Newly proposed rule requires biggest U.S. suppliers to disclose emissions
Good morning! Happy Thursday, folks. 🧢 Up and at ‘em on the right side of the bed this morning.
The most dangerous poison is the feeling of achievement. The antidote is to every evening think what can be done better tomorrow.” — Ingvar Kamprad, founder of IKEA
The White House is putting a huge focus on meeting its sustainability goals of net-zero emissions in procurement by 2050. The newly proposed Federal Supplier Climate Risks and Resilience Proposed Rule would require companies with more than $7.5 million in federal contracts to provide their emissions records. These suppliers should have emissions goals that meet the Paris Agreement standards - otherwise, they will no longer have America’s business.
Check out today’s featured article from Supply Chain Dive to read about President Joe Biden’s proposition for the country’s largest suppliers to abide by - disclose your emissions, or say goodbye. ☕️
Featured Article:
Biden proposes new sustainability rules for federal suppliers | Supply Chain Dive
“Companies with more than $7.5 million in federal contracts would be required to disclose emissions.”
Ports & Dwell Fees 🚢
Import dwell fees are coming to the Port of Houston
A new policy is bringing a $45 per day “Sustained Import Dwell Fee” for shippers to the Port of Houston. On the 8th day of dwelling, all cargo will result in this fee. This dwell fee will not be replacing demurrage charges incurred and will be assessed directly to BCOs (Beneficial Cargo Owners).
The reason for this dwell charge is to avoid additional congestion at the port, which has seen a huge increase since West Coast port cargo was rerouted to the Gulf. While not yet set in stone, there is an additional “Excessive Import Dwell Fee” being discussed, which would further penalize “sitting-duck” cargo.
Labor Costs & Inflation 💸
Funko paid $5 million in excess warehouse labor in Q3
In a November 3rd earnings call, Funko’s CFO Jennifer Fall Jung said that the company had paid out $5 million in excess warehouse labor during the third quarter. The reason for this excess labor cost was due to the consolidation of its fulfillment center without the intended software at its fingertips. The maker of bobblehead-like pop culture collectibles had not expected to move forward without any warehouse management software.
The fulfillment center was opened early regardless of this due to elevated demand for its action figures and collectibles. Its vinyl figurines of comic book characters and other pop culture icons are now housed in a single facility in Buckeye, Arizona.
Let’s Get Global 🌎
Season 4 Money GIF By SpongeBob SquarePants via GIPHY
👿 Labor and environmental supplier audits are often ripe with scams. According to Human Rights Watch (HRW), a global organization that tracks and protects human rights in some 90 countries, the published study “Obsessed with Audit Tools, Missing the Goal” shows that business practices are often misrepresented during these audits. The study interviews 20 current or former auditors, 23 suppliers and brand representatives in the apparel industry, 46 garment workers in Myanmar and India, and representatives from worker rights organizations. The research showed that in preparation for the audit, suppliers often propose collusion with the audit company to remove signs of human rights abuse or practices before the report is submitted.
🇮🇱 Israeli container carrier ZIM reports $1.17 billion in net income. ZIM president and CEO praised the company’s progress, regardless of figures being significantly decreased compared with the same period in 2021. ZIM has moved over 2.55 million TEUs from January to September 2022 and now forecasts 2022 adjusted EBITDA of between $7.4 billion to $7.7 billion.
🗣️ The global trucking industry has the inability to attract new driving talent. Whether it’s being called a driver shortage or not, there aren’t enough people doing the work the trucking industry needs to be done. The United States has suggested a pilot program allowing 18-year-old drivers to operate across state borders as a possible solution. But the problem persists, across countries.
iLevel With You
More topics for the average American household to consider…
📦 Warehouse jobs are on the decline for the 4th consecutive month. Warehouse employment boomed during the pandemic, but slow labor growth now shows that the sector may have peaked. At a time of year when companies typically ramp up labor recruitment in preparation for the holidays, instead, companies are laying off employees and halting hiring. Retailers were in a mad scramble earlier this year to secure goods before the peak season and avoid supply chain snarls, but now have an excess of inventory sitting in their warehouses and hesitant buyers.
💊 Walmart developed a $3.1 Billion settlement plan after several state and local lawsuits over opioids. Walmart is just one of many retailers that supply powerful prescription opioids at its pharmacies across the U.S. - CVS Health and Walgreen Co. are in similar situations and proposing similar settlement agreements. New York’s attorney general, Letitia James, has reminded that the company would still have to comply with federal oversight measures, prevent fraudulent prescriptions and make sure to flag any suspicious ones.
