Trending Now

Building a Resilient Supply Chain with Advanced Predictive…

New Articles

The Advent of Smart Vehicles & Drones in Delivery

delivery
Archives, Global Logistics, Global Trade Daily

The Advent of Smart Vehicles & Drones in Delivery

Leave a comment

Consumers will almost always pick the company that delivers faster. Having the most efficient supply chain is now, more than ever, the key differentiator that sets companies apart from their competitors. But more than this, companies that can predict behavior are the ones that will stand out ahead of the pack.

Since the early 2000s, logistics, freight, delivery and service companies have been outfitting their fleets with GPS tracking systems to monitor the location, movement and status of their fleets. For many companies, GPS tracking is where logistics technology begins and ends, with businesses investing thousands of dollars into monitoring their vehicles and reacting to ‘what happened’. But companies that are positioning themselves for the future recognize that the real value lies not in just determining what happened, but rather in using data obtained through intelligent logistics solutions to predict future scenarios, mitigate risks and avoid adverse outcomes altogether.

By accessing data in real-time through internet of things (IoT) technology, businesses can anticipate their customers’ needs and desires before they do, enabling them to deploy resources more strategically and sharpening their competitive edge. Using the real-time data collected, which helps identify where to trim the fat or drop what’s not working, companies are now able to make quicker, bolder and more informed business decisions. And beyond helping companies streamline their logistical processes and distribution networks, IoT technology is also driving their expansion into new untapped markets with the advent of smart vehicles and drones.

Using smart vehicles and drones to expedite delivery

One of the key – and arguably most important – innovations in intelligent logistics is the development of the delivery drone. The immediate and obvious benefit of drones is faster delivery, enabling consumers to speedily receive products from vendors like Amazon, Sam’s Club and Whole Foods. Drones allow for expedited deployments; waiting for trucks to dispatch takes significantly longer. However, even more important is the impact drones are making on reaching developing societies that, up to now, have missed out on decades of infrastructure development.

Drones using IoT technology are connecting developing countries with limited infrastructure to the global village, thus enabling them to participate in the global economy. This is opening new markets for business that were previously closed to them in the past.

Smart logistics in vehicle fleet management

Delivery vehicles that get caught in traffic or take convoluted routes to their locations can cost businesses hours of lost productivity. But by using Real-Time Location System (RTLS) technology, IoT devices allow businesses to easily and precisely track driver locations.

Smart trucks that implement IoT tech do more than ensuring the driver is on task, on time and performing safely at optimum levels. IoT devices are also enabling businesses and their delivery fleets to gather even more valuable data, such as identifying the fastest route to avoid traffic, knowing when the trailer is unhitched or when the recipient has opened a dispatched package. Companies like McDonald’s are experimenting with delivery trucks that can map the fastest and most efficient routes on their own, thereby reducing emissions and speeding up delivery.

Drivers, too, benefit from IoT tech in their vehicles. Smart logistics tech can also monitor the environment on all four sides of a vehicle, which helps prevent costly mistakes and accidents.

By leveraging IoT technology, companies can now execute every step of the delivery process on-site. For a happy ending, wireless sensors notify companies when the order was opened, allowing company representatives to ‘wow’ customers with a text alert saying, “did you enjoy the product?”

Driverless vehicles: how can they help me?

Back in 2017, an English online grocery chain named Ocado released a self-driving delivery truck into the backstreets of London. The little truck was accompanied by two human monitors and delivered goods to London residents over the course of ten days, all by using its onboard IoT mapping software.

Ocado’s mini-truck was unable to carry as much cargo as its bigger, 18-wheeler brothers, but it did arrive at customer houses faster and with less hassle than larger vehicles could have. Online buyers, meanwhile, could use Ocado’s smartphone app to track their delivery and receive updates right as the Ocado van pulled up to their place of residence.

The Ocado van was the first in a continuing development of vehicles that can deliver goods quicker than traditional freighters, with more cost savings. Additionally, autonomous delivery vehicles can be scaled up more quickly; it’s easier to fit 20 small vans on the streets versus 20 diesel trucks.

