Tanker Truck Tragedy 🚛
Good morning! Greetings, supply chain enthusiasts! As we gear up for another exciting edition of "The Workday Dash," we hope you're ready to swing into action because today is not just any ordinary day. October 4th marks National Golf Lovers Day, a moment to celebrate the sport that demands precision and patience, much like our dynamic world of logistics and supply chain management.
So grab your clubs and join us as we tee off on the latest industry updates, trends, and insights that are sure to keep you on course for success. Let's dive right in! ⛳️
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Tragic Tanker Truck Crash in Central Illinois Sparks Concerns About Hazardous Material Transportation Safety
A tragic tanker truck crash in central Illinois claimed the lives of five people and resulted in a temporary evacuation of around 500 residents within a 1-mile radius of the accident site in Teutopolis. The crash occurred when a chemical-laden tanker truck carrying caustic anhydrous ammonia jackknifed, hitting a utility trailer parked off the highway. The impact punctured a six-inch hole in the chemical container, causing a spill of roughly half of the truck's 7,500-gallon load. The accident may have started when another vehicle attempted to pass the chemical-laden truck. Five individuals were killed in the accident, including three from the same family and two adult motorists from out of state. Additionally, five people were airlifted to hospitals with their conditions unknown. Authorities initiated an evacuation and worked overnight to control the plume from the ammonia leak.
The accident raised concerns about the safety of transporting hazardous materials on public highways. Tanker trucks carrying toxic substances like anhydrous ammonia must have commercial driver's licenses and hazardous material endorsements, subjecting them to higher scrutiny. Anhydrous ammonia is utilized by farmers for nitrogen fertilizer and in the cooling systems of large buildings. In 2019, a toxic gas cloud incident occurred in suburban Chicago due to open valves on tanks of anhydrous ammonia during transportation, sickening dozens. In 2002, a train derailment in North Dakota released anhydrous ammonia, causing fatalities and injuries. The incident highlights the importance of safety measures and awareness when handling and transporting hazardous materials.
Check out today’s featured article from The Trucker to learn more about how this tragedy happened. Will this be another type of Norfolk Southern situation? Will this accident have any lasting effects on the nearby town?
Featured Article
Illinois ammonia truck crash kills 5, forces temporary evacuation | The Trucker
“ The tanker truck crash in central Illinois that killed five people may have started when another vehicle tried to pass the chemical-laden truck, a federal transportation official said Sunday.”
Dockworker & Bankruptcy
Dockworkers Union Files for Bankruptcy Amid Lawsuit Over Work Slowdowns
The International Longshore and Warehouse Union (ILWU), representing U.S. dockworkers along the West Coast, filed for bankruptcy protection amid an ongoing lawsuit over allegations of unfair work slowdowns and stoppages. The ILWU, which represents around 22,000 dock and warehouse workers at West Coast ports, is currently involved in litigation with the Oregon branch of the International Container Terminal Services Inc. (ICTSI) regarding alleged illegal work stoppages and slowdowns during labor disputes. In 2019, a federal court found that the ILWU had engaged in unlawful labor practices between 2013 and 2017, resulting in a $93.6 million damages judgment against ICTSI Oregon. Subsequently, an Oregon judge reduced the damages to $19.1 million, which ICTSI contested, leading to a new trial. ICTSI is seeking damages ranging from $48 million to $142 million, while the ILWU contends that damages should not exceed $3.9 million, citing financial constraints to cover legal expenses associated with the new trial.
ILWU President Willie Adams stated that the bankruptcy filing aims to resolve the matter and secure the union's future while defending against what the union sees as a "scorched-earth litigation tactic" by ICTSI. The bankruptcy process will provide the ILWU with an opportunity to restructure and address its outstanding debts with creditors. This development comes as the ILWU recently ratified a new six-year contract for U.S. dockworkers, which includes enhanced pay and benefits, covering 22,000 employees at 29 West Coast ports after negotiations that began in 2022. During these negotiations, port terminal operators accused ILWU members of labor withholding and operational slowdowns.
Ports & Cargo
Port of Baltimore's Public Marine Terminals Achieve Record Cargo Throughput
The Port of Baltimore's state-owned public marine terminals achieved a cargo volume record, handling 11.6 million tons of general cargo during fiscal 2023, surpassing the previous record set in 2019 before the pandemic. Maryland Governor Wes Moore hailed the milestone, recognizing the port's significance as an economic engine and commending the workforce and maritime industry partners. The Port of Baltimore boasts a strategic advantage, with connectivity to markets along the East Coast and into the Midwest, supported by an extensive transportation network.
The port has exhibited strong performance in various categories and key commodities throughout the year, including a 28% increase in roll-on/roll-off farm and construction machinery, a 7% rise in container volumes, and a 5% increase in general cargo compared to the same period in 2022. In August, the Port of Baltimore welcomed the Evergreen Ever Max, the largest containership to visit the state, highlighting the port's infrastructure capabilities, including a deep channel and large cranes, which enable it to accommodate massive containerships. Brian Miller, port interim acting executive director, emphasized the collaborative effort of the supply chain stakeholders in the port's success.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🇵🇹 Scan Global Logistics Announces Acquisition of FLS in Portugal. Global logistics provider Scan Global Logistics (SGL) has acquired Portuguese logistics company Freight & Logistics Solutions (FLS), enhancing its government and defense logistics capabilities. With this acquisition, SGL strengthened its presence in Portugal, an important gateway to South America and regions in Africa, completing its footprint on the Iberian Peninsula and expanding its global presence to 49 countries. SGL's acquisition of FLS comes after a series of acquisitions in recent months, including Sand Road Freight in Denmark, ETS Transport & Logistics, ETS Fulfillment in Germany, and Belglobe in Switzerland. The company also plans to continue pursuing acquisitions in the coming months while focusing on organic growth by opening new offices in various locations.
