Category: Newbies

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!

If you want more money, flexibility, back-office support and freedom to thrive, and are ambitious with a hard-working approach, becoming an independent freight agent could be the best move you ever make. Whether you’re a longtime veteran of the freight industry or a potential newcomer there are several reasons you should become a part of the freight broker business:

1. Independance: Independent agents have more control of business decisions than many others in the industry. At the same time, agents receive deep, comprehensive support from their brokers.

2. Unlimited Earning Potential: Because your income is determined based on your production, you will have the ability to make as much money as you want, as long as you’re willing to work for it.

3. Flexible Scheduling: As an independent freight agent you are free to work however and whenever you please. Independent agents do not need to request time off or call in sick to their boss.

4. Low Start-Up Costs: You can avoid these outstanding costs by working with an already established freight broker. You represent their company but operate with your own customers and work for yourself, through their business.

5. Work from Home: All you need is your PC or laptop to access all of the load boards and a cell phone to handle call-ins on your shipment. Making money while you’re in your pajamas is not a bad gig! It provides flexibility in case you ever want to move elsewhere, because you’re not tied down to a specific work location.

6. Work-Life Balance: As an independent freight agent, you are free to take vacations, get married, have kids, and take sick days whenever you please

7. Security For Your  Family: An agency is an extremely valuable gift that can be extended or passed down to family.It is a chance to position not just yourself, but your family in a place where they can be successful.

8. Be Your Own  Boss: It gives you a clear mind and reduced stress environment, so you can produce your best work without any distractions. The only person you answer to is yourself.

Growth + Change = Opportunity!

Walmart announced Tuesday plans to scale a program it calls GoLocal to make final-mile deliveries for businesses of all sizes.Walmart had previously restricted its last-mile service to the delivery of its own products. The program, called Walmart GoLocal, opens new revenue streams for the company by expanding its access to inventory and increasing delivery density, the golden goose of logistics business models.

Walmart said it has been piloting the service over the past several months and is now expanding to more than 500 markets just ahead of the holiday rush and amid the backdrop of rising freight costs and shortages of carrier capacity.

At the heart of this project, Walmart is aiming to create another revenue stream by using its technology and people. Walmart will not use third-party drivers but instead, rely on its Spark delivery network and other modes of proprietary transportation.

Walmart’s existing last-mile ambitions saw it building out capacity for same-day delivery, the latest frontier of the shipping wars as competitors try to catch up to Amazon’s Prime service. In three years, Walmart developed same-day delivery for more than 160,000 items from more than 3,000 stores that can cover 70 percent of the U.S. population.

Walmart GoLocal already has agreements with national retail clients, the company said in a news release, though it declined to name them. Ward told reporters that Walmart envisions a service that could deliver cupcakes from local bakeries as easily as it could car parts from national retailers.

Growth + Change = Opportunity!

The trucking industry has entered a historically strong business environment, but trucking companies continue to face some persistent headwinds: Recruit enough professional truck drivers and infrastructure.

With the shortage increasing driver pay, it can have a significant impact on supplier costs and therefore consumer pricing. It can also increase shipping delays and shortage at stores

Trucking companies will need to find ways to entice more workers to become professional truck drivers

The majority of truckers say that they get held up by poor road conditions every day or a few times a week which increases maintenance costs resulting in declining margins for owner-operators. Local and city roads that need pothole repair, resurfacing and leveling are costing truckers a lot of extra money in additional vehicle operating costs such as fuel consumption, tire wear, and deterioration.

Much of the infrastructure of the United States—including its roadways—is long overdue for overhaul and upgrading.

For truckers, who spend most of their working lives on the road, the issue is especially critical.

Infrastructure-related delays such as congestion, road closures, and deferred road maintenance present unique challenges that often require team drivers to ensure on-time delivery, this increases the cost to move the load itself and is ultimately passed on to the consumer and taxpayer at the point of sale.

Growth + Change = Opportunity!

Innovative start-ups are capitalizing on the high number of transactions and large amounts of data being handled and generated by logistics players to develop an expanding range of technology-driven solutions

Digital freight startups use technology to streamline the process of connecting truckers with shippers looking to move cargo. Such ventures drew more than $2 billion in investor backing between 2011 and 2020,
The growing sector of technology-focused upstarts has prompted traditional freight brokers to invest billions in technology to automate their operations.
Two of the most prominent digital load-matching startups say they are sticking with their plans to use their technology to grow organically, even as rival Uber Freight shifts gears with a big acquisition to speed up its path to profits.

The freight unit of Uber Technologies Inc. announced last month it is buying logistics service provider Transplace in a $2.25 billion deal. The acquisition comes as digital freight startups are looking to expand their market share and add services beyond transactional load-matching tools, while big transport companies are weighing acquisitions and hustling to scale up their own technology.

Established logistics providers have a window right now to capitalize on the energy and agility of digital startups.

Growth + Change = Opportunity! 

Amazon has spent years building one of the world’s most efficient and optimised supply chains.  It means that on top of its approximately 40 per cent market share of US ecommerce, Amazon stands to gain an even greater understanding of the shopping habits of global consumers.

The e-commerce giant is focused “squarely on adding capacity to meet the current high customer demand,” Director of Investor Relations Dave Fildes.

Amazon doubled down on its commitment to expand its logistics and fulfillment network on its latest earnings call. 

Amazon’s effort to develop an insourced supply chain extends back years with efforts to build out its fleet, develop air infrastructure, hiring employees to staff its fulfillment network and get closer to consumers.

As Amazon adds sort centers and delivery stations, it gets closer to more of the U.S. population. In 2018, 51% of the U.S. population was within a 60-minute drive of an Amazon delivery station, which grew to 77% of the U.S. population by 2021, according to the analysis by UBS.

Even with the  investments, Amazon’s one-day delivery service has not yet returned to pre-pandemic levels in the United States, Amazon is also playing catchup to Walmart and Target, which have store networks that can reach 99% and 94% of the U.S. within 60 minutes, respectively.

Growth + Change = Opportunity!