Sam McCartt

Great post by Nate Skiver. There is a growing trend among parcel carriers to introduce new Delivery Area Surcharges (DAS), particularly in urban areas. Major carriers like UPS and FedEx, now followed by OnTrac, have recently adjusted their pricing models to include these surcharges, effective this spring. At SpeedX, we understand that transparent and straightforward pricing is crucial for our clients. That's why we do not charge DAS in urban areas. Our commitment remains to provide reliable, efficient, and cost-effective last-mile delivery solutions without hidden fees or complex pricing structures. For shippers feeling the pinch of new surcharges, reach out! #logistics #lastmiledelivery #surcharges #ecommercedelivery

1

The Freight Bubble Has Popped ......and we didn't even notice. After hundreds of hours of compiled data points and economic indicators, the transportation bubble has certainly popped. We were already in a shifting market prior to COVID with localized movement seeing a shift upward by nearly 7% vs OTR movement shifting downward. COVID created a whole new set of barriers and hurdles to overcome with massive shortages everywhere. That trend led to companies getting highly aggressive on spot over dedicated and truck growth. When spot rates went through the roof causing a lot of companies to overspend grossly on equipment and resources. This created massive debt or highly unfavorable lending terms for most of these companies. These increases eventually were passed on to the consumer. The consumer on the other hand was heavily restricted during this COVID time causing their daily buying habits to change. There became a massive shift toward online retailers and wholesalers causing brick and mortar to close in record numbers triggering a higher degree of competition and variety online. The consumer continued to use the higher variety and convenient method of online shopping in record numbers. All of that to say this..... there was a huge shift in our buying habits that have not reversed as expected. Our buying habits now are where we see them being over the foreseeable future if not forever. If that is the new trend and it does not shift back to brick and mortar, the current trucking market is in it's new norm. The new normal created a significant number of local home daily jobs. From 2020 until 2023 over 2.3 million local jobs were created and have sustained into 2024 with signs of continued growth. The OTR and longer haul lanes have been reduced significantly due to more consumer products being purchased in a means that requires less long haul and higher volumes of warehousing combined with shuttle and local. So, aside from any major disasters or disruptions, where we are now is our new norm for at least the next 18 to 24 months. We will see the patterns of surge and peak seasons as they level back into place, but the baseline trend is forever changed. The largest points of opportunity in 2024 - 2026 is: Warehousing, Distribution, Local, Short Haul, Regional, Spotting, and last mile. The largest opportunities for potential loss are in OTR, Flatbed, Long Haul, and Teams. In a nutshell, OTR is like having a company with 100% of their drivers and only 70% of the freight to sustain them. Local is like having 100% of your drivers and needing to fill 115% of your positions weekly due to new business. The shift to right size has already happened and now it's like the largest game of musical chairs of who has the best talent to pivot. The next 24 months will show continued and consistent growth in the localized sector of transportation. The bubble popped almost a year ago and we've been waiting for the next "shift" to happen, but it already did.

26

3 Comments

A tough, but necessary, read if you buy into the "Strive to be Earth's Best Employer" LP. I can match each of these points to associates at my site and others I've worked in. - 53% of workers experienced one or more forms of food insecurity in the previous three months. - 48% of workers experienced one or more forms of housing insecurity in the previous three months. - More than half (56%) have not been able to pay all their bills without a remaining balance in the previous three months. - One-third of workers (33%) have used one or more publicly funded assistance programs, including 23% who have used the Supplemental Nutrition Assistance Program (SNAP). - Taking time off due to the health impacts of working at Amazon is linked with greater economic insecurity. 

