🚗✈️📈 Texas Cruise Revival, COMAC's Sky High, & FedEx Potential Profit

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Good morning! ☀️

Welcome back to another edition of The Workday Dash, your go-to source for all things logistics and beyond. As we kick off this fresh Monday morning, we've got a lineup that's sure to rev your engines:

1️⃣ Cruise Robotaxi is gearing up to hit the roads again in Texas

2️⃣ COMAC is charting the skies at the Singapore Airshow

3️⃣ FedEx is making waves with a potential profit boost from reimagining its postal partnership.

So grab your coffee, buckle up, and let's dive into the week ahead. ☕️

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“As we work to create light for others, we naturally light our own way.”

— Mary Anne Radmacher

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GM | Cruise | Texas

Cruise Robotaxi Testing Set to Resume in Texas Cities

General Motors Co.'s autonomous driving unit, Cruise, is gearing up to restart robotaxi testing in the next few weeks, eyeing potential locations like Houston and Dallas. After grounding its fleet last year due to safety concerns, Cruise is in discussions with various metro areas, including the two Texas cities, to resume tests with safety drivers. The company faced setbacks after an incident in San Francisco led to regulatory scrutiny and management changes.

Cruise is now prioritizing rebuilding trust with regulators and the public, focusing on Texas for its more permissive regulations. While Houston appears to be a front-runner for testing, Cruise is carefully navigating regulatory approval before making a final decision. The company is also addressing past mistakes, emphasizing transparency and better communication between safety drivers and engineers. However, Cruise's ambitious growth plans, including revenue targets set under former leadership, now face uncertainty amidst its hiatus and the slowdown in electric vehicle sales growth.

Read more about this at TT News >

WHY IS THIS IMPORTANT?

So, General Motors' Cruise unit is getting back into testing those robotaxi rides. That's a big deal because it shows we're still making moves in self-driving tech. Imagine if this tech keeps evolving – we could have self-driving trucks cruising around, changing how we do things in transportation and logistics. Cruise is chatting up officials in different cities about their self-driving plans. This tells us that getting the green light from regulators is a big deal for rolling out these fancy autonomous rides. Knowing what's up with regulations helps us navigate any changes in the laws that might affect how we do our jobs.

Cruise is trying hard to rebuild trust after some safety concerns. It's a reminder that safety is a big deal in the world of self-driving vehicles. If people don't feel safe with these autonomous rides, they won't catch on. So, making sure these rides are safe and reliable is key for us all.

🔥 OUR HOT TAKE?

While General Motors' Cruise unit's return to robotaxi testing may seem like progress in self-driving technology, it raises significant concerns. The rush to push autonomous vehicles onto public roads without fully addressing safety issues could be considered reckless. The recent incidents involving autonomous vehicles, including Cruise, highlight the dangers of prioritizing innovation over safety.

Trust cannot be rebuilt overnight, especially when lives are at stake. Instead of rushing to roll out self-driving tech, perhaps we should prioritize thorough safety evaluations and transparent communication with the public.

Otherwise, we risk putting lives in danger for the sake of technological advancement.

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COMAC | Aviation | Singapore

COMAC' is Navigating the Future of Aviation at the Singapore Airshow

At the Singapore Airshow, Chinese aircraft manufacturer COMAC made a splash with its C919 and ARJ21 jets, stealing attention from industry giants like Airbus and Boeing. While COMAC showcased its capabilities and attracted significant interest, particularly from aviation professionals, doubts remain about its ability to compete globally.

The company's focus on obtaining international certifications and orders underscores its ambitions, but it faces hurdles such as regulatory approval and reliance on Western suppliers for critical components. Despite these challenges, COMAC's presence signals a potential shift in the aviation landscape, though its impact on established players like Airbus and Boeing remains uncertain.

Read more about this on Yahoo Finance >

WHY IS THIS IMPORTANT?

