Unveiling the Shadow: The Nationalist Aspect of Joe Biden's Climate Policies
Good morning! On this special day, as we celebrate the International Day of Families, we turn our attention to the integral role that families play in the intricate web of supply chains worldwide. Families are the foundation of society, and their impact extends far beyond the boundaries of their homes. In the realm of supply chain management, families contribute in numerous ways, both as consumers and as workers within the industry. From the assembly line to the boardroom, their involvement and influence shape the dynamics of this interconnected system.
Stay tuned for thought-provoking insights, actionable strategies, and fascinating stories that will expand your understanding of this intricate and essential network that keeps our world moving. 🌎
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While the Trump and Biden presidencies differ greatly on various issues, such as climate change and foreign policy, when it comes to foreign trade and protectionism, there is more continuity than difference. Former President Trump implemented extensive tariffs, particularly targeting China, and President Biden has largely maintained the Trump tariff regime.
However, Biden's Inflation Reduction Act, a climate bill, has drawn criticism from foreign governments for its protectionist approach, raising concerns about turning America inward economically and undermining the open trade regime established by previous administrations. The Biden administration's approach to industrial policy is also questioned, as it may not deliver the anticipated surge in manufacturing jobs while potentially undermining global efforts to reduce carbon emissions.
Check out today’s featured article from VOX to read about the wavering opinions on the current administration’s climate policies and “buy American” attitude. Is it truly asking too much of the American economy and citizens? Or is it exactly the push the nation needs?
Featured Article:
The nationalist dark side of Joe Biden’s climate policies | Vox
“Why an ex-Biden official is “deeply disappointed” in his Buy American policies.”
Data & Network Association 📊
Costco and Walmart Collaborate with Biden Administration's Supply Chain Data Exchange Initiative
Costco, Walmart, and Union Pacific have joined the Biden administration's Freight Logistics Optimization Works (FLOW) program, which aims to provide real-time visibility into U.S. supply chains through the exchange of company data. FLOW participants, representing different sectors of the supply chain, share shipment data to create a tool that measures container demand and fluidity.
The program aggregates anonymized data, allowing participants to anticipate shipments up to three months in advance. With plans for expansion and funding allocation, FLOW aims to enhance supply chain resilience and responsiveness in the face of future disruptions.
Manufacturing & Shortages 🏎️
Rolls-Royce Highlights Ongoing Concerns Over Supply Chain Disruptions
Rolls-Royce Holdings Plc acknowledges that supply chain disruptions remain a significant operational challenge, echoing concerns expressed by other manufacturers such as Airbus and Boeing. The company, which produces engines for Airbus A350 aircraft, maintains its full-year projections for underlying operating profit and free cash flow. However, Rolls-Royce emphasizes that the aviation industry continues to face difficulties in output due to a lack of spare parts, skilled labor, and disruptions caused by sanctions against Russia, a key supplier of components.
Despite the challenges, Rolls-Royce's CEO, Tufan Erginbilgic, has initiated a transformation program within the company to address these issues. While the supply chain disruptions are not expected to impact the company's financial forecast for 2023, Erginbilgic acknowledges the need to reduce the company's high debt and emphasizes the urgency with which they are approaching this matter.
Let’s Get Global 🌎
🗺️ G-7 Prioritizes Strengthening Banks and Supply Chains Amidst Accusations of Hypocrisy. The Group of Seven (G-7) advanced economies held closed-door financial talks in Japan, focusing on issues such as bank runs, cybersecurity, and building more reliable supply chains for economic security. Tensions with China and Russia loomed large, as the G-7 discussed protecting the international rules-based order and preventing "economic coercion" by China. China, in response, accused the G-7 of hypocrisy and claimed to be a victim of economic coercion itself. The talks also addressed concerns about the concentration of rare earth metals suppliers in China and the challenges of steering the global economy toward recovery and price stability.
🇵🇦 Drought, Shipping, and the Panama Canal's Impact on the Supply Chain. Panama has been experiencing an extended period of drought, with no signs of improvement in the coming weeks or the rest of the spring season. The impact of low rainfall is being felt at the Panama Canal, a crucial route for global maritime trade, which typically handles about 6% of the world's trade. Due to the water scarcity, vessel restrictions have been imposed, resulting in reduced cargo capacity and fewer goods being transported through the canal. Unfortunately, the forecast does not indicate any significant improvement in the short or long term, and the situation may worsen as lake levels continue to decrease. Additionally, the potential transition to an El Niño event raises concerns about even drier conditions in Central America.
