News
Logistics Recap January 15th – January 21st
Logistics Recap
January 15th – January 21st
Increased use of embargoes ‘a major concern’ for rail regulators
Federal regulators will closely monitor railroads’ use of embargoes following uproar over a major carrier’s move to limit traffic in the upper Midwest.
Surface Transportation Board Chairman Marty Oberman said Thursday that regulators have seen an increasing use of embargoes as a way to control congestion not caused by natural disasters or circumstances out of a railroad’s control.
Read More Here Supply Chain Dive
Lower consumer prices help slow inflation
Consumer prices that took off last year are starting to flatten out as a wave of rising supply-chain costs starts to retreat. The Wall Street Journal reports the trends on store shelves may be another sign that inflation is starting to turn a corner.
Many companies raised their prices substantially last year to offset higher fuel costs, as well as for ingredients, parts and labor. Now, some of those costs are coming down.
Read More Here Supply Chain Brain
Future of Union Pacific program testing 1-person crews uncertain
Union Pacific’s efforts to conduct a pilot program testing a one-person train crew configuration is facing an uncertain future.
UP (NYSE: UNP) wants to test out a train crew arrangement in which an engineer is in charge of moving a train while a grounds-based conductor — which UP calls “expeditors” — would respond to potential problems encountered by the train by driving a vehicle to the problem site.
The current arrangement calls for both a train engineer and conductor to be on a Class I freight rail train.
Geopolitical tensions threaten to impact semiconductor supply chains
In August 2022, China fired missiles around the island as part of a ‘drill’, just a day after US House of Representatives Speaker Nancy Pelosi visited Taiwan. The threat of invasion looms not only over Taiwan, but also poses risks to governments and supply chains around the world. A recent report by Rhodium Group estimates that ‘the global disruption from a Taiwan conflict would put well over two trillion [US] dollars in economic activity at risk, even before factoring in the impact from international sanctions or a military response’.
Logistics Recap January 8th – January 14th
Logistics Recap
January 8th – January 14th
FedEx, Mountain Air Cargo deploys Cessna SkyCourier freighter
FedEx became the first company to launch cargo operations using the Cessna 408 SkyCourier, an anticipated feeder aircraft that allows for the handling of containerized cargo.
Mountain Air Cargo, which operates other feeder aircraft on behalf of FedEx, completed the first revenue flight this month, according to a social media post.
Read More Here Supply Chain Dive
Railway contract with China terminated, Uganda in talks with Turkey
Uganda said it terminated a deal with a Chinese contractor to build a $2.3 billion railroad after it failed to secure Beijing’s financial backing for the project.
The East African nation has been in talks with Yapi Merkezi to take over the development of the project, and expects the Turkish company to submit an expression of interest in weeks, according to Perez Wamburu, Uganda’s project coordinator.
Read More Here Supply Chain Brain
California trucking: Older engines off the road
California’s trucking sector kicked off the new year with an updated set of regulations and a visit from the secretary of labor, with the state’s AB5 independent contractor law as a regulatory backdrop.
The latest step that went into effect on the road to a fleet of zero-emissions vehicles by 2035 is that on Jan. 1, no vehicles with an engine prior to the 2010 year could be on the road. The vehicle itself can be older, as long as it has an upgraded engine.
There are no signals from the market of a squeeze in capacity as a result of the Jan. 1 changeover, which is the latest graduated step that started by taking pre-1994 vehicles off the road at the start of 2015.
Logistics Recap January 1st – January 7th
Logistics Recap
January 1st – January 7th
Port Houston to move forward with container dwell fee in February
A sustained dwell fee at Port Houston will go into effect on Feb. 1 following delays due to software issues.
Containers left to dwell at the Bayport and Barbours Cut Terminal will start accruing fees beginning on the eighth day after the expiration of free time. Shippers will be on the hook for $45 per container per day, port officials said in a release.
Read More Here Supply Chain Dive
China approves Merck’s Covid therapy amid shortage of drugs
China approved Merck & Co.’s COVID-19 antiviral molnupiravir for emergency use, as Beijing seeks to expand access to treatments amid a massive wave of infections following its abrupt pivot away from COVID Zero in early December.
Read More Here Supply Chain Brain
Amazon CEO confirms company is cutting over 18,000 jobs
In November, a report alleged that Amazon (NASDAQ: AMZN) would lay off around 10,000 employees in a round of peak-season job cuts. Now, the figure is confirmed to be significantly higher.
In a Wednesday internal memo that was released publicly by Amazon on Thursday morning, CEO Andy Jassy said that the number of employees affected by the layoffs will ultimately be over 18,000. Jassy added that several teams are being affected by the pullback but that the majority are in the firm’s Stores and People Experience and Technology (PXT) organizations.
Deutsche Bahn prepares for the sale of DB Schenker
Deutsche Bahn is preparing for the sale of its freight forwarding subsidiary DB Schenker as it looks to focus on its core rail business.
The rail group said today that it has assigned its management board to examine and prepare the case for a potential sale of up to 100% of its shares in DB Schenker, the world’s fourth-largest airfreight forwarder.