🚢🔐 Truck 'n Lock
Good morning! It's time to put our hard hats on and raise our awareness for a special day in the industry – National Forklift Safety Day! While our newsletter today isn't solely focused on forklifts, we wanted to take a moment to acknowledge the significance of this day and emphasize the importance of safety across all aspects of our supply chain operations.
Let's make safety our top priority as we navigate the exciting world of the supply chain together. ☕️
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The West Coast ports in the U.S. are facing significant challenges due to labor contract negotiations, leading to major bottlenecks and disruptions in the supply chain and transportation hubs. Truck and container congestion is increasing, with longer waiting times for container pick-ups at the Ports of LA and Long Beach. The number of containers waiting off port limits has more than doubled, causing a backlog of cargo and resulting in an estimated $5.2 billion worth of stranded goods.
The labor disputes and inefficiencies in port operations have raised concerns about the diversion of ocean trade to East Coast and Gulf Coast ports, although the Panama Canal's drought conditions present additional challenges for rerouting. The situation is further complicated by the unreliability of the Combined Charging System (CCS) used by non-Tesla electric vehicles, making Tesla's Supercharger network more attractive.
Check out today’s featured article from CNBC to read about what led to the $5 billion left off the west coast ports. Will these diversions to the East Coast be the doom of the reign for West Coast ports? Will the wait time for trucks going in and out of the west coast ports keep going up?
Featured Article:
$5.2 billion in cargo stuck off West Coast ports in truck and container bottleneck | CNBC
“’ Slow and go’ West Coast port workforce conditions stemming from difficulties in labor contract talks have created massive bottlenecks at critical U.S. supply chain and transportation hubs.”
Regulations & Compliance 🚂
Regulatory authorities assure a thorough safety evaluation across all major freight railroads
The FRA recently completed a safety culture review of Norfolk Southern prompted by a significant derailment in Ohio. The FRA plans to conduct similar investigations at other major freight railroads in the coming year. A forthcoming report will detail the findings of the Norfolk Southern review, as well as reports on Union Pacific, BNSF, CSX, Canadian National, and Canadian Pacific Kansas City. Concerns raised by railroad unions revolve around safety implications stemming from operational changes, such as staff reductions and the use of longer trains.
The railroads, on the other hand, maintain their practices and prioritize safety and efficiency. While safety data has not indicated an inherent risk in the new operating model, the rate of accidents per million miles has shown an increase over the past decade. Regulators have advised railroads to exercise caution in assembling long trains to mitigate derailment risks, although longer trains are favored by the industry for their efficiency advantages.
Electric Vehicles & Trucking 🚛
Schneider announces the capacity to simultaneously charge 32 battery-powered trucks at its California facility
Schneider National Inc. has inaugurated a new electric charging depot at its South El Monte Intermodal Operations Center in California to support its fleet of approximately 100 battery-powered Class 8 trucks, specifically the Freightliner eCascadia battery electric trucks (BETs). The depot is equipped with 16 dual-corded dispensers, enabling the simultaneous charging of 32 trucks at a power level of 350 kW. Within 90 minutes, each eCascadia truck can achieve an 80% charge of its 220-mile range.
The project was funded through the Joint Electric Truck Scaling Initiative (JETSI), a collaborative effort between state and local agencies. Once fully operational, Schneider's fleet of BETs will make a significant impact on reducing carbon dioxide emissions and align with the company's sustainability objectives. This initiative joins other large-scale charging facilities established in California to cater to electric truck needs.
Let’s Get Global 🌎
🇨🇳 Does China emerge as the ultimate victor in the nearshoring landscape? The practice of nearshoring, particularly bringing manufacturing back from Asia to the Western hemisphere, is seen as an advantage for American producers. However, there is concern that it may strengthen China's position in global trade. Chinese companies have been leasing a significant portion of industrial park space in Mexico, making substantial investments in the country, and establishing production facilities for the US market. These Chinese suppliers take advantage of the North American content requirements specified in the United States-Mexico-Canada Agreement (USMCA) to access local markets without tariffs.
