πŸ’¨ Port in Smoke



Good morning! It’s National Movie Night! Grab your popcorn & settle into your favorite spot. 🍿 Here are some of our recommendations:

  • β€œThe Founder" (2016): This biographical drama explores the origins of the fast-food giant McDonald's and highlights the role of efficient supply chain management in its success.

  • "The Coca-Cola Kid" (1985): This Australian comedy-drama offers a satirical take on the beverage industry, particularly focusing on the global giant, Coca-Cola.

  • "The Big Short" (2015): This gripping drama-comedy delves into the 2008 financial crisis and the collapse of the housing market. While the movie primarily focuses on the financial industry, it indirectly highlights the interconnectedness of supply chains.

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Container terminals at the Port of New York and New Jersey closed early on Wednesday due to thick smoke caused by Canadian wildfires. The closure was prompted by poor air quality, with air quality alerts issued across the Northeast. The region experienced reduced visibility and hazardous levels of air pollution, leading to flight delays and warnings for the public to avoid outdoor activities. The closure of the container terminals at the busiest port on the U.S. East Coast is expected to cause disruptions to operations and potential delays in cargo movement. Efforts are being made to monitor and improve the air quality, with normal operations expected to resume the following day. 

Check out today’s featured article from G Captain to read about the rough conditions that are causing closures and delays all around the East Coast. How long will these conditions make the air quality so destructive? Will this cause lasting effects?


Featured Article:

Smoke Closes Container Terminals at U.S. East Coast’s Busiest Port | G Captain

β€œContainer terminals at the Port of New York and New Jersey closed early Wednesday as thick smoke from Canadian wildfires engulfed the region.”


Rail & Network Association πŸš‚

Union Pacific and BNSF have introduced new intermodal services at Port Houston

Union Pacific and BNSF, two of the largest rail carriers in the United States, have introduced new intermodal services at Port Houston, transforming the logistics landscape for transporting goods to key U.S. markets. With Union Pacific's service, intermodal containers can now be directly transferred from ships to railcars, enabling efficient transportation to cities such as Denver, Salt Lake City, Oakland, Los Angeles, and El Paso. Similarly, BNSF's service connects to its intermodal hubs in Denver and the Dallas-Fort Worth area, providing seamless connectivity for cargo movement. 

These new services have eliminated the need for containers to be trucked to the nearest rail facility in Houston, resulting in a significant reduction in highway congestion. Port Houston, the nation's fifth busiest port, recognizes the immense value of these intermodal solutions in ensuring the smooth and efficient movement of cargo across the United States. By offering direct transfers and bypassing the traditional trucking process, these services optimize transportation logistics and contribute to increased operational efficiency and productivity within the port. The introduction of these innovative intermodal services marks a significant advancement in the transportation infrastructure at Port Houston, benefiting both businesses and the overall supply chain network.

Read more from Supply Chain Dive β–Ά


Money Matters & Consumerism πŸ’°

Record amount of spending forecasted for Father’s Day

Consumers are showing increased appreciation for fathers this year, as indicated by the National Retail Federation's survey. They are expected to collectively spend a record-high of $22.9 billion on Father's Day celebrations, surpassing last year's $20 billion and the previous record of $20.1 billion in 2021. Three-quarters of consumers plan to celebrate Father's Day, and the average spending per person is projected to reach $196.23, exceeding the previous record of $174.10 in 2021. Online shopping remains the preferred method for purchasing Father's Day gifts, with 43% of consumers choosing to shop online. Department stores, discount stores, and specialty stores are also popular shopping destinations.  

The surge in spending is attributed to a higher percentage of consumers purchasing clothing, electronics, personal care items, and planning special outings. Greeting cards, clothing, special outings, gift cards, and personal care items are among the most popular Father's Day gifts. Consumers aged 35-44 are expected to be the biggest spenders, while those aged 45-54 plan to increase their spending the most compared to last year. Additionally, there is an increasing interest in giving experiences such as tickets to sporting events or concerts, as well as product subscription boxes.

