💰 Driving Change: FMCSA Fortune!



Good morning! As the sun rises on a new day, we bring you the latest insights and updates from the dynamic world of supply chain management. From logistics and procurement to distribution and inventory management, we're here to keep you informed and inspired. So grab your cup of coffee and join us as we navigate the intricate web of global trade, innovative technologies, and emerging trends.  ☕️

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The U.S. Department of Transportation's Federal Motor Carrier Safety Administration (FMCSA) has granted over $471 million in Motor Carrier Safety Assistance Program (MCSAP) grants to enhance commercial motor vehicle safety. These grants aim to prevent accidents, fatalities, and injuries involving commercial vehicles. The funding supports various initiatives by state, territorial, and local transportation offices, as well as law enforcement agencies, to improve education, outreach, and safety activities. The MCSAP focuses on reducing crashes, fatalities, and injuries through driver training, safety inspections, compliance, and enforcement programs. The recent increase in funding provided by the Bipartisan Infrastructure Law allows states and territories to further enhance roadway safety measures. 

Check out today’s featured article from The Trucker to read about the almost half a billion dollars in grants that will address and reduce accidents involving commercial vehicles. Will these grants actually help fund enhanced safety measures and prevent fatalities in commercial motor vehicles?


Featured Article:

Feds dole out more than $471M in grants to help reduce commercial vehicle wrecks | The Trucker

The U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) has awarded more than $471 million in Motor Carrier Safety Assistance Program (MCSAP) grants to help fund initiatives aimed at preventing crashes, fatalities and injuries involving commercial motor vehicles.”


Rail & Regulations 🤖

$570 million in grants will be used to eliminate numerous hazardous rail crossings

The Biden administration is granting $570 million to address the issue of railroad crossings in 32 states, where longer trains have been causing traffic delays and hindering emergency response. Over three dozen crossings will be targeted, with the funds being used to construct bridges or underpasses. These measures aim to alleviate the disruption caused by trains blocking crossings for extended periods, ensuring access to critical areas, and avoiding risky situations like individuals climbing through stationary trains. U.S. Transportation Secretary Pete Buttigieg highlighted instances where delays caused by trains resulted in tragic consequences.  

In addition to traffic problems, collisions at railroad crossings are a significant concern, with thousands of incidents and hundreds of deaths recorded each year. The grants form part of a $3 billion funding allocation over the next five years, as part of the infrastructure law, to address rail crossing issues. While some projects focus on planning and design, most of the funding will be directed towards physical improvements and resolving long-standing problems. State and city governments, often with assistance from railroads, are required to contribute at least 20% of the project cost for each grant.

Read more from AP News ▶


Electric Vehicles & Mining ⛏️

Albemarle, the leading global producer of lithium, is experiencing significant growth

According to McKinsey & Co., the demand for lithium, a crucial component for electric vehicle batteries, is expected to increase significantly in the coming years, from 500,000 metric tons in 2021 to three million to four million metric tons within the next decade. Albemarle, the world's leading producer of lithium, has plans to expand its operations to meet this growing demand. It aims to open another domestic lithium mine in North Carolina by 2027 and is currently constructing a processing facility in South Carolina for battery-grade lithium hydroxide production. This facility will support the manufacturing of 2.4 million electric vehicles annually and will be capable of processing lithium from recycled batteries. 

However, Albemarle faces potential challenges, including the impact of a possible economic downturn on EV demand, the emergence of new battery chemistries that may reduce the need for lithium, the growth of battery recycling, and increased competition in the industry. Notably, Tesla has started constructing a lithium refinery in Texas in 2023. To gain insights into the extraction process, challenges, and future production trends of lithium, CNBC received a behind-the-scenes look at Albemarle's operations in Chile and the United States.

Read more from CNBC ▶


Let’s Get Global 🌎

🚢 Related disruptions at ports along the West Coast have created uncertainty. Labor issues at West Coast ports have caused disruptions and uncertainty regarding future disruptions. The problems were related to unfilled jobs at terminals, resulting in varying degrees of disruption at several maritime gateways. The Port of Oakland experienced the most significant disruption, with international terminals closed for the day. Other ports, such as Los Angeles and Hueneme, also faced disruptions, including unfilled jobs and limited operations. The Pacific Maritime Association blamed the International Longshore and Warehouse Union (ILWU) for the events, but the ILWU did not claim responsibility for a work stoppage.

