🪧📦 Strike Stalemate
Good morning! Greetings from the scorching heat of July! As temperatures soar, so does the relentless momentum of the supply chain and logistics industry. With every passing day, new challenges arise, opportunities unfold, and innovations reshape how we navigate the complex web of global trade.
As the mercury rises, so does our commitment to bringing you the most relevant and engaging content. We aim to equip you with the knowledge and tools needed to navigate the complexities of today's supply chain ecosystem, foster innovation within your organization, and unlock new opportunities for growth and collaboration. ☀️🔥
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Contract negotiations between UPS and the union representing 340,000 of the company's workers have reached a deadlock. The Teamsters, the union representing UPS workers, accused the company of walking away from the bargaining table after presenting an unacceptable offer, particularly concerning the economic package. However, UPS claimed that the Teamsters abandoned negotiations despite offering an industry-leading pay package. With the contract expiration looming on July 31, talks remain at a standstill. The Teamsters have already authorized a strike, and their union chief stated that a strike is imminent. If a strike occurs, it would be the first since a 15-day walkout by 185,000 workers 25 years ago.
The potential strike raises concerns about the impact on supply chains and home deliveries, given the reliance on UPS for swift delivery of essential items. Negotiations have shown progress in recent weeks, with tentative agreements reached on various issues. However, with the current stalemate, the economic implications of a strike could be significant, as UPS plays a vital role in the US economy and the supply chain that is still recovering from pandemic-related challenges.
Check out today’s featured article from AP News to read more about the shaky ground between UPS and its unionized workers. What could this mean for shipping over the coming months?
Featured Article:
Stalemate: UPS, Teamsters contract talks break down with each side blaming the other | AP
“Contract negotiations between UPS and the union representing 340,000 of the company’s workers broke down early Wednesday with each side blaming the other for walking away from talks.”
Risk & EV
Allianz Warns of Increasing Fire Risk to Supply Chain from EVs
Allianz Global Corporate & Specialty (AGCS) has issued a warning about the increased fire risk posed by lithium-ion (Li-ion) batteries in the supply chain, particularly due to the rising adoption of electric vehicles (EVs). AGCS highlights the potential danger of "thermal runaway events" in li-ion batteries, where uncontrollable self-heating can lead to the ejection of gas and shrapnel at high temperatures. These incidents can occur in various configurations of Li-ion batteries used in EVs, presenting a concern for warehousing and sea shipping operations.
AGCS emphasizes the need for prevention measures, such as enhanced training, early detection systems, and adherence to safety protocols. The report also provides recommendations for manufacturers, shippers, transporters, and insurance underwriters to mitigate the risks associated with li-ion battery transportation and storage.
Customer Relations & Prices
Colgate's Synergistic Approach
Colgate-Palmolive is exemplifying its commitment to sustainability throughout its supply chain operations. The company integrates sustainability considerations into its decision-making processes, setting aside a minimum of 5% of its capital spending for waste reduction, climate initiatives, and other sustainability efforts. Colgate ensures that new machinery runs on recyclable structures and rejects packaging types that cannot be recycled. Its manufacturing facilities actively compete to reduce waste sent to landfills, with innovative approaches such as repurposing boiler ash. The company approaches sustainability with both "swords" and "shields," where the shields represent mandatory actions driven by regulations and reputational risks, while the swords symbolize voluntary leadership in areas relevant to Colgate's business.
Colgate has taken a pioneering stance on climate action, with net-zero targets approved by the Science Based Targets initiative (SBTi) and a commitment to 100% renewable electricity by 2030. The company is also addressing plastic waste by transitioning to recyclable toothpaste tubes by 2025 and sharing the technology with other brands, leading to a significant increase in the adoption of recyclable tubes globally. Colgate's sustainability efforts align with its supply chain transformation initiatives, including digital system enhancements for improved operational efficiency and reduced environmental impact.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🇨🇳 China's Leap Forward: Securing Africa's Lithium Reserves in the Global Race. China's proactive approach in securing lithium supply from Africa is proving fruitful as it navigates a tight global market for the crucial metal used in electric vehicle (EV) batteries. With significant investments from Chinese companies, African mines are expected to increase lithium production by over 30-fold by 2027, accounting for 12% of global supply. This diversification of supply sources strengthens China's position in EV metals processing and battery component production, while the U.S. seeks to establish its own supply networks with partner countries. Chinese companies, including Ganfeng Lithium Group and Contemporary Amperex Technology Co., have made investments in lithium mines in Mali, the Democratic Republic of Congo, Zimbabwe, and Ethiopia. These investments are vital for China's supply chain to keep pace with the growing demand from its EV manufacturers.
