Ford's Electrifying Uncertainty 🤨
Good morning! Welcome to this special edition of The Work Day Dash, where we're celebrating the International Week of Happiness at Work! In a field as dynamic and fast-paced as supply chain and logistics, the pursuit of happiness at work might sound like an elusive goal. However, it's a goal that's worth striving for, as research has shown that happier employees are not only more productive but also more innovative and better equipped to handle the complexities of the global supply chain.
Join us as we embark on this journey to unlock the secrets of happiness at work! 😄❤️
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Ford's $3.5 Billion EV Battery Plant in Michigan Faces Uncertain Future Amid UAW Strike and Political Concerns
Ford has decided to halt progress on its $3.5 billion electric vehicle battery plant in Michigan amid ongoing uncertainties. The company has not made a final decision regarding the plant's future operation. The facility, intended to be located on a sizable 950-acre site near Marshall, Michigan, was expected to employ 2,500 people once it began production in 2026. This pause in construction and spending comes amidst the United Auto Workers (UAW) strike involving Ford, General Motors, and Stellantis. While Ford's spokesperson, T.R. Reid, did not specify the strike as a reason, the UAW sees this move as a concerning threat to job security. The UAW is advocating for a fair transition to electric vehicles, fearing potential job losses and decreased wages as the auto industry shifts towards electrification, as EV assembly requires less labor than traditional vehicles.
Additionally, some politicians and critics have raised concerns about Ford's reliance on "Chinese technology" for the battery plant, even though Ford was to operate the facility independently. The plant was slated to be a wholly owned subsidiary of Ford but utilize knowledge and services from the Chinese company Contemporary Amperex Technology Co., or CATL, the world's largest battery manufacturer. This decision to pause construction comes as the U.S. government has passed legislation restructuring EV tax credits, emphasizing domestic production of electric vehicle components. It is unclear how this pause in the battery plant project will impact Ford's broader plan to produce 2 million electric vehicles globally by late 2026, which includes plants in Kentucky and Tennessee built in partnership with SK Innovations.
Check out today’s featured article from CNN Business to learn more about why Ford is stopping its progress on its multi-billion dollar EV battery plant. When will they continue the work? Will this be resolved when the strike ends?
Featured Article
Ford pausing work on $3.5 billion Michigan electric vehicle battery plant | CNN Business
“ Ford is pausing work on a new, $3.5 billion electric vehicle battery plant in Michigan, even as the transition to electric vehicles has become a major sticking point in a United Auto Workers strike against automakers Ford, GM and Stellantis.”
UPS & Holiday
UPS Set to Hire Over 100,000 Holiday Workers, Matching Last Year's Numbers
UPS is gearing up for the holiday season by planning to hire more than 100,000 workers, a number consistent with its hiring levels over the past three years. These seasonal workers will benefit from higher pay compared to last year, as part of a recently approved five-year contract with the Teamsters union. Seasonal package drivers will receive an hourly rate of $23, while package handlers will earn $21 during the holiday period. This represents an increase from the previous year's hourly rates of $21 for drivers and $15.50 for package handlers.
Despite the improved pay rates, the tight job market raises uncertainty about the ease of finding these seasonal workers, according to Matt Lavery, UPS's director of global sourcing, recruiting, and onboarding. Factors such as a shortage of younger individuals with driver's licenses, particularly in areas with robust public transportation options, pose challenges in filling UPS driver positions. Nonetheless, UPS continues to promote seasonal jobs as potential pathways to year-round employment, with nearly 50,000 seasonal employees securing permanent positions in the past two years. The company has also streamlined its hiring process, allowing most applicants to receive a job offer within 20 minutes of submitting an online application.