IoT technology is future-proofing businesses for long-term returns

To today’s businesses, with the advent of smart vehicles and drones integrating IoT tech into supply chains may seem costly or even risky. But its striking long-term benefits and savings far outweigh the initial costs. Companies deploying intelligent logistics technologies within their fleets have fewer safety concerns, less staff compensation claims and more satisfied customers. With an eye on the long game, smart companies are employing IoT solutions to go beyond merely being ‘good’ at logistics: by mining IoT data, they’re investing in long-term returns for their businesses.

Gregg Abbate is the iLogistics key account manager of Advantech.

intermodal
Archives, Global Shippers 101, Global Trade Daily

HOW TO BE AN INTERMODAL SHIPPER OF CHOICE

Leave a comment

Fluctuating capacity and freight rates along with increased focus on efficiency and sustainability have led to substantial growth in the intermodal market in recent years. As more companies now compete for intermodal capacity at competitive rates, it is important for shippers to set themselves apart from the competition by being attractive partners to their intermodal carriers. 

By being a “shipper of choice” and implementing flexible and efficient practices, companies can build collaborative, mutually beneficial relationships with their intermodal carriers. This better positions them to secure capacity at stable, competitive pricing and enhance service levels and improve overall performance. 

Why It’s Important to be an “Intermodal Shipper of Choice” 

While being a “shipper of choice” has been a hot topic in recent years, the focus has primarily been placed on over-the-road shipping. And while there are many similarities between the two modes, there are also some nuances that must be considered to be an “intermodal shipper of choice” in particular. 

First, because loads are tied to the equipment instead of to an individual driver, there must be an equal (if not greater) focus on equipment management and efficiency in addition to driver efficiency. By placing equal focus on implementing “carrier-friendly” tactics for intermodal freight, shippers can strengthen carrier relationships and better control costs. This, in turn, ensures enhanced intermodal service performance–increasing the ROI of utilizing the mode.

Here are some strategies organizations can use to become an intermodal shipper of choice:

Engage in annual renewals with incumbent carriers rather than annual RFPs. While annual RFPs can yield savings, they also increase uncertainty and risk for both shippers and carriers. By focusing on long-term commitments with incumbent carriers through annual renewals, shippers and their core carriers can continuously foster a relationship of mutual trust and ongoing success. Through this relationship, the carrier and its drivers become intimately familiar with the shipper’s network, freight and business, and the shipper gets to know the carrier’s operations and the drivers responsible for picking up and delivering their loads.

Accurately forecast freight volumes. The ability to forecast freight volumes and seasonal swings allows shippers and carriers to proactively plan (and reposition) equipment and drivers to provide adequate capacity. Sharing this information not only helps provide more consistent service but can be beneficial for both sides on an ongoing basis. 

Consistent freight volumes. Having consistent volume spread out throughout the week, month or year makes appointment scheduling and equipment planning easier for the carrier. And if shippers do ship heavier at certain times, it is important to set and manage expectations with carriers. 

Equipment pool requirements in line with volume. Pool requirements that are in line with volume allow shippers to turn boxes on a regular basis and keep loads moving at a consistent pace. This helps maximize equipment utilization while minimizing equipment costs.

Inbound and outbound volume. Setting consistent inbound and outbound volume out of facilities allows drivers to pick up loads immediately following a drop-off. This reduces empty miles and improves both driver and equipment utilization. These efficiencies will ultimately result in better rates from carriers. 

Utilize drop and hook freight capabilities. Drivers want to be able to get in and out of a facility in an efficient manner, at any time. Drop and hook freight capabilities create load flexibility, reducing congestion in the yard and maximizing driver utilization by minimizing detention time. 

Flexible pick-up and delivery appointments. For customers that require pick-up and delivery appointments, it is important to make them as flexible as possible. This drives further efficiencies for both the carrier and the shipper.

Reasonable payment terms. Shippers should have timely freight payment terms (often 30 days or fewer) and keep to those terms. It is also important to have a system in place to quickly resolve any discrepancies.

Provide driver amenities at the facilities. By providing driver amenities at their facilities (such as bathrooms or waiting lounges), shippers help make the pick-up and delivery process easier and more comfortable. These simple comforts show that the shipper views the carrier (and its drivers) as a valuable part of their operations versus a commodity. 

Utilize facilities in close proximity to intermodal terminals. Facilities that are located near intermodal rail terminals allow rail to be a more competitive option for a shipper. While this is not always possible, shippers looking to build new facilities should consider placing them near rail ramps in order to take advantage of more intermodal opportunities. 

