Blogs

Stay ahead of the latest trends in logistics and transportation

Flatbed shipping can be complex and challenging, requiring careful planning, coordination, and execution.
When shipping temperature-sensitive goods, such as pharmaceuticals, food, or medical supplies, it's essential to ensure that the products are transported and stored at the appropriate temperature to maintain their quality and safety
The global supply chain is a complex and interconnected network of businesses and organizations that work together to produce, transport, and distribute goods and services. While this system has allowed for the efficient movement of goods worldwide, it has challenges.
Integrated logistics, also known as integrated supply chain management, is a business approach that aims to streamline the entire logistics process from start to finish. It involves coordinating and integrating all activities related to the movement and storage of goods, including transportation, warehousing, and inventory management, to achieve maximum efficiency and effectiveness.
Managing demand has always been crucial to running a successful business, but in 2023, it's more important than ever. With global markets becoming increasingly competitive and consumers expecting faster, more personalized service, companies need to be able to manage demand in real-time to stay ahead of the game.  
As a shipper or a logistics manager, it's crucial to understand how Less-than-Truckload (LTL) carrier tariffs work and how they are constantly evolving. In this blog post, we will discuss LTL carrier tariffs, how they are created, and how they have evolved over the years. 
Supply chain disruptions have become commonplace in a perfect storm of events. Fewer workers, overwhelmed warehouses, and the pandemic have contributed to the current issues. With over 30 years of experience, PLS Logistics Services has seen it all, and we are here to share what we know to help you navigate supply chain disruptions.
A digital supply chain uses digital processes for logistics management. It is vital to understand because it could save your company money and time.
Outsourced logistics services considerably impact business performance and provide significant benefits for large and small businesses.
Freight insurance protects your cargo throughout the freight transportation process. Learn about several types of insurance to protect your bottom line.
Hazardous materials require extra care when shipping and can result in danger and damage along with hefty fines if done incorrectly.
Less than truckload (LTL) freight means transporting products or goods that do not require a full truckload. These freight loads are smaller and result in multiple shipments on one truck. These shipments usually range from 150 pounds – 10,000 pounds.
Deadhead miles, also known as "empty miles," is the distance a truck drives with an empty load.
Rail is one of the most cost-effective and eco-friendly ways to transport your freight. Learn more about rail in this week's blog.
Speed is key in modern freight management and air freight shipping is safe way to achieve a quick transit time.
Midstream refers to the transportation, storage, and wholesale marketing of oil, natural gas, and natural gas liquids.
The analytics and communication from a TMS strongly benefit your business. As does its ability to lower your transportation costs.
Many companies could easily improve their supply chains by utilizing a transportation management system (TMS). Some companies chose not to use a TMS, and other companies may just not have a good understanding of what exactly a TMS is. It is important to know exactly what a TMS is and how it can help your company save money and time.
Is your TMS getting the job done? TMS software is critical to supply chain visibility so read more about whether you should switch systems.
Learn how a TMS can facilitate daily logistics operations and complex tasks and improve industrial supply chain.
With increasing competition in the retail market, it has become very challenging for retailers to manage their supply chains efficiently.
Cargo in and cargo out. That is drayage truck turnaround in its simplest form. It is the total time a truck spends in the dock area picking up or dropping off a container.  
Your company needs to control its freight management to reduce costs. Find out how you can identify optimization opportunities and fill gaps.
Having a solid supply chain starts with a well-thought-out procurement strategy. A procurement strategy is meant to make this process cheaper without compromising quality or service. 
Correctly optimizing your freight lanes takes planning and strategy. You want to eliminate waste while serving every customer, everywhere. How do you do it? 
Are you reviewing your inventory practices from 2022? Read about what costs to track and mistakes to avoid in 2023.
The supply chain and transportation industries spent most of 2022 trying to rebalance themselves following the COVID-19 pandemic, only to deal with inflation, higher interest rates, a decrease in consumer spending, and rising fuel costs.
Fridged winter weather can stress a company's supply chain like no other. Read about tips to protect your truck and freight this winter.
The journey your Christmas tree takes from the farm to your living room takes some logistics. Learn more about the process.
As 2022 comes to a close, news affecting the transportation industry continues to dominate headlines.
The modern logistics market requires all its members to develop their flexibility and look for ways of responding to a challenge. While seeking new opportunities and implementing industry innovations, shippers also massively rely on the last-minute shipment practice. 
The numbers do not lie; gone are the days when consumers buy most of their holiday gifts by traveling to the store. Online retail shopping is tremendously convenient for customers but, conversely, can make an already busy holiday shipping even more stressful.
Adopting advanced supply chain stock management can increase the timeliness of the supply of materials and the production quality, streamline order fulfillment, and optimize the duration of shipping operations.
Is your business seeing an increase in loading and unloading wait times? Read about how switching to drop and hook trucking could be the solution.
Green logistics has become an attainable, essential, and lucrative business strategy. Read how the benefits might help your business.
Rising diesel rates continue to take a toll on the transportation industry and other industries.
A company's supply chain is a complex of inbound and outbound logistics operations. We know these processes as "inbound logistics" and "outbound logistics." Knowing the difference between the two is essential for understanding logistics flow and managing your supply chain activities.
The choice between air and sea freight can be challenging because of the variables in each shipment. Given your shipments' complexity, you should consider multiple shipping modes. To pick the most suitable way of delivery, it is worth analyzing complex factors influencing your supply chain operations.
Food and Beverage logistics is very complex. Learn more about it from PLS Board Director Fred Boehler.
There are plenty of definitions for visibility, and multiple ways to achieve it. In terms of technology, it all comes down to the key solution: a transportation management system (TMS).
To provide necessary materials like oil and gas, companies must ensure they transport materials conveniently, safely, and safely. Along with a potent strategy, choosing a suitable transportation mode is crucial for efficient oil and gas shipping.
As summer has transitioned to fall, a noticeable trend has emerged as fuel prices and spot rates continue to decrease. Along with the celebration of Nation Truck Driver Appreciation Week, spot rate news made for a busy month of September.
A hostage freight scenario is stressful and unpleasant for all the parties involved. As a result, the resolution might be very time- and energy-consuming. Being prepared and aware of the potential risks is the best way to try and avoid these situations as much as possible.
In August, we saw FMCSA take on a request to allow hair testing for carriers, shifts in how consumers shop, and moderating shipping begins to trend.
Shippers must pay attention to their freight’s weight and dimensions, especially if it gets shipped on an over-dimensional flatbed trailer. It is also essential to know the rules and regulations for each state when transporting over-dimensional flatbed shipments.
The transportation season never ends, so it’s important to know what each season entails. Read here to see what to expect for the whole year!
Freight brokers act as liaisons between your business and the carrier to ensure all your shipments arrive at their destination.
Shipping across the United States / Canadian border is easy when your business partners with an experienced logistics team.
In July 2022, we saw the supply chains inching back to normal, and the potential new normal for container shipping spot rates.
The standard shipping container was invented in 1956 and revolutionized the shipping industry. Read this blog to see how the container has evolved in the years since. 
Supply chain disruptions come in many ways, so any business should know how to overcome and prepare for them.
Logistics technology can reduce LTL costs in many ways. Read this blog to see how technology can help your business, shipping partners, and LTL shipping!
Diesel rates keep rising, and so are freight rates. Read this blog to see how the transportation industry is handling this.
Supply chain benchmarking is necessary to measure performance and improve productivity but can seem like a daunting task. Learn how to start with this guide.
Are you ready to ship freight but worry about added fees? Learn how to avoid demurrage charges for smooth shipping. 
A flatbed truck is an open trailer with no sides or roof, often used for over-dimensional freight shipments. Read more about flatbed shipping in this blog.
Are you looking to improve your freight for carriers? This blog dives into how you can do that and what carriers look for in shippers.
Air freight is the shipment of goods via an air carrier. It is the ideal solution to move your freight via charter or commercial air carrier quickly.
This month, we saw House transportation leaders pressing for freight rail safety and trends move towards higher transportation rates.
Delivering on time is extremely important to the success of your small business. Learn more ways to ensure on-time deliveries in this blog!
Peak shipping season starts in mid-August and stretches to the end of fall. During these months, there is increased shipping demand across many markets.
Drop trailer programs are a solution for many supply chain issues. They can reduce costs, increase carrier productivity, and improve efficiency.
Multimodal transport combines different types of transport to ship your goods in the most effective way.
Specialized shipping includes any large shipment size, weight, or dimensions and demands special handling services during transit.
Tired of damaged or lost freight? Read this blog to find out what proper steps to take when the time does come.
Read about what challenges logistics managers are facing in the industry and the best ways to overcome them.
Find the best trailer type for you by reading the pros and cons of the most popular options for your shipments.
Supply chain management is the flow of activities in the production process that moves a good or service from raw materials to finished products for consumers. Learn more about Supply Chain Management.
Cross-docking is a logistics strategy when carriers unload cargo from an incoming container and immediately load it directly to an outbound carrier.
Customer service is significant to building your business. Since they are on the receiving end of your products and get the opportunity to use them, customers always come first. From that experience, customers determine the company’s reputation and how it stands out against the competition.
Proper palletization of your freight shipment can help you prevent costly freight damage and optimize your shipping process. Learn more in this blog!
Supply chains are multifaceted and can be a significant source of competitive advantage. To improve supply chain management efficiency and effectiveness, companies must improve predictability, optimize costs, minimize working capital, mitigate risk, and analyze data.
The pandemic, inflation, surging product demand, and driver shortages have challenged logistics managers to discover innovative solutions. We will outline some common full truckload (FTL) issues and how to avoid them.
International shipping can be complex, but with an experienced logistics partner to assist with planning and execution, you can move products anywhere in the world.
Dry van trailers are the most common for shipping and have many benefits. Read more to see if it’s the right one for you!
This month, we saw the national diesel average drop 4.2 cents, the House Panel approved the water bill, and truck tonnage levels trend down. In addition, the truck manufacturers group files a lawsuit to seek more time for new CARB regulations and more. Check out April's trending transportation update on the shipping industry if you missed it.
Business owners often overlook the process of moving products from point A to point B. However, inexpensive, and all customers demand timely delivery. If your business is not actively searching for the best transportation methods, you are falling behind the competition - especially competitors who can offer free shipping.
Logistics management involves the control and supervision of moving products and is a key aspect of any business that cannot be overlooked.
The oil and gas supply chain is an irreplaceable part of people’s lives: it warms houses and offices, fuels vehicles, and makes the world go around. Unlike any other industry, oil and gas supply chains are incredibly complex.
There is a shift in how consumers approach grocery shopping, using more channels. Annual supermarket and grocery store sales in the U.S. are over $765 billion, but there is a new, trendy way to purchase groceries- online.
We saw rejection rates continue their rapid descent in April, pulling rates down with them. In addition, Thermo King rolls out a new trailer refrigeration unit, Transport Topics announces their top 100 brokerage firms and more. Check out March's trending transportation update on the shipping industry if you missed it.
Whether it is GPS tracking, mobile apps, or autonomous trucks, technology is significantly impacting the way we ship. There are constantly new technological developments changing the shipping industry each day. One of the latest developments in drone delivery.
This past month fuel prices have been a significant discussion among all U.S. citizens. But unfortunately, many industries have felt the pressure on their bottom line due to these increased prices, and the freight industry is no exception.
A third-party logistics provider, or 3PL provider, coordinates and manages functions for better transportation and supply chain efficiency.
Understanding market trends is one of the best strategies to keep you ahead of your competitors and help you gain and retain customers.
IoT is merging our physical and digital worlds to create powerful operative value in every industry, especially freight and logistics.
Shipping oversized loads are not the same as shipping your typical LTL or FTL freight. Learn about heavy haul shipping to ensure successful transportation.
We saw the Biden-Harris Administration plan for FLOW, truck tonnage increase, truckers see little benefits with the diesel tax relief plans, and more. Check out February's transportation updates for the shipping industry if you missed them.
The bill of lading (BOL) is a legal document that shippers and carriers alike must understand how to accurately complete for a successful shipment.
A Bill of Lading is one of the most important documents in the world of freight shipping. However, it’s still confusing for many companies and shippers to understand a BOL meaning and what role it plays in the transportation process.
A bill of lading (BOL) is a legal document between a shipper of a particular commodity and the carrier detailing the type, quantity, and destination of the goods. The carrier issues the BOL to a shipper of the goods. Additionally, it is essential that the information on the BOL is accurate.
Omnichannel defines how customers use several different platforms to buy products. It aims to satisfy consumers’ needs immediately, regardless of which shopping channel the consumer uses. But how does omnichannel fulfillment work?
Intermodal freight transportation provides companies with flexible shipping options. It can lower costs and solve capacity issues in your supply chain.
We saw how vaccine mandates affected truck rates, airline transportation purchases, future supply chain predictions, and more. Check out January’s transportation updates for the shipping industry if you missed them.
As the supply chain industry is constantly evolving, it can be challenging for business leaders and supply chain managers to stay on top. So, this year, instead of reacting, companies will be proactive and stay in front of the global supply chain disruption with these top supply chain trends to look for in 2022.
While Less-than-truckload (LTL) shipping is straightforward, the LTL freight class may seem confusing for many. This Freight Classification plays a prominent role in calculating how much the carrier will charge you for transporting your shipment. Choosing the wrong Freight Class could waste money, time, resources, and delay shipments. Therefore, it is important to classify a shipment correctly.
Check out last month's new transportation updates in the shipping industry.
While operating in a progressively complex logistics world, companies currently need all the help they can get to help them work smarter, easier, and more efficiently. As a result, technology like Transportation Management Systems is now more critical than ever.
Check out last month's new transportation updates in the shipping industry.
With Christmas right around the corner, thousands of boys and girls are preparing their letters to Santa all over the world, patiently waiting for Christmas day. Each year, children wake up and spring out of bed, with the realization that Santa has finally come. Running to their Christmas trees, only to be amazed each year by the gifts underneath. This expectation must be satisfied on time for each kid worldwide because the delivery of happiness can't wait on Christmas, right?
Check out last month's new transportation updates in the shipping industry.
Many terms are confused in the logistics and transportation industry, especially if you don't have years of industry experience. Examples of words that might be confused are '3PL Provider' and 'freight broker.' Many shippers consider these terms interchangeable; however, there is a significant difference between a 3PL and a freight broker.
Trust and Respect are the two things needed to build a successful relationship with a third-party logistics (3PL) provider. Often, these terms become the exception, not the rule. As a result, many shippers that use 3PL providers believe that micromanagement and persistent price pressure will prove the best result. In reality, the opposite is true.
The shipping industry has noticed that most of the companies use preloaded containers. So, this makes us assume that drop and hook would be a hit with shippers and carriers? But what is drop and hook, and what are the advantages?
Check out last month's new transportation updates in the shipping industry.
A company’s logistics is turning materials into products and delivering the products to the customers. We know these processes as “inbound logistics” and “outbound logistics.” Knowing the difference between the two is essential for understanding the flow of logistics.
If you are ordering a heavy load for your business, you will need to consider how it will be delivered. Usually, heavy equipment is shipped on a pallet and arrives on either an FTL (full-truckload) or LTL (less-than-truckload). If your facility has access to a loading dock, then you're set. However, what happens if you don't have access to a loading dock? How will you get the products off the truck? Considering a liftgate service could be your best option.
Learn how to calculate your freight shipping costs in minutes.
Check out last month’s new transportation updates in the shipping industry.
The COVID-19 pandemic has irrevocably altered the e-commerce environment. As a result, new market demands are straining retail supply chains worldwide due to strong digitalization and the exponential expansion of internet shopping.
The prolonged global port congestion, caused by the inability of the biggest ports to handle all arriving ships, is expected to last at least until the first half of 2022.
Engaging your suppliers in a vendor compliance program is an effective way to foster a trusted relationship with them and ensure superior performance from their side.
There were many new transportation updates in the shipping industry last month. Check out some of the top stories and transportation updates of August 2021!
FTR’s Intermodal Competitive Index (ICI) rose in October 2016, reflecting a moderately favorable environment for intermodal transportation. The ICI looks at a variety of factors including truck capacity, fuel prices, rail service, intermodal rates, and more.
Backorders occur when a product is unavailable for immediate purchase, but there is an upcoming restock date for it making it available in the future.
For every business, inbound freight is a vital component of their supply chain. If companies neglect their inbound freight strategy, the transportation process can become obscured and lead to overspending.
There are plenty of definitions for visibility, and multiple ways to achieve it. In terms of technology, it all comes down to the key solution: a transportation management system (TMS).
Shippers often are not aware of how they can reduce shipping costs with their own efforts. Before diving into the shipment booking process, here are some tips on how to get the best LTL freight rates.
There were many new transportation updates in the shipping industry last month. Check out some of the top stories and transportation updates of July 2021!
There are several recommended practices that can improve your truckload freight performance if you're looking to optimize your FTL strategy and freight management.
There are several ways to improve LTL transit times that we will explore in this blog. With this information, you will see your on-time delivery, a crucial LTL key performance indicator, begin to improve.
There were many new transportation updates in the shipping industry last month. Check out some of the top stories and transportation updates of June 2021!
Cargo theft is an unpredictable year-round occurrence, but the holiday season is a prime time for freight thefts. With the 4th of July quickly approaching, it’s a great time to learn what you can do to help prevent theft.
For businesses who want to start working with a third-party logistics company, a request for proposal (RFP) is probably one of the first terms they will come across.
When it comes to supply chain integration, there are two known technologies that provide it: APIs and EDIs. Learn more in this PLS blog.
There were many new transportation updates in the shipping industry last month. Check out some of the top stories and transportation updates of May 2021!
Sustainable logistics is no longer just a buzzword. It has taken over as an attainable, essential, and lucrative business strategy. Learn why in this PLS blog!
A reputable 3PL will provide the supply chain visibility, technology, and excellent customer service needed to exceed your customers’ expectations.
More companies outsource their logistics operations or even the entire supply chain to logistics companies. Once you’ve decided to use logistics services for your business transportation needs, the next step is to choose a freight shipping company.
There were many new transportation updates in the shipping industry last month. Check out some of the top stories and transportation updates of April 2021!
As logistics management is a crucial part of supply chain management, the way companies handle it required changing, too. Logistics management is a controlled and optimized flow of goods on a local, regional or global level.
The year 2020 was anything but ordinary, and the imbalance caused by shutdowns and business restrictions continues to affect supply chains across the world in 2021. Such ripple effects impacted consumer spending patterns and exacerbated pricing, leading to spikes in truck freight rates.
There were many new transportation updates in the shipping industry last month. Check out some of the top stories and transportation updates of March 2021!
With all the great success and efficiency of the approved vaccine providers, there are still challenges with the vaccine supply chain, distribution, and transportation.
Companies can't stay away from using supply chain technology to enhance their digital supply chain management and business performance.
Due to the ongoing demand for trucks after winter storms over the last few weeks, the national average for mid-haul outbound tender rejection rates has increased to 31.76%. There were some significant shifts in the following three carrier lanes: Los Angeles - Dallas, Houston - Dallas, and St. Louis - Columbus.
There were many new transportation updates in the shipping industry last month. Check out some of the top stories and transportation updates of February 2021!
Sustainable logistics and green supply chain management practices are becoming increasingly common across the industry due to the rise in consumer expectations for businesses to be environmentally friendly.
Reverse logistics management became increasingly difficult during the COVID-19 pandemic. Learn 3 ways to manage your reverse logistics in the age of returns.
Logistics cybersecurity has been an industry concern for a long time. With more technology and devices being integrated into supply chains, the massively connected system was emerging instead of linear physical and old-wired supply chains.
There were many new transportation updates in the shipping industry last month. Check out some of the top stories and transportation updates in January 2021!
The National Motor Freight Traffic Association (NMFTA) released the final updates of the National Motor Freight Classification (NMFC) on December 19, 2020. This update includes changes mainly regarding such commodities as electronics, building materials, automotive, and apparel. It is crucial for retailers to keep track of the NMFC updates, as inaccurate freight classification can increase shipment costs and disrupt operations.
Not too long ago, 2018 was heralded as an extremely successful year for the trucking industry, with the overall industry revenue up $96 billion. Increased customer demand, tremendous freight volumes, and advancements in logistics technology raised the bar on expectations. Unfortunately, 2019 couldn’t keep up. By the end of 2019, there was a 27% dip in freight rates with many companies suffering as a result.
Many supply chains were shaken due to the COVID-19 pandemic. The challenging economic situation has shed light on the key gaps in many companies’ transportation systems. While every supply chain executive is looking for ways to build resilience, inventory, and warehouse management become another top priority for businesses in 2021.
It’s been a few weeks since the official victory of Joe Biden in the US presidential elections. While the win of a Democratic party representative over the Republican Donald Trump has resulted in lots of discussions, many now try to forecast how it will change the US economy. Experts anticipate changes in many industries, and we are particularly interested in how Biden’s presidency will affect logistics and transportation. Here are some key things to know.
With 2020 in the rearview, what will 2021 look like for the logistics and transportation industries? See what might lie ahead and how you can prepare for this year's challenges.
Take a look at how November 2020 helped shape this year's trends in supply chain management and how your organization can grow as 2020 comes to a close.
COVID-19 has upended everything, but with vaccines now available, supply chains are about to be tested. See how you can prepare your supply chain amidst this turmoil.
With new HOS rules coming into effect, freight carriers and their drivers need to adjust to a new normal. Take a look at what the new rules are and how you can adapt to them.
