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PGL Video Newsletter – September 2023

Welcome to the latest edition of the PGL monthly newsletter! In September, we attended Aero Engines Europe in Madrid, Spain and the GSE Expo in Las Vegas and celebrated Labor Day and the United States Air Force 76th birthday. We also Sponsored the Tee It Up for the Troops North Texas golf tournament in Farmers Branch, TX benefiting those who have been wounded in defense of our freedom.

We also announced that our DHL Express customers can now benefit from the new dedicated flight to Argentina.

Our latest Featured Product video and helpful tip focuses on our domestic tradeshow department. Lastly, we have a fresh Industry Insights video to get you caught up with the latest in industry news and started a new LinkedIn page to serve as a handy resource for Industry Insights reports.

Industry Insights on LinkedIn

Enjoy this recap of the month and in the meantime, PGL will continue to deliver peace of mind, 24/7/365.

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DHL Express Update – New Flight to Argentina

 

With a capacity of 52 tons per flight, this new direct route benefits customers shipping between the U.S. and Argentina

DHL, the world’s leading provider of international express shipping, has announced the launch of a new dedicated network flight to Argentina. The flight operates six times per week between Miami International Airport (MIA) and Buenos Aires, Argentina (EZE), with a stopover in Santiago, Chile (SCL), before returning to Miami (MIA).

Operated by DHL Aero Expreso, the Boeing B767-300 aircraft will provide a gross payload capacity of 52 tons per flight. The new, dedicated network flight will improve service reliability and increase capacity to support DHL’s international shipping customers. This is the first DHL dedicated network flight serving Argentina.

“DHL remains steadfast and bullish in its belief in the power of trade, and how it continues to drive local economies, build prosperity and fuel entrepreneurship ” said Mike Parra, CEO of DHL Express Americas. “That’s why we continually invest in and strengthen our global network. The introduction of this new flight to Argentina reinforces our unwavering commitment to global trade by delivering faster and more efficient shipping and logistics solutions, and addressing the growing demand in the region.”

The new DHL network flight will improve delivery times for U.S. origin shipments, resulting in a 10% increase in shipments clearing Customs the same day the flight arrives in Argentina, and a 50% increase in shipments being delivered the same day they are cleared.  Service for shipments originating in Argentina have also improved, enabling 100% of shipments to be exported, at the latest, the day following the pick-up.

DHL Aero Expreso is a Panama-based airline that operates cargo services in Latin America and the Caribbean. The new flight to Argentina marks a significant milestone for DHL Express, as it continues to expand its dedicated network capacity in the region. In 2021, the company added Chile to its dedicated network with a direct flight from the United States. In 2022, Brazil was incorporated into the network as well, with more than 600 tons of cargo capacity per week. This flight also improved connectivity with Central America through its connection in Colombia.

Last year, DHL Express introduced several new routes, including a flight to and from Vietnam and the United States as bilateral trade increased, adding 102 tons of additional capacity per flight; a new route between Japan and the United States, also in response to the increasing international shipping needs between these two countries, adding 102 tons of additional capacity per flight, six times per week.

 

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Industry Insights – September 2023

Supply Chain Industry Insights

September 2023

Welcome to the PGL Industry Insights report for September, 2023.

Leading our report this month, we touch on the ongoing drought affecting the Panama Canal. Though the canal connects two oceans, it requires 50 million gallons of fresh water to fill the locks for the passage of a single vessel. This shortage of fresh water has led to significant wait times as often over 100 vessels sit at both entrances and wait as long as 4 days, twice as long as usual.

Spots to skip the wait are being auctioned off, leading to costs as high as 2.4 million dollars for a single vessel in late August. Solutions to this drought are being investigated, and include re-routing nearby waterways, which of course, comes with tremendous financial penalties and environmental uncertainty. Despite this, Asia-to-US-East-Coast rates have so far not been adversely affected. PGL will continue to monitor the situation and keep you informed.

In trans-Pacific news, spot shipping rates simmered in August after a summer surge and have fallen by double digits in September. This could mirror the scenario we saw this time last year when some carriers were offering mid-contract discounts to keep business from switching to unusually low spot shipping rates. Carriers are instituting blanked sailings to combat this capacity availability, but only time will tell how much impact that will have on pricing.

According to a FreightWaves SONAR report, North American trucking is in for some big changes as carriers large and small are choosing to exit the industry. This ultimately leads to fewer available trucks, and survivors of this exodus can expect higher rates in the future, assuming volume remains relatively high. There’s no guarantee of that, but with rising LTL rates and steadily-declining inventory, there are reasons for carriers to be bullish if they can weather the storm.