🌎 How embracing technology can help global logistics. Digitalization has brought about transformative changes in logistics and the supply chain, revolutionizing global operations. The positive effects of technology on the industry include enhanced supply chain visibility, streamlined processes and efficiency, data-driven decision-making, a customer-centric approach, and improved collaboration and connectivity among stakeholders. With advanced tracking technologies and real-time data analytics, companies can achieve greater transparency and make proactive decisions.
🚢 Operations at the Port of Seattle have been suspended due to a clash between the ILWU and the PMA. Cargo operations at the Port of Seattle have been halted due to coordinated work actions led by the International Longshore and Warehouse Union (ILWU), according to a tweet from the Pacific Maritime Association (PMA), which represents terminal operators. The ILWU, on the other hand, claims that West Coast ports are open and accuses the PMA of using one-sided information to influence the situation. The unions are seeking a pay increase that reflects their contribution to the ocean shipping industry's profits during the pandemic cargo boom, as well as additional compensation for hours worked since their contract expired.
iLevel With You 🏡
More topics for the average American household to consider…
🔧 Manufacturing firms express concerns about interest rates and a shortage of talent. A recent study conducted by Sikich, a Chicago consulting firm, reveals low optimism among manufacturing industry leaders due to rising interest rates, economic challenges, and a talent shortage. More than half of manufacturers surveyed rated their optimism about business prospects in the next six months at a seven or lower on a scale of one to 10. Additionally, manufacturers have faced the need to increase wages to attract and retain talent, with over half reporting wage increases of 5% to 8% in the past year.
📦 More than 80% of packaging professionals believe that the supply chain is not sustainable. A survey conducted among senior leaders in the packaging industry has revealed that 83% of respondents question the sustainability of their supply chain. This statistic was shared at the SPC Impact 2023 conference in Texas. Additionally, the survey found that 74% of participants felt that there was room for improvement or a lack of data on the environmental impact of their packaging. The research also indicated that over half (52%) of industry leaders believe that achieving a "genuine circular economy" for packaging is still twenty years away, while 26% do not see it happening for at least fifty years.
⚡️ The implications of Tesla's charging partnerships with Ford and GM for the electric vehicle industry. Ford Motor, General Motors, and Tesla have made significant strides in revolutionizing the electric vehicle (EV) charging infrastructure in North America. Tesla's Supercharging network has long been the go-to option for Tesla owners, but non-Tesla EV owners have faced challenges due to a fragmented charging industry. However, recent partnerships between Tesla and Ford, as well as Tesla and GM, are set to change that. Ford's deal allows its EVs to use Tesla's charging stations with an adapter, and starting in 2025, Tesla's charging technology will become standard on Ford's EVs. GM has also struck a similar deal with Tesla.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
♻️ Achieving decarbonization in the transportation sector will be an enormous undertaking. Global temperatures have risen by 1.1 degrees Celsius above preindustrial levels, leading to increased CO2 concentrations in the atmosphere not seen in millions of years. The United Nations report highlights that current emission reduction efforts are insufficient to limit global temperature rise to 1.5 degrees Celsius. The transportation sector, responsible for 38% of CO2 emissions in the United States, poses a significant challenge to decarbonization.
🚀 The bankruptcy of Incora serves as a cautionary sign for aerospace supply chains. The recent bankruptcy filing of aerospace specialist Incora serves as a stark reminder of the close connection between supply chains and financial stability within an ecosystem. Incora plays a crucial role in supplying, storing, and distributing various products for manufacturers and maintenance providers in the aerospace industry. Over the past year, the company has faced significant disruptions in its supply chain, leading to late shipments, increased costs, and extended lead times.
💻 Top software in 3PLs and cold chain space. Technology plays a vital role in the supply chain, empowering and improving processes in the movement and storage of goods. Third-party logistics (3PL) providers are leveraging various technologies, such as warehouse management systems (WMS), transportation management systems (TMS), automation in trucking and warehouses, fleet management software, AI telematics, and data analytics, to enhance efficiency and meet regulatory requirements.
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.