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Hours of Service Update for AG Truckers 

The U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) has worked closely with the USDA to clarify rules and definitions regarding livestock and agricultural commodities in its hours-of-service (HoS) regulations. Most notably, it has issued a 150 air-mile exemption. According to the FMCSA, the agricultural rule making “was prompted by indications that the current definition of these terms may not be understood or enforced consistently when determining whether the HoS exemption applies.” Here’s a breakdown of the new HoS terms and some elaboration on how the exemption will affect motor carriers. 

Defining Terms And Boundaries  

An “air-mile” is equivalent to 172.6 miles and is roughly used to account for the shortest distance between two points regardless of the terrain. Essentially, if a driver stays within this radius while transporting certain agricultural commodities, they are exempt from HoS regulations. Drivers do not have to use an ELD because they are not required to keep logs of their hours.  

An interview conducted by FleetOwner further clarifies the exemption. Joe DeLorenzo, director of FMCSA’s Office of Compliance and Enforcement, describes which activities the exemption covers and what happens if a truck carrying agricultural commodities travels outside of the 150 air-mile radius. “Any of the time that takes place working within that 150-[air]-mile radius is not counted toward the driver’s hours of service,” he said. “That includes empty miles driven to a pick-up point, it includes loading time, and it includes the time driving with an agricultural commodity within a 150-[air]-mile radius of the source.”  This applies to the full round-trip (before and after drop-off). 

A truck may arrange multiple stops to pick up agricultural commodities, but under the FMCSA’s rules, those stops do not count as a new source point.

The mid-point of the radius is placed on the map when the commodities are picked up. This point is officially termed the “source.” The driver is then covered under the exemption at any point within the 150 air-mile radius of the initial load in. There can be only one source per trip. A truck may arrange multiple stops to pick up agricultural commodities, but under the FMCSA’s rules, those stops do not count as a new source point. Therefore, drivers will not have to log their hours when making additional loading stops within the 150 air-mile radius of their initial source.

What Happens When Drivers Leave The Radius? 

When a driver hauling ag crosses into the 151st air-mile from the original source, HoS rules apply, and the clock starts at zero hours. This can provide a significant extension to the workday. Drivers who re-enter the exemption radius from the original pickup should note that their routes re-enter the timeless zone.  

Drivers do not necessarily have to resume the use of their ELD when they re-enter territory subject to HoS regulation. 

Here’s where it gets a little confusing. Drivers do not necessarily have to resume the use of their ELD when they re-enter territory subject to HoS regulation. This ELD exemption could apply. A driver can forego the use of an ELD in favor of paper logs if they only need to record hours of service for 8 out of any 30 rolling calendar days. Since this rolling period is cHoSen at the driver’s discretion, a driver could craftily choose which 30-day window to use. The goal would be to choose any 30 days during which they left the exemption radius on fewer than 8 separate days. Using this approach, a driver would not have to obtain an ELD. 

The Implications: Some Pros & Cons 

It enables ambitious drivers to log more miles.

Since the HoS regulations are meant to limit the maximum number of hours drivers are allowed to be on duty while also mandating the number and length of rest periods, the revision made on June 1, 2020, has raised some safety concerns. Extending the workday to such extremes helps farmers move their commodities and supports grocery stores. It enables ambitious drivers to log more miles. It also effectively rolls-back the safety efforts made by the HoS to protect driver alertness through the use of ELDs in December 2017. Safety groups like The Commercial Vehicle Safety Alliance (CVSA) have warned federal regulators that their actions make agricultural haulers vulnerable to fatigue. They additionally expressed concern over the ambiguity of what defines an “agricultural commodity” between the FMCSA and the USDA. While the FMCSA cited this as the revision’s primary goal, there are still many practical gray areas.

In order for drivers to remain compliant, CVSA has insisted that the FMCSA should make changes as follows: 

  • Specify that drivers of mixed load cargo hauls do not meet the definition of an agricultural commodity for transport  
  • Provide clearly stated guidelines on the extent to which a raw agricultural product can be altered before it has to be claimed as a cargo of processed goods 
  • Require drivers to still use their ELDs to record hours driven under the exemption as a result of hauling livestock or agricultural commodities 

The key to navigating these regulations is to understand exactly how the exemptions work. Especially as the United States begins its produce season, ensuring that these time-sensitive goods reach their destination in a timely manner is critical.

Outlook for LTL in 2021: A Pressurized Sector

The height of the COVID-19 pandemic forced many businesses to close their doors, in some cases for good. In March and April, during the early days of the “shelter in place” order and red phase, the less-than-truckload (LTL) sector saw a considerable drop in volume, as much as 20 percent.

Within a few months, freight volumes rebounded quickly, leaving carriers struggling to move freight.

Trucking firms, in an effort to keep their own doors open, issued extensive layoffs to compensate for the loss of business. However, within a few months, freight volumes rebounded quickly, leaving carriers struggling to move freight. So much so that some companies had to turn away new business in favor of trying to hire new drivers.  

“All the carriers I talk to are looking for another 100 to 500 drivers,” Satish Jindel, president of transportation research firm SJ Consulting Group, said in an interview with the JOC. “The trucking industry is short 2,000 or more drivers just on the LTL side. That tells you demand is robust. This is a great time for the whole industry and LTL carriers should be operating better in this environment.” 

It is indeed a profitable time for LTL carriers, especially as the demand for e-commerce continues to swell. XPO Logistics, the third-largest stand-alone LTL carrier in the United States, had to lower its adjusted LTL operating ratio to 79.7 percent in Q3, while Old Dominion Freight Line, the second-largest LTL carrier company, lowered their’s down to 74.5. This means that these carriers saw operating profit margins upwards of 25 percent, while most publicly owned LTL carriers are working with operating margins below 10 percent.  

“If XPO and ODFL can do this, there’s no reason others should not be able to,” Jindel says. “The LTL industry should be printing money right now; demand is exceeding capacity.” 

As with other modes of freight transportation, LTL contract rates will continue to climb, but not at the same rate as truckload pricing. LTL shippers and carriers should be expecting increases to remain in the mid to high single digits, whereas FTL freight is seeing double digits. As LTL volumes continue to rise, freight pricing will continue to stay steady throughout the year.  

Jindel said LTL operators “need to get their finances in order so they can reinvest in what’s going to be needed” in 2021. This means hiring more drivers, ordering new equipment, and investing in new technology.  

Beware The Bottlenecks

As it stands, capacity is tight, regardless of what mode a shipper decides to use, be it LTL, FTL, drayage or intermodal rail. Shippers are struggling to find the right fit for their freight needs, even more, to make sure the customer receives that freight on time.  

While the increase in demand makes for lucrative contracts, an overabundance of capacity is just as bad as too little if there isn’t enough equipment to move it.

While the increase in demand makes for lucrative contracts, an overabundance of capacity is just as bad as too little if there isn’t enough equipment to move it. This is being seen it two distinct problems. The first being the pervasive driver shortage in the United States. There simply aren’t enough drivers to fill the number of open seats behind the wheel, which leaves carrier companies competing over the same limited resource.  

The second issue is the amount of time it takes for a trailer to be unloaded. With the massive influx in demand, most big-box retailers are getting more trailers in faster than they can be unloaded, which is problematic. As most LTL carriers have a limited amount of equipment, every trailer that is tied up, waiting to be unloaded, shrinks the total amount of available capacity. 

Shippers Need To Start Planning  

Despite the vaccine rollout, there is no telling how much longer we will continue to experience COVID-19 restrictions. This means that pressure on LTL prices will continue, which could affect shipping budgets.

Unfortunately, due to how turbulent and unprecedented 2020 was, data from years prior is of limited help, shippers will basically have to figure out their shipping budget on the fly this year as we continue to navigate uncharted territory.

As e-commerce demand continues to grow, it is likely that many shippers will continue to see delays in their deliveries, which could be problematic if operating under tighter deadlines or restrictions such as OTIF policies.

In addition to higher prices, shippers will also have to factor in delays, as many carriers are struggling to keep up with the workload. As e-commerce demand continues to grow, it is likely that many shippers will continue to see delays in their deliveries, which could be problematic if operating under tighter deadlines or restrictions such as OTIF policies.

While capacity will remain a challenge, shippers do have some options available to them. One of the best methods is to work with a third-party logistics (3PL) provider. As a leader in LTL, BlueGrace can help you to find the capacity you need when you need it. Contact one of our experts today to get a quote on your next shipment.

Carrying the Cure: The Logistics Of The COVID-19 Vaccine

The first wave of the COVID-19 vaccine has rolled out into communities. First-responders and those who work in high exposure professions are first on the list to get the shot. The two major distributors for the vaccine in the U.S. are Pfizer and Moderna. According to the CDC, the Pfizer vaccine “will arrive at a temperature between -80°C and -60°C (-112°F to -76°F)” and the Moderna vaccine “will arrive frozen between -25°C and -15°C (-13°F and 5°F)”.

Transit Priorities 

In addition to temperature-control needs, freighters will feel the crunch with capacity related constraints. Labeled “Operation Warp Speed” by the United States government, there is pressure on the labor force to transport these doses without delay or damage.  

Security and labor are another consideration companies need to make when meeting this unprecedented need for refrigerated shipping.

Security and labor are another consideration companies need to make when meeting this unprecedented need for refrigerated shipping. According to WSJ, “carriers typically use two-driver teams for such shipments to keep trucks moving and ensure valuable cargo isn’t left unattended.” Of course, this also increases costs by needing to pay a two-driver team for every shipment.  

Monitoring Temperature 

Temperatures need to be checked regularly and recorded each day to account for any excursions. For the most accurate readings, the CDC recommends using a DDL (digital data logger) with a detachable probe.  These probes should be buffered. Teflon®, sand, glycol and glass beads are all appropriate buffering materials for the temperatures required. According to CDC guidelines, monitoring temperatures should include “a temperature log and one of the options below:

  • Option 1: Minimum/Maximum Temperatures (preferred) Most DDLs display the minimum and maximum (min/max) temperatures. Check and record the min/max temperatures at the start of each workday. 
  • Option 2: Current Temperatures –  If the DDL does not display min/max temperatures, check and record the current temperature at the start and end of the workday. Review the continuous DDL temperature data daily.”

For the recommended storage log in Fahrenheit, click here.  To access the CDC recommended Celsius log, click here.

Projected Numbers

Recent estimates show that the number of doses the U.S. has signed up for will require about 632 trucks in 2021. Those numbers have room to grow.  Such narrow error margins with temperature mean replacement orders will happen. Security issues will arise, and the FDA will approve more manufacturers. Unforeseen events have already taken place, like the Wisconsin pharmacist who allegedly ruined a shipment of vaccines under his care.  

It is plausible to assume shipping demands will increase due to the Defense Production Act to expedite the delivery of 100 million vaccines during the first 100 days of President Joe Biden’s incumbency.  

