Gas Tax Break! 💸
Good morning! Welcome to this special edition of our Supply Chain and Logistics newsletter, dedicated to National Say Thank You Day! In the world of fast-paced shipments, intricate networks, and tireless efforts, it's all too easy to overlook the importance of gratitude. However, today is the day we pause to express our heartfelt appreciation for the professionals who keep our supply chains running seamlessly.
Join us as we celebrate the unsung heroes and pivotal players who make it all possible while exploring the vital role gratitude plays in strengthening our industry bonds. Thank you!!! 👍👏
———
Georgia Governor Declares 'Legal Emergency' and Suspends State Fuel Taxes Once More
Georgia Governor Brian Kemp has declared a "legal emergency" and once again suspended state taxes on gasoline and diesel fuel due to soaring fuel prices. The executive order, signed on September 12, initiated the tax suspension on September 13, and it will continue until October 12. This move comes after a previous 10-month tax suspension from March 2022 to January 2023, which cost the state an estimated $1.7 billion in revenue. However, Georgia's surplus cash and strong financial position make it well-equipped to absorb this loss. Governor Kemp's decision allows him to shift the state's political conversation away from ongoing legal matters and focus on his tax-cutting efforts.
Despite concerns from some economists, Kemp argues that these tax cuts will help Georgia residents combat inflation. Gasoline prices in Georgia are currently below the national average, with an average price of $3.57 per gallon for unleaded gasoline. The move to suspend state fuel taxes is expected to provide relief to consumers at the pump.
Check out today’s featured article from The Trucker to learn more about why Georgia is declaring a ‘legal emergency’ again. Will this provide relief to the citizens of Georgia?
Featured Article
Georgia governor declares ‘legal emergency,’ suspends state fuel taxes again | TheTrucker
“Georgia’s governor is again suspending state taxes on gasoline and diesel fuel, declaring a legal emergency over higher prices.”
Logistics & Unions
UPS-Teamsters Deal May Heighten Wage Pressure Across Logistics Industry
The recently ratified labor contract between UPS and the International Brotherhood of Teamsters is expected to exert wage pressure on other logistics companies, including FedEx. Under the new contract, which came into effect in August following months of negotiations, the average full-time UPS driver will earn approximately $170,000 annually in pay and benefits, up from the previous $145,000. This increase in compensation at UPS presents a challenge for logistics firms already striving to attract and retain workers in a competitive labor market, as it has led to increased interest in UPS jobs and empowered workers to demand better wages and conditions.
Rival FedEx has already announced plans to raise wages for its employees in October, though specific details regarding eligibility requirements and percentage amounts were not provided. This move by UPS and the response from FedEx underscore the growing competition for logistics workers, which has been intensified by the surge in demand for delivery services during the COVID-19 pandemic. As a result, the industry is experiencing upward pressure on wages, similar to the dynamics in the housing market, where prices remain elevated due to tight supply despite lower demand.
Autonomous & Trucking
Autonomous Yard Trucks Set to Surge with a Projected 52% Growth
The growing need to modernize truck yards in line with warehouse and transport digitalization is fueling the adoption of established supply chain technologies to enhance asset tracking, allocation, and optimization within these yards. According to ABI Research, there is a projected significant increase in the utilization of Artificial Intelligence (AI)-enabled cameras within yards, with a global installed base of 11.2 million expected by 2030. Moreover, the adoption of autonomous yard trucks is set to rise significantly, with a global Compound Annual Growth Rate (CAGR) of 52.7% from 2022 to 2030.
Supply chain solution providers are increasingly diversifying into Yard Management Systems (YMS) and related technologies to digitize and upgrade yard operations. This includes implementing yard systems, tracking technologies, and autonomous tractors. While autonomous and teleoperated yard trucks are still emerging technologies, recent investments, partnerships, and successful proof-of-concept projects indicate growing interest and potential use cases for these innovations. Companies like Outrider, Phantom Auto, EasyMile, and Fernride are actively investing in yard automation, with small-scale deployments paving the way for broader commercial adoption in the coming years.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
☁️ Advancing Toward a Zero-Carbon Shipping Future Amidst Climate Report Warnings for Ports. In the maritime shipping sector, climate change is a pressing concern, and recent developments reflect both hope and challenges. These developments highlight the urgency of addressing climate change in the maritime industry, both through innovative technologies like eSOVs and comprehensive adaptation strategies for vulnerable ports.
