[#283] Supply Chain in Numbers - Apr 28, 2025

Novartis plans $23B US investment, Grimaldi buys 9 new ships, Optilogic closes $40M funding, Increase in blank sailings, Hyundai has 3-months of supply to mitigate tariff impacts

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.

$23 billion pharma investment

Novartis plans to spend $23 billion over the next five years to expand its footprint in the U.S. The company said it will establish a research hub in San Diego, expand three U.S. plants, and build six new ones. The investment will create roughly 1,000 new jobs at Novartis and lead to around 4,000 other jobs in the U.S. outside of Novartis, the company said. It will enable Novartis to manufacture all of its medicines domestically for the U.S. Novartis said that the locations of four of the new plants have not been determined, but they will produce biologics, pills, and other aspects of drugs. Two new facilities will be built in Florida and Texas to help make next-generation cancer therapies, known as radioligands, that deliver radiation directly to cancer cells. Three U.S. plants already producing the drugs will expand. [WSJ]

$1.3 billion for 9 new ships

Italy’s short-sea transportation company Grimaldi Group is accelerating investments in a younger and more efficient fleet of eco-friendly ro-pax carriers, committing $1.3 billion for nine newbuilds at China Merchants Jinling Shipyard (Weihai). The company says that the nine pioneering vessels, part of its fleet expansion and renewal program, will be equipped with engines capable of running on methanol and designed to transport rolling cargo and passengers in the Mediterranean and Baltic Seas. At a length of 229 meters, the Mediterranean ro-pax vessels will have a cargo capacity of 3,300 lane meters for rolling freight, as well as accommodating over 300 cars and up to 2,500 passengers. The Baltic Sea newbuilds will be 240 meters long with a cargo capacity of 5,100 lane meters for rolling freight, plus 90 cars and up to 1,100 passengers. [Maritime Executive]

$40 million Series B

Supply chain design software company Optilogic closed its $40 million Series B round. The investment reflects growing demand for tools that can adapt enterprise supply chains to increasing levels of complexity and disruption. With global operations under pressure from trade shifts, labor shortages, and extreme weather events, the company positions its technology to help transform how enterprises make critical decisions. Optilogic’s flagship platform, Cosmic Frog, supports the development of large-scale digital supply chain models. The software enables analysts and business users to simulate and evaluate potential changes without requiring specialized technical skills. Cosmic Frog supports supply chain decision-making across cost, service, and risk dimensions. [Super B Crew]

367,800 TEU Blank Sailings

Container shipping lines have dramatically increased blank sailings on Trans-Pacific routes in response to escalating trade tensions between the U.S. and China. The total blanked capacity for weeks 16–19 has surged to 367,800 TEU, representing a significant increase from just 60,000 TEU three weeks prior. The Asia-North America West Coast trade lane has seen a 12% drop in scheduled capacity compared to six weeks ago, while the Asia-North America East Coast route has experienced an even steeper decline of 14%. Blank sailings are expected to continue rising in the coming weeks, particularly in the Transpacific eastbound trade. Some vessels may depart China with significant empty space through May as cargo owners cancel shipments or halt cargo at origin to offset rising costs. [G Captain]

3 months of supply

Hyundai Motors front-loaded shipments ahead of tariff hikes in April, allowing it to stock up on finished vehicles and auto parts. The company has enough inventory for more than three months of operations in the U.S., which could help mitigate the impact of higher import duties. The U.S. market accounts for roughly one-quarter of Hyundai’s global wholesales, with imports from Korea and Mexico making up 60% of its sales in America. South Korea’s government earlier this month announced a multibillion-dollar emergency aid package for the country’s auto sector to help cushion the impact of the tariffs, which it said would cause significant damage to local automakers and car-component manufacturers. In 2024, South Korea’s car shipments to the U.S. totaled around $35 billion. [WSJ]