According to information gathered by Heavy Duty Trucking, “WHO estimates nearly 20% of temperature-sensitive healthcare products get damaged during transport, and 25% reach their destination in a degraded state because of breaks in the cold chain”. While these are the present industry standards, the stakes are higher for a vaccine that will prevent a viral infection.

Managing Changes 

Presently, the number of trucking companies with both the equipment and the experience to handle the demands of this roll-out is a small percentage of the industry.  

In an interview with Wall Street Journal,  “Robbie Neilson, chief operating officer of Cavalier Logistics, a freight transport company based in Northern Virginia that specializes in temperature-controlled logistics and is involved in the Covid-19 vaccine distribution efforts” offers his opinion that the industry is well-equipped to handle the challenges. He admitted that the volume is unusual but further explained his confidence. Since this is a global problem, there is high motivation to be a part of the solution. He does not expect capacity constraints to be a significant barrier to success.  

However, not everyone in the industry agrees. Andrew Boyle, co-president of Boyle Transportation, shared his experience with WSJ as well. He says that developing the expertise necessary to work with pharmaceutical companies, obtain certifications to meet global standards for the transportation of medications, and “undergoing extensive quality audits, took us about 10 years. You can’t haul chicken nuggets and then transport oncology drugs”.

It is difficult for companies in any sector to make large changes to logistics.

It is difficult for companies in any sector to make large changes to logistics. To make those changes during unprecedented events can be near impossible. With so many lives on the line, companies would be prudent to invest in third-party logistics support.  Allocating internal efforts towards the training of drivers and cargo handlers will be of the utmost priority. High-end equipment will need to be acquired and maintained. While these are hefty up-front costs, there is an opportunity for companies to make a reputation for themselves.

If you need help raising the standards in refrigerated freight, BlueGrace can help. We provide real-time tracking of our full truckload fleet providers, including any and all temperature-controlled transport partners. With industry expertise and a reliable carrier network, we can secure capacity for you and eliminate common supply chain disruptions. Contact us at 800.MY.SHIPPING or fill out the form below to request a FREE refrigerated quote today.

 

Top 3 Factors To Consider In 2021 For The Trucking Industry

With the effects of 2020 reverberating into the new year, business carries on in some unusual new ways. Most notably, COVID-19 disrupted the global supply chain and profoundly altered the flow of goods. E-commerce has shaken the retail industry’s logistics approach, as Amazon’s model dramatically altered consumer expectations in a phenomenon now known as the “Amazon Effect”. Under orders to stay home, much of the world turned to online retailers like Amazon for shopping that was previously done locally and in person. Between hard to predict consumer behavior and the erratic flow of goods, outlooks on capacity continue to vary and become more heavily influenced by urgency. 

Impacts Of COVID-19

COVID-19, which required government response worldwide, presented many barriers to the existing standards of freight. Many workers considered non-essential by governments, happened to be essential in producing, packaging and transporting goods. Borders were closed to stop the spread, further bottle-necking the flow of supply chains. The threats that COVID-19 presented to supply chain security, continuity and resilience exacerbated traditional risks faced every year and also created new vulnerabilities and risks that experts will need to tackle in the year ahead. 

“The Amazon Effect” and E-Commerce

As slowdowns became prevalent in other major carriers such as FedEx and UPS, Amazon remained comparatively unphased.  Obsessed with customer satisfaction, Amazon was well seated to thrive during what was for most others, a crisis. With COVID-19 creating changes in best-fit practices, Amazon contributed to the plight of its competitors by raising the bar.

Consumers had come to expect options like free shipping, free return shipping, same-day delivery, and high visibility. As Forbes states, “last-mile delivery is one of the most challenging problems in fulfillment,” and “The Amazon Effect” has had its heaviest influence here. Amazon has the same logistics focus as it’s competitors, inventory and freight. However, it has shifted the weight of this focus largely on controlling its freight costs. Since last-mile delivery is almost exclusively by road, shifting investment towards freight allows delivery models to expedite delivery with smaller fleets.

For freight shippers to keep pace, they will need to make logistics-minded investments that allow them to evolve with the pervasive influence of Amazon’s near-instant gratification. 

Due to the high influence of this phenomenon over last-mile delivery, the trucking industry will continue to be affected in 2021. For freight shippers to keep pace, they will need to make logistics-minded investments that allow them to evolve with the pervasive influence of Amazon’s near-instant gratification. 

Ideal Capacity for Profitability 

2020 came with many uncertainties, but there is one thing the trucking sector knows about shares: they tend to outperform as the industry emerges from capacity-related stress or economic pressure. Inventory to sales ratios are at record lows. Businesses that responded to The National Federation of Independent Business (NFIB) Optimism Index showed that increasing their inventories was a chief priority in their developing plans for 2021.    

Given the industrial exposure of LTLs, the most optimistic of analysts are preparing for a bull market.  

The end of 2020 sees all-time highs in LTL stock trading. Many analysts are projecting that the COVID-19 vaccine will increase not only consumer economies but provide a catalyst to company inventories-related-spending. Of course, the implication of this outlook is positive strides in the industrial sector. Given the industrial exposure of LTLs, the most optimistic of analysts are preparing for a bull market.  

FTL shipping has many benefits over LTL in expedition, and is favored for it’s lower spot rates. However, as factors like the Amazon Effect come into play, it is important to think critically about best-rate decisions.

FTL shipping has many benefits over LTL in expedition, and is favored for it’s lower spot rates. However, as factors like the Amazon Effect come into play, it is important to think critically about best-rate decisions. 

Trucking stands to see plenty of action in 2021. If freight companies can accurately forecast capacity-related needs, they will remain insulated from the chaos 2020 brought with it’s unprecedented factors as they continue to hit the open road into 2021.  

Strengthening Capacity Foresight

BlueGrace offers end to end support by assessing and integrating your needs into projections from our data analytics team. Partnering with an extensive list of carriers, BlueGrace can help ease the significance of the dreaded capacity crunch. If you would like more information on how BlueGrace can help you meet tightening deadlines and reduce transportation costs, contact us at 800.MY.SHIPPING or fill out the form below to speak to one of our experts today!

Experts Warn 2020 will be The Worst Hurricane Season In Years: Is Your Company Ready to Weather the Storm?

Every company has contingency plans for when things don’t go as expected. Whether it’s a backup supplier in the case of a material shortage; or a different carrier for when capacity gets tight. However, when the weather picks up, is your supply chain ready to weather the storm?

Major weather events pose a significant disruption for supply chains, and hurricanes are no exception.

Major weather events pose a significant disruption for supply chains, and hurricanes are no exception. High winds and torrential rains can make travel all but impossible. Flash flooding and road damage can make typical routes impassible. After the more severe storms, much of the carrier capacity is consumed by rebuilding and relief efforts. All in all, if you don’t have a solid plan, you could find your supply chain washed out.

To that end, we want to make sure that your supply chain is prepared. We believe that there is no such thing as being over-prepared, especially when it comes to hurricane season. We’ve created our 2020 Hurricane Preparedness Guide to help you make sure your supply chain is protected. But first, take a look at what’s expected this hurricane season.

2020 is set to be a Record-Breaking Year for Hurricanes

With the way the year has gone so far, is it really any surprise that 2020 is already breaking records for hurricanes? So far, the Atlantic Hurricane season is already in full swing, well ahead of the peak month which is typically September. Hurricane Isaias which caused significant damage on the east coast was the earliest ninth named storm on record. Now, the National Oceanic and Atmospheric Administration (NOAA) is predicting that even more records might be broken in the upcoming months with at least 10 more named storms.

The updated outlook released Thursday calls for a total of 19 to 25 named storms

“The updated outlook released Thursday calls for a total of 19 to 25 named storms (winds of 39 mph or greater), of which 7 to 11 are expected to become hurricanes (winds of 74 mph or greater), including three to six that could become major hurricanes (winds of 111 mph or greater). This update covers the entire hurricane season, which ends Nov. 30, and therefore includes the nine named storms to date,” reads a recent Washington Post article.

According to the National Weather Service Director, Louis Uccellini, 95 percent of hurricanes and major hurricanes, form between August and October. “In over two decades of issuing storm warnings and forecasts, NOAA has never predicted that as many as 25 named storms would form in a single season,” says the Post.

The Long List isn’t Quite Long Enough

Interestingly enough, the list of names that are assigned to storms is predetermined ahead of time by the World Meteorological Organization. As it stands, there are only 21 names left on the Atlantic list. Afterward, forecasters will have to resort to using characters from the Greek alphabet. This has happened only one other time, back in 2005, which was the most active hurricane season on record. 

NOAA’s Initial Predictions Might have been Too Optimistic

The initial prediction from NOAA, which was released in May, called for a 60 percent likelihood for an above-average level of hurricane activity. The prediction called for a 70 percent chance for 13 to 19 named storms, with six to 10 having the potential to become hurricanes. Of the predicted hurricanes, three to six could become major hurricanes with a Category 3 rating or higher.

The updated forecast now places the chance for an above-average season at 85 percent, 24 named storms, which include 12 total hurricanes, five of which will be major.

The season has the potential to be one of the busiest on record, NOAA said.

Battening Down the Hatches

A busy hurricane season in of itself has the potential to be devastating to businesses along the coast. Supply chains can very easily become disrupted as carriers are pulled away to haul for humanitarian aid for the places most heavily affected. Couple in the fact that storms will continue to hit in quick succession, leaving little time for roadways and other necessary infrastructure to be repaired and you have the perfect recipe for disaster.

For companies that manage extensive supply chains along the Atlantic coast, now is the time to begin preparing for the rough season ahead. Fortunately, we here at BlueGrace have a lot of first-hand experiences with Hurricanes, being based out of Tampa Florida. Working with shippers and carriers alike, we have our 2020 Hurricane Preparedness Guide down to a science. Don’t get caught unprepared, download our white paper today!

Is Your Supply Chain Ready For Weather Disruptions?

To a large extent, Supply Chain and uncertainty go hand in hand. Driver delays, transportation failure, strikes, hike in fuel prices, carrier capacity shortage, vendor hold-ups, thefts, and fires at warehouses are all common issues in the supply chain ecosystem. Most supply chain leaders are not only aware of them but also have alternate plans or solutions ready to tackle these issues as and when they arise.

However as supply chains become increasingly global in nature, businesses not only have to contend with minor uncertainties but also have to manage larger global disruptions that may threaten their very existence. These disruptions are like black swan events which no one can forecast or plan for in advance. They arrive on the horizon suddenly and upset the status quo, often requiring a rearrangement of how the business functions and manages its supply chain in the future.

What Global Disruptions does the Supply Chain need to be aware of?

Globalization has added a layer of complexity to business operations. Now businesses have to keep an eye on what’s happening around the world and be able to identify possible threats to their business in all the countries that they operate in or source raw materials from.

