New legislation proposed by Ohio senators after East Palestine train disaster
Good morning! As we approach the end of the week, we're bringing you the latest news, insights, and analysis from the world of supply chain management. In today's issue, we'll be covering a range of topics. So grab a cup of coffee and let's dive in! ☕️
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After the early-February train derailment that has shaken the community of East Palestine, Ohio senators have got to work penning new legislation. Co-sponsored by U.S. Sens. Sherrod Brown (OH-D) and JD Vance (OH-R), the Railway Safety Act of 2023 addresses several key regulatory questions that have been raised in light of the incident. If passed by Congress, the bill could force many changes across the rail industry - including regarding the shipments of hazardous materials and the requirement of two-person crew minimum.
Check out today’s featured article from AP News to read about the new federal safety regulations and financial consequences for non-compliance being proposed by Ohio senators under the Railway Safety Act of 2023. Will the bill pass through Congress and possibly help the railroads avoid another East Palestine disaster in the future?
Featured Article:
Ohio senators ready rail safety bill after fiery crash | AP News
“Railroads like the one involved in last month’s fiery crash and toxic chemical release in Ohio would be subject to a series of new federal safety regulations and financial consequences under legislation being introduced Wednesday by the state’s two U.S. senators.”
Warehousing & Corporate 🔍
Amazon continues cost-cutting measures, scrapping more warehouse construction projects
Amazon President and CEO Andy Jassy shared on a. recent earnings call that the company is reducing costs in order to make their operations network a top priority. These cost-cutting measures have resulted in slashing operating expenses and cancelling warehouse construction projects that were already underway. Ninety-nine Amazon facilities have been cancelled, closed, or delayed - resulting in a nearly 32.2 million square-feet of space being effected. Some of the states where the the space has been scrapped or delayed include, California, Washington, New Jersey, and Florida.
Amazon has not completely abandoned plans of new facilities, despite this move. According to Amazon spokesperson Steve Kelly, Amazon still has projects planned for an additional 231 facilities and delivery stations. However, Marc Wulfraat, president and founder of MWPVLInternational, has voiced concerns that the ongoing cancellations and closures at Amazon may throw a wrench in these plans.
American Postal Service & Electric Vehicles 🔋
Electric mail trucks are filling up slots in the US Portal Service fleet
Nearly 10,000 Ford E-Transit vans and 14,000 charging stations have been ordered by the US Postal Service as part of its environmental plan. The fleet’s aging gasoline-powered mail trucks are beginning to be replaced in order to coincide with the federal government’s ambitious zero emissions goals. When Congress passed the Postal Service Reform Act of 2022 and coupled that legislation with the federal funding granted in the Inflation Reduction Act (IRA), the US Postal Service seized the opportunity. Over the following five years, USPS plans to allot 75% of its purchases to electric vehicles - and 100% after 2026.
The United States Portal Service has several reasons for wanting to invest heavily in a fleet of electric vehicles. EVs have a lower impact on the environment than tradition gas-powered vehicles. By increasing its use of EVs, the USPS can reduce its carbon footprint and help to protect the environment. Additionally, EVs have lower operating costs than gas-powered vehicles because they require less maintenance and have lower fuel costs. By switching to EVs, the USPS can save money on maintenance and fuel expenses, which can help to reduce operating costs and improve efficiency.
Let’s Get Global 🌎
🛢️ Russian oil is hitching a ride around the world on a ghost fleet. Buyers across the globe are still buying up Russian oil, despite heavy sanctions layered by the US and the EU on the product. A “shadow” fleet of approximatley 600 large tanker vessels is speculated by industry experts to be transferring Russian oil under the radar - and it’s difficult to discern who exactly is controlling them. The expansion of this fleet signals the extreme changes Russia’s invasion of Ukraine have created upon the oil trade over the past year. In January, China and India both cut record high deals with Russian oil exports after Europe’s ban of Russia’s originated seaborne oil went into effect.
🇨🇳 Negative opinions of China seem to be the only unifying issue in Congress. Both US Republicans and Democrats have been slamming China, making the tension between the two countries one of the only bipartisan issues on the docket. Last week, the Biden Administration advised all federal employees to remove TikTok, the popular Chinese-owned app, from their government devices within the following 30 days. China’s repression of dissent and treatment of Muslim minorities in the country are also being called into question, leading Congress to accuse the country of genocide.
