Boeing, DB Schenker extend deal
Aircraft manufacturer Boeing has signed a new 10-year contract extension with DB Schenker to manage its 3PL parts distribution centre at London Heathrow.
The contract involves managing the distribution of parts for all Boeing aircraft types and sizes from B717 through to B747 and soon will include the B787.
Under the terms of the contract, Schenker Limited, the UK arm of the global logistics provider, will supply parts to every region of the world – in addition to the UK and Ireland – from its London distribution center.
Boeing and Schenker Limited have been working together on international parts distribution for more than 20 years. The company has operated the London distribution center on Boeing’s behalf since the day it opened.
“We are proud and pleased to have once again proved our credentials to Boeing and that they have recommitted themselves to our specialist operation here in the UK,” Schenker Limited’s managing director Jochen Mueller said.
Boeing’s senior manager SDC operations, Wade Eldredge, added: “These are exciting times to be working together with DB Schenker as the latest Boeing airframes are soon to be introduced and London will once again be at the heart of parts distribution for these new types”.
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Schenker Limited is part of the global DB Schenker network. With 18 locations and over 850 employees, the company provides land operations, international air and ocean freight forwarding and all related integrated logistics services and global supply chain management.
The company has a turnover of some €15 billion, about 90,000 employees and more than 2,000 locations in all of the world’s major economic regions.
Edited by Kevin Scarpati
Elon Musk's Boring Co. planning wider tunnels for freight
Elon Musk’s drilling outfit The Boring Company could be shifting its focus towards subterranean freight and logistics solutions, according to reports.
A Boring Co. pitch deck seen and shared by Bloomberg depicts plans to construct wider tunnels designed to accommodate shipping containers.
Founded by Tesla CEO Musk in 2016, the company initially stated its mission was to offer safer, faster point-to-point transport for people, particularly in cities plagued by traffic congestion. It also planned longer tunnels to ferry passengers between popular destinations across the US.
The Boring Co. completed its first commercial project earlier this year in April. The 1.7m tunnel system is designed to move professionals between convention centres in Las Vegas using Tesla EVs. It says the Las Vegas Convention Centre Loop can cut travel time between venues from 45 minutes to just two.
Boring Co.'s new freight tunnels
The Boring Co.'s new tunnel designs would allow freight to be transported on purpose built platforms, labelled as “battery-powered freight carriers”. The document shows that, though the containers could technically fit within its current 12-foot tunnels, wider tunnels would be more efficient. Designs for a new tunnel, 21 feet in diameter, show that they can comfortably accommodate two containers side-by-side, with a one-foot gap between them.
The Boring Co.’s new drilling machine, dubbed Prufrock, can tunnel at a rate of one mile per week, which is six times faster than its previous machine, and is designed to ‘porpoise’ - mimicking the marine animal by ‘diving’ below ground and reemerging once the tunnel is complete.
Tesla’s supply chain woes
Tesla is facing its own supply chain and logistic issues. The EV manufacturer has raised the price of its vehicles, with CEO Musk confirming the incremental hike was a result of “major supply chain pressure”. Musk replied to a disgruntled Twitter user, confused as to why prices were rising while features were being removed from the cars, saying the “raw materials especially” were a big issue.
Car manufacturing continues to be one of the industries hit hardest by a global shortage in semiconductor chips. While China’s chip manufacturing levels hit an all-time high in May, and the US is proposing a 25% tax credit for chip manufacturers, demand still outstrips supply. Automakers including Volkswagen and Audi have again said they expect reduced vehicle output in the next quarter due to a lack of semiconductors, with more factory downtime likely.
Top Image credit: The Boring Company / @boringcompany