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Three Ways to Recognize Double Brokering

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Global Logistics, Global Trade Daily, Trucking

Three Ways to Recognize Double Brokering

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The looming danger of double-brokering is on the rise, and it carries the potential for financial losses and legal troubles that could devastate your business. This, along with other fraud risks in the freight market, can quickly jeopardize your business and your reputation if you’re not careful.

Double-brokering can be prevented, but it requires careful attention to detail when verifying contact information, credentials, and documentation. Rushing the process is always a bad idea, but sometimes it can’t be avoided. However, there are indicators that should alert you to dig deeper.

What is Double-Brokering?

The most common type of double-brokering happens when a broker or shipper hires a full truckload carrier and vets their MC number, but the load is hauled by a different MC number without the knowledge or consent of the original contact. This practice is both unethical and illegal. It also puts all parties at risk should something happen to the cargo along the way.

Three Warning Signs of Double-Brokering

Here are three warning signs of double-brokering.

  1. A carrier with less than three months of authority and zero inspections
  2. Names or phone numbers are not provided for the carrier.
  3. A carrier with just a single truck, and the VIN doesn’t match the one you have on record.

Ways to Avoid Double-Brokering

Avoiding double-brokering can be done, but it involves a proactive approach to spot suspicious behavior before it becomes a problem.

Here are ways to effectively avoid double-brokering and prevent it from happening to someone else.

  • Have the customer confirm the MC and DOT numbers for every carrier and confirm with the broker or shipper.
  • Verify contact information and communicate with your partners.
  • Call phone numbers to confirm it is the fight carrier. Virtual numbers without a physical address can also be a red flag for fraud.
  • Implement a strict carrier vetting process that’s reliable and accurate using tools like RMIS.
  • Check carrier scores confidently with software tools like Carrier Assure. If the carrier has a low score (D or F), take additional vetting measures.
  • Report carriers who double-broker right away to law enforcement and the FMCSA.

Being on the lookout for and reporting double-brokering is important to maintain trust and security in the freight market. Double-brokering can lead to financial losses, higher rates, and a lack of control over shipments. By reporting it, you help increase transparency and accountability for all parties.

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Global Logistics, Global Trade Daily, News, Ocean Ports, Uncategorized

Galveston Wharves Secures $42.3 Million State Funding Boost for Vital Cargo and Transportation Initiatives

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In a groundbreaking development, the Galveston Wharves has secured a remarkable $42.3 million in state funding to propel essential cargo infrastructure projects and restore a crucial section of the port’s interior roadway, along with an enclosed pedestrian walkway over Harborside Drive (State Highway 275).

This substantial allocation was approved during the September 28 meeting of the Texas Transportation Commission, the governing body for the Texas Department of Transportation (TxDOT). It came as a recommendation from TxDOT’s Port Authority Advisory Committee (PAAC) and will be channeled into three pivotal projects outlined in the port’s comprehensive 20-Year Strategic Master Plan.

Rodger Rees, the Port Director and CEO of Galveston Wharves, expressed enthusiasm for the transformative potential of these projects, stating, “These shovel-ready projects will expand our cargo business, improve traffic flow, and make it safer for pedestrians to access cruise operations and downtown Galveston.”

Rees went on to emphasize the historic nature of this funding, which marks the largest financial injection ever received by the port. He attributed this achievement to years of collaboration between the port, TxDOT, and the PAAC. Moreover, he highlighted the instrumental role played by the 88th Texas Legislature in making this major economic investment possible by allocating a staggering $640 million for both internal and external infrastructure projects within port precincts and enhancements to Texas ports’ ship channels.

Cargo Complex Advancements

A significant portion of the funding, amounting to $36 million, will be directed towards the West Port Cargo Complex. With the port contributing $14.1 million, this $50.1 million project will address aging infrastructure by constructing enclosure walls, a 1,340-foot-long berth spanning two open slips, and concrete paving. This expansion will create new berthing areas for cargo and lay ships, fostering job growth and generating additional revenue for the port. Anticipated to commence in 2024, the project is slated for completion by 2026.

Internal Roadway Reconstruction – $3.15 Million

The state has allocated $2.5 million to support the fourth segment of the port’s internal roadway improvements, situated between 33rd and 41st streets. The port will contribute $655,000 as matching funds. This expansion of the roadway on the far west end of the port will enhance access to the West Port Cargo Complex and divert cruise traffic from Harborside Drive (Texas State Highway 275), thus alleviating congestion in the downtown area.

