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Supply Chain Snapshots - News of the Week (Mar. 6, 2023)

Monday, March 6, 2023

1. MSC, World’s Biggest Shipping Company and U.S.-China Trade Bellwether, Is Betting on a Rebound for Global Economy

(Read on CNBC)

The conversation with MSC CEO Soren Toft ranges pretty widely, but always comes back to one main point—he sees a positive turn for the shipping market coming in the second half of 2023. U.S. and European consumers remain active, and major retailers are selling down their overstocks from last year. Touching on the recent announcement of the end of the 2M alliance between MSC and Maersk, Toft says he remains optimistic and that the dissolution was the result of the two companies simply having different visions for their respective futures.

2. Despite Big Gains in New York, Los Angeles Remained Top Port in 2022

(Read on Supply Chain Dive)

After having briefly taken the top spot for largest port in the country by volume, the Port of New York/New Jersey slipped one spot closing the year in second position. Congestion at the Ports of Los Angeles and Long Beach through 2021 and into 2022 led many importers to shift to east coast ports, leading to the shake up in the ranks, however by the end of the year that congestion had eased enough for many shippers to shift back to the major west coast port of entry.

3. Tesla To Build a Manufacturing Plant in Mexico

(Read on The Wall Street Journal)

As part of its goal of reaching 20 million units in sales by 2030, Tesla announced recently that it would be building a new production facility in the northern Mexico town of Monterrey. Mexico is already a world leader in car and light truck production, and has been investing heavily in expanding its ability to produce electric vehicles as well. The move is seen as a further expansion in the recent trend toward ‘nearshoring,’ or moving production to countries closer to the products intended market.

4. How Small, Diverse, and Female-Led E-Commerce Businesses Are Finding Warehouse Space

(Read on CNBC)

The explosion in e-commerce, and in particular direct-to-consumer brands selling via their own websites or through marketplaces, has led to some glaring discrepancies in the support available to these small businesses. Enter Saltbox, a co-warehousing business operating multiple facilities across the U.S. With a customer base of more than 700 businesses already, 70% are D2C, and 75% are led by women or people of color.

5. Walmart’s Store-Fulfilled Delivery Sales Nearly Triple in Two Years

(Read on Supply Chain Dive)

Expanding into omni-channel shopping options has been a winning strategy for many retailers over the last few years. Walmart has proven to be no exception, with a 3x increase in store-fulfilled deliveries in just the last 2 years. They now have 3,900 of their 4,717 U.S. locations providing inventory to fill customer orders.

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