Trainwreck Chaos 💥
Good morning! Welcome to the Workday Dash, your go-to source for all things supply chain and logistics. As we kick off this edition, we'd like to extend our appreciation to the U.S. Air Force, celebrating its day today. Just as the Air Force soars through the skies, we'll take you on a journey through the latest developments, trends, and innovations in the world of supply chain and logistics.
Buckle up and let's dive into the latest updates! ✈️👏
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Explosion at World’s Largest Railyard Triggers Immediate Evacuations
An explosion inside a shipping container at Union Pacific's Bailey Yard in North Platte, Nebraska, prompted evacuations due to toxic smoke generated when one of the chemicals aboard caught fire. The cause of the explosion remained unclear, but it occurred within an intermodal container on a railcar. Fortunately, there were no injuries or derailments reported. Authorities evacuated residents within a 1-mile radius and temporarily closed a section of U.S. Highway 30 due to the toxic smoke.
The container involved was carrying perchloric acid, used in explosives as well as various food and drug products. The incident did not impact Interstate 80. The National Transportation Safety Board is monitoring the situation.
Check out today’s featured article from TT News to learn more as to why this exposition happened and to see if anything is to blame. Why is there more train explosions and derailments this year? Is this going to cause problems like Norfolk Southern’s toxic smoke?
Featured Article
Explosion at Union Pacific Railyard Prompts Evacuations | TT News
“Fire at World's Largest Railyard in Nebraska Contained With No Injuries and No Derailments”
Strike & Contracts
UAW Strikes Hit GM, Ford, and Stellantis Plants Amid Contract Dispute
The United Auto Workers (UAW) union has initiated strikes at three major automotive plants owned by General Motors (GM), Ford, and Stellantis after failing to reach a new labor agreement on Thursday night. The affected plants include a GM facility in Wentzville, Missouri; a Stellantis plant in Toledo, Ohio; and a Ford plant in Wayne, Michigan. Other plants will continue working without a contract for the time being. UAW President Shawn Fain indicated that this staggered approach would keep the automakers uncertain about further strikes. The key point of contention revolves around higher wages, with the union demanding over a 40% pay increase for rank-and-file members over four years.
Full-time assembly workers at Ford and GM currently earn $32.32 per hour, while part-time workers receive around $17 per hour. Full-time Stellantis employees earn $31.77 per hour, with part-time workers earning close to $16 per hour. The UAW is also advocating for the conversion of all temporary workers to permanent status, cost-of-living adjustments, pension benefit increases for retirees, and the restoration of pensions for new hires. The strike, which could potentially cost the U.S. economy billions of dollars, is primarily driven by these demands for improved compensation and benefits.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🇸🇪 Volvo's Roadmap to Zero Emissions Puts Customers at the Center. In Sweden, Volvo Trucks is adopting a customer-focused approach to achieve its corporate goals for reducing carbon emissions. The company aims to have 50% of its vehicles sold as electric by 2030 and achieve 100% net zero emissions by 2050. To help customers incorporate zero-emission vehicles into their fleets, Volvo Trucks is using route simulators to determine where zero-emission trucks, particularly battery-electric ones, would work best. The company also provides recommendations on charging infrastructure and offers simulation programs for back-office operational planning. This customer-centric strategy aligns with Volvo Trucks' commitment to sustainability and tackling climate change.
🇨🇳 Supply Chain Shift from China to Southeast Asia Could Fuel Middle-Class Growth. Liew Chin Tong, Malaysia's deputy minister of investment, trade, and industry, believes that the diversification of supply chains away from China presents a significant opportunity for Southeast Asian countries. He views this shift as a chance to attract manufacturing investments that have historically favored China, potentially leading to robust economic growth and the development of a stronger middle class in the region. Liew emphasized the need for Southeast Asia to seize this once-in-a-generation opportunity, especially as the COVID-19 pandemic has exposed the risks of overreliance on China as the world's factory. This supply chain diversification is part of a broader trend toward adopting a "just-in-case" approach for greater supply chain resiliency.
iLevel With You 🏡
More topics for the average American household to consider…
🎁 Only 9% of Consumers Anticipate Increased Holiday Spending This Season. A survey conducted by Gartner, Inc. reveals that only 9% of consumers plan to increase their holiday spending this year, indicating cautious consumer sentiment. The survey further breaks down spending intentions, with 28% planning to spend less than in 2022, while 63% intend to maintain the same spending levels. The study highlights that consumer spending during the 2022 holiday season did not meet industry expectations and was attributed more to higher retail prices combating inflation than increased discretionary spending. It also notes a shift in shopping behavior, with 19% starting holiday shopping in October, 29% in November, and just 10% waiting until December, while 19% have been shopping year-round. Gartner predicts that 30% of consumers will shop for winter holiday gifts year-round by 2026. Free shipping is no longer a significant differentiator, and consumers expect it as standard, with value, promotions, selection of gifts, and ratings and reviews also influencing purchase decisions.
