Fleets should prepare for the electric infrastructure boom
Good morning! It's Friday, and the supply chain is ready to unwind and let the good times roll... all the way to the delivery truck! 🚛💨 Ready for the weekend?
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Decarbonization interests are growing on a state and federal level - and trucking fleets are beginning to get on board. Electrification efforts are facing a challenging reality though… infrastructure for charging massive semi-trucks. It will likely be many years before the trucking industry can boast true decarbonization, but the road ahead is being paved.
Check out today’s featured article from Fleet Owner to read about the questions some trucking fleets have about infrastructure efforts and what those fleets should prepare for as the transition towards all-electric equipment and operations. ☕️
Featured Article:
Charging infrastructure holds back EV truck production, deployment | Fleet Owner
“Though there isn’t a nationwide charging network to support decarbonization efforts, now is a good time for fleets to focus on tests and plan out an eventual, more sustainable future.”
Regulations & Compliance 📋
FMCSA continues its fight to have unapproved ELDs removed from trucks
Furthering their efforts, the Federal Motor Carrier Safety Administration (FMCSA) is continuing to press for the removal of electronic logging devices that do not meet their minimum requirements. All motor carriers that use ONE PLUS ELD’s ORS device are being told to discontinue the use of the device and to replace the device with an ELD from the FMCSA’s registered device list.
Why does the FMCSA care about ELDs?
The FMCSA has the mandate to reduce commercial motor vehicle crashes and ensure the safe operation of commercial vehicles on the nation’s highways. One way to achieve this goal is to enforce strict Hours of Service (HOS) regulations for commercial drivers, which limit the number of hours they can work without taking a break. ELDs are an effective tool for tracking and enforcing HOS compliance, as they automatically record driving time and provide real-time visibility into a driver’s HOS status. By requiring the use of ELDs, the FMCSA aims to reduce instances of fatigue-related crashes caused by commercial drivers who exceed the maximum number of hours they are allowed to drive without a break. Additionally, ELDs provide a more accurate and reliable way to track and verify HOS compliance, reducing the risk of fraud and ensuring that drivers and carriers are operating safely and responsibly.
Electric Vehicles & World Trade 🔋
The United States is still behind the curve in EV battery material manufacturing
Despite being a major player in the automotive industry, the United States has been slow to invest in car battery materials and production compared to other countries, particularly in Asia. This has put the US at a disadvantage as other countries have been able to establish a strong presence in the market and secure a competitive edge. Established players in Asia, such as Japan, South Korea, and China, have a head start in car battery production and materials and dominate the market. These countries have been able to invest heavily in research and development, build efficient supply chains, and establish strong partnerships with automotive companies, making it difficult for new entrants to compete.
While governments in Asia have provided significant financial and regulatory support to their domestic battery and automotive industries, the US government has been slower to invest in these sectors. This has made it more difficult for US companies to compete with their Asian counterparts, regardless of recent legislation passed by the Biden Administration to make sweeping changes to American benefits for the green energy transition. The US also faces infrastructure challenges, such as a lack of charging stations and battery recycling facilities, which can make it more difficult for the country to develop a strong car battery industry.
Let’s Get Global 🌎
🚚 Global 3PL market is forecasting 2023 revenue of over $2.3 trillion. This is a huge jump from 2022’s valued market of 1.1 trillion. The estimations are being drawn from India-based analytics and advisory company, Astute Analytica. Companies are continuing to outsource their supply chain operations as advanced technology and blockchain technologies expand. Digitalization and increased automation capabilities are increasing the worth of third-party logistics firms on a global scale.
🚢 Maersk expects a 2.5% drop in container shipping volume this year. CEO Vincent Clerc has cited “muted” economic growth as a reason for the decline, especially after exceptionally high freight rates have been normalized over the past two years. With the normalization of demand, comes a decline in container volume. Earnings before interest and tax were $31.2 billion in 2022 and the estimated earnings in the same context are forecasted to be around $2 billion in 2023.
