🚄 Track Wreck
Good morning! Welcome to the latest edition of our newsletter, where we embark on a celestial journey to commemorate an extraordinary event - International Asteroid Day. As we look beyond our terrestrial concerns, we explore the significance of this annual observance, which serves as a timely reminder of the critical role that supply chain and logistics play in mitigating potential threats from these celestial wanderers.
So sit back and enjoy reading the Workday Dash on this lovely Friday morning! ☄️
————————
In a devastating incident near Moorpark, Southern California, an Amtrak train carrying nearly 200 passengers collided with a county water truck, derailing three out of the seven train cars. The truck's driver sustained critical injuries, while fourteen train passengers were taken to hospitals with minor injuries. The derailed train cars managed to stay upright, adjacent to an orchard and open land.
The circumstances leading up to the collision remain under investigation, with authorities working to determine the cause of the accident. Amtrak is collaborating with local authorities in conducting a thorough investigation and assisting passengers with alternative travel arrangements. Despite the severity of the incident, it is acknowledged that the outcome could have been far worse, emphasizing the importance of prompt response and emergency preparedness.
Check out today’s featured article from AP News to read more about how the Amtrak collided with a water truck and how many people were injured. Will the water truck driver be ok? Why was the water truck in the middle of the tracks? Will Amtrak release a notice?
Featured Article:
Amtrak train with 198 passengers derails after hitting a truck on the tracks in Southern California | AP News
“An Amtrak train carrying nearly 200 passengers struck a county water truck and derailed on Wednesday in Southern California, critically injuring the truck’s driver, authorities said.”
Strikes & Unions
Nationwide Strike at UPS Looms as Union Walks Away from Contract Talks
The International Brotherhood of Teamsters has announced that a nationwide strike at UPS is imminent following the breakdown of national contract talks between the union and the company. Negotiators from the union walked away from the discussions, calling on UPS to submit its final offer by June 30. With the current contract covering around 330,000 UPS employees set to expire on July 31, the Teamsters have made it clear that if a new agreement is not in place by August 1, they will proceed with the largest single-employer strike in American history.
Teamsters General President Sean O'Brien stated that the strike now appears inevitable, emphasizing the urgency for UPS to present an acceptable contract before the expiration date. The union is pressing for a tentative agreement to allow ample time for members to review and vote on the proposal. Teamsters General Secretary-Treasurer Fred Zuckerman criticized UPS for its lack of action and reiterated the union's stance on not granting any contract extensions. UPS responded by stating that it had presented a significantly amended proposal to address key demands from the Teamsters. The company emphasized the need for mutual compromises to reach a consensus and expressed its commitment to negotiating an agreement that enhances pay and benefits for its employees.
Loans & Company
Congressional Report Highlights Problems with Yellow Corp.'s $700 Million Loan
A Congressional report released on Tuesday highlighted significant issues surrounding the Treasury Department's $700 million loan to Yellow Corp. as part of a COVID-19 relief program in 2020. The report expressed concerns about the risk posed to taxpayers due to Treasury's equity and debt stakes in the struggling less-than-truckload (LTL) carrier. It recommended that the government explore selling its 15.9 million shares of Yellow stock and divest its loan holdings before the loan's maturity date on September 30, 2024.
The Congressional Oversight Commission, responsible for the report, advised against creating similar open-ended, sector-specific loan programs in the future, as it deemed them to be risky taxpayer bailouts. The report raised questions about Yellow's eligibility to receive the loan and pointed out that the company used the funds for various purposes such as covering short-term contractual obligations, pension and healthcare payments, and acquiring trailers and tractors. The report also highlighted concerns about the company's spending on congressional lobbying and its influence on securing the loan.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🇺🇦 Pentagon Begins Using Funds from Ukraine Aid Package to Expand Munitions Production and Bolster Critical Minerals Supply Chains. The Pentagon is utilizing a $600 million appropriation from a $40 billion Ukraine aid package to expand munitions production and reduce reliance on Russia and China in critical defense supply chains. The Defense Manufacturing Capability Expansion and Investment Prioritization office, overseeing Defense Production Act grants, has issued several awards from the Ukraine aid bill. These grants include funding for munitions production, high-priority aluminum production, ball bearings, and cobalt mining.
