All The Supply Chain News You Need To Know 2.4-2.8

Economists at SMC Jump Start 2019 expect economic growth to slow. A strong year of growth in 2018 has given way to concerns in 2019 regarding trade wars, stock market volatility, and the government shutdown. “I’m not saying shut it down, hunker down for the future. 2019 is going to perform above benchmark,” said Donald Ratajczak as reported by the JOC. “But 2020, that second half, that could be questionable, especially if tariffs are still rising.” Trade was a big concern among attendees as a poll showed 75% held it as their main worry. “We’re not fine, we’re not good,” said Walter Kemmsies, economist at JLL, “Even if a US-China agreement leads to more US exports, the US lacks transportation infrastructure needed to a support a more export oriented economy,”


Foxconn experiencing buyer’s remorse over Wisconsin LCD factory. A year ago, Foxconn secured a $4 billion economic development package to build the factory in Mount Pleasant. In addition, the Taiwanese manufacturer pledged $10 billion to the plant and promised it would create 13,000 jobs. However, Foxconn recently announced major plans to scale down the plant and cut hiring substantially. This news comes after WI city and local government bought out local homeowners via eminent domain, according to Freight Waves. A move to midstream production in the US could add as much as $10,000 per container, according to some analysts.


Rail volumes down in first month of new year. 2018 was a boom year for intermodal rail shipments as combined traffic were up 3.5% YoY but as demand for coal declines so do carloads. The downtick began last November after a 9-month surge in the industry, which was partially propelled by the trucking capacity crisis. Since trucking capacity has been less of an issue, insiders aren’t optimistic about intermodal growth in 2019. "What happens in 2019 will depend on how the domestic and global economies hold up and the policies – particularly monetary and trade – that come out of our legislative and executive branches," said AAR Senior Vice President of Policy and Economics John T. Gray in a statement, as reported by Supply Chain Dive.


Deloitte digitizing supply chain across multiple blockchain networks. The firm has partnered with Hong Kong based Kerry Logistics and CargoSmart. A main sticking point standing in the way of blockchain’s proliferation is a lack of interoperability between distributed ledger technology. Connecting blockchains allows for the exchange of digitized documents between those in the trade and finance fields where firms are adopting different platforms. Recently, the Head of Global Trade and Receivable Finance at multinational banking firm HSBC, claimed that blockchain has the potential bring a unified ecosystem between the financial ecosystem and the supply chain, emphasizing that in order to be successful, the tech should be adopted widely and interoperable, according to Coin Telegraph.


Uber Freight sourcing truckers to rate shippers. With detention times estimated to exceed $1.1 billion annually, Uber will now allow drivers to rate shipping facilities just as Uber passengers rate Uber drivers. The freight matching app has already received comments from 30,000 active users on 10,000 shipping facilities., according to Trucks.com. Many traditional carriers have already been using their ELD data to monitor driver dwell times. This has led directly to higher rates and/or removed capacity from the worst offenders and companies who refuse to establish themselves as Shippers of Choice.


Amazon and Embark spotted testing autonomous trucks on I-10. An observant Redditor first noticed the driverless Peterbilt semis last week. When approached for comment by CNBC both firms declined. Embark CEO Alex Rodrigues said, "Embark moves freight for a number of major companies on the I-10, however we cannot discuss any company specifically as our relationships are confidential."

FourKites gets $50 million as investments continue to flood supply chain tech market. The series C round saw money raised from Bain Capital Ventures, CEAS Investments, and August Capital, among others. “We believe in a future where every supply chain is collaborative, intelligent and networked,” says Mathew Elenjickal, founder and CEO of FourKites to Supply & Demand Chain. “Predictive intelligence helps shippers find new ways to reduce costs, improve service and drive innovation. This comes at a critical time for the industry, as it responds to changing customer expectations, government regulations and cost pressures."


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