GM to begin delivery $113,000 electrical Hummer pickups to prospects

DETROIT – General Motors begins shipping its GMC Hummer EV pickup truck to customers, marking a major milestone for the automaker and its next-generation electric vehicles.

The new truck is the first to integrate that of the Detroit automaker Ultium platform, Engines and batteries, all of which GM developed in-house and will serve as the basis for dozens of new electric vehicles in the years to come.

“We are very happy for our customers,” said GM President Mark Reuss on Friday during an interview with Phil LeBeau of CNBC during the “Quack on the street.”

GM is investing around $ 30 billion in the production and development of electric vehicles like the Hummer Pickup and an upcoming SUV variant of the vehicle by 2025. The company also confirmed the first deliveries of a new electric vehicle on Friday commercial delivery truck to FedEx.

Production is now set to begin at the former Detroit-Hamtramck assembly plant, less than two years after GM announced a massive $ 2.2 billion investment to fully renovate the facility to build a variety of all-electric trucks and SUVs.

Photo by Jeffrey Sauger for General Motors

The first series Hummer EV was auctioned for $ 2.5 million, with proceeds going to the Tunnel to Towers Foundation, an organization set up to commemorate first responder Stephen Siller on September 11th.

GM’s shares fell about 7% Friday morning after the company announced the abrupt departure on Thursday afternoon by Dan Ammann, CEO of the majority-owned autonomous vehicle unit Cruise. The stock closed at $ 55.16 per share on Friday, down 5.5%.

GM hasn’t confirmed how many reservations it has received for the Hummer EV pickup, which will initially be selling a special “Edition 1” version for about $ 113,000 before cheaper versions go into production. The company previously announced that reservations for the new Hummer will be fully booked until next year.

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Reuss said the company plans to build around 1,200 “Edition 1” Hummers before switching to cheaper variants. He said GM has around 17 of these vehicles ready to be shipped to customers.

“They were sold out here in no time,” said Reuss on Friday.

The Hummer EV is the second all-electric pickup truck to break into the untested but still emerging segment. It follows the R1T from EV startup Rivian, which began building the vehicle at a factory in Illinois in September.

The two pickups are expected to be the first of a handful of new electric pickups in the years to come. They should be followed by one in the next year Electric version of the Ford F-150 in spring and Tesla’s cybertruck At the end of next year. GM has also confirmed that electric pickups will be launched for its Chevrolet and GMC brands in the coming years.

World delivery is incomes probably the most cash since 2008 as pandemic ache wanes

The globe gets its biggest payday since 2008 as the combination of booming demand for goods and a global supply chain collapsing under the weight of Covid-19 drives freight prices higher and higher.

Whether giant container ships piled high with 40-foot steel boxes, bulk carriers whose caves hold thousands of tons of coal, or special ships designed for cars and trucks, the revenues for ships of almost all kinds are exploding.

Since the merchant fleet handles around 80% of world trade, the increase extends to every corner of the The 2008 boom brought a huge wave of new ship orders, but the rally was quickly undone by a collapse in demand as a financial crisis sparked the deepest global recession in decades.

The reasons for this boom are twofold – an economic reopening after Covid, which has boosted increasing demand for goods and raw materials. In addition, the virus continues to disrupt global supply chains, clog ports and delay ships, limiting the number of goods available to move goods across the oceans. The majority of the shipping industry has thus achieved record profits in the past few months.

The gold mine revolves around container shipping – where rates keep climbing to new records, but it’s by no means limited to that. the according to Clarkson Research Services Ltd., part of the world’s largest shipbroker, the strongest daily result since 2008. The only laggards are the oil and gas tanker markets, where further declining forces are at play.

“I’m not sure if the perfect storm will cover it all – that’s just spectacular,” said Peter Sand, senior shipping analyst at the Bimco trading group. “It’s a perfect spillover of a scorching container shipping market onto some of the other sectors.”

Container shipping remains the star. It now costs $ 14,287 to move a 40-foot steel box from China to Europe. That is more than 500% more than a year earlier and drives up the costs of transporting everything from toys to bicycles to coffee.

Those gains can already be seen in the profits of AP Moller-Maersk A / S, the world’s largest container line, which increased its estimated profit this year by nearly $ 5 billion last month. As a sign of how profitable the industry has become, CMA said CGM SA – the world’s third largest airline – is freezing its spot rates to preserve long-term customer relationships. In other words, the company is distracting profits.

