Supply Chain News Roundup: Tech Is Impacting the Future of Food

Technology is one of the ingredients when it comes to farming and food production. A new study by global strategy and management consulting firm Kearney found that new technologies show promise for helping to meet global food demand.

Food Systems Outlook 2025 found that tech can help reduce costs: New herbicide technologies aid in cost savings by as much as 76 percent, while artificial intelligence (AI) solutions can reduce food waste and restaurant operating costs. In the future, the gene editing technology CRISPR also might be instrumental in reducing costs, the report found.

Other findings:

• A third (32 percent) of U.S. farmers use the internet to buy agricultural products
• Farmers use automation to offset labor shortage issues.
• Pheromone-based pest control use has increased more than 50 percent globally.
• Nine in 10 millennials and Generation Z members prioritize spending on healthy food, even during challenging economic times.

Talent Trends

Does your company have a chief people officer? Given the current economic and talent environment, the priorities of chief people officers are changing, a recent report by the World Economic Forum (WEF) found.

“Chief people officers perceive short-term labor market caution amid long-term opportunities for workforce transformation,” Chief People Officers Outlook 2025 states.

According to the report, which surveyed 130 senior people leaders, workplace talent trends include:

Continuing labor concerns. “Many organizations are delaying hiring or restructuring decisions as they assess an evolving landscape and navigate macroeconomic volatility, geopolitical tensions and rapid technological transformation,” the report states.

In the U.S., 13 percent of respondents said they expected talent availability to be weak over the next six to 12 months, while 40 percent cited moderate and 47 percent strong. The percentages for China were the same; these two regions had the strongest percentages of all regions globally.

Social and psychological shifts, including rising mental health concerns and increasing value polarization. “Technology is perceived as continuing to amplify these trends, changing how people work, communicate and connect with organizations,” the report states. “In response, some people leaders are calling for a renewed emphasis on collective values, re-establishing shared purpose and team cohesion.”

An increasing use of artificial intelligence (AI), including embedding AI in workflows. Considered the top risks: (1) inability of employees to upskill or adapt quickly enough and (2) privacy and ethics issues.

The Ups and Downs of Shipping Rates

Tariffs seem to be impacting ocean freight — and this year’s peak shipping season is shorter.

The Wall Street Journal recently reported that ocean shipping rates have dropped 68 percent from a June high on routes from China to the U.S. West Coast. This signals that “this year’s peak shipping season was earlier and shorter than usual,” Journal reported.

It also indicates that retailers are cautious given tariff uncertainty, consumer spending and other factors.

As of June 5, the average spot rate cost to ship a 40-foot container (FEU) from China to the U.S. West Coast reached US$5,082, while the mid-high spot rate reached $6,100, according to Xeneta. The mid-high rate, which had increased 88 percent from the week before, is generally the rate “paid by shippers who are willing to accept higher cost to get goods moving following the 90-day pause in the higher U.S.-China tariffs, Xeneta states.

The September 4 average FEU spot rate from China to the West Coast was $2,010, while the mid-high rate was $2,414, according to Xeneta.

However, Drewry reported that transpacific spot rates were rising slightly due to general rate increases (GRI) by several carriers. “Despite the upcoming Golden Week holiday in China, it is unlikely that these rates will be sustainable without further cuts to shipping capacity,” Drewry states. “Hence, Drewry expects rates to remain stable in the upcoming weeks.”

(Photo credit: Getty Images/Simon Skafar)