BLOOMBERG: SUPPLY-CHAIN SNAGS ARE STARTING TO EASE, WAREHOUSE OPERATOR SAYS
Logistics CEO on Supply Chain Woes: “We’re through the worst of it.”
Supply Chain Improvements Come After President Biden Urged Cargo Companies to Ramp Up Operations
GXO Logistics Inc., the world’s largest contract logistics provider, is seeing more goods arrive at its facilities –– a signal that the supply-chain snags are beginning to subside.
“We’re through the worst of it. I think we’ve reached the peak,” Chief Executive Officer Malcolm Wilson said in an interview Tuesday, after the recently created company issued its first earnings report. “Hopefully, things will look a bit smoother as we move forward.”
A surge of imported goods that has congested freight movement — with ships waiting at sea to enter ports and a dearth of truck drivers to move containers — has dragged on economic growth. U.S. President Joe Biden responded by urging cargo companies to operate around the clock to get goods to store shelves.
Consumers appeared to have heeded warnings from retailers and begun their holiday shopping early, which should help spread out volume, Wilson said. GXO, which has more than 860 warehouses, is well into hiring 10,000 workers to handle the holiday rush, he said.
The Greenwich, Connecticut-based company, which spun off in August from trucker XPO Logistics Inc., raised its profit outlook and touted new contracts that will add $700 million to sales next year.
GXO shares rose 2% to $92.65 at 1:03 p.m. in New York.