Big win in court for the ATA; chassis freedom, at last
Good morning! As we dive into another day of managing the intricacies of our supply chains, we hope this newsletter finds you well and ready to tackle the challenges ahead. ☕️
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Motor carriers represented by the American Trucking Association (ATA) are celebrating today. A judge ruled that ocean carriers forcing motor carriers to utilize specific chassis to move containers is a violation of the Shipping Act: a federal law that regulates ocean transportation in the foreign commerce of the United States. This renewed “chassis freedom” will allow motor carriers and American drivers to select their chassis providers instead of being forced by foreign-owned shipping lines to use specific equipment providers.
Check out today’s featured article from DC Velocity to read about the big win in court for the American Trucking Associations after arguing that ocean carriers shouldn’t force motor carriers to use specific intermodal chassis providers. Deemed a violation of the Shipping Act, will this ruling provide leverage for motor carriers over ocean carriers? ☕️
Featured Article:
ATA gains chassis freedom in legal win over ocean carriers | DC Velocity
“Trucking group had complained that ocean carriers forced “unreasonable prices” by requiring motor carriers to move containers only with specific intermodal chassis providers.”
Electric Vehicles & Safety ⚡️
U.S. Coast Guard warns of fire hazards when exposing Lithium-Ion batteries to saltwater
The U.S. Coast Guard issued an official warning to the shipping industry regarding the loading of electric vehicles with damaged Lithium-ion batteries onto vessels traveling through salt water. The exposure of salt water to these batteries can create a chemical reaction that causes a severe fire risk to the vessel and product. Lithium-ion batteries are highly flammable, and exposure to salt water can cause the batteries to ignite and cause a fire. Additionally, if the battery casing is damaged, salt water can enter the battery and cause a short circuit, leading to thermal runaway, a dangerous condition in which the temperature of the battery increases rapidly.
Lithium-ion batteries contain toxic chemicals such as cobalt, nickel, and lithium, which can leach into the water and cause environmental harm if the battery is damaged and leaks - which creates an environmental risk. If the battery is damaged during transport, it can pose a hazard to other vehicles, passengers, and cargo.
Driver Issues & Safety 🔎
Thieves are enabled by lack of reporting cargo theft, says CargoNet
Incomplete data and strained law enforcement can create an environment that is permissive to cargo theft, as thieves are able to exploit gaps in security, intelligence, and enforcement. Incomplete or outdated data on cargo movements and locations can make it easier for thieves to target shipments and evade law enforcement. Strained law enforcement resources can lead to weak security systems for cargo in transit, making it easier for thieves to steal shipments. Further, a lack of information sharing between different law enforcement agencies and the private sector can result in a fragmented approach to cargo theft, making it easier for thieves to operate.
Limited law enforcement and penalties for theft also continue to perpetuate the issue. Stretched law enforcement resources can result in limited enforcement against cargo theft, providing an environment that is conducive to theft. Weak penalties for cargo theft can make it less of a deterrent for thieves, as the risks and consequences of theft are reduced.
Insurance & Inflation 💰
Insurance premiums may calm in 2023, providing carriers some relief
After years of insurance premium hikes, carriers may see some light at the end of the tunnel in 2023. However, insurance companies are continuing to face economic issues, the same as most other companies… it’s unclear whether increases can be avoided forever. President of Hub International’s transportation services division, Michael Birge, has noted that for five years, commercial auto insurance has risen in the double digits, consecutively.
Some claim that better technology and artificial intelligence integration can be thanked for the slowing insurance premium hikes. Advanced technologies such as telematics, sensors, and predictive analytics can help trucking carriers improve safety on the roads, reducing the number of accidents and claims, and ultimately lowering insurance premiums. AI and machine learning can help identify and prevent fraudulent claims, reducing the number of losses for insurance companies and ultimately lowering premiums for trucking carriers. Advanced technologies can help insurance companies more accurately assess the risk associated with trucking carriers, allowing them to offer more tailored coverage. Additionally, AI-powered claims systems can help speed up the claims process, reducing the cost of claims administration.
iLevel With You 🏡
More topics for the average American household to consider…
👯♀️ Only 20% of Americans have a “best friend” at work. According to a June 2022 Gallup poll, 2 out of 10 Americans report that they have a close companionship in the workplace, likely due to the dramatic rise of remote and hybrid work in the American workplace. Having a "best friend" or a supportive community at work can be important for several reasons, including that having supportive colleagues can lead to a more positive work experience, which can in turn lead to higher job satisfaction and motivation. Work can be stressful, and having supportive friends at work can help reduce stress and improve overall well-being. When employees have strong relationships with their colleagues, they may be more likely to collaborate effectively, share ideas, and provide constructive feedback.
