California’s mandate for electric trucks gets EPA approval
Good morning! As we enter the second quarter of 2023, the global supply chain industry continues to face challenges from rising costs, unpredictable demand, and ongoing disruptions caused by the pandemic. In today's issue, we will cover the latest news and developments in the industry, including updates on the semiconductor shortage, deep sea mining, and the impact of inflation on supply chain costs. We'll also take a look at the latest trends and innovations in logistics, from autonomous technology to the use of artificial intelligence in supply chain management. So grab a cup of coffee and let's dive in. ☕️
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The Environmental Protection Agency (EPA) has approved California's plan to require that half of all trucks be fully electric by 2035. The California Air Resources Board (CARB) has specifically mandated that 55% of delivery vans, 75% of buses and large trucks, and 40% of all tractor-trailers must be all-electric within the next decade. However, many industry professionals believe that this goal is too ambitious and unattainable without proper charging infrastructure. Logistics managers also fear that this mandate could push many truckers out of business, leading to an even worse driver shortage. The American Trucking Association (ATA) has expressed similar concerns, stating that the plan is unrealistic and could harm the entire industry nationwide.
Check out the featured article by DC Velocity to learn more about the approval of the requirement for electric trucks in California, what this could mean for the industry, and what some industry leaders have to say about it. Is the 10-year timeline for implementation realistic? How will California accomplish this mandate in such a short amount of time?
Featured Article:
EPA approves California plan to require electric trucks | DC Velocity
“Rule says about half the trucks sold in California must be all-electric by 2035, but industry group warns that charging stations aren’t ready for the change.”
Trains & Safety 🚂
Train Derailment Reported in Minnesota by BNSF
On April 1st, a BNSF train carrying ethanol and corn syrup derailed in Raymond, Minnesota, prompting residents to evacuate. This was the second major train derailment in just a couple of weeks - the first being the devastating Norfolk Southern derailment in Ohio. Due to the flammability of ethanol, concerns were high when it caught fire, which led to the evacuation. Minnesota Governor Tim Walz visited the site of the derailment and assured citizens that emergency response teams were working to ensure their safety and health. This incident highlights the urgency for officials to pass safety bills for the railroads.
BNSF Railway, one of the largest freight railroad networks in North America, operates in 28 states across the western two-thirds of the United States. The Fort Worth, Texas-based company is a subsidiary of multinational conglomerate Berkshire Hathaway, led by Warren Buffett. With over 32,500 miles of track, BNSF moves a wide range of goods, including consumer and industrial products, as well as agricultural products.
Fuel & Electric Vehicles 🔋
EV charging network added to Shell gas station offerings
Recently, Shell acquired Volta Charging, an electric car charging network, for a whopping $169 million. With nearly 3,000 plug-ins, this acquisition is part of Shell's latest plan to expand its charging points from 140,000 to 2.5 million by 2030. Shell also intends to operate one of the largest public charging point networks for EVs in the United States. Currently, Shell has around 12,432 gas stations and plans to add 3,400 more fueling stops. Despite competitors like Exxon or Chevron trying to rank higher, they fall short in comparison to the sheer number of stations Shell owns.
Shell gas stations are a global chain of fueling stations owned and operated by Royal Dutch Shell, a multinational oil and gas company. These gas stations are present in numerous countries worldwide, including the United States, Canada, the United Kingdom, and several other countries in Europe, Asia, Africa, and South America. Apart from selling gasoline and diesel fuel, Shell gas stations typically offer other services, such as convenience stores, car washes, and repair services. Shell is also actively investing in developing alternative fuels, such as hydrogen and electric vehicle charging stations, to reduce its carbon footprint and support the transition to a low-carbon energy future.
Let’s Get Global 🌎
🇰🇵 Possible North Korea-Linked Cyberattack Attempts to Steal Information from 1,000+ Networks. A cyberattack, possibly linked to North Korea, has attempted to install malware in over 1,000 networks to steal information and credentials from corporate networks. The number of victims from this attack is not yet accurate, but it is believed to be in the thousands.
🇨🇳 China Advises Japan Not to Participate in US Chip Restrictions. Chipmaking in logistics typically refers to the process of manufacturing semiconductors or computer chips for use in electronic devices. The foreign minister of China has urged Japan not to team up with the United States to suppress the Chinese semiconductor industry, citing the US's prior actions against Japan. The minister believes that Japan should not align themselves with a country that has done the same thing to them.
🌊The UN Plans to Commence Deep-Sea Mining Operations this Summer. Companies interested in mining the ocean floor can now submit applications to the International Seabed Authority starting in July, following approval of the controversial practice despite significant pushback. The deep sea contains a variety of valuable minerals and resources, including copper, zinc, nickel, and rare earth metals. These minerals are essential for modern technology, such as smartphones, electric cars, and renewable energy systems.
iLevel With You 🏡
More topics for the average American household to consider…
😷 COVID-19 forced suppliers to cancel orders. In 2020, the coronavirus swept the world and had a detrimental impact on the economy. Many factories that housed major retail stores were shut down, and billions of dollars' worth of orders were canceled. The financial impact is still hurting brands and retailers today.
🛰️ The failure of Virgin Orbit's recent launch and the reasons behind it. Virgin Orbit is a subsidiary of the Virgin Group that offers launch services for small satellites through a unique air-launch system. Instead of using traditional rocket launches that require a launch pad and vertical takeoff, Virgin Orbit launches its rockets from a modified Boeing 747 aircraft called "Cosmic Girl". However, the company is now on the brink of bankruptcy, having fallen from a valuation of $4 billion to only $100 million in less than 2 years.
🚙 Current State of the Car Market Makes It a Bad Time to Buy a Vehicle. A new study has shown that the average cost of a new car is almost $48,000, which is $12,000 more than what it was 5 years ago. Cars are more expensive than ever due to several factors including supply chain disruptions, global semiconductor shortages, and rising raw material costs.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🤖 Can supply chains really become autonomous? Many have heard that the "future" of the supply chain is autonomous, but is it just a fantasy? A company named Aera Technology seems to be seeking a solution to this age-old question. Aera Technology has secured $170 million in venture capital funding for artificial intelligence solutions to automate certain aspects of the supply chain.
🚛 Small truckers face uncertainty. All trucking companies have had their share of problems with this ever-changing economy, but small trucking companies have been affected a lot more than their larger competition. Semi-trucks now range from $100,000 to $200,000 which is a large sum for the smaller companies in the industry, which is causing struggles to keep up with the pace of the economy.
✊ Automation is causing problems for unions. Many believe that the reason automated terminals are getting so much push back is because of loss of jobs, but a union chief says that it is because of new challenges and safety issues. It is said that lithium batteries used in new equipment is causing fear of a catastrophic event - for example, lithium can burn over 1,000 degrees Celsius. Leaders also say there is practically no training on how to handle a situation created by lithium and how it should be stored.
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.