Captive Shippers Unlocked 🚂🔐
Good morning! Happy National 401(k) Day! While we're all about optimizing the flow of goods, today we're taking a moment to celebrate the art of optimizing our financial futures. Just as a well-oiled supply chain keeps goods moving efficiently, a solid retirement plan keeps your financial future on the right track.
So, grab your morning coffee, and let's blend the worlds of logistics and investments in today's newsletter! 🚚
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New Proposal Gives Hope to 'Captive Shippers' for Improved Rail Service
The U.S. Surface Transportation Board has proposed a new rule that could allow companies served by a single railroad to seek bids from other railroads if their current service is consistently poor. This rule aims to address the concerns of "captive shippers" who rely on one of the six major freight railroads in North America.
To be eligible to seek competitive bids, shippers must demonstrate that their current railroad fails to deliver an average of 60% of shipments on time over a 12-week period, with the threshold later increasing to 70%. While some industry groups welcome the rule as a potential improvement to rail service, railroads express concerns about congestion and rate impacts. The rule is seen as a step towards fostering competition and holding railroads accountable for service quality.
Check out today’s featured article from AP News to read about the new proposal and what it could mean for shippers. Will the railroads fight the proposed rule?
Featured Article
“Companies that have plants and facilities served by only one railroad may soon be able to get a bid from another railroad if their current service is bad enough under a new rule that was proposed Thursday to help boost competition.”
Electric Vehicles & Network Association
Major Truck Manufacturers Launch $2-3 Billion Battery Cell Venture for Electric Vehicles
Three major truck and engine manufacturers, including Accelera by Cummins, Daimler Trucks & Buses US Holding LLC, and Paccar, have initiated a joint venture worth an estimated $2 to $3 billion to produce battery cells in the United States. The project aims to address the growing demand for electric commercial vehicles and industrial applications while creating jobs in the clean technology sector.
The partnership, which also involves Chinese firm EVE Energy, plans to build a 21-gigawatt-hour (GWh) factory, focusing initially on lithium-iron-phosphate (LFP) battery technology for commercial electric trucks. This move is expected to result in cost-effective, long-lasting, and safer batteries without the need for nickel and cobalt raw materials, enabling large-scale production.
Electric Vehicles & Network Association
Tesla and Hilton Partner to Install 20,000 EV Charging Stations at 2,000 Properties Across North America
Tesla and Hilton have announced plans to install 20,000 electric vehicle (EV) charging stations at 2,000 Hilton properties across the U.S., Mexico, and Canada starting next year. This initiative aims to meet the growing demand for convenient EV charging among travelers and further promote the adoption of electric vehicles.
While Tesla's Universal Wall Connector can charge any North American EV model, not just Tesla's vehicles, Hilton recognizes that the availability of EV charging stations has become a significant factor in driving hotel bookings, with it ranking as the second-most important search attribute for their hotels, after shuttle access for airports.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
📲 China's Potential iPhone Ban Expansion Raises Concerns for Apple. China is reportedly planning to expand its ban on iPhones in sensitive departments to include government-backed agencies and state-owned companies, posing challenges for Apple in its largest foreign market and primary production base. Several agencies have already instructed employees not to bring their iPhones to work. This move is part of Beijing's long-standing efforts to reduce foreign technology use in sensitive environments and decrease reliance on American software and circuitry. The potential expansion of the ban could impact Apple's position in a market that generates a significant portion of its revenue.
🚢 Shipping Industry Faces Challenges in Securing Carbon-Neutral Fuels for 2030 Emission Targets. The shipping industry may struggle to secure enough carbon-neutral fuels to meet the 2030 maritime emission targets, according to DNV. The sector will require a substantial portion of the global carbon-neutral fuel supply by 2030, making competition for greener fuels from other sectors fierce. To achieve emission reductions, DNV suggests that the industry should focus on energy efficiencies, carbon emission reductions beyond fuels, and alternative approaches like air lubrication systems, wind-assisted propulsion, onboard carbon capture and storage, and nuclear propulsion. Half of the ordered tonnage is now capable of using alternative fuels, reflecting an ongoing transition in fuel technology.
