It’s that time of year again – Super Bowl weekend. According to the National Retail Federation’s (NRF) annual Super Bowl survey, American adults say they will spend an average of $81.30 on the Super Bowl, for a total of $14.8 billion. The survey found that 72 percent of adults plan to watch the game, down from 76 percent last year. Among those watching, 79 percent plan to buy food and beverages, 10 percent will buy team apparel and accessories, 7 percent will buy decorations, 7 percent will buy new televisions, and 4 percent will buy furniture such as entertainment centers. This $14.8 billion does not take into account the amount of money that will be wagered in Vegas on the game, which saw nearly $160 million in action last year. The prop bets have become almost as fun as the game itself, especially as they span across multiple sports. For example, this year, you can bet on whether Tom Brady will have more attempts than James Harden has points against the Jazz that night. So the countdown for Super Bowl LIII is on; go Pats! And now on to this week’s news:

• FedEx adds late order, next-day delivery for retailers
• PostNL couriers to accept returns at the door
• China joins US, EU to negotiate cross-border e-commerce rules
• Descartes Systems Group to acquire Visual Compliance
• Arkansas judge rules truck drivers should be hourly, not by the mile
• Trader Joe’s to kill grocery delivery program
• USPS raises postage rates for 2019

In order to grow their e-commerce business without a reliance on Amazon, FedEx is introducing a new late-night shipping option for retailers. Currently, Amazon only accounts for about 1.3 percent of FedEx’s revenue, and the company sees better growth in helping retailers compete against the e-commerce giant. The main driver is to meet the needs of retailers to quickly send orders to their online customers. The new program will enable retailers to deliver items the next day, even on orders placed as late as midnight. FedEx drivers will pick up packages as late as 2am and bring them to a sorting hub. From there, local market deliveries can happen as soon as that day, or within two days for other destinations in the US. FedEx tested the program in Los Angeles in 2017, and with its success, rolled it out to 100 markets. FedEx sees the delivery market expanding rapidly over the next five-plus years and will make this program available in more markets as a result.

I’ve written about the impact returns can have on the supply chain, and how these returns are handled in the evolving omni-channel environment. According to a lot of research I’ve done, e-commerce orders can often be returned to the store; PostNL is taking returns in a different direction. In order to boost customer convenience and sustainability, couriers from PostNL will now accept returns when making a standard delivery. Customers will be required to pack returns properly for pick-up, which includes printing out a return label and barcode from the retailer or PostNL’s website. The service is currently available in the Netherlands, and PostNL plans to roll the program out in Belgium and other markets soon.

As e-commerce continues to grow, so too do the intricacies of cross-border e-commerce. This week, it was announced that China will join a group that includes the US, EU, and 47 other members of the World Trade Organization (WTO) in negotiating new rules to cover the $25 trillion (and growing) e-commerce market. According to a statement issued by the EU, the new rules will “seek to reduce barriers that prevent cross-border sales, ban duties on electronic transmissions, ensure the validity of e-contracts and e-signatures, and address forced data localization requirements.” The ongoing trade war has clearly made cross-border commerce a bit more difficult as a result of the heavily imposed tariffs and taxes. A formal agreement on the rules of cross-border e-commerce would be a big step forward. The group is expected to hold their first formal negotiating session in March.

Descartes Systems Group is continuing its trend of highly focused acquisitions. The company has announced that it will pay $250 million to acquire Visual Compliance, a vendor of software for denied party screening in global trade. Visual Compliance automates customs, trade, and fiscal compliance processes, with a focus on denied and restricted party screening processes and export licensing. Descartes has said that the acquisition will enhance its ability to provide data, content, and solutions to customers and partners to enable comprehensive global trade compliance reviews to be completed. Visual Compliance, a group of companies operating under the names “Visual Compliance,” “eCustoms” and “MSR” are all operated by Management Systems Resources Inc. and have annual revenues of $30 million.

The truck driving business is not an easy job. Drivers sometimes spend weeks on the road living out of their cabs. However, when it comes to work time, these drivers are legally capped at 70 hours over an 8-day period. Typically, drivers are paid by the mile, not the hour, which means they do not receive overtime, and laws governing work times can inhibit their ability to earn more money. Well, a federal judge in Arkansas has said that this violates the Fair Labor Standards Act. US District Judge Timothy Brooks reaffirmed that transportation companies violate federal labor laws when they don’t pay their truck-driver employees at least minimum wage for every non-sleeping hour spent in their truck. This is in response to a class-action lawsuit filed by 3,000 truck drivers against PAM Transport. This ruling could have serious implications on the entire trucking industry.