🚢 Shipping Industry Experiences Setback as China's Post-COVID Recovery Stalls. China's post-COVID rebound, which was expected to fuel a strong recovery and drive demand in the shipping industry, is faltering. Western demand for Chinese exports has decreased while domestic spending in China is also facing setbacks. This situation has negatively impacted the shipping industry, which heavily relies on the virtuous cycle of manufacturing goods for exports, filling container ships, car carriers, buskers, and tankers. There were high hopes for Chinese stimulus measures to boost bulk commodity shipping rates, but experts now believe that the stimulus may not be substantial enough to revitalize the industry.
🇩🇪 Shipping Impacted by Low Water Levels on Rhine River Amidst Climate Change Effects. Shipping on Germany's Rhine River is being impacted by low water levels caused by unusually dry weather in Europe. Some cargo ships are unable to carry their full loads, resulting in surcharges being imposed on certain shipments. Climate change is prolonging dry weather patterns and exacerbating these disruptions, highlighting the need for long-term solutions to address the impact of climate change on shipping and logistics.
iLevel With You 🏡
More topics for the average American household to consider…
🔋 California Transportation Commission Approves $42 Million Grant for Port of Oakland's Green Power Microgrid Project. The California Transportation Commission (CTC) has granted $42 million to the Port of Oakland for its Green Power Micro-grid Project, which aims to enhance the delivery of green-sourced power to the seaport operations. This project is a significant step towards achieving the Port's zero emissions goal. The Port collaborated with Caltrans and the Metropolitan Transportation Commission to secure the grant, with implementation to be carried out by the Port of Oakland.
📫 USPS Faces Decline in International Volume, Affecting Cross-Border E-commerce Market. The U.S. Postal Service is facing a significant decline in international volume, despite the booming cross-border e-commerce market, according to a white paper by the agency's Office of Inspector General. Over the past five fiscal years, total inbound international volume decreased by 74%, while outbound international volume fell by 38%. The decline can be attributed to increased competition, new supply chain models, and higher prices for lightweight postal products. To address this drop in volume, the report suggests that the USPS develop commercial shipping options, simplify the postal channel, and expedite efforts to combat counterfeit shipping labels.
🔌 Building a National Network of EV Chargers: Progress and Challenges. The National Electric Vehicle Infrastructure Formula Program (NEVI Program) established under the Infrastructure Investment and Jobs Act aims to build a national network of electric vehicle (EV) charging stations along designated Alternative Fuel Corridors. With $5 billion in funding over five years, the program seeks to achieve President Biden's goal of 500,000 EV chargers along 75,000 miles of U.S. highways. State departments of transportation are developing plans to administer the funding and ensure reliable and accessible charging, including equitable access for disadvantaged communities.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🚂 States Pursue Independent Rail Safety Measures Amid Federal Gridlock and Industry Opposition. Several states are pursuing their own safety remedies to address train derailments and improve rail safety, rather than waiting for federal action. Recent incidents, including a train derailment carrying toxic chemicals along the Ohio-Pennsylvania border, have prompted state legislatures to advance measures aimed at enhancing safety regulations for freight trains. These measures include limits on train length, rules to maintain two-person crews, improvements in trackside detectors, and increased notice to local emergency responders about hazardous freight.
💰CPKC and CSX Acquire Rail Assets from Genesee & Wyoming. Canadian Pacific Kansas City (CPKC) and CSX Corp. have reached an agreement to acquire additional rail assets, leading to the establishment of a direct CPKC-CSX interchange in Alabama and the creation of a corridor connecting Mexico, Texas, and the U.S. Southeast. The acquisition involves portions of Meridian & Bigbee Railroad LLC (MNBR), owned by Genesee & Wyoming Inc. (G&W). CPKC will acquire and operate the segment between Meridian and Myrtlewood, Alabama, while CSX will operate the lines east of Myrtlewood.