Dynamo Dispatch (12/06/23)

Issue 240 | Charm Industrial, Cargofive, Sourcemap

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 💭

🧳In observance of Juneteenth on Monday June 19th, we will pause the Dispatch and be back in your inbox the following week. 

We’re still spreading the news that we’ve rebranded Founders Camp to Hub + Spoke and applications are open. Over the course of three days from Monday October 16th to Wednesday October 18th, in Chattanooga, TN, founders can make meaningful relationships and develop a deeper understanding of the supply chain to accelerate their business. Competitive companies should have a strong team, a product/service built, and early traction with customers/users. Companies that are looking to raise a seed or Series A round would benefit from the programming. 

Applications are due Sunday August 20th at 11:59 PM PT. More information and the link to the application are available here. 

🥰Love reading the Dispatch? Make sure you forward it to anyone looking to stay up to date with all things supply chain and mobility.

We Are Dynamo,

Santosh, Jon, and the rest of the Dynamo team (thanks to Anneli for the editorial support this week)

Note: please add “dynamo@substack.com” to your email client, so you don’t miss future issues due to aggressive spam filters.

Supply Chain 📦 

⭐The Fed's Inflation Fight Faces A New Challenge: A Dry Panama Canal. A severe drought in Gatun Lake, the repository that connects directly to the Panama Canal, has caused such low water levels that weight limits have increased surcharges for ocean freight. Experts predict that supply chain chaos similar to 2021 is set to ensue as shipping rates are hiked and alternative US-Asia routes are explored. Completely unrelated, Trucking Continues to Be Slow in the US, Contrary to OEM Data.

Energy Department Unveils Plan Using Hydrogen Energy To Cut US Emissions By 10%. Specifically, the strategic document calls for hydrogen use in key industries such as heavy transportation, refining, steel, and chemicals, in order to have the greatest impact. Focusing on hydrogen energy formed from carbon-free sources, the Biden Administration strategy also outlines the necessity for regional hubs and cheaper hydrogen energy. Also, Dismal Sales Undercut Carmakers Pushing Hydrogen Fuel Cells and Japan Earmarks $107B For Developing Hydrogen Energy To Cut Emissions, Stabilize Supplies.

Supply Chain Diversification Apparent In Freight Market. Trends in regional outbound freight demand have changed considerably since June of 2019, bound to the Eastern half of the US, with the Southwest region having captured the most growth from a waning Northwestern freight market. Contributing factors are numerous, with most of this movement being accredited to the economic downturn faced post-COVID, but including inventory offloading and supply chain diversification directly redistributing freight. In related news, read Volvo's Autonomous Freight Arm Opens North American Hub In Texas.

Two Supply Storms Threaten To Disrupt Asia-US Trade Again. The first is a severe labor shortage at the major West Coast ports, where contract negotiations have created supply chain logjams. The second is the aforementioned drying of the Panama Canal, which has already resulted in $300-500 fees being levied to cargo owners per container by carriers. To get more information, read Ports Of LA, Long Beach Return To Normal Operations Amid Ongoing Labor Dispute and USWC Disruptions Continue As ILWU Flexes Power Amid Wage, Manning Gap With Employers.

UPS Drivers Will Gain ‘Millions Of Packages’ Under Surepost Deal, Teamsters Say. With the deal in place, UPS drivers will now service 50%, up from 42%, of SurePost packages, while also reducing the size of packages eligible. This is part of Teamster GP Sean O’Brien’s aggressive agreement schedule, having already reached 24 tentative agreements in the national contract within 11 days. In related news, UPS Strike 2023 Vote For Drivers Air-Conditioned Trucks As Part Of New Labor Deal.

Werner CEO Sees 'Checkmark' Recovery From Recession. While spot rates have been flat for nearly the past two months in the freight industry, Werner CEO Leathers expects a “checkmark” style growth with a “slow, gradual lift”. Market indications seem to agree as Spot Rate Insights’s weekly gauge displayed that spot rates were 22% below the same week in 2022. Elsewhere, CH Robinson Appoints Dave Bozeman Chief Executive Officer.

Mobility 🚗 

⭐General Motors To Adopt Tesla Charging Standard. Joining Ford, GM will now adopt Tesla’s North American Charging Standard to provide GM’s EV-owners access to the entirety of 12K+ Tesla’s Supercharger network. Adaptable vehicles will be available in 2025, with plans for GM to integrate Tesla Supercharger access into its vehicle and mobile apps. Also, GM Plans To Invest Over $1B In Flint Plants.

It's Raining eBike Subsidies. Several major cities are providing further incentives for consumer eBikes. For example, Lyon is charging lower parking rates for EVs, while Montreal is levying $170 fines for blocking bike lanes. Fun fact: nearly 45% of all bicycle sales in Switzerland were electric this past year, an inclination that exists across Europe. In other news, Berlin’s Efforts To Reduce Driving Stalled By German Car Culture and Swiss eBike Market Share Nearing 50%.

VW Is On A Hunt For Resources To Remove China From Its EV Batteries. Currently, VW is 100% reliant on Chinese batteries and is now trying to find suppliers from Canada to Indonesia and capture a larger share of the profits. With 39% of its sales in China, VW will continue to use Chinese supplies for Chinese cars, but is now actively sourcing lithium deposits in Mexico, Indonesia, Canada, Australia, Chile, and other South American countries. In similar news, read Saudi Arabia Expands Lithium Processing To Supply BMW and US Car Makers’ EV Plans Hinge On Made-In-America Batteries.

