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Freight

A Bright Future for Intelligent Logistics

The transportation and logistics industries are perhaps one of the most vital industries in the United States, if not the entire world. On average, trucks haul approximately 70 percent of all consumer goods across the country, and that number is only expected to grow as the global economy continues to grow and change. However, while it is the most vital of all industries, it has also remained the most stagnant, with very little about the industry changing over the past several decades.

The potential for these digital changes is immense, allowing companies to work smarter by lowering operation costs while boosting efficiency.

Yet, we’re beginning to see what can be described as an age of enlightenment for the transportation industry, a digital renaissance. Something in which logistics planners and trucking fleet owners alike are beginning to dive into. These changes are covering everything from ridesharing, “smart” logistics, and even automated vehicles. The potential for these digital changes is immense, allowing companies to work smarter by lowering operation costs while boosting efficiency. Even going so far as increase environmental sustainability as truckers, planners, and shippers all learn to connect on a broader level.

The Growing Web of Interconnection 

In short, the digital age is built on the concept that just about anything is possible, including a sort of omniscience that is vital to running a highly efficient supply chain.  

One of the biggest advantages of this digital age is how interconnected everything is. The Internet of Things (IoT) is providing more data and more accessibility to that data than ever before. New software systems are able to track where freight is during every stage of its transportation and the condition of it during its trip. 3PLs and other intermediaries are developing digital platforms that can connect a shipper to a carrier with a few clicks, rather than an exhaustive list of phone calls, emails, and faxes. Customs documents can be uploaded and transmitted to mobile devices,  less demurrage and detention fees when a paper document gets lost in translation. In short, the digital age is built on the concept that just about anything is possible, including a sort of omniscience that is vital to running a highly efficient supply chain.  

Building On the Infrastructure 

Digitization within the transportation industry also has another, less obvious benefit. It gives developing countries easier access to the global market. As these countries haven’t built up their logistics capabilities to that of the U.S. or the E.U. attempting to break ground on this front is often both cost and time prohibitive. Having access to a digital platform allows them to “leapfrog” directly into digital and mobile solutions for logistics.  

“According to the All India Motor Transport Congress, there are close to 12 million trucks in India. The road freight volume in India is forecast to be 2,211.24 billion freight tonne-kilometer, growing at 4.7 percent,” according to a recent article from YourStory.com 

Market research from Novonous, ‘Logistics Market in India 2015-2020’ shows that India is a prime example of a country that can benefit from new, digitized logistics platforms. The report shows that the logistics sector for India approximately $300 billion, and expected to grow by 12.17 percent by 2020. Factor in that 90 percent of trucks in India are operated by single truck owners, and you can see the potential for connectivity and digital platforms.  

The Growth of E-commerce and Digitization 

E-commerce, of course, is at the heart of much of this digital growth as many consumers begin to veer towards a digital shopping cart, rather than brick and mortar stores. As E-commerce companies such as Amazon, Alibaba, and Flipkart begin to grow and attract more customers, the potential for higher logistics costs also increase. As it stands, India spends about 13 percent of its total GDP on logistics, versus China at 18 percent and the U.S at 8.5 percent. Even a drop of 4 percent in logistics spending could save India upwards of $50 billion.   

The visibility and scalability of a digital network will undoubtedly be vital for the growth of the global economy.

The visibility and scalability of a digital network will undoubtedly be vital for the growth of the global economy. Not only does it help to level the playing field for new players making the market more accessible, but it also helps veterans and legacy companies to operate more efficiently.  

Real-time visibility solutions can help tackle delays, productivity issues, accidents, diversion, theft, and damage.

“Mobile operators are uniquely poised to offer regional and global connectivity solutions for the logistics sector. These real-time visibility solutions can help tackle delays, productivity issues, accidents, diversion, theft, and damage,” says the Yourstory Team.   

“Governments can also improve the quality of logistics via measures like budgetary outlays, foreign direct investment regulations, clarity in classification of logistics players, tax structures, and requirements for open data sharing. This covers truck fleets and the warehousing sector,” they added.  

The logistics sector is heading towards a new digital era, that much is certain. Tech startups, along with forward-thinking incumbents, are bringing innovations and insights into the field and is shaking up the old ways of doing things. As this new era grows in years, it’s likely that we’ll be seeing the logistics and transportation industry in a wholly different light.  

Offering Intelligent Logistics To All Customers 

BlueGrace Logistics offers complete, customized transportation management solutions that provide clients with the bandwidth to create transparency, operate efficiently, and drive direct cost reductions. For more information on how we can help take your hard to understand and complicated data and turn it into easy to read and well calculated decisions data, feel free to contact us using the form below:

Change Is Coming For The Trucking Industry

Disruptive technologies will often alter the form and function of an industry, at least to some degree. The changes brought about by these new disruptions are subtle, making the sector more efficient (production is a good example of this) but change little else. The transportation industry, however, is standing at the precipice of total revolution. These new, disruptive advancements won’t affect it in small ways, but rather change it altogether, making the industry something completely different from what we’ve seen over the past several decades.   

There are some big questions to answer when contemplating how these new developments will alter and impact the industry.

There are some big questions to answer when contemplating how these new developments will alter and impact the industry. IHS Markit’s latest study “Reinventing the Truck” is taking a closer look at how new power-train and autonomous trucking will affect logistics, trucking, and the energy industry.  

New Changes for the Trucking Industry  

Of these new changes, the first one to consider is that we’re beginning to see new patterns of both distribution and consumption across consumer markets. Typically speaking, a growth in trade reflects economic activity, but that relationship might change due to changes in manufacturing and distribution practices. 3D printing, for example, means that certain consumer goods could be manufactured on site, rather than being transported from a manufacturing facility and then being hauled to a DC before reaching its final destination. Local production of consumer goods could reduce supply chains and lower demand for freight carriers, negating shipping costs entirely in some instances.  

New Technology in the Industry 

Technology will also be a driving factor. According to Markit’s study, there are three key areas in the industry that will be impacted. The first of these is through increased data access. As the IoT and expanded sensor banks allow logistics companies to gain access to more data throughout the supply chain, networks and best practices will see optimization and increased efficiency.   

Electric vehicles are becoming more sophisticated and developing a longer delivery range, making them ideal for urban settings.

Other advancements to be aware of will change fuel consumption patterns throughout the industry. Electric vehicles are becoming more sophisticated and developing a longer delivery range, making them ideal for urban settings. As electric drive trains are quieter, hours of operation can be extended, allowing carriers to operate throughout the night when traffic is reduced, which will change deployment patterns as well as fuel consumption.  

The Role of Automation 

Increased levels of automation within the industry itself will also play a large role in the transformation of the transportation industry. Warehouses are employing more robots for picking and packing of orders. Automated loading and unloading systems can reduce truck detention times, allowing a driver to get back on the road quicker.

Automation will greatly reduce costs by increasing efficiency which will be enhanced as connectivity and communication levels increase.  

Self-driving vehicles are also on the horizon which will allow for a greater traveling distance and might be enticing for new, younger drivers, as a reason to get behind the wheel. Automation will greatly reduce costs by increasing efficiency which will be enhanced as connectivity and communication levels increase.  

New Regulations will Change the Supply Chain 

Lastly, there is the change in trucking regulation to consider, which will have the most immediate impact on the industry. These new regulations are taking place on a local, state, and national level. These policies have a wide range of goals, anywhere from reducing CO2 emissions and improving (reducing) fuel consumption, to addressing longstanding labor issues. Regardless of their intention, these new regulations all share one factor in common, the will to alter the established patterns and practices of the trucking industry. Germany, for example, has allowed individual cities to ban diesel trucks. That alone will significantly change the transportation industry, bringing a new level of complexity for fleet operators that work in and around urban areas as it can vary from city to city.  

Change to Affect More than Just Transportation 

Considering that these changes have a far-reaching impact, not just on the transportation industry, the Markit study also looked at how other industries will be affected. With supply chains being shortened or even negated in some instances as well as new regulations and standards being put into effect, oil refineries and the petrochemical industry will begin to see a diminished demand from their biggest customer. 

Given that the transportation industry plays a considerable role in the global economy, many industries will be affected and will undergo their own set of changes in order to keep pace.  

In short, these new changes will push our understanding of disruptive technologies to a new level as the transportation industry will begin to undergo a metamorphosis. Given that the transportation industry plays a considerable role in the global economy, many industries will be affected and will undergo their own set of changes in order to keep pace.  

Ready for the Change? 

At BlueGrace, we work with you every step of the way. We’re here to help you understand your current freight issues and make sure your supply chain is ready for any changes in the industry without ever missing a beat. For more information on how we can help you simplify your supply chain and achieve your goals without labor or technology investments, contact us today using the form below: 

Attracting the Next Generation of Truckers

As time changes, the views and opinions of the generations that follow will also change. As the baby boomers are beginning to approach the golden age of retirement, new generations are starting to step up to the plate. This is creating a shakeup for the global economy as a whole. We’re seeing a change in aspirations as well as life goals in those that are entering the workforce. For some industries, it has created a renaissance of new ideas, innovations, leaders, and visionaries.

Simply put, the U.S trucking industry is facing a driver shortage of which it has never seen before.

Other sectors, like the trucking industry, might have a harder time attracting new prospects. Simply put, the U.S trucking industry is facing a driver shortage of which it has never seen before. As manufacturing and retail sales continue to increase, shippers and carriers alike are scrambling to find the capacity to keep freight moving, resulting in many shipments being up-charged or left behind. “A 2017 report by the American Trucking Association noted that the industry needs to hire almost 900,000 more drivers to meet rising demand, while the latest jobs report noted that 185,000 jobs have been added over the past four months alone,” according to a recent article from MSNBC 

 “The shipping infrastructure is facing a tight capacity crunch this year, and the small to mid-sized business shipper will feel the upward pressure in raised rates due to the lack of drivers and trucks available,” said Tim Story, EVP of freight operations at Unishippers. “The new mandate could result in a 4-8 percent loss in capacity (available trucks on the road).” 

