🚛 Swift’s Slow Start
Good morning! On this delectable occasion of World Chocolate Day, we're thrilled to dedicate the Workday Dash to the happiness that a cool chocolate bar can give to an individual on a hot summer day. We're here to satisfy your cravings for tantalizing insights, mouthwatering updates, and scrumptious tales.
So, grab your favorite chocolate bar, settle into a cozy spot, and indulge your curiosity. We invite you to join us on this mouthwatering journey as we celebrate World Chocolate Day! 🍫
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Knight-Swift Transportation Holdings is expecting a decline in its operating performance, projecting a decrease of 11 to 12 percentage points in consolidated operating margins compared to the previous year's quarter. The decline is primarily attributed to the full truckload market, which has experienced persistently soft demand, resulting in increased pressure on volumes and pricing. Despite stable costs on a sequential basis, the company's operating income for the truckload segment dropped significantly from $205.1 million in Q1 2022 to $115.9 million in Q1 2023.
Other carriers, including P.A.M. Transportation Services, have also faced challenges in the troubled market, with operating income plummeting from $31.3 million to $8.5 million during the same period. Knight-Swift's updated outlook follows its recent acquisition of U.S. Xpress Enterprises and will be reflected in the company's upcoming earnings release on July 20.
Check out today’s featured article from Transport Dive to read more about the Knight-Swift operations and why its taking such a large hit. Will they be able to get through this slump? Will there be even more of a decrease in percentage points?
Featured Article:
Knight-Swift operating margins take a hit amid sluggish demand | Transportation Dive
“The carrier expects consolidated operating margins will decrease 11 to 12 percentage points from what it expected for the quarter YoY.”
Abuse & Mining
Allegations of Dozens of Abuses Surface in Critical Minerals Supply Chains
A report released by the Business and Human Rights Resource Center sheds light on numerous labor and environmental abuses allegedly committed by Chinese-invested companies involved in mining and processing minerals used in renewable energy. The report identified 102 cases of alleged abuses across all phases of mineral utilization, including exploration, licensing, mining, and processing.
Countries such as Indonesia, Peru, the Democratic Republic of Congo, Myanmar, and Zimbabwe were among those with the highest number of reported cases. The abuses primarily impacted Indigenous communities, and the lack of options for seeking remedy in mineral-rich countries exacerbated the situation. The report underscores the importance of addressing these issues to ensure a fair and equitable transition to clean energy while meeting climate goals.
Economy & Demand
Job Market Sees an Influx of Female Workers, Coinciding with Critical U.S. Demands
After facing uncertainty about their employability due to extended absences from the workforce, women like Deandrea Rahming are finding eager employers ready to hire as the U.S. job market continues to thrive. The share of working-age women between 25 and 54 who are working or seeking employment reached an all-time high in May, indicating a significant rebound in women's workforce participation. This resurgence is attributed to women's determination to play a major role in the economy and their ability to quickly return to work due to their extensive work experience and resilient resumes.
Employers, recognizing the need for more workers, particularly amidst a tight job market, are becoming more flexible to accommodate the demands of working parents, leading to a rise in the employment of women. Despite ongoing challenges such as childcare shortages and the lack of paid parental leave, the newfound understanding of the intersection between caregiving and careers, coupled with a strong job market, has made employers more willing to tap into the talent pool of women returning to work.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🚢 IMO Pushes for Shipper Compliance, Amid Debate Over Realistic Goals. The International Maritime Organization (IMO) is currently convening in London to discuss the progress of pollution-reducing policies in ocean shipping and set new emission targets. While some countries, led by the United States, advocate for stricter regulations to combat climate change, others remain skeptical about the feasibility of these ambitious goals. The United States and its allies are pushing for more drastic emission reductions than previously set, emphasizing the need for urgent action in light of accelerating climate change. U.S. President Biden calls for a 37% reduction in greenhouse gas emissions by 2030, a 96% reduction by 2040, and a complete elimination of emissions by 2050. However, countries like India propose more modest targets, such as requiring 5% of marine fuels used to be carbon-neutral by 2030.
