Yellow union halts strike 🟡
Good morning! Today we celebrate National Carousel Day on July 25th, the supply chain and logistics industry is taking a whirlwind ride of its own, navigating through dynamic challenges and embracing innovative solutions. Just like a carousel, the supply chain continuously moves, transporting goods and services from one point to another.
Join us in this special edition of our newsletter as we explore how various logistics companies are embracing technology and efficiency to keep the supply chain spinning smoothly. So, hop on, and let's embark on this exciting journey together! 🎡
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Teamsters' strike against Yellow Corp., a for-hire FleetOwner 500 carrier, was temporarily averted as the workers' health care and pension fund, Central States, agreed to extend health care benefits for two Yellow operating companies, YRC Freight, and Holland. The strike was threatened after Yellow failed to make payment and sought an injunction to stop the strike.
The agreement gives Yellow 30 days to pay its bills with the understanding that the company will do so within the next two weeks. The parties are now heading for negotiations as Teamsters General President Sean M. O'Brien ordered the union's negotiating committee to meet with Yellow representatives in Washington, D.C., to review the company's state and current contract. Yellow's third restructuring in 15 years faces challenges due to labor resistance and financial troubles.
Check out today’s featured article from Fleet Owner to read more about why the strike that had over 22,000 Teamsters against Yellow ended and what it might mean for future strikes. Will Yellow Corp. agree to the ultimatum? What will happen in a month if they do not agree to the conditions?
Featured Article:
Union calls off strike against Yellow after benefits concession | Fleet Owner
“The mega carrier’s Teamsters were set to walk out today after a judge on July 21 blocked Yellow’s request for an injunction to stop a strike, but the primary roadblock was cleared after their health and pension fund agreed to extend benefits.”
Weapons & Supply Chain
U.S. Department of Defense Faces Supply Chain Challenge in Scaling Up Hypersonic Weapons Production
The U.S. Department of Defense (DOD) aims to expand the production of hypersonic weapons, but a lack of a suitable supply chain is hindering progress. A report by the National Defense Industrial Association’s Emerging Technologies Institute highlights DOD's inconsistent commitment to fielding hypersonic systems at scale. The insufficient manufacturing base, limited supply of critical materials, testing infrastructure, and workforce capacity are major challenges.
Hypersonic weapons, traveling over five times the speed of sound, evade traditional defenses and pose a significant threat. The report emphasizes the need for investment in high-temperature materials production, workforce development, and sourcing agreements with allies to reduce reliance on China.
Infrastructure & Law
Over 700 Georgia Bridges Deemed Inadequate for Heavier Trucks Permitted by New Law
More than 700 bridges in Georgia are unable to handle the increased weight limits approved by lawmakers earlier this year, as reported by Deputy Chief Engineer Andrew Heath to the State Transportation Board. The Georgia Department of Transportation and local governments will be posting weight restriction signs on these additional bridges by September 2. The law signed by Gov. Brian Kemp allows trucks hauling specific commodities, including logs and farm products, to have a weight limit of 88,000 pounds, up from the previous 80,000 pounds on state roads with a variance of up to 84,000 pounds. However, even before the higher weight limit, transportation officials had identified 1,363 of Georgia's nearly 15,000 bridges as unable to safely withstand maximum weights.
The heavier trucks permitted under the new law can only travel on local roads and state highways, excluding interstates, and are required to stay within 150 miles of their home base and avoid 13 core counties in metro Atlanta. The increased weight limits are set to expire on July 1, 2025, following a contentious legislative session. Supporters of the law, including logging, farming, and trucking groups, argue that it will save costs by enabling more freight per trip. However, opponents express concerns about potential damages to roads and bridges, costly repairs, and the possibility of increased stopping distance leading to more accidents.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🇷🇺 Russia Targets Ukrainian Grain Warehouses in Drone Attack, Prompting Fears of Escalating Conflict. A drone attack conducted by Russia targeted more than 700 grain warehouses on the Danube River in Ukraine, damaging crucial infrastructure for Kyiv's grain export route. The attack comes as part of an expanding air campaign by Moscow, following its withdrawal from the Black Sea grain deal. In response to the drone attack in Moscow, Russia spoke of taking harsh retaliatory measures against Ukraine. These incidents have raised concerns about the security of grain exports and shipping, impacting global wheat and corn futures, and adding to the geopolitical instability in the region.
