Controversial Alaska oil drilling project approved by President
Good morning! As we near the end of the week, let's take a moment to catch up on the latest news and trends shaping the world of logistics and procurement. From innovative solutions to common challenges, to emerging technologies and industry insights, we've got you covered.
So grab your coffee and let's dive in! ☕️
————
Despite campaigning on the notion that future oil and gas drilling on federal ground would not be approved, President Biden’s Administration is allowing the Alaska Willow Project after an exhaustive two-year review. This $8 billion project approves of oil drilling at three sites on Alaska’s North Slope.
It is probably safe to say… many of Alaska’s Native communities and environmentalists are not happy.
Check out today’s featured article from The Guardian to read the polarizing decision by the Department of Interior’s Bureau of Land Management. Will the estimated 576 million barrels of oil over 30 years be worth the wrath of environmentalist - and possibly even mother nature herself?
Featured Article:
Biden approves controversial Willow oil drilling project in Alaska | The Guardian
“The Biden administration has approved a controversial $8bn (£6bn) drilling project on Alaska’s North Slope, which has drawn fierce opposition from environmentalists and some Alaska Native communities, who say it will speed up the climate breakdown and undermine food security.”
Network Association & Rail 🚂
Canadian Pacific’s $31 billion acquisition of Kansas City Southern approved
The federal regulators have approved the two smallest railroads to merge, this being the first major railroad merge in 2 decades. This will connect Canada, Mexico, and the US via rail. The approval is expected to add 800 more union jobs to the US, it also will be carrying approximately 64,000 truckloads annually across North America.
The challenges that railroad companies face when attempting to merge in the United States reflect the country's commitment to promoting competition and preventing monopolies. While mergers can be beneficial for companies in terms of cost savings and operational efficiencies, they must comply with strict regulatory requirements and demonstrate that they are not engaging in anti-competitive behavior.
Electric Vehicles & Sales 🔋
Mississippi bans EV company-owned stores
Ignoring calls from fellow republicans to veto the bill, state governor Tate Reeves signed into law House Bill 401. Electric car companies like Rivian and Tesla will now only be able to sell their vehicles through local franchises in the state of Mississippi instead of exclusive company-owned dealerships.
These laws are often referred to as "dealer franchise laws" and are meant to protect traditional auto dealerships from competition from manufacturers. For example, Tesla, a company that produces and sells electric vehicles directly to consumers, has faced opposition in states like Mississippi due to these dealer franchise laws. Tesla operates its stores instead of using traditional auto dealerships to sell its vehicles, which puts it in conflict with this legislation. Opponents of Tesla argue that allowing direct sales by manufacturers would give them an unfair advantage over traditional dealerships and that dealerships provide important services such as maintenance and repair. They also argue that the existing laws protect consumers by ensuring competition and preventing manufacturers from exerting too much control over the sales process. On the other hand, supporters of Tesla argue that direct sales by manufacturers can benefit consumers by providing more choice and competition, and by making the sales process more transparent and efficient. They also argue that traditional dealerships are often resistant to selling electric vehicles, which can make it difficult for consumers to find and purchase them.
Let’s Get Global 🌎
🇵🇦 Tug boat is crushed by a ship in the Panama Canal. Caught on video, a container ship forced a tugboat to be pushed against a closed locked gate in the Panama Canal. Luckily the 5 crew members of the tugboat were left unharmed, but the tugboat captain had some scathing words for the canal authority's relaxed safety procedures.
🇨🇳 US vs China the war of supply chains. The Director of National Intelligence says that China is already using its dominance of the supply chain as a weapon against the United States. China has responded by accusing the Annual Threat Assessment to be “slander”. Many are concerned that China will use its dominance for economic or political gain.
🔋 Lithium-ion batteries need global collaboration. Transportation of Lithium-ion batteries is a challenge for even the most seasoned logistics company. From geopolitical tensions to serious safety concerns the regulatory process has been slow to adapt. Representatives at the Logistics Supply Chain conference in London spoke on what they believe needs to be done to improve.
iLevel With You 🏡
More topics for the average American household to consider…
📉 The EV market declines 14% in January of 2023. Automakers are struggling to keep up with the pandemic supply chain issues and lack of demand as subsidies and tax credits evaporate and dampen consumer sentiment. The United States is attempting to stifle the bleeding with the Inflation Reduction Act, but EV manufacturers are cutting price tags to lure potential customers.