To make matters worse, the average age of truck drivers on the road today is 55, which means many will be considering retirement in the near future. As qualified drivers begin to leave the field, there is a concern that there won’t be enough new drivers to replace them. In order to attract fresh blood and new talent for the industry, trucking companies are focusing their efforts on the newest generation of up and coming young adults: the self-oriented Millennials, who are in their twenties and thirties.  

Trucking is a Hard Sell  

While there is plenty of talent to choose from in the millennial pool, trucking is a hard sell when it comes to attracting new drivers. Truck driving doesn’t necessarily carry the glamorous reputation that some industries might have. Long hours and time spent away from home seem to be a deterrent for many who would consider getting behind the wheel.

While some trucking companies are willing to foot the bill for the education, that’s not a universal standard – at least not yet.  

Additionally, there’s the need for a CDL commercial driver’s license which is required to operate any combination of vehicles with a gross combination weight rating (GVWR) of 26,001 or more pounds. It takes both time and money to obtain. While some trucking companies are willing to foot the bill for the education, that’s not a universal standard – at least not yet.  

With that being said, it’s still a considerable commitment for someone fresh out of school who is trying to decide what to do with their life. Younger drivers will also be facing an age barrier as well as you need to be 21 and over to be able to cross state lines. Even if trucking companies were able to recruit younger drivers, there’s still going to be a time restraint before a young aspirant can become a full-fledged trucker.  That timing can make a big difference too. A millennial fresh out of high school isn’t able to enter into the field, which means by the time they can they’ve likely moved on to a different career field. Recruitment is also proving to be a challenge for the trucking industry as well.

Until a recruitment solution is identified, it will continue to be a problem.

While many trucking companies are starting to pay for ad space on social media sites in an attempt to find new drivers, the cost vs. yield is out of balance. “Carriers are having to spend more money on advertising to get people to apply, but only getting one to two drivers out of each 100 applications they receive,” said Story. “Between the training required, predominantly male-dominated field, age hurdles and more, carriers are having to pay drivers higher rates that will continue to increase. Right now, there aren’t enough qualified drivers in the applicant pool to satisfy the needs of the industry. Until a recruitment solution is identified, it will continue to be a problem.”  

Changing the Demographic  

Another issue for the trucking industry is that it is predominately male. According to Ellen Voie the president and CEO of the Women In Trucking (WIT) Association, only about seven percent of the entire trucking fleet in the U.S is made up of women. While this made sense for the physical requirements necessary twenty years ago, that’s no longer the case. “There’s very little physical exertion anymore,” says Voie “Even the hood releases and the dollies are hydraulic. You just push a button. WIT’s mission is to work with truck manufacturers and trucking companies alike to promote women in the industry and to help reduce the obstacles faced by women in the trucking industry. By making the industry more accessible for women, it will help to ease the driver shortage by increasing the available pool of drivers to get behind the wheel.   

Autonomous Trucks Will be Good for the Industry  

Conventional wisdom believes that automated trucking will simply remove the need for human drivers, but that isn’t the case, or at least it won’t be for quite some time. However, the trucking industry does stand to gain from the addition of autonomous trucking.

While Millennials might hold the keys to the future, reaching out to them will be the challenge.  

Autonomous trucks will still need a human driver to navigate urban settings as well as handling the more intricate aspects of entering and exiting highways. The technological aspect alone can help to attract younger drivers, while the added safety features might make the field more accessible to younger drivers and women alike while reducing the amount of training necessary to get them on the road. In any event, the trucking industry has its work cut out for it, especially as the driver shortage problem continues to worsen. While Millennials might hold the keys to the future, reaching out to them will be the challenge.  

Ready to Launch A Career in the Logistics Industry?

BlueGrace partners with the industry’s best in class LTL, Truckload and Expedited carriers. If you are ready to learn the in’s and out’s of the transportation industry, CLICK HERE to launch your logistics career and see all the positions available throughout the country at BlueGrace. We are constantly awarded a best place to work and love to see our employees succeed!

How To Label Your Freight Correctly, The First Time

While it sounds like a no-brainer, a lot of cargo damage happens due to incorrect labeling of the packages that are being transported. Labeling is an integral part of cargo packaging and is an essential aspect to ensure that your goods reach the correct destination at the required time. Correct and proper labeling including package handling instructions is critical to ensure that your goods are delivered safely and efficiently.

Labeling is also important to facilitate real-time tracking of your package as it moves through your trucker’s network and your country’s road network.

For example, if you are shipping liquid cargo or any other cargo that needs to be kept upright, it is important to label it correctly so the cargo handlers know which way to carry it. Similarly, if the cargo is hazardous, then it is important to label it appropriately. You should use the required hazardous labels so safety precautions can be taken. Not just for handling and safety, labeling is also important to facilitate real-time tracking of your package as it moves through your trucker’s network and your country’s road network.

Your cargo label should have a few mandatory components which are crucial to ensure prompt delivery.

  1. Clearly marked pick up or senders address. This is crucial because, in case of any returns or non-delivery, the cargo can be returned safely to the sender.
  2. Sender’s reference number. In order to identify the package, as the same sender could be sending various parcels to the same receiver but with different items.
  3. Clearly marked delivery address. This should have the full style address including the zip/postal code to ensure that it gets to the right area as there could be cities and streets with the same name in different parts of the country, but zip/postal codes are unique.
  4. Receiver’s reference number. The receiver may be receiving parcels from same, or various senders and they can identify the contents/order quickly with the reference number.
  5. If goods are hazardous, then the relevant hazardous labels must be affixed to the box.
  6. If the goods are Fragile, it must be labeled with Fragile stickers or tape.
  7. The label should have be clearly visible and have a big enough barcode for quick and reliable scanning.
  8. The label should be at least A5 size or larger to accommodate all the above information.

You have to ensure that only the relevant markings are present on the outside of the package

If there are markings on the label or box that are irrelevant to the shipment, that must be removed as it may cause confusion with regard to the delivery. The labels used must be hardy and be able to withstand the elements as in sun, rain, snow or any other conditions they may be exposed to during the journey although it is unlikely that the goods can get wet during road transport. If you have more than one item in a consignment to the same receiver, it would be good to affix the labels in the same place on each item as it makes it easier for the goods to be scanned and sorted.

There are standard labels for package handling instructions which clearly indicate the nature of the contents of the packages so that everyone in the transportation chain knows what handling methods to be used like whether the package is sensitive to heat or moisture or which side is up and where the loading hooks may be used etc.

The symbols on the labels are based on an international standard ISO R/780 (International Organization for Standardization).

Source: Transport Information Service

Do You Need Help With Understanding Your Freight?

Whether you are managing your own processes or you are using the logistics services of BlueGrace, proper preparation is one way to help prevent delays or additional charges. If you have questions about how you can better prevent freight issues, or just how to simplify your current transportation program, contact us via phone at 800.MY.SHIPPING or using the form below, we are here to help!

Why e-Commerce is now “Talking Shop”

Retail has undergone a radical evolution over the past few decades. When Amazon first appeared online, it was little more than an online bookstore which then piggy-backed toys for now extinct Toys-R-Us.

As e-Commerce began to gain ground, sites like Amazon were a good place to shop for a wide assortment of things you might need around your house. As the e-Commerce disruption to the brick and mortar store continued, you could launch Amazon from your phone, to shop or compare prices on the go. Now, e-Commerce goes a step further with voice-driven shopping, otherwise known as conversational commerce.

“The past year has been a decisive year for voice-driven Conversational Commerce – consumer purchase of products and services via voice assistants such as Google Assistant, Amazon’s Alexa and Apple’s Siri. While earlier restricted to chatbots accessed via messaging apps for shopping, the definition of Conversational Commerce has significantly expanded with the arrival of voice-based personal assistants, presenting brands with an opportunity to build greater intimacy with their customers,” according to an article from Capgemini.

The Growth of Conversational Commerce

Being able to shop from the comfort of your home on a computer or a smartphone is certainly a convenience. Being able to build a shopping list just by talking is even easier. That’s probably why Capgemini’s survey concluded that 40 percent of consumers would likely be using a voice shopping method over visiting a website or using an app within the next three years. Additionally, 31 percent will likely choose to use a voice assistant over physically visiting a shop or a bank branch.

When you consider the wide array of functionality, it makes sense that we’ll be seeing an uptick in voice assistant.

As the system is fairly intuitive, simply speaking what you want added to your shopping list. Given the ease of use, it’s no surprise that 51 percent of consumers are also voice assistant users for things such as purchasing. A voice assistant can also perform a wide array of other functions such as calling for a ride on Uber, making payments or sending money, or even ordering takeout for dinner. When you consider the wide array of functionality, it makes sense that we’ll be seeing an uptick in voice assistant.

A Personalized Customer Service

Typically, having to interact with a robot when you’re calling customer support can be an irritating process at the best of times. Interestingly enough, 1 in 3 respondents of the Capgemini survey said they’d be willing to replace customer support or in-store shop sales support with a personalized voice assistant to enhance their in-store shopping experience. While that might seem like a negative aspect for retail stores, it’s shown to actually increase brand loyalty as well as average spending by an additional 8 percent per order.

With this new wave of technology, retail stores are being presented with a truly unique means of increasing both their customer service and customer satisfaction. Companies that can create a dynamic and positive voice shopping assistant experience will be better able to serve their customers while increasing business at the same time. That’s not to say that human-based customer service will be completely phased out in the near future.

While a personalized voice assistant might be great for helping a customer look for specific items, they will perpetually fall short of the mark when empathy is required, specifically when things go wrong.

While a voice assistant is nice, it’s human empathy that can really make a person feel at ease when they have a problem. Many retailers are focusing on customer service as a means of increasing their business. This becomes increasingly important as many industries are turning towards automation to boost efficiency. While a personalized voice assistant might be great for helping a customer look for specific items, they will perpetually fall short of the mark when empathy is required, specifically when things go wrong.

This will certainly be something to keep an eye on as time and technology progress.

