Gas Prices Fall Below $4 for First Time Since March
The national average price for a gallon of gas fell below $4 on Thursday for the first time since early March, according to AAA data. The milestone was reached after more than 55 consecutive days of declining prices at the pump. The national average price for a gallon of gas, which stands at $3.99, has fallen more than 20% since it reached a peak of $5.01 in mid-June, according to data from AAA.
In California, the state with the highest average price, a gallon of gas costs $5.38, though that price has fallen more than 11% over the past month. In Texas, the state with the lowest average gas price, a gallon costs $3.49, data showed. Despite the recent price dip, the cost of gas remains elevated, standing roughly 25% above a $3.18 national average one year ago.
White House Port Envoy Says Nation’s Entire Supply Chains Need 24/7 Operations, Not Just Ports
All parts of the US supply chain — not just its ports — need to move to round-the-clock operations to alleviate snarl-ups and reduce overall costs, President Joe Biden’s supply-chain czar said.
“If only you or only a terminal goes to 24/7, that’s interesting,” Stephen Lyons told Port of Long Beach Executive Mario Cordero in an interview Tuesday. “But if everybody — including the warehousing community, all the other modes of transport — moved to 24/7, or something more than today, that makes logical sense that you could move much more cargo in the same period of time.”
During the height of the supply-chain crisis last year, California’s twin ports of Los Angeles and Long Beach announced 24-hour longshore operations and extended gate hours for truckers. But even as backlogs have eased somewhat, round-the-clock operations at terminals remain scarce, making US maritime locations less efficient than many others worldwide.
Lyons said more fluidity is key to improving the movement of cargo. “It’s all about restoring consumer confidence and bringing costs down.”
Tankers See Strongest Market in 25 Years
Tankers hauling everything from diesel to gasoline are experiencing a period of strength not seen in at least 25 years, buoyed by robust demand for fuels and stretched sailing distances after Russia’s invasion of Ukraine. So-called product tankers have earned more than $40,000 a day for the past 14 weeks, according to figures from Clarkson Research Services Ltd., a unit of the world’s largest shipbroker.
Disruption to trading routes since Russian forces attacked Ukraine in late February caused oil prices to soar this year. While crude prices have begun to fall back amid growing fears of a recession, for now, fuel tankers have benefited from one of the tightest refined product markets on record. Analysts say a further warping of Russian flows could add to the surge later this year.