The Daily: April 26, 2022

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Good morning. Still waiting on those electronic parts? You might be waiting for a long time.

War, pandemic, and record inflation have the supply chain hanging on by a thread. The continuous supply chain issues at the beginning of the quarter suggest that there is little relief to be had until 2023 for many goods. Pricing and delays are expected to continue throughout the year.

Check out today’s featured article from DC Velocity for a summary of the market’s 2022-2023 predictions. ☕️

Containers on a port, stacked along a pink skyline.

“Remember why you started.”

-Unknown


Today’s Featured Article:

Prices and delays for electronics parts could stretch into 2023 | DC Velocity

“Tight conditions in the global supply chains for electronics parts and components will continue well into 2023 as buyers experience “grim” challenges such as low supplies and high costs, according to the electronics industry analyst firm Supplyframe.”

READ COMPLETE DC VELOCITY ARTICLE

The Latest On…

Ports 🚢

To boost exports, port logistics must improve - The Hindu BusinessLine

“Performance index based on 11 parameters shows ports in the east and south are lagging.”

Container Shipping By the Numbers - Inbound Logistics

“Graphic displaying the transport of goods via ship has been around for centuries, gaining massive efficiencies in the 1950s when Malcolm McLean invented containerized shipping.”

Montreal Port’s Pitch to Shippers: No Waiting | Transport Topics (ttnews.com)

“The head of Canada’s second-biggest port has a supply chain sales pitch few of his peers in the global shipping industry can match: zero wait time at sea for container traffic.”


Maintenance & Repair 🧰

How to unlock more uptime with eDVIRs and CMMS | Fleet Maintenance

“From electronic DVIRs to maintenance management platforms, fleets have plenty of digital tools to create proactive strategies to remedy downtime and driver dissatisfaction.”


Warehousing 📦

New toaster late? It’s all the fault of the Midlands’ logistics golden triangle | Torsten Bell | The Guardian

“Figures reveal record £5bn orders for new warehousing to meet soaring demand from UK online shoppers".”


Trucker’s Lounge 🧢

Faulty winning lottery ticket disappoints trucker (cdllife.com)

“A truck driver lost out on what he thought was a winning ticket in North Carolina earlier this month.”


Business Strategy 💡

Cummins Files for Possible IPO of Filtration | Transport Topics (ttnews.com)

“Cummins Inc. announced its filtration business confidentially submitted a draft registration statement with the U.S. Securities and Exchange Commission for a proposed underwritten initial public offering in the United States.”

Landstar expects trailer fleet growth in tight market will come at 'a premium' | Transport Dive

“Landstar grew its average trailer fleet size by 11% in Q1 in response to heightened trucking demand, CFO Fred Pensotti said in an earnings call Thursday.”


Fuel ⛽️

Five actions Biden has taken in response to high gas prices | The Hill

“Gas prices are both a top concern for American consumers and a consistent drag on President Biden’s approval rating, prompting the administration to take several measures to counter pain at the pump.”


American Economy 🇺🇸

Why Fed worries about the strongest US job market in decades | AP News

“Chair Jerome Powell isn’t as pleased with the robust U.S. job market as you might think he’d be, and he and the Federal Reserve plan to do something about it: Take it down a notch.”

FTR’s Shippers Conditions Index falls to a new record low reading - Logistics Management (logisticsmgmt.com)

“The February SCI came in at -17.9, down from January’s -10.1, topping March 2021 as the ‘toughest month to date for shippers,’ noted FTR.”

U.S. Businesses See Record Price Growth, Backlogs in April | 2022-04-25 | SupplyChainBrain

“A measure of prices received by U.S. manufacturers and service providers increased to a record in April as firms shifted the burden of higher wages and surging costs to customers, further fanning inflationary pressures.”

March intermodal volumes see annual and year-to-date declines, reports IANA - Logistics Management (logisticsmgmt.com)

“Total March volume—at 1,580,155 units—saw a 5.5% annual decline. Trailers—at 93,981—fell 15.7% annually. All domestic equipment, which is comprised of trailers and domestic containers, was up 3.0%, to 846,405 units. ISO, or international, containers—at 733,750—dropped 13.7%.”


Fuel Tech ♻️

How a Midwest Food Distributor Approaches Sustainability - Fleet Management - Trucking Info

“Medium-duty straight trucks make up about two-thirds of the Loffredo Fresh Food fleet. Many are now running on biodiesel blends.”


Trade & Border Issues 🗺

US, EU are looking at ways to slash Putin’s oil money | AJOT.COM

“U.S. officials and the European Union are in talks about oversteps the EU could take to restrict oil imports from Russia and cut the income that Moscow makes from sales, according to people familiar with the matter.”