🇮🇳🇨🇳 Global Shift Toward Supply Chain Localization and Reshoring Gains Momentum. The global shift towards supply chain localization and reshoring is gaining momentum as geopolitical tensions, trade issues, energy security concerns, and the pandemic have exposed vulnerabilities in the global supply chain system. Companies and governments are reevaluating their supply chain strategies, with many seeking to diversify their supply chain sources and reduce dependence on a single region or country. Investment in supply chain localization and indigenization is on the rise in various industries, including technology and manufacturing, with countries like India positioning themselves as attractive destinations for supply chain diversification. However, the complexities of reshoring and rewiring supply chains require substantial investment and are expected to take years to fully implement.
iLevel With You 🏡
More topics for the average American household to consider…
👩💻 World Bank Report Highlights Rapid Growth and Concerns in Online Gig Work. A World Bank report highlights the global growth of online gig work, especially in developing countries, where it provides a vital source of employment for women and young individuals in regions with limited job opportunities. The report estimates that there are approximately 435 million online gig workers globally, with a 41% increase in demand between 2016 and Q1 2023. However, concerns arise regarding the lack of strong worker protections in the gig economy, characterized by job insecurity and limited employment rights. The report emphasizes the importance of developing better job conditions and social protections for gig workers, especially in low-income countries where the informal sector dominates. In the United States, gig workers remain a significant part of the workforce, with ongoing debates about their rights and classifications.
🔋 Small Electric Vehicles Gain Popularity Amid Growing Urban Demand. Small electric cars, reminiscent of microcars from the past, are gaining attention as the demand for cleaner urban vehicles grows. At the IAA motor show in Munich, Swiss company Micro showcased its Microlino, a compact battery-powered vehicle that can be charged via a house plug in four hours, has a range of 230 kilometers (about 143 miles), and a top speed of 90 kilometers per hour. Italian-Chinese startup XEV also presented its Yoyo, with a 150-kilometer range. These small cars are particularly suited for congested urban environments and could serve as a second family car or for city driving. However, they may not qualify for EV subsidies and could face stiff competition from other affordable electric cars.
✈️ NYT Report Highlights Frequent Near-Collisions in Aviation, Questions FAA's Response and Funding Shortfalls. A report by The New York Times sheds light on an increasing number of near-collisions and safety incidents in the aviation industry. The article, which accessed confidential safety reports from cockpit crews and air traffic controllers, reveals over 300 accounts of near collisions in a year, both on runways and during flights. The main factors contributing to these incidents are the lack of automated runway-incursion detection systems at most U.S. airports and a severe shortage of fully trained air traffic controllers. The report questions why the FAA has not installed more safety systems and why it struggles to recruit and train controllers, pointing to funding and budget constraints as potential causes.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🚗 Automotive OEMs Boost Confidence in Supply Chain Resilience, but Sustainability Challenges Persist. According to a survey by Capgemini, automotive original equipment manufacturers (OEMs) are increasingly confident in addressing future supply chain disruptions. About 61% of senior automotive industry executives reported reducing their backlogged orders by 61%, and 34% expect further reductions in the next year. OEMs are shifting away from building inventory and are instead implementing monitoring tools to better understand supply chain risks. However, sustainability remains a challenge, with less than 40% considering environmental factors in supply chain decisions, and suppliers reducing their annual investment in sustainability by 17%. Nevertheless, 56% of respondents reported improved operational efficiency through recycling car parts.
💨 Calstart Unveils Six-Step Strategy for Accelerating Charging Infrastructure for Zero-Emission Commercial Trucks. Calstart, a non-profit environmental advocacy organization, has released a report on phasing in charging infrastructure for zero-emission, battery-electric commercial trucks. The report outlines a six-step strategy for establishing charging infrastructure, focusing on priority areas first, utilizing innovative deployment strategies to address capacity constraints, and coordinating efforts between stakeholders. Calstart's approach aims to accelerate deployment, reduce infrastructure costs, and maximize co-benefits while meeting zero-emission adoption targets for commercial vehicles.
💸 Yellow Corp.'s Real Estate Auction Could Maximize Value Through Competitive Bidding. It can be a very value-maximizing process," says bankruptcy attorney George Singer about the potential bidding war for Yellow Corp.'s real estate. While Old Dominion Freight Line's $1.5 billion stalking horse offer has set a base value for the 169 terminals, the auction on October 18 could lead to even higher bids or the sale of facilities to multiple smaller bidders. The dynamic and fluid nature of auctions often results in a sum of parts beating a stalking horse bid for the whole, according to Singer.
📢 Potential UAW Strike Could Force Political Stand on Organized Labor, Including President Biden. A strike by the United Auto Workers (UAW) union against Detroit's major automakers, including General Motors, Ford, and Stellantis, could force politicians, including President Joe Biden, to take a stance on organized labor. UAW President Shawn Fain emphasized that the strike isn't the goal, but with significant differences in contract negotiations, they are running out of time. Fain's comments come amid tension between the traditionally Democratic-leaning UAW and President Biden, who has called himself a pro-union president. The UAW is withholding a reelection endorsement for Biden until concerns about the transition to all-electric vehicles, job security, pay, and organizing are addressed.
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.