The trucker & cannabis problem

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Good morning - need a little something to relax? 💨

Well if you’re a truck driver, you might be hesitant to pick up cannabis in any form… even if you are a resident of one of the 18 states that have legalized recreational marijuana use (or of another 37 that allow medical use). That simply won’t matter if you have a random drug test - cannabis can show up a week after usage.

Check out today’s featured article from POLITICO for the latest on the truck driver predicament. ☕️

Man makes "rock on" symbol with hands and says, "What the truck?"

Tv Land Wtf GIF By Throwing Shade via Giphy


Today’s Featured Article:

Cannabis confusion: Thousands of truckers taken off the job amid supply chain woes | Politico

“The Biden administration is vowing to put more commercial truck drivers on the road to help ease the supply chain snarls plaguing the economy.”

READ ENTIRE POLITICO ARTICLE HERE

Water Cooler Topics

⛽️ $1k per truck for a full tank. It isn’t an unusual story these days. Matrix Expedited Service is ringing the alarm, explaining that their 200-gallon trucks are guzzling not just gas, but money. Even idling, they burn about one gallon of diesel.

⚙️ Javelin production has Lockheed speeding up. These anti-tank missiles are expected to increase in production from 2,100 to 4,000 annually. War has a way of upping the machinery production, doesn’t it?

🪖 An army veteran and his brother had a dream. Andy Mattingly co-founded PACE Field Services LLC. in 2017 in the city of Odessa, Texas. PACE stands for “Positive Attitude Changes Everything”, and that positive attitude has only helped the business excel.


Fragile supply chains may still be threatened by trucker protests

Truck displaying a Canadian flag and a banned saying "Farmers grow it, truckers move it."

Photo by Kirk Slow on Unsplash

The trend of trucker protests in early 2022 by North American truckers, mainly due to COVID-19 mandates, resulted in traffic jams in a handful of cities across the United States and Canada. But the question of whether or not these protests precede a legitimate, long-term issue to an already-strained supply chain is questionable at best.

Read here for more from Supply Chain Brain.


Your favorite Kraft Heinz products are heading to the metaverse

Kraft Heinz is using the now-infamous metaverse to help get some of the star products such as Velvet cheese, Lunchables, and fancy ketchup on supermarket shelves this summer. In April, Kraft Heinz publicized its agreement with Microsoft to assist in strengthening its supply chain with automation to hasten operations and duplicate the company’s facilities in the digital realm.

Read here for more from CNN.


The Latest On…

Fuel ⛽️

Truckload linehaul spot rate drop accelerates under pressure from surging diesel prices | Freightwaves

“FreightWaves’ Future of Supply Chain summit is being held this week in Northwest Arkansas, the epicenter of North American supply chains.”

Trucking company paying $1,000 in gas per truck with diesel prices more than $5 a gallon | NBC 25 News

Matrix Expedited Service says they are paying about $1,000 per truck to fill up with diesel prices at more than $5 a gallon.”


Ports 🚢

Port Labor Talks Pose New Complication for Supply Chain | The Wall Street Journal

“Negotiations over a new contract for 22,400 dockworkers at 29 West Coast ports could take months to resolve, raising more concerns for U.S. importers and exporters.”

Port labor talks collide with supply chain crunch | CalMatters.org

“Plan to buy something online in the next few months? Then you have a stake in high-intensity negotiations set to begin Tuesday between 22,000 dockworkers and the shipping companies that do business at 29 West Coast ports accounting for nearly 9% of the United States’ gross domestic product.”


Network Association 🤝

Forward Air Acquires Edgmon Trucking to Grow West Coast Intermodal Drayage Operations | Yahoo Finance

“Forward Air Corporation (NASDAQ: FWRD) (the "Company" or "Forward") is executing a growth strategy that involves organic infrastructure investments, such as the ongoing LTL network expansion, and inorganic investments, including acquisitions of complementary businesses.”


Trucker’s Lounge 🧢

Will Truckers’ Protests Be the Thing That Finally Breaks Supply Chains? | Supply Chain Brain

“The slew of protests earlier this year by U.S. and Canadian truckers against COVID-19 protection measures caused some annoying traffic jams in a handful of cities. But whether they signal a serious, long-term threat to an already-challenged supply chain is questionable.”

Army Veteran and his brother work hard to grow local trucking company | News West 9

PACE Field Services LLC is a trucking company that was started in 2017 by Andy Mattingly.”


