Dynamo Dispatch (01/05/23)
Issue 235 | Zipline, CarbonChain, Everstream
Dynamo Dispatch. A weekly update from Dynamo Ventures covering the latest and greatest in supply chain, mobility, and building venture-scale businesses.
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Weekly Commentary 💭
If you didn’t see it already, a big shout out to Dynamo’s own LogRock for launching their free recruiting tool for small fleets. The new recruitment feature aims to help small carriers keep up with compliance rules. The lack of integration between compliance and recruiting tools often makes things difficult for small carriers. This tool simplifies the hiring process and provides ten steps to follow, including performing a clearinghouse query and passing new hire training, to ensure compliance in court. LogRock's recruitment add-on will be free for carriers with fewer than 50 power units.
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Supply Chain 📦
Major California Ports Pledge To Build Data-Sharing System For Cargo Fluidity. California’s largest ports, including Los Angeles, Long Beach, Oakland, San Diego, and Hueneme, have joined forces to launch the California Port Data Partnership. The goal of this partnership is to standardize data and improve cargo flow efficiency by developing a cloud-based system. The project will be funded through a $27M state grant allocated for one-time freight and infrastructure projects. This collaboration aims to better coordinate freight movement and enhance resilience across the state's ports. Elsewhere in supply chain, Truck Drivers Bear Big Burden On Data Collection. Some Companies Want To Change That.
Growing Freight Fraud Is Peeling Millions From The US Shipping Market. Freight fraud, known as double brokering, is spreading across trucking networks as tech-savvy operators use false identities to bid on loads and skim payments for shipping goods that can total thousands of dollars. The fraudulent tactic has gained momentum in the past two years as the business of matching loads to trucks has moved online, and competition for shipments has cut short the time spent checking the backgrounds of businesses. According to online freight marketplace Truckstop.com, complaints about fraud, including double-brokering, jumped 400% in Q4 2022 from the same period the year before. In more trucking news, Trucking Bloodbath Snares Fleets Large And Small.
Breakbulk23: Methanol Has Head Start In MPV Green Fuel Race. Experts predict that methanol will be the preferred fuel for breakbulk carriers as they comply with international emissions-cutting regulations, due to its early start in the project cargo sector and operational track record. However, the high cost of capturing carbon molecules for green methanol production remains a challenge. While ammonia has been tested, it faces hurdles such as high retrofitting costs, fuel availability, and regulatory issues. Port authorities are also uncertain which fuels to supply to carriers serving multiple cargo segments, and it's expected that a multifuel offer will be necessary. For more on decarbonizing the supply chain, read Shipping Has Largely Relied On One Fuel. It Now Needs Many: Sparklines.
Nearshoring Shift Brings Production Hurdles Closer To Home. Weaknesses in far-flung supply chains due to geopolitical and business uncertainties, more and more companies are shifting their production closer to home. Premium Guard Inc., an automotive-parts supplier, shifted some production from China to Mexico, which proved to be a fortuitous solution during the pandemic-related disruptions. However, the challenges and expenses associated with nearshoring, such as developing new supplier networks and the limited range of raw materials, make it difficult to compete with China's low prices. For more on the topic, check out Shifting Production From China Is Impossible, Says Shipping Boss and Michael Dell Says Customers Are Demanding Less Reliance On China.
🌟Demand For Supply-Chain Data Stays Robust Amid Geopolitical, Climate Risks. Although global trade is cooling down, demand for supply-chain data is increasing as companies seek greater visibility in an uncertain world. A Freightos survey of over 200 logistics professionals revealed that three-fifths of respondents expect to be more engaged in freight data intelligence than they are now. The interest in the Freightos Baltic Index remained 23 times higher compared to January 2020, despite container shipping rates returning to normal late last year. In more on the trend towards greater visibility, read Tracking Carbon Emissions Throughout Cargo’s Journey Gets Boost and Leveraging Smart Data Will Revolutionize Customs Processes Says Raft Co-Founder Nisarg Mehta.
Box Shipment Trends Their Worst Since Depths Of Great Financial Crisis. According to FreightWaves, US box demand remains weak based on a survey of over 30 box makers and Q1 results from Packaging Corp. of America, with shipments down nearly 13%, reflecting weaker consumer spending. Although the company expects improved volume in Q2, it did not specify to what degree or why, and the demand visibility is limited. The decline in box demand serves as a barometer for goods demand and reflects intensifying economic weakness outside of the box market, including employment, retail sales, and rising credit card delinquency levels. In more macro-trends, read Container Shipping Heading For $10B Loss In 2024.
