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Logistics Intelligence Brief
Friday, November 12, 2021

Industry

Supply chain dislocation to last through ’22, transportation execs say

Freight Waves Todd Maiden November 11, 2021

As the industry continues to work through the bottlenecks of a very chaotic supply chain, which is meaningfully starved of transportation capacity, the duration of the disruption remains up for debate. However, a consensus is forming that the current boom cycle could carry well into 2022.
“Definitely stronger for longer,” Derek Leathers, chairman, president and CEO at Werner Enterprises (NASDAQ: WERN), told investors at Baird’s global industrial conference on Wednesday. He said since the summer of 2020, volumes “have mimicked what a traditional peak season has looked like” more often than not.

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October saw yet another near-record lengthening of supply chains

DAT.com Dean Croke November 11, 2021

“October saw U.S. manufacturers report yet another near-record lengthening of supply chains, with shortages of components constraining production growth to the lowest since July of last year. Around half of all companies reporting lower production in October attributed the decline to a lack of supplies. However, a further one-in-ten cited a lack of labor, and one-in-four reported that demand had fallen, often because customers either lacked other inputs or were pushing back on higher prices.”

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LA-LB to keep anchored container ships farther off coast

The Journal Of Commerce November 11, 2021

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The ports of Los Angeles and Long Beach will limit the number of ships allowed to drop anchor directly off the Southern California coast starting Nov. 16 to improve safety and reduce emissions as the number of container ships and other types of vessels waiting at anchor reached 92 ships earlier this week.
The need for such a plan — requiring eastbound ships to anchor 150 miles west of the coast, and north- and south-bound vessels to come no closer than 50 miles from shore — suggests that stakeholder don’t expect a significant decline in the number of queuing ships in the short term.

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UP, BNSF end metering from ports as inland congestion eases

The Journal Of Commerce Ari AsheNovember 11, 2021

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BNSF Railway and Union Pacific Railroad will no longer limit the number of containers they move inland from the US West Coast after the metering strategy proved successful in clearing out their congested intermodal networks.
Although the western US railroads and trucking companies generally agree that the supply chain is not back to normal, they say the paralyzing congestion seen in busy intermodal hubs like Chicago, Dallas, Kansas City, and Memphis earlier this year has eased considerably in the last three months.
“Additionally, our rail network and terminals are fluid with sufficient capacity to move more volume,” UP said in a Nov. 10 statement. “Union Pacific is encouraging our customers to ship more IPI [ocean containers railed inland] volume from the West Coast ports by rail as a means of easing port congestion.”
Port and terminal operator officials in Los Angeles and Long Beach say a new Excessive Container Dwell fee is driving down the backlog of long-dwelling containers in their terminals, but with a record number of container ships waiting to berth at the busiest US port complex the effects of the fee on congestion may be muted.

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Technology/Innovation

Could Autonomous Trucks Help Solve the Supply Chain Crisis? (Video 4:27)

The Wall Street Journal George Downs November 11. 2021

Subscription-Based

The Wall Street Journal takes a look at how autonomous trucks could help solve thesupply chain crisis

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