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 💭

Big shoutout to Allen Chen, Max Chapman, and Aditya Raghupathy for the recent introductions to startups, corporates, and investor friends over the last week or so. Got a startup in the supply chain space that we should check out? Shoot us an email at [email protected] to share more.

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Clay, Santosh, Jon, and the rest of the Dynamo team

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Supply Chain 📦

Port Authority Of New York, New Jersey Plans Dwell Fee To Cull Empties. Last week, the busiest port on the East Coast announced plans to start charging ocean carriers a fee for “long-dwelling” containers. Why the sudden charge? Apparently, all the hustle and bustle taking place at the port has left a record number of empty containers on standby. Their Western counterparts in the Ports of Los Angeles and Long Beach announced a similar fee a year ago, although they have continually postponed the fee as the threat alone has seemed to do the trick. Beginning Sept 1, the fee will face 30 days of public scrutiny and be revised again in a year. For more information, consider reading Port Authority Announces New Container Imbalance Fee To Minimize Congestion and Port Of New York And New Jersey Adds Fees For Ocean Carriers As Shipping Containers Pile Up.

Amazon Begins Same-Day Deliveries From Select Retail Stores. Amazon recently launched another arm of its delivery platform by offering same-day delivery from certain retail stores. These stores, namely GNC, PacSun, Diesel, and SuperDry, will now be offered in most major US cities including Miami, Chicago, Atlanta, and others. The service will be free for Prime customers who spend at least $25 on their order and only $2.99 for those who spend less. This new pivot of offering store-to-door deliveries from local retailers could eventually see Amazon’s global reach expand further. Finally, our humble venture fellow, Pujeeth, can get his skinny jeans from PacSun with quick haste. To read more about Amazon’s expansion, consider Amazon Rolls Out New Perk For Prime Members In Select Cities and Amazon Adds Same-Day Delivery From PacSun, GNC, And Other Local Retailers.

Bureau Of Prisons Expands CDL Training For Women. In an effort to increase career opportunities for inmates transitioning into life after prison, the Federal Bureau of Prisons has expanded its commercial driving license programs to now focus on women. Currently, all 6 CDL programs within the BOP are in male federal prisons in the states of Alabama, Florida, Mississippi, South Carolina, Texas, and Pennsylvania. Females make up 6.8% of federal inmates (around 10K people) creating opportunities for more inmates to undergo the CDL knowledge training programs. The other positive impact? The new program adds to a low supply of drivers already plaguing the industry today. For more information, consider reading 2022 WIT Index: Female Drivers Comprise 13% Of Professional Driver Workforce.

Senate Transportation Leaders Applaud Water Bill’s Passage. The US Senate has now approved the Water Resources Development Act of 2022 (WRDA) by a shockingly bi-partisan 93-1 vote. The bill will facilitate the construction of new water projects for the Army Corps of Engineers, such as navigation, flood control, restoration initiatives, and disaster mitigation. In short, this significant investment will protect our essential water infrastructure such as harbors, ports, and inland waterways. To understand the potential supply chain effects the passage of this bill could have, read Senate Reconciliation Keeps Farms, Forests In Climate Formula and Climate Bill ‘Transformative’ For Auto And Energy Industries.

UPS Pilot Program Aims To Deliver More Packages In Fewer Stops. During a company earnings call last week, CEO Carol Tomè announced plans to launch a pilot aimed at improving package volume density on driver routes to save on delivery costs. The cost of last-mile delivery of a package for UPS is estimated at $5.50, adding an additional $0.60 per package. The pilot will involve allowing an unnamed 3PL to “hold” an order on an order management system until another shipment is matched to the same address. The holds will only be applied for as long as the service level agreement will allow, however, this can be anywhere from 9 to 12 hours according to Tomé. For more information on the revamping of delivery services, consider reading FedEx To Consolidate Stations, Delivery Routes In $2B Operational Overhaul.