Intermodal Presents Significant Opportunity for Shippers

Intermodal continues to be a cost-effective, efficient and sustainable way to move freight and should be a key piece of any strategic modal mix. And as more shippers compete for capacity and competitive rates, it’s important for shippers to best position themselves to be attractive partners to intermodal carriers. This will allow them to better take advantage of intermodal while helping to control costs and enhance service performance. 

__________________________________________________

Doug Punzel is president of Celtic Intermodal, Transplace’s intermodal business unit. David Marsh serves as Celtic Intermodal’s chief operating officer and helps oversee all daily operations. 

couscous
Archives, Global Trade Daily, Imports/Exports

EU Couscous Market 2019 – France is the Undisputed Leader in Consumption, Production, and Imports

Leave a comment

IndexBox has just published a new report: ‘EU – Couscous – Market Analysis, Forecast, Size, Trends And Insights’. Here is a summary of the report’s key findings.

The revenue of the couscous market in the European Union amounted to $538M in 2018, approximately equating the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). The market value increased at an average annual rate of +2.2% from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded over the period under review. The pace of growth was the most pronounced in 2011 with an increase of 13% y-o-y. The level of couscous consumption peaked in 2018 and is likely to see steady growth in the near future.

Consumption By Country in the EU

France (143K tonnes) remains the largest couscous consuming country in the European Union, comprising approx. 43% of total consumption. Moreover, couscous consumption in France exceeded the figures recorded by the region’s second-largest consumer, Germany (53K tonnes), threefold. The third position in this ranking was occupied by Italy (25K tonnes), with a 7.5% share.

In France, couscous consumption remained relatively stable over the period from 2007-2018. In the other countries, the average annual rates were as follows: Germany (+7.7% per year) and Italy (+4.1% per year).

In value terms, France ($238M) led the market, alone. The second position in the ranking was occupied by the UK ($79M). It was followed by Germany.

In 2018, the highest levels of couscous per capita consumption was registered in France (2,198 kg per 1000 persons), followed by the Netherlands (690 kg per 1000 persons), Belgium (669 kg per 1000 persons) and Germany (640 kg per 1000 persons), while the world average per capita consumption of couscous was estimated at 654 kg per 1000 persons.

In France, couscous per capita consumption remained relatively stable over the period from 2007-2018. The remaining consuming countries recorded the following average annual rates of per capita consumption growth: the Netherlands (+5.7% per year) and Belgium (+5.3% per year).

Market Forecast 2019-2025 in the EU

Driven by increasing demand for couscous in the European Union, the market is expected to continue an upward consumption trend over the next seven years. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +1.1% for the seven-year period from 2018 to 2025, which is projected to bring the market volume to 361K tonnes by the end of 2025.

Production in the EU

In 2018, the amount of couscous produced in the European Union stood at 333K tonnes, growing by 3.6% against the previous year. The total output volume increased at an average annual rate of +2.8% from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded over the period under review. The pace of growth was the most pronounced in 2016 with an increase of 8.3% against the previous year. Over the period under review, couscous production attained its peak figure volume in 2018 and is expected to retain its growth in the near future.

In value terms, couscous production stood at $509M in 2018 estimated in export prices. The total output value increased at an average annual rate of +1.5% from 2007 to 2018; however, the trend pattern remained consistent, with only minor fluctuations in certain years. The pace of growth appeared the most rapid in 2011 with an increase of 9% against the previous year. The level of couscous production peaked in 2018 and is likely to continue its growth in the near future.

Production By Country in the EU

France (140K tonnes) remains the largest couscous producing country in the European Union, accounting for 42% of total production. Moreover, couscous production in France exceeded the figures recorded by the region’s second-largest producer, Italy (67K tonnes), twofold. The third position in this ranking was occupied by Germany (46K tonnes), with a 14% share.

In France, couscous production remained relatively stable over the period from 2007-2018. The remaining producing countries recorded the following average annual rates of production growth: Italy (+6.4% per year) and Germany (+6.8% per year).

Exports in the EU

The exports stood at 77K tonnes in 2018, lowering by -8.1% against the previous year. The total exports indicated a remarkable expansion from 2007 to 2018: its volume increased at an average annual rate of +4.0% over the last eleven years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2010 with an increase of 18% against the previous year. The volume of exports peaked at 84K tonnes in 2017, and then declined slightly in the following year.

