What’s next for renewable energy supply chains?
- With a Republican win in the U.S. presidential election, we anticipate a policy agenda that prioritizes U.S. economic interests and energy independence, focusing on high tariffs on Chinese goods and the rolling back of regulations to promote fossil fuel sectors. An energy policy focused on increases in production and exploration of oil would benefit domestic manufacturing and truck markets. Meanwhile, an increase in tariffs would likely impact the import of goods related to renewable energy, such as solar panels.
- Businesses are anticipating a reduction in regulations with Trump’s promise to “abolish ten existing regulations for every new one.” The stated aim is to shrink the administrative state, lower business costs, curb inflation, and stimulate the domestic economy.
- Energy companies are diversifying their product portfolio, potentially impacting the heaviest lanes and commodities shipped. Resulting oil and gas market volatility or a shift toward solar and renewable energies would impact flatbed markets.
- The congestion at U.S. West Coast ports, exacerbated by the East Coast and Gulf Coast dockworker strike, rerouted shipments, and a pull-forward of inventory before new tariffs, is causing persistent delays. Rail car shortages are straining truckload capacity, impacting renewable energy supply chains.
- With fewer passenger flights from Asia to the United States and cargo freighters increasingly occupied with ecommerce, charter flights will need to be utilized more for energy project cargo, leading to higher project costs.
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