🌎 The Geopolitics of Critical Mineral Supply Chains: Navigating Global Resource Dependencies. The growing importance of critical minerals for green energy, defense systems, and high-tech applications, coupled with supply chain vulnerabilities, is driving increased attention to diversify and secure these supply chains. China currently holds a dominant position in critical mineral mining, processing, and manufacturing, with significant control over global supply chains for rare earth elements, cobalt, nickel, and lithium. This concentration has raised concerns about supply disruptions and geopolitical risks.
iLevel With You 🏡
More topics for the average American household to consider…
👊🏽 Survey Reveals U.S. States with the Highest Road Rage Incidents. A recent study conducted by Forbes Advisor has identified Arizona as the state with the highest incidence of confrontational drivers in the United States. The study, which surveyed 10,000 licensed drivers, utilized nine key metrics to assess road rage trends. Delaware, on the other hand, was found to have the most polite drivers in the nation. Notably, five of the top 10 states with the most confrontational drivers were located in the South, including West Virginia, Virginia, Oklahoma, Alabama, and Texas. Conversely, four of the top 10 states with the most polite drivers were situated in the Pacific and West regions, comprising Idaho, Wyoming, Washington, and New Mexico. The study also revealed that road rage incidents were most commonly reported on city streets (29.18%), followed by freeways or highways (26.59%), and in parking lots (14.9%). The leading causes of road rage included heavy traffic (39.35%), pre-existing stress (38.06%), being late (33.89%), existing anger (32.49%), and fatigue (26.86%).
☀️ Climate Change and Climate-Controlled Logistics: A Dangerous Feedback Loop. The cold chain, essential for preserving and transporting products like ice cream, is a major contributor to climate change due to its energy-intensive operations. It's estimated that 70% of all food passes through the cold supply chain, and about 12-13% of the global food supply is wasted each year due to failures in this chain. The cold chain market is growing rapidly, expected to surpass $1 trillion in the next 5-6 years, primarily driven by factors like the COVID-19 pandemic and increased frozen food sales.
⛽️ Diesel Issues Could Escalate Amidst OPEC+ Crude Shortage Concerns. The diesel market is facing a crisis as output curbs from countries like Saudi Arabia and Russia limit the supply of medium and heavy crudes, crucial for diesel production. Refiners are increasingly using different crudes, resulting in a 1.5% drop in the diesel yield expected next quarter compared to the previous year. This translates to a loss of 1.2 million barrels per day, exacerbating an already tight diesel market. Despite higher overall processing rates, this decrease in diesel production won't be fully compensated for. The situation is worsened by OPEC+ cuts, which have driven refiners to process lower-density crude, reducing diesel-type fuel output. Plant focus on other products, such as jet fuel and gasoline, has also contributed to lower diesel yields.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
📈 Wholesale Price Inflation Picks Up Speed in August After Historically Slow Pace. U.S. wholesale prices rose 1.6% in August from a year ago, an increase from 0.8% in July, driven by higher gas prices. Excluding energy and food, core inflation was at 2.2% in August, down from 2.4% in July. Wholesale prices are still rising more slowly than consumer costs, suggesting that consumer inflation may cool down as weaker wholesale price gains translate into smaller price increases. In contrast, the consumer price index rose 3.7% in August from a year ago, up from 3.2% in July. Core consumer inflation, excluding energy and food, fell to 4.3% in August from 4.7% in July. Retail sales in August rose 0.6%, largely due to higher gas prices. The Federal Reserve is closely monitoring core prices as it continues to raise interest rates to combat inflation, which remains above its 2% target.
💊 Is the Pharmaceutical Supply Chain Prepared for the Upcoming DSCSA Compliance Deadline? Pharmaceutical supply chains are facing increased pressure to comply with the Drug Supply Chain Security Act (DSCSA) by November 27, 2023, which mandates enhanced security and traceability in the supply chain to protect patient safety. Compliance involves providing unit-level serialized products electronically via GS1 Electronic Product Code Information Services (EPCIS). Failure to comply will result in the legal inability to distribute or dispense drugs. Concerns abound, with some stakeholders advocating for a grace period and exemptions due to complexities in implementation, labeling issues, and potential supply chain disruptions. Pharmaceutical companies are urged to map their supply chains to gain visibility and enhance readiness for DSCSA compliance while dealing with existing challenges in the industry.
🚛 Bosch Accelerates the Future of Hydrogen-Powered Trucking. Bosch is ramping up production of fuel-cell power modules for Nikola trucks in the U.S., with these modules being manufactured at its historic Stuttgart-Feuerbach plant. Bosch believes that its hydrogen technology will help the trucking industry meet decarbonization goals more rapidly than relying solely on battery-electric technology. The advantages of hydrogen include similar fueling times to diesel and the potential for use in long-haul trucking. Bosch aims to generate €5 billion ($5.36 billion) in revenue from hydrogen technology by 2030, with one in five new heavy-duty trucks worldwide expected to use fuel-cell powertrains by that time. Bosch plans to invest nearly €2.5 billion ($2.68 billion) in developing and manufacturing hydrogen technologies between 2021 and 2026.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 25, 2024, from iLevel Logistics Inc.