There’s no end in sight for the freight recession, and the downturn is reshaping dynamics in the industry. A lack of certainty looms over experts regarding when the trucking industry could recover from its slump, and there was little good news in the second quarter. According to the recent AFS Logistics and TD Cowen freight index report, truckload rate per mile has continued to slip this year, and the trend is set to continue for a sixth straight quarter. At the heart of the problem are simple economics. When COVID-era consumption surged, trucking capacity ballooned to embrace it. But a few years later, high interest rates have pressured Americans’ spending habits, leaving the industry with a supply-demand mismatch.
In a stride towards sustainability, XPO Logistics and Daimler Truck UK Limited have announced that their partner site in Willen, Milton Keynes, has achieved carbon neutral status. The certification, awarded by Carbon Neutral Britain, encompasses the expansive 140,000 square foot distribution center and the domestic UK distribution of aftersales parts. This center, which began operations in 2022, stands as a testament to the power of partnership in advancing sustainability goals. The journey to carbon neutrality involved several initiatives aimed at controlling and reducing emissions. The site was built to BREEAM ‘Excellent’ standards, and it utilizes green energy to complement on-site renewable energy generation from a solar array. Efficient material flow management minimizes waste, while resources are reused wherever possible. High rates of packaging material segregation and recycling are maintained, rainwater is harvested to lessen demand on water resources, and biodiversity is promoted with on-site bee hives, rewilded land, and natural attenuation ponds. Moreover, sustainable travel plans are available to all colleagues, encouraging walking and cycling to minimize road journeys. The installation of advanced LED lighting systems with zoning control technologies further enhances energy efficiency.
As trade animosities flare between the United States and China, and as multinational retailers absorb the lessons of the supply chain disruptions that accompanied the pandemic, businesses are reconsidering their traditional reliance on Chinese factories to make their products. That effort is gaining momentum as retailers take heed of the growing possibility that Donald J. Trump will return to the White House next year, promising 60 percent tariffs on imports from China. In search of alternative suppliers, many companies are looking to India. At least on paper, it stands as the one nation large enough to develop a comprehensive supply chain for parts and raw materials that might eventually come close to replicating China’s.
That’s all for this week. Enjoy the weekend and the song of the week One More Robot by the Flaming Lips.
The post This Week in Logistics News (July 27 – August 2) appeared first on Logistics Viewpoints.