✈️💨💰 United Uncertainty, Wind Power Struggle, & Walmart Driver Payday
Good morning! ☀️
As we navigate through this chilly January, we're here to bring you the hottest updates from the world (in terms of supply chain, that is straight to your inbox.
Grab your coffee, bundle up, and get ready for a sizzling edition that's sure to warm up your midweek routine. Let's dive into the daily dash and turn this chilly hump day into a supply chain sizzle-fest! 🔥❄️
“If life were predictable it would cease to be life and be without flavor.”
United Airlines | Boeing | Fleet
United Airlines Reevaluates Fleet Plans Amidst Boeing 737 Max 10 Uncertainties
United Airlines is reconsidering its fleet plans involving the Boeing 737 Max 10 due to a series of delays and recent grounding issues. The Max 10, Boeing's largest model of the plane, has yet to receive certification from the Federal Aviation Administration (FAA). United CEO Scott Kirby expressed frustration over the substantial delays, exacerbated by a recent manufacturing problem involving a door plug on an Alaska Airlines 737 Max 9.
United Airlines currently operates 79 of the 737 Max 9 aircraft, more than any other carrier, and the ongoing grounding is expected to result in a first-quarter loss. Kirby indicated that the Max 9 grounding was a tipping point, leading the airline to explore fleet plans that exclude the Max 10.
Read more about this at CNBC >
WHY IS THIS IMPORTANT FOR MY INDUSTRY?
Airlines don't just carry people; they're a big deal for cargo too. If airlines like United start saying bye to planes like the Boeing 737 Max 10, it messes with cargo capacity and flight schedules. When airlines ground planes, it messes with air freight. If you're in the business of shipping stuff through the skies, you'll want to keep an eye on this. It could mean slower or pricier air transport for your goods.
🔥 OUR HOT TAKE?
First and foremost, safety is the top priority in aviation. We all know the challenges and questions the Boeing 737 Max program is facing after the tragic accidents involving the Max 8 variant. So, when it comes to United Airlines, the safety and confidence of passengers are non-negotiable. And… as they should be. It's all about making sure our passengers can trust the safety of their flights.
Some may disagree with United's decision, but it's crucial not to overlook the potential risks of blindly going ahead with the Max 10. The recent history of the Max program reminds us all of the importance of being cautious.
Energy | Clean | Wind Power
Legal Battle Emerges Over $10 Billion Wind Power Transmission Line Through Arizona's Cultural Heartland
In a legal move, a federal judge is being urged to issue a halt on construction for a $10 billion transmission line that is intended to carry wind-generated electricity from a remote area in southeastern Arizona to customers as distant as California. A 32-page lawsuit filed on January 17 in U.S. District Court in Tucson, Arizona, alleges that the U.S. Interior Department and Bureau of Land Management have neglected to acknowledge the profound cultural significance of the San Pedro Valley for nearly 15 years, particularly to Native American tribes like the Tohono O’odham, Hopi, Zuni, and Western Apache.
The lawsuit contends that the San Pedro Valley is one of southern Arizona's most pristine landscapes, both historically and prehistorically, and seeks court orders to either temporarily halt construction or impose permanent injunctions. It asserts that the valley will suffer irreparable harm if construction proceeds.
This legal battle is part of a larger project to transmit electricity from wind farms in New Mexico to populated areas in Arizona and California. The transmission line is considered a crucial component of President Joe Biden's aim for a carbon pollution-free power sector by 2035. Construction began in September but faced delays due to concerns from tribes and military operations, and it is now facing challenges both in federal court and the Arizona Court of Appeals. SunZia, the project's developer, anticipates the transmission line to commence commercial operations in 2026, providing wind power to millions.
Read more about this at Yahoo >
WHY IS THIS IMPORTANT FOR MY INDUSTRY?
This big transmission line project might interfere with local roads and transportation. We'll have to be super careful when we're moving goods and gear to the construction spot to avoid delaying local traffic. Plus, if these legal shenanigans slow down the process, the whole plan will have to be redone. Or tossed out entirely! This whole legal mess just shows how complicated it is to deal with big projects like this and all the rules and nature concerns that come with it.
Once that transmission line is up and running, it could deeply impact how we get our energy, especially if it's bringing in wind power from all over.
🔥 OUR HOT TAKE?
This legal fight is a big deal, no doubt. We've got cultural and environmental worries on one side, but we can't ignore the fact that we need cleaner and more eco-friendly energy sources - if not on principle, then at least to meet the government requirements laid out not the federal level.
We believe we can figure out some middle ground and find ways to make this project happen without destroying the environment or cultural heritage. If we stop or slow down the building of this line, it's not just the clean energy goals that will take a hit… but the whole region's economy and jobs too.
Everyone - including the Native American tribes and the companies behind the project - needs to start talking and finding a way to make both the culture and the environment happy.
Walmart | Trucking | Retention
Walmart's Unique Approach to Truck Driver Retention
With approximately 14,000 drivers, Walmart has one of the industry's most elite driving forces and has added 5,800 drivers in the past five years. Notably, Walmart has adapted its recruitment strategies to address what it termed a "shortage" of truck drivers in 2018, although some experts dispute this shortage, attributing driver turnover to factors like pay and working conditions. In a recent move, Walmart launched a program allowing its associates to apply for a 12-week Commercial Driver's License (CDL) program, opening up opportunities for individuals without years of prior experience to join their driving ranks. This shift toward internal training reflects Walmart's desire to mold drivers according to its own standards.
While the truck driver shortage debate continues in the industry, Walmart's efforts to recruit and retain drivers signal its commitment to maintaining a reliable and efficient supply chain. By paying competitive wages and offering internal training, Walmart aims to ensure that its truck drivers are not only skilled but also aligned with the company's values and culture. Keeping store shelves stocked and customers happy is a big deal. Walmart's attention to its drivers contributes to a better shopping experience, which matters in terms of customer loyalty and sales.
Read more about this at Freight Waves >
WHY IS THIS IMPORTANT FOR MY INDUSTRY?
Walmart's paying its drivers pretty well, and that sparks conversations about wages in the industry. It signals a wider discussion on how much drivers should earn. Walmart is going as far as teaching its own people how to drive trucks which shows that you don't always have to look outside for talent; sometimes, you can grow your own.
The company is obviously doing what it does to stay competitive. Understanding how they manage their logistics can help others figure out their own strategies, whether they're competing or partnering up. Walmart's attention to its drivers also contributes to a better shopping experience, which matters in terms of customer loyalty and sales.
🔥 OUR HOT TAKE?
Walmart's push to deal with what they call a "shortage" of truck drivers is interesting… but not everyone thinks it's all about goodwill. Some experts say this supposed shortage has more to do with how the trucking industry runs things than a real lack of drivers. We need to look closely at whether Walmart's moves are about keeping their supply chain in check or if they're just trying to have more control and cut labor costs.
Daily Riddle:
I help those on the road, it's clear,
Yet I'm often a topic that drivers fear.
It's what they earn for the miles they stray,
Can you guess what I am, in this little word play?
Jan 22 Answer: lithium battery
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 22, 2024, from iLevel Logistics Inc.