Dynamo Dispatch (2024/12/23)

Dynamo Dispatch (2024/12/23)Issue 313 | Starboard, Boon, BILT
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Dynamo Dispatch (2024/12/23)
Issue 313 | Starboard, Boon, BILT
Derrek Li and Madelyn O'Farrell
Dec 23

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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 💭
This will be the last Dispatch issue of the year as we take a breather after a busy and exciting 2024. We’re so thankful for the community of friends, founders, investors, and supply chain enthusiasts. We hope you all get the chance to relax for the holidays, and we’ll see you all in 2025!
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Supply Chain 📦
⭐ Teamsters Launch Amazon Workers Strike in Effort to Disrupt Christmas. The International Brotherhood of Teamsters has called for a nationwide strike at Amazon six days before Christmas, targeting seven Amazon facilities in cities like New York, Atlanta, and Chicago. The union aims to disrupt operations during the peak holiday season, using picket lines at hundreds of warehouses to amplify their campaign to unionize Amazon workers and contract delivery drivers. Amazon has downplayed the impact, citing its extensive network of over 800 facilities and accusing the Teamsters of exaggerating their support. The union's actions mark its most significant effort yet to pressure Amazon into bargaining directly with workers, focusing on labor conditions and opposition to Amazon's reliance on contract delivery firms. Related, Amazon Disregarded Internal Warnings on Injuries, Senate Investigation Claims.
Vietnam Won Big in Donald Trump’s First Trade War, Now It’s a Target. Vietnam thrived during Trump’s first trade war with China, becoming a hub for foreign investment and a key supplier of goods to the US. However, Trump’s proposed tighter trade rules and tariffs targeting “third-country workarounds” could threaten its growth. Despite its advantages — low costs, proximity to China, and improved infrastructure — Vietnam remains heavily reliant on Chinese components. While US companies like Apple and Nike continue expanding there, new trade policies could disrupt its role as a manufacturing alternative to China. In other potential actions from the new administration, Trump Eyes Privatizing US Postal Service Citing Financial Losses while UPS to Hike SurePost Rates and Delivery Area Surcharges.
The Freight Broker Transparency Fight Four Years in the Making. The FMCSA has proposed new broker transparency rules to address long-standing disputes over freight transaction clarity. The changes would require brokers to maintain electronic records, disclose transaction details, and comply with stricter transparency obligations rather than relying on carriers to request information. While some groups support the proposal for its potential to reduce fraud and improve fairness, brokers argue it imposes unnecessary burdens and risks confidentiality. The industry remains divided on the rule’s economic impact, with carriers hoping for better rate negotiations and brokers warning of increased administrative costs. Elsewhere on the road, Cost of Congestion Tops $100B Annually, Nearly $8K Per Truck and FedEx Freight Spinoff to Create Largest LTL Carrier.
Nordstrom and Macy’s Abandoned the ‘Retail Inventory Method’ After Using it For Decades, Here’s Why. Major US retailers like Macy’s and Nordstrom are shifting away from the outdated Retail Inventory Method — which estimates inventory based on retail prices — in favor of cost accounting, a modern alternative that tracks inventory by purchase cost. Critics argue RIM distorts financials, encourages poor pricing decisions, and complicates shrink detection. While cost accounting requires a significant overhaul, it offers better accuracy, operational insights, and pricing strategies, paving the way for smarter inventory management. For another innovation, New Technology is Taking Package Tracking Past Scanning.
China’s Dominance in Global Shipbuilding Strengthens Amid Surging Global Demand. China is solidifying its dominance as the global leader in shipbuilding, driven by rising demand for fleet renewal and compliance with stricter environmental regulations like the IMO's carbon efficiency standards. Chinese shipyards, supported by cost advantages in labor and steel, hold 86% of global ship orders while South Korea focuses on high-value segments such as LNG carriers. This shift positions China as the go-to source for bulk and container ships, with 55% of the global order backlog and growing domestic investment in advanced shipbuilding capabilities. Also, ‘Flexible’ New Mid-Size Containerships See Carriers Better Prepared for Crashing Demand.
