Strike Sparks Strategy💡
Good morning! Happy National Couple's Day, dear readers! Just like peanut butter and jelly, or coffee and Mondays, supply chain components are the ultimate power couple that keep the world moving.
Join us for a daily dose of logistics laughter, inventory insights, and procurement puns as we navigate the delightful dance of supply chain partnerships. So grab your morning coffee and let's sashay into the world of shipments, shortages, and synergies – because in the realm of logistics, we're all each other's favorite pairs of socks! 🧦📦
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Labor Disputes Spark Contingency Plans Amidst Union Demands
Ongoing labor disputes across various transportation sectors are causing disruptions and uncertainty in supply chains, prompting companies to strengthen contingency plans. From port disruptions to union disagreements with UPS and Yellow, conflicts between employers and workers are affecting the flow of goods and resulting in container backlogs and shifts in carrier strategies. Labor unions are seeking better pay, benefits, and protection, fueled by the pandemic's impact and current inflation.
While unions gain power during what's being called a "Hot Labor Summer," the challenge lies in balancing the need for fair treatment with maintaining the steady movement of goods.
Check out today’s featured article from Supply Chain Dive to read about the “Hot Labor Summer” and what it could mean leading into peak season.
Featured Article
What’s behind the summer of supply chain labor unrest? | Supply Chain Dive
“An extended stretch of labor unrest has sowed uncertainty throughout transportation modes, adding further incentive for shippers to firm up their supply chain contingency plans.”
Shipping & Border Issues
Savannah Port's AQUA Lane Clearance Accelerates Cargo Operations and Supply Chain Efficiency
The Georgia Ports Authority has been granted the AQUA Lane security clearance, allowing ships calling on the Port of Savannah to begin cargo operations immediately upon arrival, without waiting for final clearance from U.S. Customs and Border Protection (CBP).
This "fast lane" approach streamlines unloading processes, reduces port stays, and enhances supply chain efficiency. The AQUA Lane program, which nearly two dozen U.S. ports have adopted, requires ocean carriers to be enrolled in the Customs-Trade Partnership Against Terrorism (CTPAT) program and in good standing with CBP, enabling cargo handling while the Customs clearance process is underway.
Shipping & Border Issues
The Panama Canal Authority Extends Transit Restrictions, Potentially Impacting Shipping Costs
The Panama Canal Authority has prolonged the restrictions for vessels transiting the waterway until September 2 due to the delayed rainy season in Panama. The limitations include a maximum of 32 vessels authorized to pass through per day, potentially increasing pressure on consumer goods prices as shipping delays and additional fees contribute to higher shipping costs.
The Canal, a crucial route for moving goods between Asia and the United States, is facing congestion issues caused by the drought, leading to adjustments in transit reservations and lock usage to mitigate the impact on shipping operations.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🇨🇴 Bridging Trust and Efficiency in Latin America's E-commerce Logistics. Melonn, a Colombian start-up founded in 2020, aims to address the challenge of trust deficit in Latin America's e-commerce sector. While the region's e-commerce industry is booming, concerns about package delivery and payment reliability persist among consumers and sellers. By offering a technology platform that integrates transportation, warehouse, and order management systems, Melonn strives to enhance transparency, reduce anxiety levels, and build trust through a seamless process for both customers and sellers. The company's goal is to make e-commerce growth possible by meeting customer expectations and providing guidance to sellers, thus contributing to the evolution of the Latin American e-commerce landscape.
🇮🇳 India's Export Ban and Climate Threats Trigger Global Food Supply Chain Concerns. India's sudden ban on non-basmati white rice and broken rice exports has created global ripple effects, impacting the rice market and prices. This disruption, coupled with the potential agricultural yield decline due to the El Niño climate phenomenon, threatens agri-food value chains and could lead to increased food prices in 2024. To mitigate these risks, businesses are advised to diversify suppliers and raw materials, maintain safety stocks, optimize inventory, improve cooperation, and foster resilient supply chains through collaboration with partners along the entire supply chain.
🇨🇳 China's Dominance in Global Green Tech Supply Chain Expected to Continue Despite Policy Efforts by Developed Nations. China is projected to maintain its leading position in the global green technology industry, particularly in sectors like solar, wind, and battery technology, even as developed countries introduce policies to bolster domestic supply chains. While initiatives like the Inflation Reduction Act in the US aim to boost the domestic green industry, analysts believe China's scale advantage, cost efficiency, and technological iteration will allow it to remain a pivotal supplier for the green transition for the next decade. Despite efforts to encourage local manufacturing and sourcing, the highly commoditized nature of green technologies and the complexity of building competitive supply chains could prevent immediate disruption to China's dominance.
🇨🇭 Gotthard Base Tunnel Repairs to Take Months After Derailment. The Gotthard Base Tunnel, the world's deepest traffic tunnel and longest of its kind is facing extensive repairs that will last several months after a recent freight service derailment caused more damage than initially estimated. Sixteen cars derailed, causing considerable damage to the west tube of the tunnel. The tunnel, a vital route for goods and cargo through the Swiss Alps, is expected to partially reopen next year, affecting rail passengers and freight customers.
