Striking Sparks: EVolution ⚡️
Good morning! In the world of supply chains, where every link plays a crucial role, it's not always business as usual. And on National Comic Book Day, we're reminded that sometimes, a little imagination can go a long way in navigating the complexities of logistics, inventory management, and distribution.
Whether you're a seasoned supply chain professional or just discovering your superpower in this field, there's something in these pages to inspire and empower you. 🦸🏻♀️💫
—————
Unpacking the Complexity of the United Auto Workers Strike and the Electric Vehicle Transition
The United Auto Workers strike is not solely a response to the shift to electric cars, as many claim. While some argue that electric vehicles (EVs) will reduce jobs due to their perceived simplicity, the reality is more complex. EVs involve a significant amount of labor in their manufacturing supply chain, from battery production to power electronics and mineral extraction.
The push for an all-EV future supported by government subsidies is causing an increase in overall labor, offshoring of jobs, and a misallocation of capital, potentially leading to economic problems and job losses. A growing number of Americans oppose the idea of phasing out gas-powered vehicles by 2035 as they become aware of the complexities involved in EV production.
Check out today’s featured article from City Journal to read more about what some are saying about the ongoing auto-worker strike and its correlation to the national EV transition. Will our country continue on this journey toward all-electric vehicles?
Featured Article
The EV Jobs Myth | City Journal
“Many claim that the United Auto Workers strike is, at core, a reaction to an “inevitable” transition to an all-electric-car future.”
Independent Contractors & Regulations
Uber and Postmates' Challenge to California's AB5 Law Awaits 9th Circuit Decision
The outcome of a case challenging California's AB5 law, brought by Uber and Postmates, is pending a decision from the 9th U.S. Circuit Court of Appeals. The case, known as Olson, argues that app-based drivers were unfairly singled out in the creation of AB5, which seeks to redefine independent contractor status, potentially impacting trucking companies.
The decision could have significant implications for the gig economy and independent contractors in California.
Electric Vehicles & Fuel Tech
Lithium and Battery Supply Chain Stabilizing for Energy Storage Systems
Prices of lithium and components in the battery supply chain for energy storage systems are becoming more stable after experiencing extreme volatility in recent years. While the prices for raw materials like lithium carbonate have calmed down, lead times for transformers and other equipment in the energy storage sector have significantly increased, causing supply chain challenges.
However, there are positive signs of prices trending downward, particularly due to a slowdown in demand in China, which is a significant hub for battery manufacturing. Despite supply chain disruptions, the industry is adapting to the new landscape of procurement and supply chain dynamics.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
✈️ Global Air Cargo Rates Hit 3-Year Low in August Amid Softening Demand. Global air cargo spot rates dropped to their lowest levels in over three years in August, hitting $2.19 per kilogram, according to Xeneta's Clive Data Services. Out of 10 major trade lanes, only China-U.S. and Southeast Asia-U.S. showed growth in the past month, with spot rates up 3% and 4%, respectively. Falling rates, coupled with growing capacity and softening demand, suggest that the air freight industry may not see a meaningful rebound in demand for at least another few quarters.
🇷🇺 Russia Temporarily Halts Diesel and Gasoline Exports. Russia has temporarily banned the export of diesel and gasoline to stabilize domestic supplies, driving up European diesel prices in an already tight global fuel market. Russia, the world's largest seaborne exporter of diesel-type fuel so far in 2023, shipped more than 1 million barrels per day from January to mid-September. The ban, which also applies to gasoline, came into effect on September 21, raising concerns about worsening global shortages of diesel fuel as refiners struggle to meet demand. This move is seen as an attempt to control rising fuel prices in Russia, which have been contributing to inflation.
🇨🇳 Challenges Faced by Global Automakers Entering the US Electric Vehicle Market. While the US electric vehicle (EV) market presents opportunities, it comes with significant challenges for global automakers. Tariffs, regulatory hurdles, safety standards, marketing costs, and political tensions make it difficult for foreign companies, especially Chinese automakers, to crack the competitive US market. Despite the variety of EV options available worldwide, barriers to entry and the dominance of domestic manufacturers pose significant obstacles to newcomers.
iLevel With You 🏡
More topics for the average American household to consider…
🔋 Navigating the EV Charging Cost Landscape: Home vs. Road Charging. The cost of charging electric vehicles (EVs) can be complex, with variations in pricing depending on whether you charge at home or on the road. Home charging is generally cheaper, costing as little as a quarter of the price of gasoline for a similar vehicle. On the other hand, DC fast charging, often used for long road trips, can be pricier than gasoline, but it may still be cost-effective for very inefficient vehicles in areas with high gasoline prices. The article provides specific examples for different EV models and regions to illustrate the cost differences.
🇺🇸 US Corporate Leaders Uneasy Over Prospects of Prolonged Government Shutdown. Corporate leaders in the United States are increasingly concerned about the possibility of a prolonged government shutdown. They fear that such an event would add more uncertainty to an already complex business environment, characterized by persistent inflation, labor strikes, and rising borrowing costs. Business executives argue that a government shutdown, amidst these challenges, would be a self-inflicted headache, hindering predictability and causing disruptions across various sectors, including government contractors, regulatory actions, permitting processes, and air traffic control. While a shutdown may not have a major impact on the stock market or GDP, it could lead to micro disruptions affecting numerous aspects of daily life and business operations.
💳 US Consumers Plan to Cut Holiday Spending in 2023 Due to Financial Stress. The survey, conducted by Trustpilot, reveals that Americans who shopped during the 2022 holiday season intend to spend 39% less on gifts this year. Rising prices and shipping costs are causing concerns, with 43% saying increased prices would deter them from shopping with a specific company, and 42% citing higher shipping costs as a potential barrier. If delivery prices increase, 64% of consumers would reduce overall spending, with 64% opting to shop in-store, and 60% limiting purchases to businesses offering free shipping. Shoppers primarily blame retailers (37%) and brands (25%) for holiday shopping frustrations rather than delivery companies. Companies failing to confirm shipments (61%), and deliveries (56%), or provide information on returns (41%) would discourage shoppers from working with them again.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🚢 Port Houston Reports 20% YoY Decline in Cargo Volumes for August. Cargo volumes at Port Houston saw a significant year-over-year decline in August, with a 20% drop to 307,624 TEUs. Last August set a record with 382,842 TEUs, making it the busiest month for container volumes at the port. Despite lower volumes, the port is continuing to invest in both waterside and landside infrastructure.
🇺🇸 Challenges and Opportunities in the Resurgence of U.S. Manufacturing. A report by industrial real estate firm Cushman & Wakefield suggests that the resurgence of U.S. manufacturing, driven by reshoring and nearshoring efforts, is facing challenges. Manufacturing vacancy currently makes up 10.3% of the country's total available space, and tight leasing market conditions make it difficult for occupiers to secure facilities. Additionally, the report highlights the need for improvements in U.S. infrastructure, especially in terms of power supply, and notes that while U.S. manufacturing employment has increased, it still lags behind national employment trends.
🚛 Navigating the Rising Challenge of Double Brokering in the Fleet Industry. The fleet industry faces the growing challenge of double brokering, where carriers illegally outsource loads to other carriers after being contracted. Small fleets, in particular, are at risk of financial losses, reputational damage, and operational disruptions due to this practice. To address this issue, small carriers can take preventative measures such as verifying load board listings, working with trusted partners, and ensuring secure payments. Additionally, leveraging technology, including digital tracking systems and online marketplaces, can enhance transparency and efficiency, ultimately helping small fleets thrive in a competitive marketplace.
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.