Automating Automakers 🚗🚛
Good morning! Welcome to the September 20th edition of "Workday Dash," your go-to source for all things supply chain and logistics! As the final days of summer wind down and we prepare to usher in the official fall season, the world of supply chain management is in a state of dynamic transition. With just a few days left until autumn's arrival, this issue is brimming with insights, trends, and strategies that will help you navigate the shifting landscapes of logistics and distribution.
So, grab your coffee, settle in, and let's dash into the world of supply chain excellence! 🍂☕️
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Shifting Gears: Autonomous Vehicle Experts Turn to Self-Driving Trucks
Bryan Salesky, Peter Rander, and Brett Browning, experienced figures in the field of autonomous vehicle development, have recently made a significant shift from self-driving cars to self-driving trucks, marking a notable pivot in the industry. This transition underscores the formidable challenges of achieving fully autonomous vehicles and suggests that automating trucks on highways may be a more achievable goal compared to solving the complexities of urban traffic automation. According to Dimi Astropolous, a senior scientist at Carnegie Mellon's Robotics Institute, the focus on autonomous trucking is gaining traction due to its practicality, with the shortage of truck drivers expected to double by 2031 and the growing demand for truck-based shipping fueled by e-commerce. However, the commercial success of this approach remains uncertain, leaving experts pondering how these ventures will ultimately monetize their investments.
Salesky and his team recently launched Stack AV, a driverless truck company backed by a substantial investment from SoftBank, signaling greater potential for success in the autonomous trucking industry. While pioneers like Stack AV, Aurora, and Locomotion explore this frontier, some experts remain skeptical about the possibility of transferring technology from trucks to cars. Aurora, another prominent player in Pittsburgh's autonomous trucking sector, is set for a commercial launch next year, emphasizing the possibility of applying its software to both trucks and cars. Despite the complexity and high stakes of autonomous trucking, safety and regulatory approvals remain paramount, and the industry's dedication to addressing these challenges will play a pivotal role in its future. As the landscape evolves, pioneers like Stack AV are shaping the supply chain industry and paving the way for transformative innovations beyond traditional transportation models.
Check out today’s featured article from TT News to learn more about self-driving cars and self-driving trucks and why they are gaining so much popularity. Will there be a surge of autonomous trucks in the future like there has been with cars?
Featured Article
Driverless Carmakers Are Pivoting to Trucks | TT News
“Automating Trucks and Transportation on Highways Is a More Realistic Goal for AVs.”
Strike & Contracts
UAW's Ultimatum: More Strikes Loom Over Auto Giants
The United Auto Workers (UAW) union has threatened to initiate more strikes at General Motors, Ford, and Stellantis plants if substantial progress is not made in negotiations by noon ET on Friday, according to UAW President Shawn Fain. This announcement comes shortly after the union initiated targeted strikes at assembly plants for the Big Three Detroit automakers, affecting approximately 12,700 workers. Fain emphasized that autoworkers have been patient and are no longer willing to wait for progress in negotiations. Unlike the original contract deadlines, Fain did not specify that tentative agreements must be reached to avoid additional strikes; he only mentioned "serious progress" without providing further clarification.
Currently, the strike impacts workers at GM's midsize truck and full-size van plant in Wentzville, Missouri; Ford's Ranger midsize pickup and Bronco SUV plant in Wayne, Michigan; and Stellantis' Jeep Wrangler and Gladiator plant in Toledo, Ohio. The union has named these work stoppages "stand-up strikes," a reference to the historic "sit-down" strikes of the 1930s. The approach involves selective strikes at key plants, which can disrupt production at other facilities due to parts shortages. Despite automakers offering record deals, including approximately 20% hourly wage increases and various bonuses, the union's key demands, such as 40% hourly pay increases, a reduced workweek, traditional pensions, and the elimination of compensation tiers, remain unmet.
GOP & Buttigieg
Transportation Secretary Buttigieg Faces Congressional Scrutiny Amid Infrastructure Debate
Transportation Secretary Pete Buttigieg has been actively promoting the Biden administration's infrastructure initiatives, emphasizing the progress made on various projects, including the Infrastructure Investment and Jobs Act (IIJA). While many Senate Democrats support Buttigieg's efforts, House Republicans have expressed concerns about what they perceive as a "woke, socialistic left-wing agenda" within the Department of Transportation. This division has led to increased scrutiny, with Buttigieg scheduled to testify before the House Transportation and Infrastructure Committee on September 20th.
The hearing aims to provide lawmakers with an opportunity to assess the implementation of the IIJA, gain insights into transportation safety programs, and address ongoing supply chain issues. Buttigieg's appearance before the committee coincides with strikes by unions associated with domestic automakers, ongoing safety concerns in the transportation industry, and the looming possibility of a partial federal government shutdown due to disagreements over federal spending.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🇩🇪 Germany Has Transformed From an Economic Powerhouse to a Downturn. Germany, known for its economic prowess, is currently facing a stark reversal of fortune. While in previous years, the country consistently enjoyed economic success, particularly in high-end product markets like luxury cars and industrial machinery, it is now experiencing a troubling downturn. Germany's economy heavily relied on exports, with approximately half of its economic activity driven by international trade. However, the situation has drastically changed, and Germany is now labeled as the worst-performing major developed economy globally. Both the International Monetary Fund (IMF) and the European Union (EU) anticipate economic contraction in Germany this year.