Airlines Expect To Make $10B This Year Despite Economic Slowdown. This would double the IATA’s 2023 forecast from $4.7B to the expected industry net profit of $9.8B. The reasons are numerous: China’s reopening of normal air traffic, lower jet fuel prices, cargo revenues, and passenger travel. To learn more, consider reading Some Airlines Are Stopping Economy Class Passengers From Reclining and Airlines Call For Emissions Help In Long-Haul To Net-Zero.

TuSimple Has Started Testing Its AV Truck Tech In Japan. Developing AV trucks, TuSimple will start running regular test runs on Japan’s Tomei Expressway, connecting Tokyo, Nagoya, and Osaka. Japan’s regulation is particularly enticing, with an April 2022 law allowing for Level 4 AVs on public roads. Get more information on the company by reading TuSimple Awarded Autonomous Driving Test License In China.

Mercedes First To Sell Vehicles In California With Hands-Free, Eyes-Off Automated Driving. Mercedes’ branded Drive Pilot system (which can operate without an active human driver) will be used on specific CA highways in the Bay Area, LA, Central Valley, Sacramento, and San Diego.  This means a driver can be on their phone, texting, etc. without looking at the road. Mercedes is the fourth company to receive an AV deployment permit in CA, but the first authorized to sell such vehicles. In other Mercedes-Benz news, Mercedes Signs 'Green Steel' Agreement For Europe, North America.

Fundraises and M&A 💸

About:Energy Raises £1.5M In Seed Funding. About:Energy is a UK-based battery software solution start-up. The funding will go towards establishing an independent laboratory for the uni spin-out, expanding the team, and gaining more industry adoption of its platform The Voltt. Investors in the round included HighSage Ventures, Vireo Ventures, Rishi Khosla, Plug & Play Ventures, and Electric Revolution Ventures.

Cargofive Raises €1.8M In Funding. Cargofive offers a streamlined platform for route optimization and cost-efficient quotations. The funding will enable them to improve their product, invest more in marketing and sales, double their team size, and expand operations in Europe. The round was led by venture capital firms Lince Capital and Shilling.

Haul247 Raises $3M In Seed Funding. The Nigerian-based company is building an end-to-end logistics platform connecting businesses to haulage and warehousing assets. With the new investment, they will look to capture more market share, to about 20%, and increase the number of multinationals on its platform to 50, easing its expansion into other African countries where they are present. Alitheia Capital, through its Umunthu Fund in partnership with Goodwell, provided the equity capital, with Investment One contributing $1M in debt financing.

Driver Technologies Raises $6M In New Funding. Driver Technologies delivers the products and services needed to keep everyone protected on the road. The company intends to use the funds to expand the adoption of its AI-powered dash cam and safety alert app, into insurance-backed programs for commercial and personal drivers. The Round was led by IA Capital, and CT Innovations, with participation from others including Liberty Mutual Strategic Ventures, State Auto and Labs/Rev 1, among others.

Sourcemap Raises $20M In Series B Funding. Sourcemap is a social network-style site for monitoring supply chains. The funding highlights businesses' demand for tech that tracks materials as global supply chains recover from pandemic-era disruptions. The round was led by Energize Ventures and E14 Fund.

Oxccu Raises $22M In Series A Funding. Oxccu, an Oxford University spinout, has developed an innovative process to convert carbon dioxide and hydrogen for industrial uses, including aviation fuel, and will use the funding to bring their product to market. The funding will be used to develop and prove its commercial potential. The round was led by Clean Energy Ventures.

Curri Raises $42M In Series B Funding. Curri is a tech platform focused on last-mile logistics for the construction industry. The new funding will be put toward product development, infrastructure, and sales and marketing initiatives. Bessemer Venture Partners led with participation from Initialized Capital, Brick & Mortar Ventures, Rainfall Ventures, and others.

Charm Industrial Raises $100M In Series B Funding. Charm Industrial is a company that uses ‘bio oil’ to sequester carbon deep underground. They will use the new funding to expand current operations. General Catalyst led the round with participation from Lowercarbon, Exor, Kinnevik, Thrive, and investor Elad Gil.

Amogy Raises Another $11M To Upsize Its Series B Funding. Amogy makes ammonia-based fuels for heavy-duty vehicles and ships. They plan to use the money to expand their offerings. SK Innovation led the round with participation from Temasek, Korea Zinc, Aramco Ventures, AP Ventures, Mol Plus, Yanmar Ventures, Zeon Ventures, DCVC, Marunouchi Climate Tech Growth Fund, Mitsubishi Corporation, Mitsubishi Heavy Industries America, and Synergy Marine.

Who's Hiring? 👩‍💻

Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!

Ops Trainer at Skydropx in Monterrey, Mexico. 

Junior Accountant at Milk Moovement in Halifax, Canada (remote).  

Manufacturing Technician at Manna in Dublin, Ireland. 

Random Statistic Of The Week 📈

🛥️“Recreational boating saw a 35% increase in annual economic activity between 2018 and 2023, leaping from $170 billion to $230 billion.” According to the National Marine Manufacturers Association, 800,000 first-time boaters took to the water in 2020 and 2021. Axios has more at Americans' boating passion still afloat after pandemic.