October 25, 2024
Supply Chain Snapshots (Week of October 21, 2024): A Recap of Industry News You Can’t Miss
Here’s some interesting logistics news you might’ve missed this week:
More US-based companies to shift supply chain operations into Americas: report
(Read more on Manufacturing Dive)
A KPMG survey reveals that U.S.-serving supply chains are shifting toward increased localization, with the percentage located in North and South America expected to rise from 59% to 69% over the next two years. While U.S. share is projected to decline, Mexico is set to gain ground, increasing its share from 27% to 36% and surpassing Canada as the second-most-popular nearshoring destination. Localization has been driven by recent supply chain crises, including the Panama Canal drought and the COVID-19 pandemic, which highlighted vulnerabilities along longer trade routes. Now, a growing number of businesses are looking to bring production closer to end-customers.
Montreal dockworkers to hold one-day strike as contract talks stall
(Read more on Global News)
Nearly 1,200 longshore workers are set to strike for 24 hours starting Sunday morning at the Port of Montreal. This strike follows failed negotiations for a collective agreement and a recent offer from the federal government to appoint a mediator. The Port of Montreal is a crucial trade hub for various industries, handling over 35 million metric tons of cargo annually.
Smart Sailing: Maritime Success Strategies
(Read more on Inbound Logistics)
Trine Nielsen from Flexport highlights the ocean market’s "polycrisis environment," with issues like attacks on vessels in the Red Sea forcing detours that drive up demand and tighten capacity. These disruptions led to heightened anxiety among shippers—especially ahead of peak season this year—some of whom double-booked cargo to secure space. In response, carriers have deployed diverse strategies to optimize capacity; Flexport has advised clients to book earlier and anticipate longer lead times.
UP pins performance slip on communication gap over USWC cargo surge
(Read more on Journal of Commerce)
Union Pacific Railroad (UP) experienced a significant surge in cargo volume on the West Coast, particularly in international intermodal shipments. This unexpected surge, driven by importers diverting freight away from the East and Gulf Coasts due to the ILA strike earlier this month, led to slower train speeds and increased railcar idling times for UP. UP CEO Jim Vena attributed the situation to a lack of advanced notice from ocean carriers about the impending cargo influx and emphasized that the company is taking steps to increase capacity and improve efficiency, including increasing the number of available railcars and collaborating with other railroads.
Arkansas could be a lithium treasure trove
(Read more on Supply Chain Dive)
A recent study by the U.S. Geological Survey and the Arkansas Department of Energy and Environment reveals that the Smackover Formation in southwestern Arkansas could contain significant lithium reserves, potentially exceeding current U.S. lithium resources by as much as 136%. The study, published in Science Advances, estimates that the region holds between 5.1 million and 19 million tons of lithium, far surpassing projected global demand in 2030. This discovery could dramatically increase domestic lithium production for electric vehicle batteries, currently heavily reliant on imports from China.