Billion-dollar stakeholders push UP railroad to replace CEO amid criticism
Good morning! As businesses around the world continue to face unprecedented challenges, it's more important than ever to stay informed and adapt to the changing landscape. In today's edition, we'll be exploring the latest trends in e-commerce logistics, discussing the impact of new technologies on the supply chain, and sharing some tips and tricks for optimizing your transportation operations.
Whether you're a logistics professional or simply interested in learning more about the industry, we're here to help you stay informed and inspired. So grab your morning coffee, sit back, and let's dive into today's top supply chain news. ☕️
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It’s all about where the money lies. The $1.6 billion hedge fund stakeholder in the Union Pacific railroad - Soroban Capital Partners - is getting vocal about its disappointment in the railroad. Eric Mandelblatt, the managing partner at the firm, has publicly declared Union Pacific’s CEO Lance Fritz of being a poor leader and criticized his eight-year tenure in the position.
The railroad’s response? Union Pacific has announced plans to replace Fritz.
Check out today’s featured article from AP News to read about the big changes underway at the Union Pacific railroad at the executive level and whether stakeholders will continue to push the rail company to make changes in light of recent controversies.
Featured Article:
Union Pacific will replace rail CEO amid hedge fund pressure | AP News
“Union Pacific announced plans Sunday to replace its CEO later this year after a hedge fund that holds a $1.6 billion stake in the railroad went public with its concerns about his leadership.”
Railroads & Environment ♻️
Contamination removal project at the Ohio derailment location paused by EPA
The efforts underway in East Palestine, Ohio to remove contaminated waste from the location of a fiery train derailment in early February have been “temporarily halted” by the Environmental Protection Agency (EPA). The agency ordered the Norfolk Southern railroad to pause its shipments of the material away from the location - a job relegated specifically to the rail company with the assistance of Ohio environmental officials-approved disposal sites.
Debra Shore, the Region 5 administrator of the Environmental Protection Agency, has stated the reason for the pause is to ensure all hazardous material is safely and lawfully disposed of. Regardless of assurances by politicians and the EPA, concerned citizens in the area have continually voiced upset over the chemical spill and the resulting possible contamination of the air and drinking water.
Cyber Safety & Shortages 💻
North American pineapple may be in short supply after Dole ransomware attack
Dole, the company famous for its delicious and sweet pineapples, has announced that it had to pause production in North America after ransomware attacked its company systems. Due to the incident, Dole temporarily suspended operations and food shipments to grocers, signaling there may be a pineapple shortage for the short term. Bad news for every Pina colada lover.
Dole released a statement advising the public that law enforcement has been alerted and third-party cybersecurity experts and working on the internal systems within company property to address the issue. Being one of the largest produce companies in the world, there are serious consequences associated with cyber attacks. The food industry has been targeted in recent years, likely due to opportunistic strategies rather than specific industry reasons.
Let’s Get Global 🌎
📲 Chip manufacturing is the most vulnerable supply chain in the world. Economic historian Chris Miller, a professor at Tufts, is tackling the challenges associated with the semiconductor industry with their new book, "Chip War: The Fight for the World's Most Critical Technology”. : Chip manufacturing requires a variety of rare earth metals, which are often sourced from a small number of countries, such as China. Any disruption in the supply of these metals can have a significant impact on chip production. As the use of digital technology continues to expand, the risk of cyber attacks on chip manufacturing facilities is increasing. A cyber attack could cause damage to equipment or steal intellectual property, leading to a disruption in the supply chain.
🇷🇺 Russia is struck with a 200% tariff on aluminum by the US. Russia’s invasion of Ukraine celebrated its one-year anniversary last week, and the White House marked the occasion by announcing $2.7 billion in new duties on metals and raw materials from the country. Other Russian products, including minerals and chemicals, were also hit with a 35% tariff increase. The goal is to minimize the cost to US consumers while putting pressure on Russia, says US Trade Representative Katherine Tai. Aluminum imports from Russia increased by 53% between March and July 2022, and the American Primary Aluminum Association points to this increase as an unfair advantage of Russia’s aluminum industry.
✈️ The global air freight market may be signaling the end of globalization. Globalization is a complex and multifaceted process that involves the integration of economies, cultures, and societies across national boundaries. While air freight is an important component of the global transportation system, it is just one aspect of the broader global economy. However, changes in global trade patterns, economic conditions, and technological advancements are shifting the world from physical goods to transportation. Since the Chinese New Year, the freight market has been slow.
iLevel With You 🏡
More topics for the average American household to consider…
📆 Incoming recession likely to come later in 2023 than expected. A large swatch of the country’s economists are anticipating a recession in the United States, but the date that comes to fruition is to be a little later than initially expected. Only a quarter of those economists surveyed by the National Association for Business Economics expects the recession to officially begin by the end of March, while one-third expect it to begin somewhere between April and June. July through September isn’t safe either: another fifth of those surveyed think that will be the sweet spot for recessionary fears. With the unemployment rate remaining at its lowest since 1969, the robust economy seems to be defying the odds even as the Federal Reserve continues to hike rates and battle inflation.
🍺 Kombucha is popular, and its supply chain is getting more complicated. The next time to order a fancy kombucha drink at a trendy bar, know that the industry is focusing on sustainability as much as profitability. Kombucha, a fermented and nutrient-dense, sweet-and-sour tea drink has been growing on the market. Buchi Kombucha, based in Asheville, North Carolina, has led the industry with a sustainability-first objective. Zane Adams, chief marketing officer of Buchi Kombucha, calls the company’s focus a “regenerative supply chain” - a method where every business decision also incorporates resilience in world circumstances - from sustainable packaging to climate issues and disasters.
🤳 Distracted driving has serious consequences: so, stop it. Whether it be fiddling with a cell phone or the radio, eating, drinking, or talking… distracted driving accounts for any activity that draws your attention away from the road. While 90$ of those surveyed claim that any individual operating a phone while driving post a serious threat, the same pool admits to programming their GPS destination into their phone when they drive. How can this issue be addressed? Penalties have been levied against drivers caught in the act, but some say… that is not enough.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🤖 Slync.io secures $24 million in venture capital funding for AI advancement. The Slync platform’s purpose is to collect, interpret, and standardize data from real-time sources to improve supply chain operational processes. Blumberg Capital, ACME Ventures, Gaingels, and other investors are staking their bets in the platform, hoping it will transform the supply chain and freight booking processes.
🚂 Railroads under pressure for renewed regulations after the Ohio derailment disaster. Norfolk Southern railroad’s train crash has sparked renewed efforts to tighten regulations, along with a litany of political volleying between former President Trump and the Biden Administration. The National Surface Transportation Board (NTSB) has been investigating the incident, but meanwhile - both sides of the political aisle continue to speculate on its root cause.
💆🏻♀️ Gen Z workforce cannot be treated like previous generations. The younger generation has distinctly different outlooks on the corporate world as opposed to Gen X and Baby Boomers. Most are taking on riskier roles such as starting their own business or entering the gig economy rather than getting a position at an established company. Oftentimes, this may correlate with overwhelmingly negative views of capitalism - nearly 50% - and a significant sensitivity to issues such as climate change and social justice.
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.