Category: Newbies

Postal service and logistics firms express concern that vaccine mandates will cause delays in the supply chain and mail. And more lawsuits are filed against the federal rules. In California, state officials are examining exemptions to vaccinations granted by doctors. Retailers are concerned about implementing the requirements during the busy holiday shopping season

The National Retail Federation, the National Federation of Independent Business and the American Trucking Associations, told the U.S. Court of Appeals for the 5th Circuit in their lawsuit that businesses would lose employees, incur “unrecoverable compliance costs” and face deteriorating conditions in “already fragile supply chains and labor markets.”

National industry groups representing retail, truckers and independent businesses sued the Biden administration Wednesday over its vaccine and testing requirements for private companies, claiming they would cause “irreparable harm.”

Companies including United Parcel Service Inc., Amazon.com Inc. and others that manage warehouse staffers, truck drivers and other employees across logistics networks in general aren’t requiring employees outside of some office workers to get vaccinated against Covid-19. Many firms say they are encouraging staffers to get vaccinated while mandating protection measures in workplaces.

Growth + Change = Opportunity!

While a global supply-chain crisis is crimping sales for companies from Apple Inc. to Caterpillar Inc., transportation firms are riding an unprecedented profit boom. 

Trucking companies, in particular, have seen freight volume and prices jump as imported goods flood into the U.S., easily making up for higher wages to recruit drivers. The spike in fuel is passed along to their customers through automatic surcharges. 

The average spot-market price to hire a big-rig reached $2.86, including fuel surcharges, during October, 19% above the same level last year

The profit surge isn’t limited to truckers. Railroads, freight brokers and maritime shipping companies are all feasting on the more than 20% surge of imported goods and growing desperation of shippers to get their items on time.

U.S. transport companies are logging record profits in a tight domestic transportation market while ocean shipping lines are reaping similar gains on soaring rates to move containers from Asia to the U.S. and Europe.

Customers of the transport operators are feeling the pinch in freight markets, as rising transportation costs and other supply-chain woes weigh on earnings for businesses from online retail to food companies and auto parts distributors.

C.H. Robinson Worldwide Inc., the largest freight broker in North America, said its third-quarter net income rose 81% from a year ago, to $247 million, boosted in part by strong gains in its international freight-forwarding business.

Growth + Change = Opportunity!

Oilfield workers are a tough breed. Some may be a little bit rough around the edges. Some may have little formal education. Some may have advanced degrees. Some do very hard physical labor. Some have it easier. It really depends on what role you play and what profession you are in. The oil and gas industry is enormous, and you wouldn’t believe the number of jobs available in this industry.

The job of an oil truck driver is exactly what it sounds like-driving oil trucks. However, their job is not as easy as it may seem. Just like other types of truck drivers, an oil truck driver endures grueling hours on the road to ensure that their load is delivered to the destination safely and on time.

Aside from driving, an oil truck driver is also responsible for additional tasks like fueling the truck at designated stops, maintaining paperwork, and performing basic maintenance on the rig. Some oil truck drivers also operate oil tankers and forklift trucks, which require separate licensing.

To become a crude oil driver, you typically need prior experience as a commercial truck driver as well as industry certifications and licenses. Having a high school diploma is helpful, but usually not necessary. Employers require a commercial driver’s license (CDL) and a clean driving record. In addition to a CDL, you may need special certifications with your license, such as hazmat and tanker transportation worker identification credentials, which permit you to operate trucks transporting crude oil. Important skills include excellent organization, driving ability, and attention to detail.

Growth + Change = Opportunity!

Amazon plans to add 150,000 temporary workers in the United States for the holiday shopping rush, a 50% increase from the company’s holiday hiring push a year ago.

Amazon, like many retailers and logistics companies, is facing challenges hiring workers and is raising pay, dangling bonuses, and expanding benefits in response to the pressures.

The jobs have a starting pay of $18 an hour plus sign-on bonuses up to $3,000 in a bid to compete in a tight labor market, the company said in a news release. Workers can earn an additional $3 an hour per shift depending on location.

Amazon’s temporary positions for the holidays include picking, scanning and packing items at warehouses and loading boxes onto trucks.

Other chains are adding temporary and permanent workers at stores and warehouses to meet demand from holiday shoppers.

Walmart plans to hire around 150,000 employees, most of them in permanent, full-time positions, while Target  is aiming to bring on 100,000 seasonal workers and 30,000 permanent supply chain employees.

UPS , Kohl’s , Nordstrom , Macy’s  and others are also adding workers for the holidays. Some are offering sign-on bonuses this year for new hires and other incentives.

Growth + Change = Opportunity! 

Hundreds of thousands of containers are stuck at the ports of Los Angeles and Long Beach, West Coast gateways that move more than a quarter of all US imports. Dozens of ships are anchored ashore, with waiting times of up to three weeks.

US president Joe Biden has hailed a new 24-hour working system, which he says will help to shift bottlenecks in US supply chains bringing products to market for Christmas.

According to the White House, expanded operations at the Port of Los Angeles will nearly double the hours of cargo moving. It said the additional shifts have been agreed to by the International Longshore and Warehouse Union, which represents dock workers.

Some terminal operators say there is no point in extending hours when many of their regular pickup slots are not used by truck drivers.

Truckers say they are troubled by the lack of equipment needed to transport containers and warehouses that are packed or open during limited hours.

The Port of Long Beach struggled to increase cargo flow after increasing its opening hours, with truck drivers complaining that the restrictions on them for lifting and dropping containers were too tough. The shortage of truck drivers and warehouse workers has also created problems in supply chains. It is unclear how many terminals in Los Angeles will operate 24/7 and when those operations will begin.

