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 💭

🏕️We’re back after taking a few days off last week to relax and reset as we get ready to venture into the fall. 

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We Are Dynamo,

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

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Supply Chain 📦

$4.7B In Trade To Be Delayed In Eight-Day Strike At Port Of Felixstowe. Following failed wage negotiations, over 1.9K Unite union workers have walked out for 8 days in the UK’s largest container port in Felixstowe. Members rejected the 8% average pay offer from the Felixstowe Dock and Railway Company, as it was not even higher than the rate of inflation. This clearly doesn’t seem fair to Unite, as the company recorded a 75% profit increase in 2021. For more information on the Felixstowe strike, read Felixstowe Port Disruption ‘Could Continue Until Christmas’ Says Union.

Clogged US Warehouses Accelerate Decline In Trans-Pac Spot Rates. Container spot rates from Asia to the US West Coast have plummeted nearly 24% since early July. Why? Easing demand. Retailers are not in a hurry to ship across seas since their warehouses are currently stuffed to the brim. “The average vacancy rate for warehousing and distribution facilities in the US was just 3.7% in Q2 2022.” This demand has been confirmed by large players in the supply chain space as well. More below ↓

🌟Shipping Giant CMA CGM Sees Softening Of Global Freight Rates. CMA CGM, one of the largest container lines in Europe, has reported that logistic issues being cleared up have resulted in demand decreasing. “What we’ve been seeing now for many weeks is a decrease of freight rates in almost all sectors/” stated CEO Rodolphe Saade. Freight rates between the North of Europe and China were nearly $14K during COVID for an average 40-foot container. Now, it is at 9K and continues to drop according to Saade. For more, consider reading Shipping Giant CMA CGM Sees Softening Of Global Freight Rates and Hutchison, CMA CGM and COSCO Invest In Expanding Egyptian Terminals. 

The Power Of International Arbitration Amid Supply Chain Disruptions. International arbitration is becoming the preferred method for global supply chains in order to resolve cross-border disputes. This comes for a number of reasons, but largely due to significant time, cost, and liability issues that are saved by using the procedure. Rising inflation, geopolitical conflicts, contract termination provisions, and a rise in insolvency are all potential factors that could lead to this continued rise in international arbitration.  For more information, consider reading International Arbitration 2022 and Dispute Escalation Provisions And International Arbitration - A Rising Threat In England & Wales. 

Amazon Expands Hydrogen Supplier Deal As It Strives For Carbon Neutrality. The partnership with Plug Power Inc, a developer of hydrogen fuel cell systems, will see the eComm giant supplied with over 10K tons of hydrogen per year starting in 2025 (enough to power up to 80 long-haul trucks or 30K forklifts annually). Alongside Amazon, Plug has been working with other brands seeking to go carbon neutral like Walmart, which reached an agreement with the supplier to provide hydrogen for 9.5K trucks.

US Xpress Cuts Nondriving Staff, Slows Spending. National shipper US Xpress Enterprises continues to slow down on spending, including cutting another 5% of its non-driving staff this month. In fact, over 70 jobs were eliminated at its Chattanooga headquarters in May. In fact, US Xpress has been trying to find other ways to save, even looking to sell additional real estate as costs rise and shipping slows down. It reported a loss of nearly $9.5M or 19 cents a share in the first half of 2022, as it struggles to reach its 2021 numbers and recover fully from this shipping crisis. To find out more, read Truckload Carrier US Xpress Announces 2nd Round Of Corporate Layoffs and US Xpress To Lay Off Up To 10% Of Workforce In Latest Job Cuts.

Mobility 🚗

🌟California Bans The Sale Of Gasoline Cars by 2035. The Golden State, aka the largest automobile market in the US, announced this week that it plans to vote on a sweeping policy to restrict and ultimately ban the sale of ICE vehicles. The decision, to take effect by 2035, will very likely speed a wider transition to EVs because more than a dozen other states typically follow California’s lead when setting their own auto emissions guidelines. Despite this, Toyota EVP Jack Hollis Still Thinks Consumer Demand Is Not Aligned With US EV Goals. In related news, Hyundai Plans To Accelerate Its Plans For a US Plant.

