Buttigieg urges Norfolk Southern to support East Palestine community after derailment
Good morning! As we celebrate National Pancake Day, it's a great opportunity to reflect on the importance of efficient supply chain management in ensuring that the ingredients for our delicious pancakes make it from farm to table in a timely and sustainable manner. So sit back, grab a stack of pancakes, and let's dive in! 🥞
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The 150-car Norfolk Southern train pulling 20 railcars filled with vinyl chloride, Ethylhexyl acrylate and isobutylene that derailed in Ohio earlier this month is still causing quite the stir. Residents that were asked to evacuate due to the resulting carcinogen spill have now been allowed to return home… but questions remain. According to the Ohio Department of Natural Resources, the incident has killed 3,500 fish and there are circulating rumors of dead chickens and pets on social media. Pete Buttigieg has penned a letter to the leadership at the railroad, imploring that they “do right” by the local affected community.
Check out today’s featured article from AP News to read about The Department of Transportation Secretary’s urgent plea to Norfolk Southern after the East Palestine rail disaster: support the community by increasing rail safety standards. 🚂
Featured Article:
Buttigieg warns Norfolk Southern to support Ohio community | AP News
“Transportation Secretary Pete Buttigieg sent a letter Sunday to the CEO of Norfolk Southern, warning that the freight rail company must “demonstrate unequivocal support for the people” of East Palestine, Ohio, and surrounding areas after a fiery train derailment led to the release of chemicals and residents expressing concerns about their health.”
Electric Vehicles & Clean Energy ♻️
Will our decarbonized future depend solely upon EV transition? Some disagree.
While electric vehicles are a promising technology for reducing greenhouse gas emissions and achieving a decarbonized future, there are several challenges that may prevent the US from solely depending on them. Firstly, the infrastructure required for the widespread adoption of EVs is still developing. While charging stations are becoming more common, they are not yet as ubiquitous as gas stations, making it difficult for EVs to travel long distances without frequent stops for recharging. Additionally, many households and apartment buildings do not have access to convenient charging infrastructure, which could limit the adoption of EVs among those who do not have the means to install their own charging stations.
Secondly, the supply chain for electric vehicles relies heavily on rare earth minerals, such as cobalt and lithium, which are primarily sourced from China and other countries with unstable political climates. This dependence on foreign sources of critical materials could pose a risk to national security and economic stability, especially if there were to be disruptions in the supply chain.
Thirdly, the production of EVs still requires significant amounts of energy and resources, including the extraction of raw materials, manufacturing of batteries and components, and transportation of finished products. While EVs are generally more energy-efficient than gasoline-powered vehicles, the carbon footprint of their production can still be significant if not managed properly.
TMS & Company Culture 🎉
Massive layoffs at Convoy due to refocus on profitability result in Atlanta office closure
In order to regain control of the company’s operational model and develop more profit, Convoy CEO and co-founder Dan Lewis has announced through a LinkedIn post that the company is thinning its labor force. Due in part to the layoffs, Convoy can no longer justify its Atlanta office and will be closing the space.
Convoy is a technology company that offers a digital freight network designed to connect shippers with carriers to move goods more efficiently and affordably. Convoy's platform uses machine learning algorithms to match shippers with carriers based on factors like capacity, location, and pricing preferences. Shippers can use the platform to quickly obtain quotes, schedule pickups, and track their shipments in real time. Carriers can use the platform to find loads, manage their schedules, and receive fast payment for their services.
Let’s Get Global 🌎
🇵🇰 Pakistan’s failing economy is forcing ports to shut down operations. Unable to fund imports due to the country’s depleting foreign currency reserves, Pakistan is abandoning containers full of goods at the ports. Additionally, the country’s largest companies have ceased operations due to the extreme shortage of raw materials and forcing the economy is face debt default if the trajectory doesn’t change soon. Multi-decade inflation is the main cause of tapering demand and the slowdown of the economy has brought the situation to critical levels.
🇪🇺 Increasing electricity bills force EU rail companies to quadruple prices. As a result, many freight companies are reverting to diesel locomotives over electric models in order to reduce substantial operating costs. Trucks are now the cheaper option for transporting goods in the European Union, compared to an electric-powered rail system. With the EU’s goal to increase its rail logistics industry by 100% by 2030, this trend seems to sour that plan.
🇨🇦 Canadian inquiry into Trudeau’s “Freedom Convoy” response concludes. Former judge Paul Rouleau, who led the review, announced that the Prime Minister’s actions met that steep threshold required to enforce the Emergencies Act against Ottawa trucking protestors last year. The Emergencies Act, akin to martial law, froze the bank accounts of identified protestors and added them to international terrorist watch lists. Reactions to the judgment have been mixed.
