Sky High Efficiency ✈️
Good morning! August 4th marks the birthday of the United States Coast Guard, and as we celebrate their dedication and service, we also take a moment to recognize the crucial role of supply chain and logistics in supporting their vital operations. From procurement and inventory management to transportation and distribution, the seamless coordination of logistics plays a pivotal role in the Coast Guard's ability to safeguard our nation's maritime interests.
Join us as we explore the dynamic relationship between logistics and this revered organization on their special day. Thank you to all Coast Guards that dedicate their lives to helping all of us! 🌊🪖
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Boeing is gearing up to increase its annual production of 737 aircraft to 38 planes per month as part of its efforts to stabilize the supply chain and manufacturing segments. The aerospace company has set a goal of reaching 50 monthly 737 aircraft deliveries by 2025-2026. Despite strong demand, Boeing acknowledges the challenges of operating in a supply-constrained environment and is focused on execution as production steadily ramps up.
The company has been taking steps to recover its production levels after facing supply issues, including a quality problem with the fuselage section of certain 737 aircraft. With supply chain strains easing, Boeing has made progress across its 777X and 777-8F development programs. Despite the progress, the aerospace industry still faces challenges, with some suppliers experiencing labor attrition and shortages.
Check out today’s featured article from Supply Chain Dive to learn more about how many more Boeing 737s will be created by 2026. Will there be an overstock of the planes as time goes on? Are they actually going to meet the goal of 50 deliveries a month by 2026?
Featured Article
Boeing prepares its supply chain for increased 737 production targets | Supply Chain Dive
“The aerospace company delivered 136 total aircraft last quarter, with plans to reach 50 unit deliveries a month by 2026.”
Trucker’s Lounge & Money Matters
Massachusetts Truck Driver Wins $1 Million Just Days After Announcing Retirement
Paul Bashaw, a 65-year-old trucker with over 20 years of experience in Massachusetts, is retiring with a $1 million jackpot, won just three days after he gave notice to his boss. He purchased a scratch-off lottery ticket worth $1 million from J&J Variety convenience store in West Boylston, part of the Massachusetts State Lottery’s “$5,000,000 100X Cashword” game with odds of 1 in 1.008 million.
Bashaw excitedly revealed that he had hit all three things he never thought would happen in life: the Patriots winning the Super Bowl, getting a hole-in-one five years ago, and now winning the lottery. He claimed his winnings as a one-time $650,000 cash payment on Friday and managed to keep his good fortune a secret during his last two weeks at work. As he heads into retirement, Bashaw plans to use some of his winnings to travel. West Boylston, the town where he purchased the lucky ticket, is located 37 miles from Boston.
Electric Vehicles & Loans
Tesla Seeks Funding for Megachargers
Tesla is planning to revolutionize the charging infrastructure for its fully electric long-haul trucks in the US. According to a report from Bloomberg, the company is seeking $100 million in funding from the Department of Transport to build an interstate Semi charging station route between Texas and California. Tesla is also contributing $24 million to the project, which will include nine charging sites, each equipped with 12 Semi Chargers with a capacity of around 750kW. Eight of these chargers will be dedicated to Tesla Semis, and four additional chargers will be available for other electric trucks.
The proposed charging route conveniently connects Tesla's factories in Fremont, California, and Austin, Texas, as well as being near Tesla's upcoming Mexico factory. Tesla has already installed its Megachargers for Semi trucks at PepsiCo's Modesto production facility, as the company has ordered 100 Tesla Semi trucks and has been trialing the truck for the past eight months. With plans to fulfill orders on trucks with an 800 km range, having reliable charging infrastructure becomes essential for both Tesla and PepsiCo as they move toward the future of electric long-haul trucks.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🇮🇷 Iran's APT34 Conducts Supply Chain Attack on UAE. Iran's APT34, also known as OilRig, has launched a supply chain attack targeting government entities in the United Arab Emirates (UAE). The attackers used a fake IT job recruitment form as bait, sending it to an IT company in the UAE. When the victim opened the malicious document to apply for the advertised job, info-stealing malware was executed, allowing APT34 to access sensitive information and credentials. The group then used the victim's email infrastructure for command-and-control communication and data exfiltration, specifically aiming to target government clients. The attack bears similarities to a previous APT34 supply chain intrusion in Jordan, indicating the group's ongoing threat in the region.
