✈️ Alaska's Hawaiian Adventure
Good morning! Welcome to the latest edition of "The Workday Dash," your go-to source for all things supply chain and logistics. As we dive into this month, we are excited to spotlight an essential aspect of our industry—food service safety. May marks Worldwide Food Service Safety Month, a time when we celebrate the diligent efforts and innovation in ensuring that the food we enjoy arrives safely on our plates.
So, buckle up and get ready for an informative journey through the intricacies of food service safety in the world of supply chain and logistics. 🍔🚛
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Alaska Air Group's $1.9 Billion Bid to Acquire Hawaiian Airlines Faces Regulatory Hurdles
Alaska Air Group plans to acquire Hawaiian Airlines in a $1.9 billion deal, aiming to address financial struggles faced by Hawaiian due to competition and disruptions. Alaska will buy Hawaiian at $18 per share and absorb $900 million of its debt, though Alaska's shares dropped by 17% in response. Regulatory approval is crucial for the merger, and both airlines' flight attendants' conditions will be evaluated by the Association of Flight Attendants-CWA. The combined company will maintain both brands and operate from Seattle, serving 138 destinations with 365 airplanes.
Check out today’s featured article from CNBC to learn more about Alaskan Airlines and what they are doing to acquire Hawaiian Airlines. Will this be the deal of a lifetime?
Featured Article
Alaska Airlines agrees to buy Hawaiian Airlines in $1.9 billion deal | CNBC
“Alaska Air Group has agreed to buy rival Hawaiian Airlines in a $1.9 billion deal, setting up another potential regulatory battle in the second proposed airline merger in less than two years.”
Law & Branding
Nestlé and Kraft Prevail Over Egg Producers in Price-Fixing Lawsuit
A unanimous jury has ruled that several major egg producers engaged in a conspiracy to fix egg prices between 2004 and 2008, delivering a significant victory to food giants like Kraft Heinz and Nestlé. This lawsuit originated in 2011 when food industry giants, including Nestlé, Kraft, General Mills, and Kellogg, alleged that egg producers Cal-Maine Foods and Rose Acre Farms, along with trade groups United Egg Producers and U.S. Egg Marketers, colluded to restrict the supply of hens and prematurely euthanize them between 1998 and 2008.
The food manufacturers claimed that this scheme led to higher egg prices, impacting their profits, with jurors concluding that the conspiracy lasted for four years, concluding in 2008.
Mining & EV
Rio Tinto's $100 Billion Opportunity is Riding the EV Boom
Copper mines like Rio Tinto's Bingham Canyon mine play a crucial role in America's shift towards clean energy, given the increasing demand for copper, a key component in electric vehicles (EVs), expected to double from 25 million metric tons to nearly 49 million metric tons by 2035. However, mining companies, including Rio Tinto, face a range of challenges such as addressing local stakeholders' concerns, mitigating environmental impacts, and operating in remote areas worldwide. Maintaining current production levels amid these complexities is becoming increasingly challenging for these companies.
Rio Tinto, a major global mining firm based in Australia and the UK, with projects in 35 countries, is strategically positioned to benefit from the growing demand for critical minerals, including copper, used in EVs and various industries. CNBC delves into Rio Tinto's Utah operations to explore how the company is addressing these challenges and expanding its critical minerals business.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🇨🇦 Canadian Supply Chain Law Puts Executives on Alert. Beginning on January 1, 2024, Canada will enforce a new supply chain law, the "Fighting Against Forced Labour and Child Labour in Supply Chains Act," requiring brands, retailers, and importers to address child and forced labor issues within their supplier networks. This law applies to both domestic and international businesses that meet specific criteria and non-compliance could result in substantial reputational and financial consequences, including border detentions or import bans.
🛳 Container Shipping Giants Unite to Advocate Stricter Carbon Regulations. CEOs of five prominent maritime shipping companies, including Maersk and CMA CGM, have jointly called for stricter greenhouse gas emissions regulations in their industry at COP28. They stressed the significance of meeting the IMO's GHG targets and accelerating the transition from fossil fuels to green alternatives to mitigate costs and address climate-related risks.
🌊 Unlocking the Hidden Challenge and Opportunity of Fresh Water in Global Supply Chains. Shipping delays at the Panama Canal this year, caused by drought-related lower water levels, have highlighted the importance of freshwater in global supply chains. The limited number of ships that can pass through due to the dry conditions has disrupted supply chains, impacting product availability and retail forecasts, emphasizing the critical role of freshwater in ocean freight and supply chain management.
iLevel With You 🏡
More topics for the average American household to consider…
🛳 Maersk Reaches Out-of-Court Settlement in Ever Given Case. Maersk Line has reached an out-of-court settlement with the parties it sued over damages resulting from the grounding of the Ever Given in the Suez Canal in March 2021. The terms of the settlement were not disclosed, but Maersk had originally sought $40 million in damages from the ship's owner, Shoei Kisen Kaisha, and charterer, Evergreen.
♻️ Fashion Supply Experts Share Crucial Green Sourcing Tools. At the Textile Exchange 2023 Conference, a panel discussed strategies for fostering sustainability in the fashion supply chain. The experts highlighted the importance of building strong, long-term partnerships with suppliers, collaborating on certifications like GOTS and GRS, and working together to innovate and adopt sustainable practices, benefiting both brands and suppliers while advancing the overall sustainability of the fashion industry.
🚛 Gore-Backed Group Unveils Tool for Decarbonizing Supply Chains. A global coalition led by Al Gore has launched Climate TRACE, a comprehensive database that monitors greenhouse gas emissions from individual sources, including power plants, steel mills, and mining operations. Companies like Tesla, Boeing, and General Motors intend to leverage this data for more accurate and granular insights into emissions in their supply chains, as it offers improved transparency compared to self-reported data from suppliers. Climate TRACE utilizes machine learning, satellite technology, and other tools to detect and track emissions, offering confidence and uncertainty estimates for each asset in its database.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
💰 Sen. Padilla Advocates for Overtime Pay for Truckers. Sen. Alex Padilla has introduced the Guaranteeing Overtime for Truckers Act to secure overtime pay for truck drivers who work over 40 hours a week, addressing the current motor carrier exemption under the Fair Labor Standards Act. While facing criticism from the American Trucking Associations, proponents argue that this bill would prompt the supply chain to better value drivers' time, emphasizing the importance of fair compensation for their demanding work and advocating for change in the industry's norms.
🤖 Responding to Market Turbulence and Increasing Resilience. Companies are increasingly turning to technology to transform their logistics functions in response to turbulent market forces, aiming for greater flexibility, predictability, efficiency, and resilience. A McKinsey survey of over 250 logistics leaders shows that most respondents have sustained or increased their technology investments since 2020, leaving laggards with less room to maneuver. Shippers and providers are grappling with complex and crowded technology landscapes, focusing not only on the value technology brings but also on how it fits into their enterprise-level tech systems, operating models, and logistics processes.
💵 Logistics Boom Spurs $1.2 Billion E-commerce Firm's Relocation to Texas. Cart.com is moving its corporate headquarters from Austin back to Houston, Texas, in search of talent with logistics and supply chain experience. The relocation aims to tap into a broader talent pool, improve corporate office connectivity, and leverage Houston's logistics and supply chain capabilities to enhance the company's online commerce and logistics solutions.