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Business

Retailers pay extra to fly bikes to scorching tubs from China as backup at U.S. ports delays deliveries

Containers are seen on a shipping dock as the global coronavirus disease (COVID-19) outbreak continues in the port of Los Angeles, California on April 16, 2020.

Lucy Nicholson | Reuters

A ship with 197 containers of peloton bikes and goods circled at anchor off the port of Los Angeles just before Christmas and entered a hold pattern on December 22nd until it was allowed to dock on January 2nd, according to global shipping data company MarineTraffic.

“The ship and Peloton’s expected delivery time lost 12 days while their product was almost swimming distance from shore,” said Import Genius trade data analyst William George. “This is a crazy example of the problem Peloton and other US importers are facing.”

The combination of record container volumes in the port of Los Angeles – the most heavily frequented container port in the western hemisphere due to its proximity to Asia – and delays caused by Covid-19 is slowing down imports into the USA, according to the International Longshore and Warehouse Union. Around 800 of the 15,000 members were due to Covid-19 unemployed – they either recovered from the virus or otherwise quarantined at home.

Record congestion in ports around the world has led some companies to abandon ocean shipping for air freight in order to get popular or seasonal items to shelves faster. This not only saves valuable time, but also money. According to Freightos, the international online freight market, airfares are still more expensive than shipping via ocean freight, but they have been falling in recent months.

400% more

“While air freight was volatile in the first few months of Covid, rising 400% between February and April 2020, ocean freight has become a bottleneck in global supply chains, making air freight a more profitable option in some cases.” “stated Eytan Buchman, CMO of Freightos.

Some of the congestion in U.S. ports is expected to decrease as more longshore workers are vaccinated against the coronavirus, which began Feb. 12. Only 5% of longshore workers have had vaccinations to date, said Gene Seroka, general manager of the Port of Los Angeles. He said the port is advocating “all levels of government” to vaccinate longshore workers to reduce congestion in the ports.

CH Robinson air freight

Source: CH Robinson

Peloton, who refused to comment on the article, referred CNBC to the company’s quarterly letter to shareholders published last month. The company said its profit margins for the last three months of the year were squeezed by additional shipping costs of $ 100 million during the critical holiday season.

“The global increase in shipping traffic has resulted in significant delays in all types of goods arriving in US ports, including Peloton products,” said Josh Foley, CEO of Peloton, in a February 4 letter to members. “These unpredictable delays have resulted in painful delivery dates for many people as Peloton bikes, treads and accessories have been kept in port for more than five times longer than usual.”

The Peloton shipment is just one example of the variety of goods held up in US ports.

Waiting for dock

According to MarineTraffic, 30 container ships were anchored in the ports of Los Angeles and Long Beach on Monday. More than 30 container ships are expected to arrive at the port of LA and more than 27 are expected to dock in the port of Long Beach in late March. Among the anchored ships waiting to be unloaded in the port of Los Angeles is the APL Charleston, which carried the late peloton deliveries in January. It arrived back loaded with Chinese exports on February 18.

The delays in December weren’t unusual, said Captain Adil Ashiq, MarineTraffic’s chief executive officer for the U.S. West Region.

CH Robinson air freight

Source: CH Robinson

“It is a reality that many ships, supply chain and logistics service providers are currently facing in the Port of Los Angeles and the Port of Long Beach,” he said in an interview. Port congestion data shows that the average time a container ship was anchored outside the dock last week was just over 7.5 days before it could travel inland, Ashiq said. “Now that the APL Charleston is at anchor again, it may face similar circumstances as it did on its previous port visit in December, but of course this is a cruise so anything can happen.”

The bottleneck in the ports has increased the cost of shipping, making air freight, which is usually considerably more expensive, looks like a relative bargain – especially considering the time savings. Airship prices have fallen dramatically in recent months.

A 250-kilogram air freight with a full container from China to the US has fallen in price from about 60% of the cost of a full container to only about 36%, he said.

“In other words, for the right kind of cargo, and certainly the right value, air is becoming a more compelling option, both with capacity and with far shorter transit times,” said Eytan Buchman, CMO of the international online freight market, Freightos.

Hot tubs and bikes

Brian Bourke, chief growth officer at Seko Logistics, said the time savings in product arrival justify the cost to their customers who have to meet consumer demand.

“If you’re looking to ship a hot tub across the ocean from Shanghai to New York, shipping a lighter hot tub will cost around $ 1,000, but it takes at least 35 to 45 days,” he said in an interview. That doesn’t include an extra 7-14 days if you have to book in advance, he said. Shipping air freight costs anywhere from $ 2,000 to $ 3,000, depending on its weight.

“But you only need three to four days to get your hot tub,” he said. “So if you pay two or three times, you save four to seven weeks now. In the end, the math makes sense for certain senders right now.”

Kim Peterson, transportation manager for Canyon Bicycles USA, said they ship most of their inventor by water, but their most popular bikes are being shipped via air to meet growing demand.

“Air is faster and we have to meet customer demand,” he said. “I could pay an additional $ 1,000 to $ 2,000 to get my product in an (ocean) container at the head of the line in China, but that doesn’t matter because the cargo is in LA’s congestion . “

60 to 75 days

Before the pandemic, shipping took 20 to 30 days, he said. Now it’s about 60 to 75 days while air freight takes three to five days, Peterson said. “It’s a big difference. We are currently behind in Asia,” he said. “We can’t wait. That would have an impact on sales.”

Shawn Richard, vice president of global air freight in New York at Seko Logistics, tells CNBC that they don’t expect the peak load to end anytime soon.

“We regularly fly 65-inch TVs from China to the US,” said Richard. “We saw air freight up 40% in December. Large items like hot tubs were also transported. Our ocean freight teams are now selling air freight.”

Richard says that large recreational items like ping pong tables and exercise equipment like treadmills are usually shipped by sea because of the cost. Now they are moving by air due to an increase in demand. In the Covid-19 pandemic, people are locked inside but are looking for ways to stay fit and entertaining outside.

“Barbecues and related merchandise like lawn / patio furniture, inflatable pools, filtering devices, and anything that could be used to improve safety at home instead of family vacations are now moving by air,” he said.