Growth + Change = Opportunity!

Demand for distribution workers has been soaring as more consumers are shopping online. Picking, packing, and shipping e-commerce orders is more labor-intensive than traditional warehouse operations that distribute wholesale goods or replenish inventory.

More people are leaving the workforce because of concerns about getting sick or to care for family members. This has caused an intense hiring push among retailers.

Logistics providers are boosting pay, adding flexibility to shifts, blanketing social media with recruitment ads and even shipping in more robots to help workers field surging e-commerce volumes.

The push for workers is also driving sharp increases in pay. Wages for e-commerce workers have jumped from between $13 and $15 per hour to as much as $19 in some markets led by the sector’s largest operators, according to logistics executives.

Companies are increasingly utilizing robotics to navigate the holiday season. For example, DHL Supply Chain is adding hundreds more collaborative robots that navigate warehouse aisles to help workers pick orders.

Additionally, GXO Logistics Inc. added 40% more robotics and automation systems in North America in 2021 and plans to open nine new automated U.S. sites to support e-commerce this year. Among grocers at the forefront of using robotics is Hy-Vee.

Growth + Change = Opportunity!

The congestion in California continues to challenge the major US ports in Los Angeles and Long Beach, as demand surges and retailers pile up stock ahead of the holiday season.

The backup impacts the nation’s supply chain because one-third of all imported cargo shipped on ocean carriers is processed at San Pedro Bay, the Pacific Ocean entry point for Long Beach and the adjacent Port of Los Angeles, the nation’s busiest facility.

The two ports recently announced plans to expand hours to eventually move to a 24/7 operation by encouraging trucking companies and railroads to utilize the ports around the clock.

Improving efficiency is essential as both ports will see high single-digit or double-digit annual growth over the next 10 years. The forecast for 2021 is 20 million TEU containers, and there’s not another gateway in the U.S. that comes close to half that number for 2025, it’s 24 million, and if you look at the end of this decade, it’s 27 million.

The congestion issue is not limited to Pacific facilities. On Sept. 27, some 23 ships were waiting to be unloaded at the nation’s fourth-busiest facility, the Port of Savannah, Ga., and an official said that number is “above average.

There is excessive stress on the ports, and therefore indicating further congestion is expected in the coming months as we approach the holiday season in the latter part of the year.

Growth + Change = Opportunity!

Truckload volume surged and spot and contract freight rates hit new highs in August as logistics managers stared down their most challenging peak shipping season yet.

Shippers and logistics managers who would normally be gearing up for peak shipping season have encountered one test after another in terms of their ability to manage transportation pricing, capacity and supply chain disruptions.

The DAT Truckload Volume Index (TVI) rose to 231 last month, up 2% from July and 17% higher year over year. The Index is an aggregated measure of dry van, refrigerated (“reefer”) and flatbed loads moved by truckload carriers and an industry standard indicator of commercial freight activity.

The DAT Truckload Volume Index reflects the change in the number of loads with a pickup date during that month; the actual index number is normalized each month to accommodate any new data sources without distortion.

The August reading for the TVI  is one of the five highest months on record. July came in at 222, which was preceded by June’s 237 (the all-time record), and May’s 212.

Growth + Change = Opportunity!

The vast network of ports, container vessels and trucking companies that move goods around the world is badly tangled, and the cost of shipping is skyrocketing. 

With the holiday season on the horizon retailers will face shortages and consumers should expect higher prices.

The COVID-19 pandemic has prompted a long-lasting rise in transportation costs, leaving many businesses already facing high wages and raw material prices. Some CEOs are saying they expect freight costs to rise by 2023.

The cost of transporting goods is a component at every stage of a company’s supply chain. Everything from iron ore, steel, parts and finished products has to move as raw materials are processed into global manufacturing. Shipping containers across the ocean cost more, truckers are in short supply, and gasoline is more expensive than expected earlier this year.

Logistics networks have been running at maximum capacity for months, thanks to stimulus-fueled demand led by US consumers and a pickup in manufacturing.

After a decade of consolidation among ocean shipping lines, a handful of companies dominate the major routes. This means there are generally smaller and fewer ships between ports, forcing cargo owners to pay a premium to find space. 

Shipping companies expect the global crunch to continue. That’s massively increasing the cost of moving cargo and could add to the upward pressure on consumer prices.

Growth + Change = Opportunity!

Containerized shipping has become a problem of the chaotic supply chain facing U.S importers and Chinese exporters. Hopes are quickly fading that trans-pacific supply chains will normalize this year or even in 2022.

Congestion contributes to the global shortage of shipping containers and the exponential cost of sea freight. 

The number of ships is increasing. The port has already been overwhelmed by the record number of containers arriving on the U.S. coast during the peak season of this year’s shipments, waiting for a birth space at a gateway in Southern California as log jams spread across nationwide warehouses and distribution networks. 

Port leaders who have spoken to shipping companies and their freight customers say the volume of containers is declining.

Ports have emerged as one of the many bottlenecks in the world’s supply chain as ships fill boxes carrying electronics, furniture, holiday decorations and other commodities.

Hundreds of thousands of containers are loaded onto container ships waiting to berth or from terminals waiting to be transported by truck or rail to inland terminals, warehouses and distribution centers. 

The log jam causes the Biden administration to appoint a port envoy last month to work on ways to improve cargo movements in response to complaints from U.S. companies facing inventory shortages, shipping delays and rising costs.

Growth + Change = Opportunity!