🇲🇽🚀👊 Mexico's Steel Curtain, SpaceX Soars & An Icy Labor Victory
Good morning! ☀️
Welcome to the first edition of "The Workday Dash" for the year 2024! As we kick off the new year, we're excited to bring you the latest insights, trends, and news from the ever-evolving world of supply chain and logistics.
Let's dive into the first issue of 2024 and make it a year of successful workday dashes together! 🥳🍾
“Hard work spotlights the character of people: some turn up their sleeves, some turn up their noses, and some don’t turn up at all.”
Steel | Mexico | Tariff
Mexico Implements 80% Tariff on Steel Imports Targeting Chinese Steel Producers
Mexico has imposed an approximately 80% tariff on certain steel imports, mainly targeting Chinese steel, following complaints from domestic producers about the impact of Chinese steelmakers on their production. This tariff is specifically applied to some Vietnamese exports of cold-rolled steel sheets.
However, if importers can prove that the steel originates from a country other than China, they will be exempt from this tariff. Hoa Phat, Vietnam's largest steelmaker, faces a nearly 12% tariff, while Posco Vietnam will encounter a 26% tariff, with both companies being eligible for the country of origin exemption. This move is part of a broader effort by various nations to address the issue of Chinese steel producers selling surplus steel below market rates (also called “dumping).
In August, Mexico had already increased tariffs to 25% on certain steel imports from countries without free-trade agreements, including China. This latest tariff announcement concludes a government anti-dumping investigation initiated almost two years ago at the request of Ternium's local unit. However, Ternium declined to comment on the matter. The United States has also expressed concerns about the transparency of the origin of its steel and aluminum imports from Mexico.
Amidst rising imports, steel production in Latin America has declined, with the region projected to produce 83% of its consumed steel this year. China is a significant steel supplier to Latin America, accounting for nearly a third of steel imports in the region. Brazilian steelmakers have also called on their government to impose a 25% tariff on Chinese steel imports, but limited action has been taken due to concerns about impacting trade relations with China, one of Brazil's major trading partners.
SO, WHY IS THIS IMPORTANT INFORMATION FOR THE TRUCKING INDUSTRY?
You might be wondering, "How does this relate to the trucking and logistics industry?" Well, let us break it down for you – it's got a lot to do with your field. The recent tariff on steel imports, especially from China, could have a significant impact on the transportation of steel within and into Mexico. Trucking companies that handle steel transportation might experience fluctuations in demand due to these tariffs.
But it doesn't stop there; these tariffs could also throw a wrench into supply chains. Companies that rely on steel imports from countries like Vietnam might encounter disruptions in their carefully planned supply chains. As logistics professionals, we've got to roll with the punches, adapting to these shifting trade dynamics. We may need to explore alternative sources or jump through hoops to prove the origin of our steel imports to avoid these tariffs.
Let's not forget, that supply chains and logistics play a role in almost everything, even in news like this. It's a reminder of how crucial it is to stay on top of trade policies and their impact on global and regional supply chains. As logistics and transportation experts, we've got to stay ready for potential disruptions and tweak our strategies to navigate these ever-changing trade dynamics.
WHAT’S OUR HOT TAKE?
It's about time we all team up to tackle these unfair trade practices head-on. So here's the deal: if importers can show that their steel isn't coming from China, they can avoid these tariffs. It's all about finding that sweet spot between fair competition and looking out for our local industries.
The United States is totally on point for keeping a close eye on the transparency of its steel imports. Let's work together to shape a more just economic future.
Elon Musk | Space X | Record-breaking
Elon Musk's Space X Achieves Record-breaking 96 Orbital Rocket Launches in 2023
In 2023, SpaceX, Elon Musk’s company, shattered its previous annual record for orbital rocket launches by successfully completing 96 missions, with an impressive launch rate of roughly one mission every four days. This remarkable achievement included 91 launches using the Falcon 9 rocket and five using the Falcon Heavy, surpassing the previous record of 61 orbital launches set in 2022. Notably, SpaceX accomplished more Falcon 9 launches this year than in the entire first decade following the rocket's introduction.
In addition to this amazing achievement, SpaceX celebrated its 250th orbital rocket booster landing and executed a single rocket launch and landing 19 times, demonstrating its commitment to rocket reusability. The company also established a new record for the shortest time between orbital launches, at just under three hours, a milestone not seen since NASA's Gemini 11 mission in 1966.