🌟Shipping Firm Maersk, A Barometer For Global Trade, Warns Of Weak Demand And Warehouses Filling Up. Danish shipping and logistics giant, AP Moller-Maersk, is predicting a global shipping container demand slowdown as international supply chain congestion continues to weaken consumer confidence. In its Q2 report, the company stated that it had loaded 7.4% fewer containers in Q2 compared to the same period in 2021, prompting a full-year outlook revision for its container segment. Maersk expects demand to remain between -1% and 1% growth in 2022, particularly due to increasing geopolitical uncertainty, inflation, and energy prices. Maersk has raised its profit outlook for next year with higher global freight prices due to trade congestion that has created “exceptional market conditions.” To find out more on how this impacts global trade, consider Maersk Sees Global Supply Chain Woes For Longer; Lifts 2022 Guidance or Maersk Sees Record $31B Profit As Shipping Rates Surge

Saber-Rattling In Taiwan Strait Stokes New Supply Chain Threat. China continues to threaten global relations and supply chains as it began conducting live-fire military exercises in the Taiwan Strait later last week (for context, Bloomberg has calculated that 88% of large container ships and ~50% of the world’s container ships passed through the Taiwan Strait this year). These exercises are expected to breach Taiwan’s waters and block busy international shipping lanes. Currently, there are 256 container ships and an additional 308 on the way, as China warns foreign planes and ships to stay away while its military exercises continue. For more information, consider China Fires Missiles In ‘Unprecedented’ Drills Around Taiwan. 

Walmart Lays Off Hundreds Of Corporate Workers. In an effort to restructure after last week’s report of declining profits, Walmart told employees at its Arkansas headquarters and other corporate offices that they plan on retooling the merchandising, global, technology, and real-estate teams. This could result in a loss of over 200 jobs, despite its confirmation of reinvesting into other corporate roles. For more insight, consider reading Walmart Lays Off Corporate Employees After Slashing Forecast and Walmart Corporate Layoffs Add To Signs Of Slowing Job Market.

Mobility 🚗

🌟EV Sales Hit A Monthly Record In June. Despite inflationary pressures, supply chain constraints, an ongoing war, and a pandemic, the EV movement continues to push forward with growing momentum. Global plugin vehicle registrations were up 54% in June 2022 compared to June 2021, reaching a record 913K units. This represents a 16% share of the overall automotive market, with BEVs capturing approximately 12% of that. Tesla still holds the crown, with the Model Y and Model 3 as the global best sellers. Here in the US, EVs Are The Fastest-Selling Used Cars In 9 Major Metro Areas.  In related news, This Week Ford Reported A 36% Jump In New Vehicle Sales, Led By Trucks And EVs.

Domestic Flight Prices Are Down 25%. According to Hopper’s Late Summer Q3 Index released this week, domestic flights have seen a significant price drop since the peak hit this past spring. Average round trip prices within the US will drop to $286 this month, as demand is forecasted to slow with the summer ending. Airline domestic seat capacity remains at ~95% of 2019 levels, while international seat capacity has only reached 83% of 2019 levels. In related news, The DOT Is Weighing Fining Airlines For Flight Delays Over 3 Hours. For further reading, check out this piece on How Airlines Can Mitigate Raising Rising Labor Costs.

Shell & Lufthansa Announce Sustainable Fuel Joint Venture. This week, the two industrial titans announced intentions to enter a supply agreement for $1.8M metric tons of sustainable aviation fuel, which would be one of the largest commercial sustainable aviation fuel deals to date. Under the terms released, Shell would supply approximately 594M gallons to Lufthansa at airports around the world. This agreement comes at a time when the aviation industry is facing increasing scrutiny for being a significant source of GHG emissions, responsible for 2-3% of global emissions. Lufthansa is also not stopping there and is Set To Begin Offering Customers A “Green Fare”, Which Would Include A Premium For Carbon Offsets. In related news, American Airlines Is Also Investing In Hydrogen Electric Engines.

