Today's Supply Chain Pulse
Strait of Hormuz closure stalls oil price surge despite 100‑day shutdown
The strategic waterway has been shut for 100 days, yet oil prices have not spiked. Prices fell after a U.S.–Iran deal was announced, and analysts warn that any relief to the oil market could take months to materialize.
Also developing:
By the numbers: GIA acquires 30% stake in De Beers' Tracr blockchain platform
The Role of Dispatch Services in Seasonal Freight Fluctuations
Seasonal freight cycles—produce season, back‑to‑school, Q4 peak, and post‑holiday slowdown—create predictable spikes and troughs in rates and lane demand. Professional dispatch services turn these patterns into a strategic advantage by monitoring real‑time market data, negotiating higher premiums during demand surges, and shielding carriers from rate compression in soft periods. By proactively positioning equipment, consolidating loads, and cultivating broker relationships, dispatchers help carriers achieve steadier revenue across the entire year. The article outlines how these tactics translate into higher per‑mile earnings and reduced deadhead miles for owner‑operators and small fleets.
Lufthansa Reassures Travelers as Jet Fuel Crisis Deepens in Europe
Lufthansa announced a series of measures to calm passengers as Europe’s jet‑fuel shortage worsens. The airline will prioritize fuel‑intensive long‑haul flights, temporarily suspend some low‑margin routes, and offer flexible rebooking options. It also secured additional fuel supplies through a partnership...
Hormuz Closure Forces Global Jet Fuel Trade Into Costly Rerouting Scramble
Closure of the Strait of Hormuz has halted roughly 400,000 barrels per day of jet‑fuel exports, pushing European spot prices above $200 a barrel. Refineries and traders have rerouted supplies from the United States, Nigeria, India and other regions, resulting...
Why Speed-to-Adjustment Is Becoming a Competitive Advantage in Consumer Supply Chains
Consumer supply chains are shifting from pure efficiency to speed‑to‑adjustment as demand becomes fragmented, volatile, and digitally driven. Traditional static optimization can become obsolete within days, prompting firms to adopt continuously updated planning and response capabilities. Inventory is re‑positioned as...
Nike: Tightening the Link Between Demand Signals and Global Supply Planning
Nike is reshaping its supply chain by tightly linking real‑time demand sensing with global inventory planning. The company moves beyond traditional forecasting, using continuous intelligence to reposition stock across wholesale, owned stores, digital channels, and regional fulfillment networks. Faster adjustments...
Walmart: Store-Fulfilled Deliveries Getting Faster
Walmart announced that its store‑fulfilled delivery sales have more than doubled in the past two years, and 36 % of Q1 orders arrived within three hours. The retailer now reaches about 60 % of U.S. households in 30 minutes or less, with...
Chemical Plant Closures Trigger New Supply Chain Challenges
A Deloitte report analyzing more than 120 chemical plant closures and mothballings since early 2022 finds the shutdowns are reshaping global supply chains. Weak demand, rising energy and feedstock costs, and lingering overcapacity are the primary drivers. The closures are...
U.S. Strikes Iranian Drone Hub Near Hormuz, Raising Shipping Risks
U.S. Central Command shot down four Iranian attack drones and struck a ground‑control station in Bandar Abbas, a site the Pentagon said threatened commercial traffic in the Strait of Hormuz. Iran’s Revolutionary Guard responded by targeting a U.S. base in...
London Coffee Vendors Warn Flat White Prices Could Top £5 as Bean Costs Surge
London coffee vendors say the price of a flat white is edging toward £5 as global arabica and robusta bean costs climb. Arabica prices have settled at $3.08 per pound after peaking above $4, while robusta sits at $1.56,...
Carrier Rate Hikes Push Mid‑Market DTC Brands to Overhaul Shipping Stacks
Mid‑market direct‑to‑consumer brands are scrambling as UPS, FedEx and USPS raise rates, adding $1.80‑$2.40 per shipment. The cost pressure forces merchants to audit carrier contracts, adopt smarter multi‑carrier routing and explore new technology solutions.
Boeing Secures $854.7 Million U.S. Navy Contract to Build Four P‑8A Patrol Aircraft
Boeing was awarded an $854.7 million contract modification by the U.S. Navy to produce four P‑8A Lot 13 aircraft for foreign military sales customers. The deal also funds non‑recurring engineering to address supply‑chain shortages, software integration and hardware upgrades, with delivery slated...
