Taiwan Strait shipping lane creates tension between U.S. and China


Good morning! National Watermelon Day demands that you swing by your local supermarket and purchase the largest and juiciest watermelon you can find. 🍉

The primary route for ships passing from China, Japan, South Korea, and Taiwan to the west is known as the Taiwan Strait - and it is causing some problems for the world's largest countries. A staggering 88% of the world’s largest ships by tonnage passed through the area just this year, shipping goods from Asian factories across the globe. If China decided to act on invading Taiwan… it could cause a few problems.

Check out today’s featured article from SupplyChainBrain to read about the growing tensions between the U.S. and China over the highly-trafficked Taiwan Strait shipping lane. ☕️

Shipping containers fill a container ship moving through a body of water.

Ship Shipping GIF By The Guardian via GIPHY


Featured Article:

Taiwan Tensions Raise Risks in One of Busiest Shipping Lanes | Supply Chain Brain

“The standoff between the U.S. and China over Taiwan has thrown a spotlight on growing risks to one of the world’s busiest shipping lanes — even a minor disruption could ripple through supply chains.”

READ THE ENTIRE SUPPLYCHAINBRAIN ARTICLE HERE

Water Cooler Topics

🌎 U.S. companies are bringing workforces and supply chains back to American soil at significant rates. Some experts are arguing that this move will be the beginning of widespread de-globalization efforts, but the reshoring trend has been going on far longer than before the pandemic snarls of 2020-2022. Reshoring seems to be a business decision made as companies pivot to focus on best-cost sourcing instead of least-cost sourcing.

💸 While the 2,702-page, trillion-dollar infrastructure bill is quite the feat for the Biden Administration, it seems that it is one of the main catalysts in the highest inflation rate America has seen in 40 years. For example, the bill had approved the funding to repair a bridge for $500 million is now costing almost $1 billion. The National Bureau of Economic Research has released a paper stating that building new infrastructure actually disrupts the use of existing systems, not enhances them. These actions actually jam the economy’s supply.

📦 California warehouses are likely to get overloaded as U.S. retailers see slowing sales and constant merchandise coming in from across the Pacific to U.S. West Coast ports. Experts on the U.S. supply chain have warned of the possible “bull-whip effect” in light of retailers ordering too much product in order to avoid empty shelves. The Inland Empire’s warehouse and distribution market, the largest in the country, is seeing warehouse vacancies at 0.6%. This is a stark difference from the national average of 3.1%.


U.S. DOT funded grant program launched to help veterans become professional truck drivers

Pete Buttigieg, U.S. Transportation Secretary has spearheaded a new federal grant program meant to encourage veterans into the trucking field. The Commercial Motor Vehicle Operator Safety Training (CMVOST) grant program was awarded $3.1 million in funding and will be facilitated by the Federal Motor Carrier Safety Administration (FMCSA).

According to USDOT, the main goal of the program create a wider net of CDL holders with operator safety training and to push forth opportunities for current or former members of the United States Armed Forces and their spouses to become truckers. A USDOT spokesman has announced that more detailed information regarding the program will be made available shortly.

Read more from The Trucker ▶


RealWear’s Navigator 500 is a hands-free device available for truck technicians

RealWear has unveiled the Navigator 500, a hands-free wearable computer meant to assist technicians with their repairs and maintenance of trucks. Using the Android 11 operating system, the device works like a tablet with Wi-Fi, Bluetooth, and 4G connectivity. The data is collected on a monocular display worn by the technician and operated by voice command so operations don’t need to be ceased at any point.

The device has been worn by those operating wind turbines and trucks alike, bolstering a new effective age of technician operations.

Read more from Fleet Maintenance▶


Accounting 🧾

Freight Audit and Payment Solutions Bring Immediate and Long-Term Benefits - Inbound Logistics

“Why do companies need visibility to compete in today’s environment?”


Network Association 🤝

Amazon slows network expansion in response to cooling customer demand - Supply Chain Dive

“Amazon has slowed its operations expansion plans for this year and 2023 “to better align with expected customer demand,” CFO Brian Olsavsky said on the e-commerce giant’s Q2 earnings call Thursday.”

Fresh Del Monte doubles down on logistics services with 2 new deals - Supply Chain Dive

“Fresh Del Monte has announced two logistics deals in the last month that leverage the produce giant’s supply chain assets, part of its effort to expand supply chain services amid high shipping prices and soaring demand.”