Logistics is a perfect example of this. When a shipper is having an issue trying to find a shipment, an automated call menu might be the last thing they want to hear. Having a human operator or customer service representative close at hand to help troubleshoot issues has always been vital, perhaps even more so now with the abundance of new technology. Because of this, retailers will have to learn to navigate the line between multi-platform digital solutions and good-old-fashioned human interaction. Voice assistants will be able to bring a lot to the table, connecting both companies to other companies and consumers to everything in new and exciting ways. This will certainly be something to keep an eye on as time and technology progress.

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BlueGrace provides world class customer service and makes it easier than ever to reach your markets in an efficient and cost-effective manner. Their expertise and processes provide clients with the bandwidth to operate efficiently and drive direct cost reduction, backed by procurement and dedicated management. For more information on how we can help you analyze your current freight issues and simplify your supply chain, feel free to contact us using the form below:

The Long Bumpy Road to Blockchain in Trucking

With rapid advancements in interconnectivity, such as the Internet of Things and the added advantage of instant data streaming, the freight industry has been devouring data technology as a whole and is getting a much-needed overhaul. Yet, the picture is incomplete. There are still some serious gaps, tracking being a great example of this. While shippers may have a general idea of where the freight is during its transit, often it is difficult or impossible to pinpoint the exact location and the estimated time of delivery.

Let’s face it, trucking is the life force of this country.

Communication within the industry also leaves a lot to be desired. Throughout the industry, many companies are using different systems for recording freight which allows some data to be lost in translation. That might be the reason why there is some considerable hype being built around blockchain technology. In fact, this hype is gaining some serious momentum when you consider there is a new faction, the Blockchain in Transportation Alliance (BiTA) that is working to find blockchain solutions for some of the most common trucking problems. Let’s face it, trucking is the life force of this country. Trucks are moving approximately 70 percent of the nation’s freight. As a whole, it represents over 80 percent of the nation’s freight bill. That being said, they could use all the help they can get to make the process more efficient.

Privatized Blockchain for the Industry

There is a considerable amount of potential within blockchain technology. As a data service, it can track and categorize every transaction through a products life-cycle.

For a logistics decision maker, the ability to pinpoint the location of various assets, both tangible and intangible, is invaluable.

For a logistics decision maker, the ability to pinpoint the location of various assets, both tangible and intangible, is invaluable. Within every step of the shipping process, blockchain can track the data and provide analyzable and actionable information which allows for more accurate and efficient decision making. As it’s a shared platform, the necessity for a privatized blockchain for the U.S. becomes apparent. Of course, that privatization isn’t necessarily exclusive, but rather separate from other blockchains used just for the industry. This would give shippers, carriers, freight brokers, 3PLs and anyone else in the BiTA consortium who needs to be in the know, access to a transaction ledger. BiTA’s goal, as a standards organization, is to develop a common framework to encourage the development of blockchain applications for asset tracking, transaction process and overall logistics management. All of which is geared at turning the trucking industry into something more intelligent and efficient.

…and The Seemingly Never-Ending Capacity Issue

Think about some of the most common issues within the industry. Manufacturers and shippers have a hard time finding available capacity. Putting aside the driver shortage for a moment, it makes no sense that it’s so difficult to find capacity when there’s an average of 29 billion empty or partially loaded miles per year. It also helps to understand that the trucking industry itself is incredibly fragmented in the United States. There are over 1.5 million trucking companies fielding close to 3.5 million drivers. While that might seem like a lot, 90 percent of those companies have access to six trucks or less. That makes it even more difficult for shippers to match up with carriers, both of whom need each other.

Matching a shipper’s demand to a carrier’s supply is just one of the many ailments within the industry that can be alleviated by blockchain technology.

Matching a shipper’s demand to a carrier’s supply is just one of the many ailments within the industry that can be alleviated by blockchain technology. There are many in the industry, both startups and legacy companies alike that believe that blockchain technology can make routing more efficient, cutting down on fuel costs and increasing productivity.

 

Source: Next Autonomous

In reality, blockchain has a near limitless amount of potential, if it can get off the ground that is.

Considering how varied the industry is with so many different players in the game, it can help to unify the trucking industry to help it become more efficient as a whole. Logistics planners can see the “whole picture” rather than just pieces of it at a time. With real-time data, they can make better decisions to make the industry leaner and smoother overall. In reality, blockchain has a near limitless amount of potential, if it can get off the ground that is.

The Blockchain Obstacles  

As with any new technology, there will be some hurdles and obstacles that need to be cleared in order for it to become successful. The first issue is that everyone needs to trust in the technology and believe it to be the sole source of truth for the industry. While most people will believe in the system they are working with, it’s a little more complicated with blockchain. As a crypto-technology, it is incredibly secure and the data is locked. That being said, nothing can be changed, altered, or corrupted. It becomes carved in a digital stone, for lack of a better term. Because the technology is distributed, there isn’t a sole governing authority for the data either. In short, it’s a double-edged sword. Data can’t be lost or tampered with, but it also can’t be altered. This means that there needs to be absolute faith that the data within is a genuine accounting of transactions.

If there is any hope of uniting the industry and reducing the inefficiencies of fragmentation, everyone will have to play the game.

Secondly, blockchain will need total participation from smaller companies, both shippers and carriers. If there is any hope of uniting the industry and reducing the inefficiencies of fragmentation, everyone will have to play the game. Much the same as trust. The problem here is that smaller companies often have a hard time drumming up the necessary capital to invest in new technology. The electronic logging device (ELD) mandate is a perfect example of this. Larger companies had no problem, and many were prepared well before the deadline. Smaller companies, on the other hand, watched the deadline come and go with only 37 percent of 1,600 fleets in compliance with the ruling prior to the deadline. Trying to get that many smaller companies on board with the same, or at least compatible software will definitely be an uphill battle. However, once that’s done, you’ll have an entire industry, shippers, carriers and brokers alike completely connected and collaborating on a frictionless network.

Simply put, there is some tremendous potential for blockchain and it could very well revolutionize the industry.

Lastly, the industry as a whole needs to accept data standardization. Everyone does things a little differently, which might work in the fragmented mess that it is now, but in order for blockchain to not become a convoluted jungle of indecipherable data strings, it all needs to be standardized. This is something that BiTA is trying to spearhead by working on standardization from the outset. If the history of the trucking industry has taught us anything, it’s that incorporating blockchain technology universally across the sector is another obstacle that won’t be so easy to get around. A difference in programs could mean a time-intensive process for integration to simply make the program work with the blockchain, nevermind the data entry in itself. Simply put, there is some tremendous potential for blockchain and it could very well revolutionize the industry. However, it’s going to be a long and bumpy road before we get to the smooth workings and benefit from what blockchain could provide.

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Choosing the Right 3PL to Align with Your Business Strategy

Most shippers don’t spend much time worrying about who is driving the trucks carrying their goods, but choosing a 3PL with the right carrier network makes all the difference when your business is expanding. B2B and B2C networks are increasingly determined by where the customer is, rather than a companies’ geographical location. With more business moving to online, you need to be prepared to meet your customers where they are. 

When your customers need change, you want to be able to say “yes.” But logistics is a complicated business and when you are examining your choices, there are some factors to consider.

The first step is to understand your internal requirements – consider what your specific needs are before looking for a 3PL. Questions to ask include, what modes of transportation and what services you will need? What volumes do you plan to ship and where? Do you have specific security or visibility requirements? Are your shipments time-sensitive? The list goes on… Despite their expertise, 3PLs are only as useful as their knowledge of your business and customer requirements. 

The right 3PL will also have a network density that connects you with the right carrier, at the right location and with the right capacity and expertise.

Start with Carrier Partnerships

Whether you are shipping intra-warehouse or last-mile, it’s important that your 3PL  has the capabilities to make it happen. Two considerations are technology and partnerships.  

Shippers should look for a partner that allows them to quote, track and control invoicing for their LTL and FTL shipments, across a nationwide carrier network. Because your shipping partner is responsible for integrating different shipments, they are responsible for implementing technology that provides visibility to your shipment across their network of trucks and more. 

The right 3PL will also have a network density that connects you with the right carrier, at the right location and with the right capacity and expertise. With capacity being tight these days, partnering with the right 3PL will increases the chances that your time-critical shipments will be delivered on time and at a competitive price. That means, if you have warehousing and delivery needs in Houston, your 3PL  should have vehicles available to accommodate those needs, and quickly. 

Door to Door deliveries

Not all trucking companies handle door-to-door deliveries and some don’t have to. What matters is that your 3PL is partnered with carriers that offer fleet capabilities that meet your needs. For your urban customers, the trucking company might need to deploy a fleet of smaller trucks or even vans. If your requirements are FTL B2B shipments, you need a trucking company with that sort of capacity. For many shippers, their requirements fall in-between, or into the ‘all-of-the-above category.’ In those cases, your 3PL needs to have a range of carriers available to facilitate your business. 

Experience matters

Shippers should ask themselves if their 3PL understands their business and customer base. For example, a company shipping high-value electronics, will want to check with their 3PL about security protocols. Are trucks secured? Is there a system in place to alert management when drivers divert course? Proactive 3PLs will have systems in place so that your customers can rely on you in turn.  

Shipping disruption is an unfortunate reality in the business, ranging from weather disruptions to dock strikes. The right 3PL will have a plan in place to make sure that you are taken care of. 

Do the services match the requirements?

Some 3PLs specialize in specific modes of transportation, commodities, dealing with regulations and origin/destinations. Others are generalists. Make sure that you ask potential 3PLs if they have experience handling the cargo that your business will be shipping. The right partner for your business will be able to walk you through the different steps required, allowing all parties to agree on the correct protocols and procedures.  Reviewing a 3PLs Case Study library can help you better understand their expertise.

How many modes?

There are four common modes – ocean road, air, and rail. Many 3PLs will offer “intermodal” services, but if they don’t have the size and experience to properly manage that freight in-transit, they are essentially handing off responsibility to another party. 

