This week in logistics news (October 16-22) – News Couple
LOGISTICS

This week in logistics news (October 16-22)


We’ve all heard the news that storage containers are getting more and more difficult to access, and as a result, this could affect the upcoming holiday season. But how rare is it? The spot price for booking a 40-foot container from Shanghai to Los Angeles was $10,229 in the first week of August, up 238 percent from the same period a year earlier. According to the Toy Association, an industry trade group, about 85 percent of toys sold in the United States are made in China. Therefore, game makers make difficult decisions about which games to send to retailers as a result. Jay Foreman, CEO of Basic Fun has come up with an interesting solution. Instead of sending out Tonka Trucks or Care Bears, the company is focusing on squishy mini toys. why? Well, it’s all about the bang for your buck. Basic Fun can fit $150,000 worth of machete, which are soft, squishy, ​​water-filled collectibles, into a bowl. That compares to $40,000 worth of Tonka Trucks. According to Foreman, “I’d rather sell fewer trucks and don’t have to raise the price significantly because I’ll be selling the trucks again next year.” Now, let’s move on to this week’s logistics news.

logistics newsEvery year, retailers and carriers go on a seasonal hiring spree to prepare for the peak holiday season. And this year is no exception, especially as online shopping continues to rise. earlier this week, Amazon It announced plans to hire about 150,000 seasonal employees, which is a 50 percent increase from last year. Amazon said the median starting wage for U.S. jobs was $18 an hour. In the face of fierce competition for entry-level workers, the company also offers signing bonuses of up to $3,000, depending on location, and up to an additional $3 an hour for workers willing to work nights or weekend shifts. The move should help give the company a little protection as it seeks to meet the growing demand of the holiday season.

The global shipping crisis doesn’t seem to be going away any time soon. This week, on the heels of record-breaking annual sales, IKEA It has announced that it is reducing the number of versions of some products as it struggles with a shortage of raw materials to ensure the availability of the most popular items. IKEA stores in North America are hardest hit by product shortages, followed by Europe. To avoid disappointing shoppers, it removes temporarily unavailable products from its websites and store showrooms, and instead suggests similar items. IKEA is also leasing more ships, purchasing containers and forwarding goods between warehouses to combat supply chain disruptions.

trying to Reduce greenhouse gas emissions In global trade, a coalition of companies including Amazon, Ikea, and Patagonia has pledged to use only ocean shipping companies that use carbon-neutral fuels by 2040. Cargo ships that carry up to 90 percent of the world’s products produce nearly 3 percent of the world’s products. per cent of man-made carbon dioxide emissions each year, which is about the same as the annual output of Germany as a whole. The pledge to decarbonize shipping over the next two decades came with calls for policy makers to help transform the industry. The coalition urged government officials to set ambitious marine fuel targets, implement market-based regulations and measures to encourage the rapid development of new fuels and technology, and allow carbon-neutral shipping fuels to become “competitive with fossil fuels as soon as possible.”

LaserShip and OnTrac They announced that they had entered into a “final merger agreement”. The deal will create a giant among regional parcel carriers and provide shippers with a standardized option for e-commerce deliveries in the United States, providing alternatives to UPS and FedEx. The agreement will give LaserShip, which provides delivery services in the eastern and midwestern US, a presence for delivery in eight western states, including the entire state of California. According to the announcement, the two companies together “will constitute the first-choice partner of coast-to-coast for last-mile e-commerce deliveries.” But the two companies won’t begin tying their networks together until 2022 in order to “ensure continued exceptional service during the festive season with expectations of increased freight volumes,” the deal is estimated to be worth about $1.3 billion.

Sephora It launched a same-day delivery service just before the holiday shopping season, which is set to deliver purchases within two hours for a fee. Customers can place an order on the Sephora website or app and select the same-day delivery option upon check-out. For a flat fee of $6.95, the courier will take the order and deliver the item within two hours. Customers can search the Sephora website by title to see eligible items. The new service is now available seven days a week in most major cities and suburbs, but orders must be submitted online by 4 p.m. local time for same-day delivery, the company said.

Roadside delivery has become the norm since the epidemic in 2020 and now publix It adds a new method: bedside delivery. Beginning this fall, Publix Pharmacy is working with Sarasota Memorial Hospital – Venice in Florida to provide bedside prescriptions to patients before they are discharged from the hospital. Patients’ prescription orders will be fulfilled at the Publix store across the street from the hospital. Pharmacy staff will take orders and deliver medications directly to the customer’s room or to the nursing unit, and required refills can be obtained from any Publica pharmacy location. According to Publix, hospital room delivery eliminates a step for consumers who are already facing challenges in transitioning from inpatient care to at-home recovery.

The Accumulation in US ports It adds pressure to an already disrupted global supply chain. Amid a shortage of truck drivers, there are more than 13 loads per truck in the Los Angeles and Long Beach ports, adding to the supply chain backlog. Long Beach Port Manager Mario Cordero said he expects to strike a new deal with the Biden administration to keep ports open 24 hours a day, 7 days a week that will help speed up long wait times for truck drivers receiving shipments. At a time when truck drivers’ salaries are rising, it is getting more and more difficult to find drivers. Even for those people who are looking for a job, getting appointments at the DMV to get a license can take months.

Prologies, the world’s largest operator of warehouse logistics said publicly on Friday what everyone has been feeling and been through for months: There is no more space left to make, at least for now. During the earnings call, Prologis Chairman and CEO Hamid R. Moghadam said that “the space in our markets is virtually sold out.” To put the amount of space occupied in perspective, Prologis occupies 995 million square feet of logistics warehouse space in 19 countries. The company said vacancy rates had reached unprecedented low levels, and maintained its forecast for average occupancy for this year between 96.25 percent and 96.75 percent.

That’s it for this week. Enjoy the weekend and song of the week, Blink 182’s all the little things.



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