Artificial Intelligence 🤖

Top 5 AI applications in logistics you need to know | DC Velocity

“A few ways artificial Intelligence helps logistics companies gain market dominance and maintain their competitiveness.”

Supply Chain News: Wall Street Journal Article Raises Questions about Safety for TuSimple Driverless Truck Technology - SC Digest

“Autonomous trucks seemed to at last be gaining some momentum.”

How AR & AI Can Transform Logistics - EPS News

“Industry 4.0 technology and its rapid adoption during the pandemic has assisted many businesses in navigating labor and productivity challenges by streamlining factory and process workflows.”

Chinese e-commerce giant Alibaba teams up with Tesla rival Xpeng on tech for driverless cars - CNBC

“Chinese e-commerce giant Alibaba and electric vehicle startup Xpeng are opening a computing center to train software for driverless cars, the two companies said Tuesday.”

What Congress needs to know about drone airspace integration - Reason.org

“Congress should pay close attention to ongoing activities in the drone industry and at FAA.”


Shortages 🛒

Plane Parts Shortage Threatens More Disruptions to Air Travel - SupplyChainBrain

“A rebound in airline passenger travel is colliding with global supply chain troubles.”

Combatting the Global Microchip Crisis in America - More Than Shipping

“The first microchip-integrated circuit was invented by engineers back in 1958, an invention that has revolutionized all technology and changed the world drastically since then.”

Top 5 Supply Chain Shortages in 2022 - Youtube/SCM Dojo

“In this vlog, Dr. Muddassir has outlined the Top 5 Supply Chain Shortages in 2022, and why they are happening.”


Warehousing 📦

Supply Chain News: Interesting Results from Annual “Voice of the Blue Collar Worker” - SC Digest

“Staffing firm EmployBridge is recently out with its annual “Voice of the Blue Collar Worker” survey and report, and as always it’s an interesting read.”


Hours of Services ⏰

Latest on ELD Mandates | Food Logistics

“If you are transporting loads or sending work trucks cross-border, you will need an ELD that operates in both countries. Here's the latest on ELD mandates.”

Appeals Court Denies Review of HOS Shorthaul, Driver Break Requirements | Transport Topics

“A challenge to certain federal hours-of-service regulations filed by the Teamsters Union and three nonprofits will not be reviewed by a three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit.”


Regulations ⚖️

CARB’s New Forklift Regulations Could Lead to a Faster Shift to Electric | Material Handling and Logistics

“California’s planned phase-out of non-zero-emission forklifts could bring significant changes to the industry.”


Ports 🚢

Port of Hueneme container business is up 51% and revenues rise 28% In 2022 | AJOT.COM

“The California Port of Hueneme reported a 28% increase in revenue and a 51% jump in loaded and empty volume in 2022, according to Kristin Decas, executive director, Port of Hueneme.”


Leadership 🏆

Capgemini & Macmillan Education discuss data in supply chain | Supply Chain Digital

“April 2022, Procurement Magazine, Supply Chain Digital and Bizclik Media Group returned to the Tobacco Dock (London) to host our second Procurement & Supply Chain LIVE.”

Consistency Wins Championships, North Carolina’s Walker Says | Transport Topics

“Brian Walker has spent more than a decade competing at the National Truck Driving Championships.”


Fuel ⛽️

Diesel declines for sixth straight week | FleetOwner

“U.S. average price for trucking's main fuel drops 13 cents to $5.138 as all regions tracked by the U.S. Energy Information Administration decline at least 11 cents for the week of Aug. 1.”


Driver Issues 🚛

Truckers, head for the Great Lakes! - Back The Truck Up

“Sharks in the know stay in the Great Lakes region these days because it has the best freight market conditions for a carrier to find a good load.”

Brokerage 📞

Leveraging Freight Brokerage to Solve Supply Chain Disruption - Inbound Logistics

“As shippers deal with capacity issues, rate volatility, and service disruptions, a freight broker can help mitigate challenges so shippers can focus on their core strengths.”


Manufacturing ⚙️

Stanley Black & Decker to slash SKUs, footprint in $1.5B savings plan - Supply Chain Dive

“Stanley Black & Decker will significantly reduce its manufacturing footprint and trim its product portfolio by 40%, part of a sweeping plan to reduce bloated inventory levels and generate $1.5 billion in cost savings over the next three years.”

