Blame Barbie 💗
Good morning! Get ready to rev up your engines and queue up for a fast and exciting ride as we celebrate National Drive-Thru Day! While this day is usually synonymous with the convenience of grabbing your favorite fast-food treat from the comfort of your vehicle, we, at iLevel Logistics, want to take this opportunity to appreciate the broader significance of drive-thrus in the supply chain and logistics world.
Picture this: you're craving a delicious burger and decide to hit the nearest drive-thru. As you place your order, well-oiled machine springs into action behind the scenes. From the carefully orchestrated supply chain that ensures a constant stream of fresh ingredients, to the efficient logistics network that delivers them to your favorite fast-food joint, everything works in harmony to make sure your order is served with speed and precision. 🍕🍔🍟
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As the much-anticipated Barbie movie premieres, the world finds itself amidst an unexpected pink paint shortage. However, the shortage cannot be solely attributed to Barbie's love for pink; various factors, including the COVID-19 pandemic and natural disasters, played significant roles in disrupting the supply chain long before 2023.
The Barbie movie's contribution to the paint shortage came when Rosco, already facing low supplies, sold virtually all of its fluorescent pink paint stock to the movie production. As of June 2023, the scarcity persists, affecting companies and industries worldwide. Sherwin Williams, a paint manufacturer, has noted how the paint shortage, along with shortages in other homebuilding sectors, has affected the housing market.
Check out today’s featured article from Resilinc to learn more about what caused this huge ink paint shortage and what could help navigate more potential shortages. Will this shortage affect anything at all? How many more shortages will we face this year alone?
Featured Article:
Did The Barbie Movie Cause a Worldwide Pink Paint Shortage? | Resilinc
“Thousands of loyal fans are excited for the new Barbie movie premiering this July 21, featuring the pink-loving character who was an iconic figure in so many childhoods.”
Company Culture & Inflation
Potential UPS Strike Looms Large: Implications for Inflation Progress
A potential strike by 340,000 unionized workers at United Parcel Service Inc. (UPS) has the U.S. economy on edge, as it could intensify two significant challenges: inflation and supply-chain disruptions. If no labor deal is reached by August 1, members of the International Brotherhood of Teamsters could halt shipments of the 19 million packages that UPS handles daily in the U.S. Such a strike could boost inflation rates, posing further complications to the Federal Reserve's efforts to meet its 2% annual target. The Teamsters' demands for higher wages could trigger salary increases across various industries, leading to spiking wage costs and possible price hikes for consumer products.
The strike would not only affect inflation but also disrupt supply chains. Shippers may experience delays, and businesses may encourage consumers to pick up items in-store instead of relying on deliveries. However, the strike could also prompt businesses to prepare ahead, such as front-loading orders and increasing inventory to minimize the impact. Despite the threat of a strike, Amazon, UPS's largest customer, does not expect significant disruptions, partly due to its last-mile delivery network and the Delivery Service Partner program. However, if the strike happens, parcel-shipping prices may rise, leading to potential price increases for consumers.
Fuel & Declines
Concerns Mount as U.S. Diesel Inventories Remain Depleted Amid Economic Recovery Hopes
Despite an eight-month downturn in manufacturing and freight activity, US inventories of diesel and other distillate fuel oils have failed to recover significantly. As of July 14, distillate fuel oil inventories amounted to just 118 million barrels, marking a concerning situation. Stocks were 15% below the prior 10-year seasonal average, and the deficit had narrowed only modestly from the previous year. Distillate stocks have seen a slight increase from the previous year's levels, but they remain at the lowest point for this time of year since 2004.
The limited scope for replenishing depleted diesel stocks stems from various factors. US refineries are running at high capacities, making it difficult to shift production from gasoline to diesel. Additionally, US gasoline stocks are also depleted, further constraining the possibility of boosting diesel yields. Moreover, distillate inventories in Europe and Singapore are also experiencing deficits.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🇮🇷 U.S. Department of Defense Bolsters Forces in Response to Iran's Ship Attacks. The U.S. Department of Defense has announced plans to deploy additional forces to the U.S. Central Command (Centcom) area of responsibility in response to Iran's attacks and seizures of commercial ships in the Persian Gulf and Gulf of Oman. The deployment includes an Amphibious Readiness Group/Marine Expeditionary Unit (ARG/MEU) in addition to the U.S. Navy destroyer USS Thomas Hudner, F-35s, and F-16s sent to the Strait of Hormuz earlier this week.
