Rail union strike risk renewed with rejection of White House recommended deal
Good morning! Happy Farmers Day. Let’s get this bread. 🍞
We were warned that this fight wasn’t over.
After pushing it to the eleventh hour last month, a disastrous rail worker strike was tentatively avoided with federal intervention. However, the Biden administration-proposed agreement between the rail companies and the worker unions has been officially rejected via a vote of almost 12,000 union members. With 6,600 members of the Brotherhood of Maintenance of Way Employees against and 5,100 for the agreement, the division is clear. There are still lasting issues of unsafe working conditions and sick-leave policies causing discontent among the union members, and the threat of a nationwide strike has been renewed.
Check out today’s featured article from AJOT to read about the contentious railroad union situation and whether this issue could escalate into what so many have feared. ☕️
Featured Article:
Rail union rejects Biden-backed deal, reviving strike risk | AJOT
“A majority of almost 12,000 unionized railroad workers voted to reject a tentative labor agreement brokered in part last month by President Joe Biden, the first dismissal by members of a dozen labor groups that must accept the deal or risk a strike.”
Driver Issues & American Politics 🇺🇸
Trucking Carriers Association lobbies Congress on key supply chain issues and trucking concerns
In September, Congress met with more than 80 members of the Truckload Carriers Association to discuss the interest group’s pressing issues in regard to supply chain issues in the trucking sector. Jim Ward, the TCS’s president explains that parking is of peak concern for truckers across the country. California’s controversial AB5 legislation is also causing concern.
The FMSCA is also currently reviewing the speed limiter mandate, which the TCA claims should be a challenging review.
A few members from Canada also partook in the TCA push by meeting with leaders at the country’s embassy in unison.
Midterm Elections 🇺🇸
The central tension driving the 2022 election | CNN
CNN contributor Ronald Brownstein writes about the centralizing issue that is being poised during the midterm elections: do you want to keep your money or do you want to keep your rights?
Conservative PACs inject millions into local school races | AP News
AP News contributors Collin Binkley and Julie Carr Smyth write about the growing number of conservative politicians looking toward local school boards to gain traction in their area.
GOP makes push to weaken Democrats’ grip on Texas border | AP News
AP News contributors Paul J. Weber and Will Weissert write about Republicans’ push to shift votes in the Lone State red after Democrats have made a major effort to flip the state.
Insurance & Safety 🦺
Insurance groups warn that self-driving cars can lead to dangerous situations
The Insurance Institute for Highway Safety (IIHS) is warning drivers that self-driving vehicles still require their attention. According to statistics collected by the organization, 53% of General Motors’ Super Cruise users, 42% of Tesla Autopilot users, and 12% of Nissan’s ProPilot Assist users have no issue with taking their eyes off of the road while behind the wheel.
However, technology has limits. Early adopters have gotten comfortable, says IIHS President David Harkey. In the end, the driver is still responsible for operating the vehicle in a safe manner and being attentive to their surroundings. Staying vigilant has been a safety concern for those using self-driving systems in vehicles as small as sedans and as large as semi-trucks.
Currently, the National Highway Traffic Safety Administration is investigating Tesla’s driver-assist features for braking without warning.
Let’s Get Global 🌎
🚢 They’ve had their heyday, but it’s time to close the chapter on sky-high shipping rates. The steep decline of ocean container shipping rates has escalated over the past week, dropping 20% from the week previous. The spot rate to ship a 40-foot container across the Pacific Ocean from China to the United States West Coast is now $2,361. Approximately one year ago, the premium rate for the same move was about $20,000. Much like lifeboats on the Titanic, ships are departing ports in Asia only half-full, and carriers are likely to cancel even more voyages.
♻️ ESG - it’s in the game. ESG standard for Environmental, Social, and Governance. These are the pillars of standards that brands are looking to meet and the stakes are growing higher. Millennials and Gen Z consumers in particular will pick and choose which companies they associate with based on the measure of corporate social responsibility the company is willing to accept and modify. But it isn’t just good marketing; it’s good for sales, as well. According to a Forrester CSR study, approximately 69% of respondents have increased their sales as a result of adopting CSR initiatives with ESG goals.
