,000 in pay is well above the pay for drivers estimated by the US Bureau of Labor Statistics, which says on average drivers still make under $50,000 per year. Earlier this year, Walmart sent a shock through the industry by announcing first year drivers for its fleets could make as much as $110,000. Last month, LTL carrier Old Dominion said in its quarterly earnings report last month that its costs for salaries, wages and benefits increased nearly 20% in the first half of 2022.
