As the saying goes, all good things must come to an end. And for me, that day is today. After 10+ years of writing the weekly news roundup, as well as a bi-weekly column for Logistics Viewpoints, today is my last day at ARC Advisory Group. Over these 10 years+ I have learned a lot about supply chain and logistics through conversations with end users, suppliers, and my colleagues. I want to say a special thank you to Steve Banker and Conrad Hanf who I have worked closely with for the last 10+ years on Logistics Viewpoints as well as countless research projects, surveys, and events. I’d also like to thank Clint Reiser, Mike Guilfoyle, and Andy Chatha. While the decision to leave ARC was not an easy one, it is time for me to focus on the next phase of my career. And with that, I bid you adieu, and let’s move on to this week’s logistics news.
- Walmart opens ocean shipping network to marketplace sellers
- Trio of West Coast ports added to DOT Supply Chain Data Platform
- Firmer freight rates on tap for 2025
- Canada’s major rail carriers begin shipping embargoes
- Looming US East, Gulf Coast port strikes could spark import surge
- USPS sees steep drop in expedited shipping demand
- Hurricane Debby caused $28 billion in damage and economic loss
Walmart Cross Border is port-to-door, full container load freight service from China to the U.S., according to the Walmart Marketplace website. The international inbound transportation service is only available to Walmart Fulfillment Services (WFS) sellers that source or manufacture goods in China, and all cargo must be shipped from Yantian, Shanghai, or Ningbo ports. Cargo imported into the U.S. are then directly transported to a Walmart fulfillment center. WFS is a third-party marketplace for sellers initially rolled out in 2020 to boost revenue through existing e-commerce infrastructure, which has since added an inventory-focused offering to the platform. The seller marketplace is part of Walmart’s larger strategy to expand its services beyond those of a typical retailer.
The U.S. Department of Transportation (DOT) has added three major West Coast ports to its data-sharing supply chain platform. On August 13, the DOT announced that Ports in Oakland, Seattle and Tacoma have all been added to its Freight Logistics Optimization Works (FLOW) network, joining the Port of Los Angeles and the Port of Long Beach to round out the five largest West Coast shipping hubs. The FLOW initiative was first launched in 2022 as a response to disruptions brought on by the pandemic. It collects and aggregates purchase order information from importers, as well as data from ocean carriers, ports, terminals and railways, all to provide supply chain stakeholders with an up-to-the-minute snapshot of logistics networks across the globe. Oakland, Seattle, Tacoma, Los Angeles and Long Beach make up 95 percent of all inbound container volume to the West Coast. With each of those ports now included in the FLOW initiative, the DOT says that carriers, shippers and ports will all be able to “better plan for and predict capacity needs,” and head off any potential bottlenecks down the line.
Conditions in the truckload freight market weakened slightly in June but stayed positive, showing that core freight dynamics improved for trucking companies during the month, according to a report from transportation analysis firm FTR. That conclusion comes as FTR’s Trucking Conditions Index for June stayed in positive territory in June, although it weakened to 0.95 from May’s 2.24 reading. The report predicted a general improvement in market conditions for carriers, but Bloomington, Indiana-based FTR warned that its index could see both positive and negative readings in the coming months before turning consistently positive by the end of this year.
Canada’s major rail carriers have embargoed shipments of hazardous items ahead of a possible work stoppage that could happen as soon as August 22. Canadian National Railway and Canadian Pacific Kansas City say the decision to no longer ship certain products is the first step of a necessary phased shut down of their respective networks unless the railroads reach a new labor deal with the Teamsters Canada Rail Conference. The parties resumed talks last week but still have no deal. Canadian National embargoed items that present toxic or poison inhalation hazards, and rail security-sensitive materials, including:
- chlorine, which has assorted uses from water purification and as an additive for household cleaners;
- bromine, a cleaning agent;
- ammonia, an ingredient in agricultural fertilizer;
- chloropicrin, a chemical used to fumigate stored grain and treat soil against fungi and insects, and;
- ethylene, a product with several applications such as an anesthetic or refrigerant.
Canadian National in a service notice said its embargo of hazardous items originating from the U.S. began Monday, 10 days ahead of possible strike actions. It will begin additional embargoes Thursday of shipments originating in Canada and destined for points around Canada or to the U.S. and Mexico, according to the notice.
According to the latest Global Port Tracker report released by the National Retail Federation (NRF) and Hackett Associates, monthly inbound cargo volume at major US container ports is projected to reach “near-record” levels this month as retailers rush to import merchandise ahead of a potential strike at East Coast and Gulf Coast ports. The surge comes as contract negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance have stalled, with the current agreement set to expire on September 30. The ILA has threatened to strike if a new contract is not reached by then. The potential strike compounds existing supply chain challenges, including ongoing attacks on commercial vessels in the Red Sea, which have led to increased shipping times, costs, equipment shortages, and congestion in Asian ports.
The U.S. Postal Service’s expedited package shipping services have seen a steep drop in demand, according to quarterly results released Thursday. Shippers are embracing slower parcel delivery services to save on shipping costs, a choice that’s easier to make as they move inventory closer to end consumers and carriers improve transit times within their ground transportation networks. UPS is seeing shippers “trade down” from speedy air transportation to more cost-effective options like its SurePost product, which utilizes the Postal Service for final-mile delivery As a result, the agency weathered a 40.7 percent decline in Priority Mail Services volume year over year for the third quarter of fiscal year 2024, which ended June 30. The category includes shipments for Priority Mail, which offers delivery in one-to-three business days, and Priority Mail Express shipments, providing delivery in one to two days with a money-back guarantee.
The total damage and economic loss from Hurricane Debby in the United States is $28 billion, according to a preliminary estimate from forecasting firm AccuWeather. That calculation includes damage to property, job and wage losses, crops, infrastructure damage, interruption of the supply chain, auxiliary business losses and airport closures as well as flight delays. The estimate also accounts for the costs of evacuations, relocations, emergency management and the government expenses for and cleanup operations and the long-term effects on business logistics, transportation and tourism. In comparison, AccuWeather says that Hurricane Beryl brought $28-32 billion in total damage and economic loss in July. Last year Hurricane Idalia, which made landfall into the Big Bend of Florida, caused $18-20 billion in total damage and economic loss. Hurricane Ian, in 2022, caused $180-210 billion. Hurricane Florence, another prolific rainmaker for the Southeast and Middle Atlantic, caused $50-60 billion in damage in 2018.
That’s all for this week, and that’s a wrap for me. It’s been a privilege bringing you the logistics news for the last 10+ years. Enjoy the weekend and my final song of the week, Don’t You Forget About Me by the Simple Minds.