[#216] Supply Chain in Numbers- Jan 29, 2024
Pitney Bowes adds 1,000 return locations, Indian govt to pay $1.32B manufacturing incentives, Avg. price per 40' is at $3,777, 6-day freight strike in Germany, Ryder opens 1M sqft DC for Lexmark
Welcome to “Supply Chain in Numbers.” This newsletter tracks significant digits from the world of the supply chain. Five prominent numbers are published every Monday. If you have any feedback, please send it to me.
50% population within 10 miles
Pitney Bowes and PackageHub, a franchise system of retail shipping stores, have launched a drop-off network for product returns with no box or label required. The network features nearly 1,000 locations for returns across the U.S., with roughly 50% of the population within 10 miles of a location. There is no additional cost for retailers or consumers to use the network. E-commerce brands already using Pitney Bowes’ returns service have immediate access to the network with no additional integration required. The collaboration with PackageHub allows Pitney Bowes to expand its existing returns network, which offers no-label returns at 30,000 postal locations. [Supply Chain Dive]
$1.32 billion incentives
India expects to pay incentives worth 110 billion rupees ($1.32 billion) to private companies this fiscal year ending March for their investments to boost local manufacturing. The government has already paid incentives worth 44.15 billion rupees under the production-linked scheme. The scheme launched in 2020 covers 14 sectors, from electronic products to pharmaceutical drugs. [Reuters]
$3,777 per 40' container
The only way is up for global ocean shipping costs as Houthi rebels continue attacks in and around the Red Sea. Average worldwide prices for shipping a 40-foot container rose 23% through Jan. 18 to $3,777 more than doubling in the past month. The price increases and delays caused by disruptions at a transit point for the Suez Canal mostly affect trade between Asia and Europe. But the higher costs are reaching the U.S. West Coast too. Spot-market rates to ship containers from China to Los Angeles rose 38% from Jan. 18 to $3,860 in the week. [WSJ]
6-day freight rail strike
Freight train drivers working for Germany’s state-owned rail firm Deutsche Bahn are to begin a six-day strike starting Jan 24th — making it one of the longest industrial actions ever seen on the country’s rail network. Major industrial associations representing interests such as the automotive and chemical sectors were worried about the strike's effect on their supply chains. However, the German rail freight association Die Gueterbahnen claimed that private operators carry some 60% of German rail freight; rail freight shippers ought to be able to find alternatives during the six-day strike. [The Loadstar]
1 million sqft DC
Ryder opened its first fulfillment center for technology manufacturer Lexmark, streamlining two operations into one with the shipping and receiving of printers, toner cartridges, and spare parts. The one-million-square-foot facility in Jeffersonville, Indiana, will enable 99% same-day shipping and 99% midnight parcel pick-up with next-day air service. The facility will also facilitate the customization, configuration, return, refurbishment, and equipment recertification. [Supply Chain Dive]