I have written about the expansion of grocery delivery ad nauseum here; however, a major grocery retailer is moving in the opposite direction. Even though its major competitors are going all-in on grocery delivery, with expanded partnerships with crowd-sourced delivery companies, Trader Joe’s is killing grocery delivery in New York and will not roll it out in other markets. The grocery chain offered delivery in New York for 10 years but is killing the service due to rising costs. Trader Joe’s has always been about offering low cost options to its customers; the high cost of last mile deliveries was making this unsustainable, hence the decision to end the service.

And finally, the USPS has announced new postage rates for 2019. Effective earlier this week, the cost of sending a normal-sized one-ounce letter with a Forever stamp is now 55 cents, up from 50 cents. And a small flat rate box will now cost $7.90, up from $7.20, with other Priority and flat rates going up accordingly. Certified mail now costs $3.50 per piece, up from $3.45. These price increases are the largest single-year jump the agency has ever made. However, it should all be taken with a grain of salt, as the USPS has one of the lowest letter rates in the industrialized world.

That’s all for this week. Enjoy the weekend, the Super Bowl, and the song of the week, Time to Confess by Gov’t Mule.

This past Sunday was a remarkable day for the NFL, with both conference title games going to overtime for the first time ever. Here in Boston, it was business a usual, as Tom Brady and the Patriots advanced to yet another Super Bowl. But in New Orleans, a horrible missed pass interference call has left the city reeling, with many people saying they will never get over this loss. With just under two minutes left, in a 20-20 game, the Saints had the ball at the Rams 13-yard line, facing a third-and-10. Rams cornerback Nickell Robey-Coleman destroyed Saints receiver TommyLee Lewis before the ball got there; he could have been called for either pass interference or helmet-to-helmet contact. Instead, no call, and the Rams won the game in overtime. Some Saints fans decided they couldn’t stand for this. Two Saints season-ticket holders are suing NFL Commissioner Roger Goodell and the league for a range of damages, including mental anguish, emotional trauma, “loss of enjoyment of life” and “distrust of the game which has become the National pastime.” While the end result will not be changed, there is at least a good chance the replay rules will be changed for next year. But for Saints fans, this “moral victory” simply isn’t enough. And now, on to this week’s logistics news.

• Amazon in the news:
  • Amazon introduces wheeled autonomous robots for parcel delivery
  • Amazon built an electronic vest to improve worker/robot interactions
• EU eyes tariffs on $23 billion of US goods if Trump taxes cars
• UPS and Latch add 10 US cities to in-building delivery program
• Walmart adds four grocery partners
• JD launches first approved drone flight in Indonesia
• New York to begin enforcement of ELDs
• Government shutdown hurting inspections

Amazon has begun to test its new fleet of fully autonomous delivery robots. Named Amazon Scouts, the cooler sized vehicles are fully electric and are set to begin deliveries in Snohomish County, Washington. The bots have a variety of sensors built in that allow them to navigate suburban streets at a walking pace, while avoiding common obstacles such as people, animals, trash cans, mailboxes, cars, bikes, and other iems. Unfortunately, the delivery robots require human assistance, as they can not climb stairs or make the actual delivery. Amazon will begin testing the bots with an Amazon employee making the deliveries, but customers could also come out of their house to retrieve the package. The robots will deliver during daylight hours Monday to Friday.

Amazon has also been at the forefront of rolling out robots within its warehouses. A new initiative has the company using a worker safety vest at 25+ sites to improve worker/robot interactions. The new vest is mainly designed to keep human employees safe when entering a space where the robots are working. Warehouse employees generally enter these areas to service a robot or to retrieve a fallen item. The Robotic Tech Vest has built-in sensors which alert robots in the area of the employee’s location, ensuring the bots slow down to avoid a collision. Improving safety is clearly important for Amazon, especially after December’s incident where a robot punctured a can of bear repellant in a warehouse, sending 24 workers to the hospital. The vest is designed to work in tandem with the robots’ existing obstacle avoidance detection.

The trade war and threats of imposing taxes and tariffs continues to create friction in the global economy. The European Union announced this week that it is prepared to hit 20 billion euros ($22.7 billion) of US goods with tariffs should President Donald Trump follow through on a threat to impose duties on EU cars and auto parts. Six months ago, a truce was struck between he US and the EU, but that could be crumbling. A US probe of automotive imports is due to be completed in February. If the Trump administration does enact the taxes, it would add 10,000 euros to the sticker price of European vehicles imported into the country. This will certainly be an interesting development to watch.