Mobility 🚗
⭐ Volkswagen Reaches Deal with Union After Grueling Talks. Volkswagen and union leaders reached a historic agreement after 70 hours of negotiations, avoiding immediate layoffs, site closures, or wage cuts despite plans to reduce over 35,000 jobs and cut capacity by 2025. The deal, celebrated by union leaders as a “Christmas miracle,” aims to save €15B annually while ensuring long-term job security and competitiveness against cheaper Chinese rivals and lagging European EV demand. Volkswagen will explore alternative uses for its Dresden and Osnabrück plants, with some production shifting to Mexico, as part of a broader restructuring effort. While workers staged massive strikes in protest, the agreement provides stability for the company’s German operations without affecting its 2024 financial guidance. Completely unrelated, Ford was Plagued by Recalls in 2024.
Top US Auto-Safety Regulator Finalizes Whistleblower Program Rules. The National Highway Traffic Safety Administration (NHTSA) has finalized rules for its whistleblower award program, nine years after Congress mandated it. The program rewards whistleblowers with 10% to 30% of fines for original tips that lead to enforcement actions involving at least $1M in penalties. Established under the 2015 Motor Vehicle Safety Whistleblower Act, it allows auto industry employees or contractors to report safety defects and regulatory violations, which may result in recalls or investigations. For more, NHTSA Issues Final Rule Authorizing Whistleblowers.
Waymo Exploring Another Country. Waymo is having a standout year marked by rapid expansion, technological advancements, and significant growth in rides provided to paying customers. The company is now venturing into Japan through a collaboration with Nihon Kotsu, Tokyo’s largest taxi firm, to adapt its autonomous driving technology to left-hand traffic and dense urban environments. This move aligns with Japan’s vision for innovative transportation solutions and could position Waymo as a futuristic alternative in a market less accessible to Chinese competitors. The partnership will involve mapping Tokyo’s key districts and leveraging insights to refine Waymo’s AI-powered driver, potentially accelerating its global capabilities. Elsewhere in robotaxis, Automotive News Video: What the Pivot Away from Robotaxis Means for GM.
California Approves $1.4B to Deploy 17,000 EV Chargers, Hydrogen Fueling Infrastructure. The California Energy Commission approved a $1.4B investment plan to expand emissions-free transportation infrastructure, including nearly 17,000 new EV charging stations and hydrogen refueling sites over the next four years. The plan aims to benefit low-income and disadvantaged communities, aligning with the state’s $48B climate budget and additional federal funding for clean transportation. California already has about 152,000 public chargers and anticipates reaching 250,000 soon, alongside half a million private home chargers. Also, ChargePoint and GM Collaborate to Expand EV Charging Network.
After Northvolt, Europe's Battery Hopes Rely Heavily on China. Northvolt's financial collapse has highlighted challenges for European EV battery ambitions, but partnerships like InoBat's with China's Gotion demonstrate a path forward. InoBat secured €100M in Series C funding, partly thanks to its joint venture with Gotion, which brings expertise and scale to the project. While high-profile failures like Northvolt have slowed independent European progress, joint ventures with Chinese firms are emerging as a dominant model to meet production demands and de-risk investments. As Europe's EV battery projects face bureaucratic hurdles and slower-than-expected demand, collaborations with established Chinese players provide a faster, more reliable route to scaling capacity. Related, InoBat Snaps €100M to Supercharge European EV Battery Industry.
The Future of Supply Chain 🎙️
Check out our podcast series that’s been running since 2018. On each episode of the Future of Supply Chain, we sit down with a different entrepreneur, investor, or industry veteran to discuss innovation, technology, and the most exciting opportunities in supply chain as we build the future of the industry together.
Fundraises and M&A 💸
Meight Raises €3.4M in Funding. Meight is an AI-driven platform for trucking carriers, offering automated dispatching, real-time monitoring, and fuel-saving tools to optimize freight operations. The funding will support European expansion and platform enhancements. The round was led by Cusp Capital, with participation from Grupo Lusiaves, Faber, and EIT Urban Mobility.
Synthavo Raises $4.2M in Seed Funding. Synthavo offers an AI-driven solution for spare part identification, targeting the industries of automotive and logistics. The round will enable the company to double its workforce, expand in Europe, and prepare for US market entry. Samaipata and Senovo led the round.
Bikmo Raises £4.7M in Seed Funding. Bikmo is a specialist eMobility & cycle insurer. The funding will be used for European expansion across direct sales, partners, leasing and commercial channels. Pume Growth Partners led the round.
Loadar Raises $4M in Seed Funding. Loadar is a freight procurement and management platform, streamlining logistics for large enterprises with multi-modal solutions across road, sea, air, and rail. The funding will support doubling team size and expanding operations to the US. Frontline Ventures led the round.
Mantis Robotics Raises $5M in Funding. Mantis Robotics develops adaptive robotic...