It’s no secret that COVID-19 has changed nearly every industry. From supply chains to store shelves, the way businesses manage their infrastructure and customers has fundamentally changed. Retail has been particularly challenged by the virus in the way consumers shop, search, and spend. Organizations have fought to catch up in these uncertain times.
There were many new transportation updates in the shipping industry last month. Check out some of the top stories and transportation updates of October 2020!
Peak shipping season is just around the corner and there’s no better time for companies to start preparing for cold weather and a more active market. But like everything else this year, 2020 presents new challenges in the face of COVID-19 including market challenges and unpredictable consumer trends. It’s never been more important for organizations to be ready for this year’s shipping surge.
The oil and gas industry has historically been resilient, weathering crises, disruptions, and economic downturns. But just like everything else in 2020, the disruptions caused by COVID-19 have exposed weaknesses throughout this sector.
2020 has proven it’s impossible to be prepared for everything. Not only transportation budgeting but global strategies were interrupted by recent events. Although the global market has been frequently interrupted in recent months, there are still many things within your control when it comes to your organization’s shipping strategy. It’s important to take advantage of the things that will save you money.
There were many new transportation updates in the shipping industry last month. Check out some of the top stories and transportation updates in September 2020!
What is HVAC and what does it stand for? HVAC is an acronym for Heating, Ventilation, and Air Conditioning. The term encompasses all products and services related to the industry. Climate control systems and equipment are crucial for houses, facilities, and businesses around the world.
There’s no surprise that the chemical industry is a complex one and requires high operational productivity. Now, with an unstable market, pressuring customer demands, digitalization, and industry consolidation, some chemical companies are crippled under the pressure.
Even in well-prepared industrial branches of the global economy, there is a tight interdependence on external factors. The mining supply chain relies on many fluctuating factors, that are (or at least turned out to be in recent times) vulnerable to unpredictable economic conditions.
There were many new transportation updates in the shipping industry last month. Check out some of the top stories and transportation updates in August 2020!
Often, people have a preconceived notion that freight brokerage companies are over-priced scams when, in reality, they are often useful partners. Besides, the benefits of freight brokers are numerous.
You might think that attending conferences can be expensive, or as an employee, you might think you don’t have much to do at the event. However, a supply chain conference can be incredibly rewarding, if you choose the right events to attend.
What is LCL shipping? LCL shipping is sea freight shipping that requires only partial use of shipping containers. This means your shipment will be located in the container with several other shipments, and the cost of transportation will be split between the shippers.
A strategy is a crucial part of any business, and it is even more important when thinking about a complex system like a supply chain. The term ‘strategy’ is often confused with what it’s not, or is considered to be a vaguely-meaning fancy word. However, businesses with a well-thought-out, long-term strategy reach and exceed their goals and are better at surviving turbulent times, compared to short-sighted management techniques.
There were many new transportation updates in the shipping industry last month. Check out some of the top stories and transportation updates in July 2020!
For some shippers, time-critical transportation is a necessity. Time-sensitive or expedited freight shipments are mostly goods with a short shelf life, like produce and perishables or prescription drugs. Sometimes, urgent shipments like equipment or details can also require time-sensitive transportation. To get the best experience while using time-sensitive freight shipments, consider looking at a few tips.
When it comes to shipping hazardous materials, safety is key. Hazardous freight is sensitive to external influences and can be very dangerous, so preparing and shipping hazardous materials requires thorough planning, careful approach, and responsible execution. It is your responsibility as a shipper to properly pack and classify the goods.
Securing the lowest freight rate and finding the right price match for your freight has always been a challenge. In today’s uncertain market, it is even more difficult to find capacity and freight shipping rates. Despite some companies feeling pressure to offer lower freight rates, the market remains uncertain, and rates may jump higher than before the pandemic.
There were many new transportation updates in the shipping industry last month. Check out some of the top stories and transportation updates in June 2020!
The recent months were extremely transforming for many industries. For some, the effects were damaging. But some industries have flourished during the pandemic, like the e-commerce industry. Many small businesses that were inclined to locally selling their goods, or were focused on a physical store, experienced tough times. However, ones with wider customer coverage and a strong online presence seemed to grow their online sales even more.
There are two options for the meaning of FOB: free on board and freight on board. Free on board is the preferred phrase for freight shippers. Learn more here!
Meat supply chains in the U.S. have been severely affected by the coronavirus. In particular, the most hard-hit industry within the food supply chain was meat processing. Since numerous workers have tested positive for COVID-19 on multiple meat plants across the country, the entire supply chain was disrupted.
The concept of making the shipping industry more environmentally friendly has been a priority for businesses for many years. During the current COVID-10 pandemic, this issue comes into the spotlight even more. Although the coronavirus has had horrible, devastating effects on the population and economy during the past few months, the impact on the environment was positive. With fewer commuters, hindered global travel and logistics, and generally decreased human activity, people have noticed a significant environmental impact.
There were many new transportation updates in the shipping industry last month. Check out some of the top stories and transportation updates in May 2020!
What is multi-stop truckload shipping? In truckload shipping, there are two points on the route: A and B. Your freight is picked up and then delivered to the final destination without any in-between locations. However, sometimes shippers need a few additional stops on the way, for various reasons. This is called multi-stop truckload shipping. The trouble with this type of shipping is that carriers often reject it, and it is usually more expensive. Although this method is slightly more complicated than regular truckload, if you require multiple stops, you can arrange it in a planned and cost-effective manner.
Many shippers underestimate the value a freight broker can bring to their transportation strategy. These professionals can significantly increase the performance of your freight shipments and save you costs. While there are many benefits of using a good freight broker, you somehow have to assess their effectiveness for your company. To get the best out of the freight broker, you have to make sure you are receiving high-quality services from a legitimate specialist.
Regardless of the circumstances, a company’s ability to survive disruptive processes and events is one of the key differentiators of a successful business strategy. The thing is, most companies start to realize its importance only when the storm already happens. In the majority of cases, risk management strategy sits far down the list of business priorities and often can be put on the backburner of business plans.
The oil industry was one of the most severely hurt industries during the coronavirus pandemic. On April 20, oil prices went negative for the first time in the history of the oil market, peaking at -$37.60 per barrel. For comparison, at the start of the year, an oil barrel costs $60. Such a bizarre drop was caused by a huge discrepancy between oil supply and demand. Worldwide lock-downs, drastic air flight shortages, and fewer commuters resulted in a sharp fall in fuel demand.
The impact of COVID-19 on human lives is the first thing everyone should worry about. Thousands of deaths around the world have made the virus a huge threat to humanity, in many ways. One of the other ways it impacts us is the impact on global economy. The spread of the disease and restricting measures to contain it have put many businesses in frustrating situations, and even cause people to lose their jobs. Many companies look for effective ways to avoid damage, layoffs, and shutdowns. There are several useful practices that can help midsize and larger businesses to survive the coronavirus crisis.
There were many new transportation updates in the shipping industry last month. Check out some of the top stories and transportation updates in March 2020!
Logistics and transportation powers almost every single industry in the modern economy, including the healthcare system. Transporting medication, hospital equipment, medical supplies, and different vaccines play a crucial role in global health care. Today, medical supply chains and their proper, smooth operation define the success rate of delivered treatment. One crucial branch of health supply transportation is the vaccine supply chain.
The highly contagious virus known as COVID-19, which originated in Wuhan, China, has now been declared a global pandemic by the World Health Organization. With hundreds of thousands of people infected globally, the coronavirus revealed itself as a huge threat not just for the health industry, but also to the global economy. Supply chains, in particular, are being affected by coronavirus.
Changing market demands and technological advancements are driving many transformative processes to the supply chains. There is a lot of noise and buzzwords when it comes to trends and technologies that will influence the way supply chains operate. Not all of them can make a huge impact, but there are a couple of supply chain management trends that will actually reshape modern supply chains.
There were many new and exciting transportation updates in the shipping industry last month. Check out some of the top stories and transportation updates in February 2020!
Less than truckload (LTL) is a beneficial and cost-efficient option for shipping goods. However, it’s often challenging for the shippers to manage it in the right way. It can be complicated to recognize the opportunities for better LTL freight performance. If you often face shipment delays, disruptions, or spend too much on LTL freight, you probably want to improve the effectiveness of the process. There are several useful practices you can implement to improve LTL efficiency.
In truckload shipping, capacity for a fair price is what companies and logistics providers are searching for. Sometimes it can be easy to find, but most of the time it can be a challenge. Even with all the available trucks in the U.S., almost two-thirds of them are already driving, loading or unloading someone else’s freight, which can complicate finding a truck for a good price. There are several factors that define your success in getting the required capacity on-time, and one of them is truckload lead time in shipping.
Properly organized inbound shipments are vital to successfully operating supply chains. The retailers, distributors and customers heavily rely on the performance of inbound deliveries. For the businesses, the most important concern is the ultimate cost of inbound shipping, which is almost in every case higher than it’s supposed to be. Normally due to the lack of control and visibility, these shipments can consume up to 40 percent of overall freight costs. Apart from that, maintaining good relationships with vendors and ensuring on-time, high-performing deliveries can be quite a challenge. To make inbound transportation as efficient as possible and cut off unnecessary costs, you can try several practices for effective vendor management.
Shipping is the last, and probably one of the most important steps, in customer satisfaction. Today, a customers experience defines how they perceive brands, products or services. With the viral expansion of e-commerce, more small businesses now have access to the market. However, more possibilities means more competition. To succeed in this dynamic and fast-paced market, you don’t just have to meet expectations, but exceed them. Good products and quality service will always remain key components of a successful business, but a polished shipping strategy can go a long way. Every day, the world is changing, and it is crucial to notice and adapt to new trends. Here are a few key small business shipping trends that can act as a direction for many small businesses in 2020 and beyond.
One of the most common challenges in the trucking industry, both for carriers and shippers, is understanding and having more transparency into government regulations. The FMCSA has had updates in policies recently, and many of these changes can substantially impact the current state of trucking in many ways. It is crucial to recognize the key trucking regulations that will come into play, and how can they affect your business.
As tensions between the US and China started to escalate, the retail industry was probably the first to experience the unpleasant consequences of a trade war. With the US eventually putting $250 billion of Chinese goods under 25 percent tariffs, retailers now have to deal with higher prices and difficulties in adjusting to economic updates. Considering that enlisted goods that fall under the tariffs include clothes, shoes, and electronics, it will be quite challenging for some companies to manage international shipping and commerce between the US, Canada, and other countries with the new rules of the market.
The past decade felt like everything has sped up. The economy, technology, and development of many industries have experienced a substantial jump in growth. For logistics and transportation, it has been a decade of huge and really significant shifts. Mainly driven by the steady invasion of technology, the industry was reshaped in many ways, including safety regulations, operations, and other important transformations.
The start of the new decade marks many significant shifts in the logistics and transportation industry. The past few years in the logistics and transportation industry brought the most contradictory and fast-growing trends to the spotlight. Digital revolution, industry automation, self-driven trucks, robotic devices, blockchain-enabled supply chains, and many more topics have brought heated discussions in the industry. Whether these shifts will take 10 or 50 years, the process has already started. 2020 logistics outlook forecasts some big and fresh trends in the logistics and transportation industry.
Almost 90 percent of goods and food are shipped to us on overseas journeys. Ocean freight shipping lets manufacturers and suppliers move an enormous amount of freight to opposite parts of the world.
2019 is coming to an end, which means it’s time to wrap up the year and define key trends for the oil and gas industry in 2020. Last year was a tense period for the oil and gas industry, and for the U.S. economy in general. Ongoing tension with the U.S. – China trade war, disrupting political situations in the country and beyond, and weakening global markets altogether have brought significant shifts to the oil and gas market. Let’s take a look at the key outtakes from a Deloitte Report.
Just like any other industry, healthcare and pharmacy institutions require fast and reliable shipping solutions. For the health industry, compliance and shipping speed are critical factors. Whether it’s prescription drugs delivery or urgent hospital supply shipping, time and organization matter. Any disruption or delay can lead to serious consequences, so companies are under the pressure of accurate and well-planned organization of healthcare shipping.
While LTL shipping remains a very common and efficient shipping solution for many retailers and businesses, transit time is not the strongest side of LTL. Delivery time is an important concern for many shippers, and those who ship less than truckload know that it takes a bit longer to ship freight than a full truckload. For reliability and faster delivery, LTL carriers offer LTL guaranteed delivery.
There were many new and exciting transportation updates in the shipping industry last month. Check out some of the top stories and transportation updates in November!
Technology and innovation are changing our world and the way we live. These shifts are affecting every single industry, and the energy industry is one of the most influenced branches of the global economy. Upstream, midstream, and downstream sectors all require digital transformation for efficient operations and cost reduction. For midstream transportation, digitization plays an even more crucial role, as a large chunk of costs are spent on oil and gas transportation.
Customers are the main focus of businesses now, and logistics companies are no exception. Many logistics companies are customer focused and often forget about another party involved – freight carriers. Carrier performance is a major contributor to a company’s success, and that’s why proper carrier management should be implemented in a business’s practice and strategy. Better communication and service for carriers can drive major performance improvements, which will ultimately results in customer satisfaction.
What does project cargo logistics mean? Project cargo, or project freight logistics, is a special type of freight shipping that suggests moving high-volume and high-price freight. Sometimes, project cargo is so complex to arrange that it requires changing the infrastructure, combination of modes, handling equipment, specific time frames, and other intricate requirements.
There were many new and exciting transportation updates in the shipping industry last month. Check out some of the top stories and transportation updates in October!
Despite the 2014 oil and gas price drop crisis and the rush around alternative fuel sources, the future of the oil and gas industry remains bright and has a steady pace of growth and increasing demand. More than four billion metric tons of oil and produced every day worldwide, with oilfield companies still generating the biggest revenues. Experts estimate that by 2030, the world population will reach 8.5 billion. This means humanity will need a convenient, reliable and safe source of supplying our everyday life with energy.
Intermodal transportation is a hybrid system that relies on an interchangeable relationship among truck, rail and barge. Intermodal transport is a reliable mode, providing standardized transit schedules, low costs and easy access to equipment.
What is a freight carrier? A freight carrier is an individual or a company that handles the transportation of freight shipments from one point to another. Sometimes, freight carriers not only handle loads but also act as the operators or even freight forwarders. Depending on the carrier type, there can be a significant difference in carrier accessibility, lanes, and freight rates. To understand more about various types of freight carriers, it’s important to know which role a carrier plays in the logistics and freight shipping industry.
There were many new and exciting updates in the shipping industry last month. Check out some of the top stories and transportation updates in September!
The oil and gas industry is extremely volatile by nature. It is involved with many other industries and processes, and often must adjust to the dynamic environment. At the same time, upstream, midstream, and downstream oil and gas appear to be extremely complex and require a high level of management and responsibility to function properly. This puts oil companies under the pressure of high-quality maintenance and being flexible at the same time. Apart from traditional obstacles like fluctuating oil prices that cause spikes and drops of demand, there are a few other significant challenges.
Despite the fact that breakbulk shipping is extremely common, sometimes even experienced shippers need more clarity on the definition of this method. In over-the-road transportation, container shipping is prevailing. However, there is cargo of huge and unusual sizes that fits neither in a regular container nor in aircraft.
Freight rates are an indispensable part of the dynamic environment in the trucking industry. However, even experienced shippers may not know the process and/or details of rate forming or spot market rates. Let’s take a look at the nature of spot rates and how do they differ from contract freight rates.
There were many new and exciting updates in the shipping industry last month. Check out some of the top stories and transportation updates in August!
There are three essential stages in the oil and gas production industry: upstream, midstream and downstream. To understand the role of midstream oil and gas, let’s take a look at every stage.
There were many new and exciting updates in the shipping industry last month. Check out some of the top stories and transportation updates in July!
Hazardous materials are essential supplies for our everyday life. From cosmetics and household goods to chemicals, oil, and batteries, the hazmat category is a separate segment of freight which requires strict regulatory compliance and safety measures. Shipping hazardous materials is a complicated and responsible task, where the price of error is extremely high.
Consumer packaged goods (CPG) are a large part of the retail industry. These products support our daily lives, and proper transportation strategy is crucial for CPG companies to have goods delivered on-time. Shippers struggle with numerous challenges to meet the retailers’ compliances and often suffer supply chain disruptions. It is critical to have a properly planned CPG shipping strategy.
The oil and gas industry essentially involves exploring, utilizing and transporting hazardous materials. Therefore, oil and gas safety compliance and risk management are crucial in such a complex sector. Unfortunately, disruptions and breakdowns in oil and gas supply chain lead to devastating consequences, that apart from an environmental disaster often causes numerous injuries and death cases.
There were many new and exciting updates in the shipping industry last month. Check out some of the top stories and transportation updates in June!
There are two wide-known transportation modes in freight shipping: full truckload and less than truckload. Usually, shippers have to choose between these two options to move their freight. However, there is a less known transportation method – volume LTL freight shipping. And it can actually become a cost-effective and practical solution for your shipments.
It is hard to imagine our lives without fuel. Every day, we rely on the oil and gas industry to supply us with energy to keep multiple processes running. In order to provide us with necessary materials like oil and gas, companies must ensure they transport it in a convenient and reliable way. Choosing the right transportation mode and a robust strategy is crucial for efficient oil and gas shipping.
There were many new and exciting updates in the transportation and shipping industry this month. Check out some of the top stories that made headlines during May!
Summer is just around the corner, and so is the most disruptive week in the trucking industry: the International Roadcheck 2019. The Commercial Vehicle Safety Alliance (CVSA) blitz is the largest inspection on the commercial motor vehicles in North America. This year, a 72-hour truck review will take place from June 4 – 6.
Historically, the connotation of freight management was changed and reshaped many times. In general, it refers to all the processes that cover preparing, shipping, storing and receiving freight.
With the growth of the international trade and retail sector, the importance of warehousing services is increasing as well. Proper storage of goods has always been an essential asset of a smooth logistics strategy. In fact, warehousing services can greatly impact your supply chain efficiency.
Container drayage shipping is moving container freight over short distances, mainly in the same metropolitan area between ports, facilities, rail yards or other shipping hubs.
Over the last few years, the oil and gas industry has faced numerous shifts and fluctuations, along with extreme price volatility. Technology, new energy policies, and trade agreements continue to affect the industry. The industry should expect to see even more transformation in 2019 and beyond. We have collected some valuable insights from the energy industry forecast and highlighted the main oil and gas trends in 2019 and beyond.
With increasing competition in the retail market, it has become very challenging for retailers to efficiently manage their supply chains. Essentially, a smooth retail supply chain strategy is a fundamental part of a positive customer experience, and retail companies strive to reach the golden standard of order fulfillment and fast delivery.
Every company works to analyze its supply chain costs and eliminate unnecessary costs and processes. Regardless of how complex your supply chain is, every part of it matters, however, not every part of the supply chain is assessed equally. Inbound shipments are often overlooked by companies, although they can account for a substantial amount of transportation costs. In fact, for some companies, inbound shipment costs can reach 40 percent from the entire transportation budget. That’s why it’s important to know some useful practices for inbound freight management.
Shippers who work to reevaluate their current shipping strategy should pay attention to intermodal transportation. More and more companies switch to this solution since it lets them reduce the time and costs used on transportation. Despite the fact that intermodal involves several transportation modes, it can actually bring more efficiency than a single OTR shipping.
There were many new and exciting transportation updates the transportation and shipping industry last month. Check out some of the top stories that made headlines during April!
Supply chain management is a set of activities that includes supply, production, and distribution of a company’s goods. This production cycle plays an enormous role in any business. Proper supply chain management can reduce transportation costs and enhance productivity, and in order to succeed, companies should learn how supply chain management works.
Many industries and the global economy rely on freight shipping to handle business. With the evolvement of commerce, transportation becomes a more and more important branch for businesses. However, in the world of freight shipping, the demand for capacity is higher than capacity itself. This causes frequent fluctuations in shipping costs and directly affects carrier freight rates.
Shipping has become a crucial part of a business’s success, especially small businesses. With the competition among retailers constantly increasing, the demand for fast and affordable small business shipping grows as well. We know how shipping looks from a customer’s perspective, but how does it really work from the inside? What challenges do companies face to provide their customers with a smooth shipping experience?
Just like every other industry, oil and gas supply chains are changing. However, these changes do not necessarily mean that energy supply chains are getting simpler. Despite all of the new technologies and advanced practices entering the sector, oil and gas companies still struggle with optimizing logistics and saving on transportation costs. The complex nature of oil and gas supply chains makes it difficult to manage processes, especially to maintain an efficient budget.
If you are frequently shipping freight, there’s a good chance know what third party-logistics companies do. In fact, 3PL’s can help your business in many ways, and one of those ways is getting lower freight rates for you.
Working in the food industry is incredibly exciting and diverse, however, it can be a very complex sector. Food supply chains involve an endless number of processes, and unraveling them is quite a challenge. Especially, food and beverage shipping.
The global economy and the entire modern world heavily relies on freight shipping on a daily basis. Everything we eat, wear, use, and work with gets to us through cargo shipping services. A spike in e-commerce growth demands efficient and reliable freight shipping, and it is important to choose a freight shipping company that matches your needs.
March was packed full of logistics-related news and transportation updates. We’ve summed up the most important events and trends that took place during the month:
Today, we can buy and sell everything we want online, but one thing still remains the same – items need to reach us. Unlike the traditional method, e-commerce made logistics for retail companies more complicated than it was in the offline era. More and more companies start using 3PL for e-commerce transportation.
With the growth of small businesses and e-commerce development, the number of smaller shipments being transported around the world has drastically increased. Along with parcel shipments, less-than-truckload (LTL) shipping is changing and evolving and being influenced by the latest e-commerce trends, fuel rates, online shipping services and more.
