Under GM’s contract with the U.S. Department of Health and Human Services, Ceva Logistics is responsible for delivering hundreds of parts which will be used in the making of the Ventec Life Systems V+Pro critical care ventilator at General Motors’ Kokomo, Indiana factory.
The two firms have worked together on other projects for more than a decade, and under the new deal, Ceva will act as the exclusive logistics provider on the inbound part of this project, providing supplier management, order management, transportation and customs brokerage management, and event monitoring for all the components required in manufacturing ventilators.
“Every ventilator we build can help save lives, and GM’s global supply base and manufacturing teams, the UAW, and the Kokomo community are working with passion and unwavering commitment to get the job done,” Gerald Johnson, GM executive vice president, Global Manufacturing, said in a release. “People have moved mountains to help increase production of Ventec’s critical care ventilator. I have never seen anything like it in my career.”
And in other examples of the logistics industry dedicating its assets to the coronavirus fight:
Ground transportation solution provider Circle Logistics is shipping loads of Covid-19 medical supplies and food stocks for the U.S. Federal Emergency Management Agency (FEMA) and providing the agency with real-time visibility of critical medical supply and grocery shipments through a partnership with Descartes MacroPoint. In support of that effort, Circle Logistics has shifted its entire transportation network to help manage the 700% increase in volume from customers moving critical medical supplies, like personal protective equipment (PPE), respirators, and cots, as well as grocery shipments for major brands. “The COVID-19 crisis is completely different from the normal disaster that we deal with as a country,” Andrew Smith, Circle Logistics’ vice president of sales and operations, said in a release. “When there’s a hurricane, forest fire or other natural disaster, supplies are going to the specific affected areas. With COVID-19, supplies are coming from and subsequently shipping—everywhere.”
Marseille, France-based supply chain industry data provider Traxens has slashed the price of its smart container program to help global firms manage the challenges presented by the Covid-19 pandemic. The company now offers a price of $35 per smart dry container trip–down from its standard $90 rate—in a move aimed at bolstering the supply chain industry. Traxens smart container solutions provide real-time visibility into global shipments, giving customers data insights about when, where, and why disruptions or delays occur. That information is crucial for navigating today’s volatile markets, where Covid-19 disruptions have taken supply chain uncertainty to a whole new level, the firm said. “At a time of crisis, Traxens has a societal commitment to all stakeholders and end-customers, that’s why we have dramatically cut the cost of our IoT solutions. Traxens smart container services will enable supply chain stakeholders to collaborate effectively, with round the clock visibility into container information as the world strives to resume full operational capacity,” Jacques Delort, managing director at Traxens, said in a release. “When this pandemic has passed, our hope is that we will all be better placed and more resilient, ready to support renewed demand with agility and efficiency.”
New Hampshire-based fleet management company Merchants Fleet has landed $50 million in financial backing from Bain Capital Credit to continue the company’s growth in providing variable fleet options with a single point of contact and combining fleet teams with a high-touch technology platform. The platform aids the 60% of the firm’s clients that have been deemed “essential industries” during the fight against Covid-19. “In response to the needs of essential businesses, we have realigned our marketing, sales and operations teams to support the home delivery surge as we focus on getting our clients the vehicles required to ensure people across the country receive the goods and services they need,” Merchants Fleet CEO Brendan P. Keegan said in a release. “It has never been more critical for these businesses to continue operations with minimal disruption and to have safe and clean vehicles at their disposal.”
North American manufacturers have begun stockpiling goods to buffer against the impact of potential tariffs threatened by incoming Trump Administration, building up safety stocks to guard against higher imported costs, according to a report from New Jersey business software firm GEP.
That surge in orders has sparked a jump in production, shrinking the level of spare capacity in global supply chains to its lowest level since June, the firm said in its “GEP Global Supply Chain Volatility Index.” By the numbers, that index rose to -0.20 in November, from -0.39 the month before, based on GEP’s measurement of demand conditions, shortages, transportation costs, inventories, and backlogs from its monthly survey of 27,000 businesses.
Another impact of the trend has been to trigger a surge in procurement activity by manufacturers in Asia—especially China—as new orders rebounded sharply. Only India reported a greater rise in raw material purchases than China in November. And preparations to ramp up production even further were evidenced data showing factory procurement activity across Asia rising at its fastest pace for three-and-a-half years, GEP said.
In sharp contrast, Europe's industrial recession worsened in November, in large part due to Germany's deepening manufacturing downturn. Factories in that region went deeper into retrenchment mode, as demand for inputs from manufacturers in Europe was its weakest since December 2023.
"In November, U.S. manufacturers, particularly in the consumer goods sector, increased their safety stocks to help blunt any immediate tariff increases," John Piatek, vice president, GEP, said in a release. "In contrast, Chinese manufacturers are getting busier as a result of government stimulus and growth in exports, led by automotives and technology products. Strategically, many global companies have a wait-and-hope approach, while simultaneously planning to remake their global supply chains to respond to a tariff and trade war in 2025 and beyond."
