👴🏼✈️ Taking Flight Delays
Good morning! Welcome to the Workday Dash, your daily dose of supply chain insights to kickstart your day! We're here to keep you in the loop on the latest happenings, trends, and challenges in the world of supply chain management. From logistics and transportation to procurement and inventory management, we've got you covered.
So grab your morning coffee, buckle up, and get ready for a speedy rundown of all things supply chain. Let's dash into the day! ☕️
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The House Committee on Transportation and Infrastructure voted in favor of a measure to increase the mandatory retirement age for commercial airline pilots from 65 to 67. This decision comes as the aviation industry continues to face a shortage of pilots. The measure is part of proposed legislation to reauthorize Federal Aviation Administration programs for five years.
The Regional Airline Association supported the bill, citing the need to retain pilots as airlines expand operations and hire more pilots following the impact of the Covid-19 pandemic. However, the Air Line Pilots Association, which represents pilots at major carriers like Delta and United, opposed the measure, expressing concerns about safety and the lack of consultation regarding the potential impacts of changing the retirement age.
Check out today’s featured article from CNBC to read more about the age of retirement being raised for aviation. Will this cause any safety issues in planes? Will the age be raised more in the upcoming years?
Featured Article:
House committee votes to raise the pilot retirement age to 67 amid aviator shortage | CNBC
“Lawmakers on the House Committee on Transportation and Infrastructure narrowly voted in favor of a measure to raise the mandatory retirement age for pilots from 65 to 67.”
Border Issues & Safety 🚢
The deadliest migrant shipwreck off Greece this year has led to fears that hundreds of people may have drowned
At least 79 migrants have drowned, and hundreds more are missing and feared dead after their overloaded boat capsized and sank off the coast of Greece. The tragic incident, one of Europe's deadliest shipping disasters in recent years, highlights the ongoing humanitarian crisis and the dangers faced by migrants attempting to reach Europe. The boat was believed to be carrying around 750 people, and the exact number of casualties remains uncertain.
The sinking of the migrant boat underscores the global economic slowdown and the uncertainty surrounding Greece's growth outlook. With speculation of an early election in the country, the tragedy adds to the challenges faced by the caretaker administration. The Greek coast guard, along with European rescue-support organizations, continues search and rescue operations, while Greece has declared three days of national mourning. The incident serves as a stark reminder of the ongoing refugee and migrant crisis in Europe and the need for international cooperation to address the root causes and provide safe pathways for those fleeing poverty and conflict.
Repair & Maintenance 🛣️
Plans for the reconstruction of Philadelphia's I-95 have been unveiled
Pennsylvania officials have revealed their plans to rebuild a collapsed section of Interstate 95 in Philadelphia. To expedite the process, 2,000 tons of lightweight glass nuggets will be trucked in as a temporary fill for the area, allowing traffic to reopen while avoiding delays caused by supply chain issues for traditional construction materials. The recycled foam glass aggregate will be piled into the underpass, brought up to surface level, and paved over to create three lanes of traffic in each direction. Once the temporary fill is in place, a replacement bridge will be constructed next to it to reroute traffic while crews restore the exit ramp.
The collapse of the northbound lanes of I-95 and the extensive damage to the southbound lanes occurred after a truck hauling gasoline went out of control and caught fire, leading to the collapse. Investigators are still determining the cause of the incident. Demolition of the overpass is expected to be completed soon, followed by the arrival of trucks carrying the glass aggregate. The Biden administration has pledged assistance to help alleviate the traffic disruptions caused by the collapse, which has impacted commutes, businesses, and the transportation industry in the area.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🇯🇵 The growth of Japan's exports has slowed down to its weakest pace since 2021 due to a decline in demand. Japan's exports have experienced their weakest growth in over two years, signaling a global economic slowdown and adding uncertainty to the country's growth outlook. In May, the value of exports increased by 0.6% compared to the previous year, the slowest pace since February 2021. The decline in exports was primarily driven by decreases in mineral fuel, chip-making machinery, and semiconductor parts. Imports also dropped by 9.9%, largely due to lower fuel prices.
