MARKET BRIEF | May 2024
Dali Freed by Demolition of Key Bridge Piece
On Monday, explosives were detonated along the remaining span of Baltimore’s Francis Scott Key Bridge, which laid along the grounded Dali container ship. The affected trusses of the bridge slid off the bow of the ship into the water. This controlled demolition will allow the Dali to be removed from the Patapsco River, opening the area, and fully restoring traffic through the Port of Baltimore, which has mostly blocked traffic ever since the tragic event on March 26. It is estimated that the port closure has affected more than 8,000 jobs, and brought an economic impact of about $15 million per day to the area. VIDEO
High Port Volumes Anticipated into Q4
According to the National Retail Federation, the increased volumes that have been experienced by the top ports in the U.S. are expected to persist into the fall. Even with a high rate of inflation, consumers are still making purchases and the retailers are keeping merchandise on-hand. Volumes are expected to remain above 2 million TEUs (Twenty-Foot Equivalent Units) through this October. Not only does that month mark the beginning of the fourth quarter of 2024, but also the back-to-school and holiday seasons for retailers.
Federal Regulators Finalize EV Tax Credit
The U.S. Treasury Department and Energy Department have finalized the criteria for vehicles produced by domestic automakers to qualify for the $7,500 tax credit awarded to consumers. These rules identify a “foreign entity of concern,” including adding graphite to the list of “hard-to-trace minerals,” and providing automakers more time and flexibility to adjust their electric vehicle supply chain. There are currently 114 EV models available for sale in the U.S. However, only 22 of those qualify for a portion of the tax credit, with just 13 models qualify for the entire $7,500 credit. It’s the hope of the U.S. government that the updated criteria will provide automakers with some leeway in getting more vehicles into qualification, thereby incentivizing more consumers to purchase EVs, especially as gas prices increase.
Amazon Launching 50 Heavy-Duty Electric Trucks in California
Amazon has made a significant deployment of Volvo VNR Electric trucks in California’s two largest ports. These Class 8 trucks will be a part of their drayage operations in the Port of Los Angeles and the Port of Long Beach. The Volvo VNR Electric has a 275-mile range. They have a gross combination weight of 82,000 pounds, although EVs do generally weigh more than their combustion engine counterparts. This fleet of 50 joins 35 other heavy-duty electric trucks Amazon has in service throughout the state, in addition to hundreds of electric vans performing last-mile delivery.