The lack of reliability in retail has pushed the functionality of the logistics and supply chains to their limits. John Foley, CEO of Peloton, recently told CNBC that the company would be spending an additional $ 100 million on expediting shipping to reduce delivery delays.

“We are seeing the industries in need of accelerated shipping being blown against the rush and waiting by the sea,” said Matt Castle, vice president, air cargo products and services, CH Robinson. Recreational vehicles and parts that used to be shipped by sea have shifted to air freight, he said. “One of the things I never thought air would move is vacuum cleaners. It’s a hot topic now with so many people at home.”

Seasonal deliveries

Castle said the drive to the air is a combination of factors: companies with a narrow seasonal window to sell products and production-based industries looking to re-establish a rhythm and catch up on inventory.

“Ocean congestion is increasing to meet orders and drive demand for air freight,” said Castle.

Stephen Svajian, CEO and co-founder of Anova Culinary, which sells its precision combi ovens and cookers to COSCO, Target and Amazon, said they are increasing their air freight orders in response to increasing demand for the “home dining experience”. “

“We decide which products to air freight based on the set retail date and consumer expectations. We don’t want to be sold out or fulfill orders,” said Svajian. “This year there is more pressure to use air due to delays at sea.”

This logistical strategy of getting some products in the air isn’t unique to the US. Castle said they are also seeing companies in Europe making the switch. “This market is very strong. There is a lack of container capacity everywhere.”

Ag exported

Air is also becoming an option for US exporters struggling to get their products overseas as carriers refuse US Ag exports to return empty containers. They make far fewer shipping exports from the US to China – $ 744 per container versus $ 4,922 for Chinese exports to the US. The time and money saved when empty containers do not have to be loaded, unloaded and cleaned offsets the lost money on the way back to Asia.

It also costs US farmers who are struggling to ship their goods overseas. Their access to international markets “is being severely undermined by the unprecedented dysfunction and cost of maritime transportation services,” said Peter Friedman, executive director of the Agriculture Transportation Coalition.

Richard of Seko Logistics said spices and perishable goods like lobster were shipped to China by air back in October.

There doesn’t seem to be a quick fix to unblock US ports, leaving companies like Canyon with few options.

“In the cycling world, when the sun comes out, people want to ride bikes,” said Peterson of Canyon. “Demand is still high. It’s pretty obvious that we need to keep going and ventilate.”

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Business

Proposed E.U. Legislation Goals to Rectify Gender Pay Hole

BRUSSELS – The European Union urged member states to close the gender pay gap and on Thursday announced details of a legislative proposal requiring companies to disclose gender pay gaps in wage interviews and giving applicants access to salary information. It would too Providing women with better tools to fight for equal pay.

The move takes place as workers all over the world were disproportionately affected by the economic effects of the coronavirus crisis and could lead to sanctions against companies that does not correspond.

The proposed law would also allow women to verify that they are being adequately compensated versus male colleagues. The European Commission, the bloc’s executive branch, wants to give workers the opportunity to apply for appropriate compensation in the event of discrimination.

Under the proposed law, those who believe they are victims could take action through independent observers of compliance with the equal pay requirements. You could also raise gender pay complaints through employee representatives either individually or in groups.

“You need transparency for equal pay,” said Ursula von der Leyen, the President of the Commission, who had undertaken to make pay transparency binding after taking office in December 2019. “Women need to know whether their employers treat them fairly. And if they don’t, they must have the power to fight back and get what they deserve. “

Although in theory the principle of equal pay for equal work is one of the basic values ​​of the European Union of 27 countries, the difference in salaries for men and women doing the same work is 14.1 percent and the difference in pensions is 30 percent. said the commission. According to the European Institute for Gender Equality, a research group, female managers earn a quarter less than men.

Despite several efforts to enforce equal pay in practice, it appeared to be inaccessible to women across the bloc for more than 60 years, which is a beacon for human rights and equality. So far, only 10 European countries, including Austria, Germany, Italy and Sweden, have introduced national legislation on wage transparency.

The proposed EU-wide law requires the approval of the member states and the European Parliament. There are concerns that it could be blocked by national governments, as has happened with the European Commission’s proposal to introduce gender quotas on boards of directors. Faced with these potential obstacles, Vera Jourova, the bloc’s top official for values ​​and transparency, described the pay proposal as “pure pragmatism and good economic calculations”, stressing that companies benefit from gender equality at work.

“We see quite limited appetites in some Member States and surprisingly in those who have already put such measures in place,” said Ms Jourova. “What gives me hope is that this is badly needed.”

Companies with more than 250 employees would be required to publicly disclose their gender pay gap, reflecting the concerns of smaller organizations that have suffered a severe economic blow from the coronavirus.

“I am aware that in times of economic downturn and the uncertainty caused by the pandemic, this proposal may seem out of date for some,” said Helena Dalli, the bloc’s equal opportunities commissioner, and stressed that the law was “appropriately proportionate ” be.

Under the bill, national governments would be required to penalize companies that violate equal pay measures. Governments could decide on the penalties imposed, including financial sanctions, which must be effective and proportionate, the commission said.

The suggestion comes as researchers warn that the virus could significantly delay women’s progression in the workplace. According to the 2020 Women in Work Index, which is compiled annually by PricewaterhouseCoopers in 33 industrialized countries, advice, economic damage caused by the pandemic and the effects of government policy have a disproportionately high impact on women. This has reversed the steady trend of gains for women in employment and resulted in what the consultancy calls “shecession”.

Women’s rights groups welcomed the Commission’s initiative. “Information is power: Pay transparency would enable employees to know the value of their work and to negotiate salaries accordingly,” said Carlien Scheele, Director of the European Institute for Gender Equality. “This would help combat discrimination in the workplace, which can only be a boon to gender equality.”

Aware of the possible legal and economic implications of the proposal, employers carefully assessed it and blamed it on what they described as profound reasons for gender inequality.

“Appropriate compensation transparency requirements can be part of the answer,” said Markus J. Beyrer, head of BusinessEurope, a lobby group. “However, the key to improving gender equality is addressing the root causes of inequalities, particularly gender stereotypes, labor market segregation and inadequate childcare.”