📱Steadying the Ship: Apple iPhone Supply Finds Stability Following Disruptions in China. Apple has successfully addressed the production disruptions it faced last year, with CEO Tim Cook stating that iPhone supply was not an issue during Q2. The company had previously warned of reduced capacity and delayed shipments due to COVID-19 restrictions in China. However, production levels improved in Q2, enabling Apple to recapture lost sales from the previous quarter. Additionally, Apple has taken steps to diversify its production geographically, expanding assembly operations to countries like Vietnam and India to reduce reliance on China.
iLevel With You 🏡
More topics for the average American household to consider…
✈️ Is 2023 Set to Repeat the "Air Travel Hell" of Summers Past? Troubles from the 2022 travel season continue to haunt Americans as they prepare for the upcoming summer travel period. Last year saw skyrocketing airfares, cancellations, and an overwhelmed aviation industry. The newly released North America Airline Satisfaction Study by J.D. Power reveals a decline in customer satisfaction with major airlines for the second consecutive year, driven by rising ticket prices and increased fees. The upcoming summer is expected to see strong demand, but concerns persist about staffing shortages, infrastructure underfunding, and potential operational disruptions due to the implementation of new sensors to address 5G interference. The Biden administration is proposing measures to alleviate some of these issues, including compensation for controllable airline cancellations and the creation of a website to track airline amenities.
🚴♀️ The Feasibility of Gig Workers' Livelihoods: Can They Truly Make a Living? The definition and viability of gig workers remain hotly contested topics, with ongoing debates regarding their classification and the potential exploitation of the gig economy model. While platforms like Uber and Airbnb popularized gig work, it has long been prevalent in supply chains, particularly with truck owner-operators. California's Proposition 22 sparked a legal battle over the status of independent contractors, raising questions about worker benefits and job security. In this episode, Bob Bowman, Editor-in-Chief of SupplyChainBrain, engages in a conversation with Kashyap Deorah, the CEO of HyperTrack, to delve into the complexities of the issue and explore potential solutions that strike a balance between workers and employers in the gig economy.
🔋 California Sets Pace as Waste Industry Prepares for Challenges in EV Rollout. California's adoption of the Advanced Clean Fleets rule has created challenges for waste haulers, who now face the task of purchasing 100% zero-emission vehicles by 2042. However, the industry is struggling to find electric trucks that can meet their operational demands, with concerns surrounding charging infrastructure and the technological advancements needed to meet regulatory deadlines. While waste haulers are actively working to acquire electric trucks and build charging infrastructure, smaller haulers face greater challenges due to funding limitations and delays in obtaining charging infrastructure from utilities.
📦 DHL anticipates a demand rebound in the second half of the year, leading companies to make optimistic bets. U.S. imports have seen a rebound, with items like outdoor furniture, bookcases, doors, and household goods being top imports from China. However, DHL Global Forwarding CEO Tim Scharwath notes that the overall import trade trend remains soft, and it will take time for volumes to fully recover as retailers work to reduce their inventories. Supply chain issues and logistical challenges in countries like India are still factors affecting trade volumes.
✊ Southwest Pilots Overwhelmingly Vote to Authorize Strike. Southwest Airlines pilots have voted overwhelmingly to authorize a potential strike, adding to the challenges the carrier is already facing. The vote is intended to increase pressure during contract negotiations, which have been ongoing for over three years. However, it is important to note that federal law makes it difficult for airline unions to go on strike, so the immediate likelihood of a walkout is low. Negotiations between Southwest and its pilots have been focused on scheduling practices and other issues. American Airlines pilots also recently approved a strike vote, but progress is being made on a potential deal.