🇨🇳 Alibaba's Cainiao Introduces Half-Day Express Delivery in 8 Major Cities to Boost Consumption. Alibaba's logistics arm, Cainiao Network, has introduced its half-day express delivery service in eight major Chinese cities, including Shanghai, Hangzhou, and Shenzhen. The service, launched in collaboration with Tmall Supermarket, promises to deliver orders placed before noon before 9 pm the same day, and orders placed before midnight before noon of the next day. Cainiao aims to stimulate domestic consumption and plans to expand the service to seven more cities soon. The move comes as China's package delivery market experiences significant growth, with over 60 billion packages delivered in the first half of this year, a 17% increase compared to the same period in 2022.
iLevel With You 🏡
More topics for the average American household to consider…
🛍 Shopify Regains Growth Momentum After Divesting Logistics and Layoffs. Shopify experienced a 31% year-over-year increase in revenue during the second quarter, reaching nearly $1.7 billion, following the company's renewed focus on building e-commerce stores for brands. Despite this growth, Shopify's net loss widened to $1.31 billion due to factors like workforce reductions and sluggish sales growth. However, the company's efforts to attract larger enterprise clients and expand its wholesale offerings have shown promising results, with B-to-B GMV up 61% in the first half of 2023. Shopify's shift towards wholesale and the introduction of new tools like Marketplace Connect and Shopify Collective are part of its strategy to balance customer acquisition, retention, and innovation, aiming to find a strong and sustainable business model.
🛠 City Grants Permit for Construction of Building 1 Warehouse at Edgewood Logistics Center. City permits have been issued for the construction of Building 1 at the W. 12th/Edgewood Logistics Center in Jacksonville. The 156,033-square-foot building, located at 3415 W. 12th St., is part of a two-building warehouse project, with the other building planned to be 96,000 square feet. The contractor for the project is The Conlan Co. and the total cost for both buildings is estimated to be almost $23.3 million. The W. 12th/Edgewood Logistics Center is a Class A project with features like a 32-foot clear height and ESFR sprinklers, making it attractive to tenants and users seeking distribution center space.
👩🏻🔧 Bronx Logistics Center in Hunts Point Earns Prestigious LEED-Platinum Certification. The Bronx Logistics Center in Hunts Point has achieved LEED v4 Platinum certification, making it one of the few distribution buildings in the US with this prestigious rating. Developed by Turnbridge Equities and Dune Real Estate Partners and designed by ARCO, the 1.3-million-square-foot facility is set to open this year. It features 585,000 square feet of warehouse space, 32-foot ceiling spans, and dedicated entrances for flatbed trucks. The building also includes over 1,500 covered and surface-level parking spaces. To enhance sustainability, the project includes a 2.9-megawatt solar array on the rooftop, providing one of New York City's largest private sources of renewable energy. The building also has an on-site electrical substation to power 500 electric vehicle charging stations for standard passenger cars and tractor-trailers.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🚢 CJ Logistics Partners with World's 7th Largest Shipping Company, ONE. CJ Logistics, South Korea's largest parcel delivery service, has entered into a strategic partnership with Japan's Ocean Network Express (ONE), a global container shipping company. As part of the deal, ONE will offer competitive rates and freight space for CJ Logistics' container cargo moving from Asian countries such as South Korea, China, and Japan. ONE, formed through a merger of Japan's major container shipping units, is the world's 7th largest container shipping company in terms of cargo capacity and is a member of the global marine transportation group THE Alliance. This partnership follows CJ Logistics' previous agreement with Taiwan's Evergreen Marine Corp., making it connected to two major shipping alliances, providing the company with a wider range of options in global container shipping and transportation.
🦹♀️ Area Trucking Company Shares Training Methods After Semi Driver Hostage Incident. Two suspects were shot dead by Ohio State Highway Patrol troopers during a standoff and hostage situation in Vandalia, Ohio. The suspects had carjacked a semi in Madison County and held the driver hostage during a multi-county chase that ended near Dayton International Airport Access Road. Following the incident, a local trucking company, Home Run, Inc., spoke about the training their drivers undergo to handle such situations. Tom Milby, the Vice President of Safety at Home Run, emphasized the need to train drivers to handle all kinds of situations, as criminals often target the valuable products that truck drivers are hauling. Werner Enterprises, the company that owns the truck involved in the hostage situation, confirmed that their driver is safe and receiving necessary care and treatment.
📉 The logistics economy experienced a slowdown in July. The Logistics Managers' Index (LMI) report for July indicates a slowdown in economic conditions within the logistics industry, continuing a trend that started earlier this year. The LMI reached an all-time low reading of 45.4, down slightly from June, marking the third consecutive month of contraction in the index. The slowdown is attributed to low demand for logistics services, with warehousing metrics showing signs of softening and transportation conditions remaining sluggish. Warehousing capacity expanded for the fourth straight month, which is unusual for the summer season, as companies might be adopting more flexible inventory management strategies and being cautious due to higher storage costs. However, there are signs of improvement in the transportation sector, suggesting that it may be nearing the bottom of its downturn. Researchers anticipate that the freight market could turn around in the coming months, but overall, the logistics industry is still facing challenges amid broader economic conditions.
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.