💰 China's Economic Model Faces Challenges and Global Impact, Says Investor. David Roche, a veteran investor, has expressed concerns that China's economic model is facing significant challenges and is unlikely to recover, which could have a significant impact on global markets. Despite recent stock market rallies, there are worries about the potential repercussions of China's prolonged economic slowdown, particularly due to diminishing contributions from property and manufacturing. Roche believes that economies relying on manufacturing for growth will struggle and may experience social and geopolitical issues as a result. He recommends considering safe haven assets like U.S. Treasurys amid these uncertainties.
iLevel With You 🏡
More topics for the average American household to consider…
🔥 Lithium-Ion Battery Fires Raise Safety Concerns in EV Era. The New York Fire Department has reported over 100 lithium-ion battery fires this year in New York City, causing injuries and fatalities. Despite the surge in incidents involving electric vehicle (EV) batteries, concerns are raised about the prioritization of environmental goals over safety. As electric vehicles gain popularity and regulations shift, questions arise about effectively balancing risks and benefits in the pursuit of a greener future.
🔋 Growing EV Battery Sizes Pose Challenges to Supply Chain and Affordability. The trend of increasing electric vehicle (EV) battery sizes to achieve higher driving ranges is leading to concerns about the sustainability of the battery supply chain, the strain on resources like lithium, and the overall affordability of EVs. Bloomberg reports that the average EV battery pack size has nearly doubled from around 40 kWh in 2018 to about 80 kWh in 2022, resulting in larger and heavier vehicles. While larger battery packs contribute to longer ranges, they also risk driving up costs and depleting resources, challenging the industry's efforts to make EVs more accessible and sustainable. Bloomberg suggests that incentives for smaller, more efficient EVs and deeper government support for charging infrastructure could help counterbalance the battery size growth trend.
🛣️ Pennsylvania Turnpike to Introduce Open-Road Tolling System. The Pennsylvania Turnpike is undergoing significant changes as it transitions to a cashless open-road tolling system. The shift involves the installation of overhead steel gantries that electronically charge tolls to vehicles without the need to slow down or stop. The system is set to be operational in 2025 for the eastern part of the state and will gradually expand to cover the entire turnpike by late 2026. The move aims to enhance safety, convenience, and efficiency for drivers while reducing operational costs for the turnpike.
⛽️ States Experiment with Mileage-Based User Fees as Alternative to Gas Taxes. States across the U.S. are exploring the viability of implementing mileage-based user fees (MBUFs) to replace traditional gas taxes, which are becoming less effective due to the rise of electric vehicles and improved fuel efficiency. Over 30 states have participated in pilot programs for MBUFs, and a few, including Hawaii, Oregon, Utah, and Virginia, have established permanent programs. The success of MBUFs hinges on several principles: replacing fuel taxes rather than supplementing them, avoiding unnecessary complexity like congestion pricing, and ensuring the fees are used solely for road maintenance, rather than pursuing other policy goals. While different states may implement MBUFs differently, the goal is to create a reliable funding source for road infrastructure.
🍊 Self-Driving Electric Shuttle to Provide Free Rides in Downtown Orlando as Part of Data-Gathering Trial. An autonomous electric shuttle will soon offer free rides within downtown Orlando, Florida, covering a 1-mile loop. Operated by Beep Inc., the eight-passenger self-driving shuttle service is part of a six-month trial aimed at gathering data to inform the city's future transportation plans. The initiative aims to integrate advanced technology with new mobility solutions, contributing to the transformation of local transportation.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🔎 DP World Unveils Ambitious Expansion Plans to Boost Container Handling Capacity and Technological Innovation. DP World has revealed plans to expand its port terminal operations by adding approximately 3 million Twenty-Foot Equivalent Units (TEUs) of container handling capacity by the end of 2023. The expansion includes increasing capacity in the Dominican Republic, Turkey, Egypt, and Saudi Arabia. This move will elevate DP World's total gross container-handling capacity to 93.6 million TEUs, with a focus on integrating new technology and updated terminal operating systems to automate port operations and accommodate the increased demand for trade. Global container throughput is projected to rise from 858 million TEUs in 2021 to 932 million TEUs by 2025, according to Drewry Shipping.
🚛 Kodiak Robotics and Pilot Travel Centers Open Autonomous Truckport in Georgia. Kodiak Robotics and Pilot Travel Centers have unveiled their first autonomous truck port in Villa Rica, Georgia, serving as an eastern hub for Kodiak's self-driving truck network. This facility will facilitate the deployment and collection of autonomous trucks, as well as support first- and last-mile deliveries. The truck port model, including fueling, light maintenance, and inspections, is intended for future expansion and provides insight into Kodiak's asset-light approach to building a scalable truckport network.
💰 Yellow Inc. Faces $25 Million in Unpaid Debts Amid Bankruptcy. Bankrupt trucking firm Yellow Inc. has accumulated over $25 million in unpaid debts to shippers, suppliers, vendors, and transport partners, according to bankruptcy case documents. The list of the top 30 unsecured creditors includes prominent companies like BNSF, Union Pacific, Home Depot, Amazon, Goodyear, Michelin, and Daimler Trucks North America. Experts suggest that unsecured creditors may receive only a fraction of what they are owed, given the priority status of secured creditors like the Treasury Department, which holds $729 million of Yellow's debt from a pandemic-era loan.
🇺🇸 Reflecting on President Biden's $369 Billion Climate Commitment. A year ago, President Biden signed the Inflation Reduction Act, committing $369 billion to propel renewable energy production, bolster home solar installations, and drive the adoption of electric vehicles, all aimed at cutting greenhouse gas emissions by 2030. Notable successes include over 200 major clean-energy projects and $86 billion in private investments, particularly in manufacturing electric vehicles, batteries, and solar components. However, challenges remain, including limited electric vehicle tax credits due to strict manufacturing criteria, lack of public awareness about the law's climate goals, and the need for even more significant actions to combat climate change. While progress is evident, the path forward requires sustained investment, expanded policy measures, and unified efforts to secure a sustainable future.
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.