🇯🇵🗽✋ Safety Shift, Fee-ling Trapped, & Biden’s Border Bottleneck

---

Good morning! ☀️

Today’s headlines are shaking things up.

👉 A safety test scandal is rocking Japanese automakers, forcing Toyota and Mazda to hit the brakes on shipments.

👉 Meanwhile, the Trucking Association of New York is suing to stop Manhattan's new congestion fee, and

👉 President Biden is gearing up to sign an executive order to temporarily close the U.S.-Mexico border during surges, impacting asylum protections.

Buckle up, it's a busy day ahead.

---

“Do not judge me by my success, judge me by how many times I fell down and got back up again.”

— Nelson Mandela

---

Safety | Automakers | Japan

Safety Test Scandal Rocks Japanese Automakers

A widening safety test scandal has hit Japanese automakers, causing Toyota and Mazda to halt shipments of certain vehicles. Japan’s transport ministry discovered irregularities in certification applications from Toyota, Mazda, Honda, Suzuki, and Yamaha. These automakers submitted incorrect or manipulated safety test data.

Toyota, the world's largest carmaker, along with Mazda and Yamaha, was ordered to suspend shipments of some models. This follows a similar scandal at Toyota's Daihatsu unit last year, prompting a broader investigation.

These issues are drawing major attention ahead of Toyota’s annual general meeting. Proxy firms ISS and Glass Lewis have advised shareholders to vote against re-electing Chairman Akio Toyoda, citing certification irregularities. Toyoda apologized, admitting to misconduct during tests in 2014, 2015, and 2020, affecting models like the Corolla and Yaris. Mazda and Yamaha also found issues in their models, while Honda reported problems in noise and output tests over eight years.

The scandal has impacted share prices, with Toyota and Mazda shares dropping 1.8% and 3.3%, respectively. The Japanese government called the misconduct "regrettable," despite its ongoing efforts in corporate reforms.

🔍 WHY IS THIS IMPORTANT?

If you're in transportation and logistics, this highlights potential vulnerabilities in the supply chain. Major automaker scandals and shipment halts can lead to delays and disruptions that ripple through the entire logistics network. If you’re transporting these vehicles or relying on them for fleet purposes, any slowdown or halt can directly affect your operations.

🔥 OUR HOT TAKE?

This scandal underscores the importance of transparency and integrity in safety certifications. For the logistics sector, it’s a wake-up call to ensure every link in the supply chain is solid and reliable. If big names can get caught up in such issues, it's crucial to double down on compliance and quality checks within your own operations to avoid similar pitfalls. This incident also shows that even giants aren't immune to scrutiny, so staying vigilant and maintaining high standards is key to staying ahead.

Read more at CNN >

---

Trucking | Sued | Compliance

Trucking Group Fights NYC Congestion Fee

The Trucking Association of New York (TANY) just filed a federal lawsuit against the MTA to stop a new congestion fee for driving into Manhattan, set to start on June 30. This lawsuit, filed in the Southern District of New York, aims to halt what they see as an unfair toll on truck drivers.

NYC officials say the fee will help reduce traffic and emissions, but TANY argues it unfairly targets truckers. Heavy-duty trucks would pay $24 to $36 during peak hours below 60th Street, while taxis and ride-shares only pay $1.25 to $2.50 per trip (with passengers covering the cost). Trucks can't use public transport for deliveries, so they're hit with multiple fees daily.

MTA officials believe the toll will cut daily vehicle entries into the zone by 100,000 and fund subway projects. Commuters and some lawmakers oppose the measure, which will raise commuting costs for passenger vehicles by $15 per day, plus parking. Off-peak tolls would be lower, but still significant.

Small business owners and New Jersey have also filed lawsuits against the plan, approved in 2019.

🔍 WHY IS THIS IMPORTANT?

These fees can add up quickly and eat into your margins. Plus, it could mess with delivery schedules, especially if you're running trucks into Manhattan multiple times a day. If it works in NYC, other cities might follow suit, and we could be looking at a nationwide issue.

🔥 OUR HOT TAKE?

This congestion fee is a classic case of passing the buck. Instead of tackling the root issues of traffic and emissions, NYC is slapping a band-aid on it and making truckers pay the price. It’s a wake-up call for the logistics industry to band together and push for fairer solutions that don’t unfairly target one part of the supply chain. If we don’t, we might be looking at similar fees popping up in major cities across the country.

Read more at Freight Waves >

---

Politics | Border Issues | Regulations

Biden's New Border Policy: Sealing the Deal?

President Biden is about to sign an executive order to temporarily close the U.S.-Mexico border during surges in migrant crossings, suspending long-standing asylum protections. Congress, including Rep. Henry Cuellar, got the briefing, and Cuellar's on board despite past criticisms of Biden’s border policies.

This move, Biden’s strictest border policy yet, is similar to Trump-era efforts to curb migration. It’s all about tackling illegal migration, a hot topic as the presidential election looms. Immigration politics have shifted right, with more Democrats now supporting tougher measures.

The policy allows rapid turnbacks of migrants when crossings exceed a set threshold. Exact numbers aren’t finalized, but thresholds like 5,000 crossings in a week are being discussed. Unaccompanied minors might be exempt. This executive action reflects security measures from a failed bipartisan bill blocked by Republicans.

Expect legal challenges, but Biden's team argues it shows proactive border management, contrasting with Republicans’ focus on politicizing the issue. While they prefer legislative solutions, the administration is pushing this to address immigration concerns now.

Read more at The New York Times >

🔍 WHY IS THIS IMPORTANT?

If you're in transportation and logistics, keep an eye on this. Border closures can mess with the flow of goods and delivery schedules, creating bottlenecks and slowing down supply chains. This means potential headaches for your business.

🔥 OUR HOT TAKE?

Biden's border policy isn't just about immigration—it’s a big deal for logistics too. Tightening the border during surges can disrupt your delivery timelines and spike costs. Political decisions on immigration can ripple through the supply chain, so staying informed and adaptable is key. This move could also hint at more stringent regulations down the line, so get ready for a bumpy ride.

---

Daily Riddle:

I am a place where dreams reach high,

Skyscrapers touch the sky.

Broadway lights and bustling streets,

Where diverse cultures and flavors meet.

What am I?

-

Previous Riddle Answer: Refrigerated Reefer

---