🚗 Amazon Drives Change
Good morning! Welcome to the November 20th edition of "The Workday Dash," your go-to newsletter for all things supply chain and logistics. While we typically navigate the intricate world of cargo shipments, inventory management, and transportation networks, today we're embracing a touch of whimsy in honor of National Absurdity Day. Yes, you read that right – it's a day dedicated to all things nonsensical and wonderfully absurd!
So, grab your virtual snorkel for a deep dive into the zaniest stories and quirkiest anecdotes from the supply chain realm, where even the most challenging logistics puzzles can sometimes take delightfully surreal twists. 🤪🚚
———
Amazon's Entry into Direct Car Sales Is Set To Begin in 2024
Amazon is set to allow auto dealers, starting with Hyundai, to sell cars directly on its platform beginning in 2024. This move marks a shift from Amazon's previous involvement in the automotive industry, which focused on digital showrooms for vehicle research. Customers will now be able to purchase new cars online and choose between pickup or delivery through local dealerships, aiming to provide a seamless buying experience and boost dealers' exposure. Additionally, Hyundai plans to integrate Amazon's Alexa voice assistant into its vehicles by 2025 as part of the partnership.
The announcement caused stock price declines of around 5% to 6% for used car dealers like Carmax and Carvana, as well as major publicly traded new car dealers like Lithia Motors and AutoNation. It's essential to note that while Amazon facilitates car sales on its platform, dealerships will remain the primary sellers. Many state laws and complex relationships between automakers and dealerships make it challenging or illegal to bypass franchised dealerships and sell new vehicles directly to consumers, with exceptions such as Tesla and Rivian operating in states that permit such practices or through legal action in cases like Michigan.
Check out today’s featured article from CNBC to learn more about why Amazon decided to begin selling cars and why specifically Hyundai. Will more cars join in on selling on Amazon?
Featured Article:
Amazon will allow auto dealers to sell cars on its site, starting with Hyundai | CNBC
“Amazon next year will allow auto dealers to sell cars through its site, starting with Hyundai.”
Fuel Tech & EV
Coca-Cola Bottler Adds First Heavy-Duty EVs to California Trucking Fleet
Daimler Truck North America has supplied Reyes Coca-Cola Bottling with 20 battery-electric Freightliner eCascadia Class 8 tractors, marking the first introduction of zero-emission heavy-duty tractors into the bottling company's California fleet. These electric vehicles will be utilized in RCCB's delivery truck fleet in Downey, California, relying on 20 Detroit eFill commercial charging stations installed at the Downey facility.
RCCB will also utilize the Detroit Charger Management System, a software solution for efficient energy management. This transition is expected to save RCCB 40,000 gallons of diesel fuel annually and contribute to the company's goal of reducing carbon emissions by 30% by 2030.
UAW & Strikes
General Motors Strikes Historic Agreement with Unionized Workers
United Auto Workers union members have given their approval to a new contract with General Motors, making GM the first Detroit automaker to secure a ratified deal, potentially ending a contentious labor dispute and a series of strikes. The contract received just over 54% of votes in favor, which was a closer margin than expected, following recent victories on key demands that led to targeted walkouts against GM, Ford, and Stellantis. The new contracts include substantial pay raises, with increases and cost-of-living adjustments leading to a 33% wage gain, including immediate 11% raises for top assembly plant workers.
However, some veteran GM employees expressed dissatisfaction with the deal, particularly regarding the size of pay raises and pension increases for more experienced workers. While the agreement includes provisions for hiring temporary workers more quickly and providing top wages to workers in parts warehouses and component factories, some workers felt that the deal could have been more favorable.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
☔️ Tropical Rains Trigger Deadly Flash Flooding in Dominican Republic. Deadly flash flooding occurred in the Dominican Republic due to heavy rains from a tropical system, resulting in the collapse of a highway wall and widespread urban flooding, with at least 20 reported deaths since Friday. The capital city, Santo Domingo, experienced major flooding, and rescue efforts were underway to free potentially trapped individuals after a highway tunnel wall collapsed.