In value terms, couscous exports totaled $107M in 2018. The total export value increased at an average annual rate of +3.7% over the period from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The growth pace was the most rapid in 2008 with an increase of 29% y-o-y. The level of exports peaked in 2018 and are expected to retain its growth in the near future.

Exports by Country

Italy represented the largest exporter of couscous in the European Union, with the volume of exports resulting at 44K tonnes, which was approx. 57% of total exports in 2018. It was distantly followed by France (23K tonnes), making up a 30% share of total exports. The following exporters – Belgium (2.8K tonnes), the UK (1.8K tonnes), the Netherlands (1.5K tonnes) and Germany (1.2K tonnes) – together made up 9.5% of total exports.

From 2007 to 2018, the most notable rate of growth in terms of exports, amongst the main exporting countries, was attained by the Netherlands, while the other leaders experienced more modest paces of growth.

In value terms, the largest couscous markets in the European Union were Italy ($47M), France ($39M) and Belgium ($6.1M), together accounting for 86% of total exports. These countries were followed by the UK, the Netherlands and Germany, which together accounted for a further 9.2%.

In terms of the main exporting countries, the Netherlands experienced the highest growth rate of exports, over the last eleven-year period, while the other leaders experienced more modest paces of growth.

Export Prices by Country

The couscous export price in the European Union stood at $1,381 per tonne in 2018, surging by 12% against the previous year. Over the period under review, the couscous export price, however, continues to indicate a relatively flat trend pattern. The pace of growth appeared the most rapid in 2008 an increase of 28% against the previous year. In that year, the export prices for couscous reached their peak level of $1,825 per tonne. From 2009 to 2018, the growth in terms of the export prices for couscous failed to regain its momentum.

Prices varied noticeably by the country of origin; the country with the highest price was Germany ($2,524 per tonne), while Italy ($1,058 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by the Netherlands, while the other leaders experienced more modest paces of growth.

Imports in the EU

In 2018, couscous imports in the European Union amounted to 77K tonnes, reducing by -12.7% against the previous year. Overall, couscous imports, however, continue to indicate resilient growth. The most prominent rate of growth was recorded in 2013 with an increase of 19% against the previous year. Over the period under review, couscous imports attained their maximum at 89K tonnes in 2017, and then declined slightly in the following year.

In value terms, couscous imports stood at $106M in 2018. The total imports indicated a buoyant increase from 2007 to 2018: its value increased at an average annual rate of +5.9% over the last eleven years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, couscous imports increased by +84.0% against 2010 indices. The pace of growth was the most pronounced in 2011 with an increase of 27% year-to-year. Over the period under review, couscous imports attained their peak figure at $108M in 2017, and then declined slightly in the following year.

Imports by Country

France was the key importer of couscous in the European Union, with the volume of imports reaching 26K tonnes, which was near 34% of total imports in 2018. It was distantly followed by the UK (11K tonnes), Belgium (8.7K tonnes), Germany (7.8K tonnes), Spain (5.1K tonnes) and the Netherlands (3.5K tonnes), together comprising a 47% share of total imports. The Czech Republic (2.8K tonnes) followed a long way behind the leaders.

From 2007 to 2018, average annual rates of growth with regard to couscous imports into France stood at +2.8%. At the same time, the Czech Republic (+17.9%), Germany (+14.8%), the UK (+8.9%), Spain (+6.6%), Belgium (+5.5%) and the Netherlands (+4.7%) displayed positive paces of growth. Moreover, the Czech Republic emerged as the fastest-growing importer in the European Union, with a CAGR of +17.9% from 2007-2018. While the share of the UK (+8.7 p.p.), France (+8.7 p.p.), Germany (+7.9 p.p.), Belgium (+5 p.p.), Spain (+3.3 p.p.), the Czech Republic (+3 p.p.) and the Netherlands (+1.8 p.p.) increased significantly, the shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, France ($35M) constitutes the largest market for imported couscous in the European Union, comprising 33% of total couscous imports. The second position in the ranking was occupied by Belgium ($15M), with a 14% share of total imports. It was followed by the UK, with a 12% share.

In France, couscous imports increased at an average annual rate of +5.3% over the period from 2007-2018. The remaining importing countries recorded the following average annual rates of imports growth: Belgium (+6.0% per year) and the UK (+8.7% per year).

