I went inside the East Coast’s largest port and saw how a backlog of goods are moved amid the never-ending chaos of ships, trucks, and trains

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

  • The Port of New York and New Jersey has seen cargo volumes skyrocket during the pandemic.
  • An increase in e-commerce purchases during the pandemic has resulted in a backlog of goods.
  • Larger and larger ships are coming to the East Coast’s largest port to help keep goods moving.
  • See more stories on Insider’s business page.
Welcome to America’s front door.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

The Port of New York and New Jersey is the East Coast’s largest port with container terminals on each side of New York Habor that serve 46.3 million people within a four-hour driving radius.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

A combination of ships, trucks, and trains all converge here to transport a myriad of goods. And in recent months, business has been booming.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

A backlog of consumer goods built up during the pandemic contributed to higher than normal shipping levels as locked-down consumers fueled an e-commerce craze.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

Read More: The US is facing a supply-chain crisis as 21 cargo ships float off the coast of LA waiting to dock

It’s up to the port to help get consumers the items they ordered and keep global trade running smoothly.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

I went behind the scenes in the controlled chaos of the Port of New York and New Jersey. Here’s what I saw.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

It all starts with a customer. A consumer business on one side of the world buys a product that’s built on the other.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

One way to transport those products is via ocean shipping. Goods are put into a container that’s then loaded onto an ocean-faring ship and sent across the globe.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

Cargo volumes in 2020 actually started off worse than 2019 by a small variance but then rapidly worsened in the early months of the pandemic. In August, however, volumes jumped and the port quickly outpaced its 2019 volume from August through December.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

A total of five months in 2020 saw what is normally eight months’ worth of volume.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

A ship’s capacity is measured in 20-foot-equivalent units, or TEUs. One 20-foot container equals one TEU while a larger 40-foot container would be two TEUs.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

The Port of New York and New Jersey handled 7.5 million TEUs in 2020.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

Containerized shipping was actually created at the Port of New York and New Jersey in 1956. Before that, goods were offloaded onto trucks and driven long distances across the US.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

Now, one ship can visit multiple ports, picking up and dropping off containers as it goes.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

Consolidation in the ocean shipping industry has resulted in fewer companies. Common names at this port are Maersk, CMA CGM, and Ocean Network Express.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

Read More: 22 companies cashing in on the brutal log-jam at America’s busiest ports

Sharing agreements allow shipping companies to use space on each other’s boats. An Evergreen container on a CMA CGM ship isn’t uncommon, for example.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

Containers are cheap enough to buy at a cost of around $3,500 apiece. Tens of millions of these containers could be found across the world from the decks of container ships to the backs of trucks and to ports like this one.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

They’re almost constantly in motion and identified by tracking numbers. Containers will often travel empty on container ships and companies will determine whether it’s worth it to ship the containers empty or just buy another one.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

Just like an airport, this port has its own privately-owned terminals where containers are loaded and unloaded from ships. The north side of the Elizabeth Channel, for example, is home to Port Newark Container Terminal while the south side is home to Maher Terminals.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

Massive cranes greet the ships and immediately begin offloading and loading containers in a real-world game of Tetris.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

Handling the containers are port workers known as longshoremen. The union positions are highly sought after thanks to good pay and benefits.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

The typical progression for a longshoreman is starting as a baggage handler for cruise lines and then becoming an automobile driver for the car ships. From there, each longshoreman can choose their own specialty and hone their craft.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

The Port of New York and New Jersey doesn’t just handle containers, however, and other major imports and exports include automobiles…

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

Cement…

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

And edible oils. .

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

Even scrap metal is a valuable commodity.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

Cruise ship terminals are also under the port’s purview but traffic in that sector has been almost entirely quiet for most of 2020 due to the pandemic.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

Trucks are weighed when they enter the port and credentials, known as transportation worker identification credentials, are checked. They’ll then meet with a longshoreman to arrange a spot to pick up their load.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

The terminal’s computer system then relays a message to another longshoreman, who then retrieves the container. Each truck is different and one can drop off one load and immediately pick up another one.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

But not all pull the double duty. Some trucks are just picking up while others are just dropping off.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

The process looks like a lot of waiting around but trucks should be in and out of the port in under two hours.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

