✈️ Overstuffed FedEx Pilots
Good morning! In celebration of National S.T.E.M. Day, we embark on a journey through the intricate web of global supply chains and the dynamic world of logistics in this edition of "The Workday Dash." Just as science, technology, engineering, and mathematics form the foundation of innovation, precision, and efficiency in these fields, we delve into the latest advancements and trends that are shaping the way goods are sourced, transported, and delivered around the world.
Welcome to a world where seamless coordination and strategic decision-making ensure that the workday dash never misses a beat! 🧠🚛
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Overstaffed FedEx Offers Dissatisfied Pilots Opportunity to Join American Airlines
FedEx Express is offering its discontented pilots the opportunity to join American Airlines subsidiary PSA Airlines, citing overstaffing in their flight operations. The move comes as air cargo demand remains sluggish for FedEx, while passenger airlines are actively recruiting pilots. Pat DiMento, VP of flight operations and training at FedEx noted that this program could help alleviate their overstaffing concerns and address the growing demand for passenger carrier pilots.
The initiative, which runs until December 1, offers a $250,000 signing bonus along with guaranteed progression to American Airlines. FedEx Express has been taking measures to adjust to reduced demand and lower revenue, including trimming flights and aligning staffing with demand.
Check out today’s featured article from Supply Chain Dive to learn more about why FedEx is telling its pilots to go to American Airlines if they are unhappy. Will this cause FedEx to be less overstaffed?
Stellantis & EV
Stellantis Ram Brand Introduces Onboard Charger as Solution to Slowing Electric Vehicle Sales Growth
Stellantis' Ram brand aims to address range anxiety concerns for electric vehicle (EV) buyers with its new offering, the Ramcharger. This pickup truck combines a 145-mile electric range with a 3.6-liter V6 gas-powered generator that can recharge the battery while on the move. The Ramcharger is designed to appeal to truck buyers who need both range and towing capacity, with the ability to tow up to 14,000 pounds. The vehicle can also charge at home or at fast-charging stations, adding 50 miles of range in about 10 minutes.
Stellantis plans to introduce this powertrain in other vehicles, including the Jeep Wrangler in 2028 and the Jeep Wagoneer and Grand Wagoneer in 2025, according to a tentative contract agreement with the United Auto Workers. While the Ramcharger offers a unique solution, its success will depend on pricing and consumer demand as EV sales growth begins to slow in the U.S.
Cruise & Autonomous
Cruise Admits Robotaxis Require Human Assistance Every Four to Five Miles
Kyle Vogt, CEO and founder of Cruise, responded to allegations that Cruise's robotaxis are not truly self-driving and require frequent human assistance. Vogt confirmed that Cruise has a remote assistance team that assists the vehicles 2-4% of the time on average in complex urban environments. He explained that many of these interventions are resolved by the autonomous vehicle (AV) itself, initiated proactively by the AV before it is certain it will need help. These interventions include quick confirmation requests and longer sessions that involve guiding the AV through tricky situations. According to Cruise, remote assistance is active about 2-4% of the time when the AV is on the road.
Cruise recently grounded its driverless operations following a collision that injured a pedestrian in San Francisco. The company's disclosures about the incident led to regulatory action in California, where Cruise's permits to operate driverless vehicles were revoked unless a human driver was aboard. The company is now facing questions about the role of human intervention in its autonomous operations. Cruise has initiated third-party reviews of the incident and is working with the National Highway Traffic Safety Administration (NHTSA) on its investigation.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🩴 Crocs Implements Inventory Control Measures, Including in 'Gray Market' Channels. Crocs is implementing inventory control measures to manage prices, margins, and its brand integrity. The company has successfully reduced its inventories by 24% year over year in the latest quarter, with a 17% decrease since the end of 2022. While Crocs has made progress in optimizing its inventory, challenges persist, particularly in dealing with carryover inventory in legacy customers. Additionally, the company is focused on curbing the sale of unauthorized inventory in the gray market, a crucial step to maintaining control over prices and product distribution.
🛢 A Record Number of Supertankers Set to Collect U.S. Oil. A record number of supertankers, totaling 48 vessels, are en route to the United States over the next three months, marking the highest number in at least six years. This surge in tanker traffic reflects the evolving energy landscape, with the U.S. increasing its crude oil production and exports. U.S. crude exports have seen a significant uptick this year, partly due to domestic producers sending low-sulfur "light-sweet" oil abroad, while domestic refiners prefer heavier grades. This trend aligns with the lifting of decades-old restrictions on U.S. crude exports in 2015. Additionally, OPEC+ supply curbs are prompting tankers to seek opportunities in the Atlantic during the winter season.
