Amazon Pauses Plans for Some Fulfillment Centers, Cancels Others
Amazon’s ambitious expansion plans have hit a snag, with six new distribution centers being canceled, eight delayed, and two postponed “indefinitely.” This unexpected turn of events follows the e-commerce giant’s recent announcement to double their fulfillment network at a cost of billions. The latest data from the U.S. Census Bureau showed a 2.4% growth in […]
What is the Driving Factor Behind Container Price Gains?
Freight rates, in addition to other rates across several industries, have been fueled by the invasion of Ukraine by Russia, as well as a global uptick in demand in a post-Covid economy for diesel, gasoline, and jet fuel. Gas prices are coinciding with a profit boom for the owners of tankers that carry petroleum products. […]
Ocean Shipping Reform Act Passed House of Representatives
For the first time since 1998, the regulations governing U.S. container trades have received an overhaul. With an overwhelming approval of 369-42, the U.S. House of Representatives passed the Ocean Shipping Reform Act (OSRA) of 2022, which President Biden is expected to sign soon. TA President and CEO, Chris Spear, said that the Federal Maritime […]
Surface Transportation Board Severely Disappointed in Class I Railroads
The four major U.S. Class I railroads are under heavy scrutiny by the Surface Transportation Board (STB) for not providing enough information regarding their rail service recovery plans. The STB issued a requirement for all four railroads on May 6th to submit a rail service recovery plan in response to shippers’ concerns about deteriorating rail […]
Cargo Moving Thanks to Threat of Fees
According to the Ports of Los Angeles and Long Beach, threats of penalty fees are just as effective as the fees themselves. The container dwell fee announced by the White House late in October 2021 declared that ports would be implementing a fee of $100 per each day extra at berth. A fee that was, […]
Diesel Market Causing Confusion
The diesel market split into two directions last week, adding to the confusion and uncertainty that buyers have been facing. Inventories of ultra low sulfur diesel (USLD), which had already been at record-breaking lows, managed to decrease even further in price. USLD had been rising faster than the price of crude oil and gasoline on […]
GPA Expands Container Capacity
The Covid-19 pandemic dragged infrastructure issues directly into the spotlight, one of them being the dire need for capacity expansion at ports; An issue that was exacerbated by equipment shortages, labor shortages, and various supply chain disruptions. The Georgia Ports Authority (GPA) has unveiled a plan to increase container capacity at the Port of Savannah […]
Looming Strike Could Impact Railroad
Further supply chain disruptions are currently in the making as railroad giant Burlington Northern and Santa Fe Railway (BNSF) plans to unveil a new attendance incentive program that may cause over 35,000 employees to go on strike as soon as February 1st, 2022. BNSF claims the points-based program intends to improve shipping lead times, though […]
The Newest Way to Measure Supply Pressure
There is a new way to measure supply chain issues that are partially to blame for consumer price inflation: The Global Supply Chain Pressure Index (GSCPI). Researchers at the New York Federal Reserve invented this new calculation system using over 25 indicators, including, though not limited to, the Baltic Dry Index (BDI) and Harpex index. […]
Trucker Recruitment Backed by Biden
The Whitehouse unveiled a new plan earlier this month to ramp up recruitment efforts for new truck drivers. Aiming to improve industry retention and the quality of trucking jobs, the plan intends to increase the number of truck drivers on the road by making it faster and easier to get certified. Officials report that the […]
