🔍🌊 Sinking Sub Search
Good morning! Welcome to the Summer Solstice edition of The Workday Dash! As the sun reaches its highest point in the sky, marking the longest day of the year, we embark on a journey to explore the latest developments and trends in the world of logistics.
So, grab your sunglasses, and let's embark on this illuminating supply chain adventure! ☀️
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Rescue crews are intensifying their efforts to locate a missing submersible with five people on board, which disappeared while exploring the Titanic wreckage. As they face challenging conditions of choppy waters and low visibility in the remote North Atlantic Ocean, search teams are keeping a close eye on the submersible's dwindling oxygen supply.
The Coast Guard and the Royal Canadian Air Force are deploying additional aircraft and vessels to assist in the search, which has now transitioned below sea level after scouring a vast surface area. The search zone covers a deep and foggy area approximately 900 miles east of Cape Cod, posing a significant challenge to the rescue operation.
Check out today’s featured article from CNN to read more about the missing submarine that virtually vanished during a very expensive voyage. Will they be able to find the submersible before the 4-day emergency supplies are used up? Can they survive any longer than 4 days?
Featured Article:
Rescuers are racing the clock in search of a manned submersible lost while touring Titanic wreckage | CNN
“Rescue crews searching for a submersible with five people aboard that went missing while touring the Titanic’s wreckage are keeping a nervous eye on the craft’s dwindling oxygen supply as they navigate choppy waters and low visibility in a remote area of the North Atlantic Ocean.”
Big Rigs & Recalls
Burning Issue: Paccar Recalls Peterbilt Trucks Following Under-Hood Fires
Paccar Inc. has issued a recall for 4,914 Peterbilt Model 579 Class 8 tractors due to the occurrence of six under-hood fires. The fires are caused by a misplaced fastener that can chafe the insulation of the alternator cable. The issue specifically affects certain Model 579 trucks where the alternator positive cable can come into contact with the left-hand side front spring bracket top rearward fastener. This contact can lead to a fire if the cable is routed too closely.
Peterbilt initiated an investigation after a customer reported an underhood fire on May 11, which was followed by the discovery of other related incidents through warranty claims. As a result, the Peterbilt Safety Committee decided to conduct a recall on June 6. Paccar dealers will address the issue by replacing the frame fastener-free of charge and installing it in the opposite direction inside the frame rail, ensuring a greater routing clearance for the alternator cable. Peterbilt's Denton plant made a running change on July 29, 2022, to modify the orientation of the front frame bracket fasteners. Dealers and owners will be notified of the recall on August 11, with the National Highway Traffic Safety Administration recall number being 23V-423.
Supply Chain & Pandemic
Instant Pot Maker Suffers from Supply Chain Pressures
Instant Brands, the maker of the popular Instant Pot cooker and Pyrex glassware, has filed for Chapter 11 bankruptcy protection due to ongoing financial struggles caused by supply chain pressures. The company faced high costs in maintaining its supply chain even as demand for its products fluctuated during the pandemic. Instant Brands is seeking to restructure its debt, which includes significant amounts owed to manufacturers in China and various logistics providers.
The company cited unprecedented liquidity challenges, tightened credit terms with suppliers, rising interest rates, inflation, and distribution channel shifts as key factors contributing to its financial difficulties. Retailers and manufacturers, especially smaller operators, continue to face financial consequences from the pandemic-related turmoil, including surging international shipping costs. Instant Brands experienced a supply chain perfect storm in the second half of 2021, with port closures, shipping backlogs, and soaring freight costs disrupting their operations.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
✈️ Cargo Aircraft Missing from Paris Air Show Dealmaking. During the Paris Air Show, Boeing and Airbus have been focusing on customer orders for new passenger aircraft, with limited activity in the freighter sector. Boeing announced a deal with Air Algérie, in which the airline ordered eight 737-9 MAX passenger jets and expressed interest in converting two used 737-800 passenger jets into freighters. This move represents the establishment of a dedicated cargo unit for Air Algérie, which currently operates a fleet of 55 passenger aircraft. The lack of freighter orders at the show reflects the downturn in air cargo demand over the past 16 months, leading leasing companies and cargo airlines to reduce capital expenditures for new aircraft.