4

2 Comments

Join us next Thursday, May 23 at 12pm ET for a FREE WEBINAR! Chelsea Brady and Andy Hunter from Connors Group will dive into the critical topic of labor management solutions tailored for large and diverse distribution networks. We'll focus on how organizations, including those with 3PL networks, can swiftly maximize their facility networks through cutting-edge analytics and engineering methodologies. Register or learn more about the webinar at: https://lnkd.in/emRJum_k #3PL #LMS #supplychain #laborsolutions

14

While most Americans support public transit, only 3 percent use it every day to commute to work. Many Americans lack easy access to public transit, which is why Commute with Enterprise is working to help transit agencies fill in gaps and reach more people with a cost-effective and environmentally friendly solution.

1

If you're in Atlanta next Monday, come have drinks & network with Highway and Greenscreens.ai the night before FreightWaves Future of Supply Chain 🍻 RSVP here ➡ https://lnkd.in/eRyWQw7n #futureofsupplychain #freightwavesevent

30

1 Comment

In the crowded space of Freight Visibility, Load Secure has managed to craft an innovative and working solution. Check out Freight Bites newest newsletter to read about features, benefits and value Abbi Landers company bring to the logistics industry. #Logisticstechnology #freighttechnology #newsletter #logisticssoftware #freightvisibility

8

Hello Chicago and Washington DC! Data Driven Supply Chain LLC is coming to your cities this summer, offering one-day, hands-on training on applying data science and advanced analytics to your supply chains. Learn what participants from Target, Ecolab, Land O'Lakes, Inc., and others learned at our 2023 Minneapolis training. Washington DC (Arlington Courthouse) June 25, 2024 Chicago (North Loop) July 9, 2024 If you work with complex, transaction-level supply chain data – warehouse pick data, inventory data, or sales data – this training is for you. If you need to visualize supply chain data – this training is for you. If you need to forecast demand or activity in your supply chain – this training is for you. If you want to move your organization towards network optimization or inventory optimization - this training is for you. We want to help data analysts and business analysts supporting supply chain and logistics. However, anyone whose roles touch data analysis and data visualization in supply chain – product managers, data scientists, team leaders, and more – will find value in this course. Unlike other training you may have seen, we take a “code-first” approach to teaching supply chain analytics, using the R programming language to teach concepts in a practical manner. This is hands-on, technical training for those who will use it in their daily work. We’ll cover best practices in data visualization, how to work with dirty data in supply chain (because all real-life data is dirty), and how to tell stories with data. If you don’t have experience with R – no problem. We will suggest materials that get you up to speed prior to the course. Register now: Washington DC (Arlington Courthouse) June 25, 2024: https://lnkd.in/gQREAVKN Chicago (North Loop) July 9, 2024: https://lnkd.in/gubkpxKV Educators, students, military and veterans get a 10% discount with coupon code TEACHERMILVET Groups of 4+ attendees get a 20% discount with coupon code TICKETS4PLUS There is not a virtual option at this time, however, if you are interested in a virtual option - please reach out and I'll see what we can do. Please like / comment / share to spread the word! #chicago #washingtondc #supplychain #supplychainmanagement #supplychainanalytics #networkoptimization #inventoryoptimization #rstats #pythonfordatascience

13

4 Comments

Interesting to see some wholesalers converting old mall locations into clubs. More great insight into the current state of retail.

2

This took like 5 years longer than I expected, but the divorce (and immediate second marriage) is finally happening. As I've said before, this was a bizarre marriage from the start. But, it's not like Coyote was "bad." They just weren't a fit with UPS. Hopefully they will be for RXO, an organization that I don't think is quite the shocking culture clash that UPS was. #freightwaves #transportation #logistics #mergersandacquisitions #truckingindustry #hopingforanamicabledivorce