NYC Launches The First Vehicle-To-Grid System. Launched this week in a partnership between Revel Rideshare, Fermata Energy, and NineDot Energy, NYC will be the first location for EV owners to provide power back to ConEdison. Tesla vehicles are not set up for vehicle-to-grid (V2G) service, so for now it’s just Revel Rideshare network’s Nissan LEAFs that will be sending electricity at a Brooklyn location. “The revenue-generating capabilities of V2G technology will accelerate the adoption of EVs and battery storage efforts,” said company reps. In related news, Owners Of The New Electric F-150 Will Get A Discount From Sharing Power. In addition, V2G Tech Is Already Proving Itself In The UK.

The Biggest Risk For Smart Cars May Be Boredom. New research from Waymo has shed some light on the effects that fatigue has on smart car driving. Fatigue is a well-known contributing factor in over 20% of highway crashes — overseeing a self-driving car for long stretches can be tiring, especially because drivers often don't have anything to do. Despite fully autonomous vehicles being a long way away, Waymo is advocating for a holistic approach to combat this issue, including training to recognize signs of fatigue, and assigning small in-car tasks. For further reading, Check Out This Piece On How Self-Driving Cars Will Change The Road. In addition, Even Warren Buffett Is Placing A Bet.

UK Carmakers Warn Rising Energy Prices Could Hamper Production. Despite last month’s 8.6% rise, UK vehicle production still remains 50% lower than pre-pandemic levels. To add to the trouble, UK gas and power prices continue to reach record highs with gas futures currently a staggering 10x the normal level for August. “If we are to attract much-needed investment to drive the production of zero-emission vehicles, urgent action is needed to mitigate these costs to make the UK more competitive for manufacturing,” Mike Hawes, Society of Motor Manufacturers and Traders CEO said in a statement. In related news, Tesla Is Planning On Introducing A 3rd Shift To Its Berlin Gigafactory. In addition, BYD Is Looking To Localize European Production. 

France Is Giving Out €4K For Drivers Trading In Their Car For A Bike. The subsidy. is meant to incentivize people to ditch their polluting modes of transportation in favor of cleaner, more environmentally friendly alternatives. Despite the subsidy being announced last year, the recent expansion is a result of increasing pressure to keep up with other European powers such as The Netherlands, Germany, and Denmark. France has said it wants 9% of the country to switch to bikes by 2024, tripling current figures of 3%. For further reading, Check Out This Piece On The 13 Best eBikes Available To Consumers Today. However, across the pond in Newport Beach, eBikes Remain A Safety Concern. 

Lucid Motors Launches A Performance Brand. This week, EV automaker Lucid announced the launch of Sapphire, a subsidiary, and its first step into the performance vehicle market. Sapphire plans to debut with a 3 motor version of the air-electric sedan, which is expected to rival the Tesla Model S Plaid. Lucid claims the Sapphire variant will be able to accelerate to 60 mph in less than 2 seconds and hit top speeds of over 200 mph. Production is slated to begin in early 2023, with an estimated $250k price tag. In other performance car news, Porsche Is Lining Up Investors For Its IPO, With An $85B Valuation. In addition, Polestar Is Looking To Boats As The Next Frontier For EVs.

The First North American EV Battery Gigafactory Opens in New York. Australian battery tech and materials company Magnis Energy Technologies has announced the opening of a factory by its JV subsidiary iM3NY in upstate New York. Production levels are planned to start at 1GWh of batteries by the end of next year before eventually 38GWh annual production by 2030 in order to keep pace with increased demand for EV batteries. “The iM3NY team has put in a huge effort to achieve this major milestone of commercial production with iM3NY being North America’s only pure home-grown battery plant,” iM3NY CEO Chaitanya Sharma said. For further reading, Read This Piece On How Automakers Are Navigating The EV Battery Bottlenecks. Elsewhere in the UK, EV Startup Arrival Is Facing Stiff Production Hurdles. 

