A few weeks ago, I wrote an article about the transformative nature of the vegan meat supply chain. Over the past few years, Beyond Meat and Impossible Foods has created meat alternatives that promise to eat “more like meat.” Fast food chains across the country serve up meatless burgers, and now Burger King is doing a first: meatless chicken nuggets. Earlier this week, the company announced that as chicken meat becomes more expensive and harder to find, it will again partner with Impossible Foods to try meatless nuggets in several markets, making it the first fast food chain to offer a chicken alternative. new to the company. . According to Bank of America, the price of chicken goods has doubled this year. In fact, KFC at Yum Brands stopped advertising chicken tenders due to a lack of supplies last month. It will certainly be interesting to see how the public responds to the latest offerings of the artificial meat menu. Now, let’s move on to this week’s logistics news.
in late August, Walmart He launched a new project to connect local retailers with consumers. The business is a delivery service called GoLocal, which moves merchandise from other local retailers to consumers. Walmart has its first customer, Home Depot will use Walmart drivers to deliver paint, tools, and other online purchases to customers’ doors. Walmart will begin deliveries in select stores in New Mexico, Texas and Arkansas in the next few weeks, then expand to other markets across the country before the end of the year. Same-day and next-day delivery will be limited to items that can easily fit in the vehicle, and this option will be offered to eligible persons at checkout online. The two retailers announced the partnership on Wednesday but declined to share the terms of the deal or the length of the contract.
The persistent difficulties many companies face when trying to secure ocean freight transport has forced companies to rethink their strategies. Companies like Home Depot and Costco have turned to chartering their own container ships to prevent delays. Coca Cola Take a different approach. The company is turning to bulk cargo ships amid the ongoing shipping crisis. While bulk vessels are typically used for bulk cargo such as grain, coal and other raw materials, Coca-Cola made the choice because it was unable to obtain the shipping containers and cargo space needed for transportation. The company currently uses three of these vessels to transport manufacturing materials.
The The United States will reopen talks with China Because of its failure to comply with the trade agreement signed during the Trump administration and the resumption of the process for American companies to win exemptions from tariffs on Chinese products. The announcement came during a speech by US Trade Representative Catherine Taye earlier this week. Tai stopped short of threatening any new trade measures against China, but he did stress that Trump’s tariffs on more than $350 billion in Chinese goods would remain in place for now. Tai also stated that if China does not address US concerns, more tariffs or other trade restrictions could be imposed.
US trade deficit to a record level in August, reflecting a rise in the value of imports of consumer goods and industrial supplies. The gap in trade in goods and services increased 4.2 percent to $73.3 billion, from a revised $70.3 billion in July, according to Commerce Department data released on Tuesday. The median estimate in a Bloomberg survey of economists was for a shortfall of $70.8 billion. The value of imports of goods and services rose 1.4 percent to a record $287 billion in August. The US imported $3 billion more in consumer goods during the month, mostly due to pharmaceuticals, toys, games, and sporting goods. Exports rose 0.5% to $213.7 billion.
As the capacity crunch continues, more and more carriers are raising prices for shippers. DHL Express It plans to raise shipment rates for US customers by 5.9 percent effective January 1, 2022. This rate increase matches FedEx’s rate increase for next year in a measure that will raise costs for package carriers. The increase will apply to US account holders who ship to or from the 220 countries and territories served by DHL Express. The company raised rates by an average of 4.9 percent for 2021, and by an average of 5.9 percent for 2020. DHL Express said last month it would invest $360 million in upgrading and adding facilities in the Americas and boosting its freight fleet to deal with rising electronic rates. Trade volumes in its network.
high demand for COVID-19 Tests From US employers, it has exacerbated a nationwide shortage of rapid tests in recent weeks, driving up costs for state and local testing programs, according to industry executives and state officials. As test makers such as Abbott Laboratories, Quidel and LumiraDX expand production to meet growing demand, ramping up test production will take weeks to months. Nearly a dozen state governments have said they are facing a shortage of rapid tests, and tests will become more difficult to obtain in the near term.
According to the latest Logistics Managers Index (LMI) reading, the rate at which Contracted transportation capacity increased in September. This represents 16 consecutive months that capacity has been declining. The latest reading of the LMI showed that the capacity component of the data set fell 330 basis points from August to 37.2 percent in the month. LMI is a diffusion indicator where a reading above 50 percent indicates expansion and a reading below 50 percent indicates contraction. Transfer capacity has been in the 30 percent range, which means “significant shrink,” for 12 of the last 14 months. Survey respondents also lowered their expectations about future transportation capacity. While it is in slightly expansion territory at 52 percent, the 12-month forward-looking sentiment is down 480 basis points from last month.
In a recent article, I noted that according to a survey of more than 25,000 consumers in 12 countries conducted by OpenText, 81 percent of respondents indicated that ethical sourcing of products is important. Retailers are sure to notice this trend. H&M Teaming up with British-Nigerian actor John Boyega to launch a sustainably developed menswear line. The collection, which launches online and in select stores on October 28, combines business casual wear with floral prints and tie-dye trims. Materials used include organic or recycled cotton, nylon, recycled polyester, and viscose from sustainable sources. Key pieces include a patchwork jacket made from recycled denim and a zip-up puffer jacket made from Vegea, a vegan alternative to leather, as well as a T-shirt with the slogan “A better present leads to a better future.”
As the holiday season approaches, retailers are looking for ways to attract shoppers early and often. best buy It announced it’s launching a new nationwide annual membership program, including a feature that might get people to subscribe: access to hard-to-find items during the holiday season. Consumer electronics retailer program, Totaltech, costs $199.99 per year, and customers who join will get unlimited round-the-clock tech support, exclusive membership prices on merchandise, up to two years of product protection on most purchases, free shipping and installation, and a window An extended 60-day period for returns and exchanges, among other features. The retailer is grappling with the benefits of the holidays as the pandemic fuels global supply chain challenges. The Covid-19 outbreak has temporarily closed some factories and ports, causing a shortage of semiconductor chips that go into everything from cars to laptops.
That’s it for this week. Enjoy the song of the week, Johnny Cash black chicken.