The oil and gas sector is one of those industries where partners need to gain extreme credibility to maintain sustainable working relationships. Energy supply chains are complex and look like knotted webs instead of a linear chain. There are multiple processes involved, remote sites, safety regulations and hazardous materials that all demand precise management and control.
Supply chain management (SCM) is the heart of a company’s operations. Therefore, the company strongly depends on how smooth your supply chain is. Maintaining a robust supply management strategy is complex since it involves numerous processes that require planning and constant control.
There were many new and exciting developments throughout the transportation and shipping industry last month. Check out some of the top stories that made headlines during February!
The life of a truck driver can be stressful in many ways. Spending long hours on the road, the need for constant concentration, and the responsibility for freight security and on-time delivery. Additionally, apart from all of these unpleasant elements of a trucker’s day, there is a lot of wasted time and frustration because of highway congestion.
In the world of freight transportation, ocean and air shipping play a significant role in the logistics industry, but there’s another mode that is often underestimated – rail.
The freight industry is full of variety and diversity, and there are plenty of transportation modes. You probably already know and use full truckload and less-than-truckload shipping. However, there is one more option in between the FTL and LTL – partial truckload shipping.
Valentine’s Day for most people means romantic dates with flowers, chocolates and meaningful cards. While the biggest problem on February 14 is pleasing your loved one, logistics managers and suppliers start stressing much earlier to provide you with all of the gift options you need.
There were many new and exciting developments throughout the transportation and shipping industry last month. Check out some of the top stories that made headlines during January!
In the fast-changing world of commerce and transportation, the role of warehouse management and inventory facilities becomes more and more important.
Technology is diving deeper inside the logistics sector, and it isn’t limited to just IoT and blockchain. There are many technology applications now available that can significantly benefit the performance of logistics companies. Although most of the innovations are utilized to enhance tracking, data analytics, and digital operations, there are additional fields of the logistics industry where optimization is much needed. The transportation industry is beginning to move away from depending on manual operation, especially in the context of fulfillment, sorting, packing, etc. One of the newer tools created to solve these issues are pro cobots, also known as collaborative robots.
Today’s society consists of living in a world full of unpredictable circumstances. Logistics usually requires strict delivery times and deadlines with close attention to detail, and people may often not know there is a faster shipping option available. If you have an urgent, unplanned shipment that has to be delivered as soon as possible, expedited shipping can be a great solution for you and/or your company.
It is hard to imagine how the oil and gas industry operates with all its complex, critical processes involved. And it’s even harder to think of all the challenges it faces in the modern, ever-changing world. The oil and gas sector is experiencing major shifts and transformations, and it’s all because of digitization.
Many businesses struggle to move freight efficiently, save on transportation and manage their supply chain to meet the delivery deadlines in the time of tightened capacity. Freight consolidation is one of the most promising options for companies who want to compete with giant retailers and are seeking solutions for a fast, convenient, cheaper option to ship their goods. Usually, the amount of freight from one shipper is too small for a full truckload, and it is expensive to regularly book full truck capacity to ship loads with different address destinations. One of the most efficient solutions to reduce costs and achieve shorter transit times is freight consolidation.
A Look into 2019 Logistics 2018 has brought some major changes to the logistics industry. We can expect to see a continued focus on technology and innovations, which will bring the most significant changes in the upcoming year.
2018 is coming to the end, and we are taking the time to look back on the most relevant news and notable events that took place throughout the year. 2018 was a busy year and has shaped the logistics and supply chain industry in many ways.
Some things never change – and neither does the tradition of putting up a Christmas tree. Christmas trees are a cozy, warm association with family time, delicious food, snowy weather and joyful Christmas music.
The oil and gas supply chain is an irreplaceable part of people’s lives: they warm houses and offices, fuel cars and other vehicles and make the world go around. It is incredible how many processes depend on energy supplies. The logistics behind the oil and gas supply chain has many moving parts. Logistics providers help companies maintain the efficiency of their supply chains to help keep projects and shipments in order. The oil and gas industry can be complicated when it comes to logistics due to shipping items like bulky equipment, hazardous supplies, and strict delivery deadlines. Although it can be complicated, there are many ways to optimize an oil and gas supply chain.
There are many new technologies affecting the logistics industry, and one of the most promising among new technology is blockchain. Blockchain successfully changes many different industries that have nothing to do with cryptocurrency. Technology like blockchain is believed to dramatically change the company’s supply chains and save billions of costs on operations.
There were many new and exciting developments throughout the transportation and shipping industry during this month. Check out some of the top stories that made headlines during November!
Today, brand image plays a noble role in a company’s presence. So, it is crucial for companies to move from the traditional corporate model to a sustainability-focused business model. As companies aim to be more customer-oriented, there is a need to respond to your audience’s wants and needs. Customers become more interested not only in your product, but in your company’s philosophy, values, and concerns. It is essential for companies to help the surrounding environment and put in an effort to help combat the world’s global issues in any way that they can. One of the industries main concerns is green logistics – a trend that became extremely widespread in recent time.
The holiday season remains one of the busiest times for retailers, and each year, the volume of shipments continues to grow. E-commerce continues to make advancements for supply chain needs and service requirements, making it harder to compete with big companies like Amazon. This year, e-commerce sales are estimated to obtain 52 percent of total orders made during the season.
The holiday season is a tough time for retailers and the transportation industry, and the time between Black Friday and Cyber Monday can be the peak period of the rush. Large volumes of e-commerce purchases are putting more and more pressure on businesses and their logistics managers every year. Today we will look at how the crazy shopping day known as Black Friday came about to change the holiday shopping season forever.
Cell phones and different technology gadgets play a significant role in our daily lives. Almost all vital actions involve attention to a screen, and driving is no exception. According to a distracted driving survey, 88 percent of drivers are using their phones on the road. Along with high cell phone use, there are many other factors that are also distracting drivers from the road.
“The line between disorder and order lies in logistics.” – Sun Tzu Logistics and supply are one of the most essential functions for any military, modern or historical. Operational logistics for a military refer to the set of activities carried out in order to satisfy the needs of those involved. This includes food, transportation, war materials, medical services, and much more.
The last-mile delivery is a key part of a supply chain process, for both B2B and B2C businesses. It leaves the final impression about your company in the customer’s mind, so outlining the right last-mile strategy is very important.
October was full of many significant events, bringing in new advanced developments to the industry. Here are some industry updates from last month!
Why is the drivers’ shortage happening? According to the survey by American Trucking Association, the driver’s shortage could reach 175,000 drivers by 2024, which is almost five times more than 2014 rate. These forecasts can soon become a reality, as the average age of American truck driver is 55 years. It is easy to figure out that in a matter of 10-15 years, the old generation of truckers will retire, and carriers will have to deal with a disastrous situation, as recruiting young talents is a challenge.
In the logistics industry, no matter how hard you try to maintain the best service and utilize the most progressive technologies, problems can still happen to your freight during a shipment.
Third-party logistics providers already make a big impact on the transportation industry today. According to surveys, the amount of 3PLs users is growing and has reached 81 percent for domestic transportation in 2018. There is no surprise that fast and convenient shipping is a must for a company’s success. Demands for delivery rates and customer service rise every day. Therefore, efficient transportation management and awareness of 3PL trends become crucial to stay in the game.
In the age of Amazon, the only thing that is growing faster than the e-commerce sector is customers’ demands. Once a shipment is scheduled or an item is purchased, the customer is constantly looking for updates on the shipment, no matter if it’s an individual shipper or a large corporation.
Technology and digital innovations are making a significant impact on every industry. With all of the new advancements being made, there is a constant hanging question: will online services replace freight brokers? Depending on the industry, the answers may differ, but recent years have shown that nothing major is taking place yet. There is no doubt that digitalization is changing our lives and the process of running the business. But it definitely won’t do all the work.
Why is supply chain security important? As digitalization takes over the world, there is a raging demand for transferring loads of data to cloud storage. The transportation industry is no exception, considering the exponential growth of the e-commerce sector. Logistics companies and businesses are constantly working to stay ahead of new industry trends and technology but may often overlook one important aspect that is becoming a crucial part of the logistics industry – supply chain security, and cybersecurity in particular. ­
There have been many new developments that have helped make truck drivers lives easier. New technology, specifically trucker technology, has been created to make drivers’ lives easier and help ensure their safety. New truck driver technology consists of electronic logging devices, GPS tracking, mobile apps and voice activation. Today we will be analyzing the different types of trucker technology that is used today and how it can help make drivers lives easier.
Intermodal transport has recently become a popular topic throughout the transportation industry. Many companies have started utilizing intermodal to save them time and money on their shipments. We will discuss the reason many companies switch to intermodal transport, and how intermodal transport can save companies money, increase the safety & transit of a shipment, and even help reduce the company’s environmental footprint.
There were many new and exciting developments throughout the transportation and shipping industry during this month. Check out some of the top stories that made headlines during September!
There are millions of different products that are shipped out throughout the country every day. The logistics industry makes it possible for stores all over the world to replenish its inventory to meet consumers’ needs. Grocery stores, for example, rely on shipments to bring in produce from various locations all over the country to provide a wide variety of goods in their stores. This can include products ranging from bananas and granola bars to milk and beef. For grocery stores to successfully ship these produce items, refrigerated shipping is necessary so that the products don’t spoil and go bad along their journey.
Technology has completely taken over today’s world. Whether it is going to the grocery store, ordering items online, or just typing a question into Google – we expect products and answers almost instantly. As the demand for products and goods continues to grow, so does the importance of truck drivers.
There is no denying that Amazon is making its way to be a major competitor in today’s industry. Many companies, especially retail companies, feel pressure from Amazon to meet customers online and connect them with simple shipping solutions. The Amazon effect is a term used in the industry to explain how the company has changed the way consumers get goods and has introduced them to a seamless shopping process with almost immediate results.
There were many new and exciting developments throughout the transportation and shipping industry during this month. We have put together some of the top trending transportation topics that made headlines in August.
Trucks move a substantial amount of valuable goods over the roads, which makes them an attractive object for stealing. Cargo theft is especially common during the holidays or weekends. At this time, truck drivers park their vehicles and trailers for either the day or an extended period of time, making loads vulnerable. Cargo theft occurs from time to time and normally takes place in areas close to major cities. Shippers and carriers can take measures to increase cargo security and eliminate chances of cargo theft, using cargo theft prevention tips.
The Future of the Freight Supply Chain From drones for online fulfillment to mobile robots in warehouses, the current supply chain is undergoing a major transformation. With the extensive possibilities in AI, the future supply chain holds the promise of being completely autonomous and self-sustaining.
The intense hurricane season in 2017 was historical not only because of the massive scale and great number of storms, but also how destructive each storm was to the communities. What have supply chain managers and business leaders learned from last year’s hurricanes? Today we will cover how you can prepare your supply chain for the dreaded hurricane season ahead.
The ELD (electronic logging device) trucking mandate is quite possibly the biggest change seen by the trucking industry in over 50 years, and one that many people have mixed feelings about. Since its introduction in December 2017, there’s no doubt it has made a considerable impact on the trucking industry. So, in order to gain a better understanding of this ELD mandate and its effects, we will discuss the implications of the ELD trucking mandate and how it has been impacting the trucking industry since it was put into place.
Pressure to push sustainability into the supply chain has significantly increased in recent years. Having a sustainable supply chain is quickly becoming a necessary part of every business model.
What is a lead time in shipping? The lead time in shipping is the time gap between the initiation of the order to the complete execution. For example, it is time an object travels from the primary supplier to the final receiver. The concept of lead time when booking loads is a commonly overlooked factor when delivering freight efficiently and economically.
July was full of many newsworthy transportation, shipping and logistic developments. Here are some of July’s top trending transportation updates:
The term digital supply chain is very prevalent in current logistics and supply chain news, but it is a term that many people are still unfamiliar with. It is important to understand what a digital supply chain consists of and how it could potentially save your company money, time and even your environmental footprint. In order to decide if it could be right for your company, we will break down what it means to have a digital supply chain management.
It has been said that the one area that most shippers are the most uncomfortable and confused with is navigating claims for cargo loss and damage. However, this does not mean that understanding the process of freight claims isn’t imperative to running an efficient business. Here are 5 tips to make sure that your freight claim experience is as fast and efficient as possible:
Dry van shipping is one of the most popular and widely trusted freight transportation methods available. It has remained a preferred means of transportation due to the high availability and numerous benefits.
The knowledge of how to properly palletize is very important in order to prevent many accidents that happen all the time in warehouses. This knowledge will help you save a ton of time and money dealing will freight damage, as well as frustration over these damaged goods.
The growing driver shortage has been troubling the U.S. transportation world for some time now. With experienced drivers retiring, the younger generation does not actively pursue a career in truck driving due to long hours, hard work conditions and extended periods of time away from home. In a combination with the implementation of the ELD, the growing driver shortage is tightening the market and driving up rates.
June was full of many newsworthy transportation, shipping and logistic developments. Here are some of June’s top trending transportation updates:
The idea of autonomous trucks taking over the trucking industry has been all over the place in recent news. Some studies have predicted that robots will take about 40 percent of all jobs in the next two decades. That could make a lot of people out of a job, but in the context of trucking, automation — specifically autonomous vehicles — could be a godsend. Many people are very skeptical about how and if this could offer a positive impact on the huge driver shortage in the U.S., but tech and transportation firms think exactly the opposite. So, how could it be positive?
Refrigerated trucks, also known as reefer trailers, are an insulated freight shipment method for perishables and temperature sensitive products. Learn more here!
Size matters when you’re talking about freight. Space is limited, and how much it will cost you to ship your freight depends on having the most accurate measurements of your load. If you think you can just eyeball your load and record what you think the load’s measurements are on the bill of lading, think again. Inaccurate measurements — even ones off by a few inches — could cost you a lot. Any discrepancies between what the bill of lading says and the load’s actual measurements can lead to handling problems that could result in damaged goods. It also could increase your costs thanks to delays and unexpected surcharges.
Truck and over-the-road (OTR) shipping account for the biggest part of freight shipping across the U.S. While offering a good bunch of obvious benefits, OTR shipping comes with quite a few challenges. The market has its ups and downs, and by now we have learned how to analyze, predict and manage it.
This past week brought some great news for truck drivers. After a long period of 11 weeks of increasing prices, the U.S. average retail price of diesel decreased, dropping by .3 cent to $3.285, according to the U.S. Department of Energy’s Energy Information Administration report on June 4.
When companies just start getting into the shipping world, everything is new and confusing. It’s great to have a logistics professional on board to help guide the company through the shipping challenges. Unfortunately, not every company has the luxury of having a freight guru on their team if shipping hasn’t been a big deal for them.
There is no doubt that May had many newsworthy developments. Here are the top trending transportation updates ranging from the U.S.’s steel tariffs to the trending truck driver shortage.
Carriers don’t want to lose money, and customers don’t want to pay more than they should. there are many ins and outs of freight rates you need to know before booking a load.
Along the supply chain, goods must be transported to and from suppliers, manufacturers, wholesale distributors, retailers and end users. Brokers, 3PL’s and freight haulers are involved in bringing a product to market, and because of this, visibility into freight location and status is essential.
In the past two months, the U.S. has been experiencing a severe trucking shortage since the new electronic logging device (ELD) was implemented. Since the enforcement of the ELD mandate on April 1, the trucking capacity crunch has seemed to worsen.
relationship with 3plMore and more companies of all sizes are turning to 3PLs for help with their transportation management. Supply chains are becoming more complex, and securing capacity has become a challenge. 3PLs bring their expertise and solid resources to help shippers improve their logistics operations, while also driving cost savings, and generally make shippers’ day-to-day transportation challenges easier. It is important to set up a strong relationship with 3PL.
Many companies eventually come to the point when they realize it’s time to outsource their transportation management. Whether you are a large company or a small business, a good 3PL can help make your logistics operations more efficient and less stressful as well as increase customer satisfaction and help reduce transportation costs.
ELD grace period is about to end The electronic logging device (ELD) mandate is causing major changes to the industry and is making drivers want to leave the transportation industry instead of using the ELD. The regulation of the ELD rule began on April 1 after a three-month grace period allowing drivers to implement the device.
Today it seems like e-commerce giants are taking over the industry. It is possible for small and mid-sized companies to compete with these e-commerce companies with a little bit of creativity, a strong supply chain and great customer service. Companies like Amazon can often seem difficult to compete with, but following these helpful tips can help your business stand out among these companies and bring in customers.
We have previously discussed a few things shippers should understand when they start shipping truckloads. Unlike LTL, the full truckload world is characterized by a very large number of carriers. They come in all shapes and forms, from a one-man operation to a large carrier with thousands of company trucks. What does it mean for shippers and/or brokers?
Truck Driver Shortage Spurs Rising Prices A rise in prices is the result of this blunt reality: there aren’t enough truck drivers delivering goods to stores. The shortage of truck drivers is not only raising freight costs, but retail costs as well. This is nothing new, as the driver shortage has been going on for years due to baby boomers retiring and very few millennial’s wanting to be away from home weeks at a time on transport. To read more about the driver shortage and rising prices, click here.
Globalization is not just a commonly-used term, it’s our reality. The world is becoming “smaller” and much more interconnected than ever before. People are involved in the events unfolding not only in their own country but across the globe – we travel, we move and we interact. Many companies today are no longer limiting their operations to one country and are going global.
After this years hurricanes, the new ELD mandate and the ongoing driver shortage, the trucking industry is facing a capacity crunch. The capacity crunch is creating a drastic increase in freight rates. The trucking capacity crunch is making it harder and harder for both shippers and carriers to survive in the industry. Although the higher-than-average economic growth is a good thing, it is causing manufacturers and suppliers to do more business than before, making it difficult to secure carrier capacity. Shippers and carriers need to work together in this time of need to keep costs low while serving customers efficiently.
CRANBERRY TWP., PA (April 19, 2018) — PLS Logistics Services, a leading provider of technology enabled transportation management and freight brokerage services, has been named on the Transport Topics list of Top Freight Brokerage Firms for 2018.
LTL (Less-than-truckload) and full truckload shipping are obviously very different. It’s impossible to say which option is “better.” It depends on your company needs, freight type, requirements and a variety of other factors. It’s important to evaluate pros and cons and decide which option is the best fit for your shipping needs.
Small businesses often have limited human resources and have employees in charge of a wide array of different tasks. If the business has the need to ship certain products occasionally or on a regular basis, one of these tasks is managing its supply chain. It’s quite easy to make supply chain management mistakes.
Basically, the whole idea of LTL (less-than-truckload) shipping is to save money and only pay for the space you use instead of paying for the whole truck. The transit will be longer, but it will be much cheaper than moving a smaller load as a truckload. LTL shipments seem easy to arrange and handle perfectly on your first try, but are they?
E-Commerce Trends E-commerce is constantly changing the way consumers communicate with businesses all over the world. 74% of shoppers said that they prefer free shipping over fast shipping. This statistic can help companies, especially small and mid-sized businesses, gain an understanding of what promotions or offers to run to keep customers satisfied with shipping options. 1.7 billion people said that they shopped online in 2017. With e-commerce becoming to prevalent in today’s society, this number is expected to rise in the coming months of 2018. To read more about e-commerce trends, click here.
Having damaged freight can cause anyone to get frustrated. Filing a freight claim can even be more frustrating to someone who is not familiar with the process. There is a lot that goes into the freight claims process and it is important to know that damaged freight isn’t the only type of freight claim you may encounter. We will go over what freight claims are, how to properly file a freight claim and the do’s and don’ts when it comes to the freight claims process.
Self-driving trucks have been the topic of the year for 2018 so far. With last year’s announcement of the Tesla Truck, it has only grown in hype. Uber and Tesla have been front running the autonomous market for some time and are in competition to have the first truck on the market. But there are other companies around the world as well in regions such as Asia and Europe. The concept of a self-driving truck has been around for years, so why all the commotion about it now?
We are two weeks away from one of the most discussed dates in the transportation industry this year. Carriers were given a grace period between December 18 and April 1 to ensure ELD compliance. The soft launch was intended to facilitate the transition. Despite the push-back from carriers and attempts to overturn the new regulation, FMCSA will begin full enforcement of the ELD compliance on April 1.
The FMCSA issued hours of service (HOS) regulations for truck drivers that limit the maximum time that can be driven in a period. Recently in the transportation industry, the OODIA made a petition to the FMCSA to create more flexibility for drivers so that traffic, weather or dock delays don’t impact their drive time availability. They are requesting that drivers who fall under the HOS regulations are given a rest break (up to three hours) once for every 14-hour duty. This rest break would be to stop the continuous 14-hour window drivers are given to operate. However, this would not eliminate the consecutive 10-hour off-duty break that is required before each shift.
Most shippers and 3PL’s are practicing quite strict and thorough carrier vetting procedures nowadays. This is an absolute must in today’s freight world – implementing and following thorough processes for carrier screening is the only way to ensure you’re dispatching your or your customer’s freight into good hands.
This year, Women’s History Month is observed in March. This month is dedicated to celebrating accomplishments of all women in all aspects of our lives. Today, it’s hard to imagine the trucking and logistics industry without women. In today’s , we want to tell you a little bit about the history of women in trucking, who they were and how they fought for women’s rights in a profession viewed as predominantly male.