Natural Disasters:

Natural disasters are the most common global disruptors. Wildfires, earthquakes, hurricanes, storms, and floods can interrupt regular operations for a long time in the country that they happen in. It can take years to rebuild factories and get them operating at optimum capacity. For example, according to reports, the 2011 earthquake and Tsunami in Japan had caused grave damage to infrastructure and manufacturing facilities in the country. Given the wide scope of Japanese companies’ operations, the impact of the earthquake and Tsunami was felt by their business partners around the world.

Political and Trade Relations:

Cordial political and trade relations amongst the governments of the originating country and the nations that the organization wants to do business are a must for smooth operations. If there’s any change in the relationship either political or trade, it can become difficult for the business to carry out its business activities without disruptions. A recent case in point is the ongoing trade war between China and the US. This has not only soured relations between the two nations but has also created a tumultuous situation for other nations involved in international trade with the two countries.

Similarly, an unfavorable change in foreign trade policies – without the threat of a trade war – due to political fallout or change in the growth strategy can make it hard for foreign businesses to sustain long term in the country.

Economic Factors:

Another factor that can derail supply chains across the globe is an economic recession. If any of the major economies of the world like the US, China, Germany, India, France, and the UK experience an economic downturn it is bound to impact the nations that it does business with. A major economic failure can also lead to a global recession like the 2008 global recession which led to many businesses closing shop or limiting their reach to certain geographies only.

Cyber Threats:

Since digitalization and technology have become an integral part of the supply chain, another threat that can cause great damage to not only the business but also customers are cyber attacks. These attacks on technology and systems can impact a business’s reliability, trustworthiness, and endanger the trade and even personal data.

Unlike the regular supply chain disturbances, these threats are unforeseeable and due to their unpredictable nature, not easily manageable. Each event – even if it is of the same kind – requires a specialized and unique response.

The better prepared a supply chain is to respond to a sudden event, the more likelihood of it overcoming the challenge and sustaining its operations. Hence, now more than ever it has become critical for supply chains across the globe to assess themselves against invisible threats and prepare to deal with black swan events as and when they occur.

What can you do to make your supply chain ready to weather disruptions?

While there is no fixed roadmap on how to deal with these kinds of threats, there are a few steps that businesses can take to safeguard their interests and bounce back with minimum possible damage.

  1. Imagine the unimaginable: Organizations now need to think ahead and plan for events that may or may not happen. It is critical to simulate scenarios that can disrupt your business and find solutions to overcome them before these scenarios play out in the real world. Create a contingency plan for what-ifs: for example – what would you do if an earthquake struck your manufacturing facility or if one of your vendors had to temporarily close down business because his unit was in the eye of the storm? Do you have an alternative option? If not, then that’s where you start your planning.
  1. Find substitute suppliers: We have often highlighted the importance of having multiple trusted vendors on board. There’s no better time than now to reiterate this point. Find vendors in different regions when the business and the world is functioning in normal conditions. Try out a few transactions with them and work on building a relationship with them. Access to vendors in different regions can help keep the business running  even if there’s some disturbance in one region or country. This will enable you to keep your supply chain functioning.
  1. Build alternative service providers and business partners: It’s not just the suppliers that you need to keep your supply chain up and running. Along with a roaster of trusted suppliers you also need to build a repository of other service providers and business partners such as transporters, shipping lines, warehousing facilities in all the regions where your business operates. This is critical because if you have to shift your business from one sector to another due to some contingency, you will know who to hire and partner with.
  1. Identify the pain points of your supply chain: No business or supply chain is perfect. Some have a strong inventory management system but a poor relation with transporters. Others have a rigorous forecasting procedure in place but struggle with people management or may have customer issues. Any of these weak points have the capability to be further aggravated during an emergency. Hence, it is critical to know the pain points of your supply chain and work on finding viable solutions.
  1. Make data security a priority: In the current scenario where technology is a part of every function and system within an organization, data security has become critical. It’s not just your business data that is at risk, but also the information that your customers and vendors share while doing business with you that is in danger. Even a small breach of data can put your and your customers or business partners at risk. So make technology and systems audit an integral part of your organization.
  1. Learn from past disruptions: Maybe the earthquake in Japan did not impact your business or the hurricane Katrina did not affect your region, but it did cause damage to other businesses and regions. Observe what they did to get their business and supply chain up and running. Find out what were the difficulties they faced, learn from them, and find solutions for such situations that are viable for your business.
  1. Analyze, Analyse, and Analyse: We can’t emphasize the importance of carrying on an ongoing analysis of your supply chain. This is the only way where you can not only find out the risk to your business, but also identify threats and challenges, and work on solutions to mitigate them before they become unmanageable.

Will the analysis help in mitigating risks from black swan events? If you keep these threats in mind while conducting analysis, then it will help build awareness among your team and urge them to work on finding viable solutions.

If you need any assistance in starting your supply chain analysis journey, then get in touch with our team of experts today!

Trucking Isn’t Going Away Any Time Soon

There is absolutely no doubt that we have entered into a new era of technology. As computing is getting more powerful, many technologies that were once science fiction are now either on the horizon or already here. Artificial intelligence, machine learning, and automation are three of the biggest hot tech topics out there.

While there is certainly a potential for job loss as this technology reaches maturity, that’s not likely to happen any time soon.

Of course, whenever new tech starts to hit the market, there is speculation as to what it means for the already existing framework of our reality. In this case, what do automated vehicles and AI mean for the truck driving industry? Currently, truckers move over 70 percent of all U.S. freight, by weight. The speculation is that we’ll see some 2-3 million jobs fall to the wayside as a result of emerging tech over the next few years. While there is certainly a potential for job loss as this technology reaches maturity, that’s not likely to happen any time soon.

According to the study: Industrial and Labor Relations Review, there is always a measure of attrition in terms of job loss when a new technology is introduced to an industry. However, there are three key reasons why truck drivers won’t be going away any time soon.

There’s More to Trucking than Just Driving

While it might seem like a truck driver has a fairly simple job of driving the truck from point A to point B, there’s a lot more to it than just that. Truck drivers also perform a number of other tasks in their daily routine. Everything from checking the status and upkeep of their vehicle and securing cargo, maintaining logs and invoices, and perhaps most importantly, customer service. While some of these tasks such as logs and vehicle status might be automated in the future, the technology isn’t there yet and some of those tasks aren’t even close to being ready for automation. For example, a smart sensor in the truck might be able to detect an imbalanced load or a flat tire, but it falls to the driver to fix that issue before rolling on down the road.

Customer service is also an incredibly important task of the truck driver

Customer service is also an incredibly important task of the truck driver, especially when you consider that customer service is one of the key distinguishers between companies today. Service needs a face, a smile, and a friendly voice and it’s that human interaction between the driver and the company that provides those necessities.

Fully Autonomous Trucks are Still on the Horizon

Just looking at the task of driving itself we can see that there are still quite some ways to go before trucks no longer need a driver. The Society of Automotive Engineers has developed the current standard to define automated vehicles on a scale of 0 to 5 with 0 being no automation and 5 being a fully automated and capable self-driving vehicle. Obviously, the amount of necessary human interaction/control goes down the higher up you go in the scale.

In fact, there tends to be a bit of sensationalism when it comes to headlines for automated vehicles. What we end up seeing is the full level 5 tests being touted as broad-scale implementation. These tests are very rare and conducted under carefully controlled conditions. In actuality, what we will see is somewhere between levels 2 to 3 where a human driver’s capabilities are augmented by robotics and automation. For example, the autonomous drive feature could take over for highway driving but for rural or city driving, it would be under human control.

Assume for a moment that level 4 automation was target for the trucking industry, how many jobs would that actually affect?

“Most of this development is focused on automating the long-haul/interstate portion of a truck trip, not short haul or local truck moves. We estimated the proportion of trucks in the U.S. that are used for long hauls, using the Vehicle Inventory and Use Survey (VIUS), last updated in 2002,” says an article from HBR.

“According to our computations, roughly one-quarter of all heavy trucks are used in long hauls of 201 miles or more, compared to roughly half of all heavy trucks used in relatively short ranges of operation (50 miles or less). Given that truck automation is currently targeted at these longer hauls, we are looking at potential job losses for roughly one-quarter of heavy truck drivers, or about 450,000 drivers, as the technology becomes more sophisticated and reliable over time and as regulatory obstacles are overcome,” HBR adds.

That is still a fairly significant number, but it is far from the millions of jobs lost that is being predicted now.

There’s Actually Fewer Drivers than People Think

Many of the sensationalized articles that are proclaiming the untold job loss at the hands of automation are also exaggerating the actual amount of human truck drivers employed in the United States. Most of the articles put the number around 3 million drivers when, in fact, that number is quite a bit smaller, meaning there are less jobs that can be lost due to the “total automation” scenario.

The federal government’s Standard Occupational Classification (SOC) system has a category called “Drivers/Sales Workers and Truck Drivers”, which is then divided into three smaller groups: “driver/sales workers”, “light truck or delivery services drivers” and “heavy and tractor-trailer truck drivers.”

The total pool employed within the broad heading is where most of these articles are getting the 3 million driver figure from. However, many who fall under one of these employment categories aren’t actually drivers or, if they are drivers, don’t fall under the risk of job loss due to automation.

Truckers Will Stay on the Road

Even if the technology for consistent level four technology was here, there would still be a heavy amount of government regulation to get through in order for it to be fully adopted throughout the industry. As there are so many variables to consider, there would likely need to be a massive infrastructure change for trucks to reach a level of autonomy that would completely remove human drivers from the picture.

It is fair to say, however, that as the technology continues to develop, we’ll likely see the amount of human drivers start to change roles.

It is fair to say, however, that as the technology continues to develop, we’ll likely see the amount of human drivers start to change roles. Instead of being phased out entirely, we’ll likely begin to see re-skilling of drivers into a different role that will continue to support the trucking industry. In light of all the challenges the industry is already facing, this could be a turn for the better.

Shippers Growing Success With 3PLs 

The 24th Annual Third-Party Logistics Study for 2020 has been released and it shows a growing success between shippers and their 3PL partners. 

“The majority of shippers, 93%, report that the relationships they have with their 3PLs generally have been successful. A higher number of 3PLs, 99%, agree that relationships have generally been successful,” the study says.  

As 3PLs continue to offer a wider array of services, shippers have been eager to leverage what they have to offer.

The study continues to find that shippers and their 3PL partners are developing a much greater awareness and synchronicity of goals, as well as how data sharing and new technology can help them advance those goals. As 3PLs continue to offer a wider array of services, shippers have been eager to leverage what they have to offer. The result is an optimization of the supply chain, reduced costs, and the creation of overall value within the supply chain.

“This year’s study once again proves that shippers and their 3PL providers are strengthening their relationships and continually moving toward meaningful partnerships. They are collaborating to accomplish their supply chain goals and improve efficiencies. The available evidence confirms that both parties are creating reliable solutions and improving the end-user experience for the customer, which is allowing shippers to use the supply chain as a strategic, competitive advantage.” 

