🍿 Serving Up a Lawsuit
Good morning! Meow-velous greetings to all our logistics enthusiasts and feline lovers! Today, we embark on a paw-some journey as we celebrate National Kitten Day, a purr-fect occasion to combine our passion for supply chain excellence with the adorable charm of kittens. So, sit back, relax, and let us whisker you away into the world of logistics in a truly unique and meow-gical way!
Happy National Kitten Day, and welcome to this paws-itively amazing edition of our logistics and supply chain newsletter! 🐱🐈
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Uber Eats, DoorDash, Grubhub, and Relay Delivery have taken legal action against New York City to challenge the implementation of new minimum pay rules for food delivery workers. The rules - heralded as a national first - are expected to significantly increase average earnings for app-based delivery workers, with a pay rate of $17.96 per hour set to come into effect on July 12. The current average wage for New York's 60,000 delivery workers stands at $7.09 per hour. Seeking a temporary restraining order, the delivery services argue that the changes would lead to higher costs for consumers.
City officials emphasize the importance of fair pay for the hardworking delivery workers who brave various challenges to serve New Yorkers. Under the new rule, food delivery platforms have some flexibility in determining how they compensate their workers, as long as they meet the minimum pay rate requirement.
Check out today’s featured article from AP News to read more about why app-based workers are suing New York City, and what they want their minimum wage to be now. Will this lawsuit be taken seriously? Will there be a backlash?
Featured Article
Food delivery services sue NYC over minimum pay rates for app-based workers | AP News
“Uber Eats, DoorDash, and Grubhub sued New York City on Thursday to block its new minimum pay rules for food delivery workers.”
Deliveries & Warehousing
DHL Express Unveils Sustainable Americas Hub in Atlanta to Strengthen Global Connections and Service Capabilities
DHL Express has officially opened its new Americas region hub at the Hartsfield-Jackson Atlanta International Airport in a grand ceremony. The $84.5 million investment aims to enhance DHL's connections and service capabilities between the United States and key global markets, increasing capacity, speeding up transit times, and adding resilience to its network. The state-of-the-art hub covers an area of 100,000 square feet and establishes direct connections between 19 cities in the Southeastern U.S. and major DHL hubs worldwide, with plans for future flight connections to Hong Kong, Mexico, the UK, and Puerto Rico. The facility sets new sustainability standards by generating up to 50% of its on-site energy consumption through rooftop solar panels and sourcing the remaining energy from renewable sources, resulting in zero emissions from electricity consumption.
The DHL Express Atlanta hub operates as a fully-automated facility equipped with advanced technology capable of sorting up to 20,000 pieces per hour. The hub also prioritizes safety and security, employing in-house Customs brokers and collaborating with on-site U.S. Customs and Border Protection personnel to ensure swift clearance of customer shipments while implementing advanced threat detection and security screening technologies. The company emphasizes its commitment to employee well-being, fostering growth, and success within the organization. DHL's CEO of Americas, Mike Parra, highlights the hub's significance in promoting international trade, economic growth, and job opportunities in Atlanta and the Southeast U.S. while contributing to the prosperity of the surrounding communities.
Pedestrians & US Statistics
Pedestrian Fatalities Soar to a 40-Year High in the United States
Pedestrian deaths in the United States have reached a 40-year high, according to a preliminary report by the Governors Highway Safety Association (GHSA). The report highlights the alarming trend of pedestrian fatalities, with an estimated 7,508 pedestrian deaths in 2022, the highest number since 1981. The increase in fatalities was already occurring before the pandemic, but the COVID-19 crisis exacerbated the situation. In 2021 alone, there was a 13% increase in pedestrian deaths compared to the previous year, with pedestrian fatalities rising by 77% between 2010 and 2021.
Several factors contribute to the growing dangers faced by pedestrians. One significant factor is the design of roads, with wide, high-speed arterial roads known as "stroads" posing a particular risk. These roads lack pedestrian-friendly infrastructure such as adequate lighting and crosswalks, leading to a high percentage of pedestrian fatalities occurring on them. Another factor is the preference for larger vehicles, such as SUVs and trucks, which have become increasingly popular among US consumers. These larger vehicles have larger blind spots and pose a greater threat to pedestrians when involved in accidents. Additionally, the pandemic, social unrest, and a perceived decrease in law enforcement may have contributed to more reckless driving and aggressive behavior on the roads.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🚢 Labor Strikes at Canadian West Coast Ports Lead to Diversion of Containerships to Seattle. Two containerships originally scheduled to dock at the Port of Vancouver have been diverted to the Port of Seattle as labor strikes at West Coast ports in Canada continue for a sixth day. The MSC Sara Elena and OOCL San Francisco are the first of potentially many vessels being rerouted, which could cause delays and strain supply chains. The strikes raise questions about whether workers at American ports will step in to handle the diverted vessels. Canadian Labor Minister Seamus O'Regan Jr. is set to discuss the impact of the strikes on the North American supply chain with Acting Labor Secretary Julie Su.