Last year, UPS and Latch launched a pilot program in New York and San Francisco to enable UPS drivers to deliver packages inside apartment buildings that were equipped with a Latch access device. The pilot program was deemed a success, and this week, the two companies have announced plans to roll the partnership out to 10 more cities in mid-2019. The new markets will include Atlanta, Chicago, Los Angeles, Houston, Dallas, Washington D.C., Philadelphia, Boston, Miami, and Seattle. Although the Latch system can be used to access all parts of an apartment building, the partnership with UPS only grants UPS drivers access to the building’s common area.

As grocery delivery continues to pick up steam, Walmart is seeking out new partners to enhance its service. This week, the company announced partnerships with Point Pickup, Skipcart, AxleHire. and Roadie to expand the service to four more states. Using Walmart’s grocery delivery program, customers place an online order and select a delivery timeframe. Walmart’s personal shoppers pick the items, package them, and hand them off to one of Walmart’s grocery delivery partners. Walmart’s grocery delivery is currently available in more than 800 stores and plans to be in 800 more this year. Point Pickup, Skipcart, AxleHire. and Roadie join a roster of other partners including Postmates, Deliv, and DoorDash, which just became the first on-demand service to be offered in all 50 states.

JD.com has been pushing the boundaries for drone deliveries over the last few years, running a number of successful pilots and use cases, as well as rolling out drone deliveries in certain areas. The company announced this week that it had completed Indonesia’s first government approved drone flight, which could be a breakthrough for drone delivery in Southeast Asia. The test flight took place on January 8, 2019, in West Java, Indonesia, where the drone flew from Jagabita Village, Parung Panjang to MIS Nurul Falah Leles Elementary School to deliver backpacks and books to students. The items delivered by drone were part of a larger donation of supplies from JD.com to the school.

Although the ELD mandate has been in place since December 2017, a lawsuit has kept the state of New York from enforcing the federal regulation. Well, the wait is over; the New York State Department of Transportation announced that state inspectors will begin enforcing federal electronic logging device rules. The aforementioned lawsuit was brought against the state by the Owner-Operator Independent Drivers Association, sought to restrain New York officials from enforcing the ELD mandate. A big reason for the move to begin enforcement is the fact that it restores New York’s eligibility for grants under the Federal Motor Carrier Safety Administration’s Motor Carrier Safety Assistance Program. The program issues grants to states that agree to incorporate Federal Motor Carrier Safety Regulations into state law and enforce those regulations.

The US government has been partially shut down for 34 days, making it the longest shutdown in US history. As a result of the shutdown, non-essential employees at agencies including the US Department of Agriculture and the Consumer Product Safety Commission have been furloughed. This has made inspections at ports of entry considerably longer and more difficult. Contrary to some beliefs, inspections are still taking place. However, the inspections are taking longer which means that the shelf-life of fresh produce from overseas is getting shorter. Sixty-three percent of perishables and 89 percent of all flowers entering the US pass through Miami International Airport, which has considerably less staff on hand now than in normal operations. Because of this, items that generally take 48 hours at most to pass through inspections have sat for up to two weeks. More items lost to spoilage will only increase the price to end consumers. If the shutdown continues, the effects could soon be felt.

That’s all for this week. Enjoy the weekend and the song of the week, Warren Zevon’s Lawyers, Guns, and Money.

Tuesday, January 15 marked the tenth anniversary of the dramatic landing of US Airways Flight 1549. I happen to be in New York for NRF on that day, so not surprisingly I saw a lot of media coverage. Shortly after takeoff, the Airbus A320 hit a flock of geese and lost all engine power. The plane was approximately 3,000 feet in the air and Captain Chesley Sullenberger (Sully) radioed in that they had lost all engine power and would be returning to LaGuardia. When radio control gave Sully the runway to land on, he radioed in that the plane would not make it back to the airport. The plane was also unable to reach Teterboro Airport in New Jersey and soared less than 900 feet above the George Washington Bridge. Captain Sully made an unpowered ditching and successfully landed the plane in the middle of the North River section of the Hudson tidal estuary. Amazingly, even though there were a few serious injuries, nobody was killed in the emergency landing. The dramatic event even resulted in the Clint Eastwood directed film Sully, starring Tom Hanks. And now on to this week’s logistics news.