Import Prices by Country

In 2018, the couscous import price in the European Union amounted to $1,369 per tonne, rising by 13% against the previous year. Over the last eleven years, it increased at an average annual rate of +1.2%. The pace of growth was the most pronounced in 2008 when the import price increased by 30% y-o-y. In that year, the import prices for couscous reached their peak level of $1,572 per tonne. From 2009 to 2018, the growth in terms of the import prices for couscous remained at a somewhat lower figure.

There were significant differences in the average prices amongst the major importing countries. In 2018, the country with the highest price was the Netherlands ($1,837 per tonne), while the Czech Republic ($1,109 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by the Netherlands, while the other leaders experienced more modest paces of growth.

Source: IndexBox AI Platform

Descartes
Archives, Global Trade Daily, Software

Shipping Support Consolidated with Descartes ShipRush™

Leave a comment

Descartes’ cloud-based ecommerce shipping solution ShipRush™ now provides customers increased visibility through its added less-than-truckload (LTL) freight management options.

The global logistics solutions provider announced the adding of LTL freight to the offering, further increasing efforts in streamlining shipping operations while supporting companies as they determine carriers and efficient service options.

“Descartes continues to drive ecommerce shipping innovation by bringing together LTL freight, parcel shipping and rate shopping on a cost-effective platform for ecommerce companies,” said Troy Graham, Senior Vice President, Business Development for Descartes Systems Group.

“These combined capabilities help companies, like ZUP, remove the guesswork from choosing the best combination of cost and service for their shipments.”

“As a multi-channel business, ZUP’s shipping needs are complex. We process both individual marketplace orders and large palletized orders for our network of dealers,” said Nick Kierpiec, director of operations for ZUP.

Beyond increased visibility with its all-in-one capabilites, ShipRush™  supports customers in determining the most cost-effective options for LTL management and usage. The platform assists in how and when to use LTL and can produce bulk shipping savings up to 50 percent while offering access to integrated Enterprise Resource Planning systems (ERP) and carrier rate selection processing.

“The ability to do everything in one platform, including process incoming orders and rate shop the best price and delivery options for parcel and LTL, saves us both time and money,” concluded Kierpiec.

 

Pilot
Archives, Global Trade Daily, News

Pilot Freight Selected for “Logistics Provider of the Year”

Leave a comment

Major motion picture 3PL provider, Technicolor, recognized Pilot Freight Services as the 2018 Logistics Provider of the Year. The eMemphis-based, long-term Pilot customer relies heavily on the freight forwarder for time-sensitive deliveries of  DVD displays to big-name retailers, ultimately supporting Technicolor during peak, fourth quarter deliveries while providing the company unwavering support.

“Pilot pulled out all the stops to make sure we were in every store we needed to be in for Black Friday and continued their stellar support through the busy holiday season,” said Elaine Singleton, vice president of supply chain at Technicolor.

A variety of strengths launched the global company at the top of the list for the recognition, among them included on-time service; communication and proactive tracking; billing accuracy; and proof of delivery. The final decision was made by Technicolor staff votes.

“We are thrilled to be recognized by Technicolor as their Logistics Provider of the Year,” said John Hill, president and chief commercial officer of Pilot. “We’ve had a longstanding relationship with Technicolor and our abilities to coordinate and handle time-specific deliveries have been able to help us both grow in our respective industries.”

Source: Pilot Freight Services

3pls, Archives, Global Trade Daily

WHAT IT TAKES TO BE OR WORK WITH A 3PL THAT HANDLES PERISHABLE FREIGHT

Leave a comment

In a world that is becoming more globalized by the second, the literal array of products being shipped in 2019 is extremely diverse. One diverse segment is the perishables industry, which distributes goods that naturally deteriorate due to time or environmental conditions. This is an understandably complex segment, requiring a logistical savviness and excellent partners to ensure products arrive in time and, most important, fresh and intact.

Meats and meat by-products, dairy, fish and seafood, chemicals, flowers and pharmaceutical products make up the perishable goods segment. According to Technavio, a leading market research firm, the sector is expected to grow at a compound annual rate of nearly 8 percent (2017-2021). A revealing report published by the U.S. Department of Agriculture in 2000 astutely signaled this growth, arguing that the advances in transportation technology would significantly ease perishable freight trade via the reduction of shipping costs and streamlined delivery times.