To avoid this uncertainty, make sure your 3PL works with established rail and intermodal carriers. That way, you get the most options. Offering a variety of modes that let shippers choose slower transit times when possible, which lowers costs. On the flip side, if you need something shipped fast, having a 3PL with a dedicated expedite team will help to ensures that your shipment gets where it’s going, in the time it needs to be there.

How’s their customer service? 

This might seem too obvious to print, but it’s important to distinguish between friendly phone conversations and 3PLs that can get you the information you need when you need it. If there’s a disruption or other events along the shipment chain, you need a 3PL that can reach out proactively to help you make the necessary adjustments on your end. There will always be disruptions, but that doesn’t mean they need to put you on your back heels. 

Customer service is also about finding a 3PL that’s willing to take the time to help you set up the right solution. If your business is experiencing sudden growth, you might not have all the answers.

Is your 3PL BlueGrace?

At BlueGrace, our freight specialists work with you every step of the way to understand your requirements and set up a solution that’s tailored to your needs. BlueGrace provides scalability for growing companies to achieve their goals without labor or technology investments. With a fully built-out national network and global partners, BlueGrace makes it easier than ever to reach your markets in an efficient and cost-effective manner. Our expertise and processes provide clients with the bandwidth to operate efficiently and drive direct cost reduction, backed by procurement and dedicated management. For more information on how we can help you analyze your current freight issues and simplify your supply chain, contact us using the form below: 

Freight Damage: 8 Practical Ways to Avoid It 

Whether you are a shipper, receiver or trucker, freight damage affects all equally. Freight damage not only increases your cost and affects your revenue, but recurring or heavy damages can cause friction between supplier and end users. 

As a Freight Operator, you can take several measures to avoid freight damage and shipping claims. 

1. Understand your cargo

Understanding the nature of the cargo is of utmost importance so that you can use the correct type of transport for your cargo and the correct type of packaging. For example, if you are shipping drummed cargo you don’t need the same level of protection as you would if you shipped fragile or bottled cargo such as sauces, jams, etc. If you are shipping cargo that is more volumetric in nature than weight (example Cotton Bales) you need a truck with a bigger space capacity than weight capacity. 

2. Choosing the right packaging

This is a critical aspect of trying to avoid freight damage. Once you have understood the nature of your cargo, which may be fragile, heavy, sensitive to water, sensitive to heat, etc., you need to carefully assess the type of packaging required for your product. For example, if you are packing fragile cargo such as bottles, it is important to ensure that these cargoes are packed using durable packaging like corrugated cardboard which is then palletized on wooden pallets for easy and safe handling. 

Use quality pallets that will last longer than cheaper pallets. Cheaper pallets may give in a short term, and better quality pallets will allow for double stacking as required. Don’t take shortcuts or skimp on the proper packaging material as this short-term saving could result in a much bigger expense at a later stage in case of any claims. 

3. Label your goods correctly

While it sounds like a no-brainer, a lot of freight damage can be avoided by labeling the cargo correctly. For example, if you are shipping liquid cargo or any other cargo that needs to be kept upright, it is important to label it correctly so the cargo handlers know which way to carry it. Similarly, if the cargo is hazardous, then it is important to label it appropriately. You should use the required hazardous labels so safety precautions can be taken. 

4. Protecting your packaging 

Cargo such as clothing, shoes and other high-value retail goods are special targets for thieves and protecting your cargo is of utmost importance. Protecting your packaging is also essential against weather and dirt, especially if you use cardboard cartons. 

You can protect your cargo by sealing it with good quality tape (usually with your company branding on it), strapping it and shrink wrapping it.

5. Stow the goods correctly

Stowing of goods on the pallet or the truck is absolutely essential to avoid freight damage. Due care must be taken to stack goods in a uniform and stable manner so that weight is equally distributed across the pallet(s) and the truck. Your products must stay within the dimensions of the pallet such that it cannot get damaged during handling. 

If your cargo has a mixture of heavy and light goods (say boxes of canned food and boxes of marshmallows), ensure that the boxes of canned food are stowed at the bottom and the boxes of marshmallows are stowed on top of the canned food. 

6. Stow the truck correctly

A lot of freight damage happens when cargo shifts inside the truck during transit. Cargo moves inside the truck due to improper stowage inside the trailer.  Whether it is palletized cargo or non-palletized cargo, the cargo should be stowed inside the truck as tightly as possible to avoid movement. 

If in spite of your best efforts there is some space between the cargo, you should use suitable dunnage material like airbags (inflatable dunnage) to absorb sudden impacts and to prevent the load from shifting. In the case of fragile cargo, you can use cargo nets to secure it, so it doesn’t move during transit. 

7. Ship in bulk

Try to consolidate your goods and move as FTL (Full Truck Load) to avoid using LTL (Less than Truck Load) as much as possible. LTL moves multiple handling before the cargo gets to its final destination. However careful one is, multiple cargo handling has a possibility of damaging your cargo. 

8.Choose reliability over price

Choose the right supplier. Using a reliable freight partner is of utmost importance in the whole supply chain process. You should choose your reliable carrier based on a few factors such as their FMCSA score, the trucks that they use, the age of their fleet, their insurance and liability cover, their cargo handling safety record and their staff training methodology. While these may not guarantee the safety of your goods, it can give you a pretty good idea of your supplier. 

To summarize, 

Freight Suppliers

  1. Ensure the cargo is properly packaged before you accept to ship it 
  2. Ensure that the cargo is properly labeled and marked
  3. Ensure that all documentation for the cargo is correct 
  4. Ensure cargo is stowed properly and can handle the various weather and transit conditions while en route to its destination 

Freight Customers

  1. Ensure that you know how to properly pack and stack your goods, or use a qualified company to do this job for you 
  2. Check and recheck your cargo, its packaging, its labeling, stacking/packing and documentation before it leaves your warehouse 
  3. Ensure you have the correct receipt from your supplier when you are handing over your cargo
  4. Ensure you choose the right supplier for the movement of your goods 

Whether you are managing your own processes or you are using the logistics services of BlueGrace, proper preparation is one way to help prevent damage. 

By working closely with all suppliers involved in the movement of your goods, you can ensure that your cargo will reach its destination in time, within your budget, and in the condition that it left the origin. 

Do You Need Help With Understanding Your freight?

Whether you are managing your own processes or you are using the logistics services of BlueGrace, proper preparation is one way to help prevent damage. If you have questions about how you can better prevent freight damage, or just how to simplify your current transportation program, contact us via phone at 800.MY.SHIPPING or using the form below, we are here to help!

The Importance of Customer Care in The Age of Automation and AI 

We’re approaching a new age. Not just in technology, but in our mentality towards that technology. Self-driving cars are no longer just a concept but are in the pre-production testing phase. Robots are less novelty and more integral to many aspects of our lives and our jobs. Simply put, we’re approaching a new age that might see a lot less need for human interaction.   

Though they may be intuitive and programmable, robots aren’t capable of handling every aspect of a job.

Many industries, not just the freight and logistics sector, have voiced some concerns about the integration of robots in the workforce. Truck drivers might take a back seat to an automated rig, at least for the highway stretches. Logistics planners might sit on the sideline while an AI constructs the hypotheticals and maps out the best route from A to B. When you consider it like that, it seems as though there might be a good reason to panic about the encroaching robotic workforce. Though they may be intuitive and programmable, robots aren’t capable of handling every aspect of a job. In fact, there are a few areas where they fall drastically short of the mark.   

Human Core Capabilities  

Despite what Isaac Asimov had to say about the matter, there are three areas in which robots simply can’t hold a candle to a human counterpart. These “core capabilities” are creativity, community and empathy. Robots aren’t designed to feel human emotion. They can’t understand when a customer is frustrated by a missing or damaged piece of freight.

Sharing Economy 

People will change their view of asset ownership, something that has been more or less hardwired into previous generations. For those that own assets, they want to get the most out of them. For those that don’t, they want to be able to access them instantly, without the need to ever own them. To make this easier to understand, consider Uber for a moment. The vehicle owner can take their asset and use it to make some extra money by giving rides. The users simply have to tap a few buttons on their phone, and a ride is summoned, ready to take them to their destination without the need to own a vehicle themselves. This is a perfect example of the Sharing Economy.  

Empathetic Businesses 

With automation growing, we’ll see a shift in the sharing economy into the empathy economy. This empathy economy will be more focused on matching humans or businesses with a need for empathetic services to those who are willing to offer them, according to the World Economic Forum 

True empathy isn’t easy, but it’s the most powerful expression of humanity. In a world full of robots, empathy can only become more valuable

“It’s cliché to say that empathy is in short supply today because every generation probably has the same sentiment. The good news is that automation will force humans to be more human and the empathy economy will create opportunities for humans to monetize a unique capability. True empathy isn’t easy, but it’s the most powerful expression of humanity. In a world full of robots, empathy can only become more valuable,” says WEForum.

Companies will need to find the balance between automated production and workers, with the softness of human emotion and customer service. Customer service specialists and the “white glove” treatment of customers will be the true differentiator between competitors in the field. The stronger the empathetic match between company and potential customer, the more likely it is that they will become a regular client.   

The Human Element 

In many regards, we look for other people to not only help us with our problems but also to understand what we’re going through. Humans will always be the best in understanding emotions. We understand how frustrating it can be to be put on hold or left with questions and seemingly no answers. It’s that human connection that is vital for businesses.  

While many businesses understand this, that’s not to say that they won’t automate at least some of their customer service elements. Well, augment might be a better word 

They all do that in the name of efficiency. However, it will be important for them and us as customers, to keep the human connection alive and well. Amazon’s Grab-and-Go is a perfect example of this. The concept is that customers don’t need to go through checkout or interact with a cashier. Simply grab the items they want and have Amazon automatically track and charge the “purchases.” While this drastically removes much of the human element, the Amazon Grab-and-Go stores are also staffed with human workers who can help answer any questions and guide customers through the process. In other words, there will always be a need for human interaction in any business environment. Human-based customer service is and will continue to be the cornerstone for building a strong business.  

Treat customers as people and not just another line in the profit margin and your business is golden.  

