💦💊🇨🇳 Butte Bottleneck, Drug Drought & Tariff Tango
Good morning! ☀️
Buckle up for your daily dose of logistics news, where the challenges are real, and the coffee is strong.
👉 First up, New Mexico is in hot water—or rather, not enough water. The Rio Grande's flow into Elephant Butte is falling short of state commitments. If this keeps up, Texas might turn up the heat with stricter groundwater rules, putting a squeeze on our ranchers and farmers.
👉 In other news, the 18-month shortage of crucial diabetes drugs like Trulicity, Ozempic, and Mounjaro continues, leaving patients in a tough spot and supply chains scrambling.
👉 And just to keep things spicy, the Biden administration is cracking down on China’s sneaky tariff-dodging tactics with new tariffs on steel and aluminum routed through Mexico. Time to tighten those routes and keep your operations smooth.
Stay sharp and keep dashing through the day. 🚚💨
“In three words I can sum up everything I’ve learned about life: It goes on.”
Water Woes at Elephant Butte
In June, New Mexico's state engineer sent a heads-up to the Middle Rio Grande Conservancy District (MRGCD) about some serious water challenges at Elephant Butte. Thanks to restrictions on the Rio Chama, the Rio Grande can’t get the boost it needs, as noted by MRGCD's chief engineer, Jason Casuga.
The water flow into Elephant Butte is falling short of state commitments. If New Mexico can’t make up the difference, Texas might tighten the rules, affecting groundwater use and impacting our hardworking ranchers and farmers.
Casuga stressed the urgent need for stored water, saying, "We're largely unable to use our stored water again." The current agreement allows Texas to restrict New Mexico's water usage, hitting irrigation and livestock water supply, which could drive up the cost of farm goods like chile.
The MRGCD is committed to working with the state to stay compliant and support the farmers and irrigators in the Middle Rio Grande Valley.
Why This Matters to Us:
In the transportation and logistics game, water shortages can mess up the whole supply chain. If farmers can’t irrigate their crops, there's less produce to transport, and the cost of goods like chile could skyrocket. This means higher transportation costs and potential delays, impacting our bottom line
🔥 Hot Take:
New Mexico's water issues at Elephant Butte could ripple through the logistics industry, driving up costs and creating supply chain headaches. Time to keep an eye on those water levels!
Diabetes Drug Shortages Is A Growing Concern
Jim Cox, a Type 2 diabetes patient, never thought he'd be hit by the Ozempic shortage. But when his go-to med, Trulicity, was out of stock, he had to ration his doses. This GLP-1 drug shortage (think Trulicity, Ozempic, and Mounjaro) has been dragging on for 18 months, making diabetes management tough and risky.
Ro, a telehealth company, stepped up with a tool to track these shortages. In just two weeks, they got 35,000 reports! The demand, driven by marketing and off-label weight loss use, has outstripped supply.
Patients like Cox are understandably frustrated since these meds are essential for managing diabetes. While some pharmacies are prioritizing diabetes patients, it's a controversial move. The drugmakers are boosting production, but the end of the shortage is still up in the air.
Why This Matters:
For us in the transportation and logistics industry, this highlights potential supply chain weak spots. When pharmaceutical supplies falter, it means delays and higher costs.
🔥 Hot Take:
Diabetes drug shortages show how supply chain issues can ripple through industries. Time to tighten up logistics and ensure critical meds stay stocked!
Biden Cracks Down on Chinese Steel and Aluminum via Mexico
On Wednesday, the Biden administration dropped some big news: new tariffs to stop China from dodging U.S. tariffs by routing steel and aluminum through Mexico. Now, Mexican steel processed outside North America faces a 25% tariff, and aluminum with metal from China, Belarus, Iran, or Russia gets hit with a 10% tariff. These changes are live and aim to close a loophole letting subsidized Chinese metals slip through.
Mexico is also upping its game, requiring more details about steel origins. This follows their recent tariff hikes on steel and aluminum.
Lael Brainard from the White House’s National Economic Council stressed the need to protect American factories and workers from unfair trade. With 3.8 million tons of steel entering the U.S. from Mexico last year, it’s clear this is a significant issue.
While some industry leaders praise the move, others feel it doesn’t fully address the surge in Mexican metal imports, suggesting a tilt towards Mexican interests over American workers.
Read more at The New York Times >
Why This Matters:
For those of us in transportation and logistics, these new tariffs could mean delays and higher costs for shipping steel and aluminum. If Mexican suppliers face tariffs, those costs might trickle down, impacting your operations and bottom line.
🔥 Hot Take:
Biden's new tariffs on Mexican steel and aluminum could shake up the logistics game. Keep an eye on costs and routes to stay ahead!
Daily Riddle:
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I guide the flow but I'm not a stream,
I set the rules, shaping every scheme.
Invisible lines, yet firmly in place,
Keeping order in each space.
What am I?
____________
Previous Riddle Answer: Stick Shift
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for December 24, 2024, from iLevel Logistics Inc.