The US Department of Transportation (DOT) has mandatory drug tests that any safety-sensitive employee must complete. Truck drivers are routinely tested during their employment for a variety of drugs, ranging from marijuana, cocaine and methamphetamine to oxycodone, morphine and ecstasy. One drug that seems to be missing from the DOT’s list is fentanyl. Fentanyl is a synthetic opioid that is 50 to 100 times stronger than morphine. Pharmaceutical fentanyl was developed for pain management treatment of cancer patients. Because of its powerful opioid properties, Fentanyl is added to heroin to increase its potency, or be disguised as highly potent heroin. Federal drug regulators could soon announce plans to add fentanyl to a drug testing panel that would detect use of the dangerous drug among safety-sensitive federal employees after adoption by the DOT. The intent to test for the deadly drug has been in the planning stages since 2018 but is awaiting approval of a final rule by the U.S. Department of Health and Human Services authorizing oral fluid testing and proposed revisions to allow timely changes to drug testing panels. And now on to this week’s logistics news.
Speaking of EVs, the global auto industry has committed $1.2 trillion to developing electric vehicles, providing a golden opportunity for new suppliers to grab contracts providing everything from battery packs to motors and inverters. Startups specializing in batteries and coatings to protect EV parts, and suppliers traditionally focused on niche motorsports or Formula One (F1) racing, have been chasing EV contracts. Carmakers design platforms to last a decade, so high-volume models can generate large revenues for years. The next generation of EVs is due to hit around 2025 and many carmakers have sought help plugging gaps in their expertise, providing a window of opportunity for new suppliers. Mass-market carmakers often prefer to develop EV components in-house and own the technology themselves. After years of pandemic-related parts shortages, they are wary of over-reliance on suppliers. But smaller companies say there are still opportunities, particularly with low-volume manufacturers that cannot afford huge EV investments, or luxury and high-performance carmakers seeking an edge.
And finally, extra maritime container capacity is undermining the sector’s historically high freight rates as the global economy cools down from overheated pandemic panic-buying patterns, according to numbers from Xeneta, a Norwegian ocean and air freight rate benchmarking and market intelligence platform. The trend is truest for ocean freight rates from North Europe to the U.S. East Coast, with both spot and long-term contracted prices falling by around 10% since the start of the year, Xeneta said today. That price decline has pushed long-term rates below $6,000 per forty-foot equivalent unit (FEU), while spot rates are below $6,500 per FEU for the first time since December 2021. Prior to the New Year, this trade had withstood market forces with only “soft” rates declines, compared to the dramatic falls seen on other key ocean corridors since last summer. Despite that drop, container shipping prices remain strong in a long-term context.
That’s all for this week. Enjoy the weekend, and the song of the week, Heroin, from Lou Reed’s Rock n Roll Animal live album.
The post This Week in Logistics News (January 22 – 27) appeared first on Logistics Viewpoints.