🛢 Saudi Arabia Raises Crude Oil Prices, Risking Demand Suppression. Saudi Arabia, the world's largest oil exporter, has increased its crude oil prices to Europe, the Mediterranean, and Asia. The state-owned company Saudi Aramco raised prices for all grades of oil to the United States, northwest Europe, and the Mediterranean, surpassing expectations. The price hikes in Europe were particularly significant, with an increase of 80 cents per barrel. Arab Medium crude in the Mediterranean reached a record premium of $3.20 per barrel, while Arab Light reached its highest level since September 2022 at $3.50 above the benchmark.
iLevel With You 🏡
More topics for the average American household to consider…
💰Enphase Begins U.S. Manufacturing of Solar Microinverters in South Carolina. Enphase, a leading solar microinverter company, has commenced manufacturing its IQ8 microinverter in a West Columbia, South Carolina factory. The facility, owned and operated by contract manufacturer Flex, is producing a device that converts solar panel output from direct current to alternating current for residential and commercial use. President Joe Biden visited the factory and highlighted Enphase's onshoring of manufacturing, enabled by the Inflation Reduction Act. The law's 45X provision offers tax credits for microinverters produced in the U.S., incentivizing clean energy companies to bring their manufacturing operations back to the country. The West Columbia factory is expected to create 600 jobs.
🔥 Railroad Industry Challenges Ohio's Minimum Crew-Size Requirement After Train Derailment. The railroad industry has filed a lawsuit to oppose a new regulation implemented by Ohio that mandates a minimum crew size following a train derailment in East Palestine earlier this year. The rule, included in a state transportation budget signed by Republican Governor Mike DeWine, requires freight trains to have a two-person crew and mandates the installation of wayside detectors at shorter intervals of 10 to 15 miles. The Ohio Department of Transportation and the Public Utilities Commission of Ohio are responsible for overseeing these provisions. The railroad industry argues that one-person crews have been used safely for many years and claims that Ohio does not possess the authority to impose a two-person minimum. In the lawsuit filed in U.S. District Court on June 29, just before the rule was set to take effect, the Association of American Railroads asserts that federal law grants federal agencies exclusive jurisdiction over regulating rail transportation and therefore preempts the Crew Size Law.
🚢 California Governor Announces $1.5 Billion Investment to Build Sustainable and Efficient Supply Chain. Governor Gavin Newsom of California has revealed a plan to invest over $1.5 billion in port infrastructure upgrades, including approximately $450 million allocated for zero-emission infrastructure, locomotives, vessels, and vehicles. The initiative aims to enhance the efficiency, sustainability, and resilience of the state's supply chain, which is vital to the national and global economy. The investment will fund 15 projects that are expected to create around 20,000 jobs and increase the capacity for goods movement across California's major trade gateways while minimizing environmental impacts on neighboring communities. The California State Transportation Agency (CalSTA) will administer $350 million for 13 projects that eliminate street-level rail crossings, improve safety, reduce emissions, and ensure the smooth transportation of goods and people.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🚗 Volkswagen to Test Self-Driving Electric Vans in Austin, Texas, and Expand Testing to More US Cities. Volkswagen has announced its plans to commence testing self-driving electric vehicles in Austin, Texas, starting later this month. The company aims to deploy around 10 of its ID Buzz electric vans equipped with autonomous driving systems developed in collaboration with Mobileye by the end of 2023. All self-driving vehicles will initially have human safety drivers on board during testing. The ID Buzz vans are equipped with lidar, radar, and camera systems, and their operations will be limited to specific mapped areas in the city through geofencing technology. Austin was chosen as the first hub for autonomous vehicle testing in the U.S. due to its history of embracing innovation and providing a conducive environment for such trials. Volkswagen plans to expand its fleet in Austin and establish testing operations in at least four more U.S. cities over the next three years. The company aims to offer autonomous ID Buzz vans and fleet management capabilities to businesses involved in ride-sharing or delivery services, rather than launching its own ride-sharing service in the U.S.
🔋 U.S. Electric Vehicle Sales Growth Slows as Dealer Inventory Increases. The growth rate of electric vehicle (EV) sales in the United States has started to decelerate as dealers face an increasing inventory of battery-powered models. In the first half of the year, plug-in EV sales grew by nearly 50%, a slower rate compared to the 65% growth recorded in 2022 and the 71% gain in the first half of last year. This slowdown coincides with a surge in EV inventory on dealer lots, with 92 days' worth of supply in June, compared to the 51 days' inventory for all vehicle models. The mounting inventory of EVs may be a contributing factor to why only 31% of dealers perceive EVs as the future, while 53% of car buyers view them favorably, according to a survey conducted by Cox Automotive. The prolonged presence of excess inventory has raised concerns among dealers.
🪧 Wages for Part-Time Employees Cause Stalemate in UPS-Teamsters Contract Negotiations. The ongoing national contract negotiations between UPS and the International Brotherhood of Teamsters have hit a roadblock primarily due to differing proposals on part-time employee wages, according to Sean O'Brien, the union's general president. In an interview, O'Brien disclosed that there is a significant wage gap of around $6 to $7 per hour between the two parties for both starting rates and long-term rates of pay for part-time workers. The union is preparing for a strike if a deal is not reached before the expiration of the current contract with UPS on July 31. Since Wednesday morning, there have been no further negotiations between the two sides. O'Brien stated that UPS informed them at 4:15 a.m. that they had no more to offer regarding part-time workers, leading to a stalemate in discussions. Part-time employees play a crucial role in UPS' operations, assisting in package sorting and loading, and O'Brien believes they deserve higher wages and increased opportunities for full-time employment.