Remarkably, SpaceX's 2023 launch tally does not include its Starship test flights, which did not carry commercial payloads destined for orbit.
Looking ahead, SpaceX aims to reach new heights with plans to launch up to 144 Falcon missions in 2024. These missions will primarily focus on deploying satellites for the Starlink system, a significant driver of the company's impressive $180 billion assessment.
Jon Edwards, SpaceX's Vice President of Falcon launch vehicles, expressed pride in the team's achievements and excitement for what the future holds. Musk's initial "thought experiment" goal of 100 launches has become a reality, thanks to the dedication and innovation of SpaceX's exceptional team.
SO, WHY IS THIS IMPORTANT INFORMATION FOR THE LOGISTICS INDUSTRY?
SpaceX's 2023 rocket launch spree is kind of a big deal for folks in the trucking and logistics game. They pulled off a jaw-dropping 96 successful missions, averaging a rocket launch every four days! But what's in it for us? Well, more rockets in orbit mean better satellite coverage. Improved global communication, real-time tracking, and optimized routes can make our lives in transportation a whole lot smoother.
Plus, SpaceX's Starlink satellite network could bring internet to some hard-to-reach places. Think better connectivity for long-haul truckers and more efficient fleet management. Competition may heat up too, as SpaceX might start offering satellite-based services. More choices and maybe lower costs? Sounds good to us.
And who knows, in the future, we might see space-based logistics. Rockets could revolutionize how we transport stuff into space, opening up new possibilities.
WHAT’S OUR HOT TAKE?
We think that we all can agree that Space X’s accomplishments this year are pretty impressive but there can be some downsides with it too. One can't help but wonder if their unchecked growth might lead to a monopolistic hold on the space industry. As they continue to break records and expand their satellite network, there's a risk of limiting competition and innovation in the space sector.
Additionally, their ambitious goals of launching thousands of satellites for Starlink could clutter the Earth's orbit, increasing the risk of collisions and space debris, which poses a threat to both existing satellites and future space missions.
Teamsters | Lawsuits | Labor Law
Glacier Northwest Cleared of Federal Labor Law Violation in Revived Lawsuit Against Teamsters Union Affiliate
On December 28th, a National Labor Relations Board judge, Jeffrey Wedekind, determined that a concrete company, Glacier Northwest Inc., did not breach federal labor law when it filed a revived lawsuit accusing a Teamsters union member of property destruction during a strike.
The lawsuit was initially filed in 2017, and it alleged that a brief strike by truck drivers had compelled Glacier to dispose of unused materials at a financial loss. The U.S. Supreme Court revived this lawsuit in June, challenging a state court's prior ruling that it was preempted by the National Labor Relations Act.
Wedekind's recent ruling proved that Glacier's lawsuit was not facetious and found no evidence of retaliation against the union for the strike.
It's worth noting that while Glacier was cleared of this charge, but the judge did find that the company had violated the NLRA by issuing warning letters to 16 participating strikers, a violation that has since been rectified.
SO, WHY IS THIS IMPORTANT INFORMATION FOR THE SUPPLY CHAIN INDUSTRY?
In the trucking, transportation, supply chain, and logistics game, this news can be a big deal… this case isn't just about them; it sets the stage for how labor disputes and legal actions play out in our industry. It's like a new rulebook for the game we're all part of.
Think about it – if companies can go after unions or their members for stuff that happens during strikes, it might change how often we see these strikes and how they end. There's money on the line, after all.
And the legal stuff? Well, it's not just paperwork. It could affect how we all work together and negotiate. Knowing the lay of the land legally is key to staying ahead of the curve.
WHAT’S OUR HOT TAKE?
This ruling is a big win for businesses and their ability to stand up for themselves when things go south during strikes. It's all about protecting property rights and making sure that labor disputes don't turn into chaos.
When the U.S. Supreme Court stepped in it sent a clear message: companies have a legitimate right to seek legal action when things like this happen. It's not about throwing the balance between unions and businesses off but ensuring that everyone is accountable for their actions. That is something more people in the industry should get behind.
Daily Riddle:
I soar beyond the earthly bounds so high,
With rockets strong, I touch the endless sky.
Elon Musk's vision, I fiercely pursue,
Innovation and dreams, my daily view.
From Falcon to Starship, I take the lead,
Tell me, oh, who am I in this cosmic deed?
12-29 Answer: Suez Canal