As you read this, I’ll be making my way to my son’s graduation from Officer Candidate School (OCS) at Fort Moore, Georgia. After 10 weeks of basic training and 12 weeks at OCS, he’ll be a newly commissioned officer in the United States Army.
The forecast calls for snow and ice for most of the day, so the 20 minute drive from our hotel to Fort Moore might turn into a 2 hour drive because, well, it’s Georgia and the state effectively shuts down before a single snowflake has hit the ground.
Am I allowed to bring a snow brush and ice scraper through airport security? If I were renting a car in Minneapolis, there would be one in the back seat, but I doubt they’ll have one in Atlanta.
No matter.
However long it takes, and whatever it takes to clear the snow and ice from our car, we’ll be there to salute our son and thank him for his service.
With my winter boots on, here’s the supply chain and logistics news that caught my attention this week:
- International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) Announce Tentative Agreement on New Six-Year Master Contract
- New York’s Congestion Pricing Takes a Toll on Truckers (WSJ – sub. req’d)
- Aurora, Continental, and NVIDIA Partner to Deploy Driverless Trucks at Scale
- BlueGrace Logistics Acquires FreightCenter
- Warehouse Leasing Prices Are Holding Up Despite Declining Demand (WSJ – sub. req’d)
- Forklifts Hurt Thousands of Workers Each Year. Factories Are Seeking Alternatives (WSJ – sub. req’d)
- Walmart to miss 2025, 2030 emissions reduction targets (Retail Dive)
- Shein’s Lack of Answers on China Forced-Labor Concerns Angers U.K. Lawmakers (WSJ – sub. req’d)
A Christmas Miracle in January
I guess solving the port automation issue wasn’t so difficult after all.
Late Wednesday night, the International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) jointly announced that they had reached “a tentative agreement on all items for a new six-year Master Contract.” Here’s more from the press release:
“We are pleased to announce that ILA and USMX have reached a tentative agreement on a new six-year ILA-USMX Master Contract, subject to ratification, thus averting any work stoppage on January 15, 2025,” the two sides said in a joint statement. “This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coast ports – making them safer and more efficient, and creating the capacity they need to keep our supply chains strong.”
Details of the new tentative agreement will not be released to allow ILA rank-and-file-members and USMX members to review and approve the final document.
What changed? What did each side compromise on? Did one side just say uncle?
It’s unclear at the moment since no details have been released, but assuming both sides ratify the agreement, the industry as a whole can breathe a sigh of relief. My guess is that enough constraints and conditions were placed on automation that U.S. ports will remain laggards in productivity compared to most Asian and European ports.
See you all again in 6 years!
Congestion Pricing Comes to The Big Apple
It ain’t easy or cheap being a truck driver in New York City.
As Paul Berger reports in the Wall Street Journal, “Starting this week in New York City, heavy-duty trucks must pay $21.60 each time they enter Manhattan south of 60th Street between 5 a.m. and 9 p.m. on weekdays and between 9 a.m. and 9 p.m. on weekends. The fee is scheduled to rise to $28.80 in 2028 and $36.00 in 2031.”
Here’s more from the article:
The charges add to the high costs for truckers in the New York metropolitan region, including tolls of $100 or more to cross some bridges, as well as some of the highest in the nation for insurance and labor. Stiff penalties for a long menu of infractions, including $115 tickets for double parking in neighborhoods with limited curb space and fines of $350 for idling for more than three minutes, add to the financial toll.
Delivering overnight (during off-peak hours) is cheaper, but that is not a viable option for most businesses. So, congestion pricing is a new cost of doing business in NYC. Ultimately, one way or another, consumers will end up paying the bill.
“If I can make it here, I can make it anywhere,” Frank Sinatra used to sing. But he wasn’t a truck driver, and neither are the politicians who came up with congestion pricing. If you want to take a bite of the Big Apple, it’s gonna cost ya.
And with that, have a meaningful weekend!
Song of the Week: “Too Easy” by Brigitte Calls Me Baby
