The Friday Report Blog: August 5th, 2022

Quick wrap up of a few hot topic newsworthy stories in the supply chain logistics industry

FedEx Express Announces Added Routes Amongst Europe and Asia


FedEx Express recently announced that they will be introducing a new trade route between Asia and Europe. The company says that consumers in North Asia, China, and Japan will get to take advantage of greater connectivity and more dependable service due to the implementation of the route.

This new flight route is the first to connect Beijing, China’s capital city, to the FedEx Hub at Charles De Gaulle Airport, in Paris, France. The connection will help to extend the cut-off time for same-day shipping from Beijing to Europe and provide consumers with more time to plan their shipments.

The route will also include ten weekly connections through Osaka, Japan. This gives Japanese companies a greater ability to ship time-sensitive or temperature-controlled packages. In addition, the route will provide a direct connection between Paris, France, and Singapore for one day a week. The city-state Singapore is the European Union’s second-biggest commercial partner. This connection will increase the collective weekly shipping capacity by 50,000 kilograms.

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3PLs Have Best Growth and M&A Year On Record

According to an Armstrong & Associates, Inc. report, air, ground, and ocean transportation rates reached historic levels, helping to give 3PLs their highest growth year on record. Shippers relied on 3PLs to support and manage their inventories during an extended period of strong consumer demand, supply chain bottlenecks, and constrained carrier capacity.

Experts say that the nations COVID-19 was a catalyst that sparked growth opportunity across the 3PL market. Companies with strong carrier management, e-commerce, and air freight forwarding resources were more favored in the market. This contributed to the fastest growth in 3PLs since the Armstrong and Associates, Inc. began reporting the data.

In addition, global 3PL market revenues rose to $1.4 trillion, an increase of 41.8% from the previous year. There were 25 M&A transactions with purchase process over $100 million, the most ever and three times more than last year.

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Port of Oakland Shut Down Amid Protests


The Port of Oakland was closed on Wednesday by the Oakland International Container Terminal management in response to the protests of independent truckers. The protests are over a California gig workers law known as AB5.

AB5 is a law that requires companies who hire independent contractors to reclassify them as employees. This is a problem for truck drive because they do not want to become employees nor become part of a union to work. A large percentage of Californian truck drivers are owner-operated and under this law, 70,000 truckers would not be able to own and drive their own trucks.

The Port of Oakland is the eighth-largest port in the nation and over 2100 trucks go through its terminals each day. The port is popular for importing wine from Australia, furniture from China, and aluminum from South Korea. Reports stated that the ports reopened on Monday.

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