DHL announces changes at its O’Hare airport
The Germany-based courier giants, DHL, has announced it has begun to make substantial changes at its O’Hare airport unit in Chicago, according to Supply Chain 24/7.
The move, which is geared towards expanding its new services and technologies in order to support high-growth sectors such as life sciences healthcare logistics, will enable DHL’s Forwarding Group to make developments such as a new RFID passive and active tracking system in its Chicago facility.
In a bid to augment warehouse automation, DHL has installed new weight and dimensional technology that enables packages to be processed more quickly.
In an interview, David Goldberg, CEO of DHL Global Forwarding, said: “It is centrally located with all major flights in and out of Chicago. A lot of cargo lift both domestic and international. Our shipments can reach most points via ground in two days. There is also an abundance of temperature-controlled trucking and back up facilities and a specialized LSH and temperature-controlled employee training. The building is also a Foreign Trade Zone and bonded Container Freight Station located in the Chicago O’Hare International Airport’s cargo zone.”
The $35mn facility has become DHL Global Forwarding’s largest air export gateway facility with 434,000 sq.ft.
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