Jones Act backlash grows amid inflation and poor disaster response
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The Jones Act, also known as the Merchant Marine Act of 1920, is a federal law that requires goods shipped between U.S. ports to be transported on vessels that are U.S.-built, U.S.-owned, and crewed by U.S. citizens or permanent residents. While the Jones Act has its supporters who argue that it helps protect American jobs and promote national security, there are also critics who hold negative opinions on the law. Some of the biggest criticisms are that it can increase shipping costs, hinder disaster response, increase environmental harm, and most-particularly… negatively affect Puerto Rico.
Check out today’s featured article from Reason to read about the growing negative opinion on the Jones Act and its criticism of the legislation’s shortcomings. Will the Jones Act continue to have a vice-like grip on the industry?
Featured Article:
The Jones Act Is Driving Up Prices and Making Crises Worse | Reason
“The legislation, which forbids shipping anything between American ports in ships that are not U.S. built and crewed, is just another a special deal that one industry has scammed out of Congress.”
Cybersecurity & Safety 💻
New White House-led cybersecurity strategy could deeply benefit the nation’s supply chains
The Biden Administration announced its plans to expand the minimum cybersecurity requirements for critical industries with the goals of prevention - before cyberattacks can even begin. After a smattering of high-profile ransomeware attacks on critical infrastructure, the White House wants to get ahead of the curve.
Cyberattacks are a growing threat to American infrastructure, including sectors such as energy, healthcare, and finance. By increasing the minimum cybersecurity requirements for these sectors, they will be better equipped to protect themselves against cyber threats and attacks. Additionally, by strengthening cybersecurity measures, the government can better protect national security interests. Cyberattacks can result in significant economic damage, including loss of revenue, loss of customer trust, and expensive recovery efforts. Even more so… certain critical American sectors, such as healthcare and transportation, are essential to public safety. Cyberattacks against these sectors can put people's lives at risk. By increasing the minimum cybersecurity requirements for these sectors, the government can better ensure public safety.
Electric Vehicles & Fuel Tech 🔋
DOE recommends that trucking companies seek government incentives to offset upfront costs for zero-emission vehicles
It’s no grand secret: the transition to green energy-operated heavy duty vehicles has a hefty price tag. The Department of Energy’s Vehicles Technologies office has laid out a report for trucking companies titled the “2022 Incremental Purchase Cost Methodology and Results for Clean Vehicles.” The DOE’s aim is be transparent about the steep upfront costs associated with Class 8 electric and fuel cell trucks and to advise companies with ways to take advantage of government incentives.
For example, the baseline price for a representative vehicle is about $160,000. Comparatively, a battery-electric heavy truck should increase that price tag by 186% to $457,000 and by 103% to $324,000 for a plug-in hybrid version. These figures do not include the cost of ownership, including repairs and maintenance. This has led Lydia Vieth, research analyst in electrification and autonomy at ACT Research, to call the DOE’s report as fairly “optimistic”.
Let’s Get Global 🌎
🚢 Ocean carriers can expect a $2k-3k cost increase per forty-foot container with decarbonization. CEO of Ocean Network Express (ONE) Jeremy Nixon is warning that there will be significant up-front cost associated with the transition to green fuels. Nixon called on the United Nations agency the IMO (International Maritime Organization) to accelerate the production of green hydrogen across energy companies so that the shipping industry can meet its goals. Today, the cost of fuel for a container is about $1,000 per forty-foot container. Will decarbonization efforts eventually level the playing field in the shipping realm?
🇵🇰 Pakistan’s ports are bloated with frozen imports. The country’s economy is teetering on the edge of collapse, and many companies - especially those that manage the ports - have been forced to halt operations in response. Pakistan’s level of foreign currency reserves sits at $3.19 billion and its inflation rate for consumer prices have risen 27.5% year-over-year. According to Pakistan’s central bank data, this is the nation’s highest inflation since 1975. As the Pakistani government scrambles for a solution, raw material imports have been nearly nonexistent for most of February - forcing manufacturing operations to pause, as well.
⏰ FIATA calls for renewed detention and demurrage fees to pre-pandemic levels. The International Federation of Freight Forwarders Associations has cited the easing of container volume surges and the unclogging at the nation’s largest ports for a reason for the adjustment. The FIATA represents 150 countries with the interest of reviewing and reinstating free time periods at the ports. Market conditions have changed, and the FIATA suggests that the the fees meant to increase fluidity at backlogged ports are no longer necessary.
iLevel With You 🏡
More topics for the average American household to consider…
💸 Recession or not: mixed signals are abundant. The usual economic indicators for a recession aren’t coinciding with what economists are used to… creating mass confusion. The latest jobs report shows that the labor market is strong and healthier than it’s been in a long time, despite interest rates and inflation nearly crippling American families. With the labor market showing up so strong, it’s almost certain that the economic pain won’t slow down anytime soon as the Federal Reserve continues to raise interest rates. One thing is clear: the experts seem to be guessing. One can only hope that inflation cools and the economy lands softly.