Pedestrian Walkway Over Harborside Drive – $3.85 Million

A portion of the state funding, amounting to $3.85 million, will be directed towards the restoration and reopening of the enclosed walkway over Harborside Drive at 25th Street. This vital initiative will provide safe access to cruise terminals 25 and 28, the Shearn Moody Plaza parking garage, and the Strand Historic District for cruise passengers, workers, and the public. The walkway, which has been closed for approximately two decades, will undergo structural enhancements, interior improvements, and the installation of elevators and escalators at Cruise Terminal 25 and the parking garage.

Rees underscored the significance of this development, stating, “Reopening this walkway will give passengers, waterfront workers, and visitors safe, convenient access to the port and downtown.”

In conclusion, Rees acknowledged that these critical projects would not have been possible without the generous funding allocation from the 88th Texas Legislature, and he expressed gratitude to key stakeholders, including Governor Greg Abbott, Senator Mayes Middleton, the Texas Transportation Commission, the PAAC, TxDOT staff, and the Galveston Wharves Board of Trustees for their unwavering support in advancing these crucial initiatives.

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Global Logistics, Global Trade Daily, Ocean Ports

Maritime Challenges – Fires, Economic Uncertainty, and “Dark” Tanker Fleets 

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While shipping losses were at a record low in 2022, cargo and hull fires, economic uncertainty, and “dark” tanker fleets are safety challenges on the horizon for the maritime sector. Allianz Global Corporate & Specialty (AGCS) is a corporate insurance carrier providing risk consultancy and insurance solutions worldwide. The company’s annual Safety & Shipping Review looks at loss trends and risks for the maritime sector and the 2023 version is officially out. 

The most notable headline of the report is the continued decline in shipping losses. Thirty years ago it was common for 200-plus vessels to go missing every year. It has been six years since triple-digit losses have been registered and last year there were fewer than 40. The “loss hotspot,” however, continues to be South China, Indonesia, Indochina, and the Philippines. Congested ports, extreme weather, and older fleets are the primary loss culprits. 

While losses are down, cargo and hull fires are a growing concern. Decarbonization efforts have introduced new types of cargo. Battery-powered goods featuring lithium-ion (Li-ion) are highly flammable and represent a concerning risk for carriers. Electric vehicle (EV) sales are increasing and the overall battery market is expected to grow by 30% annually between now and 2035. 

Decarbonization has also led to larger vessels and carriers seeking greater efficiencies. While larger vessels may prove more efficient, higher container cargo exposure and accumulation have led to more fires. Li-ion battery fires are additionally very difficult to extinguish. An AGCS analysis concluded that fire is the most expensive cause of loss – eating up approximately 18% of the value of the total claims. 

“Dark” tanker fleets, also known as “shadow” or “ghost” fleets, are unregistered tankers that slip through regulatory controls. Oil sanctions, as a result of Russia’s invasion of Ukraine, have resulted in Russia and some of its allies to implement dark tanker fleets to transport and sell Russian oil. Energy embargos are difficult to enforce, and according to Tanker Trackers, of the 900 ultra-large tankers at the global level, roughly one-fifth were breaking sanctions with Venezuela, Iran, and Russia. An uninsured dark tanker exploded in Southeast Asia in May killing crew. Tanker explosions result not only in loss of life but also environmentally toxic oil spills.   

Finally, the report is especially concerned with economic uncertainty. The sector is suffering from lower demand and depressed freight rates where shipping a container between Asia and the US in April 2023 costs roughly 80% less than at the same time in 2022. Commodity prices are up as are labor costs, and the price of steel is crippling manufacturing budgets. Between 2020 and 2022 some estimates point to an 18% + increase in ship repair costs alone. 

Inflated prices have been baked into the present figures based on the global inflation figure of 8.8% in 2022. The inflation outlook still remains uncertain adding to some very real challenges over the remaining four months of 2023.    

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Global Logistics, Global Trade Daily, Technology

US Electric Vehicle Sales still have a lot to do with China

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The United States wants to lessen its reliance on China when it comes to electric vehicle (EV) production. A proposed $7,500 tax credit set to kick in come 2024 is held by most to be the key to increasing EV sales stateside. Yet, US law dictates the credit cannot be used to purchase cars with battery components that come from a “foreign entity of concern.” The interpretation of that phrase will likely dictate the future of the US EV rollout. 

