Browse Tag

Freight

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!

BlueGrace Logistics Is The Preferred Shipping Partner of the Tampa Bay Lightning

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The Tampa Bay Lightning have announced a partnership with BlueGrace Logistics, a national freight shipping company based in Tampa. The three-year agreement names BlueGrace as “The Preferred Shipping Partner of the Tampa Bay Lightning”.

“It’s a natural fit for us to partner with a world-class organization like the Tampa Bay Lightning,” said Bobby Harris, CEO and founder of BlueGrace Logistics. “This partnership enables us to team up with the Lightning on charitable initiatives, increase our local visibility and expand our national brand. We look forward to a long-term relationship and years of success with the Tampa Bay Lightning.”

 

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The Future of the Highway Steering Towards Platooning

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Volvo is leading the way for advancements in connectivity in the United States. Goran Nyberg, President of Volvo, states connectivity is “changing the industry and the way we work and the way we communicate.”

“Platooning” is the term applied to a convoy of trucks electronically linked to a lead truck with an active driver. Testing in Europe since 2009, Volvo has found the trucks boost fuel economy by reducing wind drag and lessening the workload for drivers.

“How many people question who is running a big aircraft today? It’s fully computerized, and a pilot is governing the environment,” Nyberg said.

A predictive cruise system that can conduct a 360 scan of the surrounding area is also under development. In a video simulation, a cyclist was spared because the truck took over emergency control to avoid an accident.

If legislation is approved, platooning in the U.S. could be a reality in five years.

How is your 3PL delivering on their proposed solutions?

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“If you sell on price, you lose on price.” is typically a line that is used inside the walls of BlueGrace. Price is a very important factor in transportation in this trillion dollar industry where there is billions of dollars of waste. Inefficient supply chain consultation, technology, and pricing keeps companies from not growing as fast as they should, and keeps business top line revenue down. In our recent blog “Keep the main thing, the main thing” we told you how keeping your focus on your business should be the most important thing and to leave transportation to the experts. We have seen some lacking proposals from competitors in our space. We want to give you a few pointers in what to look for in a transportation management proposal.

Does the proposal focus on your needs?

In the lead up to this proposal there should be needs you current do not have such as reporting, business intelligence, claims management, auditing, GRI management, as well as others. If these items or others business issues were brought up in the initial talks then they should be on the proposal.

Are solutions proposed explained in how they will be executed?

Companies can say they can do anything and numbers can be bent to make sense. The entity that needs to understand how these numbers and solutions proposed made the proposal page are the business owners and stake holders. Make sure you have a clear understanding of how everything is supposed to take place and when. This takes us to our next suggestion.

Is there a timeline?

9 times out of 10 changing transportation providers is not easy. Large clients have business systems and processes in place. It is up to the 3pl to figure out how to fit those systems to make transportation a seamless business function, rather than a burden. When the proposal is delivered there should be a timeline of when and what happens. Is there an integration schedule? When are the 3pl implementation representatives or IT employees supposed to be on site at your location? When is the “go-live” date? These are a few of the very important items to make sure a 3pl can deliver on a proposed solution.

The focus should be on the business

These are a few very important factors in grading a transportation proposal. The focus should be on the business and the business should understand everything that is going to happen and how the 3pl got there. BlueGrace prides itself on delivering proposals and making them happen. Reach out today to learn how we can become a supply chain partner today.

 

El Nino and the impact on US Transportation

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El Nino will have a major effect on US ground transportation and it looks to be a positive one. Temperatures are forecast to be warmer in the Midwest and Northeast. These regions have been absolutely rocked the past two Winters by Winter snow storms lasting into March. Chicago is largely considered to be the freight capitol of the United States and New Jersey has some of the highest traffic ports on the East Coast. The country may see more rain as opposed to snow. Rain does not have a large effect on ground transportation as it does not paralyze interstate systems and local roads like snow can. Here is a pattern of what types of weather this El Nino can bring:

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The Western region of the country desperately needs rain and could cause flooding with a major influx of rain this winter season. The Weather Channel has an in depth article about the effects and patterns of an El Nino weather cycle.

5th Annual Cats vs. Dogs Contest

BlueGrace Logistics holds Fifth Annual Cats vs. Dogs Pet Food Drive Benefiting the Humane Society of Tampa Bay


2015_COMMUNITY_CATSVSDOGS 2RIVERVIEW, Fla. – September 10, 2015: Each year BlueGrace holds their official “Cats vs. Dogs” contest amongst its employees. The contest is a pet food drive in which the women compete against the men to collect the most pet food in pounds. The food is then donated to the Humane Society of Tampa Bay to care for the animals in the no-kill shelter.