Premier Alliance to Drop Algeciras Calls in Asia-N Europe Restructure
The Premier Alliance is eliminating its Algeciras calls on both the FE1 and FE3 Asia‑North Europe services. FE1 will now route through Le Havre as the final European port, while FE3 will start in Felixstowe, dropping the Algeciras stop that...
Capacity Boost as Box Trade Grows Between India and China
Container capacity on the India‑China lane is expanding rapidly as demand resurges, prompting new entrants like Ningbo Ocean Shipping (NOS) to launch services via X‑Press Feeders. Established carriers such as CULines and Sinolines are also adding intra‑Asia routes and ordering...
How Conflict Shocks Travel Along Food Supply Chains
New research shows that insurgent attacks on Somalia’s transport corridors raise maize prices far beyond conflict zones. Each additional conflict event along a route lifts wholesale maize prices by about 0.4%, with effects detectable up to 900 km away. Simulations indicate...
Truck Rates Hit All-Time High, Capacity Tightens
Yesterday’s trucking spot rates showed strength. +$.06/mile from $3.53 to 3.59/mile. This is higher than most of Roadcheck week. Capacity continues to stay restricted. On the 7-day chart, rates are at all time highs. If rates hold through strength through next week, it...
Intermodal Growth Raises Spectre of Congestion at Rail Ramps
Intermodal traffic in the United States saw a marginal 0.04% decline in Q1, falling to 4.54 million loads, while domestic volumes rose 3.6% to 2.3 million 53‑ft containers as trucking rates surged and driver shortages tightened capacity. CSX reported a 6% year‑over‑year...
RTX Is Set to Revolutionize Munitions Manufacturing
RTX Corp., through Raytheon, secured a Phase 2 DARPA contract to develop modular, composable solid rocket motors that can be assembled on demand, ending the bottleneck of single‑use propulsion. The partnership with Northrop Grumman aims to create a flexible production line that...
Tata AutoComp Forms JV with Korea’s Jahwa Electronics for EV Components
India’s Tata AutoComp Systems Ltd has entered a joint venture with South Korea’s Jahwa Electronics to manufacture low‑voltage and high‑voltage PTC heaters for electric and hybrid vehicles. The partnership aims to localize production, positioning India as a strategic hub for...
Chinese State Firms Snap Up Indonesian Stainless‑Steel Assets After Jiangsu Delong Bankruptcy
When Jiangsu Delong, the world’s second‑largest stainless‑steel producer, filed for bankruptcy in 2024, Chinese state‑owned enterprises moved quickly to acquire its Indonesian assets. China First Heavy Industries secured the nickel‑rich feedstock, underscoring Beijing’s strategy to lock down critical minerals for...
EU to Systematically Use Tariffs, Quotas Against China
NEWS: EU commissioner for industrial strategy, Stéphane Séjourné, says the European Union will deploy import quotas and tariffs more systematically because European industries like chemicals, metals and clean technology were at risk of being destroyed by unfair Chinese competition. by @ian_c_johnston...
Amazon Proposes $600 M, 2.8‑Million‑Sq‑Ft Fulfillment Hub in Kapolei, Hawaii
Amazon has filed a request to build a 2.8‑million‑square‑foot, $600 million fulfillment center in Kapolei, Hawaii. The five‑story “Project Savoy” would employ 1,562 workers, add 47 loading docks and aim to cut delivery times to two days, but faces pushback from...
Taiwan Seeks Reassurances as U.S. Weighs Potential Semiconductor Tariffs
Taiwan’s vice premier Cheng Li‑chiun urged Washington to confirm tariff‑exemption quotas for Taiwanese semiconductors amid U.S. contemplation of Section 232 duties. The January MOU grants Taiwan‑based chip makers export allowances up to 2.5 times their U.S. capacity, and 1.5 times for completed projects,...
Kazakhstan–Kenya Corridor to Link Continental Logistics
At the latest Kazakhstan‑Kenya Business Forum, leaders discussed creating a trans‑continental logistics corridor that would tie Kazakhstan’s Middle Corridor to Kenya’s key ports of Mombasa and Lamu. President Kassym‑Jomart Tokayev also floated direct Astana‑Nairobi flights to support the trade link....
