[#261] Supply Chain in Numbers - Nov 25, 2024
Spot rates increased by 5%, Continuum raised $4.1M, Alphaliner is ordering 11 vessels of 24k TEUs, WH Smith plans opening 500 new stores in the US, Boxship orders are on the rise
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% increase in spot rates
Nationwide dry van spot rates minus the influence of fuel jumped 5% as carriers rejected contracted truckload tenders at the second-fastest pace of the year. The National Truckload Index Linehaul Only (NTIL) measures the average spot rate for dry van loads moving more than 250 miles, excluding the total estimated fuel cost. The NTIL has been trending higher over the past year and a half but has moved erratically, as is the nature of commodities negotiated daily. The peak of the truckload market 2024 occurred around the Fourth of July, a seasonal moment when capacity comes offline, and shippers push freight out en masse at the end of the second quarter. That top should be surpassed in the coming weeks as the holiday shipping season hits its stride. The jump in spot rates is coming as carrier rejection rates have jumped above 6% for the second time since the middle of 2022. [Freightwaves]
$4.1 million seed investment
Continuum, a reverse logistics software company dedicated to B2B distribution and manufacturing, announced a $4.1 million seed investment. Continuum has developed the first Returns, Warranty, and Repairs Network for B2B distributors and manufacturers, designed to modernize traditionally complex, costly, and inefficient processes across the supply chain. The platform can be used independently or collaboratively with distributors and manufacturers to address what Continuum describes as the “multi-party” return within the supply chain. [Go Continuum]
11 vessels of 24,000 TEUs
Alphaliner is reporting that Taiwan’s Evergreen Marine has requested proposals for eleven 24,000 teu methanol dual-fuel vessels. Evergreen has reportedly asked six builders to make offers. The yards in question are Samsung, Hyundai, and Hanwha from South Korea, as well as China’s Jiangnan Shipyard and Hudong-Zhonghua Shipyard, and Imabari from Japan. The ships could cost as much as $265m per vessel, with delivery dates likely in 2028 and 2029. No ships of this size — megamixes — have been ordered by any liner this year. France’s CMA CGM was the last container line to order megamixes in June of last year. [Splash247]
500 new stores by 2028
Book, magazine, and snack retailer WH Smith Green up-pointing Triangle plans to boost its presence in the fast-growing North American market with a target of 500 stores by 2028. WH Smith opened 40 stores in North America this year and expects to open around 60 stores there over the next two years. Currently, the business has 256 stores in North American airports, 83 stores in resorts, and two stores in railway stations, but airports are set to be the group’s focus as it refocuses away from resorts. The company recently won business at the Dallas, Denver, and Washington Dulles airports and is the preferred bidder for a further 15 stores across two major U.S. airports. [WSJ]
254 new orders for boxships
The post-pandemic boxship boom has become even more prevalent in 2024. The year could be a record-breaking one regarding new vessels entering the market, with orders massively rising when compared to the same period in 2023. According to a new report by VesselsValue, the data intelligence arm of maritime data solutions provider Veson Nautical, orders for new container vessels are up by 52% year-on-year, with 254 new orders placed in 2024. In the corresponding period of 2023, this figure stood at 167. So far, in 2024, 362 new container vessels have entered the market. The report claims that 169 will be delivered in the last few months of the year. [Splash247]