August 4, 2022

COST OF OIL CONTINUES TO DECLINE


The spot market cost of a barrel of oil dropped 12.5% over the last month. That is good news for plastic prices as petroleum is a key component in plastic resin.


OCEAN FREIGHT RATES DOWN


The cost to ship a 40-foot container from Shanghai to Los Angeles has declined 32% year-over-year.


THE TTI COMPOSITE TOY STOCK INDEX CONTINUES TO STRUGGLE


Toy stocks, led by the Walt Disney Company (down 40% Y to Y), lag behind the Dow Jones Average. The index is down 19% Y to Y while the Dow is down 3.4%.


SUPPLY CHAIN STRUGGLES


Maybe the supply chain isn't so fragile. There is currently a strike by British dock workers, Chinese displays of military might in the Taiwan straits, a war in Europe, and port and factory shutdowns in China due to Covid.


Despite all of that, containers continue to move across the world's oceans. Pretty impressive when you think about it.