Volt Recall 🗣️
Good morning! As we dive headfirst into another riveting week of all things supply chain, we're armed with more stories than a warehouse has shelves. Grab your morning coffee and let's embark on a journey through the twists and turns of today's ever-surprising world of logistics. 🙌
————
Nikola, a prominent truck manufacturer in the electric vehicle sector, is set to recall around 209 Class 8 battery-electric vehicles (BEVs) and suspend BEV sales temporarily, following two incidents involving battery pack fires. This development comes shortly after another truck manufacturer also reported potential battery fire concerns. Volvo Group North America is simultaneously recalling 172 Volvo VNR Electric and nine Mack LR Electric battery-powered electric trucks spanning the model years from 2019 to 2023.
In a recent investigation conducted with safety consultant Exponent, Nikola discovered that the root cause of the issue leading to the fires was a coolant leak within a single battery pack, with a likely source in a component from a supplier. Although a truck fire at Nikola's Phoenix headquarters was quickly extinguished, a subsequent fire in Coolidge, Arizona, impacted one battery pack on an engineering validation truck. The company emphasized the minor nature of the incidents and confirmed that no injuries were sustained. As part of their response to the situation, Nikola is preparing the necessary recall paperwork for submission to the National Highway Traffic Safety Administration (NHTSA) and maintaining transparency throughout the process.
Check out today’s featured article from Freight Waves to learn more about why Nikola is recalling some of its trucks. Will there be more fires now that EVs are gaining more popularity? How many recalls will there be in the next 10 years?
Featured Article
Nikola will recall 209 battery-electric trucks following 2 fires | Freight waves
“Investigation traced June fire to a coolant leak in a single battery pack.”
Truck Drivers & Safety
Werner Driver Achieves 5 Million Miles without an Accident
Werner, a prominent transportation company, celebrated the outstanding achievement of driver Tim Dean, who recently completed an extraordinary 5 million miles of accident-free driving. This accomplishment places Dean in an elite group, as he becomes only the second driver in Werner's history to attain this remarkable milestone, following Charley Endorf. Werner organized a special ceremony at its headquarters in Omaha, Nebraska to commemorate this feat.
The significance of Dean's achievement is highlighted by the fact that the average professional truck driver accumulates around 2 million miles during their career, as reported by the American Trucking Association (ATA). Dean's accomplishment is equivalent to circling the globe over 200 times. Derek Leathers, Werner's Chairman, President, and CEO, acknowledged the exceptional dedication and commitment displayed by Dean throughout his 35-year tenure with the company, emphasizing the importance of delivering goods safely and punctually. Dean's contributions extend beyond his impeccable driving record; he has also held various leadership roles and earned accolades, including being an ATA America's Road Team Captain and a Werner Road Team Captain and mentor. Furthermore, he has participated in the Nebraska Truck Driving Championships for over two decades, securing top positions and accolades such as the Commercial Vehicle Safety Alliance IDEA Award and the Nebraska Trucking Association's Driver of the Year title. As of August 2023, Werner boasts an impressive roster of 2,175 professional drivers who have each accomplished one or more million accident-free miles.
Amazon & AI
Amazon Introduces Generative AI for Summarizing Product Reviews
Amazon is introducing a novel generative AI feature aimed at summarizing product reviews and streamlining the process for customers seeking insights about products. This functionality, initially tested earlier this year, identifies recurring themes within reviews and presents them in concise summaries on product detail pages. The AI-generated summaries are currently available to a subset of mobile shoppers in the United States for a wide range of products. Amazon intends to expand this feature based on customer feedback, extending its availability to more shoppers and additional product categories in the upcoming months.
The move aligns with Amazon's broader efforts to integrate artificial intelligence into its offerings, focusing on enabling developers to create their own generative AI tools using its cloud infrastructure, Amazon Web Services (AWS). Amazon CEO Andy Jassy had earlier emphasized the significance of generative AI for the company in his shareholder letter, noting its application across various sectors, including the devices unit responsible for innovations like the voice assistant Alexa. Alongside the AI-generated review summaries, Amazon also revealed the introduction of a product insights feature, enabling customers to extract common themes from reviews, providing further convenience and context when making purchase decisions.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🇮🇷 Shippers Advised to Avoid Iranian Waters Amid Heightened US-Iran Tensions and Seizure Threats. In the midst of escalating tensions between Iran and the United States, maritime forces in the Middle East have issued a strong advisory to shippers traversing the strategically crucial Strait of Hormuz. This caution urges vessels to maintain a considerable distance from Iranian territorial waters to mitigate the risk of seizure. This warning follows a similar advisory earlier this year, issued ahead of Iran's seizure of two tankers near the strait, which serves as the narrow entrance to the Persian Gulf, facilitating approximately 20% of global oil trade.