Thales to Supply Towed Array Sonar for Royal Canadian Navy’s River-Class Destroyers
Thales has secured a contract from Lockheed Martin Canada to provide its S2087 low‑frequency towed‑array sonar for the Royal Canadian Navy’s new River‑class destroyers. The system, part of the CAPTAS family, aligns the Canadian ships with the Royal Navy’s Type 23 frigates...
Mistral Signs Airbus, BMW as It Brings AI to Manufacturing
French AI startup Mistral AI announced that it has signed Airbus SE and BMW AG to deploy its artificial‑intelligence models in advanced manufacturing. The company plans to embed AI across design, simulation and quality‑control workflows, extending its cloud‑based platform beyond...
Global LPG Conversations: US Butane Flows Surge to Meet Asia’s Demand
In this episode of Global LPG Conversations, Anu Agarbal and LPG North America editor Amy Schrehan examine the surge in U.S. butane exports driven by price spikes in Asia after the Iran‑related Hormuz blockade. They explain how U.S. shale gas...
Glasgow Prestwick Airport Launches Scheduled Shanghai Cargo Service
Glasgow Prestwick Airport announced a new direct cargo service to Shanghai Pudong, adding three weekly Boeing 777 flights operated by Air China Cargo. The airline is shifting three of its four weekly Guangzhou flights to Shanghai while keeping 11 weekly services...
Kronenbourg’s Rail-Centred Logistics Cushions Impact of Fuel Price Hikes
French brewer Kronenbourg relies on a rail‑centric logistics network to offset rising diesel costs. From its Obernai plant, the company runs about 450 trains a year, moving 450,000 pallets and delivering roughly 70% of its beer by rail to hubs...
Control Without Ownership: How China’s Party-Business Networks Dominate Indonesia’s Mineral Supply Chains
In 2024 the bankrupt Chinese stainless‑steel producer Jiangsu Delong saw its Indonesian nickel assets quietly taken over by a mix of Chinese private firms and the state‑owned China First Heavy Industries. The takeover illustrates Beijing’s broader strategy of embedding Communist...
Brexit Rules on Food Exports to Be Scrapped, Government Confirms
Britain and the EU have reached a sanitary and phytosanitary (SPS) agreement that will scrap Brexit‑related food export rules from mid‑2027. The deal eliminates the need for costly veterinary, plant and packaging certificates, ending the paperwork “hell” that has delayed...
BHP's Port Hedland Export Operations the ETU's Next Target
The Electrical Trades Union (ETU) announced a vote on work stoppages for electrical workers at BHP's Port Hedland bulk‑export terminal. BHP ships more than 280 million tonnes of iron ore through the port each year, making it a linchpin of its...
Asia Is Already Grappling with a Fuel Crisis. A ‘Super El Nino’ Threatens to Make Things Worse
Asia faces a dual shock as a projected Super El Niño this summer threatens to exacerbate an already‑strained energy market. Droughts will slash hydropower output while soaring temperatures push air‑conditioning demand, stretching power grids already coping with limited oil and gas...
Warwickshire County Council Seeks AI Partner
Warwickshire County Council has opened a two‑year procurement for AI and automation tools, allocating an estimated £2 million (≈$2.5 million) for the project. The initial spend of up to £1 million (≈$1.25 million) will fund speech transcription, document generation, translation and chatbot services accessed...
Flexible Fleet Rental That Scales With Work
A northeast renewable EPC contractor struggled with a rigid fleet model that imposed a 30,000‑mile threshold, forcing three‑day truck exchanges and pulling supervisors off sites. The company switched to PTR’s on‑demand fleet rental, allowing direct, same‑day truck deliveries and rapid...
MIT Sloan Startups Revolutionize Logistics in Industry and Healthcare
4 MIT Sloan startups solving #Logistics problems in industry and #HealthCare by Kristina DeMichele @MITSloan Learn more: https://t.co/ueCGxaZyZT #AI #SupplyChain #MedTech #Automation #DigitalTransformation https://t.co/wXiQWr0VV8
Base Oils Disrupted: War-Driven Supply Tightness
The episode examines how the US‑Iran war has tightened global base‑oil supplies, especially Group 3 output from the Middle East, where the Strait of Hormuz closure and damage to Qatar’s Pearl GTL plant have cut capacity. Analysts note that while Group 1...
