2021 SoCal oil spill results in $96.5 million payout by shippers to settle lawsuit
Good morning! Today we celebrate National Oreo Cookie Day! While this holiday may seem like just another excuse to indulge in everyone's favorite sandwich cookie, it's also a great opportunity to reflect on the complex and fascinating supply chain that makes this beloved treat possible. From the cocoa farmers in West Africa to the dairy cows in the American Midwest, the Oreo supply chain spans the globe and involves a diverse network of suppliers, manufacturers, distributors, and retailers. So grab a glass of milk & let's get dunking! 🥛
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Unfortunately, our featured story isn’t about delicious cookies.
Shipping companies are coughing up nearly $100 million to settle the lawsuit resulting from the October 2021 oil spill off the coast of Southern California. The pipeline, which is owned by Amplify Energy Corp, was carrying crude oil from an offshore drilling platform to an onshore processing facility when the rupture occurred. The spill released an estimated 25,000 gallons of crude oil into the Pacific Ocean, creating a slick that stretched for miles and threatening marine life and the environment. The rupture was concluded to have been causes by two cargo ships - owned and operated the MSC Danit and COSCO Beijing - who dragged anchor across the sea floor during a storm.
Martyn Willsher, the president and CEO of Amplify, has stated that the company is eager to put the event behind them.
Check out today’s featured article from The Hill to read about the lawsuit’s conclusion and how Amplify and the shipping companies involved are planning on avoiding similar incidents in the future.
Featured Article:
Shipping companies paying almost $97M to settle oil spill off Southern California coast | The Hill
“Shipping companies agreed to pay $96.5 million to settle a lawsuit with the operator of the crude oil pipeline that ruptured in October 2021, spilling tens of thousands of gallons of oil off the coast of Southern California.”
Insurance & Artificial Intelligence 🤖
The mass adoption of autonomous trucks could transform the trucking insurance industry
Autonomous trucks have the potential to reshape how we think about insurance in several ways. Autonomous trucks use advanced sensors and software to navigate roads and avoid collisions, reducing the risk of accidents caused by driver error. This could lead to a reduction in insurance premiums for trucking companies that adopt autonomous trucks. In the event of an accident involving an autonomous truck, liability could shift from the driver to the manufacturer or technology provider responsible for the autonomous system. This could have significant implications for insurance policies, which would need to be updated to reflect these new liability structures.
Additionally, autonomous trucks generate large amounts of data on their operations, including driving behavior, maintenance history, and cargo details. This data could be used by insurers to develop more accurate and personalized underwriting models for trucking companies, based on their specific risk profiles. More commonly referenced by critics of the technology, autonomous trucks are vulnerable to cyber attacks that could compromise their autonomous systems and lead to accidents. Insurers would need to develop new policies to address these cybersecurity risks, including coverage for losses related to hacking or other malicious activities.
Regulations & Compliance 🚛
Federal Highway Administration glosses over requirements for heavy duty electric truck charging infrastructure
The FHWA has advised that it did not issue a final rule for electric heavy-duty trucks and their charging infrastructure due to the “pacing” of technological innovation. The ATA has vocalized disappointment for the lack of inclusion in the ruling, expressing concern that commercial trucks will be unable to comply with state regulatory mandates for electric truck adoption if the charging infrastructure isn’t quickly expanded.
Overall, expanding the trucking industry's charging infrastructure is essential for supporting the electrification of the industry, reducing costs, improving the environment, and promoting economic growth. By investing in the development of a reliable and robust charging network, we can accelerate the transition to a more sustainable and efficient transportation system.
Let’s Get Global 🌎
💎 Cobalt Is the new blood diamond of the DRC. Cobalt mining in the Democratic Republic of Congo (DRC) is a complex and challenging issue. The DRC is one of the world's largest producers of cobalt, a vital component in the batteries used to power electric vehicles and many electronic devices. However, the cobalt mining industry in the DRC is plagued by numerous problems, including illegal mining, dangerous working conditions, child labor, and environmental damage. Many of the mines in the DRC are operated by small-scale miners who work in hazardous conditions and are paid very low wages. There are also concerns about the involvement of armed groups in the cobalt mining industry, as some groups have been known to control mines and extract taxes from workers. This has led to calls for greater transparency and accountability in the cobalt supply chain, as well as efforts to improve working conditions and reduce the environmental impact of mining activities.
