⚡️ Musk's China Chat
Good morning! Hey there, supply chain enthusiasts. Welcome to our Tuesday edition of the Workday Dash - freshly brewed after the Memorial Day break. We hope you all had a fantastic long weekend and are ready to dive back into the exciting world of logistics and operations.
So grab your coffee, settle in, and let's catch up on all things supply chain. Let's get this week rolling! ☕️
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Tesla's shares rose after CEO Elon Musk met with China's Foreign Minister Qin Gang, indicating further expansion of Tesla's business in China. Qin expressed China's commitment to open and create a better business environment for foreign companies, particularly in the electric vehicle market. Tesla's positive stance on expanding its presence in China was well-received, leading to a 5% jump in the company's shares. The meeting comes amid ongoing tensions between the US and China over technology, as well as increased competition and a price war faced by Tesla in the Chinese market. However, Tesla's strong presence in China, including its major production factory in Shanghai, highlights the company's commitment to the market.
Check out today’s featured article from CNBC to read about Tesla’s shares rising and what happened when Elon Musk met with the foreign prime minister. Will Tesla’s shares go up even more in the upcoming weeks? Will China keep its promise of an open and better business environment?
Featured Article:
Tesla shares rise as Elon Musk meets with China’s foreign minister | CNN Business
“Elon Musk met with China’s Foreign Minister Qin Gang on Tuesday as Beijing pushed to show it is open to foreign business and the Tesla CEO reportedly signaled further expansion in China.”
Regulations & Politics 🇺🇸
Will the EPA proposal survive political war?
The trucking industry is raising concerns and opposition to the new Phase 3 rule proposed by the Environmental Protection Agency (EPA), which aims to accelerate the adoption of electric vehicles (EVs) in the industry. One major challenge highlighted by industry players is the high cost of all-electric trucks compared to diesel trucks, as well as long charging times and the weight of batteries affecting cargo capacity. Owner-operators are particularly wary of the regulation and the lack of charging infrastructure for heavy-duty commercial trucks.
Conservative lawmakers and policy influencers are also mobilizing against the EPA's rule, arguing that it exceeds the agency's authority and restricts consumer choice. However, the California Air Resources Board (CARB) sees zero-emission trucks as feasible for the industry and believes that EPA's targets should be even more ambitious. The transition to electric trucks is seen by some as crucial for the economy and the environment. Despite the challenges, some companies are willing to explore alternative options, such as hydrogen-electric vehicles.
Cab Tech & Driver Issues 🚛
Bendix has secured a patent for its tractor-trailer cybersecurity technology
Bendix Commercial Vehicle Systems has obtained a patent for a device designed to prevent cyberattacks on tractor-trailers' braking systems. Developed in collaboration with the National Motor Freight Traffic Association (NMFTA), this device can detect and block malicious communication signals that may pose a threat to the braking systems. By enhancing the security of operating systems in the trucking industry, this technology aims to reduce operational disruptions and associated costs.
Despite the absence of reported attacks on trailers or tractors, the NMFTA remains committed to addressing vulnerabilities and seeking additional solutions to protect the industry from potential cyber threats. The collaboration between Bendix and the NMFTA demonstrates their proactive approach to safeguarding the trucking industry and ensuring the continued safety and reliability of tractor-trailers on the road.
Let’s Get Global 🌎
🇲🇽 Laredo, TX stays at #1 gateway for international trade. In March, Laredo saw a 12% year-over-year increase in total commerce, reaching $28.6 billion. Chicago O'Hare International Airport and John F. Kennedy International Airport ranked second and third, respectively. The Port of Los Angeles, previously holding the top spot, slipped to fourth place. Mexico remained the top trading partner for the United States, while Canada and China ranked second and third, respectively.
🚂 The recent seizures of Mexican railways are causing concerns. President Lopez Obrador's recent actions in Mexico, including the seizure of private railways and confiscation of private land, are causing concern among potential investors. The seizures are part of the government's plan to build a commuter train line and connect the Pacific with the Gulf of Mexico. The actions have already impacted billionaire German Larrea's bid to acquire Citigroup's Mexican retail banking arm.
🇦🇺 Australia sees huge market for battery metals. Australia's trade minister, Don Farrell, stated that President Joe Biden's climate policy is fueling a surge in mineral exploration in Australia as the US seeks to catch up with China in clean energy technologies. The Inflation Reduction Act, which offers incentives and tax credits for clean technologies, including electric vehicles (EVs), is driving increased investment in Australian miners and battery metal exploration.
iLevel With You 🏡
More topics for the average American household to consider…
💰 A crucial test looms for the federal debt deal. President Joe Biden expressed confidence in the debt ceiling and budget deal negotiated with House Speaker Kevin McCarthy to secure its passage and avoid a U.S. default. McCarthy urged colleagues to recognize the victories in the agreement and acknowledged the ongoing challenge of gaining support. Before a full House vote, the House Rules Committee is set to consider the package, which includes expanded work requirements for some food aid recipients.
🚛 EV big rigs will play massive role in the environment. The International Maritime Organization aims to reduce greenhouse gas emissions from the shipping industry, which accounts for nearly 3% of global emissions. To achieve this goal plans for "green shipping corridors" are being developed along major trade routes, including the busy Los Angeles-Shanghai route. These corridors would bring together various stakeholders, including marine fuel producers, vessel owners, cargo owners, and ports, to fast-track the adoption of new technologies and methods for reducing emissions.
✈️ Memorial Day air travel has exceeded the levels seen in 2019. Memorial Day air travel in the United States exceeded pre-pandemic levels, with the Transportation Security Administration screening 9.79 million people over the holiday weekend. This shows that despite ongoing inflation, consumers are still willing to spend on trips. Friday saw a post-pandemic record of over 2.7 million people screened. Airlines are closely monitoring travelers' willingness to pay for vacations amid rising interest rates and high costs of food and housing.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🚢 Maersk has inaugurated a supply chain innovation center Maersk has launched the Maersk Innovation Center in Jersey City, New Jersey, with a focus on emerging technologies to drive supply chain innovation and resilience. The center aims to develop a pipeline of innovative ideas and accelerate their implementation, working with customers, partners, and startups.
📈 How to understand rates and how to maximize earning potential. Freight rates and fuel prices are constant concerns for owners of small trucking businesses. Rates fluctuate, and successful trucking businesses adapt to remain profitable. Spot rates and contract rates are two types of rates that carriers deal with, each with its advantages and disadvantages. Fuel surcharges also play a role in determining costs. In 2022, trucking saw record-high spot rates, but rates eventually decreased while fuel prices spiked.
🔋 EV charging doesn’t regard trucking needs. Recent announcements about the deployment of electric vehicle (EV) charging infrastructure have overlooked the needs of commercial vehicles, raising concerns in the trucking industry. Similar concerns arise regarding the installation of EV chargers in various regions, where the commercial vehicle-accessibility aspect has not been addressed or answered. This lack of consideration for commercial vehicles in EV charging infrastructure development raises questions about whether the trucking industry is being left behind.
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.