🔋 Utilities may be able to tap into your idle EV batteries when electricity is low. Vehicle-to-grid charging (V2G) is a new analysis that suggests electric vehicle owners could make the current electrical grid more flexible and reliable. While the transition to green energy resources relies heavily on solar and wind power, those resources may not always be available. Chengjian Xu, an industrial ecologist at Leiden University in the Netherlands, suggests in a publication in Nature Communications that instead of suffering when resources are low, EV owners will be able to provide backup power to the grid while their vehicles are stationary.
✊ Despite a pro-union White House administration, unionization rates have declined. According to the Bureau of Labor Statistics, overall US union membership dropped by .2% in 2022, falling from 10.3% in 2021. The first is from manufacturing to service-based industries and the globalization of trade has reduced the number of unionized jobs, particularly in industries such as manufacturing, where unions have historically been strong. Union membership has declined significantly in the private sector while remaining relatively stable in the public sector. This is largely due to declining unionization rates in industries such as manufacturing and construction, and the growth of non-unionized industries such as technology and finance.
🥑 Super Bowl Sunday demands a massive transfer of avocados. Avocados are a popular ingredient in a variety of dishes, mainly guacamole, which is a staple at many Super Bowl parties. The Super Bowl is one of the largest annual food consumption events in the United States, with millions of people expected to consume large quantities of food… especially avocados. With avocado theft and drug smuggling having a dark history, may be wary of the avocado transfers in place the week prior to the Superbowl in Glendale, Arizona.
🚦 Highway congestion cannot be solved by adding more lanes to freeways. Studies have shown that adding more lanes to a highway often leads to an increase in traffic, known as "induced demand". This is because more lane capacity can lead to an increase in driving, reducing the effectiveness of the new lanes in reducing congestion. While adding more lanes may provide some temporary relief to congestion, it is not a sustainable solution and may not effectively address the root causes of congestion. Alternative solutions, such as improving public transportation, promoting alternative modes of transportation, and encouraging land use patterns that reduce the need for driving, may be more effective in addressing the problem of highway congestion.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🤔 Innovative thinking can assist companies in meeting their supply chain goals. By implementing innovative solutions, companies can streamline their supply chain processes, reduce waste, and improve overall efficiency. Innovative solutions can help companies reduce costs by reducing waste, increasing efficiency, and finding new and more cost-effective ways of doing things. This tactic can also help companies create more flexible supply chain networks that can quickly adapt to changing market conditions and customer demands. Companies can use innovative thinking to develop sustainable supply chain strategies that reduce their environmental impact and improve their reputation as socially responsible organizations.
🚚 FedEx Freight furloughs… incoming. While the company didn’t specify an exact number, a company spokesperson confirmed in an email to Transport Dive that the company will enact another round of furloughs while it reevaluates its operational requirements. Furloughed workers will still receive benefits and other financial incentives while furloughed, while others will be offered positions in other markets as permanent transfers. Be expecting the official results of the furlough between March 5th and May 27th.
✈️ Air cargo had a great year in 2021, but 2022 brought the pain. The International Air Transport Association (IATA) is predicting that 2023 will report more of the same decline as inflation continues to be rampant. New global export orders have stalled and economies are expected to continue cooling. airlines have seen a passenger rebound in 2022, however, the travel bans enacted during the pandemic seemed to have had a bigger impact on hurting airlines’ businesses rather than hindering the spread of disease, according to the IATA.
📋 Supply diversity programs play an important role in the success of a supply chain. By diversifying its supplier base, a company can reduce its dependence on a single supplier, thereby reducing the risk of supply chain disruptions caused by factors such as bankruptcy, natural disasters, or supplier non-performance. A diverse supplier base can help companies secure better prices and negotiate better terms with suppliers, which can result in cost savings. Working with a range of suppliers can help a company access a wider range of products and services, leading to improved quality and greater competitiveness.
🔥 Propane autogas engine technology is expected to grow. With growing concerns over climate change and air pollution, there is increasing demand for alternative fuels, including propane autogas. Advances in engine technology are expected to continue, resulting in more efficient and cost-effective propane autogas engines and governments around the world are offering incentives and subsidies for the use of alternative fuels, including propane autogas - which is expected to drive its adoption in the future.
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.