34

Headlines about layoffs rightly cause much concern and consternation in the trucking industry (e.g., https://lnkd.in/g9useTDD). However, it is critical to understand that this tells only half the story because a substantial percentage of trucking layoffs occur because a firm loses a key customer account. What that means is that the firm which won the business will often expand (which tends not to be reported). Below I wanted to document just how prevalent such reallocation of jobs is in trucking using population-level data from administrative records for all employer firms in truck transportation via the Business Dynamics Statistics (BDS) program. Data from https://lnkd.in/gVr6BbRW for all carriers. Thoughts: •The chart shows three series. The job creation rate is the jobs added by the subset of carriers that expanded or started operations in year t relative to t-1 divided by the average employment across all carriers in years t and t-1. Analogously, the job destruction rate is defined as the jobs lost due to carriers that downsized or exited in year t relative to t-1 divided by the average employment across all carriers in years t and t-1. The Net Rate of Job Change is the difference between the series and represents the percent change in employment for a given year. Data cover 1978 – 2021, with each data point representing change for that year relative to the prior year (e.g., 1978’s data point compares March 1978 data with March 1977 data). •What I want to emphasize: even when the net rate of job change is relatively low (e.g., 4.3% for March 2019 vs March 2018), this hides that there is a much higher rate of jobs being reallocated across carriers. For example, that 4.3% March 2019 figure hides a 14.9% job creation rate and a 10.6% job destruction rate. •Consequently, what economists call excessive job reallocation in 2019 was 21.2%, which represents the sum of job creation and destruction rates (14.9 + 10.6) less the absolute value of the net change in jobs (4.3), ergo 25.5 – 4.3 = 21.2. That is a lot of reshuffling of jobs across firms. Implication: Trucking jobs are reshuffled across carriers all the time. Focusing only on layoffs misses that firms which win new contracts are likely to expand. #supplychain #supplychainmanagement #freight #trucking #truckload #logistics #transportation

141

10 Comments

Votes of Norfolk Southern shareholders were tallied yesterday morning, rejecting in large part the putsch by Ancora Holdings Group to replace NS management and seat a majority of the NS board. Three board members advanced by Ancora were elected, all with strong railroad backgrounds, displacing the Board's current independent chair. I also want to highlight two very good pieces in the rail press about yesterday's results. William C. Vantuono's excellent reporting in Railway Age has lots of juicy deets, along with this trenchant observation by Yale University's Jeff Sonnenfeld that the three board seats could have been achieved by accepting an earlier NS settlement offer. Further he notes, "The proxy fight cost tens of millions on Ancora’s side alone, not to mention tens of millions on Norfolk Southern’s side—funds that could have better gone toward the East Palestine community, the railroad’s workforce, or improving Norfolk Southern’s efficiency.” Bill Stephens has a typically excellent report in Trains Magazine, including some short-sidedly petulant comments by Ancora's James Chadwick at yesterday's meeting, criticizing "passive" institutional investors not on board with the Ancora moves. “For the passive investors: If anything should go wrong here and there’s another derailment and people die, this is on you,” he said.  “You ignored the recommendation of the proxy advisors, the unions, the largest customer of the company. You gave us literally no support and we still won three board seats without you. What happens to Norfolk Southern now is on your firms and your conscience.” I'm waiting for the final report this summer from the National Transportation Safety Board on the East Palestine incident to learn how much of the crash and its aftermath is linked to NS decisions, even as NS has paid a substantial price already for actions of others (private car owners and incident response command). In the meantime, all Class I railroads face the same inhospitable near-term economic environment as the freight industry as a whole even while burdened with a rail-specific regulatory regime that increases costs, decreases high revenue commodities, and advantages trucking competition. #freight #railroads #investors #governance

59

3 Comments

🎙️ A fresh episode of The Future of Supply Chain dropped with Dr. Thomas Goldsby, Chair of Logistics at the Haslam College of Business at the University of Tennessee, covering the complexities of supply chain management and other important topics. Tom shares his background, the growth of the University of Tennessee's supply chain program, and the importance of nearshoring and agility in today's volatile environment. They also explore the evolution of parcel logistics, the challenges of last-mile delivery, the impacts of AI on supply chain innovation for the future, and more. Take a listen and let us know what you think 👇 https://lnkd.in/gjE7Zcc6 #SupplyChainInsights #LogisticsLeaders #FutureOfSupplyChain

