Mirage's Last Stand 🔋
Good morning! This warm summer day is a great day to grab an iced coffee, lay back on a lawn chair, and have some leisure reading of the Workday Dash. Reflect on EVs, Trucking, and our amazing world of the supply chain.☀️☕️
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The Decline of Affordable Small Cars in the US: Mirage Stands Alone as Prices Soar
Just a few years ago, the US had multiple small cars priced under $20,000, but now only the Mitsubishi Mirage fits that category, and even it is facing a decline due to the growing preference for SUVs and trucks. The Mirage's average sale price is around $19,205, making it the last affordable option in a market where the average new vehicle costs over $48,000.
Small cars' scarcity is partly due to automakers discontinuing compact models and the pandemic-related chip shortage causing price hikes. Mitsubishi's Mirage is set to be phased out, but some affordable alternatives include certified pre-owned small cars. While overall auto prices might slightly decrease with increased production, the era of the $20,000 new car is likely over.
Check out today’s featured article from CNBC to read about the Mitsubishi Mirage and why electric cars just don’t seem to be getting any cheaper.
Featured Article
“Just five years ago, a price-conscious auto shopper in the United States could choose from among a dozen new small cars selling for under $20,000.”
Bankruptcy & Diversity
Yellow's Bankruptcy Results in 8% Decrease in Carrier Diversification
The bankruptcy of Yellow Corp., a major less-than-truckload (LTL) carrier, has led to an 8% decline in carrier diversification among shippers, as they opt to redirect their freight to existing logistics partners rather than engage new carriers, according to a report by project44, a supply chain visibility provider. The collapse of Yellow, which generated around $5 billion in annual revenue from nearly 49,000 daily shipments, occurred on July 30 and was followed by a bankruptcy filing on August 6. Despite the anticipated nature of Yellow's downfall, its clients swiftly transitioned their business to rival carriers, moderating the disruption's impact. However, project44's findings suggest that this shift has resulted in an equivalent reduction of one carrier per shipper, highlighting the tangible effect on carrier diversification.
While the trend benefits other LTL carriers by providing them with new customers, it could also strain their networks. The absorption of additional volume may lead to supply chain congestion as carriers contend with increased capacity demands. Project 44 cautioned that the added strain could challenge carriers in maintaining efficient operations and meeting the elevated capacity needs effectively.
Fuel Tech & Tariffs
Solar Developers Express Concern Over Potential New US Tariffs, Citing Climate Impact
Renewable energy developers have expressed strong criticism over the recent US government decision to impose new tariffs on solar exports from Southeast Asia, citing concerns that these tariffs will hinder the deployment of clean energy and undermine progress towards climate goals. The decision stems from a 17-month trade probe by the Commerce Department, which found that certain solar manufacturers were utilizing Southeast Asian processing to evade duties intended to counter Chinese subsidies and below-market pricing.
Solar cell and module exports from countries such as Cambodia, Malaysia, Thailand, and Vietnam will now face varying tariffs, impacting around 75% of US supply. Renewable energy advocates argue that the tariffs will disrupt the solar supply chain and run counter to the Biden administration's clean energy objectives, while domestic manufacturers contend that foreign competition is undercutting their businesses.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🇨🇳 Impact of China's New Critical Minerals Restrictions on Global Sourcing Strategies. China's recent restrictions on the export of critical raw materials, including gallium and germanium, have highlighted the need for American high-tech manufacturers to diversify their supply chains. These metals are vital for the production of semiconductors and electric vehicles, and China's dominance in their supply has raised concerns about potential disruptions. The restrictions are believed to be a response to the US's move to limit exports of advanced semiconductors and chip-making equipment to China.
🇲🇽 Stellantis Considers Shifting Pickup Truck Manufacturing from US to Mexico. Stellantis, an automaker, is reportedly considering relocating the production of its current Ram 1500 pickup truck from a factory in suburban Detroit to Mexico, according to United Auto Workers (UAW) Vice President Rich Boyer. The potential move has been discussed during ongoing contract negotiations between the UAW and Stellantis, along with General Motors and Ford Motor. The automaker's plans include producing a new all-electric Ram pickup truck at the Sterling Heights Assembly Plant, which currently manufactures most of the Ram light-duty pickups. The move could face political opposition and may impact the UAW's membership, as electric vehicles require fewer workers, potentially leading to less job security.
iLevel With You 🏡
More topics for the average American household to consider…
🔥 Devastating Wildfires Expose Hawaii's Lack of Preparedness for 'Preventable Disaster'. The recent devastating wildfires that swept through western Maui have highlighted Hawaii's lack of preparedness for such preventable disasters. While the state's residents are familiar with natural disasters like tsunamis, hurricanes, and volcanic ash, the wildfires caught much of the region off guard. The fires have prompted calls from wildfire experts to take action to better protect against future similar disasters. Despite the recent wildfires being the deadliest in the country in over a century, wildfire was not considered the biggest threat to the state in emergency management plans.
