Railroads and union debate has an early December deadline
Good morning! It’s National Espresso Day! ☕️
…and we might need some extra of it as we prepare for Thanksgiving tomorrow…
In September, the railroads narrowly avoided a rail strike at the final hour, when the Biden Administration’s Emergency mediation board stepped in with a tentative proposal. Well, the sand in the hourglass is running out as the unions vote upon the proposed labor contracts before the early December deadline. If the railroads and all of their unions can’t come to an agreement… the result will likely paralyze America’s rail traffic.
Check out today’s featured article from AP News to read about the havoc a national rail strike could reap upon consumers across the country… and how likely it may happen. ☕️
Featured Article:
Consumers could pay price if railroads, unions can’t agree | AP News
“Consumers could see higher gas prices and shortages of some of their favorite groceries during the winter holiday season if railroads and all of their unions can’t agree on new contracts by an early-December deadline that had already been pushed back.”
Fuel & Shortages ⛽️
Trucking industry suffering with diesel price increases and labor shortage
Eventually, prices are passed to the consumers. Across the country, trucking companies and individual drivers have been putting up with inflated diesel prices since the hot summer months with no sign of relief. On average, a gallon of diesel fuel is $5.33 when a year ago it sat at $3.65. There is also a supply-demand issue when there is a lack of new drivers joining the fray.
This all falls on the heels of the U.S. Energy Information Energy Agency reporting that October’s fuel supply levels were the lowest they have been since 2008. If these problems in the trucking industry remain overlooked, the price of goods in the stores will begin to rise.
Law & Compliance ⚖️
Amazon ordered by federal judge to stop retailing against activist employees
The National Labor Relations Board sued Amazon in March 2022 over an employee who was fired while being involved in the unionization of the company’s Staten Island warehouse. U.S. District Judge Diane Gujarati has ruled that there was a “reasonable cause” that the fired employee, Gerald Bryson, was unfairly treated due to his workplace activism. Judge Gujarati then approved a cease-and-desist order to be issued to Amazon in regard to retaliation against its employees involved in organizing efforts.
Despite her judgment, Judge Gujarati denied the reinstatement of Bryson to employment. Bryson was fired before the union was formed and the warehouse ultimately pulled off the first-ever Amazon union win at the Staten Island location, therefore making Bryson’s firing inconsequential to the unionization efforts.
Let’s Get Global 🌎
Glow Up Jeff Goldblum GIF By Team Coco via GIPHY
🇲🇽 North America’s restoring trend is pulling operations out of China and investing in Mexico. But is it a move that is going to pay off? Mexico incurred an investment of $17.2 billion since January of this year, boasting a growth of 25.5% in comparison to the same time frame in 2021. Pulling supply chain activities away from China is a move based on the insecurity of the nation’s supply chain stability. The risk of transportation costs is a major function of hesitancy, with the transfer of ocean freight containers from Shanghai to Los Angeles yo-yoing since the early days of the pandemic. While outsourcing to China, companies also must consider rising labor costs, political tensions, and intellectual property issues in the form of security.
🇪🇺 Europe and the U.S. are rekindling their relationship. The trade between the old allies is strengthening once again as tied to Russia and China force the two to rely on one another. East Coast ports have had a major upswing as the West Coast ports begin to hiccup as trade with Asia declines. Labor tensions at West Coast ports are also a point of worry, with much of the cargo being diverted instead to the East Coast.
🇧🇷 Brazilian orange juice is the new gold after Hurricane Ian. The citrus groves of Florida were devastated by the storm and disease that ran rampant through the Sunshine State, leaving this year’s crop the lowest in 79 years. There is a global deficit for juice supplies and it’s driving up the cost of the beverage for consumers. The U.S. and Europe can both anticipate the price of orange juice rising as much as 30% by the beginning of 2023. The Department of Agriculture has stated that the stockpiles of fruit juice are sitting at their lowest in 45 years.
iLevel With You
More topics for the average American household to consider…
🎄 Small businesses are anticipating increasing prices this peak season. Due to inflation, supply chain challenges are a top priority to deal with for these mom-and-pop shops. DHL Express U.S. conducted a survey that asked 2,000 individuals what they were most concerned with as the peak season approaches. The good news is - 45% said their businesses will benefit from global expansion next year and 30% said they expect the Inflation Reduction Act to be beneficial.