When a fresh face like COMAC jumps into the aviation scene, it could change things up big time. That means potential changes in where goods need to go and how they get there, thanks to new aircraft hitting the skies. We're not just talking planes here. The aviation industry ties into our world too. So, any twists and turns in the air game, like a new player on the field, can ripple right through our supply chain. That could mean shifts in how we move stuff, how much we move, and where we're headed.

With COMAC stepping onto the global stage, the heat is on for all the big players to up their game. That might mean cooler, faster, more efficient planes coming down the pipeline, which could impact how goods move by air – and maybe even by truck, too.

🔥  OUR HOT TAKE?

While Airbus and Boeing have long been considered the undisputed titans of the aviation industry, COMAC's recent display at the Singapore Airshow suggests a seismic shift in the making. The attention-grabbing debut of COMAC's C919 and ARJ21 jets, coupled with its ambitious pursuit of international certifications and orders, signals a direct challenge to the established order.

Despite lingering doubts about its global competitiveness, COMAC's rapid rise poses a genuine threat to Airbus and Boeing's dominance. By showcasing its capabilities on a global stage and attracting significant interest, particularly from aviation professionals, COMAC has effectively positioned itself as a formidable contender in the aviation landscape.

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FedEx | Postal | Profit

FedEx's Potential Profit Boost is From Rethinking the Postal Partnership

FedEx might actually benefit from losing its colossal contract with the U.S. Postal Service, according to Brandon Oglenski, an analyst at Barclays Bank. This could prompt the parcel giant to trim its pricey air transport network, boosting profitability. While FedEx and UPS handle similar package volumes, FedEx's larger airline leads it to chase less profitable cargo, resulting in lower-than-expected earnings.

FedEx's new strategy, Tricolor, aims to boost aircraft density by focusing on dedicated aircraft for deferred freight, potentially reducing daytime network capacity by 50% and saving an estimated $1.5 billion. Oglenski speculates that FedEx could emulate UPS's leaner daytime air operation, which focuses on delivering where truck service can't. FedEx's significant reliance on its postal contract, which has become less profitable due to reduced postal air transportation, suggests it may be time for a change. Oglenski suggests renegotiating or walking away from the contract, which could lead to a more cost-effective linehaul approach like UPS's, ultimately enhancing FedEx's bottom line.

Read more about this at Freight Waves >

WHY IS THIS IMPORTANT?

If FedEx starts relying more on ground transport, it could change what's going where and how much of it. Knowing what big players like FedEx are up to helps everyone else in the supply chain tweak their own operations to run smoother. That means trucking companies might need to adjust their routes or how much they can haul based on what FedEx is doing.

When FedEx changes its game plan, it affects everyone else in the transportation and logistics world. Bottom line? Keeping an eye on what FedEx and other major players are doing is key for anyone in the trucking, transportation, supply chain, and logistics game. It helps us see what's coming, adjust our own strategies, and stay competitive in the ever-changing market.

🔥 OUR HOT TAKE?

While many see FedEx's partnership with the U.S. Postal Service as a cornerstone of its business, we argue that it's time for a radical shift. Brandon Oglenski's analysis suggests that cutting ties with the Postal Service could be the game-changer FedEx needs. By shedding this burden, FedEx could streamline its operations, focusing on more profitable ventures and trimming excess fat from its air transport network.

Sure, there will be naysayers who fear the consequences of such a bold move. But in a rapidly evolving industry, complacency is the real threat. By renegotiating or walking away from the postal contract, FedEx has the chance to revolutionize its approach, becoming a leaner, meaner competitor in the transportation market. It's time to break free from the shackles of tradition and embrace the future of logistics.

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Daily Riddle:

I travel far and wide, rain or shine,

Bringing your mail, yours and mine.

From letters small to packages grand,

I traverse the land, from sand to sand.

You'll find me in every town and city,

Delivering your mail, oh what a pity!

With a trusty bag and uniform blue,

I'll make sure your mail gets to you.

What am I?

Feb 23 Answer: Global commerce

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