Good day,
Finding suitable urban warehouse space to support final-mile deliveries will be easier said than done. Expanded construction in many major cities is out of the question due to space constraints. Urban neighborhoods are populated with older buildings that are not designed for super fast-cycle sortation and delivery. And developers find that conversions to retail or residential are more financially attractive than logistics. An article in Bisnow, citing a 2019 report from real estate services giant JLL Inc., found that 13.2 billion square feet of urban industrial space is more than 50 years old and has clear heights of less than 20 feet, the latter being outdated in a world of vertical racking systems needed for e-commerce.
Did you know?
The global spare parts logistics market will add $20 billion in revenue between 2019 and 2023, growing at a 6% compound annual rate over that time, according to data firm Technavio.
Quotable:
“Washington’s (state) effort to effectively ban the transport of Bakken crude into the state is an important reminder of the potential for preemption whenever a state or local government takes an action that affects interstate freight transportation.”
–David E. Benz, attorney in ThompsonHine’s transport practice group, writing on Bloomberg.com
In other news:
Indian ‘mom-and-pop’ logistics firms threatened by digitization
The government’s ambitious plan to drive down logistics costs by using digitization will threaten smaller, legacy firms that lack the resources or know-how to compete in a new world. (The Loadstar)
Logistics 4.0: In the long run, the freight is alive!
The push toward super-intelligent systems could mean the cargo itself could become intelligent and manage its own transport autonomously. (MaschinenMarkt)
Vietnamese logistics firm gets Singaporean investment
Ho Chi Minh-city based Vietnamese logistics services provider Scommerce has secured a $100 million investment from Singapore state investment firm Temasek. (Deal Street Asia)
Etihad Air logistics unit expands vehicles fleet, supporting services
Etihad Secure Logistics Services LLC (ESL), a wholly owned subsidiary of Etihad Airways PJSC, is increasing its vehicle fleet and expanding its services across the UAE capital, citing demand from Abu Dhabi’s government. (AJOT.com)
Semiconductor parts distributor expands into logistics
Taiwan-based WPG Holdings, touted as the world’s largest semiconductor parts distributor, has expanded into logistics after determining that 90% of Taiwan businesses are small to midsize and can’t afford to build out their own warehouse networks, CEO Frank Yeh said. (Digitimes)
Final thoughts:
It helps to have friends in high places. The price of virtual currency Bitcoin briefly topped $10,000 over the weekend, according to CoinDesk, after Chinese state media reported that President Xi Jinping said Chinese industry should embrace blockchain, the digital ledger that maintains an indelible record of transactions or other data across a network of computers. According to reports, Xi said China should “seize the opportunity” offered by blockchain, adding the technology could benefit industries including finance, education and healthcare.
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now