🚗🪽 Flying Car Fiasco
Good morning! Happy National Graham Cracker Day! Today, as we commemorate the delicious and versatile graham cracker, we are reminded of the incredible journey that each crumb takes from its humble origins to our eager taste buds. It's a journey that involves an intricate dance of supply chain and logistics, seamlessly connecting manufacturers, distributors, retailers, and, ultimately, consumers.
So grab your s’mores and read the Work Day Dash on this fine Wednesday! ☀️
——————————
The Federal Aviation Administration (FAA) has granted an airworthiness certificate for testing a groundbreaking vehicle known as the "Model A," developed by California startup Alef Automotive. Touted as a flying car, this vehicle is the first fully electric flying and road-capable vehicle to receive US government approval. The Model A offers the unique ability to function as a regular car on public roads while also having vertical takeoff and landing capabilities. It can accommodate one or two occupants and boasts a road range of 200 miles and a flying range of 110 miles.
Alef Automotive plans to sell the vehicle for approximately $300,000 each, with the first deliveries expected by the end of 2025. The FAA's special airworthiness certificate allows Alef to conduct limited testing, including exhibition and research and development purposes.
Check out today’s featured article from ABC to read more about what the future of flying cars will be like. Will flying cars be the new norm in the next 20 years? Is the price of the car reasonable?
Featured Article:
A flying car prototype just got an airworthiness certificate from the FAA | ABC
“‘Model A’ is the first flying vehicle that is drivable on public roads and able to park like a normal car.”
West Coast & Strikes
West Coast Port Workers in Canada Commence Official Strike
The International Longshore & Warehouse Union (ILWU) Canada's Longshore Division has officially begun a strike, impacting West Coast ports in Canada, including Vancouver and Prince Rupert. Over 99% of union members voted in favor of the strike last month, with notice of the strike given this week. The ILWU Canada Longshore Division, in a Facebook post signed by union president Rob Ashton, expressed their hope for a settlement through free collective bargaining while emphasizing the significance of the strike for the future of their workforce. The union remains open to negotiations and has been in discussions with the British Columbia Maritime Employers Association (BCMEA), which represents port owners.
The BCMEA has stated that it has made proposals in good faith to achieve a fair deal, welcoming any balanced agreement that can be reached, including mediated arbitration. While cruises and bulk grain shipments continue, containerized grain movements have been affected. The strike raises concerns about potential impacts on the American economy, as these ports serve as crucial entry points for goods arriving from Asia. The Port of Vancouver and the Port of Prince Rupert are popular destinations for U.S. trade. Congestion and backlogs could occur, leading to delayed pickups, additional fees, and disrupted supply chains. The strike revolves around contentious issues such as automation, the use of contract work, and workers' cost of living. The involvement of Canadian mediators and discussions between the parties had taken place until May, followed by a cooling-off period.
Tesla & Prices
Tesla Shares Soar as Price Reductions Drive Surge in Car Deliveries
Shares of Tesla experienced a significant surge on Monday morning following the announcement of a record number of car deliveries in the second quarter. The achievement validates CEO Elon Musk's strategy of stimulating demand by aggressively discounting prices. Tesla reported delivering 466,140 vehicles in the second quarter, a 10% increase from the previous quarter and an impressive 83% increase compared to the same period last year. The deliveries comprised 446,915 Model 3/Y vehicles and 19,225 Model S/X vehicles. Analysts pointed out that Tesla's price reductions have proven to be highly effective, with Gene Munster, managing partner at Deepwater Asset Management, highlighting the notable growth in deliveries this quarter compared to previous quarters. The gap between vehicles produced and deliveries also narrowed, indicating improved operational efficiency.
Tesla's stock responded positively to the news, with an increase of nearly 7% on Monday, reaching around $276 per share—more than double its price at the beginning of 2023. Several analysts raised their price targets on Tesla stock, suggesting that the company's annual delivery target of 1.8 million vehicles could be conservative, as it has already achieved around half of that goal in the first half of the year. Despite the positive outlook, there are concerns about margins and profitability. Analysts predict a decline in gross margins from the first quarter to the second quarter, expecting Tesla to further lower prices to meet volume targets, potentially impacting margins.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🌊 AD Ports Group Expands Global Footprint with $720 Million Acquisition of Spanish Logistics Leader. Abu Dhabi-based AD Ports Group has successfully acquired Noatum, a leading provider of integrated logistics services operating in 26 countries worldwide. The acquisition, valued at $720 million, allows AD Ports Group to obtain 100% ownership of the Spain-headquartered company. Noatum reported revenue of EUR1.6 billion (AED6.4 billion) and EBITDA of EUR111.6 million (AED448 million) over the past twelve months, meeting performance expectations. The transaction was approved by the European Commission earlier this year and received final clearance from Spanish authorities. The acquisition brings several advantages, including revenue growth, cost savings, joint purchasing, knowledge sharing, access to market expertise, and the adoption of advanced technologies. Noatum's integration into AD Ports Group began on June 30, facilitating the collaboration of both companies to create a global powerhouse in the logistics industry.
