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Supply Chain Snapshots - News of the Week (June 5, 2023)

Monday, June 5, 2023

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California’s Electric-Truck Drive Draws Startups Building Charging Networks

(Read more on The Wall Street Journal)

A recent regulation in California will require trucking fleets to stop buying internal combustion engine-powered trucks beginning in January 2024. The rush is now on for companies looking to set up the charging infrastructure required to keep their electric replacement vehicles on the move.

Slower Demand, but US Warehouse Rents Rise in ‘Tight and Expensive’ Market

(Read more on The Loadstar)

Retailers have sold through much of their overstocks from last year, but warehousing costs are continuing to rise despite the slackening in demand. One factor cited is the lack of availability of new capacity as building starts are down dramatically. Another is fewer regional banks being willing to lend on such projects in the wake of several recent bank failures and the overall uncertainty in the financial world.

As Back-to-School, Holiday Orders Begin, This Is What May Be the New ‘Normal’ in Peak Retail Trade Season

(Read more on CNBC)

Back-to-school orders are trending up and many retailers have sold through their inventory gluts. What does this mean for peak season ‘23? Depends who you ask—some logistics managers foresee a peak season on par with 2018-2019 while others are saying not to expect a “normal” peak season until Q3 ‘24.

Cargo Shifts Back to US West Coast Ports, but Some Has Gone for Good

(Read more on The Loadstar)

Stabilizing freight conditions, along with recent positive signs from the talks between ports and labor union leadership have led some shippers who shifted their cargo to U.S. East Coast ports to begin, cautiously, returning some of that volume to the West Coast. Throughput at the Port of Los Angeles/Long Beach was still down 5% year over year (45% of U.S. imports in Q1 2019 compared to 40% in Q1 of this year), per Descartes Datamyne.

From Reset To Recharge: How Retail Is Using Smart Supply Chains To Recover Post-Pandemic

(Read more on USA Today)

Far from trotting out the familiar tropes about ‘unprecedented disruptions” and the like, this brief look at what retailers are doing, today, to build resilience into their supply chains is refreshing. Some ideas: diversifying suppliers, investing in upgraded tech stacks and data analytics, and working toward a more transparent supply chain.

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