🇬🇧 Exploring the Role of the U.K. in Assisting American Manufacturers with Critical Material Sourcing. The Biden Administration is exploring the possibility of relying on the United Kingdom as a source of critical minerals to support American automakers and high-tech manufacturers. This effort is intended to reduce the country's dependence on existing suppliers like China and Africa. The U.S. and the U.K. announced an Atlantic Declaration in June, aiming to strengthen their economic, technological, and trade ties. Part of this initiative includes negotiations for a critical minerals agreement, where U.K.-based exporters would gain access to incentives provided by the Inflation Reduction Act, potentially aiding American-made vehicles eligible for tax credits.
iLevel With You 🏡
More topics for the average American household to consider…
✈️ Airlines Struggle to Keep Pace with Growing First Class Seat Preferences among Travelers. Airlines are shifting their focus from cramming as many seats into coach cabins to catering to the growing demand for roomier and more comfortable seating options, especially among high-spending travelers. This change is driven by travelers like Natalie Rasmussen, who opt for premium seating like business class or premium economy for long-haul flights. Such premium seats generate significantly higher revenues than standard coach fares, making them crucial for airlines, especially as ticket prices fall and business travel's post-pandemic rebound plateaus.
🔥 Carriers Devote Efforts to Supply Emergency Resources for Maui. Airlines are actively prioritizing relief shipments to Maui in response to the wildfire devastation caused by Hurricane Dora. With the Port of Kahului operational, carriers like Young Brothers, Matson, Pasha Hawaii, and more are directing their efforts toward loading and delivering critical medical supplies, emergency vehicles, and relief goods to the port. The Port of Kahului recently received a barge carrying supplies, including containers for the Federal Emergency Management Agency (FEMA) containing bottled water, ready-to-eat meals, a mobile medical unit, and a communications trailer. Airlines such as Hawaiian Airlines and Aloha Air Cargo have also joined the efforts by providing dedicated cargo space for essential supplies, including food, water, medical items, and infrastructure equipment for telecommunications repairs.
🌳 Biden Administration Aims to Enhance Environmental Practices in Federal Procurement. The Biden administration has introduced a proposed rule, the Sustainable Products and Services procurement rule, aimed at enhancing sustainability efforts in federal procurement. This proposal, overseen by the Federal Acquisition Regulation Council, seeks to strengthen existing sustainable product requirements by directing federal buyers to prioritize the purchase of sustainable products and services to the greatest extent possible. The rule covers key federal agencies such as the Department of Defense, the General Services Administration, and NASA. It aims to streamline and restructure current sustainable procurement regulations, consolidating purchasing program requirements and focusing on environmental considerations.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🚛 Truckload Carriers Foresee Upcoming Uplift in Demand. Truckload carriers like Knight-Swift Transportation Holdings and Schneider National are projecting a modest or moderate improvement in the market during the peak season, as discussed in their Q2 earnings calls. This contrasts with the strong seasonal uptick observed in previous years. While the spot market has shown signs of improvement and freight volumes are stabilizing, challenges for Q3 remain, including weaker-than-normal imports, aggressive volume retention efforts by trucking companies, inflation, and pressure on contractual pricing due to softer Q1 demand. Despite positive signs like retailers' destocking nearing completion and carriers exiting the market to balance capacity, executives remain cautiously optimistic about the path ahead, with some considering Q4 normalization and Q3 challenges.
🔋 Key Factors in OK Produce's Fleet Electrification Journey. OK Produce, a third-generation produce wholesaler based in Fresno, California, is progressing towards electrifying its fleet of trucks with solar power. The company is completing the first phase of a three-step zero-emissions plan, aiming to power its entire electric truck fleet using 100% solar energy. The plan involves significant investments in solar panels on facility buildings and the parking lot, generating electricity for 10 Freightliner eCascadia trucks, three Orange EV yard tractors, and soon-to-be-delivered seven Volvo VNR Electric trucks. The company is participating in the North American Council for Freight Efficiency's Run on Less Electric-Depot program to share its experiences and lessons with other fleets. The second phase of OK Produce's electrification plan will involve more charging ports powered by solar energy.
👣 Reducing Fleet Carbon Footprint: Strategies Beyond Electric Vehicles. Reducing fleet emissions without relying solely on electric vehicles is key as pollution standards tighten and EV integration challenges persist. Craig Marris, Chief Sustainability Officer of EROAD, suggests that for the next 15-20 years, fleets might need to focus on transitional diesel strategies. Maintaining diesel engines optimally and addressing issues like dirty filters, fuel systems, and after-treatment systems can lower emissions. Telematics and data analysis are vital for spotting potential problems that impact emissions. Utilizing quality equipment like synthetic engine oils and adjusting maintenance intervals based on usage and environment can also significantly reduce emissions. By adopting these practices, fleets can achieve double-digit improvements in emissions, allowing them to make progress toward their environmental goals without solely relying on EVs.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 25, 2024, from iLevel Logistics Inc.