b'OCTOBER 25 - NOVEMBER 7, 2021AUTO LOGISTICS 15(STRESScontinued frommorethenorm,analyststhetical example of a naturalAscarmakersmoveto(HONOREDcontinued page 13) believe. In this case, automak- disaster in Australia. By map- electric vehicles, these supplyfrom page 9)warehouse space, but does soers will make agreements andping their supply chain, auto- chains will be in even greaterandappointments.Bi-State at its own peril.guaranteeswithchipmak- makers will know that someflux. The contours of the newsharesmonthlystatisticson If Im the supplier, Imers on behalf of the second- of their material comes fromsystem have yet to be devel- theirdriverexperiencesat notgoingtoplaceordersaryandtertiarysupplierstoanAustralianmineintheoped. For one, EVs are builttheterminalandwesend tomy[chip]suppliersthatbetter insure adequate stock.impactedregion.Theycanaround batteries, not engines.outquarterlysurveystoour expose me to more risk thanThissystemisntanythingreacttoit,insteadofwait- Plus, theyre far more depen- landside customers to gauge what my automaker customerrevolutionaryintheindus- ing to be informed of it threedent on semiconductors thanperformance and satisfaction isgoingtoguaranteeme,try, but has been only spottymonths later.withinternalcombustionmetrics.Equallyimportant, explained Hearsch. inuseandhardlyeverwithDetailedknowledgeofengines. Most of these are farour professional Labor under-Whats more, the overallsemiconductors. (The excep- theintricaciesofthesupplymore sophisticated than usedstandsthetighttruckdriver quantity that the industry cur- tion to the rule is Tesla.)chainsourcingbuildsonin traditionally manufacturedmarket and provides the vital rently consumes is minusculeYoull see a lot more ofanother long-term trend: Geo- cars. They will become everservice levels to keep the ter-comparedtothevoraciousthat,wheretheautomakersgraphicdiversification.Thismore so as autonomous vehi- minal fluid and safe.appetiteofconsumerelec- take their destiny in their ownissomethingthatcarmakerscles shift into a higher gear.Thetruckerexperience tronics,especiallywiththehands,takemorecontrol,have pursued for at least theTesla,accordingtoKoreancomponentoflogisticsisa adventof5GandtheInter- said Hearsch. last five years. They at firstmedia reports, is teaming upcustomerdifferentiatorthat net of Things (IoT). VehiclesGreatervisibilitydownmoved to lessen dependencewithSamsungElectronicshasanimportantsupply accountforascant7%ofthesupplychainwillbeaon China, as wages rose andtodevelopanentirelynewchaincostandconfidence totalsemiconductors;con- lastingimpactofthiscur- the Chinese economy becamegenerationofchipthatusesfactortoitforlogistics sumer electronics, by contrast,rent crisis, Hearsch, for one,more domestic consumer ori- advancedtechnologyinitsplanners. This time of year, accounts for 50%. believes.Carmakerswillented. So, suppliers began toetching process for use in theeverydayisimportantto Finally, the semiconductorsdemand to know where sup- relocate to Southeast Asia orAI necessary for self-driving. cargo flow with the tremen-thatmotorvehiclesrequirepliesarebeingsourced,near-sourced to Mexico. The supply chain of thedousvolumesarrivingfor areanythingbutleadingwhereisthesteelcomingThis could well accelerateinternal combustion engine auto- theleaduptoChristmas. edge. They are typically madefrom,whereisthewaferas automakers seek to spreadmotivesectorisregional,Customerswanttheircargo inolder-generationfabrica- coming from, plastic, alumi- riskandattempttomitigatesaidCullen.Thegeogra- in place and ready to move tionplantswithequipmentnum, everything. long transit times, made worsephy of the electronics supplyquickly for E-commerce and calibrated to produce wafersHearschusesthehypo- by port congestion. chain is global. retail store sales.that are 200mm (8 inches) in diameter.Thecurrentstate-of-the-art wafers are 300mm in diameter, which translatesLIBERTY GLOBAL LOGISTICS llcinto twice the number of inte-gratedcircuitsthatcanbe etched on a single wafer.Vehicle-relatedsemicon-ductors traditionally emphasizeSIMPLIFYING YOUR OCEAN TRANSPORTATIONdurability.Semiconductors usedinvehiclesmustbe rugged,abletowithstand temperatureextremes,and long-lasting. A car is used on average close to 12 years. A decade-old mobile phone, by contrast, is a museum piece. Allthismeansthatthe vehicleindustrystandsnear the back of the line. So, yes, theres a global chip shortage. But its much more acute for Ford or Toyota than it is for Apple or Samsung. Themulti-billion-dollar semiconductorplants,now under construction in the US and elsewhere, wont neces-sarilyendcarmakerswoes, either.Thesenewplants, such as Taiwan Semiconduc-tor Manufacturing Co.s $12 billionfactory,nowunder constructionin Arizona,are geared to the more sophisti-cated, higher-value chips.C hIpC runCh and thef uture of thea utos upplyC haInIn an attempt to help alle-viate the chip crunch, carmak-ers are, reluctantly, altering the way they order parts. In some cases,theywillnowguaran-tee bulk semiconductor orders beyondwhatisneededfor thenext90days.Someare attempting to negotiate directly with chip producers and at least one, Hyundai Motor, has said it wants to develop its own semi-conductor chipmaking. However,allthistakesCONTACT US AT:Ports of call - Beaumont, Freeport, Jacksonville, Baltimore, time. Moving to a new chipPhone: 516-488-8800 Wilmington, Livorno, Beirut, Aqaba, Jeddah, Jebel Ali, Abu supplierrequiresatleastaWebsite: www.LibertyGL.com Dhabi, Hamad Kuwait, Dammam, Karachiyears lead time, according to McKinsey. For Rate Quotes: [email protected] Transshipment - Mersin, Alexandria, Bahrain, Mumbai,What is termed directedFor Bookings: [email protected] Abu Dhabi, Doha, Soharsupplywillbecomemuch'