🌎 NY Fed Gauge Reveals Record Low Global Supply-Chain Pressure. Global logistics challenges have reached their lowest point in 26 years, driven by continued declines in transportation costs, as indicated by the Federal Reserve Bank of New York's Global Supply Chain Pressure Index, which registered at minus 1.74 in October, its lowest level since records began in 1997. The index, which compiles data from 27 variables covering aspects such as cross-border transportation expenses and manufacturing data at country levels, has seen nine consecutive months of negative readings.
iLevel With You 🏡
More topics for the average American household to consider…
💰 WeWork Files for Bankruptcy. WeWork, once valued at nearly $50 billion, has filed for Chapter 11 bankruptcy protection, marking a significant downfall for the office-sharing company. The move comes after years of financial turbulence and a failed attempt to go public in 2019 when investors were concerned about high debt levels and massive losses. WeWork, founded in 2010, gained attention for its innovative approach to flexible workspaces and secured partnerships with major corporations.
💵 Is Nikola Banking Too Heavily on California for Its Future Success? Nikola Corp. is facing a financial challenge as it shoulders the $61.8 million cost of repairing its fire-prone battery electric trucks, but the company sees potential salvation in California's generous incentives for electric trucks. While the company's ability to survive is being tested by the repair costs, it believes that California's incentives and regulations promoting zero-emission trucking could provide a path to revenue generation. However, there are concerns about whether the California market is large enough to support Nikola's overhead.
🛍 The holiday spending outlook appears lackluster for numerous retailers. As the holiday shopping season kicks off, retailers are showing caution in placing big orders due to concerns about weak consumer spending, according to the CNBC Supply Chain Survey. The national inventory-to-sales ratio may appear to have returned to pre-pandemic levels, but it's influenced by the largest retailers. Smaller to medium-sized retailers are still destocking. The survey also reveals that most logistics firms believe the products being moved into stores this holiday season are more promotional and lower-cost items rather than higher-priced items. The outlook for the first half of 2024 is uncertain, with some expecting a decrease in freight volumes. However, there is hope for a rebound in the second half of the year.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🇺🇸 US Firms Bracing for Scope 3 Regulatory Shock. The evolving Scope 3 regulatory landscape in the US is poised to present a significant challenge for organizations currently unregulated on greenhouse gas emissions reporting. Bridget McCormick, Principal Consultant at Proxima, notes that the absence of firm nationwide laws mandating reporting and emissions targets has allowed organizations to claim they are improving sustainability without being held accountable. However, California's forthcoming Climate Accountability Act, effective in 2026, will require companies in the state to establish clear cross-company accountability roles for climate reporting, with a focus on Scope 3 reporting, responsible for a substantial portion of a company's carbon footprint.
🚛 Aftermarket Parts Costs Show Signs of Stabilization. According to the Decisiv Vehicle Maintenance Reporting Standards System Service Data Quarterly Report, aftermarket parts prices in the United States have decreased in the second quarter of 2023 from the first quarter. This is seen as a positive development after a period of rising prices and limited availability. The report reveals that combined parts and labor costs across 25 VMRS categories were 1.3% lower in the second quarter than in the first, following moderate increases in the previous quarters. Parts costs fell by 1.6% in the second quarter, while labor costs fell by 0.8%, marking the first decrease in four quarters. However, year-over-year, combined parts and labor costs rose by 5.57%, significantly less than the 15% increase observed the previous year.
🔋 Penske, Pitt Ohio, and Ryder Place Orders for Freightliner Medium-Duty EV Trucks. Daimler has launched production of its eM2 medium-duty battery-electric trucks, marking a significant step toward its goal of offering a zero-emissions product line. These electric trucks are built on the Freightliner M2 106 Plus platform and feature Daimler's proprietary Detroit ePowertrain. The class 6 single-motor model offers up to 190 continuous horsepower, a 194 kWh battery, and a typical range of 180 miles on a single charge. The class 7 dual-motor variant offers a typical range of 250 miles per charge. Daimler has already included these electric trucks in a customer experience fleet to gather feedback on their performance and suitability for various applications.
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.