NOLA Contain-Mess 😵💫
Good morning! Welcome to the August 8th edition of The Workday Dash! On this day, as we delve into the latest industry developments and trends, we also take a moment to celebrate National "Happiness Happens Day." In these challenging times, it is essential to find joy in the little moments and share positivity within our supply chain community.
So, let's embark on this edition with a commitment to spread happiness along with valuable insights and updates from the world of supply chain and logistics. Happy "Happiness Happens Day" to all! ☀️😁
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The St. Bernard Parish District Attorney's Office has filed a lawsuit against the Port of New Orleans to halt the construction of a planned $1.8 billion container facility, known as the Louisiana International Terminal (LIT). The legal battle stems from concerns raised by politicians and residents who believe the project will disrupt life and cause environmental damage in the area. Port Nola's CEO, Brandy Christian, has dismissed the lawsuit as "preposterous" and accused it of being "election-year theatrics."
The project, aimed at enhancing Port Nola's competitiveness in the Gulf South region, had previously secured support from the state and private operators, but recent budget cuts have caused setbacks. Port Nola remains committed to the project, emphasizing the importance of a new container terminal for Louisiana's trade-based economy.
Check out today’s featured article from AP News to learn more as to why there was a lawsuit filed against the port of New Orleans and what it could mean in the future. Will the port be able to still spend $1.8 billion on the new construction? When will this update be done?
Featured Article
Lawsuit filed to block Port of New Orleans’ $1.8B container port project | AP News
“ A south Louisiana parish is suing the Port of New Orleans to block it from building a planned $1.8 billion container facility.”
Theft & Safety
Industry's Vigilance Rises in Response to Heightened Cargo Theft
Cargo theft has reached a decade-high, with the second quarter of 2023 witnessing a 57% increase compared to the previous year, totaling 582 thefts across the U.S. and Canada. The average shipment value per theft rose significantly as thieves targeted high-value shipments. The rise in strategic theft, utilizing deceptive means like stolen identities, has become a major concern for the industry, resulting in a 600% increase in some cases. Industry stakeholders are stepping up to tackle the issue, offering support and information to carriers to protect their freight.
Load board operators, like Truckstop, launched "Fraud Prevention Friday," a weekly educational series, while DAT Freight and Analytics implemented new initiatives to combat fraud. Increased awareness and collaboration are yielding positive results, with federal law enforcement showing more activity in addressing cargo theft.
Retail & Customer Relations
Retailers Tighten Customer Perks and Rewards Programs
Companies across various industries are cutting back on customer perks as they prioritize higher profit margins. The shift in perks, ranging from airport lounges to free shipping and birthday treats, comes as businesses reassess their loyalty strategies due to changing consumer spending habits and the need to control costs while boosting sales.
Airlines, for example, are making it more challenging to earn elite status and raising the number of miles required for benefits, while retailers are tightening return windows, adding fees, and reducing freebies like birthday treats. Striking the right balance is crucial, as overly slashing benefits can lead to customer loss while being too generous can strain profits.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🇧🇷 Life on the Road: A Trucker's Journey in Brazil. A recent visit to Ceagesp Market in Sao Paulo, Brazil, provided a unique cultural experience for an American traveler. The market, the third-largest wholesale marketing center globally, plays a crucial role in supplying fresh produce to several Brazilian states and Latin American countries. Among the bustling activity of thousands of truck drivers, vendors, and laborers, the importance of trucking in keeping the economy moving became evident. One trucker, Marcos Vilanova Salina, shared his passion for trucking as he drives for his family-owned business, hauling meat from Campo Grande to Sao Paulo and Rio de Janeiro and returning with fruits and vegetables from the market.
🇸🇦 OPEC+ Sticks to Strategy, Saudi Arabia Extends Unilateral Oil Cut. OPEC+ decided to maintain its current production cut strategy after Saudi Arabia extended its unilateral cutback of 1 million barrels a day into September. During an online meeting on August 4, a monitoring committee composed of key OPEC+ nations recommended no changes to the coalition's supply policy. The committee stated that they will closely assess market conditions and are prepared to take additional measures if needed. The decision comes as crude oil prices trade near a three-month high of over $85 a barrel in London, but concerns about China's economic rebound cloud the demand outlook. Major consuming nations have criticized the Saudis for further constriction, fearing it could lead to renewed inflationary pressures on consumers. Russia is also continuing export restraints into September, slightly tapering them to 300,000 barrels a day.