Other sectors

While demand for merchandise is boosting container markets, one is recovering also ransacked more raw materials and increased the revenue of bulk carriers carrying manufactured goods. Earnings in this sector recently hit an 11-year high and are showing little sign of slowing down as consumption is expected to remain stable for the remainder of the year.

“Strong demand for natural resources combined with Covid-related logistical disruptions” support spot and future freight rates, said Ted Petrone, vice chairman of Navios Maritime Holdings, which owns a fleet of bulk carriers, on a conference call last week. “The fundamentals of supply and demand will remain extremely positive in the future.”

The extreme strength of shipping is so great that some bulk carriers have even moved to carry containers on their decks. Golden Ocean Group Ltd. belongs to the companies that are dealing with the idea. While it could bring additional profits to owners in an already unexpected year, it is not without risks as bulk carriers are not designed to carry the giant boxes.

“It tells a story about the special situation we find ourselves in,” said Ulrik Andersen, CEO of Golden Ocean, earlier this month in the container market.

Tanker lull

While Covid boomed many shipping sectors, for oil tankers it meant loss-making businesses and owners effectively subsidizing the shipping of crude oil for much of 2021.

With OPEC + still keeping some of the supply offline, there are too many ships and too few cargoes, which is keeping revenue down. That burned one of the hottest trades in the industry earlier this year – bullish oil tanker positions in hopes of a summer surge in oil demand.

In view of falling oil stocks on land, analysts continue to expect a recovery. Interest rates could rise in October as inventories dwindle and demand for tankers rises, Pareto Securities analysts, including Eirik Haavaldsen, wrote in a statement to customers.

But for the time being, the tanker market remains the only eyesore for an industry in which freight capacities are becoming increasingly scarce. The ClarkSea Index, which tracks daily earnings across a variety of shipping sectors, has seen its longest monthly gains on record.

These record profits are also seen in more esoteric markets. Car transporters have been the most expensive to rent since 2008. The prices for general cargo ships with heavy equipment are also rising, contributing to a boom led by container and bulk carriers.

“The charter rates reported in containers are insane and the same goes for bulk cargo,” said Alexandra Alatari, shipping analyst at Arrow Shipbroking Group. “The fundamentals are strong enough to support interest rates, which would be the high point of any other year.”

Transport disaster strikes Black Friday procuring amid Europe, China floods

TOPSHOT – The aerial photo shows an area in the Blessem district of Erftstadt on July 16, 2021, which was completely destroyed by the flooding.

SEBASTIEN BOZON | AFP | Getty Images

The 2021 Christmas shopping season could be marred by out of stock goods and shipping delays as the recent floods in Europe and China tighten already tight global supply chains.

Western Europe and the Chinese province of Henan – a major transport hub and headquarters of several large companies – are grappling with the aftermath of devastating floods.

The disasters damaged railways in both regions, which are used to deliver goods and raw materials. Water entered industrial areas and damaged facilities, machinery and warehouses, supply chain industry companies told CNBC.

“Black Friday and the holiday season for which products (and raw materials) are staged will have the brunt of the impact,” Pawan Joshi, executive vice president of supply chain software company E2open, told CNBC in an email.

“Consumer electronics, dorm furniture, clothing and appliances will all continue to be in short supply as shopping starts early in school and enters the main Christmas shopping season,” he said.

Delays in the distribution of raw materials needed to manufacture goods will have a cascading effect and disrupt supply chains “for weeks and months,” Joshi said.

The flood has the potential to take another blow to the auto industry, which is already suffering from a semiconductor shortage.

Pawan Joshi

Executive Vice President, supply chain software company E2open

Several companies including Germany’s largest steel manufacturer Thyssenkrupp, have declared force majeure. A force majeure event occurs when unforeseeable circumstances, such as natural disasters, prevent a party from fulfilling its contractual obligations and release it from sanctions.

Some of the industries hardest hit by the floods include automobiles, technology and electronics, according to those CNBC spoke to.

Car production started again after lack of chips

Auto production is likely to be affected by production delays as many of the world’s largest automakers and their suppliers are based in the flood-ravaged regions.

“The flood has the potential to take another blow to the auto industry, which is already suffering from a semiconductor shortage,” said Pawan.

