Imports manufactured by forced labor in China set to be banned June 21st
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Good morning, and happy Tuesday!
Human-rights abuses in China are the subject of heated debate by corporate lobbyists and the Biden administration. On June 21st, a law is due to ban imports made in Xinjiang, a manufacturing hub in china known for forced labor and detention camps. However, the United States government hasn’t made clear how this law will be enforced…
Check out today’s featured article from Supply Chain Brain for the complicated future ahead for the supply chain. ☕️
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Featured Article:
U.S. Crackdown on Forced Labor in China Risks Further Supply Chaos | SupplyChainBrain
“Pandemic and war have upended American supply chains. The next shock may come from the U.S. campaign against human-rights abuses in China.”
Water Cooler Topics
👩💻 Hybrid work is the future of the supply chain, and many companies are embracing the business model. Blending in-person and remote work has been ushered to the forefront because of the pandemic, but this method of business was already on the horizon. To remain competitive in the industry, Gartner argues that companies evolving from a location-centric to a human-centric model will thrive in this new world.
💸 According to a March 2022 Gartner survey, 63% of companies are planning to make compensation adjustments for their employees to help battle the growing inflation issue. The survey also suggests that U.S. employee voluntary turnover is likely to leap to nearly 20% in 2022. Creating better compensation strategies is one of the prime ways employers can retain valuable employees.
⛈ Hurricane season is here, and trucking companies in the southeast should start preparing for anything. DAT Freight and Analytics is warning the trucking industry that while supply and demand as the public prepare for big storms, freight capacity fluctuates. The 2021 Atlantic hurricane season is likely to go down as one of the most expensive in history for the supply chain.
Smaller labor pool creates a recruitment race for the best talent
Logistics managers are on the hunt for talent to add to their companies, but the base for recruitment has grown tighter. Strategy is key for hiring staff; just “anyone” won’t fill the positions.
A recent “Talent and Labor Study” from Modern Materials Handling revealed that warehouse workers, transportation and logistics managers, warehouse managers, and supervisors are at their highest demand.
Focusing on teamwork means watching out for these red flags
Teamwork is a fragile feat. Ineffective leadership leads down a road where a team can fall apart, and experts are pointing out the top three red flags to watch out for.
Mismanagement, lack of initiative, and allowing a “power of attorney” attitude will overwhelm a team to destruction.
Driver Issues 🚛
Residence Alone Doesn't Make Driver Subject to Washington Wage Laws - Drivers - Trucking Info
“A court ruling was good news for fleets that don't operate in Washington State but do employ drivers who live there.”
Truck Driver Reviews Top Most Influential Factor in Choosing a New Job - Drivers - Trucking Info
“About 72% of drivers surveyed said the most influential factor when choosing a carrier to drive for is online reviews from other drivers.”
Industry Forecast 📊
Intermodal is Just the Ticket - Inbound Logistics
“With rail facility and infrastructure upgrades nailed down and intermodal network improvements on track, these ports and sites are riding high on intermodal's advantages.”
“The domestic trucking industry transports nearly 75% of U.S. freight by tonnage.”
“The reading for the report’s key metric—the Services PMI (formerly the Non-Manufacturing PMI)—came in at 55.9 (a reading of 50 or higher signals growth) was down 1.2% from April, matching the March to April decrease.”
Supply chains in the age of scarcity - Supply Chain Management Review (scmr.com)
“A more entrepreneurial mindset among supply chain managers will be required going forward.”
Fruehauf begins U.S. trailer production—again | FleetOwner
“With a new 125,000-sq.-ft. manufacturing facility in Kentucky, the new business can trace its legacy back more than 100 years to August Charles Fruehauf, who is credited with inventing the semi-trailer.”
Fuel ⛽️
Jones Act ships competitive for US fuel exports as freight soars | AJOT.COM
“The global search for fuel after Russia’s war has thrust the US Gulf Coast into the role of a main supplier to the world, driving a new surge in demand for tankers to ship gasoline and diesel.”
Will only the strong survive historic fuel-price highs? | Overdrive (overdriveonline.com)
“President Biden admitted something of a defeat on Wednesday, losing any semblance of optimism in fighting runaway fuel prices and other inflation.”
US Boosts Biofuel Quotas as Gas Prices Surge | Transport Topics (ttnews.com)
“The U.S. is ordering refiners to boost the use of biofuels such as corn-based ethanol, as the Biden administration tries to strike a balance between competing political and economic pressures while gasoline prices soar.”
Understanding fuel surcharges is key to surviving price swings | Overdrive (overdriveonline.com)
“There are no rules covering fuel surcharges. As with freight rates, anything goes.”