Mr Beyrer said the Commission must respect the “competences of the national social partners” and “should not add undue burdens to human resource management and pave the way for inappropriate litigation”.

According to Ms. Jourova, “binding rules” are required, not just trust in social responsibility Companies. “We see it’s going nowhere,” she said.

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Politics

Democrats vow to penalize massive companies that do not pay $15 minimal wage

Senator Bernie Sanders (IV.T.), Chairman of the Budgets Committee, speaks during a U.S. Senate Budgets Committee hearing on large corporation wages on Capitol Hill in Washington February 25, 2021.

Stefani Reynolds | Reuters

Top Democrats are drafting new plans penalizing large corporations who pay their employees less than $ 15 an hour after a Senate official ruled Thursday that the party would not include a wage increase in its $ 1.9 trillion economic bills could.

Democrats, led by Sens. Bernie Sanders, I-Vt., And Ron Wyden, D-Ore., Vowed to make changes to the existing aid package that would penalize companies that pay workers below a certain hourly rate.

Sanders swiftly rejected the decision of Senate MP Elizabeth McDonough, who found Thursday night that a proposed $ 15 minimum wage scheme did not meet the stringent budgetary standards imposed as part of the budget reconciliation.

“I do not agree with today’s decision of the Senate MP,” said Sanders in a press release on Thursday. “In the days ahead, I’ll be working with my Senate colleagues to drive a change that will help big, profitable companies that don’t pay workers at least $ 15 an hour have tax deductions and small businesses receive.” Incentives they need to raise wages. “

“This change must be included in this draft reconciliation,” he added.

On Friday morning, Wyden, who is working closely with Sanders on the change, announced more details on “Plan B”.

He said his change, if adopted, would impose a 5% penalty on a large company’s total wage bill for workers earning less than a certain amount. Wyden added that the penalty would increase over time and include safeguards to prevent companies from attempting to outsource workers to avoid paying living wages.

“We couldn’t get in the front door or the back door, so we’ll try to go through the window,” said Wyden of the new plan. “As the talks continue, I believe that this ‘Plan B’ offers us a way to move forward and to achieve this through the reconciliation process.”

The US last raised the minimum wage in 2009 to USD 7.25 per hour.

Wyden, who also chairs the Senate Finance Committee, added that his amendment would give small businesses that pay higher wages to their workers a tax credit of 25% of wages up to $ 10,000 per year per employer.

A senior Democratic adviser confirmed Friday that Senate Majority Leader Chuck Schumer, DN.Y., is considering adding a provision to the bill in line with Sanders and Wyden’s proposals.

Though the Democrats made the MP’s decision clearer, Republican Senator Josh Hawley of Missouri is working to pass a new law aimed at raising the minimum wage for workers.

Hawley, who has faced heavy bipartisan criticism for voting to overthrow President Joe Biden’s election, announced on Wednesday a bill that would give low-wage workers a “bonus” through an automatic tax credit tax credit.

Hawley’s office touted the plan as better than a minimum wage hike because it “doesn’t pose a huge new burden on small businesses, many of which are still recovering from damaging closures.”

Senators will have the option to introduce changes to Biden’s $ 1.9 trillion stimulus plan after the House passes the legislation in a vote expected later on Friday in the lower chamber. Democrats hold a slim 50:50 majority in the Senate, with Vice President Kamala Harris having the casting vote.

Still, the Senate bill debate is expected to be full of pitfalls, as a single democratic vote against the plan would stall it.

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Business

Houston mayor says state ought to pay for prime energy payments

Workers repair a power line in Austin, Texas, United States on Wednesday, February 18, 2021.

Thomas Ryan Allison | Bloomberg | Getty Images

Houston Mayor Sylvester Turner on Sunday called on the state of Texas to pay the huge electricity bills reported by numerous Texans after severe winter weather turned off electricity and increased energy prices.

Last week’s freezing conditions caused major grid outages and skyrocketing demand, leaving millions of people without heat and electricity. Now that power has resumed for most of Texas, some households can expect utility bills of up to $ 10,000.

“People who are getting those exorbitant utility bills and having to pay to have their homes repaired shouldn’t be held responsible,” Turner said during an interview on CBS ‘Face the Nation. “These exorbitant costs should be borne by the state of Texas and not by the individual customers who did not cause this disaster this week.”

The high electricity bills in Texas are due to the state’s unregulated power grid, which is almost cut off from the rest of the country. In the market-oriented system, customers choose their own electricity suppliers. In many cases, prices rise as demand increases.

Texas’ Electric Reliability Council (ERCOT), which powers around 90% of the state, was unprepared for the cold and the surge in electricity demand as people tried to heat their homes.

“Everything that happened in the past week was predictable and preventable. Our system in Texas is designed for the summer heat, not necessarily a winter event,” said Turner.

“Climate change is real and these big storms can happen at any time,” he added. “These systems have to be weathered … we have to open the Texas grid.”

The exorbitant bills prompted Republican Governor Greg Abbott to hold an emergency meeting with lawmakers on Saturday to discuss how the state can ease the burden on consumers.

Continue reading:
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Blackouts in Texas show how vulnerable the power grid is to climate change
The power failure in Texas sparked a feud over Republican oversight of the power industry

The Texas Public Utility Commission held an emergency meeting Sunday to put in place a moratorium on reducing customer power on non-payments. There are also plans to prevent vendors from sending customer invoices, Abbott announced at a press conference on Sunday.

“Texans who have been freezing for days without electricity shouldn’t face skyrocketing energy bills due to a surge in the energy market,” Abbott said at the briefing.

Rep. Michael McCaul, R-Texas, said during an interview on CNN Sunday that the state would use the federal government’s disaster relief to help high utility customers.

After more than 3 million people lost power in Texas last week, ERCOT announced that it had been restored to normal and power was restored for millions of customers. According to current data from PowerOutage.us, more than 30,000 people in Texas had no electricity on Sunday morning at 11:30 a.m.

According to the Texas Commission on Environmental Quality, more than 1,300 public water systems were disrupted by the extreme weather on Saturday and more than 15 million people were forced to boil their water on Saturday.

