Risk
In 2022, the U.S. supply chain faces dual uncertainties from port and railroad labor negotiations. Cargo volumes at West Coast ports decline, while the share of East Coast ports rises, as shippers adopt cargo diversion strategies to hedge against strike risks. Yet this strategy is not without costs; diversion leads to longer delivery times, higher logistics costs, and may trigger port congestion. Experts expect cargo diversion to become a routine option in shippers' future supply chain planning.
At the end of September, Nike announced 'decisive actions' on inventory, shaking the industry. Data shows that retail inventory in the second quarter of 2022 surged 31% year-over-year, hitting a ten-year high. Companies such as Target, Adidas, and Hasbro have followed suit with price cuts to clear stock. Although retailers hope to 'clean house' before the holiday season, analysts expect inventory levels to only 'improve slightly,' with margin pressure extending into 2023.
Despite political criticism of ESG as "woke capitalism," lawyers and former regulators expect the SEC to still issue climate risk disclosure rules by January next year, requiring listed companies to detail carbon emissions and climate risks, and may retain the most stringent compliance requirements.
After Hurricane Ian made landfall in Florida, volunteers such as truck driver Joe Myerly, through organizations like Operation BBQ Relief, overcame road obstacles to transport food and supplies, supporting a large-scale meal effort. The American Logistics Aid Network and others provided transportation and refrigerated trailers, helping the nonprofit achieve a supply of 60,000 to 80,000 meals per day, with plans to eventually reach 100,000 daily, for a total goal of one million meals.
Amid ongoing supply chain turbulence, an increasing number of FMCG companies are choosing to address challenges by acquiring existing plants rather than building new capacity. Cases such as Hershey's acquisition of Dot's Homestyle Pretzels and Hormel's acquisition of Planters show that securing manufacturing capability has become a core consideration in deals. This article analyzes the drivers, risks, and industry trends of capacity acquisition through M&A.
As the surge in package demand brought by the pandemic fades, the long-standing conflict between FedEx Ground and its 6,000 independent contractors erupted in 2022. Contractors represented by Spencer Patton publicly demanded higher compensation, the elimination of Sunday deliveries, and restrictions on temporary changes, with some even threatening work stoppages during peak season. Analysts point out that residential delivery compensation lower than commercial delivery, rising costs, and declining demand are eroding contractor profits, while the legal dispute over franchise rights may become the next focal point.
The greatest difficulty in retail decarbonization lies in Scope 3 emissions, which are indirect emissions across the value chain's upstream and downstream activities, constituting the vast majority of its carbon footprint. Despite data collection challenges and slow industry progress, experts emphasize the need for immediate action and highlight the importance of policy support and supply chain collaboration.
Small and medium-sized candy manufacturers in the United States are facing multiple challenges, including labor shortages, rising logistics costs, and unstable raw material supplies. To cope with these difficulties, many companies have begun adjusting their procurement strategies, recruitment methods, and production plans to sustain operations in a volatile market environment.
Nichelle Gainer originally planned to release her photography book "Lady Day: Body & Soul" on April 7, the birthday of music legend Billie Holiday, but the first batch of pre-ordered books did not arrive until more than two months later. The reason was that the cargo ship "Ever Forward," carrying the book, ran aground in the Chesapeake Bay for a month and subsequently faced congestion at the Port of New York. This incident highlights the common lack of visibility and cascading disruptions in the international supply chain.
Over the past two years, FMCG companies such as Keurig Dr Pepper, PepsiCo, and Mondelez have successively announced targets to reduce the use of virgin plastics in packaging, with recycled plastics and paper becoming popular alternatives. However, the pandemic disrupting consumer behavior and material supply chains, limitations in the existing U.S. recycling system, and new variables such as the war in Ukraine collectively threaten these timelines. Experts from institutions such as IHS Markit and RaboResearch point out that the commitments were made without a foundation of means for achievement, and price and supply fluctuations make the short-term path to meeting targets unclear.