Skip to content
Search AI Powered

Latest Stories

BIG PICTURE

Supply chain diplomacy

We live in an interconnected and interdependent world built on our supply chains. That may just be our best hope for peace.

When Germany invaded Poland in September 1939, the world was in a very different place. International transportation was slower, and the advent of the modern shipping containers that would become the backbone of global trade was more than a decade away. The only response the world had to oppose Nazi aggression was to join the physical fight.

Two decades later, we experienced the Cuban missile crisis. By this time, trade had increased tremendously, and Japan had been reinvented as an international manufacturing center.


In those days, Cuba was politically isolated due to its communist government. It relied primarily on the Soviet Union and a few friendly nations for most of the goods it needed. Because of this dependence, the U.S. maritime blockade that prevented ships with vital goods from reaching Cuban shores was a significant factor in reaching a fast resolution to the crisis and sparing many lives.

By the time we turned to a new century, much of the world’s production had moved to Asia and other distant lands. China had grown into the dominant force in world manufacturing that it is today. Supply chains had become increasingly complex, with materials and finished goods sourced from around the globe.

Today, we live in an interconnected, interdependent world. I contend that it is this global supply chain interdependency that also makes for a safer world.

We are currently witnessing the international reaction to the Russian invasion of Ukraine. Unlike the situation in 1939 when Germany invaded Poland, the supply chains of today have become weapons nearly as potent as armed forces. Our interdependent economies, built on our supply chains, are a difference maker. As I write this, the fighting continues, but with a much weaker Russia and a much stronger Ukraine than when the invasion began.

Our fast-responding supply chains have rushed military equipment, medicines, food, and supplies to help the Ukrainian people in the struggle to protect their homeland. Those same supply chains have also delivered supplies needed to care for the millions of displaced civilians who have fled to neighboring countries.

At the same time, denying Russia most of its trade has severely limited that nation’s ability to conduct war, while hampering life at home for everyday Russians. Our weaponized supply chains can impact the world where other diplomacy may fail.

While many decry how manufacturing has left our shores—and I agree that much of it should be brought back to reduce leadtimes—those complex, interdependent supply chains that keep our world running may be the best chance for sustaining peace. China and other nations that depend heavily on global trade should take notice not to bite the hands that feed them.

The Latest

More Stories

U.S. shoppers embrace second-hand shopping

U.S. shoppers embrace second-hand shopping

Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.

The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.

Keep ReadingShow less

Featured

CMA CGM offers awards for top startups

CMA CGM offers awards for top startups

Some of the the most promising startup firms in maritime transport, logistics, and media will soon be named in an international competition launched today by maritime freight carrier CMA CGM.

Entrepreneurs worldwide in those three sectors have until October 15 to apply via CMA CGM’s ZEBOX website. Winners will receive funding, media exposure through CMA Media, tailored support, and collaboration opportunities with the CMA CGM Group on strategic projects.

Keep ReadingShow less
xeneta air-freight.jpeg

Air cargo carriers enjoy 24% rise in average spot rates

The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.

Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.

Keep ReadingShow less
littler Screenshot 2024-09-04 at 2.59.02 PM.png

Congressional gridlock and election outcomes complicate search for labor

Worker shortages remain a persistent challenge for U.S. employers, even as labor force participation for prime-age workers continues to increase, according to an industry report from labor law firm Littler Mendelson P.C.

The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.

Keep ReadingShow less
stax PR_13August2024-NEW.jpg

Toyota picks vendor to control smokestack emissions from its ro-ro ships

Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.

Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.

Keep ReadingShow less