Air cargo rates have dropped for the ninth consecutive month. FedEx is prepared to launch a new initiative in 2023 to help save money on return shipping. Blockchain challenges are forcing companies to shut down initiatives. The USA is attempting legislation to require federal agencies to address supply chain issues, while Canada is becoming more and more aware of shipping delays since the pandemic.
Businesses Cancel Flights in Favor of a Cruise
November saw another month of decrease in air cargo rates. As demand slows and shippers move to the improved ocean landscape, spot rates on the general TransPacific lane have dropped 32% YoY. While these numbers are higher than pre-pandemic levels, hopes for a late peak season were crushed.
Source: Supply Chain Drive
FedEx Launches New Returns Service
FedEx has announced that it will launch a new consolidated returns service in 2023. The service will leverage less-than-truckload services to help shippers save costs by allowing customers to return items without a box or shipping label at approximately 2,000 FedEx Office locations. The product will then be consolidated with other returns and sent back to the shipper through a less-than-truckload option. As shipping prices continue to increase, this solution could make a big difference and help save money.
Source: Supply Chain Drive
IBM Faces Blockchain Challenges
A.P. Moller-Maersk A/S and International Business Machines Corp have announced their plan to discontinue their initiative to track and follow shipments via Blockchain. The companies identified the complexity of the technology and the time commitment as reasons for the project shutting down. Other companies like Walmart continue to work on similar projects but at a slow pace.
Source: Wall Street Journal
US Targets Bills At Supply Chains
Legislation is being introduced to require federal agencies to address supply chain issues in the US. According to The Wall Street Journal, the legislation would require cabinet-level agencies to identify weaknesses in supply chains that could impact national security and domestic manufacturing.
Source: The Hill
Pandemic Brings Shipping Awareness to Canada
The supply chain delays are becoming more and more apparent to Canadians each day. A recent survey by the Angus Reid Institute, in partnership with Clear Seas Centre for Responsible Marine Shipping (Clear Seas), found that 34% of Canadians are aware that most products they use daily are transported by sea. This represents a 55% increase from 2020. As more shortages and delays occur, Canadians are left wondering how long it will take for the supply chain and economy to mend.
Source: Inside Logistics
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