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Supply
Chain by the Numbers |
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- Sept. 20 , 2024
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Issues with the "Monster Trains." Record Container Volumes at LA and Long Beach. US Manufactuing Up in August. Amazon giving a Big Jump in Wages to FC Workers |
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3.8 |
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| That’s how long in miles the longest trains at rail carrier Union Pacific are operating at three days, up substantially from a few years. That according to an article last week in the Wall Street Journal about issues are these very long “monster trains,” as some in the industry refer to these giant freight haulers as. What more, in Q2 2024, UP’s average train length was 1.8 miles, up from 1.3 miles in 2018. It is believed other rail carriers would show similar trends. Why? Longer trains are cheaper to operate per car. But some communities are saying “enough.” The Journal notes that a three-mile train traveling at 25 miles an hour takes 7 minutes and 12 seconds to clear a crossing, plus around 20 seconds for the gate warning and close and opening. There are currently no federal limits on train length. The Journal reports that federal regulators are looking into the impact of long trains and considering possible restrictions.
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That was the level of US manufacturing output in August, as represented in the monthly index from the Federal Reserve Bank, which was released this week. That was up from an index score of 98.7 in July, as the index has seen scores hovering around the 99.0 level since February 2023, with no real growth, but not recessionary with declines either. The August level however, was up just 0.2% versus August 2023. But at an index level of 99.6, it means US manufacturing is still now just below output in the baseline year of 2017 (index = 100) now seven years later. It is also well below the all-time high of about 108, reached in late 2007. |
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$22.00+ |
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| That will be in effect the new minimum wage for workers at Amazon fulfillment centers, after the company announced this week it was raising pay for all workers by at least $1.50 per hour. The raises will take effect this month, according a blog post by Amazon this week. In addition, starting next year, all FC employees will receive membership in Prime, Amazon’s fast shipping and video subscription service. All this of course will put tremendous pressure on other distribution operations nearby Amazon facilities. |
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That’s how many TEU of containers were processed by the port of Los Angeles in August, according to numbers released by port officials this week. That’s the highest number of containers handled in a month ever except for the spike seen around the COVID pandemic. “To give you some perspective on how busy we were in August, we had 97 container vessels called the port, the highest number in four years,” Executive Director Gene Seroka told reporters on Wednesday. The surge is being fueled by companies bringing goods in ahead of potential tariff increases after the November election and the threat of a dockworker strike hanging over alternate ports, according the Bloomberg. The same story for LA’s sister port at Long Beach, which had its busiest month on record in August. Both ports so far operating largely congestion free.
