😵💫 Derailment delusion
Good morning! Today, we celebrate Nelson Mandela International Day, a day dedicated to honoring the extraordinary life and legacy of Nelson Mandela, the iconic anti-apartheid revolutionary and the first democratically elected President of South Africa. Mandela's commitment to social justice, equality, and reconciliation serves as an inspiration not only in the field of human rights but also in the world of supply chain and logistics. ⭐️
As we celebrate Nelson Mandela International Day, let's remember the profound impact one individual can have in shaping the world for the better. By incorporating Mandela's values of social responsibility, sustainability, collaboration, innovation, and community engagement into our supply chain and logistics practices, we can contribute to a more equitable and prosperous future. 🇿🇦
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A CSX freight train derailed in Whitemarsh Township, Pennsylvania, prompting the evacuation of nearby residents and businesses. No injuries or known hazards to the public have been reported. The derailment involved 16 of the train's 40 cars, and while one car carrying hazardous material was involved, there were no leaks or spills. The cause of the derailment is believed to be weather-related. The derailed train cars carried silicone pellets, which pose no threat to the public.
Norfolk Southern representatives were also at the scene, as the train was operating on its tracks. Pennsylvania Governor Josh Shapiro is monitoring the situation and has urged residents to follow the instructions of local authorities.
Check out today’s featured article from Fox Business to learn more about what this derailment could possibly mean for Norfolk Southern tracks and CSX trains. Will there be more lawsuits against Norfolk Southern? How many more derailments will there be?
Featured Article:
Chipotle tests robot that can prepare avocados to make guacamole faster | CNBC
“No injuries or known hazards to public in Whitemarsh Township, Pennsylvania, officials say.”
Strikes & White House
Teamsters President Urges White House to Refrain from Intervention in Potential UPS Worker Strike
Negotiations between UPS and the Teamsters union, representing 340,000 workers, have reached a standstill, with a looming July 31 deadline for a new contract. The union has threatened a strike if an agreement is not reached by the expiration of the collective bargaining agreement. During a webcast with members, Teamsters President Sean O'Brien expressed his request to the White House, asking them not to intervene if a strike occurs. O'Brien emphasized the desire to keep external forces out of the dispute. The Teamsters represent over half of UPS's workforce, making this the largest private-sector contract in North America.
While tentative agreements have been made on various issues, such as installing air conditioning in trucks and eliminating a two-tier wage system, wage increases for part-time workers remain a key point of contention. UPS recently announced plans to train nonunion employees as a precautionary measure in the event of a strike. This potential strike would be the first since a significant walkout 25 years ago.
Climate Change & Risk
Climate Change Renders Parts of America Uninsurable as Risk Increases
Insurance companies are facing increasing difficulties in providing coverage for damages caused by rising average temperatures, leading them to withdraw from certain markets. State Farm, accounting for a significant portion of the bundled home and commercial insurance policies in California, announced in May that it will no longer accept new applications for property and casualty insurance in the state due to surging construction costs, growing catastrophe exposure, and a challenging reinsurance market. Allstate, the fourth-largest property insurer in California, also made a similar decision last year, citing high costs for repairing homes, wildfire risks, and increased reinsurance premiums. Severe weather events, such as wildfires and heavy rainfall, have contributed to substantial insured losses in California in recent years. Climate change, along with population growth and inadequate land management practices, exacerbates these risks.
Other states, including Louisiana and Florida, have also seen insurers decline coverage due to mounting catastrophic losses. The withdrawal of insurance coverage can have significant economic consequences, influencing behavior among individuals, businesses, and policymakers. Insurance plays a crucial role in determining where people choose to live and whether they can rebuild after a disaster. The impacts of climate change on insurance availability and cost highlight the urgent need for systemic actions to mitigate risks, such as implementing better building codes and reducing greenhouse gas emissions. State Farm's recent decision underscores that climate change is not a distant threat but an immediate concern with tangible effects on people's lives and the financial sector.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🇺🇦 Impending Expiration of Ukraine Grain Deal. The United Nations-brokered Black Sea Grain Initiative, which has facilitated the safe export of 32 million metric tons of food from Ukraine, is set to expire on July 18. However, concerns have been raised about whether Russia will allow the agreement to continue. The deal has been instrumental in addressing the global food security crisis caused by Russia's invasion of Ukraine in 2022. If the agreement expires, it could exacerbate the already severe global food crisis. While efforts should continue to pressure Russia for an extension, this situation also presents an opportunity to strengthen the resilience of food supply chains worldwide. To safeguard access to affordable staple foods beyond the Ukraine conflict, countries should take specific actions to enhance the resilience of their food supply chains.