Chic-fil-a & North Carolina
Chick-fil-A Expands Supply Chain Reach with New North Carolina Distribution Center
Chick-fil-A Supply, the distribution arm of Chick-fil-A Inc., is set to establish a new 120,000-square-foot distribution center in Kannapolis, North Carolina. This $58.3 million investment will cater to the needs of 100 Chick-fil-A restaurants in the Charlotte region, enhancing the efficient delivery of essential food and products. The facility is expected to begin operations in the third quarter of 2024, generating over 85 jobs across various roles, including drivers, warehouse staff, managers, office personnel, and more.
Chick-fil-A has been expanding its supply chain operations across the United States in recent years, with the first delivery from its company-owned distribution center made in 2019. Currently, Chick-fil-A Supply manages four other distribution centers, including a 180,000-square-foot center in Mebane, North Carolina. Earlier this year, the company announced plans to open a distribution center in Kansas in early 2024 and had previously outlined intentions to establish a $16 million distribution center in Missouri. Furthermore, Chick-fil-A has been exploring ways to reduce delivery fulfillment costs, including testing autonomous delivery vehicles in Austin, Texas, in 2022.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🛢’ Dark' Ships Deceive Locations to Move Billions in Oil Globally. A growing number of ships are manipulating their reported locations for illicit activities, potentially involving goods worth billions of dollars. These "dark vessels" engage in actions such as shipping Russian oil to evade the G7's $60 per barrel price cap, hiding tankers in Venezuelan waters, and smuggling grain from Ukraine. Satellite technology capable of detecting false location reports is revealing this deceptive behavior. Data from maritime tech firm Windward indicates a 12% rise in location manipulation among oil tankers and cargo ships in the first half of 2023 compared to the same period last year, with an 82% increase from the first half of 2021. As technology advances, it becomes easier to detect such tampering, and efforts to make ship locations public are shedding light on these activities. The European Union's recent sanctions now bar vessels that have turned off or spoofed their automatic identification systems (AIS) from entering ports.
🇪🇺 EU Electric Car Regulations Pose Billions in Costs for Carmakers. New Brexit trade rules related to electric vehicles could impose a significant financial burden on European auto manufacturers, potentially costing them £3.75 billion ($4.58 billion) over the next three years, as reported by BBC News. These rules, part of the U.K.-EU Trade and Cooperation Agreement, aim to ensure that electric cars produced within the EU primarily use locally sourced components. However, both U.K. and European manufacturers have expressed their lack of readiness to comply with these regulations. The European Automobile Manufacturers Association (ACEA) has raised concerns that these measures may lead to a reduction in EU factory output by up to 480,000 vehicles, with the resulting costs likely being passed on to consumers. The key issue at hand is the "rules of origin," intended to safeguard the European industry against inexpensive imports.
🇷🇺 Russia Continues to Depend on Europe for Oil Shipping. Russia continues to depend on European shipping to transport its oil, even as its supplies exceed the price caps set by the Group of Seven (G-7) and its allies, according to the Centre for Research on Energy and Clean Air (CREA) based in Helsinki. Approximately two-thirds of Russian crude and petroleum products are transported by vessels insured or owned in countries implementing the G-7 price caps. This reliance on European shipping indicates that Moscow still heavily utilizes the European shipping industry. The G-7 and its allies imposed caps on Russia's crude oil exports in December and on refined fuels like gasoline and diesel in February. However, the price cap has been undermined by a combination of Russia's use of Western vessels and the creation of a "shadow fleet" of tankers operating outside the jurisdictions of countries imposing sanctions.
iLevel With You 🏡
More topics for the average American household to consider…
🚗 Why Are Fatalities on the Rise Despite Advances in Car Safety? Despite advancements in car safety technology, the number of road fatalities in the U.S. has been increasing over the past decade. This concerning trend is especially pronounced among pedestrians and cyclists, with a 60% rise in fatalities between 2011 and 2022. Experts attribute this increase to several factors, including distracted driving due to smartphone use, a surge in speeding and reckless behavior, higher rates of alcohol and drug-impaired driving, and the growing presence of SUVs, pickup trucks, and vans on the road. One significant issue is that current U.S. safety ratings primarily focus on the safety of vehicle occupants, neglecting the safety of pedestrians and cyclists. Organizations like the National Association of City Transportation Officials are advocating for safety ratings to consider those outside of vehicles as well. Large vehicles, such as SUVs and pickups, are more likely to cause fatal injuries to pedestrians and cyclists due to their size and design.