🤑 Inflation seems to be sticking around for a while. Inflation has been at a stressful high for the last couple of months because of consistent consumer demand despite rising interest rates. The Federal Reserve is running out of options as their higher interest rates are also sparking panic in the banking sector.
🍗 Popular poultry company Tyson lays off nearly 1,700 workers. Tyson Foods has announced the closure of 2 poultry processing and hatching plants in Virginia and Arkansas. This major layoff came as a surprise to many workers that were impacted. Tyson says this will ‘economically improve operations ’. This news comes 2 years after Tyson announces a $300 million plant in the same state as one of the closed factories.
🚛 Most Americans don’t know the trouble that truckers face trying to find parking spaces. The issue of truck parking shortages is not widely discussed in the media or public discourse, so many Americans simply may not be aware of it. Most Americans do not encounter truck stops or rest areas in their daily lives and may not be aware of the challenges that truckers face in finding safe and secure parking locations. Additionally, truckers are often perceived as transient or temporary workers, and their work is not always well understood or appreciated by the public. This may lead to a lack of empathy or understanding of the challenges that they face, including parking shortages.
👩⚖️ Ohio sues Norfolk Southern. The February 3rd train derailment has finally resulted in what some would say is inevitable. The state of Ohio has leveled a lawsuit against the major railroad over what is being described as an entirely avoidable toxic spill and train derailment. The incident has upended the lives and well-being of nearby residents, business owners, and environmentalists' interests.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🏫 University professor encourages their students to learn about the importance of cargo ships. Cargo ships are a crucial part of the global economy, transporting goods between countries and continents. By understanding the intricacies of cargo ships, college students can gain a better understanding of how global trade works, and the role those different countries and regions play in the international economy. Additionally, cargo ships can have a significant impact on the environment, both through their emissions and through the accidental release of cargo or fuel. By learning about the intricacies of cargo ships, college students can gain a better understanding of the environmental impact of global trade, and how shipping companies and governments are working to reduce this impact.
🚛 Last-mile delivery and why it’s important. Last-mile delivery refers to the final stage of the delivery process, which involves transporting goods from a transportation hub or warehouse to their final destination, typically a residence or business. The complexity of last-mile delivery can vary depending on several factors, including the type of goods being delivered, the location of the delivery, and the infrastructure and transportation options available in the area.
🛋️ Big Lot's primary vendor has shut its doors creating a furniture shortage. United Furniture Industries shut its doors last November unexpectedly, causing Big Lots to not complete their shipments for that month. Previously, United Furniture Industries and Big Lots’ business relationship existed in which UFI manufactured and supplied furniture products to Big Lots for sale in its retail stores. UFI is a manufacturer of upholstery furniture, and Big Lots is a discount retailer that sells a variety of merchandise, including furniture. Their long-standing relationship dates back several years and UFI has been one of the major suppliers of furniture products to Big Lots, providing a range of items such as sofas, loveseats, and sectionals. The furniture products supplied by UFI were generally priced competitively and catered to the value-conscious customer base of Big Lots.
📝 EV infrastructure program accepting applications. The Biden Harris administration has opened for applications its new Charging and Fueling Infrastructure Discretionary Grant Program. This multi billion dollar program will supposedly reduce national greenhouse gas emissions by up to 50-52% by 2030. Applications for this funding opportunity are due May 30, 2023.
🚢 The Port of Savannah records second busiest February in history. Savannah has moved more than 2 million TEUs this fiscal year, moving 11.4% of the nation’s international containers. The Port of Savannah is growing rapidly due to its strategic location, expansion and investment, business-friendly environment, and strong economic growth in the United States. These factors have contributed to the port's success in handling increasing volumes of cargo and attracting new business and investment.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 28, 2024, from iLevel Logistics Inc.