All The Supply Chain News You Need To Know 1.8 - 1.11
Trucking market could downtrend in 2019 according to some analysts. Slower manufacturing growth as well as elevated tariffs and interest rates could all cut into demand, Supply Chain Dive reports. Adding to the uncertainty is last year’s market, which rose to historic levels. "The economic forecasts are mixed overall, which adds to uncertainty in other freight-producing sectors," wrote DAT analyst Mark Montague in a research note.
2018 sets record for heavy-duty truck orders despite 43% drop in December. Nearly half a million truck orders were placed in 2018 as carriers aim to solve capacity issues and take advantage of tax incentives associated with upgrading their fleets. Since new truck deliveries are already in a months long backlog, this downturn will give manufactures to opportunity to chip away their shortfalls. “Order rates right now are not that relevant,” said Don Ake, vice president of commercial vehicles at FTR Transportation Intelligence. “Fleets got a jump on ordering to reserve 2019 build slots, so orders had to fall off at some point, and December was the start of it.”
150 high-tech logistics hubs coming to China by 2025. China’s National Development and Reform Commission and the Ministry of Transport have released plans to build 30 logistics hubs by 2020 and 150 by 2025. China’s over arching plan is to build 6 types of hubs including inland harbor and border ports. The locations aim to use automated ports, autonomous vehicles, robots, drones, and smart warehouses. "The logistics sector is the groundwork of strategic importance for the development of market economy. Lowering logistics costs and raising the efficiency should be prioritized this year," Premier Li Keqiang said.
Supply chain tech adoption still lagging behind other industries. A new report by American Shipper, “Supply Chain Technology Innovation Benchmark Study” points to cost, lack of understanding, and implementation difficulties as some of the roadblocks in the shippers’ way. The report also found that 13% of firms don’t use any digital tools beyond Excel.
Ocean container spot rates up 92.5% YoY on China to US lanes. While this is a 22.9% drop from Nov. 2018, it indicates that 2019 could be an expensive year for shippers. Surcharges are associated with new fuel regulations are partially to blame for the elevated rates. Containers from China to the West and East Coast of North America are now at $2,300 and $3,137 per TEU respectively.
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