U.S. President Trump Agrees to Limited Trade Deal with China
After U.S. and Chinese negotiators came to an agreement on a phase-one Trade Deal, U.S. President Trump has officially agreed to those terms. The U.S. has promised to roll back existing tariff rates by roughly half on $360 billion in Chinese goods and cancel the new tariffs that were set to take effect December 15th. In return, China has agreed to boost purchases of U.S. farm goods to $50 billion in 2020. China will also increase imports from the U.S. for energy products and other goods. If China fails to comply to the deal, the tariffs are expected to snap back in place. The phase-one deal also includes measures on improving intellectual property protection, open the Chinese financial services market and prevent currency manipulation, which would lead into a phase-two deal.
The announcement of a phase-one deal caused energy markets to jump slightly. Therefore, West Texas Intermediate (WTI) rose two percent and wholesale diesel prices rose 2.41¢ or roughly one percent.
Celadon Files for Chapter 11 Bankruptcy and Shuts Down All Operations
Celadon Group and its 25 affiliate companies filed for Chapter 11 bankruptcy on Monday morning and ceased operations immediately. The company did however work to get existing loads delivered before completely shutting down. Celadon has roughly 3,300 trucks and an even greater trailer pool reaching nearly 10,000. The company has almost 4,000 employees and is the eleventh largest full truckload carrier by revenue. Celadon CEO Paul Svindland mentioned multiple factors causing the bankruptcy, mainly attributing the demise to the financial scandal uncovered in 2017 and its debts.
Top Energy Stories
In early trading Thursday, the oil giant’s share price on Saudi Arabia’s Tadawul exchange rose 8% to 38.15 riyals ($10.30), giving the oil giant a market capitalization of $2 trillion. That was up from a $1.7 trillion valuation set during the company’s initial public offering, the world’s largest ever.
America’s hottest oil-drilling regions—such as this one at the heart of the Permian Basin—are seeing their economies soften as shale producers slash spending, leading to emptier hotels, choosier employers and less overtime for workers.
Top Freight Transportation Stories
Celadon Group and its 25 affiliate companies filed for Chapter 11 bankruptcy Monday morning in the Delaware district of U.S. Bankruptcy Court, according to court documents. The company will cease operations “effective as of today,” according to a press release, but is working to get existing loads off the road.
A Silicon Valley startup has completed what appears to be the first commercial freight cross-country trip by an autonomous truck, which finished a 2,800-mile-run from Tulare, Calif., to Quakertown, Pa., for Land O’Lakes in less than three days. The trip was smooth like butter, 40,000 pounds of it.
A “messy middle” period of new alternative-fuel technology trials has already begun, a new report says. In a couple of decades, fleets will be moving freight in a zero-emissions mode both profitably and productively, it predicts.
Top Economic Stories
President Trump has agreed to a limited trade agreement with Beijing that will roll back existing tariff rates on Chinese goods and cancel new levies set to take effect Sunday as part of a deal to boost Chinese purchases of U.S. farm goods and obtain other concessions, according to people familiar with the matter.
House Democrats have struck an agreement to support the new U.S. trade deal with Mexico and Canada, Rep. Henry Cuellar said Tuesday, marking a victory for President Trump who ran for office in 2016 on a pledge to renegotiate or terminate the North American Free Trade Agreement.
The Federal Reserve held its benchmark interest rate steady and signaled no appetite to raise it anytime soon. After lowering rates at their three previous meetings to guard the U.S. economy from the effects of trade tensions and a global slowdown, Fed officials on Wednesday indicated comfort with leaving policy on hold through next year while keeping an eye on those risks.