♻️Loss and waste are prevalent issues across global food supply chains. Jean Pierre Azañedo, CEO and Co-founder of CoreZero, emphasizes the importance of addressing sustainability in global food supply chains. Food loss and waste are significant challenges throughout the farm-to-table process, contributing to greenhouse gas emissions, environmental damage, and food insecurity. The United States alone wastes nearly 40% of its food. To prioritize waste reduction, efforts must be made to minimize food loss at each stage of the supply chain, including production, handling and storage, processing and packaging, transportation and distribution, and consumption.

🤝 Transport and logistics company Geodis has completed the acquisition of Southern Companies. Transport and logistics company Geodis has acquired Southern Companies, a drayage provider that serves ports in the Southeast of the United States. This acquisition strengthens Geodis' end-to-end supply chain capabilities across the country. Southern Companies, a family-owned business founded in 1965, operates terminals at key ports including Miami, Everglades, Houston, Jacksonville, Tampa, Savannah, and Charleston. The company offers import and export services, including warehousing and trucking.


iLevel With You 🏡

More topics for the average American household to consider…

🏳️‍🌈 Pride support for companies is proving difficult. The significant buying power of the LGBTQ+ community, estimated to be over 17 million people in the U.S. with more than $1 trillion in spending power, makes it difficult for companies to ignore. However, negative social media posts attacking companies for being "woke" and accusing them of sexualizing or grooming children have increased, with calls for Pride-related boycotts surging. This backlash is linked to the ongoing debate over transgender rights, and some companies are becoming cautious about engaging in political issues.

🍫 Rocky Mountain Chocolate Factory streamlines warehousing. Rocky Mountain Chocolate Factory is implementing measures to achieve $1.2 million in annual cost savings across its supply chain. The initiatives involve streamlining factory operations through SKU rationalization, utilizing cross-docking providers for faster deliveries, and outsourcing last-mile fulfillment and e-commerce logistics. The company aims to accelerate its growth and profitability, aiming to recover market share after a period of underperformance.

🛒 Walmart has revealed a series of new initiatives. Walmart has announced new measures to reduce packaging waste in its online orders. The company aims to eliminate over 2,000 tons of plastic waste and contribute to its zero-emissions goal by 2040. Key initiatives include using recyclable paper bag mailers for most orders, which is expected to eliminate 65 million plastic bags by the end of 2023. Walmart customers will have the option to opt out of single-use plastic bags for online pickup orders, consolidate items into fewer boxes, and utilize right-size packaging services to reduce cardboard usage by custom-fitting packages.


Get Smart 🧠

Ramp up that brain power for these advanced topics…

🚛 Transportation unemployment rates fell below 2019 levels. According to updated data from the Bureau of Labor Statistics, the unemployment rate in the U.S. transportation sector in May 2023 was 0.7% lower than in May 2019 before the COVID-19 pandemic began. In May 2019, the sector's unemployment rate was 4.3%, compared to 3.6% in May 2023. Moreover, there was a 0.9% decrease in the transportation sector's unemployment rate from May 2022 to May 2023.

⛏️ Ensuring the diversification of critical mineral supply chains is crucial. The Biden administration's clean energy infrastructure projects, aimed at promoting clean energy and reducing emissions, face challenges related to the lack of domestic production of critical minerals and reliance on China for supply chains. The demand for critical minerals, particularly lithium and graphite used in electric vehicle batteries, is expected to increase significantly. However, the US has limited reserves of these minerals, with less than 1% of the world's cobalt reserves and insufficient nickel production to meet domestic consumption.

🔋 The CEO of Ford believes that it will take another decade for EVs to reach cost parity with traditional internal combustion engine vehicles. Ford CEO Jim Farley believes that electric vehicles (EVs) still have several years to go before they can compete with internal combustion engine vehicles in terms of cost. Speaking at an investor conference, Farley stated that Ford would require another product generation to simplify the design and reduce the costs of its EVs. He projected that cost parity for a typical $40,000 EV would be achieved between 2030 and 2035, during Ford's transition to its third cycle of EV products. Farley emphasized the dominance of lithium iron phosphate batteries by then, along with significantly lower labor and distribution costs.


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