Tag Archives: logistics trends

Trending Transportation Updates: August 2019

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!

China & U.S. trade war: President Trump raises tariffs

On August 23, President Trump responded to Beijing’s retaliation with raising tariffs for China. Now, taxes on $250 billion of imports will rise from 25 percent to 30 percent starting October 1. Also, effective September 1, the duties for $300 billion in Chinese imports will increase to 15 percent instead of 10 percent.  To read more about the tariffs, click here.

Truckers respond to the new HOS regulations

After the latest tweak in the hours-of-service rules, truckers are suggesting changes for more flexibility. Currently, truck drivers have a ten-hour period for rest with a suggested eight hours of rest and two hours of non-driving time. Also, they have a mandatory 30-minute break. In particular, many drivers wanted to split the 30-minute break into two smaller intervals, and be more flexible with the way they use their time off. To read more, click here.

Truck tonnage to increase by 25.6 percent by 2030

The new report by the American Trucking Association stated truck tonnage to increase by 25.6 percent over the next decade. Responsively, the revenue is expected to go 54 percent up and reach $1.6 trillion. Chris Spear, ATA President, spoke up on the importance of adjusting to market growth: “Freight Forecast clearly lays out why meeting challenges like infrastructure and workforce development are so critical to our industry’s success”. To read more, click here.

Truck wait times at border are increasing

Truck wait times at the United States – Mexico border are beginning to increase. Industry professionals say the longer wait times are a result of slow border inspection routines and truck drivers waiting to load and unload freight at docks and intermodal facilities. To read more about the border congestion, click here.

Trending Transportation Updates: June 2019

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!

Transportation Updates: June

Roadcheck 2019 Reveals Violations

The International Roadcheck 2019 is the largest inspection on the commercial motor vehicles in North America. This year, a 72-hour truck review took place from June 4th to June 6th. The theme of inspection is steering and suspension systems. According to the recent news, hundreds of drivers and trucks are now out of service due to uncovered violations. Despite the inspection, many drivers were understanding and thankful for safety efforts. Read more here.

US Supreme Court declines to accept the challenge to steel tariffs

After President Trump approved the new steel tariffs, the representatives brought the challenge to the Supreme Court because of the tariffs being ‘unconstitutional’. For now, the Court refused to accept the challenge. “It is rare for the Supreme Court to agree to hear a case before a ruling by the Court of Appeals, and our appeal will now be heard by the U.S. Court of Appeals for Federal Circuit,” Alan Morrison, the counsel of record for the case, told Supply Chain Dive in an email. “We continue to believe that we have a strong legal case that Section 232 is unconstitutional”-, said Tim Meyer, the law professor at Vanderbilt University and counsel for the petitioners. Read more here.

H&M will be the first company to test Maersk’s carbon neutral biofuel

Over the recent year, Maersk has been working on the development of the carbon-neutral biofuel to reduce carbon footprint. It was announced that H&M is the first company to participate. The tested biofuel consists of used cooking oil and heavy oil, and according to Maersk, reduces emissions by 85 percent compared to regular bunker fuel. Read more here.

The US declares tariffs on all imports from Mexico effective June 10

According to a statement from President Donald Trump, the U.S. will force tariffs of 5% on all goods imported from Mexico starting June 10. The decision is meant to address an immigrational issue or ‘an emergency at the Southern Border’. President Trump stated that is Mexico will not reduce the number of immigrants entering the States, the tariffs will rise by 25 percent by October. Read more here.

transportation updates march

Trending Transportation Updates: March 2019

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:

Sober Steering Aims to Add Sobriety Tests to Steering Wheels 

A Canadian company, Sober Steering, makes alcohol-detecting devices attached to steering wheels. It is striving to expand usage to North American trucking companies. For now, the use of devices spreads on steering wheels of school buses in Canada. It has successfully saved the lives of many from drivers under the influence.  Read more about Sober Steering technology. 

FMCSA will review HOS regulations and ELD rules transportation updates march

The Federal Motor Carrier Safety Administration (FMCSA) head Ray Martinez stated that the organization will review HOS rules soon with possible future changes. The information was announced at the annual Truckload Carriers Association meeting. The changes will mainly touch on HOS compliance rigidity, including the 100 air-mile “short haul” exemption, the mandatory 30-minute rest break, and more. Click here to read more about the possible HOS rules changes.

Boeing to stop moving freight on 737 MAX 8 aircraft

The company paused the operation and production of more than 4,500 Boeing 737 MAX 8 planes. The main reason for a decision is the second lethal crash of this model since October. Experts estimate these actions will cost Boeing huge amounts of money, considering the needed space to park planes and pay airline companies for a disruption. Read more about the Boeing pause here.

Ocean carriers will need to increase surcharges by 35 – 40 percent to offset IMO 2020 costs

According to a recent study, ocean carriers will have to increase fuel surcharges in 2019 to maintain margins and deal with the low-sulfur regulations costs from the International Maritime Organization (IMO) in 2020. To stay financially stable, carriers on Asia-Europe ways would need to raise surcharges by 40%, while ones routing through Asia-Americas lanes would increase fees by 33%. Read more about ocean carriers surcharge growth here.

Trending Transportation Updates: February 2019

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!

Trump to extend tariff deadline meeting with Xi

It seems like trade agreements between the US and China are far from ending. After the 90-day halt period, tariffs were supposed to grow from 10% to 25%, but parties still haven’t reached any compromise, and President Trump keeps delaying the deal date. The President told reporters the meeting will take place no sooner than March 1st, however, pushed the date further recently. The current meeting date is not known yet.