• Brexit in the news:
  • Honda to halt UK production during Brexit
  • Brexit forces biggest insulin supplier to turn to the skies
• Microsoft, Walgreens align to develop health-care delivery model
• Stop & Shop is planning to roll out small ‘driverless grocery stores’ in the Boston area
• Dutch retailer taps Deliveroo for half-hour deliveries in Amsterdam
• FedEx tiptoes into $9 billion online market for bulky deliveries
• First US crude cargoes head to China since trade breakthrough

Prime Minister Theresa May’s Brexit agreement was decisively defeated in a vote, and now political leaders are calling for a second vote as the deadline looms. And as the deadline looms, Brexit plans are impacting the overall global supply chain. With so much unknown right now, Honda has decided to suspend production at its British plant for six days in April after the UK leaves the European Union on March 29. The main reason is to give Honda a little bit of time to assess how to prepare for any logistics and border issues that arise following Brexit. According to a Honda spokesperson, “these contingency provisions have been put in place to best mitigate the risk of disruption to production operations at the Swindon factory. This is to facilitate production recovery activity following any delays at borders on parts.”

Also bracing for the chaos that could ensue following Brexit, Novo Nordisk A/S, the world’s biggest maker of insulin, has reserved space on airplanes and plans to boost stockpiles. This is to ensure that there will not be a shortage of the life-saving drug for diabetes patients in the UK. The normal stockpile for insulin is approximately seven weeks; the Danish drug maker is looking to boost those stockpiles to as much as eighteen weeks by the end of March. Novo is now pushing the UK government to open up other entry points to relieve pressure on the key port of Dover, England, and look at prioritizing medical supplies over other imports. This is just the latest instance of a company looking to stockpile as much inventory as possible; the big difference here is that this effort is literally a matter of life and death. With the recent Brexit vote, it is becoming more likely that the UK leaves the EU without a trade deal.

As Amazon continues to push into new business lines, the competition is pushing back. In response to its move into the healthcare industry, Microsoft is entering into a multi-year partnership with Walgreens. The two companies announced the plan to develop new health care delivery models, technology and retail opportunities. A big part of this plan is to combine Azure, Microsoft’s cloud and AI platform, with Walgreens’ customer reach. This means connecting the physical stores and their health information services through Microsoft’s services. Microsoft and Walgreens are also looking into the possibility of building “joint innovation centers” across the country. The partnership should help to streamline order fulfillment and potentially home delivery service.

Stop & Shop, the Quincy, MA grocery chain, has announced plans to launch “driverless grocery stores” in the Boston area. And no, the company is not talking about driverless delivery vehicles. Stop & Shop is partnering with San Francisco start-up Robomart to develop the stores. Robomart operates a fleet of electric, remotely piloted vehicles that carry around a selection of grocery items. This way, customers can actually pick out their own items from the store, rather than simply having them delivered. Given its limited size, 11 feet by 5 feet, the Robomart vehicles obviously do not offer the same assortment as a full-scale grocery store. But Stop & Shop has said that the initial assortment will include fruits, vegetables, convenience items like bread and milk, and meal kits. The vehicles, which will be re-stocked periodically as they roam, are expected to launch this spring.

As the grocery delivery market continues to heat up, so too does the market for meal kits and hot foods. Well, Dutch grocer Albert Heijn is partnering with Deliveroo to deliver hot meals in Amsterdam’s city center. The service, which is called Allerhande Kookt, allows customers to order hot meals from the retailer’s online database. The meals will be cooked by a team of chefs and delivered within thirty minutes. The pilot program will make use of electric bikes to collect products from one of two Albert Heijin to go stores in the city. The initial trial will last for two months before being evaluated and potentially expanded.

The online market for bulky items is growing, and FedEx has decided it wants to take a piece of the $9 billion market. Traditionally, bulky items such as washing machines and furniture were left to more traditional trucking companies as the items did not fit into sorting operations. But FedEx is piloting a program that will use the company’s freight business, which is an LTL operation that focuses on more industrial shipments. Under the program, FedEx will deliver bulky items into a customer’s home and assemble it for them. According to a FedEx spokesperson, “FedEx Freight is in the beginning stages of piloting a new service, FedEx Freight Direct, that will move larger, bulkier items to customers’ homes and businesses, and even offer light assembly for an additional fee. Demand for these types of delivery services has grown in recent years and we expect that trend to continue.”