🛍 The US Mall is Thriving: Debunking the Myth of its Demise. Despite concerns about the decline of malls in the US, recent market analysis from Coresight Research shows that malls are adapting to the changing environment and thriving. Many malls are reporting robust occupancy levels and increased foot traffic compared to before the pandemic. Top-tier malls saw a 12% increase in foot traffic in 2022 compared to 2019, while lower-tier malls saw a 10% increase. Top-tier malls generated $7.5 billion in revenue in 2022, with a growth rate of 5% from 2020 to 2022. Lower-tier malls had a growth rate of almost 9% but reported slightly lower revenue at $6.4 billion.
💧Water Scarcity Challenges Along Major Shipping Routes Amidst the Looming El Niño. The world's major shipping routes are facing challenges due to increasing climate-driven extreme weather events, and the situation could worsen with the onset of El Niño. El Niño is a climate pattern involving the warming of the tropical central and eastern Pacific Ocean. While its effects peak around December, the full impact takes time to spread globally. The Panama Canal, a crucial route connecting the Atlantic and Pacific oceans, has been impacted by low water levels caused by drought, leading to restrictions on vessel traffic and logjams of ships. El Niño is expected to exacerbate these challenges in the coming year. Climate-related disruptions in major waterways have implications for global supply chains, trade routes, and economies. The Panama Canal's current issues and restrictions are considered the beginning of potential challenges that could worsen with El Niño. Danish shipping giant Maersk has been affected by these delays, with low water levels leading to reduced cargo loads on vessels.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🔋Titan Freight Systems Introduces Electric Trucks in Oregon. Titan Freight Systems, headquartered in Portland, Oregon, has received its first battery-electric trucks, consisting of three Freightliner eCascadias. The company plans to add three Freightliner eM2 medium-duty electric box trucks by the end of the year. These electric trucks will contribute to Titan's efforts to achieve carbon neutrality and sustainability in its operations. The eCascadias will handle deliveries within the Portland metropolitan area, while the eM2s will operate in a new Zero-Emission Delivery Zone in downtown Portland. Titan has set up charging infrastructure at its depot, including six Detroit eFill commercial charging stations, to support its electric fleet. The company's commitment to sustainability led to it being named an HDT Truck Fleet Innovator in 2022. The adoption of electric trucks is seen as a significant step toward reducing the environmental impact of freight transportation and achieving long-term sustainability goals.
🛤 Nestlé's Innovative Approach: Enhancing Efficiency with Double Stacking in their Rail Supply Chain. Nestlé UK and Ireland have introduced a novel rail container using double-stacked pallets, delivering increased efficiency and contributing to their net-zero efforts. The container employs a roof-raising mechanism that allows products to be double-stacked up to the ceiling, maximizing capacity before the roof is lowered for transit. This innovation enables the transportation of double the product amount compared to conventional containers. The trial was successful, aligning with Nestlé's commitment to halve emissions by 2030 and achieve net zero by 2050. The success of this approach is expected to enhance rail freight volume, reduce reliance on road freight, and align with Nestlé's greener distribution strategy.
🌾 Fashion Brands Alerted as Regulatory Crackdown Targets Slavery in Cotton Supply Chains. The fashion industry faces growing scrutiny over supply chain abuses in cotton production, including forced labor and poor working conditions. Allegations of forced labor in Xinjiang, China, where Uyghur Muslims are reportedly subjected to harsh conditions, have prompted regulatory action. New laws like the Uyghur Forced Labor Prevention Act in the US and proposed regulations in the European Union target cotton from problematic regions. The fashion industry's lack of responsibility for supply chain abuses is being addressed through legal clampdowns, forcing brands to demonstrate their products don't involve forced labor. Technologies like AI and DNA identification are also being used to improve supply chain transparency.
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.