The Forced Labor Act goes into law on June 21; but is the supply chain ready?

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Beginning June 21, Chinese imports manufactured from the Xinjiang Province in China will be barred from passing through U.S. customs. A ban on products manufactured through forced labor and internment camps has already been enacted in the United States for years, but this ban instead singles out the province - assuming that every export in the area falls into that category.

Check out today’s featured article from Supply Chain Management Review for the details related to the Uyghur Forced Labor Protection Act, and what it could mean for the supply chain in both the short and long-term. ☕️

Man in a grocery store says, "Alright, get out." Man replies, "I'm banned?" First man replies, "You're banned."

Get Out Fruit GIF By Chris Cimino/Seinfeld via GIPHY


Featured Article:

This is going to hurt– Are your supply chains ready for the Forced Labor Act? - Supply Chain Management Review (scmr.com)

“All imports from Xinjiang Province, China will be stopped from clearing U.S. Customs on June 21.”

READ THE COMPLETE SUPPLY CHAIN MANAGEMENT REVIEW ARTICLE HERE

Water Cooler Topics

🚂 The railroad unions have yet to come to an agreement with the largest rail players, and The National Mediation Board failed to come to a settlement. The Union Pacific Corp. and BNSF Railway Co. are threatened with the possibility of a strike as they already deal with an array of supply chain issues. The Biden Administration is expected to intervene to avoid this cataclysmic possibility. A rail strike would tighten the supply of goods transported across the country.

🍼 The baby formula shortage is still stressing out many American parents. What began with the standard supply chain worn too thin by pandemic-related restrictions, was followed by a formula recall of products manufactured at Abbott Laboratories, one of the largest formula manufacturing plants in the United States. The recall came after it came to light that several babies had consumer products that resulted in bacterial infection. The FDA has been working closely with Abbott Laboratories to safely reopen operations.

🥊 Women drivers could be incentivized to partner with carriers with self-defense classes. According to a 2020 statistic from the American Trucking Association, only 7.8% of the United States’ truckers are women. One of the top reasons women do not enter the profession has been noted as a lack of safety. As carriers look to diversify and create a stronger driver pool during a tight labor market, offering self-defense courses could be a creative and exciting incentive for women to enter the field.


The Truck Parking Safety Improvement Act is gaining traction in Congress

The Truck Parking Safety Improvement Act, formally known as HR2187, is gaining traction in Congress as two more co-sponsors hopped on board. Representatives Jaime Herrera Beutler (R-WA) and Troy Nehls (R-TX) have signed on the bill, making June 2022 the month with the largest increase in co-sponsors in a single month since its introduction in May 2021.

Other co-sponsors who joined this month are Representatives Steve Chabot (R-OH) and Daniel Meuser (R-PA). The bill has now been co-sponsored by 23 Republicans and 12 Democrats.

Read more from Landline ▶


Democratic Rep. James Clyburn claims U.S. turned a blind eye to fraud regarding the COVID SBA loan program

Democratic Rep. James Clyburn is placing the blame squarely on the Trump Administration for failing to prevent fraud involving the SBA-led Covid Relief program implemented in the early days of the Covid-19 Pandemic.

Opposition claims that this opinion ignores Congress’ own responsibility in implementing the program and asks why unemployment insurance fraud is being ignored by the House’s coronavirus panel’s analysis.

Read more from AP News ▶


Fuel Tech ♻️

Behind the News: Clean-Truck Trends from ACT Expo [Video] - Fuel Smarts - Trucking Info

“What are the latest trends in the push to decarbonize the trucking industry? Is electrification the answer? HDT's editors share what they learned at ACT Expo in this episode of HDT Talks Trucking.”


Owner-Operators 🚛

Owner-operators pay tribute to fellow owner, friend Troy Huddleston | Overdrive (overdriveonline.com)

“Showtime Trucking owner Troy Huddleston, of Yale, Illinois, passed away unexpectedly on Tuesday, June 7, at the age of 54.”


Ports 🚢

Top U.S. Port Enlists White House Help to Clear Rail-Cargo Logjam | SupplyChainBrain

“The Port of Los Angeles, the busiest in the U.S., has enlisted the help of the White House to clear a backlog of rail-bound containers that’s tripled since February, taking up space on its docks and causing congestion as the operation prepares for an early peak season.”

Industry Groups Hail Ocean Shipping Reform Passage After Biden Slams 'Rip-Off' | SupplyChainBrain

“The American Trucking Association (ATA) and Consumer Brands Association (CBA) have hailed Monday’s passage of a new bill that boosts ocean shipping oversight and industry transparency.”


Industry Forecast 📊

May Cass Freight Index shows further continuation of freight shipment and expenditure trends - Logistics Management (logisticsmgmt.com)

“May’s shipment reading—at 1.235—fell 2.7% annually, which was steeper than April’s 0.5% annual decline. And May expenditures—at 4.287—were up 27.5% annually, in line with April’s 30.6% annual gain and continuing to be paced by major inflation gains.”