💊 The logistics of drug trafficking is a global problem. The logistics of drug trafficking involve the movement of illegal drugs, such as cocaine, heroin, and methamphetamine, from production sites to distribution centers and ultimately to the end user. Drug traffickers take advantage of porous borders, corrupt officials, and weak law enforcement to move drugs across borders and into new markets. Drug production often takes place in developing countries with weak governance and infrastructure, such as Afghanistan, Colombia, and Mexico. These drugs are then smuggled across borders and transported through various means, including air, sea, and land routes, to major consumer markets in North America, Europe, and Asia.
🚢 World’s largest shipping company MSC is betting on global economy rebound. Often viewed as a barometer for global trade, Mediterranean Shipping Company is claiming that it expects the ocean container market to grow in late-2023. This claim seems to hang on the view that signs of China’s revamped economy is promising regardless of drop-offs in America and Europe. Inventories are still high in both markets, driving down trade volumes. MSC expects that once inventory cools, freight orders will begin to rebound after the summer months.
iLevel With You 🏡
More topics for the average American household to consider…
🔋 Electric vehicles shouldn’t have to break your bank account. Edmunds has compiled a list of the most affordable electric vehicles on the market this year, starting at under $40,000. These electric models will qualify buyers for federal tax credits because they are manufactured and parts are sourced domestically. Making EVs more affordable for American citizens is important for a number of reasons, including reducing carbon emissions, improving air quality, reducing our dependence on fossil fuels, and promoting equity. By incentivizing the adoption of EVs, we can create a cleaner, healthier, and more sustainable future for all.
🗣️ National Highway Traffic Safety Administration recalls 350k+ Teslas, but is it too little too late? Regulators have been”slow to act” in response of publically documented and criticized defects with Tesla’s Full Self-Driving (FSD) beta software. The voluntarily recall negotiated by the NHTSA is what some call “too little too late”, and leaves many consumers in a risky situation. Automated car technology does not need to be approved for safety before being sold to consumers in the US, say critics. Tesla’s FSD beta software cannot be legally sold in Europe due to regulators not approving it for public use, and some motorists are calling for similar processes in the US.
🌿 Recreational marijuana is a complicated problem for drivers, and trucking fleets. Marijuana use can impair judgment, coordination, and reaction time, which can increase the risk of accidents and injuries. Truck drivers who operate commercial vehicles under the influence of marijuana pose a significant risk to themselves and other motorists. The use of recreational marijuana can also lead to regulatory compliance issues for trucking companies and fleets. Trucking companies are required to comply with federal regulations that prohibit the use of marijuana by commercial drivers, and failure to comply can result in fines, loss of licenses, and legal liability.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🎤 On the hunt for a supply chain conference to attend this year? You’re in luck! Logistics Viewpoints has compiled some of the top logistics and supply chain conferences underway to consider attending. Conferences provide an excellent opportunity to network with other professionals in the industry, including potential partners, suppliers, and customers. These connections can be valuable for expanding your business, developing new partnerships, and staying informed about the latest trends and developments in the industry.
🛍️ Returns are about increasing profit, not cost. Returns can actually have a significant impact on a retailer's bottom line. While returns do involve some costs, such as processing and restocking fees, they also present a valuable opportunity for retailers to build customer loyalty and increase sales. Offering a hassle-free return policy can help build customer loyalty and increase customer satisfaction. When customers know they can easily return a product if they are not satisfied, they are more likely to make a purchase in the first place. In addition, satisfied customers are more likely to recommend the retailer to friends and family, which can lead to increased sales.
👍 The Federal Highway Administration gets the ATA & Chamber of Commerce approval. The Federal Highway Administration (FHWA) has earned positive feedback from the American Trucking Associations (ATA) and the U.S. Chamber of Commerce regarding its amendments to how states can utilize funding granted through the Infrastructure Investment and Jobs Act. The bill, also known as the Bipartisan Infrastructure Law, or BIL, needed clarification regarding its framework. The legislation has intent that states direct funds to highway maintenance instead of only expanding highway capacity.
😵💫 PMA and ILWU continue to discuss labor negotiations. Both the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) have signaled that they expect “an agreement to be reached soon” despite nearly a year of being in a stalemate. West Coast ports lost much of their market share last year as labor concerns grew and shippers rerouting tot he Gulf and East coasts instead. Port of LA director Gene Seroka has repeatedly stated that the PMA and the ILWU are committed to finding a resolution.
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.