Ukraine’s Farmers Fight to Stave Off Global Food Crisis | 2022-04-25 | SupplyChainBrain

“Around this time of year, Yaroslav Andrushko would normally be overseeing the sowing of crops on his 1,000-hectare farm in the Vinnytsya region of central Ukraine.”

Russia hits rail, fuel facilities in attacks deep in Ukraine | AP News

“Russia unleashed a string of attacks against Ukrainian rail and fuel installations Monday, striking crucial infrastructure far from the front line of its eastern offensive.”

 

Shortages 🛒

Concrete Shortage Affecting Construction Business (msn.com)

“At a time when demand for construction is high, a shortage in concrete is having a detrimental impact on the industry.”

Chip-Starved Firms Are Scavenging Silicon From Washing Machines | 2022-04-22 | SupplyChainBrain

“A major industrial conglomerate has resorted to buying washing machines and tearing out the semiconductors inside for use in its own chip modules, according to the CEO of a company central to the chipmaking supply chain.”

Airlines substitute buses for planes as pilot shortage persists | AJOT.COM

“U.S. airlines are facing a pilot shortage that’s complicating efforts to ramp up flights, forcing them to step up training programs, recruit foreign pilots, and even replace planes with buses.”

Tesla's Biggest Problem Is Not Going Away (msn.com)

“Three years after getting close to bankruptcy, the automobile group is in sparkling health.”


Unions 🪧

Ocasio-Cortez to unionized Amazon workers: victory is ‘just the beginning’ (msn.com)

“The progressive congresswoman Alexandria Ocasio-Cortez told Amazon’s first unionized workers in New York on Sunday that their victory was “the first domino to fall” in what she expected to be a wave of similar votes for representation across the country.”

A second Amazon union election is set to begin in New York | CNN Business

“After a historic union victory at an Amazon warehouse in New York City earlier this month, a grassroots labor organization is hoping it can notch a second win at a facility just across the street.”

The Amazon Case: The Return of Unions? — iLevel Logistics

“In 2021, the U.S. Bureau of Labor Statistics reported the share of union members among all employees dropped to a record low of 10.3%, down from 10.8% in 2020.”


Tech 📟

Why are businesses slow on the uptake with logistics tech? (betanews.com)

“The incremental growth of eCommerce has accelerated significantly in recent years, with national lockdowns raising the profile of online retail to the status of truly rivaling traditional high street retail in every workable sector.”

American Eagle pitches internal supply chain platform to retail rivals (cnbc.com)

“American Eagle wants to master a business function that became critical for retailers during the Covid-19 pandemic: the supply chain.”


Regulations ⚖️

STB Proposes Emergency Action to Keep Rail Freight Moving | Transport Topics (ttnews.com)

“The U.S. Surface Transportation Board proposed a rule change that aims to bring immediate relief for shippers facing poor rail service, asserting that the agency can take emergency action on its own to address delays.”

USDOT announces $6.4B to help states reduce carbon emissions - Transportation Today (transportationtodaynews.com)

“The U.S. Department of Transportation’s Federal Highway Administration announced Thursday it would unlock $6.4 billion in formula funding to help states develop carbon reduction strategies and address climate change.”


Driver Issues 🚛

Driver feedback shows that equipment, compensation remain top concerns - TheTrucker.com

“The latest poll taken by the Professional Driver Agency (PDA) shows that the top two most mentioned concerns among truck drivers are equipment and pay.”

Truck Driver Turnover Misunderstanding Overshadows Industry's Career Potential | Material Handling and Logistics (mhlnews.com)

“‘If 91% percent of truck drivers were quitting the industry within a year, our economy would have collapsed a long time ago,’ explains ATA.”


Construction 🦺

County grants approval for Amazon's helix-shaped HQ tower | AP News

“The Arlington County Board gave unanimous approval Saturday to Amazon’s plans to build a unique, helix-shaped tower as the centerpiece of its emerging second headquarters in northern Virginia.”


Cab Tech 🚚

MVTS tests aerodynamic fuel-saving tech for trailers | Fleet Maintenance

“The AeroVolution Booster-Tail provided fuel savings of 5.04 gallons per 1,000 miles in track-testing completed by Mesilla Valley Transportation Solutions.”


eCommerce 🛍

Rising costs driving online shopping merchants to the point of no returns - The Loadstar

“Online shopping appears to be rapidly approaching a point of no return; steeply escalating costs are eroding margins, forcing merchants to look for alternative solutions to returning unwanted goods to their warehouses.”


Politics 🤝

Analysis: Loss is victory for far-right in France's election | AP News

“The far-right has gone mainstream in France. That’s the headline from the landmark showing by Marine Le Pen in the French presidential election.”




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