✈️ Asia to Spearhead Air Traffic Boom in Coming Decades, Predicts Airbus. Airbus forecasts that over the next 20 years, approximately 40,850 new jets will be delivered by aircraft manufacturers as airlines expand their fleets and replace older planes with more fuel-efficient models, with Asia being a significant driver of this growth. The global installed fleet is expected to more than double to 46,560 aircraft by 2042, with China leading the way with 9,440 aircraft. Airbus also highlights the recovery of the aviation industry, with domestic capacity surpassing pre-pandemic levels and international traffic reaching 89% of pre-pandemic levels.
🤝 PMA and ILWU Reach Tentative Agreement on Six-Year Contract for West Coast Ports. Pacific Maritime Association (PMA) and International Longshore and Warehouse Union (ILWU) have announced a tentative agreement on a six-year contract for workers at 29 West Coast ports. The deal, subject to ratification, aims to bring stability to the workers and the supply chain. Acting Labor Secretary Julie Su played a crucial role in the negotiations, and both parties expressed satisfaction in reaching an agreement after over a year of talks.
iLevel With You 🏡
More topics for the average American household to consider…
💰 Federal Reserve Keeps Interest Rates Unchanged, Temporarily Halting Rate-Hiking Strategy. The Federal Reserve announced a pause in its rate-hiking campaign, citing the need to observe further effects on the economy. The decision to skip a rate increase this time was unanimous among Fed officials. Despite the pause, most officials believe that additional rate hikes will be necessary later in the year to bring inflation down to the target of 2%. The Fed's projection suggests that there may be two more quarter-point rate hikes this year, with larger increases unlikely.
😡 U.S. Drops in Supply Chain Rankings Due to Child-Labor Violations. U.S. joins high-risk countries for ESG supply chain issues, according to a study by Elevate. The report highlights the U.S.'s decline in ESG rankings, particularly in relation to severe risks concerning the treatment of children. Stricter ESG rules coincide with less transparency and increasing risks in traditionally considered safe regions, and companies failing to address supply chain violations face legal, reputational, and business-related risks.
🍔 Amid a cost-of-living crisis, there is a need to re-evaluate convenience food options. As consumers face the impact of rising prices and a cost-of-living crisis, there is a growing need to re-evaluate convenience food options. FMCG Gurus research indicates that global consumers are adopting recessionary-style spending habits, with concerns over rising living costs leading them to make cutbacks in various areas, including food shopping. Consumers believe that food and beverage prices have increased, particularly for everyday items, which restricts their spending in other areas. Consequently, consumers are more likely to shop around for better deals and exhibit reduced brand loyalty, especially in the soft drinks and frozen food sectors.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🔧 In the first quarter, the costs of trucking parts and labor have finally reached a stable level. According to a report from the American Trucking Association's Technology & Maintenance Council (TMC) and Decisiv Inc., trucking parts and labor expenses in the industry have stabilized during the first quarter of 2023. While costs for parts and labor had been increasing significantly, the report shows a slowdown in cost increases. Compared to the previous quarter, costs rose by only 0.7%, a significant drop from the over 8% increase seen a year earlier. Parts costs decreased by 0.4%, while labor costs increased by 2.3%, indicating that new vehicles, which had long backorders, are finally reaching end users.
🌐 The crucial task of coordinating and integrating supply chain control towers. A supply chain control tower acts as a central hub, leveraging technology and integration processes to gather and analyze real-time data across the entire supply chain. It offers tailored data presentations of key business performance indicators (KPIs) and events, enabling companies to identify and address critical concerns quickly. The three main advantages of supply chain control towers are visibility, analytics and decision-making, and process orchestration.
🚢 There has been an increase in ship wait times at ports following periods of slowdowns. Slowdowns at West Coast ports are causing an increase in ship wait times, as vessels take longer to load and unload. Data from MarineTraffic and Everstream Analytics shows a rise in the number of ships at anchor near major maritime gateways like Seattle and San Pedro Bay. Median berthing time, which measures the amount of time a vessel is moored for loading or unloading, has also been higher in ports such as Long Beach and Tacoma during the first two weeks of June compared to the previous two weeks.