While data services are certainly a must, they are also becoming the norm in the logistics and freight industry. Real-time data and high-end visibility used to be a selling point, now it’s simply an expectation. Customers want to know where their products are and when they can expect them to arrive. They want a simple and easy to use system that gives them the comfort and security of knowing that they have made the right choices for optimizing their supply chain. Nonetheless, despite all the efforts and advancement of different technologies, it will be the mutual understanding created by the human empathy that will solve problems. Treat customers as people and not just another line in the profit margin and your business is golden.  

Working with a 3PL like BlueGrace

BlueGrace provides scalability for growing companies to achieve their goals without labor or technology investments. With a fully built-out national network and global partners, BlueGrace makes it easier than ever to reach your markets in an efficient and cost-effective manner. Their expertise and processes provide clients with the bandwidth to operate efficiently and drive direct cost reduction, backed by procurement and dedicated management. For more information on how we can help you analyze your current freight issues and simplify your supply chain, feel free to contact us using the form below:

Rising Costs and Lower Capacity in the Domestic Truckload Market

2018 is off to a strong start for the economy and manufacturing, but there is a shortage of available truckload capacity on the spot market. The Purchasing Managers Index has not dropped below 50 since August of 2016. This time frame almost exactly correlates with the last low point in the Dow Jones Industrial index. (October 2016, 18142.42) In August of 2016, the dry van spot market rate was roughly $1.65 per mile, today that number is $2.30 per mile. As already discussed, that number is coming along with a driver shortage and carriers not wanting to adhere to the ELD mandate.

More Freight, Less Capacity

Currently there are 5.5 available loads for every available truck in the United States. Carriers can pick and choose the freight they want, at the rate they want, going where they want.

On the heels of the new Tax Plan, businesses like Boeing, AT&T, AAON, AccuWeather, Southwest Airlines, American Airlines and many others have given out employee bonuses and increased charitable donations to show good faith in the plan. This leads many to believe economic growth is not slowing down in 2018 which then leads to more manufacturing and more freight shipments.

How Can BlueGrace Help?

Transportation Management providers like BlueGrace Logistics will consult with your business and provide a solution that can help insulate your company from the chaos in the spot market. Here’s how:

  • Current State Analysis, inefficacy identification
  • Future State Vision and growth plan
  • Benchmark Current Rates, identify lanes and current carrier mix
  • Load Planning and Consolidation Scope and Strategy
  • Network Optimization
  • Dedicated resources

BlueGrace can start this process with an initial consultation and discovery call. Do not let the constraint and capacity of 2018 ruin your budget before it even gets started. Fill out the form below to schedule your free assessment today!

The End of NAFTA Could Be a Nightmare for Truckers 

Recent actions from the U.S. President, Donald Trump, have truckers more than a little concerned. During his time on the campaign trail Trump has made his opinion on foreign industries, Mexico in particular, very clear. Touting his “America First” slogan, Trump promised the American people that he would focus on bringing jobs back to the United States and would renegotiate trade agreements to put the U.S. in a better position.  

While that sounds all well and good, the actual ramifications of Trump’s trade tinkering could be disastrous.

While that sounds all well and good, the actual ramifications of Trump’s trade tinkering could be disastrous. He’s already threatened higher tariffs on trade with Mexico and now the president has his sights set on another target, solar energy. His most recent legislative move would place a 30 percent tariff on any solar equipment that is manufactured outside the United States.  

According to Bloomberg, the 28 billion dollar solar industry is heavily reliant on these outsourced parts. In fact, 80 percent of its supply chain is centered around the acquisition of them. Bloomberg also says that this doesn’t just affect the renewable energy industry, driving it to the point of being cost prohibitive, but it could also cause 23,000 Americans to lose their jobs. The tariff would not only target solar panels, but a number of consumer electronics and the steel industry. It’s highly likely that these tariffs could create restriction on US-made goods in other countries.

Truckers Fear of NAFTA Ending 

The North American Free Trade Agreement has been a crucial element for the U.S. economy since its implementation back in 1994. The agreement was aimed at reducing or eliminating tariffs and other trade restrictions between partnering countries; Mexico, Canada, and the United States. As partner countries are attempting to work together to renegotiate the deal, the process is being dragged down with “contentious negotiations” and threats of an all-out withdrawal by the United States.  

While many in the industry will agree that the trade agreement is due for some updates and renegotiating, it is Trump’s critical attitude toward these trade agreements that have the freight transportation industry concerned.  

“NAFTA has been a major point of contention since it was first implemented over two decades ago. Critics have argued the trade deal has benefited large corporations or foreign workers at the expense of domestic workers. But to industry groups, the trade deal has been vastly more beneficial than not,” says an article from Transport Topics 

The trade agreement has been very helpful in opening up the markets between the three participating countries and has been a driving force in the success of the trucking industry. With over $6.5 billion in annual revenue for the industry, NAFTA is responsible for creating jobs for over 46,000 people; 31,000 of which are U.S. truck drivers.  

Restricting foreign trade in certain circumstances could hurt both domestic companies and consumers by limiting the flow of goods they might rely on

“President Trump hopes to use trade and other reforms to encourage domestic production – which could result in more jobs. But some domestic production faces barriers that other countries don’t have. Restricting foreign trade in certain circumstances could hurt both domestic companies and consumers by limiting the flow of goods they might rely on,” Transport Topics adds.  

The Fallout from the Death of NAFTA  

So what would happen if the United States were to withdraw completely from the free trade agreement? Most agree that the results would be disastrous.  

The disagreements and heated rhetoric have fueled concern throughout the economy. Many businesses rely on the massive trade deal, which could make them vulnerable depending on how the negotiations end and create uncertainty in the process. Alliance of Automobile Manufacturers Federal Affairs Vice President Jennifer Thomas notes that there are two bad outcomes that could potentially come from these talks. The first of these scenarios is that NAFTA becomes unworkable and useless due to unrealistic expectations. The second, and potentially most frightening, is we simply lose NAFTA altogether because the U.S. has pulled out entirely.  

The trucking industry could stand to suffer the most, as transportation from the U.S. to either Canada or Mexico is predominantly done by trucking.  

It’s more than just the threat of higher tariffs that would hurt American consumers, who would end up taking the brunt of the increased costs. There are a significant amount of jobs at stake, all of which are heavily reliant on NAFTA. The trucking industry could stand to suffer the most, as transportation from the U.S. to either Canada or Mexico is predominantly done by trucking.  

According to a report released last December by The American Action Forum, a center-right nonprofit, pulling out of NAFTA would increase consumer costs by at least $7 billion and businesses would be hit with $15.5 billion in new tariffs.  

As NAFTA negotiations are still ongoing there is hope that the trade agreement will make it through. However, with the Trump administration avidly arguing against it, there’s really no telling what form the trade agreement will take in the end.

How Can A 3PL Help?  

While we can’t control national policy, we can help our customers navigate through it. When retail stores added ‘Must Arrive By’ Dates, we were able to offer solutions. When Walmart went a step further and tightened their delivery rules with OTIF (On Time In Full), we successfully assisted many of our retail customers. With the ELD mandate in full effect, we’re actively helping our customers navigate issues that cause capacity and expensive penalty problems. No matter the situation, we are the experts here to simplify your freight needs. If you have any questions about how a 3PL like BlueGrace can assist, feel free to fill out the form below:

 

How a 3PL Takes the Logistics Out of Running Your Business

One of the first rules of running a business is, “focus on your strengths.” It sounds easy in principle, but for medium-sized companies undergoing rapid growth, it’s often hard to discern what those strengths are when every day brings new opportunities and challenges. Logistics is a tricky area. In today’s tech-intensive retail environment, customers expect to get their orders quickly, reliably and transparently. When they don’t, they will walk away and take their business elsewhere. The good news is that the rise of online shopping has pushed a slew of new, tech-savvy logistics companies into the sector while forcing established companies to invest in making their operations more digital and agile.  

You’ve Got Choices 

Let’s start with scalability because that’s where a lot of businesses run into supply chain problems. There once was a two-person startup that was growing steadily until they were mentioned on The Colbert Report, and nothing could have prepared them for what happened next. In the span of 24 hours, they went from local business to national retailer doing twenty times the sales – and nobody was prepared. The ‘Colbert Bump,’ a term coined to describe a surge of interest or business in the wake of a mention on TV, is an extreme example – but it makes for an interesting case study for scaling. It quickly became clear that they couldn’t handle their own fulfillment anymore. In addition to the complexities of hiring and training more staff, it was a question of simple economics. They needed a national presence and that meant forward shipping their products closer to major markets to deliver ‘on demand.’ 

If you’re going national, you need a national partner that works with a spectrum of carriers and different modes of transportation, with competitive pricing.

The next couple of months they’d learn that if you’re going national, you need a national partner that works with a spectrum of carriers and different modes of transportation, with competitive pricing. That way, you’re sure that your product is where it’s supposed to be and you can align your inventory with expected sales. 

Stay in Control 

Outsourcing your logistics shouldn’t mean losing visibility. It should mean the opposite.

Outsourcing your logistics shouldn’t mean losing visibility. It should mean the opposite. The right logistics partner will create transparency in hidden corners of your supply chain that you didn’t even know existed. Whether you like it or not, your in-house distribution is already working with multiple partners – and that’s problematic. You might have a separate partner for pick up, one for distribution, one for packaging and then one for returns. That’s an incredible amount of time spent calling multiple vendors and carriers, especially when there’s uncertainty in whether you’re getting the right services, process transparency, and competitive prices. 

A 3PL provider allows your company to integrate all of these costs and pay a single vendor, rather than several for your packaging and shipping needs. In addition to lower costs, one dynamic partner lets you allocate more resources toward growth – and that’s what you’re good at. There’s also an important customer service advantage to partnering with a 3PL. When your customers order from you, their three most important interactions are with your sales platform, customer support team, and the company that delivers their order. The right 3PL partner can use their expertise and infrastructure to exert that kind of control over the delivery process. That way, you can be assured that the deliveries are happening on time and you can pass on that level of visibility to your customers. 

