Raphael Stevens

State of Freight

Port of Oakland is reducing its landlord free dwell time for containers from seven to four days before tariffs are applied.
“We think the rates need to be higher to encourage cargo owners to move their cargo faster,” the Port of Oakland executive director tells CNBC.
The CNBC Supply Chain Heat Map shows Port of Oakland has the longest wait time for import container pick up.

In an aerial view, shipping containers sit on the dock at the Port of Oakland on May 20, 2022 in Oakland, California.
Justin Sullivan | Getty Images

The Port of Oakland has had enough of the long-dwelling import containers clogging its ports.
On July 1, Oakland is reducing the tariff-free time from seven days to four days to reduce congestion on its marine terminal, and may raise penalties for containers that sit for too long.

“We think the (demurrage) rates need to be higher to encourage cargo owners to move their cargo faster,” said Danny Wan, executive director for the Port of Oakland.
The Port of Oakland is not involved with assigning demurrage rates. The late fees are charged by both the shipping lines and the marine terminals when a container is not moved out of the port within the free days offered.
“Our belief is that the rates are still low because customers are still using the terminals as storage facilities,” Wan said.
If the rate structure is changed, Port of Oakland will join the two terminal operators at the Northwest Seaport Alliance of Seattle and Tacoma that have been charging long-dwell fees since November 2021. The ports of Los Angeles and Long Beach announced surcharges in October 2021, but have continued to delay the penalty citing progress in the reduction of containers.
Container pick-up is just one of the problems the Port of Oakland is facing. The port’s Central Valley pop-up yards are currently experiencing a shortage of container-handling equipment.

According to the CNBC Supply Chain Heat Map, the port is experiencing the longest dwelling times for import containers.

“The average dwell in Oakland terminal is now 9-12 days,” Wan said. “It used to be 3-4 days. The 9-12 days incorporates rail dwell time because all rail cargo needs to be moved off the terminal to a near-dock rail facility.” 
This rail wait is something many of the West Coast ports are facing. Port of Los Angeles executive director Gene Seroka expressed his frustration to CNBC.
“60% of the aging containers are designated as rail cargo,” Seroka said. “This needs improvement. Containers that move out by truck are doing well. Aggregate, long dwell numbers at the POLA are higher than we saw in February, but not close to last fall.”
Both Union Pacific and BNSF service the West Coast ports.
In an email, Union Pacific told CNBC via email that it moves containers from the ports to inland ramps so end receivers can pick them up for further distribution. “We have steadily increased our shipments from the ports but are beginning to see elongated dwells at our inland terminals and increased chassis street time due to a lack of dray and warehouse capacity. It is important that end receivers consume these shipments in a timely manner so inland terminals remain fluid and we can continue to move containers from the ports.”
BNSF, which is a subsidiary of Berkshire Hathaway, did not respond to a request for comment.
Wan told CNBC there is no shortage of labor. “Thanks to the ILWU, we actually increased our dockworker workforce by 16 percent last year,” he said. “Our biggest challenge is to reduce the dwell time of containers at the port,” Wan added. ” If we do not move the containers out quicker we may have vessel congestion.” More

Whether you are covered when you travel on U.S. soil may depend on whether you have basic Medicare or an Advantage Plan.
Generally speaking, Medicare does not cover any medical costs outside of the U.S. and its territories.
Some Medigap plans offer coverage for travel outside the U.S., although they come with limitations.
Travel insurance may be appropriate, depending on your situation.

Tom Merton | Getty Images

If you’re a retiree on Medicare and feel the itch to travel, be sure you know whether your insurance plan can go with you.
Whether you want to hit the road for a U.S.-based trip or head overseas, coverage at your destination hinges on the specifics of your Medicare plan. The nature of your care — routine or emergency — also may play a role.