Three cargoes of US crude are heading to China from the Gulf Coast, marking the first departures since late September and a 90-day pause in the trade war. According to vessel tracking data, the ships should arrive at Chinese ports sometime between late January and early March. China is the world’s biggest crude importer and became a top buyer of US crude after a 40-year ban on shipments was lifted in late 2015. China imported 325,000 barrels per day of US crude in the first nine months of 2018 alone. However, the trade war resulted in Chinese buyers avoiding US crude. All told, the three vessels are carrying about six million barrels of crude.

That’s all for this week. Enjoy the weekend and the song of the week, Tom Petty’s Learning to Fly.

Happy new year and welcome back to the Logistics Viewpoints news round-up. The holiday season was another record breaking year, as customers flocked to the web and to the store for all their gift-giving needs. And for those living near the Dutch coast, an additional round of gifts is showing up. Or should I say washing up. An estimated 270 containers are thought to have been knocked off the Panamanian-flagged MSC Zoe in rough seas near the German Wadden Sea island of Borkum. Beach combers have been picking up the spoils in Vlieland, Terschelling and Ameland. The items include chairs, toys, and even flat-screen televisions. However, people have been warned to keep away from closed containers, as three contain organic peroxides, which are highly explosive. Hopefully everyone will heed that advice. And now, on to this week’s logistics news.

• Laundry detergents shrink for Amazon
• Buy online, pick-up in-store drives holiday retail sales
• Trump hails “big progress” towards China trade deal
• China to restrict imports of scrap steel, aluminium from July
• Freight delays loom if government shutdown goes long-term
• Walmart in the news:
  • Walmart ramps up driver hiring amid shortage
  • Walmart China looks at smaller stores, home delivery

As e-commerce continues to grow, so too do the cost of last mile deliveries. As a result, retailers and brand manufacturers are looking at ways to make every order as profitable as possible. One way to do this is to make packages lighter. Tide and Seventh Generation have introduced redesigned laundry detergents that are several pounds lighter by cutting down on plastic in their packaging and using less water in their formulas. This means lower shipping costs for Amazon and other online retailers. For consumers, the new packaging has been designed to better survive the shipping process without leaking. Tide is putting its detergent into a cardboard box, making it 4 pounds lighter than its 150-ounce plastic bottles, but still able to wash the same 96 loads. Seventh Generation went with a compact plastic bottle that’s less than 9 inches tall, rectangular in shape and has no measuring cup.

Speaking of Amazon and shipping costs, brick and mortar retailers found a secret weapon this holiday season to help in the battle for market share: buy online, pick-up in-store (BOPUS). Retailers like Walmart, Best Buy, and Target expanded their BOPUS offerings this holiday season. The goal is two-fold. First, offering free in-store pick-up satisfies the same-day need of customers, or adds flexibility for customers that do not want an item shipped to their house. I actually took advantage of BOPUS for a gift this year for my wife, as I didn’t want her to see the LL Bean box on our doorstep. Secondly, it gets the customer in the store for cross-sell and up-sell opportunities. So just how much did these retailers use the service? According to Adobe Analytics, BOPUS spending increased 47 percent from November 1 to December 19 compared to a year ago, making it the biggest holiday on record for online pickups.

The escalating trade war, and the hope for advanced negotiations, have been a hot topic around here. According to President Trump, there has been “big progress” between the President and his Chinese counterpart Xi Jinping. The two presidents spoke at length by telephone Saturday, with each expressing satisfaction with trade talks initiated after their meeting earlier this month in Argentina. Trump said in a tweet that negotiations were “moving along very well” toward a comprehensive deal, while Chinese state media said Xi believed both sides wanted “stable progress.” A US trade delegation is heading to China next week to continue discussions. The planned discussions have both nations hopeful that the trade war may be easing, and a lasting agreement can be made.

China has announced another policy regarding imports. This time, the country is restricting the imports of scrap steel and aluminium starting July 1. Currently, scrap steel is on the unrestricted import list of solid waste products usable as raw materials. Starting July 1, scrap steel will be placed on a restricted import list, according to the Ministry of Ecology and Environment. Copper and aluminium raw materials meeting relevant national standards would not be considered solid waste, and can be imported as regular goods, it said. In the last year, China has clamped down on solid waste imports. The restrictions on waste imports are part of a “war on pollution” begun in 2017 that aims to clean up the economy and encourage domestic firms to recycle.

