Biden administration annouces big plans for logitstics

The Biden administration has announced a huge plan to tackle issues plaguing the U.S. supply chain that covers several cross-government partnerships.

In announcing the plan Monday, White House officials said the strategy of using both domestic tools and international partnerships can help diversify and strengthen the U.S. supply chain. Citing supply chain disruptions from COVID, a White House official said, “We know hyper concentration of supply can be a problem.”

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Auto industry turns to air freight to catch up

Some auto suppliers are turning to air freight as manufacturers aim to catch up on production and suppliers scramble to quickly ship inventory following the United Auto Workers strikes, according to industry experts.

“Given most manufacturers supply parts as they are needed, a sudden interruption will ultimately cause a huge backlog of vehicle delivery,” Pierre Van Der Stichele, VP of the global freight division for Air Partner, told Supply Chain Dive in an email. “The impact on air cargo is significant because air freight is a cyclical industry and only solid advanced planning can guarantee aircraft capacity once manufacturing resumes.”

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Amazon is now the largest U.S. delivery service delivered more packages to U.S. homes in 2022 than United Parcel Service, after eclipsing FedEx in 2020, and making it the biggest private parcel carrier in the country.

The Wall Street Journal reports that Amazon has delivered more than 4.8 billion packages in the U.S. this year, and its internal projections predict that it will deliver around 5.9 billion parcels, up from 5.2 billion last year.

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