Bus Bonus💰🚌
Good morning! Today, we shine a spotlight on a uniquely stylish celebration, as June 27th marks National Sunglasses Day. As the sun beams down on this special occasion, we explore the fascinating updates on our ever-changing industry!
So put on your shades and relax as you read the Work Day Dash ☀️🕶
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The U.S. Department of Transportation is granting nearly $1.7 billion to transit projects in 46 states and territories, facilitating the purchase of zero- and low-emission buses. This funding will allow transit agencies and state and local governments to acquire 1,700 buses, almost half of which will have zero carbon emissions.
The grants are made possible by the 2021 bipartisan infrastructure bill signed by President Joe Biden, reflecting his commitment to increasing the number of electric vehicles on the road, particularly for schools and public transit, as part of the fight against climate change. Transportation Secretary Pete Buttigieg emphasized the significance of these grants, stating that they represent unprecedented levels of investment in modern, cleaner buses for the millions of Americans who rely on them daily.
Check out today’s featured article from AP News to read more about why the US government is giving $1.7 billion in grants to the US Department of Transportation for buying low-emission or zero-emission buses. How many buses will be rewarded with these grants? Will there be more money put into the grants if they use all of the money?
Featured Article:
The US government is awarding $1.7 billion to buy electric and low-emission buses | AP News
“The U.S. Department of Transportation is awarding almost $1.7 billion in grants for buying zero- and low-emission buses, with the money going to transit projects in 46 states and territories.”
Weather & Food Logistics
El Niño's Impending Impact: Food Logistics Disruption and Price Surges on the Horizon
The National Oceanic and Atmospheric Administration has identified El Niño conditions present in May, with expectations of gradual strengthening into the winter of 2023 and 2024, including a 56% probability of a strong El Niño developing. Historical patterns indicate a decline in wheat and palm oil production, while soybean output may experience growth in favorable regions such as Brazil, Argentina, and the United States. The supply shortages anticipated in cereals, grains, vegetable oils, bakery, and confectionary items are expected to drive up prices and contribute to food inflation in the fourth quarter of 2023. The effects of El Niño are not immediate, often becoming apparent 9-12 months later, suggesting a prolonged impact from the 2023 El Niño.
Specific concerns lie in the projected 2-5% decrease in global wheat production, with Australia, the United States, and Canada likely to be significantly affected. Palm oil yields are expected to decline by 3-5% in Indonesia and Malaysia due to dry weather, while West Africa may witness reduced cocoa output as a result of hot and dry conditions. Additionally, challenges related to fertilizer and pesticide availability due to sanctions on Russia may jeopardize crop quality in West Africa. Sugar production trends during El Niño years are more nuanced, with potential drops in South Asian countries but possible increased output in Brazil. However, excessive rains in Brazil may negatively impact sugar harvests. These adverse effects on soft commodities are expected to worsen the ongoing trend of high food inflation that began in 2022, with the Russia-Ukraine conflict and the aftermath of the COVID-19 pandemic. Supply shortages in 2023 and economic threats of a slowdown are likely to drive food inflation throughout the year.
Train Crash & Environment
Regulators Confirm Safety Following Train Incident in Yellowstone River
Preliminary testing of water and air quality along the Yellowstone River, where train cars carrying hazardous materials fell into the water after a bridge collapse, did not reveal any immediate threat to the public, according to state and federal officials. The mangled train cars, carrying hot asphalt and molten sulfur, remained in the river, but preliminary water sampling results showed no signs of petroleum hydrocarbons or sulfur.
Contractors working for Montana Rail Link are conducting water testing, while the Montana Department of Environmental Quality and the federal Environmental Protection Agency oversees the process. Air monitoring has also not detected any toxic gases. The cleanup efforts are ongoing, and the cause of the derailment is being investigated by the Federal Railroad Administration. The amount of cargo spilled into the river is still unknown, and crews are assessing the best way to remove the damaged train cars.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
💧 Initiatives by the Panama Canal to Combat Water Scarcity. Ricaurte Vásquez Morales, the Administrator of the Panama Canal, recently discussed with CNBC's Lori Ann LaRocco the impact of drought on the Panama Canal and its implications for shippers. Vásquez Morales highlighted the measures being taken to address this challenge and ensure the smooth operation of the vital trade artery. (Video)
🇷🇺 Russian Chaos: Potential Global Economic Consequences in the Balance. The global economy, already grappling with the aftermath of the pandemic and the war in Ukraine, faces further uncertainty as chaos in Russia threatens to disrupt stability. Recent events involving disaffected Russian mercenaries marching toward Moscow have raised concerns about the potential for civil war and political turmoil. Given Russia's status as one of the largest energy suppliers to global markets, any disruption to its energy exports could have significant consequences. Analysts warn that geopolitical uncertainty in major oil-producing nations has historically led to oil price increases.
