⚡️✈️🗽 EV Tax Shocks, Haneda Havoc, & Wage York
Good morning! ☀️
Greetings, fellow supply chain enthusiasts - and Happy J.R.R. Tolkien Day! As we embark on this Tolkien-inspired day of adventure, it's time to dive into the latest supply chain news, trends, and insights that will guide you through the intricate and ever-changing landscapes of logistics and procurement.
So grab your virtual hobbit cloak, and let's embark on today's journey through the realm of supply chain excellence. 🧙♂️
“In three words I can sum up everything I’ve learned about life: it goes on.”
Biden | Administration | EV Tax Credit
Biden Administration's New EV Tax Credit Rules Impact Eligible Models
As of January 1st, the Biden administration's updated rules now have a significantly reduced number of electric vehicle models eligible for the popular $7,500 consumer tax credit. The revised criteria have narrowed down the qualifying models from around two dozen to just 13. Notably, the new regulations exclude vehicles that use battery components manufactured by Chinese companies.
The Treasury Department has been in close coordination with automakers to implement these restrictions. They aim to ensure that buyers can still benefit from the new clean vehicle credit while encouraging companies to adjust their supply chains, foster partnerships, and bring investments and jobs back to America.
These rules, unveiled by the Treasury Department last month, target battery components associated with Chinese jurisdiction or those entities at least 25% owned by the Chinese government. In 2025, the restrictions will expand to cover suppliers of crucial battery raw materials like nickel and lithium.
Among the vehicles still eligible for consumer credit are Tesla's Model Y, Rivian's R1T pickup truck, Stellantis' Jeep Wrangler 4xe, and Ford's F-150 Lightning pickup truck.
These adjustments were created by President Biden's climate law, prompted by Senator Joe Manchin, who expressed concerns about U.S. taxpayers subsidizing batteries made in China.
WHY IS THIS IMPORTANT FOR SUPPLY CHAIN INDUSTRY?
These Tax credits impact the trucking, logistics, and supply chain in a multitude of different ways. These new rules mean you need to think twice about which electric vehicles to add to your fleet. That $7,500 tax credit is a nice bonus… and now it's got a shorter list of qualifying models. Your fleet decisions just got a bit trickier.
When they say “no more Chinese-made battery components”, it's not just about the vehicles themselves. Your supply chain might need some tweaking to ensure compliance. That means some logistics juggling.
Hey, every dollar counts in business, right? These tax credits affect your financial planning. Fewer eligible models mean you might not get the tax breaks you were counting on. Budgets need a rethink.
The EV game is all about sustainability, and these changes can impact how quickly your company adopts cleaner transportation. Your environmental goals could get a nudge in either direction. In a nutshell, this info isn't just about regulations; it's about your fleet choices, financial plans, and how fast you go green.
OUR HOT TAKE?
People have mixed feelings about these changes. Some see them as a way to level the playing field and boost local manufacturing, while others think they might put a damper on innovation and global teamwork. When we limit the use of Chinese-made battery components in vehicles, there's concern it could slow down the development of cutting-edge tech. These restrictions could be seen as playing favorites with certain industries, which can spark a debate.
Japan | Airline | Fire
Japan Airlines Flight Catches Fire in Collision at Tokyo's Haneda Airport
In a dramatic incident at Tokyo's Haneda airport, a Japan Airlines flight carrying hundreds of passengers caught fire on the runway after colliding with a Japan Coast Guard aircraft. Tragically, five out of six crew members on the Coast Guard aircraft lost their lives, while the pilot suffered severe injuries. The Coast Guard plane was en route to provide earthquake relief in Niigata.
Japan Airlines reported that all 367 passengers and 12 crew members aboard their Airbus A350 safely evacuated, even though the aircraft was engulfed in flames. Some passengers were taken to a hospital or airport clinic due to feeling unwell.
As a result of the emergency, all runways at Haneda airport were temporarily closed, impacting operations at one of the busiest airports in the Asia-Pacific region. While three runways have since resumed operation, the cause of the incident remains unknown.
WHY IS THIS IMPORTANT FOR THE LOGISTICS INDUSTRY?
When a major airport like Tokyo's Haneda hits the pause button due to an incident, it's like a traffic jam on a highway. Delays can ripple through the supply chain, affecting schedules and deliveries. This incident is a wake-up call for why having a solid Plan B (and maybe even a Plan C) is crucial. How do you handle unexpected disruptions? It's a question we all need answers to.
We're all about different modes of transport – air, sea, land – working together. When air travel goes haywire, it can mean rerouting cargo through other modes, which requires quick thinking and adaptation. Even though this incident involved passenger flights, it's a reminder of how vital cargo safety is. Ensuring that goods remain secure and protected during transit, especially during emergencies, is non-negotiable.
OUR HOT TAKE?
Safety always comes first in the transportation industry, but events like the one at Tokyo's Haneda airport can trigger a bit of an overreaction and overly cautious measures. Of course, passenger and cargo safety is of utmost importance, but shutting down all runways temporarily can bring about significant economic repercussions.
The disruptions caused by closing a major airport affect not only travelers but also the smooth flow of goods in the supply chain. This incident serves as an illustration of how a single event can send ripples through the industry, resulting in financial setbacks and delays that affect a wide range of players.
2024 | Wages | New York
New Year, New Wages, New York
As the United States welcomed the new year, New York's minimum wage got a boost at midnight. Minimum wage earners across the state saw their paychecks increase by 80 cents to a dollar, marking the first step in a gradual series of raises over the next few years.
In New York City and its surrounding suburbs, the minimum wage rose from $15 to $16, while in the rest of the state, it went up from $14.20 to $15. These annual increases will continue until New York City workers reach $17, and those in the rest of the state hit $16, a process set to conclude by 2026.
Washington currently boasts the highest statewide minimum wage at $16.28, closely followed by California at $16. Further increases will be tied to fluctuations in the Consumer Price Index for Urban Wage Earners and Clerical Workers to keep pace with inflation.
This wage hike plan, orchestrated by Democratic Governor Kathy Hochul in collaboration with the state legislature, drew mixed reactions. Business owners voiced concerns about its potential impact on their operations, while some Democrats felt the increases didn't go far enough.
WHY IS THIS IMPORTANT FOR MY INDUSTRY?
So, the minimum wage in New York just got a boost, and that's got our attention. Many employ people who might be affected by this wage hike – drivers, warehouse staff, you name it. That means we're looking at increased labor expenses, and that could impact how we price our services and maintain our bottom line.
We're all about staying competitive in the industry, right? Well, with this wage hike, we might need to tweak our game plan to stay on top while managing those extra labor costs.
In a nutshell, this wage hike isn't just numbers on paper. It's got real-world implications.
OUR HOT TAKE?
While many applaud the idea of a higher minimum wage as a step towards better living standards, there's a flip side to this coin. Some argue that such wage hikes can actually hurt the very people they aim to help. For instance, small businesses and startups, which often operate on tight margins, may find it challenging to absorb the increased labor costs. This could lead to job cuts or reduced hours for existing employees, potentially worsening their financial situations.
In the end, while the intent behind a minimum wage hike is noble, its consequences can be more complex than they appear at first glance.
Daily Riddle:
In labor markets, I take center stage, A wage so low, it sparks a wage. I aim to ensure a fair pay gauge, For workers on the lowest wage.
What am I?
Jan 2 Answer: economics
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.