Read more from MHL News β–Ά


Let’s Get Global 🌎

πŸ“‰ Imports for the first half of 2023 are projected to decline by 22% compared to the same period last year. According to the Global Port Tracker report by the National Retail Federation and Hackett Associates, import cargo volume at major US container ports is expected to be 22% lower in the first half of 2023 compared to the same period last year, despite increased consumer spending. Disruptions at West Coast ports have not yet significantly impacted nationwide data.

πŸ‡΅πŸ‡° The Toyota manufacturer in Pakistan serves as a cautionary tale for supply chain management. The Indus Motor Company (IMC) in Pakistan, which manufactures Toyota vehicles, has experienced ongoing production problems due to inventory shortages. This is the fourth time the company has ceased production this year, with the latest shutdown occurring from 3-8 June. IMC attributed the issues to supply problems faced by certain foreign vendors, leading to insufficient inventory levels to sustain production. The situation highlights the risks of relying too heavily on a single supplier, emphasizing the importance of having a diversified supplier base to mitigate supply chain disruptions.


iLevel With You 🏑

More topics for the average American household to consider…

🧐 What is driving the desire among Americans to seek part-time employment? As the pandemic recedes, more Americans are gravitating towards part-time and freelance work, seeking flexibility in the job market where workers still have the upper hand. The number of individuals voluntarily working part-time reached 21.8 million in May, a 5% increase from a year ago and a 15% increase from a decade ago. Factors such as the desire for work-life balance, increased caregiving responsibilities, and the ability to set their own schedules have driven this trend.

πŸš› Schneider has commenced the use of its electric heavy-duty trucks on regional routes. Schneider National has launched an all-electric trucking fleet and high-scale e-charging center in Southern California. The fleet, which includes Freightliner eCascadia trucks, is primarily focused on regional and local logistics. The eCascadia trucks have a range of 220 miles and can achieve an 80% charge within 90 minutes. Schneider has already begun using electric trucks for deliveries and aims to have a total of 92 eCascadia trucks by the end of the year.

🐴 The Pony Express has been revived and is once again in operation. The National Pony Express Association and the U.S. Postal Service are commemorating the Pony Express' 163rd anniversary with a 10-day, nearly 2,000-mile ride from Old Sacramento, California, to St. Joseph, Missouri. Around 1,500 postal customers will have their mail delivered using the same system employed during the 18-month period in 1860 and 1861. The event will feature 600 riders carrying the traditional mochila and switching off every 10 miles, just like in the Old West.


Get Smart 🧠

Ramp up that brain power for these advanced topics…

πŸ“… Logistics Managers Index (LMI) experienced a contraction in May. In May, the Logistics Managers Index (LMI) recorded a contraction, reflecting a slowdown in the logistics industry. The LMI, which measures current and future business conditions, fell to 47.3, marking its first contraction since its inception over six years ago. The decline can be attributed to various factors, including the ongoing freight recession, persistent inflation, and high-interest rates.

πŸ‘” Chief Supply Chain Officers are addressing inventory challenges in their organizations. Bill Benton, the co-founder of Gains, highlights the reasons why planning processes often fail to effectively address inventory challenges. One major issue is the reliance on outdated and simplistic methodologies in inventory policy, which do not consider factors such as cost, supply variability, or demand forecast variance. Additionally, there is a lack of consideration for the complex interdependencies within supply chains, both upstream and across multiple tiers of distribution.

⛓️ The Bright Future of Blockchain Endures, Even Now. The recent crash of the crypto market hasn't dampened the potential of blockchain technology, which continues to hold promise as a solution to various problems. In a virtual discussion hosted by shopping app Fetch and Fast Company, leaders highlighted the challenges of building customer loyalty in a crowded market and changing consumer behaviors. Key takeaways included the importance of personalization and sustainability, leveraging data for personalization, communicating brand values, and utilizing peer-to-peer marketing to engage customers and create brand ambassadors.


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