10

Exciting news, Baltimore's Fort McHenry Channel reopening next week! Amid this, global ocean freight supply chains are still facing uncertainty and disruption, leading to significant spot rate increases. Carriers are pushing for higher rates, potentially worsening the situation for shippers. It's crucial for shippers to assess their providers and establish strategies to mitigate costs without compromising operational efficiency. Stay proactive in managing your supply chain to navigate these challenges effectively. #FortMcHenryChannel #Drayage #ContainerShipping #SupplyChainManagement

10

This morning, RXO announced Q1 2024 results. Our brokerage business grew volumes by 11% year-over-year, our fourth consecutive quarter of double-digit volume growth. We grew with solid profitability, delivering 14.2% brokerage gross margin in the quarter. We also saw momentum in our Complementary Services. We achieved another quarter of year-over-year synergy load growth in Managed Transportation. In Last Mile, we optimized our hub network and decreased purchased transportation expense. We’re continuing to execute well in this soft freight market. We’re entering the second quarter with improved momentum and the largest sales pipeline over the last four years. We’re optimizing our cost structure while strategically investing in our business and have a playbook to deliver strong earnings growth when the market inflects. I couldn’t be prouder of our team. #growgrowRXO #freight #transportation #brokerage #tech #logistics #RXO

328

8 Comments

FREE WEBINAR - May 23 at 12pm ET Chelsea Brady of Longbow Advantage is joined by Andy Hunter from Connors Group, as they delve into the critical topic of labor management solutions tailored for large and diverse distribution networks. This webinar will focus on how organizations, including those with 3PL networks, can swiftly maximize their facility networks through cutting-edge analytics and engineering methodologies. Register here: https://lnkd.in/eCpb6xQr   Key Points to be Addressed:   • Labor remains a significant disruptor in the supply chain landscape. Discover essential strategies for optimizing labor through advanced solutions. • Uncover the hidden uniformity within seemingly diverse distribution sites. Learn to harness commonalities and standardized data to foster a more holistic network approach. • Explore the advantages of implementing bottom-up engineered labor standards without incurring exorbitant costs, leveraging tools like LaborPro. • Seamlessly integrate disparate Warehouse Management Systems (WMS) onto a unified platform such as Rebus, enabling streamlined communication across key operational systems. • "Level the playing field" by implementing benchmarking techniques to gauge site performance, enabling informed resource allocation and strategic focus. • Discover scalable solutions capable of evolving alongside shifting business requirements, all while maintaining ease of maintenance and adaptability #3PL #LMS #supplychain #laborsolutions

13

1 Comment

Great insights from project44's Eric Fullerton in this new article—sharing how the #PanamaCanal drought has changed supply chain dynamics. His takeaways on managing inventory and planning for #disruptions are essential for staying ahead in our industry 💪

3

My business these last few years is turning students into amazing Supply Chain Management professionals. This has provided the opportunity and privilege to get to know these young men and young women on a very personal level. They are amazing people. I have also come to know the reality of the struggles they go through, including mental health, anxiety, and depression. At the extreme this leads to suicide, and did you know that in the US, 4 out of 5 suicides are men? AND, the number one solution for shrinking this number is to have the right conversations, talk about our mental health with trusted friends, be open with your feelings. THUS, this post. This Sunday I will be riding my 1973 Triumph in the Distinguished Gentlemen's Ride, trying to raise awareness of Men's health issues. We normally raise money along with this ride, but this year I just simply want to raise awareness. If you, or someone you know has ever felt extreme anxiety, depression, or had suicidal thoughts please talk and share. One way to help you start the conversation, feel free to donate $2 (just enough to show you are aware) to my ride page, and then forward it to the people you want to talk to. To make it Linkedin appropriate, I bring this entire post back to my business of producing great Supply Chain Professionals. Help me stop one of my potential supply chain interruptions. Help me keep these young men alive so they can experience the joy of a great profession and a great life. https://lnkd.in/gN_-wX4b

117

7 Comments