Leadership 🏆
Roadrunner Executive Dave Renfrew Wins Recruiter Award | Transport Topics (ttnews.com)
“Roadrunner Vice President of Capacity Dave Renfrew was named recruiting professional of the year during an event June 3.”
What are things like around here? | Seth's Blog (seths.blog)
“Industries are often held together by unspoken hierarchies, signposts on the road to achievement.”
Covid-19 😷
China’s Shanghai covid lockdown gives ocean carriers a chance to unwind delays | DC Velocity
“But Project44 says those gains are threatened by variables like Russia-Ukraine conflict, soaring interest rates, and West Coast contract negotiation.”
Human Resources 📝
ASE benchmarking survey show techs getting younger, need more training | Fleet Maintenance
“Coming out of the pandemic springs a younger workforce with a desire for more in-person training.”
Stocks 📈
Amazon’s stock has split and trading begins Monday | Fox Business
“Amazon shares rallied Monday following the retail giant’s 20-for-1 stock split approved by shareholders last month.”
Inflation 💸
Inflation divide: The wealthy splurge, the poorest pull back | AP News
“Americans at the low end of the income rung are once again struggling to make ends meet.”
Sales 🧾
May Truck Orders Remain Constrained by Supply Chain - Equipment - Trucking Info
“Class 8 truck orders remain down from last year as truck makers struggle with supply-chain issues.”
Safety 🦺
Container depot fire spotlights Bangladesh industrial safety | AP News
“Authorities in Bangladesh struggled Monday to determine the cause of a devastating fire that killed at least 41 people, including nine firefighters, and injured more than 100 others at a shipping container storage depot, as experts raised concerns over the country’s industrial safety standards.”
“The Motor Carrier Safety Assistance Program provides grant funding to state and local law enforcement and other government agencies for safety inspections of trucks and buses and other activities.”
Electric Vehicles 🔋
Solid Power begins pilot production of solid-state EV battery (cnbc.com)
“Solid Power said it has begun pilot manufacturing of solid-state EV batteries for internal testing.”
Carmakers Feel Chip Crisis Easing as Global Growth Slows | SupplyChainBrain
“The global semiconductor shortage that’s bogged down the auto industry for almost two years is showing signs of easing, at least for now.”
Tesla Faces Increase in Complaints Over ‘Phantom Braking’ | Transport Topics (ttnews.com)
“Tesla Inc. is facing stepped-up scrutiny from U.S. regulators who have received 758 complaints of cars made by the company that suddenly brake at high speeds, more than double the number of reported incidents earlier this year.”
Regulations ⚖️
Speed limiter comments answer the wrong question | Commercial Carrier Journal (ccjdigital.com)
“My favorite animated talking bunny, Thumper, (sorry Roger Rabbit and Bugs) once said, ‘If you can't say something nice, don't say nothing at all.’”
FDA Prepares to Broaden Traceability Requirements for Food Supply Chains | SupplyChainBrain
“The U.S. Food and Drug Administration is cracking down once again on food producers, with a new and tougher requirement for product safety and traceability.”
Fuel Tech ♻️
Cutting Emissions Through Better Transportation Planning - Logistics Viewpoints
“Oracle Fursion Cloud Transportation Management offers a solution that allows transportation planners to see estimated emissions – carbon dioxide, nitrous oxides, and particulate matter – before a trip is executed. Transportation is, of course, a major source of green house emissions.”
Warehousing 📦
Saddle Creek Logistics to open Las Vegas DC | DC Velocity
“3PL expands nationwide footprint to more than 30 million square feet with the opening of the sixth location in the western U.S.”
Trade & Border Issues 🗺
China's Latest Reopening May Make U.S. Port Congestion Worse - More Than Shipping
“As Shanghai emerges from a two-month long lockdown, pent-up demand may continue to flood the already congested Southern California ports.”
Oil Tankers Make Rare Mid-Atlantic Switch Of Russian Crude Oil (gcaptain.com)
“Shippers of Russian crude are turning to unusual methods to move cargoes displaced from Europe over much longer distances to new customers.”
Podcasts 🎙
“For years, podcasts have been delivering high-quality content to businesspeople around the world.”
Company Culture 🎉
The world's biggest four-day work week pilot starts in the UK | CNN Business
“Thousands of UK workers are starting a four-day work week from Monday with no cut to their pay in the largest trial of its kind.”
Musk threatens to walk away from Twitter deal | AP News
“Elon Musk is threatening to walk away from his $44 billion bid to buy Twitter, accusing the company of refusing to give him information about its spam bot and fake accounts.”