A Valuable Partner

Transporting perishable freight is a multiple, moving parts effort. As such, third party logistics (3PL) providers play a vital role. Outsourcing to 3PLs allows shippers to not only hang onto their capital for reinvestment in their own, core operations, but they can additionally take advantage of 3PL technology which is generally ahead of the curve.

A good 3PL will provide access to economies of scale, enable superior elasticity in areas such as route planning (to lessen unnecessary “hand-offs”), provide access to cutting-edge temperature tracking technology and enable the use of shared, cold storage warehouses with the shipper. The latter alone offers tremendous cost savings.

Choosing the Right 3PL

Food Logistics holds annual awards, prominently recognizing the top 3PL and cold-storage providers. Jumping into a 3PL partnership should not be taken lightly. While the agencies in the Food Logistics awards list are clearly leaders in the industry, fully vetting potential partners is highly suggested, with these five areas are an excellent place to start.    

1. Proven Success – To the detriment of the “start-up” 3PLs, entrusting your perishable freight in the hands of relative novices is not the best idea. Go with a winner that can provide excellent client feedback.

2. Robust Technology – This is an area where your 3PL should be much farther ahead of the technological curve than the shipper. Good 3PLs are agile enough to have resources on-hand to stay on top of the very technology that will cut costs and increase efficiency times.  

3. Scalability – Once a 3PL is in place, the shipper is entering a shared-space environment. This is the natural advantage of outsourcing, so ensuring the 3PL can scale in a parallel manner with the shipper will facilitate economies of scale.

4. Location Networks – A seasoned, successful 3PL will take a more nuanced, strategic approach to network configuration, ensuring the shipper can count on the right distribution center locations.

5. Commitment to Improvement – While last, this is a key point because every 3PL will be faced with pressure to continuously evolve and improve. During initial conversations, addressing what these challenges have been and how the 3PL addressed them in the past will reveal much about the firm. 

3PL Key Issues

As a 3PL charged with perishable freight, the issues are frankly numerous. On the trucking side, it is not machine nor technology-based–it’s humans. Driver shortages are a major concern, with Bloomberg reporting earlier this year that the shortfall has leaped to 296,311 as of the second quarter of 2018. The root of the issue goes back to 2004, when federal law mandated stricter oversight of hours worked per day. Cuts were made, which meant more drivers were needed due to the current crop having to work less. Couple this with the aging trucker population and shortages have been rampant ever since.   

A strong economy has been another issue that partly explains the trucker shortage. Manufacturing and construction have had an easier time finding new entrants into those sectors than has trucking. The former sectors are tapping into the same general population as the latter, and weeks on the road, away from families, is not as attractive as working at a given site and returning home every evening.

To combat this, 3PLs need to provide better services and remain highly efficient. Transportation is still the weakest link in supervising what’s known as the “cold chain.” Low-cost providers can enter easily, which results in a host of marginal players making it hard for suppliers to weed out the true high performers.

On the sustainability side, shippers are increasingly seeking 3PLs with the smallest carbon footprint possible. Packaging and warehousing are well-known polluters, which has put pressure on 3PLs to generate as few pollutants possible. Utilizing eco-friendly electric vehicles to adopting “green storage and packaging” processes, logistics innovation and alternative fuel implementation are major issues larger and savvier suppliers are seeking. 

As with any industry, challenges are ever-present, but the 3PL sector is revolutionizing how we consume and enjoy perishable items on a global scale. Thanks to these nimble entities, hundreds of millions of people have regular access to affordable products in ideal states, something our grandparents and many of our parents could not have said. 

Archives, Commentary, Global Trade Daily

How Global Shippers Optimize Deep-water Strategies

Leave a comment

Deep-water ports continue to make leaps and bounds within the trade sector, increasing overall twenty-foot equivalent units while breaking new ground and records, as seen this year with the Georgia Ports Authority’s recent confirmation of an impressive 4.36 million TEUs for 2018 and projecting a continuation of success for 2019. The port recorded 8 percent growth compared to the 2017 numbers.

Executive Director Griff Lynch cites the combination of cargo expansion and increased U.S. demand with shifting the global logistics arena toward the deep-water terminals in Savannah. The port implemented a strategy focusing on trade in December that was projected to set them up for continued success.