Built to Scale 

3PLs are built to handle higher volumes of orders with increasing logistics needs. Your company might be able to handle fulfillment today, but as your market expands it will take up more of your time and might exceed your level of expertise. Bringing in a logistics partner leverages economies of scale. With higher volumes of shipments, the rates you’re charged are increasingly important. A single 3PL partner centralizes organization, meaning real-time visibility over your supply chain and more customizable shipping options.

The right 3PL partner will also increase transparency and that’s going to make your customers happy, while cutting costs.

That’s what 3PLs are designed to do. Apart from cutting payroll with a much smaller logistics operations staff, you can opt for a specialized in-house logistics department that interfaces with your 3PL. No matter how good you are, your 3PL is better when it comes to managing inventory and logistical distribution. When choosing a 3PL partner, make sure that they have developed software and tracking systems, which can be used to generate data that will allow you to reach your customers more efficiently. A tech-savvy logistics partner can help your company understand customer behavior and keep you ahead of industry trends. The right 3PL partner will also increase transparency, and that’s going to make your customers happy while simultaneously cutting costs.

Working with a 3PL like BlueGrace

BlueGrace provides scalability for growing companies to achieve their goals without labor or technology investments. With a fully built-out national network and global partners, BlueGrace makes it easier than ever to reach your markets in an efficient and cost-effective manner. Their expertise and processes provide clients with the bandwidth to operate efficiently and drive direct cost reduction, backed by procurement and dedicated management. For more information on how we can help you analyze your current freight issues and simplify your supply chain, feel free to contact us using the form below:

Surviving the Digital Race: What to Watch for in 2018

As we enter into a brand-new year, it’s time to start looking ahead to what 2018 will hold. The past few years have been considerable, in terms of both changes and technological advancements, with the freight industry seeing some of the most drastic changes. Mergers and acquisitions have challenged the playing field by taking smaller players off the board and strengthening the position of others. As for technology, the freight industry has undergone a veritable renaissance. Data analysis and predictive modeling are just the beginning of the industry’s new bag of tricks.

In 2018, it’s going to come down to the 3PLs and freight forwarders to help bridge the gap in supply chains – for both shippers and carriers.

That being said, shippers and carriers will still need help making it through. While 2017 was certainly better than 2016, it’s still going to be a slog to get back to the post-recession era. In 2018, it’s going to come down to the 3PLs and freight forwarders to help bridge the gap in supply chains – for both shippers and carriers. This change won’t take place overnight of course, but the gradual change will build up to a complete revision of the industry. “The next few years will see an evolution of the sector rather than a big-bang revolution. Undoubtedly, there will be change and those companies who cannot adjust to the new environment will drop out of the market. However, for most of the largest providers at least, the new technologies offer another way of differentiating their products and services; of driving down costs and of creating efficiencies in their networks,” according to Transportation Intelligence.   

It’s the technology that will pave the way for the future, and if 3PLs want to stay viable, they’ll have to adapt. They’ll need to be able to provide higher levels of service such as big data analysis and real-time visibility, all at competitive prices.

As we move forward we’ll eventually see a shift, not just in the way companies perform logistics, but in how they think about logistics as well. Real-time shipping quotes are something of a bonus right now, a feature that shippers appreciate but aren’t demanding just yet. Within the next decade however, real-time quotes and total visibility will become the norm. The next generation of logistics planners will see these ‘smart-contracts’ as part of the everyday operations. It’s the technology that will pave the way for the future, and if 3PLs want to stay viable, they’ll have to adapt. They’ll need to be able to provide higher levels of service such as big data analysis and real-time visibility, all at competitive prices.

What to Watch for 

Big technology trends that started up in 2017 are expected to continue as the new year progresses, as they’ve given visibility to some of the long overdue changes within the industry. As it stands, technology is going to be the lynchpin for 3PLs and forwarders, leaving its mark on the industry as a whole.

Here are the biggest trends to keep an eye on as 2018 gets underway.

Visibility, in particular, is going to be essential for supply chain management in the future.

Digitization- The digitization of the supply chain is a significant move as it completely overhauls the way the industry has been run for the past several decades. Not only is it more efficient, but the amount of accessible information allows more insightful decisions at every step of the supply chain. With the increase in focus on digitization throughout 2018, many companies will realize that in order to survive they’ll have to join the digital ranks. Digitization incorporates many different strategies ranging from a focus on hiring to technology investment strategies. Visibility, in particular, is going to be essential for supply chain management in the future.

Adaptive Organizations and Capabilities– A strong supply chain relies on its flexibility above all else. It’s the ability to adapt and react to any changes or potential obstacles in the environment. “In terms of organizational structure, the largest difference between more and less mature supply chain organizations is typically a broader span of control that includes strong relationships with functions such as customer service and product development, in addition to traditional planning, sourcing, manufacturing and logistics. More significant differences emerge in the scope of responsibility for functional owners and how they partner internally and externally to manage end-to-end (E2E) business process flows such as design-to-launch, requisition-to-settlement, and order-to-cash,” says Supply Chain Management Review.

Automation- Drones and robotics are just the beginning of automation, but they will undoubtedly play a big role in the future. Warehousing and order selection is slowly being automated, but so are last mile deliveries, as drones and automated delivery robots are allowing packages to be delivered quickly in urban settings. Warehousing will see some of the biggest investments in robotics over the course of 2018. As pick-and-pack order selection tends to be the most time and labor-intensive process, a robotic workforce could provide a considerable ROI over time. A culmination of EFT’s 2017 Research and Reports data, as well as the 2018 Third Party Logistics Study report, says that roughly 70 percent of supply chain executives have plans to automate their warehouses.

Electronic transmission of data gives companies more insight to work with, and the amount of raw data that is generated by blockchain will certainly give companies plenty to work with in terms of increasing visibility and reliability

Blockchain Technology- Blockchain has slowly gained traction over 2017 and it’s expected that it will only continue to gain ground. Electronic transmission of data gives companies more insight to work with, and the amount of raw data that is generated by blockchain will certainly give companies plenty to work with in terms of increasing visibility and reliability. As it stands, many in the industry still don’t know enough about blockchain to make much of a comment, but that will change as time progresses and more companies begin to adopt and adapt to the new technology.

Supply Chain Management 

Ultimately, controlling the supply chain and managing it properly will be one of the most crucial service offerings for 3PLs. Management solutions in today’s marketplace will require forwarders to offer shippers access to a myriad of different carriers, routes and modes of transport, and instant pricing. Strong management will be heavily reliant on big data; data gathered via the IoT, blockchain and any other technology will need to be broken down into actionable data and analyzed into something that can be used, whether in predictive modeling or direct decision making.

For 3PLs that want to stay in the game and do better than just survive, it’ll be a matter of harnessing the power of digitalization and information technology. That information will need to be applied in the best possible way to suit the needs and desires of their customers.  

As the old adage goes, knowledge is power, and in today’s marketplace that certainly holds true. For 3PLs that want to stay in the game and do better than just survive, it’ll be a matter of harnessing the power of digitalization and information technology. That information will need to be applied in the best possible way to suit the needs and desires of their customers.  

How BlueGrace Can Help in 2018

When companies want superior supply chain management services and best-in-class technology, they turn to BlueGrace. Our proprietary technology is designed to put the power of easy supply chain management and optimization back in your hands. BlueGrace Logistics offers complete, customized transportation management solutions that provide clients with the bandwidth to create transparency, operate efficiently, and drive direct cost reductions. For more information on how we can help you analyze your current freight issues, feel free to contact us using the form below:

Urban Density, Changes in Technology and Last Mile Delivery: What Can Cities Do?

 

With the rise of e-commerce and technological improvements in transportation, like autonomous vehicles and increasing urban density, we are witnessing a historic transformation in our cities. Future trends in freight movement is a “hot topic” in policy and supply chain circles.

With so many changes ahead,  a key question emerges: Can cities cope?

Daimler recently made headlines with the launch of its “all-electric Fuso ecanter truck” in New York City. The vehicle will be rolled out in other US, European and Japanese cities in the next two years, with UPS as the first commercial partner with the truck. Toyota released a hydrogen-fuelled semi-trailer that currently hauls cargo between the ports of Los Angeles and Long Beach without producing tailpipe emissions. This pilot is part of a longer-range plan by the Port of LA to reduce emissions. Urban planners in Dallas are examining the possibilities for the “hyperloop” in their city, “a futuristic mode of travel that would use levitating pods to shuttle people and goods across hundreds of miles in minutes.” With so many changes ahead,  a key question emerges: Can cities cope? What can cities do to stay on top of change?

Here are five “takeaways” on the topic.

1.   Understanding the Nature of Change is Key

Many predict that the U.S. economy will double in size over the next 30 years. The nation’s population is expected to rise from 326 million in 2017 to 390 million in 2045. More and more, Americans will live in congested urban or suburban sprawls called “megaregions.” Less than 10% of the country’s population will live in rural areas by 2040. This is a stark contrast to the 16% of Americans who lived in the countryside in 2010 and 23% in 1980.

This trend means more “everything”.

The surge in population and economic growth brings with it escalating freight activity. Freight movement across all modes are projected to grow by approximately 42 percent by 2040.This trend means more “everything”. More pressure on roads and transit lines by commuters, more parcels delivered, particularly with the meteoric rise of e-commerce.

One special concern is “the last mile.” The last mile is the final step in the delivery process. The last leg of the delivery process is when an item (or person) moves from distribution facility (or transit point) to end user (home). The length of the distance can vary from a couple of city blocks to 100 miles. This video from the Ryerson City Building Institute clearly shows the effects of the “last mile” on commuters – in this case, in the Greater Toronto Area.

