U.S. economy must brace for supply chain storm if port stoppage occurs

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Good morning! Happy July 1st! It’s a new month, are you ready for it?

The National Association of Manufacturers, otherwise known as NAM, is keeping its eye on the fraught negotiations between the International Longshore and Warehouse Union and the Pacific Maritime Association. the lack of progress has signified a possibly port stoppage until an agreement is made, and the NAM is warning the consequences of such an action would have major ripple effects throughout the U.S. economy. Nam’s recent study concludes that this would cost the economy $500 million per day.

Check out today’s featured article from MHL News to read all about the possibilities in store for the supply chain in light of a port stoppage. ☕️

Man in plaid shirt stands in a Convenience store and says, "That's the genius of ports!"

Cbc Kc GIF By Kim's Convenience via GIPHY


Featured Article:

Ports Stoppage Would Be Devastating Hit to Manufacturers’ Competitiveness | MHL News

“A new study from NAM says a stoppage could cost the economy $500 million a day and destroy 41,000 jobs.”

READ THE ENTIRE MHL NEWS ARTICLE HERE

Water Cooler Topics

🧑‍⚖️ The Supreme Court has denied the California Trucking Association’s petition to review their case against AB5 - the controversial bill aimed to redefine independent contractors in the Golden State. This move will likely end the traditional leased owner-operator business model in California, leaving many fleets scrambling to fill driver seats. The injunction will now be lifted, and trucking companies will no longer be exempt from the law within seven days. AB5 created strict criteria for a worker’s classification status, whether they can qualify as an employee or contractor.

⚡️ The North American Council for Freight Efficiency (NACFE) released a series of reports showing that all medium-duty box trucks can be electrified in some capacity, exciting electrification advocates. These reports were founded through the NACFE’s September 2021 Run on Less – Electric (RoL–E) demonstration which analyzed what could be possible regarding the electrification of commercialized trucks. The findings are aligned with points such as battery integration, driver satisfaction, and the likelihood of charging station expansion.

⚙️ The parts business is booming - but what can be done to capitalize on that? Rising demand for parts has created an opportunity for dealers and distributors to keep their shelves stocked for fleets in need. These entities should consider nontraditional parts sources, such as eCommerce sites to meet the growing demand without losing a customer due to long shipping and wait times.


Biden Says that Americans will need to deal with high gas prices until Russia removes itself from Ukraine

“As long as it takes,” was President Joe Biden’s answer to reporters in Madrid on June 30 regarding how much longer the gas prices will rise in the West. The president points to Russia and its invasion of Ukraine, saying, “- Russia cannot, in fact, defeat Ukraine and move beyond Ukraine.”

An Associated Press-NORC Center for Public Affairs Research poll released results this month showing that 85% of American adults claimed the country was on the “wrong track”. This number included 67% of Democrats who deemed economic conditions as “bad.” The White House has been working to show it is making moves to help quell the inflationary pressures on Americans by releasing barrels of oil from its reserve and attempting to tackle specific supply chain issues.

Read more from TT News ▶


AP-NORC poll finds that a staggering amount of Americans, including 8 in 10 Democrats, are worried for America’s near-future

Gas and groceries prices, a war in Eastern Europe, and deepening political divides in America have both sides of the aisle troubled. Americans are largely feeling that the White House isn’t responding appropriately to their needs as citizens.

With national dissatisfaction being a now bipartisan issue by the poll’s standards, the economy is at the forefront of most Americans’ minds.

Read more from AP News ▶


Business Strategy 💡

Holiday Supply Chains: Are you prepared? | Logistics Viewpoints

“We’ve only just entered the second half of the year and people haven’t even taken their summer vacations yet, so why are we talking about holiday supply chains now?”

FedEx to consolidate stations, delivery routes in $2B operational overhaul | Supply Chain Dive

“‘Network 2.0’ will boost collaboration between Express, Ground and Freight — three operating companies FedEx has long kept separate.”

Supply Chain News: New Book Says Its Critical for Companies, CEOs, to Put more Focus on Suppliers and Procurement | SC Digest

“In a provocative new book, four partners at Boston Consulting Group (BCG) argue that companies can transform themselves by extracting extraordinary value from their suppliers.”

SAP report: supply chains shifting to 'just in case' model | Supply Chain Digital

“Most organizations are looking to change the very nature of their supply chains in the face of ongoing global disruption, new research from SAP shows.”


Leadership 🏆

Vahak is Changing the Logistics Industry One Lorry at a Time | Entrepreneur

“As an online transport directory app, the startup enables users to do everything from online load and truck booking to growing one's own transport business network.”

