[#278] Supply Chain in Numbers - Mar 24, 2025
$20k tariffs for $100k toys, 80k containers impacted per month, 70% price hike for coffee, Nomagic raises $44M, Advance Auto Parts plans 60 regional market hubs
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.
$20,000 tariffs for $100k stuffed animals
An extra $20,000 for stuffed animals. $50,000 for a flat tire. A surprise $850,000 on orders of lawn furniture and garden supplies. That is the price of new tariffs for three U.S. businesses that depend on imports. Last fall, Molson Hart ordered $100,000 worth of stuffed animals from China — dragons, pygmy goats, and white tigers — to sell through his Texas-based company, Viahart Educational Toy Co. In January, the toys were loaded onto ships for voyages across the Pacific Ocean and the Panama Canal. President Trump imposed new tariffs on China in February and again in March. The toys arrived in Houston on March 12, days after the 20% tariff took effect. The cost to Hart: an additional $20,000. [WSJ]
80,000 containers per month
The China-Europe Railway Express, a flagship trade route under Beijing’s Belt and Road Initiative, faces one of its most severe disruptions. Russia’s increased restrictions and mass confiscations of goods have caused logistics chaos, forcing Chinese suppliers to rethink their reliance on the rail corridor. This transcontinental railway has been a critical lifeline for years, transporting up to 80,000 containers per month. Since October 2024, Russian authorities have enforced stricter transit rules — particularly on dual-use goods, such as mechanical and electronic products that could have civilian and military applications. The response from China-based freight companies has been swift. Many firms have entirely abandoned the route, unwilling to risk further losses. [The Chain]
70% price hike since November
The global coffee trade is grinding to a halt as brutal price hikes impact the market. Prices for Arabica coffee futures have surged 70% since November, prompting traders and roasters to make minimal purchases as retailers push back against accepting higher prices. Global coffee traders and roasters say they have slashed their purchases to minimal levels as the industry reels from a steep price surge that suppliers have yet to convince retail stores to accept. The coffee price hikes have stemmed from lower production in important coffee-growing regions, particularly in top grower Brazil, reducing the availability of beans. [Reuters]
$44 million Series B for robotic arms
A fast-growing Polish startup called Nomagic, which builds robotic arms for picking, packing, and moving in logistics operations, has raised $44 million in funding. The company plans to use the money for technology and business development, including breaking ground on its first effort to sell its robots to customers outside Europe, specifically in North America. The VC arm of the European Bank for Reconstruction and Development (EBRD) leads this Series B, a development bank co-owned by more than 70 countries and two European Union institutions. Alongside the EBRD, top-shelf returning backers Khosla Ventures and Almaz Capital are participating. [Tech Crunch]
60 regional market hubs
Advance is restructuring its supply chain to flow goods from distribution centers to regional market hubs and traditional stores. The hubs carry more products than its typical stores, allowing Advance to quickly send an item out from a hub to a nearby store when needed without having to wait for a shipment from a distribution center. Advance has 19 market hubs across the U.S. today, with plans to add 10 this year. It aims to have 60 such facilities by mid-2027. The company also has been consolidating its warehouses and closing stores. It has closed 10 of 38 U.S. distribution centers and said it would shut an additional 12 this year. It plans to have 12 warehouses nationwide by the end of 2026. Advance will close about 500 corporate stores and 200 independently owned locations by the end of March. [WSJ]