San Pedro Bay port backups are behind us, for now
Good morning! Happy Taco Tuesday 🌮 Let’s start the day off right:
“Don’t take too much advice. Most people who have a lot of advice to give — with a few exceptions — generalize whatever they did. Don’t over-analyze everything. I myself have been guilty of overthinking problems. Just build things and find out if they work.” — Ben Silbermann, founder of Pinterest
The Ports of Long Beach and Los Angeles can rejoice: Backups are currently a thing of the past. Compared to September 2021, both ports handled only 686,133 loaded import containers in September 2022 - an 18% decrease. This made it the lowest level since June 2020.
Check out today’s featured article from More Than Shipping to read about functionality at the Port of Los Angeles and Long Beach as import demand continues to fall. Will the queue of ships return or will the 2021/2022 peak be forever in the rearview mirror? ☕️
Featured Article:
Container Ship Backup Comes to an End in Long Beach | More Than Shipping
“As has been discussed on More Than Shipping, the backup of container ships off the Ports of Los Angeles and Long Beach, CA was one the biggest problems of U.S. supply chain congestion during the Covid-19 pandemic.”
Shortage & Driver Issues 🚛
2022 trucking labor shortage woes dampening, but likely to rear head in 2023
With the trucking sector now short about 78,000 drivers, this is an improvement of approximately 4% to the 80,000-person estimate implied in 2021. Over the next ten years, the industry will need to replace drivers leaving the industry to the tune of 1.2 million individuals. It’s expected that the driver shortage pitfalls will increase the need for an additional 160,000 drivers by the year 2031.
American Trucking Associations Chief Economist Bob Costello spoke on the final day of the ATA Management Conference & Exhibition at the San Diego Convention Center. He advised that more than 90% of carriers increased pay for drivers, but the vacancies still remain - the second-largest amount of vacancies on record. The average truckload driver takes home about $69,000 including benefits and bonuses. This is an 18% increase compared to 2019.
Midterm Elections 🇺🇸
Remember: Polls Can’t Always Detect Late Momentum | Real Clear Politics
In this article, Real Clear Politics Bill Scher writes about the reality of polls vs. predictions: they don’t always correlate. The final week of October may be a better predictor than early September, but it cannot account for final bursts of momentum prior to Election Day.
Company Culture & Unions 🪧
While congestion clears up, West Coast port shippers debate over how to navigate murky labor union talks
While west coast ports cool and congestion clears, the world’s largest container carriers are debating how to deal with the ongoing labor talks between the union dockworkers and the ports. With 22,000 labor contracts hanging in the balance, the world's largest carrier, Mediterranean Shipping Co. filed a motion with the National Labor Relations Board urging SSA Marine Inc. to assign tasks at the Port of Seattle’s Terminal 5 to the International Longshore and Warehouse Union.
California, Washington, and Oregon ports, represented by The ILWU and the Pacific Maritime Association, have been dealing with media and carriers alike voicing concerns about disruptions due to the ongoing negotiations. While all parties involved insist that they will avert disruptions, that is little solace. Previous labor contract negotiations in 2015 were only solved after President Barack Obama intervened.
Let’s Get Global 🌎
This Is Fine GIF via GIPHY
💧 Global supply chain issues have a new culprit: the Mississippi River. Though disrupted supply chains are nothing new, the main waterway from Minnesota to Louisiana has been the victim of record-low water levels due to very little rainfall. This drought situation has only increased as the situation persisted throughout October and the barges that usually depend on the Mississippi to transport key commodities such as petroleum, woof, coffee, corn, soybeans, iron, and chemicals are in danger of running around in the sand. Approximately 60% of all grain exported from the United States is moved through the Mississippi River, and with the Midwest’s harvest being lodged in the waterway… the rest of the world deals with another slow stream of grain as winter approaches.
🔥 Global unrest and rising costs will keep supply chain issues persistent for some time. According to the results of a recent SAP SE survey of senior business decision-makers, more than half (52%) believe that the supply chain is in desperate need of improvement. On top of that, 49% of those surveyed expect that supply chain issues will persist throughout the end of the year. Global political unrest, a lack of raw materials, and rising energy costs are even more prevalent issues in supply chain leaders’ minds than ongoing inflationary pressures. It’s expected that the world will be experiencing a very different holiday season than the notable boom of the winter of 2021.
🇨🇳 TuSimple CEO fired over improper relations with Chinese startup. The Chinese startup in question, Hydron, develops autonomous hydrogen-powered trucks. The situation is being handled within TuSimple, the San Diego-based startup after an internal investigation revealed former CEO Xiaodi Hou directed employees to spend paid hours working for Hydro and sharing confidential information after signing nondisclosure agreements with their employer. TuSimple’s Ersin Yumer, will serve as interim CEO and president while TuSimple’s board of directors makes an effort to appoint a permanent successor for Hou.
iLevel With You
More topics for the average American household to consider…
⛽️ Great news: the national diesel average has dropped 2.4 cents. While this is the second week in a row with a very incremental change, many say it’s still better than going up. The week of October 31st recorded a national diesel average of $5.317 per gallon according to the U.S. Energy Information Administration (EIA). Gasoline dropped by 2.7 cents for a national average of $3.742.
GET SMART
Ramp up that brain power for these advanced topics…
🤑 The new gold rush revolved around digital technologies. Supply chain leaders are spending furiously on adopting new programs and consultants, hoping to accelerate operational output. Digital transformation comes in many flavors, but traditionally, only approximately 3% of companies invest in improving their automation and robotics systems. According to studies, these types of investments have the highest success rate.
