Amazon Introduces Supply Chain Solutions, The US Avoids Rail Strike and Merchants Face Pricey Challenges

by | Dec 9, 2022 | 3PL, Logistics

Amazon web services believe they have figured out how to solve major roadblocks in the logistics industry. After pressure from President Biden, the Senate has passed new legislation to avoid a rail strike. The US trade deficit has made a big leap while on the other side of the world, COVID-19 outbreaks are halting production lines. A new survey found that most merchants are suffering from lost, stolen, or damaged shipments.

Amazon Supply Chain Solutions – Will it really work?

Earlier this year, it was announced that Google was moving to join the supply chain and logistics industry, and now Amazon is following suit. This week, Amazon Web Services announced AWS Supply Chain, “a new application that helps businesses increase supply chain visibility to make faster, more informed decisions that mitigate risks, lower costs, and improve customer experiences.”  Industry professionals are skeptical about this move and are saying “Solving this problem goes beyond technology; it requires companies to view data as a corporate asset and assign value to it”

Source: Business Wire

US Avoids Rail Strike…Again

The USA’s possible rail strike was avoided again after the Senate passed legislation. After pressure from President Biden to find a solution before the economy suffered the final vote in the Senate was 80 to 15. Biden addressed the ruling saying “Now, within this agreement, we’re gonna avoid the rail strike, keep the rails running, keep things moving, and we’re gonna go back and we’re gonna get paid leave – not just for rail workers, but for all workers.”

Source: CNN

US Exports Sag – Tougher Times Ahead

The U.S. trade deficit in goods jumped almost 8% last week to $99 billion. While the trade gap in goods is still sharply lower compared to a record $125.6 billion deficit in March, experts are still weary of these numbers since the trade deficit has had an unusually large effect on the GDP this year.

Source: MarketWatch

COVID-19 Halts Production

Large COVID-19 outbreaks are still happening across China. As the population tries to get these outbreaks under control, certain production factories are being affected. Among these factories are Volkswagen and Honda. According to a spokeswoman, Volkswagen has suspended production at its Chengdu plant as well as two of five production lines at its plant in the northeastern city of Changchun since early last week. These halts in production have been a reported result of car-parts shortages and local health-protection measures.

Source: The Wall Street Journal

Shipping Challenges Cost Merchants Over $50,000

UPS Capital recently ran a report on lost, stolen, or damaged shipments and how they are affecting merchants. 92% of merchants said that the loss from these shipments has been costly, while 50% of merchants reported losses of over $50,000 in the last year. Over 30%of merchants are also afraid of the growing fraud with credit cards and return shipments.

Source: Inbound Logistics

Are you worried about the growing concerns of the logistics industry but know Amazon Web Services can’t meet your needs? Our team of logistics experts is ready to assess your needs and develop a tailored plan that keeps your business moving forward. 

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NLS Logistics Team
As a leading Third Party Logistics (3PL) firm, we have the strategic infrastructure, technology relationships, and insights to help Canadian and international brands reach and serve the Canadian market.

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