UPS Bought Electric Vehicles to Increase Sustainability Sustainability is a hot topic today that is pushing many companies to “go green” and adopt new technology that is environmentally friendly. UPS has taken a step towards being more sustainable by purchasing 50 electric vehicles. Electric vehicles can save companies lots of money by reducing the cost of maintenance along with fuel costs. UPS acquiring these electric vehicles puts them ahead of other companies who may be looking to do the same and acquire electric vehicles themselves to stay ahead of technology advancements being made in the industry. To read more, click here.
Less-than-truckload (LTL) is often our go-to for smaller shipments. It is more structured and often more cost-effective than simply shipping your freight as a partial load, not to mention that it’s much easier to arrange.
If you’re not convinced that shipping materials matter, take a closer look the next time you’re at the grocery store. There’s a reason why eggs don’t come packaged in bags the way potatoes are, even though they’re roughly the same size and shape. The reason being, of course, that you can drop a bag of potatoes on top of another bag of potatoes and still have usable potatoes. Drop a bag of eggs onto another bag of eggs, however, and the results are much different. The egg carton is a prime example of why shipping materials are so important — as well as why using the wrong shipping materials can spell disaster — no matter what you’re shipping.
The world is in constant growth and it’s difficult to keep up sometimes. We as a population grow, and as we grow, the more is needed. Everything from building materials for homes, consumer goods for pleasure, and barrels of oil for our vehicles are circulated around the world. But how do we keep up with such a demand? Well, the answer is the same that we have had in the past, truck drivers.
We all hope we never have to deal with freight claims. It always seems very hypothetical and unreal – until your first shipment is lost or damaged. Unfortunately, if you are an active supply chain participant, you will most likely end up with a freight claim at some point in your career.
When you picture Valentine’s Day in your mind, what do you see? Chocolates, hearts, giant stuffed teddy bears, and “lovey-dovey” cards. But isn’t there something that is even more common on that day? Yes, flowers! But not just any flower, roses, vibrant red roses. These beautiful and delicate flowers are a true symbol of love and a staple when February 14th arrives. Their growing popularity has called for higher import numbers. In fact, an average of 198 million roses are produced each year just for Valentine’s Day. That’s a lot of flowers…
The discussion of the North American Free Trade Agreement (NAFTA) has been popular the month of January with officials from the US, Mexico, and Canada ending round 6 talks in Montreal, Quebec on the 29th. Ever since President Trump made the announcement that NAFTA was the “worst trade deal the US has ever signed” during his 2016 election race, tensions have been high in North America because of uncertainty.
International shipping comes in different shapes and forms. Shippers can choose the most suitable transportation mode for their shipment depending on what they need: quick transit or cost-savings. Air shipping will offer fast transit times, but it will come at a cost. Ocean shipping will be significantly slower, but at the same time, much friendlier-priced.
2018 Winter Storms Were in Full Effect inga-snow-recap-noaa.jpg Early January was the time for snow. The East Coast was hit hard at the start of the year with snow squalls reaching as far as northern Florida. Regions around Lake Erie saw heavy snow the first week of January, with record-breaking accumulation of over 133 inches. Major roadways were shut down causing large delays and disruptions to markets with restrictions to trucking. Not long after, the major storm Inga swept through the Northeast, Midwest, and South. Inga was one of the largest winter storms in recent history. Many states were unprepared and lack the means of snow and ice removal creating gridlocks. Airports where heavily disrupted, roadways were closed, and schools/ businesses shut down.
Winter is in full swing, and we are “lucky” to have an opportunity to experience all the negative side effects of severe winter weather. Last week we discussed a few tips to help you handle your shipping in winter. Today we want to continue the topic and get a bit more practical. Significant parts of the U.S. suffer from all kinds of severe weather during winter season, including very low temperatures.
The importance of owner-operator insurance You are now an official owner-operator, the freedom feels great, right? No longer are you stuck with destinations and loads that you can’t make decisions on while in a fleet that is not your own. It’s a big step into the new role, but the opportunities are endless. The time couldn’t have been better if you made the switch, rates are soaring high and capacity is at a shortage. With the shorter capacity, you can now be a little choosier about the loads you plan to take.
Busy holiday season is long over, but there are more winter challenges we still have to face! Winter weather is one of these things we all know about, but somehow it finds a way to always catch us off guard.
With all the discussion about capacity and high rates in the transportation industry, the task of finding a new 3PL to move your product is not any easier. 2018, the time of record diesel prices, higher than normal truck rates and a pretty tight capacity. You may have looked into a new provider recently but were faced with the daunting question of WHO? Well, look no further, as well have a thought out list of what to look for when choosing a 3PL that works for you.
The driver shortage is a complex issue caused by a variety of factors. According to the American Trucking Association (ATA), the driver shortfall will grow to more than 175,000 by 2026 if the trends don’t change.
Sometimes technology can be frustrating, but with the right product, it doesn’t have to be. An effective Transportation Management System (TMS) can relieve frustration out of your day if you’re a shipper, carrier, or 3PL.
It’s not a secret that we are all currently operating in the conditions of the record-breaking capacity crunch. The crisis has been caused by several factors which we have previously discussed in our post, even more so with the ELD mandate finally going into effect on December 18th. This fact adds up to the reasons to use a 3PL in the tight capacity time.
The ELD mandate went into effect on December 18th, 2017, despite the attempts to delay it. The start hasn’t been smooth, many have been feeling the effects of it, but many are getting used to what is now a reality. A big topic of discussion is whether the mandate will remain in place, but it appears it is.
We are officially into 2018, the year of opportunity and change. 2017 laid out the foundations for what is to come. In today’s , we break down what you can expect to see throughout the year in the realm of logistics and transportation. It’s going to be quite the busy year!
Everything You Need to Know: Spot Market Freight: Have you ever wondered about how the product you buy from a store ended up there? The complexities of a supply chain and the steps for moving freight to its end location are often overlooked. But, for manufacturers, suppliers, and retailers, logistics is a top priority to business operations. Accurately planning for efficient transportation routes and potential delays comes with many challenges, which is why many shippers turn to a freight broker to ship goods.
We understand why it might often be assumed that an asset-based carrier has more advantages than a 3PL. Quite often, shippers don’t feel comfortable working with non-asset based 3PLs and end up limiting, and thus hurting, their supply chain.
Still searching online last-minute holiday gifts? Well, you are one of the millions this holiday season to use an e-commerce site to do their shopping. Whether you ordered something for your home, business, or a loved one, expect to see some delays in delivery.
Earlier last month, President Trump announced that he was going to unveil his long-awaited infrastructure plan for the nation sometime this January. The proposal is a 70-page memo, that is on track to be submitted to Congress next month, will be the stepping stone for the creation of the legislation. During his 2016 election campaign, Trump vowed to invest $1 trillion to rebuild America’s crumbling infrastructure. This could mean major changes within the expanding transportation industry.
No one likes damaged freight. Not only does it cost money and relationship with your customers, but also adds more stress and pressure to your daily operations. Freight claims are usually time-consuming and, honestly, quite unpleasant to deal with.
What Does Tesla’s Automated Truck Mean for Truckers? Semi_Front_Profile.0.jpg Tesla unveiled their latest addition to the automated fleet, the Tesla Truck. The truck is a fully electric truck capable of automated transportation up to a significant 500 miles between charges while carrying 80,000 pounds of cargo. This is a historical moment in the trucking industry as Elon Musk enters with his technology. The entrance of the truck could help road safety but hit the job market in a negative route. Read more on the Tesla Truck here.
As we have mentioned in an earlier post, one of the traits of a successful 3PL is having established processes in place, or in other words, standard operating procedures (SOP’s). It’s hard to overestimate the importance of SOP’s in general, but even more so in logistics operations. This is not only applicable for 3PL’s – any supply chain/warehousing operations will benefit greatly from implementing SOP’s into their day-to-day.
Blockchain has been a very popular subject over the past few months. Recently, Blockchain in Transport Alliance (BiTA) had its first meeting in Atlanta, GA. They conducted an informational seminar to help others understand blockchain. It’s no simple topic though, even broken down it is still a complicated technical system.
We have previously covered a couple of useful tips for pre-screening your options and choosing the perfect Freight Broker – today, we’re going to dig a little deeper! Ideally, a relationship between a shipper and their 3PL should be a long-term stable alliance striving on mutual respect, support and understanding. The whole idea of partnering up with a successful 3PL is about working with someone you can truly rely on.
Elon Musk announced the Tesla’s electric tractor-trailer undertaking last summer, and it turned out to be a subject of heated debates and anticipation ever since. Originally scheduled for October 26th, the big reveal got pushed back to November 16, 2017.
It’s 2017, technology is practically everywhere and everyone is digitally connected. Most businesses have adapted to the changes in tech, yet some are still behind.
What is a freight broker? Shippers use freight brokers for managing their transportation needs. A good freight broker offers access to an extensive carrier network and provides quality service you can rely on. Having a go-to freight broker is an easy way to boost up the capacity for your loads without the daunting task of qualifying and managing lots and lots of carrier partners – this is especially beneficial in times of the current load-to-truck ratio.
The Electronic Logging Device (ELD) Mandate is happening whether your company likes it or not. There are critics, and there are supporters – no matter the side you’re on, your company needs to prepare for the inevitable. To help, we’ve laid out 4 tips for you to prepare for the ELD Mandate.
What is the goal of any business? The answer can vary depending on who you ask, or course. But as a service provider, we all agree that our most important goal is to provide the highest level of service to our customers. Otherwise, how do we plan on retaining our customers and staying afloat within this very competitive industry?
The Technology That’s Revolutionizing the Trucking Industry From Autonomous Freight Hauling, to Blockchain innovations, to Hyperloop technology – the industry is changing. Stay on top of the trends by reading more here.
As we are getting closer to the holiday season, we start to feel the pressure of the upcoming volume spikes and tight deadlines. This time of the year might be the busiest for the transportation industry in general, and definitely the craziest time for most retailers.
With the logistics industry continually growing and redeveloping, freight brokers and 3PLs are taking to new heights for becoming more efficient. The reasoning? Efficiency = increased revenue. Trailer pools are the new hot topic of the logistics industry, could this increase shipper and carrier efficiency?
High-speed 24/7 processing with enhanced order accuracy which is running like clockwork – doesn’t that sound perfect and slightly sci-fi?
It’s no secret that rates are increasing and could continue well into 2018. Both spot rates and contract rates are spiking.
When you need to move a smaller high-value shipment, you undoubtedly consider shipping it LTL. This is definitely the most efficient way, but what about the classic LTL risks? The freight will be handled and transferred multiple times between origin and destination increasing the risk of loss and damage.
LTL shipments and quotes have been a popular discussion in recent weeks of the PLS. We’ve covered everything from LTL quotes for beginners to LTL shipping mistakes. Now we’re going to go in-depth on how to choose the perfect LTL freight carrier with these 5 tips.
Anyone connected with transportation is well aware of the latest market trends and conditions. We have been witnessing a steady increase in truckload rates lately. Experts predict this is only the beginning and spot market rates will keep climbing in the foreseeable future. Capacity is tighter than ever and its load to truck ratio in September is breaking the records.
The Electronic Logging Device (ELD) Mandate has been a wildly popular topic of discussion for years. The U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) announced that motor carriers must begin using ELDs on all trucks and commercial buses. Carriers and drivers have until December 18, 2017 to comply.
The circulation of goods is a vital part of our lives, even if we don’t realize it. If your job is logistics-related – you know how much freight is moving across the globe on a daily basis. The environmental impact cannot be underestimated. Getting rid of emissions and pollution entirely will take some time and technological break-through. To support the green initiative, you can become an eco-friendly shipper.
June Automated Trucks: glass half full or half empty? The trend toward more advanced automated drive technology is slowly moving into the trucking industry. Drivers share mixed reviews. Some are optimistic that the technology will improve safety, while others are concerned about the reliability of the equipment (Read more here).
Cranberry Twp., PA, August 30, 2017 – PLS Logistics Services, a leading 3rd party logistics provider, announced a donation of over $32,000 for the American Red Cross hurricane relief. The money was raised through employee, customer, and company contributions.
Clear visibility of all processes is important for any business – you cannot run your business efficiently with your eyes closed. Good business runs as a well-oiled machine, and you cannot achieve that without the full visibility – especially when it comes to managing your supply chain.
Truck capacity goes hand in hand with truck rates: the lower the capacity – the higher the rates. Simple math! We have witnessed the usual seasonal rate spikes in recent years, but outside of that, major rate increases have been rather limited.
Hurricane Irma, which weakened to a Tropical Storm on Monday morning, was the most powerful Atlantic Ocean storm in recorded history. This is the second Category 4 Hurricane to hit the United States this year, following Hurricane Harvey last month. So, what does that mean for the United States and the transportation industry?
Hurricane Harvey, now downgraded to a Tropical Depression has impacted the lives of millions in the Gulf Coast region. While the rain subsided in heavily affected areas, the after effects of this hurricane will be seen for the weeks and months to come. The PLS Houston employees are back in the office as of 9/5/17 and our employees on site in Baytown are back to their duties.
We have covered the benefits of LTL shipping in a few previous posts – now it’s time to get down to practice! Here you are with a few pallets you are planning to ship as less-than-truckload, but you have never quoted any LTL loads before – where should you start?
LTL, or Less-then-Truckload, is quite popular across the board nowadays. If there is no rush – there is no reason to pay for the whole truck to ship just a few pallets. This is where LTL comes in handy. Using a 3PL for your LTL Shipments can benefit your business in many ways.
Hurricane Harvey has made landfall in Texas as of Friday 8/25/17. This is the largest storm to hit the United States in over a decade. Some forecasts are calling for as much as 60 inches of rain from Harvey. What does this mean for the transportation industry? A breakdown below:
Are you a small business owner? Then you know that sometimes you can be overwhelmed with all the orders and the urgent need to meet all the delivery requirements, whether it’s the material needed for production or a final delivery to your customer. That’s where a 3PL small business shipping can help.
As hazardous materials and wastes become more common, it is more important now than ever to understand what they are, what are the risks, and how to ship them.
Countless movies covered it, humans expected it, and now the future is here. Self-driving vehicles are upon us. Self-driving vehicle technology is currently one of the most discussed topics in the transportation industry – and might be one of the most controversial ones.
Capacity tightening, driver shortages, and other industry challenges are having a big impact on shipper operations. To have an effective transportation management system, you must move freight from origin to destination in a reliable, efficient, and cost-effective manner. This is no manual task.
Many shippers consider LTL (Less-then Truckload) as an option for their smaller shipments for obvious cost-saving reasons. Why pay for the whole truck if your freight only occupies a few feet of deck space?
iStock-641135686.jpgDrone Delivery Approved in China SF Holding, a Chinese delivery company, has obtained a license from the country’s military to use drones to deliver commercial packages. Find out more here.
There’s a never-ending battle of cheap vs. safety. Which will you choose – cheaper or safer? Going with safer over cheaper might (and will) save you a lot of trouble and money in the long run. It’s not worth to lose a dollar while trying to save a dime, right?
Moving things from point A to point B is what we do. It’s how we do it that makes us successful. There are a variety of Transportation Best Practices that help us run our well-oiled machine. We’ve compiled 4 best practices to help you and your company operate your business.
Supply chains are becoming increasingly more complex; they are more global now than ever before. The more global they are becoming, the more emphasis there is on changing regulations and demanding customer needs.
More Diabetic Drivers Seek Exemptions. Insulin-dependent drivers are requesting exemption to stay behind the wheel, but the current approval process is inefficient. Drivers face long-waits when seeking exemptions due to vague medial guidelines. However, over half of drivers seeking exemptions are getting the FMCSA approval stamp, compared to 39% two years ago. (Read more here).
Have you ever shipped anything via railroads? Historically, rail transport hasn’t been the first choice for plenty of industries. However, more and more companies are switching from trucks to rail. Significant investments in the intermodal transportation in the recent decades made it more reliable, cost-effective and service-oriented.
Amazon’s Purchase of Whole Foods: Major Produce Shipper on the RiseiStock-583854602.jpg Amazon is pending the purchase of Whole Foods for $13.7 Billion. Amazon will become a major shipper of the difficult market of fresh produce. This new player could mean serious changes for other produce shippers (Read more here).
Managing a supply chain is all fun and games until you bring efficiency and profitability into the mix. No matter how good the product is, a poorly-managed supply chain will give your business no chance at real success.
Who doesn’t love the holidays? Family, friends, and food- what more could you ask for? However, if your job is logistics-related, it might be a bit more complicated than that. Your excitement and holiday anticipation (if not the holiday itself!) may be heavily affected by the stress and pressure of trying to keep everything under control. Unforeseen delays and disruptions are inevitable, but we can do our best to be ready for the holiday shipping and minimize the potential risks.
With the continuous evolvement of global supply chains, there is a greater emphasis on investing in experienced logistics and supply chain managers. This industry movement has caused 4 key trends in logistics and supply chain education and career development for managers to look out for.
For U.S. based companies are entering the export market, Canada is usually the first place to look. Canada is our neighbor; shouldn’t be too hard, right? Wrong.
Managing your supply chain is a part of your everyday business. What some professionals don’t know is that there are hidden costs in your processes that often go unaccounted for, and can result in your business losing track of your actual costs.
Today, the business operates in a digital world – once that changes at a rate seemingly impossible to keep up with. In order to succeed in this business climate, a company needs to adapt to the pace of change.
No matter the company, the ability to compete in a challenging economic climate is a necessity, and the amount of time, money, and energy spent on finding new ways to do this is exponential. Companies that don’t use the right type of fleet risk higher costs, inefficient service, low reliability, and wasted time. Re-evaluating the type of fleet your company uses can bring an invaluable advantage.
A new term to describe a supply chain that is all-seeing, real-time, productive, optimized, and cognitive has recently emerged. The “sentient supply chain” refers to a supply chain that’s nodes communicate 24/7.
Collisions are impossible to predict, and when they happen, they can cost your company millions. To combat this, you’ll want your fleet manager to construct a safety program that makes this unpredictable expense, well, predictable.
UPS Adds 400 Dangerous Commodities to Its Fly List. The shipping and transportation mammoth has chosen to add 400 “dangerous” commodities onto its current global air network. The company also increased the allowable shipment size and added 300 products to its European ground network. (Read more here.)
Trust and respect: twiStock-503226977.jpgo words that are imperative for a mutually rewarding outsourcing relationship. And so it is for an optimal 3PL experience. It seems easy, right?
Continued growth of e-commerce and heightened customer expectations have prompted huge innovation in last-mile delivery practices. Last-mile delivery involves three main players – customers, merchants, and delivery providers – each with a different set of challenges and expectations.
Trucking has provided drivers and families with a decent living for decades. Although the demand for truckers has been persistent, most don’t expect it to last forever, especially since major truck manufacturers and startups have been busy testing automated and driverless trucks.
Analyzation of countries such as Myanmar, Vietnam, and Cambodia, prove that emerging markets are popular again, as suppliers are increasingly flocking to these new manufacturing hubs. Small, independent suppliers within emerging markets offer great benefits to established retailers in developed markets, and the relationship is one that is valuable and extremely worthwhile for both parties.
Somali Pirates Hijack First Commercial Ship Since 2012. Pirates have hijacked an oil tanker with eight Sri Lankan crew on board, Somali authorities said last week, the first time a commercial ship has been seized in the region since 2012. (Read more here.)
Nowadays, we’re living in the age of the “spoiled consumer.” E-commerce shoppers have an undying demand for both fast and free shipping, one that has been perpetuated by benefits like Amazon’s Prime membership, a $99 per year membership that qualifies buyers for free two-day shipping on eligible products. You’ll be hard-pressed to find a Prime member who will buy a product with no “Prime” logo without extensive searching for a substitute that comes with the free two-day shipping benefits first.
Visibility refers to understanding what goes on between the start and end of a process. With supply chain visibility, companies can analyze data and evaluate suppliers, processes, and prices.
Grocery retailers spend hours, days, and even months trying to differentiate their brand and make themselves the consumer’s go-to store. In an industry that touches almost every target market, this can be tough.
A substantial amount of over-the-road freight transportation is handled by freight brokers. A freight broker is a person or company that brings together a shipper (with freight to move) and a qualified carrier (who has the capacity to move the freight).
Shippers are expecting higher rates and less capacity this year, so many are trying to lock in contract rates and secure trucks before the spike. Carriers have been hammered by low fuel prices, strict regulations, and rising equipment costs.
Large and even medium-sized, companies that are strictly domestic are becoming increasingly less common. Today, the clear majority of enterprise-class companies are global because the benefits of low-cost sourcing into other countries and selling into new foreign markets cannot be passed up.
When a company outDistribution_Center.jpggrows its distribution capacity, it expands by opening a new distribution center (DC). The best approach to choosing your new DC location is to evaluate your entire logistics strategy.
Have you ever wondered about how the product you buy from a store ended up there? The complexities of a supply chain and the steps for moving freight to its end location are often overlooked. But, for manufacturers, suppliers, and retailers, logistics is a top priority to business operations. Accurately planning for efficient transportation routes and potential delays comes with many challenges, which is why many shippers turn to a freight broker to ship goods.
“Trucking Futures Exchange” Could Launch This Summer: DAT Solutions and Transvix have teamed up to create a futures exchange that will allow trucking companies, 3PL’s, and shippers to better combat spot market rate uncertainty. The Exchange would use a similar process to the New York Mercantile Exchange and the Chicago Board of Trade. Futures contracts will be bought and sold on commodities like fuel, oil, or grain. (Read more: The Interrelated Issues Facing the Trucking Industry)
The 2017 Capgemini Third-Party Logistics Study revealed that 3PLs and shippers are moving toward more meaningful relationships, where shippers rely on 3PLs to provide advanced solutions and real competitive advantages. One trend that emerged in the study is the shift from shippers using single-mode providers to using flexible solutions to utilize the most cost-effective method of moving freight.
