Newsletters

The Stockout: Reefer spot rates fall as contract rates catch up

Reefer spot rates hit five-month low as capacity loosens. After a relentless uptrend from May through September 2020, reefer spot rates stabilized through the end of the year. Aside from a short-lived spike around the holiday season, rates have contracted at a rapid rate through 2021 and are now at the lowest level since August. 

The decline in reefer spot rates coincides with falling tender rejection rates (ROTRI), a measure of how difficult it is for shippers to source capacity. Easing price...

https://www.freightwaves.com/news/the-stockout-reefer-spot-rates-fall-as-contract-rates-catch-up

Grocery fulfillment optimization leads to Instacart layoffs

This is an excerpt from Thursday’s Point of Sale retail supply chain newsletter.

Prior to the pandemic, less than 5% of all grocery spending occurred online. The coronavirus prompted millions of Americans to purchase groceries online for the first time, including older generations that had not even been considered potential market participants. Recent data from the U.S. Bureau of Labor Statistics shows 28% of baby boomers and silent generation shoppers increased their online grocery purchases...

https://www.freightwaves.com/news/grocery-fulfillment-optimization-leads-to-instacart-layoffs

Transmission: Is it time to say goodbye to just-in-time?

Here’s what’s cookin’ today in Transmission:

  • Chip shortage revealing auto industry flaw that’s been around for decades
  • Current state of Detroit remains positive amid shortage
  • Industry news

Chip shortage revealing auto industry flaw that’s been around for decades

The semiconductor shortage is an ongoing issue that’s been disrupting the automotive supply chain since late 2020. During the pandemic, automakers cut spending on chips due to production halts and lack of demand. As OEMs resumed...

https://www.freightwaves.com/news/transmission-is-it-time-to-say-goodbye-to-just-in-time

The Stockout: Kraft Heinz cleans up its packaging

Kraft Heinz takes another step toward a more sustainable future. In the last edition of The Stockout, I wrote about how Kraft Heinz is testing the company’s first microwavable cup, set to launch sometime during 2021 upon the completion of testing. On Friday, Kraft Heinz announced that it was launching a new eco-friendly sleeve multipack in the United Kingdom. 

Image: The Kraft Heinz Company

This move will eliminate 550 tonnes of plastic on supermarket shelves, Kraft Heinz said. The cardboard...

https://www.freightwaves.com/news/the-stockout-kraft-heinz-cleans-up-its-packaging

Transmission: Continental predicts software use in vehicles will rise to 40% by 2030

Another week in the books. Here’s what’s cookin’ today in Transmission:

  • Software has a big role to play in the future of the auto industry
  • Stellantis’ focus for the future
  • Industry news

Software has a big role to play in the future of the auto industry

For decades, the automotive industry grew accustomed to normality. Automakers build cars themselves. Suppliers provide needed components to OEMs. However, as we all know, times are changing. There’s a push for more digitization and a growing need...

https://s29755.pcdn.co/news/transmission-continental-predicts-software-use-in-vehicles-will-rise-to-40-by-2030

Most recent FedEx pricing surcharges feel permanent

This is an excerpt from Thursday’s Point of Sale retail supply chain newsletter.

FedEx announced Friday it will implement a new peak surcharge on Express and domestic residential Ground shipments, as it continues to deal with “elevated volume” due to the pandemic. 

The surcharge will impact shippers that had a weekly average volume of more than 30,000 packages between Jan. 4 and Jan. 31. The fee will take effect Feb. 15 and apply until further notice, the carrier said. 

Shippers who fall into this...

https://www.freightwaves.com/news/most-recent-fedex-pricing-surcharges-feel-permanent

Peloton: The poster child for Containergeddon

This is an excerpt from Thursday’s Point of Sale retail supply chain newsletter.

In early November, mounting delays for Peloton exercise equipment led me to title the second  Point of Sale edition ‘Can Peloton avoid disaster this season?’. At that time, there were rumblings from restless customers and estimated shipping times of four to six weeks, more than double PTON’s “normal” (pre-COVID) window of two weeks. Now, it’s no longer rumblings but rampage and not four weeks, but 10. The answer to...

https://www.freightwaves.com/news/peloton-the-poster-child-for-containergeddon

The Stockout: Reefer capacity tightens in Northeast

It is becoming increasingly difficult to source transportation out of the Northeast. Over the past month, reefer capacity has become easier to source across the country due to seasonal trends along with absolute capacity beginning to return to the market.

“Historically, it’s usually easier to source capacity during the first quarter than it is the fourth quarter,” Capital Logistics founder and Chief Operating Officer Michael Feig told me Monday. “I think we are seeing that trend continue...

https://www.freightwaves.com/news/the-stockout-reefer-capacity-tightens-in-northeast

Despite losing momentum late, holiday sales surprise to the upside

This is an excerpt from Thursday’s Point of Sale retail supply chain newsletter.

Despite retail sales declining sequentially each of the last three months of the year, the 2020 holiday shopping season was one for the record books. Retail sales during 2020’s November-December holiday season grew an unexpectedly high 8.3% over the same period in 2019. The 8.3% increase was more than double the 3.5% average holiday increase over the previous five years, including 2019’s 4% gain. 

(Chart: National...

https://www.freightwaves.com/news/despite-losing-momentum-late-holiday-sales-surprise-to-the-upside

Transmission: Mexico- the land of opportunity…for auto industry

Tuesday is here, so is Transmission. Here’s what’s cookin’ today:

  • The rise of reshoring points to the rise of nearshoring
  • Used auto sales down, values up
  • Industry News

The rise of reshoring points to the rise of nearshoring 

Reshoring has been in a slump the past decade, but 2020 saw it increase by more than 45%. FDI Markets found that in 2020, reshoring accounted for more job growth than foreign direct investment (FDI), with 69,000 manufacturing jobs reshored compared to 42,000 roles created...

https://www.freightwaves.com/news/transmission-mexico-the-land-of-opportunity-for-auto-industry

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