The Connecticut Port Authority claims that efforts toward integrating solutions that fit individual maritime needs are the driving factors behind its growth and successes.

In a detailed report highlighting deep-water port trends, the environment was the first on the list of increased industry concern and priority, which can prove problematic for trucking companies and beneficial for global shippers that anticipate regulation changes before industry competitors do. In 2020, the IMO fuel sulfur regulation will officially change how emissions are handled, ultimately restricting options for those who want to maintain uninterrupted operations. With this regulation change, there will be a 0.5 percent global sulfur limit on fuel emissions.

Proactivity is the driving force behind the success and stability of shippers looking for solutions for sustainability. Seatrade Maritime News presents three options that shippers should take into consideration sooner rather than later: install exhaust gas cleaning systems; purchase fuels within compliance (which are at a higher cost); or run ships on liquid natural gas. Whatever the choice might be, the demand for each of these tangible solutions is bound to increase drastically and change the pace for the global refineries.

“Global refiners will be put under enormous strain by the shifting product slate,” explains the International Energy Agency. “If refiners ran at similar utilization rates to today, they would be unlikely to be able to produce the required volumes of gas oil. If they increased throughputs to produce the required gas oil volumes, margins would be adversely affected by the law of diminishing returns. In order to increase gas oil output, less valuable products at the top and bottom of the barrel would be produced in tandem, which would likely see cracks for these products weaken and weigh margins down.”

Beyond proactivity and preparation, global deep-water ports focus on redefining infrastructure while evaluating opportunities for significant increases in cargo intake. But what about the ports that aren’t seeing the results they want? Let’s take a look at the European ports and the challenges and proposed solutions featured in an article from Port Strategy. Of all the solutions presented and discussed, the first was the need for infrastructure evaluation.

“The challenge ports everywhere face now,” details a report shared by the ESPO, “is to implement projects which often are financially unattractive to the port authority and even less attractive to external investors, but which are essential for wider societal and economic reasons. Some ports are financially strong enough to finance such projects and accept the low financial returns. Other ports are challenged to implement projects which are essential but are entirely beyond their means.”

Another challenge is the demand for increased cargo but a limit in capacity, as many ports claim they are close to reaching max capacity but can’t provide an opportunity for competitors to swoop up that for which they can’t make room. Gauging these issues requires a carefully thought out and strategic approach to ensure shippers evaluate the next steps for 2019.

In the theme of modernization, Port of Oakland shared insight into its 2018-2022 strategic plan, which is inclusive of growing net revenue, modernizing and maintaining infrastructure, care for the environment and improving customer service. The use of technology to streamline operations was one of the highlighted objectives and strategies (impacting almost every area of the business) that the report emphasized on. In the age of information technology, automation and technology solutions, this goal would provide more than just a seamless flow of information, but it would supply owners, customers and employees improved efficiencies and reduced room for error. There seems to be a trend among these ports.

“Each of our businesses has specific modernization and maintenance objectives to meet, notably development of long-term asset management plans,” states the Port of Oakland report. “Moreover, those objectives require careful attention to environmental, social responsibility and human resources issues.”

The key to implementing strong logistics solutions can be found in an all-in-one approach that is inclusive of your company goals and vision, the well being and safety of your employees, customer satisfaction, competitive advantage as well as cost-effectiveness and proactivity. The common denominator is found in digitization through advanced technology solutions, fully integrated within the service platforms, touching on all bases of the operations and supply chain.

For 2019, more of these solutions will become the wining differentiator with competitors, and the demand for digital integration will continue to rise. Take advantage of the opportunities to research and learn the primary areas of improvement, addressing those first. The primary issues will ultimately impact the remaining areas of your business–start at the root and go from there. Implement proactive measures to ensure your company is well prepared for changes in regulations, considering long-term solutions over short term. Consider analyzing what competitors are doing; this is just as important as knowing what they are not doing to stay ahead in the markets.

Vincent Campfens, author of IBM’s THINK blog, put success initiatives into perspective: “Being a smart port is much more than merely introducing awesome new technology into a port to make it safer, more efficient and more sustainable. It is also about looking further ahead in time, making strategic choices to ensure that the port still exists in the future, whilst responding to changes in climate, politics, technology, industries and cargo flows. One of our recent strategic choices is a targeted commitment to digital innovation.”