The government shutdown is nearing day 14 and has affected nearly 800,000 workers. Democrats have vowed to pass a funding bill; however, it does not include funding for the southern border wall, and Senate Republicans say they will not pass the bill without President Trump’s approval. The impact on the supply chain could be felt soon, as freight delays loom if the shutdown goes long-term. Reports indicate that backups and congestion on land and along the waterfront will be the most impactful, due to a lack of customs clearance personnel. The Port of Los Angeles for example, which is the country’s largest container port, relies on both the US Customs and Border Protection and the US Coast Guard for clearing and securing freight. Both are part of the Homeland Security department, which is affected by the shutdown. Port of Los Angeles spokesman Phillip Sanfield said the shutdown has so far not slowed freight clearance as customs and security agents there are exempt from the government funding problem. However, if the shutdown goes long-term, this could all change as the port expects record import volumes.

The driver shortage has been a growing concern for the shipping industry. However, in 2018, Walmart hired around 1,400 new drivers, up from 922 in 2017. Since August, the retailer added about 694 drivers in net fleet growth, a number which includes the turnover that’s coming mostly from retiring drivers. In direct response to the shortage, Walmart began aggressively hiring drivers this fall by offering $1,500 referral bonuses, using social media to reach the younger generation, shortening the application time from 73 days to 31 days, and changing the format of its hiring events resulting in a higher pass rate. Drivers still must have at least 30 months of experience and meet other stringent requirements. A first-year driver can expect to make $86,000 driving for Walmart.

 

Walmart is making a big bet on home delivery in China as e-commerce continues to grow. In its second year of a partnership, Walmart is introducing a new sales model with Chinese logistics company Dada-JD Daojia. The company is also exploring smaller stores and focusing on China’s lower-tier cities. In its latest store opening, Walmart is occupying about half the normal square footage of its typical “hypermarket” and will use a mini program within China’s ubiquitous WeChat messaging app to check out digitally. Customers that live within three kilometers of a store can also get guaranteed one-hour delivery. These are the moves the retail giant needs to make to stay competitive with Alibaba in the most populous country in the world.

That’s all for this week. Enjoy the weekend and the song of the week, Wipe Out by the Safaris.

After traveling through space for six months, the Mars InSight officially touched down on the red planet earlier this week. InSight is short for Interior Exploration using Seismic Investigations, Geodesy and Heat Transport, and according to NASA, will give the planet its “first thorough check-up since it formed 4.5 billion years ago.” The mission is to study the interior structure of Mars, specifically its crust, mantle, and core. The research will look at the interior structure of Mars to understand its formation and evolution. InSIght will also measure tectonic activity to give a snapshot of the makeup of Mars’ interior. Scientists are hoping to gain a better understanding of how rocky bodies form, evolve, and become a planet. This will help to give more insight into the origins of Earth as well. Good work by all the folks at NASA’s Jet Propulsion Laboratory in Pasadena, CA. And now, on to this weeks’ logistics news.

• Walmart testing same-day grocery delivery in China
• Amazon workers strike in Germany, Spain on Black Friday
• Hyundai Glovis deploys robots in South Korea
• XPO Logistics rolls out heavy goods last mile tracking
• Volvo to provide autonomous transport at Norwegian mine
• Renault drives into the future, sending cars across the Atlantic on sailing ships
• Upcycles develops new delivery trike

As the market for grocery delivery grows, and the competition intensifies, Walmart is testing same-day grocery delivery in China. The service, Walmart To Go, is being tested in a new store in Shenzhen, China. Walmart, which has recently partnered with Tencent to reach a broader customer base within China, will run the service through a mini program on Tencent’s WeChat, the leading mobile messaging app in China. The service gives customers access to nearly 8,000 SKUs including fresh products, condiments, snacks, baby items, personal care items, and homecare items, which can be delivered in as little as one hour. The deliveries will be fulfilled by JD.com’s crowdsourced online grocery delivery service Dada JD-Daojia.

Black Friday has come and gone, and retailers around the world were busy filling orders. Although not all workers were actually filling orders – Amazon workers in Spain and Germany went on strike on Black Friday and walked off the job. Amazon Germany said around 620 workers were participating in the strikes at its Bad Hersfeld and Rheinberg facilities. In Spain, workers at Amazon’s largest warehouse in San Fernando de Henares walked off the job as well. In both cases, workers were protesting against what they felt were unfair wages and working conditions. According to Amazon, in both Germany and Spain, the strikes did not interrupt the processing of customer orders, and “the majority” of employees were still processing orders. It will be interesting to see if any more strikes are planned as the holiday season gets in the full swing.

