🥊 Wage War
Good morning! Happy National Women's Day to all the incredible women driving innovation and excellence in the supply chain and logistics industry! As we celebrate the contributions of women in this dynamic field, we shine a spotlight on their achievements, leadership, and impact on shaping the future of global commerce.
From breaking barriers to forging new paths, women have played a crucial role in driving efficiency, sustainability, and resilience in supply chains worldwide. In this special edition, we honor the trailblazers, highlight the latest trends, and explore initiatives that champion diversity and inclusion, creating a more robust and thriving industry for all. Let's dive in and celebrate the remarkable achievements of women in the supply chain and logistics realm! 👩🏽👱🏼♀️👩🏻🦳👩🏾🦱👵🏼
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Former Contractor Urges FedEx Ground to Address Wage Disparity with UPS Amid Rising Turnover of Drivers: Spencer Patton, a former high-profile contractor, highlighted the growing wage and benefit gap between drivers in FedEx Ground and UPS, which is leading to a high turnover of drivers within the FedEx Ground network. Patton, who advocated for 6,000 FedEx Ground contractors until a legal dispute resulted in the revocation of his operating routes, emphasized that UPS drivers are expected to receive significant wage increases under a tentative contract with the Teamsters union.
In contrast, nonunion FedEx Ground drivers currently make between $20 and $25 an hour, with limited benefits and variable working conditions. Patton suggested that to compete and retain qualified drivers, FedEx Ground must increase contractor compensation by at least 15% and establish a base wage of $30 an hour. Despite these challenges, FedEx Ground has not taken significant steps to address the issue, and Patton's efforts to renegotiate contractual terms last year faced opposition. However, one of the positive outcomes of his efforts was FedEx Ground's reduction of Sunday deliveries by 50%.
Check out today’s featured article from Freight Waves to learn more about the disparity of the wages between FedEx and UPS, and what it could mean more future competitiveness between the two shippers. Will FedEx listen to this former contractor? What will this mean for shippers?
Featured Article
Former contractor says FedEx Ground must address driver wage disparity with UPS | Freight Waves
“Patton says 15% bump in compensation needed for contractors to stay competitive.”
Artificial Intelligence & Trucking
Smart Technology Ensures Green Lights for Freight Transportation
The North Central Texas Council of Governments (NCTCOG) is implementing a five-year intelligent traffic signal optimization program in the Dallas-Fort Worth area to reduce the number of stops for trucks at traffic lights. The Freight Signal Optimization Program aims to improve freight delivery efficiency by using cloud-based services that coordinate traffic light timing with truck arrivals, ensuring smoother traffic flow and reducing emissions from truck idling.
The program, supported by the North Texas Innovation Alliance, started operating in June 2023, and full system operation is expected by June 2024, with assessment continuing until 2028. Interested fleets or owner-operators can participate at no cost through the EcoDrive app or other automatic vehicle location feeds.
Collections & Claims
XPO Logistics Achieves Reduction in Damage Claims and Pursues Further Improvements
XPO Logistics has achieved a reduction in its damage claims ratio as a percentage of LTL (Less Than Truckload) revenue, which remained at 0.7% in Q2, showing improvement from the previous year. The company implemented internal upgrades, including the use of technology and incentive-based compensation initiatives, to drive these improvements. Incentive compensation plans were tied to service improvements, and a rating system was introduced where workers rate how well trailers are loaded and unloaded, providing valuable data for evaluation and coaching. These efforts resulted in the best damage claims per shipment in over seven years in June.
To further enhance their results, XPO is introducing more tools, such as a new airbag system, storage racks, and higher-quality straps. The company is also improving training and loading procedures for dockworkers to enhance service. XPO aims to achieve a damage claims ratio of 0.1% in the long term, recognizing that it may take several years to reach this goal.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🚢 Survey Reveals Decline in Seafarers' Happiness and Working Conditions. A recent survey conducted by Mission to Seafarers reveals a notable decline in the happiness of the world's seafarers in the second quarter, with working and living conditions lagging below pre-pandemic standards. The seafarers expressed dissatisfaction with the slow return of working conditions to normal, crew changes, time on board, wages, and shore leave. Concerns were raised about unmanageable workloads, limited internet access, inadequate gym facilities, and shortages of drinking water and food supplies during voyages. The stagnation of wages over 15 years was also highlighted, indicating the need for fair and timely adjustments to wages that reflect the true value of seafarers' contributions to the industry. The COVID-19 pandemic exacerbated the challenges for seafarers, leading to delays in crew changes, extended time on board, and declining wages, further contributing to worsened working conditions and frustration among sailors.
