Diesel ban Deniers ⛽️
Good morning! As we celebrate National Read a Book Day on September 6th, we are reminded of the importance of continuous learning and knowledge sharing within the dynamic world of supply chain management. Just as each chapter contributes to the development of a compelling story, every link in the supply chain plays a pivotal role in delivering goods and services efficiently.
So grab a cup of your favorite beverage, find a cozy corner, and embark on a journey of discovery as we unravel the pages of supply chain excellence! 📔☕️
————
A Trucking Company Owner's Perspective on the Impracticality of California's 2036 Diesel Ban
In this exclusive video interview on Fox Business's 'The Bottom Line,' co-owner of JKC Trucking, Mike Kucharski, provides valuable insights into the concerns and apprehensions gripping the trucking industry in the face of California's ambitious plan to ban diesel fleets by 2036. With years of experience in the logistics and transportation sector, Kucharski offers a unique perspective on the feasibility and practicality of such a bold regulatory move.
As he shares his thoughts on the potential impact of the diesel ban, viewers gain a deeper understanding of the challenges truckers are grappling with and the implications this ban could have on the broader supply chain ecosystem. Tune in to understand the real-world implications of California's diesel ban and the perspectives of those directly affected by it.
Check out today’s featured article from Fox Business to learn more about the JKC trucking owner who believes that the California diesel ban is impractical. Will the ban actually happen?
Featured Article
“JKC Trucking co-owner Mike Kucharski reacts to worries truckers feel amid California's push to ban diesel fleets on 'The Bottom Line.”
Rail & Congestion
Norfolk Southern Anticipates Weeks for Train Backlog Recovery
Norfolk Southern, an Atlanta-based railroad, is facing a significant backlog of trains following a recent service outage. The outage was attributed to an error in vendor software rather than a cybersecurity breach. The vendor's software defect during routine maintenance led to unresponsiveness in both primary and recovery data storage systems, impacting core operational systems.
While Norfolk Southern has restored its systems and resumed services, it acknowledges that the recovery of the backlog could take weeks. The railroad is collaborating with the vendor to prevent such incidents in the future and enhance its own resilience. The company is also working diligently to keep customers informed about the status of their shipments during this recovery period.
Funding & Supply
U.S. Announces $12 Billion Fund for Advanced Vehicles and Suppliers
The U.S. Energy Secretary Jennifer Granholm revealed plans for the Biden Administration to allocate $12 billion in loans and grants to automakers and suppliers, aimed at facilitating the transformation of their facilities to produce electric vehicles (EVs) and other advanced vehicle technologies. The initiative seeks to support a smooth transition for workers and communities as the automotive industry shifts towards EVs. The funding includes approximately $2 billion in grants sourced from the 2022 Inflation Reduction Act and an additional $10 billion from the Energy Department's Loans Program Office.
Notably, the grant applications will not enforce specific labor requirements, though projects with favorable labor conditions are expected to have an enhanced chance of receiving funding. In tandem with the support for advanced vehicles, the Biden administration also intends to provide $3.5 billion for bolstering domestic car battery manufacturing. This comprehensive effort aligns with President Biden's vision of cultivating a clean energy economy that benefits both auto companies and the longstanding unionized workforce, positioning the U.S. at the forefront of sustainable transportation innovation.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
💧 Panama Canal's Prolonged Low Water Delays Could Impact U.S. Gulf and East Coast Ports for Up to 10 Months. The Panama Canal is grappling with the ramifications of a prolonged drought, resulting in low water levels and substantial vessel traffic congestion, which may persist for up to ten months, as reported by Athens-based shipbroker Intermodal. Chara Georgousi, Intermodal’s Research Analyst, indicated that according to the Panama Canal Authority's recent update, water-saving measures will be enforced for the following ten months. The disruption coincides with the peak holiday season, potentially affecting supply chains as retailers gear up for heightened shipping activity to meet consumer demand. While the situation doesn't immediately threaten container shipping to and from U.S. Gulf and East Coast ports, the reliance on the Panama Canal for container shipping between these ports and Asia means that prolonged low water conditions could have more profound implications.
🔋 Chinese Electric Carmakers Forge Ahead Abroad, Triggering a Showdown with U.S. and European Auto Titans. Chinese electric car manufacturers are making a significant push into the European market, using platforms like the International Motor Show (IAA) in Munich, Germany, to showcase their presence and challenge established players like BMW and Ford in the realm of battery-powered vehicles. Many Chinese EV startups had prominent stands, press conferences, and vehicle launches at the event, demonstrating their intent to make an impact on the European market. While China's EV market has grown due to government subsidies and venture capital funding, the slowing domestic market and the appealing European market have prompted Chinese automakers to expand overseas. China's electric car companies are leveraging Europe's stringent regulations for emission reduction, such as the proposed de facto ban on combustion engine cars by 2035, as an opportunity to penetrate the European market.