Production facilities in Germany, the Netherlands, Luxembourg and Belgium are expected to bear the brunt of the flood damage, supply chain risk management company Everstream told CNBC via email. Many suppliers that provide specialty parts for the automotive, technology and aerospace industries are based there, said Shehrina Kamal, vice president of Intelligence Solutions at Everstream.

“When the floods receded, most major highways and roads were expected to be cleared this past weekend,” she said.

“Given that some companies have issued profit warnings and even declared acts of God, the effects of the flood are likely to drag on through supply chains for several weeks,” concluded Kamal.

Zurich-based company Klingelnberg, which makes transmission components, warned that the damage to its Hückeswagen plant in Germany could affect its sales targets for 2021.

Disruption of copper is bad news for electronics

The floods could also disrupt supplies of copper, which is used in many products from electronics to electric vehicles.

Flood-hit Henan Province in China is a major center of copper production, said Vivek Dhar, a commodities analyst with the Commonwealth Bank of Australia.

Copper prices rose sharply last week on delivery concerns, he said, as Henan has seen strong growth in copper smelting in recent years.

“Hopes for copper demand are linked to the rebuilding of damaged infrastructure in central China. China’s electricity sector is a particularly strong driver of copper demand,” Dhar wrote in a note last week.

In Europe, Aurubis GmbH – a provider of high-precision copper wires for the electronics and electrical appliance industries – declared force majeure in the case of deliveries after extensive floods in their plant, according to Everstream Analytics.

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Meanwhile, in Henan’s capital, Zhengzhou, the disruption could hit a wide range of industries, from automotive to pharmaceuticals to biotechnology, said Ryan Seah, APAC intelligence analyst at Everstream.

“Zhengzhou is a major transportation hub and one of the most important cities in China along the Belt and Road Initiative,” said Seah, referring to China’s gigantic infrastructure plan that spans several countries and continents. He added that the city is home to 91 China-listed companies and a variety of sectors.

There is also a large factory in Zhengzhou, which is made by Hon Hai precision industry, also known as Foxconn. It is the world’s largest assembly plant for Apples iPhones. Foxconn previously told CNBC that it “has activated an emergency plan for flood protection measures at this location”.

China Covid instances inflicting greater transport prices, delayed items

Sea containers from China and other Asian countries will be unloaded at the Port of Los Angeles on September 14, 2019 in Long Beach, California, as the trade war between China and the United States continues.

Mark Ralston | AFP | Getty Images

At first it was a critical shortage of shipping containers due to the pandemic. Then came a massive one Blockage in the Suez Canal.

Now businesses and consumers are preparing for another shipping crisis as a virus outbreak in southern China disrupts port services and delays deliveries, driving costs up again.

China’s Guangdong Province has seen a sudden surge in Covid-19 cases. Authorities have closed districts and businesses to prevent the virus from spreading rapidly.

This leads to massive shipping delays in large Chinese ports and drives up the already high shipping costs, as the waiting times at the berth “skyrocketed” according to analysts and representatives of the shipping industry.

“The disruptions in Shenzhen and Guangzhou are absolutely massive. Alone they would have an unprecedented impact on the supply chain, ”Brian Glick, founder and CEO of the supply chain integration platform Chain.io, told CNBC.

Together with the challenges that the global supply chain has been facing since this year, shipping is in “absolutely uncharted waters,” said Glick.

Guangdong, a major shipping hub, accounts for about 24% of China’s total exports. It is also home to the Port of Shenzhen and the Port of Guangzhou, which are the third largest and fifth largest in the world by container volume, according to the World Shipping Council.

The first local case of the Delta variant, first discovered in India, was found in Guangzhou in May and has since increased to over 100 cases. The authorities have imposed bans and other measures that limit the processing capacity in the ports.

Global supply chain at risk again

When various parts of the world recovered from the pandemic late last year, there was a buying boom that resulted in containers being critically undercut. This caused massive delays in shipping goods from China to Europe and the US, and drove up prices for businesses and consumers.

Then one of the largest container ships in the world, the Ever Given, got stuck in the Suez Canal and blocked the important trade route for almost a week. Around 12% of world trade is transacted via the Suez Canal, which an average of more than 50 ships pass through each day.

The incident sparked a global shipping crisis and kept $ 9 billion a day in international trade.

Now the recent crisis in southern China is again disrupting the global supply chain.

Shipping costs are at an all-time high … we’ve broken so many price caps that no one can say where that peak will be.

