Luxury items & medical equipment in short supply due to China's Covid-19 lockdowns
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Good morning. Preparing to celebrate Taco Tuesday after work?
While some ingredients of a taco may be in short supply (depending on your geographic location), many big-name brands have reported growing production issues due to “supply chain hurdles” in China.
Beijing has held steadfast to a “zero-Covid” policy, which has resulted in a number of large factories and warehouses in the country slowing to a standstill, compounding current supply chain problems. Therefore, the halt of operations has caused an accordion effect on the supply chain line. Approximately 12% of global trade originates in China; that means most everyone will feel the crunch along with them.
Check out today’s featured article from Supply Chain Brain for some predictions regarding the aftermath of China’s lockdowns in several industries. ☕️
The Simpsons Season 8 Warehouse GIF via GIPHY
Featured Article:
From Sneakers to Teslas, China Lockdowns Upend Global Supply Chains | 2022-05-16 | SupplyChainBrain
“The economic consequences from China’s COVID-19 lockdowns are starting to be felt by companies and consumers across the globe, and expectations are that the reverberations will only get stronger.”
Water Cooler Topics
✈️ Airlines are in dire need of qualified pilots. Covid-19 lockdowns and layoffs intensified an already growing pilot shortage by putting the brakes on hiring and training new pilots. Early retirements offered by the airlines to the pilots to help cut labor expenses at the time have also exacerbated the issue. The requirements to become an airline-qualified pilot in the U.S. are extensive and costly, widening the gap for potential pilot hires.
♻️ “Zero Emissions” trucks - is it a just buzzword or could it actually be a reality? The industry is trending towards lithium-ion batteries being the answer to an all-electric fleet. While many argue it is still the “safer, smarter” option to diesel-fueled trucks, there is truth in the argument that these trucks are not quite as “zero-emissions” as they seem. Industry experts are weighing the pros and cons.
🛒 Walmart hopes to lure new college grads for store management positions with big cash. The new “College2Career program” introduced by the company will offer training for soon-to-be graduates. The program’s leaders will be presented with the opportunity to step into a management position at the company as an “emerging coach.” This role earns a starting salary of a minimum of $65,000 per year, and also fast-tracks the participant to the title of Store Manager (average salary of $210,000 per year.)
Increasing wages won’t solve your supply chain nightmare, but its a start
Photo by Sharon McCutcheon on Unsplash
The largest facet of the larger supply chain problem is employee retention, says industry expert Dan Johnston, CEO of WorkStep.
The boom of both salary and hourly-wage increases for employees is cornering businesses into what he has called a “dangerous cycle” of upping pay to be a competitive employer. Supply chain companies, unfortunately, cannot currently afford to be strategizing increased compensation as a priority over honing in on their hiring strategies.
MercuryGate TMS teams up with Amazon Freight to expand network of shippers
Photo by Andrew Stickelman on Unsplash
The North Carolina-based software company MercuryGate TMS has explained that the collaboration increases access to 40k Amazon-owned trailers and third-party drivers for full truckload freight movements. Shippers can now utilize the Amazon Freight network to load full truckloads inbound to Amazon warehouses, their own locations, or a customer’s, using 53-foot dry vans owned by the company.
MercuryGate’s VP of product marketing, Kathryn Buchanan, explains that the partnership is mutually beneficial and that both companies expect major growth as a result.
Artificial Intelligence 🤖
Watch: AGVs: Are They Right for Your Warehouse? | SupplyChainBrain
“Nicola Tomatis, chief executive officer of BlueBotics, discusses interoperability of AGVs and things to consider before investing in automated vehicles.”
How Can You Automate Procurement and Supply Chain Jobs? (allthingssupplychain.com)
“Automation has brought a lot of value to industries across the United States in recent years.”
Trade & Border Issues 🗺
Wheat soars in risk to food inflation as India restricts exports | AJOT.COM
“Wheat jumped by the exchange limit after India’s move to restrict exports, exposing just how tight global supplies are after the war in Ukraine and threatening to drive up food prices even more.”
Pent-up Shanghai cargo exports will swamp Europe's inland services - The Loadstar
“Europe’s inland barge terminals may find themselves overrun by an “avalanche” of containers as Shanghai’s lockdown ends, which could be by the end of the month, said one source today.”
“In this article, Sherif Taher, founder and CEO of Naqla, tells Business Insider Africa five points entrepreneurs should consider before starting a transport and logistics business in Africa.”
EU's Russia sanctions effort slows over oil dependency | AP News
“The European Union’s efforts to impose a new round of sanctions against Russia over the war in Ukraine appeared to be bogged down on Monday, as a small group of countries opposed a ban on imports of Russian oil.”
Ocean Freight ⚓️
“It’s time to talk about the elephant in the room for ocean carriers: reduced service quality.”
Fuel ⛽️
Exxon Challenges California's Denial Of Oil Trucking Permit (gcaptain.com)
“Exxon Mobil Corp has gone to court seeking to force local California government officials to allow shipment of crude oil from coastal facilities to inland refineries by dozens of tanker trucks a day until replacement of a pipeline that burst in 2015, causing a major spill.”