🇨🇳 Shifting Manufacturing Focus from China to India. A study by Boston Consulting Group (BCG) indicates that India has seen a significant increase in exports to the U.S., with a $23 billion surge representing a 44% rise from 2018 to 2022, as U.S. companies shift away from Chinese manufacturing. The study highlights that over 90% of North American manufacturers surveyed by BCG have relocated some production from China in the past five years due to various trade disruptions, and a similar number plan to do so in the next five years, with India, Mexico, and Southeast Asia emerging as promising manufacturing hubs due to competitive costs, ample labor resources, and growing capabilities.
iLevel With You 🏡
More topics for the average American household to consider…
📦 US Postal Service Announces Rate Hikes for 2024. The U.S. Postal Service (USPS) has revealed rate hikes for 2024, aligning with those previously announced by UPS and FedEx. USPS emphasizes its affordability compared to top carriers, highlighting upfront pricing without surcharges, and aims to expand its package business by over $1 billion in 2024, despite a net loss of $6.5 billion in fiscal year 2023.
😃 Positive Boss-Employee Relationships are the Key to Workplace Well-being and Success, Say Job Experts. Job recruitment experts, Vicki Salemi and Marissa Morrison, have reacted positively to a recent Pew Research Center poll that found a majority of workers have favorable relationships with their bosses. They emphasize the importance of strong boss-employee connections, as identified in the poll, including traits like leadership and openness to new ideas, in fostering a healthy workplace and contributing to job satisfaction, retention, and overall company success.
🚔 FMCSA Introduces New Rule to Combat Fraudulent Brokerage Operations. The Federal Motor Carrier Safety Administration (FMCSA) has unveiled a final rule aimed at curbing financial fraud in the broker industry, amending regulations related to financial responsibility requirements for property brokers and freight forwarders. Effective January 16, 2025, the rule introduces provisions covering immediate suspension, financial failure or insolvency, and enforcement authority. By January 15, 2026, it mandates compliance regarding assets readily available and eligible entities to provide trust funds for FMCSA Form BMC-85.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🚚 Houston Considers Restrictions on Cargo Truck Movements Within City Limits. Houston officials have introduced a truck route plan aimed at improving roadway safety and residents' quality of life. The plan would restrict commercial trucks to main roads, banning them from many smaller streets. This proposal is part of the Vision Zero initiative, which aims to eliminate traffic fatalities and severe injuries while increasing road safety. The plan designates specific routes for commercial vehicles over 26,000 pounds, establishes rules for immediate suspension of operating authority if financial security falls below $75,000, and defines the responsibilities of surety or trust providers in cases of financial failure or insolvency.
🤖 Estes Outlines Cyberattack Response Strategy. After detecting suspicious activity on its network, transportation, and logistics company Estes initially kept quiet publicly but later decided to embrace honesty as part of its response strategy. Frustrated by their initial approach, Estes leaders recognized that honesty aligned better with the company's values and culture. Publicly acknowledging the cyberattack opened up communication channels and accelerated the company's response efforts, fostering a collaborative environment.
📈 Rising First-Party Delivery Fraud Adds to Inflation Woes in the USA. Claiming false non-receipt of packages, a practice known as first-party delivery fraud is costing U.S. merchants and financial institutions over $100 billion annually and contributing to inflationary pressures as businesses raise prices to offset losses, according to a survey by digital identity verification firm Socure. This fraudulent activity occurs when individuals use their identities for dishonest financial gain, with 35% of the 1,000 surveyed Americans admitting to such actions. Gen Z consumers are the most likely to engage in first-party delivery fraud, with 52% saying they would do so without consequences, while 20% don't view it as ethically wrong. This trend poses challenges for businesses and consumers, ultimately leading to higher costs and fees.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 22, 2024, from iLevel Logistics Inc.