Brian Glick

Founder and CEO, Chain.io

“I think the risk of a supply chain disruption increases and export prices / shipping costs are likely to continue to increase. Guangdong Province plays a critical role in the global supply chain, ”said Zhang Zhiwei, chief economist at Pinpoint Asset Management.

JP Wiggins, vice president of corporate development for shipping software company 3GTMS, told CNBC that the port crisis in China will cause much more disruption for the American consumer as many of the shipments affected are destined for North America. In comparison, the Suez Blockade had a greater impact on European trade as many of the late deliveries were destined for Europe.

Wiggins also said that consumer expectations must remain in “Covid mode”.

“Expect shortages and sell-out of all products made in Asia,” he said.

Shipping costs ‘at all time high’

The increasing shipping costs are a direct result of the crisis.

“Many small and medium-sized shippers throw their hands up because shipping costs exceed the margins of the products they want to ship,” said Glick. “Shipping costs are at an all-time high with anecdotal quotes hitting 5 to 10 times the historical norm. We have broken so many price caps that no one can say where this will peak.”

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Wiggins warned that prices are “volatile” and said he advises shippers to spend twice as much as it is unclear where this is going.

Shippers who cannot afford the delays will increasingly try to convert ocean shipments to air, which will further increase shipping costs, said Shehrina Kamal, vice president of intelligence solutions at Everstream Analytics.

Ripple effect

Waiting times for ships docking at the Yantian International Container Terminal in Shenzhen have “skyrocketed” from an average waiting time of 0.5 days to 16 days, according to Kamal.

The backlog will exacerbate other ports.

The problem is already worsening in nearby ports as airlines begin diversion, Kamal said. The port of Nansha in Guangzhou is experiencing an influx of cargo due to the diversions, and the congestion and ship delays are expected to last for another two weeks – if not longer, she said.

Coupled with the pandemic in India and the Southeast Asian economies … this surge in Covid cases in Guangdong could add to higher inflationary pressures in other countries.

Zhang Zhiwei

Chief Economist, Pinpoint Asset Management

According to Kamal, the consequences will even spread to neighboring provinces such as Guangxi, Yunnan, Hunan and Hubei.

Fears of inflation

In addition to mainland China, the port at the Hong Kong financial center is also affected.

Cross-border delivery was possible there by truck, but the authorities recently tightened the measures due to the pandemic. That means, among other things, all cross-border trucks will need to be sterilized, which is likely to delay freight traffic and processing overall, Kamal said.

Overall, transshipment at the ports in Guangdong will remain slow in June and other parts of China will likely become more cautious, said Zhang of Pinpoint Asset Management.

This could lead to higher prices, although investors are concerned about rising inflation and the potential impact on interest rates.

“Coupled with the pandemic in India and the Southeast Asian economies … with rising raw material and shipping costs, this surge in Covid cases in Guangdong may add to higher inflationary pressures in other countries,” he warned.

Individuals able to restock wardrobe, however delivery snafus could plague retailers

An Anthropologie on Fashion Island employee greets customers at the store in Newport Beach, CA on Tuesday, May 26, 2020.

Paul Bersebach | MediaNews Group | Orange County Register via Getty Images

Some of us say “so long” about sweatpants.

In the last week of February, seven of the top ten best-selling items on the website of Anthropologie Dresses, the company, were a unit of Urban Outfitterssaid on earnings during a conference call this week. Up until that point, it was lucky to have only included one or two dresses in the top 10 list.

Richard Hayne, CEO of Urban Outfitters, described the change as striking and very positive.

“Until recently, fashion was mostly … casual and homely,” said Hayne. “We’re starting to see what I call ‘go-out fashion’ is starting to catch on. The clothing business is going to change in terms of the categories we sell.”

Apparel sales fell 19% last year as Americans stayed at home and focused their spending on groceries and other household items, according to market researcher The NPD Group.

When shoppers were shopping for clothing, convenience was the issue: sweatpants sales rose 17% year over year and nightwear sales rose 6%, according to NPD. For fashion shoes, which fell 27% over the year, slipper sales rose 21% as consumers mixed From cooking in the kitchen to holding video conference calls from the bedroom to streaming the latest series from the living room sofa.