Artificial Intelligence 🤖

Supply Chain Transparency And Sustainability Outshine Short-Term Profits | Forbes

“According to WHO Director-General Tedros Adhanom Ghebreyesus, some vaccines have been “diverted and reintroduced into the supply chain” unlawfully.”


Fuel Tech ♻️

The Energy Industry’s Supply Chain Dilemma: Collective Pain Calls For Collective Action | Forbes

“Collective Behavior has gotten a bad rap. When sociologist Franklin Henry Giddings coined the term more than 100 years ago, he described it as the actions that a loosely organized group of people might engage in.”


Manufacturing ⚙️

Manufacturers ramp up reshoring to avoid supply chain setbacks | MiBiz

“Facing widespread supply chain disruptions over the past two years, manufacturers across the U.S. are increasingly sourcing components closer to home to bolster resilience and ensure product reliability.”

 

Industry Forecast 📊

Freight Trucking Market Worth USD 4032 Billion by 2026 Witnessing a CAGR of 5.9% - Report by Market Research Future (MRFR) | Yahoo Finance

“According to a Comprehensive Research Report by Market Research Future (MRFR), “Freight Trucking Market Information by Vehicle Type, Cargo Type, End-User, and Region - Forecast till 2026”, the market is estimated to grow at a CAGR of 5.9% CAGR to reach USD 4032 Billion by 2026.”

Missouri trucking company shuts down after USPS cuts back mail-hauling contracts | FreightWaves

“Rooney Trucking cites ‘prior cuts to service from USPS’ in bankruptcy filing.”

Will the Trucking Boom Be Long Haul? | Arkansas Business

“Arkansas’ public trucking companies reported strong first-quarter results fueled by strong demand for freight, but analysts voice mixed views about whether that demand will continue.”

Some good news for supply chains: 'Fluidity has improved,' BofA finds | Yahoo Finance

“Trucking demand seems to be decreasing: Shippers' outlook on rates, capacity, and inventory levels are reaching levels not seen since the summer of 2020, when the pandemic lockdowns sent freight volumes downward.”


Business Strategy 💡

Are Trucking Companies Planners or Reactors? | Trucks.com

“Do truckers think about the future when planning their businesses, or do they just expand whenever they’ve got cash to burn? The answer to this question has sweeping implications for the freight market.”

Lockheed, aiming to double Javelin production, seeks supply chain ‘crank up’ | Defense News

“Lockheed Martin aims to nearly double production for Javelin anti-tank missiles from 2,100 to 4,000 per year, but it needs the supply chain to “crank up,” according to its chief executive.”


Tech 📟

Kraft Heinz wants to solve its supply chain problems — in the metaverse | CNN Business

“Kraft Heinz is using the metaverse to help get Lunchables, Velveeta and ketchup onto shelves faster.”

How Goldman Sachs uses tech to ease supply-chain friction | American Banker

“As banks and technology firms flood the market with tools to modernize corporate payments, Goldman Sachs is attempting to make it easier for enterprises to directly connect to multiple suppliers.”


Trade & Border Issues 🗺

Labor secretary seeing ‘potential' supply chain issue caused by China | Fox Business

“Responding to a question on the White House’s initiative to bring down inflation, U.S. Department of Labor Secretary Marty Walsh argued government spending won’t be the next contributor to rising consumer prices on "Varney & Co." Friday.”

Trade associations are making a comeback as industrywide threats loom | Fortune

“Cracks and fissures in global supply chains existed before the pandemic. Many of these weaknesses have been exposed during the pandemic, and supply chains are buckling under the strain.”


Medical ⚕️

Putting the Patient at the Center of the Pharmaceutical Supply Chain | Supply & Demand Chain Executive

“With so much at stake, the pharmaceutical supply chain needs special care and attention. “

Tesla will cover transportation costs for employee abortions. | New York Times

“Tesla is covering transportation costs for employees to get out-of-state abortions, joining the likes of Citigroup and Yelp as various state regulations have limited access to abortion.”


Quote of the Day:

Heavy duty truck hauling on a freeway. In the background are mountains.

“What do you need to start a business? Three simple things: know your product better than anyone, know your customer, and have a burning desire to succeed.”

— Dave Thomas, Founder of Wendy’s




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The Daily: May 9, 2022