The Freight Crisis

Good morning, Nerders. It’s Monday, July 29th. In today’s newsletter, we cover:

• Which brands are at risk from the Red Sea attacks

• America’s tipping habits

• 7-Eleven uses classical music to stop crime?

TODAY’S STORY

The Red Sea, a critical passageway for 30% of the world's container traffic, is currently facing a shipping crisis of unprecedented magnitude.

The recent conflict in the Middle East has led to several attacks on commercial vessels. The group most associated with these attacks is Yemen’s Houthi militant group. This string of attacks has forced ships to take longer, more expensive routes to transport goods.

According to freight market tracker Xeneta, the average cost to move a 40-foot container between Asia and northern Europe increased to $6,855 in late June, up 110% from the two months prior and nearly five times the price from a year ago.

Which brands could be impacted: Wayfair, Best Buy, Beyond Inc. (formerly Overstock), and RH (formerly Restoration Hardware) could be the most at risk from the prolonged crisis because of their “elevated global sourcing exposure.” Meanwhile, brands like Home Depot and Lowe’s are less at risk due to their domestic and close-to-home sourcing strategies.

With no end to the conflict in sight, it’ll be interesting to see how companies get creative with their supply chains in order to maintain their pricing for consumers and their own margins.

DATA BYTES

• Tipping is a good indicator of the economy: Americans are tipping less in 2024, a sign of reduced spending to come

• This is bad news for service workers—6 in 10 say they rely on tips for more than 30% of their income

OUR PICKS

Here are today’s recs to help you live a smarter life…

1. The next generation of gaming.

Thrilling new worlds come to life in uniquely immersive and emotional ways with PlayStation VR2 Sense technology. $200 off for a limited time.*

2. Cool off this summer with a cold treat :)

Turn almost anything into ice cream, sorbets, milkshakes, and more.*

3. The ChomChom Roller!

The ultimate pet hair roller, now available in black, for effective dog and cat hair removal.*

#SHORTS

7-Eleven uses classical music to stop crime?

@boringbusinesskieran

Why 7-Eleven plays classical music // Make sure to follow me to keep up with the latest business stories and trends~ #business #7eleven #c... See more

Watch on: TikTok, YouTube, Instagram

PREVIOUS STORIES

• Airbnb’s Olympic Strategy — How Airbnb is using Olympic demand to draw in new hosts.

• Tesla’s Cybertrucks — A marketing marvel or a financial flop?

• Business Travel, We're Back — “We missed you” signed airlines, hotels, and travel agencies.

• Electricity Prices — Prepare to pay more for less-reliable electricity…

• Japanese 7-Elevens — 7-Eleven is refining its business amid underlying trends in the U.S. convenience store market, drawing inspiration from its Japanese stores.

To read the web version of previous stories, click here

If you have any comments or feedback, just respond to this email.

Thanks for reading,
Kieran & Justin Ryan