“Buying American” is tougher than some state governments thought
Good morning! It’s Giving Tuesday. In what way can you show generosity today?
The federal government cares about where steel, concrete, and asphalt are made, according to the recently passed infrastructure spending bill. The expansion of “Buy America” requirements is likely to cause delays as states, contractors, manufacturers, and suppliers try to comply with these new standards.
Check out today’s featured article from Reason to read about the growing discomfort among state governments who are attempting to comply with the “made in America” mandates that are included in the recently-passed bipartisan infrastructure bill. ☕️
Featured Article:
Biden's 'Buy American' Rules Are Hamstringing Infrastructure Investments | Reason
“State governments already want relief from the "Buy American" mandates included in the bipartisan infrastructure bill.”
Ports & Trade Issues 🚢
3rd times a charm? Port of NY & NJ overtakes San Pedro for 3rd consecutive month
San Pedro Bay, home of the Ports of Los Angeles and Long Beach, has long been the king of America’s oceanside ports. However, due to labor constraints and concerns over potential union disruptions, much of the cargo has been diverted to the East Coast. The Port of New York and New Jersey has absorbed much of this cargo and has now landed the title of “America’s busiest port” for three consecutive months. Boasting 792,548 TEUs in September, the port clocked in 8.9% more boxes in October 2022 over the pre-pandemic month of October 2019.
The California ports instead faced significant decreases in container volume, declining in October. They faced a 25% decline compared to the same month in 2021.
Safety Issues 🚛
Americans feel “unsafe” while driving near big rigs, according to study
Solera Holding LLC, a “vehicle lifecycle management” company, conducted a survey among 1,000 U.S. adults in August 2022. The results showed that 56% of Americans feel unsafe while driving near a commercial truck in the past year. It also notes that 64% say that they have witnessed unsafe driving behaviors in commercial truck drivers over that same period of time.
Michal Yariv, vice president and general manager of Strategic Initiatives at Solera, has stated that driver safety needs to be a top priority for fleet managers in order to keep both drivers in their company and drivers on the road safe.
Let’s Get Global 🌎
📲 Zhengzhou, China’s iPhone factory faced a violent workers’ revolt last week. Apple’s supply chain took another blow as protests broke out among newly-hired staff at the location. Claiming the management broke promises made to the workers, the staff clashed with officers in hazmat suits. Soon thereafter, those who protested were offered cash to quit their jobs and leave the premises. This, on top of the ongoing production shutdown in Foxconn’s campus in Zhengzhou, is crippling for Apple. Approximately 5% of iPhone 14 sales will be affected due to these issues.
🇲🇽 Migrating manufacturing to Mexico from China might pay off. It remains to be seen long-term, however, the near-shoring trend may reduce the amount of supply chain constraints that have stressed the industry over the past few years. China’s supply chain instability has proven to be risky business, as the country continues to roll out “extreme” Covid-19 measures almost three years later. Transportation costs are another cause for concern, as yo-yoing costs to transfer a cargo container across the Pacific have varied wildly over the past few years. Climbing to $20,000 in 2020, the price is now sitting at around $1,500.
🚧 Labor shortages are affecting customs and border agencies. This global problem is slowing down the already-slow process of passing goods and services across the world. Global Trade and Customs Leader at Ernst & Young, Dan Dreyfus, has stated that recruiting and retaining staff is a significant problem at this point, with almost 1,700 open positions currently sitting on the United States border patrol.
iLevel With You
More topics for the average American household to consider…
🛍️ Bloomington, Minnesota’s Mall of America won’t let Black Friday die. While the traditional Black Friday shopping of door-busting deals and crowds of holiday shoppers aren’t exactly the norm they once were, the nation’s largest shopping and entertainment center is keeping the tradition alive. The Mall of America boasts 5.6-million-square-foot of brick-and-mortar stores that opened Friday morning to much fanfare, despite freezing temperatures. Sales at the mall are up 9% from last year, adjusted for inflation.
🎁 Depending on where you live, there is a deadline for mailing your holiday presents. Whether celebrating Hanukkah, Kwanzaa, or Christmas - The U.S. Postal Service, FedEx, UPS, and Amazon have all laid out the dates customers should follow in order to ensure their gifts in the mail get to their location on time. While there is no “guarantee” to have packages arrive before December 25th - Christmas Day - if the outlines are followed, there should be little disruption.
⛴️ Got $7,000 to $25,000 to spare? Club aboard the Ritz-Carlton’s Evrima. This new 298-passenger watch is offering transatlantic sailing on a 12-day cruise, surrounded by a gorgeous infinity pool and Ritz-Carlton-level luxuries. The yacht, currently sailing from Lisbon to Barbados, is offering an oceanside experience for the wealthiest of the wealthy.
GET SMART
Ramp up that brain power for these advanced topics…
💻 E-Commerce logistics rely on inventory and distribution stability. When problems arise, direct-to-consumer logistics should be the new focus - that is, according to Mike McComb, senior vice president of global e-commerce for Pitney Bowes.