Melrose Lifts Evacuation at GKN Aerospace Plant After Chemical Incident, Resuming Production
Melrose Industries announced that Orange County authorities lifted the evacuation order around its GKN Aerospace facility in Garden Grove, California, on May 26, allowing the plant to resume operations after a thermal incident in a methyl methacrylate storage tank. The...
First China, Now South Korea: Why Asian Powers Are Turning to Commercial Arctic Shipping
Disruptions in the Strait of Hormuz have spurred South Korea to pursue a commercial Arctic shipping lane to Europe, mirroring China’s earlier efforts. Seoul’s Ministry of Oceans and Fisheries announced a trial Busan‑to‑Rotterdam service using a 3,000‑TEU vessel slated for...
Oil From US Emergency Reserve Heads to California
For the first time since its inception, oil from the U.S. Strategic Petroleum Reserve (SPR) was shipped to California. About 460,000 barrels of Bayou Choctaw Sweet crude arrived at Chevron’s Richmond refinery, with an additional 50,000 barrels at the El Segundo plant....
Marlink, Metis Partner to Expand IoT Capabilities
Marlink and Metis have signed a memorandum of understanding to fuse Marlink's global maritime digital infrastructure with Metis' end‑to‑end data acquisition and AI‑powered analytics. The partnership will embed Metis' IoT and analytics platform into Marlink's Possibility solutions portfolio and its...
2,000 Ships Stuck, Blocking Strait of Hormuz
There are currently still around 2,000 vessels trapped and unable to pass through the Strait of Hormuz. (Reuters)
Prolonged Strait of Hormuz Closure Could Upend Global Economies, Energy Sector Survey Says
Wood Mackenzie’s May 20 report flags a prolonged Strait of Hormuz shutdown as the greatest single risk to global energy markets, cutting roughly 11 million barrels per day of oil and 20% of LNG supply. The firm outlines three scenarios—from a quick...
Geography Splits Who’s Shopping Online
A new study of 60,000 U.S. households from 2010‑2023 shows that demand for last‑mile home delivery remains sharply divided between urban and rural consumers. Urban shoppers adopted online ordering faster, with pandemic‑era growth twice that of rural areas, and the...
Target’s Focus Is on the Supply Chain
Target announced that Jeff England, former Walmart senior vice president of supply chain, will become executive vice president and chief global supply chain and logistics officer on May 31. The hire follows years of post‑pandemic supply‑chain strain that has hurt...
High-and-Heavy Equipment Makers Tap Into Data Centers for Growth
High‑and‑heavy equipment manufacturers Caterpillar and Deere are seeing strong demand from data‑center construction, offsetting weaker agricultural sales for Deere. Deere projects a 15‑20% decline in U.S. and Canadian farm equipment sales but expects construction equipment sales to rise about 5%,...
Global Supply Shortages Deepen as War Drags On, Risking Jobs and Growth
Three months after the Strait of Hormuz was sealed off, the resulting disruption is now evident across global markets. The chokepoint previously handled about 25% of seaborne crude oil and 20% of LNG, and its loss has triggered physical shortages,...
How Vision and AI Are Changing Picking Operations
A new white‑paper from Automated Warehouse surveys how machine‑vision and AI are reshaping robotic picking across e‑commerce, kit assembly, and palletizing. It features insights from industry players such as Nomagic, Plus One Robotics, Fizyr, Kardex, Tutor Intelligence and Inbolt, highlighting...
Traders Are Skeptical of Iran Timeline for Strait of Hormuz Reopening
Traders on the Kalshi prediction market doubt Iran’s claim it can restore normal traffic through the Strait of Hormuz within a month of a U.S. peace deal. They assign only a 38% probability that flows will normalize by July 1, down...
Locus Robotics Automation Advantage Tour
Locus Robotics is launching an Automation Advantage Tour, a half‑day, invitation‑only event that combines a hosted lunch, peer networking, and a guided walkthrough of an active warehouse. Attendees will hear a customer’s deployment story, see coordinated robot‑human picking in real...
Higher Trans-Atlantic Ocean Rates Plateau as Demand Rally Slows
Trans‑Atlantic container freight rates have stalled after a strong rebound earlier in the year, with westbound pricing flattening over the past two weeks. VLSFO bunker fuel in Rotterdam now trades at $725 per metric ton, a 48% premium to pre‑Middle‑East‑war...