At the heart of this struggle are Ford and General Motors (GM). While there are other EV manufacturers to be certain, Ford has caught the eye of lawmakers and members of Congress with its proposed plans for a $3.5 billion battery factory. The Michigan plant would be one-of-a-kind, but it would also depend heavily on the Chinese firm Contemporary Amperex Technology Co. Ltd (CATL). Ford is interested in CATL’s technology to make lithium-iron-phosphate batteries. At an industrial scale, these batteries are cheaper than the alternatives and would greatly reduce production costs. Yet, an agreement like this would likely run against the “foreign entity of concern” clause. 

Meanwhile, crosstown rival GM does not have any planned partnerships with Chinese battery firms and is making this position known. Should Ford be able to move ahead and offer EVs with the $7,500 tax credit, the automaker would gain a relevant technological and cost advantage over GM. Understandably, GM is calling for a strict adherence to the “foreign entity of concern” rule while Ford is positioning its deal with CATL as a licensing agreement and not a joint venture. This means the subsidiary that operates the Michigan plant would be owned by Ford and they would then pay CATL royalties for the use of their technology. 

China is a prominent player in the lithium-ion battery supply chain. Last year roughly 65% of all graphite mined in the world (key raw material for batteries) was from China. In terms of chemical refining and production, all spherical graphite and nearly all manganese refining occur in China, and the Asian giant controls 70% of battery-cell production. Ford defends its position by citing that a deal with CATL could bring substantial advanced technology knowledge to the US and that cutting the US off completely to Chinese partnerships could set the domestic battery market back for decades. 

On the other end, should Ford be allowed to move forward as planned, some in Congress fear this will simply push GM and others to form similar partnerships with other Chinese firms thus further integrating the two nations. Both Democrats and Republicans have enough folks on both sides of the aisle that agree on ridding the US of excess Chinese reliance. But without the $7,500 tax credit bridging the gap between a new EV and a new gas-powered car, a gas-powered option will likely win out for most consumers.    

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Global Logistics, Global Trade Daily, Ocean Ports

Russia-China Trade Dynamics in a Post-War Era: Navigating Challenges and Opportunities

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As Russia grapples with the western sanctions one year after the invasion in Ukraine, China supports by bolstering bilateral trade between the two nations. Container xChange investigates the intricacies of the China-Russia trade and how it impacts the container logistics industry, now and in future. 

China – Russia trade ties 

“There is significant cargo movement from China into Russia but very scarce movement back to China from Russia. Containers are piling up in Russia which means that the secondhand container prices are very low in Russia. You see a 40ft high cube container being on sale in Moscow for less than $1,000, while in other parts of the world it is almost double or even more. This is significant and has tremendously detrimental impact on the business of container logistics because of the high imbalance of demand and supply of containers.” said Christian Roeloffs, cofounder and CEO, Container xChange. 

In February 2022, the average price of a 40ft high cube container in Moscow was $4,175, which is now $580 as of 25 September 2023. (See graph below) 

Similarly, the average price of a cargo worthy 20 ft DC was $1,961 in February 2022, which has consistently declined and bottomed out to $675 as of 25 September 2023. 

“Currently there are around 150,000 surplus containers in Russia, and everybody is looking for an opportunity to return containers back to China. All containers from Russia to China go with a pickup charge. Regarding container trading, many Chinese companies are selling containers below market price to get rid of the boxes since it doesn’t make sense to send them back to China. From Moscow to Shanghai, the offline market offers around $1,500 for new containers. If cargo worthy containers are in good condition and cost less, they prefer to sell the boxes in the local market. 

But this doesn’t mean that the market is bad. There are still many companies exporting as many as 4,000 SOC containers from Russia to China. The transactions between China and Russia are still very significant.”  a customer of Container xChange shared. 

China, traditionally a substantial purchaser of Russian energy, has now emerged as a vital source of imports, encompassing a wide range of products such as machinery, pharmaceuticals, auto parts, consumer goods, smartphones, cars, and agricultural equipment, from China. This shift has created a shortage of closed cargo containers, further intensifying the logistics challenge. 

This shift is a direct result of numerous international companies exiting the Russian market amid ongoing geopolitical tensions and the conflict in Ukraine.