FedEx Delivers Changes; Seeking Seaport Space; Investors Order In | Wall Street Journal Logistics Report

“FedEx is signaling changes in its business now that founder Fred Smith has stepped down as CEO.”

Two research groups differ on May trailer outlook | FleetOwner

“One, FTR Transportation Intelligence, reports May trailer orders on par with April, while the other, ACT Research, shows net orders down 7% from the previous month.”


Trade & Border Issues 🗺

GPA sets all-time trade record in May | AJOT.COM

“The Georgia Ports Authority moved an all-time high 519,390 twenty-foot equivalent container units in May, breaking the previous record of 504,350 TEUs set in October 2021.”


Retail 🛍

U.S. retail sales see slight May decline - Logistics Management (logisticsmgmt.com)

“Commerce reported that May retail sales—at $672.9 billion—were down 0.3% compared to April, while seeing an 8.1% annual gain.”


Leadership 🏆

2022 Private Fleet of the Year: Pacific Gas & Electric | FleetOwner

“The largest regional utility in the U.S. has been preparing to convert its fleet from carbon for more than a decade.”


Business Strategy 💡

Firms Leverage Innovations to Manage Supply Chain | Transport Topics (ttnews.com)

“Trucking and logistics leaders said their companies’ investments in technology and more flexible service offerings have paid dividends during the supply chain turbulence of the past few years.”


Driver Issues 🚛

Tips to ensure uptime on urban routes | Fleet Maintenance

“Traversing through congested urban environments can wildly impact component wear and maintenance intervals.”


Maintenance & Repair 🧰

Bulk fleets explore all their equipment options | Bulk Transporter

“Bulk Transporter's 2022 Parts Purchasing Survey reveals desperation, resourcefulness when it comes to operational uptime.”

 

Inflation 💸

Ford CFO says inflation has erased Mustang Mach-E profits, but isn't hurting demand (cnbc.com)

“Ford Motor’s CFO said Wednesday that the company isn’t yet seeing consumer demand for new vehicles drop off.”

EXPLAINER: Just how high is the risk of another recession? | AP News

“Inflation is at a 40-year high. Stock prices are sinking. The Federal Reserve is making borrowing much costlier. And the economy actually shrank in the first three months of this year.”


Artificial Intelligence 🤖

The power of prediction: The rise of smart supply chains - Logistics Management (logisticsmgmt.com)

“As a logistics leader, you're under a great deal of pressure.”

A case for the value of trucking-business-process automation | Overdrive (overdriveonline.com)

“The idea that you can drive a truck and not have a boss looking over your shoulder is an outdated notion.”

Accenture & Tradeshift explore supply chain digitalisation | Supply Chain Digital

“Accenture's Maria Rey-Marston and Christophe Lemaitre of Tradeshift discuss ways to help supply chain vendors overcome barriers to digital transformation.”


Regulations ⚖️

Supreme Court Says Law Exempts Workers in Interstate Commerce | Material Handling and Logistics (mhlnews.com)

“Ruling on the arbitration issue clarifies and makes cloudy federal law at the same time.”

Congress passes shipping reform act in bid to clear port delays | DC Velocity

“Pending Biden’s signature, bill would empower Federal Maritime Commission to block “unfair business practices” by ocean carriers.”


Truckers Lounge 🧢

Gordon Food Services Conquers the Last Mile - Logistics Viewpoints

“Over the last couple of years, as the Covid pandemic has changed the way consumers interact and shop with retailers, brands, and consumer goods companies, last-mile delivery has become increasingly important.”


Fuel ⛽️

National diesel average, for week of June 13, hits another record-high - Logistics Management (logisticsmgmt.com)

“The national average for the national average price per gallon of diesel gasoline came in at $5.718 per gallon, according to data published this week by the Department of Energy’s Energy Information Administration (EIA).”


Rail 🚂

Railroad, union labor fight moves toward Biden intervention | AJOT.COM

“Major railroads, including Union Pacific Corp. and BNSF Railway Co., and their unions remain at an impasse after a government board ended efforts to mediate a settlement, a move which will likely force President Joe Biden’s administration to intervene and prevent a strike that could cripple an already-strained US supply chain.”


Electric Vehicles 🔋

Working together on scaling EVs | FleetOwner

“Electric vehicles have made great strides in recent years, but companies still are deliberating how to deploy the technology at scale.”


Safety 🦺

Emerging Standards Shield Trucks From Cyberattacks | Transport Topics (ttnews.com)

“The trucking industry is exploring numerous cybersecurity standards as advances in technologies increase the risk of attack.”


Brokerage 🚚

FMCSA seeks comment on definitions of broker, bona fide agent | Transport Dive

“The Federal Motor Carrier Safety Administration is requesting comments on the definitions of broker and bona fide agent to “take into consideration the extent to which technology has changed” the freight transportation industry, the agency announced June 10.”



Quote of the Day:

“Every day that we spent not improving our products was a wasted day.”

— Joel Spolsky, co-founder of Stack Overflow



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