💔 Fog of Tragedy
Good morning! Welcome to the October 25th edition of "The Workday Dash," your go-to source for the latest insights and updates in the dynamic world of supply chain and logistics. As the leaves change colors and autumn sets in, the supply chain landscape continues to evolve, presenting new challenges and opportunities. In this week's issue, we'll navigate through the trends and developments reshaping the industry, from the ongoing impact of global supply chain disruptions to innovative solutions and strategies for a more efficient future.
So, fasten your seatbelts and join us on this week's dash through the world of logistics and supply chain management!🚛❤️
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Tragic "Superfog" Catastrophe in Southern Louisiana Leaves 7 Dead, 25 Injured in 158-Car Pileup
On the morning of October 23, a "superfog" created by a mix of dense fog and marsh fire smoke in southern Louisiana triggered a series of massive car accidents, resulting in at least seven fatalities and 25 injuries. These incidents, involving 158 vehicles, have raised concerns about the potential for more casualties as first responders work to clear crash sites and search for victims. Governor John Bel Edwards has issued an appeal for blood donors and requested prayers for those affected in the wake of this tragic event.
Videos of the scene depict the chaos on Interstate 55, with vehicles crushed, ablaze, and bystanders in shock. The accidents were mainly attributed to severely reduced visibility due to the "superfog," prompting highway closures, including segments of I-10 and the Lake Pontchartrain Causeway, as authorities investigated and responded to the crisis.
Check out today’s featured article from TT News to learn more about this deadly accident caused by a “super fog”. Will there be lasting effects from this disaster? How many more accidents will be caused if this super fog comes back?
Featured Article:
At Least 7 Dead in Massive Louisiana Pileups Due to ‘Superfog’ | TT News
“158 Vehicles Involved in Crashes as Fog, Smoke From Fires Compromise Visibility”
General Mills & Walmart
General Mills and Walmart Join Forces to Drive Regenerative Agriculture Forward
Walmart continues its commitment to regenerative agriculture by partnering with General Mills to accelerate sustainable farming practices. This collaboration builds on Walmart's previous efforts, such as its $120 million investment with PepsiCo to support farmers in improving soil and water quality. Walmart has also focused on sustainability within its supply chain, working with ranchers to enhance grazing methods and implementing regenerative practices on nearly 10,000 acres to support its private-label long-grain rice.
Together with General Mills, the partnership aims to provide farmers with educational resources and technical assistance, exceeding General Mills' goal of advancing regenerative agriculture on 1 million acres by 2030. This initiative reflects both companies' dedication to sustainable and responsible sourcing.
UAW & Strike
UAW Strikes Stellantis' Michigan Truck Plant; 6,800 Walk Out
Members of the United Auto Workers (UAW) at Stellantis NV's Sterling Heights truck plant in Michigan initiated an unexpected strike on October 23, aiming to push for further concessions as the strike against Detroit's major automakers enters its sixth week. This plant, responsible for producing the Ram 1500 pickup, employs around 6,800 union members, bringing the total number of striking Stellantis workers to 14,750 and exceeding 40,000 across all three car companies.
The UAW decided to escalate the strike against Stellantis, citing the company's proposals regarding wage progression, temporary worker pay, conversion to full-time positions, cost-of-living adjustments, and more as the least favorable among the three major automakers. Negotiations are ongoing, with the union awaiting counteroffers from Ford, planning to respond to the latest offers from GM and Stellantis soon, and President Shawn Fain is expected to provide another update later this week.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🇨🇳 China Tightens Restrictions on Graphite Exports Amid Global Supply Concerns. China has announced plans to restrict the export of high-quality, high-purity, high-density artificial graphite materials and related products, starting on December 1, requiring official permission for such exports. This move comes in response to concerns related to security and national interests. China is a dominant force in global natural graphite production, accounting for 67% of it, which raises concerns for battery and electric vehicle (EV) manufacturers who heavily rely on graphite in their production processes. The new export restrictions could lead to stockpiling of graphite supplies by manufacturers uncertain about how many exports will receive permission under the new regulation, potentially impacting the EV supply chain and battery production.
