🚂 Border Crossing Blues
Good morning! Welcome to the December 20th edition of our Supply Chain and Logistics Newsletter! As we approach the end of the year, we're here to keep you updated on the latest developments and trends in the ever-evolving world of supply chain management and logistics.
So, grab your favorite festive beverage and dive into the world of supply chain and logistics with us!☕️❤️
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Railroad Industry Urges Reopening of Key Texas Border Crossings Amid Immigration Activity
Union Pacific and BNSF railroads are calling on U.S. Customs and Border Protection to reopen the crucial rail bridge crossings in Eagle Pass, Texas, and El Paso, Texas, which were closed due to increased immigration activity. These routes are responsible for 45% of Union Pacific's cross-border business and are vital for transporting goods that are essential to the U.S. economy. With limited options for rerouting, each day of closure leads to embargoes on customers' goods in over 60 trains, impacting nearly 4,500 rail cars.
BNSF is also addressing the congestion and supply chain disruptions caused by these closures, as Customs temporarily suspended operations at these crossings due to smuggling organizations using freight trains to transport migrants through Mexico. The timeline for reopening remains uncertain.
Check out today’s featured article from Supply Chain Dive to learn more about why railroads like BNSF and Union Pacific are asking to reopen rail bridges in Texas. Will these closures last longer than expected? Or will they open by the end of the year?
Featured Article
Railroads urge reopening of Eagle Pass and El Paso, Texas border crossings | Supply Chan Dive
“U.S. Customs and Board Protection shut down the vital trade gateways in the wake of surging immigration activity.”
Nikola & Fraud
Nikola Founder Trevor Milton Sentenced to Four Years in Prison for Fraud
Nikola Corp.'s founder and former CEO, Trevor Milton, has been sentenced to four years in prison and ordered to pay a $1 million fine for securities fraud and wire fraud. This decision comes after Milton was found guilty of not being entirely honest about the company's product development and technology. Prosecutors had pushed for an 11-year sentence, saying it was needed to send a strong message to corporate execs, but Milton, who had asked for probation, argued that his inexperience played a role in his actions.
The jury reached its decision in October 2022, following a trial featuring multiple witnesses and evidence, including a viral video that misrepresented Nikola's prototype. What made Milton's case unusual in white-collar fraud cases was his use of public platforms like YouTube to make false statements instead of traditional corporate filings.
EV & New Year
EV Sales Momentum Slows as 2024 Approaches
Electric vehicle (EV) sales in the U.S. have hit the 1 million mark this year, but it looks like the growth is slowing down. Major automakers like General Motors and Ford are putting the brakes on their EV introductions. This slowdown is due to a few things, like the higher price tag on EVs compared to traditional gasoline cars and the fact that EVs tend to spend more time sitting on dealer lots.
Even though EVs can be pricier upfront, some folks argue that when you factor in savings on things like gas and maintenance, they make more financial sense. Still, the prices of EVs and traditional cars are getting closer, thanks to discounts and incentives.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🇲🇽 Mexico's Booming Manufacturing Sector Draws U.S. Investment and Nearshoring Trends. In recent times, Mexico's manufacturing sector has been booming, especially in industries like automotive, electronics, medical devices, home appliances, and machinery. Many companies are looking to move production closer, a trend known as nearshoring. This surge in activity has led to logistics companies investing more in offices and freight routes. The United States has played a big part in this growth, with 14% of all U.S. imports in 2022 coming from Mexico. American firms have also been putting their money into Mexico, making up 42% of the total foreign direct investment in the country since 2006.
🛳 EU Manufacturing Sector Faces Potential Challenges as Ships Divert Away from Suez Canal. With MSC and CMA CGM now following Maersk and Hapag-Lloyd's lead in steering clear of the conflict-prone waters near the Suez Canal, the shipping industry is getting worried about extra expenses and shipment delays. These big shipping players are changing course because of missile attacks in the Red Sea near the Bab al-Mandeb Strait, which put cargo, ships, and crew safety at risk. As a result, insurance costs for ships in this area have shot up, adding to the headaches of the maritime business.
iLevel With You 🏡
More topics for the average American household to consider…
🚂 FAA Approves Beyond-Line-of-Sight Drone Flights for Railroad Track Inspections. The FAA just gave a big thumbs-up to the Massachusetts Department of Transportation (MassDOT), letting them fly their drones beyond what they can actually see for railroad track inspections. MassDOT's Drone Ops Program uses drones to check out more than 1,000 miles of tracks. They're on a mission to keep things safe by checking for stuff like flood damage, storm mayhem, and annoying plants getting too close to the tracks.
😁 Warehousing Industry Aims to Tackle High Turnover with Employee Feedback Solutions. The warehousing biz struggles with holding onto employees – turnover rates top 40%. So, what's the deal? Well, companies are stepping up their game by asking their warehouse crew for some real talk. Check it out - places like Butterfly.ai are dishing out tools that help the frontliners boost team spirit.
👀 Exploring the Benefits of Free Trade Zones. As we kick off a new year with high hopes, Free Trade Zones (FTZs) stand out as hotspots for global trade and economic growth. These special zones, usually in cool spots, come with loads of perks that match the vibe of moving forward. FTZs connect countries worldwide, encouraging teamwork for mutual economic success. They jazz up economies, pulling in investments, spicing up industries, and cooking up job openings.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
👮🏼♀️ Target Closes Stores Citing Retail Theft Concerns, but Investigation Questions Motives. Target recently closed down nine stores in four states, mainly due to theft and organized retail crime concerns. Interestingly, a CNBC investigation revealed that some of these closed stores had lower crime rates than nearby open ones. This has raised questions about whether Target's decision was driven by a desire to push for tougher retail crime laws or to hide financial struggles. In response, Target explained that they've consistently highlighted the impact of theft and organized retail crime on their operations and safety. They also noted that the severity of incidents at the store level may not always be accurately reflected in police data.
📦Amazon Pilots Innovative Retail Packaging to Reduce Cardboard Shipments. Amazon is trying out a new approach: they're testing the idea of sending stuff in their original packaging instead of their usual cardboard boxes with that famous smiley logo. Why? To make sure your stuff stays safe from all the bumps and jolts during shipping. Right now, about 11% of Amazon packages worldwide get this special treatment, but they're thinking about doing it more to save money and cut down on waste.
🚛 House Subcommittee Questions FMCSA on Speed Limiters and Younger Driver Pilot Programs. In a House subcommittee hearing, Robin Hutcheson, who's in charge of the Federal Motor Carrier Safety Administration (FMCSA), got grilled with questions about truck speed limiters and how things are going with the younger-driver apprenticeship program. Hutcheson made it clear that they're just getting started on the whole speed limiter thing, and they haven't figured out the speed or any official rules yet. Some folks in the room were worried about what these limiters might mean for truckers and whether the FMCSA has faith in them to drive safely out there on the road.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 22, 2024, from iLevel Logistics Inc.