⛽️ Gas Relief in Georgia
Good morning! In the spirit of unity and progress, welcome to a special edition of "The Workday Dash" as we commemorate World Freedom Day on November 9th. On this historic day, we celebrate not only the fall of the Berlin Wall but also the triumph of human resilience and the enduring pursuit of freedom across the globe. In the world of supply chain and logistics, we draw inspiration from the lessons of unity and collaboration that led to this remarkable moment in history.
Join us as we explore how these principles continue to shape the ever-evolving landscape of global trade and logistics, fostering connections, and breaking down barriers in the pursuit of a more efficient and interconnected world. ❤️☮️
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Georgia Suspends State Taxes at Fuel Pumps Until Start of Special Session on November 29
Georgia Governor Brian Kemp has extended the suspension of state taxes on gasoline and diesel until November 29. The tax rollback, which is 31.2 cents per gallon for gasoline and 35 cents per gallon for diesel, was initially introduced as a response to high fuel prices. The governor can suspend tax collection during an emergency, with the requirement for state lawmakers' approval at their next meeting. The next session was originally scheduled for January 8, 2024, but it has been moved up to November 29, 2023, for a special session focused on redrawing congressional and state legislative districts.
Whether Kemp will request an extension of the tax break during this special session or declare another state of emergency afterward is unclear. The tax suspension, which began in September, has cost the state an estimated $1.7 billion in revenue between March 2022 and January 2023.
Check out today’s featured article from AP News to learn more about why Georgia has decided to extend its suspension of taxes on gas and diesel. Will this help the people who live in the state? When will they add the state taxes back onto the fuel?
Featured Article:
“People in Georgia will keep paying no state taxes on gasoline and diesel, at least until state lawmakers start a special legislative session.”
Ports & Money Matters
Feds Allocate $653 Million to Fund 41 Port Projects
The American Society of Civil Engineers (ASCE) rates the nation's ports with a B- grade, indicating they are currently adequate but in need of attention. Despite recent increases in port funding, there is still a substantial funding gap of over $12 billion for waterside infrastructure, mainly dredging, over the next decade. Additional funding is also required for landside port infrastructure. The Infrastructure Investment and Jobs Act (IIJA) allocates $17 billion, the largest-ever dedicated funding for ports and waterways, to address these needs and enhance supply chain reliability.
The funding will support various projects, including the expansion of the Port of Tacoma Husky Terminal, transportation system improvements in Long Beach, dock infrastructure replacement in Cold Bay, reconstruction of Berth PN-308 at Port Newark, and the sustainable expansion of the Velasco Terminal in Freeport, among others. Furthermore, $172.8 million is dedicated to 26 small ports that often struggle to maintain their infrastructure and compete for federal grants.
Magnet & EV
GM, Stellantis, and Others Invest $33 Million in Rare Earth-Free Magnet Company
GM and Stellantis are investing in Niron Magnetics, a Minnesota-based company creating cost-effective EV magnets with iron nitride instead of rare-earth metals. This investment supports their EV strategies amid slower EV sales growth. The partnership will aid GM in establishing a North American EV supply chain, ensuring U.S. federal tax credit eligibility. Niron Magnetics' innovative magnets have diverse applications in consumer electronics, industrial motors, wind turbines, and more.
Specific investment figures were undisclosed, but GM and Stellantis will collaborate with Niron Magnetics to develop EV magnet motor technology and scale up production to meet growing demand.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🛳 US Invests $553 Million in Adani's Sri Lanka Port to Counter China's Influence. The US will provide $553 million in financing for Sri Lanka's West Container Terminal, a project developed by Gautam Adani, as part of efforts to counter China's influence in South Asia. This investment aims to support Sri Lanka's economic growth and enhance regional economic integration with India, demonstrating the US commitment to Indo-Pacific development projects and countering China's Belt and Road Initiative. The International Development Finance Corp. (DFC) plays a significant role in this initiative.
