Not out of the woods, yet: West Coast dockworkers & ports are at a stalemate
Good morning! It’s the International Day of Peace. 🕊 Start your day with a quote:
“When things change inside you, things change around you.” —Unknown
Now let’s get to the news. Many were biting their nails last week over the railroad’s midnight-hour deal with the unions, but don’t forget about the U.S. West Coast dockworkers, either. Locked in negotiations for months, the ports and their workers are at a reported ‘stalemate’, neither willing to compromise on wage and automation issues. In what some had hoped would be resolved before peak season, looks like it will be extending into 2023.
Check out today’s featured article from Supply Chain Brain to read about the growing problem at Southern California ports and whether the unionized workers and their employers will come to an agreement before the end of the year. ☕️
Featured Article:
Port Labor Talks Stall as Worker Disruptions Grow | Supply Chain Brain
“Hopes for an early resolution to contract talks underway at U.S. West Coast ports look to be slipping away.”
Regulations & Compliance 📋
Experts slam shipping’s “outdated Jones Act” after near railroad strike highlights holes in the supply chain
The threat of a railroad strike had both railroads and unions forging a deal at the very last second, leaving many shippers breathing a sigh of relief last week. However, the near-miss left many industry experts scrutinizing just how exposed the supply chain is to further challenges, particularly highlighting the Jones Act as a “foolish law.”
The Jones Act, a provision of the Merchant Marine Act of 1920, bars cargo transported between U.S. ports over water unless the ship is built, owned, and crewed by Americans. This does not extend to cargo that is made in other countries - it only pertains to domestic products. This leaves only 93 vessels that can fall within compliance with the Jones Act and creates a window for severe disruption should any issues arise.
Inflation & Loans 💰
Wall Street embraces possible rate hikes into restrictive territory
The Federal Reserve has been raising interest rates incrementally to help fight off inflation, but it doesn’t seem to be working. The current plan is to keep the plan on track until March 2023 when it is set to reach 4.26%. The seriousness of the inflation problem cannot be understated, according to the chief economic advisor at Brean Capital, John Ryding.
Ryding has also stated he could see the Fed hiking rates up as high as 5%. Some are concerned that this tightening will have the opposite effect and cause a recession, while others say that a recession is already taking place.
Let’s Get Global 🌎
📉 They might be right. FedEx’s sales forecast was full of cost-cutting measures after Q1 profits showed poor performance. FedEx leadership then warned that the slowing business due to inflation and the aftermath of a pandemic eCommerce explosion signals a difficult journey ahead and declining shipping demand. (Quartz)
🚢 We’re going up! The Baltic Dry Index, a main sea freight index that tracks rates for ships hauling dry bulk commodities globally, jumped after a 52-week low was recorded late last month. (G Captain)
🛻 Looks like your F-150 just got a lot more expensive. Ford Motors is among the companies waiting on products to be exported through the ports currently dealing with worker strikes. Ford has warned consumers that there will be major cost hikes due to the pileup of continued supply chain issues. (CNBC)
iLevel With You
More topics for the average American household to consider…
😅 Honey, I shrunk the container! ‘Shrinkflation’ is a fun little term to describe what we suspected was true… yes, that container of ice cream did get smaller. By shrinking the amount of food or product that’s in a prepackaged container, we end up paying more for less. However, shrinkflation may have some benefits… if you look hard enough. (The Hill)
📦 Expecting a delivery?! E-commerce-focused last mile delivery provider, The Frontdoor Collective (FDC), is launching in approximately 50 different markets to expand its delivery model. Unlike FedEx Ground or Amazon, FDC uses franchises to fulfill deliveries with contracted service providers. The FDC is currently servicing Houston, Philadelphia, Boston, and Pittsburgh and is aiming for Arizona and Southern California over the coming weeks. (Supply Chain Dive)
🚗 Don’t forget to keep your eyes on the road. Regardless of numbers coming in less than the previous quarter, the number of U.S. roadway deaths from traffic collisions is still higher than in pre-pandemic years. With fewer people on the road, drivers tended to be more prone to reckless driving. From January through June of 2022, 20,175 people died in vehicle accidents. (The Trucker)
GET SMART
High Voltage electricity transmission is the topic of discussion among scientists and engineers as we progress toward a cleaner future. However, real-world data has been limited in the study of what new transmission processes can do.
Supply Chain Planning requires an agile mind and, even better, agile modular software. Composability is when a business is bull of many components, of several different sizes and shapes. Supply chain platforms often perform flexible and modular processes to demonstrate the complexity of the business.
Let’s collaborate… with robots. Supply chain leaders at the CSCMP EDGE 2022 conference in Nashville moderated a panel promoting the use of robotics in the warehouse and why we should embrace the new age of robotic collaboration instead of running away from it.
Ports 🚢
San Pedro Bay ports see loaded import volumes drop in August | Supply Chain Dive
Supply Chain Dive managing editor Edwin Lopez writes about California’s San Pedro Bay and its ports, The Port of Los Angeles and the Port of Long Beach. Both ports reported a volume drop of cargo imports in August, despite the improvements in containership congestion.
US’s Top Ports Face Calls to Go Green After ‘Unmitigated Growth’ | AJOT
AJOT contributor Sarah McGregor writes about the “unmitigated growth” at the Southern California ports and the pressure the ports are feeling to adapt more environmentally friendly practices.
3PL’s 🚛
3PL customer satisfaction levels drop by 7%, says annual report | DC Velocity
DC Velocity contributor Susan K. Lacefield writes about the findings after the “2023 Third-Party Logistics Study” was completed and why there has been a 10% drop in successful 3PL relationships as opposed to the previous year.
Owner-Operators 🚚
Confusion, adjustments follow new California AB5 ruling on owner-operators | Logistics Management
Logistics Management contributor John D. Schulz writes about the confusion carriers and drivers are experiencing in California after the controversial AB5 law takes effect.
Industry Forecast 📊
MH&L Staff shares an article explaining the industry forecast released by the National Association of Manufacturers for Q3, assuming that the challenging environment will continue for some time.
Regulations ⚖️
Senate EPW to Assess Progress as IIJA Nears One-Year Mark | TT News
TT News senior reporter Eugene Mulero writes about the Senate Environment and Public Works Committee scheduled meeting to assess progress on infrastructure law allocations.
Company Culture 🎉
Vast majority of FedEx Ground contractors have no confidence in CEO: survey | Supply Chain Dive
Supply Chain Dive reporter Max Garland writes about the results of a survey conducted by ousted FedEx Ground contractor, Spencer Patton and his organization, Trade Association for Logistics Professionals. The results show that a resounding 97% of FedEx Ground contractors do not have confidence in CEO, John Smith.
Quiet Quitting and the Supply Chain | More Than Shipping
More Than Shipping contributor Ban Akman writes about trend of “quiet quitting” in supply chain industry positions and what leaders can do to combat this and provide better support for its employees.
Rail 🚂
Railroads’ Strategy Thrilled Wall Street, but Not Customers and Workers | Supply Chain Brain
Supply Chain Brain shares an article explaining why customers and workers are still frustrated with the railroads, but Wall Street is beaming.
Sustainability ♻️
9 Keys to Drawing a Roadmap to Zero Fleet Emissions | Trucking Info
Trucking Info contributor Deborah Lockridge writes about what major companies are doing to meet their goals of zero-emissions over the coming years.
Hours of Service ⏰
FMCSA Considering Changes to ELD Rules | Trucking Info
Heavy Duty Trucking Staff writes an article describing the Federal Motor Carrier Safety Administration’s motion to improve policies on mandatory electronic logging devices.
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.