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Supply Chain by the Numbers

- June 29, 2023


Supply Chain by the Numbers for June 29, 2023


West Coast Dock Workers Get Big Raise; High MPG for Super Truck 2; Amazon Crowdsourcing Delivery; Yellow Freight in Trouble



That is the increase in wages that West coast port workers fwill receive through 2028 under a tentative new contract agreement, according to report last week. Union workers will also share a one-time “hero bonus” for working through the pandemic. The deal would give dockworkers a raise of $4.62 an hour in the first year of the contract - the equivalent of a 10% wage increase - plus an additional $2 per hour in each subsequent year of the six-year contract. The last multiyear contract expired last summer, so dockworkers will receive wage increases retroactive to July 1. The dock workers already make about $200,000 per year under the previous contract.



  That is the diesel miles per gallon achieved by the Navistar Super Truck II prototype, the company announce late last week. SuperTruck II is a program from the US Department of Energy (DOE), which co-funds the developed of high MPG trucks with truck makers. The Navistar entrant achieved fuel this fuel efficiency through hybridization (battery augmentation) and a 170% improvement in freight-ton efficiency (FTE), which is the amount of energy it requires to haul cargo, among other advancements over the 2009 baseline vehicle. The typical semi-truck on the road today gets anywhere between 5-7 mpg, so 16 mph is incredibly good. Navistar gets to 16 after developing a new hybrid powertrain, relying heavily on lightweight materials, improved rolling resistance, and focusing on aerodynamics. The vehicle also uses 6.7 kilowatt solar panels, which help its battery efficiency.





That’s how much per share the stock of troubled LTL carrier Yellow Freight was going for at the end of day Wednesday, as the company fights for survival. The stock was at over $13 per share in late 2021. Yellow is remains in a standoff with the Teamsters, suing the union over the company’s efforts to restructure its operations to better compete with an array of flexible nonunion operators. The country’s third largest LTL carrier by revenue says it “likely will not survive” if the union blocks the “One Yellow” plan. The dire warning is the latest in a long string of efforts to overhaul one of trucking’s biggest and most troubled carriers. The union says Yellow is “crying poor,” but its losses are growing and its share price is at rock bottom levels.




That is how many packages per day local businesses will be expected to deliver for Amazon under its new Amazon Hub Delivery program. Under the plan, small businesses such as coffee and IT shops, florists and more can become delivery partners. Amazon would pay a small fee for each package a partner delivers, as it looks to expand its fulfillment reach. It would work like this: small shops in the program would receive packages for Amazon customers who live in the area. The shop owner or the business’ employees would then deliver those packages to those customer locations – seven days per week. Amazon indicated partners might bring in about $27,000 per year in revenue, which Axios says would translate into about $2.50 per package.

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