GM Pushes Forward With Autonomous Driving. General Motors is set to expand its Super Cruise network, doubling the number of roads where drivers can activate the hands-free automated highway driving feature. It currently works on roughly 200K miles of divided interstate highways in North America and soon will be expanded to around 400K miles. "We are pursuing what we believe to be the most comprehensive path to autonomy in the industry with responsible deployment of automated driving technology like Super Cruise at the core of what we do," said GM chief engineer, Mario Maiorana. For further reading, check out this piece on Potential Legal Challenges That Autonomous Driving Could Face. In related news, The California DMV Has Accused Tesla Of False Advertising.

Most Popular US Driving Routes Remain Inaccessible For EVs.  According to a recent study by AAA, 4 out of the top 11 most popular road trip routes in the US have stretches that are 200 miles from any public fast charging stations. Of the approximately 80 EV model variants for sale in the US market, 31 travel less than 250 miles on a charge. That range shrinks further with any of three conditions common on a summer road trip: interstate speeds, heavy cargo, and hot weather.  In other news, More Autonomous Trucks Are Being Offered In Florida, and Suzuki Is Set To Begin Production Of Electric Vans. 

More EV Rental Options Are Coming To California. This week, California EV subscription company Autonomy announced a partnership with AutoNation to bring an additional 20K EV options to market over the next 12-18 months. The service, launched in January, currently allows consumers to rent Tesla Model 3s but, with the new support of AutoNation, vehicle options will be expanded. “This partnership allows Autonomy to drastically accelerate and diversify its vehicle lineup with a 20K vehicle order over the next 12-18 months while paving a clear and aggressive path for national expansion,” said Scott Painter, founder and CEO of Autonomy.  Elsewhere in the EV world, BMW Is Expanding Its Battery Production Capabilities. In related news, Tesla Is Piloting A Distributed Battery For Grid Reliability. 

Lucid Lowers 2022 Production Targets Once More. Last week, Lucid announced its second target cut of the year. The automaker now only expects to produce 6K to 7K vehicles this year instead of the previously forecasted 12K to 14K vehicles. Citing extraordinary challenges in the supply chain and logistics, the cut follows the same reasoning as Lucid’s March announcement of the same sort. “We’ve identified the primary bottlenecks, and we are taking appropriate measures – bringing our logistics operations in-house, adding key hires to the executive team, and restructuring our logistics and manufacturing organization,” said Peter Rawlinson, CEO and CTO of Lucid. Other mobility companies are also facing challenges, as Evidenced By Bolt Mobility Shutting Down US Operations And Abandoning eBikes Across US Cities. In other news this week, Uber Reported Record Revenues. 

Fundraises and M&A 💸

Barakah Raises $300K Pre-Seed. The Saudi Arabia-based food delivery app delivers a real-time surplus management tool. The round was led by Alriyadah Investments. The use of the funds remains undisclosed at this time.

Ottonomy.IO Raises $3.3M Seed. Ottonomy.io is a NY-based autonomous robot delivery company. The round was led by pi Ventures with participation from Connetic Ventures, Branded Hospitality Ventures, and individual investor Sangeet Kumar. The funds will be used to scale production and build capacity to address the current pipeline of customers.

Li Industries Raises $7M In Series A Funding. The VA-based company develops direct recycling technologies for lithium-ion batteries from electric vehicles and consumer electronics.  The round was led by Khosla Ventures, with the participation of Xerox Ventures and Shell Ventures. The funds will be used to expand operations and continue to expand its development efforts.

The Bacon Raises $8M In Series A Financing. Bacon, also known as the “Uber of hourly work” gives workers the ability to easily find and select hourly shifts to fit their own schedule and lifestyle. Investors in the round include Grayhawk Capital, 2.0 Ventures, Elevate Capital, Hall Venture Partners, and Assure Syndicates. The fresh capital will go towards both team and market expansion. 

