🥲 Tesla's Collision Conundrum
Good morning! Greetings, supply chain enthusiasts, and welcome to our December 21st edition of the Supply Chain & Logistics Newsletter! Today is not just any ordinary day; it's National Look on the Bright Side Day! As we navigate the complexities of the supply chain world, where challenges can sometimes seem endless, let's take a moment to reflect on the positive aspects, innovative solutions, and remarkable achievements that continue to drive our industry forward.
So, let's kick off this newsletter with a dose of optimism and a commitment to finding the silver linings in every logistical puzzle! ☀️😁
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Tesla Tops List for Highest Accident Rate Among US Car Brands, Study Finds
A recent study by LendingTree looked into car accidents and found that Tesla drivers in the U.S. had the highest accident rate among 30 car brands in the past year. According to the study, about 24 accidents happened per 1,000 Tesla drivers from November 2022 to November 2023. Ram drivers came in second with roughly 23 accidents, followed by Subaru drivers with about 21 accidents per 1,000 drivers in the same timeframe. Meanwhile, drivers of Pontiac, Mercury, and Saturn cars had fewer than 10 accidents per 1,000 drivers.
The study also revealed that BMW drivers had the highest rate of driving under the influence (DUI), with about three DUIs per 1,000 drivers in a year, which was roughly twice the rate of DUIs among Ram drivers, who ranked second.
Check out today’s featured article from CNBC to learn more and to see the list of the best and worst drivers in the U.S. by auto brand. Will Tesla drivers be trumped in their number one spot? Who is the best driver in your opinion?
Featured Article
Tesla drivers had highest accident rate, BMW drivers highest DUI rate, study finds | CNBC
“With 24 accidents per 1,000 drivers during the period from mid-November 2022 to mid-November 2023, Tesla drivers clocked in with the worst accident rate in the U.S., according to a study by Lending Tree, ahead of Ram and Subaru drivers.”
White House & Supply Chain
White House Launches Council on Supply Chain Resilience to Tackle Ongoing Challenges
The White House had its first-ever meeting of the Council on Supply Chain Resilience to deal with the ongoing supply chain problems. They stressed how important it is to make supply chains flexible and adaptable, not just having extra stuff lying around.
The Council is taking over 30 actions to make supply chains stronger and is teaming up with businesses and global partners. Key points include the need for supply chains to stay resilient, optimize inventory, share data for transparency, test for tough times, and recognize the link between supply chains and climate change.
FedEx & Revenue
FedEx Experiences 10% Stock Drop Due to Weaker Demand Impacting Revenue Outlook
FedEx's stock took a hit - dropping around 10% - as they lowered their revenue outlook due to weaker demand affecting sales. The company is now expecting a slight drop in revenue for the fiscal year, a change from their earlier prediction of flat sales. This is the second time in a row that FedEx has adjusted its sales expectations.
The company's Express unit faced difficulties in the quarter, with reduced demand and customers choosing cheaper services. Still, FedEx hopes to improve its operating income by cutting costs.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🌊 Drought Forces THE Alliance to Shift Routes from Panama to Suez Canal, Impacting Transit Times. Because of a serious drought in the Panama Canal area, THE Alliance (which includes Hapag-Lloyd, Ocean Network Express, and Yang Ming) is changing its route for ships heading to the U.S. East and Gulf Coasts. This switch is likely to make shipments take 7-10 days longer for everyone with cargo on routes EC1 and EC2. The Panama Canal is having problems because of low water levels, so they're limiting the size and weight of ships, which is why the route is changing.
🛳 Nearshoring Takes the Lead in Supply Chain Restructuring Plans, Survey Reveals. A new study called "Nearshoring Study 2023" by Inverto GmbH reveals that 42% of top-level folks looking to revamp their supply chains are eyeing nearshoring as their main strategy, while 10% are thinking about friendshoring. This survey, done in October 2023, shows that 63% of those surveyed have supply chain restructuring on their to-do list for the next five years. And it looks like Eastern Europe, especially the Czech Republic and Poland, are becoming hotspots for nearshoring.
iLevel With You 🏡
More topics for the average American household to consider…
🚛 US DOT Multimodal Office Head's Involvement in AI Truck Parking Project. Allison Dane Camden, who used to work with the Washington State Department of Transportation, helped kickstart an AI project with the University of Washington. It's all about helping truckers find parking spots on Interstate 5. Now, she's in charge of a new office, thanks to the Bipartisan Infrastructure Law, where they're working on big-picture solutions for national freight problems.
♻️ VinFast Plans to Repurpose Old EV Batteries with Recycling Initiative. VinFast, the electric vehicle maker from Vietnam, has teamed up with Japan's Marubeni to give old EV batteries a second life. They're taking those used batteries and turning them into Battery Energy Storage Systems, which are handy for storing green energy. This is a cool way to deal with the question of what to do with old EV batteries as more and more folks drive electric cars. It's like giving these batteries a new job in the renewable energy field!
🚗 Transformations in the Automotive Industry's Supply Chain and Workforce Are Underway For 2024. In 2024, the car biz is gearing up for some supply chain changes. They're talking about paying workers more because it's tough to find and keep the skilled folks they need. Companies are also bringing stuff back closer to home, looking at North American suppliers to make things smoother and cheaper. Plus, they're going high-tech with blockchain and fancy software to see what's happening in the supply chain. And don't forget, electric cars are still getting lots of love, even though there are some roadblocks to figure out, like better batteries and chargers.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🎀 State-of-the-Art Industrial Facility Near Port of Savannah Unveiled in Ribbon-Cutting Ceremony. Just a heads up, on December 5, 2023, folks from CenterPoint Properties, PortCity, and Garden City, GA, threw a little party to open up PortCity's new 348,000-square-foot warehouse. It's only a couple of miles from the Port of Savannah. This is part of a bigger project by CenterPoint called the CenterPoint Industrial City Gardens, and when it's all done in late 2024, it'll be like one million square feet of warehouse space and some big container yards. It's a hot spot for businesses, especially because it's so close to the Port of Savannah's Garden City Terminal.
🧑🏽⚖️ Colorado Supreme Court Disqualifies Trump from Presidential Race Under 14th Amendment. The Colorado Supreme Court made a big decision, saying that Donald Trump can't run for president in their state because of his actions during the January 6th Capitol attack. It's the first time this has ever happened, and now Trump is going to the U.S. Supreme Court to fight it.
👨🏽💼 OOIDA Calls for Further Broker Regulation Reforms. The Owner-Operator Independent Drivers Association (OOIDA) has asked the Federal Motor Carrier Safety Administration (FMCSA) to take another look at their new rule about broker and freight forwarder financial responsibility. OOIDA thinks it's a good step, but they want more transparency when a broker's financial responsibility is under $75,000. They also recommend giving surety providers and banks a week to check and confirm claims, among other changes.