🧯 US DOT wants to reduce highway fatalities. With the trucking industry as the star of the show, U.S. transportation secretary, Pete Buttigieg, participated in World Day of Remembrance for Road Traffic Victims (WDR). He highlighted the importance of reducing highway deaths, instead of just mourning the victims. The NHTSA reports that fatalities involving large semi trucks jumped to 5,600 deaths in 2021, which was an increase from 2020’s total of 4,965.
☀️ The blame for climate change. China tops the list by far, with the U.S. coming in second. The United States is historically the largest emitter and sits responsible for 20% of all emissions - however, its fossil fuels have helped it grow into the nation it is today. While countries like the United States and The European Union do the heavy lifting to transform into low-to-zero emissions spaces, the world cannot solve this issue without the participation of China and India.
GET SMART
Ramp up that brain power for these advanced topics…
🥤 PepsiCo's Chief Sustainability Officer is focusing on sustainability strategy. The CSO was interviewed by Steve Banker of Logistics Viewpoints to discuss the company’s environmental, social, and governance (ESG) program. PepsiCo, the second-largest food and beverage company in the world, has a broad sustainability strategy. Its enormous and complex supply chain boasts 294 manufacturing facilities and its products are then sold in over 200 markets and territories.
🚢 Container ship rates are still dropping. One year ago, the cost to ship a 40-foot container across the Pacific ran about $20,000. Last week, the price was $1,941 per container. That’s down 90% since last year and 20% down just this month. China’s shipments to Europe aren’t faring much better: clocking in at just around $1,800 per container. The plummeting rates signal a very slow “peak season” as the global economy slows.
🚂 Cincinnati Southern Railway is being absorbed by Norfolk Southern. The CSR currently runs from Cincinnati, Ohio to Chattanooga, Tennessee for 337 miles. With this deal, Norfolk Southern will acquire 38,445 m² of land. The reason for the partnership? The CSR links the Midwest and the Southeast and is critical to providing goods to half the American population, according to Norfolk Southern president and CEO Alan H. Shaw.
Leadership 🏆
Peter Georgiopoulos, ‘An Inspiration to Many’, Looks to the Future | G Captain
G Captain contributor Mike Schuler writes about Marine Money’s “Ship Finance Forum” in New York and the speakers who attended and shared wisdom with the attendees.
Brokerage 📞
FMCSA Issues Guidance on Brokerage Terminology | TT News
TT News Senior Reporter Eric Miller writes about the Federal Motor Carrier Safety Administration’s newest interim guidance on the definitions of brokers.
Covid-19 😷
China anti-virus curbs spur fears of global economic impact | AP News
In this article, AP News contributor Joe McDonald writes about China’s “zero-COVID” strategy proposed easement…admits a new wave of outbreaks.
Repair & Maintenance 🧰
Inflationary pressure: P.S.I. touts ATIS at fleet technology event | Fleet Maintenance
In this article, Fleet Maintenance contributor Jason McDaniel writes about automatic tire inflation to improve fleet safety.
Trade & Border Issues 🗺️
Logistics news round-up from Europe, US & Asia | Supply Chain Digital
In this article, Supply Chain Digital contributor Sean Ashcroft writes about the 2022 Green Technology in Freight report.
Compliance 📋
Tolling is Getting Creative... and Costly for Trucking [Commentary] | Trucking Info
Trucking info contributor David Cullen writes about predatory tolling schemes that are targeting the trucking industry.
Hours of Service ⏰
Industry reacts to proposed ELD revisions | Fleet Owner
In this article, Fleet Owner contributor Scott Keith writes about the ELD mandate proposed by the Federal Motor Carrier Safety Administration.
Rail 🚂
If rail strike begins, ‘I think every union’ will honor picket line, says BLET president | CNBC
In this article, CNBC contributor Lori Ann LaRocco writes about the likely scenario of all rail unions honoring the picket line if an agreement isn’t reached by December… despite a few of them voting to ratify.
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.