🌎 Reshoring trends, globalization no longer the default option. Reshoring, or the trend of bringing manufacturing back to the home country or region from overseas, is gaining popularity among manufacturing companies for a variety of reasons. One major factor is the increasing cost of doing business in many overseas markets, including rising labor and shipping costs, as well as the complexity and uncertainty of global supply chains. These factors, combined with geopolitical tensions and trade disputes, have made it less attractive for companies to rely solely on overseas manufacturing. In addition, advancements in automation and digital technologies have made it more cost-effective and efficient to produce goods domestically, while also enabling greater customization and flexibility in production processes. Another factor is the growing demand among consumers for locally-made and sustainable products, which has created a market opportunity for companies that can differentiate themselves by producing goods in a more socially and environmentally responsible manner.
iLevel With You 🏡
More topics for the average American household to consider…
🍎 Amazon beats Walmart in all retail categories except grocery. Amazon is now exceeding Walmart in total retail sales and is continuing to expand, beating out Walmart by 0.1% at 7.3% of total retail sales. Amazon and Walmart are two of the largest and most well-known retail giants in the world, and they are fierce competitors in many areas. Both companies have significant online retail operations, and they compete heavily in the e-commerce space, with Amazon often seen as the dominant player. Amazon has a wider selection of products and a more advanced logistics network, which allows it to offer faster and more convenient delivery options. Walmart, however, has been investing heavily in its e-commerce capabilities in recent years, including acquisitions of online retailers, and has been gaining ground on Amazon in terms of market share.
😟 AAA study shows that most Americas are fearful of automated vehicle technology on the road. These results are somewhat surprising, considering many of those same individuals are interested in the technology that powers those systems. The fear of automated vehicle technology on the road is driven by a complex mix of factors, including distrust of new technologies, concerns about job displacement, cybersecurity risks, safety concerns, and a lack of understanding about how self-driving cars work. As the technology continues to develop and become more widespread, it will be important to address these concerns and build public trust in the safety and reliability of automated vehicles.
👔 “White-collar” jobs are on the chopping block as companies set to avoid mass layoffs. Mass layoffs can be a public relations nightmare for companies, damaging their reputation and potentially leading to boycotts or other forms of backlash. By quietly firing white-collar workers, companies can avoid drawing attention to the layoffs and minimize the risk of negative publicity. Mass layoffs can be demoralizing for remaining employees, leading to lower productivity, decreased engagement, and increased turnover. By quietly firing workers, companies can minimize the impact on morale and maintain a more positive workplace culture. Mass layoffs can also expose companies to legal risks, particularly if they are not handled properly.
🎯 Target is now offering “drive-through” returns for customers. No need to get out of your car to return that candle of wicker basket you impulsively bought on your latest Target run. Following the successful test-launch of the program in February 2022, Target is now enabling customers to participate at all of its locations in the upcoming spring. Customers will be able to open the Target app, select Drive Up return, and notify the retail store via app that they are on their way to make a return. Upon arrival, a store associate will come out to your vehicle and provide a return confirmation via email in return for the item. This new feature is part of Target’s plans to massively expand over the next several years.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
💻 A fully standardized electronic bill of lading (eBL) will be ready by 2030. The Digital Container Shipping Association (DCSA) is pledging to full commit to eBL’s by the end of the decade, which is likely to benefit the industry. An electronic bill of lading (eBL) is a digital version of the traditional paper-based bill of lading, which is a legal document that serves as proof of ownership of goods and the terms of their shipment. The eBL is created, signed, and transmitted electronically, which can significantly streamline and speed up the process of shipping goods by eliminating the need for physical document handling, courier services, and manual data entry. This can reduce the risk of errors, delays, and fraud associated with traditional paper-based systems.
😊 Company culture can be enhanced with meaningful work and fairness. To make their employees happy, a company can consider implementing several strategies, including providing competitive compensation and benefits packages, including health insurance, retirement plans, and paid time off. Additionally, offering flexible work arrangements, such as remote work options, flexible schedules, or job-sharing arrangements can be a positive for a company culture shift. Overall, a company that prioritizes the well-being and happiness of its employees is likely to have a more engaged and productive workforce, which can lead to better business outcomes and a more positive company culture.
🍓 Food waste in supply chains can be disposed of more efficiently. Reducing food waste in supply chains can help improve efficiency, lower costs, and reduce environmental impact. Some strategies to cut down on food waste in supply chains include adopting smarter inventory management techniques to reduce overstocking and understocking of food products, improving supply chain visibility through data analytics, and implementing temperature-controlled storage and transportation to prevent spoilage of perishable food items. Additionally, optimizing packaging and storage methods to reduce damage and spoilage during transit and donating excess food to food banks, shelters, and other charitable organizations are more efficient methods of disposal.
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.