🚞 Smooth Sailing: BNSF Prepares for Intermodal Surge After West Coast Ports' Contract Deal. Following the resolution of the contract dispute at West Coast ports, BNSF Railway Co. (BNSF) has announced its readiness to handle an anticipated surge in intermodal volumes once freight levels in the region return to normal. The tentative agreement reached between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) has paved the way for a resumption of full operations. BNSF, having invested over $2 billion in expansion efforts since 2019, has bolstered its infrastructure, including tracks, railcars, and facilities, to accommodate increased capacity.
iLevel With You 🏡
More topics for the average American household to consider…
🔋 US still losing the EV race after signing the mineral deal with Japan. Japan is aiming to strengthen its position in the electric vehicle (EV) space through a critical minerals trade deal with the United States. The U.S.-Japan Critical Minerals Agreement, signed in March, aims to enhance supply chains and promote EV battery technologies. However, Japan has some catching up to do in the EV market, as its automakers have focused more on hybrids and hydrogen, while all-electric vehicle sales have surged in the U.S. and China. To reduce its dependency on China for critical minerals used in EV production, Japan is exploring alternatives, such as developing EV motors that use fewer rare earth metals and extracting rare earth from deep-sea mud.
🚚 Mars and DHL Establish Logistics Hubs, Achieving a 7.7% Reduction in CO2 Emissions. Mars and DHL have collaborated to establish new logistics centers in the UK, utilizing advanced technology to reduce CO2 emissions by 7.7%. The investment of £350 million has resulted in state-of-the-art facilities at London Thames Gateway, significantly cutting Mars UK's logistics carbon footprint. The warehousing facility, which is one of the tallest distribution centers in Europe, incorporates sustainable features such as 3,700 solar panels generating 27% of the site's power and a BREEAM 'Outstanding' rating for its sustainability.
🍔 Resilience and Recovery: Food Industry Bounces Back After Years of Disruptions. The food industry has experienced significant disruptions in recent years, including Brexit, COVID-19, conflicts, weather events, animal diseases, and inflation, leading to a global increase in food prices. In response, manufacturers, farmers, restaurants, and businesses are adapting and finding creative solutions to navigate the challenges caused by inflation. This includes minimizing wastage, utilizing substitutes, implementing dual-sourcing strategies, and collaborating with suppliers to optimize supply chains. While the industry still has a long way to go to reach pre-pandemic prices, there are positive signs of countries stepping up to fill supply gaps and businesses diversifying their supply bases.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🙋🏽♂️ Navigating Sensitive Topics: Truckers and Mergers & Acquisitions. A journalist in San Antonio reflects on the rare opportunity to befriend and gain insight from industry professionals while organizing a panel program for the Truckload Carriers Association Safety & Security Meeting. The panelists discuss the challenges and emotions involved in mergers and acquisitions within the trucking business, highlighting the uncertainties and changes faced by employees, particularly drivers. They emphasize the importance of evaluating and gradually implementing new technologies, such as in-cab cameras, while actively involving drivers in the process to ensure their buy-in and address concerns.
🚛 Truckers' Concerns Disregarded: OOIDA Criticizes EPA Proposal. The Owner-Operator Independent Drivers Association (OOIDA) has voiced its opposition to the U.S. Environmental Protection Agency's (EPA) Greenhouse Gas Phase 3 proposal, stating that it disregards the concerns of truck drivers. OOIDA highlighted issues related to costs, timeline, safety, and operational challenges in its official comments filed with the EPA. The association urged the EPA to consider a more achievable implementation timeline that provides affordable and reliable heavy-duty vehicles, protects consumer choice, and addresses the concerns of small trucking businesses and owner-operators.
👩🏽💻 Unleashing the Power of Your Data: A Back to Basics Guide. The disruptions and rising freight costs experienced in recent times have prompted businesses to seek aggressive cost-saving measures. However, achieving these targets goes beyond transportation and requires a holistic approach throughout the supply chain, including inside distribution centers. While warehouse metrics traditionally focus on operational performance, businesses need to leverage warehouse data to drive cost savings and overall profitability. By analyzing the right data, businesses can identify factors negatively affecting productivity, drive holistic changes in the distribution network, and make informed purchasing decisions. The level of sophistication in data usage can range from basic productivity analysis to advanced analytics that connects individual facilities to the larger network.