Start-up Sees Potential in Using Ammonia to Fuel Container Ships, But Obstacles Exist
Good morning! Today is National Golf Day, a day to celebrate the sport that has been a beloved pastime for centuries. While golf may seem like a simple game of hitting a ball with a club, it's actually a complex sport that requires precision, skill, and strategy. And just like any other industry, the golf industry has a supply chain that is critical to its success.
From the manufacturing of golf clubs and balls, to the distribution of merchandise and the maintenance of golf courses, the supply chain plays a vital role in ensuring that golfers can enjoy their favorite sport. On this National Golf Day, we take a moment to appreciate the hardworking individuals who keep the golf industry moving and driving growth. (And it’s also a great excuse to get outside and play hooky out on the course, today.) ⛳️
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New York-based startup Amogy has raised more than $139m from investors, including those in Saudi Arabia, to fund research and development into ammonia as a potential fuel source for container ships. CEO Seonghoon Woo told Yahoo! Finance that ammonia was being considered as a fuel for its high energy density and availability, but that the company's challenge was to convert it to power efficiently and effectively. It is predicted that ammonia could be cost-effective and on par with current fuel sources by 2030.
However, there are still challenges to overcome, including regulation and concerns about high nitrogen emissions during combustion.
Check out today's featured article from More Than Shipping to read about the latest ammonia-based fuel tech. Will the shipping industry zero-in in on this fuel source? Or will the challenges be too great for mass integration?
Featured Article:
New Startup Bets Ammonia Can Be Used to Power Container Ships, but Challenges Remain | More Than Shipping
“A new startup called Amogy is betting that ammonia will soon compete with other fuel sources in powering container ships.”
Labor Issues & Supply Chain 💪
Low Labor Productivity Impacts Supply Chain Goals
Low labor productivity levels in the supply chain industry could hinder the success of supply chain officers (CSCOs), according to a Gartner analyst. Gartner found that the lack of investment in workforce innovations had led to historically low labor productivity levels, with turnover rates 33% higher than pre-pandemic levels. The company suggested that CSCOs focus on three initiatives to combat this issue, including unlocking individual potential, community potential, and technological potential to support workforce enablement.
Gartner explained that unlocking individual potential could allow CSCOs to find high-demand skills by breaking down projects into component tasks and seeking skills needed for those tasks across the entire organization. The company also suggested leveraging crisis situations and market opportunities to break down silos and find new organizational structures. Finally, Gartner recommended that organizations implement new technology solutions, such as actionable AI and smart robotics, to make work easier and less mundane for employees while designing new ways of working with the human-technology relationship in mind.
Artificial Intelligence & Driver Issues 🚛
Automated Vehicles: A Brighter Future for Trucking
Self-driving vehicles traveled approximately 4 million miles in California in 2021, double the previous year's total, with the trucking industry well-placed to benefit from autonomous vehicle technology. The push for AV solutions in road haulage is primarily about safety, with AV technology having the potential to address driver error-related accidents that cause fatalities. AVs also offer benefits such as easing the labor shortage, increasing efficiency, and addressing industry pain points like congestion, parking, and road safety.
Mazen Danaf, Senior Applied Scientist & Economist at Uber Freight, recently authored a paper called 'The future of self-driving technology in trucking,' showing why trucking is the fastest route to commercializing and scaling self-driving technology. Danaf also outlined an AV hub-to-hub model that will allow autonomous trucks (ATs) to operate alongside those driven by people, which will benefit carriers, drivers, and AV developers, offer drivers better working conditions, and satisfy growing demand. Sanaf expects autonomous trucking to expand gradually throughout the US interstate system, with weather, regulations, and autonomy capabilities dictating the lanes on which ATs will operate.
Let’s Get Global 🌎
🇺🇸 Examining potential outcomes: How will the US debt limit standoff conclude? The US is facing a looming debt limit deadline, and both President Biden and House Speaker McCarthy are unwilling to give ground ahead of talks scheduled yesterday. While there are many possible scenarios, it is unclear how the standoff will end. Biden aims to raise the borrowing limit to pay bills and prevent default, while McCarthy and other GOP lawmakers are seeking spending cuts before agreeing to raise the limit. A short-term extension until the federal budget is passed may be a possible solution, but there is also the risk of a market selloff or potential constitutional arguments.
🌏 Reshoring of Production from Asia to North America Accelerates, Report Finds. According to Kearney’s 2022 Reshoring Index, 96% of US CEOs are reshoring, already reshored, or considering it. This is an 18% increase since 2021. The trend has grown since the Trump administration's punitive trade policies and was boosted by the pandemic's disruption of global supply chains, leading more than 80% of US companies in almost all industries to move their manufacturing operations back to the country in the next three years. Major growth in a variety of well-positioned countries, often at the expense of China, has also been observed.
