PRIMO NEWSLETTER
Week September 18th to 22nd, 2023
TRUCKING
2023 Truking perspectives
September 2023
The trucking industry has seen improvements since the early pandemic disruptions, with reduced supply chain bottlenecks and increased capacity. However, significant challenges persist due to inflation, a tight labor market, and high-interest rates, which have raised transportation costs. Rising costs, including wages, healthcare, insurance, fuel, and equipment replacement, have strained the industry. Additionally, the industry faced the bankruptcy of Yellow Corp due to labor issues and debt. Inbound Logistics conducts an annual survey with key concerns and responses of trucking companies and shippers.
UAW 3-Plant Strike, A First in 40 Years, Could Impact the Trucking Industry
September 15, 2023
The United Auto Workers (UAW) members have officially started to strike at the GM, Ford and Stellantis facilities, resulting in potential disruptions to Detroit-area logistics. However, the active strikes are only affecting 10% of total union members. If the strikes expand, more notable disruptions will be likely. Should the activity widen, shippers will need to immediately rethink their fulfillment strategies for the area.
TECHNOLOGY
Investors Bet on AI to Improve Supply Chain Management
September 8, 2023
Major venture capital firms have fully embraced AI as the next wave of innovation in supply chain management. Aside from its obvious value in route optimization and demand forecasting, the value of AI is starting to see more realistic across a host of technologies that will enable automation in execution and in downstream processes, up to and including final mile delivery.
TikTok Shop’s Impact on U.S. E-commerce Landscape
September 18, 2023
TikTok, primarily known for its short-form videos, has entered the U.S. e-commerce market with TikTok Shop. With a large user base, TikTok could become a significant player, and its affiliate program has already attracted over 100,000 creators. The “Fulfilled by TikTok” logistics approach may impact the broader supply chain. This move puts TikTok in competition with Amazon and Shein, with a focus on trend-driven purchases and a majority of sellers being U.S.-based. Collaborations with e-commerce platforms like Shopify and WooCommerce could streamline operations but also pose challenges.
US AND INDUSTRY
Central Texas Readies for Massive Semiconductor Expansion
September 15, 2023
The US trade deficit for July 2023 has been released, providing insights into the country’s economic performance and trade relations. The deficit is up $1.3 billion compared to June 2023. Clearly, increased imports of consumer goods and capital equipment weren’t able to make up the difference, and this could only be a precursor of below-average expectations for the coming quarter.
WHAT IS HAPPENING AT THE BORDER
Mexico remains top US trade partner in July, Laredo No. 1 gateway
September 17, 2023
Mexico has maintained its position as the top U.S. trade partner in July, with trade amounting to $65.3 billion, marking a 0.24% year-over-year increase. This marks the seventh time in the past eight months that Mexico has held the number one spot in monthly international commerce with the U.S. Nearshoring of manufacturing to Mexico is contributing to increased cross-border trade, attracting nearly $10 billion in foreign direct investments in the first eight months of 2023.