2023 federal budget includes $3.4B funding increase for DOT
Good morning! Happy Friday - we’re ready to celebrate this weekend! 🎆
It’s time! Congress has approved the federal spending budget for the 2023 fiscal year. The Department of Transportation is making away with an increase higher than that of what was specifically requested by the White House - a total of $106.6 billion to be split up among the DOT and its agencies.
The DOT is responsible for ensuring that the country's transportation systems are safe, efficient, and accessible to all. To do this, the DOT works to improve the safety, efficiency, and reliability of the country's transportation systems through a variety of programs and initiatives, including the development and implementation of regulations, the provision of financial assistance to states and localities, and the promotion of transportation research and innovation.
Check out today’s featured article from TT News to read about The $1.7 trillion Consolidated Appropriations Act of 2023 and what’s being allocated to the Department of Transportation as we enter the new year. ☕️
Featured Article:
DOT Gets Funding Increase in $1.7 Trillion Federal Budget | TT News
“The spending budget for the federal government’s fiscal 2023 includes an increase in funding for the Department of Transportation that is higher than the level requested by the White House.”
Ports & Industry Forecasting 🚢
Port congestion problems eased in Oakland after November drop in imports
Compared to 2021, November imports and exports were down in November of 2022 at (-17.4%) and (-12.3%) respectively. Port of Oakland Maritime Director Bryan Brandes and other executives are noting that the decline in container traffic was expected and the port is looking to use this to its advantage. Congestion and inefficiency problems can now be addressed without container traffic swamping operations concerns.
The Port of Oakland is a major port located on the western coast of the United States in Oakland, California. It is the fifth busiest container port in the United States and a key gateway for international trade on the Pacific Rim. The port handles a diverse range of cargo, including containerized and non-containerized freight, automobiles, and bulk commodities such as grains, cement, and petroleum. It is a major economic engine for the region and is responsible for supporting tens of thousands of jobs in the Bay Area.
Ports & Federal Grants 💰
The Port of LB’s Channel Deepening Project approved by the Biden Administration with new bill
The Port of Long Beach’s Channel Deepening Project has been officially approved - along with four other projects nationwide - by the recently passed Water Resources Development Act (WRDA) of 2022. This piece of legislation authorizes federal flood control, navigation, and ecosystem improvements. Board of Harbor Commissioners President Sharon L. Weissman celebrated the victory and acknowledged the government’s efforts to improve international trade through the ports with the project.
The Port of Long Beach's Channel Deepening Project is a dredging and excavation project aimed at deepening and widening the shipping channels at the port. The project is designed to accommodate larger vessels and increase the efficiency of the port by allowing ships to easily access the terminal facilities. This channel-deepening project is intended to help the port remain a vital part of the global supply chain and to support the economic growth of the region.
Let’s Get Global 🌎
Slow Down Eating GIF By Carnival Cruise Line via GIPHY
🇯🇵 Japan’s manufacturing output continues to shrink. For the third consecutive month, the country’s production levels have plummeted below pre-pandemic levels as global demand wanes. Japan's manufacturing firms are trending toward cautious movements as the possibility of a recession looms for its economy. Kota Suzuki, an economist at Daiwa Securities, has voiced concerns over the drop and advised China’s infection surge may play a part in further declines. Japan has a long history of industrialization and is known for its advanced technology, high levels of productivity, and high-quality products. The manufacturing sector in Japan is diverse and includes a range of industries, such as automotive, electronics, chemicals, machinery, and metals.
🇷🇺 Russia’s gas exports to Europe have plummeted. After Europe (Russia’s largest customer for gas exports) cut ties with the country over the war raging in Ukraine, the exports to the region have reached a post-Soviet low. Dropping more than 45% since 2021, exports from Russia’s pipeline to China via the Power of Siberia pipeline had also been affected. Previously, Europe and Russia mutually benefited from the partnership due to energy security, economic benefit, climate change, and political considerations. Times have changed.
🇨🇳 China’s Covid variants are “fairly unknown” to the U.S., says former FDA commissioner. Scott Gottlieb spoke on CNBC’s ‘Closing Bell: Overtime’ in response to the latest Covid rules laid out by the United States federal government. Travelers from China will now be required to have a negative Covid test in order to enter the United States. This comes in light of massive Covid surges spreading throughout the country after Covid lifted some of its strict policies.
iLevel With You 🏡
More topics for the average American household to consider…
❄️ Alaska is granted exemption from certain CDL technique tests. Due to much of Alaska being remote communities, Alaska Gov. Mike Dunleavy asked that the Federal Motor Carrier Safety Administration waive certain testing requirements for their drivers that will not be necessary for them driving through most areas of the state. The FMCSA agreed to exempt drivers demonstrating some of these proficiencies for two years in fourteen areas of Alaska: Bethel, Prince of Wales Island, Haines, Ketchikan, King Salmon, Kodiak Island, Kotzebue, Nome, Mitkof Island, Sitka, Skagway, Unalaska Island, Utqiavik and Wrangell Island.
✈️ Southwest Airlines had a rough week... but so did their customers. Southwest hasn’t yet seemed to recover after an extremely challenging holiday weekend of winter storms and surging travelers. While the blizzards, rain, and fog created some headaches for other airlines such as Alaska, American, and Delta… Southwest ran into the issue of its system completely failing. As a result, over half of the airline’s flights have been canceled since December 22nd.
⛽️ Gas prices will be difficult to predict in 2023. The past twelve months have consisted of all-time highs and wild variating fluctuations as sanctions on Russian oil sent prices of crude through the roof early in the year. The wings in gasoline prices have been crippling for many consumers and inflationary problems have plagued families. A wide variation in gas taxes, average driving time for citizens, and minimum wage across states also play a part in varying gas prices.
GET SMART 🧠
Ramp up that brain power for these advanced topics…
⚖️ It is very possible to achieve both lean and agile supply chain management. Lean supply chain management is more focused on efficiency and cost reduction, while agile supply chain management is more focused on flexibility and adaptability. It is often possible to incorporate elements of both approaches in a supply chain management strategy, depending on the specific needs and goals of the organization.
📉 Container imports dropping has its pros and cons. Some potential pros of a drop in container volumes for ports may include reduced congestion, lower operating costs, and greater flexibility. However, some potential cons of a drop in container volumes for ports may include reduced revenue, increased competition, and decreased utilization of infrastructure. Overall, the impact of a drop in container volumes on a port will depend on the specific circumstances of the port and its ability to adapt and respond to the changes.
🚛 Spot rates had a record jump this year before the holiday season. Trucking spot rates often surge before the holidays due to an increase in demand for shipping and logistics services. During the holiday season, there is typically a higher volume of e-commerce orders and retail purchases, which results in more goods being shipped across the country. This increase in demand for shipping and logistics services can put pressure on trucking capacity, leading to higher rates for trucking services.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 28, 2024, from iLevel Logistics Inc.