The 3 main goals of supply chain visibility are 1) to reduce business and supply chain threats, 2) to improve performance and service, 3) and to identify inefficiencies and opportunities in the supply chain.
In the past, shippers and their third-party logistics providers stuck to a uniformly transactional relationship. This relationship was one of utility for both parties and lacked any true value or longevity.
Demand for reefers is not only seasonal but regional.Reefer.jpg In late November 2016, reefer load and truck posts rebounded after the Thanksgiving holiday. Load posts jumped 49%, yielding a 36% increase in the load-to-truck ratio. That’s the highest reefer ratio since March 2015. Then, in January 2017, reefer load posts dropped 9%, compared to December 2016. From January 29 to February 4, DAT Trendlines show that reefer load posts dipped 5%, and the national average reefer rate fell 6 cents to $1.91 per mile to accommodate the loss in demand.
data-driven supply chainShifting capacity, increased shipper demands, and unpredictable disruptions make informed decision-making a top priority for logistics professionals. For shippers trying to optimize the supply chain, efficiency is the number one priority, and analytics drives results.
From 2015 to 2016, freight declined hurriedly, by as much as 15% in the dry van sector. In 2016, freight volume and rates began to rise and shippers had a consistent capacity. Freight demand was strong at the end of 2016; the DAT Freight Index revealed that spot market demand increased for 6 straight months, from June-December 2016. This year, analysts are predicting less capacity, steady freight volume, and rising rates.
The automotive industry has a lot of moving parts and experiences ebb and flows as demand and economic conditions shift. Most US automakers outperformed December expectations, selling 17.55 million new vehicles, ending 2016 on a high note. In 2015, US markets set a sales record of just under 17.5 million vehicles, up 5.7% from the year before.
US Manufacturing Expect Rising Profit in 2017. Manufacturing has expanded at the fastest pace in 2 years, and US manufacturing firms expect to see revenues accelerate 4.6% next year. (: Manufacturing Productivity Generates Focus on Transportation)
Ports and surface transportation must be able to accommodate the country’s growing population and freight volumes. The US DOT predicts that by 2045, freight volume will increase by 45% and America’s population will grow by 70 million people. America’s infrastructure has an average rating of a D+, ranking 12th worldwide in its health of infrastructure.
The Environmental Protection Agency (EPA) is preparing a rule that would set new standards to reduce NOx emissions from heavy-duty truck engines beginning in 2024. The agency last tightened its NOx standards for truck engines in 2010 to 0.2 gram per brake horsepower-hour.
3PLs have two fundamental responsibilities – leading customer relationships, which focus on supply chain services and providing the management of those services.
Shipment tracking technology enables shippers to be in control of their transportation and locate freight at any point in its journey. Track and trace features are available on a transportation management system (TMS). With this technology, you have the insight into carrier performance, transportation costs and market trends as you manage your logistics. Shipment tracking is a necessary element of supply chain management.
guide to transportation management systemTMS software is credited for saving companies money; those who manage transportation poorly spend $53 for every $1,000 of total spend on outbound transportation, while those utilizing a TMS only spend $6.35 per $1,000.
The American Trucking Association projects that the trucking industry is poised for serious growth by 2022. The forecast suggests that overall revenue for the industry will rise almost 66% and tonnage will increase 24% by 2022.
Motor vehicle crashes continue to be a leading cause of death and injury in the US – killing more than an average of 32,000 people a year. A 2007 National Highway Traffic Safety Administration (NHTSA) study found that almost half of all two-vehicle crashes are rear-ended crashes, and the primary reason for rear-end crashes is driver inattention.
Amazon Innovation: Grocery Stores. Amazon’s first big venture into brick-and-mortal is revolutionary: a grocery store with no cashiers or checkout lines. In the new store, shoppers will scan their Amazon Go app, and the technology will keep track of what you are picking up and add them to your virtual shopping cart. (Read: Omnichannel Takes on Food Industry & Gains Consumer Support)
LTL carriers saw all-time high revenues in 2014, then due to a decrease in fuel prices, revenue dropped in 2015. Balanced supply and demand kept LTL prices from dropping in 2016, and JOC.com reports that LTL carriers are looking forward to 2017 as freight volumes are predicted to be higher. Next year, the LTL sector could see a capacity crunch due to the ELD mandate, a slow economy and pricing models. LTL pricing is expected to increase in 2017 and fuel costs aren’t likely to see change. In order to cut LTL freight shipping costs, shippers need to be exact with freight’s weight and dimensions, package and pallet the freight properly, consider consolidation, and utilize transportation management systems.
(#11 Most Read in 2016) Seasonal Freight Surge and Consumer Forecast -Fuel prices, weather, capacity, and e-commerce are a few factors that determine truckload demand during the holiday season. Before Thanksgiving, reefer volumes increased and as December’s holiday shoppers start buying, more dry van loads were posted. UPS is expected Monday, December 19 to be the busiest shipping day, and for this year to have 14% more shipping volume than last year. (See the NRF predictions here.)
What Are the Top Supply Chain and Logistics Trends in 2017? Globalization logistics trends 2017 The supply chain is affected by the globalization of business, and those who work with international suppliers don’t have the same competitive advantage they once had. More markets are emerging in the global economy, and traditional supply and demand are changing. Industry Week reports that by 2025, global companies will have procurement managers based in China to source materials and services not only for their operations in that country but for their entire organization. Brazil, Russia, and India are predicted to become sources of supply and demand for global companies. Companies will have to be transparent in supply chain expansion strategies and offer suppliers visibility.
The first week of December 2016 had the highest week of volumes on the spot market in the past 2 years. DAT reports that the increase in available loads is because of e-commerce shopping. Denver and Memphis, in particular, saw load availability soar because those markets are distribution hubs for e-commerce.
Who is the Same-Day Delivery Consumer? Consumer expectations are growing. Why? Since companies have tested the same-day delivery option, consumers expect it as the standard. Coldwell Banker says about 53% of US customers are more likely to make an online purchase if they are offered same-day delivery.
Supply chains share common goals: increase productivity, reduce costs, mitigate risks. Common goals for reverse logistics are to improve customer satisfaction, cut costs, maximize return on assets. Reversing the supply chain means taking in returns, recalls, damaged goods and overstocked merchandise and recapturing its value or disposing of it. With the popularity of online shopping, the supply chain has become more multifaceted, increasing the importance of an organization’s reverse logistics strategy and inventory management practices.
Hazardous materials are substances that the Department of Transportation (DOT) has determined are capable of posing an unreasonable risk to health, safety or property when transported.
A product recall is a process of retrieving and replacing defective or unsafe consumer goods. When a company issues a recall, the company or manufacturer absorbs the cost of replacing and fixing those defective or unsafe products. Recalls create tension in the supply chain and test consumer relationships, affect sales, and can negatively affect a brand’s reputation.
What is a routing guide? Routing guides contain routing instructions and an established set of guidelines and requirements for manufacturers, suppliers, wholesalers, and distributors to follow when fulfilling orders and shipping products or materials to a specific location, warehouse or DC. A routing guide is the foundation of transportation management.
Little Change in Economy, but Rate Increase Coming. Next year, the US economy won’t change much, growth expected to be about 2%. FTR predicts more of the same, but when you factor in low expectations, 2017 will feel like a good year. Shipping prices are expected to increase in 2017 and continue into 2018. FedEx, UPS and several LTL carriers have announced a series of rate increases effective in 2017.
Adobe Digital Intelligence says that 31% of consumers start shopping before November 1, and 27% will start before Thanksgiving, so the supply chain plans for the holiday season for months and months in advance. So many of the year’s sales occur during the short two-month season, so the logistics process needs to be efficient enough to handle the increase of purchases. It’s estimated that retailers derive 20-30% of their annual profit during November and December. “The holiday season puts great pressure on supply chains because everyone peaks at the same time,” says NRS vice president of logistics and supply chain solutions.
What is a non-asset based third-party logistics provider? A non-asset based third-party logistics provider is a firm that doesn’t own equipment, but partner with carriers to provide transportation services. There are many myths and misconceptions about non-asset based 3PLs. However, none of them are telling the truth. So, we have outlined the most common stereotypes, and crushed them:
The trucking industry has a reputation for being low-margin, highly fragmented and cyclical. Many tech companies have an interest in shaking up and rethinking the industry.
The state of the freight market 2017 The latest American Trucking Association (ATA) report predicts freight volumes and the number of goods moved by truck will grow. Shipping rates are expected to increase as existing capacity is negatively affected by economic conditions and new regulations.
Supply chain relationships have evolved to be central to the success of 3PLs and their customers. Companies are finding innovative ways to make collaboration work for the shared benefit, and by teaming up with suppliers, buyers, and competitors, companies are reaping benefits of cost efficiencies and monetary availability.
A long-term funding plan to modernize America’s infrastructure has been extensively talked about in political circles. This election, it’s not different.
Uber’s Plan for Long-Haul Trucking. Uber Technologies acquired Otto, a self-driving truck startup. The goal is for Otto-branded trucks and trucks equipped with Otto technology to begin hauling freight next year. The Uber-Otto freight move model includes technologies like navigation, mapping and tracking. Uber is aiming to establish itself as a freight hauler and technology partner for the $700 billion-a-year trucking industry. On October 20, Uber reached a landmark milestone by completing the first ever commercial cargo run for a self-driving truck.
Despite the common TMS myths, it lets companies understand their processes while reducing costs, and forecasting accurate demand.
By 2017, the US population is expected to rise to 332 million, a 70% increase from fifty years ago. Population growth in cities is placing a strain on existing transportation systems and creating demand for more transportation choices. Industries and consumers depend on the consistent, timely flow of goods and services. The mounting volume and availability of information and the rapid development and adoption of technologies is transforming all aspects of life – including transportation.
For cargo shipping, focus is on the Cuban port, Container Terminal Mariel (TC Mariel) which opened in January 2014. The Obama Administration has made it easier for container services to add Cuba as a port of call since they’ve reopened embassies and ended a 54-year diplomatic standstill with the country. In May 2016, the first US cruise ship docked in Cuba since 1978 – opening the door to more travel and business with Cuba, but there are still limitations on trade in goods and services – the US trade embargo is still in place.
The fast e-commerce environment, which is increasing competition, and the initiative to use data to analyze trends and operational efficiency are contributing to the demand for hi-tech logistics solutions. Technology is the key driver of an organization’s supply chain efficiency and success. Shippers are familiar with transportation management software (TMS) systems that give them a competitive edge. New tools like mobile apps, cloud-based software, and big data provide shippers immediate, enhanced visibility that breaks silos and generates communication, collaboration and efficiency.
TMS for inboundInbound freight management is multifaceted and can eat up more than 40% of the average organization’s annual freight budget, according to Aberdeen Group. However, using a TMS for inbound shipments can help prevent unwanted costs.
how to use TMSSupply chains are increasingly complex, and companies who leverage technology find competitive rates, enhanced operations, greater flexibility, and cost reductions.
LTL Rates Increase Despite Freight Conditions. Freight companies announced rate increases despite the uncertain freight market. UPS said that the rate increases will support ongoing expansion and capability enhancements. LTL rates are primed for an overall 1.5% increase in 2016, and another 2% increase in 2017. (Read: Transportation Outlook: What if there’s Another Recession?)
Deciding the best mode for shipping your freight can be complicated. To determine the primary way to move freight, shippers should identify the size of the shipment, the budget, the delivery schedule, and the freight’s fragility. To know which mode fits you best, you have to know the difference between LTL and FTL shipping.
SafeTrucking.jpgThe week of September 11-17, 2016 was Brake Safety Week, an annual outreach and enforcement campaign designed to improve commercial motor vehicle brake safety.
Advances in transportation and telecommunications technology have contributed to the growth of international trade. The United States imports and exports more merchandise than any other country making it the world’s largest trading nation. The US trades with nearly 200 countries worldwide. Trade encourages economic efficiency by providing an assortment of goods at lower, competitive costs.
Flatbed_Shipping.jpgProject logistics refers to specialized freight moves that are oversized, heavy-lift or hazardous. Moving over dimensional, overweight or toxic cargo is a complex job that involves heavy shipping equipment and moving project materials to work sites, facilities and construction stations whether on- or off-highway.
Understanding Last Mile Logistics Last mile logistics refers to the outbound transportation from a fulfillment or distribution center to the final delivery at the customer’s door. The last mile is the top priority for retail brands but is also the most expensive, least efficient and most challenging part of the delivery process.
The less-than-truckload (LTL) market is adjusting to a soft freight environment, triggering less volume, revenue and profits. As the U.S. freight economy weakened, LTL carriers saw a slip in revenue year-over-year. To date, the only large LTL carrier that hasn’t reported a decline in revenue is FedEx.
Louisiana Weather Causes Shipment Delays. Louisiana called a state of emergency after heavy rainfall affected the region. More than 280 state roads have been flooded and closed, affecting intermodal rail and truckload shipping. “It’s a major disaster,” said Rodney Mallett of Louisiana Department of Transportation and Development. (Learn more here.)
On August 16th, the Obama administration released the final rule on Phase 2 of greenhouse gas (GHG) regulations for the transportation industry. Phase 2 is more comprehensive than Phase 1, and will gradually be enforced from January 1st, 2018 until its full implementation in 2027.
The number of online shoppers is estimated to reach 270 million by 2020. In 2015, online sales totaled $335 billion, and a recent report from Forrester predicts that online sales will grow by an average annual rate of 9.32% over the next 5 years.
Freight shippers are enjoying a buyer’s market at the moment. There’s widespread overcapacity in the trucking industry, forcing carriers to lower prices in an attempt to keep their trucks full. For now, shippers can find low transportation rates relatively easily.
The 27th Annual State of Logistics Report shows that inventory levels are down and logistics costs are rising. Given the extreme demands of the hundreds of millions of online consumers who expect free shipping and fast delivery, e-commerce interrupts transportation budgets and regular shipping strategies. In 2015, transportation costs rose 1.3% year-over-year.
Getting low transportation rates is challenging. The problem is that most people don’t have time to learn the complexities of the transportation industry. And, most people don’t understand the pricing leverage they already have.
Last month, CSCMP and consulting firm A.T. Kearney released the highly anticipated 27th Annual State of Logistics Report. The report reveals a strong shippers’ market in 2016, a slow rise in transportation rates in 2017, and vaguely states there will be large obstacles to productivity in the future.
Deloitte’s 2016 Global Manufacturing Competitiveness Index (GMCI) displays the influence manufacturing has on economies in terms of infrastructure initiatives, technological developments, employment rates, and contribution to the GDP.
FedEx Delivers to Cuba. FedEx became the first American freight carrier with rights to deliver freight to Cuba. FedEx says they will begin service on January 15, 2017. Their rights extend to July 15, 2018.
Cyber-attacks are an increasing threat in the transportation and logistics industry. Transportation and logistics are integral to the world’s economy, and therefore, a valued target for hackers.
Supply chain mistakes are costly. The smallest error is amplified due to the sheer size of a supply chain. It is crucial for companies to maintain best practices in supply chain management.
In 2015, the FAST Act required FMCSA to remove CSA (Compliance, Safety and Accountability) information from public view. It also mandated that FMCSA repair the CSA program so that scores can be used as a consistent, reliable safety measure.
Despite the negative connotations of the terms ‘broker’ and ‘outsourced’, third-party logistics companies have gained popularity and are employed by nearly every industry in the U.S. How did this happen?
Last mile logistics refers to the movement of goods from a warehouse or distribution center to its final destination. To create customer loyalty, the last leg of transportation needs to be flawless.
Despite the rapid evolution of today’s supply chain and the proven cost-saving ability of a transportation management system (TMS), few shippers are using TMS software. In fact, only around 35% of shippers have a TMS.
History of the Panama Canal During the 1800s, businessmen didn’t have an efficient or quick way to ship goods between the Atlantic and Pacific coasts. The British proposed a canal through Nicaragua that was never built and the French attempted to build a canal through Panama but evacuated the project due to fatal diseases. Despite the unsuccessful attempts, Americans were undeterred. In 1914, the United States began to build a canal in Panama.
Wal-Mart Testing Grocery Delivery + Drones. To compete with Amazon, Wal-Mart stores are testing a grocery-delivery service with Uber (in the Phoenix market) and Lyft (in the Denver market). Once a customer places a grocery order online, it will be filled and packaged by employees, then sent in an Uber or Lyft to the customer’s location. The retailer is also testing drone use at its warehouses. Drones capture real-time images and spot missing inventory. A drone can complete this task in about 1 day, but it would take a full month if done manually.
With industry experts predicting an increase in freight rates later this year, the pressure is growing for shippers to reduce transportation spend. But, if a electronic-logging-devices.jpgshipper pays lower freight rates than their peers, will it negatively affect the carrier’s performance? A recent study set out to answer this question.
Supply chain efficiency is top of mind for companies in all sectors – efficiency means reduced costs and increased output. Today, tech advancements like drone delivery, autonomous vehicles and the Internet of Things enable supply chains to increase efficiency and productivity by connecting to smart components in the supply chain.
Shippers and trucking companies alike could learn a few things from the ways rail companies, especially Union Pacific (UP), are implementing real-time, big data technology to overcome supply chain obstacles.
As of June 2016, the U.S. economic outlook is uncertain. There are hopeful signs: employers are still hiring new workers, more jobs and cheaper gas have led to a small bump in consumer spending, and home builders are in full swing. MarketWatch predicts 2.5% GDP growth in the second quarter of 2016.
Shippers are enthusiastic about drone technology because the devices could greatly cut delivery times and costs. The drone revolution will disrupt an assortment of industries, from agriculture and filmmaking to transportation and healthcare. Logistics will have to adapt to changes as more retailers experiment with drones and the technology evolves to be cheap and efficient. The transportation industry will be transformed by drones, especially in terms of last-mile service.
Loading and unloading freight plays a crucial part in the overall transportation process. Inefficient dock procedures can lead to higher transportation costs, slower delivery times and customer dissatisfaction. It doesn’t matter the volume of freight you ship, efficiency at your facility is important.
Parcel freight shipping refers to small package shipments. Parcel shippers face hidden fees and complex processes, leaving them with limited visibility of overall freight spend.
The price of diesel fuel will play a heightened role in transportation rates in the next couple of years. Fuel costs are always an important indicator of over-the-road (OTR) shipping costs, but a perfect storm of events will make diesel prices more important than ever before.
Over the last 30 years, the American population has increased 35%. It’s expected that 70% of the world’s population will live in cities by 2050. These facts amplify the pressure to correct infrastructure in order to support the movement of goods and people, and minimize related environmental impacts.
The Commercial Vehicle Safety Alliance (CVSA) will conduct its 29th Annual International Roadcheck from June 7th – 9th. The Roadcheck is the largest of its kind, covering all of North America.
Driver Shortage Worsens for Truckload Fleets. For the year, turnover averaged 79% at smaller fleets and nearly 95% at larger fleets. The turnover rate shows that the driver market remains a serious challenge for truckload fleets. Among LTL operators, turnover was 11% for the fourth quarter and for the full year of 2015. (Haven’t felt the effects of the driver shortage? Click here to find out what’s going on with freight rates and driver’s pay.)
Transportation rates are near their lowest point and are expected to rise later this year. New forecasts predict rising contract and spot market rates caused by numerous economic and regulatory factors – which will create tough conditions for shippers to negotiate rates. Shippers who don’t lock down rates now could miss out on a great opportunity.
The US transportation system moves more than 54 million tons of goods worth nearly $48 billion each day. Freight tonnage is expected to increase by 45% by 2050. In the US, nearly 70% of all freight tonnage is moved by trucks.
Shippers are always looking for opportunities to easily reduce transportation spends. One of the best ways to drive logistics-related savings is by reviewing processes and using technology. Shippers who review supply chain processes and transportation performance, while taking advantage of historical and real-time data, will eliminate costs without an effect on efficiency. It’s important to define your logistics goals for a successful freight assessment.
Transportation is vital to CPG operations. In fact, in a recent study, 83% of supply chain leaders in the CPG industry say transportation is their top concern. The CPG supply chain has become more complex and consumer demands are driving the need for transportation efficiency.
The trucking industry is adjusting as fuel prices fluctuate, the driver shortage continues, and new regulations are authorized.
Efficiency in the international cargo transportation network is a critical factor for the health of the global economy. It’s no secret that U.S. ports lack in efficiency, capacity, and technology compared to Asian and European ports, especially since the arrival of megaships.
For decades, U.S. infrastructure has been supported by last-second, short-term funding that’s been far from adequate. The recent implementation of the Fixing America’s Surface Transportation (FAST) Act was a much-needed boost in funding, but shocking new statistics from the DOT have brought into question whether it will be enough to stabilize our crumbling infrastructure.
Logistics technology is increasingly valuable. Warehouses, trailers, and operators use technology to improve productivity, efficiency, and service.
Supply chain costs are controlled by management and strategy. You can keep costs down by managing every step in the supply chain process. To find reductions in supply chain costs, supply chain strategies have to align with customer expectations and business goals.
2014 Traffic Costs Industry $49.6 Billion. US highway traffic congestion added billions of dollars in operational costs for the trucking industry. More than a dozen states experienced congestion costs of more than $1 billion. 89% of the congestion happened on 12% of roads. The ATRI’s analysis showed that trucks were delayed more than 728 million hours.
