[#251] Supply Chain in Numbers - Sep 23, 2024
FedEx rates go up by 5.9%, Truck driver wages go up by 10%, A cargo ship with 27.5k TEUs, PacSuns returns problem, UPS buys two companies in healthcare logistics
Welcome to “Supply Chain in Numbers.” This newsletter tracks significant numbers from the supply chain world. Five prominent numbers are published every Monday. If you have any feedback, please send it to me.
5.9% parcel rate increase
FedEx’s package and freight shipping rates will increase by an average of 5.9% on Jan. 6, 2025. The move affects standard list rates for U.S. deliveries and exports from and imports into the country. Ground Economy, Ground Multiweight, International Premium, International Priority DirectDistribution, Freight Priority, and Freight Economy rates are among the services that will also see prices increase. Residential deliveries, two-day air shipments, and bulky packages are among those targeted by the Jan. 6 price hikes. [Supply Chain Dive]
Truck driver pay up by 10%
According to the American Trucking Association’s latest Driver Compensation Study results, driver wages across the industry continue to increase post-pandemic despite pressure on freight rates and tonnage. ATA’s survey shows truckload drivers earned a median annual amount of $76,420 in 2023 — a 10% increase over the previous two years. Linehaul less-than-truckload drivers earned a median annual amount of $94,525 in 2023, while local LTL drivers earned a median of $80,680. Median annual compensation for drivers at private carriers has risen 12% since 2021, reaching $95,114 in 2023. [CCJ Digital]
27,500 TEU capacity
China State Shipbuilding Corporation’s (CSSC) Shanghai Ship Research and Design Institute has obtained preliminary permission for a 27,500 TEU LNG dual-fuel containership. The ship reportedly increases cargo capacity but has a highly optimized hull shape for improved fuel economy. Due to its connectivity with shore power sources, the Green Sealion 27500 can operate with zero emissions while moored. This massive vessel, Green Sealion 27500, sets a new world record for TEU capacity. [Port Technology]
250 returns worth $24,000
Apparel retailer PacSun noticed a sharp increase in returns of online purchases earlier this year, including one customer who had returned some 250 orders worth $24,000. PacSun had issued the refunds, but the company never received the merchandise at its warehouse. Instead, workers found used or different merchandise returned in the box or even empty shoe boxes. The company said its investigation found that many fraudulent returns followed tips passed along through websites, groups on the messaging app Telegram, and other forums aimed at siphoning off money through the retail returns process. [WSJ]
$152 billion per year by 2026
Healthcare logistics is becoming a major pillar of global supply chain operations. United Parcel Service is moving deeper into the market by acquiring two German companies, Frigo-Trans, and BPL, adding to the carrier’s European distribution capabilities for the specialized business. The deals appear relatively small, but they fit into the broader expansion in the corner of shipping focused on pharmaceuticals and other medical goods. UPS expects the global market for healthcare logistics to grow from $130 billion last year to $152 billion in 2026 and its share of that business to double to $20 billion in two years. [WSJ]