Dynamo Dispatch (17/04/23)
Issue 233 | Brookfield Infrastructure Partners, LightMetrics, Frayt
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 💭
🌦️Welcome to Monday, and we’re starting out the week with a special shout-out to our Venture Fellow Eloise Benissan, the author of our latest blog post Legacy Freight Forwarder TMS Software: Bridging the Gaps - check it out!
This week is the 2023 Transportation Intermediators Association Conference in Orlando, Florida, and if you haven’t signed up yet it’s not too late to do so.
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We Are Dynamo,
Santosh, Jon, and the rest of the Dynamo team (shout out to Anneli for the editorial support this week)
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Supply Chain 📦
🌟Teamsters To UPS: No National Talks Until Regional Contracts Are Finished. The Teamsters labor union has postponed national contract negotiations with delivery giant UPS until the company reaches agreements on regional contracts. The union claims that 30 out of 40 supplements to the national contract across the US have not been resolved, leading to the delay. The current contract expires on July 31st, and the Teamsters have warned they are prepared to strike if a deal is not reached by then. In other Teamsters news, check out 'Inmates?' DHL Express, Teamsters Locked In Struggle At CVG Unionization Drive.
Amazon Shifts To Regional Fulfillment Model. This move, aimed at reducing costs and boosting delivery speeds, was necessitated by the pandemic-driven demand which led Amazon to double the size of its fulfillment network in about two years. With the new regionalized fulfillment model in place, Amazon is looking to increase its next-day and same-day delivery activity and is on track to achieve its fastest delivery speeds ever in 2023 for Prime members. For more on fulfillment center trends, check out Global Warehouse, Fulfillment Construction Seen Waning and in other Amazon news, FedEx And Amazon Still Haven’t Figured Out Sidewalk Delivery Robots. Will Mass Adoption Ever Come?
Demurrage Complications Cloud FMC Regulation. The US Federal Maritime Commission (FMC) has two months to sort out the complex billing of detention and demurrage fees for import containers that stay at port yards beyond contractual free time. A handful of container lines have stopped charging demurrage fees on days when terminals are closed, but marine terminal operators (MTOs) still collect storage fees whether or not a terminal's gates are open to truckers. The complexities arise due to contract complexity and different free time clauses at each US port. The National Association of Waterfront Employers (NAWE) argues that charging terminal storage fees is the best way to incentivize cargo retrieval. Further upstream in the warehouse, Google Cloud Introduces Updated Inventory Insights.
Apple Commits To Using More Recycled Cobalt In Its Devices. The company has made significant progress toward using recycled rare earth elements, reporting that 73% of its rare earth materials were entirely recycled last year. Apple aims to reach carbon neutrality across its operations by 2030, and it is prioritizing 14 critical materials for recycling and renewable transitions, including cobalt and rare earth elements. The move by Apple to use recycled cobalt and rare earth materials in their products aligns with growing industry trends toward sustainability and responsible sourcing. For more on Apple’s supply chain, check out For Apple, India Is The Next China.
The Race to Clean Up Trucking Emissions Is Just Getting Started. Although battery-electric trucks are much cheaper and more accessible to the public, these will require massive investments in order to provide a fast and high-powered charging infrastructure. As a result, several manufacturers are potentially looking to invest more in hydrogen-powered trucks which can be more quickly refueled and offer a much longer driving range. Consider reading Trucking’s Electric Vs. Hydrogen Battle Starts to Percolate and Dutch Subsidy Round For Emission Free Trucks Has Zero Applicants For Hydrogen, for more information.
Logistics Giant Kuehne + Nagel Seeks Expansion. Despite a 43% drop in operating profit in the most recent quarter, CEO Stefan Paul has revealed plans for the company's expansion, including growth in 15 lanes or country pairs with attractive margins and a focus on healthcare and eCommerce fulfillment in the US. For more, read West Coast Longshore Negotiations Have Yet Again Taken A Negative Turn…
Mobility 🚗
🌟Stiff EPA Emission Limits To Boost US EV Sales. These new proposed regulations will set limits on tailpipe emissions for automobiles of the 2023 to 2027 model years. These regulations are the strictest ever seen and are aiming to limit greenhouse gas emissions rather than specifying a certain number of EV sales - although the EPA expects 60% of vehicles sold in 2030 to be fully electric. Get more on how this will impact EVs moving forward by reading New Tailpipe Rules Will Choke Big Auto’s Profits and US Seeks to Accelerate Transition to EVs With Tough Tailpipe Emission Rules.