📖 Revolutionizing Global Supply Chains: Insights from 'Breakthrough Supply Chains' Book. The book "Breakthrough Supply Chains" offers a practical and rigorous methodology to build resilient and cost-competitive 21st-century supply chains for international business. The key steps include prioritizing customer-centricity, accommodating both demand-driven and supply-based factors, addressing transportation-related risks, considering the VUCA environment, making fact-based decisions based on accurate data, and adopting a micro, case-specific view for international supply chains. The authors emphasize the importance of analyzing customer-specific supply chain performance data to thrive in an uncertain world.
iLevel With You 🏡
More topics for the average American household to consider…
🔓 Post-Pandemic Organized Crime & Cargo Theft Surges Amidst Concerns for Supply Chain Security. As the nation emerged from the pandemic, smash-and-grab robberies drew attention in California, targeting high-end stores. However, a new form of organized crime has emerged, involving thieves redirecting cargo shipments, resulting in a 57% surge in such thefts compared to last year. Perpetrators use stolen credentials and fraudulent addresses, with a focus on high-value shipments like Nike products, leading to increased concerns for supply chain security and economic impact.
🏦 Moody's Issues Warning of Potential Credit Rating Downgrade for 6 Major US Banks. Credit ratings agency Moody's has placed the credit ratings of six major US banks, including Bank of New York Mellon, State Street, and Northern Trust, under review for a possible downgrade. The warning is attributed to the "ongoing strain" in the US banking sector, with increased funding pressures and potential weaknesses in capital requirements. A potential downgrade could lead to higher funding costs for the banks. The US stock market reacted negatively to the news, with the Dow falling over 350 points. Moody's also downgraded 10 smaller US banks, citing rising risks associated with commercial real estate exposures as a contributing factor.
👷🏽 Florida Governor Signs Controversial Bill on Phosphogypsum in Road Construction. Florida Governor Ron DeSantis signed a bill allowing the study of phosphogypsum in road construction, overturning a federal prohibition under the Trump administration but reinstated by Biden's EPA. Phosphogypsum is a byproduct of fertilizer production and poses environmental risks due to potential radioactive elements. Presently, phosphogypsum is stored in gypsum stacks, which have a history of failure. Studies show potential benefits of using phosphogypsum on roads, reducing gypstack size and contamination risks. However, purification methods must be tailored to its chemical composition. Florida's law may have limited impact due to EPA regulations, but further research is needed to assess the safety and environmental impacts of its use.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🍺 Reassessing Unions: Balancing Value and Accountability Amidst Automation and Safety Concerns. The author of this article, who was not a supporter of unions, has recently begun to see their potential value in the face of impending job disruptions caused by AI and the lack of income growth. However, their stance has been challenged by a recent case involving a Groupe Robert driver who was involved in a crash while intoxicated. The driver, represented by the union, was ordered to be reinstated by an arbitrator despite clear rules in the collective agreement stating that drinking and driving a commercial vehicle would result in immediate termination. The author questions the logic behind the union's defense of such reckless behavior and calls for reasonable limitations on actions worthy of forgiveness and reinstatement. They express concern for the safety of other drivers on the road and suggest that there must be a line drawn where such actions are not defended by unions.
💸 Teamsters Refute Yellow's Accusation of Union Involvement in Trucking Firm's Bankruptcy. The International Brotherhood of Teamsters has rejected Yellow Corp.'s attempt to blame the union for the company's financial troubles leading to bankruptcy. Teamsters President Sean O'Brien stated that the union had sacrificed billions to support Yellow, while the company mismanaged its finances and failed to take responsibility for its actions. Yellow's management accused the union of using destructive tactics, leading to the company's demise. The trucking company filed for Chapter 11 bankruptcy, aiming to sell assets to cover its debts. The union claims that Yellow wanted to break the company into pieces to avoid its obligations under the collective bargaining agreement. Bankruptcy experts note that unions are rarely involved in pushing a company into insolvency but often end up with little recourse in bankruptcy proceedings.
✈️ AeroCision Seeks to Pay Suppliers $5 Million Amid Bankruptcy. AeroCision, an aerospace supplier, has received interim court approval to pay critical vendors up to $5 million, including recent shipments made before filing for Chapter 11 bankruptcy. The company is facing revenue shortfalls, supply chain disruptions, and debt. It highlights material suppliers and service providers that are essential to its operations during the restructuring process. The decline in revenue is attributed to travel restrictions and reduced demand caused by the COVID-19 pandemic. AeroCision seeks to reorganize and restructure its debt to continue operations. The company's financial challenges mirror those of other players in the aerospace industry.
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.