Logistics Update: Ocean trade disruptions, Walmart sells A.I. Technology and Last-Mile Delays.

by | Apr 11, 2024 | Logistics

 Ocean trade disruptions are pushing businesses towards airfreight, ProPack Logistics has been acquired by Stord, recent earthquake in Taiwan has disrupted the semiconductor and electronics industries, Walmart is selling A.I. Technology to reduce shipping costs, and the collapse of Baltimore’s Francis Scott Key Bridge has significantly disrupted last-mile deliveries. 

Air Volume Increases Amid Red Sea Crisis

Ocean trade disruptions, especially in the Red Sea, are pushing businesses towards airfreight to avoid delays, causing a surge in air cargo volumes and costs. This move is transforming supply chains and increasing demand during typically slow periods. The need for supply chain continuity amidst geopolitical tensions makes the shift to more expensive air transport a necessary strategy to tackle these global logistics challenges.

Source: Supply Chain Dive

Stord Expands Fulfillment Operations With Acquisition

Facing an e-commerce slowdown, Stord acquired ProPack Logistics to expand its warehousing and tap into stable markets like health and beauty. This move, reflecting industry consolidation, addresses post-pandemic declines in online shopping demand. The acquisition aims to boost Stord’s profitability amid shifting consumer trends.

Source: The Wall Street Journal

Taiwan Earthquake Disrupts Electronics and Supply Chain

Following Taiwan’s most significant earthquake in over 25 years, numerous semiconductor and electronics companies have been compelled to suspend operations temporarily. The aftermath of the quake, coupled with more than a dozen aftershocks has disrupted transportation networks, jeopardized manufacturing operations, and led to power outages affecting approximately 91,000 customers. Major industry players like Taiwan Semiconductor Manufacturing Co. (TSMC), United Microelectronics Corporation, and Innolux Corporation have all reported material damages, preventive shutdowns, and facility evacuations, causing ripple effects across global supply chains for microchips, LCD panels, integrated circuits, and other critical components.

Source: Inside Logistics

Walmart To Sell A.I. Technology To Reduce Transportation and Shipping Costs

Walmart Commerce Technologies has entered the competitive market of route optimization software. By introducing route optimization technology, Walmart aims to assist businesses in reducing empty fleet miles and emissions, with potential clients spanning fleet operators, lumber companies, and medical device manufacturers. While specific clients have not been disclosed, Walmart anticipates varying cost savings for users based on operational factors and individual circumstances.

Source: Supply Chain Dive

Last-Mile Delivery Delays Rise After Bridge Collapse

Nikola’s hydrogen truck launch has been delayed due to a parts shortage. Despite high demand in California driven by emissions laws and subsidies, high production costs from urgent European shipments and infrastructure development challenges hinder progress.

Source: Inside Logistics

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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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