Another railroad union rejects tentative contract, sparking renewed fears of strike
Good morning! It is National First Responders Day, National Immigrants Day, and National Chocolate Day.
(We must admit… that as much as we love and appreciate first responders and immigrants… there’s something extra special about chocolate… 🍫)
But in other news… in a major turn of events, a second railroad union has rejected the tentative terms with freight railroads that were mediated by the White House’s board of arbitrators. The Brotherhood of Railroad Signalmen’s vote accounted for 61% rejecting the contract deal, regardless of 24% raises and $5,000 bonuses. The major point of contention? The denial of paid sick leave.
This leaves some wondering… is that rail strike actually going to happen after all?
Check out today’s featured article from TT News to read about the latest development between the rail unions and the railroads and what could happen if neither side can agree on new contracts. ☕️
Featured Article:
Second Railroad Union Rejects Deal, Adding to Strike Worries | Transport Topics
“A second railroad union rejected its deal with the major U.S. freight railroads on Oct. 26, reflecting workers’ increasing frustration with the lack of paid sick time in the industry and adding to concerns about the possibility of a strike next month that could cripple the economy.”
Driver Issues & Regulations 🚛
OOIDA urges members to reject electronic identification technology proposal by FMCSA
In September 2022, the Federal Motor Carrier Safety Administration (FMCSA) published an advanced notice for a proposal to require interstate commercial vehicles to be equipped with electronic identification technology. The Owner-Operator Independent Drivers Association (OOIDA) had advised its 150,000 members to actively oppose the rule-making, citing unsafe and irresponsible regulation-making.
Regardless of no formal proposal being yet made, the FMCSA has invited the public to comment on the suggestion until November 22nd. This policy change seems to have stemmed from a 2010 petition filed by the Commercial Vehicle Safety Alliance to assist with facilitating roadside inspections. In 2013, the FMCSA denied the petition.
Midterm Elections 🇺🇸
In this article, CNBC contributor Emma Kinery discusses the latest White House talking point - “junk fees”. They are fees imposed by airlines, banks, and cable companies that President Joe Biden is referencing as illegal and unethical.
Election Day is Nov. 8, but legal challenges already begin | AP News
In this article, AP News contributor Colleen Long writes about the litany of lawsuits that have already been filed in regard to election processes, twelve days before Election Day.
In this article, USA Today contributors Susan Page and Sarah Elbeshbishi write about growing Republican support as Election Day approaches.
‘Going to be ugly’: All signs point to a Republican landslide in Florida | Politico
In this article, Politico contributors Matt Dixon and Gary Fineout write about the almost-guaranteed Republican landslide that will occur in Florida on November 8th.
Diversity & Driver Issues 🚛
DOT secretary Buttigieg pushes for more recruitment of women into trucking sector
At the American Trucking Associations 2022 Management Conference & Exhibition in San Diego, California last Tuesday, Department of Transportation Secretary Pete Buttigieg had a clear message: the trucking industry needs more women. In what he called a “mathematical madness”, Buttigieg urged industry leaders to create a safer and more welcoming environment for women in order to make up for the ongoing labor shortage plaguing the trucking sector.
Donning an “I LOVE TRUCKING” button, the DOT secretary participated in a Q&A session on the conference's final day and reiterated that recruitment is key to solving this problem. He referenced the White House Trucking Action Plan, a Biden-led program that encourages apprenticeships and works to cut emissions and improve safety features.
Let’s Get Global 🌎
🇨🇦 St. Lawrence River near Montreal, Canada is shrinking, leaving its shipping corridor scrambling. With water levels reaching decade-low, Canada and the United States are closely monitoring the situation and measuring the water flowing from Lake Ontario in order to avoid a situation similar to the Mississippi River or Yangtze River in China. Bryce Carmichael, hydraulic engineer, and U.S. section secretary for the International Lake Ontario-St. Lawrence River Board. Seaway has said that the experts are expecting low water levels for several more weeks.
🇪🇺 Sky-high energy prices are draining the pockets of both American and European citizens. In some areas, the issue to unraveling into situations of political unrest. However, the two titans on the global stage may end up in two different situations - the United States still has access to cheap energy, while the European Union no longer had a net to fall back on. Industry leaders who rely on European manufacturing should consider the future as Europe struggles to modify its energy dependence. Will de-industrialization cause major problems down the road?
💛 DHL Supply Chain and UK-based retailed boohoo have entered into an agreement. The company boohoo has hired the logistics provider to manage its United States distribution center in Elizabethtown, Pennsylvania as the company expands to North American operations. The distribution center boasts 1.1 million square feet and its slated to open in early 2023. According to DHL Supply Chain, the distribution center will employ 1,000 associates and quickly provide customers with deliveries - as early as “next-day” in New York City metropolitan areas.
iLevel With You
More topics for the average American household to consider…
🚙 Beemers are hopping on the EV train. BMW Motors, the German automaker, is investing $1.7 billion in its United States operations in order to expand electric vehicle production in the country. The company’s South Carolina plant is getting the brunt of the cash infusion, scheduled to absorb $1 billion to improve its facilities. BMW’s Spartanburg plant is also expecting $700 million on that investment to construct a nearby battery factory. This move should assist BMW with meeting its goal of a minimum of six fully-electric vehicle models in the United States by 2030.
😔 U.S. consumers are worried about the economic conditions approaching. The Conference Board Consumer Confidence Index declined 107.8 points in October, after growing in August and September. Lynn Franco, Senior Director of Economic Indicators at The Conference Board, said that economic growth at the beginning of Q4 could be to blame, but recession risks seem to be on the rise.