Cost_TMS_Report.pngAre you overpaying for inbound shipments? Should you switch from LTL to truckload shipments? Are your supply chain and dock loading processes proficient?
Disruptions are Difficult to Manage Businesses are woefully unprepared for disasters and disruptions in their supply chain. In fact, two-thirds of employees say their businesses have not reassessed safety and crisis plans since the last time they faced a natural disaster.
The loading dock is the access point for shipping and receiving. Well-designed loading dock procedures minimize delays, reduce damage to cargo and optimize productivity.
3pl for supply chain visibilityA common transportation challenge of B2B and B2C businesses is lack of supply chain visibility. Without visibility, deliveries are slower, so inventory management suffers and it’s more difficult to manage risk. These challenges appear because of additional costs and unhappy customers. Also, companies can use 3PL for supply chain visibility.
Many businesses want to leverage big data in supply chain initiatives to drive efficiency, cost savings and unparalleled operational visibility. In order to do this, however, a business must have an enterprise-wide infrastructure for information gathering. Only 35% of organizations use a transportation management system (TMS), meaning most companies do not have much visibility into shipping processes, but more importantly, don’t have access to data that’s part of the end to end supply chain insight that’s necessary for big data initiatives.
You need to send your freight quickly but don’t want to pay for expedited freight – it’s a dilemma all shippers face. Many companies rely on expedited shipping, but, with some simple operational changes, you can contain transportation costs and meet service expectations at the same time.
A new report finds that the number of recorded cargo thefts and the average value of the freight attacks declined in 2015. But, regardless of this data, cargo theft is a real problem. Cargo’s value continues to increase, and thieves are sophisticated. Cargo theft is estimated to cost shippers and trucking companies at least $30 billion a year in the US, according to the FBI.
The Chinese economy drives demand for freight on the seas, and its economy’s existing weakness is weighing on the global shipping industry. Ocean shipping is necessary to the global economy, but shippers are experiencing somewhat of a crisis: low demand and surplus shipping vessels for hire. China’s slow economy is reducing demand for commodities like coal and iron ore, which affects dry bulk ocean transport.
Here’s an overview of 6 popular transportation and supply chain news stories from March: Research Brief: Inbound Freight Management. Inbound transportation consumes more than 40% of an average organization’s annual freight budget. New research indicates the biggest challenge managing inbound freight moves is controlling costs. More than half of shippers agree that to improve inbound freight, they need to acquire the best rate per shipment. Learn more by downloading the Research Brief.
The shortage of truck drivers in the U.S. has been a hot topic for some time. Most people in the industry have heard the statistics by now: we’re currently short 48,000 drivers, the shortage is expected to rise to 175,000 drivers by 2024 and carriers will need to hire 89,000 drivers a year over the next decade in order to keep up with demand.
Medium- and heavy-duty trucks move about 70% of America’s freight. These vehicles make up about 5% of traffic and contribute 20% ofgreen-sustainability.jpg greenhouse gas (GHG) emissions and oil consumption in the transportation sector. This makes trucking firms a prime target for green initiatives. In the past few years, the government has created regulations to reduce GHG emissions and support green shipping.Medium- and heavy-duty trucks move about 70% of America’s freight. These vehicles make up about 5% of traffic and contribute 20% ofgreen-sustainability.jpg greenhouse gas (GHG) emissions and oil consumption in the transportation sector. This makes trucking firms a prime target for green initiatives. In the past few years, the government has created regulations to reduce GHG emissions and support green shipping. High-Level Regulations In 2015, the EPA and the NHTSA released an emissions and fuel consumption reduction plan in response to President Obama’s Climate Action Plan. This plan consists of 2 phases. Phase 1 targets truck engines and emissions in model years 2014 to 2018. This part of the program has been a success, cutting carbon emissions and reducing petroleum use. Phase 2 takes effect beginning with the model year 2021 (2018 for trailers) until the model year 2027 trucks and expands the plan’s scope to include trailers and glider vehicles. Phase 2 is estimated to reduce GHG emissions by 1 billion metric tons, save 75 billion gallons of fuel and save vehicle owners $170 billion over the vehicle’s lifetime. Whether you believe these numbers to be optimistic or not, shippers need to pay attention to these regulations as they will have a profound impact on the transportation industry. Regulations that impact trucking companies will inevitably impact shippers’ transportation costs, operations, and strategy. Here are 5 reasons why shippers should pay attention to GHG trucking regulations: Fuel Costs Fuel comprises a major portion of operating costs for trucking companies. The EPA estimates the costs of Phase 2 vehicles, due to their improved fuel economy, will be recouped by vehicle-owners within two years. This means smaller, lower risk investments and big fuel savings for trucking companies. Improved fuel economy means reduced transportation spend for shippers. Carbon Taxes New, fuel-efficient vehicles will emit less GHGs than current vehicles, which will lead to further savings for carriers and for shippers. Carbon taxes are already being implemented in most major countries as well as in parts of the U.S. They are slowly gaining popularity for their effectiveness. Consequently, the entire fuel-intensive trucking industry will be taxed for carbon output in the near future. Presumably, phase 2 trucks will reduce emissions and help shippers avoid inflated transportation costs. Freight Flow Fuel-efficient vehicles and aerodynamic trailers stop less for fuel, which increases the speed of transport. Also, these vehicles are more reliable than existing equipment, which means fewer break-downs, service requirements and overall disruptions for carriers. Shippers will get their freight moving faster and more reliably. Otherwise, if new equipment investment proves to be a heavy burden for carriers, or if they’re hit unpredictably hard by carbon taxes – rail transport would become much more common because it is typically less expensive and more fuel efficient. Equipment Investments Phase 1 and Phase 2 significantly impact the timing of equipment investments for carriers. Whether they are financially ready to invest or not, they have to buy new trucks and trailers to meet government standards or face harsh consequences. The investment in Phase 2 vehicles could potentially provide great benefits. However, the investment itself could cause undue strain on profit margins for trucking companies. It’s impossible to tell what economic conditions will be like. So, carriers could feel the need to raise costs to keep profits steady, which would lead to higher costs for shippers. Consumer Approval Demanding consumers want their products fast, cheap and they want to receive them in a responsible way. Sustainability in the supply chain is important for consumer approval. As a shipper, you hold responsibility for being a high emitter of carbon and consumer of fuel. Approval from the end consumer can greatly affect the bottom line. The potential benefits of the EPA and NHTSA’s Phase 2 green shipping regulations are undeniable. However, the benefits won’t be immediate, and carriers will have to take a financial leap to meet the standards. Ultimately, the cost savings and environmental benefits should quickly outweigh the downsides of the regulations. But, either way, shippers will feel trucking regulations too. Finally, green shipping definitely has a future. Keep reading: Market Update: 2016 – 2017 Trucking Regulations May Aggravate Economic Trends.
The omni-channel environment consists of demanding, knowledgeable consumers who expect a seamless, customized shopping experience. They want to order from anywhere, at any time – these empowered shoppers have changed fulfillment and transportation in retail supply chains.
The sharp and sustained decline in the price of oil has had far-reaching consequences across the U.S. economy. There are numerous factors that have caused oil prices to drop. And now, with excess oil supply, the effects are all-encompassing, with positive and negative impacts on carriers and shippers.
All interstate commercial trucks must install and update electronic logging devices (ELDs) by November 30, 2017. An ELD allows truck drivers and commercial carriers to efficiently record and track their hours of service.
CPG shippers rely heavily on LTL transportation, which leads to several inefficiencies. CPG shippers rarely have the freight volume to utilize a full truckload, and often feel stuck using more expensive, slower LTL transportation. But, there are ways to make LTL shipping as efficient and cost-friendly as TL shipping.
reshoring Companies are strategically moving manufacturing facilities, examining labor costs and time to market, plus looking for accessibility to existing or developing markets and sources of innovation. Some companies are moving facilities offshore or nearshore, while many others are bringing production back to the US. According to a study from Boston Consulting, 54% of US manufacturers with more than $1 billion in revenue are considering reshoring some or all of their manufacturing.
Inbound freight management is multifaceted. A large manufacturer could have hundreds of suppliers, and a national retailer can expect business partners to deliver shipments to thousands of facilities.
Industrial distributors are beginning to see the potential of proper transportation management, how it can add much-needed value throughout their supply chain, and how it can address some of their toughest challenges. The challenges distributors face are unique, but the effects of these challenges are representative of the difficulties many are having in the broader industrial sector – restricted supply, plummeting demand, dropping revenues and out of control operating costs.
Transportation is coming to the forefront of shippers’ cost reduction, efficiency and operational strategies due to its oversized contribution to supply chain costs. Inbound transportation is particularly inefficient and costly, eating up 3.6% to 5.2% of a company’s total annual sales.
The Federal Motor Carrier Safety Administration’s (FMCSA) hours of service (HOS) rules have been controversial and complicated. A lot of talk has surrounded the HOS regulations, and whether they will become a rule again or not is up in the air. However, it appears the HOS rules have been dealt a decisive blow. Truck drivers and carriers said the rules were unnecessary and costly. FMCSA and safety advocates said the HOS rules were a step in the right direction for highway safety. Neither side has been able to factually prove their point yet. As a reminder, the 34-hour restart provision was the most controversial part of the 2013 HOS update. The 2 main components of this provision are: Two periods of 1:00 a.m. – 5:00 a.m. had to be included within the mandatory 34-hour restart period One restart per week
What is Partial Truckload Shipping? Partial truckload, or volume LTL, is a mode used by shippers looking for faster transit times, less handling and lower costs. Partial truckload shipments are used by shippers whose freight is less than a full truckload, but more than an LTL shipment. The exact amount of freight needed for a partial truckload shipment depends on the weight, linear feet and service requirements.
Rail transportation has historically been cheaper and slower than over-the-road (OTR) transportation. It’s a valuable service for raw materials, freight that is not time-sensitive or freight that is expensive to haul. As OTR costs rise, many shippers look for new opportunities to reduce overall transportation spend, and despite the current rise in rail costs, intermodal is a practical alternative.
Non-Manufacturing Grows for 72nd Straight Month. The Institute for Supply Management (ISM) reported that non-manufacturing activity continues to point towards growth. ISM uses the NMI index to measure non-manufacturing growth and found the economic activity in the non-manufacturing sector continued to grow especially in finance/insurance, real estate/rental, agriculture, health care and public administration.
What is resilience in supply chain management? Supply chains are diverse and complex, so are the potential risks that could disrupt them. A good supply chain management strategy invests in resilience. Resilience refers to the time it takes supply chains to predict and avoid risk, as well as respond and recover from costly disruptions. how to supply chain management strategy75% of companies experience at least one major supply chain disruption a year.
Only 23% of companies have a big data strategy, which isn’t surprising, considering there’s an estimated 2.5 quintillion bytes of data created each day. It’s impossible to analyze it all, but leveraging big data in transportation and logistics can enhance operations and elevate the bottom line.
Automated_Trucks.jpgTraffic and population growth create demand for new roads, but most regions don’t have space or money to build new infrastructure. Today’s concerns over infrastructure, traffic congestion, energy use, and safety are being addressed by new transportation-focused technology.
It’s a difficult economy for industrial distributors. Industrial demand is down – in Q4 of 2015, manufacturing orders were down 20% YoY. Amazon’s low prices and convenience make it difficult to compete. The drop in oil prices, cheap imports, and the strong U.S. dollar all affect manufacturing output, which leads to lower revenues for distributors.
Customer demand and connectivity are high, and retailers are struggling to keep up with the competitive omnichannel environment. Supply chains are shifting in order to accommodate the rapidly changing landscape for the way people buy and the way goods are moved.
Shippers are able to manage the challenge of transporting temperature-sensitive goods; from farm produce to fresh flowers, thanks to refrigerated shipping trailers. Refrigerated trailers can remove or pump heat or create a cool environment for products to be transported in. Refrigerated trailers are designed to maintain the pre-cooled cargo temperature. Maintaining the temperature in a refrigerated shipping trailer, or reefer, is necessary in order to not compromise the product. Failing to maintain the proper shipment temperature can result in serious consequences like wasted or damaged products and sunken costs.
Intermodal transportation prepares for a surge in freight volume due to the driver shortage, increased demand, heightened government regulations, environmental issues and the damaged highway infrastructure.
Less-than-truckload (LTL) transportation, inbound and outbound, can be a complex and expensive process for many companies. Moving LTL freight requires a different approach than moving truckload freight. Without the proper technology and manpower in place, it can be difficult to know where to start implementing cost-saving strategies, and if those strategies are effective.
Retailers and their suppliers face difficult challenges in today’s economy. Consumers are more demanding than ever, and mistakes are more damaging than ever. Transportation is a key component in providing superior service levels and satisfying customers, but retailers and suppliers are often unable to effectively collaborate on transportation.
Industrial manufacturers are being hit hard by the current economic conditions. Overall demand for manufacturing is down, profit margins are shrinking and manufacturers are looking for any way to reduce operating costs.
Here’s a recap of transportation news stories throughout the month: Intermodal Decline for First Time Since ’09. Intermodal freight declined in Q4 for the first time since 2009 on a year-over-year basis. In 2015, intermodal accounted for 48% of all rail shipments and increased about 2% for the full year.
Situation A North American producer of refractory bricks and mortars, with a network of over 30 plants and distribution centers throughout the U.S. and Canada, was concerned about their transportation strategy. The company was apprehensive about their total freight spend but didn’t know the best way to reduce costs.
SupplyChainDisruption.jpgSupply chain disruptions span from day-to-day risks like malfunctioning equipment to high-impact threats like natural disasters.
Big data has been a buzzword for some time, and for good reason. There are some pretty radical potential applications of big data, such as accurate demand forecasting or industry-wide real-time visibility. Oracle calls big data the “electricity of the twenty-first century – a new kind of power that transforms everything it touches in business, government and private life.” There are also many ways to use big data in freight transportation.
In a few years, 89% of companies will compete almost entirely on customer experience. “Options are no longer a privilege during the shopping experience,” says Christoph Stehmann, COO of Digital Commerce Solutions, Pitney Bowes. “Retailers must focus on offering diverse options in order to attract consumers throughout their shopping experiences.”
The driver shortage, government regulations, and rising operating costs are some of the biggest challenges facing the transportation industry. The number of drivers is quickly decreasing, and the remaining drivers are demanding a salary raise. Due to these challenges, higher shipping costs are anticipated.
A 2015 Logistics Management survey shows that only 35% of shippers are using transportation management systems as part of their overall supply chain management strategies. Companies that rely on spreadsheets and manual interactions with suppliers are spending a lot of time on functions that can be automated by a transportation management system. With a TMS, companies can be active in pursuing lower costs, faster lanes and productive solutions.
Choosing TMS, or a transportation management system for your company is a huge decision because there are a variety of providers and features. A TMS helps companies move freight efficiently, reliably and at lower rates. Implementing a TMS drives value by monitoring and evaluating processes, analytics and optimization. The technology routes drivers, schedules deliveries and reports business KPIs.
Last year turned out to be a great year for transportation. Rates stayed fairly even despite predictions that they would rise, trucking companies were able to make significant profits for the first time in years, and capacity was loose enough to meet demand.
Small and mid-sized businesses are no longer at a disadvantage to large corporations when it comes to moving freight. In the past, large businesses had more scale, budget and expertise. But, using the supply chain as a competitive tool, companies, no matter the size, can set the bar high by increasing accuracy, visibility and cost efficiency.
What’s the biggest transportation story of 2016? Transportation costs will rise and will continue to rise for the foreseeable future. 2016 can expect to be affected by 8 distinct transportation trends, and each either causes inflated rates or is a response to them.
The Global System for Mobile Communications Association predicts that there will be nearly 50 billion connected devices by 2025. This is almost ten times the predicted human population at that point. There’s no doubt that technology has forever changed business practices – and the supply chain is no exception.
What is reliability in supply chain management? Supply chain reliability refers to the degree to which a supply chain yields consistent performance. Increasing reliability, reducing inventory and preparing for demand are top priorities for supply chain professionals.
Here’s a recap of transportation news stories throughout the month: Werner Increases Driver Pay. Effective January 1, Werner Enterprises Inc. is increasing pay for almost 1500 drivers. The drivers hadn’t had a pay increase since August 2014. President and COO, Derek Leathers said, “Pay increases are one piece of our multi-faceted approach to attract and retain the best in the industry and make Werner the employee of choice.” Read more: Drivers Enjoy Pay Increases, Shippers Pick up the Tab
The transportation industry, specifically the trucking sector, is at a crossroads. Threatening conditions loom at a time when several technologies are positioned to disrupt traditional operational processes. It is up to carriers to plan ahead for the future.
The New Year is quickly approaching, which means new challenges and opportunities can be anticipated; specifically in the supply chain and logistics industry.
Companies implement supply chain management (SCM) strategies in order to meet customer expectations like fast delivery. Delivery time is the sum of fulfillment time and transport time. Companies are emphasizing the importance of fast fulfillment in order to reduce overall delivery time. Creating an SCM strategy includes aspects of logistics management and demand planning that work in tandem with a transportation strategy. It is a crucial step in reducing freight costs.
The over-the-road (OTR) trucking industry faces numerous regulations that are controversial within the industry. Due to the current state of the economy and the crucial turning point, it is at, these regulations have the potential to worsen the capacity crisis, increase transportation rates and harm carrier productivity at a time when carriers expect financial difficulty.
The biggest shopping weekend of the year is right around the corner, and retailers have been planning for the increase in sales for months. Most retailers have adopted to the omni-channel environment, merging numerous shopping channels for the convenience of the customer. Modern shoppers avoid the long lines and huge crowds associated with Black Friday to buy from online vendors who offer the same markdowns, plus free shipping and various return options. ShippingDisruption.jpg
There are an array of challenges when it comes to successfully applying an outsourced transportation management strategy. Companies want to make freight moves as efficient as possible, which means centralized systems, qualified carriers, managed schedules and visibility. Realizing opportunities for transportation efficiency starts with identifying challenges. Below, we examine different challenges from 3 companies and how PLS solutions created and maintain notable results.
Investing in a robust transportation management strategy can significantly improve your overall business by decreasing costs and satisfying customers.
Moving over dimensional machinery, hazardous products, and required equipment to natural gas processing plants and compressor stations on- or off-highway can present safety problems. Every shipment is a large risk for midstream oil companies because the penalty for an accident or non-compliance is enormous.
It’s easy to confuse the various services of third-party logistics companies. The confusion may be because of the many service offerings, or because companies don’t want to waste time worrying about transportation, or it may be due to a general unfamiliarity with the logistics industry. Either way, it’s important for shippers to understand the difference between transportation management systems (TMS) and managed transportation services (MTS).
PLS Logistics is partners with a consumer goods manufacturer which has multiple locations. The client sells products to major retailers such as Walmart, Ace Hardware and Lowe’s. The company’s annual freight spend is a few million dollars.
Operating costs are rising for LTL carriers due to a number of factors – the driver shortage, rising pay, and aging equipment. Spot market and contract rates have both risen to compensate for these extra costs, however, contract rates rose higher than spot market rates and remain higher. Knowing how to get and negotiate the lower LTL freight rates is important if you want to save costs.
Lean supply chains gained popularity in the manufacturing sector because substantial improvements can be made to eliminate waste and non-value added activity. Today, a lean supply chain refers to best-in-class supply chain execution; a process that produces what’s needed, when it’s needed, and where it’s needed with minimal waste in time or capital. In addition, lean strategies work for businesses who want to simplify and improve operational processes.
Implementing transportation management software (TMS) can be a long and difficult process for some companies. Shippers usually choose software that will provide them with the fastest ROI, but this may not be the best answer long-term. Most shippers overlook one crucial area of TMS implementation: carrier connectivity. Because of this, shippers are prone to make some TMS mistakes.
Here’s a look at news stories from the supply chain, logistics and transportation industries from November 2015: Bigger Trucks Shot Down. After a long battle, the call for increased truck size was shot down by the House. However, the motion only denies language about bigger trucks in the highway bill, they could still become a reality someday.
As the New Year approaches, the logistics industry can look forward to advances. New technology continues to develop, supply chains will be even more influenced by consumers, and shipping costs will increase. Logistics operations have changed dramatically in the last few years and 2016 will bring even more changes.
It has been another tough year for consumer packaged goods (CPG) shippers. In 2015, CPG shippers were hurt by the same trends that affected the industry last year, despite increased efforts to cut logistics costs and improve service. Data collected from 2014 sheds light on what affected CPG shippers in 2015. Here are 5 trends that continue to affect consumer packaged goods shippers:
Technology has made supply chains and transportation more competitive, more convenient and more profitable. Technology’s biggest gain for shippers is actionable data. Shippers who examine transportation data develop strong operative initiatives, identify inefficiencies and improve inventory management.
The holiday season is upon us, and retailers must be prepared to avoid seasonal challenges. One major obstacle facing retailers: the rising number of e-commerce returns.
This year has been less stressful for shippers compared to the strong customer demand and tight capacity of 2014. But, the situation is about to change. A recent market overview by the Journal of Commerce shows that both contract and spot market truck rates will increase.
A national, high-quality steel manufacturer was experiencing difficulty within its supply chain because of a limited scope and sole focus on outbound management. The company wanted to remain focused on their core competencies, but its transportation needs were taking up too much time and effort.
The process of outsourcing logistics management involves a lot of trust and a costly investment for both parties. Although 3PLs find new ways to provide value for clients, many shippers are not ready to initiate strategic and long-term relationships that require deeper implementation.
What should a shipper know about intermodal transportation before utilizing it? What are the challenges and peculiarities of this transport mode? In this quick guide, you will find basic intermodal information that may come in handy.
