Departures Paused by Southwest Airlines
Good morning! Happy National High Five Day! Today, we celebrate the simple yet powerful act of high-fiving, which can bring a smile to someone's face and foster a sense of camaraderie. So, let's kick off this Thursday with a virtual high-five and a roundup of the latest news and insights in the world of the supply chain! ☕️🙌
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Southwest Airlines is once again under pressure after they suddenly stopped all flights on April 18th due to a “technological problem”, causing over 44% of their flights (2100 in total) to be delayed. These delays grounded over half of their US flights, causing their shares to fall almost 1% on the same day. This comes just a few months after the holiday stress in December, which resulted in the company losing $800 million in its fourth quarter and canceling thousands of flights. The first quarter results for this year will be released on April 27th.
Check out today’s featured article by CNBC News to read more about why the Southwest flights were delayed on Tuesday and what can be done to prevent it in the future. Will Southwest shares drop even further in the coming months? Can Southwest recover from these setbacks?
Featured Article:
More than half of Southwest Airlines flights delayed after technology problem paused departures | CNBC
“Southwest Airlines briefly paused its departures on Tuesday after reporting technical problems.”
Fuel & Network Association ⛽️
Natural Gas Engine Collaboration: Chevron, Walmart, and Cummins Join Forces
While operating in different industries, Walmart, Chevron, and Cummins are all large, multinational corporations with significant global reach and impact. Walmart is the world's largest retailer, operating a chain of discount department stores, grocery stores, and hypermarkets. Chevron Corporation is a multinational energy corporation that specializes in the exploration, production, and refining of oil and gas. Cummins Inc. is a global power technology company that designs, manufactures, and distributes engines, power systems, and related technologies.
Now, the three companies have teamed up to create an entirely natural gas engine car - the first of five 15-liter compressed natural gas-powered engines. The engine was supplied by Cummins, and Chevron fueled it. The car will be incorporated into Walmart’s fleet, which will travel from Indiana to California. This move will give the push Walmart needs to achieve its zero-emissions goal by 2040. This alliance has the potential to change the future of diesel-powered trucking and transform the industry as a whole.
American Politics & Regulations 🇺🇸
White House Receives New Drug Regulations Proposal
New guidelines for federal workplace drug testing have been proposed, which may soon include hair testing. These changes have been sent to the White House for review. The current regulations for drug testing in federal workplaces are established by the Department of Health and Human Services (HHS) and the Department of Transportation (DOT). It's important to note that these regulations only apply to federal workplaces and transportation workers subject to DOT regulations. Drug testing policies and regulations for private sector employers may vary depending on state and local laws and industry-specific regulations.
The biggest change proposed is the inclusion of hair testing, which some argue may be biased based on hair color and texture. Additionally, the DOT has specific drug testing regulations for transportation workers in safety-sensitive positions such as truck drivers, pilots, and railroad engineers. These regulations require employers to test their employees for drugs and alcohol as a condition of employment and on a random basis. The regulations also establish procedures for collecting and testing urine specimens and require employers to maintain strict confidentiality of drug test results.
Let’s Get Global 🌎
🇧🇩 Bangladeshi Workers to Receive Wage Increase. The minimum wage for garment workers in Bangladesh has increased from $75 to $226. However, some worker unions are urging manufacturers to raise the annual wage by 10% instead of the current 5% to combat inflation rates.
🇨🇳 Chinese EV Company Claims Autonomous Car Technology is Impossible. This statement was made by BYD, a well-known Chinese electric car and battery company. They claimed that achieving autonomous driving is impossible and suggested that the new technology should be used in factories instead.
🚢 Collaboration between California and Japan Ports. In March, Japan and California signed an agreement to develop a green shipping zone in their ports. The focus will be on achieving zero emissions in California's ports, with the goal of boosting the global economy and creating well-paying green jobs.
iLevel With You 🏡
More topics for the average American household to consider…
♻️ Implementation of New Emission Standards. The Environmental Protection Agency (EPA) has announced new greenhouse gas rules for medium and light-duty vehicles. These rules will increase the stringency of emissions standards for cars made between 2027 and 2032, with the goal of having almost 67% of light-duty cars on the market be electric vehicles (EVs) by 2032.
👗 Rent the Runway Introduces Delivery Savings. Rent the Runway is a fashion and clothing rental service that allows customers to rent designer dresses, clothing, and accessories for a fraction of the retail price. The company has introduced "live swaps," where home deliveries occur simultaneously with returns, resulting in significant cost savings.
💸 Impact of Low Rates on Freight Capacity. The reduced demand for freight continues to affect the industry, leading to issues with rebalancing. A recent study has shown that spot rates in Q2 are 17% below truckload fleet operating costs, which is even worse than in Q1.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🤖 Solvoyo's Perspective on Autonomous Planning. Solvoyo is a cloud-based supply chain planning and optimization software company that offers a platform utilizing advanced analytics and machine learning algorithms to help businesses optimize their supply chain operations, including demand planning, inventory management, transportation planning, and more. The company has shared its perspective on the future of AI and autonomous planning.
⚠️ JB Hunt Adopts Caution Amid Uncertain Market Conditions. J.B. Hunt is one of the largest transportation and logistics companies in North America, with operations in the United States, Canada, and Mexico. As of 2021, the company had approximately 30,000 employees and generated over $10 billion in revenue. However, the company is wary of uncertain economic conditions and has become more cautious than before the pandemic.
🔋 Comparison between Electric Batteries and Hydrogen Fuel Cells. Hydrogen fuel cells and electric batteries are both technologies used to power electric vehicles, but they operate on different principles and have some key differences. One of the main distinctions is the range and refueling time of the vehicles. Hydrogen fuel cell vehicles typically have a longer range than battery-powered vehicles and can be refueled in a matter of minutes, similar to gasoline vehicles. In contrast, battery-powered vehicles have a shorter range and longer charging times, although rapid charging technologies are improving and reducing charging times.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 28, 2024, from iLevel Logistics Inc.