Read more about tariff meeting here.

Maersk starts testing a new virtual assistant transportation updates february

Under the program of Remote Container Management (RCM), Maersk launched their new virtual assistant Captain Peter. The device will inform customers with their shipment status, temperature and climate conditions within reefer containers.

Read more about Maersk new tool here.

Uber Freight will let drivers access shippers and facilities

At the start of February, Uber Freight has launched a new option for drivers and carriers on their app. Now they will have the opportunity to leave reviews and share the experience they had at pickup or unloading. The main goal of an update is to let shippers know more about what’s important to drivers and maintain better work relationships.

Read more about Uber Freight new feature here.

Amazon spotted moving the trailer with Embark autonomous truck

One of the Reddit users has seen an Embark self-driven autonomous truck moving Amazon freight trailer. Amazon hasn’t announced any deals with Embark. The retailer also neither confirmed nor denied working with Embark after CNBC request.

Read more about Amazon and Embark truck here.

Top Megatrends to Adopt by 2025

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.

Adopting megatrends allows a company in this industry to gain critical insights into long-term changes that will affect the future of transportation. Driving growth and innovation, megatrends can be incredibly useful is creating a competitive advantage, excelling the company and keeping it afloat in the fast-paced future.

Trend 1: Replacement of multiple distribution network strategies with an omnichannel.

On average, there are three discrete distribution networks across all industry sectors. This number varies depending on overall corporate strategy.

Separate distribution networks were created mostly to handle the specific requirements of customer or product segments. Recently, e-commerce distribution networks were introduced as a sound supply chain strategy, but they lacked an important external element: speed.

Because of this, companies have started working on omnichannel strategies that will eliminate the need for multiple distribution networks, hopefully solving the speed problem.

Don’t be confused – omnichannel is not just an additional network to be added. It requires an integrated, seamless strategy to create and deliver value in the digital marketplace.

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Trend 2: Integrated supply chain operations enabled by data-format neutral technology.

Until now, the best option for a company was to purchase and install technology in-house. Transportation management systems (TMS) and distribution management systems (DMS) require(d) the best software possible, and the investment in these assets often translated to improved performance, efficiency, and effectiveness for the business.

However, software as a service (SaaS) provides any firm with the same sophisticated, top-of-the-line tools to manage transportation and distribution, minus the large financial investment. This seems like a no-brainer for most companies, especially those with budgets restricting their technological explorations. The reality is that SaaS did not improve efficiency or effectiveness overall for supply chains, making it a moot point.

The solution to this problem is simple: technology must be viewed as an enabler for integrated supply chain operations, with its purpose being the creation of value in an ever-changing business environment.

Cutting-edge firms have gotten a leg up on others by learning how to handle demand uncertainty and customer requirements. The most important way to do this? Supply chain visibility.

Moving away from stale information towards real-time, streamlined supply chain visibility is a must if a company wants to survive in the digital business climate.

Trend 3: Introduce the Chief Supply Chain Officer.

The 25th Transportation and Logistics Annual Study indicates that companies with a Chief Supply Chain Officer report statistically better profitability than their competitors.

Strategy-structure-performance (SSP) theory supports the idea that an integrated supply chain strategy that is led at the C-level of an organization will result in improved firm performance.

Even better, the Chief Supply Chain Officer who recognizes the value in transportation will excel even more. At this point, most chief executive officers wouldn’t debate the importance of supply chain management, but many of them neglect transportation.

The CSCO balances the tradeoffs between functions to achieve the long-term, overarching strategic goals of the company, creating a competitive advantage.

Will America’s Next President Secure Infrastructure Spend?

A long-term funding plan to modernize America’s infrastructure has been extensively talked about in political circles. This election, it’s not different. 

A recent CBS article says that Donald Trump and Hillary Clinton agree on this topic; that roads, bridges, airports and other US structural assets are in bad condition. Both Trump and Clinton argue that the country’s rundown roads, bridges, and airports need rebuilding. And, both candidates say infrastructure programs will create new jobs.

Clinton’s idea is a five-year plan that calls for about $300 billion in direct spending on roads and bridges and another $25 billion for an infrastructure bank. She plans to pay for the plan from corporate tax reform, including a chance for companies to banish overseas profits. Trump wants to spend $1 trillion on a variety of infrastructure projects over 10 years if elected. According to Yahoo Finance, $167 billion of the $1 trillion investment would be equity investment, while the rest would be raised by private partners.

“It’s a logical area for common ground,” Sen. Tom Carper said. He continues that a candid assessment of US infrastructure shows that there’s an argument for investing heavily in the country’s transportation system.

According to an October Transport Topics article, multiple transportation groups wrote to the presidential nominees, desperate to secure money. The Highway Trust Fund explained to the parties that an infrastructure package needs to include sustainable revenue to guarantee a permanent solution, and additional revenue sources must be long-term, reliable and dedicated to supporting an infrastructure proposal.

This CNBC article reminds voters that Congress has to agree to go along with the kind of immense new spending the presidential candidates are calling for. The new administration will need Congress’ help in achieving long-term funding goals for the transportation structure. Current budgets for infrastructure are stretched thin. A lot of money is spent on keeping the existing infrastructure operating as smoothly as possible.

Over the next decade, the American Society of Civil Engineers estimates it would cost more than $3.3 trillion to keep up with repairs and replacements, but based on current funding levels, the nation will come up more than $1.4 trillion short, the group says. When projected to 2040, the shortfall is expected to top $5 trillion, unless new funds are allocated.

 

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