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Global Supply Chain Volatility Continues to Moderate But Not Inventory and Warehousing Costs

Supply Chain Matters

The takeaway for September was that global manufacturing activity officially fall below the 50.0 According to the September report , growth is increasing for inventory levels, inventory and warehousing costs. In a prior Supply Chain Matters posting, we highlighted both September and Q3-2022 global and regional PMI indices.

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U.S. Freight Rates Reach Six Year Low Milestone

Supply Chain Matters

freight rates have reached their lowest levels in nearly six years. In essence, it is confirmation of a freight recession condition. That is not good for retailers and manufacturers, each under the looking glass to reduce not only transportation but also inventory carrying costs. All rights reserved. The post U.S.

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Evidence Mounts of Non Peak Holiday Season in Transportation and Logistics

Supply Chain Matters

While 209,000 workers were added in June, 14,000 freight and parcel carriers were cut and 6,900 warehousing and storage jobs were lost. In the past we would expect to see transportation and warehousing ramping up hiring in late summer ahead of peak season. ” warehouse workers in June of 2022. There were 1.96

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June 2023 US Logistics Managers Index Drops to a Revised Low

Supply Chain Matters

Consequently, the warehousing capacity metric increased a reported 6.8 Further, the added evidence of increased warehouse capacity levels will have an effect on previously rather high levels of warehouse contracting and leasing rates. Logistics Managers Index (LMI) that again dropped to an all-time low for June 2023.

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November U.S. Logistics Manager’s Index- Noteworthy Trending

Supply Chain Matters

which is attributable to Q4 holiday sales and the subsequent dips in Warehousing Capacity (+3.6) and slowdown in Warehousing Utilization (-14.0) The canal disruption is further noted as having more freight being routed to U.S. and Transportation Capacity (+5.2) and Transportation Utilization (-10.7).

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Driver Shortage, Driverless Vehicles, and Other Supply Chain Curiosities

Logistics Viewpoints

Currently, most driverless opportunities are limited to secure private zones or closed environments, such as warehouses, campus environments or last mile runs from depot to front door. There will still be a workforce needed to maintain those driverless vehicles or costs associated with maintenance done by the manufacturer or a 3rd party.

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Two Indices of Supply Chain Activity Noting Supply Chain Volatility Trending

Supply Chain Matters

The authors specifically make mention of geopolitics along with the ongoing effects of the pandemic impacting many manufacturing regions in China. The authors point to the delivery time disruptions occurring in China , an increase in air freight costs from the U.S. Warehouse inventory levels are noted as remaining quite high.