Concerned shippers pen letter to president, insisting further action to avoid rail strike
Good morning! It’s November 1st! Now that Halloween is over… that means it’s time to put up the Christmas tree… right? Or is that just us…?
The nation’s freight rail system hangs on the edge of a steep cliff as labor negotiations continue to deteriorate. A group of concerned associates penned and signed a letter to the White House, pleading for further intervention in order to avoid a catastrophic rail strike and/or lockout.
Check out today’s featured article from Supply Chain Dive to read about the call to action by over 300 state and national trade associations to have President Biden intervene further in labor negotiations between the railroads and the unions. ☕️
Featured Article:
Shippers urge Biden to prevent potential rail shutdown | Supply Chain Dive
“Over 300 trade associations signed a letter asking the president to prevent a strike or lockout.”
Trade & Border Issues 🚢
Russia pulled out of UN-brokered grain deal and the world is not happy
Last week, Russia revoked its agreement to the United Nations-brokered deal that was meant to ease a global food crisis and assist in delivering grain from clogged Ukraine ports in the Black Sea. The suspension of Russian operations and cooperation has drawn criticism from the west, led by U.S. President Joe Biden who called the move, “purely outrageous”. Russia has claimed that the move is a result of a major Ukrainian drone attack on a fleet near Russian-annexed Crimea and that British navy “specialists” joined forces with Ukraine to deploy the attack.
European Union foreign policy chief Josep Borrell has stated that the global food crisis created by Russia’s invasion of Ukraine has now been renewed and urged the country to reconsider its decision. President Volodymyr Zelenskiy’s chief of staff went as far as to accuse Russia of fabricating the attacks on its facilities to use as a reason for pulling out of the agreement.
Fuel & Shortages ⛽️
Prepare for diesel shortages as winter approaches
The federal government is being asked to intervene in the growing diesel shortage problem. With the cost of deliveries scheduled for November rising 33% and expected to continue to climb, the reserves haven’t been as low as they are today since 1951. Next year, the ban on Russian imports is likely to increase the competition for fuel in the country and there doesn’t seem to be any sign of stopping. The greatest declines are being recorded in the New York and New England regions.
To avoid further shortage issues, experts state that diesel should be imported from other countries are tankers out of the Gulf of Mexico. However, due to the Jones Act, this act is largely illegal. Jones Act waivers have already been issued to Puerto Rico after a hurricane swept over the island, but the Department of Homeland Security says they will only issue these waivers on a case-by-case basis. Until then - if ever - only a very small amount of U.S. owner-and-operated tankers are available for energy transport between U.S. ports.
Let’s Get Global 🌎
Scared Kermit The Frog GIF vis GIPHY
🇩🇪 Geopolitical tensions are making German automakers nervous. Decades ago, the likes of BMW, Volkswagen, and Mercedes-Benz bet it all on China, now selling more vehicles in China than in any other market and building dozens of factories in the country. This move has proved massively profitable for years. However, the People’s Republic of China has continued to consolidate power and has not addressed the growing human rights issues being displayed in the Xinjiang province, particularly the treatment of Uyghurs. The car manufacturers are being called out more often about “turning a blind eye” to human rights abuses.
🇹🇼 The maritime industry is threatened by the underlying conflict between China and Taiwan. China has been making veiled - or… not-so-veiled threats of invading Taiwan over recent months. If China follows through and disconnects underwater internet cables that are vital for the semiconductor industry between North America and Asia, we can expect catastrophic economic scenarios. The shipping industry would have to navigate a major crisis of delayed shipments, lost ships, and sky-high operational expenses.
🇲🇽 The U.S. and Mexico’s trade chiefs are ready to talk about energy policies. After the US-Mexico-Canada Agreement on trade was implanted in 2020, (replacing the previous Nafta pact that was in place for twenty years) the United States and Canada filed complaints against Mexico’s electricity policy. Mexico’s policy shows privilege to the state-owned oil producer, Petroleos Mexicanos, and CFE. The current arbitrary talks between the countries will be conducted by Trade Representative Katherine Tai from the U.S. and Raquel Buenrostro of Mexico. Buenrostro was recommended by Mexico’s President Andres Manuel Lopez Obrador for the job.
iLevel With You
More topics for the average American household to consider…
💙 Amazon’s cost-cutting measures during the holiday season likely won’t pay off. At least… not right away. With Q4 underway, the retailer made massive cost reductions as peak season begins to set in. Amazon CFO Brian Olsavsky stated in a Q3 earnings call that the company’s mission is to kick off Q1 with a strong market presence, but this reminder comes on the heels of Amazon failing to meet its operations cost improvements goals during Q3 - to the tune of $1.5 billion. Customer demand is fading after two years of operational boom, and Amazon has responded by closing and delaying the construction of dozens of distribution centers across the nation. Will inflationary pressures keep sales relatively low as Christmas approaches?
📊 The Federal Reserve is likely to see rising employment costs as the go-ahead for another interest rate increase. According to the U.S. Labor Department, the employment cost index grew by 1.2% from July through September. Employers have been boosting wages to retain employees and keep filling opening positions. Policymakers have been struggling to keep up with the wage hike and stamp out the consistent inflation. A softening labor market is the only solace in sight.
🛞 If you want better highways, blame the politicians. Says, the politician: Rep. Peter DeFazio (D-OR) who spoke at the American Trucking Associations’ Management Conference & Exhibition in San Diego, California. DeFazio’s comments turned heads and raised eyebrows after he publicly accused Boeing of being a corporation known for “killing people for profit.” He referenced the ambitious $300 billion highway plan he wrote in 2009 that was shot down by President Obama and said that the Infrastructure Investment and Jobs Act which was passed last year is the first step in relief for our nation’s highways.
