Supply Chain by the Numbers for June 13, 2024


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Supply Chain by the Numbers

- June 13, 2024

Supply Chain by the Numbers for June 13, 2024

Ocean Shipping Rates Heading Back Down? Amazon Flex Drivers File Suit; A Summary of New Biden Tariffs on Chinese Imports; Amazon Union to Join Teamsters

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82%
That was the rise in the Shanghai Containerized Freight Index for the period of early April to June 7. The index tracks the average cost of shipping a container out of Chinese ports. Why the sharp spike? Attacks by so-called Houthi rebels in Yemen on container or tanker/bulk ships entering or leaving the Red Sea on their way to or from the Suez Canal. That caused many carriers to instead reroute ships to take the path around Africa and the Cape of Good Hope. That change adds to the time and cost of the voyage, and in effect reduces capacity. The good news for global shippers? Ocean carriers have seen their stocks prices drop sharply this week on news of a possible cease-fire between Israel and Hamas. That might cause the Houthi rebels to stop firing their missiles, leading back to normal routes and lower rates,

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15,860

That’s about the number of Amazon Flex contract delivery drivers that filed legal claims against Amazon on June 11, alleging the company’s classification of them as independent contractors instead of employees has led to unpaid wages and other financial losses. Two law firms spearheading the action said that many Amazon drivers have submitted arbitration claims with the American Arbitration Association, where 453 similar cases are already being litigated. The Amazon Flex program, which was founded in 2015, uses contract drivers to deliver packages with their own vehicles. Most drivers earn $18-25 per hour, according to Amazon. The arbitration claims were made by drivers in California, Illinois and Massachusetts, all of which have rules that significantly limit the ability of companies to categorize workers as contractors not employees.



8000
That’s about how many workers there are at Amazon’s JFK8 fulfillment center in Staten Island that made headlines in April 2022 by becoming the first Amazon FC in the US to vote to organize, under the auspices of a somewhat makeshift Amazon Labor Union. But the ALU has been unable to get a contract sighed, amid internally disputes among union leaders. So in the face of that lack of success, last week the ALU agreed to be merged into the Teamsters Union, likely to Amazon’s chagrin, as the Teamsters will be much more likely to get to the bargaining table with Amazon. Amazon union members will vote on ratification with the Teamsters within “the coming weeks,” the Teamsters said.



50%
That is the new tariff level on Chinese-made semiconductors under the Biden admission’s recent hike of many tariffs on top of those put in place earlier by the Trump Whitehouse. That’s up from 25% currently, and will take effect in 2025, according to a summary this week by Logistics Management. Other tariffs changes include: certain steel and aluminum products increasing from 0-7.5% to 25% in 2024; electric vehicles increasing from 25% to 100% in 2024; solar cells tariff rates, whether or not assembled into modules, increasing from 25% to 50% in 2024; tariffs on syringes and needles increasing from 0% to 50% in 2024; certain personal protective equipment, including certain respirators and face masks, increasing from 0-7.5% to 25% in 2024; and tariffs on rubber medical and surgical gloves increasing from 7.5% to 25% in 2026. How will China respond?

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