In response to booming e-commerce volumes, investors are currently building $9 billion worth of warehousing and distribution projects under construction in the U.S., with nearly 25% of the activity attributed to one company alone—Amazon.
The measure comes from a report by the Texas-based market analyst firm Industrial Info Resources (IIR), which said that Amazon is responsible for $2 billion in warehousing and distribution projects across the U.S., buoyed by the buildout of fulfillment centers--facilities that help process orders and ship products directly to end customers, ensuring deliveries of online goods from retailers to buyers.
That investment is inspired by U.S. Census Bureau data showing $300.1 billion in a preliminary estimate of U.S. retail e-commerce sales for third-quarter 2024, adjusted for seasonal variation but not for price changes, compared to $287.5 million in the first quarter, and an increase of 7.4% compared with third-quarter 2023. In addition, e-commerce sales accounted for 16.2% of total retail sales in the third quarter of this year, the report said.
Private equity firms are continuing to make waves in the logistics sector, as the Atlanta-based cargo payments and scheduling platform CargoSprint today acquired Advent Intermodal Solutions LLC, a New Jersey firm known as Advent eModal that says its cloud-based platform speeds up laden container movement at ports and intermodal hubs.
According to CargoSprint—which is backed by the private equity investment firm Lone View Capital—the move will expand the breadth of global trade that it facilitates and enhance its existing solutions for air, sea and land freight. The acquisition follows Lone View Capital’s deal just last month to buy a majority ownership stake in CargoSprint.
"CargoSprint and Advent eModal have a shared heritage as founder-led enterprises that rose to market leading positions by combining deep industry expertise with a passion for innovation. We look forward to supporting the combined company as it continues to drive efficiency in global trade,” said Doug Ceto, Partner at Lone View Capital.
Terms of the deal were not disclosed, but Parvez Mansuri, founder and former CEO of Advent eModal, will act as Chief Strategy Officer and remain a member of the board of directors of the combined company.
Advent eModal says its cloud-based platform, eModal, connects all parts of the shipping process, making it easier for ports, carriers, logistics providers and other stakeholders to move containers, increase equipment utilization, and optimize payment workflows.
Airbus Ventures, the venture capital arm of French aircraft manufacturer Airbus, on Thursday invested $10.5 million in the Singapore startup Eureka Robotics, which delivers robotic software and systems to automate tasks in precision manufacturing and logistics.
Eureka said it would use the “series A” round to accelerate the development and deployment of its main products, Eureka Controller and Eureka 3D Camera, which enable system integrators and manufacturers to deploy High Accuracy-High Agility (HA-HA) applications in factories and warehouses. Common uses include AI-based inspection, precision handling, 3D picking, assembly, and dispensing.
In addition, Eureka said it planned to scale up the company’s operations in the existing markets of Singapore and Japan, with a plan to launch more widely across Japan, as well as to enter the US market, where the company has already acquired initial customers.
“Eureka Robotics was founded in 2018 with the mission of helping factories worldwide automate dull, dirty, and dangerous work, so that human workers can focus on their creative endeavors,” company CEO and Co-founder Pham Quang Cuong said in a release. “We are proud to reach the next stage of our development, with the support of our investors and the cooperation of our esteemed customers and partners.”
As another potential strike looms at East and Gulf coast ports, nervous retailers are calling on dockworkers union the International Longshoremen's Association (ILA) to reach an agreement with port management group the United States Maritime Alliance (USMX) before their current labor contract expires on January 15.
The latest call for a quick solution came from the American Apparel & Footwear Association (AAFA), which cheered President-elect Donald Trump for his published comments yesterday indicating that he supports the 45,000 dockworkers’ opposition to increased automation for handling shipping containers.
In response, AAFA’s president and CEO, Steve Lamar, issued a statement urging both sides to avoid the major disruption to the American economy that could be caused by a protracted strike. "We urge the ILA to formally return to the negotiating table to finalize a contract with USMX that builds on the well-deserved tentative agreement of a 61.5 percent salary increase. Like our messages to President Biden, we urge President-elect Trump to continue his work to strengthen U.S. docks — by meeting with USMX and continuing work with the ILA — to secure a deal before the January 15 deadline with resolution on the issue of automation,” Lamar said.
While the East and Gulf ports are currently seeing a normal December calm post retail peak and prior to the Lunar New Year, the U.S. West Coast ports are still experiencing significant import volumes, the ITS report said. That high volume may be the result of inventory being pulled forward due to market apprehension about potential tariffs that could come with the beginning of the Trump administration, as well as retailers already compensating for the potential port strike.
“The volumes coming from Asia on the trans-Pacific trade routes are not overwhelming the supply of capacity as spot rates at origin are not being pushed higher,” Paul Brashier, Vice President of Global Supply Chain for ITS Logistics, said in a release. “For the time being, everything seems balanced. That said, if the US West Coast continues to be a release valve for a potential ILA strike supply chain disruption, there is a high risk that both West Coast Port and Rail operations could become overwhelmed.”