Some of the challenges involved with the last mile are:

  • increased traffic congestion and traffic accidents
  • Noise, intrusion, the loss of open spaces to transport infrastructure projects
  • Environmental and social (public health) impact from local pollutant emissions
  • Illegal parking and resting, idling vehicles
  • Problems experienced by vehicle operators when operating in urban areas
  • Parking and loading/unloading problems including finding road space for unloading; fines, and handling
  • Parcel Theft

2. Cities Must Take Notice

Cities have long been concerned with capacity thresholds for commuting and predicting traffic flow. The new topic of “last mile” in the supply chain must now receive greater notice. We are moving away from discussion on “smart commuting” alone. While still important, traditional topics like carpooling and promoting public transit are giving way to issues such as digitalization and automation (think ride-hailing and autonomous shuttles).

3. Business Concerns Must Factor Into Urban Logistics (alongside Sustainability and Livability Goals)

Furthermore, it must be recognized that economic activity in urban areas depends on the movement and delivery of goods through freight carriers. City and traffic planners must be made aware that urban settings can be inhospitable places for freight deliverers. There must be more public and private sector coordination in freight planning. “Cities can shape markets to focus private sector attention and invest on the needs of cities and the people who live in them by mobilizing infrastructure, talent, and other assets to support the right kinds of AV-based solutions,” was one of the conclusions in “Taming the Autonomous Vehicle: A Primer for Cities (Bloomberg Philanthropies and the Aspen Institute) .

Business goals must be incorporated into the dialogue alongside the goals of community sustainability and livability

How freight distribution processes can be integrated into metropolitan transport, land use, and infrastructure planning is a balancing act.  Business goals must be incorporated into the dialogue alongside the goals of community sustainability and livability. An efficient and future-forward freight system will support and attract new industry for the respective area.

4. A Variety of Solutions Will Likely Be the Answer

Some of the most popular solutions include advances in technology. Transportation technology growth is very exciting, much of it spurred by seeking solutions to urban density, commuting and freight patterns.  Other solutions are more “old-fashioned” or even a return to basics. Mixing traditional and emerging technologies is the way ahead:

  • Use of electric vehicles (EV) –“sustainable mobility”
  • Autonomous vehicles and drones
  • Human-powered delivery vehicles – Cargo-bikes, pedal trucks, and pushcarts
  • Amazon lockers in commercial venues (drop-off points)
  • Vehicle access restrictions based on time and/or size/weight /emission factor/fuel type of vehicle and bus lanes
  • Curbside pickups
  • Load consolidation or co-loading
  • Truck platooning
  • Night-time deliveries, relying on “quiet equipment” and driver training
  • “On-Road Integrated Optimisation and Navigation,” or route optimization, such as introduced by UPS as a big data solution to analyze parcel operators’ daily multi-stops
  • Innovative 3PL solutions like BlueGrace’s proprietary technology, “designed to put the power of easy supply chain management and optimization back in your hands”.

A BlueGrace Case Study In Action

Recently, an e-commerce furniture business in Portland, Oregon found it had outgrown its 3PL’s manual logistic capacity, due to heavy e-commerce volumes. When this company looked to BlueGrace for ways to improve its supply chain, it was discovered that they would benefit from opening another warehouse in the Northeastern area of the US. An alternative distribution solution lowered freight costs and decreased transit days.

For the last mile to be facilitated, there must be easier access to customers and shorter distance between the hub and home.

The idea of re-examining distribution is part of a larger process of change. For instance Amazon, FedEx and UPS are creating/investing in nationwide networks of distribution and fulfillment centers. “Warehouses like these are becoming a way of life for many urbanites,” reports the Wall Street Journal. This trend is already bringing new life to formerly “sleepy towns” like Tracy, California and Kenosha, Wisconsin. For the last mile to be facilitated, there must be easier access to customers and shorter distance between the hub and home.

Make your Last Mile work. Talk with a BlueGrace Logistics expert today!

You Will Need Expedited Freight After The ELD Mandate Begins

The Electronic Logging Device (ELD) mandate is going to put a serious squeeze on many supply chains, and possibly have a major effect on your business as soon as December 2017. With the devices in place, stricter hours of service regulations will be going into effect. While these are meant to increase the safety and wellbeing of the driver, many are concerned about the interruptions this mandate will cause to scheduled delivery times.

Some Exemptions are Available

While an acclimation period is to be expected, the Federal Motor Carrier Safety Administration is making some exemptions to the ELD ruling in a few cases, the most important being:

Sprinter vans up to 24ft and straight trucks with a gross weight under 10,000 lbs WILL NOT HAVE the ELD regulations and will be able to meet time sensitive deadlines. Why is this exemption important for your freight? We will discuss more below.

So while the FMCSA is insistent on the implementation of the devices across the industry, they’re leaving a smaller, cross section of the trucking industry untouched. This comes with a slight sigh of relief as the rest of the industry continues to resist against the ruling. With the deadline for ELDs drawing closer and companies trying, and failing to repeal the mandate, other avenues for fast and timely deliveries need to be considered.

This is Where Expedited Shipments Can Help

Whatever the reason, a shipper needs to get their goods moved, and they need to get them moved in a hurry.

Unlike most other freight that moves with routine regularity, expedited freight has a nature of its own. Consider the timing aspect of it. The whole idea behind expedited freight is that it should be picked up and moved off quickly. A solution for anything from a shortage of parts to a peak season order. Whatever the reason, a shipper needs to get their goods moved, and they need to get them moved in a hurry.

In addition to the change in time and pace, there’s also the consideration that expedited freight might have some irregularities that aren’t found in normal day to day hauling. For example, the product that needs to be delivered might be going to an urban area. This usually means that ramps and docks aren’t an option, so the driver needs to have access to the right equipment to get the freight loaded or unloaded. There’s also a variance of cargo from one delivery to the next.

the nature of expedited freight is considerably different from standard freight.

In short, the nature of expedited freight is considerably different from standard freight. It needs to be quick, versatile and most importantly, available.

The BlueGrace Expedited Solution

So what do you do when you’re faced with less available hours and capacity? You turn to an expedited freight expert. The days of overpromising and overdriving trucking companies are quickly coming to an end. Instead, working with a broker who has the resources to expedite shipping will be the answer. BlueGrace not only understands the importance of getting your product from A to B quickly, but they also understand that the new regulations are very quickly going to start cramping up the rest of the industry.

BlueGrace is ready to serve customers with our national fleet of non-dock high sprinter van, small/ large straight trucks with liftgates and pallet jacks for inside pick-ups and deliveries. As we mentioned, sprinter vans up to 24ft and straight trucks with a gross weight under 10,000 lbs will not have the ELD regulations and will be able to meet time sensitive deadlines. We will also be able to provide true teams services for sprinter vans and up to 26ft straight trucks. Another added benefit to the hands on approach for expedited is that all shipments are tracked with updates every 2-4 hours depending on day points.

BlueGrace Logistics strives to streamline the expedited process for you.

BlueGrace Logistics strives to streamline the expedited process for you. BlueGrace provides you with a pool of 300+ pre-screened carriers that specialize in expedited shipments and can provide you with a quote in as little as 30 minutes. How’s that for fast?

In an uncertain time, BlueGrace takes the stress out of your freight by giving you the information and technology you need to get the job done. Click here to download our Expedited PDF with more details.

Need An Expedited Quote?

Fill out the form below for your FREE 30 Minute Expedited Quote, or call TOLL-FREE 877.630.7446 to be connected with our Expedited Freight Team immediately.

Identity Theft is On the Rise, and Cargo Theft Might Not Be Far Behind

Identity theft is among the most insidious forms of crime. Not only can it mean a person loses their livelihood, but for an enterprising criminal it could just be a stepping stone for an even bigger target. What sort of targets would criminals be aiming for after stealing an identity? How about truckloads of cargo.

When you consider the amount of information people post digitally, there is a lot of sensitive data out there, just waiting to be taken. This is especially true when you consider the number of cyber attacks that have happened this year alone. The Equifax leak, for example, can be ruinous when you consider what can be done with a little credit information.  In fact, no one really knows just how extensive the security leak really is nor will we know just how many people have been affected by it. However, for freight companies, any form of identity theft could be catastrophic.

Identity theft is on the rise and cargo theft could see a drastic increase as well.

How Identity Theft Could Mean Cargo Theft

When someone takes control of your identity, they can wreak all sorts of havoc.

It seems like a bit of a leap to go from identity theft to cargo theft. After all, when someone steals your identity, that just means they tap your bank accounts and maybe open a credit line, right? Not exactly. When someone takes control of your identity, they can wreak all sorts of havoc. In terms of cargo theft, the scheme, as laid out by The Associated Press,  goes like this:

Thieves assume the identity of a trucking company, often by reactivating a dormant Department of Transportation carrier number from a government website for as little as $300. That lets them pretend to be a long-established firm with a seemingly good safety record. The fraud often includes paperwork such as insurance policies, fake driver’s licenses, and other documents.

Then the con artists offer low bids to freight brokers who handle shipping for numerous companies. When the truckers show up at a company, everything seems legitimate. But once driven away, the goods are never seen again.

And just like that, cargo is picked up and gone for good.

And just like that, cargo is picked up and gone for good. Here are some other interesting facts pointed out by Adrian Gonzales of Talking Logistics.

  • The average value of cargos stolen by fictitious pickup was $203,744 vs. $174,380 per incident for cargo thefts overall during the study period, a 17 percent differential.
  • The commodities most frequently targeted for fictitious pick-ups are foods and beverages, electronics products and metals.
  • Over half of fictitious pickups occur at the end of a week, on Thursdays and Fridays when the main concern of shippers and brokers is in meeting a delivery date and satisfying the customer.
  • Fifty-five percent of all reported fictitious pick-ups from 2011 through 2013 occurred in California. Significant fictitious pick-up activity has also been reported in Florida, Texas and New Jersey.

Cargo Theft Rates are Falling, but the Cost is Rising

While cargo theft rates have been falling from 2016 to 2017, the value of goods being stolen has been steadily increasing.  Cargo thefts fell for the third consecutive year in terms of reported incidents, but the value of the stolen goods rose 13.3% to $114 million, according to 2016 data from CargoNet.

