Amazonopoly Allegations 🧑🏽⚖️
Good morning! Welcome to the September 29th edition of "The Workday Dash," your go-to source for all things supply chain and logistics. As we celebrate National Coffee Day, we can't help but draw parallels between the invigorating jolt of caffeine that fuels our mornings and the intricate network of operations that powers the global supply chain. Just as that first sip of coffee kickstarts our day, supply chain professionals around the world are tirelessly working to ensure that products reach their destinations swiftly and efficiently.
So, grab your favorite cup of joe and join us as we explore the latest industry trends, innovations, and insights to keep you energized and informed in the supply chain and logistics world. ☕️
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Amazon's Antitrust Lawsuit Includes Allegations of Monopoly, Structural Relief, and Market Dominance
The recent antitrust lawsuit against Amazon, filed by 17 states and the FTC, is a major challenge for the e-commerce giant. It alleges that Amazon has created an illegal monopoly that harms shoppers and sellers. The lawsuit claims that Amazon lures users with attractive offers but then exploits their dependence through fees and requirements, resulting in a worse experience and higher prices.
One key question is whether Amazon could face a breakup, though discussions on this are currently labeled premature. The complaint mentions "structural relief" as a possibility. The lawsuit also brings up Project Nessie, an alleged algorithm for extracting excess profit, but many details are redacted, raising concerns about transparency. Additionally, defining the markets dominated by Amazon is a central issue. Overall, this lawsuit has significant implications for the tech industry and antitrust regulation, sparking a debate about Amazon's market power.
Check out today’s featured article from CNN Business to learn more about this giant lawsuit against Amazon, and what it will look like for the next couple of months. Will this be catastrophic to one of the biggest names and companies in the world? How many more states will file a lawsuit against Amazon?
Featured Article
5 takeaways from America’s landmark lawsuit against Amazon | CNN Business
“An antitrust lawsuit from 17 states and the Federal Trade Commission this week against Amazon represents the US government’s biggest regulatory challenge yet against the e-commerce juggernaut.”
Regulations & Compliance
Zipline's Drone Delivery Horizons Expand with Critical FAA Exemption
Drone company Zipline has secured an exemption from the FAA, allowing it to conduct commercial deliveries beyond the visual line of sight, further enhancing its capabilities for autonomous drone operations and commercial deliveries in the United States. Under FAA certification Part 135, Zipline already operates in Arkansas and Utah, with plans to launch commercial drone deliveries without the need for visual observers later this year. This exemption is a significant milestone, enabling Zipline to potentially serve a vast number of homes and millions of people across the country, ultimately leading to time, cost, and even life-saving benefits. Zipline's recent partnerships with healthcare providers and various retail and food companies have bolstered its drone delivery capabilities.
The exemption from visual line-of-sight restrictions is a crucial development for Zipline, allowing the company to scale up its delivery operations and expand its reach. This aligns with the broader trend of companies, like UPS, seeking FAA exemptions to operate drones beyond the visual line of sight as they work to establish and grow their drone delivery networks in the U.S. Zipline's innovative home delivery Platform 2 system, capable of covering a 10-mile service radius and up to 24 miles from dock to dock, is expected to play a central role in the company's future high-volume flight tests and customer deployments.
Strikes & Unions
UAW Threatens Plant Expansions Amid Contract Negotiations
The United Auto Workers (UAW) union has issued a threat to extend strikes at General Motors (GM), Ford Motor, and Stellantis plants unless substantial progress is made in negotiations by 10 a.m. ET on Friday. This ultimatum comes after the UAW previously announced the expansion of strikes at GM and Stellantis facilities, excluding Ford, citing advancements in Ford negotiations. UAW President Shawn Fain is set to host a Facebook Live event to reveal which plants will go on strike at noon on Friday if negotiations fail to improve.
Presently, these strikes involve around 18,300 workers, representing 12.5% of the UAW's 146,000 members whose labor contracts expired on September 14. Despite automakers offering generous contract terms, such as a 20% hourly wage increase, bonuses, and retained healthcare benefits, the UAW is pushing for additional demands, including a shorter workweek, a return to traditional pensions, the elimination of compensation tiers, and the restoration of cost-of-living adjustments. Rather than initiating nationwide walkouts, the decision to expand targeted strikes appears to be a strategic move by the UAW, designed to keep automakers on edge and leverage competition between them to secure better contracts, as revealed in leaked messages involving UAW communications director Jonah Furman.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🔋 Germany Pauses EV Charging Subsidy Program. Germany's state-owned bank, KfW, has suspended its subsidy program for solar-powered electric vehicle (EV) charging in residential homes after it was inundated with applications, depleting the initial budget of $317 million within just 24 hours of its launch. The program, which offered up to $10,714 per participating home, was part of the German transport ministry's efforts to boost residential energy generation and EV charging infrastructure. With over $525 million allocated for the program between 2023 and 2024, the rapid depletion of funds highlights the strong demand for such initiatives in Germany, where a significant portion of citizens are considering installing solar panels and wall boxes for EV charging. This surge in interest aligns with the broader trend of homeowners seeking sustainable energy solutions and EV charging options, reflecting Germany's commitment to clean energy and electric mobility.