President Joe Biden approved a disaster declaration for 77 Texas counties on Saturday that unlocked state aid to Texans, grants for temporary repairs to homes and houses, and low-cost loans to cover uninsured property damage. The goal of the state is to finally put all 254 counties under the declaration.

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Business

U.S. to pay WHO greater than $200 million in membership charges Trump withheld

Newly confirmed Secretary of State Antony Blinken speaks to reporters during his first press conference at the State Department in Washington on January 27, 2021.

Carlos Barria | Reuters

WASHINGTON – Secretary of State Antony Blinken said Wednesday that the United States will pay the more than $ 200 million it owes the World Health Organization by the end of the month. This reaffirms the new government’s commitment to global health.

“This is an important step forward in fulfilling our financial commitments as a WHO member and reflects our renewed commitment to ensuring WHO receives the support it needs to lead the global response to the pandemic, even as we do work to reform them for the future. ” “Blinken told the UN Security Council during a video conference.

“The United States will work with our partners around the world to expand production and sales capabilities and improve access, including marginalized populations,” said Blinken in his first speech since being named the country’s best diplomat.

Blinken also urged his colleagues to fight misinformation about vaccines and provide investigators with relevant information about the origin of the coronavirus.

“The ongoing expert investigation into the causes of this pandemic and the report that will be published must be independent of scientific and fact-based evidence and free from interference,” said Blinken. “To better understand this pandemic and prepare for the next one, all countries must provide all data from the earliest days of the outbreak,” he added.

Blinken’s remarks come as President Joe Biden works to fight the unfolding coronavirus pandemic, which killed more than 2.4 million people and infected more than 109.6 million worldwide, according to Johns Hopkins University. In the United States, the coronavirus has infected more than 27.7 million people and killed at least 488,295 people.

In one of his first acts as president, Biden overturned former President Donald Trump’s decision to withdraw the US from the Geneva-based health organization of the United Nations.

In April, Trump said he had suspended US funding for the organization pending a review, citing what he described as “the World Health Organization’s role in the serious mismanagement and cover-up of the spread of the coronavirus”.

A month later, he announced his intention to remove the US from the organization amid the coronavirus pandemic, citing the WHO’s so-called abuse of funding and its cozy relationship with China.

“China has total control of the World Health Organization even though it only pays $ 40 million a year, compared to what the United States paid, which is roughly $ 450 million a year,” Trump said.

In July, the Trump administration sent the UN Secretary-General its notice to withdraw the US from the World Health Organization by July 6, 2021.

In October, WHO Director General Tedros Adhanom Ghebreyesus said he hoped the United States would reconsider its decision to leave WHO, adding that the coronavirus could not be defeated “in a divided world”.

“The problem is not the money. It is not the funding that is the problem. It is actually the relationship with the US that is more important and its overseas leadership,” Ghebreyesus told a virtual audience at the Aspen Security Forum.

Categories
World News

China’s digital yuan must beat Alipay, WeChat Pay first: PIIE

China’s digital yuan must first dethrone the country’s domestic e-payment giants before it can think about competing against the greenback internationally, says Martin Chorzempa of the Peterson Institute for International Economics.

“A lot of people talk about (the digital yuan) as a driver of renminbi internationalization,” Chorzempa, senior fellow at PIIE, told CNBC’s Street Signs Asia on Wednesday. “I think they have to beat Alipay and WeChat Pay in China before they can contain the US dollar.”

“It will essentially be the central bank versus the big tech companies, and that will be very interesting to watch,” he said.

“It’s going to be essentially the central bank versus the big tech companies, and that’s going to be pretty interesting to watch.”

Martin Chorzempa

Senior Fellow at the Peterson Institute for International Economics

China’s central bank developed the digital yuan and is expected to work in a similar way to transactions through existing payment apps. The country’s capital, Beijing, recently spent $ 1.5 million on a digital currency test during the New Year celebrations after similar experiments were conducted in Shenzhen and Suzhou.

Photo taken on Feb. 12, 2021 shows a digital red RMB envelope during the Digital Wangfujing Snow and Ice Shopping Festival in Beijing, capital of China.

Costfoto | Barcroft Media via Getty Images

Chorzempa said one of the main reasons behind the push for the digital yuan was the desire for a government-sponsored and controlled alternative to established giants like the Alibaba-affiliated Alipay app and Tencent’s Wechat Pay, which currently process about 95% of digital payments in China.

Unlike most of the other major economies around the world, mobile payments – primarily through the Alipay app and Wechat Pay – have ousted cash as the predominant form of consumer payment in China in recent years.

“(The digital yuan) is something that is truly unprecedented in the major economies,” said Chorzempa. “China is … by far the most advanced in digital currency and it’s exciting to see.”

“Nothing like Bitcoin or Ethereum”

However, Chorzempa said China’s digital yuan has very little to do with cryptocurrencies like Bitcoin, which are known for their high price volatility.

“I would say that the level of security (the digital yuan) is very high and the risk is low,” he said. “It’s the same value as any regular renminbi, so there shouldn’t be any fluctuations in price to worry about.”

Intermediaries selling the digital currency in China are also likely to be “fairly safe and carefully regulated” as long as they are approved by the government, Chorzempa said.

“I wouldn’t worry about the safety of a digital renminbi in a central bank regulated wallet,” he added.

According to the PIIE researcher, Sweden is expected to be among the first advanced economies after China to adopt a digital currency.

Ever since Facebook first proposed the launch of the Libra cryptocurrency, which has now been renamed Diem, there has been a “great surge of interest” among central banks fearing that a private tech company “might take over their currency,” much like Alipay and WeChat Pay payments dominate in China, he said.

“I assume that the central bank’s digital currencies will continue to expand worldwide,” said Chorzempa.

– CNBC’s Evelyn Cheng contributed to this report.

Categories
Business

Pay farmers to chop carbon footprint

Fourth generation rancher Loren Poncia made Stemple Creek Ranch carbon positive. He has implemented rotary cattle grazing systems that allow the soil and grass to recover, put compost on pastures, and planted chicory that aerates the soil.