Trade between China and Russia witnessed substantial growth of 36.5% in the first seven months of 2023, totaling $134.1 billion, according to Chinese customs data. China’s exports to Russia surged by 73.4%, reaching approximately $62.54 billion, while imports from Russia also grew significantly by 15.1%, totaling $71.6 billion.

Soon after Russia’s invasion in Ukraine last year in February 2022, the bilateral trade between China and Russia dipped for a brief period of time and then picked up to reach record levels. 

Russia anticipates that its trade volume with China will surpass $200 billion this year, a notable increase from the approximately $185 billion recorded in 2022.

Surge In trade causing container imbalance 

As imports from China to Russia continue to surge, it is leading to a significant trade imbalance and container congestion. According to a report from the VPost, Russian railway depots are grappling with an overwhelming accumulation of empty shipping containers originating from China. Managers at Russian shipping companies have expressed concerns about the severity of the situation, describing it as “almost critical” in regions like Moscow and central Russia.

This container crisis is primarily a consequence of the deepening trade imbalance between Russia and China. Russia is flooded with more containers carrying goods from China than it can dispatch back. Furthermore, the commodities exchanged between the two countries play a role in exacerbating the problem, as Russian raw materials are primarily transported to China via rail tanks and open wagons rather than in containers.

In an attempt to improve the container congestion, Russian shipping companies have started offering discounts to expedite the return of containers to China. 

Overloaded Russian ports and roads are causing transportation inefficiencies. Although some investments have been made to improve infrastructure, fiscal constraints and the use of the National Wealth Fund to cover budget shortfalls complicate matters. Russia seeks Chinese investors to address these issues, but uncertainty stays due to recent actions against Western companies. However, Russia’s pivot to Asia hinges on substantial infrastructure development.

China-Russia trade: Current trends and prospects 

As we look ahead to the future of China-Russia trade, it becomes evident that despite recent declines in shipping rates, operators providing container shipping services are pressing forward with their expansion plans on this trade lane.

One noteworthy development is the entry of CStar Line, a newcomer in the industry, into the China-Russia trade arena. In a parallel development, Yangpu New New Shipping has expanded its Northern Sea Route service, connecting China to St. Petersburg. This expansion follows the successful eastbound trial voyage by the 1,638 TEU Newnew Polar Bear, which departed from Xingang in August. 

Despite recent rate declines in shipping to Russia, operators like CStar Line and Yangpu New New Shipping are finding profitability, especially during the summer peak season. Notably, cargo volumes from Busan to Russia’s Pacific ports saw a robust 6% increase in July, reaching 13,600 TEU compared to the previous month. However, the market faces pressure from new Chinese entrants, leading to a month-on-month decrease in the average freight rate for the Busan-Far East Russia route, ranging from $1,000 to $2,200 per TEU—a drop of approximately $100. These developments underscore the shipping industry’s resilience and adaptability as the China-Russia trade landscape continues to evolve.

 

Additional Data: 

Strengthening trade Ties with Central Asian nations

In 2022, trade between Russia and Central Asian countries increased by 15%, reaching more than $42 billion. This growth is attributed to strong trade partnerships among countries in organizations like the Shanghai Cooperation Organization (SCO), BRICS, and the Eurasian Economic Union (EAEU). Central Asian nations, such as Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan, collaborate closely with Russia on technology and independence-related matters. This expansion of trade bolsters Russia’s regional influence and strengthens its ties with Central Asian partners.

The compatibility between Russia and China’s foreign policy objectives, emphasizing multipolarity and resisting control, may strengthen their partnership in Asia, impacting the region’s geopolitics. This shift towards Asia represents a clear trend for Russia towards establishing better trade partnerships with Asian countries.

Russia’s European trade challenges

Russia, a key euro area trade partner, experienced a 50% dip in trade with the region. While euro area exports to Russia initially dropped quickly, they have since partially recovered for non-sanctioned goods, while sanctioned goods exports remain low. Russia also reduced natural gas flows to Europe, causing a 90% drop in gas imports. Europe compensated by importing gas from Norway, Algeria, and Azerbaijan while increasing liquefied natural gas (LNG) imports, substantially diminishing Russia’s influence in European energy markets.

EU trade with Russia has been strongly affected by import and export restrictions imposed by the EU following Russia’s invasion of Ukraine.  

