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COP21 – Freight and Climate Change

Freightos

A quick check showed that shipping the TV from Taiwan to Nashville (ocean & trucking) led to about 6.7 The broader climate issue.and freight’s role. The emissions from freighting Shawn’s TV is a miniscule percentage of this year’s 33 billion ton cube. Click the button on the right to see our sources.

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Extreme weather’s impact on supply chains

Resilinc

Within a week of the COP26 conference wrapping up, massive floods in British Columbia severed the freight railroad serving the Vancouver, home of Canada’s largest port. The vulnerability of these three regions highlights the complexity of factoring climate change into sourcing decisions. If so, when?

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Added Evidence of Emerging Regionalization of Global Supply Networks

Supply Chain Matters

The Ferrari Consulting and Research Group, via its affiliated Supply Chain Matters blog calls reader attention to two recently published research papers that address evidence of ongoing shifts in global supply component and end production sourcing. The above seems to imply, from our lens, the movement toward China Plus sourcing activity.

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Peloton’s Supply Chain Strategy Turnabout

Supply Chain Matters

The company will henceforth outsource the manufacturing of its stationary exercise bikes and treadmills to a Taiwan based contract manufacturer. Sourcing was both a cost as well as landed cost decision factor. The company was eventually forced to transport its bikes and equipment by more expensive air freight to avoid congested U.S.

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Build Resilient Supply Chains That Weather Disruptions 

Logility

As the pandemic eased, ports suffered bottlenecks, natural disasters disrupted freight movement, railways suffered congestion, and new legislation further complicated the movement of goods. For example, COVID restrictions in Asia shut down auto production because 70% of chip manufacturing happens in Taiwan and South Korea.

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Federal Reserve GSPI Index Drops Significantly in April

Supply Chain Matters

The authors further observed that there was a notable upward contribution from Taiwan stocks of purchases. freight and logistics recession , we called attention to reports that the Logistics Manager Index (LMI) for April reached an all-time low of 50.9, characterized as the lowest reported reading in this index’s history.

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Global Manufacturing Activity Levels Continue to Stabilize in March and Q1-2023

Supply Chain Matters

However, we discern some added signs excess inventories and of production sourcing shifts. Source: S&P Global, April, 2023 Highlights of Regional Reporting Developed Regions Eurozone The S&P Global Eurozone Manufacturing PMI® fell again in March to a value of 47.3 compared to the February value of 48.5, The March value of 48.6