Around 80% of truck drivers are owner-operators, giving them more freedom than a fleet driver for an established company.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

The trucks and rail lines that serve the port can bring goods as far as Tennessee, the Midwest, and Canada. Chicago, for example, is just a two-day rail trip from here.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

Around 18% of cargo moves out of the port by rail. Some trains leave the port after being given a mile’s worth of the 20 and 40-foot containers.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

Larger and larger ships have been arriving at this port since the pandemic began.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

One such ship is the CMA CGM Marco Polo, a container vessel with a maximum capacity of 16,022 TEUs. It’s the largest ship to visit the East Coast that can now access the Port of New York and New Jersey because of recent port improvements.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

Read More: The largest container ship to ever visit the East Coast just arrived at the Port of New York and New Jersey: Meet the Marco Polo

Standing in the way between the port and larger ships, historically, has been the Bayonne Bridge, which connects Bayonne, New Jersey and Staten Island, New York. While ships have grown in size, the bridge has remained the same for nearly 90 years.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

That was until the Port Authority of New York and New Jersey spent $1.7 billion to raise the bridge’s roadway to allow larger ships to pass underneath. The new clearance of the bridge is now 215 feet and ships as large as 18,000 TEUs can pass underneath.

CMA CGM Marco Polo arrival
The CMA CGM Marco Polo arriving at the Port of New York and New Jersey.

Source: Port Authority of New York and New Jersey

The port has been seeing a steady stream of larger and larger ships ever since. The CMA CGM Brazil broke the port’s record in September, only to have the CMA CGM Marco Polo break it again in May.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

The CMA CGM Marco Polo is considered a “New Panamax” ship since it’s greater than 12,500 TEUs. Standard “Panamax” ships were once the largest ships that the Panama Canal could accommodate until larger locks were added in the 2010s.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

Containers are stacked up on top of each other 200 feet high, with even more below deck.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

During offloading, a constant flow of these intermediary trucks approach the ship to receive containers.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

Containers are plucked from the ship by a crane that’s operated by a longshoreman sitting 200 feet off of the ground.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

The longshoreman has an overhead view to make collecting the containers easier.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

The massive containers are quickly whisked through the air by the crane as if weightless.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

The longshoreman then lowers the crane, aligning the container with the truck below.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

Once it’s dropped onto the truck, the container is secured and the truck drives off. It’s less than 30 seconds from the time the container is secured until the time the truck is on its way.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

The process continues until all of the containers are offloaded.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

The ship then receives a new load of containers to transport to the other side of the world. Foreign-flagged ships can’t move goods between two US ports under the Jones Act.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

Exports from the US include cotton, forest products, agricultural supplies, and foodstuffs, to name a few.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

Around 4,700 containers are being dropped and loaded, just under one-third of the CMA CGM Marco Polo’s total capacity.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

From the bridge of the Marco Polo, it’s containers for as far as the eye can see. The Port of New York and New Jersey never shut down operations during the pandemic.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

Larger ships coming to the port also requires larger cranes.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

The APM Terminals-operated cranes services the Marco Polo are a staggering 209 feet tall.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

A maximum of seven cranes was assigned to the Marco Polo at its peak to help expedite the unloading process.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

Not every container is searched by US Customs and Border Protection when they enter the country. The agency instead uses complex algorithms to detect anomalies that prompt searches.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

Inspectors, for example, can look at the weight of a container and see if it matches up with the cargo listed on a manifest. If it doesn’t, that prompts a search.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

Human smuggling isn’t a major issue on the East Coast compared to the West Coast, which has closer proximity to Asia, but ships do have to be on the lookout for stowaways.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

Now that the Port of New York and New Jersey has proven it can handle larger ships, it’s only a matter of time before the record set by the Marco Polo will be shattered.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

And New York Harbor will continue to receive some of the largest ships in the world.

Port of New York and New Jersey visit
Touring the Port of New York and New Jersey.

Read the original article on Business Insider

Can’t find chicken wings, diapers, or a new car? Here’s a list of all the shortages hitting the reopening economy.

GettyImages 1212992700
Empty shelves and shoppers at a Target store in Dublin, California, on March 15, 2020.