If you are lucky enough to avoid cargo theft issues in your transportation activities, you should still be prepared to face it. Cargo theft is one of the 5 main causes of freight claims, as research shows. According to FreightWatch International (FWI), the risk of cargo theft will increase this year, compared to 2014. Cargo theft prevention and recovery network, CargoNet, reported that almost 90 million dollars in cargo was stolen last year
Here are some of the most talked about transportation, supply chain and logistics topics from October 2015: Road Congestion. The Department of Transportation (DOT) released its annual National Freight Strategic Plan with some interesting results. Road congestion costs motor freight carriers $27 billion per year in lost time and extra fuel costs.
From a supply chain perspective, using oversized packaging is not beneficial. Many companies have utilized one-size-fits-all boxes for their LTL shipments without realizing how dimensional weight systems work and how the package affects shipping costs. Typical e-commerce packages consist of 40% air and filler, leaving LTL trailers extremely light. But this ignorance costs shippers a lot of money: in January 2015, FedEx and UPS shifted to dimensional weight pricing for all packages.
A recent study by Honeywell and YouGov indicates the substantial impact e-commerce demands have on warehouse design and technology adoption. The survey respondents included hundreds of logistics, DC and IT professionals across the US and Europe. The survey predicts that adoption of mobile and voice-recognition solutions will increase in the next five years. The technology provides distribution centers with order fulfillment accuracy and the ability to quickly satisfy customer service requests.
Visibility is a buzzword in the logistics environment; it represents the real-time status of supply chain processes. Nancy Marino, from Columbus Consulting, believes that today’s businesses need to go beyond visibility to full transparency. In her interview to SupplyChainBrain, she claims that consumers want to know where their order is at every point in the supply chain and that requires more than supply chain visibility. What does it mean for companies — to go from shipment visibility to true transparency and put its supply chain under analysis?
The American Trucking Association (ATA) recently released a freight transportation forecast, predicting growth through the year 2026. According to Forecast, overall freight tonnage will grow 25.5% from 2013 to 2025 and freight revenues will surge 72%.
New technologies and new demands made 2015 a year of change for 3PLs. Challenges like the driver shortage and demanding consumer expectations require shippers to provide superior service. 3PLs have adapted to the new normal so that shippers can overcome these challenges.
The holidays are upon us! This week’s major demand: Thanksgiving dinner; a tradition, celebrated by 250 million Americans, who all eat the same meal, each year, on the fourth Thursday of November. The tradition of Thanksgiving can only take place when supply chain demands are met and timely logistics take place.
New Juniper Research has shared interesting insight on the current and future state of e-commerce: global online retail sales are estimated to reach $1.7 trillion by the end of 2015, which is 17% higher than 2014’s total. Among the factors that propel e-commerce growth are public Wi-Fi deployment, 4G and LTE rollouts, and social media’s trend of “buy” buttons.
Shippers can’t rely solely on attracting drivers and carriers by paying higher rates during the capacity crunch. Carriers have the privilege to choose which shippers to work with, based on facilities, dependable schedules and flexible contracts. A shipper might assume they’ve proposed an attractive freight rate, but if the facility doesn’t provide restrooms and parking lots for the drivers, it might be more difficult to secure space for your shipments.
Because of low oil prices, fuel surcharges are relatively low, which helps ease the cost of transportation for shippers. Current carrier pricing is better than it has been in years, but this trend won’t last.
Carriers are selective about what freight they haul. They’re taking steps to ensure equipment and personnel are utilized to maximum potential. Due to a lack of drivers, capacity is shrinking and it’s harder for carriers to haul the large amounts of freight that they used to.
Fuel Price: Impact on Logistics The oil prices, mainly due to increased output from North American fracking, has dropped significantly in the past few months. Oil affects just about every industry in the US economy, especially freight transportation.
Here is a quick summary of some of the most talked about transportation, supply chain and logistics topics from September 2015:
Logistics management for oil and gas industry The mining, oil, and gas industries have the most complex supply chain challenges. Exploration tends to be in remote locations with no transportation infrastructure, and typically requires bulk equipment and extensive safety policy. Any shipping disruption results in a significant loss for an industrial company.
The supply chain is always moving and prone to disruptions, which can make consistent delivery difficult. You want customers to trust that you’ll meet their expectations, but disruptions are often out of a company’s control. Your customer won’t care what the problem is; they will only view delays as poor service.
New technological advancements, changes in regulations and shifting shipping trends have made the transportation industry an exciting, and often challenging, environment to work in. Truck drivers especially are noticing new trends in the industry – from same-day delivery expectations to automated vehicles and a proposal to lower the age minimum of drivers.
In July 2013, the Federal Motor Carrier Safety Administration (FMCSA) implemented some significant changes to the way drivers record their hours on duty. The 3 main changes included were:
Truck drivers are one of the most important, yet unappreciated professionals in the US. The job isn’t easy – it’s full of risks and challenges. Truck drivers deliver about 70% of all freight in the U.S. — they provide life’s essentials. Almost 80% of US communities depend solely on the trucking industry for the delivery of goods. Without drivers, there would be no food at the supermarket, no medicine in the hospitals, and no fuel at the gas station.
If your business is interested in increasing visibility, improving performance and reducing spend, then TMS technology is the tool you need. TMS software offers an assortment of benefits, including better management, simple monitoring, aggregated data, and stress-free integration. By improving freight management, scheduling, operations, and reporting, this technology provides superior customer service, flexibility and intelligence.
Environmentally-friendly business processes are good for the bottom line and the ecosystem. While most companies have stepped up to keep customers educated on their green initiatives, many have yet to expand those efforts throughout the supply chain. Using a 3PL for supply chain management can be very beneficial to companies.
Shippers everywhere have faced limited capacity because of the driver shortage and shrinking numbers of trucks in the industry. These shippers must discover effective ways to handle transportation with limited resources. A shipper can learn how to be carrier-friendly or spend time searching for the cheapest freight rates, but they can also take advantage of continuous moves. Combining backhaul freight isn’t a new transportation strategy, and it proves to be cost-effective and time-saving.
Many industries rely on a smooth supply chain performance, especially those operations located in remote locations like the oil and gas sector and mining industry. Shipping to and from remote locations is costly and challenging. This transportation demands strict control, planning, and analysis. Oil and gas industries also suffer from excess exploration costs and fluctuating freight transportation costs, which impacts the product price and puts pressure on logistics management. Here, we explore the biggest shipping challenges and identify the best supply chain practices for businesses in remote locations, specifically the oil and gas (O&G) industry.
Businesses today face a continuously changing supply chain environment. There is a perpetual factor of change, whether it’s supply chain disruptions or unpredictable customer demands, that must be managed quickly and effectively to stay competitive in the marketplace.
We’ve kept track of the many news stories and topics affecting transportation, supply chain and logistics this month. Here is quick summary of some of the trendiest topics out there:
The Commercial Driver Act (S.1672), introduced last month by Sen. Deb Fischer (R-NE) would let truck drivers under the age of 21 operate commercial motor vehicles across state lines. Now, 18- to 20-year old drivers are only allowed to drive intrastate. Participating states would have to enter the agreement and standardize the licensingrequirement for drivers who will travel between states.
Handling freight claims requires time and effort from a shipper. There are certain processes, rules, and regulations that should be followed to ensure freight claims are resolved. A third-party logistics (3PL) provider, like PLS Logistics, works on behalf of the shipper and processes a clients’ freight claim from beginning to end. A 3PL does not have liability for freight loss or damage; instead, it works as a liaison with trucking companies and provides communication through the claims process. Shippers benefit from the expertise of freight claims management when claims are properly filed and processed without any holdups.
Why are Logistics Costs Rising? According to the 26th Annual State of Logistics Report, the cost of logistics for U.S. businesses in 2014 rose 3.1 percent to just under $1.45 trillion. The total cost of logistics is equal to about 8.3 percent of the nation’s gross domestic product (GDP), a value that, by itself, is not alarming; however, all signs indicate that this number will rise significantly in the coming years.
Inbound transportation management is complex and requires a lot of attention. It often leaves shippers at a loss for proper strategy and tools. Inbound supply chain processes usually suffer because of a lack of control and poor visibility, compared to outbound transportation initiatives. According to an Aberdeen survey, 90% of shippers say they are not prepared to manage inbound freight. Deploying effective inbound management improves transportation efficiency, reduces cycle time and leads to cost reduction.
In logistics, time is critical. A company’s cycle time is a significant, yet complex process that runs from the time a vendor ships materials to you through the point when you ship the final product to the customer.
How do some businesses keep pace with customer demands, while others fail? What logistics challenges do businesses face with same day delivery? Here, we answer these questions and examine lessons learned from companies like GAP and Starbucks.
Two Major Obstacles for Consumer Packaged Goods (CPG) Shippers CPG shippers have been facing significant obstacles in transportation over the past few years. A recent study from the Boston Consulting Group and the Grocery Manufacturers Association shows that 80% of CPG shippers consider shipping their biggest business obstacle. What are the main obstacles in transportation for CPG shippers?
Google founder, Sergey Brin, believes self-driving vehicles will be legal for all US roads by 2017. Some, however, are more skeptical about the launch of automated vehicles. Long hours of testing and significant regulatory changes could take years. But, undeniably, automated vehicles will change the transportation industry in the foreseeable future.
Shipping procedures are a major consideration during a customer’s buying journey. To effectively manage delivery, companies must utilize track and trace features, available on a TMS. To provide consistent delivery performance at a low cost, a transportation management system can help you explore the best lanes and provide end-to-end visibility. Plus, a TMS can reduce transportation costs by 30%. Using the track and trace feature of a TMS is especially valuable because it offers real-time, tangible information to the customer and shipper.
Refrigerated shipping is a vital part of the logistics industry and can help companies like grocery stores ship goods in and out of their stores. If you are new to refrigerated shipping and aren’t very familiar with what it is, here are seven facts to help:
Do you still coordinate transportation operations manually? Shippers who operate this way don’t reach the best decisions and usually make costly administrative mistakes, sometimes without even knowing it. Automating transportation management provides numerous opportunities to save money and time while creating better service for customers.
We’ve been keeping track of the various news stories affecting the transportation, supply chain and logistics industries. Here is a quick look at some of the most talked about topics:
Over-the-road (OTR) freight carriers face pressure from shippers and customers who want impeccable service, and the government who wants advances on environmental performance. In March, President Obama made an executive order that mandates the U.S. government to cut carbon emissions by 40 percent over the next decade, setting an example for industries across the country.
What is less than truckload freight shipping? Less than truckload shipping is a transportation method where your freight doesn’t take the entire container space. Freight is combined into one trailer with multiple shipments. LTL shipment typically weighs between 151 and 20,000 pounds. When a freight shipment isn’t large enough to fit into a 48- or 53-foot trailer, a shipper’s best option is to use LTL.
Less than truckload (LTL) shipping doesn’t have to be complicated or expensive. In order to drive savings to your LTL transportation spend, it’s important to understand the factors that determine LTL pricing, including, minimum rates, freight classifications and accessorial fees. And, many carriers are increasing their LTL shipping rates because of fuel prices and tight capacity. Learn how you can avoid additional fees and ship your LTL freight effectively.
Cross border shipping requires knowledge, flexibility, and security. In North America, many companies have expanded or plan to expand their business operations throughout the continent. With cross border operations, there is an opportunity to reach new markets and increase profitability. According to the US Census, Canada is America’s largest trading partner and Mexico is America’s 3rd largest trading partner. cross border shipping
There are a variety of transportation management systems (TMS) software available, including premise, hosted and SaaS (Software as a Service) models. The SaaS model has become an industry preference.
Intermodal freight transportation is a combination of two or more different shipping modes like a truck, rail, ship, or aircraft to move freight to the final destination. Also, in intermodal logistics and transportation, each carrier is responsible for a particular mode.
In early June, the National Highway Traffic Safety Administration (NHTSA) issued a rule requiring new heavy duty trucks to be equipped with electronic stability control (ESC) systems. In 2017, the rule will affect all trucks and buses exceeding 26,000 pounds in total weight. Electronic stability control systems are widely used in passenger vehicles and light trucks, and many heavy vehicle trucks have voluntarily chosen to use ESCs.
TransportatioNews This month, there’s been many new developments and news stories affecting the transportation, logistics and supply chain industries. Here is a quick guide to 6 of the most talked about stories, check them out:
54_facebook_uploaded_image Whatever your plans are for the 4th of July, you’ll inevitably run into some sort of fireworks display. Whether it’s a professional show or relatives shooting off some bottle rockets in the backyard, it’s important to remember that fireworks are hazardous materials. The following infographic explains why fireworks are considered hazardous materials and how to stay safe during Fourth of July celebrations.
WhatsAheadEarlier this year, we predicted what opportunities and trends would be most popular within the supply chain and transportation industry. Supply chains, no matter the industry or company size, must keep up with the latest developments and news affecting transportation, logistics and business partners. As technology springs forward, 3PLs and shippers find more collaboration – working toward innovative solutions for time and cost savings.
non-asset based 3PLThere are several benefits to your business when outsourcing the supply chain. As it will reduce costs, improve service and allow the shipper to focus on core competency. Third-party logistics firms give you a chance to provide value through solutions, service, and expansion. There are two categories of 3PLs: asset-based and non-asset based 3PL.
What is CSA? There are more than 500 million trucks and bus carriers in the US and the Federal Motor Carrier Safety Administration (FMCSA) does its best to execute safety regulations for all of them. In 2010, the FMCSA launched the Compliance, Safety, and Accountability (CSA) initiative to improve large truck and bus safety. The measure was intended to reduce crashes and injuries and better report safety problems.
Drivers and Carriers - Whether you’re a business owner, a freight forwarder or a 3PL company, your performance relies on the productivity and efficiency of trucking companies. Even if your own business processes and activities are perfectly adept, the supply chain still depends on how quickly and carefully trucks deliver freight from point A to point B.
omnichannel fulfillmentWhat is omnichannel fulfillment? The omnichannel fulfillment model developed because of the growing number of consumers who demand better shopping experiences, whenever, where ever, they want. According to a recent Pulse study, 44% of customers want the ability to buy online and pick-up at the store. 62% of customers want the ability to purchase online and make returns in-store.
Shippers often confuse the terms “logistics management” and “supply chain management”. Each word is used to describe very similar functions and operations in the transportation industry. However, there is a difference between these terms.
Carrier There is an undeniable tightness in the trucking industry’s driver market. Trucking employed more than 7 million people in 2014, 3.4 million of those were drivers. But still, carriers feel the real impact of the unwavering driver shortage. Why is America having a difficult time retaining and attracting truck drivers? Mostly because of strict regulations, relatively low pay and a universal lack of interest in the career. Carriers are working hard to end the problem, changing how they recruit and retain drivers – increasing pay and hiring new driver’s right out of training programs.
Troublesome congestion at West Coast ports in February is still affecting the US economy and expected to cost as much as 7 billion dollars to the retail industry this year. Although this was a major supply chain disruption, it’s not the only costly shipping disruption that has occurred recently.
transportationHere are 5 of the most talked about logistics and transportation news stories from this month, check them out:
SafeTruckingTrucking companies have an undeniable commitment to provide safety and security for their fleet, drivers, and others on the road. Luckily, today’s technology is designed to prevent accidents from happening and to protect all people in case of an accident.
DriversCarriersWith the US economy expanding at an accelerated pace, many organizations are having trouble filling logistics jobs, especially truck driver positions. The issue isn’t new or sudden, but the pressure for trucking companies is rising as an employment peak in trucking is near, according to U.S. Bureau of Labor Statistics. Carriers are short by at least 30,000 drivers and suffer from a low retention rate.
Are you ready to develop a less than truckload (LTL) transportation plan? LTL shipping doesn’t have to be time-consuming or stressful. Whether you plan to ship LTL freight regularly, or if you’ll only ship a few packages a month, you will benefit from these 5 tips which explain how to avoid unnecessary costs, determine price and optimize efficiency.
The Atlantic hurricane season runs from June 1st to November 30th. Because these super-storms wreak havoc to the nation’s infrastructure, shippers should prepare for weather-related disruptions. Past hurricanes have opened shipper’s eyes, as disruptions in delivery, tracking and safety have caused significant problems.
Transportation Secretary, Andrew Foxx, told a congressional subcommittee that a proposed rule requiring heavy vehicle speed limiters will be issued no later than this fall. Supporters of the speed limiter rule believe highways will be safer and fuel consumption will be reduced.
shipping mistakesUnanticipated costs and unexpected delays are can negatively impact your supply chain, but there are ways to increase its efficiency. Some of the most common shipping mistakes include not knowing which transport mode to choose, being unclear about government rules, and not understanding different price structures. Avoid these common shipping errors to get your freight to its final destination on time, with fewer expenses.
ShortTerm On April 30th, it was reported that yet another short-term fix to infrastructure will be implemented sometime in May. Rep. Paul Ryan (R-Wis.) is creating a short-term bill worth between $8 – 10 billion, which is expected to last through the end of the year. Ryan is working with Rep. Sandy Levin (D-Mich.), Sen. Ron Wyden (D-Ore.) and Sen. Orrin Hatch (R-Utah).
ltl-rates-on-the-rise The less-than-truckload (LTL) sector has seen little growth or profit in the last decade. But now, LTL carriers anticipate one of its most profitable years since 2004.
Supply chain disruptions are unpredictable, and often inescapable, but they don’t have to destroy business operations. When supply chain disruptions occur, delays are unknown and there is a loss in time, money and labor.
The Federal Motor Carrier Safety Administration (FMCSA) released a smartphone app that provides safety data on interstate commercial vehicles. The Compliance, Safety, Accountability program app requires no login and reveals carrier safety performance and ratings to the public. This information is available on FMCSA’s website as well.
Omni_Channel__GraphicRetailers are struggling to keep pace in the highly competitive omnichannel environment. Consumer desires for immediate delivery and personalized service are an ongoing challenge. Many shippers aren’t able to support a productive, efficient supply chain.
benefits of inbound freight managementWhat is inbound freight management? Inbound freight management refers to monitoring and managing inbound shipments that come from suppliers or vendors. Transportation accounts for almost 50% of the average company’s logistics costs. Shippers can gain more control of these costs when they choose to make inbound freight management a supply chain priority. With inbound vendor management, attention is focused on shipment integrity, customer satisfaction and tracking information. Choosing to manage inbound freight gives shippers a chance to improve reliability, gain visibility and reduce costs.
The top transportation news from April.
The truckload driver shortage is becoming a serious financial concern for shippers. To attract new drivers, many carriers are improving training, retention and compensation packages. However, they continue to struggle to find the number of drivers necessary to keep up with demand. The driver shortage has a significant impact on the tight over the road capacity that is causing issues for shippers who now have to pay a higher rate to move their freight.
What is the meaning and value of reverse logistics within the supply chain? Many people think of reverse logistics as handling customer returns and defective goods; that it is limited to customer service and recycling. However, only 25% of all goods in reverse logistics consist of defective items. It includes managing recalled products, overstocks, fixtures, recyclables, capital assets, end-of-life goods, and assets to be disposed.
Fuel prices are constantly fluctuating. Do your fuel surcharges reflect this? Don’t know? This infographic will explain everything you need to know about fuel surcharges and how a 3PL can make sure you’re paying a fair price.
PeopleEscalatorConsumers have access to more information than ever before, and with various options for online ordering, paying and shipping, customer loyalty is low. Today’s omni-channel era means retailers and shippers must pay close attention to customers’ high expectations. A customer’s experience with a company is greatly impacted by shipping options. Consumers are known to revisit an e-commerce site if the supplier offers low prices, free shipping and/or fast shipping. Today, 86% of buyers will pay more for better customer service, according to a CEI Survey, but only 1% think retailers meet their expectations. So, what are these customer expectations?
You’ve heard about the fascinating achievements in 3D printing. Printers can now create customized apparel, personalized make-up and can even be used in medicine. As 3D printing becomes more integrated into manufacturing, it is easy to conclude that logistics should be influenced as well. Has the adjustment process already started?
Freight rates and carrier discounts are not the only factors that shape freight costs – there are more components shippers should consider. Many companies are looking for ways to eliminate unnecessary freight spend and save costs on logistics in a proper way.
The economy depends on freight transportation. In the US alone, a massive amount of freight is moved every year and an enormous effort is put forth to coordinate it all. Take a moment to reflect on some of the amazing facts and statistics surrounding the transportation industry.
3PLs and shippers work closely to form collaborative relationships, so they produce better customer experiences for the end-consumer. The relationship between shippers, suppliers, carriers and logistics experts is important, however, it’s complex. In a 3PL-shipper relationship, 3PLs deliver shippers a competitive advantage through integrated 3PL technology.
Big data is the practice of collecting electronic information from various sources and applying analytics to identify patterns, trends, and intelligence. Leveraging big data can be extremely valuable in transportation and logistics planning. Many shippers become overwhelmed by big data and demand for solutions that simplify the process of utilizing data to make supply chain decisions is increasing. When leveraged and managed properly, big data can be used to make smarter transportation decisions and optimize supply chains.
We’ve rounded up the top 5 news stories from March that are impacting the transportation industry. logistics-industry-professional Delays from the Snowy Winter: More than 70% of the nation’s roads are in snowy regions. Winter weather is finally fading, but the snow storms caused major shipping delays.
The SmartWay Transport Partnership, launched in 2004, is an innovative green transportation initiative between the U.S. Environmental Protection Agency (EPA) and the freight industry, designed to reduce greenhouse gases, non-renewable resource consumption, and transportation costs.