We have seen an uptick in warehouse automation over the last few years, as manufacturers try to reduce costs and improve productivity. Hyundai Kia’s logistics division, Hyundai Glovis, has automated the packaging of semi-knockdown components at its logistics centers in Asan and Ulsan, South Korea. The company is turning to automation to both package the parts as well as construct the boxes the parts are shipped in. The robots are able to classify parts from different supply locations and palletize them for transport. By automating the task, Hyundai said it saves four to five minutes per box, which equates to 5,600 hours a year. On the box construction side, the Ulsan center produces 94,000 boxes a year and the company said the automated process would reduce the time taken to make them by 3,400 hours a year. The company said on top of the time savings, the automation also puts significantly less stress on workers who no longer have to constantly handle the heavy materials.

XPO Logistics announced this week that it has become the first company to provide last-mile tracking of heavy goods through Google search. Tracking of items through the last-mile is clearly not a new capability. However, what makes this different is that customers can track the large items directly through Google on any internet-enabled device, whether that is a computer, tablet, or smartphone. According to XPO, customers can enter the Google search phrase “XPO Package Tracking” and a display box asking for the shipment number comes up. At this point, customers simply enter the number and receive the status of their order. This is something new in terms of heavy goods tracking.

Volvo Trucks has announced an agreement with Brønnøy Kalk of Norway to provide its first commercial autonomous solution transporting limestone from an open pit mine. The program will use six autonomous FH trucks to transport the limestone. The vehicles will autonomously navigate a 5-kilometer route between the mine and the crusher, which includes tunnels. The tests are currently ongoing, and the program is expected to be fully operational by the end of 2019. The mining industry has already proven that autonomous trucks can be used for transportation, so it is not surprising to see this agreement. The mining company will pay Volvo on a per-ton delivered basis rather than buying the trucks outright. According to Volvo, “by working in a confined area on a predetermined route, we can find out how to get the best out of the solution and tailor it according to specific customer needs.”

French car manufacturer Renault is going back to the age of the sail to take advantage of the future of technology. The company has signed a three-year deal with French developer Neoline to construct two wind-powered ro-ro vessels to operate on a transatlantic route starting in 2020. The 136-meter long Neoliner has a beam of 24.2 meters and a standard sailing speed of 11 knots. At the rear of the ship is a loading ramp that leads to 1,700 linear meters of cargo space – enough to hold 478 vehicles. As companies become more aware of carbon emissions, wind power is becoming increasingly popular. Neoline said its primary use of wind power would result in the equivalent of a reduction of CO2 emissions by some 90%.

And finally, the delivery trike of the future may be here. Urban delivery vehicle startup Upcycles has completed its prototype for the T3 cargo trike. The trike weighs 150 pounds, has an aluminum frame, features a heavy-duty suspension system, can carry 450 pounds of cargo, and luckily for its rider, has an electric hub in the rear for a power boost going uphill. Under New York City law, the trike is considered a bicycle, therefore it can fit on and travel within the city’s growing number of bike lanes, and can park on sidewalks rather than in the street. The trike can help to reduce congestion in the streets by taking delivery trucks off the road as well as reduce total CO2 emissions city-wide.

That’s all for this week. Enjoy the weekend and the song of the week, Subterranean Homesick Alien by Radiohead.

On Monday, November 12, Stan Lee, writer, editor, and publisher of Marvel Comics died. Working closely with Jack Kirby at Marvel, Lee created some of the most iconic superheroes, including Spider-Man, Iron Man, the X-Men, the Hulk, Thor, Daredevil, the Fantastic Four, Black Panther, Ant-Man, and more. Over the course of his career, he would redefine the superhero genre, and have many of his characters go on to grace the silver screen. In many of these films, he even made cameo appearances, and often times these appearances would give a nod to his creation of the character. The comic book world will miss Stan Lee. And now on to this week’s logistics news.