🪧 UAW Expands Strikes to 38 Facilities at GM and Stellantis, Excludes Ford. The United Auto Workers (UAW) is expanding its strikes to 38 parts and distribution locations across 20 states, targeting General Motors and Stellantis. However, the union will not initiate additional strikes at Ford Motor, as the company has shown a commitment to reaching a deal. The strikes at GM and Stellantis parts suppliers will add approximately 5,600 autoworkers to the ongoing strikes at the Detroit automakers. The union has cited issues related to wages, job security, and plant closures as reasons for the strikes. GM and Stellantis have expressed willingness to negotiate and reach an agreement.
💰$1.4 Billion Committed to Enhance Rail Safety and Bolster Supply Chain. The Biden administration has allocated over $1.4 billion for railway safety and capacity enhancement projects across 35 states and Washington. These projects aim to improve railway safety, reliability, and resilience while strengthening supply chains. Some of the projects include track upgrades, bridge repairs, and improvements to railway connectivity to make routes less vulnerable to extreme weather. Notably, $178.4 million will be used to restore passenger service in parts of Alabama, Louisiana, and Mississippi along the Gulf of Mexico for the first time since Hurricane Katrina in 2005. The largest grant of nearly $202 million will help eliminate seven rail crossings in California as part of a high-speed rail project. Other grants will support rail infrastructure upgrades in Washington, Kentucky, and Tennessee.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
👮🏼♀️ Cargo Thefts Rise Nearly 60%.CargoNet has reported a significant increase in cargo thefts in the second quarter of 2023, with 582 recorded incidents in the United States and Canada. This marks a 57% rise compared to the same period in 2022. The increase is attributed largely to shipment misdirection attacks, a type of strategic cargo theft involving stolen motor carriers and logistics broker identities to obtain and divert freight. The total value of stolen shipments exceeded $44 million in Q2 2023, with an average value of $260,703 per theft. Cargo thefts involving loaded conveyances, such as full trailers, increased by 17% year-over-year. These thefts were most common in California, Texas, Florida, and Illinois. Additionally, CargoNet noted a growth in extortion and theft by conversion schemes, primarily orchestrated by organized groups in Illinois and California.
🚛 Newsom Vetoes California's Anti-Autonomous Truck Bill. California Governor Gavin Newsom has vetoed a state bill, Assembly Bill 316, which sought to ban the testing and operation of humanless trucks in the state. Newsom argued that the existing California Department of Motor Vehicles (DMV) regulations already oversee heavy-duty autonomous vehicle development since 2012 and that further legislation was unnecessary. The Autonomous Vehicle Industry Association (AVIA) applauded the veto, stating it allows safety experts to continue evaluating autonomous vehicle technology. The Teamsters and labor organizations opposed humanless trucking, fearing it would cost jobs, while AV proponents argue it will create local driving jobs.
🚚 Waabi and Uber Freight Launch Autonomous Trucking Pilot Route from Dallas to Houston. Uber Freight and Waabi have launched a commercial autonomous trucking pilot route in Texas, with plans to offer billions of miles in autonomous hauls with carrier partners over the next decade. The logistics provider and AV tech startup have inked a 10-year deal for trucks using the Waabi Driver generative AI technology to carry loads on Uber Freight's network. The pilot route between Dallas and Houston is expected to quickly expand to other key lanes in Texas and beyond, according to Waabi. The goal is to enable carriers with Waabi Driver-equipped trucks to use Uber Freight network's optimized routes, transfer hub infrastructure, and other services, as well as give more shippers a way to explore autonomous trucking.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 22, 2024, from iLevel Logistics Inc.