🌇 Underlying factors behind the closures of major retailers in metropolitan areas. The closure of major retailers like Walmart and Starbucks in big cities is driven by a combination of factors, including oversaturation of stores, remote work trends, online shopping, high rents, crime concerns, and difficulties in hiring workers. To revitalize downtown retail, significant changes are necessary, such as creating denser neighborhoods with a diverse mix of affordable housing, experiential retail, restaurants, entertainment, parks, and other amenities. Policymakers play a crucial role in reshaping downtowns to attract retail and ensure the fiscal health of cities and regional economies.
⚖️ Multiple states join California in ongoing legal battle over AB5. States join legal battle over AB5, highlighting the political divide on independent contractor status. The case, known as Olson, involves Uber and Postmates as plaintiffs challenging the legality of AB5, a California law that determines worker classification. The recent filings from 15 state attorneys general aim to support an en banc hearing to correct a panel decision that the patchwork of exceptions in AB5 violated equal protection.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🗣️ High-Stakes Labor Negotiations Begin Between UPS and Teamsters in the United States. UPS and the International Brotherhood of Teamsters have commenced negotiations for their U.S. private-sector labor contract, which covers approximately 340,000 employees. The Teamsters union aims to secure a deal that shares UPS's pandemic profits with workers, influences other negotiations, and aids in the recruitment of new members, including Amazon warehouse workers. Despite the talks, two regional supplemental agreements with the union remain unresolved, specifically for the Local 89 Air Rider in Louisville and Sacramento/Northern California.
⛓️ Leveraging Blockchain to Foster Trust in Supply Chains. The increasing costs and concerns in the U.S. food supply chain, including food adulteration and lack of transparency, are driving the need for a standardized system that offers full life cycle traceability. Blockchain technology is seen as a powerful solution to enhance supply chain security and provide transparency by tracking products from seed to sale. The scalability of blockchain enables the processing of large volumes of data transactions, ensuring accurate information about the composition, quality, provenance, sustainability, and brand of products. By leveraging blockchain-powered traceability systems, consumers can make informed choices and trust that the products they purchase are ethically sourced, processed, and labeled.
🚛 Keeping Aging Assets on the Road: Strategies for Prolonging the Lifespan of Trucks. Fleets across the U.S. are grappling with increasing major repairs and rising costs to keep aging trucks on the road. Independent truck dealerships, such as Kenworth Northeast, have witnessed a surge in vehicles requiring significant repairs, with invoices exceeding $50,000. A combination of high equipment costs and supply chain disruptions have led to fleets extending the trade cycle of trucks, necessitating diligent maintenance strategies to address wear and tear and prevent potential issues, including oil leaks, electrical system problems, and braking system inspections.
♻️ Expanding Alternatives Drive Surge in Renewable Diesel Production. Increasing production of renewable diesel in the United States is underway, with new facilities coming online and existing ones ramping up. Refiners are seeking to meet the growing competition for alternative fuel options in the trucking industry as emissions reduction alternatives multiply. Renewable diesel, which requires no changes to engines or new purchases, offers a significant market opportunity for both on- and off-highway vehicles, contributing to decarbonization efforts and reducing greenhouse gas emissions in the transportation sector.
💰 Representative Van Drew Urges for Truckers to Receive Overtime Pay. Rep. Jefferson Van Drew of New Jersey is urging his colleagues to take concrete actions to support truck drivers and improve the supply chain. During a House hearing, Van Drew emphasized the need for fair treatment of truckers and highlighted issues such as the lack of truck parking, restroom access, and overtime pay. The Owner-Operator Independent Drivers Association (OOIDA) also testified in favor of paying truck drivers overtime, stating that it would enhance safety, address detention time problems, and demonstrate the value of a truck driver's time. Van Drew co-sponsored a bill in the previous session, and he called on lawmakers to support its reintroduction to ensure fair compensation for hardworking truckers.
🚚 Einride CEO: Electric Big Rigs Already Economically Viable for 50% of the $4 Trillion Freight Truck Market. Electric big rigs already make economic sense for approximately 50% of the $4 trillion freight truck market, according to Einride CEO Robert Falck. While diesel prices have fallen, Falck emphasized that the EV transition is cost-competitive, particularly in markets where electricity costs are lower, and as trucking hardware becomes more affordable. Einride, along with Tesla and other companies focused on trucking, is at the forefront of the EV transition in the freight industry, attracting top corporate clients and proving the business case for sustainable transportation solutions.
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.