🇫🇷 Paris Summit Gains Momentum: 22 Countries Back Carbon Tax for Ships. More than 20 countries, including France, Spain, Norway, and Portugal, expressed support for a carbon tax on greenhouse gas emissions from the international shipping industry during a global finance summit in Paris. The proposal, which aims to charge shippers for their emissions, has been previously presented to the International Maritime Organization (IMO) and is currently under discussion. The initiative is also backed by the European Commission, Trafigura Group, and the International Chamber of Shipping. While notable, the list of supporters does not yet include the United States or China. However, US Treasury Secretary Janet Yellen has expressed openness to considering a maritime tax proposal.
iLevel With You 🏡
More topics for the average American household to consider…
⛽️ States Consider Mileage-Based Charges as Fuel Taxes Decline. The adoption of mileage-based charges instead of traditional fuel taxes poses challenges as states seek to address the declining revenue from fuel taxes due to factors such as fuel efficiency and the rise of electric vehicles. While Oregon, Utah, and Virginia have implemented road usage charging programs, only a few states have generated revenue from such schemes. With an anticipated widening gap between gas tax proceeds and transportation budgets, states are exploring road usage charges as a long-term solution.
🧑🏽💼 OOIDA Urges President Biden to Seek New Department of Labor Nominee. The Owner-Operator Independent Drivers Association (OOIDA) has called on President Joe Biden to find a new nominee to lead the U.S. Department of Labor. OOIDA has been openly opposed to Julie Su's nomination as secretary of labor since March, citing her role in implementing California's AB5 law, which has negatively impacted the trucking industry. OOIDA believes that Su's confirmation is unlikely and urges Biden to select a nominee who demonstrates a commitment to improving working conditions for employee drivers and understands the benefits of independent contractor status for owner-operators.
✈️ Climate-Friendly Flights: A Long Journey with Higher Costs. The Paris Air Show highlighted the aviation industry's increasing focus on sustainability and reducing greenhouse gas emissions. Sustainable aviation fuel (SAF) emerged as the industry's best hope for achieving its net-zero emissions target by 2050. However, SAF currently accounts for just 0.1% of all jet fuel, and its limited availability drives up costs. Critics argue that airlines are making overly ambitious promises regarding SAF and that they may pass on the higher costs to passengers. Despite the industry's efforts, there are doubts about achieving the net-zero goal by 2050, and some airlines face legal challenges related to their carbon-neutral claims.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🔥 Hydrogen's Historical Significance Fades as its Future as a Fuel Gains Momentum. The perception of hydrogen as a highly flammable and dangerous fuel source is being challenged as the industry emphasizes its safe handling and storage practices. Charles Shappell of Faurecia Hydrogen Solutions states that hydrogen is no more or less dangerous than other fuel sources when handled properly. Hydrogen tanks must meet rigorous safety standards, including ballistics tests, and are designed to withstand impacts. As the adoption of heavy-duty hydrogen-powered fuel cell trucks increases, the industry is focusing on scaling up the production of hydrogen tanks and reducing costs.
🚛 California Launches Program to Guide Fleets in Adopting Zero-Emissions Trucks. CALSTART, a clean transportation consortium based in Pasadena, California, has launched the Cal Fleet Advisor (CFA) program to assist trucking fleets in transitioning to zero-emission vehicles. Developed in partnership with the California Air Resources Board (CARB), the program aims to help fleets navigate the process of adopting zero-emission medium- and heavy-duty vehicles. CFA provides fleets with a single point of contact for information, guidance, and assistance in identifying, financing, obtaining, and deploying zero-emission vehicles. The program is particularly focused on supporting smaller businesses, independent owner-operators, and underrepresented populations, including those domiciled in disadvantaged communities.
🇺🇸 White House Unveils Strategy to Enhance Semiconductor Supply Chains. The Department of Commerce has announced a funding opportunity and application process for large semiconductor supply chain projects, providing a boost to semiconductor companies. The funding is part of the CHIPS for America initiative aimed at enhancing the resilience of the semiconductor supply chain. The Department has also released a "Vision for Success" outlining strategic objectives, including strengthening supply chain resilience, advancing U.S. technology leadership, and supporting vibrant U.S. fab clusters. The application process for large-scale projects is now open, while a separate process for smaller projects will be released in the fall. The Department of Commerce is overseeing over $50 billion to revitalize the U.S. semiconductor industry, with $39 billion allocated for semiconductor manufacturing incentives.
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.