Tesla Cuts Prices Again As It Seeks to Lure New Buyers. Both the Model S and X prices will be cut by $5K each on their base models in an effort to stoke demand for Tesla compared to its ever-growing competitors. This comes due to an expected first-quarter profit drop to around $2.6B from $3.3B in Q1 of 2022, despite an expected increase in overall sales (as per FactSet.com). Learn more by reading Tesla Sales Again Fall Short Of Production and Tesla Cybertruck Mega Frunk Confirmed In Production Beta Photo.
Rivian Shifts To In-House Motors To Boost Production. The new Enduro motor will now replace all Bosch motors currently in configurations of both the R1T pickup and R1S crossover. The motor is already used in Rivian’s commercial vans and should combat the shortage of semiconductors that have been the bottleneck in Rivian’s production. For more information, consider reading Rivian To Become Profitable In 2024, Launch Cheaper R2 Model A Year Later and Georgia Is Shoveling Cash Into A Failing Electric Vehicle Company.
GM Ditches Apple CarPlay On EVs As Fight For Your Car’s Screen Intensifies. GM executives maintain that its new proprietary software will offer more built-in functionality compared to CarPlay. By offering a more personal experience, GM aims to finally mimic the look and feel of consumer electronics within your personal vehicle. Get more information by checking out Ford Reportedly Commits To Apple Carplay ‘Because Customers Love The Capability’.
Ferrari Has Record Orders "Well Into" 2024, Chairman Says. The sports car maker has promised 15 new models by 2026, including their first fully electric car expected to arrive in 2025. ICE or internal combustion engine cars will continue to be in production in the coming years, while CEO Benedetto Vigna continues to pursue electrification. On other news regarding the automobile giant, read Ferrari Fever? Classic Cars Roar Into Investment Funds.
As Dealerships Get More Stock, Auto Makers’ Sales Rebound. In contrast to last year, many manufacturers including GM and Hyundai have posted double-digit gains for their US sales in Q1. Rising inventory levels are helping dealers meet the ever-rising demand, with US auto sales in Q1 expected to hit $3.5M posting a 6% rise since last year’s Q1. Get more news on auto inventory by reading Is the Inventory Shortage Coming to an End?
Fundraises and M&A 💸
Axle Raises $4M In Seed Funding. Axle allows users to connect their insurance accounts to trusted companies in seconds through a developer-friendly API or one of Axle’s low-code or no-code options. The funds will go to hiring, expanding carrier coverage, and extending into different markets and use cases, namely, diversifying their insurance lines such as boat, commercial, and healthcare.
Frayt Raises $7M In Series A Funding. Frayt is an on-demand delivery platform that connects shippers with a network of independent contractors, providing same-day or scheduled deliveries. The funds will be used to expand teams for product growth and market development, fill out its leadership team, and foster its driver network's entrepreneurial spirit.
Lightmetrics Raises $8.5M In Series A Funding. LightMetrics provides a video telematics platform that allows fleets to gain visibility into several risky driving behaviors based on real-time analysis of road and driver-facing cameras. LightMetrics will use the funds raised to enhance their teams, invest in AI technologies, develop new products and solutions, and explore auto insurance opportunities.
Brookfield Infrastructure Acquires Triton International For $13.3B. Brookfield Infrastructure Partners will acquire intermodal freight equipment leasing and maritime container management services company Triton International. In total, the buyers will pay $85 per Triton common share, made up of $68.50 in cash and $16.50 in Class A exchangeable shares of its subsidiary, Brookfield Infrastructure Corp.
Who's Hiring? 👩💻
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Senior People Business Partner at sennder in Berlin, Germany.
Account Executive at Vizion in Atlanta, GA (remote).
Full-Stack Clojure Developer at Red Sky in London, UK (position based in Berlin, Germany).
Random Statistic Of The Week 📈
🚙 According to a new poll, released Tuesday, April 11th, by The Associated Press-NORC Center for Public Affairs Research and the Energy Policy Institute at the University of Chicago, “Only 19% of U.S. adults say it’s ‘very’ or ‘extremely’ likely they will purchase an EV the next time they buy a car, while 22% say it’s somewhat likely. About half, 47%, say they are unlikely to go electric.” Read more here.