Both exports and imports have dropped considerably below the level prior to the invasion. Seasonally adjusted values show that Russia’s share in extra-EU imports fell from 9.6% in February 2022 to 1.7% in June 2023, while the share of extra-EU exports fell from 3.8 % to 1.4% in the same period.

European sanctions and voluntary boycotts have redirected Russian trade away from the euro area, increasing dependence on non-sanctioning partners and leading to discounted commodity exports. This shift has reoriented Russia’s global trade, making it heavily reliant on China and other Asian countries. 

It is clear that Russia does not foresee agreement with the US and the West, making Asia, particularly China and India, its top priorities in economic and military cooperation.

 

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Global Logistics, Global Trade Daily

A Sour Outlook for Q4: Crude Supply Cuts and Refinery Challenges

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The Organization of the Petroleum Exporting Countries (OPEC) and its allies are tightening the crude oil supply. This follows OPEC’s 2022 strategy and will likely continue through the fourth quarter of 2023. The US sectors most heavily affected are farmers, construction companies, and transportation businesses. 

The benchmark Brent crude price surpassed $90 a barrel for the first time in September while 1.3 million of estimated barrels have been cut daily. Crude prices are at a 10-month high and the heavy refined fuels that ships, planes, and trucks rely upon have skyrocketed in price. Diesel is up 41% while jet fuel registered a 24% increase (year over year). The latter has been rising steadily since May and Spirit Airlines, American Airlines, and Delta Air Lines all suffered a slide in their respective stock prices. The US Global Jets exchange-traded fund also declined 19% over the last three months. 

OPEC crude oil production is at its lowest since August 2021. Global economic contraction had led to slumping oil prices prompting OPEC’s (and its allies) response as one of aggressive supply restraint. On the other end, output increases by Venezuela and Iran have been notable. Iranian production reached a nearly 6-year high at 2.76 million barrels per day and Venezuela hit a 5-year peak at 810,000 barrels per day. Relaxed US sanctions post the Russian invasion of Ukraine were the likely catalyst behind the production uptick. 

Apart from supply, the world’s capacity to make diesel is also driving prices northward. Refineries are the engine and the Middle East and Africa have experienced delayed refinery startups while European refiners are struggling to make enough trucking fuel. One sector that is thriving is US refiners. Phillips 66, Marathon Petroleum, and Valero Energy are trading at near-record highs. Healthy refining environments are in excellent condition based on tight supply and ever-increasing demand. 

At a macro level rising energy prices pose serious risks for consumer inflation. Everything from meal deliveries to everyday goods and services is affected. Contracting inventories will likely maintain crude oil prices elevated until 2024 and the surplus that was enjoyed in the first quarter of 2023 is expected to reverse.  

 

      

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Global Logistics, Global Trade Daily, Trucking

6 Innovative Techniques to Maximize Trailer Space Utilization

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Empty trailer space may be small, but in reality it’s a significant waste. Fleets must use all available truck capacity to become as cost-effective as possible. Many understand the need to maximize trailer utilization, but irregular loads, fragile items and other complications make it difficult.

In other cases, fleet operators may not realize they have underutilized space left in their trailers. Whatever the specifics, most logistics providers can improve in this area, and thankfully, there are many potential solutions. Here are six innovative techniques fleet owners may have missed to use more of their trailer space.

Use More Vertical Space

Capitalizing on vertical space is one of the most common ways to increase warehouse capacity, and it works for trailers, too. When fully loaded, the average stacked pallet is 48 inches tall, and dry van trailers’ doors are around 9 feet tall. That leaves enough room for two layers of fully stacked pallets.

Of course, some goods aren’t ideal for stacking. Soft boxes and fragile items can’t support additional weight on top of them, but crews can place these items on higher layers. Ratchet straps or similar tools can secure higher-level items in place to prevent shifting in transport.

Another way to use more vertical space is to install decks within the trailer. Several companies now offer both pre-built double-decker trailers and aftermarket shelving solutions. This hardware lets employees safely stack at least two layers in each trailer, regardless of the load’s fragility.

Use Drop Deck Trailers

A similar way to maximize trailer utilization is to use more below-deck space. Drop deck trailers offer more space by lowering the floor below the height of the wheels where possible. That can provide at least two feet of additional storage area without creating a dangerously tall vehicle profile.

