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Supply chain snapshots week 13
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December 9, 2022

Supply Chain Snapshots - News & Trends You Should Read This Week

Friday, December 9, 2022

Flexport Editorial Team

Looking for a quick summary of the top supply chain and logistics news and trends making waves this week? Read our weekly "Supply Chain Snapshots" for helpful summaries and commentary to get you up-to-speed on the news you need to know.

#1 As Supply Chains Unclog, Consumers Enjoy (Tentative) Relief

Read the full AP article here

  • Compared to earlier in 2022 when 109 container ships waited off the California coast to unload cargo in Los Angeles and Long Beach, the state of cargo sees improvements now.
  • Today “we are in a very different place,” said Flexport Chief Economist Phil Levy. Backlogs have improved and freighters aren’t lingering as much since summer. “If you ask, how long does it take to move stuff, there has been notable improvement. If you measure it by how long would it take to get a cargo from Asia to a destination port, dramatically better.”
  • Easing supply chain bottlenecks compared to earlier this year is a welcome sign to shippers globally.
  • While freight movement is gradually returning to pre-pandemic levels and holiday season gifts are well-stocked, we must consider a potential cause of better inventory–the recent diminished demand for manufactured goods.
  • Spending on goods has fallen for three straight quarters, partly due to inflation.

#2 Biden Visits New TSMC Plant in Push To Expand US Chip Production

Read the full Supply Chain Dive article here

  • In an effort to promote domestic chip manufacturing, President Biden visited the site of TSMC’s first fabrication facility in Arizona.
  • Earlier in 2022, Biden signed the CHIPS and Science Act to boost domestic manufacturing, rebuild supply chains, and inject money into domestic chip manufacturing.
  • He also signed an executive order to formally expand chip manufacturing in the U.S.
  • “These investments are helping us build and strengthen the supply chain here in America…what we’re doing here in Arizona matters across the country and around the world,” said President Biden.

#3 CMA CGM Buys New York/New Jersey Terminal Operations from GCT

Read the full FreightWaves article here

  • Shipping lines are investing in growing their capabilities with the help of better cash flow.
  • France's CMA CGM Group, which manages the world's third-largest ocean carrier, will buy the terminal assets of Global Container Terminals (GCT) in Staten Island, New York, and Bayonne, New Jersey.
  • The Ports of New York and New Jersey have recently grown as the country’s busiest import gateway. The CMA CGM purchase will include two of the port’s six terminals.
  • Between their facilities, the GCT New York and GCT Bayonne have a combined capacity of 2 million twenty-foot equivalent units per year.
  • The Bayonne terminal handles container vessels of up to 18,000 TEUs in size, and the company plans to double terminal capacity by 2030, which will allow for ships of up to 22,000 TEUs.
  • However, GCT will continue to own its two terminal operations in Vancouver, British Columbia.

#4 Small Businesses Play a Big Role in Supply-Chain Resilience

Read the full Harvard Business Review article here

  • According to the Harvard Business Review, The U.S. has an opportunity to prevent future supply chain disruptions by improving operations broadly.
  • They assert that the focus should be on small and midsize businesses, which are critical to supply chains but often lag in technology investments. Better tech leads to greater inventory visibility, demand planning, and traceability.
  • Supply chain resilience, sustainability, and the ability of shippers to apply real-time freight information will also be critical factors that involve tech investments.
  • Continued digital transformation will define successful supply chains, which will benefit from emerging tech such as Enterprise Resource Planning systems (ERPs), Cloud Product Lifecycle Management, and “digital threads” that streamline information flow across supply chains.

#5 Water Rising on Mississippi, Barges Moving More Freely South of Memphis

Read the full FreightWaves article here

  • Shipping conditions on the lower Mississippi River are returning to normal thanks to more rain recently.
  • Specifically, water levels in Memphis, Tennessee improved drastically over the past week compared to last month, which saw slow water level increases.
  • Rising water levels here directly result in eased restrictions on barge shipping.
  • However, there will still be some restrictions due to a deteriorating river stage from St. Louis through Cairo, according to the American Commercial Barge Line.

We’ll be back next Friday for another edition of Supply Chain Snapshots.

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Flexport Editorial Team
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