The UN Conference on Trade and Development has released a report detailing the profound impact of recent attacks on Red Sea shipping, the Ocean Alliance vessel-sharing agreement has been extended, Fastfrate Group and CPKC Railway have announced the renewal and expansion of their agreement, Anyline has collaborated with Mondi to develop autonomous drone inventory management software, and Walmart reduces last-mile delivery costs.
UN Weighs In On Red Sea Crisis
The UN Conference on Trade and Development (UNCTAD) has released a report detailing the profound impact of recent attacks on Red Sea shipping. With disruptions in the Suez Canal and the Black Sea, the world is witnessing significant shifts in established trade patterns. UNCTAD estimates a substantial reduction in transits through these vital waterways, leading to rising container shipping spot rates and increased environmental costs as ships avoid traditional routes. The economic and environmental consequences are particularly pronounced for developing countries dependent on these trade routes.
Source: Inside Logistics
Ocean Alliance Extends Agreement to 2032
Four global shipping lines have extended their vessel-sharing agreement, known as the Ocean Alliance, until 2032. The extended Ocean Alliance aims to offer broader geographic coverage, lower costs, and ensure steady service for customers.
Source: Wall Street Journal
CDI Becomes Largest Coast-To-Coast Drayage Provider in North America
Fastfrate Group and CPKC Railway have announced the renewal and expansion of their agreement to provide intermodal and drayage services across Canada, the U.S., and Mexico. The five-year agreement, aiming to enhance North America’s supply chain efficiency, particularly in the automotive industry, seeks to expedite cross-border trade. Fastfrate subsidiary Canada Drayage Inc. becomes the largest coast-to-coast drayage provider in Canada and North America for CPKC. Investments include upgrading gate technology, creating a 15-acre container yard, and expanding container inventory to meet the growing demand for cross-border transportation services.
Source: Freight Waves
New Partnership Creates Autonomous Inventory Management
Mobile data capture and specialist firm Anyline has collaborated with packaging manufacturer Mondi to develop autonomous drone inventory management software. This technology offers a safer and more efficient alternative to the traditional method of using forklifts and manual scanning in large warehouses. Drones can scan entire aisles during operating hours, eliminating the need for overtime and improving accuracy.
Source: Inside Logistics
Walmart Reduces Last-Mile Delivery Costs
Walmart’s last-mile delivery unit economics have shown improvement. In Q4, store-fulfilled delivery sales saw a 50% jump, reaching a $2 billion monthly run rate. Walmart is also enhancing the efficiency of its order distribution process, adding parcel stations to stores to improve last-mile delivery. The company is additionally investing in automation in fulfillment and distribution facilities to further enhance unit economics around delivery, with the potential to double capacity and throughput in automated fulfillment centers compared to traditional ones.
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