⛽️ Gas prices are expected to see a slight increase next week before potentially providing some relief to drivers, according to experts. Gas prices in the United States are expected to rise slightly over the next week, with estimates suggesting an increase of three to five cents per gallon due to rising gasoline wholesale prices. However, relief may be on the horizon as the country transitions to cheaper-to-produce winter-grade gasoline, particularly after September 16, when most regions, excluding California, make the switch. GasBuddy's Patrick De Haan anticipates a potential decline in the national average from the current $3.84 per gallon to between $3.35 and $3.50 per gallon by year-end. Nevertheless, the situation remains subject to various factors, including oil production cuts by major players like Saudi Arabia and Russia, which could influence prices. Additionally, diesel prices, which have been steadily rising, are of particular concern, as they impact the cost of transporting goods and services, ultimately affecting consumers.
🚗 Car hackers are on the rise. A group of German hackers recently breached a Tesla car, not with malicious intent but to access a paid feature – heated rear seats. These seats are typically unlocked after paying $300. The researchers, who were also the car's owners, physically tampered with the voltage supply to the car's infotainment system, glitching the computer and granting them free access to the rear heated seats. This "jailbreaking" process also allowed them to access internal systems and private user data. Automakers are increasingly offering features as paid subscriptions, akin to the smartphone app model, which raises cybersecurity concerns as more digital features connect vehicles to the internet, potentially creating new vulnerabilities for data theft and tampering.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
💚 Billionaire Maersk family has established a green methanol company focused on the shipping industry. The billionaire family behind A.P. Moller-Maersk A/S is establishing C2X, a new company focused on producing green methanol to reduce emissions in the shipping industry. C2X plans to build and operate large-scale production facilities with an annual capacity of more than three million tons of green methanol by 2030. Currently, there are approximately 153,000 tons of green methanol production capacity worldwide. APMH estimates global demand for methanol could triple to about 300 million tons a year by 2050. Maersk, a major player in the shipping industry, has identified green methanol as a key technology to achieve its carbon-neutral goal by 2040. C2X will sell to both the shipping and chemical industries, with Maersk owning a 20% stake in the company.
🔋 Congress Holds Hearing on Autonomous Trucking During Driver Appreciation Week. American Trucking Association President and CEO Chris Spear assured lawmakers that autonomous trucks won't lead to job displacement for truck drivers. He called for a national framework for autonomous trucking technology to address the current driver shortage and projected shortage of 1.2 million drivers in the next decade. Spear emphasized that job displacement is a myth and stated that embracing innovation is crucial. The hearing, held during National Truck Driver Appreciation Week, drew criticism from some industry groups, and no truck drivers were among the witnesses. Other industry leaders testified about the importance of truck drivers in developing autonomous vehicle technology and the potential for autonomous trucks to create more opportunities in the industry while improving safety. However, safety measures, testing, regulation, and accountability are essential as AV truck tech is rolled out more widely.
✈️ Air Force Secretary Discusses Musk's Ukraine Decision, China Tensions, and the Future of Warfare. Air Force Secretary Frank Kendall commented on SpaceX CEO Elon Musk's decision to withhold Starlink satellite service to Ukraine during a surprise attack on Russian forces last year. Kendall explained that SpaceX made unilateral decisions about assisting Ukraine at that time as they were not under contract with the U.S. government. However, the Pentagon now has a contract with SpaceX for Starlink services in Ukraine. Kendall emphasized the importance of enforceable contracts for ensuring the military's access to necessary services. He also discussed the growing role of space as a contested domain and the need for collaboration between the government and the commercial space sector. Additionally, Kendall addressed tensions with China and the Air Force's efforts to deter next-generation technological threats, including the incorporation of artificial intelligence. However, he expressed concerns about the impact of potential delays in defense policy and funding due to congressional budget challenges.
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.