July manufacturing output trends down slightly but still growing, reports ISM - Logistics Management

“The report’s key metric, the PMI, came in at 52.8) a reading of 50 or higher indicates growth), for a 0.2% decrease compared to June’s 53.0, marking the 26th consecutive month of growth, at a slower rate, and also the 26th consecutive months of overall economic growth.”


Sustainability ♻️

The race is on to reduce greenhouse gas emissions | DC Velocity

“Record heat waves are wreaking havoc across the globe. “


Electric Vehicles 🔋

Biden Has a $5 Billion Plan to Eliminate America's EV Charging Deserts - SupplyChainBrain

“Montana’s vast spaces and epic vistas, its mountains and boundless plains, seem made for a road trip. Just not in an electric car.”

Making the beachgoers say, 'Hey look at that!' | Commercial Carrier journal

“According to the 2020 U.S. Census, the population of my town is about 7,100. I think a few people were counted twice, and there might be a few of the undead in there too because Demopolis, Alabama, feels a lot smaller than that.”


Business Strategy 💡

Watch: The Importance of Decision Intelligence | SupplyChainBrain

“Decision intelligence is becoming key to the ability of companies to deal with an unprecedented volume of data that's necessary to making supply chain decisions today, says Fred Laluyaux, president and chief executive officer of Aera Technology.”

UPS heralds its new Total Service Plan - Logistics Management

“On its second quarter earnings call last week, UPS leadership highlighted a new initiative focused on ensuring smoother network operations, in tandem with upping its already very strong service levels. “

Data Offers New Route to Profitability for Logistics Firms | PYMNTS.com

“With today’s supply chain complexities and economic pressures, shippers need to know where their goods are, how they’re getting to where they’re going and what options the shipper has available to them to ensure everything gets there at the right time and right price.”

Inventory visibility vital for supply chains - ServicePower | Supply Chain Digital

“Brad Hawkins, Senior VP Products & Solutions with ServicePower - a field-service management software firm - on why the pandemic has changed everything.”

Seattle carrier combines proprietary technology platform with single-lane relay strategy to increase utilization | Commercial Carrier Journal

“CCJ Innovators profiles carriers and fleets that have found innovative ways to overcome trucking’s challenges.”


Healthcare Logistics ⛑

The French healthcare system in the storm: Logistical learning from the pandemic - Supply Chain Management Review

“The spring of 2020 will be remembered in the history books as a key moment in which the world has shaken in the face of a fearsome pandemic.”


Trade & Border Issues 🗺

Ukraine plots cautious return of grain exports as world watches | AJOT.COM

“Ukraine laid out plans to cautiously ramp up grain exports as the first shipment since Russia’s invasion was hailed as an encouraging early step toward unblocking millions of tons of crops and easing global food prices.”


Industry Forecast 📊

State Of Logistics Report: Turbulent Supply Chains Drove Up Logistics Costs in 2021 - Pallet Enterprise

Supply Chain Analysis: Annual report explains what happened with global supply chains in 2021 and suggests that tightness will remain throughout 2022.”

3 Freight Trends + Strategies Shippers Need To Know From Q2 2022 - Talking Logistics

“Trend #1: While route guides are performing better, inflationary and deflationary pressures on rates have never been more challenging to synthesize into a confident rate outlook.”

Challenges for the Digital Transformation of Supply Chains - SCM Dojo

“Artificial intelligence, machine learning, big data, blockchain – the list of emerging digital technologies is long.”


Safety 🦺

Infrastructure damage hampers flood recovery in Kentucky - TheTrucker.com

“Damage to critical infrastructure and the arrival of more heavy rains hampered efforts Sunday to help Kentucky residents hit by recent massive flooding, Gov. Andy Beshear said.”


Company Culture 🎉

Marten Transport credits work-life balance as factor in driver hiring boost | Transport Dive

“Marten Transport increased its driver workforce by 15%, or 422 drivers, over the past year, according to the company’s Q2 earnings statement.”

How Amazon Become Ordinary - The Big Picture

“We all know how much FAANMG stocks have faltered this year, but there is a bigger story brewing: The companies themselves seem to have…lost their way.”


Quote of the Day:

Blue container ship in the water at a port .

“Success is not final, failure is not fatal: it is the courage to continue that counts.”

— Winston Churchill, Prime Minister of Great Britain during World War II



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