Courtesy Paige Green

President Joe Biden has urged U.S. farmers to lead the way in offsetting greenhouse gas emissions to combat climate change – a goal that fourth generation rancher Loren Poncia set out to achieve over a decade ago.

Despite being in the beef sector, which is a huge contributor to global warming, Poncia has made its northern California ranch one of the few carbon positive cattle farms in the country.

“It’s a win-win – for the environment and for our paperback,” said Poncia, who introduced carbon farming practices through a partnership with the Marin Carbon Project.

Experts estimate that through regenerative farming practices, farmers around the world can sequester enough of the carbon to avert the worst effects of climate change. Research suggests that removing carbon already in the atmosphere and replenishing the soil could lead to 10% carbon depletion worldwide. The United Nations has warned that efforts to contain global emissions without drastic changes in global land use and agriculture will be neglected.

The Poncia ranch is sequestering more carbon than is released by processes like rotary cattle grazing systems, which allow the soil and grass to recover. It involves applying compost to pastures instead of chemical fertilizers to avoid tillage, build worm farms, and plant chicory to aerate the soil. Such climate-friendly projects have enabled Poncia to grow more grass and produce more beef.

“If we as a world want to undo the damage done, it is through agriculture and food sustainability,” said Poncia. “We are excited and positive about the future.”

While some farmers, ranchers, and foresters have already adopted sustainable practices that capture existing carbon and store it in the soil, others are concerned about up-front costs and uncertain yields that can vary by state and farm.

The U.S. Department of Agriculture recently said it would encourage farmers to adopt such sustainable practices. And more and more researchers and companies have started to better quantify and manage the carbon stored in the soil.

USDA pushes for carbon cultivation

Tackling climate change has become a matter of survival for American farmers who have suffered great losses from floods and droughts that have become more frequent and more destructive across the country.

In 2019, farmers lost tens of thousands of acres in historic floods. And NASA scientists report that rising temperatures have pushed the western United States into the worst decade-long drought in the last millennium.

In the United States alone, the Environmental Protection Agency estimates that agriculture causes more than 10.5% of greenhouse gas emissions to warm the planet.

As a result, the Biden government now plans to steer $ 30 billion in agricultural aid from the USDA’s Commodity Credit Corporation to pay farmers to implement sustainable practices and capture carbon in their soil.

This file photo dated Monday, March 18, 2019 shows flood and storage tanks underwater on a farm along the Missouri River in rural Iowa north of Omaha, Neb.

AP Photo | Iowa Homeland Security and Emergency Management

Biden’s candidate for USDA Agriculture Secretary Tom Vilsack, who has vowed to fulfill Biden’s broader plan to achieve a net-zero economy by 2050, said the money could be used to create new markets that encourage producers to do so To fix carbon in the soil.

Former President Donald Trump previously used these funds to save farmers who were harmed by his trade wars with China, Mexico and Canada that lowered commodity prices.

Using the CCC money to create a carbon bank may not require Congressional approval and agricultural lobby groups are expected to convince Congress to expand the fund.

“It is a great tool for us to create a structure that will inform future farm bills of what is promoting carbon sequestration, what is promoting precision farming, what is promoting soil health and regenerative farming practices,” said Vilsack upon his Senate confirmation this month Listen.

Vilsack, who served as President Barack Obama’s Agriculture Secretary for eight years, has also asked Congress to set up an advisory group of farmers to help build a carbon market and ensure farmers get the benefits.

The government’s drive to promote on-farm carbon sequestration could support an emerging on-farm emissions reduction market and the technological advances that help farmers improve soil health and participate in carbon trading markets.

An emerging market

Some farmers have partnered with non-profit environmental and political groups to work on environmental sustainability. The movement was also increasingly supported by private companies.

Indigo Ag, a start-up advocating regenerative farming practices, said companies like Barclays, JPMorgan Chase and Shopify have committed to buying agricultural carbon credits that will help farmers with transition costs.

Chris Harbourt, global director of carbon at Indigo Ag, said the company is working with growers to remove financial barriers during the transition and provide training on implementing regenerative farming practices like growing cover crops off-season or switching to no-till crops to offer.

“Growers who use regenerative practices see benefits that go well beyond financial ones,” said Harbourt. “The soil is healthier and more resilient, which creates more opportunities for profitable years, even in difficult weather conditions.”

More of CNBC environment::
Biden’s climate agenda will face major obstacles with an evenly divided Senate
Climate change has cost the US billions of dollars in flood damage

Erik Fyrwald, CEO of Syngenta, a Switzerland-based seed and crop protection company, said government policies must provide appropriate incentives for farmers to accelerate the transition to regenerative agriculture.

“The incentives must be sufficient and reliable enough to give farmers the confidence to make the necessary investments to implement these practices on their farm,” said Fyrwald.

Poncia, who has twice received government funding from the California Healthy Soil Program to implement sustainable practices on his ranch, hopes the administration can provide enough support to agriculture so that other people can achieve similar results.

“Agriculture wants to support this movement, but it needs help, education and the ability to reduce the risk,” said Poncia. “If the government supports the farmers who get good results, everyone else will follow.”

Categories
Business

‘We Are Forgotten’: Grocery Employees Hope for Increased Pay and Vaccinations

HAC, the Oklahoma company that owns Cash Saver and Homeland, is employee owned. Its managing director, Marc Jones, said last year’s initial hero pay was “a reflection of the crowd in our stores, and as that wave subsided, it seemed like the time to end it.” It’s been a huge expense for the company, which has around 80 stores, 3,400 employees, and competes with Walmart.

Even with a better year than usual, groceries are “a particularly profitable” business, Jones said. By March he said, “It was a big question if the local grocery store would even survive and if everyone would go online.”

Ms. Sockwell said she was more concerned about the vaccination delay for food workers, especially given that her colleagues tended to work every hour they could, at the minimum wage.

“Most of my employees barely have a high school diploma,” said Ms. Sockwell, whose local UFCW unit tried to get Oklahoma officials to prioritize vaccination for food workers. “They want to do whatever they can to keep food and electricity in their home.”

She added, “We are simple workers who don’t need bachelor’s and master’s degrees, but we’re still human.”