Fundraises and M&A 💸

Mantel Raises $2M In Seed Funding. Mantel’s solution is the first high-temperature, liquid-phase carbon capture system to reduce the world’s atmospheric CO2 and help achieve net zero. The round was led by The Engine, with participation from New Climate Ventures. The funds will be used to accelerate the development and deployment of the first liquid carbon capture material that can operate at high temperatures.

CurbWaste Raises $6M Seed. The New York-based startup is building out a cloud-based and data-driven cleantech platform. The round was led by B Capital Group and Mucker Capital. The new capital will be used for technology development and new customer acquisition.

Reposite Raises $7.5M In Series A Funding.  Reposite has built an all-in-one workspace to power the travel trade. The round was jointly led by Liberty City Ventures and Greycroft, with MATH Ventures, BDMI, and angel investors also involved. The funding will be put toward expanding the team and product development.

Worldfavor Secures $10.2M In Series A Funding.  The Stockholm-based startup provides corporates with the ESG data and oversight they need to make sustainable action possible. The round was led by SEB Private Equity with participation from existing investors Brightly Ventures and Spintop Ventures. The funding will go towards its platform empowering business sustainability and expanding the business.

Luminovo Raises $11M In Seed Funding. Luminovo is a Munich-based SaaS solution that replaces manual parts of the process with automated tools. The round was led by Chalfen Ventures with participation by Tencent, Verve Ventures and Khadjavi Capital Partners, and existing investors La Famiglia and Cherry Ventures. The fresh funds will be used to reduce waste in electronics manufacturing.

Zitara Raises $12M In Series A Funding. The San Francisco-based startup builds battery management software for enterprises with large deployments. The round was led by Energy Impact Partners LP with participation from existing investors NextView Ventures, Collaborative Fund, and Trucks VC. The capital from this round will go to accelerate the adoption of their industry-leading software.

FourKites Raises $30M As Part Of An Ongoing Financing Round. Just weeks after laying off approximately 8% of its workforce, FourKites, a supply chain visibility platform designed for transportation into yards, warehouses, and stores, announced an additional $30M in funding which brings the total amount of this undisclosed round to $80M ($20M less than its previous round of funding). The intended allocation of capital and participating investors remains unknown for now. 

Tridge Raises $37.2M In Series D Funding. Tridge is a Korean platform that matches food agriculture buyers and sellers. The round was led by South Korean private equity firm DSAsset. The capital will go towards business expansion, and product and technology development.

SmartMoving Raises $41.5M In Undisclosed Funding Round.  The startup builds intuitive web, mobile, and cloud solutions that help to maximize sales, marketing, operations, and, most importantly, profits. The round was led by Mainsail Partners. The funds will be used to accelerate growth and value to SmartMoving customers.

Carbon Direct Raises $60M.  Carbon Direct is a carbon management firm helping its clients meet their climate goals by cutting emissions. The round was led by Decarbonization Partners and Quantum Energy Partners. The funds will be used for growing its client base and team.

Business Building 🛠️

Ben Horowitz on How the Best Leaders Build Culture. “I think people get culture confused with values on the wall. Integrity, we have each other’s backs, all this kind of stuff that people put on the wall and then don’t do. And so when you think about culture, I thought Bushido had the best definition, which is “culture is not a set of beliefs, it’s a set of actions.” Andy [Grove] was really good on that front. If you think about it, the reason it doesn’t work to put in your annual review, or put values on the wall and so forth, is because culture is the little things.”

The Nature of Product. We would point out the following sections - [03:46] The biggest misconceptions about what a good product team does and looks like, [07:49] The qualities that separate the best product teams, and [17:43] The gap between the best and the rest.

Learning from Regret. Not every decision leads to success and at times, we might face regret. “regret is a clarifying emotion that is also instructive about how to lead a better life. [This conversation explores] two themes -- taking time to pause and the big opportunity in reviewing regrets. In many ways, they go hand in hand. When we slow down to a halt, we give ourselves a chance to reel through what went well, what didn’t, and what we’ve gained.”

Who's Hiring? 👩‍💻

Business Systems Analyst at Stord in Atlanta, GA (remote ok).

Business Development Representative at Rouvia in Berlin, Germany. 

Senior Software Engineer at Token Transit in San Francisco, CA (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.