iLevel With You 🏡
More topics for the average American household to consider…
🥤 Coke & Pepsi are Tackling the Plastic Bottle Problem. The plastic bottle problem is a global concern, with 1 million plastic bottles being purchased every minute. Recycling rates of PET bottles remain low, leading to environmental and health issues, such as the Great Pacific Garbage Patch. Both Coca-Cola and PepsiCo claim to address the PET problem through recycling initiatives, but PepsiCo's specific targets and experimentation with bioPET bottles may give it an edge over Coca-Cola's broader goals. While banning plastic entirely is not feasible, a comprehensive approach involving legislation, consumer behavior, and industry initiatives is necessary. The solution requires a value chain approach, involving all stakeholders.
☀️Climate Change Skepticism Challenges EPA's Ambitious Plan to Cut Auto Emissions. The U.S. government's ambitious plan to cut greenhouse gas emissions from passenger vehicles is facing skepticism about its feasibility and whether it goes far enough. The Environmental Protection Agency (EPA) announced strict emissions limits aimed at slowing climate change, but the auto industry calls the target of 67% electric vehicle sales by 2032 unrealistic. Even if achieved, the reduction in pollution may be less significant than expected, as nearly 80% of vehicles in the U.S. are still expected to run on gasoline or diesel fuel. The EPA maintains that its proposal will substantially reduce pollution, but critics believe it falls short of what is required to combat climate change effectively. The EPA will consider feedback before finalizing the regulation in March 2024.
🚛 Auora is Paving the Way for Self-Driving Trucks in the Trucking Industry. Pittsburgh-based Aurora Innovation aims to revolutionize the trucking industry with self-driving technology. While other companies in the autonomous trucking space have faced challenges, Aurora is making progress and delivering loads for major customers like Uber Freight, FedEx, Schneider, and Werner in Texas. Their Aurora Driver system is being trained with safety drivers on routes between Dallas and Houston, and Dallas and El Paso, with the goal of launching fully autonomous trucks by the end of 2024. CNBC provides an exclusive look at Aurora's self-driving truck operation, showcasing the potential future of driverless trucks in the industry.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
💊 Congress is Addressing Drug Shortages Amidst the COVID-19 Crisis. Congress is taking action to address the critical shortage of pharmaceutical drugs in the U.S., which has been exacerbated by the COVID-19 pandemic. The House Subcommittee on Oversight and Investigations held hearings to uncover the root causes of drug shortages and vulnerabilities in pharmaceutical supply chains. Industry experts testified about the severe lack of utilization in U.S. generic pharmaceutical manufacturing sites, and a coalition called Securing America's Medicines and Supply (SAMS) identified 301 drugs currently in shortage. Legislation has been introduced to promote domestic manufacturing sources and increase Medicare coverage for American-made products. The issue has garnered bipartisan support, and there are calls for government procurement and grants to boost domestic pharma production to alleviate the problem quickly.
🧑🏽💼 The Yellow Corp Legacy Ends with Bankruptcy and Job Losses. Yellow Corp., a prominent US trucking company with a history of nearly 100 years, has filed for bankruptcy, leading to the closure of its business and leaving 30,000 employees without jobs. The Nashville-based logistics provider cited profound disappointment as it took this step. The company disclosed a list of creditors, including Amazon, Home Depot, and Goodyear Tire & Rubber Company, among others. The filing came after the company halted operations and faced financial struggles, unaffordable debt, and labor union disputes. Despite being a dominant carrier in the past, Yellow's market share had decreased, and a slowdown in freight and changing consumer spending patterns further added to its troubles.
📉 US Trucking Jobs Dip Below October 2022 Levels After Revisions and Declines. The US truck transportation jobs declined in both June and July, marking the first back-to-back monthly drops since the pandemic began. The Bureau of Labor Statistics reported that the sector lost 2,900 seasonally adjusted jobs in July, bringing the total to 1,604,300 jobs, the lowest since September 2022. The decrease in employment is attributed to poor trucking conditions and declining rates, which have squeezed carrier profit margins. Warehouse jobs also continued to decline, while rail jobs saw a slight increase but are still below pre-pandemic levels. Experts predict that trucking employment may continue to fall until rate conditions improve.
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.