Port of LA Director is on a mission: get cargo back to the west coast
Good morning! Saturday has entered the chat. 🧑💻 Grab a cup o’joe and sit back - it’s time to get caught up on the latest.
The Port of Los Angeles, also known as America's Port, is a major seaport located in San Pedro Bay in the Greater Los Angeles area of Southern California. While it is still one of the busiest and most diverse seaports in the world - handling a wide variety of cargo including containerized and non-containerized freight, automobiles, and other vehicles - the port has now been one-upped by the east coast in the latter half of 2022.
Executive Director Gene Seroka is making the rounds, speaking with shippers who have been rerouting cargo to alternative American ports due to concerns about a potential labor disruption on the west coast. The Port of Los Angeles is an important economic engine for the region, generating more than 830,000 jobs and contributing more than $39 billion to the local economy each year…
Will Seroka convince shippers to keep it that way?
Check out today’s featured article from Supply Chain Dive to read about Port of LA Director Gene Seroka’s mission to bring cargo back to the Southern California ports. ☕️
Featured Article:
LA port director embarks on ‘whistlestop tour’ to bring cargo back West | Supply Chain Dive
“The shadow of West Coast labor negotiations has shippers continuing to favor East Coast ports, reshaping U.S. cargo flow in the process.”
Inflation & Money Matters 💸
The inflation measures to watch for over the next 12 months
First off, what is “inflation” anyway? Economic inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. While this has been felt by mostly everyone over the past year, it’s also likely to continue for some time. According to November’s Institute for Supply Management Purchasing Manager’s Index, there is now a drop in new orders and hiring. Some are worried that a recession may be on the horizon, but there is always light at the end of the tunnel.
Experts such as Bank of America Institute economists David Tinsley and Anna Zhou are predicting that 2023 will be a time of “cyclical softening” and that in the long term, smart investments and pivots in business will pay off handsomely.
Inflation, while ranking the highest in concerns of small business owners and mid-market firm leaders, is not the end of the world.
Retail & Exports 🛍️
American retailers are asking suppliers to slow down on sending merchandise
An excess of merchandise is sitting untouched on US retail companies’ shelves. The top twenty public apparel companies in the US have inventories that are up by 26% since 2019, and they’re struggling to sell. Chairperson of the International Housewares Association trade group Steve Greenspon shared some insider knowledge that executives at large retailers are asking buyers to minimize inventory. At this point, suppliers could be offering retailers free merchandise and retailers wouldn’t take it.
Having too much inventory can tie up a significant amount of capital, as retailers have to pay for the inventory upfront before it is sold. This can lead to cash flow issues and make it difficult for retailers to invest in other areas of their business or take advantage of new opportunities. Excess inventory can also lead to storage and logistical issues, as retailers may not have enough space to store all of the items they have in stock. This can result in higher storage costs and can make it more difficult for retailers to manage their inventory effectively.
Let’s Get Global 🌎
Talking Homer Simpson GIF via GIPHY
📔 Insurance companies are backing away from coverage of vessels going to Russian or Ukrainian ports. Shipping firms transporting commodities such as oil and grains are beginning to panic as underwriters begin to pull back from reinsuring any risks that are related to the Russia-Ukraine war. Major German reinsurers Hannover Re and Munich Re have claimed all risks associated with the region will not be covered beginning in 2023. Shipping companies need insurance to protect against a variety of risks and hazards that can occur during the course of transporting goods by sea. These risks include damage or loss to the cargo being shipped, damage or loss to the vessel and its equipment, and liability for injuries or damages sustained by third parties.
💨 Reducing emissions in trucking is becoming a leading issue on the global stage. At COP27 in Copenhagen, Denmark this November, international leaders discussed carbon-related emissions from heavy trucks, both long-haul and drayage. The United States signed a non-binding memorandum of understanding (MOU) that vocalized agreement with converting 30% of trucking vehicle sales to zero emissions within the next seven years. EV modeling seems to be making headway, but critics have an ace up their sleeve: America’s severely lacking electric infrastructure.
iLevel With You
More topics for the average American household to consider…
🛍️ An “early holiday rush” was almost nonexistent this year. In a 2022 shopping survey conducted by Supply Chain Brain of 3,138 U.S. adults, 50% said that they did not begin holiday shopping until November. Almost 30% waited to start holiday shopping until after the infamous Black Friday spree. With inflationary and supply chain issues still at the forefront, American consumers are struggling to make ends meet and spending is staying slightly muted - even during the busiest time of the year.
GET SMART
Ramp up that brain power for these advanced topics…
🔍 Customer service is key: so what should stakeholders do to improve it? Industry insiders are sharing their insights with Inbound Logistics, hoping to help other supply chain professionals and companies enhance their partnerships with partners and consumers.
🤖 Kodiak Robotics Inc. is boasting a “genius” autonomous driving system. The self-driving trucking company is claiming that its in-house system can handle tire blowouts in a safer manner than a human driver and that complete control of the truck will be maintained in this instance.
🧠 Aruna Hussain, Managing Director of Europe and Mediterranean, for Sealand is sharing her insight. Hussain represents the leadership of the Maersk company in Europe and has discussed her thoughts on shaping the future of logistics and supply chains with Alex Hadwick, the Head of Research at Reuters Events.
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.