🇨🇳 Xi's Metal Curbs Risk Backfiring as G-7 Explores Alternatives to China. China's recent decision to impose export controls on gallium and germanium, key metals used in advanced technologies, demonstrates the country's ability to retaliate against the US, Japan, and Europe's efforts to limit China's access to technology. However, this move also presents a risk of backfiring. By potentially restricting shipments and cutting off supply to other nations, China may inadvertently accelerate efforts by those countries to reduce their reliance on China and seek alternative sources. The measure highlights the dilemma faced by President Xi Jinping as he tries to counter US efforts to limit China's access to crucial chips while avoiding actions that would fuel derisking and supply chain diversification. The ongoing ideological struggle between the US and China is currently prioritized over globalization, emphasizing competition rather than collaboration between the two countries.
iLevel With You 🏡
More topics for the average American household to consider…
💰 America's Economy Makes Swift Move Towards the South. The economic landscape of the United States is undergoing a significant shift as the South emerges as a key contributor to the national GDP. Six fast-growing states in the South, including Florida, Texas, Georgia, the Carolinas, and Tennessee, now generate more economic output than the traditionally dominant Northeast. This trend has been fueled by a substantial influx of individuals relocating to the region, resulting in a "$100 billion wealth migration" to the Southeast. In contrast, the Northeast has experienced an outflow of approximately $60 billion in income. The population and economic activity are gravitating toward the South, marking a noteworthy transformation in the country's economic geography.
🔋 Toyota's Battery Breakthrough Fuels Optimism for Electric Cars. Toyota has announced a significant technological breakthrough that could revolutionize electric vehicles by halving the weight, size, and cost of batteries. The carmaker has been working on advanced solid-state batteries and recently simplified the production of the material used to make them. This development is expected to dramatically reduce charging times and increase driving range, offering substantial benefits compared to liquid-based batteries. Toyota aims to make both liquid and solid-state batteries smaller, lighter, and more affordable, with the potential to achieve these goals by 2027. If successful, this breakthrough could mark a milestone moment for the future of electric cars, making them more efficient and viable on a larger scale.
🍔 How Artificial Intelligence is Revolutionizing Food and Beverage Manufacturing. In recent years, the integration of artificial intelligence (AI) has revolutionized various industries, and now it is making its mark on the food and beverage manufacturing sector. AI technologies are driving significant advancements in production processes, quality control, and overall operations, bringing about increased efficiency, improved product quality, and enhanced food safety. From optimizing supply chains to accelerating product development, AI is reshaping the industry and setting the stage for a more intelligent and sustainable future. AI plays a crucial role in supply chain optimization, leveraging complex data analysis to forecast demand, manage inventory levels, and respond quickly to market changes. By streamlining production planning and inventory management, manufacturers can minimize waste, reduce stockout or overstocking, and optimize resource allocation.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
📉 Supply Chain Index Hits New Low. According to the Logistics Managers' Index (LMI), supply chain activity reached a new low in June, marking the fourth consecutive record low. The LMI stood at 45.6, 1.7 percentage points lower than in May. Transportation prices fell at a slower pace, while capacity continued to grow. Despite excess capacity and low prices, expected exits from the freight market have not materialized. Transportation utilization improved slightly but remained in contraction. The one-year outlook for transportation prices was optimistic, indicating an expectation of a freight market rebalancing over the next 12 months. While FreightWaves' spot rate truckload data has shown positive trends recently, it remains below early 2022 levels due to lower freight volumes and inventory purging by shippers.
🚗 The Role of Aerodynamics in Extending Range for Class 8 Electric Vehicles. Improving the aerodynamics of electric Class 8 trucks is crucial for extending their range and overcoming range anxiety, a major obstacle in their widespread adoption. Aerodynamic drag plays a significant role in the range of electric trucks, and optimizing aerodynamic design becomes particularly vital as losses due to drag cannot be offset like battery weight. Addressing the gap between the tractor and trailer, utilizing aerodynamic fairings or side extenders, and matching the heights of the tractor and trailer are effective ways to enhance aerodynamics and increase the range of electric trucks. By prioritizing aerodynamics, truck manufacturers can make electric Class 8 vehicles more competitive with diesel trucks and meet the needs of fleet operators and consumers, paving the way for a sustainable future in freight transportation.
🗑 BP Invests in Innovative Fuel for Ships Made from Everyday Garbage. BP Ventures Invests $10 Million in WasteFuel, a California-based startup that converts uneaten food and other waste into low-emission fuel. WasteFuel's technology uses municipal and agricultural waste to produce bioethanol, a sustainable energy source for shipping. With the investment, BP aims to increase its biofuel production to around 100,000 barrels per day by 2030, contributing to the decarbonization of the transportation sector. The shipping industry, responsible for nearly 3% of human-made CO2 emissions, is actively seeking emission-cutting solutions, with methanol emerging as a viable alternative to traditional marine fuels. WasteFuel's first project will be located in Dubai, and BP will collaborate with the startup to enhance bioethanol production from waste.