Last month, we told you that diesel prices were on the rise, and that trend has continued through September, with prices surpassing the February high. Of the many factors at play, tight refinery capacity, a reduction of 1 million barrels per day by Saudi Arabia and ongoing sanctions on Russia are the largest contributors to the price hike we’re seeing. The most recent news points to declining prices on the futures market, but that decline has not yet made it to the pump.

In Labor news, President Biden praised the ratification of the West Coast Dock Worker contract Involving the International Longshore and Warehouse Union and the Pacific Maritime Association, Saying: “It’s a good deal for workers, it’s a good deal for companies, and it’s a good deal for the United States of America.”

Speaking of the President and labor actions, Biden joined the striking UAW workers in the picket line on Tuesday as thousands more auto industry workers began striking on Monday and Trump Addressed the union on Wednesday.

The weather may be cooling down, but supply chain industry news certainly is not. As always, PGL will continue doing what we do best, delivering peace of mind, 24/7/365.

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PGL Video Newsletter – August 2023

Welcome to the latest edition of the PGL monthly newsletter! In August, we attended the ACPC in New York, celebrated the birthdays of the U.S. Coast Guard and U.S. Marine Corps Reserves, and National Aviation Day. We also moved an entire BD7000 fuselage halfway across the country and documented the move for your viewing pleasure. Our latest Featured Product video and helpful tip focuses on insurance. Lastly, as usual, we have a fresh Industry Insights video to get you caught up with the latest in industry news.

Enjoy this recap of the month and in the meantime, PGL will continue to deliver peace of mind, 24/7/365.

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Industry Insights – August 2023

Supply Chain Industry Insights

August 2023

Welcome to the PGL Industry Insights report for August, 2023.

UPS suffered larger-than-expected shipment losses due to labor concerns. After a tense July that threatened labor disputes that were ultimately avoided, UPS has posted lower Q2 volumes, due to lost business that had been shifted over to other providers.

As expected, Yellow has filed for bankruptcy, leading to the largest filing in trucking history. At the time of this writing, a bidding war is taking place for the defunct trucking company’s assets.

Transportation prices fell again in July but at a slower rate than in the prior two months. According to data provided by the Logistics Managers’ Index, the projected falloff was not as steep as expected. At the tail end of the inventory bubble, the report indicated that some companies are transitioning back to just-in-time inventory strategies in order to avoid the increased warehousing cost that has come with the swell in inventory.

DHL Continues to make moves with plans to build a $192M maintenance hangar at CVG superhub. The Kentucky Economic Development Finance Authority approved $1 million worth of incentives for the 305,000-square-foot facility. CVG is the main point for connecting DHL’s express network to the rest of the world, with 130 daily flights conducted by a fleet of 60 aircraft.

Trans-Atlantic rates point to a shift in strategy. It appears that trans-Atlantic rates are on track to mirror the conditions of the trans-pacific shift that happened in the second half of 2022. In that scenario, some carriers offered discounts mid-contract to keep the market from moving to more affordable spot rates that are currently less than half of the current contract rates.

The Diesel Benchmark price is on the rise. The benchmark price that is used to calculate most fuel surcharges is on the way up to its highest level since February.

July import volumes continue to mirror pre-COVID ‘normal’. July ocean imports are up 5% vs. June and flat compared to July 2019. That sounds like it could be good news, but if you’ll recall, 2019 was a historic downturn before the pandemic turned the world upside down. The return to “normal” could be an indicator of excess inventory finally coming down, which could be good news for a more stable future, but 2019 is certainly not the baseline we want to return to.

During a summer full of labor disputes, the industry seems to be cooling off, even if the weather isn’t. As always, PGL will continue doing what we do best, delivering peace of mind, 24/7/365.

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PGL Video Newsletter – July 2023

Welcome to the latest edition of the PGL monthly newsletter! PGL had an action packed month, and we start with our attendance of the Air Wisconsin Golf Tournament and sponsorship of the Air Alaska Golf Tournament. From there, we touch on our latest case study that answers the question: “How does a seasonal pop-up store like Spirit Halloween seemingly appear out of nowhere?” We have a new Featured Product Video that explores our Air Freight services as well as a helpful tip, and we wrap up this month’s newsletter with the latest in labor news with our monthly Industry Insights report.

Enjoy this recap of the month and in the meantime, PGL will continue to deliver peace of mind, 24/7/365.

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Industry Insights – July 2023

Supply Chain Industry Insights

July 2023

Welcome to the PGL Industry Insights report for July 2023.

Labor disputes continue to lead the news this month, with wide-ranging effects across the industry.

The on-again/off-again LWU Canada strike at Western Canadian ports of Vancouver and Prince Rupert seems to have calmed, as the two parties – ILWU and BCMEA – now have a new tentative agreement in place. 

Prince Rupert had cleared its vessel backlog during the tentative agreement and work continuation. Vancouver vessel line-up was showing multiple vessels at berth, but with the news of this agreement, work is underway to clear the congestion.