AutomationSeasonality affects almost all businesses. Supply production is rarely affected by seasonal factors, however, demand for products is subject to the season’s fluctuation. Seasonality can be explained by philosophies, customs, weather and/or holidays.
What is expedited shipping? Expedited shipping is the process of transferring freight faster than normal. Whether your freight is perishable or you’re on a time schedule to meet customer expectations, expedited service has the ability to guarantee delivery requirements.
Implementing an operative supply chain management strategy is essential to efficiently transfer products throughout your supply chain.
What is refrigerated freight transportation? Refrigerated freight is a transportation method used when the cargo being shipped must be controlled by a defined temperature. Produce is one of the many products transported by a refrigerated trailer. Refrigerated, or reefer, transport should account for a trailer’s operating characteristics, the load temperature and the transit temperature of the product.
Customized reporting capabilities provide supply chain visibility and enable process improvements. If you are working with a 3PL, access to clear, concise, timely and customizable reports should be an essential element of your partnership. Shippers should have the ability to filter, sort and manage their data in real time to make decisions and improvements.
The cost of oil has been falling and so have gas prices; reaching lows that haven’t been seen in over a decade. Even though diesel fuel hasn’t seen price drops like regular gasoline, carriers are still seeing a difference in their bottom line. However, they are not profiting as you would expect.
Winter weather is a real concern for transportation in 2015. The devastation caused by snowstorms impacts everyone, including truckers, state officials, shippers, and others.
Visibility into the supply chain is a fundamental part of implementing improvements. Identifying inefficiencies is the first step to increase delivery speed, accuracy and reducing transportation costs. For many supply chains, growing global operations, big data and demanding customer expectations all strain logistics functions, making visibility more important than ever. Transportation costs continue to rise for most companies. Visibility presents a great opportunity for significant cost savings. Full visibility into the supply chain improves all business operations and can provide a competitive advantage.
Smartphones and tablets are embedded in every aspect of our life; think about how personal devices can change – or, have already changed working environments and communication processes in companies. The hype over the BYOD (bring your own device) trend started years ago, yet it yields questions and predictions. Gartner forecasts that by 2017, half of the employers will require workers to supply their own device at work. Whether it’s good or bad for business, it’s happening – and logistics companies better be prepared for the changes.
Love is in the air! Or, in the case of many suppliers and retailers, on a freight truck. That’s right, all of the thoughtful gifts that you receive this Valentine’s Day made their way to your home through a complex, well-planned supply chain. With seasonal demand, suppliers, carriers and retailers must work together to optimize logistics to make your Valentine’s Day special.
According to Capgemini’s 2014 study, 72% of shippers are increasing their outsourced logistic services this year and 78% of third-party logistics providers (3PLs) have declared an increase in outsourcing among their shippers. What are the main advantages of outsourcing and why does this trend continue to grow among all types and sizes of shippers? Let’s take a look at the central reasons for hiring a 3PL and the various levels of outsourcing that a shipper should consider.
Since we’ve discussed shipping class rates in the about density-based pricing post, it is worth mentioning weight breaks and classification, an important part of freight pricing. When it comes to finding the best rate for a company’s shipping needs, freight class and weight are two pricing factors that shippers should evaluate before making the final decision.
New office to bring 150 new jobs to St. Louis CRANBERRY TOWNSHIP, PA – February 5, 2015 PLS Logistics Services (“PLS”), a leading provider of third-party logistics solutions and freight brokerage services, today announced that it has opened a new branch office in St. Louis. This is PLS’ seventh office nationwide, and was opened to meet the needs of PLS’ expanding regional client base.
On January 3rd, Senator Bernie Sanders (I – Vt.) announced he’s creating a bill that allows $1 trillion in spending over several years for infrastructure funding. This is much needed relief for the transportation industry as the Highway Trust Fund has been running on short-term fixes since 2008.
In order to understand density priced shipping, start by understanding traditional freight rate classifications. These rates define how much a particular kind of load will cost, as defined by National Motor Freight Traffic Association (NMFTA) and made available through the National Motor Freight Classification (NMFC). Products are classified by specific parameters:
On Sunday, February 2, the Kansas City Chiefs and the San Francisco 49ers will face off to determine who will be crowned Super Bowl LIV champion. In 2019, 98.2 million viewers tuned in to watch the Super Bowl and its famous line up of commercials. So, how does one of the biggest sporting events in the world meet the demands of fans, players, attendees and others?
Demand for dry vans fluctuates depending on the time of year and regional location, causing rate changes on the spot market. National rate increases for dry vans typically occur at three different times throughout the year and are largely driven by how the produce industry was positively or negatively affected by the weather. These increases typically occur from March to April, June to July, and September to October.
Have you realized that shipping costs have increased 20 to 30 percent? That’s because as of January 2015, carriers like FedEx and UPS Ground began using the dimensional weight pricing method, which affects over 70% of all shipments.
As one can assume, the strength of the economy and the current market conditions are closely related. In order to get a feel of the current state of the economy, one would take a look at several different macroeconomic factors. Some of these factors include interest rate announcements, Gross Domestic Product, Consumer Price Index, housing starts, jobless claims, and government fiscal and monetary policy. With an understanding of each indicator, you would be able to get an idea of the strength of the economy.
There are more than 700,000 active carriers in the US. Most of them are small; 90.2% operate 6 or fewer trucks and 97.2% operate less than 20 trucks. All these carriers can be classified as local, regional and national.
Tracking inbound transportation is often under-prioritized in a company’s supply chain management because it is difficult given the operational and economic challenges. No matter a company’s size, it should devise a strategy to measure inbound shipments.
While most people dread their commute to work during inclement winter weather and try to avoid the roads if possible, truck drivers have no choice but to drive through these winter storms. Obviously, safety is critical for these drivers and we’ve developed a checklist of 10 tips that all truck drivers should adhere to when preparing to venture out in the winter wonderland.
A national fuel surcharge is an extra fee that trucking companies (or third parties) charge to cover the fluctuating cost of fuel. It is calculated as a percentage of the base rate and is usually added to a shipper’s freight bill to cover the cost of operations.
The trucking capacity crunch is a major concern for shippers in need of transportation services. With less trucks, less drivers, an aging workforce and HOS rule changes, carriers’ capacity is limited. Shippers are demanding more capacity than carriers can supply.
Transportation is one of the most important elements in determining an organization’s overall logistics costs. Companies are constantly trying to figure out the most efficient and cost-effective way to get their products from Point A to Point B. What factors and trends determine the best way to deliver your products? What factors influence freight demands?
Carriers apply a General Rate Increase (GRI) to all or specific trade routes in order to balance the costs of their business. The rate increase is deemed necessary by carriers in order to provide paramount services, compensate labor, improve equipment and advance operations. A handful of carriers have recently raised their rates and it is expected that more carriers will announce a GRI soon.
How Does My Tree Get to Me?
Even if you’re not familiar with the term omnichannel, I’m sure you have enjoyed the perks of it. Just remember the last time you saw a product online, scanned its barcode for online price-comparison and then ordered it from a website for a substantial discount. Or when you have chosen an item online and then stopped at a nearby store to buy it so that you can ask questions and receive support. This is all part of the omnichannel game that most retailers are playing.
Third Party Logistics (3PL) companies started to spring up in the 1980s as a viable method of outsourcing logistics needs. 3PLs make it easy for large companies to get rid of various functions and assets. This is made in order to focus more heavily on their core business objectives. A 3PL can save your company millions of dollars and time, allowing you to dedicate more resources to your essential initiatives.
Holiday shopping is in full swing! Consumers spend $12.3 billion at brick-and-mortar stores on Thanksgiving Day and Black Friday, plus billions of dollars throughout the holiday season online and in stores. Manufacturers and retailers have to optimize planning strategies all year long for their supply chain in order to effectively meet holiday demand.
For the Thanksgiving holiday weekend, thousands of cars will be on the road as people throughout the US travel to be with friends and family. About 91% of Thanksgiving trips are made by car. What does that mean for carriers? Hours added to travel time.
PLS Logistics Services is actively recruiting experienced freight brokers for the Freight Broker Agent Program. Maximize your earnings and build your business with our program!
Stay busy moving freight, not doing paperwork. Carriers need to focus on hauling freight and less time with back-office busy work. Join the PLS carrier network program to ensure you have a streamlined back-office with consolidated billing. Every minute you spend searching for loads is wasted revenue. Our simple technology and high shipping demand will keep your fleet focused on generating revenue.
With the popularity of mobile devices, consumer behavior has changed dramatically. Consumers have moved past the committed early adopters and entered the fast-followers phase with technology being the driving force. Smartphones and tablets are powerful tools that are selling fast and easily taking over the PC market.
Truck driver pay has increased 17% over the last two years and will continue to climb. Truck drivers haven’t seen pay raises in years. They’re now demanding more money, and carriers must oblige.
The transportation industry faces a unique problem in today’s economy: hiring new drivers. Most current truck drivers are approaching retirement, and few people are willing or able to replace them. This means that freight carriers must start getting creative and investing heavily in the ways they recruit new drivers. There are many ways to recruit, but there’s a common theme in all of them. Jeff Stoicheff, Senior Vice President of Human Resources at Penske Logistics, sums it up well when he says, “It’s about respect; good pay and benefits; safe, reliable equipment; and home time.” A freight carrier must appeal to these driver needs to be a competitive recruiter.
According to the DOT, logistics is defined as “the cost-effective process of planning, implementing and controlling the efficient movement and storage of goods from the point of origin to the end-user.” They define transport as “the movement of products and people from one point to another via air, sea, road, and rail.” Transportation and logistics have become an integral part of how businesses operateand run their supply chain today. Here are five facts about the logistics and transportation industry:
Less-than-truckload rates are on the rise. LTL carriers, Conway Freight, UPS and ABF Freight Systems, have recently announced general rate increases that will hit customers in the coming months. This is the second time this year that general rate increases were announced (Read our post about the April GRIs, LTL Freight Carriers announce General Rates Increases).
Creating a decent supply chain management strategy can be challenging. On the opposite side, delegating such a huge part of your business to a third-party company essentially needs credibility and confidence in your logistics partner.
Today’s ground transportation environment has seen the impact of not only a lackluster economy but also the effects of other factors leading to the increased cost of Less-Than-Truckload common carrier transportation services. As a result, carriers are focused on margin retention and improvement and sacrificing market share by culling low margin business. We should expect to see increases in prices within the next few months as trucking companies ensure their prices are compensatory to the services they provide.
We are in a market where LTL carriers continue to aggressively seek methods to improve their yield, reduce their operating ratios, and filter out poor performing business in their portfolios. As a result, shippers need to consistently differentiate themselves from the pack and improve their attractiveness to carriers.
As we all know the economy has not been the greatest in recent years and everyone has seen the effects of the recession. Therefore, companies that are willing to outsource their shipping needs to a 3PL can save a substantial amount of money on their freight cost.
A third party logistics (3PL) company is defined as an external supplier that performs all or part of a company’s supply chain management. Many 3PL’s offer a wide range of services that include inbound freight, outbound freight, freight consolidation, warehousing, distribution, and order fulfillment. Over the past few years, there has been a huge growth in 3PLs and this has been attributed to the need for companies to become leaner, reduce assets (including headcount) and focus on core business processes.
Would you be willing to pay 5% higher prices for products ordered online if they are shipped sustainably? A recent survey titled “Need for Green or Need for Speed” Survey conducted by the consulting firm West Monroe Partners revealed that 54% of e-commerce consumers are willing to pay the extra money.
One of the most concerning factors behind the current and future driver shortage is the lack of young drivers. The Bureau of Labor Statistics says the average age of a truck driver today is 55 or older. The Baby Boomer generation is growing increasingly close to retirement and there are not enough drivers, especially young ones, to replace them.
Capacity issues are straining relationships between shippers and carriers. A rise in trucking demand, a shortage of drivers, government regulations, and shipping inefficiencies all play a role in the current shortage of capacity.
August 2014 was a record setting month in the spot freight market with a 32% increase over the same month last year. Freight availability also remained constant.
As Truck Driver Appreciation Week rolls around, it’s time to look closer at what this country’s truck drivers actually do for us. Many times when we are at the supermarket, or ordering something from Amazon, we don’t appreciate how these goods find their way to us. All of the products sold in stores today have been moved across the country, and we usually don’t think of the long and complex path they took to get there.
Truckers are an integral piece of the U.S. Economy. In honor of Truck Driver Appreciation Week, check out this video from Trucking Moves America Forward.
On March 12th, 2014, the Federal Motor Carrier Safety Administration FMCSA announced a change to the 2010 mandate for Electronic On-Board Recorders (EOBRs). The old rule required certain fleets to use EOBRs for hours-of-service compliance. The new rule requires more technologically advanced Electronic Logging Devices (ELDs) to be used in most trucks by as early as 2016. The latest mandate consists of four parts: Mandating who uses ELDs, protections against driver harassment, hardware specifications, and rules pertaining supporting documents.
We take a break from our regular posting to honor those who lost their lives in the September 11, 2001 terrorist attacks. Each year on this day, American flags are flown at half-staff to honor and commemorate those lives lost. Fellow Americans are asked to observe a moment of silence at 8:46 a.m. EST, the time the first plane crashed into the North Tower of the World Trade Center in New York City.
The Federal Motor Carrier Safety Administration (FMCSA) has recently re-evaluated the minimum levels of financial responsibility for motor carriers, and a new minimum will likely be announced soon. This task was delegated to them by the Department of Transportation (DOT) Secretary, who was assigned the task by Congress.
The Department of Transportation (DOT) will soon mandate the use of speed limiters, also known as speed governors or Electronic Control Modules (ECM), on large trucks weighing over 26,000 pounds. The rule targets trucks that typically travel on roads with a speed limit of 55 mph or higher. No speed limit has yet been determined, but will likely be somewhere between 65 – 70 mph. Due to the estimated fuel cost savings for large carriers, many believe this rule will be passed sooner rather than later.
Preventing driver harassment is a focal point with the latest Electronic Logging Device (ELD) mandate. The old rule, made in 2010, did not stop carriers from harassing drivers into breaking hours of service (HOS) rules.
The Department of Transportation (DOT) released details of new proposed rules for the transport of flammable material by rail – particularly crude oil and ethanol. The proposed rules cover seven different areas associated with crude-by-rail transport. There is less than one month left to comment on the proposed rules. If you would like to comment, please visit this link. You can also read more information about the proposed rules and how they may benefit shippers by reading an article on Logistics ViewPoints.
Would you be willing to pay 5% more for products ordered online if they are shipped sustainably? A recent survey titled “Need for Green or Need for Speed Survey” conducted by the consulting firm West Monroe Partners revealed that 54% of eCommerce consumers are willing to pay the extra money.
It’s no secret that the U.S. infrastructure is in desperate need of repairs. In fact, there is $2 trillion worth of deferred maintenance in this country in roads, bridges, sewer systems, and water mains. President Obama recently announced the Build America Investment Initiative that will address many of the issues facing America’s infrastructure. Not only will repairs make the roads and bridges safer and more reliable for commuters and commerce, but it will support millions of jobs as well as create new ones.
With the variety of materials being shipped throughout the country every day, you’re bound to run into a problem or two along the way. Knowing how to solve these problems ensures a more efficient shipping process, and more importantly, a healthier bottom line. Here are some tips for freight shipping – commonly asked questions and problems that many shippers and 3PL providers experience on a daily basis.
The Department of Transportation (DOT) is proposing a rule to eliminate Driver Vehicle Inspection Reports (DVIR) when a driver does not find any truck defects during a pre- or post-trip inspection (no-defect DVIRs). This comes after a similar rule was put in place in 2012 for Intermodal carriers. The new rule does not include passenger-carrying Commercial Motor Vehicles and does not significantly change any other requirements of inspection, repair, and maintenance rules. Here is a brief executive summary is given by the DOT:
The shortage of truck drivers is getting worse by the day. There are goods not being shipped, trucks left on lots, and qualified drivers leaving the industry for numerous reasons. One report from the ATA states there will need to be 1 million new drivers by 2024 to meet freight demand. The driver shortage is approaching dangerous levels.
A Shippers Guide to Understanding LTL Services of a 3PL provider from bmccurley
Transportation plays a critical role in the economics of oil and gas development, and vice versa. The need to ship Shale Gas creates a high demand for motor freight.
Conflicts in the Middle East, as well as general shortages of petroleum and natural gas, are all factors in the rising cost of gasoline and diesel fuel over the past several years.
Understanding the standard pallet and truck dimensions, namely trucks and vans, can make it easier when a customer has to select a transportation option to best fit their needs.
On June 5th, the United States Senate Appropriations Committee voted 21-9 to suspend the current 34-hour restart provision of the hours of service rule to allow the Federal Motor Carrier Safety Administration (FMCSA) time to study its impact.
FedEx and UPS have switched to a dimensional pricing program for ground shipments. This new system specifically applies to packages under 3 cubic feet, as both carriers already use dimensional pricing for packages bigger than 3 cubic feet.
Alibaba, a Chinese e-commerce powerhouse who owns two online marketplaces that are larger than Amazon and eBay combined, has just launched a new U.S.-based online marketplace called ‘11 Main.’
Although they are closely connected, transportation and finance often hold opposing views when it comes to transportation costs. While the Finance department mainly focuses on ways to become more profitable, logistics managers are more interested in analyzing their department’s budgets and metrics.
Since the federal deregulation of the transportation industry in the late 1970’s, LTL transportation has morphed from a heavily unionized group of carriers operating in a largely non-competitive environment into a high tech, cost-effective and service-oriented transportation industry.
PLS Logistics attended the NASSTRAC 2014 Shippers Conference & Transportation Expo on April 13-16 in Orlando, Florida at the Rosen Shingle Creek Hotel. NASSTRAC, the National Shippers Strategic Transportation Council, provides education, advocacy, and provider relations opportunities. The conference was attended by numerous Fortune 500 companies, the government sector and all modes of transportation.
The recent turmoil in Iraq caused world oil prices to increase by about 4% last week. Iraq is the second biggest exporter of oil in the world, recently hitting a 30-year-high in production. World oil demand is increasing, oil production from Iraq is vulnerable to attack, and nobody has the reserves to pick up the slack. Oil price increases will drive the price of unleaded gasoline up 5 to 10 cents a gallon in the next couple of days. Read the full story here.
There are benefits for those using LNG, but there are also setbacks. LNG, or Liquefied Natural Gas, is a type of natural gas that the trucking industry has slowly resorted to using for fuel. While many are hopping on the LNG bandwagon, others are taking a more cautious approach. The future of LNG is unclear; however, it seems to only be a short-term solution for those in the freight industry.
Omnichannel defines the way in which customers use several different methods to buy products (i.e. mobile devices, tablets, and computers). Retailers are heavily focused on creating a seamless consumer experience on any platform. It is not an easy task.
There’s been a lot of negative talk about the latest Safety Regulations in the motor freight industry: they’re too strict, too many, too much. But what nobody seems to be talking about is that they’re saving lives.
In April, less than truckload (LTL) freight carriers announced 4-6% general rate increases for non-contract shipments. General rate increases are typically announced anywhere from late May to early July. The April announcement came much earlier than usual. What does this mean to shippers and why did this occur? GRI, or general rate increase, is the average amount by which carriers’ tariff rates increase applied to base rates. It is extremely difficult for an individual shipper to calculate how this rate increase will impact their bottom line. The percentage increase will vary based on shipping region, weight breaks, zip codes and freight classes. Working with a logistics broker can help shippers understand the rate increase and even help keep their costs down.
Many companies today are working in an environment of fierce competition and razor-sharp profit margins, and trying to achieve LTL freight savings.
When it comes to moving less-than-truckload shipments from point A to point B, one of the first things to consider is its definition in the trucking industry. In the world of freight shipping, each product definition is its classification. It is important to know how to determine LTL freight class because it affects the final price of your shipment.
Over the years since federal deregulation in the late 1970s, LTL transportation has morphed from a heavily unionized group of carriers operating in a largely non- competitive environment into today’s high tech, cost-effective and service-oriented transportation industry. Today’s national, regional, and inter-modal providers must vie for their share of a 30 billion dollar market.
The two weeks of summer that everyone has been waiting for are finally here – The Olympic Games. Taking place in London, England this year, the Olympics is one of the most watched sporting events on the planet. With this much national attention, a copious amount of detail and planning must go into the preparation of the Games. This entails a huge logistical challenge in how to overcome the mass transportation of products, athletes, workers and attendees to the London Olympics. We have provided you with some Summer Olympics logistical
Suppliers, manufacturing plants, distribution centers, and customers all make up a supply chain network. When optimizing your supply chain network, customer demand must be satisfied while keeping logistics costs steady and under control. According to Optimum Profit Consulting, “Strategic Network Optimization calculates the most optimal (highest profit or lowest cost) way to source supplies, production, and distribution across the network.”
A streamlined supply chain will improve overall business operations and help your business outperform competitors. Improve your business's supply chain strategy by implementing some of these best practices.
An efficient warehouse management system (WMS) is an invaluable part of a company’s distribution strategy. As omnichannel fulfillment becomes increasingly more popular and complex, WMS systems are too. Companies need to be able to plan and optimize orders quickly and accurately.
Transportation requirements in the oil & gas industry can be unique and complex, such as stringing services for line pipe delivery. Higher safety standards and the need for specialized equipment limit the base of qualified carriers, making it harder for suppliers to quickly and economically manage freight to project sites.

Resources

Subscribe for Updates

Subscribe to our blog to get industry insights and stay on top of the latest news!