  • As the US economy increasingly reopens, it is seeing shortages of all sorts of items.
  • If you’ve tried to buy (or rent) a car or eat some chicken wings, you’ve probably noticed.
  • Insider rounded up some of the major supply shortages and why they’re lagging.
  • See more stories on Insider’s business page.
Computer chips

computer chip biden
President Joe Biden holds a semiconductor chip at the White House in Washington, U.S., February 24, 2021.

An ongoing computer-chip shortage has affected cars, iPads, and dog-washing technology alike. Chipmakers like Intel had already seen production issues pre-pandemic, but as with many industries, COVID-19 brought a variety of new supply-chain issues. The chip shortage is a problem for consumers wanting basically anything with a computerized component, which is much of the economy. Take cars as an example.

The semiconductor shortage has hit automakers the hardest. In January, the consulting firm Alix Partners estimated the automotive industry would lose $61 billion in revenue from the shortage this year. As Insider’s Katie Canales reported, demand for chips has gone up as consumers scrambled to buy cars and other technologies that use them.

But as more cars went into production, chip competition went up. Since then, many carmakers have been forced to shut down plants and prioritize which models they produce, while car prices at dealerships have continued to go up.

Last week, Tesla CEO Elon Musk said the semiconductor shortage has caused “insane difficulties” for the electric carmaker. Even Apple — a company that many thought would be able to dodge the shortage after it started making its own high-powered computer chips last year — said it will delay production on its iMac and iPad.

 

Used cars and rental cars

car buying

Buyers are still looking for vehicles, creating a competitive used-car market. As USA Today reported, used-car prices are on the rise as the aforementioned chip shortages affect new-car production, and buyers have turned to older ones instead, while Axios reported the average price of a used car has hit $17,609.

A UBS note estimated that in April, used cars saw their largest monthly price increase in 68 years of tracking, with prices rising between 8.2% and 9.3%.

If you’re looking to rent, you might also be out of luck: Insider’s Brittany Chang reported on the “perfect storm” hitting rental cars right now, with prices surging and demand increasing. Americans are itching to go on vacation this summer, as more people are vaccinated and some restrictions loosen. That’s leading to far more demand — but rental-car companies had sold off parts of their fleets early into the pandemic, leaving fewer cars to go around. 

It’s not all bad news for used-car lovers, though: As USA Today reports, the trade-in market is hot, too, meaning your old car could be worth more right now.

Gas

gas station
A man fills up a car at a filling station.

Industry experts say drivers will face fuel shortages this summer.

Demand for fuel and interest in travel has risen as vaccination rates have increased. Lower gasoline-production rates have also made the commodity more valuable, as OPEC has been slow to curb production cuts. 

Gas prices have skyrocketed in recent months, jumping 22.5% in March from the previous year, according to the US Bureau of Labor Statistics’ Consumer Price Index. Much of the surge in gas prices started with the extreme Texas freeze, which halted a fifth of the country’s oil-refining capacity in its tracks for weeks at a time.

 

Plastics and palm oil

plastics manufacturing

The devastating winter storms in Texas also left their mark on the plastics industry. As Insider’s Natasha Dailey reported, the state is a key plastics exporter — and the storms made many plants, which are difficult to reactivate, press pause.

According to the Financial Times, rising plastic prices have led to an increase in packaging costs. Citing data from Mintec, the Financial Times reported that those costs have increased by nearly 40% from the start of 2020, marking “historic highs.”

Palm oil, which is in a majority of those packaged products, also saw its prices climb, according to the Financial Times. That’s due to yet another labor shortage; the industry had already been contending with finding more sustainable production methods.

Trucking

truck driver
A contract port truck driver, Giraldo has seen work dry up as imports slow during the coronavirus outbreak. He gets fewer than four hauls a week, compared with at least 12 in normal times.

The Wall Street Journal reported that increased shipping demand has combined with a lack of drivers and trucks to result in climbing shipping costs. 

In September, Insider’s Rachel Premack reported that pay for truck drivers was on the rise, coming in at “record-smashing levels.” But the pay hike — and increased demand — comes after an exodus of drivers in 2019; Premack reported at the time on what some called a “trucking bloodbath,” as trucking companies saw profits fall, with some even going bankrupt.

Now demand is surging, according to The Journal, and if everything continues as is, that gap could deepen.

Homes and vacation houses

House for sale US
A house’s real estate for sale sign shows the home as being “Under Contract” in Washington, DC, November 19, 2020.

