MARKET BRIEF | March 2024
Latest on Red Sea Crisis
Houthi attacks on carrier ships continue in the Red Sea. Last Saturday, Houthi strikes forced U.S., French, U.K., and Danish ships to join together in a complex operation to shoot down over 35 attacking drones and missiles. During the barrage, the bulk carrier True Confidence was in the process of being escorted out by French forces following a fatal attack the previous Wednesday. Last week, the cargo ship Rubymar finally sank after being hit by a Yemeni missile a couple of weeks prior.
Large Retailers Making Changes to Distribution
In order to stay competitive with Target and Amazon, Walmart has added early morning delivery to its arsenal. This will give consumers using the Express On-Demand Early Morning Delivery option to order items that can be received in as soon as 30 minutes. In the world of professional retail, The Home Depot has decided to deliver more orders directly from its distribution centers. This frees-up more physical store space, as well as time for employees who don’t have to be consumed with picking and packing pro orders.
Walmart Sells Intermodal Fleet
In other Walmart news, the retailer has sold its intermodal assets to transport company J.B. Hunt. The long-term agreement the two sides struck strengthens their long partnership history – an agreement Walmart feels will keep costs low to its customers. Walmart admitted to having underestimated the costs of maintaining a private fleet of 53-foot trailers. This agreement will remedy that, and will add 15,500 containers to J.B. Hunt’s intermodal fleet – something that fits within their growth strategy for the next few years.
Eastern Washington Adds Short-Haul Rail Service
A short-haul rail service has debuted with its first loads from eastern Washington to Tacoma. The concept is to replace trucks with short-haul rail, and this first transport represented about a $200 savings per container for Ag West International, the rail line’s first customer. This is part of a larger project that will be developed in phases over the coming months.
