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
- Hanjin began unloading cargo in U.S. ports, but its future is uncertain.
- Samsung tried to beat Apple to the market, only to stumble upon a disastrous recall.
- Gap released a full list of its global suppliers to Human Rights Watch.
Market Snapshot
U.S. household income rose 5.2% last year, the first annual increase since the Great Recession. Poverty rate fell, employment grew, and the wage gap narrowed according to the U.S. Census Bureau.
But the manufacturing and transportation sectors did not share in the joy.
July data shows a 23% drop in technology orders compared to last year, according to the Association for Manufacturing Technology, and few expect orders to rise by the end of the year. The Wall Street Journal additionally reports U.S. industrial production fell 0.4% last month.
The Association of American Railroads reported a 5.7% volume drop last month, although grain shipments rose 24.7% in August. New orders for vessels were also in decline, says the Baltic and International Maritime Council.
But it's not all bad news for shipping: The Ports of Virginia and South Carolina processed record container volumes last month, even prior to Hanjin's collapse.
Metropolitan areas accounted for 89% of exports last year, or more than $1.3 trillion according to the U.S. Department of Commerce. Meanwhile, import prices fell 0.2% month-over-month in August.
And where it hurts, the U.S. is starting to come to the rescue. As steel exports continued to fall in July, the Department of Commerce accused China of dumping steel into U.S. markets and illegally subsidizing its agricultural products.
Technically Speaking
Ford Motor took another leap forward in its drive for autonomous vehicles through its purchase of ride-sharing app Chariot. The company plans to bring the technology to market by 2021 and is promising 20% investment margins.
LogisticsMatter released an interview with Dutch transportation startup Breytner over its innovative business model, which presents the first zero emission trucking company.
Less-Than-Truckload Software as a Service provider project44 raised $10.5 million in Series A funding, as the company sets the stage to expand service offerings to last mile and truckload services.
TMS provider MercuryGate added LoadPay to its platform, allowing clients to schedule automated payments while offering an additional "PayMeNow" option for carriers.
Breaking Ground
E-commerce is driving an increased demand for labor in warehouse and distribution centers as peak season ramps up. UPS will hire 95,000 seasonal workers this year, 2,000 more than last year, in order to keep up with demand. Workers’ wages are expected to rise in consequence, the Wall Street Journal reports.
Amazon is making governments act faster, too. The company's new 800,000 square-foot distribution center in Etna, OH has officials rushing to expand roads to account for increased traffic.
The Department of Transportation announced $25 million in rail safety grants during a press conference Monday. The funds will be dispersed over 23 projects nationwide.
DHL invested $4 million in a new, 26,000 square-foot facility in Seattle. The facility will process pickup, delivery and sorting operations for the growing region.
Mergers & Analysis
Bayer announced a $66 billion acquisition of Monsanto. If approved, the combined companies would control a quarter of the world market for seeds and pesticides, Food Logistics reports. The acquisition is likely to face large antitrust scrutiny worldwide, however.
Sonoco Thermosafe bought a set of cold chain solution assets from AAR, as the company seeks to improve its pharmaceutical and biological transport capacities by both ground and air, Modern Materials Handling reports.
IA-based long-haul truckload carrier CRST acquired regional service provider Gardner Trucking, which is based in Canada but maintains operations in TX, WA, OR and AZ, for an undisclosed amount.
Similarly, Watco Supply Chain Services purchased BCM Logistics to add Class I railroad and ocean carrier options to its services, American Shipper reports.