🇯🇵 Japan's Largest Port Hit by Ransomware Attack, Causing Cargo Delays. The Port of Nagoya, Japan's largest maritime port, fell victim to a ransomware attack allegedly carried out by a Russian cybercriminal group, causing significant disruptions to cargo operations. The attack, which exploited vulnerabilities in VPNs and remote desktop protocols, led to an outage at a container terminal, prompting operators to take immediate action to prevent widespread delays. As Asian ports increasingly rely on automation and digital documentation, cyberattacks pose a growing threat to the region's shipping networks. The incident at Nagoya follows similar attacks on ports globally, including in Europe, India, and South Africa. Cybersecurity experts emphasize the importance of promptly updating and patching software to mitigate such attacks.
iLevel With You 🏡
More topics for the average American household to consider…
🚂 Record Railroad Profits Call for 'Do No Harm,' Not Harmful Legislation. The recent legislation proposed by Senators Tammy Baldwin and Roger Marshall called the "Reliable Rail Service Act," has raised concerns reminiscent of the 2008 financial crisis. The senators argue that the record profits of the nation's largest railroads warrant revisiting the "common carrier obligation" rule. However, the legislation is seen as excessive, as it risks interfering with a thriving industry. Instead, it is essential to allow profitable railroads to foster healthy competition naturally. High profits can attract traditional shipping sectors and innovative newcomers, thus ensuring market efficiency. The senators' claims of worsening service and high prices can be addressed by the competitive forces of the market. In a market economy, legislation to encourage competition becomes unnecessary when profits signal the presence of competition.
🎆 The firework supply chain rages on. Fireworks have long been a significant part of cultural and religious celebrations worldwide, including Independence Day in the United States. The journey of fireworks involves a complex and carefully orchestrated supply chain. Raw materials such as sulfur and potassium nitrate are sourced and mixed to create firework components. Manufacturers prioritize safety through rigorous quality control measures and compliance with regulations. Specialized packaging and transportation protocols ensure the protection and safe handling of fireworks. Secure storage facilities and strategic distribution by retailers guarantee widespread availability. Local regulations and permits play a crucial role in governing the sale and usage of fireworks.
💰 Large Companies Face Limits on Delaying Payments. According to recent working capital research by The Hackett Group, the largest US companies are finding it increasingly difficult to extend payments to suppliers, indicating a potential ceiling on the practice of supplier payment terms optimization. The analysis of data from 1,000 of the largest US public companies revealed that days payable outstanding (DPO) decreased by nearly five days in 2022, suggesting a decrease in the ability to delay payments. Companies faced headwinds such as inflationary pressures, supply chain disruptions, and geopolitical instability, resulting in a 3% deterioration in overall working capital performance. The research highlights the challenges companies are facing in maintaining a balance between cash flow management and supplier relationships.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🤯 Autonomous driving curtails driver shortage. The trucking industry is facing a significant driver shortage, leading to increased costs, longer delivery times, and reduced productivity. Self-driving trucks have emerged as a potential solution to this problem, as they could address the shortage of drivers and increase efficiency. However, there are challenges and concerns associated with autonomous trucks, including safety, job displacement, and regulatory issues. While the technology is still in its early stages, the future of trucking automation and the impact of autonomous trucks on the industry are topics of much interest and discussion. Stakeholders are actively exploring and researching the potential benefits and challenges of self-driving trucks to determine their impact on the trucking industry and workforce.
🔋 Ryder's Approach to Ensuring Electric Vehicle Reliability. Ryder, a transportation solutions company, shares insights on its journey of integrating electric vehicles (EVs) into fleets. With a wide range of EV solutions, Ryder conducts comprehensive vetting processes and maintenance training to ensure reliability. They offer a turnkey EV fleet solution and emphasize the need for proper training, diagnostics, and understanding of EV technology to successfully incorporate EVs into fleets. Ryder continues to gather valuable insights on maintenance requirements and plans to improve the longevity and sustainability of EV operations.
🔌 Exploring the Integration of Battery Systems in Locomotives for Grid Support. Researchers in California are investigating the potential of using battery systems in battery-electric locomotives to store power for the U.S. power grid. By utilizing these batteries, energy can be stored and shared among different regions, helping to address reliability challenges during extreme weather events and intermittent power generation. The researchers suggest that deploying rail-based mobile energy storage (RMES) as a backup transmission grid could save costs compared to new transmission lines and stationary battery capacity. However, further study is needed to assess real-world freight scheduling constraints and ensure the feasibility of rail battery storage as a solution. This research aligns with efforts in the North American freight rail industry to reduce greenhouse gas emissions through alternative energy-powered locomotives. The potential for electrifying parts of the rail infrastructure, such as at ports, has also been a topic of discussion.
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.