Union Pacific railroad’s debate with the unions isn’t over yet



Good morning! Happy Thursday, folks. 💡

“The work of the individual still remains the spark that moves mankind ahead even more than teamwork.”

- Igor Sikorsky

Union Pacific CEO Lance Fritz is having a tough few months. The Surface Transportation Board is ruling that the railroad is lacking in detail regarding why it utilized a massive amount of embargoes over the past twelve months and is putting a magnifying glass over the railroad’s staffing practices. Union membership data is vastly differing from the data being presented to the board by the railroad, and drawing many questions to the forefront.

Check out today’s featured article from CNBC to read about the ongoing troubles of the Union Pacific railroad as it faces scrutiny over the usage of 1,000 embargoes in 2022. ☕️

Featured Article:

Unions, rails clash over hiring data as Union Pacific faces regulatory heat in Washington | CNBC

“The strike was averted, but tensions between unions and class I freight railroads continue to run high.”


Ports & Containers 🚢

Port of Savannah congestion eases after November volume drops

With seventeen container ships sitting in a vessel queue outside of the Port of Savannah, Georgia’s harbor, it’s a pleasant relief after the reported thirty ships in line in October. November’s dip in container flow is assisting the Georgia Port Authority after the overwhelming rush of rerouted containers to the East Coast during the holiday season.

The container traffic is born out of shippers’ unease regarding potential west coast labor disruptions and the economic conditions have now caused a reduction in container demand. It’s weirdly hoped by experts - including GPA Executive Director Griff Lynch - that the container trade at the United States ports is beginning to return to a more sustainable pattern of growth after a wild pandemic-driven couple of years. The 43% decline in the month of November for Savannah’s port is an indication of that normality.

Read more from DC Velocity ▶


Let’s Get Global 🌎

A cartoon dog dressed as a baseball player swings and misses with a bat, strikes out.

Uh Oh Oops GIF By Boomerang Official via GIPHY

🚝 Omicron, who? UK train strikes are what’s affecting retailers. The variant of COVID-19 that was said to destroy the Christmas season for retailers in 2021 is now in the backseat as the latest wave of strikes hit the United Kingdom’s rail network. On December 13th, thousands of members of the National Union of Rail, Maritime, and Transport Workers walked off the job with plans to continue the labor strike through the 15th, 16th, and 17th of December. This seems to have caused a downturn in the country’s retail numbers, clocking in with a decline of 6.4% year-over-year.

🔋 China will likely hold a dominant position in the electric vehicle sector for years to come. By being the top dog in mining and refining lithium, nickel, graphite, rare earth elements, and other essential green-energy minerals - China has led the pack for years. The Biden Administration has passed serious legislation meant to destabilize China’s chokehold on the industry and increase its domestic capabilities in mining and refining. However, China houses companies and firms that are already supported by the country’s strong EV market.

🤖 Global executives are expecting AI spending to double over the next three years. There is a desperate need growing on a global scale for trusted artificial intelligence as data responsibility comes to the forefront of consumer concerns. In an IBM Institute for Business Value (IBV) survey, 81% of consumers noted that they are concerned with how companies are using their data over the past year and 75% say they are unlikely to trust organizations with handling their personal and private information.


iLevel With You

More topics for the average American household to consider…

🦴 Pet retailer Chewy is focusing on automated fulfillment network development. In order to save on growing costs and shorten the shipping distances, 30% of the company’s Q3 volumes were shipped directly from their in-house automated fulfillment center. Chewy CEO Summit Singh said in a recent earnings call that this move increased the volumes by 10% compared to this time last year. Two additional fulfillment centers are being planned to launch within the next year and a half, according to Singh.

🔋 $12 million has been granted to Wisconsin-based Imagen Energy for fast-charging stations. The U.S. Department of Energy (DOE) was awarded this grant to assist in developing a better infrastructure at grocery stores, apartment buildings, and other frequently-visited locations for electric vehicle charging. Fast chargers can typically produce 15-20 times the amount of power generated by a charger found along interstate highways.

🚛 Harassment is prevalent in the trucking industry, according to a recent survey. The Federal Motor Carrier Safety Administration’s Crime Prevention for Truckers conducted the study which resulted in which 59% of women, 52% of minority males, and 51% of nonminority males reporting being a victim of harassment. This type of harassment included being on the receiving end of threatening words and one-third of women reported sexual harassment. By enhancing safety precautions at existing trucking facilities, proving better truck parking, and allowing firearms - many truckers feel they will be in a safer position.


GET SMART

Ramp up that brain power for these advanced topics…

✈️ The air cargo industry needs a new business model. Charles Edwards, vice president of SASI World, is making his opinion known in a recent Supply Chain Management contribution. There, Edwards encourages the industry to create new services and distribution channels within its supply chain, focus on complete transparency, and ensure speedy deliveries to its customers.