🌾 Russia's Exit from Grain Deal with Ukraine Could Escalate Global Food Crisis and Food Insecurity. Russia's decision to withdraw from a grain export deal with Ukraine has escalated concerns about global food supplies and prices. The Black Sea grain-shipping corridor, crucial for Ukraine's crop exports to the world, has been affected, with Russia attacking Ukrainian agricultural terminals, destroying grain, and threatening vessels in the region. The US has also accused Russia of laying mines at Ukrainian grain ports. The disruption has led to soaring wheat futures prices, raising fears of global food inflation after a period of price moderation. Ukraine's crops, which are sent to countries in Africa and Asia, rely heavily on the Black Sea corridor, accounting for about half of the volumes in the past year.
iLevel With You 🏡
More topics for the average American household to consider…
🤝 Biden Administration's New Merger Guidelines Criticized as a 'War on Business’. Former Treasury Secretary Larry Summers criticized the US government's new rules on mergers and acquisitions, calling it a "war on business." He expressed concern over the 13 fresh guidelines released by the Justice Department and Federal Trade Commission, which aim to protect Americans from monopoly power and promote competitive markets. Summers argued that these guidelines, moving away from an emphasis on lower consumer prices to broader abstractions, pose a substantial risk and might be pushing into problematic territory. He expressed disappointment with the new rules and suggested that the government should have taken the opportunity to rationalize policies rather than intensify the crackdown on business mergers.
🛫 Declining Cargo Revenue Signals Optimistic Travel Industry Recovery for Airlines as Travel Demand Rebounds. Airlines' cargo revenue is experiencing a significant slump, with Delta, United, and American reporting year-over-year declines of about 40% in their second-quarter cargo revenue. However, this decline is actually a positive sign for the travel industry's recovery. As travel demand rebounds, airlines are seeing record revenue, reducing the importance of cargo revenue that once helped sustain them during the pandemic's travel plunge. During the pandemic, air cargo became crucial for passenger carriers, as it helped them stay afloat when bookings dropped and travel restrictions were imposed. However, as travel demand returns, airlines are adding back passenger flights, increasing the supply of cargo space available. Concurrently, demand for air cargo is decreasing, leading to a drop in cargo rates.
💻 Tech Giants Commit to AI Safeguards in Deal with Biden Administration, But Regulation Concerns Remain. Several major tech companies, including Amazon, Google, Meta, Microsoft, and others, have made voluntary commitments to meet a set of artificial intelligence (AI) safeguards brokered by the White House. The commitments aim to ensure the safety of AI products before they are released and address risks such as cybersecurity, biosecurity, bias, discrimination, and potential dangers posed by advanced AI systems. The companies have also pledged to report flaws and risks publicly and use digital watermarking to distinguish real content from AI-generated deepfakes. While this is a positive step towards managing the risks of AI technology, some advocates call for more comprehensive public deliberation and legislation to hold companies accountable.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🤠 OnTrac Expands Delivery Services to Texas, Reaching 80% of the U.S. Population Across 31 States. OnTrac, an e-commerce parcel carrier, has expanded its delivery network into major Texas markets, including Dallas-Fort Worth, Austin, Houston, and San Antonio. This expansion allows OnTrac to offer next-day delivery to an additional 19 million consumers. The company has established a sortation hub in Dallas to facilitate deliveries in the state. The move comes after OnTrac's merger with LaserShip in 2021, and the company aims to position itself as an alternative to larger parcel carriers like FedEx and UPS. Despite increased competition in Texas, OnTrac seeks to leverage its networks to reach 80% of the U.S. population across 31 states and Washington, D.C. However, the overall demand for delivery services has cooled down, leading retailers to diversify their shipping options.
🚛 Amazon's Carbon Emissions Dip for the First Time Due to Renewable Energy Purchases and Slower Sales Growth. Amazon reports a decrease in carbon emissions for the first time since the company began reporting the figure. The reduction is attributed to increased purchases of renewable electricity and a slowdown in the retailer's sales growth. Amazon has been the biggest corporate buyer of renewable electricity, and emissions related to electricity purchases fell 29% last year. The company aims to wipe out or offset its contribution to greenhouse gas emissions by 2040 and has seen a 24% reduction in carbon intensity, thanks to its renewables push and the addition of electric vehicles to its delivery fleet. However, some critics argue that Amazon undercounts its impact and cheapens its net-zero goal by excluding emissions produced by manufacturers it directly purchases goods from and independent merchants selling products on its retail site.
🚚 Kodiak Robotics Leads Pilot Program for Autonomous Truck Inspections, Streamlining Roadside Interactions. Kodiak Robotics is leading the pilot of the Commercial Vehicle Safety Alliance's new protocol for autonomous trucks called the Enhanced Commercial Motor Vehicle Inspection Standard program. This protocol enables autonomous trucks to pre-clear roadside inspections, streamlining interactions between them and law enforcement at fixed inspection sites. The program requires a thorough inspection by a CVSA-certified inspector and allows autonomous trucks to communicate the inspection outcome and safety information to roadside enforcement officers. Trucks that follow the approved process will be exempt from routine inspections at weigh stations and other sites. Kodiak, along with Drivewyze and the Texas Department of Public Safety, is piloting the program in Texas and aims to expand it to other states. The initiative creates new private-sector jobs for autonomous vehicle inspectors, certifying high safety and maintenance standards for self-driving trucks.
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.