Just over a quarter of Americans (28%) say they’ve fallen ill or been hurt while vacationing, according to a recent study from personal finance website ValuePenguin. Among that group, bacterial or food-borne illnesses were most common (33%), followed by respiratory illnesses (28%) and bodily injuries (24%). Additionally, 12% of them said they contracted Covid while on vacation.
More from Personal Finance:100 million U.S. adults have health care debt, research showsCost to finance a new car hits a record $656 per monthSome medical debt will soon disappear from credit reports
In other words, it’s worth knowing what to expect from your Medicare coverage so there are no surprises if you need to visit a doctor or other health-care provider while away from home.

With basic Medicare, U.S. travel is straightforward

Basic Medicare is Part A (hospital coverage) and Part B (outpatient care). Beneficiaries who choose to stick with that coverage — instead of going with an Advantage Plan — typically pair it with a stand-alone prescription-drug plan (Part D).
If this is your situation, coverage while traveling in the U.S. and its territories is fairly straightforward: You can go to any doctor or hospital that accepts Medicare (most do), whether for routine care or an emergency. It’s when you venture beyond U.S. borders that things get trickier.

Basic Medicare does not cover travel outside the U.S. except in limited circumstances. Those exceptions include when you’re on a ship within the territorial waters adjoining the country — within six hours of a U.S. port — or you’re traveling from state to state but the closest hospital to treat you is in a foreign country (i.e., you’re in Canada while heading to Alaska from the 48 contiguous states).
Also be aware that Part D plans won’t cover medications filled outside the U.S., said Elizabeth Gavino,  founder of Lewin & Gavino and an independent broker and general agent for Medicare plans.
“Be sure to bring enough medication with you,” she said.

A Medigap policy might help abroad

If you have a supplement policy — aka “Medigap” — alongside basic Medicare, it could give you some coverage abroad.
Those policies, which are generally standardized across states, offer some coverage for the cost-sharing that goes with basic Medicare, such as copays and co-insurance. 
Some Medigap policies include some coverage outside the U.S. Plans C, D, F, G, M and N have up to $50,000 lifetime maximum benefits, with the beneficiary paying 20% of costs after a $250 deductible, and you are covered only for the first 60 days of your trip. 

This coverage applies only to medically necessary emergency care and there may be other restrictions, according to the Centers for Medicare & Medicaid Services.
Some older Medigap policies that beneficiaries still have — E, H, I and J — also come with travel coverage abroad, Gavino said.
Be aware that Medigap plans come with their own rules for enrolling, and policies can be pricey depending on where you live, your age and other factors. For example, for a 65-year-old female, the least expensive Plan G policy in Dallas runs just under $100 monthly compared with about $278 in New York, according to the American Association for Medicare Supplement Insurance.

Check coverage details on Advantage Plans

For beneficiaries who get their Medicare benefits — Parts A, B and typically D — through an Advantage Plan, it’s worth checking to see if your plan is among those that include coverage for emergencies abroad.
And even if you aren’t planning to leave U.S. soil, you should see what your plan would cover. While Advantage Plans are required to cover your emergency care anywhere in the U.S., you may be on the hook for routine care outside of their service area. 
“With a traditional HMO plan, when you travel outside the network, you have emergency coverage only,” said Danielle Roberts, co-founder of insurance firm Boomer Benefits.

“With a PPO, you have both coverage for emergencies and out-of-network coverage for non-emergencies [but] will pay more for these out of network services,” Roberts said.
There also are hybrid plans that may allow limited out-of-network treatment under certain circumstances, she said.
It’s possible that your Advantage Plan will disenroll you if you remain outside of their service area for a certain length of time — typically six months. In that situation, you’d be switched to basic Medicare.

Important tips for traveling overseas

If you do have some coverage overseas, you may need to pay out of pocket and be reimbursed, Gavino said.
“Foreign hospitals will not file a Medicare claim for you,” Gavino said. “Get an itemized bill to submit for reimbursement from your plan.”
Additionally, depending on your overseas coverage and your level of comfortability with it, you may want to purchase a travel medical plan.

Foreign hospitals will not file a Medicare claim for you.