⚙️ North America prepares for 2023 stagnancy in the logistics market. Economic activity has been signaling a cool-down after truckload, less-than-truckload, and railroads experienced robust growth during the pandemic. According to Bloomberg Intelligence senior logistics analyst Lee Klaskow, equipment sales will likely be in a difficult spot during 2023 as the demand for tractors begins to slow.
🚚 Logistics startups are leveraging tech and e-commerce trends to grow. India's logistics players are at the top of the game as the democratic cross-border commerce and expand their markets through new technology practices. Shiprocket, iThink Logistics, Porter, FreightFox, FarEye, Cogoport, Rivigo, Shipsy, Delhivery, Blackbuck, and Freightwalla are just some of the Indian platforms making waves in the industry.
Leadership 🏆
Catastrophe In The Heart Of The Sea | G Captain
In this G Captain editorial, the writer discussed the Essex tale, In the Heart of the Sea - by Nathaniel Philbrick. The book tells the classic story of a three-year whaling voyage.
Key trends in US logistics according to 70 CXOs | McKinsey
McKinsey contributors Dilip Bhattacharjee and John Murnane and Maite Peña-Alcaraz write about the logistics sector’s leaders and what they expect in the industry’s trend over the coming months.
Vast vs specific | Seth’s Blog
In this article, Seth writes about the explanation of general concepts that leaders should attempt to give to their teams.
Hours Of Service ⏰
Electronic IDs an ‘unwarranted intrusion’ on truckers, OOIDA says | LandLine
In this article, contributor Mark Schremmer writes about OOIDA’s opposition to attempts to mandate electronic IDs on commercial motor vehicles.
Rail 🚂
With unions aligned, the timeline for rail strike and railroad emergency prep is now clear | CNBC
CNBC contributor Lori Ann LaRocco writes about the preparation taking place for a seven-day railroad strike, likely to cost the railroads $2 billion per day.
Trade & Border Issues 🗺️
In this article, Supply Chain Brain shares the latest updates regarding the Biden Administration ban of new telecommunications equipment from China’s Huawei Technologies and ZTE due to security threats for the nation.
US friendshoring supply chain policy 'divisive' - experts | Supply Chain Digital
In this article, Supply chain Digital contributor Sean Ashcroft writes about US plans to ‘friendshore’ goods rather than source them from Russia and China.
EU rushes to safeguard domestic firms from US climate law | AJOT
In this article, AJOT contributor Jorge Valero writes about the European Union’s resolve to combat the United States Inflation Reduction Act.
Business Industry 💡
A Better Way to Think About Integrated Planning | Logistics Viewpoints
Logistics Viewpoints contributor Steve Banker writes about resilience and panning for agility.
Air Cargo ✈️
Burrell eyes Colorado Springs as it brings regional airports into the cargo game | Loadstar
Americas correspondent Ian Putzger writes about the impending growth at the Colorado Springs Airport.
Industry Forecast 📊
Box rates could deteriorate to pre-Covid levels in December | Container News
Container News contributor Martina Li writes about the likelihood that the Shanghai Containerized Freight Index (SCFI) will fall to pre-pandemic levels next month after its pandemic highs.
ITCA roundup: Carbon taxes loom for container industry | Bulk Transporter
Bulk Transporter contributor Charles Wilson writes about supply chain challenges, trucking trends, rail labor, and ISO tank adoption in the U.S. discussion held at the annual International Tank Container Industry symposium.
French Shipping Giant Delivers Gloomy Outlook After Hefty Profit | Supply Chain Brain
Supply Chain Brain contributor Bloomberg writes about CMA CGM SA’s downcast outlook for the shipping industry in 2023.
US oil prices hit lowest level in nearly a year. Gas is down 6% in a month | CNN Business
CNN Business contributor Anna Cooban writes about oil prices dropping along with gasoline.
Repair & Maintenance 🧰
Collateral benefits of a well-maintained fleet | Fleet Maintenance
In the article, Fleet Maintenance Jane Clark writes about the benefits of maintaining assets to keep trucks on the road.
Artificial Intelligence 🤖
Who’s Who in Self-Driving Truck Development | TT News
TT News Managing Editor Seth Clevenger writes about the leading technology companies and startups actively working to being AI to trucking.
Electric Vehicles 🔋
Domino’s is building a fleet of GM Chevy Bolt EVs for the future of pizza delivery | CNBC
In this article, CNBC contributor Ian Thomas writes about Domino’s Pizza’s move to purchase 800 Chevy Bolt electric vehicles for pizza pie deliveries.
Covid-19 😷
Protests at China lockdowns spread, with supply chains looking vulnerable again | Loadstar
In this article, Loadstar Sam Whelan writes about Anti-lockdown protests and severe lockdown measures in China due to the Covid-19 resurgence.
Driver Issues 🚛
New app aims to help drivers with sleep apnea stay safe behind the wheel | Logistics Management
In the article, Logistics Management John Schulz writes about efforts to battle obstructive sleep apnea in drivers on the road.
Truckers striking around the world | Back The Truck Up
In this article, Back The Truck Up contributor Rooster writers about South Korea, Chile, Peru, and Brazil trucker protests.
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.