The Friday Report: December 10, 2021

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

Christmas Tree Supply Chain Problem

Christmas tree vendors are experience a shortage of Christmas trees available for sale during the holidays due to supply chain complications and climate change. Both natural and artificial trees are impacted with low supply to purchase. The ongoing supply chain disruptions has impacted artificial trees since they are mostly imported from Asia and takes longer to get to the United States.

Christ Butler, CEO of National Tree Company advises consumers to buy trees before Thanksgiving since there will be a lot of empty shelves. Majority of tree farms are from Oregon and Washington and has been impacted from extreme weather events. Extreme weather events such as floods, heat waves, and wildfires have impacted the growth of trees. The price of Christmas trees is also on the rise due to the low inventory. Consumers should expect a $50 increase on trees for the holidays.

For more information, please continue reading here.


Tight Market Harvest Haulers Face

The Northwest Region has a high spot market rate and tighter capacity. The extreme temperatures of hot weather have impacted this region over the summer that caused wildfires decreasing the availability of crops. With the decrease of available produce comes with a higher price in crops and transportation. Christmas trees were one of main products that were impacted the most for the extreme weather.

There has also been a shortage on equipment and drivers. This shortage has contributed to the supply chain disruption and resulted in increased costs for transportation. Refrigerated goods have had the most significant increase cost of transportation.

Customers are now investing technology that gives them visibility of their deliveries in order to manage mounting costs. Investments in a cold chain visibility and control solution provides support to ensure the integrity of the cargo and the efficient use of capacity when capacity is scarce. If a temperature equipment failure occur, technological remote monitoring allows dispatchers to fix the problem without involving the driver.

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Samsung Confirms $17 Billion Semiconductor Fabricator in Taylor, Texas

Samsung announced that the new fabricator in Texas could create up to 2,000 advanced manufacturing jobs. The factory will be operational by the second half of 2024 and will cover more than 5 million square meters. The semiconductor fabricator will make advanced chips useful to mobile, 5G and artificial-intelligence application, Samsung announced.

Samsung has been manufacturing semiconductors in the United States for 25 years and will further continue. With new manufacturing capacity, Samsung believes they will be able to better serve the needs of their customers and contribute to the stability of the global semiconductor supply chain.

Samsung will bring $47 billion of foreign investment in the United States operations from the $17 billion investment. According to the Austin Business Journal, the company may have property tax abatements as an incentive. The company can expect to have substantial incentives for their $17 billion building investment and for operating in Texas.

For more information, please continue reading here.

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