🇸🇪 Volvo's Electric Truck Revolution: Progress and Beyond. The author's visit to Gothenburg, Sweden, underscores Volvo's substantial advancements in the electric and zero-emission truck sector over the past five years. From having only two experimental electric trucks in 2018, Volvo now offers a range of production-ready battery-electric trucks with impressive features like fit and finish, safety, reliability, and regenerative braking. Despite range limitations compared to diesel counterparts, these electric trucks demonstrate a compelling alternative. The article also discusses Volvo's exploration of clean fuels like hydrogen and renewable natural gas for traditional internal combustion engines (ICEs) as a bridge towards full electrification, highlighting the promising performance of an RNG-powered Volvo truck. Furthermore, it mentions Volvo's research and development efforts in fuel cell battery-electric trucks for long-haul applications.
iLevel With You 🏡
More topics for the average American household to consider…
🔌 The US Power Grid Quietly Survived Its Most Brutal Summer Yet. During the scorching summer of 2023, the U.S. power grid faced record-breaking demand due to extreme heatwaves, but it managed to avoid widespread blackouts. On July 27, the U.S. grid supplied nearly 15 million megawatt-hours of electricity, which was 1.6 times the daily output of all the world's nuclear power plants combined. However, the high demand placed immense stress on the grid, which was already dealing with challenges like aging infrastructure. The grid operators anticipated the high risk of blackouts and took several steps to prepare, such as procuring extra electricity generation and promoting energy conservation among customers. The increasing use of renewable energy sources, including wind and solar power, also helped mitigate some of the strain. Despite these efforts, the grid came dangerously close to blackouts, highlighting the need for better infrastructure and energy efficiency to ensure resilience during future extreme weather events.
📦 FedEx Trials AI-Powered Trailer-Loading Robots in Logistics Innovation. FedEx is collaborating with Dexterity AI to implement AI-powered robots for loading its trailers more efficiently. The move aims to address the complexities of loading FedEx trailers, which can involve various sizes, shapes, weights, and packaging materials. Dexterity AI's robot, DexR, employs AI software that enables it to assess loading strategies, provide a gentle touch to arrange boxes, and improve its efficiency through machine learning. FedEx's adoption of robotics for trailer loading aligns with its efforts to automate various aspects of package handling, freeing up employees for other tasks and meeting growing customer demand. This initiative comes as some companies are slowing down automation efforts due to economic uncertainty.
💰 2022 Ocean Shipping CEO Compensation is a Diverse Landscape of Rewards. In 2022, ocean shipping CEOs' compensation varied widely, with an average of $4.7 million, up 19% from 2021. This included both cash and stock components, with an average of 50% in each category. Some notable CEOs included Gary Vogel of Eagle Bulk, with $7.004 million in compensation, David Grzebinski of Kirby Corporation with $6.168 million, and Soren Skou of AP Moller-Maersk with 43.605 million Danish kroner ($6.162 million). These figures reflect the profitability of the companies they led in 2022. However, not all shipping companies disclose CEO compensation data, and some shipowners' earnings come primarily from ownership rather than salaries.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
📲 Majority of Warehouse Leaders Set to Implement RFID Technology by 2028. A survey by Zebra Technologies reveals that 58% of warehouse decision-makers plan to deploy RFID technology by 2028. The implementation includes fixed, passive, or handheld RFID readers and fixed industrial scanning solutions to better track assets, workers, and goods within the warehouse. Warehouse managers are under pressure to improve performance while adapting to changing e-commerce demands, with returns management topping the list of operational challenges. To address these challenges, 73% of decision-makers are accelerating modernization projects. Automation and technology adoption are expected to significantly optimize operations, increase visibility, and retain employees. Sustainability considerations are also influencing technology choices, focusing on reducing emissions and waste, energy efficiency, and reusable materials.
🚛 Prologis Highlights the Growing Need for Increased Logistics Space in Modern Supply Chains. A recent analysis by Prologis has revealed that modern supply chains now require 57% more logistics real estate to support $1 billion in retail sales compared to a decade ago. Approximately 800,000 square feet (SF) of logistics space is now needed, up from 500,000 SF a decade ago, to effectively support today's supply chains. In total, these supply chains encompass 1.2 billion SF and facilitate $1.4 trillion in retail sales (based on 2022 dollars), highlighting the increasing demand for logistics space despite advancements in automation and data analytics.
🇺🇸 House Policymakers Eye Supply Chain Reforms. Key policymakers in the U.S. House of Representatives are focused on ensuring the safety and efficiency of the nation's supply chain. Energy and Commerce Committee Chairwoman Cathy McMorris Rodgers emphasized the need for comprehensive supply chain legislation, emphasizing the adoption of emerging technology to secure supply chain connectivity and protect against malicious actors, particularly China. Senior Republicans on the panel are examining the pandemic's impact on supply chains and seeking to provide a stable regulatory framework that rewards innovators and entrepreneurs. Proposed legislation includes establishing a supply chain resiliency program and standards for identifying and addressing supply chain vulnerabilities. However, Republican leaders have not yet scheduled a floor vote on these measures.
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.