Diesel, Gas Refining Capacity Too Low to Meet Demand | Transport Topics (ttnews.com)
“From record gasoline prices to higher airfares to fears of diesel rationing ahead, America’s runaway energy market is disquieting both U.S. travelers and the wider economy.”
Compliance 📋
“Canada-based specialized carrier Equipment Express moved a 1,000-pound press to Tennessee last year with three superloads, three permitted oversize-overweight loads and two legal loads.”
Driver Issues 🚛
Truckers help rank top 20 truck stops with the most parking availability (cdllife.com)
“A popular trucking mobile app released a list of the nation’s top truck stops for parking availability.”
Shortages 🛒
Produce season is off to its slowest start in years, but it's not all bad news - DAT
“According to the latest data from the USDA, the 2022 produce season is but a shadow of last year’s bumper crop, with produce volumes at the end of April down 31% y/y, or a shortfall of 63,113 weekly truckloads of produce.”
Freight Truck Shortages Are Changing The Face Of Logistics (thelogisticsoflogistics.com)
“TuSimple Holdings (NASDAQ: TSP) – in its most recent call with financial analysts – reaffirmed that they expect to have fully autonomous trucks on the road in 2024.”
Leadership 🏆
Why Climbing Mt. Everest Can Teach Why You Are Here - Small Business Trends (smallbiztrends.com)
“Being an entrepreneur, I can be a challenge junkie.”
Company Culture 🎉
Newbies welcome | Seth's Blog (seths.blog)
“The paradox of most tightly-knit communities is that they have an internal culture.”
Network Association 💫
A Radical New Way to Think About Supply Chain Management - Logistics Viewpoints
“ARC has done research and writing on supply chain collaboration networks.”
Ryder surges on $4.4 billion takeover offer from HG Vora | AJOT.COM
“Ryder System Inc. shares jumped after HG Vora Capital Management LLC offered to buy the trucking company in a deal valued at about $4.4 billion.”
GXO Partners with Sente Foundry to Accelerate Logistics Innovation (yahoo.com)
“GXO Logistics, Inc., the world’s largest pure-play contract logistics provider, today announced a new partnership with Sente Foundry (“Sente”), a global startup investment and innovation platform that brings corporations, public institutions and investors together to discover high-potential technology startups with inventive ideas and scalable solutions that can help solve today’s greatest supply chain challenges.”
Customer Relations 🤝
Using Actionable Real-Time Visibility to Impact the Consumer Experience - Inbound Logistics
“Across the globe, the hot topic in boardrooms has been improving supply chains and getting products into the hands of consumers.”
Omnichannel investments create ‘hybrid’ shoppers | DC Velocity
“Consumers continue to shop online, but seek in-store pickup options as Covid-19 fears ease, survey shows.”
Inflation 💸
“That is how many dock workers at 29 West Coast ports and terminals, including of course the dominant twin ports of Los Angeles and Long Beach, are represented by the International Longshore and Warehouse Union (ILWU).”
Industry Forecasts 📊
“In 2022, “Animal Logistics Market “Size, Status and Market Insights, the worldwide market for Animal Logistics is anticipated to rise at a considerable rate during the forecast period, between 2022 and 2028. according to a new study.”
Warehousing 📦
Logistics Inventory at Historic Low: Prologis (therealdeal.com)
“The booming industrial real estate sector could soon see the bottom fall out, an executive at Prologis predicted.”
Sales 🧾
Trailer Orders Tumble to Year’s Low Point | Transport Topics (ttnews.com)
“U.S. trailer orders in April rose slightly compared with 2021, but plunged compared with March to settle at the lowest point since October, ACT Research reported, citing trailer makers’ preliminary data.”
Regulations ⚖️
New FHWA rules allow for longer intervals between bridge inspections - TheTrucker.com
“The interval between inspections of America’s highway bridges is about to get longer following the May 6 issuance of a final ruling by the Federal Highway Administration (FHWA).”
Speed limiters mandate deserves longer comment period, OOIDA says (landline.media)
“Calling it one of the “most overreaching proposed rulemakings in decades,” the Owner-Operator Independent Drivers Association said the public needs more time to comment on FMCSA’s speed limiter notice.”
6 months in, Biden's infrastructure plan has 4,300 projects | AP News
“Six months after the signing of President Joe Biden’s $1 trillion infrastructure package, the government said Monday there are 4,300 projects underway with more than $110 billion in funding announced — milestones the administration is publicly heralding as midterm politics intensify.”
Loans & Leases 🏆
“Two of the 7 bills advanced by the House’s Small Business Committee deal address fraud in the Paycheck Protection and Economic Impact Disaster Loan programs.”
Safety 🦺
Buttigieg sends $5B to cities for safety as road deaths soar | AP News
“With upcoming data showing traffic deaths soaring, the Biden administration is steering $5 billion in federal aid to cities and localities to address the growing crisis by slowing down cars, carving out bike paths and wider sidewalks and nudging commuters to public transit.”
Quote of the Day:
“Make every detail perfect and limit the number of details to perfect.”
— Jack Dorsey, co-founder of Twitter
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for July 31, 2025, from iLevel Logistics Inc.