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Saturday, August 13, 2022

This Week in Logistics News (November 27 – December 3)

Black Friday is in the books, and unsurprisingly, it was a big one. According to the annual survey by the National Retail Federation (NRF) and Prosper Insights & Analytics, close to 180 million Americans shopped during the five-day holiday shopping period, from Thanksgiving to Cyber ​​Monday. It surpassed initial estimates of more than 21 million buyers. This number compared to 186.4 million buyers in 2020 and is consistent with the average of the last four years. The surprising thing is that the number of people who bought in stores actually increased this year. Retailers saw an increase in surfer traffic, with about 104.9 million shoppers visiting stores, compared to 92.3 million in 2020. The total number of online shoppers dropped to 127.8 million from 145.4 million last year. Black Friday remains the most popular day for shopping in stores, with 66.5 million shoppers, followed by 51 million shoppers on Saturday for small businesses. Top gift purchases over the weekend included clothing and toys, gift cards / certificates, books / music / movies / video games and electronics. It’s definitely a lot of shopping. I feel out of place that I did not participate. And now for this week’s logistics news.

The ongoing Cubid epidemic has undoubtedly been a boon to e-commerce. With the proliferation of the omicron version, it looks like online shopping will only grow again. As a result, the momentum of shipments has fueled demand The area of ​​the last kilometer. Over the past 20 plus months, retailers have continued to pay more to access logistics assets that serve as a terminus for packages arriving at the customer’s doorstep. Retailers are particularly keen on the area near highly populated areas where online orders can be placed on trucks and vans for local delivery to their final destinations. Retailers are facing a shortage of warehouses in the final stages near major cities; And as more companies promise to arrive the same day or even two hours, such space increases in demand and about. According to a report by real estate company Jones Lang LaSalle, more than half of U.S. industrial leases in the third quarter included users searching for an area of ​​less than 100,000 square feet, often a sign of a last-mile facility. Overall, manufacturing rents in the third quarter rose 7.1 percent from a year earlier, while vacancy rates fell to a new low of 4.3 percent.

We wrote about Amazon’s move to become a standalone shipping service, they reduce its reliance on UPS and FedEx and they supply merchandise to other retailers here quite a bit. According to the company, this move pays off. Earlier this week, Dave Clark, CEO of Amazon’s global consumer business, said the company was set to become the largest U.S. Package delivery service In early 2022, it overtakes veteran shipping competitors UPS and FedEx. Amazon now monitors thousands of last-mile shipping companies that provide exclusive packages for Amazon, as well as a growing network of aircraft, trucks and ships to accommodate the growing network of warehouses and air centers. This continued growth of its internal network is definitely helping because capacity constraints are affecting the holiday season.

Ongoing Lack of truck driver Has not disappeared, as more drivers retire, and companies continue to struggle to recruit a younger workforce. How severe is the shortage of drivers? According to Chris Sapir, president and CEO of the American Trucking Association (ATA), the trucking industry currently lacks 80,000 drivers. Of freight from what they do today.According to Sapphire, “Without substantial action, by 2030 and in current trends, the shortage of drivers could increase to 160,000. In all, nearly a million new drivers will have to undergo training and payroll over the next decade to keep pace with growing consumer demand and an aging workforce. ”This is a sobering thought.

Mexico Has announced a temporary return of 15 per cent import caps on certain types of steel that will start next year, with the aim of boosting the industry after the downturn caused by the corona plague. Tariffs will begin in June 2022 and gradually disappear by the end of 2024, the government said in a presidential decree published in the official newspaper Monday night. Mexico has previously imposed tariffs in 2018 following former US President Donald Trump’s 25 percent national security tariffs on “Article 232” on steel imports. Of North America, amended and renamed the United States-Mexico-Canada Agreement, was suspended after the United States withdrew taxes on its trading partners .. The current index applies to more than 100 steel products.

There has been an abundance of shortages over the past 20 plus months, including toilet paper, vaccine vials, semiconductor chips, ketchup packages and even test monkeys. There is a new shortage at the door, and this could affect the holiday season. And no, I’m not talking about toys. Wine and liquor producers face a Shortage of glass bottles. The reason is the same as for many of the recent shortages, including malfunctions in ports, shortages of truck drivers and work problems in warehouses. While wine and many spirits will be a generic bottle, this shortage becomes more problematic for those companies that have a unique bottle design to differentiate it from the competition. This is related to a continuing trend from the Cubid epidemic: demand is rising. There was a shift from dining to consumption at home which led to an increase in alcohol sales.

Regulators in Mexico have approved The Canadian Pacific of $ 31 billion There are plans to acquire Kansas City Southern and create a railroad that connects Mexico, Canada and the United States. The deal may close as early as mid-December if the shareholders of the two companies approve it. Kansas City Southern will then be held by a voting fund while the U.S. Transportation Board will conduct its lengthy review of the deal, but its shareholders will receive payment immediately. The $ 31 billion deal includes 2,884 CP shares and $ 90 cash for each Shareholder and Canada Pacific will take on about $ 3.8 billion of Kansas City Southern debt. According to Canadian Pacific CEO Keith Krill, “This historic combination will add capacity to the U.S. rail network, creating new competitive transportation options. “Will support North America’s economic growth and provide important benefits to customers, employees and the environment.”

The buzz around autonomous trucks and robots has reached new heights recently. For a truck yard a few miles north of Denver, the dream met reality. Gold Outrider, CO Operates a truck yard in Brighton, where a fleet of robotic trucks moves semi-trailers between assigned locations and warehouse doors for 16 hours each day, while some humans guard. Here’s how the yard works. Human truck drivers drop off semi-trailers that contain everything from food to electronics to toilet paper in a warehouse yard. Then, an outrider robotic truck takes over. Using proprietary software, a person stands in line for a truck to retrieve the specific trailer. The robotic truck then travels through the yard to the location of a specific trailer, relying on a combination of sensors. Once positioned, a robotic arm extends from the rear of the truck. It scans the surface of the trailer before connecting a pressurized air hose, which disconnects the parking brakes of the trailer. The arm then attaches the trailer to the truck and the truck pulls the trailer across the yard to the warehouse door. Once connected to the platform, humans take over again, unload goods and process them for delivery.

And finally, e Federal Vehicle Safety Administration (FMCSA) has expanded the regulatory waiver related to the allowed working time of trucks, while addressing public health concerns. The waiver related to the maximum driving time of commercial drivers for property-bearing vehicles has been extended until February 28th. FMCSA explained, “Although the number of COVID-19 cases has begun to decline in the US due to widespread advances in vaccines, ongoing problems resulting from COVID-19 continue to affect the US including effects on supply chains and the need to ensure ability to respond to versions and increase Potential in infections. “

That’s all for this week. Enjoy the weekend and the song of the week, Friday I’m in love By the Cure.


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