🇨🇳 China's Metal Export Restrictions Send Ripples Through Chip Sector. The recent announcement by China to impose export curbs on metals used in chipmaking has triggered concerns and evaluations among trade officials. South Korea and Japan are assessing the impact of China's decision to control the exports of gallium and germanium, essential metals for chip manufacturing, electric vehicles, and telecom products. While South Korea's commerce ministry stated that the measure could potentially expand to cover other items, Japan kept the possibility of action at the World Trade Organization opens to oppose any violation of international rules. The move is expected to have a short-term impact on prices and prompt countries like Taiwan, South Korea, and Japan to reduce their reliance on China for critical materials. Germany, Europe's largest importer of these metals, highlighted the vulnerability of Europe's dependency on China. The acquisition of these metals by China is significant, as the country dominates the production of many raw materials crucial to modern technology and infrastructure.
iLevel With You 🏡
More topics for the average American household to consider…
🇺🇸 Bristol Gears Up for 238th Parade: America's Oldest Continuous Fourth of July Celebration. Residents and visitors eagerly lined the streets of Bristol in the early morning to secure a prime spot for the Fourth of July parade. This year marks the 238th anniversary of the parade, making it America's oldest continuous celebration of Independence Day. To facilitate the festivities, several road closures were put in place. Chestnut Street, Naomi Street, Sherry Avenue, and Hope Street were closed to traffic at specific times. It's important to note that alcohol, fireworks, and poppers are not permitted during the parade. Additionally, participants and spectators are required to walk along the parade route, with bikes and skateboards needing to be carried.
🚛 Diesel Price Hits New Low as Oil Market Declines. For the 20th time in 22 weeks, the benchmark price of diesel, commonly used for fuel surcharges, has decreased. The Department of Energy/Energy Information Administration reported a decline of 3.4 cents per gallon, bringing the price down to $3.767, the lowest since January 2022. Over the past several months, the price has dropped by 85.5 cents per gallon, indicating a significant downward trend. In addition to these price declines, the spot market differentials, which determine wholesale diesel prices in specific regions, are also weakening. The spot market prices in various markets, including the Buckeye Pipeline complex and Chicago, have witnessed sharp falls. This reduction in spot diesel differentials is already impacting prices, with wholesale diesel prices in Philadelphia decreasing by more than 14 cents per gallon.
🔋 Volvo Cars Partners with Maersk's ECO Delivery Ocean Solution to Cut Greenhouse Gas Footprint. Swedish car manufacturer Volvo Cars have partnered with Maersk to decrease its global greenhouse gas (GHG) emissions from seaborne logistics. Maersk's ECO Delivery Ocean solution, which replaces fossil fuels with second-generation biodiesel derived from waste feedstocks on its ships, will be utilized. This initiative allows for the direct reduction of GHG emissions in the ocean supply chain without relying on offsetting measures. By employing Maersk's ECO Delivery Ocean solution for inbound ocean container transports of production material and spare parts distribution, Volvo Cars aim to reduce its GHG emissions by 28,000 tonnes within the next twelve months. Both Volvo Cars and Maersk share the goal of achieving net-zero greenhouse gas emissions by 2040 and recognize the significance of collaboration in driving decarbonization efforts.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🤯 XPO Logistics Expands Salt Lake City Service Center. XPO Logistics, a prominent freight transportation provider in North America, has completed the expansion of its Salt Lake City service center. The expansion includes the addition of 58 doors and an increase in the yard space by approximately 170,000 square feet. The expansion aims to improve operational efficiency, accommodate growing freight volume, and better serve customers in the Salt Lake City market. The company plans to hire additional staff, including dockworkers and driver sales representatives, to support the expanded facility. This expansion is part of XPO's strategy to enhance its North American network and provide excellent service to its customers.
⛽️ Sheetz Celebrates Fourth of July with Gas Prices Dropping to $1.776 per Gallon. Sheetz, a convenience store chain, has attracted long lines of vehicles at select Pennsylvania locations as customers take advantage of their Fourth of July promotion, offering gas prices at $1.776 per gallon. The reduced pricing is in commemoration of the year when the Declaration of Independence was signed. The promotion began on July 4 and will last throughout the day or until promotional gallons run out. The discounted price applies to various fuel grades at Sheetz locations in Pennsylvania, Maryland, Ohio, North Carolina, Virginia, and West Virginia, excluding diesel fuel. Sheetz aims to assist its customers during the holiday and celebrate the nation's birthday with this discount.
🖥 Think Tank Urges Government to Implement Policies in Support of Warehouse Automation. A think tank, the Information Technology and Innovation Foundation, has called on policymakers to support the adoption and innovation of robotics in warehouses to enhance labor productivity, worker safety, delivery times, and supply chain resiliency. The think tank suggests several policy recommendations for Congress and the Biden administration, including enacting tax policies that encourage investment in automation, prioritizing robotic automation in government warehouses, increasing funding for robotics research, modernizing safety standards for machinery, supporting small logistics and warehousing companies, creating a national robotics awards program, raising the minimum wage to incentivize automation investments, supporting workers displaced by automation through job training and unemployment compensation programs, and launching an advisory committee for robotics innovation and adoption.
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.