The US was facing a shortage of 3.8 million homes as of April, according to Freddie Mac. Home builders have been struggling to keep up with demand as remote work fuels interest in spacious housing, with house prices rising at their fastest pace in 15 years, The Wall Street Journal reported. Lumber prices are also driving the cost of new homes even higher.

In the past year alone, the median cost of a home in the US shot up 15% from $300,000 in 2019 to $340,000 by the end of 2020, according to data from the National Association of Realtors. That measure does not even begin to account for hot housing markets like Austin, Texas, where the average home went for more than $800,000 in April.

Even vacation-home rentals are at an all-time high. A house in the Hamptons rented for $2 million this summer, and 85% of vacation rentals in popular destinations like Cape Cod, the Outer Banks, and the Jersey Shore are booked through August, according to the rental site VRBO.

Lumber

Lumber

If you’re wondering why the houses around you are getting more expensive, look to their component parts. No, seriously: Lumber prices have soared, and, as Insider’s Ayelet Sheffey and Libertina Brandt reported, builders are even increasing house prices in an attempt to offset demand.

It’s due to another pandemic disruption, as lumber mills were forced to temporarily close for safety concerns. When they reopened, they couldn’t keep up with a scorching-hot housing market, goosed by a work-from-home economy, record low mortgage rates, and the need for personal space during the pandemic.

According to an April analysis from the National Association of Home Builders, soaring lumber prices added $36,000 to the cost of a new home. Lumber prices “remain stubbornly high,” according to the report, due to mills shutting down, unexpected demand from big-box retail and DIY-ers, and tariffs imposed on Canadian lumber.

Household products like toilet paper and tampons

Stockpiling toilet paper

Many household goods including toilet paper, diapers, and tampons are also facing supply problems.

One of the biggest producers of the pulp used to create toilet paper told Bloomberg that port delays and high shipping costs are causing companies to push delivery dates back months. 

Shortages and shipping delays are causing many companies to hike prices. Last month, Proctor & Gamble said it would raise prices for baby-care and feminine-care products, as well as adult diapers to combat shortages and shipping costs. The same week, Kimberly Clark hiked the price of its Huggies diapers and Scott toilet paper. 

Furniture

GettyImages 151031026
La-Z-Boy store

The work-from-home lifestyle helped the furniture industry boom but to such an extent that customers are seeing delivery dates that are months out.

In February, La-Z-Boy executives said customers could expect delivery dates that are five to nine months out from their order dates. Other furniture companies like Kasala, a Seattle-based chain, said they don’t expect to get furniture parts until at least December.

Many US furniture stores use parts from China. The global shipping-container shortage, as well as delays at key ports in Southern California have not only made the goods more expensive, but have also pushed back delivery dates by several months.

The furniture shortage has been exacerbated by a spike in homeownership, as the number of available and unsold homes sits at record lows. In other words, a lot of new homeowners are waiting a long time for their new living-room sets.

Chicken

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If you’ve been having trouble finding chicken wings, you’re not alone: They’re hard to come by as supply tightens. Insider’s Avery Hartmans reported that chicken-wing supply is dwindling while prices rise. It’s due in part to increased demand and shortages caused by devastating winter storms in Texas.

The Washington Post reported that shortages go beyond just wings, with all chicken harder to get ahold of. One phenomenon The Post notes: Fried chicken sandwiches, which have gained viral popularity in the past few years. McDonald’s has even launched its own. Insider’s Mary Meisenzahl reported that the KFC Nashville hot chicken has been so popular on TikTok that the chain is running out of the hot sauce for it.

Bacon and hot dogs

GettyImages 494330628

Bacon and hot dogs will likely be in short supply this summer.

The pig shortage dates back to the onset of COVID-19 and outbreaks in at least 167 meat-processing plants forcing almost 40 plants to close as of June 2020. As vaccination rates pick up and people prepare for summer vacations and cookouts, analysts told Insider’s Natasha Dailey demand will outstrip supply.

With pork companies still struggling to overcome lower production rates in 2020, the matter only intensified when high instances of disease hit the hog population this past winter.

 

Imported foods like cheese, coffee, and olive oil

coffee pot

Imported goods including coffee, cheese, seafood, and olive oil are facing months of shipping delays.