3PLs Are Rising to the Occasion 

Currently, both shippers and 3PLs have been enjoying favorable economic conditions both at home and abroad. That is not to say that it has been a perfectly smooth road as both continue to face challenges in transportation capacity and facility-based resources. However, the relationship has proven to be beneficial to both parties as they’ve worked together to overcome tight customer deadlines and raise both customer and consumer satisfaction levels. 

Another advantage to the relationship between 3PLs and shippers is the ability to adapt to and overcome challenges .

Shippers, of course, have higher expectations of their service providers and third-party providers have responded by increasing not only their service offerings but also their innovations when it comes to overcoming challenges within the current market environment. Simply put, transportation and logistics companies are realizing that the focus needs to be placed on digital capabilities, cost and asset efficiencies, and a broader range of services to meet their customers’ needs.

Current Global Market Challenges

The logistics and freight industry is in a state of flux currently. New technologies, tighter regulations, and growing customer expectations are all forcing necessary changes to the supply chain. According to the 2020 study, here are some of the biggest challenges shippers and 3PLs are facing to date. 

Growth of e-commerce: E-commerce and the “Amazon effect” have had a tremendous impact on brick and mortar retailers. The result is that many of them are branching out into omni-channel marketing and distribution to meet customer needs. This adds a whole new layer to existing logistics and supply chain structures.  

There are both domestic and global economic changes that are putting pressure on supply chains to adapt and react.

Economic uncertainty: There are both domestic and global economic changes that are putting pressure on supply chains to adapt and react. Many of these include sourcing new suppliers and improving cross border relationships with trading partners. There are also signs of slowdowns within certain major global economies which will soften demand and create new challenges for shippers.   

Driver shortage: This problem is not unique to the United States, but it’s certainly one of the most prevalent locations. With the average age of the American truck driver approaching retirement, there is a decided lack of interest in younger generations to get behind the wheel. ATA’s chief economist,  Bob Costello estimates that the current 60,000 driver deficit could reach 160,000 by 2028.  

Disruptive technologies: While disruptive technology breeds innovation within the industry the difficulty of adapting and integrating these new technologies also increases. Some of the disruptive technologies impacting supply chains include the use of drones, autonomous vehicles, cloud-based capabilities, artificial intelligence (AI), internet-of-things (IoT), blockchain.  

While dealing with all the above challenges, there’s also the challenge of keeping pace with the competition.

Competitive challenges: While dealing with all the above challenges, there’s also the challenge of keeping pace with the competition. Especially as there is a new start-up for every day that is poised to disrupt businesses, business models, or even entire industries. This applies to all, trading and manufacturing companies, as well as logistics providers, who are attempting to differentiate themselves from a growing number of startups backed with millions of dollars worth of venture capital investments. 

The take away from the survey is that shippers and third party providers are growing and prospering together.

The take away from the survey is that shippers and third party providers are growing and prospering together. As new challenges arise, shippers are looking to 3PLs for answers, innovations, and solutions. Conversely, 3PLs are looking to build long term and steady relationships with shippers as the number of providers continues to grow.  

With growing uncertainty in the geo-policitical arena, new technologies, and the explosive growth of e-commerce, it’s likely that we will continue to see growth in the relationships between shippers and 3PLs. For more information on how BlueGrace can be the partner to help strengthen and bring visibility to your supply chain, call us at 800.MY.SHIPPING or fill out the form below to speak to one of our experts.

Middle of the Road for the Trucking Industry

Of all the industries that American consumers have come to rely on, perhaps the most underrated, and subsequently complex, is that of the transportation industry. While the laws of supply and demand will affect every form of business it is perhaps the most volatile and fluctuating when applied to the transportation industry. Last year was a great year for trucking companies, demand was high, capacity was low, and it allowed them to more or less pick and choose the jobs they wanted to do.

With so many wild swings in one direction or another, we’re entering a period of “new” balance that no one is quite sure of.

Shippers, for their part, have accepted the higher rates as an understood cost of business, but with so many wild swings in one direction or another, we’re entering a period of “new” balance that no one is quite sure of. Shippers that turned to contracts to escape the high rates are now making a return to the spot market as there’s plenty of available capacity currently on the market.

Aptly put, this “muddy middle” for the trucking department is a rare moment when supply and demand have reached something of an equilibrium, something that hasn’t been seen for years. Spot rates for FTL have dropped upwards of 12 percent from this time last year while contract rates, on the other hand, have climbed up 14 percent in 2018 according to data from DAT Solutions and Truckstop.com. Shippers that turned to contracts to escape the high rates are now making a return to the spot market as there’s plenty of available capacity currently on the market.

Given such a high volume of transference, it might have actually created an overly strong demand on contract rates which would have caused them to increase.

It’s rather reasonable at this point to speculate that the current shift towards the muddy middle was caused by overcompensations. Beneficial cargo owners (BCOs) reacted to the rate spike mid 2017 by shifting over to contract rates. Given such a high volume of transference, it might have actually created an overly strong demand on contract rates which would have caused them to increase.

Going into 2019, carriers and 3PLs were using terms such as “balanced” and “equilibrium” to describe the current state of the market. However, that might not be entirely accurate, or, at least not strong enough of a prediction to hold fast in the days to come.

The transportation industry is precariously balanced amidst two slippery slopes and it could go one way or the other.

“With contract and spot rates currently headed in different directions, it’s unclear exactly how this will all play out. IHS Markit chief economist Nariman Behravesh put the odds of a recession in 2019 at around 30 percent but upped that chance to 50-50 for 2020. A recession would mean lower cargo volumes, which would drive down both contract and spot rates, creating a buyer’s market,” according to an article from the JOC. Hence, the muddy middle. The transportation industry is precariously balanced amidst two slippery slopes and it could go one way or the other.

Hitting Bottom

Given the nature of the industry, balance doesn’t tend to last overly long. Eventually, rates will break either one way or the other to someone’s advantage (or disadvantage depending on your perspective.)

“A lot of shippers who started the process in the third or fourth quarter, they saw the rates [moving] in the right direction for them, so they actually held out on releasing the awards until mid-January or even into February,” said Mark Ford, our very own chief operating officer here at BlueGrace Logistics. “Shippers are trying to figure out where that bottom is, throwing out their routing guides, and going to the spot market depending on the cost differential.”

Shippers aren’t the only one that has a card or two up their sleeve.

Given that time is such a commodity, shippers have the power to drive rates in either direction, depending on what value they attribute to their time. However, shippers aren’t the only one that has a card or two up their sleeve. Given a recent downturn in the trucker pool in addition to more stringent regulations that make it harder to operate, carriers might have a little more say about carrier rates than one might expect.

A Drop In the Trucker Pool

While shippers can garner some power to affect rates, that doesn’t mean that carriers aren’t without an answer. A recent report from the Wall Street Journal states that carriers have cut payrolls by 1,200 jobs last month, owing largely to a softening of demand at the tail of a profit-boosting hot streak all through 2018. The drop in demand for new trucks is also a good indicator of a softening in the trucking sector.

“Orders for Class-8 trucks – the heavy trucks that haul consumer goods, equipment, commodities, and supplies across the US to feed the goods-based economy – plunged 52% in April compared to April last year, to 16,400 orders, according to FTR Transportation Intelligence on Friday. It was the lowest April since 2016 when the industry cycled through its last transportation recession. This comes after orders had already plunged 67% year-over-year in March, 58% in February and January, and 43% in December,” reads a recent article from Wolfstreet.

The flip-side of that particular coin is that warehousing and storage company job positions have been on the rise, up 1,700 in March alone, likely due to the continual increase on online consumer shopping. Same can be said for courier and messenger companies that make last mile deliveries.

In general, the transportation market, which has been ramping up over 2017 and 2018 is beginning to slow down, allowing them to control their overall available capacity and their spot or contract rates as a result.

Utilization seems to be the key to determining which way the rates will go. Shippers should be using this time to consider how they can vastly reduce their load times and what sort of effect that would have on the available capacity in the market. Given that there’s no clear indication of which way the market winds will blow next, focusing on optimization and utilization could be the necessary elements to not only help drive rates down, but to keep them down.

For carriers, the means of reaching a perpetual middle of the road would be to find alternative service offerings as well as increasing their focus on last mile deliveries. Doing so allows them to provide more value to their customers and increase their profit margins as a result.

Navigating Through Industry Changes

BlueGrace helps our customers navigate through the constant changes the industry brings. No matter the situation, we are here to simplify your freight needs. If you have any questions about how a 3PL like BlueGrace can assist, contact us at 800.MYSHIPPING or fill out the form below to speak with a representative today!

Controlling Costs and Preventing Accessorial Loss

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Controlling costs is critical for any business to be successful. When working with a supply chain, the more complex it is, the more chances there are for additional costs and surcharges, any of which can cost your company a great deal of extra money.

They are any freight services that go beyond the normal scope of pickup and delivery.  

Accessorial charges are a particular type of surcharge. They are any freight services that go beyond the normal scope of pickup and delivery. This can include inside or special delivery charges, waiting or detention time, fuel surcharges, storage fees, and many others. Given the way the freight market is changing, especially due to the rise and continual growth of e-commerce, many companies are looking to a more specialized version of last mile delivery as customers want their products sooner rather than later. The “white glove” last mile service, while costly, is growing increasingly important as customer service is becoming one of the last true differentiators among the competition.  

In our webinar, we covered the basics and most common questions of accessorial charges which include:  

  • What are accessorials? 
  • How do they affect cost? 
  • How do they affect supply chain efficiency? 
  • How can we mitigate problems? 
  • How do we know if we have a problem? 

Consumers want their product today, that means that retailers want it delivered, checked in, and on the shelf yesterday.

Logistics and supply chain management has become a very tight game, almost cutthroat in its harsh severity. Consumers want their product today, that means that retailers want it delivered, checked in, and on the shelf yesterday. With the ability to order just about anything a consumer could possibly want from the vast online marketplace, brick and mortar retailers have to run an even tighter ship than they have before if they have any hopes of competing. To that end, some retailers are upping the ante and doling out punishment for shippers who aren’t in compliance.  

WHAT ARE ACCESSORIALS?  

As we mentioned above, accessorials are extra charges associated with freight delivery that fall outside simple pick up and delivery. We gave a few examples above, but those are by no means the only accessorial charges that you could be stuck paying. Here are some other types of common accessorial charges.  

  • Reweigh
  • Limited Access
  • Liftgate
  • Residential delivery
  • Appointment / Notify
  • Sort & Segregate
  • Hazardous Materials

While inaccurate weighing of freight could be a result of an honest mistake, the cost of that mistake can add up quickly.

It’s important to control and monitor as many of these as possible to help control costs. Consider reweigh charges for example. When a carrier weighs freight and compares the actual weight to what’s listed on the bill of lading, the difference can be instantly tacked on to the invoice. For shipments that are 50 pounds or more over what the bill of lading states, there is a $25.00 validation fee as well as an increase to shipping costs. Additionally, all freight fees, fuel surcharge fees, and any other applicable accessorial fees will be adjusted accordingly. While inaccurate weighing of freight could be a result of an honest mistake, the cost of that mistake can add up quickly.

