Supply Chain Snapshots - News of the Week (October 2, 2023)
What Happens to Freight if the Government Shuts Down?
(Read more at FreightWaves)
According to the non-partisan, non-profit organization The Committee for a Responsible Federal Budget (CRFB), a full shutdown of the U.S. government would be similar to those in 2013 and early-2018 when approximately 850,000 out of 2.1 million non-postal federal employees were furloughed. Since the movement of goods and other cargo is considered a crucial part of the U.S. economy, expectations are for minimal overall impact, but that will depend heavily on how long the shutdown lasts. For updated information, please see our live-blog on the situation.
More Signs of a ‘Firmer’ Air Cargo Market
(Read more at Air Cargo News)
After more than a year of declining numbers, the air cargo market is showing signs of picking up. According to data provider TAC Index, the BAI airfreight rate index was up 4.8% week-over-week. The trend includes rising rates out of China in advance of the upcoming Golden Week holiday. Includes references from Flexport’s Freight Market Update Newsletter.
[VIDEO] Watch: How COVID Changed the Shipping Industry — Forever
(Watch at Supply Chain Brain)
Innovations developed during the height of the pandemic are helping ecommerce logistics stay attractive to consumers who became accustomed to package tracking, easy returns, and more. This according to Jakki Krage Strako, Chief Commerce and Business Solutions Officer with the U.S. Postal Service. Consumers have taken their expectations back to the office and remain loyal to companies who provide the best support and service.
FMCSA Will Award $44M To Improve CDL Processes
(Read more at Trucking Dive)
The money is intended to help streamline the process of training and onboarding badly needed new drivers by increasing staffing at Commercial Driver License (CDL) training centers, improving cross-state reporting, and other moves to help bolster the supply chain. According to Transportation Secretary Pete Buttigieg, “With these grants, we are helping states bring more well-trained drivers into this essential field, strengthening our supply chains for years to come.”
The Ambitious Regulations Cleaning Up Fashion’s Supply Chain
(Read more at Supply Chain Dive)
The EU is set to enact a variety of measures intended to force the fashion industry to clean up its act, both environmentally and ethically. As early as January 2024, new laws are coming into effect that will impact any fashion brand doing business on the continent. First to be impacted will be those brands who do more than ~ $163 million in annual sales revenue within EU member countries. The initiatives will filter down to smaller businesses within a few years. The director of New York-based nonprofit New Standard Institute, Maxine Bédat, put it well when she said that “you can take a leadership position and get ahead of it, and you’re ultimately going to be in the right, not just the right place morally but from the market as well.”
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