It appears that UPS has narrowly avoided an August 1st work stoppage with what has been described as a “historic” agreement in place with details that include $30 million added to wages among other terms, and was called by UPS CEO Carol Tomé, a “win-win-win agreement”. Not only is this good news for UPS and their employees, but for the economy as well, as a strike of this size could have had far-reaching consequences across multiple industries.

Many shippers are scrambling to find alternate partnerships in the midst of the turmoil surrounding Yellow and their pending labor dispute. The latest news as of Wednesday is an announcement from their Seniour Vice President of Sales to her staff, indicating that Yellow intends to file for bankruptcy on Monday. Yellow is the third-largest LTL company and employs about 30,000 people.

In other news, DHL Express has been making waves with not only the opening of it’s new $84.5 million dollar hub in Atlanta, it has also made an important step in opening a West Coast air hub in California after the Ontario International Airport Authority approved plans to develop the South Airport Cargo Center. The Ontario airport is located in Inland Empire, just east of Los Angeles, and will allow for over 850,000 square feet of expansion that there just isn’t room for at LAX. DHL Express has long been the international leader in freight and their plans to increase their presence in the US are shaping up.

With the latest in supply chain news, labor contracts continue to make headlines. In the meantime, PGL will continue to keep you moving, 24/7/365.

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DHL EXPRESS OPENS NEW $84.5M HUB IN ATLANTA

  • DHL unveils its most eco-friendly hub in the Americas region, based at Hartsfield–Jackson Atlanta International Airport
  • Up to 50% of the energy consumed at the DHL Atlanta Hub is generated on-site through solar-paneled roof

DHL Express, the world’s leading provider of express shipping services, today announced the grand opening of its Americas region hub based at the Hartsfield-Jackson Atlanta International Airport (ATL). With a focus on sustainability, the $84.5 million investment further strengthens the company’s connections and service capabilities between the U.S. and key global markets, increasing capacity, speeding transit times, and adding resilience to its network.

Spanning 100,000 square feet, the state-of-the-art hub establishes direct connections between 19 cities in the Southeastern U.S. and key global markets, including Europe and major DHL hubs worldwide. Future plans involve adding flight connections to Hong Kong, Mexico, the UK, and Puerto Rico.

The DHL Atlanta hub also sets new standards for sustainability, generating up to 50% of its on-site energy consumption through 65,000 sq. ft of rooftop solar panels, preventing the release of 380 metric tons of CO2 emissions annually. The remaining energy consumed on-site is sourced from renewable sources through Renewable Energy Certificates (RECs), guaranteeing zero emissions from electricity consumption. Moreover, the hub employs environmentally conscious features such as LED lights, electric forklifts, dock seals, and rapid rise doors, further minimizing its environmental impact.

“The new DHL Express Atlanta Hub represents a milestone in our ongoing pursuit of sustainability and technological advancement. It also exemplifies our belief in the power of international trade and recognizes the significance of Atlanta and the Southeast U.S. in the global marketplace,” said Mike Parra, CEO of DHL Express Americas. “By fostering commerce and bridging borders worldwide, this hub not only generates economic growth but also creates job opportunities in Atlanta. We take great pride in contributing to the prosperity of the communities where people live and raise their families.”

The DHL Atlanta Hub operates as a fully-automated facility, equipped with cutting-edge technology capable of sorting up to 20,000 pieces per hour. To ensure swift clearance of DHL customer shipments, the hub employs in-house Customs brokers and collaborates with on-site U.S. Customs and Border Protection personnel. Additionally, DHL implements advanced threat detection and security screening technologies, effectively preventing the entry of illegal and hazardous commodities into its network.

“Our commitment to safety extends to all our facilities, and the DHL Atlanta Hub not only prioritizes the well-being of our employees but also fosters their growth and success,” commented Parra.

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PGL Video Newsletter – June 2023

Welcome to the June edition of the PGL monthly newsletter! We hope you had a safe and happy Independence Day, celebrated with friends and family. Today we start with our attendance of NBAA conference in New York, as well as our sponsorship and participation in the annual ABQ Southwest Golf Fore Charity tournament.

We have informative video to share with our monthly Industry Insights report as well as a new Featured Product Video that explores our Ocean Freight services. We also have a helpful tip for you to get the most out of your ocean freight efforts.

Enjoy this recap of the month and in the meantime, PGL will continue to deliver peace of mind, 24/7/365.

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Industry Insights – June 2023

Supply Chain Industry Insights

June 2023

Welcome to the PGL Industry Insights report for June 2023. 

This month’s report highlights significant developments in labor talks across various modes of transportation and offers predictions for the second half of the year.

