Could Jones Act waivers threaten domestic maritime supply chains?
Good morning! Happy Friday, readers. Can you believe that there are only 57 days until the end of the year? We feel like we’ve been on a roller coaster.
But in other news… The Jones Act waivers issued to Puerto Rico amid concerns of shortages after hurricanes tore through the region have some transportation leaders worried. Among the loudest dissenters, Sen. Roger Wicker (R-Miss.), a ranking member on the Commerce Committee on trucking policy, has determined the move by the White House to be “unlawful, unnecessary, and in direct contradiction to the government’s long-standing expressed interest in protecting American industry.”
With Jones Act waivers being issued - does this set a precedent? Is the domestic maritime supply chain now in jeopardy?
Check out today’s featured article from TT News to read about the growing concerns being voiced by congressional transportation leaders after the Biden Administration's temporary waiver of the Jones Act for hurricane-relief aid in Puerto Rico. ☕️
Featured Article:
Congressional Transportation Leaders Question Jones Act Waiver | TT News
“Congressional transportation leaders recently raised concerns over the Biden administration’s temporary waiver of the Jones Act during emergency relief efforts in Puerto Rico.”
Fuel Tech & Sustainability ♻️
Skepticism is growing over “zero-emissions” claims
There are many questions being posed for automakers rallying around zero-emissions vehicles. An electric vehicle’s battery does require a staggering amount of mined and processed materials, which has some pointing out that the emissions associated with manufacturing these batteries may be comparable, or even greater, than that associated with a typical combustion engine vehicle.
Some are asking policymakers to consider these factors when writing laws and reviewing compliance issues. According to data collected by Lucas W. Davis of Haas School of Business, University of California, Berkeley, CA, USA; Energy Institute at Haas, Berkeley, CA, USA; National Bureau of Economic Research, approximately 90% of electric vehicle owners are the second, third, or fourth EV already in that household.
Midterm Elections 🇺🇸
Misinformation and the midterm elections: What to expect | AP News
In this article, AP News contributor David Klepper writes and warns about misinformation regarding the upcoming midterm elections and what voters should watch for when researching.
Why Republicans are gaining with less than a week to go | CNN
In this article, CNN Politics contributor Harris Enter writes about the Republicans pulling ahead as midterm Election Day approaches.
Ports & Improvements 🚢
Louisiana International Terminal sees progress with sustainable infrastructure investments
The Port of New Orleans (Port NOLA), at the mouth of the Lower Mississippi River, will now be serving larger vessels after construction is completed in Violet, St. Bernard Township. The Louisiana International Terminal is slated to begin construction scheduled to begin in 2025 and is set to open in 2028.
The terminal is expected to be equipped with shore power, which eliminates up to 98% of ship-related emissions. A large electric fleet of equipment will operate at the terminal with Entergy Louisiana working directly with the terminal to meet its electrical needs. The National Environmental Policy Act (NEPA) requires the Port to go through the permitting process, with is currently in the beginning stages.
Let’s Get Global 🌎
Star Wars Dancing GIF By Film Riot via GIPHY
✈️ The U.S. & Korea have gained a Maersk air cargo route. Two new weekly flights have been scheduled between Greenville-Spartanburg Airport (GSP) in South Carolina and Incheon Airport (ICN), increasing the air market accessibility between Asia and the Southeast region of the United States. Amerijet International, a Miami, Florida-based cargo carrier will be operating the new route across the Pacific using Maersk’s new 767-300F aircraft. Currently, three of the aircraft are ready for operation.
♟️ The Great “Tech War” between the U.S. and China is underway. The United States Department of Commerce placed 31 Chinese tech companies on an “unverified list” in early October causing some commotion. Those thirty-one companies are in the middle of a sixty-day deadline for user checks to be performed and completed in order to avoid consequences. This list represents companies that the United States cannot confirm if U.S. user data and tech is being used for military purposes or not. This list - called the Entity List - means those in the U.S would need to acquire a special license to export their products.
🇳🇱 The Netherlands and the U.S. want to restrict China’s access to advanced chip technology machines. The two nations arranged a meeting between Senior US National Security Council official Tarun Chhabra and Under Secretary of Commerce for Industry and Security Alan Estevez, and they are scheduled to discuss the matter later this month. The topic will focus on China’s access to Veldhoven-based ASML’s sales of chip production machines. While it isn’t expected that an official agreement will result from this meeting, it is likely to further encourage the US-Dutch tech partnership.
iLevel With You
More topics for the average American household to consider…
🛍️ Macy’s is the retailer at the top as peak season approaches. While many of the retailer’s main competitors deal with a near-crippling inventory glut, Macy’s has taken a different approach to its inventory management strategy. The company’s Chief Supply Chain Officer Dennis Mullahy has spearheaded the deliberate management of inventory by focusing on data analytics when preparing for volatile demand challenges. With competitors Target and Kohl’s having overstocked inventories to the tune of 35%-48%, Macy’s 7% inventory increase is a notable comparison.
💸 The Federal Reserve raised rates again, but there may be some solace soon. After hiking its benchmark interest rate by three-quarters of a point for the fourth time in a row, The Federal Reserve suggested that the next time this happens, it will be more deliberate in its rate hikes instead of taking “the standard” amount. Now sitting at its highest level in fifteen years, this was the sixth interest rate hike in 2022 alone. Mortgages and business loans are now astronomically expensive, but the persistence of inflated prices is keeping the Fed on track. Many expect that the December rate hike will only be for half a point instead of three-fourths.