👱♀️ Gender pay gap has narrowed by 2 cents since 2002. In 2022, the average American woman earned approximately 82 cents for every dollar a man earned, according to Pew Research. In 2022, the average was 80 cents. Some of the reasons this gap may persist, despite the 65 cents being made in the mid-1980s, may be due to women and men tending to work in different occupations, with women often concentrated in lower-paying industries such as education, healthcare, and social services. This occupational segregation contributes to the gender pay gap. Addressing these issues will require a multifaceted approach that includes policy changes, workplace practices, and cultural shifts to promote greater gender equity in the workforce.
🚂 U.S. rail union leaders push Biden administration for safety after works fall ill at Ohio train incident site. Leaders from twelve of the rail unions met with the Department of Transportation Secretary Pete Buttigieg and Amit Bose, administrator of the Federal Railroad Administration, this week to discuss the illnesses. Norfolk Southern rail workers who have been working at the cleanup site of the devastating East Palestine train derailment that occurred in early February have been reporting extreme migraines and waves of nausea. Additionally, union leaders claimed that these workers were not being provided with respirators, eye protection, or protective clothing.
✈️ FAA head nomination continues to stumble as Congress debates approval. Seven months ago, President Joe Biden nominated Phil Washington, the CEO of Denver International Airport, to lead the Federal Aviation Administration (FAA). However, the Senate Commerce Committee has been slow to approve the nomination due to an ongoing corruption investigation into Washington’s previous tenure as head of the Los Angeles Metropolitan Transit Authority. Republicans have vowed to block Washington’s nomination.
🔋 The increased amount of electric vehicles on the road has created a logistical nightmare. While some do have the ability to charge their vehicles at home while they sleep, many EV-adopters are voicing the challenges they are encountering when trying to find a charge while on the road. While there is a significant lack of any charging infrastructure in rural areas, there also tends to be a significant shortage in meotpolitan areas. Additionally, charging an EV away from home can be more expensive than charging at home, especially if the charging station is owned by a third party and charges a higher rate for electricity.
🏙️ Big cities should be using the remote-work shift to reinvent themselves. While 41% of Americans were still working for home (with full-time or hybrid) in January, it’s safe to say that America’s biggest cities have faced a major shock to the system. Less people are picking up Thai food for lunch, going to bars for happy hour, or commuting to and from work to patron gas or charging stations. Cities are facing major budget problems as more and more people leave expensive cities and taking away non-property-tax revenue. Regardless of the changes, young people still want to live in vibrant city centers - with better opportunities for networking and cultural events, cities may be preparing for the “boom” they’ve needed since early 2020.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
👩💻 Now is the time to invest in supply chain tech. New technology can often help automate or streamline processes, reducing the time and resources needed to complete tasks. This can lead to increased efficiency in the supply chain, allowing companies to save time and money. Technology can also improve the accuracy of data collection and analysis, reducing errors and increasing the reliability of information used in decision-making processes.
🛸 Ameriflight cargo drone fleet grows, increasing supply chain services. The Dallas-based cargo airline is expanding its fleet to 35 air cargo drones that have a payload capacity of over 2,000 pounds. The drone, powered by a blend of sustainable and traditional aviation fuel, these drones have the ability to quickly move between facilities which will eliminate the cost associate with the transfer of goods.
💰 ArcBest takes home $100 payday by selling off FleetNet America to Cox Automotive. Cox has reported that purchasing the fleet maintenance unit with increase their uptime for fleet customers across the country. This fresh capital for the freight and logistics service provider is providing ArcBest with the opportunity to invest in freight technologies - including remotely operated forklifts and other mobile warehouse robots.
👩 Gender equality can be increased in supply chain companies using procurement. By setting specific goals for gender diversity in the supply chain, companies can create a roadmap for achieving greater gender equality. Companies can require that their suppliers have diversity and inclusion policies and metrics in place as a condition of doing business with them. Additionally, companies can offer training and resources to their suppliers on how to create more inclusive and equitable workplaces.
🔋 Panasonic’s plans for De Soto, Kanasas-based battery plant earns Buttigieg stamp of approval. The Department of Transportation’s secretary called the plans for the $4 billion plant a part of the “American renaissance” in manufacturing. The plant is expected to employ approximately 4,000 people and has already seen excavators underway at the vast field of first in Johnson Country, Kansas.
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.