Mobility 🚗
The Glorious Return Of A Humble Car Feature. Car manufacturers are finally facing the consumer backlash due to touch screens and going back towards buttons and knobs, per consumer’s delight. Despite the added features that arised from the touch screen boom in the past 15 years, infotainment touch screens can distract a driver for a surprising 40 seconds, which is highly dangerous. For more, consider reading Who Killed All the Buttons in Cars and Hyundai Promises To Keep Buttons In Cars Because Touchscreen Controls Are Dangerous.
German Automakers Take Different Sides On The Use Of eFuels Over EVs. For instance, Audi and the Volkswagen Group will favor synthetic fuels, while Mercedes claims that it will favor technically superior EVs over ICE vehicles beng powered by eFuels. eFuels capture CO2 emissions using CO2-free electricity, but are still produced from carbon and emit just as many harmful air pollutants as fossil fuels. To get more information on the latest fuel technology, consider checking out What Are eFuels, And Can They Help Make Cars CO2-Free And eFuels: A Synthetic Solution To The Real Problem.
Electric Airplane Towing Concept Could Mean Longer Zero-Emission Flights. Magpie Aviation is combining the current options for the limited practicality of electric aircraft of either carrying a plane of people, or plane full of batteries, all while extending the rear plane’s range by hundreds of miles. The concept will use one electric aircraft to act as a tractor towing plane, equipped with enough battery power for takeoff, landing, and simply flying to other airports but not to make the entire trip by itself. More information on this concept can be found by reading Magpie Aviation May Make Zero-Emission Flights A Reality.
Ford CEO Warns Tesla About ‘Product Freshness,’ Believes Their EVs Are Becoming Commodities. Jim Farley, CEO of Ford, claims that only focusing on cutting expenses and prices will result in the problem of product freshness, where it gets commoditized and you lose your pricing premium. This comes after he accurately predicted the EV market price war, in which Tesla’s hold is slowly slipping. Learn more by reading Tesla Price Cuts Threaten Image As A Tech Leader.
The State Of EVs In Asia — What Can Be Done To Improve Adoption? Three countries have come to the forefront of expediting the tremendous growth in the asian EV market: China. Singapore, and Vietnam. Challenges still include a lack of transportation infrastructure, transportation consumer habits, range anxiety, and overall expense. Get more by reading Jokowi Squeezes Key EV Material Exports To Spur Indonesian Industry or EV Revolution In Developing Asia Needs Cheaper Models: Report.
🌟Cruise Continues To Burn GM’s Cash As Robotaxis Expand To Daylight Hours. Despite San Francisco expanding operations to 24/7, Cruise continues to lose money, with a loss of $561M in Q1 of 2023. However, CEO Kyle Vogt says they will continue to expand operations, with its driverless fleet size increasing to 242, up by 86%. Learn more on the robotaxi industry by reading Pony.ai Permitted To Expand Robotaxi Rides In China Without A Safety Monitor Present.
Fundraises and M&A 💸
CarbonChain Raises $10M Series A. CarbonChain is an AI-powered carbon accounting platform that provides end-to-end visibility into the carbon footprint of a company's supply chain. The funds will be used to build new carbon accounting and reporting products, expand its customer base in carbon-intensive value chains, and grow its team.
Luup Raises $30M In Series D Funding. The Japanese micromobility startup has raised $68M to date to expand its e-scooter and e-bike business across Japanese cities and tourist destinations, with a goal of operating more than 10K parking stations by 2025. Amendments to Japan's Road Traffic Act will also allow e-scooter users to ride without driver licenses or helmets from July, potentially leading to a surge in commuters and expansion opportunities for Luup.
Virta Closes €85M. The Helsinki-based company provides smart charging services for EV drivers and companies, including a network of more than 350K charging points. Virta raised €65M in equity funding and €20M in grants which will be used to accelerate growth in Europe and the Asia-Pacific region.
Zipline Raises $330M In Series F Funding. Zipline, a drone delivery startup based in South San Francisco was valued at $4.2B in its latest funding round, up 55% from its valuation of $2.7B two years ago. Zipline has been successful in developing its technology in developing countries, such as Rwanda and Ghana, where it began deploying autonomous delivery drones in 2016 and expanded into Covid-19 vaccine delivery in the early months of the pandemic. The company plans to use the funds to expand its operations, including launching a home delivery service.
Everstream Acquires BlueNode. Everstream Analytics optimizes logistics decisions by providing supply-chain visibility and risk management, while BlueNode employs machine learning and AI to cleanse disparate data from various sources including ports, terminal operators, shippers, carriers, and rail. The acquisition represents another step towards facilitating increased transparency and reporting of Scope 3 carbon emissions throughout the supply chain.
Who's Hiring? 👩💻
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Account Executive at Vizion in Atlanta, GA (remote).
Full Stack Engineer at Raft in Mumbai, India.
Full Stack Engineer (Clojure) at Redsky in Berlin, Germany.