Dozens of mega-containers ships are waiting to dock off the coast of Los Angeles. The site accounts for about one-third of US imports, and the backlog is causing ships to wait weeks to dock and unload.

Some companies are already seeing the impact on their shelves. In March, Costco said its supplies of cheese, seafood, and olive oil were running low. 

General Mills said it has been forced to raise prices due to the delays increased shipping costs.  Coca-Cola also raised prices to combat the supply-chain crunch. Neither company specified which products would be affected.

Coffee has also been hit by delays, Bloomberg reported in March. Peet’s and JM Smucker, the brands behind Folgers and Dunkin’ coffee, have said they’re facing rising costs. Reuters reported that in February, port delays pushed coffee prices to their highest point in more than a year.

 

 

 

Chlorine

pool cleaning
Chlorine can kill germs, but alcohol is more effective.

This summer pool owners will see the worst chlorine shortage in US history, according to CNBC.

Supplies of the chemical have been strained since a fire at the chlorine manufacturer BioLab in Louisiana in September. The price for chlorine used in pools has nearly doubled this past year and is expected to rise even more to meet demand this summer.

Insider’s Annabelle Williams reported that pool owners could help avoid the shortage by resorting to saltwater pools.

Corn

corn maze

Corn is a key crop for many products, including fuel and different foods. As supply concerns loom, corn prices are popping off, according to Axios

There’s a few reasons that demand is so high: After an outbreak of swine fever in China, pig herds were “decimated,” according to Axios, leading to huge corn demand in China. That spike in demand is coupled with corn crops in Brazil and Argentina experiencing both bad weather and pandemic-related labor shortages.

Now corn prices are on a record-setting clip, rising by 16% in April alone. 

And, as Fortune reported, there could be a domestic supply issue too. Droughts and a rough winter are both concerning — and if American crops can’t fill in the gaps, prices could rise even more.

 

Labor

now hiring

Finally, a commodity unlike all the others is in surprisingly short supply: workers.

Major labor shortages are hitting businesses across America. As Insider’s Kate Taylor reported, chains like Dunkin’ and Starbucks are struggling to find workers — leading to reduced hours and hesitance on opening indoor dining back up.

There’s a few possible reasons that unemployed workers are opting not to return, according to Insider’s Ayelet Sheffey. They include workers making more on unemployment benefits than in their prior work as well as continued concerns over COVID-19 and the need to provide childcare at home.

As Insider previously reported, female tipped workers experienced lower tips and increased harassment during the pandemic.  

One potential solution for ending this shortage, according to Taylor? Paying workers more.

Read the original article on Business Insider

Tesla names new head of trucking division as the company nears its first Semi deliveries

Tesla Semi
Tesla plans to start delivering the Semi in limited numbers this year.

  • Jerome Guillen, formerly Tesla’s president of automotive, will head up its trucking division.
  • The change was announced in a regulatory filing dated March 11.
  • Tesla unveiled its class 8 truck, the Semi, back in 2017 and says deliveries will begin this year.
  • See more stories on Insider’s business page.

Elon Musk’s new title of “Technoking” isn’t the only leadership change happening at Tesla. As of Thursday, the company has a new head of its trucking division.

In a regulatory filing dated March 11, the electric automaker said it had appointed Jerome Guillen, who had served as Tesla’s president of automotive since 2018, to lead the division.

Guillen has worked at Tesla in various leadership roles since 2010, according to his LinkedIn profile. Starting in January 2016, he assumed the role of vice president of trucking and programs, leading the Tesla Semi project.

The move comes as Tesla prepares to deliver its first Semi trucks later this year.

Read more: It’s time to retire comparisons between Apple and Tesla, once and for all

“As Tesla prepares to enter the critical heavy trucks market for the first time, Mr. Guillen will now leverage his extensive background in this industry to focus on and lead all aspects of the Tesla Semi program,” the company said in the filing.

Tesla unveiled the Semi, a battery-powered class 8 truck, in 2017 to much fanfare. But its production has been postponed several times since. Tesla initially eyed 2019 for the first deliveries and later pushed production to 2020 and finally to 2021.

During a conference call in January, Musk said Tesla could theoretically start producing Semi trucks at any time, but that it doesn’t have enough batteries to put in them. Still, Tesla plans to start building Semis in limited numbers this year.