At least 13 states in at least some counties have approved some grocery store employees for the Covid-19 vaccine. They are Alabama, Arizona, California, Delaware, Illinois, Kansas, Kentucky, Maryland, Nebraska, New York, Pennsylvania, Virginia, and Wyoming.

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Business

If Poor Nations Go Unvaccinated, a Examine Says, Wealthy Ones Will Pay

Durch die Monopolisierung der Impfstoffversorgung gegen Covid-19 drohen den reichen Nationen mehr als eine humanitäre Katastrophe: Die daraus resultierenden wirtschaftlichen Verwüstungen werden die wohlhabenden Länder fast genauso hart treffen wie die in den Entwicklungsländern.

Dies ist die entscheidende Erkenntnis aus einer akademischen Studie, die am Montag veröffentlicht werden soll. Im extremsten Szenario – mit reichen Nationen, die bis Mitte dieses Jahres vollständig geimpft waren, und armen Ländern, die weitgehend geschlossen sind – kommt die Studie zu dem Schluss, dass die Weltwirtschaft Verluste von mehr als 9 Billionen US-Dollar erleiden würde, eine Summe, die über der Jahresproduktion Japans und Deutschlands liegt kombiniert.

Fast die Hälfte dieser Kosten würde von wohlhabenden Ländern wie den Vereinigten Staaten, Kanada und Großbritannien übernommen.

In dem Szenario, das Forscher als am wahrscheinlichsten bezeichnen und in dem Entwicklungsländer bis Ende des Jahres die Hälfte ihrer Bevölkerung impfen, würde die Weltwirtschaft immer noch einen Schlag zwischen 1,8 und 3,8 Billionen US-Dollar absorbieren. Mehr als die Hälfte der Schmerzen würde sich auf wohlhabende Länder konzentrieren.

Die von der Internationalen Handelskammer in Auftrag gegebene Studie kommt zu dem Schluss, dass eine gerechte Verteilung der Impfstoffe im wirtschaftlichen Interesse jedes Landes liegt, insbesondere derjenigen, die am stärksten vom Handel abhängen. Es ist eine Zurechtweisung für die weit verbreitete Auffassung, dass der Austausch von Impfstoffen mit armen Ländern lediglich eine Form der Wohltätigkeit ist.

“Natürlich sind alle Volkswirtschaften miteinander verbunden”, sagte Selva Demiralp, Wirtschaftswissenschaftlerin an der Koc-Universität in Istanbul, die zuvor bei der Federal Reserve in Washington gearbeitet hatte, und eine der Autoren der Studie. “Keine Volkswirtschaft wird vollständig wiederhergestellt, wenn die anderen Volkswirtschaften nicht wiederhergestellt werden.”

Frau Demiralp merkte an, dass eine globale philanthropische Initiative namens ACT Accelerator, die darauf abzielt, Entwicklungsländern Pandemieressourcen zur Verfügung zu stellen, Verpflichtungen in Höhe von weniger als 11 Milliarden US-Dollar für ein Ziel von 38 Milliarden US-Dollar eingegangen ist. Die Studie legt die wirtschaftlichen Gründe für das Schließen der Lücke dar. Die verbleibenden 27 Milliarden US-Dollar mögen auf den ersten Blick wie eine enorme Summe aussehen, sind aber im Vergleich zu den Kosten für die Fortsetzung der Pandemie eine Kleinigkeit.

Die alltägliche Idee, dass die Pandemie weder Grenzen noch Rassen- und Klassenunterschiede respektiert, wurde von Unternehmensleitern und Experten gefördert. Dieses tröstliche Konzept wurde durch die Tatsache widerlegt, dass Covid-19 den Tod und die Zerstörung von Lebensgrundlagen bei Niedriglohn-Servicemitarbeitern und insbesondere bei rassistischen Minderheiten trainiert hat, während Angestellte weitgehend sicher von zu Hause aus arbeiten konnten, und einige andere der reichsten Menschen der Welt können die Pandemie auf Yachten und Privatinseln ausreiten.

Aber im Bereich des internationalen Handels gibt es kein Versteck vor dem Coronavirus, wie die Studie zeigt. Stattdessen gibt es globale Lieferketten, die die Teile für die Industrie produzieren und die weiterhin gestört werden, solange das Virus eine Kraft bleibt.

Ein Team von Wirtschaftswissenschaftlern der Koc University, der Harvard University und der University of Maryland untersuchte Handelsdaten in 35 Branchen in 65 Ländern und untersuchte ausführlich die wirtschaftlichen Auswirkungen einer ungleichen Impfstoffverteilung.

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Antworten auf Ihre Impfstofffragen

Wenn ich in den USA lebe, wann kann ich den Impfstoff bekommen?

Während die genaue Reihenfolge der Impfstoffempfänger von Staat zu Staat unterschiedlich sein kann, werden die meisten Ärzte und Bewohner von Langzeitpflegeeinrichtungen an erster Stelle stehen. Wenn Sie verstehen möchten, wie diese Entscheidung getroffen wird, hilft dieser Artikel.

Wann kann ich nach der Impfung wieder zum normalen Leben zurückkehren?

Das Leben wird erst wieder normal, wenn die Gesellschaft als Ganzes ausreichend Schutz gegen das Coronavirus erhält. Sobald die Länder einen Impfstoff zugelassen haben, können sie in den ersten Monaten höchstens einige Prozent ihrer Bürger impfen. Die nicht geimpfte Mehrheit bleibt weiterhin anfällig für Infektionen. Eine wachsende Anzahl von Coronavirus-Impfstoffen zeigt einen robusten Schutz vor Krankheit. Es ist aber auch möglich, dass Menschen das Virus verbreiten, ohne zu wissen, dass sie infiziert sind, weil sie nur leichte oder gar keine Symptome haben. Wissenschaftler wissen noch nicht, ob die Impfstoffe auch die Übertragung des Coronavirus blockieren. Selbst geimpfte Menschen müssen vorerst Masken tragen, Menschenmassen in Innenräumen meiden und so weiter. Sobald genügend Menschen geimpft sind, wird es für das Coronavirus sehr schwierig, gefährdete Personen zu finden, die infiziert werden können. Je nachdem, wie schnell wir als Gesellschaft dieses Ziel erreichen, könnte sich das Leben im Herbst 2021 einem normalen Zustand nähern.