🍉 Groceries can be delivered to the customer faster with micro-fulfillment operations. This can be done by decreasing the geographical distance between the products being purchased and the customer, ensuring a speedy last-mile delivery. An e-commerce boom over the past several years has elevated the delivery time standard. Micro-fulfillment centers (MFCs) are growing increasingly popular as opposed to traditional warehouse facilities. MFCs will only house inventory that has been specifically curated to meet the needs of the local market.
GET SMART
Ramp up that brain power for these advanced topics…
👑 Data is king. It moves fast and oftentimes in many different directions… but data can translate the most challenging parts of a business to navigate. Data latency, process latency, demand latency, market latency, and transparent governance are all factors of data that make the supply chain move at a slow, but accurate pace.
📦 Shippers should prepare for the UPS and FedEx rate increases. Shipping rates have been largely negotiable in the past, but these two Goliath companies are signaling they may not be up for debate. Both companies announced rate hikes of 6.9% on average to combat rising inflation and supply chain costs. Melissa Priest, founder, and CEO of Alexandretta Transportation Consulting has spoken out about the change - advising that this rate hike will likely be almost-crippling to many shippers.
🚛 ‘Just-in-time Inventory’ (JIT) is not a business strategy that should be tossed out the window. Originally developed by the Toyota Motor Company, JIT employed the idea that supplier facilities should be geographically close to the company’s factories, ensuring that inventories never got clogged. Due to pandemic-era policies creating inventory gluts, some have called JIT processes into question. However, Manmohan Sodhi, a professor of operations and supply chain management at Bayes Business School in London, and Thomas Choi, a professor of supply chain management at Arizona State University’s W. P. Carey School of Business, are both saying that deploying a modified version of JIT is a safer route.
News Bag 🗞
Supply Chain by the Numbers for October 27, 2022 | SC Digest
In this article, Supply Chain Digest launches into. summary of UPS’ rate hikes to match competitor FedEx, lofty corporate emissions goals being doubted by Microsoft, and how much Amazon delivery drivers actually make.
Industry Forecast 📊
Why This Economic Cycle is Different for Trucking | Trucking Info
In this article, Trucking Info contributor Deborah Lockridge writes about the challenging economic cycle that defies all past logic for the trucking industry.
Leadership 🏆
New ATA Chairman Dan Van Alstine: ‘Create a Vision, Empower the People’ | TT News
In this article, TT News Senior Reporter Eric Miller writes about the leadership represented by Dan Van Alstine, president and chief operating officer of Ruan Transportation Management Systems.
Maritime 🚢
Smaller Containerships Most Likely to Face the Chopping Block | G Captain
In this article, G Captain contributor Mike Wackett writes about the impending demolition of smaller container ships as the industry makes way for those of a larger caliber.
Fuel ⛽️
The US is exporting record oil and fuel even as East Coast faces shortages | AJOT
In this article, AJOT contributors Devika Krishna Kumar and Chunzi Xu write about the growing exports flowing into the United States, even as its East Coast braces for a shortage of both diesel and gasoline.
U.S. Economy 🇺🇸
In this article, CNN contributor Alicia Wallace writes about the softening economic situation in the United States due to lessening consumer spending.
Electric Vehicles 🔋
In this article, Real Clear Investigations contributor John Murawski writes about the misrepresentations being marketed by vehicles tagged as “zero-emissions”.
Global Trade 🌎
Grain Giant Warns Globalization Is Over | G Captain
In this article, G Captain contributor John Konrad writes about the end of globalization, according to Greg Heckman, CEO of the grain manufacturer Bunge.
Driver Issues 🚛
Truck driver mental health, we can do better | Back The Truck Up
In this article, Back The Truck Up contributor Michael Vincent writes about the need to address mental health issues for truck drivers.
In this article, Supply Chain Digest writes about the top driver issues recorded over the past decade by drivers and how they have evolved over time.
Repair & Maintenance 🧰
Ways for smaller fleets to save on parts | Fleet Owner
In this article, Fleet Owner contributor David Seewack writes about suggestions for what medium and small-sized fleets should do to minimize the cost of parts.
Diagnostic nightmares and horror stories from the shop | Fleet Maintenance
In this article, contributor Alex Keenan writes about a few horror stories in fleet repair shops in honor of Halloween.
Safety 🦺
Safety Series: Preparation is key to surviving winter weather | The Trucker
In this article, The Trucker contributor Cliff Abbot writes about the challenges facing American drivers during the winter months and how they should approach them with safety precautions.
Network Association 🤝
Knight-Swift projects ‘muted peak season’ | Transport Dive
In this article, Transport Dive Associate Editor David Taube writes about the Knight0Swift projects being put “on hold” due to a lackluster peak season.
Artificial Intelligence 🤖
In this article, CNBC contributor Michael Wayland writes about the $827 million net loss recorded by Ford Motor during their third quarter, which the company chalks up to supply chain issues and challenging AI investments.
Business Strategy 💡
Children’s author drives bulk deliveries herself to cut costs | Fox Business
In this video clip, Children’s author Krystaelynne Sanders Diggs discusses rising inflation costs on ‘Varney & Co.’ and explains why she has done this to save on shipping costs.
Trade & Border Issues 🗺
As US-China relations worsen, expect supply chain chaos | Freight Waves
In this article, Freight Waves contributor John Paul Hampstead writes about the teetering American consumerism and the country’s relations with China began to erode.
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.