HOW ACCESSORIAL FEES CAN AFFECT YOUR SUPPLY CHAIN  

One way to better control accessorial charges is to have a more efficient and agile supply chain. Detention fees are a prime example of where efficiency pays off. For the LTL market, every shipment has a set amount of free time per stop before the charges start being applied. While this is based on weight, meaning that heavier shipments have more time, it can be hard to gauge just how long each stop is going to take which leaves your company exposed to detention fees.  

Another thing to consider is that the ELD mandate severely limits the amount of working time a driver has available. The longer it takes to load and unload freight can cause delivery delays and will ultimately increase the price of a shipment. Once you start adding detention fees onto the bill it can quickly become more expensive than you were initially anticipating. 

It’s critical to have your supply chain running smoothly and efficiently.

Because of this, it’s critical to have your supply chain running smoothly and efficiently. Not only does it increase the chances that you will make your delivery schedule, but having a more efficient operation makes you a more attractive customer to carriers (which increases the likelihood of getting the capacity you need) as well as helping to control shipping costs.  

LEARN MORE ABOUT HOW YOU CAN MANAGE ACCESSORIAL CHARGES   

When it comes to controlling costs, the more you understand about extra fees the better off you’ll be. Because many of these accessorial charges can compound and complicate others, it’s important to understand the full workings of your supply chain and identify any potential problems before they arise.  

The truth of the matter is that the more you understand your freight and the way your carrier works, the more accessorial fees you can either reduce or negate entirely. Many of these fees won’t even enter into the picture so long as the shipper is taking the time to make sure they’re doing things right. Doing this means preventing the issue before it even begins. On the other hand, if your freight invoice is coming as a bit of a shock, it might be time to take a closer look at the surcharges and determine what you can you do to correct the issue.  

Ultimately, everything we covered in the webinar is about helping your company to manage these fees and perform better across the board. From internal operations to external executions, everything is connected and we break it down for you. Watch the full webinar to learn more about how you can be successful!

There are a number of other benefits that can come from working with and outsourcing your logistics to a 3PL. If you would like to speak to one of our experts, call us at 800.MYSHIPPING or fill out the form below.

Will 2019 Be a Carrier or a Shipper-led Market?

Trucking is a cyclical business. There are periods of intense growth followed by a lull and then there are periodic seasonalities which may vary from one industry to another. How long each period lasts depends on the internal and external factors that greatly impact the trucking industry.

International trade policies and volume, capacity, manufacturing industry’s performance, local Government policies, fuel prices, and driver availability all impact the trucking industry’s growth

International trade policies and volume, capacity, manufacturing industry’s performance, local Government policies, fuel prices, and driver availability all impact the trucking industry’s growth. For example, all of 2016 was a difficult year for trade which also affected the trucking industry. However, when business picked up at the start of 2017 and soared till September 2018, the trucking industry also benefited. From there onwards, trucking growth has been showing a declining trend, suggesting that another slump is in the offing. 

What are the reasons behind this slump? Is it a short term decline or a repeat of the low experienced in 2016?

What are the reasons behind this slump? Is it a short term decline or a repeat of the low experienced in 2016? These are the two questions plaguing the trade and analysts since the start of 2019. 

What Factors are Contributing to The Industry’s Concerns? 

The trade war with China: The standoff between the US and China is being highlighted as one of the main factors that may impact the trucking industry in the country. There is fear of freight volume reducing due to the tariffs put up by the two countries on each other. However, according to Transport Futures Principal and Economist, Noel Perry who spoke to this article in TTNews.com on the decline in trucking growth, this fear might be unfounded. Noel Perry suggests that this problem may not be as severe as it is currently being made out to be. He feels that due to the prevailing state of the manufacturing industry in China, the Chinese may be amenable to work out a compromise with the US. 

Reducing truck orders: A common factor used to judge the health of the trucking industry is the number of orders placed for new trucks. According to industry news sources, the orders for new trucks has fallen considerably in January 2019. However, while sharing the numbers, Truckinginfo.com also puts forth a plausible explanation for the reduction in new orders. According to the news in Truckinginfo.comorders reduced by 26% in January 2019 as compared to December 2018 and were 68% less than the truck orders placed in January 2018.

Going by this forecast, it is quite possible that the transport sector may also experience a slow year.  

Economic growth slowdown: 2019 began with some concerns regarding the growth of the economy. In a Wall Street Journal article published in January, leading financial institutes shared their forecast for the year. Goldman Sachs predicts a growth rate of 2% for the first 6 months of the year and a rate of 1.8% for the rest of the year. Morgan Stanley presented a slightly more pessimistic view with a forecast of 1.7% growth rate for the year which could go down to 1% for the third quarter. The article also shares a quote from Jake McRobie, Economist, Oxford Economics, “We have been looking for a gradual slowdown in manufacturing activity amid headwinds from trade uncertainty, reduced fiscal stimulus and weaker global activity, but the risks of a sharper deceleration have increased”, to provide some explanation for the low growth forecast. Going by this forecast, it is quite possible that the transport sector may also experience a slow year.  

Even if one is to consider the lower number, the driver shortage is a critical issue.

Driver shortage:According to this piece in JOC.com, the American Trucking Association found a gap of 50,000 drivers and the FTR Transport Intelligence has reported a shortage of 300,000 drivers. Even if one is to consider the lower number, the driver shortage is a critical issue. The article further highlights that hiring companies are finding it difficult to get drivers onboard even after offering a pay increase. This is one aspect that can hamper the supply chain even when all other factors seem to be positive. 

The Silver Lining

Even the worst of situations tend to have a silver lining, so does the trucking slowdown. While the cost of operating and maintaining trucks is not likely to come down, the slump in business and the extra capacity built over the last two years may provide the shippers with a little leverage when negotiating freight rates. 

Apart from the driver shortage, all other reasons leading to fear of a trucking slump are a part and parcel of the dynamic global business environment. As FTR Vice President of Commercial Vehicles, Don Ake suggests the lull in business is felt because the industry is comparing the exceptional peak experienced in 2018 to the current scenario.

Hence to get the best results irrespective of the prevailing trade cycle, it makes business sense think strategically, collaborate and maintain relations with well-established business partnerswho can help manage volatility in the current business environment.

That said, the freight market is fickle in nature and can unexpectedly turn into a carrier-led market from a shipper-led market and vice-versa. Hence to get the best results irrespective of the prevailing trade cycle, it makes business sense to think strategically, and collaborate and maintain relations with well-established business partners, like BlueGrace, who can help manage volatility in the current business environment. If you would like to speak to one of our freight experts, call 800.MYSHIPPING or fill out the form below.

How to Build an Effective Logistics Communication Process  

Communication is a vital aspect of building a successful business. An effective communication process ensures that information flows seamlessly between departments and amongst the various teams on time and in a form which will allow them to achieve individual, departmental, and organizational goals and objectives.  

While communication in varied forms and frequency is essential for all departments, it is extremely crucial for the executors of the organization’s plans and strategies – the Logistics Department. 

Why is communication important for Logistics  

Information interchange plays an important role in creating a cost-effective and agile logistics management process. It ensures that tasks are completed and transferred from one point to the other seamlessly and without delay.

For example, the sales department needs logistics data to analyze orders that have been shipped, customer service needs information to update shipment status, and the accounts section requires the data to cross-check transporter invoices. The procurement team needs information from logistics when new vendors are to be hired or old contracts are due for renewal. The other functions of the supply chain also have to collaborate or communicate with the logistics team to get their work done.  
 

In addition to the internal information requirements, vendors such as carriers, warehouse operators, and 3PLs also need to exchange information with the logistics team on a daily basis to ensure that the company’s products are delivered at the right time to the right place at the right cost.  

What are the features of an effective communication process for Logistics?

It should be in writing: Written communication is important as it minimizes the scope to misinterpret or forget the message. Today, written communication is the most common form of business communication. Since emails and all forms of messages across multiple platforms can easily be sent to multiple recipients situated across offices, countries, and continents, it is essential for all professionals to develop effective written communication skills and to encourage the same in all employees.

A clear, concise, and consistent message is the hallmark of effective communication.

It should follow the 3 C’s: A clear, concise, and consistent message is the hallmark of effective communication. A clear message ensures that there is no ambiguity in what needs to be conveyed. Conciseness ensures that the message is brief, but includes all important information. And, consistency in language, format, mode of delivery ensures that the receiver does not waste time in understanding the message.  

In logistics, given the fact that a lot of the work is time-bound, marking the right team or person on the email is of utmost importance.

It should be sent to the right recipients: More often than not information is lost in the organizational hierarchy because it is not addressed to the right person. In logistics, given the fact that a lot of the work is time-bound, marking the right team or person on the email is of utmost importance.  
 
It conveys urgency appropriately: Many executives are in the habit of marking all their emails as “urgent” to ensure that it gets immediate attention from the receiver. While this practice is great to ensure that important and critical communication does not get missed, however, if all communication is urgent, it becomes difficult to prioritize tasks. It also dilutes the meaning of the word. In such instances, the receivers take up the tasks in the priority that they think is correct. Hence, it is crucial to mark only communication or tasks that are the top priority as urgent and not all communication.  
 
It should provide clear timelines: The delivery or timeline for getting a response or the task being assigned should be clearly mentioned in the communication. This will help the receiver gather information, plan, and execute the requirements mentioned in the message and avoid unnecessary delays.  
 
It should be transparent and reliable: Interdepartmental conflicts, organizational politics, and cutthroat competition encourage employees to keep information from their counterparts or colleagues. This creates chaos, confusion, and mistrust which in turn affects the execution of tasks. It is thus important that the organizational culture promotes transparent communication and sharing of reliable information.  
 
It should be real-time: Logistics is a fast-paced function and information exchange also needs to be equally quick. Hence, information such as a change in freight rates, loading lists, customer orders, etc. needs to be verified and relayed to the next person as soon as it is received. Apart from these things, queries asked in relation to a task or process should be addressed promptly or the receiver should at least provide a timeline by when the sender may expect an answer. 

Technology Integration: In this digital age, just getting the written communication right is not enough to ensure the successful implementation of business plans. Organizations must also integrate the technologies, backend systems and processes that are used by different departments to ensure that information flows seamlessly and without manual intervention from one function to another. 

For logistics which is an intensely data-oriented function, this integration is crucial.

For logistics which is an intensely data-oriented function, this integration is crucial. It will help reduce manual data entry, delays due to incorrect system entries, and speed up the process. Digital records of all the transactions or logistical activities will also make it easier to get reports, analyze performance, find outliers, and standardize the process across different geographies and vendors. When designing or buying technology or outsourcing the process to a vendor, it is essential to understand if this technology will be able to integrate with other systems that your organization uses with ease and at least cost.

An organization’s logistical communication process can be complete only when all the above elements are present and interlinked via common technology.  

