Breaking Supply Chain News: YRC Negotiations, Tariff Increases, and Oil Anxiety
In the past two weeks there have been a few events that could have a big impact on the supply chain and we wanted to make sure they’re on your radar. You can watch an update covering these stories here or read more below.
YRC Worldwide successfully passed a new contract with their unions
A looming strike at YRC that would have constrained capacity throughout the supply chain has now been averted with a new five-year agreement. The new agreement includes a $4/hr wage increase over five years, which equates to approximately 18% over this time span.
Tariffs increased from 10% to 25% on many everyday products
Watch store shelves for higher prices! A new tariff increase put forward by the Trump administration on Friday impacts $200 billion worth of Chinese imports including hundreds of everyday products such as frozen meat or baseball mitts. We’ll be watching to see how this impacts transportation patterns as shippers look for ways to mitigate these product cost increases. Several months ago, we interviewed tariff expert Carolyn Gleason for her insights on the impact of tariffs at a high level and you can listen to the interview here.
Oil markets face escalating tensions as Iran issues threats
After the deployment to the Middle East of a U.S. carrier strike group and bomber task force last week, Iran appears to have delivered one million barrels of crude oil to Syria, further raising tensions with Washington. This came after sanction waivers issued by the United States reached an end and the Iranian President threatened to close the Strait of Hormuz as well as end its compliance with two conditions of the nuclear deal. These tensions could drive Brent crude over $80 this summer, raising transportation costs for shippers.
Need help gauging the impact of these tensions or creating a contingency plan? We’re here to help and encourage you to get in touch.