During my walk back from the gym a few days ago I passed by this truck in front of a local organic store here in Brooklyn, New York. My eyes widened when I read “zero emissions” and “100% electric” pasted in red on the side of the delivery truck. To my surprise and a quick Google search, Frito Lays announced in 2022 that it will deploy over 700 electric delivery vehicles in the U.S. by the end of 2023.
The vehicle deployments are expected to lower emissions by 7,052 metric tons of greenhouse gas (GHG) emissions annually, equivalent to 1,533 passenger cars removed from the road. Paired with advancements in regenerative agriculture, water-saving technology, packaging innovation, and more, the move reflects the PepsiCo division’s significant progress toward its PepsiCo Positive sustainability goals. I thought this was a very topical introduction to this week’s Supply Chain and logistics news
Canadian Railroad Work Stoppage Threatens U.S and Canada Supply Chains
Canada’s top two railroads locked out more than 9,000 unionized workers, creating an unprecedented rail stoppage that could cause billions of dollars worth of economic damage and turmoil for the North American Supply chains.
Canadian Pacific Kansas City and Canadian National railroads, the country’s two largest railways, are in disputes with the Teamsters Union.
The dispute concerns rail safety, scheduling practices, and relocation notices. The Teamsters Canada Rail Conference, which represents nearly 10,000 rail workers at the two companies, has been without contracts since the end of last year.
The stoppage is set to “cripple shipments” of grain, potash, and coal while also slowing down the transport of petroleum products, chemicals, and autos. According to the U.S. Department of Transportation, rail transport accounted for 14% of total bilateral trade of $382.4 billion in the first half of the year.
Volvo Wins Bid for 300 Electric Trucks from DSV
Announced on Thursday, Volvo received an order for 300 electronic trucks from Danish logistic firm DSV. The order is one of the largest of its kind, representing 8% of the total 3,800 electric trucks that Volvo has delivered since 2019.
Last year, truckmakers braced for a downturn in interest and investment in electric trucks. The costs of these vehicles are double those of their diesel counterparts, which has kept the transition of vehicle types slow.
The order from DSV also included 500 trucks with fossil fuel drivelines, Volvo said, adding that all trucks are planned to be delivered between now and 2026.
China Responds to revised EU EV Tariff with subside probe into EU Dairy Imports
China launched an anti-subsidy investigation into EU dairy imports on Wednesday, escalating tensions just a day after the EU revised its tariff plan for China-made electric vehicles. The EU had slightly lowered its proposed tariffs on Chinese EVs from 37.6% to 36.3%, but China criticized the move and vowed to protect its interests.
In response, China’s commerce ministry announced the dairy probe, focusing on various cheeses, milks, and creams. The investigation was prompted by a complaint from the Dairy Association of China and will scrutinize 20 subsidy schemes from several EU countries, including Austria, Belgium, and Italy. Ireland is by far the biggest exporter of dairy products to China, having sold $461 million worth of good of goods to the Asian nation last year. The EU was China’s second-largest source of dairy products with at least 36% of the total value of imports in 2023, behind only New Zealand, according to Chinese customs data.
And now for our song of the week – Little Boxes by Malvina Reynolds.
