Tex-Charge 🤠
Good morning! Celebrate a batter-rich tradition on National Waffle Day!
As syrup aficionados and breakfast lovers alike indulge in this crispy and fluffy delight, get embedded into today's edition. 🧇
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Starting from September 1st, Texas will introduce a new $200 annual fee for electric vehicle (EV) owners during registration, intended to compensate for the loss of revenue from gasoline taxes that fund road maintenance. The fee was introduced through Senate Bill 505 due to concerns that EV drivers were not contributing enough to road construction and repairs.
While some argue that the fee is necessary to ensure EV owners share the road maintenance burden, others suggest lower fees or alternative methods based on miles driven, and environmental advocates worry that it might hinder EV adoption, particularly among lower-income individuals.
Check out today’s featured article from Texas Tribune to read about the new Texas legislation and whether related measures will be implemented in other states.
Freight & Acquisitions
Old Dominion Outbids Estes Express for Yellow Corp.'s Terminals in Competition-Fueled Sale
Old Dominion Freight Line is set to establish the bidding floor for the sale of Yellow Corp.'s more than 160 freight terminals, with an offer of $1.5 billion, surpassing Estes Express Lines' $1.3 billion bid. The move highlights the competition between the two companies in acquiring Yellow's assets and underscores Yellow's potential to repay its creditors, including the U.S. government, through the sale.
This development aligns with Old Dominion's strategy of consistently expanding its service center count, setting it apart from peers who have reduced their terminal networks in recent years.
Unions & Labor Issues
UPS Workers Approve Historic Labor Deal with Significant Wage Increases and Work Improvements Amidst Labor Trends
UPS workers have ratified a five-year labor deal that brings substantial wage increases and improvements in work rules and schedules. The contract received an 86.3% vote in favor, making it the highest contract vote in Teamsters history at UPS. Part-time workers will earn at least $21 per hour, up from the current minimum of $15.50, while full-time workers will average $49 per hour.
This deal comes amid a trend of labor organizations seeking better pay and conditions in the wake of the COVID-19 pandemic and rising inflation.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🌍 UN Reports Highlight Africa's Potential as a Global Exporter and Hub for Green Business Opportunities. According to recent reports from the United Nations, Africa stands to become a key player in global trade, not only as a supplier of raw materials but also as a producer of manufactured goods. The continent's burgeoning technology ecosystem, including AI, 3D printing, and blockchain hubs, coupled with regional agreements promoting industrial zones, are driving this shift. Additionally, Africa's rich reserves of critical minerals position it as a vital player in the global electric vehicle market. While China has been a major investor, the UN stresses the need for diverse financing and removal of regulatory barriers to fully unlock Africa's economic potential.
🇪🇬 LNG Carrier Collision in Suez Canal Resolved; Similar Incident to Ever Given Raises Concerns. An LNG carrier veered sideways in the Suez Canal, resulting in a collision with another tanker, which has now been resolved, according to the Suez Canal Authority. A third tanker was also in the vicinity but its involvement remains uncertain. The incident occurred in the narrow southern section of the canal, similar to the grounding of the Ever Given in March 2021. The affected LNG carrier has been repositioned with tugboat assistance, and the impact on canal operations is currently unknown. The 2021 Ever Given incident investigation by the Panama Maritime Authorities highlighted errors by the Suez Canal Authorities along with other contributing factors.
🇸🇦 Corporate Giants Back Rondo Energy's Innovative Thermal Battery System for Clean Heat in Heavy Industries. Saudi Aramco, Rio Tinto, and Microsoft have invested in Rondo Energy, a startup offering a thermal battery system designed to reduce energy consumption and emissions in heavy industries. Rondo Energy's system uses bricks to store and deliver heat, utilizing a kiln-like process that heats bricks to 1,500 degrees with minimal daily energy loss. This technology provides a cost-effective solution for continuous high-temperature clean heat, aiding industrial decarbonization efforts. The investment will support the expansion of this innovative energy storage technology, which offers a more affordable alternative to traditional options like hydrogen storage.
iLevel With You 🏡
More topics for the average American household to consider…
💸 Fed's Inflation Battle Shows Surprising Economic Resilience Amidst Rate Hikes. Over the past year, the Federal Reserve, led by Chair Jerome Powell, warned of raising interest rates to combat high inflation, which was expected to bring economic pain. Despite raising rates to their highest level in 22 years, the economy has defied predictions, maintaining robust growth, low unemployment, and healthy consumer spending. Economists now question whether the current interest rate is sufficient to curb inflation and ponder if a prolonged period of high borrowing rates is needed. The optimistic outlook for a "soft landing" and accelerated growth has shifted market expectations, delaying rate cuts and increasing bond yields. Yet, concerns linger about the potential impact on borrowing, consumer spending, and the risk of a downturn.
🚗 US Proposes Seat Belt Warning System Expansion to Enhance Vehicle Safety. The U.S. Department of Transportation has introduced a proposed rule requiring manufacturers to install a seat belt warning system for rear seats, and front passenger seats, and an extension of warning duration in vehicles weighing less than 10,000 pounds. The proposal includes visual and audio alerts upon vehicle startup and while driving to ensure seat belt usage, aiming to reduce injuries and fatalities in accidents. The National Highway Traffic Safety Administration (NHTSA) estimates that this rule could prevent over 100 deaths and about 300 non-deadly injuries annually. Public comments on the proposal will be accepted for 60 days.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🚢 Global Excess Supply Chain Capacity Rises Amidst Depressed Demand, Raising Concerns of Future Disruptions and Strategic Shifts. Global trade has declined due to depressed demand, raising concerns of a future "whiplash effect." The GEP Global Supply Chain Volatility Index reveals increased excess supply chain capacity driven by low demand, leading to potential disruptions and a long-term shift in supply-demand dynamics. While excess capacity presents bargaining opportunities, experts advise prompt and bold actions to reset cost bases and prepare for supply chain network changes. However, caution is urged, as global supply chains remain fragile, and buyers should anticipate potential disruptions, even amidst current overstock situations.
⛽️ Hydrogen-Powered Trucks and Liquid Hydrogen Gain Traction in Clean Transportation. Major truck manufacturers like Volvo Trucks, Toyota, and Hyundai are focusing on hydrogen-powered vehicles for clean transportation. Liquid hydrogen (LH2) is gaining attention due to its increased energy density compared to gaseous hydrogen. The U.S. Department of Energy is investing in regional clean hydrogen hubs to accelerate the use of hydrogen as a clean energy carrier, emphasizing the importance of hydrogen infrastructure development. The success of LH2 adoption hinges on creating distributed modular hydrogen systems that offer portability, integration ease, and accessibility, enabling a faster transition to green energy.
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.