🌐 The World Economy is looking at a twisted road ahead. The International Monetary Fund gave a bleak outlook of 2023’s global economy, citing Russia’s continued invasion of Ukraine and sky-high interest rates as major threats that are only the precursor of a worldwide recession. IMF chief economist Pierre-Olivier Gourinchas says the “worst is yet to come” and that the stimulus provided by the Federal Reserve and other central banks after Covid-19 took the world by storm will now result in consequences.
iLevel With You
More topics for the average American household to consider…
🧴 To infinity… Bed, Bath, & Beyond! Due to financial woes plaguing Bed Bath & Beyond over the past several years, a major supplier for the retailer, Helen of Troy, had pulled back its business concentration with the company. Helen of Troy, a seller of popular brands such as Hydro Flask and OXO, is now voicing public support for the retailer after Bed Bath & Beyond’s redirection of business strategy and efforts to stabilize finances. In a Q2 earnings call last week, Helen of Troy’s CEO Julien Mininberg cites the importance of Bed Bath & Beyond’s decision to drive traffic and sales toward leading brands.
⚓️ Backed-up in the Mississippi. Due to a lack of rainfall and dry conditions, the Mississippi River encountered quite a logjam last week as thousands of boats and barges tried to avoid running aground. Last week, almost 2,000 were stalled - this week only 22 vessels and 392 barges are waiting to go southbound. It’s an improvement for certain, but with more than 90% of the United State’s agricultural exports being produced in the Mississippi basin, the low water levels are still of major concern.
🤖 Looks like Lyft got ahead of itself. It wasn’t too long ago with Lyft President, John Zimmer, was touting the idea that the majority of rides provided by the company would be with self-driving vehicles by the year 2021. Well, 2021 has come and gone, and this has not yet come to fruition. There are some self-driving vehicles in its network in locations like Austin, Texas, and Las Vegas, Nevada. Zimmer claims that those estimated may have been “off”, but he still envisions that future and revolutionary change.
GET SMART
Ramp up that brain power for these advanced topics…
📟 The chips are on the table. The largest semiconductor fabrication plant in the United States will be coming to town in about 20 years, thanks to the chipmaker Micron Technology. Micron is investing up to $100 billion over the next two decades to get the facility up and running in Clay, New York. The construction will be underway in 2024 and by 2030 the company will complete its initial $20 billion investment. It’s expected that this huge investment will pay off, as demand for semiconductor chips will grow over the second half of the decade.
🏢 All hands on deck! Warehouses are bustling places with lots of people running around and lots of things going on all at once. The larger the warehouse, the more difficult it may be to communicate effectively with employees from the chain of command. A developing trend of modern intranet software is being adopted by larger warehouses for their advantage, utilizing a pyramid system within intranet communication channels to be easily accessible at all times. These new tech solutions require a layer of collaborative effort and promote open communication lines between management and employees. Also, by providing personal devices to each employee, there is a new capability of being present in the virtual space.
🚂 Expect the best, but always prepare for the worst. The threat of a country-wide railroad strike threatened the United States supply chain not too long ago. And while the threat isn’t completely vanquished, a short-term agreement was meant to keep trains moving on the tracks. However, a transportation crisis averted can teach us a lesson in contingency plans. Industry disruptions have been felt across the board, even before the Covid-19 shutdowns. Developing a sales and operations planning (S&OP) process can assist in temporary process changes and managing supplier inventory, customer delivery requirements, and outsources processes and manufacturing.
Business Strategy 💡
How You Can Respond to Lingering Port Congestion Problems | Inbound Logistics
Inbound Logistics contributor Sri Laxmana, the Vice President of Global Forwarding, writes about what should be considered when dealing with lingering port congestion issues as the peak season comes around.
The Rise of Technology in Logistics | More Than Shipping
More Than Shipping contributor Serkan Kavas writes about the acceleration of tech logistics after the Covid-19 pandemic forced supply chains to adapt or die.
Digitalization: Maritime’s Secret Weapon | Maritime Executive
Maritime Executive Contributor Paul Sells rights about the shipping industry’s decarbonization goals that have been laid out by the United Nations Global Compact and IMO.
