Distribution Center for AutoZone Secures $125 Million Deal
Good morning! Today we celebrate National Burrito Day! From sourcing the freshest ingredients to ensuring timely delivery to the customer, the burrito supply chain is a complex and fascinating system that involves multiple stakeholders. So, grab a burrito and join us as we explore the world of supply chain management on this delicious holiday! 🌯
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Blackstone's Link Logistics has made a deal with AutoZone's Southern California distribution center, which is relatively small compared to the other warehouse deals closed this year. In Southern California alone, over $1 billion worth of deals have been closed in the last 4 months, and Link Logistics has added to that by securing a $125 million deal. The lease for this 490,000 square foot building was signed until April 2033, with the option to extend. The building, built on a 25-acre lot, cost approximately $255 per square foot. Link Logistics is a last-mile logistics company that already has an interest in developing properties, adding up to 545 million square feet of industrial space.
Check out the featured article from the Commercial Observer to learn why Blackstone's Link Logistics made such a significant deal for one of AutoZone's distribution centers. Will the Inland Empire bounce back with all these deals being made? How much money will this deal alone generate?
Featured Article:
Blackstone’s Link Logistics Pays $125M for AutoZone Distribution Center in SoCal | Commercial Observer
“More than $1 billion in warehouse deals have closed just in Southern California’s Inland Empire region so far this year, significantly more than in any other market in the United States.”
Electric Vehicles & Safety 🔋
San Francisco's Robot Taxis Take to the Streets
One of the busiest cities in the country is planning to revolutionize transportation by introducing driverless taxis. The two largest self-driving transportation companies, Waymo and Cruise, have announced plans to compete with Uber and Lyft by the end of this year. However, before they can launched, they had to first gain approval from the city and demonstrate that their technology can safely navigate obstacles and challenging driving conditions. Any issues with inconvenience or safety could derail their plans to serve the public.
Cruise, which is General Motors' autonomous car, has been providing rides to passengers in less populated areas of San Francisco since last summer, building credibility. Waymo, a spinoff from Google, has been offering free rides throughout the city as they await approval to commence business. With over 35 million cars driven by people in California alone, the competition between self-driving and human-driven cars is set to be intense as these autonomous companies seek to test their products.
Warehousing & Leases 🏢
Slowdown Looms for U.S. Warehouse Capital
The Inland Empire of Southern California has been experiencing a significant slowdown since the height of the pandemic. Large corporations such as Amazon and Walmart, with their massive warehouses, are bracing for tough times ahead, as jobs become scarcer and prices continue to rise in California. With the state grappling with banking and tech crises, many are questioning whether it is the best choice for their manufacturing needs. While California is the fifth-largest economy, some believe that it must brace for a mild recession in the near future.
According to a recent study, supply chain activity in the Inland Empire is currently at its lowest point in over six years, reflecting the rapidly shifting economic landscape. Unemployment in the region has also hit an all-time high of 4.4%, with many attributing this to low wages and a lack of job opportunities that provide value to workers.
Let’s Get Global 🌎
🛢️ Exploring Russian Oil Tankers in Depth. Russian oil shipments have experienced a massive surge in recent weeks, jumping from one million barrels per day to 4.13 million barrels per day in just one week. Such a significant increase has not been seen since last June and is having a profound impact on the international marketplace.
🇨🇳 Do 'Spy Cranes' from China Really Exist? Numerous ports in the United States are utilizing cranes made in China, and it has been discovered that they include sensors capable of measuring and tracking the destinations of containers. Concerns have been raised that this technology could enable China to obtain sensitive information about the materials being shipped in and out.
iLevel With You 🏡
More topics for the average American household to consider…
😷 The Industry's Response to the World's Deadliest Bird Flu. Since the latest appearance of the bird flu in 2022, over 50 million farm-raised birds have died, leading to skyrocketing prices in grocery stores. The empty shelves and high prices of eggs seem to have had a huge impact on the shipping and packaging of the product.
💰 Range of New G-Wagon Increased by 20%. Mercedes has announced that its new G-Wagon, which is an EV, will have range-boosting batteries. These cars will be direct competition to Elon Musk’s Teslas that have the longest range. The battery manufacturer says that by 2028, they will make enough batteries to create millions of vehicles.
🤖 Walmart Implements Self-Driving Forklifts. The retail giant has announced that it is now using autonomous forklifts to move supplies from trucks, which also lowers the cost of moving goods around a warehouse. It is believed that these robots will lower costs by almost 20%, while also speeding up the process of getting supplies to consumers.
🚢 Ports in Georgia experience a surge in growth. Georgia port workers have experienced a significant increase in recent weeks, which they hope will continue. They reported that February has been their best month ever, while Los Angeles has reported slower activity than usual. With the influx of new business, Georgia has announced plans to build a 300,000 square foot transload facility, set to open this summer.
📦 Consolidation of Ground and Express Services Announced by FedEx. The shipping giant has announced that they are planning on combining all of their services except FedEx Freight together to create a $6 billion cost-saving initiative. The company has also announced that it has cut flights over the Pacific by 30% because of declines in volume.
♻️ Exploring the role of hydrogen in the future of trucking, as discussed by NACFE. The North American Council for Freight Efficiency has explained why hydrogen fuel cells will be necessary for the future of long-haul trucking. Many of the reasons are related to the zero-emission requirements for the upcoming years and the importance of complying with new regulations, including the recently passed California law.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 28, 2024, from iLevel Logistics Inc.