Yellow light, red light 🚦
Good morning! As we kick off National Wellness Month, we recognize the importance of nurturing a healthy workforce and cultivating resilient supply chain practices. In these challenging times, taking care of our physical and mental health becomes paramount to sustaining the smooth flow of goods and services worldwide.
Let's make this month a celebration of health, harmony, and prosperity in every aspect of our interconnected world. 🛁🕯
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Yellow Corp., a prominent less-than-truckload (LTL) company, has officially ceased all operations, marking the end of its nearly 100-year history as one of the largest carriers in the nation. The company posted notices at its terminals, informing employees and customers about the shutdown. Yellow's precarious financial condition over the past month led to widespread concern, and reports suggest that it may be preparing to file for bankruptcy.
Amid a substantial loss of volume and potential Teamsters strikes, shippers have been diverting their freight to other LTL carriers, leading to a catastrophic situation for Yellow. The company's financial struggles worsened due to its massive debt, including $730 million owed to the federal government. With Yellow now out of the picture, competitors like ArcBest are seeing an opportunity to capture new business in the LTL sector.
Check out today’s featured article from TT News to learn what caused the demise of Yellow Corp trucking, and why this is such a big deal. How many more Unions will cause bankruptcy? What will this mean for other LTL Trucking companies?
Yellow Ceases Operations | TT News
“Less-than-truckload company Yellow Corp. on July 30 shut down operations, ending a nearly 100-year history as one of the nation’s largest carriers, and the company began posting notices at terminals.”
Suppliers & Investment
DHL Express Announces $192M Investment in Maintenance Hangar at CVG Superhub
DHL Express is set to invest $192 million in constructing an aircraft maintenance facility at Cincinnati/Northern Kentucky International Airport (CVG), the location of its primary U.S. air hub. The facility will span 305,000 square feet and feature aircraft parts storage, maintenance parking gates, and eight new aircraft gates. It will house two Boeing 777 wide-body freighters side by side and is expected to be completed by the end of 2025. CVG serves as a crucial connecting point for DHL's express network, handling 130 daily flights and processing around 50 million international shipments each year.
Despite the temporary downturn in the air express market, DHL continues to expand and modernize its fleet, and this new investment demonstrates its commitment to meeting growing customer demands. Additionally, DHL's in-house airline, European Air Transport Leipzig GmbH, has transferred two Boeing 757 cargo jets to its partner airline, DHL Aero Expreso, in Panama, further bolstering DHL's network in Central America and the Caribbean.
Safety & Manufacturing
Volvo Recalls 63,095 Trucks Due to Defective Wiper Motors
Volvo Trucks North America is recalling 63,095 trucks in the U.S. and Canada due to a potential issue with the windshield wiper motor. The motor can wear out prematurely, causing the wipers to slow down or stop intermittently before the wiper motor gear fails, potentially limiting visibility in rainy conditions. No accidents or injuries have been reported related to this issue. Volvo decided to conduct the safety recall after warranty claims reached 5.8%, and they received 51 reports of service requests for inoperative wipers.
The recall affects certain 2022-2024 VNR, VNL, VHD, and VAH models, and the affected trucks were built between May 3, 2021, and July 5, 2023. Volvo will replace the wiper motor assembly with units produced with verified components to address the issue. The recall process for affected owners will begin by September 15. It's worth noting that Volvo Group North America was previously fined up to $130 million by the NHTSA in January for slow reporting of safety recalls and other related issues.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🚢 Pertamina Signs Contracts Worth US$49.3M, Expanding to 26 International Routes. Pertamina International Shipping (PIS) achieved a major milestone by signing four business cooperation agreements with global players through its branch office, PIS Middle East (PIS ME), based in Dubai. The deals involve four vessels owned by PIS, namely Gas Walio, Gas Widuri, Gas Arjuna, and Gas Ambalat. These vessels will be chartered by reputable companies, including SHV Gas Supply & Risk Management and Vitol S.A., for different durations ranging from 6 months to 3 years. The total value of the transactions reached US$49.3 million, and they open up new international routes and markets for PIS's fleet. This successful expansion showcases PIS's reliability and competitiveness in the global shipping industry.