Retailers like Urban, gap, Abercrombie & Fitch, Macy’s and Nordstrom had to swivel their wares quickly when the lifestyle changed abruptly last spring. They pulled blazers, skirts, and slim-fitting pants from mannequins to replace them with stretchy joggers and roomy pajamas.

However, the adoption of Covid vaccines has increased rapidly in recent weeks. In the United States, an average of 2 million vaccine doses are currently administered each day. At the same time is the number of The reported cases are decreasing. Encouraged by the positive trends, a wave of states have eased Covid restrictions – opening up the possibility for people to venture into restaurants or eateries Night at the cinema. That means many Americans will be looking for something new in their closets.

It’s time for retailers to turn again. It won’t be easy, however. Companies continue to stand in front congested US ports and Shortage of containers, Backlogs of goods that make warehouse shelves with fresh outfits all the more complicated. According to management teams, the shipping delays are between three and four weeks and are associated with higher transport costs.

“Historical volumes, social distancing measures for workers and the lack of drivers to unload goods lead to congestion and significant delays in processing times,” said Ike Boruchow, an analyst at Wells Fargo.

“Sick of equality”

Macy’s department store chain has announced it has a fast work and evening restocking plan as its customers resume more normal activities. Many analysts are counting on a rapid trend reversal in purchasing behavior.

“People have money in their pockets, they are tired of equality and there is going to be an explosion of feel-good shopping,” said Stacey Widlitz, president of SW Retail Advisors. “The weather is turning and people feel positive when they go out again – or even sit in the park in a dress.”

“The nature of people is that they want to feel good,” she added. “You want to feel fresh – especially for the younger generations. It’s your entrance fee to make new contacts.”

Retailers are already taking advantage of this news. Kohl’s website proclaims “The Great Refresh” while Banana Republic advertises “Spring Awakening”. Men’s suit maker Suit Supply’s new ad campaign, alluding to a “new normal”, went viral on social media this week.

However, others are still hedging their bets, Some consumers will likely want to stick to a more casual wardrobe that they have become accustomed to over the past 12 months. Corporations, in turn, might choose to relax the dress code in the office when their workforce returns.

Nordstrom continues to market “Work-from-Anywhere Style” on the home page of its website. Rent the Runway includes part of its mobile app for outfits for Entertaining at Home.

The tween-and-teen clothing retailer american eagle Earlier this week, sales in the current quarter were expected to be the strongest in three years. This depends on the growth of the Aerie brand, which sells work-from-home options like yoga pants, sports bras, pajamas, and lingerie.

Kontoor Brands Meanwhile, CEO Scott Baxter told CNBC that jeans are making a comeback as Americans look for a way to dress up, only slightly more than at home. Kontoor’s brands include denim labels Wrangler and Lee.

“Denim is casual, it’s just … you can wear it, you can wear it,” Baxter said in an interview earlier this week. “When people go back to the office, people think about how they’re going to dress and denim seems like the choice.”

Logistical headaches persist

Retailers don’t just have to worry about measuring demand for resuscitated garments, however. They had logistical headaches for much of the pandemic. And those don’t seem to be letting up, which makes planning for the spring, summer, and back-to-school seasons even more difficult.

Nordstrom found that shipping delays resulted in some of its vacation merchandise not getting to shelves and warehouses on time. to affect fourth quarter results. Work is still in progress to sell this inventory, the company told analysts earlier this week and hopes to get back to normal inventory levels by the second quarter.

Gap also noted Thursday when it reported mixed results for the fourth quarterThis port congestion is expected to continue in the first half of the year. This will lead to increased inventory levels in the second quarter, Gap said.

For Urban, the bigger problem today is getting access to containers for shipping goods, said Frank Conforti, chief operating officer, earlier this week.

“While the ports, especially on the west coast, are absolutely overloaded … and we are seeing two to seven days delay in the ports, the bigger challenge is actually with the arriving ships that have enough containers over in Asia to import products “said Conforti.

The limited availability of truck drivers to move goods across borders from retailers remains another problem, said Dana Telsey, CEO and chief research officer of the Telsey Advisory Group, in an interview with CNBCs on Thursday Sara Eisen.

Companies are unlikely to sort their inventory until just before school starts to meet buyer demand, she said. But like Widlitz, Telsey doesn’t think this will buy into shoppers when they return to stores for a new look anytime soon.

“We haven’t had any apparel spending in over a year,” Telsey said. “I think [people] want to freshen up their wardrobes. “