GET SMART
Ramp up that brain power for these advanced topics…
🚂 Self-driving cars may be gone with the wind - but what about improving our trains? Rail is autonomous, in some respects. Freight is carried massive distances with little-to-no human contact. Railroads have long been the most fuel-efficient cargo-moving method over land, however, our nation’s railroad network is long-due for a facelift. With current spats between the railroads and its unionized employees, an improved rail system may be the last thing on anyone’s mind.
🚢 Global ocean carrier shipping rates are plummeting, but the Chinese New Year in 2023 might save the day. That’s at least what carriers are hoping as the January 22nd date approaches. The holiday is expected to boost demand over November and December. Some forwarders have been mentioning that freight from Asia is being delivered too quickly and lengthy supply chain delays have made the expected port timing much longer.
🔋 Welcome the newest opposed-piston Achates engine. While many believe that diesel-run engines are on their way out the door, a 10.6-liter, 2-stroke, 3-cylinder, opposed-piston Achates engine may be what takes its place. Compared to conventional diesel engines, this engine is 30% more efficient and is based on old tanks and military vehicles. Achates, a San Diego-based company formed in 2004, was awarded $9 million in 2015 by the U.S. Department of Energy to develop a “disruptive" internal-combustion engine.
Leadership 🏆
ZF’s Transition from Lean to Supply Chain Resilience | Logistics Viewpoints
Logistics Viewpoints contributor Steve Banker writes about his interview with John Sobeck, Vice President of Material Management Services and Supply Chain 4.0 at the ZF Group. Together they discuss the company’s digital supply chain transformation and what that journey entailed.
Supply Chain Cartoon Caption Winners for Summer 2022 Contest | SC Digest
In this article, SC Digest shares its selected Cartoon Caption winners of the summer.
Gallery: ATA’s MCE turns attention to trucking’s future | Fleet Owner
Fleet Owner contributor Josh Fisher writes about several exhibitions at the American Trucking Associations in San Diego Bay this past weekend.
Liz Weston: What are your employee benefits really worth? | AP News
In this article, AP News contributor Liz Weston of NerdWallet writes about the importance of recognizing that your employee benefits usually make up more than 30% of a job’s compensation.
Sustainability ♻️
Economic, social & environmental sustainability at Hoyer | Supply Chain Digital
In this article, Supply Chain Digital contributor Helen Sydney Adams writes about Allan Davison, HOYER Group’s Executive Director for Gas & Petroleum Logistics. They discuss the company’s sustainability goals.
Industry Forecast 📊
North American freight giant sees shipping slump ahead of holidays | The Trucker
In this article, The Trucker News Staff writes about the DAT Truckload Volume Index findings as the holiday approaches - will North America step up to the plate?
Driver Issues 🚛
Best fleets to get your foot in the door | Back The Truck Up
In this article, Back The Truck Up’s Rooster writes about some of the best trucking companies to check out when it comes to great starting days and quality training.
American Politics 🇺🇸
Economy and inflation top public’s agenda going into midterm elections: POLL | ABC News
ABC News contributor Brittany Shepherd writes about the upcoming midterm elections and what polls are showing as the most important issues on Americans’ minds.
Here's how the midterms will affect the stock market | Fox Business
In this article, Fox Business contributor Phillip Nieto writes about the trends to be expected from the stock market post-midterm election results.
Economics 💰
A spooky forecast for the future of interest rates | CNN Business
CNN Business contributor Nicole Goodkind writes about the question of interest rates on a global scale.
Rail 🚂
In this article, Logistics Management Staff writes about the railroad and intermodal volumes declining at the end of the week.
Ports 🚢
Box volume decline continues at Port of Oakland | Container News
In this article, Container News writes about the September drop in container volume at the Port of Oakland: 7.9%.
Business Strategy 💡
Old Dominion is not filling vacancies as it seeks to lower short-term costs | Transport Dive
In this article, Transport Dive contributor Edwin Lopez writes about the business decision by Old dominion to lower short-term costs by pulling job vacancies available to the public.
Ryder used truck, tractor prices cool from 2022 highs | Transport Dive
In this article, Transport Dive Associate Editor David Taube writes about Ryder System’s cooling peak prices and dropping sales margins.
Fuel ⛽️
Gasoline Prices Are Rising Again as Big Oil Profits Soar | Transport Topics
In this article, Transport Topics contributor from Bloomberg News, Chunzi Xu, writes about the giant oil profits being made as gasoline prices begin o spike again.
China wants America's natural gas. Some lawmakers are worried. | Yahoo! News
In this article, Yahoo! News contributor Gavin Bade writes about the growing trend of Chinese energy companies consuming American natural gas exports and what that could mean for the economy.
Fuel company issues diesel shortage warning, says conditions 'rapidly devolving' | Fox Business
In this article, Fox Business contributor Timothy Nerozzi writes about the growing diesel shortage warnings hitting Maryland, Virginia, Alabama, Georgia, Tennessee, North Carolina, and South Carolina.
Marketing Approach 📲
GM temporarily suspends advertising on Twitter following Elon Musk takeover | CNBC
In this article, CNBC contributors Michael Wayland and Lora Kolodny write about Musk’s Twitter takeover and how Tesla’d competitor, General Motors is temporarily ceasing advertising on the platform. The move was made, per GM, because they are actively reviewing the “direction of the platform.”
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.