The electric-vehicle “industry takeover” is tripping over supply chain snarls
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Good morning, happy Monday. Is it warm where you’re at, yet? ☀️
The car manufacturing industry seems to be cooling down every second it starts to heat up. Electric vehicles were the highlight of Super Bowl commercials just a few months ago and everyone, in the public and private sectors, seems to be talking about them. But why haven’t they completely taken over the scene yet? You can blame supply chain issues for that.
Check out today’s featured article from Supply Chain Brain for one expert’s take, and why some manufacturers are warning it’s a long road ahead. ☕️
Driving Electric Vehicle GIF By South Park via GIPHY
Featured Article:
Supply Snags Threaten EV Revolution, Top Toyota Scientist Says | SupplyChainBrain
“Surging battery prices and shortages of metals and materials are likely to last for some time, Toyota Motor Corp.’s chief scientist warned, trends that could weigh on the world’s embrace of electric vehicles.”
Water Cooler Topics
🎰 Las Vegas Strip is getting a facelift! Well, technically the I-15, is an aging freeway that runs right by the Strip and is used by not only many people looking for a good time in Sin City, but also a vast swath of truckers transporting goods to the consumerism capital. Transportation Secretary Pete Buttigieg announced major changes at the Tropicana Avenue interchange, which also leads to the airport.
🤑 The Federal Reserve is fighting the good fight for the people of the United States. Battling inflationary warnings of recession have thus far been easing the country back to a safer ledge, but it’s not perfect. The strong economy benefits from raising wages and consumers continuing to spend. In a way, this inflationary period is testing the limits.
👩💼 International companies have been shown to be more likely to employ a woman in an upper-level corporate position than large or medium-sized companies. In 2022, 19% of high-level positions are led by women, as compared to 15% in 2021. The number of women in the industry however is shrinking overall, dropping to 39% from the 41% noted in 2021.
Shanghai reopens, bringing massive cargo surge to CA ports
While the port of Shanghai was technically in operation during the three-month shutdown due to Covid-19 restrictions, the operations were slowed significantly. Now that the city is getting off the ground again, some of the largest U.S. West Coast ports, like Los Angeles and Long Beach, and anticipating a flood of cargo that could be unprecedented.
The Port of Long Beach has already seen a 9.2% increase in imports in April 2022.
We can’t avoid the truth: inflation is disrupting the supply chain in a lasting way
Inflation is not a purely American problem; inflation is affecting the world on a global scale. The International Monetary Fund (IMF) reports that the average global inflation rate is 8.7 percent. Increased government spending, sky-rocketing energy costs, and changing monetary policies may be to blame… but what happens next?
Shortages 🛒
World’s Biggest Truck Manufacturer Says Chip Crunch Easing | SupplyChainBrain
“Daimler Truck Holding AG sees promising signs of moving past the prolonged chip shortage that has beset manufacturers globally, the head of the company’s Mercedes truck brand said.”
Industry Forecast 📊
CSX Turns Away Freight, Struggles to Fill Jobs | Transport Topics (ttnews.com)
“CSX Corp. is turning away freight from customers, ceding cargo business to truckers, as the railroad struggles to hire workers, CEO Jim Foote said.”
Report: Drayage rates will continue to surge in 2022 | DC Velocity
“June drayage rates are up 28% compared to a year ago, fueled by port disruptions and delays that are expected to worsen, spot market index report shows.”
Premarket stocks: 3 signs that the US economy is already losing steam | CNN Business
“Fears about whether America could fall into a recession are dominating conversations among investors and pose a risk to the Biden administration ahead of midterm elections this fall.”
Driver Issues 🚛
Survey Shows Slight Rise in Truck Drivers Seeking New Jobs | Transport Topics (ttnews.com)
“Truck drivers are increasingly more interested in switching carriers, with 37.4% saying they are looking for a new job, according to a survey released May 31.”
Chassis constraints at Port of Oakland leave trucks on their own | Transport Dive
“The chassis pit at the Port of Oakland has closed, according to multiple alerts over the past week from TraPac.”
Leadership 🏆
Cisco tops Gartner supply chain ranking for third straight year | DC Velocity
“Remainder of top five include Schneider Electric, Colgate-Palmolive, Johnson & Johnson, and PepsiCo.”