🚢 Europe Sets Course for Stringent Emissions Legislation Impacting Shipping Industry. Ships transporting goods in and out of the European Union will soon face significant emissions-related costs as they join the bloc's Emissions Trading System (ETS) starting in January 2024. This means that large vessels will be required to pay for their carbon emissions, with some major freight companies, such as MSC Mediterranean Shipping Company and A.P. Moller-Maersk, potentially facing costs reaching hundreds of millions of dollars. While this marks the world's first large-scale carbon charge for international shipping and aligns with the EU's environmental goals to combat climate change, the fees are not expected to immediately drive a shift towards cleaner marine fuels.
iLevel With You 🏡
More topics for the average American household to consider…
✈️ Decoding the Nightmarish Boarding Process. The boarding process for flights has become increasingly chaotic and inefficient, and this has largely been by design to encourage passengers to pay for priority boarding and other services. Airlines recognized that they could increase profits by charging fees for priority boarding and checked bags. This led to more passengers carrying bags to avoid fees and disrupted the efficiency of the boarding process. To further maximize revenue, airlines introduced different boarding zones and groups, creating more segments of passengers and slowing down boarding. Aircraft have also become larger and more densely packed, resulting in more congestion during boarding. While airlines have experimented with different boarding methods, none have proven to be optimal.
🚗 House Passes Bill to Counter California's EV Mandate. The House of Representatives has passed H.R. 1435, the Preserving Choice in Vehicle Purchases Act, which aims to prevent the EPA from allowing California to limit the sale or use of new internal combustion engine vehicles. The legislation also requires the EPA to revoke any such authorizations previously granted by the Biden administration. The bill now moves to the Senate for consideration. California's efforts to accelerate the transition to electric vehicles have faced criticism for increasing costs, eliminating popular vehicle models, and creating potential safety concerns. Supporters of the legislation argue that it aims to protect consumer choice and prevent a single state from dictating nationwide market choices.
💧 Panama Canal Limits Ineffectual in Halting Rate Slide as Shipping Lines Increase Capacity. Despite Panama Canal transit restrictions and efforts to curb capacity, carriers have been adding approximately 20% of incremental capacity on the Asia-US East Coast route since the end of August. The average capacity deployed over the past five weeks reached 246,000 TEUs, compared to 204,000 TEUs in the previous five weeks. However, capacity utilization has dropped to 85%, and freight rates have fallen by $1,000. These developments indicate significant challenges for the shipping industry, particularly in the transpacific market, where rates are eroding rapidly, and carriers are reluctant to cut capacity. The Panama Canal's load limits, implemented due to lower water depths, continue to affect cargo volumes, exacerbating supply overcapacity issues.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🔋 Volvo Prioritizes BEVs to Reduce Carbon in U.S. Trucking. Volvo Trucks believes that battery-electric vehicles (BEVs) will be the main technology to transform the trucking industry in North America and globally. The company has sold over 6,000 BEVs in 42 countries, representing about half of the heavy-duty market share. Volvo Trucks aims to have 50% of global truck sales be electric vehicles by 2030 and 100% to be net-zero-emission vehicles by 2040. While BEVs are the primary focus, Volvo is also exploring fuel-cell electric and internal combustion engine (ICE) powertrains that run on fossil-free fuels as complementary technologies. The company believes that battery technology will continue to improve, adding more range for heavy-duty trucking operations. Charging and refueling infrastructure development will also play a crucial role in the success of these technologies.
🌊 Opinion: EPA Must Stop Unsafe and Costly California Maritime Mandate. The California Air Resources Board (CARB) has issued a mandate that tugboat operators must upgrade their engines with unapproved Diesel Particulate Filters (DPFs) within six months. While CARB's goal of improving air quality is commendable, this directive raises safety concerns as the DPFs lack Coast Guard approval and certification from recognized maritime safety experts. The rushed installation of unproven DPFs poses safety risks, and the Coast Guard has voiced concerns about their reliability in the marine environment. CARB is requesting an EPA waiver to enforce this rule, but federal leaders should not overlook the potential consequences of these rushed installations, considering past incidents of truck fires linked to DPFs. The safety of mariners and the nation's supply chain are at stake, as putting commercial harbor craft out of business will congest vital ports like Los Angeles and Long Beach. CARB should wait for independent verification of DPF safety before implementing this rule, and lawmakers should prioritize mariner safety and the economy.
💪🏼 EV Charging Infrastructure Requires Urgent Upgrades to Support Auto Industry Transition. Automakers are investing heavily in electric vehicles (EVs), but surveys show that Americans are hesitant to adopt them, largely due to concerns about charging infrastructure. These concerns include a lack of public charging stations, charging logistics, and the purchase price of EVs. While most EV owners charge their vehicles at home, public charging is essential for longer trips. Tesla's proprietary Supercharger network has been successful and reliable, but other charging networks, often based on the Combined Charging System (CCS), have faced issues with reliability and availability. Efforts are underway to standardize charging connectors, and various automakers, including Ford and GM, are collaborating with Tesla to improve charging access for their EVs. The federal government is also providing subsidies to expand EV charging infrastructure, but challenges remain in ensuring convenient, affordable, and accessible charging options nationwide.
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.