📱 Advanced technologies are at our fingertips: why not use them? Inflation, war, and pandemics have all forced global supply chains to reevaluate their most pressing issues over the past few years. But among the chaos, immensely complex and advanced technologies have developed and come onto the scene, offering companies new strategies to distribute decision-making and expand their range of choices going forward.

🤖 Self-driving pilot program from Aurora and Uber Freight expands. In a move meant to likely capitalize on the holiday rush, the company partnership is utilizing a new 600-mile commercial land between El Paso and Fort Worth, Texas for its self-driving vehicles. The self-driving vehicles are on the road for the program and engineered with a sensor suite including radar, standard lidar, and a company-exclusive “Firstlight Lidar”. This Firstlight Lidar is reportedly programmed to visualize twice the distance ahead and at a quicker speed.


Warehousing 📦

The Biggest Trends in Warehouse Management in 2023 | Supply Chain Brain

Supply Chain Brain’s “Think Tank” tackles the topic of warehouse trends as we enter the new year - what can we expect?


Sustainability ♻️

Fresh Del Monte is taking a lead on sustainability | Logistics Management

Logistics Management contributor Bob Treblicock writes about the sustainability report released by the leader of the fresh and fresh-cut fruits and vegetable industry, Fresh Del Monte.

Evergreen, Shreyas jumpstart boxship scrapping | Container News

Container News Asia Correspondent Martina Li writes about ship owners Τaiwan’s Evergreen Marine Corporation and Shreyas Shipping & Logistics’ decision to demolish three box ships.

EXPLAINER: Why fusion could be a clean-energy breakthrough | AP News

AP News contributor Doug Glass and Michael Phillis write about the recent breakthrough in fusion research.


Safety 🚢

Crew ‘Feared for Their Safety’ During Transpacific Voyage on ‘Unseaworthy’ Containership | G Captain

G Captain contributor Nick Savvides writes about the Sim Iberia containership that crossed the Pacific Ocean with a. crew that fears for their safety.


Sales 🧾

November Class 8 Sales Second-Highest of 2022 | Transport Topics

TT News Senior Reporter Roger Gilroy writes about the second-highest reported Class 8 US retail numbers in November 2022.


Repair & Maintenance 🧰

How telematics is changing maintenance | Fleet Maintenance

Fleet Maintenance contributor Melanie Simard writes about the services required even as trucks begin to evolve with better technology.


Regulation ⚖️

How to build on the success of past railroad deregulation | Reason Foundation

Reason Foundation Senior Transportation Policy Analyst Marc Scribner writes about what congress could do to protect the Staggers Act and help advance the rail industry.

Industry Forecasting 📊

Container Import Volumes Dropped in November | MH&L News

MH&L Staff writes about the declining volumes in the month of November at the ports, easing some of the pressure.

Impacts Facing The Supply Chain Ahead of the Holiday Season | All Things Supply Chain

An All Things Supply Chain guest blogger writes about the supply chain issues that have affected the industry during peak season.

Brokers remain resilient despite continued freight market softening in the third quarter | AJOT

An AJOT contributor writes about the economic market’s third-quarter softening.

Most firms 'unprepared for supply chain disruption' - BCG | Supply Chain Digital

Supply Chain Digital contributor Sean Ashcroft writes about a recent Boston Consulting Group study suggesting that most companies are not prepared for disruptions.

Market Update: Another challenging year ahead for trucking | DAT

DAT contributor Dean Croke writes about part of an interview conducted on a recent DAT Freight & Analytics show between Lee Klaskow, Senior Analyst, the Transportation and Logistics at Bloomberg Intelligence, Ken Adamo, Chief of Analytics, and Dean Croke, Principal Market Analyst.


Fuel Tech 🚛

Fuel Economy Numbers Flatline in Latest NACFE Report | Trucking Info

Trucking Info contributor Jack Roberts writes about the annual Fleet Fuel Study unveiled by the North American Council for Freight Efficiency.


Business Strategy 💡

4 Changes Freight Brokers Much Make To Remain Competitive | Let's Talk Supply Chain

Let’s Talk Supply Chain contributor Jessie Bumgarner writes about the changing broker industry and what brokers can do to evolve.


Electric Vehicles 🔋

Kuehne+Nagel Deploys EVs in New Fleet-as-a-Service Offering Path to Fleet Electrification | Trucking Info

Trucking Info wrote a news release regarding the new partnership between Zeem Solutions, a zero-emission “fleet-as-a-service” provider, and global logistics firm Kuehne+Nagel.


Inflation 💸

Americans are draining the money they saved during the pandemic | VOX

Vox contributor Madeleine Ngo writes about the faltering savings accounts of American citizens who had been saving their money throughout the pandemic.


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