It has racked up thousands of preorders for the $150,000-$200,000 truck from shipping giants like Walmart.

Tesla also said Guillen will lead the deployment of the “related charging and servicing networks” for the Semi.

Read the original article on Business Insider

Pfizer’s COVID-19 vaccine has begun rolling out of its Michigan plant in a truck convoy

Pfizer Truck in Michigan.JPG
A truck backs into the loading dock of the Pfizer Global Supply manufacturing plant in Portage, Michigan, on December 11, 2020.

  • A convoy of trucks loaded with Pfizer’s COVID-19 vaccine are leaving the drugmaker’s Michigan manufacturing center on Sunday, carrying doses of the newly approved drug. 
  • Tractor trailers carrying the vaccine will make their way to a UPS hub in Louisville, Kentucky, where they’ll be loaded on planes to be shipped around the country.
  • “We have spent months strategizing with Operation Warp Speed officials and our healthcare customers on efficient vaccine logistics, and the time has arrived to put the plan into action,” said Wes Wheeler, president of UPS Healthcare, in a statement.
  • Visit Business Insider’s homepage for more stories.

A convoy of trucks loaded with Pfizer’s COVID-19 vaccine are leaving the drugmaker’s Michigan, manufacturing center on Sunday, carrying doses of the newly approved vaccine to hospitals and clinics around the US. 

“This is the moment of truth we’ve been waiting for at UPS. We have spent months strategizing with Operation Warp Speed officials and our healthcare customers on efficient vaccine logistics, and the time has arrived to put the plan into action,” said Wes Wheeler, president of UPS Healthcare, in a statement.

Pfizer’s vaccine, developed with Germany’s BioNTech, gained emergency approval from the US Food and Drug Administration on Friday. The company’s expecting to supply 50 billion doses around the world by the end of the year, it said in a statement. It’ll deliver a total of 1.3 billion by the end of 2021.

The drugmaker on Friday detailed its US rollout of its vaccine, saying it was producing the drug at three US sites – Kalamazoo, Michigan; Saint Louis, Missouri; and Andover, Massachusetts. 

UPS said most of the vaccines shipped Sunday would leave Pfizer’s Michigan facility in tractor trailers, with many shipments headed to a UPS hub in Louisville, Kentucky. From there, they’ll be loaded onto planes and shipped overnight to hospitals and clinics around the country. Most states will receive the vaccine on Monday morning

The shipments leaving in trucks on Sunday represent a “historic feat” for both vaccine development and expedited shipping, said Mike McDermott, president of Pfizer Global Supply.

He said: “We know that agile, world-class logistics is critical to get our products where they are needed, and we’re happy to partner with UPS in this historic effort to save lives and create healthier communities right now and well into the future.”

Shipping the vaccine comes with its own challenges, as the drug needs to be kept in extreme cold, about minus 70 degrees Fahrenheit. So the trucks must be refrigerated.

“Each shipper contains a GPS-enabled thermal sensor to track the location and temperature of each vaccine shipment 24 hours a day, seven days a week,” the company said. 

After reaching their destinations, the drug will be thawed, says Pfizer. It’ll be safe to use for up to five days when stored between about 35 degrees and 42 degrees Fahrenheit.  

Rep. Fred Upton, who represents Pfizer’s Michigan district, praised the company’s rollout. 

“Tomorrow, on the four-year anniversary of 21st Century Cures becoming law, the first COVID-19 vaccine will be shipped nationwide from Pfizer’s global manufacturing facility in Portage.  Coupled with an expected Moderna EUA by the end of the week, as many as 100 million Americans will be vaccinated by the end of March. That is real hope,” he said in a statement

Michigan’s governor, Gretchen Whitmer, urged people not to let their guard down just because the vaccine has started shipping.

“It will take time to widely distribute the vaccine, and we must all continue to do our part by wearing a mask, practicing social distancing, and washing our hands frequently,” she said in a statement. 

In New York, Gov. Andrew Cuomo expected an initial delivery of 170,000 doses, while California’s Gov. Gavin Newsom said he expected 327,600 doses. Both were among the highest dose count for the first round of distributions, according to a Business Insider tally of state-by-state distributions

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