BlueGrace’s proprietary TMS (Transportation Management System) is designed to put the power of easy supply chain management and optimization back in your hands. BlueShip® 4.0 offers cutting-edge tools for strong reliability and quick performance. Many of our customers prefer to integrate their systems or ERPs such as SAP or NetSuite directly with our BlueShip platform. Our IT integrations team will work closely with your staff to complete the connection between systems. Not only will this simplify your freight but it will provide mountains of usable data to build measurable KPIs and continuously improve your program. To speak to a BlueGrace expert, contact us at 800.MYSHIPPING or fill out the form below.

What will 2019 bring for the trucking industry?

What will 2019 bring for the trucking industry? Will there be a capacity crunch, demand – supply imbalance? Will the rates increase or will they remain steady? What would be more cost effective – booking spot rates or negotiating contract rates? How will the changes in the trucking industry impact a shipper’s business?

Knowledge of the existing trends can also provide insight into what one may expect from the trucking industry in the coming year.

As the new year begins, all these questions and many more are on the minds of shippers. While no one can accurately predict the changes in the business environment or how the trucking industry will respond to those changes, deliberation on the current year’s performance can help form a more reasonable line of thinking. Knowledge of the existing trends can also provide insight into what one may expect from the trucking industry in the coming year.

Here’s a look at some of the crucial parameters of the trucking industry that can impact shippers.

Rates: According to an article in Logistics Management, the US trucking industry showed a rate increase at 6.2 percent. Long distance full truckload rates showed a growth rate of 7.8 percent in the first half of the year. Less-than-truckload rates increased at the rate of 7.4 percent. The report forecasts a rate increase of around 3.6 percent in the coming year.

A JOC.com article stated 3 differing opinions of what one can expect from the trucking market in terms of rates. It has a bullish rate increase prediction between 5 to 8 percent, a bearish rate hike forecast between 0 to 3 percent, and a median rate increase prediction in the range of 3 to 5 percent.

While there isn’t a consensus on by how much the rates could increase, given the forecasts, shippers might fare better by building in at least the average rate increase in their trucking budgets for the coming year.

While there isn’t a consensus on by how much the rates could increase, given the forecasts, shippers might fare better by building in at least the average rate increase in their trucking budgets for the coming year. These predictions and forecasts can also help them better negotiate their rate contracts with trucking companies or 3PLs.

Capacity: This is the holy grail of the trucking industry for both the truckers and the shippers. Availability of drivers and vehicles, manufacturing industry’s performance, and legal compliances laid down for the industry all have a bearing on carrying capacity. Capacity, in turn, has a strong impact on the rates. When there’s a capacity crunch, rates increase. When it is in surplus, rates decrease.

This increase in trucking volume may lead to capacity constraints in the coming year.

For 2019, according to this article in Reuters, the American Trucking Association (ATA) predicts a 2.3 percent increase in trucking volume every year from 2019 to 2024. This increase in trucking volume may lead to capacity constraints in the coming year. A contradicting view presented by JOC.com and Freightwaves.com, says that while earlier in the year, trucks utilization was at its full capacity, it has come down to 94 – 95 percent. The trend is expected to continue at the start of 2019.

The Freightwave article also points out that the capacity might also be influenced by the availability of drivers rather than the availability of trucks. So even if the vans are available, a shortage in capacity may be experienced due to the lack of drivers.

Given the unpredictable nature of the industry, for shippers who have regular freight, it would make better business sense to work with 3PLs or professional trucking companies instead of individual truck contractors or vendors with smaller fleets to avoid getting short supplied in the event demand increases.

The Economy: How the economy performs has a huge impact on the transportation industry. According to the GDP forecast shared at the Federal Open Market Committee meeting, as reported by The Balance, the GDP is expected to be 3 percent in 2018. In 2019 and 2020 it is predicted to be slightly lower at 2.3 and 2 percent respectively. The fall is being considered an outcome of the ongoing trade war with China. The trade war has also created some skepticism in the freight market.

However, the release also forecasts a decent growth rate for the U.S manufacturing sector. It pegs production to increase at 2.8 percent in 2018. A slight decrease in momentum in growth is projected in 2019 and 2020 with rates at 2.6 and 2 percent respectively. Even if the manufacturing growth rates slow down slightly, it is not expected to have too much of a negative impact on the local freight market.

The other trend that seems to be picking up and is expected to continue is shorter distance freight movement.

Apart from these factors, the other trend that seems to be picking up and is expected to continue is shorter distance freight movement. According to this article in Freightwaves.com which quotes Bob Costello, Chief Economist, ATA, “the average length-of-haul for dry van truckloads fell to just around 500 miles for the year-to-date period, down from an average of 800 miles in 2005”. The article highlights that this trend is being attributed to shippers basing their fulfillment centers nearer the customers.

Going by the reports and views expressed by industry experts, 2019 seems to look positive for the industry vis-a-vis economic performance and rates. Shippers may fare better by factoring in a freight rate increase. For both the vendors and the shippers, there may however be some ambiguity on capacity as it is to an extent dependent on the trucking industry’s capacity to attract professional drivers to fulfill the current shortage.

For a 3PL perspective on 2018 and what to look for in 2019, join us on February 20th at 2pm for our FREE 20 minute webinar, STATE OF THE (LOGISTICS) UNION . We’ll discuss the major concerns for shippers entering 2019, and what the next frontier in transparency will be. Click HERE to sign up today!

You can also speak to one of our experts and find out more about BlueGrace by filling out the form below or contacting us at 800.MYSHIPPING

Adam Blankenship, BlueGrace CCO, Talks Logistics With WFLA 970

On January 10, 2019 Adam Blankenship, the Chief Commercial Officer for BlueGrace Logistics was invited to share his thoughts on logistics, leadership and what make our industry tick with host Ryan Gorman at WFLA 970 in Tampa, Florida. Adam was able to give an overview of what BlueGrace does for our customers everyday and how a 3PL helps shippers decrease their freight costs and streamline their supply chain.

Listen to the podcast below to find out more about BlueGrace, what we do, what we believe in and how we are hiring in 2019.

Listen to “CEO Spotlight – Blue Grace Logistics” on Spreaker.

Urban Logistics is Growing

We are witnessing one of the most interesting times in the development of logistics. Shippers and Carriers alike are working towards creating, innovating, and performing all out (and much needed) overhaul of the way we look at delivering packages.

Online and legacy retailers both are encouraged to work with their logistics partners to not only overcome the upcoming challenges but to find bold new approaches to compete as well as survive.

While every step of the process is certainly important, shippers and carriers have been placing a greater emphasis on the last mile of the delivery. And why not? It’s projected that by 2030 more than 600 million more people will be living in urban environments where standard delivery via truck may not be an option. Couple that with the booming growth of online retail sales (e-commerce) and the last mile not only becomes a crucial element for distribution but it’s also a differentiator from the competition. Online and legacy retailers both are encouraged to work with their logistics partners to not only overcome the upcoming challenges but to find bold new approaches to compete as well as survive.

Deliveries are no longer about a simple A to B route. Urbanization has seen to that. With more people living in much more crowded areas, the complexity of deliveries is growing exponentially.

Freight movement across all modes are projected to grow by approximately 42 percent by 2040.

According to the DoT, “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.”

Growing Trends in Last Mile Deliveries

“Shortening the Last Mile: Winning Logistics Strategies in the Race to the Urban Consumer” was a white paper compiled by DHL and Euromonitor which has identified four growing trends that are shaping urban last mile transportation.

  • Localized Delivery
  • Flexible Delivery Networks
  • Seasonal Logistics
  • Evolving Technology

In addition to highlighting these trends, the paper also explains ways that companies can begin to embrace these new tactics and adapt their supply chain to the changing market while growing their competitive advantage.

There must be more public and private sector coordination in freight planning.

“‘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)

Growing Challenges

The white paper found that major urban settings can cause a variety of challenges for distribution including cost, decreased quality of service, as well as overall organizational strain.

Seasonal growth is a good example of this. Not only are major holidays a heavy load time for logistics but many stores run various promotions throughout the year which require extra personnel. The only issue being, these short-term surges in volume aren’t nearly as easy to predict.

“Urban customers’ demands for speed and convenience are forcing retailers to overhaul their warehousing networks, replacing centralized networks with local fulfillment and distribution infrastructure, which can require a more accurate balancing of inventory,” says DHL on the matter.

The Growing F.A.D

With the importance of urban and last mile deliveries growing, how can companies best take advantage these growing trends to overcome the impending challenges as well as stand out from the rest of the competition? In order to be more competitive, efficient, and an overall more successful company the DHL study suggests applying the F.A.D strategy which they described as the following:

(F)lexible or more elastic transport networks can include the more efficient use of available transport capacity in a market, to achieve higher load factors, bring down costs, connect more quickly to end customers, and reduce environmental impact, but can also imply the ability to move shipments more easily between different modes of transport such as bicycles and vans to improve connectivity.

(A)utomation can include a higher level of automated processing at fulfillment centers, but also the deployment of autonomous vehicles and robotics to bring down labor costs, increase productivity, and enhance services.

(D)ata management enhancements allow retailers and their logistics operators to better forecast and position inventory to reduce waste within their supply chain and achieve better availability of stock. It also provides greater visibility on inventory and transport flows, allowing logistics operators to more effectively manage routing and exceptions, and providing tracking to enhance the customer experience.

There is some variance as to which sectors you’ll need to place more time and energy into.

Now there is some variance as to which sectors you’ll need to place more time and energy into. “Effectively, not all three elements need to be managed as actively or invested in as equally.

Different markets, commodities, and operating environments, as well as competitive pressures, may require prioritization of one particular focus area over the others, or a more substantial investment in certain focus areas at the expense of others. For example, if courier shortages are the most pressing issue for one company, that company would need to funnel resources into making its networks more flexible and likely consider automating some of its processes as well. However, another company may be facing increasing pressure from its customers to narrow the delivery timetables offered to them, incentivizing management to consider investing in a data system with AI capabilities to help predict the most efficient windows,” says DHL.

Not only urban consumers, but all consumers will continue to demand solutions that make life both easy and convenient.

Not only urban consumers, but all consumers will continue to demand solutions that make life both easy and convenient. When it comes to their expectations cost, convenience, and flexibility will all be important factors to both the relevance and success of e-commerce companies, as well as transportation companies who will continue to haul the growing industry along.

At BlueGrace, our proprietary technology is designed to put the power of easy supply chain management and optimization back in your hands. Many of our customers prefer to integrate their systems or ERPs such as SAP or NetSuite directly with our BlueShip platform. Not only will this simplify your freight but it also provides usable data to build measurable KPIs and continuously improve your program. To speak to one of our experts, call us at 800.MYSHIPPING or fill out the form below.

Your Role in the Digitally Dominated Future

In 2018, the world is more connected than it has ever been before. With the advent and popularization of smartphones, we are able to instantaneously make connections all over the world in ways unimaginable just 20 years ago, before we knew the names Facebook, Twitter, and Amazon.

