This week, a study by Descartes has unveiled that 76% of supply chain and logistics operations are grappling with significant workforce shortages, especially in transportation and warehouse sectors. Red Sea cargo diversions are poised to impact holiday shipping for 2024, prompting calls for government action to mitigate peak congestion at U.S. ports. Meanwhile, the International Monetary Fund (IMF) projects a “soft landing” for the global economy, with improved growth forecasts suggesting a retreat from recession fears. UPS is set to cut 12,000 jobs and is considering the sale of its Coyote brokerage unit amid operational adjustments. Additionally, the U.S. government reiterates warnings about the risks for businesses with supply chains linked to Burma, highlighting the ongoing concerns over ties to the country’s military regime. These developments underscore the dynamic challenges and opportunities within the global supply chain and logistics industry. Read the full articles below for more detailed information.
Weekly Freight Report: February 2, 2024
February 1st, 2024
Descartes’ Study Reveals 76% Of Supply Chain and Logistics Operations Are Experiencing Notable Workforce Shortages
The study shows that transportation and warehouse operations are the most challenged by resource shortages. Workforce shortages’ impact varies with financial performance, growth, supply chain importance, and retention program success.
Red Sea Cargo Diversions Could Affect 2024 Holiday Shipping
Government needs to step up to avoid fall peak congestion at US ports, retailers tell lawmakers. Addressing the rising costs that shippers have experienced as result of ship diversions away from the Red Sea, Darr noted that containerized goods are “not all affected equally.
Global Economy Is Heading Toward ‘Soft Landing,’ I.M.F. Says
The International Monetary Fund upgraded its growth forecasts and offered a more optimistic outlook for the world economy. Predictions of a global recession have receded, with inflation easing faster than economists anticipated.
Ups To Cut 12,000 Jobs, May Sell Coyote Brokerage Unit
Management, contract jobs at UPS on chopping block in 2024. UPS said it has recovered about 60% of all diverted volumes, much of that from shippers that sourced delivery services from multiple carriers, including UPS.
U.S. Again Warns of Risks to Businesses With Supply Chains Involving Burma
US departments, including Commerce, State, Treasury, Homeland Security, Labor, and the Office of the US Trade Representative, caution US firms about ties to Burma’s military regime since February 2021.