“Everyone loves a good American Dream story and today I have one for you about emergency management and logistics contracted, AshBritt.”
The next train | Seth's Blog (seths.blog)
“It’s not a luxury, it’s a choice.”
Safety 🦺
Texas superintendents want safer schools. But money and logistics stand in the way (dallasnews.com)
“Even as Republican state leaders stressed “hardening” schools and increasing security measures as a response to the state’s deadliest shooting last week in Uvalde, educators stressed the community aspect to their campuses.”
Distracted drivers ‘running rampant’ on nation’s roads, report says - TheTrucker.com
“The Governors Highway Safety Association (GHSA) and General Motors (GM) released Thursday a new report with a singular goal: Change the social norm around distracted driving to make it completely unacceptable so all road users get home safely.”
Listen to truckers about highway safety, OOIDA Foundation says - (landline.media)
“A large portion of the Midwest Commercial Vehicle Safety Summit focused on the latest technological advancements, including the potential deployment of autonomous vehicles.”
Sales 🧾
“Used Class 8 retail volumes in April were 24% lower month-over-month, according to data published by ACT Research, and down 40% year-over-year.”
TMS 🖥
Using TMS to improve carrier-shipper relationships | FleetOwner
“Today's technology has the ability to provide fleets with a better understanding of shifts in freight markets as well as the potential to help them reduce truck driver detention time.”
Artificial Intelligence 🤖
Watch: How E-Commerce Is Forcing Automation in Grocery Warehousing | SupplyChainBrain
“The trend in small-sized orders is likely to continue, and that will pose challenges for warehouse operators and e-grocers, says Colman Roche, vice president of e-commerce and retail with Swisslog.”
Regulations ⚖️
Congress Keeps Supply Chain Bill on Summer Agenda | Transport Topics (ttnews.com)
“Enhancing connectivity along freight supply chains and considering fiscal 2023 funding legislation will dominate transportation policy debates when Congress returns June 6 after its Memorial Day recess.”
Biden administration announces over $368M for rail infrastructure improvements | The Hill
“The Biden administration on Thursday announced over $368 million in grants to improve rail infrastructure in states including Georgia, Maryland, North Carolina, Kansas, Florida and Michigan.”
News Bag 🗞
This Week in Logistics News (May 28 – June 3) - Logistics Viewpoints
“One of the issues with electric cars thus far has been the life of the battery.”
Customer Relations 🤝
“Returns are a proverbial mess for all but the most accomplished retailers.”
American Eagle's logistics arm adds Saks Off Fifth, Fanatics as customers | Supply Chain Dive
“American Eagle added Saks Off Fifth and Fanatics as logistics customers for its Quiet Platforms, Jay Schottenstein, executive chairman and CEO, said in the company’s Q1 earnings call.”
Private Fleet: A key differentiator in service - Logistics Management (logisticsmgmt.com)
“Escalating fuel costs, competition for labor, and a world demanding sustainable operations is the reality all companies are faced with today.”
Cab Tech 🚛
The long road to aerodynamics | Commercial Carrier Journal (ccjdigital.com)
“Truck makers and their supply base largely shield research and development from the public (and especially competitors) until they have confidence in both the technology and the marketplace potential.”
Electric Vehicles 🔋
“Debuting a hydrogen engine is one thing. Having the fuel infrastructure in place to support it is another. Cummins is feeling bullish about both.”
Trucker’s Lounge 🧢
How one Oklahoma carrier tripled in size | FleetOwner
“Stevens Trucking also has improved safety, maximized productivity, and reduced insurance premiums after installing a distracted driving management platform.”
Trade & Border Issues 🗺
Russia may be in Ukraine to stay after 100 days of war | AP News
“When Vladimir Putin sent troops into Ukraine in late February, the Russian president vowed his forces would not occupy the country.”
Warehousing 📦
Walmart adding 4 fulfillment centers, more than 4,000 jobs | AP News
“Walmart is adding four new fulfillment centers to its existing capacity, a move that will bring more than 4,000 jobs and make next- or two-day shipping available to more Americans.”