Elizabeth Gavino
Founder of Lewin & Gavino

Such options are priced based on factors including your age, and the length of the coverage. You can get coverage for a single trip of a couple weeks or several months, or get a multi-trip policy, which could cover a longer period.
The plans typically come with a deductible — say, $250 or more — and coverage could range from about $50,000 in maximum benefits to upwards of $1 million or more. Policies average between $40 and $80, although higher coverage limits and longer coverage terms typically increase the cost, according to insurance company Travelers.
“Be sure to find out if the plan covers pre-existing conditions and Covid,” Gavino said.

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“Top Gun: Maverick” rocketed to $1 billion at the global box office over the weekend, signaling some momentum for the domestic box office.
A string of solid theatrical performances coupled with a strong slate of upcoming films has left most box office analysts optimistic.
But inflation threatens to slow the rebound as moviegoers weigh rising prices.

Tom Cruise in “Top Gun: Maverick”
Source: Paramount

“Top Gun: Maverick” rocketed to $1 billion at the global box office over the weekend, setting a new career milestone for star Tom Cruise and signaling some momentum for the domestic box office as it heads into the second half of the year.
The Paramount and Skydance film is the second feature to reach the $1 billion benchmark since March 2020, when the Covid pandemic halted production and shut down theaters. Box office analysts are hanging hopes for a strong second half of 2022 on the domestic ticket sales for “Maverick” — around $520.8 million of its total haul.

As of Sunday, the domestic box office has generated $3.63 billion in ticket sales, up more than 263% compared with last year. While the tally still lags 2019, down about 33%, a string of solid theatrical performances coupled with a strong slate of upcoming films has left most box office analysts optimistic about future ticket sales, despite economic pressures.
“Even with a third-less content, summer 2022 is rolling along as audiences and theaters have found their cinematic groove,” said Jeff Bock, senior analyst at Exhibitor Relations. “With five films in double digits this past weekend, it’s a surefire sign that momentum is on the side of studios again.”
Over the weekend, “Top Gun: Maverick” and “Elvis” each brought in around $30 million domestically, “Jurassic World: Dominion” added $26.4 million, Toy Story spin-off “Lightyear” tallied $17.6 million and “The Black Phone” premiered with $23.7 million, according to data from Comscore.
“The issue this summer, is that after the first couple weeks of July, and especially August, will the movie momentum continue with largely original films?” Bock said. “That’s going to be key for the industry. Look, we know blockbuster IP is back, but that was never really in question since ‘Spider-Man: No Way Home.’ What will be very telling, is how films perform in late-July and August.”
Experts foresee the domestic box office reaching between $7.5 billion and $8 billion this year, about 30% to 35% off the $11.4 billion generated in 2019 — but that’s only if non-franchise films can drive incremental tickets sales between big budget releases and moviegoers don’t get scared away by rising prices.

While the movie theater biz has long been considered “recession proof” because ticket prices are traditionally lower than other forms of entertainment, consumers could cut back on cinema visits as other costs balloon. Inflation is surging at rates not seen in four decades, according to recent government data.
“The effects of rampant inflation on the pocketbook may prove to be the biggest challenge for the industry as audiences who are naturally becoming more selective on what they spend their hard-earned money will be more finicky than ever when it comes to the decision head to the multiplex,” said Paul Dergarabedian, senior media analyst at Comscore.
Audiences will have a lot of content to choose from in the coming months. On the docket is Disney and Marvel’s “Thor: Love and Thunder” and “Black Panther: Wakanda Forever” as well as Warner Bros. and DC’s “Black Adam” and “Shazam: Fury of the Gods.” Universal is set to release “Minions: The Rise of Gru” as well as Jordan Peele’s “Nope,” and Sony has the hotly anticipated “Bullet Train.”
Capping off the year will be Disney’s “Avatar: The Way of Water,” the first planned sequel to the highest-grossing film of all time.
“There is no greater sign of a return to normalcy for the box office than a movie marketplace replete with a diverse lineup of films all jockeying for position on the weekend chart delivering a combination of hits and misses,” Dergarabedian said.
Already 2022’s slate is outperforming features released in 2021, which saw Disney’s “Shang-Chi and the Legend of the Ten Rings” as the highest-grossing domestic release of the year, with $225 million in ticket sales, until Sony’s “Spider-Man: No Way Home” nabbed $573 million in late December.
“This summer is generally meeting, if not exceeding, expectations to that end with a robust release schedule that isn’t depending on just one film,” he said. “There’s something for everyone in theaters right now, and high comfort levels are coinciding to produce the latest progression of moviegoing’s rebound. Theaters are back and thriving.”
“Maverick” is the highest-grossing domestic title for the year, followed by “Doctor Strange in the Multiverse of Madness,” which generated $409 million in the U.S. and Canada, then “The Batman” with $369.3 million and “Jurassic World: Dominion” with $303 million.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC. NBCUniversal is the distributor of “Minions: The Rise of Gru,” “Nope,” “Jurassic World: Dominion” and “The Black Phone.”