US Army heightens focus on contested logistics in Pacific | Defenses News
Defense News contributor Jen Judson writes about the U.S. Army’s plans for logistics in the Pacific.
Leadership 🏆
Logistics Management Group News Editor Jeff Berman conducts a Q&A with Mark Baxa, the President, and CEO of the Council of Supply Chain and Management Professionals.
Why Chicago Is Home To The Future Of Logistics Tech | Forbes
Forbes contributor Pete Wilkins writes about the Windy’s City’s new boast: being a logistics hub in the United States.
Compliance 📋
CVSA approves new inspection regime for autonomous trucks | Fleet Maintenance
Fleet Maintenance contributor Cristina Commendatore writes about the new CVSA inspection regulations in regard to autonomous trucks.
Driver Issues 🚛
Truckers are guilty until proven innocent | Back The Truck Up
Back The Truck Up contributor Michael Vincent writes about the safety issues encountered by drivers and whether the Federal Motor Carrier Safety Administration (FMCSA) should allow federal and state governments to access trucker information from their commercial vehicles.
Network Association 🤝
Delta invests in electric air taxi startup Joby, plans last-mile airport service | CNBC
CNBC contributor Phil LeBeau writes about Delta Airline’s investment in Jobs, a company that creates operating electric vertical takeoff and landing aircraft.
Inflation 💸
Your fears are warranted: CNBC contributor Sam Meredith shares JPMorgan Chase CEO Jamie Dimon’s words of warning: America should be in a full recession within the next 6 to 9 months.
Retail 🛍
Amazon’s Prime Day II signals holiday spending hurdles | Fox Business
Fox Business contributor Breck Dumas writes about the growing amount of sales being offered by major retailers pre-holiday season.
Leases & Loans 💰
Small business group files suit over Biden student loan plan | AP News
AP News contributor Jill Colvin writes about the Job Creators Network Foundation, a small business advocacy group, that has filed a lawsuit against the Biden administration regarding pardoning specific student loans without seeking public input on the matter.
Peak Season 🎄
FedEx Ground to lower peak season volume forecasts | Supply Chain Dive
Supply Chain Dive reporter Max Garland writes about FedEx Gound’s decision to amend its peak season volume forecasts due to several macroeconomic trends, such as inflation.
Logistics Management Group News Editor Jeff Berman writes about the upcoming peak season job availability and speculates whether the public will fill the positions this year.
TMS 💻
GEODIS Unveils New Cross-Border Delivery Service | Supply Chain Brain
Supply Chain Brain shares an article about GEODIS’ new direct-to-customer cross-border delivery service, MyParcel.
The data integration dilemma in trucking | Fleet Owner
Fleet Owner contributor Cristina Commendatore writes about the functional improvements data integration can bring to a fleet as well as its shortcomings.
Trucker’s Lounge 🧢
Slain Trucking Family Mourned by California Community | TT News
TT News contributor Shawn Jansen writes about the mourning community in Merced, California where a trucking company family was cruelly murdered. An ex-employee of the company and an accomplice have been arrested for the crime.
Fuel ⛽️
Diesel isn’t dead, and its future might surprise you | Truck News
Truck News contributor Rolf Lockwood writes about the new internal combustion engine being unveiled by Navistar.
Diversity 🤜🤛
Women In Trucking Association Announces its October 2022 Member of the Month | Women In Trucking
Women In Trucking Staff announce its Member of the Month for October 2022, Jessica Olsen of SRS Distribution.
Sustainability ♻️
MH&L Staff writes about the increased regulatory pressures forcing companies to improve their sustainability performance metics.
Infrastructure 🔨
The Trucker News Staff writes about the U.S. Department of Transportation’s (USDOT) Office of Inspector General (OIG) newest report. In the report, the OIG outlines the changes anticipated over the roll-out of the Infrastructure Investment and Jobs Act (IIJA).
Electric Vehicles 🔋
General Motors broadens electric goals with new division | AP News
AP News contributor Michaelle Chapman writes about General Motors’ newest EV plans to go fully electric by 2035.
Epoch Times writer Katabella Roberts writes about the growing problem after Hurricane Ian came to town… electric vehicles catching on fire. EV batteries that have been water-logged and corroded amid the brutal storm.
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.