🇨🇳 China Achieves Remarkable Milestone: Handling Over 200 Million TEUs in the First Eight Months of 2023. China has achieved a remarkable feat by handling over 200 million TEUs (Twenty-foot Equivalent Units) in container throughput from January to August 2023, showcasing its robust maritime strength with a 4.8% year-on-year increase. During the same period, major Chinese ports experienced an impressive 8.4% surge in cargo volume, totaling a staggering 11.1 billion tons. Leading the charge in container volume, the Port of Shanghai, the world's largest and busiest container port, processed an astounding 32 million TEUs. The Port of Ningbo and Zhoushan followed closely with 24 million TEUs, while the Port of Shenzhen secured third place with 19 million TEUs. Despite some fluctuations in North American exports and the upcoming China National Day holiday, the industry remains resilient, with expectations of continued growth in the coming quarters.
iLevel With You 🏡
More topics for the average American household to consider…
🚗 Adapting Parking Garages for Surging EV Sales and Heavier Vehicles. The increasing popularity of hybrid and electric vehicles (EVs), along with the growing size and weight of cars, is posing challenges for parking garages. The average vehicle weight has risen from 1.5 metric tons in 1974 to nearly 2 metric tons in 2023, largely due to electric and hybrid batteries and larger car sizes. While concerns have been raised about the potential collapse of some car parks under the weight of heavier vehicles, experts emphasize the importance of not being overly alarmist. The majority of vehicles are still within the design capacity of car parks, but the trend for larger vehicles, including SUVs and pickup trucks, continues to grow. Strategies to address these challenges include structural assessments of garages, potential screening of heavy vehicles before entering, and enhanced fire safety measures, such as sprinkler systems, especially in underground facilities.
🪧 GM Announces Layoffs of 164 Additional Workers Amid UAW Strike. General Motors (GM) has laid off more employees due to the ongoing United Auto Workers (UAW) strike, bringing the total number of furloughed workers related to the strike to over 2,100. Unlike other automakers, GM has not been spared from the incremental escalations of the UAW strike. The strike, which began on September 15, initially targeted a Ford plant in Michigan, a GM plant in Wentzville, Missouri, and a Stellantis plant in Ohio. Subsequent rounds of the strike have impacted various facilities and assembly plants of these automakers. GM recently announced that it would be forced to furlough 130 workers at its Parma, Ohio, metal center and 34 workers at its Marion, Indiana, metal center as a result of the strike. The affected employees are not expected to return until the strike has been resolved. GM had previously laid off around 2,000 workers following the first round of the strike, citing parts shortages caused by the strike at its Wentzville facility. Other automakers, including Stellantis and Ford, have also been impacted by the strike, resulting in temporary layoffs and disruptions to production.
💰 Small Businesses Express Concerns to Fed's Powell About Inflation and Interest Rates. Federal Reserve Chair Jerome Powell and Patrick Harker, head of the Federal Reserve Bank of Philadelphia, visited York, Pennsylvania, to hear the concerns of small-business owners grappling with inflation, high interest rates, labor shortages, and post-pandemic economic challenges. Businesspeople expressed optimism but mentioned issues like labor shortages, higher interest rates hindering expansion, and supply chain disruptions. Powell assured them that the Fed is working on addressing inflation. The local economy is growing, but businesses worry about high interest rates and unresolved inflation, along with a lack of childcare facilities affecting workforce participation.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🚙 Preliminary Evidence Strongly Supports Safety of Automated Vehicles. The California Public Utilities Commission (CPUC) has approved an expansion of robotaxi services by Cruise and Waymo in San Francisco, and these companies have announced plans to expand their services to several other U.S. cities, particularly in the Sun Belt region. Despite some recent incidents raising safety concerns, there is growing access to robotaxi services in the United States. Critics worry about the impact of automated vehicles (AVs) on traditional transportation modes like walking, biking, and mass transit. AV developers are actively working on safety measures, and preliminary evidence from Waymo and Cruise suggests that AVs are safer than human drivers, with significant reductions in collisions and claims. Research from SwissRe and Waymo further supports the safety of AVs, indicating a substantial reduction in bodily injury and property damage claims compared to human drivers. Policymakers are urged to work with AV companies to ensure safe integration into existing regulatory frameworks.
🔥 Beyond Fire: Additional Hazards of Lithium-Ion Batteries. TT Club, a specialized international freight insurance provider, is highlighting the critical dangers associated with toxic gas emissions in lithium-ion battery fires. These batteries can fail suddenly, releasing toxic gases within seconds due to a process called thermal runaway, where an internal electrical short generates heat and breaks down the battery's structure. The resulting toxic vapors pose health risks to individuals exposed to them. In cases of lithium-ion battery fires on ships and within the supply chain, the rapid emission of toxic gases can be especially challenging. TT Club recommends risk assessments, protective gear, fire-fighting equipment, and early detection measures to mitigate these risks effectively.
🚛 Freight Industry Recovery Could Extend Until 2025. Economic analysts predict that the freight market's weak conditions could persist until late 2025, based on the presentation of weak U.S. economic data at the Journal of Commerce Inland Distribution Conference. Factors such as saturated retail inventories, rising interest rates, and elevated costs continue to hinder the recovery of freight markets, despite some short-term positive signals in consumer spending. While a recession in the U.S. economy is not expected this year, growth will be slow, with GDP projected to grow by 2.3% in 2023 and possibly only exceed 1.5% in 2024. Higher costs for consumer staples and rising interest rates are expected to further impede spending, affecting manufacturing and, subsequently, shipping demand. Analysts also anticipate a typical peak season in 2023, following historical trends, but remain watchful for improvements in new home construction as a sign of economic recovery.
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.