💙 Amazon’s slice of 10,000 jobs from its workforce worries logistics sector experts. The massive e-tailer plans to cut 3% of its corporate and technology jobs workforce and less than 1% of Amazon’s global workforce of more than 1.5 million are troubling. Although the company has stated that the cuts are primarily related to its struggling Alexa device, it is also shrinking its retail division. Amazon has closed or delayed the opening of 60 warehouses during this same time and tossed out some of its offerings, such as free Whole Foods delivery options.
GET SMART
Ramp up that brain power for these advanced topics…
🔌 Real estate firm Prologis supports the construction of charging stations in California. Charging stations at logistics sites for 38 heavy trucks should assist the company’s clients to transition their commercial fleets to zero emissions transportation, according to Prologis. States like California and New York have long-term plans to require all new trucks sold in 2045 and beyond to use zero-emission power and toss out internal combustion engines. The ongoing Prologis Mobility platform consists of sustainability and electrification tools such as autonomous yard trucks, last-mile routing solutions, and fleet management services.
♻️ Consider your customers’ ESG requirements before upgrading your equipment. Gone are the days when a company merely compared price points when purchasing a new forklift. ESG strategy requirements are forcing companies to also place their focus on climate change in order to meet their customer’s ESG standards. This means that you must be willing and ready to discuss your carbon footprint, energy efficiency, waste, and recycling with your customers.
💬 Organizational velocity is acting with speed and agility. Although this is certainly a challenge, decision-making processes among companies move much faster once there is trust within a company. Even when a company’s track record is good, it’s important to lay the groundwork with digital tools and effectively-used data.
Ports 🚢
Ports post mixed results for October | DC Velocity
In this article, DC Velocity Staff writes about the varying levels of volume at the ports across the United States. The East Coast is up, the West Coast is down, and supply chain challenges continue to shift.
Industry Forecast 📊
Leading LTLs cutting headcount, terminals as retail demand slackens | Logistics Management
In this article, Logistics Management contributor John D. Schulz writes about the retrenching LTL industry.
Driver Issues 🚛
Performance-based driver incentives help fleet save $2M in fuel costs | Fleet Owner
In this article, Fleet Owner contributor Cristina Commendatore writes about the growing trend of programs designed to incentivize drivers to save money on fuel for bonuses.
Sales 🧾
Used Class 8 Prices Surprisingly Increase From September | TT News
TT News Senior Reporter Roger Gilroy writes about the average retail price for a used Class 8 in October climbing modestly.
Brokerage 📞
FMCSA issues guidance on the definition of ‘broker’ | LandLine Media
Landline contributor Tyson Fisher writes about The Federal Motor Carrier Safety Administration’s newest definition of broker.
Electric Vehicles 🔋
EV trucks and cars are green | Back The Truck Up
Back The Truck Up contributor Michael Vincent writes about the question - are EVs really the best option?
Ford says making its own parts for electric vehicles could offset job losses | CNBC
CNBC contributor Michael Wayland writes about Ford’s 40% reduction in labor to build electric vehicles.
Business Strategy 💡
The Four Pillars of B2B E-Commerce Fulfillment | Supply Chain Brain
In this article, Supply Chain Brain contributor Lynne Roof writes about complexities of B2B sales and logistics.
Fuel Tech ♻️
POLB’S Tomley addresses zero-emission truck & equipment challenges | AJOT
In this article, AJOT contributor Stas Margaronis writes about economist Jock O’Connell’s concerns over the California Air Resources Board's (CARB) burden on California ports with unreasonable transition standards to zero-emissions vehicles.
J.B. Hunt’s Ambitious Emission Reduction Goal | Trucking Info
Heavy Duty Trucking Staff dive into J.B. Hunt’s emission-reduction target by 2034 to the tune of 32%.
Safety 🦺
Nearly 5K CMVs placed out of service in the US during CVSA’s Brake Safety Week | The Trucker
The Trucker News Staff writes about CVSA’s Brake Safety Week and how many vehicles were placed out of service as a result.
Leadership 🏆
CEOs with CDLs: Hirschbach execs tout benefits of firsthand experience | Transport Dive
In this article, Transport Dive Associate Editor David Taube writes about several industry leaders who haul loads to help build rapport with drivers.
Repair & Maintenance 🧰
Most important KPIs for maintenance effectiveness | Fleet Maintenance
Fleet Maintenance contributor Jane Clark writes about the overwhelming amount of data in trucking.
U.S. Economy 🇺🇸
After a year-long dip, American consumer spending power will be back in 2023 | CNBC
CNBC contributor Tim Mullaney writes about the likely reversal of a year-long economic decline beginning right after Christmas.
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.