Muss ich nach der Impfung noch eine Maske tragen?

Ja, aber nicht für immer. Die beiden Impfstoffe, die möglicherweise in diesem Monat zugelassen werden, schützen die Menschen eindeutig vor einer Krankheit mit Covid-19. Die klinischen Studien, die diese Ergebnisse lieferten, waren jedoch nicht darauf ausgelegt, festzustellen, ob geimpfte Personen das Coronavirus noch verbreiten können, ohne Symptome zu entwickeln. Das bleibt eine Möglichkeit. Wir wissen, dass Menschen, die von Natur aus mit dem Coronavirus infiziert sind, es verbreiten können, ohne Husten oder andere Symptome zu haben. Die Forscher werden diese Frage bei der Einführung der Impfstoffe intensiv untersuchen. In der Zwischenzeit müssen sich selbst geimpfte Menschen als mögliche Spreizer vorstellen.

Wird es wehtun? Was sind die Nebenwirkungen?

Der Impfstoff gegen Pfizer und BioNTech wird wie andere typische Impfstoffe als Schuss in den Arm abgegeben. Die Injektion unterscheidet sich nicht von denen, die Sie zuvor erhalten haben. Zehntausende Menschen haben die Impfstoffe bereits erhalten, und keiner von ihnen hat ernsthafte gesundheitliche Probleme gemeldet. Einige von ihnen haben jedoch kurzlebige Beschwerden verspürt, darunter Schmerzen und grippeähnliche Symptome, die normalerweise einen Tag anhalten. Es ist möglich, dass die Leute planen müssen, nach dem zweiten Schuss einen Tag frei zu nehmen oder zur Schule zu gehen. Obwohl diese Erfahrungen nicht angenehm sind, sind sie ein gutes Zeichen: Sie sind das Ergebnis der Begegnung Ihres eigenen Immunsystems mit dem Impfstoff und einer starken Reaktion, die eine dauerhafte Immunität gewährleistet.

Werden mRNA-Impfstoffe meine Gene verändern?

Nein. Die Impfstoffe von Moderna und Pfizer verwenden ein genetisches Molekül, um das Immunsystem zu stärken. Dieses als mRNA bekannte Molekül wird schließlich vom Körper zerstört. Die mRNA ist in einer öligen Blase verpackt, die mit einer Zelle verschmelzen kann, so dass das Molekül hineinrutschen kann. Die Zelle verwendet die mRNA, um Proteine ​​aus dem Coronavirus herzustellen, die das Immunsystem stimulieren können. Zu jedem Zeitpunkt kann jede unserer Zellen Hunderttausende von mRNA-Molekülen enthalten, die sie produzieren, um eigene Proteine ​​herzustellen. Sobald diese Proteine ​​hergestellt sind, zerkleinern unsere Zellen die mRNA mit speziellen Enzymen. Die mRNA-Moleküle, die unsere Zellen herstellen, können nur wenige Minuten überleben. Die mRNA in Impfstoffen ist so konstruiert, dass sie den Enzymen der Zelle etwas länger standhält, sodass die Zellen zusätzliche Virusproteine ​​bilden und eine stärkere Immunantwort auslösen können. Die mRNA kann jedoch höchstens einige Tage halten, bevor sie zerstört wird.

Wenn Menschen in Entwicklungsländern aufgrund von Sperren, die erforderlich sind, um die Ausbreitung des Virus einzudämmen, arbeitslos bleiben, müssen sie weniger Geld ausgeben, was den Umsatz für Exporteure in Nordamerika, Europa und Ostasien verringert. Multinationale Unternehmen in fortgeschrittenen Ländern werden auch Schwierigkeiten haben, die erforderlichen Teile, Komponenten und Waren zu sichern.

Im Zentrum der Geschichte steht die Tatsache, dass der größte Teil des internationalen Handels keine fertigen Waren umfasst, sondern Teile, die von einem Land in ein anderes geliefert werden, um zu Produkten gefaltet zu werden. Von den Waren im Wert von 18 Billionen US-Dollar, die im vergangenen Jahr gehandelt wurden, machten sogenannte Zwischenprodukte nach Angaben der Organisation für wirtschaftliche Zusammenarbeit und Entwicklung 11 Billionen US-Dollar aus.

Die Studie stellt fest, dass die anhaltende Pandemie in armen Ländern wahrscheinlich am schlimmsten für Branchen ist, die besonders von Zulieferern auf der ganzen Welt abhängig sind, darunter Automobilindustrie, Textilindustrie, Bauwesen und Einzelhandel, in denen der Umsatz um mehr als 5 Prozent sinken könnte.

Die Ergebnisse ergänzen die Grundannahme, dass die Pandemie die Weltwirtschaft ungleicher als je zuvor machen wird, um eine komplizierende Schicht. Während dies wahr erscheint, könnte eine auffällige Form der Ungleichheit – der Zugang zu Impfstoffen – universelle Probleme aufwerfen.

In einem außergewöhnlichen Beweis für die Innovationsfähigkeit der weltweit qualifiziertesten Wissenschaftler haben einige der führenden Pharmaunternehmen in einem kleinen Bruchteil der Zeit, die für möglich gehalten wurde, lebensrettende Impfstoffe hergestellt. Aber die reichsten Länder in Nordamerika und Europa haben Bestellungen für den größten Teil des Angebots abgeschlossen – genug, um das Zwei- und Dreifache ihrer Bevölkerung zu impfen – und die armen Länder haben sich bemüht, ihren Anteil zu sichern.

Viele Entwicklungsländer, von Bangladesch über Tansania bis Peru, werden wahrscheinlich bis 2024 warten müssen, bevor sie ihre Bevölkerung vollständig impfen können.