Redwood Logistics Recognized as one of the Fastest Growing Companies in Chicago | Globe News Wire

“Redwood Logistics (Redwood), one of the fastest-growing supply chain and logistics companies in North America, has been named to the 2022 Crain’s Chicago Business Fast 50 list, recognizing the 50 fastest growing companies in Chicago based on five-year revenue growth.”

St Guys NHS Trust procurement head on health supply chains | Supply Chain Digital

“In April 2022, Procurement Magazine, Supply Chain Digital and Bizclik Media Group returned to London's Tobacco Dock to host our second Procurement & Supply Chain LIVE.”


Diversity 🤜🤛

Buttigieg Launches $1 Billion Pilot to Build Racial Equity in Roads | TT News

“Transportation Secretary Pete Buttigieg on June 30 launched a $1 billion first-of-its-kind pilot program aimed at helping reconnect cities and neighborhoods racially segregated or divided by road projects, pledging wide-ranging help to dozens of communities despite the program’s limited dollars.”


Driver Issues 🚛

Yellow Corp. addresses ‘driver shortage’ by adding new CDL training academies | Land Line

“In a time when many carriers are struggling to attract new drivers, Yellow Corp. is taking matters into their own hands. On June 28, the Overland Park, Kan.-based LTL carrier announced the expansion of their company-sponsored driving academies with the addition of three new locations.”


Artificial Intelligence 🤖

Hydron's mission to merge AVs and hydrogen | Fleet Maintenance

“When working for autonomous vehicle (AV) company TuSimple, co-founder Mo Chen and head of marketing Jason Wallace discovered that AI software was not the only barrier to AV adoption.”


Inflation 💸

Fed’s preferred inflation measure rose 4.7% in May, around multi-decade highs | CNBC

“Core personal consumption expenditures prices, excluding food and energy, rose 4.7% from a year ago, slightly less than expected.”

Network Association 🤝

Logility acquires supply chain modeling firm Starboard Solutions Corp. | DC Velocity

“Software builds digital twin of supply chain networks to model responses to disruptions, firms say.”

Motive, Navistar partner to boost fleet visibility | Transport Dive

“Motive has partnered with Navistar to integrate the companies’ platforms and expand data services, the fleet management software startup announced Wednesday.”


Industry Forecast 📊

Demand planning / Demand management: Winning the battle for improved forecast accuracy | Supply Chain Management Review”

“With a few simple but important metrics and process steps, your company can reap the benefits of better forecast accuracy within a few months.”


Safety 🦺

Shipping Companies and Customs Authorities Step Up Fight Against Drug Trafficking By Sea? | G Captain

“Container shipping companies and international customs authorities met earlier this month to discuss ways to step up the fight against drug trafficking by sea as traffickers continue to exploit points in the ocean liner trade to move increasingly large shipments of illicit narcotics.”

Nearly 1,300 CMVs removed from service for brake violations | FleetOwner

“During this year’s unannounced Brake Safety Day, CVSA inspected 9,132 commercial motor vehicles in the U.S. and Canada. Inspectors placed just over 14% of them out of service.”

Fleet Focus: Preparation is key to passing DOT roadside inspections | The Trucker

“Drivers are often surprised when a DOT roadside inspection turns up one or more issues, especially if those issues are of the shutdown variety.”


TMS 💻

Delivery and return logistics platform Veho expands last-mile package solution to five Midwest markets  | AJOT

“Veho, the customer-first logistics platform that powers next-day delivery for e-commerce brands, is expanding its premium last-mile delivery and returns solution further into the Midwest, with newly opened facilities in Cincinnati and St. Louis, joining previously opened facilities in Chicago, Indianapolis and Milwaukee.”


Fuel ⛽️

A good fuel economy test gets real results | CCJ Digital

“There is a fair amount of skepticism on the part of fleets when it comes to fuel economy testing.”

3 Reasons a ‘Gas Tax Holiday’ Is a Bad Idea [Commentary] | Trucking Info

“Despite diesel prices climbing new records, a temporary suspension of federal gasoline and diesel taxes is not the answer, writes HDT Editor in Chief Deborah Lockridge.”

New Fuel Taxes Kick in July 1 in Number of States | TT News

“Higher gas taxes will sweep across pumps in several states on July 1 to drive fuel prices even higher.”


Electric Vehicles 🔋

Some Countries Are Having Second Thoughts About Electric Car Mandates | Reason

“The United States should consider adopting a market-based strategy for increasing electric vehicle usage.”


Quote of the Day:

A blue container ship is docked at port, loaded with white, red, and orange containers.

“You don’t need to have a 100-person company to develop that idea.”

— Larry Page, co-founder of Google



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What does it really mean to have a "sustainable" supply chain?