🎯 There are a few small changes you can make without breaking the bank to improve profits. For starters, your website’s product pages could use some love; make sure that the web pages are clear, concise, and engaging. Pretend you’re the customer when reviewing them and make constructive criticisms accordingly. Your customer service processes should also be condensed and reviewed. Manpower is often wasted across the board between there are “too many people in the kitchen”. If your company is able to define processes clearly, your employees will be able to measure when they are fulfilling their roles.
⏰ Manufacturing leads to lots of waste: let’s change that. Lean expert Art Byrne, CEO of The Wiremold Company, and author of The Lean Turnaround and The Lean Turnaround Action Guide is making the argument that there are many strategic benefits of setup reduction. By observing the setup and charting the operator’s moves through processes, supply chain leaders will likely easily spot where waste is coming from. Something as simple as placing tools at the point of use or eliminating extra bolts can save both time and resources.
Peak Season 🎄
FedEx preps for moderate peak season with space to add new customers | Supply Chain Dive
In this article, Supply Chain Dive reporter Max Garland writes about FedEx’s preparation for peak season and the business strategy the company plans to implement to add more customers to its network.
DAT’s September Truckload Volume Index trends down ahead of holiday season | Logistics Management
In this article, Logistics Management’s Group News Editor, Jeff Herman, writes about the rate and volume declines in the September edition of Dat Freight and Analytics’ DAT Truckload Volume Index (TVI).
Electric Vehicles 🔋
SSA Marine converts diesel-powered cranes to electric at the Port of Long Beach | AJOT
In this article, AJOT writes about SSA Marine’s conversion of its diesel-operated cranes into state-of-the-art electric cranes at the Port of Long Beach. This move is part of a multi-million dollar project partially funded by an almost $10 million California Energy Commission grant.
Compliance 📋
Industry Group Calls on Congress to Close Loophole in Offshore Energy Labor Law | G Captain
G Captain contributor Mike Schuler writes about The Offshore Marine Service Association, representing 120-member companies and 12,000 American workers, lobbying Congress to pass the American Offshore Worker Fairness Act (AOWFA) bill.
Regulations ⚖️
North Carolina Adopts Advanced Clean Trucks Rule | Trucking Info
In this article, Trucking Info Staff writes about North Carolina Governor Roy Cooper’s decision to sign in an executive order to initiative widespread electrification of vehicles throughout the state.
Leadership 🏆
BendPak founder reflects on career lifting up the vehicle repair industry | Fleet Maintenance
In the article, Fleet Maintenance contributor John Hitch writes about Don Henthorn, founder of BendPak, and his successes as a world-class shop equipment manufacturer.
Sales 🧾
Weekly Transportation Update: GDP Rises as Goods Transport Falls | FTR - Transportation Intelligence
In this article, FTR Transportation Intelligence shares about the Q3 GDP increases but the good transport economy declines.
Fuel Tech ♻️
Political spat over climate risks in investments gets hotter | AP News
In this article, AP News contributors Steve Karnowski and Stanley Chow write about the political back-and-forth between parties regarding investments in green energy initiatives.
Safety 🦺
ContainerPort Group launches division to rescue “distressed” import containers | DC Velocity
In this article, DC Velocity contributor Ben Arnes writes about the newest division launched by the intermodal drayage and logistics provider ContainerPort Group (CPG) - the Expedited Services team. This team will move goods that are stuck in clogged yards.
Money Matters 💰
5 Ways Your Commercial Fleet Can Save on Costs | All Things Supply Chain
In this article, All Things Supply Chain’s guest blogger writes about the ways that a commercial fleet can save big money on their operational costs.
Business Strategy 💡
Digital decision making changing face of supply chain | Supply Chain Digital
In this article, Supply Chain Digital contributor Sean Ashcroft writes about how hybrid and remote jobs have transformed supply chain roles.
How KPIs fuel shop efficiency | Fleet Owner
In this article, Fleet Owner Seth Skydel writes about how repair shops should create KPIs to monitor and improve their operations.
The opportunity to be wrong | Seth’s Blog
In this article, Seth writes about how management should advise employees to modify operations and/or behavior.
Ports 🚢
Port of New York and Jersey surpasses San Pedro Bay powerhouse ports | Container News
In this article, Container News shares an article about the Port of New York and New Jersey overtaking the Ports of Long Beach and Los Angeles.
Driver Issues 🚛
Balance dash cams and privacy rights | Truck News
In this article, Truck News contributor Jane Huang writes about the question. of drivers having their privacy violated by fleet-implemented dash cams.
Truckers Express Concern as California Lawmakers Seek to Phase Out Diesel Big Rigs | TT News
In this article, TT News Senior Reporter Eric Miller writes about California’s lingering laws to phase out all diesel trucks and how truckers in the state are feeling about it.
Diesel disaster: Truckers ‘working for peanuts’ amid surging fuel prices | Fox Business
In this article, Fox Business contributor Jon Michael Raasch writes about the growing diesel shortage and the worries of drivers in effected areas.
Hours of Service ⏰
OOIDA makes pitch for more hours-of-service flexibility | Land Line Media
Land Line Media contributor Mark Schremmer writes about the OOIDA’s call for increased flexibility in the hours-of-service regulations.
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.