[#286] Supply Chain in Numbers - May 19, 2025
260 US FTZs see higher demand now, Lineage buys some cold DCs from Tyson, Walgreens plans prescription filling automation, Suez Canal offers 15% discount on fees, UPS has a new Canada surcharge
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.
260 FTZs
The trade war has brought boom times for the ultimate U.S.-based tariff refuges: Foreign-trade zones. Companies can import products tariff-free temporarily while stored or used to assemble other goods at warehouses in these zones. Since Trump’s tariff blitz began, inquiries have quadrupled at the U.S.’s roughly 260 FTZs. One of these warehouses in Arizona is teeming with new business from companies stashing aluminum poles, ice picks, carabiners, firearm safes, and other imported items. FTZs have been around since 1934, when they were allowed to ease some of the effects of the Smoot-Hawley tariffs. FTZ operators charge companies setup and storage fees, which are small compared with the upfront tariff bills some importers face. The facilities don’t solve all tariff challenges: If duties go down, as they did with China on Monday, companies will still be on the hook for the amount assessed when their goods entered an FTZ. [WSJ]
$247 million for 160,000 cold pallet positions
Lineage, the world’s largest global temperature-controlled warehouse real estate investment trust (REIT), plans to expand its U.S. cold-storage network by acquiring existing cold storage warehouses from Ohio-based Tyson Foods, greenfield developments, and enhanced automation implementation. Lineage will acquire and take over operations of four existing cold storage warehouses and other related assets from Tyson Foods for $247 million. These warehouses total approximately 49 million cubic feet with 160 thousand pallet positions, and are located in Pottsville, Penn.; Olathe, Kan.; Rochelle, Ill.; and Tolleson, Ariz. [D Business]
40% of prescription volume
As struggling drugstore chains regain their footing, Walgreens is doubling on automation. The company is expanding the number of retail stores served by its micro-fulfillment centers, which use robots to fill thousands of prescriptions. Walgreens first rolled out the robot-powered centers in 2021, but paused expansion in 2023 to focus on gathering feedback and improving performance at existing sites. Walgreens hopes to have its 11 micro-fulfillment centers serve more than 5,000 stores by the end of the year, up from 4,800 in February and 4,300 in October 2023. As of February, the centers handled an average of 40% of the prescription volume at supported pharmacies. That translates to around 16 million prescriptions filled monthly across different sites. [CNBC]
15% off on canal fees
It’s been a rough year for the Suez Canal: tensions in the Persian Gulf and risks to shipping from Houthi rebels have meant that many ships would rather detour around Africa’s Cape of Good Hope to get from the Indian Ocean to European ports and back. Revenue from the Suez, which is crucial for Egypt, dropped to $880.9 million in the fourth quarter of last year, down from $2.4 billion the previous year. To entice ships, the Suez Canal Authority is doing a 15 percent off sale on transit fees for any container ship with a net tonnage of 130,000 metric tons or more for the next 90 days. [NumLock]
$0.49 per package surcharge
UPS is implementing a surcharge on U.S.-to-Canada shipments for several services starting May 18, four days before a potential Canada Post strike could disrupt the parcel delivery market. The Surge Fee price varies by service, with a $0.49 per-package surcharge for UPS Standard shipments to Canada. UPS Worldwide Economy will see a $1.25 per-pound fee, and the carrier’s Worldwide Express, Saver, Express Plus, Expedited, and Express Freight offerings will have a $0.49 per-pound charge. [Supply Chain Dive]