Today, these platforms not only heighten our social connections, but also our trade connections. With access to a smartphone and Wi-Fi connection, any individual almost any place in the world is able to participate in the international conversations on platforms like Twitter and receive goods purchased on e-commerce sites like Amazon within a matter of a couple days or in some cases hours.

With this increased connectivity, a new demand for trade between merchants and consumers all over the world has spiked

With this increased connectivity, a new demand for trade between merchants and consumers all over the world has spiked. Where such trade used to be dominated largely in a wholesale/business-to-business domain, now thousands of smaller merchants endeavor to connect more directly to their niche markets, utilizing platforms like Alibaba and Amazon.com to do so, increasing demand for companies, like BlueGrace, to handle the logistics.

Growing Pains

While the digital age is exciting for many reasons, it also means that there will inevitably be growing challenges, for individuals and companies alike; for companies, as they try to re-work the supply chain to accommodate a change in the trade landscape, and for individuals, as they arm themselves with skills and information to be competitive in a digitally dominated present and future.

with an evolving market, dynamic, data-driven, third-party logistics (3PL) companies like BlueGrace are in increasingly high demand, for their ability to navigate a changing trade landscape and help shippers optimize their operations processes.

Traditional logistics companies that once facilitated movement of commerce through the supply chain with standard practices slowly formed over a long period of time to support traditional commerce, many of which are still relevant to this day. However, with an evolving market, dynamic, data-driven, third-party logistics (3PL) companies like BlueGrace are in increasingly high demand, for their ability to navigate a changing trade landscape and help shippers optimize their operations processes.

As we stand at the precipice of this modern trade revolution, the next generation of the U.S. workforce is being encouraged to be strategic about how they position themselves in order to stay competitive in the digital future

As we stand at the precipice of this modern trade revolution, the next generation of the U.S. workforce is being encouraged to be strategic about how they position themselves in order to stay competitive in the digital future – a future that will look quite different from their parents’ generation’s youth. Technology companies are constantly making advancements in innovations like Artificial Intelligence (A.I.), Internet of Things (IoT), and blockchain, which are all being applied to automate and optimize traditionally manually operated processes, making manual labor jobs, spanning across industries, obsolete. But the result will be more of a shift in demand toward different kind of jobs and skill sets.

The Light at the End of the Tunnel

Before you fall into a depression about the future of jobs for the younger generation, take a look at the data from the “2019 Third Party Logistics Study: the State of Logistics Outsourcing,” which shows that though there is an increasing prevalence of automation, there are is increasing demand for individuals that understand how to strategize by utilizing such technological advancements, especially when it comes to the supply chain management industry.

There is a new market opening up for a more creative labor force that understands data, risk management, and planning – and due to that forthcoming demand, employers are paying competitive wages in order to attract and keep star employees. According to the survey, companies’ top reasons for looking externally for employees are a need for a new employee skill set to accommodate changes in strategy, updates in technology and innovation, and lack of “bench talent” (or internal employees) to move up into larger roles.

Join us in our excitement for the digital age

Employers at logistics companies like 3PLs are at the front of the pack in serving a new generation of clients that aim to be digitally-savvy by utilizing data to optimize their operations.

BlueGrace is hiring motivated people with unique skills, stimulating goals, and bold personalities to contribute to our diverse team of industry leaders. Our truly rare culture is built upon our team members’ individual strengths and talents, which serve as a rock-solid foundation for collaborative success. Visit our career page HERE to learn more on how to join our team!

Make Logistics Your Strategic Advantage

The November 1977 issue of Harvard Business Review carried an article titled “Logistics – Essential to Strategy”. Citing reasons such as “a decline in the growth rate of domestic markets, large incremental costs of energy, and an increasing emphasis on multinational markets in corporate strategies”, it foretold that logistics will become an essential part of the “corporate strategy of the future”.  

There could not have been a more accurate prediction.  

Today, logistics has become the game changer for both business and the nation’s economy. For businesses, it forms an essential part of the complete product and customer service offering. By enabling the movement of people and commodities from one place to another, logistics has always played a visible part in building the nation’s economy. Now, it is also a significant contributor to the GDP. In 2017 the transportation sector alone contributed 8.9 percent of the country’s GDP.   

Why is logistics gaining so much importance?  

Globalization and the ensuing cut-throat competition has made it necessary for organizations to focus on providing customers with an added incentive to buy from them. Customers are no longer easily pleased. While one can sustain in the business for some time by introducing new variants, it is not enough to keep the buyers coming back for more. At times, even a price difference might fail to attract customers.  Then what can capture the attention of the customer? 

Logistics is the new differentiator.

Now, especially with the increasing popularity of online shopping, customers look for availability of the product at the required time and place followed by quick and timely delivery of their purchases. This demand can only be fulfilled if shippers can get their logistics right. Logistics is the new differentiator.  

What are the benefits of putting logistics first? 

Customer demand: According to a research conducted by Retail-Week, in response to a question on what they expect in terms of delivery, 70 percent of the customers surveyed said they would like to have more flexible delivery options. Statistics from another survey revealed that 56 percent of online customers in the age group of 18-34 years look for same day delivery options. 61 percent of those surveyed said they are willing to pay an additional price if they can get same-day delivery. These statistics clearly highlight the growing importance of why shippers need to pay attention to their logistics strategy, planning, and execution.  

Competition: It is no longer a seller’s market. Very few products or services enjoy a monopoly in the current market scenario. If one store or online shopping portal does not have the product in stock. There are many other options in the market for customers to buy from. So, whether you are an online store or a traditional retailer, if you fail to supply the product at the store when in demand, there’s a huge possibility of losing the customer to the competition. Regular and timely supply can be maintained only if the proper logistics program is in place. 

Given the fact that customers are willing to pay for a premium delivery service, it makes business sense to procure and provide this option.  

Achieving a balance in cost and service quality: Logistics is a cost. More often than not, shippers think that to remain competitive, one must negotiate and procure the lowest rates available in the market. While it is necessary to negotiate freight rates and keep the go-to-market price of the product in control, it is also equally important to understand how too low a cost can hamper the quality of the service. If shippers have insight into where and when they need to provide premium logistics services and where a regular delivery will suffice, they can hire a mix of vendors or negotiate for different service levels with the same vendor. This will help shippers offer the flexibility and choices in the delivery that the customers seek. Given the fact that customers are willing to pay for a premium delivery service, it makes business sense to procure and provide this option.  

Geographical reach: A strong logistics strategy can help you reach wider markets and more customers at the right time. This is especially important if you’re an e-commerce business or a retail chain with branches in different cities. A well-planned logistics system is essential to cater to different geographies and ensure that the product reaches the distribution centers or retail stores in time to fulfill customer orders. If the logistics operation is weak, it becomes difficult and financially unviable to operate a multi-city or an international business.  

If shippers do not take the required effort to understand the logistical needs of their business and plan in advance to procure the services they would need, it can have a negative impact on the business.

Logistics is the core of a business. It is what ensures that your product reaches the intended customer cost effectively and on time. This activity often involves multiple handling points and different modes of transportation. If shippers do not take the required effort to understand the logistical needs of their business and plan in advance to procure the services they would need, it can have a negative impact on the business. If you need help in understanding and building a strong transport management system, contact us at 800.MY.SHIPPING or fill out the form below to speak to one of our freight experts today!

BlueGrace Logistics 2018 in Review

2018 delivered some significant changes for BlueGrace Logistics. From new offices to charity events that helped others in so many communities, our amazing team made this year one to remember. We want to take some time to recap our biggest changes and our best memories of the year. 

CSO, Randy Collack Announces Retirement

Randy Collack, Chief Strategy Officer, has retired this year. Mr. Collack had been with BlueGrace since its inception in 2009. He oversaw several departments as the Chief Strategy Officer, including all Freight brokerage in the Tampa headquarters. Throughout his tenure with the company, Randy was responsible for the growth of the sales and operations departments, and was a critical component of the success BlueGrace Logistics has achieved to date.

We wish him the best in his retirement!

BlueGrace Takes 1st Overall At 2018 SportsFest

WE. DID. IT. In April, our outrageous employees beat 200 other companies and 4,000 other people at SportsFest 2018 and earned the #1 Company title at Corporate SportsFest! Can we get a WOOOO!? Congratulations to all BlueGrace employees who attended and competed in SportsFest 2018. SportsFest is always a wildly successful event that embodies team building, solid competition and fun. Exhausted, but ecstatic, our team returned home victorious and more engaged with both coworkers and customers. We’re extremely proud of our team and their drive to succeed! 

Opening Of Downtown Chicago Office

Mayor Rahm Emanuel joined BlueGrace Logistics to announce the company opening an office in downtown Chicago in May 2018. BlueGrace added 80 jobs at its new location in the iconic Chicago Board of Trade Building. The new office will continue to support the strong growth BlueGrace has accomplished since its launch almost 10 years ago. 

“The market we’re seeing now will be around for quite some time. We need to add a lot of capacity and a lot of professionals,” Bobby Harris, president and CEO of BlueGrace Logistics, said. Chicago “is a rich source of talent and resources, whether it’s truckload capacity or sales reps.”

Cats vs Dogs Raises 64,000 Pounds Of Food for Humane Society

Each year, BlueGrace female (Team Cats) and male (Team Dogs) employees compete against each other to see who can collect the most amount of pet food in total pounds. The food is then donated to a no-kill shelter to feed homeless animals in the community and used for pet owner assistance programs that benefit homebound and elderly residents on a fixed income. This year, the employees of BlueGrace collected over 60,000 pounds of food between Tampa & Chicago – reaching a new record for the contest on a location-wide scale.

The BlueGrace Webinar Series Is Introduced

BlueGrace began our new webinar series in February of 2018. With that announcement came 10 highly attended Webinars that offered valuable information from industry experts regarding everything from capacity issues, to freight data usage and visualization. Every attendee is offered a Free Supply Chain Analysis, utilizing BlueGrace’s proprietary data analysis tool, Vision. For a list of upcoming Webinars Click Here. Thank you to all that have attended in 2018!

CEO Bobby Harris Joins NUTC BAC

BlueGrace Logistics proudly announced that Founder and CEO Bobby Harris was welcomed as the newest member of Northwestern University Transportation Center (NUTC) Business Advisory Council (BAC).

Harris joined an esteemed group of senior-level business executives representing all modes of transportation. They meet regularly to discuss the latest NUTC research and to consider solutions to the economic, technical and social problems facing national, local and global transportation systems.

15,000 School Supplies

Each year, more and more children are sent to school without the materials needed to be successful. BlueGrace Logistics partners with local organizations to assist in helping that need with their “Backpacks of Hope” drive. The drive divides each office into teams who then compete to collect the most supplies. The winning team wins simply bragging rights or a fun prize of no monetary value, but the competition as well as desire to help those in need truly push the drive to success each year.

