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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.

How Shippers Should Already Be Prepared For The Holiday Season

Do you smell the pumpkin spice in the air? If you close your eyes, do you hear the faint jingling of bells in the distance to be? That’s because the holiday season is approaching. And, it’s approaching fast.  The busiest time for all, logistics companies, retail stores as well as shippers.

This is the season that can make or break shippers.

This is the season that can make or break shippers. If they are properly prepared, they can take advantage of having their items on the shelves faster for consumers to buy and reap the financial benefits. However, if they aren’t prepared, they could find themselves in a world of stress trying to find carriers to move their freight. – So, what can shippers do to prepare?

Plan For Unexpected Events

Remember while planning for the holiday season that it’s an incredibly busy time filled with unforeseen events. More people will be on the roads to visit their friends and family, and with more people on the road, more wrecks occur. More wrecks, more traffic jams, may cause your freight to be delayed.

Also, the holiday season usually packs a cold punch with winter storms creating dangerous conditions for drivers that could even keep them off the road for a few days. Be sure to track the weather before scheduling shipments around winter storms.

Things get hectic around the holiday season, making it more necessary to keep your documents accurate.

Things get hectic around the holiday season, making it more necessary to keep your documents accurate. One common mistake we experience time over time is the misclassification of freight. Minimize these errors by using a density calculator.

Compete With Larger Shippers

WalMart and Amazon are two of the biggest powerhouses in the world during the holiday season and can make it difficult for smaller shippers to offer competitive rates. Often times carriers can be lured away to make deliveries for these larger shippers on a seasonal basis.

We’ve seen this way too often. To be able to compete with larger shippers and keep their products moving, small and medium-size companies will have to offer and pay higher rates for carriers. If this story rings a bell, consider partnering with a 3PL. More often than not, 3PLs can provide better service and competitive rates.

Carriers enjoy working with 3PLs because they consistently engage with them by offering year-round agreements to keep their trucks rolling.

They can do so as they have an extensive network of carriers. Carriers enjoy working with them because 3PLs consistently engage with them by offering year-round agreements to keep their trucks rolling. Plus, the fact that they move such a high volume of freight that gives them a stronger buying power, which results in highly competitive freight rates.

Reflect On The Past

Think back to last year. Did your entire operation run smoothly with only a few minor hiccups or were you pulling your hair out? Make changes to improve your business from the inside out by locating the problems and finding solutions for them.

Did you have enough manpower to handle packaging and loading extra freight? You may need to implement an all hands on deck policy for the holiday months or hire a few seasonal employees. The key here is to hire good employees to keep your operations running smoothly. Also, consider a preseason training program for new and veteran employees to boost efficiency and minimize mistakes.

Did you have enough office staff to handle all of your paperwork in a timely manner? If not, consider getting a few extra secretaries or finding a way to automate processing all of this information digitally to cut costs and save time. Programs like Quickbooks could really help you transform your office.

Also, check out our latest technologies to see how to improve tracking, addressing, and product listing. By automating your services to become more efficient, you will be able to cut down on document processing time, costly accounting mistakes, and build more productive relationships with carriers.

Are You Ready? The Holidays Are Coming

Prepare your business now for the holiday madness!

 

 

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!

Guaranteed vs Expedited Shipping

Every day shipments are booked for pickup with LTL carriers, and on occasion those carriers get overloaded and miss the pickup. A serious problem arises when that freight was time critical, such as a manufacturer waiting on freight from their vendors to finish a product. In cases like this, we have seen plants shut down until the freight arrives.

One way to help prevent this situation from occurring is a guaranteed shipment. By placing a day guaranteed on your shipment, the LTL carrier will be responsible if the freight misses that guarantee. They are much more inclined to pick up freight with guarantees attached to avoid paying the freight charges.

In case a carrier does miss the pickup on a time sensitive shipment, an expedited shipment may be required.  A dedicated carrier is called in to move the freight. This carrier picks up the freight and drives straight through until it arrives at the specified delivery location. Shipping costs for Expedited Freight can become expensive, as you are paying for a dedicated truck. However, when you compare the costs of expedited shipping versus the cost of shutting down the manufacturing plant, it may be a bargain.

Freight traveling cross country may require an air rate. When the freight is sitting in Laredo, TX and needs to be in Boston, MA by 10 AM the next day, the freight must be sent by air. This can be very expensive as airline space is very limited.

BlueGrace Logistics are the experts in expedited situations and the phrase our LTL representatives typically hear is “you just saved my job!” The worst feeling in the world as a customer is knowing that your job may be on line if the freight does not arrive. When you have a hotel opening in New York on Saturday and the drapes are still in Alabama on Thursday morning, that sinking feeling in your stomach will not go away until the freight arrives. On Friday morning when the customer calls to say “Thank you! You saved my job!” there is a feeling of significant relief for them – which is the best feeling for our company.

Avoid the stress and don’t play with chance, setup your next time sensitive shipment with BlueGrace Guaranteed services.  In the event you need expedited help, BlueGrace can help you there too.

 

BlueGrace Logistics

Got Freight? Get a Quick and Easy Freight Quote
1-800-MY-SHIPPING

BlueGrace Logistics Sponsors Carlos Condit in UFC Welterweight Championship TOMORROW NIGHT!

BlueGrace Logistics is proud to announce that we will continue the sponsorship of Ultimate Fighting Championship (UFC) Interim Titleholder Carlos Condit continues as the fighter competes in the year’s most anticipated UFC Welterweight Championship matchup against George St. Pierre. The live event will take place tomorrow, November 17, 2012 at The Bell Centre in Montreal and will be broadcast on UFC 154!  BlueGrace Logistics has been heavily involved with the sponsorship of MMA fighters, cross-branding the sport with the services of a transportation logistics provider.

“We are proud to sponsor Carlos Condit because he is a driving force representing good sportsmanship and work ethic,” says BlueGrace President and CEO Bobby Harris. “As we grow and continue to add new stakeholders to the organization, it’s important for us to have a role model who works hard, plays hard and can share a story of success. Condit does that for BlueGrace.”

We hope you’ll join us in cheering on Carlos Condit! Join the conversation on Twitter by following @carloscondit and mentioning @mybluegrace!

If you want more information on this fight or on BlueGrace, please call 1.800.MY.SHIPPING!