🇨🇳 Commerce Secretary Raimondo to Visit China Amid Simmering Tech Control Tensions. US Commerce Secretary Gina Raimondo is planning to visit China in late August as part of the Biden administration's efforts to ease tensions between the two largest economies in the world. The dates of the trip are not finalized yet and may be subject to change. It is unclear what outcomes Raimondo hopes to achieve for US businesses, and she is hesitant to proceed without a clear expectation of positive results for American firms. The visit could be significant given the sensitive state of US-China relations, especially with President Biden set to sign an order restricting critical US technology investments in China by mid-August. Raimondo's trip would follow visits by other high-level administration members, but so far, these visits have yielded limited public results beyond an agreement for further dialogue.
iLevel With You 🏡
More topics for the average American household to consider…
📦 Amazon Accelerates Fast-Delivery Capabilities in the Post-COVID Era. Amazon.com Inc. is doubling down on its fast-delivery capabilities for its Prime service following a temporary slowdown during the pandemic. The company plans to expand its same-day delivery sites to improve speed and efficiency. By regionalizing its US operations network, using advanced machine learning algorithms to predict customer preferences, and growing its same-day delivery network, Amazon has achieved its fastest Prime speeds to date. The company's approach of placing products closer to customers and reducing handoffs has not only improved delivery times but also lowered costs and enhanced the overall customer experience. Amazon's focus on faster delivery does not mean increased pressure on employees; instead, the emphasis is on optimizing logistics and reducing product travel distances.
🚛 MEI, Heavy-Hauling Specialist, Strengthens Presence in Southeast through Pro-Pac Deal. MEI Rigging & Crating has acquired Pro-Pac International and its affiliate J&J Machinery Transport, expanding its operations in the Southeast. Pro-Pac, based in Charlotte, North Carolina, offers specialty rigging, transportation, and export crating services to various industries, including machine manufacturing, aerospace, and medical sectors. J&J provides heavy equipment transport and trucking services, including oversize load and long haul trucking. Both companies also offer heavy equipment storage and installation services. Jim Jones, the long-time co-owner and president of Pro-Pac and J&J, will continue to lead their day-to-day operations under MEI's ownership. The acquisition is seen as a strategic fit for MEI, bringing a broader range of services and regional reputation to the company.
🔋 How EVs Are Disrupting a Century-Old Industry. The future looks challenging for companies that manufacture parts for internal combustion engines as revenues for such components are expected to decline by 44% through 2027. On the other hand, revenues for electric drivetrains and batteries or fuel cells are predicted to rise significantly, up to 245%, according to the 2023 Deloitte Automotive Supplier Study. As the automotive industry shifts towards electric vehicles (EVs), the supply chain is also undergoing a transformation. Traditional internal combustion powertrains consist of around 2,000 parts, while EV powertrains have significantly fewer parts, around 20 or even less.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
👷♂️ Iconic American Hard Hat Job Sees Unprecedented Open Positions. The construction industry in America is facing an acute labor shortage of approximately 650,000 workers, which is slowing down the completion of various projects, from residential homes to infrastructure and hospitals. The shortage is attributed to various factors, including the pandemic's impact, shifts in American cultural values, and workforce demographics. Experts suggest that a solution to the labor shortage lies in a combination of immigration policy changes, greater integration of technology, and efforts to elevate the construction profession's profile as a viable career path. The demand for construction workers is expected to grow significantly, with an estimated need for 546,000 additional workers in 2023 to meet the industry's labor requirements.
👍 J.B. Hunt Commits to Sustainability: Acquiring 13 Zero-Emission Nikola Trucks. Nikola Corporation and J.B. Hunt Transport Services Inc. have reached an agreement for J.B. Hunt Transport Inc., a subsidiary of J.B. Hunt, to purchase 13 zero-emission Class 8 trucks from Nikola. The move is part of J.B. Hunt's sustainability efforts and its commitment to reducing carbon emissions. The order will include 10 battery-electric and three hydrogen fuel cell electric trucks, with delivery expected to start in August 2023. The trucks will be strategically placed at facilities serving J.B. Hunt's key routes, including the greater Los Angeles and Phoenix areas. The hydrogen and fueling infrastructure will be provided by Nikola's hydrogen arm, HYLA. J.B. Hunt is focused on incorporating alternative-powered equipment into its fleet as part of its goal to reduce carbon emission intensity by 32% by 2034. The company aims to drive the industry toward a low-carbon future and minimize its environmental impact.
🤖 Amazon's Cutting-Edge Robotics Fulfillment Center Debuts in Detroit. Amazon has opened its first robotics fulfillment center in Detroit, covering 823,000 square feet and employing over 1,200 workers. The facility will handle small items like books and electronics and will utilize innovative technology to enhance order fulfillment for customers. The company's investments in warehouse robots have been fruitful, leading to increased efficiency in its fulfillment processes. Despite an expected slowdown in capital investments this year, Amazon has numerous future distribution facilities planned in the U.S. as it continues to optimize its fulfillment network and delivery speeds.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 27, 2024, from iLevel Logistics Inc.