🇨🇦 Canadian West Coast Ports Strike Ends, but Supply Chain Recovery Expected to Take Weeks. The 13-day labor strike at the West Coast ports in Canada has come to an end, as announced by Canada's Labor Minister and Transport Minister on Twitter. However, the recovery of the supply chain from the strike is expected to take weeks. The strike had significant implications for the Canadian and U.S. economies, causing congestion in ocean cargo, inbound rails, and various sectors such as chemicals, oil, lumber, and construction minerals. While the strike has ended, the congestion and delays caused by the prolonged work stoppage will have lasting effects on the ports. It will take several weeks to regain operational efficiencies and restore normal supply chain flow. The combined delays in vessel wait times, unloading, and container loading onto rails may extend from a month to at least two months for shipments arriving in the United States.
iLevel With You 🏡
More topics for the average American household to consider…
🚗 Tesla Supplier Set to Establish Factory in New Mexico. Auto parts manufacturer Hota Industrial Manufacturing is planning to invest $72 million in setting up a facility in Santa Teresa, New Mexico. The Taiwanese company, which produces automotive gears for electric vehicle (EV) makers like Tesla, aims to begin construction on the plant next year. The new facility is expected to generate 350 jobs initially, with the potential for future expansion over the next decade. Hota currently operates four manufacturing plants in Taiwan and one in China, producing nearly 20 million transmission gears annually. The decision to establish the factory in New Mexico was influenced by the location's proximity to the Santa Teresa Port of Entry, which serves as a key transport hub for the El Paso and Juarez industrial regions. The investment reflects Hota's aggressive expansion plans to meet the growing demand for EVs and strengthen its global supply chain. This development marks a diversification in New Mexico's manufacturing sector, traditionally focused on computer and electronic manufacturing, petroleum, and food and beverage industries.
🌊 America's Most Crucial Waterway Faces Drying Out Crisis. Drought conditions in the Midwest and lower-than-normal rainfall in parts of the eastern U.S. is causing water levels to drop on the Mississippi and Ohio rivers for the second consecutive year. The falling river levels pose a risk to shipping along these crucial U.S. freight routes. Water levels in Cairo, Illinois, have already dropped significantly, and further declines are expected by the end of July. The low water levels can lead to barges running aground and narrow shipping lanes. Currently, about 64% of the Midwest is experiencing drought conditions. The low river levels increase transportation costs and can result in reduced cargo capacity on barges. The U.S. Army Corps of Engineers may need to dredge channels to ensure ship traffic can continue. Last year, the low water levels caused around $20 billion in economic losses. Construction of a saltwater sill has begun in Louisiana to prevent seawater intrusion into the Mississippi River. While traffic on the river continues for now, further declines in water levels may slow barge shipments. The Mississippi system is crucial for transporting commodities such as coal, oil, natural gas, and chemicals, with about 578 million tons of cargo shipped annually along U.S. inland waterways.
🛫 Flying Cars: Are They on the Horizon? The long-awaited era of flying cars may become a reality by 2025 as Tavistock Development Company plans to launch its first flying car service in central Florida. The facility called the Lilium Lake Nona Vertiport, will be built in partnership with German aerospace company Lilium. The region's central location allows for connectivity to major cities like Orlando, Tampa, and potentially St. Petersburg. The all-electric vertical take-off and landing (eVTOL) aircraft will fly from dedicated vertiports, eliminating the need for runways and reducing air pollution. While the service aims to provide a high-speed transportation option, it will initially serve a limited number of planes and is not intended as a mass transit alternative. The Lilium Jet has received the necessary certification for global operations by the Federal Aviation Administration (FAA). Similar projects are also underway in Australia, where regulators are reshaping airspace regulations to accommodate flying taxis utilizing eVTOL technology. Investment firms have recognized the potential of the market, anticipating significant payoffs once these innovative transportation systems become operational.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🚚 EPA's Ambitious Truck Emission Targets. The U.S. Environmental Protection Agency (EPA) has proposed more stringent standards for greenhouse gas emissions from heavy-duty vehicles, aiming to transition to zero-emission vehicles (ZEVs) by model year 2032. The Phase 3 standards would significantly reduce carbon emissions and smog-forming pollutants, addressing climate change and air pollution. While the EPA envisions electric vehicles displacing two-thirds of current commercial truck production, attorney Joe Trione raises concerns about achieving ambitious targets due to challenges in sourcing batteries and expanding production. The comment period for the standards has closed, and it remains to be seen if the EPA will adjust the rules in response to industry concerns.
🙌 Ryder Introduces Mobile Maintenance Service for On-the-Go Repairs. Ryder System has launched Torque by Ryder, a mobile maintenance service that offers on-site repairs for fleets with no long-term contract. Fleet managers can use desktop computers or mobile devices to schedule, track, and pay for maintenance services. Torque by Ryder provides preventive maintenance for trucks, trailers, and liftgate applications, as well as services for tires, brakes, lighting, and more. The service is currently available in select states and plans to expand to additional locations in the coming year. Torque by Ryder operates separately from Ryder's existing maintenance locations and offers a transactional experience for customers. It aims to provide a convenient and efficient solution for fleet managers to maximize uptime and ensure vehicle maintenance.
🤯 US Xpress Executives Assume New Positions within Knight-Swift. US Xpress executives have assumed new roles within Knight-Swift Transportation Holdings after the acquisition. Justin Harness, a long-term executive at US Xpress, has transitioned from his previous position as President of Highway Services to Executive Vice President (EVP) of Operations. In his new role, Harness will oversee the company's operations, including the dedicated fleet, OTR division, and brokerage operations. Former Chief People Officer Amanda Thompson has also taken on a new position as EVP of People and Safety, where she will be responsible for overseeing staffing and safety operations teams. These leadership changes are part of the new structure following Knight-Swift's acquisition of US Xpress, with Tim Harrington becoming President of US Xpress and Joshua Smith assuming the role of CFO.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 27, 2024, from iLevel Logistics Inc.