🇸🇦 DSV Stays Focused Amidst Enormous Logistics Project in Saudi Arabia. DSV, a global transport and logistics company, has announced its exclusive logistics partnership with NEOM, a massive development project in northwest Saudi Arabia. The project covers an area the size of Belgium and includes cities, ports, research centers, and more, with a focus on creating a "living laboratory" for future innovation. DSV secured the logistics contract through a tender process, establishing a joint venture with NEOM, in which DSV will own 49% and commit €2.45 billion out of a total funding of $5 billion until December 2031. The partnership will handle end-to-end supply chain management, transport, and logistics investment for the project, with the market opening to competition after 2031. Despite the size of the NEOM project, DSV remains committed to its core business and M&A strategy, with plans to deploy team members to manage the project.
iLevel With You 🏡
More topics for the average American household to consider…
🛢 Chevron's Acquisition of Hess Marks Significant Move in Oil Megamerger Trend. Chevron's $60 billion acquisition of Hess marks a significant development in the trend of consolidation and major acquisitions within the oil industry. This move by Chevron is distinct from recent deals like the Exxon-Pioneer agreement and is primarily driven by Chevron's confidence in the future oil output from Guyana's offshore Stabroek block. This block has seen substantial discoveries since 2015, with over 11 billion barrels of oil equivalent (boe) of recoverable resources. Through this acquisition, Chevron will gain access to more than 3.4 billion boe of these Guyanese volumes. This deal is part of Chevron's strategy to bolster its supply chain solutions business and is expected to close in the first half of 2024, adding approximately $250 million in annual total revenue to Ryder's supply chain solutions segment.
💵 Ryder to Expand its Reach with Acquisition of Impact Fulfillment Services. Ryder System, Inc. has announced its acquisition of IFS Holdings, LLC, also known as Impact Fulfillment Services (IFS), a company specializing in contract packaging, contract manufacturing, and warehousing for major consumer brands, with a strong presence in the consumer packaged goods (CPG), retail, and healthcare sectors. Ryder will gain 15 operations spanning several states through this acquisition, adding approximately $250 million in annual total revenue to its supply chain solutions business segment. The deal is set to be finalized next month, with plans to integrate IFS facilities and operations into Ryder's supply chain solutions business while retaining IFS' workforce and leadership team, including IFS President Rob LeBaron, who will become Ryder's vice president of contract manufacturing and packaging.
👩🏻💼 Unique Return-to-Office Strategy: An Inside Look at Its Implementation. Big Tech leaders like Elon Musk and Mark Zuckerberg have been pushing for in-person work, but Autodesk is taking a different approach with its Flex Forward program. Instead of mandating office attendance, Autodesk lets managers decide when or if employees should come into the office. The company's chief people officer, Rebecca Pearce, advocated for this approach, recognizing the importance of in-person interactions while also valuing flexibility. This strategy appears to be working, with voluntary attrition rates down, increased job views, and a surge in diverse applicants since the program's announcement.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🛳 Long-Haul Freight Rates Surge Due to Capacity Withdrawal. Sentiment regarding rates on long-haul shipping routes has shifted positively, marking the first such change since August. Vessel utilization has exceeded expectations, leading to additional loader services by Maersk. The Alliance's decision to withdraw the EC4 US East Coast service in November is expected to reduce oversupply on the lane. On the Asia-Europe route, rate hikes known as FAK rates have played a role in driving up rates, supported by capacity reductions. Despite this improved sentiment, the sustainability of higher rates depends on liner operators' discipline in managing capacity. Linerlytica noted that approximately 1 million TEU of excess capacity needs to be removed in the next two months, a task made challenging by over 500,000 TEU of new deliveries scheduled before year-end. Shipyards currently have just over 200 units for 834,784 TEU in drydock, with some owners using the slowdown to upgrade their fleets.
🚛 Kodiak Expands Autonomous Freight Lane from Houston to Oklahoma in Partnership with Maersk. Kodiak Robotics has expanded its autonomous trucking lane in collaboration with global logistics company A.P. Moller-Maersk, connecting Houston to Oklahoma City, marking the first autonomous freight network between these locations. Kodiak and Maersk have been working together on autonomous freight transportation since November 2022, delivering eight weekly loads with a safety operator on board since August. This collaboration allows Maersk to stay innovative and eventually achieve a competitive advantage in its logistics operations. Kodiak's autonomous trucks help improve road safety, with the company's focus on enhancing its self-driving system known as the Kodiak Driver, which includes 18 sensors providing a 360-degree view around the truck. Kodiak has partnered with various fleets and companies to integrate autonomous trucking solutions into their operations, aiming for a driver-out solution.
💀 Convoys demise. The demise of Convoy, a prominent player in the freight industry, has garnered significant attention due to its abrupt nature. Convoy's story serves as a cautionary tale of rapid ascent and subsequent burnout over eight years. Initially, the company used venture capital to offer shippers enticing discounts, rapidly scaling its operations and gaining market share. However, this model came at the cost of profit margins on primary lanes. Convoy's management believed that sustained growth would attract future investors despite ongoing losses. Investors, who initially focused on gross revenues as a metric, eventually turned their attention to unit economics and profitability. As the freight market worsened and Convoy's business model shifted, the company experienced financial difficulties, leading to layoffs, and the expenses associated with its trailer program became a significant burden. In the end, Convoy's overfunding and unrealistic valuations, combined with the volatility of the freight market, contributed to its downfall.
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.