♻️ European Unions announces truck CO2 emissions cut of 90% by 2040. Trucks are being given a bit more grace by the EU to get with the green energy program, but they’re being held to a standard, nonetheless. Heavy vehicles are being required to cut emissions little by little every five years, beginning at a 45% cut by 2030. The EU has been working to develop a comprehensive network of charging/fueling infrastructure for heavy vehicles, including trucks, buses, and other commercial vehicles. These charging stations can provide high-capacity charging for electric trucks and buses, enabling them to travel long distances without the need for frequent recharging.
iLevel With You 🏡
More topics for the average American household to consider…
🛍️ Economic uncertainties lead retailers to get creative to retain customers. Customers are likely to become more price-sensitive during an economic downturn, so retailers should focus on offering products and services that provide real value to customers. This may mean offering discounts, promotions, or loyalty programs that provide meaningful savings to customers. In a challenging economic environment, customers may also become more demanding when it comes to customer service. Retailers can differentiate themselves by providing exceptional customer service, including fast response times, personalized attention, and problem-solving assistance.
☢️ Ohio locals enraged over toxic chemical spill into air and water after train derailment. Norfolk Southern’s PR nightmare has only just begun as residents of nearby East Palestine, Ohio raise concerns over wildlife and safety. The train derailment that didn’t cause any immediate injuries or deaths officially has been the center of many suspicions as wildlife in the area turn up dead. The National Transportation Safety Board has spurred an investigation that has yet to turn up an official reason as to why the 38-car derailment occurred in early February.
📰 Poor communication with the public may be responsible for train incident fury. Local residents near the derailment have been largely left in the dark by the Norfolk Southern railroad, local safety departments, the news, and the government. Because of the confusion, many unanswered questions have loomed over the town and the incident is taking on a life of its own. Effective communication is critical in the aftermath of a disaster, and confusing messaging can have a significant impact on local residents. When communication is unclear, inaccurate, or inconsistent, it can create confusion, anxiety, and frustration among residents who are already dealing with the stress and trauma of a disaster.
🤷♀️ Layoffs and hires: the economy seeks to rebalance itself after the Covid-19 pandemic. Companies may lay off employees in one area or department while simultaneously hiring new employees in another area or department as part of a larger restructuring effort. This can involve shifting resources and refocusing the company's business strategy to remain competitive in a changing market. Layoffs may be part of a broader cost-cutting effort, while new hires may be necessary to fill critical roles or address staffing shortages in other areas of the company. This can help the company reduce expenses while maintaining essential functions and services.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
💡 Managed services are becoming increasingly popular in the supply chain. Organizations are looking to streamline operations, reduce costs, and improve efficiencies. TMS providers offer end-to-end transportation management services, from shipment planning to execution, optimization, and tracking. TMS providers use advanced technologies like AI, machine learning, and predictive analytics to optimize routing and delivery schedules, reduce transportation costs, and improve delivery times.
🚂 Rail freight is in desperate need of improvements. Rail freight has the potential to play a key role in the future of global transportation, particularly as the need for sustainable and efficient logistics solutions continues to grow. However, the industry faces a number of challenges, and significant investments will be needed to help it overcome these challenges and realize its full potential. Investments will be needed to modernize and expand rail networks, particularly in emerging markets where rail infrastructure is often lacking.
👷♀️ Lehi, Utah will be the new home to an $11B semiconductor manufacturing facility. Dallas-based Texas Instruments is investing a massive chunk of change into a new fabrication facility next to its current establishment in Utah. Utah has a highly educated and skilled workforce, with a strong background in engineering and technology. The state is home to several leading universities, including the University of Utah, Brigham Young University, and Utah State University, which provide a steady stream of skilled graduates to the workforce. Utah has a relatively low cost of living compared to other states, which makes it an attractive location for businesses looking to control costs.
💰 North American ports are buckling financially as the industry “returns to normal”. Ports collected large profits from container detention and demurrage charges imposed during the pandemic, and now those profits are all but evaporating. The port traffic that plagued the supply chain for several years is no longer the issue it was, but port terminal operators are starting to squirm. Additionally, the imports from Asia are starting to quiet and it’s likely that the trend will continue as inflation remains a problem for the US economy.
🚢 January volume at US West Coast ports continues to decline rapidly. In the entirety of the US, import volumes have dropped nearly 18% compared to January 2022. This decline signals that the rest of 2023 may be tough for shippers as volumes continue to fall after pandemic-driven highs. Southern California’s San Pedro Bay, home to the Ports of Long Beach and Los Angeles, is witnessing the largest drop in US ports - down 29% and 26%, respectively. With extended Lunar New Year closures at many Asian ports, Port of LA Director Gene Seroka advises that retailers may continue to discount products to customers in order to clean out well-stocked warehouses.
🚛 Montana holds out on approval of the entry-level commercial driving bill. The state’s Senate rejected the legislation on a 23-27 vote after the heavy debate, risking the state’s commercial Driver’s License laws to qualify for some federal funding. The bill would require drug checks on the federal Drug and Alcohol Clearinghouse that would disqualify a candidate for the license and would ask the driver applying to meet federally required training prior to receiving the license.
💰 Supply chain finance has evolved over the past few years. Driven by advancements in technology, changes in the regulatory environment and the growing demand for efficient and sustainable supply chain management practices, the growth over the last few years has been monumental. The emergence of digital platforms and fintech companies has transformed the way supply chain finance operates. These platforms offer real-time visibility into supply chain transactions, allowing suppliers and buyers to access financing options more quickly and easily. The use of blockchain technology has also enabled greater transparency and security in supply chain finance operations.
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.