Michigan State University

How Soon Can The Supply Chain Operate Normally?

A recent news article published in the G Captain asks When Will The Supply Chain Return To Normal?

Louttit’s team of marine traffic managers for the ports

Two years ago this week, as fully loaded container ships congregated off the coast of Southern California, Louttit’s team of marine traffic managers for the ports of Los Angeles and Long Beach started keeping daily records on a spreadsheet that today measures 736 lines and 13 columns. Their mission: organize a queuing system to ensure that...

https://mfame.guru/how-soon-can-the-supply-chain-operate-normally/

What price will the supply chain pay for resiliency?

At one time, a factory in Denmark run by pharmaceutical firm Novo Nordisk A/S (ADR: NVO) made half of the world’s supply of insulin. Vowing to never run short of a product that people’s lives depended upon, Novo kept a five-year supply in the deep freeze.

Few companies will go to such lengths to maintain optimal inventory levels. However, the anecdote is instructional, especially in light of recent events: While there’s a price to be paid for building resilience into supply chains, there is an...

https://www.freightwaves.com/news/what-price-will-the-supply-chain-pay-for-resiliency

Soaring fuel prices leave owner-operators with tough choices

Avery Vise, vice president, trucking for transport consultancy FTR, has some advice for owner-operators struggling with a massive spike in diesel fuel prices and plunging spot market rates: “There are good reasons to sell your truck and become a company driver,” Vise said.

Under the circumstances, it wouldn’t be surprising if some of the 350,000 registered owner-operator drivers seek the protection of company driving, or lease their independent services to a fleet, something that 44% of driver...

https://www.freightwaves.com/news/soaring-fuel-prices-leave-owner-operators-with-tough-choices

Does the decline in Dow Transports tell us anything?

The link between the Dow Jones Transportation Average and the more-familiar Dow Jones Industrial Average is as old as the hills. If the indices are moving higher in tandem, the U.S. economy is perceived to be doing well because industry is making and transports are taking. However, should the transports start falling, especially ahead of similar moves in the industrial average, then the perception is that the economy is slowing because shipping demand, historically a leading economic indicator,...

https://www.freightwaves.com/news/does-the-decline-in-dow-transports-tell-us-anything

Freight rate hikes over past 2 years unprecedented, economist says

No one needs to tell the users of transport services how high freight rates have climbed during the past two years. But recently released producer price data from the federal government provides empirical evidence to support the painful anecdotes.

The numbers are striking. Import air cargo rates rose 80% from January 2020 through January 2022, due largely to a massive curtailment of belly cargo capacity, which in normal times accounts for about half of international air commerce. Freight...

https://www.freightwaves.com/news/freight-rate-hikes-over-past-2-years-unprecedented-economist-says

Brick and mortar’s comeback story?

Q3 retail sales remain strong

The death of the retail store seems to be overexaggerated. Third-quarter retail sales from the Census Bureau, released last week, suggest strength in in-person shopping in the quarter and a slight slide in e-commerce market share.

In an analysis of the data, Jason Miller, associate professor at Michigan State University’s Eli Broad College of Business, dug into the data and concluded while pure-play e-commerce retailers are thriving, for those retailers with physical stores, their e-commerce...

https://www.freightwaves.com/news/brick-and-mortars-comeback-story