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CVS is removing its earlier purchase limit on emergency contraceptive pills.
The chain said that “sales have since returned to normal and we’re in the process of removing the purchase limits.”
The removal will take place over the next 24 hours both in stores and online.

CVS is removing the purchase limit it had put on emergency contraceptive pills following last week’s Supreme Court ruling, the chain said Tuesday.
The reversal comes as sales have dipped back to normal levels and will be made both in stores and online over the next 24 hours, CVS said.

The limit on the emergency contraceptives, commonly known as morning after pills and sold under names including Plan B, had gone into effect on Saturday. It prevented customers from buying more than three at a time to “ensure equitable access,” the drug store chain said earlier. The cap was put in place after the chain said it experienced a “sharp increase” in sales of the pills following the Supreme Court’s Friday decision to overturn the landmark ruling that had constitutionally protected the right to abortion for nearly 50 years.
As of late Tuesday, a purchase limit of three was still in place online for both Plan B One Step and Aftera on the chain’s site.
A limit on emergency contraceptives was also in place at Amazon, the company confirmed to CNBC. A Walmart representative said Tuesday that many of the chain’s products have online purchase limits in place that may change “during times of fluctuating demand.” Walgreens does not have a purchase limit in place for emergency contraceptives, a representative said Monday.
Emergency contraceptive pills are different from medication abortion, or abortion pills, which require a prescription and involve taking two different pills within 10 weeks of pregnancy, according to the Kaiser Family Foundation.
–CNBC’s Melissa Repko and Annie Palmer contributed to this report.

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CNBC’s Jim Cramer on Tuesday said that Nike stock is more investable than Wall Street might believe, even after a mixed quarter.
“I see something with much better risk-reward than it’s getting credit for, and I would indeed start a position tomorrow if it were to go down from here,” the “Mad Money” host said.

CNBC’s Jim Cramer on Tuesday said that Nike stock is more investable than Wall Street might believe, even after a mixed quarter.
“I’m not going to tell you this was a great quarter. … But, and this is a big but, I don’t think the results were as bad as today’s 7% decline [suggests],” the “Mad Money” host said. “The long-term story remains intact,” he continued.

“I think the downside risk is baked into the stock, and any potential upside is absolutely not. That doesn’t necessarily mean Nike’s a screaming buy here. But I see something with much better risk-reward than it’s getting credit for, and I would indeed start a position tomorrow if it were to go down from here,” he added.
Nike reported an earnings and revenue beat in its fourth quarter, based on a survey of analysts by Refinitiv. The company said it expects first-quarter revenue to be flat or have a slight increase from the year before, and projects its full-year revenue to grow by low double-digits.
The company is facing a number of headwinds, including supply chain snarls, Covid lockdowns in China and wavering consumers in the U.S.
Total sales fell in North America and suffered a bigger drop in Greater China, which saw total sales tumble 19% from a year earlier. CEO John Donahoe said in Nike’s earnings call that the company is “taking a medium- to long-term view, and we’re as confident today as we ever have been.” 
“At the moment, Nike’s biggest problem is China. But the China commentary was …  more bullish than not,” Cramer said.

He added that while analysts have cut price targets for Nike, the lowered targets represent a change in the market that is bigger than the company.
“Last week, I told you that the earnings estimates in the aggregate were too high and needed to come down before the market could find a sustainable bottom. This is what that looks like,” he said.
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