Archives, Global Trade Daily, News

Old Dominion Freight Line Recognized for Disaster Responder Program Support

Leave a comment

Old Dominion Freight Line amped up its efforts to support the vision of the American Red Cross with a pledge of $250,000 through the Disaster Responder Program in addition to launching the redcross.org/odfl platform to streamline additional donations from its employees and customers. These donations help the nonprofit organization further efforts to respond to more than 62,000 annual natural disasters each year.

“Every day in the face of disasters, the generosity of Disaster Responder members like Old Dominion Freight Line ensures the Red Cross can provide comfort and care to people in their darkest hours,” said Don Herring, chief development officer at the American Red Cross. “We are extremely grateful for these contributions before disasters strike because it enables us to respond to disasters immediately and compassionately, when help and hope are needed most.”

The American Red Cross reports house fires are the most common type of disaster they respond to annually, topping hurricanes, tornadoes, and floods. The funds donated to the organization enable opportunities to educate communities – including Old Dominion’s employees, on disaster preparation and recovery.

“From hurricanes and flooding to wildfires, we’ve seen the impact that the American Red Cross has on our communities. We’re dedicated to helping Red Cross keep their promises by assisting with disaster preparation and response. This partnership will help many communities around the country, communities where our OD Family lives and works every day,” said Chip Overbey, Senior Vice President of Strategic Planning at Old Dominion Freight Line. “This announcement is a way to formalize the work we’ve done and the work we will continue to do with the American Red Cross. Our goal is to help these communities not only monetarily, but also through our OD Family support.”

Source: Old Dominion Freight Line

Archives, Global Trade Daily, News

Air Partner Announces Houston Location

Leave a comment

Following the most recent opening of its Los Angeles office, global aviation group Air Partner confirmed the opening of its newest headquarters in Houston, Texas this week. The new Woodlands office supports the company’s vision to continue efforts in expansion to better serve its clients in various regions.

“We are excited to open an office in Houston as we expand our reach and services across the U.S., providing local Air Partner representation to both established and new customers,” said David McCown, president of Air Partner U.S. “Houston is one of the fastest-growing major cities in the United States and is a hotbed of economic activity.  We see massive potential for growth in the region.”

In addition to extending reach for customers, the Houston office is in favorable proximity to the major oil and gas hub in the region, creating opportunities for Air Partner to extend its freight and corporate jet shuttle programs. With the Port of Houston currently serving as a top foreign trade zone, the company’s strategic location for the new office will also provides ample opportunities for the expansion of large freight and cargo operations.

The London-based company offers services including air charter,cargo services, private air travel solutions, specialist travel management, emergency planning, aircraft remarketing and aviation safety consultancy and training, including air traffic control and wildlife management

Air Partner currently has U.S. office locations in Fort Lauderdale, New York City and Washington, D.C. and shows no plans of slowing down expansion efforts in key regions.

Archives, Global Trade Daily, News

Old Dominion Celebrates Growing Capacity

Leave a comment

Old Dominion announced its success during the first half of 2019 following the opening of six service centers across the nation. Reduced shipping times, increased daily volumes and enhanced delivery flexibility are key benefits the service centers offer for customers.

Locations for the new center upgrades include:  Mobile, Ala., Pompano Beach, Fla., Houston, Texas, Otay Mesa (San Diego), Calif., Texarkana, Ark., and Anaheim, Calif.

“Our 2018 results confirm that strategically opening new and renovating existing service centers to accommodate customer demand is helping to grow our business,” said Terry Hutchins, Vice President of Real Estate. “We will continue that strategy of searching for new sites to increase capacity and grow our network to continue to deliver premium service that exceeds customers’ expectations.”

The implementation of new service centers are carefully considered in terms of location, network capacity opportunities, and access to the highest quality workers. Each center is equipped with the highest quality technology in anticipation of increased customer demand.

“We search for locations in growing markets where we have access to quality workers to expand our network capacity. Expanding our network allows us to immediately accommodate customer needs, and is critical to maintaining our award-winning low claims ratio and guaranteed on-time delivery,” said Hutchins.

The company announced scheduled open houses for each of the new locations to celebrate their success:

Mobile – March 13

Pompano Beach – March 20

Houston – April 11

Otay Mesa – April 24

Texarkana – April 25

Anaheim – April 25

 

Source: Old Dominion Freight Line