🇻🇳 US Treasury's Yellen Views Vietnam as Crucial Partner in 'Friendshoring' Supply Chains. U.S. Treasury Secretary Janet Yellen highlighted Vietnam as a crucial partner in expanding green energy sources and building resilient supply chains during her speech in Hanoi. Yellen praised the growing trade between the two countries and emphasized the increasing investment in Vietnam's semiconductor sector, including by U.S. companies like Amkor and Intel. The visit is part of the U.S.'s efforts to enhance ties with Vietnam as it seeks to reduce reliance on Chinese supply chains and strengthen trade with trusted partners. Yellen's "friendshoring" drive aims to include advanced economies, emerging markets, and developing countries in its efforts to build strong relationships and address the climate crisis.
iLevel With You 🏡
More topics for the average American household to consider…
🚶🏻 Pedestrian deaths and safety that may slow it. Pedestrian deaths in the United States have been on the rise for the past decade, reaching a 40-year high of over 7,500 fatalities last year. The increase is attributed to two main factors: larger vehicles on the roads and the growing number of people living in areas with dangerous road conditions. The trend of bigger cars, particularly SUVs and pickups, has made roads more perilous for pedestrians, cyclists, and those driving smaller vehicles. Additionally, the lack of interest from the federal government in addressing the issue has hindered efforts to improve pedestrian safety. European and Japanese countries have seen a decline in pedestrian fatalities due to factors such as narrow roads, low-speed limits, expansive public transit, and vehicle testing and rating for pedestrian safety. However, the U.S. has failed to implement similar measures, leading to a persistent rise in pedestrian deaths.
💻 Remote Employees Work Longer and More Diligently. The COVID-19 pandemic forced a massive shift to remote work, leading to a surprising revelation that remote employees are not slackers but, in fact, work slightly longer hours than their office-based counterparts. Studies indicate that remote workers have shown a 10% boost in weekly hours and improved productivity. The rise of remote work has also reshaped the American workplace, with almost 30% of all work happening at home compared to 5% before the pandemic. However, some challenges persist, such as potential moonlighting and work-life balance issues. While remote work offers flexibility and perks, it may also blur the boundaries between work and personal life.
🔋 U.S. Climate Law Drives Clean Energy Investment and Manufacturing Boom. The US climate law, the Inflation Reduction Act (IRA), which passed one year ago, has accelerated the adoption of clean energy technology in the country. The law offers tax credits for clean energy installations, incentivizing families and businesses to invest in solar panels and other renewable energy sources. The IRA has also spurred significant investment in battery and electric vehicle (EV) manufacturing facilities, boosting domestic clean energy production and reducing reliance on fossil fuels. While the law has faced some opposition, its impact on clean energy adoption and greenhouse gas reduction has been remarkable, signaling a transformative shift towards a greener future for the US.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🚛 Automatic emergency braking systems are becoming more common. The development and implementation of autonomous vehicles (AVs) have raised questions about their safety and reliability. Automatic emergency braking systems (AEBs) have emerged as a critical safety feature that uses radar, lidar, and cameras to detect objects and proactively prevent collisions. AEBs have shown significant success in reducing accidents and are gaining support, with proposed rules mandating them on all new Class 3-8 commercial vehicles. However, some issues, such as "phantom braking," have been reported, making it essential for fleets to take driver complaints seriously and explore ways to improve the technology's performance. Maintaining AEBs requires a holistic approach and proper calibration to ensure their correct functioning and safety benefits.
🚢 Port of Oakland Sees Decline in Container Volume in June 2023, Aims for Recovery with Labor Agreement and Improved Operations. The Port of Oakland experienced a decline in total container volume in June 2023 compared to the same month last year. Full TEUs dropped by 26.5%, with imports and exports also experiencing significant declines. Importers had been diverting cargo to East Coast and Gulf Coast ports due to labor negotiations uncertainty, but with a recent agreement reached, cargo is expected to return to West Coast ports. While challenges like weak consumer demand and high inventory levels persist, operational improvements and settlement of labor contracts offer opportunities for container volume recovery. Ships' average stay in port has improved, leading to greater efficiency in maritime operations.
🔋 WattEV Launches Public Truck Charging Depot at Long Beach Port. Truck-as-a-Service (TaaS) startup WattEV has opened its first public charging depot at the Port of Long Beach, providing charging services to all truck operators rather than just exclusive fleets. The company has received grants and raised funds to acquire electric trucks and set up charging infrastructure. The Long Beach facility has 5 megawatts of charging capacity, with plans to expand to 8 MW in the future. WattEV is also planning to open more depots in Gardena, San Bernardino, and Bakersfield later this year. The company aims to provide charging options to customers with trucks but no charging facilities, as well as operate its own trucks for testing purposes.