• UPS Freight workers approve new labor contract
• Mondelez pressures palm oil supply chain to go 100% sustainable
• Retail imports slow down from peak but remain strong ahead of tariff increase
• Honda to shift production of SUV to China from US amid trade war
• DB Schenker eyes ‘commercial use’ first with all-electric autonomous truck pilot
• California wildfires endanger supply chain workers, displace businesses
• Liner giants to form new association for digitalization and standardization

UPS Freight workers voted in favor of approving a new labor contract. The Teamsters contract covers more than 11,500 workers at UPS Freight, which moves bulk shipments on pallets from shippers to stores and other locations. Leading up to the labor union vote, however, UPS Freight was preparing for the worst – the company had stopped picking up shipments from its freight customers to empty its network of freight in case there was a strike. Now that the contract has been ratified, operations will begin again, and UPS Freight will begin accepting new shipments from its customers. It remains to be seen how the temporary stoppage of customer pick-ups will impact the business, as freight customers were forced to make alternate arrangements.

As pressure mounts for more sustainable supply chains, Mondelez is stepping up its efforts. While the company has been outspoken about the problems arising from improper sourcing of palm oil, Mondelez is now calling on its suppliers for 100 percent sustainability and transparency in palm oil sourcing. The company announced in a statement this week that it has challenged its supply chain, as well as the global industry, to be more sustainable and transparent in the production of palm oil. Mondelez is asking companies to commit to palm oil concession mapping, which outlines the places most at risk of deforestation, and to act more quickly to end deforestation. In the meantime, the company has cut ties with 12 palm oil suppliers, claiming they are engaged in deforestation practices.

According to the monthly Global Port Tracker report released today by the National Retail Federation (NRF) and Hackett Associates, imports at the nation’s major retail container ports have slowed down from their pre-holiday peak. However, imports remain at a high level as retailers try to bring in as much merchandise before tariffs increase in January. US ports covered by Global Port Tracker handled 1.87 million Twenty-Foot Equivalent Units in September, the latest month for which after-the-fact numbers are available. That was down 1.3 percent from August but up 4.6 percent year-over-year. Imports set a monthly record of 1.9 million TEU in July ahead of 10 percent tariffs on $200 billion in goods from China that took effect in September and are scheduled to rise to 25 percent in January.

Speaking of tariffs, Honda has announced plans to shift production of the Acura RDX to factories in China from their facility in Ohio to avoid the 40 percent Chinese tariff on US auto imports. China already had a relatively high tariff of 25 percent on imported vehicles, but after the trade war escalated, an additional 15 percent was added to US imports. Honda hopes to capture a larger share of the market with lower prices from domestically produced vehicles. By moving production to China, Honda expects to be able to reduce the sticker price by about 20 percent on the RDX. The hope is to increase sales ten-fold for the SUV. While the vehicles will not be subject to the import tariffs, it is possible that additional taxes may be levied on certain components.

DB Schenker and intelligent movement company, Einride, have “launched the installation for the first commercial use” of an all-electric, autonomous truck, named T-pod. DB Schenker and Einride explained that the T-pod has no driver’s cab but is supervised and can be remotely operated by a human from hundreds of miles away. The idea is to reduce the size of the vehicle while enabling increased loading capacity, and enabling the truck to run solely on batteries. Testing started earlier this week within the company’s warehouse, with plans to test the vehicle on the road later this year. While autonomous vehicles are still likely a way off from becoming a reality on the road, more and more companies are investing in tests. This model’s all-electric capabilities also aim to reduce CO2 emissions.

The California wildfires are endangering supply chain workers while displacing businesses and disrupting the global supply chain. The largest of the three burning fires is the Camp Fire which is covering more than 100,00 acres in Northern California. This area is home to many large warehouses which support e-commerce fulfillment. The warehouses are currently not operational and are at risk. The two fires burning in Southern California have closed the Pacific Coast Highway, which has had a serious impact on the transportation of goods from the southern part of the state northward. On top of this, the smoke from the fires is spreading throughout the country, and some warehouses in the state have had to close due to the potential health impact on its workers.

And finally, the world’s five major ocean lines have joined forces to create common information technology standards which will be openly available and free of charge for all stakeholders of the container shipping segment. AP Moller-Maersk, CMA CGM, Ocean Network Express (ONE), Hapag-Lloyd and MSC announced a joint initiative to pave the way for digitalization, standardization and interoperability in the container shipping industry. According to Adam Banks, chief technology & information officer at AP Moller-Maersk, “a joint set of technical standards will ensure interoperability and enable all parties to concentrate on value adding differentiation as we move the container shipping industry towards further digitalization. Ultimately this will benefit all parties in our customers’ supply chains.”

That’s all for this week. Enjoy the weekend and the song of the week, Spiderman by the Ramone’s.