🤖 Senator Elizabeth Warren takes a stand against Big Tech. She made her case in a six-page letter to the United States’ top antitrust enforcers, including Lina Khan, chair of the Federal Trade Commission, and Jonathan Kanter, who heads up the antitrust division of the Justice Department. In the letter, Senator Warren urged the enforcers to keep their eye on the Big Tech market - made up of Google, Amazon, and Apple - as they continue their individual expansions into the automotive industry. She highlighted the possible risks of Big Tech having access to individual dashboards and vehicles.
GET SMART
Ramp up that brain power for these advanced topics…
💰Project44 just obtained $80 million more in backing. Less than a year after winning nearly half-a-billion dollars in venture capital gains, the logistics visibility platform has won big money from investors once again. The eight-year-old startup has said that this infusion of cash will be utilized to measure and mitigate supply chain emissions across the transportation industry. Generation Investment Management, Denmark’s A.P. Moller Holding, and CMA CGM were the major benefactors in the latest round of funding, according to Jett McCandless, the founder & CEO of project44. They will join previous investors such as Goldman Sachs Asset Management, TPG, Emergence Capital, Chicago Ventures, Sapphire, 8VC, Sozo Ventures, and Omidyar Technology Ventures.
🤝 Ryder System Inc. is on an acquisition roll. The logistics and transportation provider is merging with another company after a litany of partnerships this year - the newest merger being with Dotcom Distribution, a New Jersey-based provider of omnichannel fulfillment and distribution services. The terms of the deal between the companies have not been publically disclosed, but Dotcom’s leadership and operations teams are being absorbed into Ryder System. The new talent on Ryder’s roster includes founder and CEO Maria Haggerty and an additional 100 full-time employees.
🚛 Yellow Corp. runs the LTL market but is losing while expanding out west. Controlling slightly less than 10% of the market, Yellow posted third-quarter net income losses. Retailers have been pulling back after realizing they were facing inventory overages and freight demand has begun to slow… so the timing of Yellow’s expansion hasn’t been optimal. Darren Hawkins, chief executive officer of Yellow, has advised that the company is keeping a close eye on its purchase transportation expenses and recognized that its revenue is currently at the lowest its been in almost two years.
Fuel ⛽️
East Coast Gasoline Pinch Worsens With Inventories at Eight-Year Low | Supply Chain Brain
In this article, Supply Chain Brain contributor Bloomberg writes about the gasoline shortage stressing the United States’ east coast. The inventories are currently sitting at an 8-year low.
Network Association 🤝
Finding that M&A Sweet Spot for Your Supply Chain | MH&L News
In this article, MHL News contributor Magnus Meier writes about strategies to implement when looking at merger and acquisition activity in the industry.
Business Strategy 💡
Watch: Logistics: Back-Office, or on the Front Line? | Supply Chain Brain
In this article, Supply Chain Brain contributor Robert J. Bowman writes about the realities of logistics as its traditionally viewed in the supply chain.
5 Supply Chain Issues for Investors to Watch | Morning Star
In this article, Morningstar contributor Jamir Hossain writes about what to watch out for when investors are looking into supply chains on a global scale.
Safety 🦺
NTTC, ATA reaffirm support for e-hazmat papers | Fleet Owner
In the article, Fleet Owner contribution Jason McDaniel writes about the National Tank Truck Carriers and American Trucking Associations reaffirming support for electronic documentation pertaining to hazardous materials transportation.
Trade & Border Issues 🗺️
Matson Returns to Philly Shipyard for Three More Jones Act Containerships | G Captain
In this article, G Captain contributor Mike Schuler writes about the three Jones Act waiver containerships that will join Matson’s operations.
Drought continues to snarl Mississippi River transit | The Trucker
In this article, The Trucker contributor The Associated Press writes about the continued issues on the drought-stricken Mississippi River.
Tech 📟
In this article, Supply Chain Digest shares a graphic depicting the state of distribution technologies in 2022.
Logistics expert says workers should not fear supply chain digitalization | Freight Waves
In this article, Freight Waves contributor Mark Solomon writes about the exciting potential of the digitalization of global logistics and supply chain operations.
News Bag 🗞️
Supply Chain by the Numbers for Nov. 2, 2022 | Supply Chain Digest
In this article, Supply Chain Digest compiles the top stories in the transportation industry over the past week and summarizes them - including Foxconn plant shutdowns in China, restoring trends, and wage hikes growing.
Top Logistics Companies In USA | Yahoo! Finance
In this article, Yahoo! Finance contributor Omer Farooq writes about the top companies in logistics companies in the United States.
Compliance 📋
AB5: 6 Possible Strategies for Trucking | Trucking info
In this article, Trucking Info contributor Deborah Lockridge writes about possible strategies for trucking companies while dealing with AB5 compliance.
Maintenance & Repair 🧰
The connection between maintenance and fuel economy | Fleet Maintenance
In this article, Fleet Maintenance contributor Jane Clark writes about what fleets should consider to optimize their fuel economy and avoid cost repairs.
Rail 🚂
Rail Labor Secured a Good Deal. They Should Ratify | Real Clear Policy
In this article, Real Clear Policy contributor Jerry Glass writes about their opinion to ratify the already-proposed rail union agreement that is currently being hotly-debated.
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.