In 2014, BlueGrace donated more than 44,000 pounds of pet food which was enough to feed the animals for almost an entire year. Since the contest’s inception in 2010, BlueGrace has donated over 80,000 pounds of pet food to Humane Society Tampa Bay. Each year, BlueGrace plans to surpass last year’s amount. Employees come together to donate pet food, as well as leverage contacts to purchase large amounts of food. The contest will run through the middle of October.

BlueGrace Logistics takes pride in giving back to the community through our “Giving Grace” Program created by our President and CEO, Bobby Harris. Our Giving Grace charity of choice is the Humane Society of Tampa Bay and we support the organization in many ways throughout the year. Most recently, BlueGrace employees volunteered for Humane Society Tampa Bay during Creative Loafing’s BeerFest event at MOSI. A percentage of the event’s proceeds went to support the animal shelter.

Want to contribute to the 2015 Cats vs. Dogs Competition and Pet Food Drive? 

The public is invited to participate in the Cats vs. Dogs contest. For information or to donate large amounts (such as a pallet of pet food) contact BlueGrace Logistics at community@mybluegrace.comPlease be sure to specify if you’d like to contribute to the “TeamCats” (girls) or “TeamDogs,” (guys) if applicable. 

Is Looming Dimensional Freight Pricing as scary as it seems?

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Is Looming Dimensional Pricing as scary as it seems?

 

The simple answer is no, it’s not. More and more carriers are moving away from NMFC codes and the NMFTA classing system all together. It started with Central Transport and has now moved to carriers like Shift Freight, UPS, Fedex, and YRC. These carriers have also invested in equipment to help determine the total density. The equipment is called a dimensioner and Shift Freight uses the Freightsnap model. I once heard a customer say in dealing with a re-class issue “The dims don’t lie.” Meaning if you run the true dimensions and weight of the shipment in a density calculator 99 times out of a 100 that class will be fine with the carrier. You can obtain BlueGrace’s proprietary density calculator found here. Re-classification is the number 1 issue when it comes to either secondary or increased carrier charges that differ from the original quote. Dimensional Pricing will force shippers to reduce waste in packaging and space. It will also help carriers to better utilize the space in their equipment as well as better planning in daily pickup / delivery manifests. If you are starting to see more secondary charges please read our blog about our audit process or request an account with BlueGrace today!

Con-way Freight’s New President

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In June, Con-way Inc. announced Joe Dagnese as the new president of Con-way Freight, succeeding W. Gregory Lehmkuhl.

A 32 year veteran of the transportation and logistics industry, Dagnese served as the president of Con-way Truckload prior to this role, getting his start at Con-way in 1995 when he joined Menlo Logistics.

What are you wasting by not auditing your freight invoices?

At BlueGrace we make it our business to audit every invoice before it gets billed. To maximize the value our services provide, we research all invoice discrepancies and identify as either customer, carrier, or internal error.

If it is determined that the carrier has billed us in error, we dispute directly with them and a corrected invoice before we billing our customers. In the event it was caused by an internal error, we correct the error and adjust the invoice to the quoted price before the customer receives the bill., we will send that invoice at your quoted price. When there is a customer error, we inform you of the carrier findings, justification and educate you on how to avoid costly mistakes in the future. Should you dispute the findings, we provide you the opportunity to dispute with the proper paperwork, pictures, etc. and advocate on your behalf.

Failure to audit your invoices and hold your carrier’s accountable can result in thousands of dollars of annual waste. Here’s a recent, real life example:

If you were to ship, for example, 20 LTL shipments per a week, it could take 5 minutes each shipment to audit. The median salary in the United States is $33k a year. This means by BlueGrace professional auditing your shipments and letting you run your business we save you $26.45 a week in actual money as well as an hour and forty minutes in time. We provide this auditing service as an added service to our customers at no added charge. We can also provide data analysis of your current provider transportation costs to either validate or advise on if you are getting the most competitive rates possible. We also report on these audit savings in quarterly business reviews as you can see in the slide below:

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To learn more about our services email contactus@mybluegrace.com or call 800-697-4477 today

Panama Canal Expansion

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In June, The Panama Canal Authority announced testing of the first gates on the Atlantic Ocean side of the waterway. Extending over four months, this step brings the Panama Canal expansion project to 90% completion.

“This event highlights the magnitude of what we have been working on for the past seven years,” said canal administrator Jorge Quijano. “Filling the locks with water is the culmination of arduous years of labor and the realization that we are within arm’s reach of the completion of one of the most impressive infrastructure projects of our time.”

The canal has encouraged investments for deeper channels in East Coast ports, such as Miami, New York/New Jersey, and Baltimore. Port Authorities expect larger vessels with more cargo to be calling in these locations.

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