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Supply
Chain by the Numbers |
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- Oct. 18, 2024
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Amazon goes big with robots at Louisiana FC. consumers moving towards slower parcel shipping. US manufacturing flat again in September. Freight recession continues on
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That is the multiple in terms of the number of robots deployed at a new Amazon fulfillment center in Shreveport, Louisiana versus previous FC designs. That according an Amazon blog post last week. In addition to the ten-fold increase in robots at the site, the new FC will use artificial intelligence (AI) to direct the eight different models that will be used. In the blog, Amazon added that ‘“For the first time, we have introduced technology solutions in all key production areas at the site, meaning our employees will work alongside our growing fleet of robotic systems seamlessly in a way that wasn’t possible until now.” Despite the huge robot deployment, the 3 million square foot FC will still employ some 2500 humans when fully ramped up. |
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That was the level of US manufacturing output in September, as represented in the monthly index from the Federal Reserve Bank, which was released this week. That was down from an index score of 99.5 in August, as the index has seen scores hovering around the 99.0 level since February 2023, with no real growth, but not recessionary declines either. The September level was down 0.5% versus same month in 2023. But at an index level of 99.1, 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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5.2% |
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| That was the decline in freight shipment volumes in September versus the same month in 2023, as the freight recession continues on. That according to the Freight Report for September from Cass Information Systems, based on the large amount of freight bills Cass pays for its clients each month. The index also fell 1.7% versus August. After coming basically flat in for all of 2022, shipment levels fell 5.5% in 2023. In this latest monthly report, Cass forecasts another decline in shipments of 4-5% for 2024. Truckload rates, before fuel surcharge and other accessorial costs, were down 3.5% year-over-year, Cass finds. |
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That was the drop in the average daily volume for domestic next-day air services in UPS’ most recent quarter, compared with the prior year. At FedEx, priority packages were down 5% last quarter. The cause: consumers are increasingly eschewing express air shipping for ground service. That according to an article last week in Transport Topics. “More people are switching to slower delivery options to save money, and profits at FedEx Corp. and UPS Inc. are getting squeezed,” the web site for the ATA’s magazine reported. In fact, demand for expedited shipping has fallen every year since 2021. “Consumers are stressed,” said Gordon Glazer, senior consultant at logistics firm Shipware. “Families are doing everything that they can to reduce costs, and they’re willing to wait longer to receive products to do so.”