iLevel With You 🏡
More topics for the average American household to consider…
💰 Proposed Overtime Rule by DOL Suggests $55K Threshold with Automatic 3-Year Updates. As Labor Day approaches, the historical activist roots of the holiday are particularly evident this year, with labor unions actively challenging working conditions across various industries. From trucking to auto manufacturing, unions are challenging worker treatment and advocating for improved labor rights. The labor movement's resurgence parallels the era from which Labor Day originated, as workers face rapid economic changes and growing income disparities between themselves and billionaire industry leaders, reminiscent of inequalities from over a century ago. With writers and actors on strike, negotiations leading to new labor agreements for UPS workers, and picket lines spanning multiple industries, the emphasis on labor rights is more prominent this year. Despite Labor Day's commercial aspect, which often includes sales and celebrations, the holiday's roots as a tribute to workers have gained prominence, reflecting the challenges workers face in the current economic landscape. The reinvigoration of the labor movement highlights the continued relevance of organized labor in advocating for worker rights and fair treatment.
🎉 Amid Strikes and Fresh Union Contracts, Labor Day Celebrates Strong Organizational Roots This Year. International distributor NRS Logistics has announced plans to construct its inaugural North American facility in Casa Grande, Arizona. The facility will encompass a semiconductor chemical and gas distribution center along with a warehouse. Expected to occupy 40 acres of land at the intersection of Ethington and Illinois roads, the site will be situated south of Maricopa-Casa Grande Highway and a few miles north of State Route 84. The initial phase is projected to commence operations by the end of the following year, generating approximately 30 jobs. Ultimately, the distribution center will create over 90 new job opportunities for the region. NRS Logistics' new facility will specialize in serving semiconductor and electric vehicle battery manufacturers, suppliers, and industrial chemical markets. The second phase of development will incorporate rail operations. The building will provide temperature-controlled storage for hazardous chemicals utilized in producing semiconductor chips and EV batteries, along with portable bulk tank storage and lift operations. This strategic expansion is anticipated to bolster Arizona's semiconductor supply chain and enhance the region's semiconductor ecosystem.
📉 Atlanta Fed President Raphael Bostic Predicts Longer Period of Higher Interest Rates. The Federal Reserve has raised its key interest rate to around 5.4% to curb inflation, but policymakers are at a critical juncture considering whether to raise rates even further or maintain the current level. Raphael Bostic, President of the Federal Reserve Bank of Atlanta, advocates for keeping the benchmark rate stable until 2024 to ensure inflation stays around 2%. Bostic acknowledges the current economic realities, including the pandemic's ongoing effects and the resilience of businesses and families, impacting traditional economic theories. He emphasizes cautiousness and anticipates a continued slowdown while inflation remains a concern. Bostic also expects to keep rates higher for an extended period to combat inflation effectively.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
✈️ Think Tank Recommends DOT Initiate National VMT Fee Pilot Program. The Eno Center for Transportation is urging the U.S. federal government to initiate a national pilot program to explore the feasibility of a vehicle-miles-traveled (VMT) fee system, potentially replacing existing federal fuel taxes. As electric vehicles and fuel-efficient vehicles become more prevalent, fuel tax revenues are declining, impacting the Highway Trust Fund. The Infrastructure Investment and Jobs Act of 2021 mandated the creation of a national pilot to test the viability of a VMT fee, but the 90-day requirement to begin the pilot has passed. The Eno report highlights the need for alternative funding mechanisms due to the challenges posed by changing vehicle technologies and emphasizes the importance of addressing these issues promptly.
🇨🇳 Congressman Hails Stoughton Trailers as an 'Inspiring Example' Amid China Trade War. The House Select Committee on the Chinese Communist Party visited the Midwest to highlight the impact of U.S. manufacturing decline due to policy failures enabling China-sponsored companies to undermine fair trade. Stoughton Trailers, hosting the roundtable with committee leaders and manufacturers, was praised as a success story in countering China's targeting of critical industries. The committee emphasized China's unfair advantages, such as subsidies and intellectual property theft, leading to a decline in American industry. Stoughton Trailers' battle against China's unfair practices was highlighted, as it successfully petitioned against CIMC, a Chinese company, but concerns remain over China skirting tariffs and subsidies. The committee underscored the importance of enforcing fair trade rules and encouraging domestic investment to compete with China's economic aggression.
🪧 UAW's Showdown with Big 3 Automakers Reveals More Confrontational Union Stance as Strike Deadline Approaches. As the contract end date of September 14 approaches, the United Auto Workers (UAW) union is demanding substantial changes from General Motors, Stellantis, and Ford, including a 46% pay raise, a 32-hour workweek with 40 hours of pay, and a return to traditional pensions. The UAW's demands have been characterized as audacious and confrontational by the automakers, who argue that the demands are unrealistic in the face of competition from Tesla and lower-wage foreign automakers in the electric vehicle transition. The gulf between the two sides could lead to a strike, which could further increase vehicle prices. The UAW has expressed a willingness to strike if a fair contract isn't reached by September 14. The union's members have authorized the leaders to call a strike, and the Canadian auto workers have also designated Ford as their target for a strike. The automakers have countered that the union's demands are baseless and that they're seeking a deal that allows them to invest in the future.
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.