🚂 Hub Group partners with CN to speed up intermodal and shipping. Hub Group sees potential for growth with its rail partner Union Pacific and the carrier’s new alliance with CN and Ferromex, creating a new cross-border service from Canada to Mexico via Chicago. The partnership allows the rail carriers to leverage their networks to accelerate intermodal and shipping speed, creating faster connections that are two to three days better than the best service. The railroads aim to increase North American trade driven by the US-Mexico-Canada Agreement.
iLevel With You 🏡
More topics for the average American household to consider…
🤝 Workforce Management Embraces Human Centricity as a Growing Trend. The supply chain industry has been struggling with labor shortages, which have been exacerbated by economic pressures, changing consumer trends, and an aging population. To attract and retain a quality workforce, organizations need to adopt modern workforce management solutions that prioritize employee experience and offer scheduling flexibility, real-time communication, streamlined work processes, and support for career development and upskilling. By deploying a human-centric approach, companies can remain competitive and grow even in volatile market conditions.
👨🏻🔧 A Blend of Traditional and Modern Approaches Necessary for Tech Recruiting and Training. The trucking industry is experiencing a shortage of diesel technicians, with 177,000 new technicians needed between 2022 and 2026. A mentorship program can help pass on knowledge from seasoned technicians to newcomers, as well as promote digital literacy. Augmented and virtual reality training tools are also emerging, offering realistic repair experiences for technicians. The combination of old-school knowledge sharing and new-school technology deployment can help bridge the skills gap and retain valuable knowledge within the industry.
⛽️ US Diesel Prices Fall Below $4 on Average. The average price of diesel fuel in the US has dropped below $4 per gallon for the first time since February 2022, according to the Energy Information Administration. The current price sits at $3.922 per gallon, down from $4.018 per gallon on May 1, due to a nationwide freight slowdown that has resulted in lower demand for fuel and increased stockpiles. Experts predict that gasoline and diesel prices will move apart, with diesel prices falling and gasoline prices rising in the next couple of weeks.
🔋 Lack of EVs at Dealerships Persists, Despite Growing Demand. Despite the growing popularity of electric cars and trucks, two-thirds of US car dealers surveyed in a new Sierra Club study published on Monday, didn't have any battery-electric or plug-in hybrids for sale in 2022, new or used. Part of the problem is supply chain blockages, including shortfalls in semiconductor and battery production that prevent manufacturers from making enough electrics to meet demand. Furthermore, the structure of the car sales model can put dealers, manufacturers, and customers at odds since the economics of EVs can disrupt the business model for dealerships.
🇺🇸 Gallup poll reveals Americans don't trust Biden or Powell. A new Gallup poll has shown that Americans lack confidence in President Biden, Federal Reserve Chair Jerome Powell, and Treasury Secretary Janet Yellen when it comes to the economy. Just 35% of Americans have confidence in Biden, which is the lowest rating for a president since 2008. Similarly, only 36% of respondents have confidence in Powell, which is the lowest level of public confidence for a Fed chair on record. Additionally, just 37% of those polled say they have confidence in Yellen.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🍫 Nestlé Shuts Down Two Manufacturing Plants in Pennsylvania. Nestle Health Science will close two plants in Pittsburgh, Pennsylvania, next month, resulting in the layoff of 312 workers, as part of the company's efforts to streamline its supply chain network to increase efficiency. HVL LLC, which is the trade name of nutrition and health firm Atrium Innovations, and dietary supplement brand Pure Encapsulations will be affected. The company is also reportedly considering options for its instant coffee plant in New Jersey due to its age, while it has invested in adding two production lines to its factory in Eau Claire, Wisconsin, earlier this year.
🔋 XPO Logistics places an order for electric trucks to serve California. XPO Logistics has ordered 10 electric trucks for use in its California LTL fleet, according to a report by Bloomberg. The purchase is the latest step by XPO in testing EVs for its logistics operations, following its previous pilot programs with Daimler and Renault. The move also supports the wider industry shift towards zero-emission vehicles, with the Biden Administration backing an international pledge to make all medium- and heavy-duty truck sales zero-emissions by 2040, and California requiring 75% of Class 4-8 truck sales to be zero-emission vehicles by 2035.
⛏️ Musk celebrates groundbreaking ceremony of Tesla's lithium refinery in Texas. Tesla CEO Elon Musk and Texas Governor Greg Abbott have broken ground on Tesla's new $375m lithium refinery in Corpus Christi. The facility will help Tesla obtain a domestic supply of lithium hydroxide, which is a key ingredient in battery production for its EVs and home-scale batteries. The company intends to produce enough battery-grade lithium at the refinery to manufacture one million vehicles per year, and more lithium than North America’s refining capacity combined.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 27, 2024, from iLevel Logistics Inc.