Hawaii Heartbreak 💔
Good morning! Greetings, esteemed readers of The Workday Dash! As we navigate the intricate web of global trade and seamless distribution, it's easy to lose sight of the personal connections that drive our industry. But on August 11th, a special day arrives that reminds us to honor and celebrate the cherished individuals who are not only the backbone of our families but also play crucial roles in the supply chain arena.
Yes, we're talking about National Sons and Daughters Day! In this edition, we'll take a moment to reflect on the importance of family bonds, and how they intersect with the dynamic world of supply chain and logistics. So, let's dive in and discover the heartwarming connections that tie our personal lives with the pulse of this ever-evolving industry. 👩🏽👨🏼
————
Airlines have swiftly responded to the devastating wildfires on Maui, adding flights to evacuate travelers and assist in the ongoing emergency response. American Airlines, Southwest Airlines, and Alaska Airlines have all taken measures to aid customers in leaving the affected area. The fires have resulted in the tragic loss of at least 36 lives and have prompted the evacuation of over 11,000 people. Hawaiian Airlines cautioned against non-reservation travel to Kahului Airport due to crowding concerns, focusing instead on transporting essential personnel and first responders.
Major airlines have waived fare differences and cancellation penalties for affected travelers, while United Airlines has canceled inbound flights to Kahului Airport for the time being. The situation continues to evolve, with Alaska Airlines announcing a "rescue flight" and Hawaiian authorities working tirelessly to manage the crisis and ensure the safety of all individuals involved.
Check out today’s featured article from CNBC to learn more about what is happening in Maui and what you can do to help out all of the locals. When will this fire be under control? Will more airlines continue to send more flights to Maui in order to get people off the island?
Featured Article
Airlines add flights to get travelers off of Maui after deadly wildfires | CNBC
“Southwest Airlines and American Airlines said they were increasing service to and from Maui.”
Retail & Leases
Zara's Billionaire Owner Dives into California Real Estate Market as Landlord for Walmart
Zara's billionaire founder, Amancio Ortega, is further expanding his logistics network in the U.S. with the acquisition of a logistics center in Inland Empire, California, for $109 million. The center, previously owned by LBA Realty LLC, is used by Walmart Inc. This move follows Ortega's $900 million investment in U.S. logistics in 2022 through his investment vehicle, Pontegadea Inversiones SL, marking his entry into the sector.
Last month, Pontegadea acquired its first European warehouse in the Netherlands for €105 million ($115.2 million). Known for his substantial real estate investments globally, Ortega's real estate portfolio is the largest among Europe's wealthy individuals, valued at €15.3 billion as of 2021.
Rail & Healthcare
Norfolk Southern Commits to Enhance Worker Health at East Palestine, Ohio, Derailment Site
Norfolk Southern Co. has reached a settlement with federal regulators and its unionized workforce to address concerns about worker health during track rebuilding and cleanup operations near the site of a hazardous train derailment near East Palestine, Ohio. The derailment, which occurred in February, involved a pile-up of 49 railcars, including 11 tank cars carrying hazardous chemicals that ignited and burned for days. The settlement follows allegations that the company's workers lacked proper training and protective gear, resulting in chemical spills that impacted the environment and affected investigators from the Centers for Disease Control and Prevention. As part of the agreement, Norfolk Southern will implement a medical surveillance program, provide hazardous waste training to employees, create a training program based on lessons learned from the incident, and pay penalties for safety violations identified by the Occupational Safety and Health Administration (OSHA).
The settlement is particularly noteworthy considering Norfolk Southern's extensive operations, encompassing about 19,300 route miles across 22 states and the District of Columbia. The company serves major container ports in the eastern United States and is a significant transporter of various industrial products, including agriculture, consumer goods, chemicals, metals, construction materials, and auto products. The agreement aims to enhance safety and health controls for employees engaged in emergency response activities, ensuring better preparedness for similar incidents in the future.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🔋 Report Reveals Tesla Depends on China for 39% of Battery Supply Chain. A recent analysis conducted by Nikkei Asia and Tokyo’s Fronteo has revealed that nearly 40% of the suppliers for materials used in Tesla's batteries are Chinese companies. Publicly-available information from financial statements and press releases identified China as the largest supplier of materials for Tesla's lithium-ion batteries, making up 39% of the firms listed under the "storage battery" category. However, overall, Chinese firms accounted for only 17% of Tesla's suppliers, while US companies made up 22%. Tesla has been working to reduce its dependence on Chinese parts and materials, including investments in a lithium refinery in Texas.