Die Initiative, arme Länder mit zusätzlichen Ressourcen zu versorgen, gewann mit dem Amtsantritt von Präsident Biden an Bedeutung. Die Trump-Administration hat nicht zur Sache beigetragen. Dr. Anthony S. Fauci, Chief Medical Officer von Herrn Biden für die Pandemie, kündigte umgehend an, dass die Vereinigten Staaten sich der Kampagne zum Austausch von Impfstoffen anschließen würden.

Im Gegensatz zu den Billionen Dollar, die Regierungen in reichen Ländern für die Rettung von Unternehmen und Arbeitnehmern ausgegeben haben, die durch den Gesundheitsnotstand und den wirtschaftlichen Abschwung geschädigt wurden, haben die Entwicklungsländer Schwierigkeiten, darauf zu reagieren.

Da Wanderarbeitnehmer aus armen Ländern während der Pandemie Arbeitsplätze verloren haben, konnten sie nicht so viel Geld nach Hause schicken, was Ländern, die sich auf diese sogenannten Überweisungen verlassen haben, wie den Philippinen, Pakistan und Bangladesch, einen schweren Schlag versetzt.

Die globale Rezession hat die Nachfrage nach Rohstoffen gedrosselt und Kupferproduzenten wie Sambia und die Demokratische Republik Kongo sowie von Öl abhängige Länder wie Angola und Nigeria dezimiert. Da die Fälle von Covid-19 stark angestiegen sind, hat dies den Tourismus gedrückt und Arbeitsplätze und Einnahmen in Thailand, Indonesien und Marokko gekostet.

Viele arme Länder sind mit Schuldenlasten in die Pandemie eingetreten, die einen Großteil ihrer Staatseinnahmen absorbierten und ihre Ausgaben für die Gesundheitsversorgung einschränkten. Private Gläubiger haben sich geweigert, an einem bescheidenen Programm zur Aussetzung der Schulden teilzunehmen, das von der Gruppe der 20 geschmiedet wurde. Die Weltbank und der Internationale Währungsfonds versprachen beide große Erleichterungen, brachten jedoch keine nennenswerten Dollars hervor.

Auch dies scheint sich zu ändern, da eine neue Führung Washington übernimmt. Die Trump-Regierung lehnte eine geplante Ausweitung der sogenannten Sonderziehungsrechte beim IWF um 500 Milliarden US-Dollar ab, einem Reservevermögen, das die Regierungen gegen harte Währungen eintauschen können. Der Aufstieg von Herrn Biden hat die Hoffnungen der Fondsmitglieder gestärkt, dass seine Verwaltung die Expansion unterstützen wird. Demokraten im Kongress – jetzt unter Kontrolle beider Kammern – haben Unterstützung für eine Maßnahme signalisiert, die das Finanzministerium zum Handeln zwingen würde.

In Hauptstädten wie Washington und Brüssel wurde die Diskussion über die Unterstützung der Entwicklungsländer jedoch moralisch gestaltet. Führer haben darüber diskutiert, wie viel sie übrig haben können, um den am wenigsten glücklichen Gemeinschaften des Planeten zu helfen, während sie sich hauptsächlich um ihre eigenen Leute kümmern.

Die Studie fordert diesen Rahmen heraus. Wenn es nicht darum geht, dass die Menschen in den Entwicklungsländern Zugang zu Impfstoffen erhalten, schaden die Staats- und Regierungschefs der reichsten Nationen ihrem eigenen Vermögen.

“Keine Wirtschaft, wie groß sie auch sein mag, wird gegen die Auswirkungen des Virus immun sein, bis die Pandemie überall ein Ende hat”, sagte John Denton, Generalsekretär der Internationalen Handelskammer. „Der Kauf von Impfstoffen für die Entwicklungsländer ist kein Akt der Großzügigkeit der reichsten Nationen der Welt. Es ist eine wesentliche Investition für die Regierungen, wenn sie ihre Binnenwirtschaft wiederbeleben wollen. “

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Boeing to pay greater than $2.5 billion to settle prison conspiracy prices over 737 Max

An employee works near a Boeing 737 Max aircraft at the Boeing 737 Max manufacturing facility in Renton, Washington, the United States, on December 16, 2019.

Lindsey Wasson | Reuters

Boeing agreed to pay more than $ 2.5 billion to settle criminal complaints with the U.S. Department of Justice that the company accused of hiding information about its 737 Max plane, which was involved in two crashes the Federal Prosecutor announced on Thursday that 346 people were killed.

Prosecutors said Boeing had “knowingly and intentionally” conspired to defraud the United States by undermining the Federal Aviation Administration’s ability to assess the aircraft’s safety.

Boeing admitted that two 737 aeronautical pilots “fooled” the FAA about the capabilities of a flight control system on the aircraft, software that was later implicated in the two crashes, the Justice Department said. The deferred law enforcement arrangement closes the DOJ’s roughly two-year investigation and drops all charges after three years if there are no additional violations.

The $ 2.51 billion fine consists of a $ 243.6 million fine, a $ 500 million fund for family members of accident victims and $ 1.77 billion for Airline customers. The company said it had incurred a large portion of these costs in previous quarters and expects fourth quarter 2020 earnings to be charged at $ 743.6 million to cover the remainder.

“The tragic crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302 exposed fraudulent and misleading behavior by employees of one of the world’s leading manufacturers of commercial aircraft,” wrote Assistant Attorney General David P. Burns of the Department of Justice’s Criminal Division in a release. “Boeing employees chose the win over openness path by hiding essential information about the operation of their 737 Max aircraft from the FAA and trying to cover up their deception.”

The crashes plunged Boeing into its worst crisis ever, sparked the creation of its best-selling aircraft worldwide, conducted numerous investigations and damaged the reputation of one of the largest aircraft manufacturers in the world.

Last month, the FAA approved software and other security changes Boeing had made to the planes and gave airlines permission to fly them again.

The company admitted the wrongdoing and waived a trial under its contract with the DOJ to settle the charges. The agreement also did not include top executives, as the misconduct was neither pervasive nor senior executives.

“This is an essential solution to a very serious matter, and I firmly believe that it is the right thing for us to enter into this resolution – a move that properly recognizes that we have failed to live up to our values ​​and expectations”, said CEO Dave Calhoun in a note to Boeing employees.

Boeing shares fell about 1% after close of trading.

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