Supply chains are constantly changing as new rules, technologies, resources and market trends transform operations. Here's a skim of the week's indexes, technology announcements, distribution centers and M&As from around the web.
In Case You Missed It
- A bankruptcy court decided Hanjin's ships could not be seized in the U.S.
- Lean supply chains come with risks, as Gap's warehouse fire shows.
- Logistics startups are constantly bought out, here's why.
Market Snapshot
The U.S. Bureau of Economic Analysis released the country's July trade data: exports grew to $186.3 billion while imports fell to $225.8 billion, marking a $5.2 billion month-to-month reduction in the goods and services deficit.
The Department of Labor's August jobs report revealed the logistics and transportation industry gained 14,900 jobs last month, according to a Wall Street Journal analysis, due in part to increased demand for labor in preparation for the impending peak shopping season.
Shipping soon? Note: Hanjin's filing for receivership caused Transpacific spot rates to increase 50%, according to data acquired by American Shipper.
By land, however, van and flatbed spot rates continued to tumble in August, continuing a downward trend that began in 2014. Meanwhile, data from the International Air Cargo Transport Association reveals air freight capacity grew by 5.2% in July, compared to the previous year, marking the fastest rate of growth in 18 months.
Truck driver shortage? Jobs may be up and turnover rates may have fallen last quarter, but the sector is counting its blessings: August saw a 35% decrease in trucking fleets ordered since from last year, marking the lowest number of orders placed since 2010.
Technically Speaking
Volvo Cars and Autoliv Inc. agreed to launch a jointly-owned company focused on developing autonomous driving software, to be used by Volvo and sold to other car makers.
Parcel delivery drones flew over Paris on Sunday, as DPDGroup exhibited technology at a festival on the Champs-Elysees.
Speaking of drones and automated vehicles, Daimler AG is investing $560 million to design driverless electric delivery vans, equipped with parcel delivery drones for drop off services.
U.K.-based Kite Packaging released a line of corrugated cardboard edge protectors for in-transit goods.
JDA Software announced its latest JDA Manufacturing Planning solution comes with real-time analysis, an in-memory foundation and prescriptive demand-supply planning capabilities.
Auburn University's Food Systems Institute launched a website dedicated to providing information for food producers and distributors on protecting logistics from cyber threats.
Breaking Ground
Under Armour announced plans to open a 1.3 million square foot e-commerce distribution center at the site of an old steel mill near Baltimore, marking the company's first online-focused warehouse.
The U.S. Army Corps of Engineers and Port Authority of New York and New Jersey's $2.1 billion deepening of the port's navigation channel is now complete, American Shipper reports.
Walmart applied for a permit to begin construction of a 592,830 square foot distribution center near Orlando, FL, which will create an estimated 239 jobs according to reports.
Elsewhere in FL, AHA Distributing closed a Tampa center to merge operations with its facility in newly-acquired 5,000 square-foot warehouse in Boynton Beach.
Cold-chain logistics provider ColdPoint Logistics just began a 163,318 square-foot temperature-controlled distribution facility in Edgerton, KS.
China-based Sentury Tire announced plans to open a $530 million factory complex southwest of Atlanta, GA, set to open in 2018 and employ 1,000 people.
Mergers & Analysis
Oracle expanded its WMS services through its acquisition of Atlanta-based firm LogFire for an undisclosed amount.
Volkswagen purchased a 16.6% stake in engine manufacturer Navistar and establish a joint-venture to develop new technologies, as part of the auto-maker's bid to boost its global presence in the heavy truck market.
DHL Supply Chain will continue to provide spare parts distribution for aircraft manufacturer ATR and warehouse and logistics services for Debenhams after the two contracts were renewed last week.
ABF Logistics purchased Logistics & Distribution Services for $25 million, marking the company's third acquisition in less than two years.
