🧑⚖️🚛🍔 Justice Served, LTL Overhaul, & Pricey Patties
Good morning! ☀️
Grab your coffee and buckle up, because today’s supply chain scoop is a wild ride.
👉 First up, President Biden’s recent op-ed declares that even Supreme Court justices aren’t above the law, calling for term limits and an enforceable ethics code. Could this be the start of a new era of accountability? We’ll keep you posted.
👉 In the business world, TFI International’s CEO, Alain Bedard, zeroed in on the less-than-truckload (LTL) sector, which now makes up 42% of their revenue. It’s clear that LTL is king in the land of TFI.
👉 And on the West Coast, California’s new minimum wage law for fast-food workers has restaurants hiking prices and slashing hours. The ripple effect on supply chains could be significant, so keep an eye on how this unfolds.
Stay tuned for more insights and updates. Let's dash through the day together.
“Strength does not come from physical capacity. It comes from an indomitable will.”
Biden Advocates for Supreme Court Reform
President Biden's recent op-ed drops a bombshell: no one, not even Supreme Court justices, is above the law. He’s pushing for major reforms, including term limits and an enforceable ethics code for the justices. The plan? Appoint a new justice every two years for an 18-year term, and make sure they disclose gifts, avoid politics, and recuse themselves from conflicts of interest.
This comes on the heels of scandals involving Justices Clarence Thomas and Samuel Alito. While the political climate makes these changes a long shot, Biden’s shift in stance is significant. The White House believes these reforms have strong support from independent and Republican voters.
👉 Why should we in transportation and logistics care?
Supreme Court decisions can directly impact regulations affecting our industry. More transparency and accountability could lead to fairer rulings on labor laws, environmental regulations, and business practices that influence logistics operations.
🔥 Hot Take?
Supreme Court shake-ups could steer the future of logistics regulations – more accountability means clearer, fairer rules for our industry. Buckle up, changes ahead…
TFI International's Focus on LTL Sector and Cost Management
Alain Bedard, CEO of TFI International, really hammered home the importance of the less-than-truckload (LTL) sector during their recent earnings call. With LTL now making up 42% of TFI’s revenue, it's no wonder he’s all about it. Their second-quarter operating ratio (OR) is at 90.8%, and while hitting the 88% OR target by year-end is "impossible," they're pushing to get below 90% by slashing costs, especially in the U.S.
TFI's big move into the LTL market, thanks to their acquisition of UPS Freight (now TForce Freight), hasn’t bumped up shipment volumes much. Bedard emphasized the need for serious cost-cutting and better terminal management. He's also looking to shift from retail to industrial freight to boost average shipment weight.
Even though acquisitions have boosted revenue by 26.6%, TFI's net income has dipped slightly, showing just how tough the market is. Bedard’s straight-shooting approach highlights their strategy: rigorous cost management to boost profitability.
Why should you care?
In transportation and logistics, efficiency and cost-cutting are crucial. TFI’s focus on improving its LTL operations and reducing expenses could set a trend. Taking notes from their strategies might help you streamline your own operations and stay ahead.
🔥 Hot Take?
TFI’s cost-cutting spree shows that efficiency isn’t just a goal – it’s a survival tactic in today’s logistics game. Time to trim the fat and streamline operations!
California's Minimum Wage Law Hits Fast-Food Industry
California's new law boosting the minimum wage for fast-food workers is making waves. Since April, 98% of restaurants have upped their prices, and 93% plan even more hikes next year. On top of that, 89% have cut employee hours, with 87% planning further reductions. Staff cuts and consolidations are now the norm, with 70% already making changes and 74% looking at more.
This has many restaurants eyeing expansion outside of California, with 74% worried about potential closures. The law, which raised wages from $16 to $20 per hour for large chains, also set up a Fast Food Council to manage pay and working conditions. Chains like Burger King and In-N-Out have already increased prices to cover costs.
Why Should You Care?
Higher costs and reduced staff in the fast-food industry can ripple through supply chains and logistics. If restaurants are cutting back, they might reduce orders or look for more efficient delivery methods, impacting your business.
🔥 Hot Take?
California’s wage hike could mean leaner logistics – time to gear up for potential shifts in demand and delivery dynamics.
Daily Riddle:
I wrap and protect, in boxes I hide,
Traveling near or far, I’m by your side.
I keep things secure, whether big or small,
What am I called, can you name me at all?
___________
Previous Riddle Answer: Fuel
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for September 20, 2024, from iLevel Logistics Inc.