A tentative contract agreement has been reached between maritime employers and the International Longshore and Warehouse Union (ILWU) for all 29 ports along the US West Coast. This resolution ends 13 months of contentious negotiations and disruptive job actions that affected port operations. However, the shortage of lashers and other essential labor positions has left many vessels stranded at berth, impeding their departure and preventing new vessels from entering and unloading.

Although the tentative agreement is positive news, the repercussions of the labor issues will continue to be felt in the near future. The timing of this agreement is particularly crucial as some ocean freight traffic has been diverted to the East and Gulf coasts while Panama is experiencing its worst drought since 1950. This drought restricts ships’ drafts in the Panama Canal, and the Panama Canal Authority (ACP) warns of further water level declines and inevitable economic impacts.

On the heels of a report earlier in June revealing that UPS Inc. has agreed to install air conditioning in package cars purchased after January 1, 2024, UPS Teamsters voted overwhelmingly on June 16th to authorize its leadership to call a strike in the event a contract cannot be reached by the deadline of July 31. 

In other labor news, less-than-truckload carrier, the Yellow Corporation, has informed the Teamsters union that it will run out of funds by August if a proposed change of operations isn’t approved. The union argues that the company has been mismanaged for years and asserts that it will not bail Yellow out again, having already given substantial financial support in the past.

A recent FreightWaves SONAR report indicates a further decline in US containerized import volumes for the second half of 2023. The inventory disruptions caused by the “bullwhip effect” and the risks associated with consumer spending contribute to importers exercising caution during the peak season. Additionally, the weakening global macroeconomic conditions further heighten the risks of declining import volumes.

While ocean container bookings have been on par with 2019 levels in the first half of 2023, a departure from those levels is expected in early Q3, leading to a significant drop of 10% to 20% below the volumes experienced during the second half of 2019. This decline is projected across the Top 10 US ports.

With the latest in supply chain news, labor contracts continue to have a big impact on the industry as high inventories and economic uncertainty continue to fuel speculation that, whatever normal is, we’re not there yet. In the meantime, PGL will continue to keep you moving, 24/7/365.

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PGL Video Newsletter – May 2023

Welcome to the May edition of the PGL monthly newsletter! This month has been action-packed, starting with our sponsorship and participation in the annual Freeman golf tournament and R. Lee Ermey Memorial Golf Classic.

As usual, we have informative video to share with our monthly Industry Insights report and this month our Featured Product Video is highlighting the magic that we make happen with our Kitting Services. We also have a helpful tip for you to get the most out of your kitting efforts.

Enjoy this recap of the month and in the meantime, PGL will continue to deliver peace of mind, 24/7/365.

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Industry Insights – May 2023

Supply Chain Industry Insights

May 2023

Welcome to the PGL Industry Insights report for May, 2023.

In this month’s report, it appears that in many ways the industry is settling back into a pre-pandemic state. The challenge there is that as you likely recall, 2019 was not a great year for the Supply Chain industries.

FedEx Freight, the less-than-truckload unit of FedEx Corp., plans to close 29 service locations in the U.S. as part of ongoing efficiency efforts. The closures will be completed by August 13, with affected operations consolidated into other locations.

The price benchmark for diesel fuel, used for setting fuel surcharges, has hit a low not seen since early 2022. The drop in diesel prices is attributed to broad macroeconomic factors, including China’s reopening not generating the expected results and limited evidence of crude supply cuts agreed by OPEC+. However, diesel demand and inventories in the U.S. remain relatively near normal levels.

In the labor sector, both WestJet and Norfolk Southern, players in the air and rail cargo spaces, successfully avoided union strikes through negotiations.

The Logistics Managers’ Index reported that transportation capacity continues to expand while rates remain depressed. Transportation utilization showed signs of improvement, moving into expansion territory, and transportation prices contracted at a slower pace compared to the previous month’s all-time low. This could be attributed to warehousing capacity loosening up as inventories decrease in the consumer goods and retail sectors.

Sealed Air, the manufacturer of Bubble Wrap, experienced a significant decline in volume, indicating decreased packaging demand. This, along with decreased demand for boxes has been a good economic indicator in the past, as it is historically sensitive to economic conditions.

U.S. containerized import volumes in 2023 have been tracking alongside 2019 levels, suggesting a return to a pre-pandemic state. However, caution should be exercised in assuming a second-half rebound during peak season, as import volumes may have already bottomed for the current downcycle.

U.S. imports did see upward movement in April, reaching or surpassing 2019 levels, although still higher than pre-COVID inventory-to-sales ratios, monthly imports continue to increase, if not at the rate we would all like to see.

With the latest in supply chain news, the overall feeling is that we’re all bracing for an uncertain 2023 that isn’t going to be the rebound we’ve all been hoping for. In the meantime, PGL will continue to keep you moving, 24/7/365.

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