CNC24 Raises $8.4M In Series A Round. The Berlin-based company is “on a mission to digitize precision parts procurement” of industrial machines. The round was led by Future Industry Ventures alongside EquityPitcher Ventures and Seedcamp. The funds will go towards both supplier and market expansion.

Aurora Hydrogen Raises $10M In Series A Funding. The Canada-based company develops emission-free, hydrogen production technology. The round was led by Energy Innovation Capital with the participation of Williams, Shell Ventures, Chevron Technology Ventures, and the George Kaiser Family Foundation. The funds will be used to build and operate a 200 kg-H2/day demonstration plant for field trials in Canada. 

Vori Raises $10 Million in Series A Funding. Vori is a digital B2B inventory management platform optimizing the grocery supply chain. The funding round was led by The Factory, Greylock, E2JDJ, MKT1, and Vori’s flagship customer, Mollie Stone’s Markets. The fresh funding will be used to transform grocery store inventory management.

River Raises $11M In Series A Funding. River builds electric two-wheelers (think scooters or mopeds). The round was led by Chris Sacca's Lowercarbon Capital, with participation from Toyota Ventures. The funds will be used to open a manufacturing facility by the end of this year as it aims to enter the market by next year.

Boatsetter Raises $30M Series B Round. Boatsetter is a leading marketplace for on-the-water experiences and boat rentals. The funding will be put towards building product features, increasing boat inventory, and expanding into new markets. The round was co-led by Level Equity and included Suntex Marinas, Cetares, and others. 

Arena AI Raises $32M In Series A Round. Based in New York, Arena built an AI enterprise decision-making solution that automates things like pricing and inventory management. The round was led by Initialized Capital and Goldcrest Capital and saw participation from Founders Fund, Flexport, and prominent angel investors. The funds will help expand its core technology as it moves into new industries such as manufacturing, renewables, and financial services. 

Orange Raises $35M In Latest Financing Round. The EV startup, which hails from Kansas City, builds heavy-duty zero-emission trucks. The round was led by S2G Ventures and CC. The funds will be used to “support and accelerate the company's growth.”

Afresh Raises $115M In Series B Funding. “​​Users of Afresh’s technology average food waste reduction of 25% or more and also see a 2%-4% increase in top-line revenue growth. Retailers also experience a 40% or more increase in their produce operating margin.” The fresh capital will go towards growing its Fresh Operating System and expanding into Europe. The round was led by Spark Capital and saw participation from Insight Partners, VMG Partners, and Bright Pixel Capital. 

Nikola To Acquire Romeo Power For $144M. The EV manufacturer is acquiring Romeo Power to produce EV battery packs in-house. Nikola had previously been Romeo’s biggest customer and will surely see commercial EV development move forward at a faster rate. “By integrating Romeo’s battery technology in-house, Nikola expects annual savings of up to $350 million by 2026, plus a reduction of non-cell related battery pack costs by 30-40% by the end of 2023.”

Apollo Will Acquire Atlas Air Worldwide For $5.2B. The acquisition of Atlas, the freighter airline, will see Apollo engage in an all-cash deal that’ll see the investor group pay $3B with the remaining $2.2B composed of debt and aircraft leases. Partnering with Apollo on the deal are J.F. Lehman & Co. and Hill City Capital. “Atlas Air is the largest operator of Boeing 747 freighters and currently has 103 aircraft in its fleet, including large 777s and medium-size 767s.”

Who's Hiring? 👩‍💻

Customer Success Manager at Stord in Atlanta, GA (remote ok).

Business Development Representative at Forwardize in Berlin, Germany. 

Product Designer at Milk Moovement in Toronto, Canada (remote ok). 

💥 Have you seen any interesting startups recently? Introduce us.❤️ We would love your support. Please forward this to friends and share it on social media.🗞️ If you were forwarded this and found it interesting, please sign up.🎙 Check out Dynamo's podcast series, The Future of Supply Chain.