“There were 1,614 incidents in the United States, including cargo theft, heavy commercial vehicle theft, and supply chain fraud. Thieves stole cargo in 836 cases with an average value of the contents at about $207,000, based on the 554 thefts with an assigned value. It represented a 7.7% decline in cases year-over-year and a 10% drop since 2014. The other 282 cases didn’t include a value for the cargo,” says an article from Transport Topics.

“However, the total value of the stolen cargo, $114 million, is greater than the $100.5 million in 2015 and $94 million in 2014,” they added.

What Happens to Cargo Theft Rates when Identity Theft Rises?

For freight companies, this means there’s going to be a need for even more vigilance than before.

As it stands, we’re still unsure as to how extensive the fallout from the increasing rates of identity theft will be. While cargo thefts have been in decline over the past few years, we might see a rise thanks to the number of vulnerable identities. For freight companies, this means there’s going to be a need for even more vigilance than before.

“Law enforcement has done an outstanding job responding to strategic cargo theft. But it’s like playing whack-a-mole. Not only will the groups pop up in different areas, but cargo thieves will bob and weave away from where the attention is from the police and private industry,” said Scott Cornell, second vice president and crime and theft specialist for Travelers’ Transportation business.

there’s no such thing as being “too careful”.

With the wave of cyber attacks, and now the rise of identity theft, there’s no such thing as being “too careful”. Know who you’re working with, and use a reputable broker to make sure your freight makes it to it’s intended destination.

 

 

An Optimistic Outlook for the LTL Market

The US less-than-truckload (LTL) market is undergoing a tremendous change. Improving economic conditions as well as manufacturing growth has helped increase demand for LTL shipments. As a result, Stifel analyst David Ross noted that the $35 billion LTL market combined for publicly traded carriers reported tonnage per day increased 4% year-over-year during the second quarter of this year.

Indeed, the overall US economy appears to have awakened after a sluggish start to the year. First quarter GDP rose only 1.4%, a disappointment for sure but second quarter growth certainly made up for it growing at a 3.1% clip thanks in part to strong consumer spending.

E-commerce

E-commerce is taking more of the consumer’s spend. According to the US Commerce Department, second quarter e-commerce as a percent of total retail sales increased to 8.9%, up from 7.4% in second quarter 2016. The rise in e-commerce has sparked new service solutions from LTL carriers particularly as “supply chains become shorter, turn times are quicker and there’s a drive for small, but more frequent shipments”, according to Mr. Ross.

Some truck carriers have introduced last mile delivery services for items such as exercise equipment, mattresses, and furniture.

E-commerce packages have been the primary domain of small parcel carriers FedEx, UPS, USPS and regional small parcel carriers. However, as more consumers become habitual to ordering larger, bulkier items, FedEx and UPS, in particular, have struggled because their small parcel facilities and networks are not designed for such items. As a result, some truck carriers such as JB Hunt, Estes and Werner have introduced last mile delivery services for items such as exercise equipment, mattresses, and furniture. XPO Logistics, the third largest LTL carrier per the Journal of Commerce’s 2017 ranking, has taken it a step further by also offering white glove services such as set up, install, recycle etc. and just recently announced plans to expand their last-mile hubs to 85 within a few years. In addition, it is introducing technology that will allow consumers manage retail home deliveries with advanced, online tools.

Technology

Many shippers are looking for more integrated services, faster delivery and fulfillment and increasingly detailed shipment tracking and information. Also, third-party technology start-ups and TMS providers, such as BlueGrace are offering real-time pricing, booking and tracking solution services targeting both the shipper as well as the LTL carrier who may have available capacity on a particular lane.

Pricing and Labor

Stifel’s quarterly overview of LTL trends indicates that fuel surcharges are returning back close to 2015 highs (but remain far below 2011-2014 levels). Carriers are aiming for 3%-5% rate increases, and while getting some push back, they’re not losing freight over any rate hikes. The pricing environment currently remains healthy but could prove a concern over capacity.

LTL carriers are finding it more difficult to hire the needed labor to meet the increasing demands.

Labor continues to be another concern. LTL carriers are finding it more difficult to hire the needed labor to meet the increasing demands. Those that are hired are demanding higher wages. As an example, YRC was able to get some concessions from the Teamsters to allow them to raise pay above the contract level in certain markets.

ELD

The federal-mandated regulatory requirement, ELD (Electronic Logging Device) is set to go into effect in December. ELD is an electronic hardware that is put on a commercial motor vehicle engine that records driving hours.

It is believed that ELD could benefit LTL carriers at the expense of TL carriers.

It is believed that ELD could benefit LTL carriers at the expense of TL carriers. As such, many industry analysts anticipate pricing to increase as well as tonnage while TL capacity is reduced. As the Vice Chairman and CEO of Old Dominion Freight Line stated earlier this year, “A 1% fallout in truckload could equate to a 10% increase in the LTL arena, with larger LTL shipments.”

Outlook

The Journal of Commerce’s annual LTL ranking showed that total revenue dipped 0.4% from $35.1 billion to $34.9 billion after falling 1% the previous year. However, with US industrial output, consumer confidence and an increase in fuel prices, the top LTL carriers will likely return to expansion and revenue growth for this year.

What Is The Current Status Of Trucking Capacity?

A sudden increase in freight demand throughout the United States might put shippers in a difficult position for capacity and price later this autumn.

According to the American Trucking Association’s’ (ATA’s) Truck volume leaped 7.1 percent in August from July, and 8.2 percent year over year, the ATA said Tuesday. ATA revised July’s tonnage index, increasing it from 0.1 to 0.5 percent.

Tonnage Gets An Added Boost

“Tonnage was stronger than most other economic indicators in August and more than I would have expected,” said ATA Chief Economist Bob Costello. “However, prep work for the hurricanes and better port volumes likely gave tonnage an added boost during the month.

“I suspect that short-term service disruptions from when the storms made landfall, as well as the normal ebb and flow of freight, could make September weaker and tonnage will smooth out to more moderate gains, on average,” he said.

Some of that 7.1 percent surge, however, may just be a seasonal adjustment.

Some of that 7.1 percent surge, however, may just be a seasonal adjustment. August is often a light month for tonnage as freight demand typically doesn’t start picking up till the fall. With such an increase taking place in August, ahead of schedule, that will push the seasonally adjusted index higher for the month. With the huge 10.5 percent uptick from July to August for unadjusted tonnage, that means that more, heavier freight was being shipped across the U.S. during August.

While this is good news for carrier, it could mean a rough season ahead for shippers. This increase in tonnage will likely mean tightened capacity for the fall. Additionally, shippers could be facing the biggest rate increase since 2014. 3PLs have been noting for months that capacity has been tightening as the economy improved.

The Effect of Disasters on Trucking

The devastation left in the wake of hurricanes Harvey and Irma is also having a significant impact on the trucking industry. Combined, the hurricanes have done almost $300 billion in damage, which has lowered U.S. economic growth by 0.8 percent in the third quarter.

Considering the damage alone, it’s no surprise that reconstruction demand will be taking the lion’s share of the trucking capacity that would normally be used to serve more general needs.

“Hurricane Harvey will ‘strongly affect’ over 7% of U.S. trucking during the next two weeks, with some portion of that fraction out of operation entirely, according to an analysis by freight research firm FTR Transportation Intelligence,” says Fleet Owner.

While the disruption was more or less contained around the epicenter of the damage, there is an effect that is going to be felt across the country.

“Due to the already tight nature of the truck environment, that means that loads could be left on the docks, according to Noël Perry, one of FTR’s partners. And though the largest ripple effects of Hurricane Harvey will be “regionalized” where freight shipments are concerned, transportation managers across the entire U.S. “will be scrambling,” he added.”

“Look for spot prices to jump over the next several weeks with very strong effects in Texas and the South Central region,” Perry said in a statement. “Spot pricing was already up strong, in double-digit territory. Market participants could easily add five percentage points to those numbers.”

The State of Capacity

As far as the current state of trucking capacity goes, shippers will have to deal with a considerable constriction as the industry contends with the natural disasters and the reconstruction effort. With a considerable jump in demand from July to August and the “peak” season starting early, shippers will also have to contend with the largest rate jump in years in addition to the tight capacity. Simply put, shippers will have to make smart moves if they want to stay ahead of the competition.

 

 

A Brief Explanation Of Freight Classing For Engines

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A part of BPO, business process outsourcing is the transportation of product. A manufacturer can make the best, fastest engines in the world, but then a reliable transportation partner will be needed to help get this shipment from point A to point B. There are many issues with FBAP or Freight Bill Pay and Audit when it comes to the classification of products. Here is a short explanation on getting the proper NMFC code and freight class for engines and transmissions.

There are over 10 different NMFC codes for various engine types that can cause confusion during the initial stages of the shipping process.

Internal combustion engines are a highly complicated and valuable piece of machinery to ship; with over 10 different NMFC codes for various engine types that can cause confusion during the initial stages of the shipping process. These engines fall under a specific NMFC code though (NMFC 120800) and require you ship them in certain conditions. You need to ask yourself quite a few questions and discuss them with your shipping representative before you ship your engines. This could determine the shipping cost and freight class of your shipment.

Questions you should ask include:

  • Is the engine new or used?
    A used engine must not work and can only be used for salvaging or reconditioning. If the engine is repaired or refurbished, it qualifies as new. Used engines fall under a different NMFC code and freight class.
  • Is the engine drained of all liquids?
    The engine is not allowed to be shipped until it is drained of all liquids, except those necessary to prevent rust, corrosion or other damage.
  • How is it being packaged?
    The way the engine is packaged is another factor in determining the freight class. The simple difference between mounting on a wheeled shipping carrier and shipping on racks or cradles can create a large difference in freight rates.
  • What is the released value of the shipment?
    The released valuation is another large factor in determining the freight class of engines and must be given at the time of quoting, as well as notated on the bill of lading.

These guidelines only apply when shipping internal combustion engines, NOI, so it is important to make sure you have all the correct information before you book your shipment.

If you have specific questions about your engine shipment, please contact a qualified shipping representative today at 800-697-4477. We also have freight class experts available to answer your NMFC and freight class questions. Looking to book your engine shipment? Request an engine shipping quote today!

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