🇨🇳 Shrinking Trade Between the U.S. and China: Winners and Losers in the Trade War. China faces challenges represented by the "5Ds": disease impact from COVID-19, demographic changes leading to an aging workforce, deflation due to insufficient demand, debt issues including Evergrande's troubles, and the decoupling trend benefiting countries like Mexico, Vietnam, and India. These factors collectively shape China's economic landscape and its impact on global trade dynamics.
iLevel With You 🏡
More topics for the average American household to consider…
⛽️ Pump Prices Continue Seasonal Decline as Fuel Costs Ease. Diesel prices in the US continued to fall for the second consecutive week, with the national average on-highway diesel fuel price now at $4.366, down 8 cents from the previous week. This decrease brings prices close to mid-August levels and is nearly a dollar less than November 2022 prices, although not as sharp a decline as the previous week's. The most significant price drop was in the Rocky Mountain states, where prices fell by 16.1 cents, followed by the Midwest and the West Coast (excluding California), which each saw a 10-cent reduction. Other regions experienced price cuts ranging from one to nine cents.
📉 US Employers Scale Back Hiring in October; Trucking Sector Loses 5,000 Jobs. In October, the US added 150,000 jobs, indicating a potential slowdown in the labor market, although it remains resilient despite high-interest rates impacting borrowing costs for both companies and consumers. However, the trucking industry saw a decline, shedding 5,000 jobs during the month, which marked the fifth such loss this year. This decline in trucking employment is attributed in part to a needed rebalancing after a surge of drivers entered the industry when spot market rates were high, contributing to an overall yearly decline in the industry.
🇺🇸 The U.S. Transportation Sector’s Unemployment Rate Sees a 1.1% Year-on-Year Increase. In October 2023, the US transportation sector had an unemployment rate of 4.8%, which increased by 1.1% compared to the previous year and was 2.1% higher than the pre-pandemic level in October 2019. The sector's unemployment peaked at 15.7% in May and July 2020, surpassing the overall US unemployment rate of 3.6% (not seasonally adjusted) and 3.9% (seasonally adjusted) in October. Despite some growth in the air and water transportation sectors, employment in warehousing and transportation decreased by 0.2% from September 2023 and by 0.8% compared to October 2022, with trucking, pipeline, warehousing, and transit/ground passenger transportation sectors experiencing declines.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🚛 Sensor-Driven Asset Intelligence: Revolutionizing the Management of Reusable Packaging Containers. A packaging supplier with over 350 million reusable packaging containers (RPCs) faced challenges in managing and monitoring these assets, including theft and underutilization. To address this, Roambee, a sensor technology provider, implemented a solution using GPS sensors on select RPC groups and artificial intelligence to predict the status of entire groups. This approach helped improve asset utilization, security, and productivity, allowing the supplier to transition to a predictive asset-routing model.
💰 Effective Strategies for Immediate Fleet Fuel Cost Reduction. In 2022, commercial vehicle operating costs exceeded $2 per mile, primarily due to high fuel expenses, which made up approximately 40% of a fleet's total operating budget. Factors contributing to rising fuel costs include supply and demand imbalances, distillate fuel demand fluctuations, transportation costs, regional operating expenses, and local competition. To mitigate these challenges, transportation businesses can implement strategies such as proactive vehicle maintenance, driver behavior coaching, fuel fraud detection, fleet cards for discounts, and equipment upgrades, including transitioning to electric vehicles or making adjustments, to reduce fuel consumption and overall costs.
📈 U.S. Container Imports Surge, Exceeding Pre-Pandemic Levels. In October 2023, U.S. container import volumes surged, surpassing October 2019 levels before the pandemic. Descartes Systems Group's November Global Shipping Report revealed a 4.7% increase in U.S. container import volumes from September, reaching 2,307,918 twenty-foot equivalent units (TEUs). This marked a surprising 3.9% rise compared to the previous October and an 11.4% increase from the pre-pandemic levels of October 2019. Import volumes have continued to rise, contrary to the pre-pandemic trend of declining import volumes in August, approaching levels that previously led to port congestion during the pandemic. Import volumes from China increased by 2.3% in October 2023 compared to September, although this still represented an 11.6% decrease from the peak in August 2022.
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.