BlueGrace’s headquarters in Tampa, FL has partnered with Metropolitan Ministries for many years, and as the company has grown and added regional offices throughout the country, these offices have found local organizations and schools to partner with as well. Together everyone was able to donate a total of 15,381 supplies and 1,157 filled backpacks. 

Bobby Harris Named One Of Floridas Most Influential Business Leaders

BlueGrace Logistics CEO Bobby Harris was selected as one of Florida’s Most Influential Business Leaders on the Florida 500 – Florida Trend’s roster of the state’s 500 most influential business leaders spanning across more than 60 business categories and economic sectors.

The Florida 500 list is the product of a year-long research initiative by the editors of Florida Trend resulting in a personal, engaging look at the state’s most influential business leaders across major industries. The 500 executives were selected based on extensive contacts in regional business circles, hundreds of interviews and months of research, culminating in a highly selective biographical guide to the people who really run Florida.

Bobby is one of just 18 Transportation Executives chosen on the prestigious list of top business influencers throughout the entire state of Florida.

BlueGrace Logistics Becomes 6-Time Inc. 5000 Honoree

BlueGrace Logistics joined Inc. Magazine’s “Hall of Fame” as a 6-time Inc. 5000 Honoree. In 2012, BlueGrace was #20 on the annual list that ranks the fastest growing private companies in America – with 7,378% growth in just 3 years! Seven-Time Honoree, here we come!

BlueGrace Logistics Continues Chicago Growth Trajectory

BlueGrace is boosting its downtown presence from 8,000 sq. feet to 15,000 sq. feet and will grow its Chicago workforce from 40 current employees to 150 when the Board of Trade expansion is complete. BlueGrace also has an office in northwest suburban Itasca, where 60 employees are based.

The company’s prime Chicago Loop location matches perfectly with BlueGrace’s aggressive hiring approach aimed at attracting young sales professionals.

Here’s To An Even Better 2019!

We are so proud of how BlueGrace has continued to grow, prosper and help others in 2018! Thank you to all employees, partners and vendors for another successful year, and we look forward to a bigger and better 2019.

The Fine Line Between Deregulation and Operation

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When it comes to regulations in the trucking industry, it’s something of a mixed bag. On an economical standpoint, the Motor Carrier Act of 1980 has given the industry free reign. On the other hand, the trucking industry is perhaps one of the most heavily regulated sectors in terms of safety, environmental protection, driver standards, and others.

the Trump administration is also reconsidering some of the regulatory strangleholds the government has over trucking and is leaning in favor of the truckers.

The Trump administration has also been a mixed bag for the industry. For shippers and manufacturers who rely on goods sourced from foreign goods, the tariffs and escalating trade war have made for a bout of white-knuckled planning. However, the Trump administration is also reconsidering some of the regulatory strangleholds the government has over trucking and is leaning in favor of the truckers. “This administration is looking at the regulatory environment a bit differently,” says Mark Rourke, executive vice president and COO of Schneider, the nation’s second largest truckload (TL) carrier. “We’re not seeing a lot of activity with new regulations.”

With President Trump now beyond his midterm, it’s worth taking a closer look at the regulatory environment surrounding trucking. There’s a fine line between too much regulation and not enough. While reducing regulations might make trucking companies more efficient, they could also encourage some unsafe practices. The tradeoff to that is that with more regulations, efficiency drops and rates go up, with shippers picking up the tab, of course.

Hard Hitting Regs

Of the numerous regulations that are out there, there are some that stand out more than others. The biggest of them include the Electronic Logging Device (ELD) the Hours of Service (HoS) and the age restriction that locks out aspiring truckers under the age of 21.

Given that the mandate has also begun to tighten capacity even further, it also encourages shippers and carriers to work more closely together in order to increase operational efficiency.

The ELD mandate has been one of the hardest to deal with this year and has caused a great deal of productivity loss for shippers as enforcement went into full swing. While it was originally intended to keep truckers honest on the HoS ruling by removing paper logs it hasn’t been a smooth transition. “After months of issuing warnings, state enforcement personnel began issuing stiff fines for HOS violations last spring. The result, executives say, is between 3% and 8% lost productivity due to the elimination of cheating,” according to Logistics Management. Evening out the playing field with ELDs does have some advantages. It encourages carriers to plan routes more efficiently so as to make their deliveries on time, this is especially important when you consider that some companies are threatening penalties for tardy drivers. Given that the mandate has also begun to tighten capacity even further, it also encourages shippers and carriers to work more closely together in order to increase operational efficiency.

Fine Tuning the HoS

While it has taken some time, ELD compliance has reached almost 99 percent across the entire industry. The biggest gripe truckers have, however, isn’t with the ELD but with the Hours of Service ruling. This is especially true for agricultural, seasonal deliveries, logging, and other select commodities.

With that being said, Washington is looking to tweak some of the HoS terms in order to make it a bit more bearable. According to Logistics Management, there are four main areas, in particular, they are considering amending.

  • Expansion to the current 100 air-mile “short-haul” exemption from 12 hours on-duty to 14 hours on-duty in order to be consistent with the rules for long-haul truck drivers.
  • Extending the current 14-hour, on duty limitation by up to two hours when a truck driver encounters adverse driving conditions.
  • Revising the current mandatory 30-minute break for truck drivers after eight hours of continuous driving.
  • Reinstating the option for splitting up the required 10-hour off-duty rest break for drivers operating trucks that are equipped with a sleeper-berth compartment.

There is also an unintended side effect of the HoS and ELD mandates. Now that most of the entire trucking industry is on the same schedule, there aren’t enough safe places for truckers to park when they’ve run out of drive time. It’s actually gotten bad enough that many carriers are subsidizing their drivers to utilize paid parking at truck stops. These spots can range anywhere from $5 to $20 a night and while that’s not so bad for short trips, long-haul truckers could be shelling out a lot of extra cash to maintain compliance.

The Trucking Age for the Modern Age

The pool of truck drivers is drying up and it’s only getting shallower as more truckers hand in their keys and take to retirement. The Department of Transportation has announced that they will begin a pilot program which will allow drivers under the age of 21 to operate an 80,000 pound truck for interstate commerce.

Given that these youths would be behind the wheel of a 40-ton vehicle, there are more than a few safety advocates who believe this isn’t a good idea.

“The statistics are clear,” says Todd Spencer, president of the OOIDA. “There really isn’t any question that younger drivers are more likely to crash and be involved in serious incidents.” Given that these youths would be behind the wheel of a 40-ton vehicle, there are more than a few safety advocates who believe this isn’t a good idea.

The age restriction has been in place since 1935 and for the most part, no one has argued with the logic. However, the Trump administration is pushing hard to get this particular regulation removed and many don’t agree with it. However, there are some in the industry who think there can be some ways to ease new drivers into handling a rig, without just pushing them straight out of the nest. Handling the first and final mile of driving could give them the opportunity to experience freight handling without giving them total control of the rig from start to finish.

For better or worse, there will be some changes coming to the trucking industry. While these regulations have been put into place with safety in mind, have they reached the point where they’ve hindered operations? At what point does regulation get in the way of an enterprise?

Festive Cheer and Cargo Theft Go Hand in Hand During the Holidays

The holidays bring three main things for the shippers – festive cheer, increased business, and high risk of cargo theft. While increased business orders and sales are the reason to rejoice for shippers, the equally high probability of having their cargo stolen during transit tends to dampen the festive spirit. But given the season and business needs, cargo theft during the holidays is unavoidable.

Tis the Season

According to LPM Insider, businesses in the U.S. lose around $15 to $30 billion dollars each year. This figure too is on the conservative side as quite a few incidents of cargo theft go unreported, it further reports.

Do we just let the robbers rob us of all the hard work that we and our teams put in to getting holiday shipments out, or is there something we can do to safeguard our business interest and our shipments?

Among the various commodities being shipped during the holiday season, products that cannot be tracked and food and beverages shipments tend to be targeted most by cargo thieves. This doesn’t mean that shippers of other commodities or bulky products can rest easy. Cargo theft is a reality for most during the holiday seasons, so much so that there are reports of gift packages being stolen from front porches. Do we just let the robbers rob us of all the hard work that we and our teams put in to getting holiday shipments out, or is there something we can do to safeguard our business interest and our shipments?

Preventive Measures

If we treat cargo theft like any other business or operational risks, we might be in a better position to deal with such incidents and mitigate their impact on our business during the holidays.

Here are some measures that the shippers, truckers, and warehouse operators can take to minimize theft during the festive season.

  1. Pre-plan shipment deliveries: While it might not be possible to completely avoid making a shipment delivery during the holiday season, it would be helpful if shippers and their transportation providers could work out a plan to deliver high-value shipments before the festive mood kicks in. This can, to an extent, minimize the risks of cargo theft.
  2. GPS enabled vehicles: Transportation providers should install GPS trackers in their vehicles to be able to effectively track the shipments until it reaches the final place of delivery. If the vehicle is tracked, any irregular stoppages or route that has been taken can be noted and inquiries can be made with the driver as soon as there is any deviation. Knowing that the vehicle is being tracked and that they can be held responsible, the drivers will also be more cautious while making unscheduled stoppages or leaving the vehicle unguarded for a long time.

    Third-party service providers, such as BlueGrace, are professional and value their market reputation. They have checks and balances in place to avoid cargo theft or any other risk to the shipments while it’s in their custody.

  3. Vetted service providers: When appointing services providers, shippers should properly vet them and do a thorough reference check. Third-party service providers, such as BlueGrace, are professional and value their market reputation. They have checks and balances in place to avoid cargo theft or any other risk to the shipments while it’s in their custody.
  4. Hire additional manpower: This point is especially for warehouse operators. During the holiday season, staff strength tends to be low. Try to get additional workers and guards for the warehouses to cover the operations and security posts during the holidays before the season sets in.
  5. CCTV cameras: Equip your warehouses with CCTV cameras to monitor the warehouse at all times. Be sure to place cameras in a position that all the entry and exit points are covered.
  6. Alarms: Installing burglar alarms in vehicles and warehouses, will work as an additional security measure and assist in warding off thieves.
  7. Locks: Even though this is one of the most basic security measures, it is necessary to reiterate it here. Check to be sure all locks on truck shutters and warehouse entry and exit points are sturdy and in working condition. Train your staff to double check the locks after the truck or the warehouse has been locked.
  8. Train your staff: Train your truck drivers and warehouse staff to be able to detect suspicious activity and people lurking around the shipment. If the staff is trained to notice any such activity around the shipment, they can be on their guard or take measures to protect the shipment. Drivers should also be trained to avoid parking the trucks in unsupervised areas or in places where the risk of theft is high. If there’s a helper traveling with the driver, both of them can take turns to watch over the vehicle when making a stop for refreshments or rest.

Year-round Security

While incidents of cargo theft increase during the holidays, making the safety of employees, customers, business partners and security of the shipments in your custody a company culture and a year-round process is crucial. When this becomes a business practice, preparing for the holiday shipment delivery won’t seem like such a huge task and will also ensure that your employees are well prepared to deal with any such situation.