🌎 Global supply chain network designs are the creme de la creme. A well-designed supply chain network can help companies reduce costs by optimizing transportation routes, reducing inventory levels, and minimizing waste. By designing a supply chain network that aligns with business objectives and takes into account factors such as transportation times and costs, companies can improve the efficiency of their supply chain operations. A global supply chain network also allows companies to respond to changes in demand and supply more quickly and effectively.
iLevel With You 🏡
More topics for the average American household to consider…
🤑 If we’re in a recession, why are unemployment rates so low? It’s a strange conundrum, indeed. Economists are scratching their heads at a 3.4% unemployment rate while the rest of the economy teeters on the edge. The housing market is tanking, inflation is consistently difficult, and tech companies some to be dropping employees like flies. Some economists suggest that despite inflation taking a chunk out of any wage gains made in the past year, the slowing wage growth is probably a good thing for the economy's health. The consumer price index jumped 6 ½ points year-over-year in Dember, bringing it back to a point similar to pre-pandemic 2019.
😢 Gallup poll results say half the country feels financially crippled. The worst poll results since 2009, most Americans are feeling “worse off” now than they were last year - an even greater number, 61%, of those who make less than $40,000 are financially stressed. Approximately 60% of Americans do have hope for the future, however - claiming that they expect their financial concerns will be eased by the end of 2023. Optimism for economic reform is not unusual during difficult times and can often likely help the economy, in the long run, avoid disaster.
🛍️ Retail companies want to engage with customers with their return policies. By offering a simple and convenient returns process, retailers can improve customer satisfaction and build loyalty. Retailers can also personalize the returns experience by offering customers a range of options, such as in-store returns, pre-paid shipping labels, and online returns portals. By using data from returns to understand customer preferences and behavior, companies can use this information to improve customer engagement. For example, retailers can use returns data to suggest similar products to customers or to offer them special promotions.
✈️ Southwest COO says, “we’re sorry”, to the Senate. After being called to a Senate panel on Thursday, Chief Operations Officer for Southwest Airlines Andrew Watterson apologized to Congress for the holiday issues that stranded passengers across the United States. The apology was followed up with the airline’s assurances that the issues were not forecasted or done with malice and that the company was focusing on an effort to revamp its software to avoid similar problems in the future. The holiday travel issues caused the airline to lose $800 million in pretax earnings, a wild blow after several difficult pandemic-riddled years.
🥚 Egg-cellent news: wholesale egg prices have dropped 50% since December. While you may be balking at the price tag on eggs at the grocery store, wholesale prices are dipping drastically. This means that the shelves at the grocery stores may be showing a price cut soon as retailers adjust to the dip. The egg supply has been severely disrupted by the world bird flu in American history which has resulted in the culling of millions of laying hens. Usually, it takes about four weeks for retail prices to adjust to any wholesale decreases.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
📦 UPS subsidiary Ware2Go is expanding. The subsidiary provides e-commerce and small business owners with access to a network of warehouses, allowing them to store their products and ship them to customers more efficiently. Affiliated merchants can store their products in a network of Ware2Go-affiliated warehouses, reducing the need for them to manage their own storage facilities and shipping operations. With the latest warehouse expansion, UPS is looking to accommodate Amazon merchants through a partnership with the e-commerce platform Whitebox.
🤨 Foldable shipping containers - say what? Station has created shipping containers that fold similar to an accordion and CEO George Kochanowsky is showing off their true potential. These stackable containers could likely be used at ports to ease congestion issues and reduce carbon emissions. Some experts have claimed that typical shipping containers are now outdated technology, with their structure being now over 70 years old.
♻️ Companies are ramping up green energy solution investments. Despite the challenges associated, investing in energy-efficient technologies and practices can reduce energy costs and increase profitability for companies. Companies are increasingly aware of the need to reduce their carbon footprint and limit their impact on the environment and investing in energy-transition solutions can help them meet their sustainability goals and reduce their environmental impact. the government is also offering incentives and subsidies to companies that invest in renewable energy and energy-efficiency technologies, making it more economically attractive to invest in energy-transition solutions.
💡 Micronuclear power may be the way of the future. Colleges like Purdue and Duke are refocusing efforts on developing this new fuel tech. Micronuclear power refers to small-scale nuclear power plants that have a generating capacity of less than 300 MW. Unlike traditional large-scale nuclear power plants, micro-nuclear power plants are designed to be modular, scalable, and suitable for deployment in a variety of locations, including remote and off-grid areas.
🌎 Container imports are now less than January 2019 levels. At just over 2 million TEUs in January 2023, containerized imports are now 16.1% less than one year ago. Since January 2019, it’s been a 0.3% drop. This is the first month since the beginning of the pandemic that the container import volume in the United States has declined. Some analysts are pointing to this decline as normalizing trade behavior.
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.