🇨🇳 China Surpasses Japan as Largest Auto Exporter, Fueled by Electric Vehicle Growth. China has surpassed Japan as the largest auto exporter during the first half of the year, exporting 2.34 million vehicles compared to Japan's 2.02 million, marking the first time this has occurred at the half-year mark. This achievement is attributed to the rapid growth of electric vehicle (EV) exports from China, with Chinese EV manufacturers aggressively expanding into Western markets and emerging markets alike. Companies like Xpeng, Nio, BYD, and Zeekr are making significant strides in international expansion, driven by China's strong position in the EV supply chain and government support for the sector. However, the challenge for Chinese passenger vehicles remains building brand recognition in competitive Western markets.
iLevel With You 🏡
More topics for the average American household to consider…
🇺🇸 Navy League Proposes Jones Act and Marine Highways for Enhanced Marine Highway and Military Sealift. The Navy League of the United States has proposed a significant investment in building dual-use ships that can transport both commercial and military cargo. The proposal aims to create ships that can operate as Jones Act and Marine Highways vessels during peacetime, using the I-5, I-95, and I-10 maritime corridors. This initiative comes in response to the growing need for military sealift capabilities and the shortage of ships and sailors faced by the Military Sealift Command. The proposal suggests that such ships, known as Dual Use Vessels (DUVs), would not only alleviate congestion and pollution along major American Marine Highways but also contribute to military readiness by participating in the Voluntary Intermodal Sealift Agreement (VISA) program. The introduction of DUVs could also lead to upgrades at U.S. ports, potentially boosting business at smaller coastal ports along the Pacific, Gulf, and Atlantic coasts.
🚛 4 Factors Driving Food and Beverage Producers Toward Expanding Drop-Trailer Shipping. Despite significant changes in consumer lifestyles during the pandemic, the trend of increased beverage consumption between Memorial Day and Labor Day has persisted. Notably, there's a remarkable demand for drop-trailer shipping, including temperature-controlled products, unlike in the pandemic years. While shipping volumes for the beverage season have risen by 3%, the demand for drop trailer usage has surged by 32%. Four key factors are driving this trend: a return to pre-pandemic norms in supply chains, expanded product variety, cost savings in labor, and preparation for potential changes in the trucking market. Drop trailer utilization is seen as a way for shippers to enhance supply chain resiliency and carrier relationships, making it an attractive solution for evolving market conditions.
📦 Delivery Providers Pickup Now and Point Pickup Merge to Create a Comprehensive 'One-Stop Shop. Delivery providers Point Pickup Technologies and Pickup Now have merged to create a unified source for nationwide on-demand deliveries. Point Pickup specializes in same-day fulfillment and delivery services with a network of over 500,000 flex workers, while Pickup Now focuses on white glove delivery and assembly for larger items. The merger aims to offer clients a comprehensive service offering with an integrated technology solution, capitalizing on the strengths of both companies in the retail, grocery, and convenience sectors. The move comes as a strategic decision to expand capabilities and tap into new market segments while minimizing customer overlap and maintaining the Pickup Now brand.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
💰 Yellow Triggers Bidding War for Replacement of Apollo-Led Bankruptcy Loan. Yellow Corp. has initiated a bidding war as investment firms and a rival trucking company vie to fund the liquidation of the now-defunct company, aiming to replace an "expensive" bankruptcy loan from Apollo Global Management-led lenders. Hedge fund MFN Partners, Yellow's largest shareholder, and competitor Estes Express Lines have both submitted offers for funding the bankruptcy on better terms, with neither offer being final. The company, which filed for court protection after laying off most of its 33,000 workers, intends to seek court approval for one of the packages. The company's trucking assets are expected to be worth enough to cover over $1 billion in secured debt.
👷🏽 Seaports Set to Deploy More Than 370,000 AGVs by 2030. Seaports are turning to automation to address congestion issues, with Automated Guided Vehicles (AGVs) emerging as a significant solution for efficient container transport. ABI Research predicts a Compound Annual Growth Rate (CAGR) of over 26% for AGV seaport deployments from 2022 to 2030, reaching more than 370,000 global deployments by 2027. This automation enhances reliability, consistency, workplace security, and environmental efficiency, leading to safer and more predictable operations. Beyond seaports, automation is also expanding in rail, air, and road sectors, with rail camera systems, in particular, experiencing growth. However, while automation offers long-term benefits, it requires initial investments and workforce adjustments.
📈 July Sees 3.2% Annual Consumer Price Increase, Marking First Acceleration in 13 Months. The Consumer Price Index (CPI) annual increase accelerated to 3.2% in July, marking the first uptick in over 12 months. The Bureau of Labor Statistics reported that the annual CPI rate rose from June's 3%, primarily due to year-over-year comparisons with July 2022 when monthly inflation turned negative. However, the increase fell short of economist expectations for a 3.3% annual gain. The report revealed a monthly price increase of 0.2%, driven by shelter costs, which contributed 90% of the overall increase. Despite this, underlying inflation continued to cool, with Core CPI, excluding volatile food and energy prices, rising 0.2% from June and up 4.7% from the previous year. The report led to discussions about the strength of the US economy, with President Biden highlighting progress in maintaining a strong economy amid persistently high inflation and impending recession warnings. While an uptick in inflation could raise concerns, economists believe it does not necessarily indicate a return to the high inflation rates of the past year. The report also suggested relief in core inflation estimates for rents and vehicles, while services sectors witnessed varying levels of price increases.
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.