Across the globe, this past weekend likely held an abundance of meetings, parties, and other events. Sometimes it can be hard to get back into "work mode" after extended time with family and friends. This review will help you get caught up on the latest news in the transportation and logistics industry to better understand market trends and customer interactions. Let's dive in.
Despite the release from the strategic reserve, the East Coast is experiencing its lowest seasonal diesel inventory ever. FreightWaves reported that the region typically maintains 62 million barrels of diesel in May, but as of May 6, 2022, they are storing less than 52 billion. As on-highway diesel prices soared to $5.944 per gallon as of May 16, truck drivers are dealing with a yearly increase of $2.716 per gallon, according to the EIA data. Experts hope that the higher prices will bring more diesel to the Northeast region.
This week has brought new delivery options to Albertsons customers across Connecticut, New Hampshire, Vermont, Indiana, Utah, and Rhode Island. This addition to the Uber Eats platform comes as more shoppers share the sentiment that grocery pickup and delivery was one of the most convenient lifestyle changes brought about by the pandemic. Supply Chain Dive noted that Albertsons plans to prioritize network optimization by working with third-party providers while investing in digital and omnichannel technologies.
As cost control methods continue to reign high on the search history of most supply chain professionals, Yellow Corp. has chosen to accomplish this by closing 16 of its terminals by the end of the year. FreightWaves quoted Yellow Corp's Chief Operating Officer Darrel Harris as saying, "I just want to make it clear that we're not giving up geographical coverage, and we're also going to protect capacity for our customers." Time will tell how the company's restructuring efforts, known as One Yellow, will fare amidst current efforts to complete its terminal closures.
Effective on May 11, 2022, UPS Inc has successfully moved from an A-minus rating to an A, according to Standard and Poor's rating requirements. Modern Shipper stated that S&P "expects UPS' revenue growth to moderate to 4% a year in 2022 and 2023, below outsized growth rates of 14% to 15% in 2020 and 2021 as pandemic-related surges in online ordering led to unprecedented spikes in delivery volumes." Despite the extreme volume changes, S&P is looking toward the increased pricing trends for its top growth expectations.
As changing carrier standards pile up against small business owners, a seemingly minor natural disaster can seal the deal on a diminishing business bottom line. The Small Business Readiness for Resilience Program (R4R) will offer 400 grants to qualified small businesses over the next four years. Yahoo Finance reported on this story this week, publicly sharing the directions to get into the US Chamber Foundation database by starting with a preparedness checklist.
Supply chain professionals have their eyes on more than efficient, automated management and efficient, automated deliveries. As immunosuppressed individuals continue to opt for contactless options to receive their essential items, Silicon Valley startup NowRX and Hyundai Motor Group have started a pilot project that will explore last-mile medication delivery solutions. Fierce Healthcare said the collaborative pair "plans to roll out the pilot project later this year, serving two micro-fulfillment centers in the Los Angeles area."
DHL is finding quick ROI after installing two robotic sorting systems at its Atlanta e-commerce distribution center. Supply Chain Dive disclosed, "The DoraSorter robotic systems from Dorabot are each able to sort more than 1,000 pieces hourly, and they allow output to improve — by a factor up to four.'" One of the robotic sorters separates packages into 80 separate zip-code final-mile postal bags, while the other automated sorter organizes packages between 20 Gaylord containers. This increased throughput is essential as international parcel shipping maintains a dominant e-commerce concern.
As mega-companies experience the benefits and challenges of an industry going virtual, supply chain professionals need to ensure their business plans are rock solid. Actionable analytics is vital to accurately measuring growth plans and better forecasting future disruptions. Start a conversation with Intelligent Audit today to see how a team of business intelligence experts can help your business thrive.
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