With a challenging harvest, ongoing industry headwinds, and the recent resolution of the US election, the world is still adjusting to what has become a continuously evolving “new normal” since COVID-19. The supply chain now braces for potential uncertainties surrounding a new administration. 

Concerns about rising fuel expenses are becoming more pronounced, with diesel prices experiencing a modest increase of approximately three cents on average across the US, as reported by the EIA. This uptick is causing anxiety among businesses that rely heavily on transportation to maintain their supply chains. On a more positive note, there is significant relief in international shipping. The cost of ocean freight from Asia to the US has seen a remarkable decline, with container shipping fees plummeting by $1,000 to $2,000.

The International Longshoremen’s Association recently conducted a brief but impactful three-day strike at ports along the East and Gulf Coasts. This work stoppage concluded with a tentative wage agreement, extending the existing contract until January 15th. Jonathan Gold, Vice President for Supply Chain and Customs Policy at the National Retail Federation (NRF), warns that although this strike was resolved quickly, the potential for a more prolonged strike looms if a new labor contract is not secured by January. In anticipation of possible future disruptions, companies are taking pre-emptive measures. Many are expediting their shipments and redirecting cargo to West Coast ports as a strategic move to avoid expected congestion and delays that could arise from ongoing labor negotiations. These proactive steps reflect the ongoing uncertainty in the supply chain landscape.

A persistent issue is the ongoing closure of glass furnaces. O-I has shuttered its Illinois plant and R&D center, adding pressure on glass supply. However, there is some good news: Arglass has opened a new facility with a beer bottle-focused furnace in Valdosta, Georgia. With significant leadership changes among major glass manufacturers, it is yet to be seen if these new executives will bring fresh strategies or continue with the status quo.

While the election’s impact on tariffs remains unclear, it’s essential for anyone sourcing international glass to consider alternative US suppliers or secure guaranteed imports, especially given the uncertain trade landscape with key countries like China and Mexico.

Bottled Tidbits - Meet Sir Kenelm Digby, a true historical maverick. Haunted by the memory of his father, executed as a co-conspirator with Guy Fawkes, Digby carried what he called a “stain on his soul.” But his life was anything but ordinary. As a licensed privateer (a pirate with a royal seal of approval), he escaped a forced marriage to a French princess and poured his energy into an eclectic array of pursuits. A natural-born polymath, Digby wrote a book of bizarre remedies, including a plague “cure” mixing sherry with sheep stomach contents and a headache remedy – “Viper Wine” with real venom – which tragically proved fatal for his wife.

Digby’s curiosity only grew, leading him to co-found the Royal Society. Teaming up with Admiral Sir John Mansell, a scheming MP and coal magnate, the two orchestrated a crafty plan. Mansell passed a law that banned wood-fired furnaces to “save trees for the Royal Navy,” conveniently driving the glass industry to rely on his coal. Digby developed a new glass formula to meet the coal's higher heat, resulting in far sturdier bottles.

Meanwhile, fellow Royal Society member Christopher Merret was experimenting with wines, discovering that adding sugar and molasses made wine sparkle. With Digby’s durable bottles, Merret’s sparkling wine idea became feasible, setting the stage for the world’s first sparkling wine. Together, Digby and Merret’s innovations reshaped wine forever, creating a legacy that still sparkles today.

Check out Ciatti's November California report here: https://ciatticompany.substack.com/p/ciatti-california-report-november.