Most people are familiar with drop deck trailers in the form of open beds, but enclosed drop decks are another option. Loaders won’t be able to fit an entire additional pallet in this space, but it’s enough for a few boxes. If the trailer also utilizes a racking system, the weight on top of these items isn’t a concern, either.

Shipments in drop deck trailers can also stack in multiple layers on top of the dropped section to maximize space. However, fleets should keep their trucks’ maximum load weights in mind when filling trailers this much.

Choose Boxes Carefully

Fleets can also use more of their trailers’ space by rethinking the boxes they store shipments in. Crews can free a surprising amount of room by using different packages, compiling smaller containers into larger ones and assigning products to other package types.

An often-missed but important rule of thumb is to pack heavier items in smaller boxes and lighter objects in larger ones. This strategy ensures crews can fill every package as much as possible without making them too heavy to carry. Boxes are also more unstable the smaller they are, so the additional weight will help prevent excess movement.

Logistics providers can also account for smaller boxes’ instability by packing several of them in larger containers. This box-in-box strategy lets crews standardize larger package sizes, making it easier to create an even level for stacking additional layers.

Find Inefficiencies With Route Optimization Software

Another unique but effective strategy is capitalizing on route optimization software. These solutions have gained popularity for their cost reduction, as some fleets have attained 25% efficiency boosts through them. Fewer fleet operators realize the same software can reveal trailer underutilization.

Route optimization software will show when vehicles can make more deliveries per day than operators initially expected. When teams know they can complete more deliveries, they can pack more in the truck without fear of overloading. Fleets can also match vehicles to specific routes more effectively, ensuring they use vehicles that fit the exact size of their daily delivery schedule.

Efficiency gains from route optimization help, too. Underpacking often results from running out of time at the loading bay, leading trucks to leave before they’re full to meet deadlines. When this software makes routes more efficient, teams will have more time to load trucks, ensuring they don’t leave anything for a second trip.

Identify Gaps With Cargo Sensors

Similarly, fleets can maximize trailer utilization through cargo sensors. In most cases, fleet owners use Internet of Things (IoT) sensors to monitor shipment locations and quality throughout shipment. The same technology can also identify potential room for improvement in loading practices.

Cargo sensors can monitor the interior space of a trailer, detecting empty areas where additional boxes could fit. Over time and over the whole fleet, this data can reveal which regular routes are the most prone to under-packing. AI algorithms could analyze this data to find where the gaps arise and suggest new packing techniques to maximize the available space.

Cargo sensors can also help by leaving more time to load trucks, just as route optimization software does. Fleets can use this software to automate cargo inspections instead of performing them manually. As a result, routes will become more efficient, providing more packing time.

Rethink Fleet Sizes

Sometimes, maximizing trailer space is less about putting more items in one truck and more about using a smaller truck for fewer items. Fully packing a large trailer is only useful if the driver can still deliver all those items in one route. Alternatively, some fleets may use several fully loaded small vehicles when they could use fewer large ones to deliver the same amount in fewer trips.

If fleets are struggling with high operating costs and use a larger fleet of smaller vehicles, they may benefit by using fewer larger trailers instead. Studies show double-decker trailers cost less per year to operate than using multiple single-deck trailers to transport the same amount of goods.

By contrast, if fleets struggle to fill large trailers but don’t move enough goods to reasonably deliver more in one trip, smaller vehicles may be the answer. Fleet owners can compare trailer fill rates, delivery routes and fuel costs to determine if they should use bigger or smaller trailers.

Maximize Trailer Utilization to Maximize Throughput

If fleet operators follow these tips, they can ensure they don’t leave any excess room in their trailers. As a result, they’ll accomplish more work with the same resources, boosting their operating margins.

To maximize trailer utilization is to increase the company’s throughput. Before buying any additional trucks, fleet owners should ensure they use the ones they have as efficiently as they can.

 

Global Logistics, Global Trade Daily, News, Trucking

FERNRIDE Raises $50M Series A to Scale Autonomous Yard Trucking

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FERNRIDE, a German autonomous trucking innovator, has raised $50M in Series A funding to scale its human-assisted autonomous yard trucking technology. The funding round was led by Deep Tech and Climate Funds (DTCF), a $1BN venture fund backed by the German government, and Munich Re Ventures, the venture capital arm of Munich Reinsurance.

FERNRIDE’s unique approach to autonomous trucking involves using teleoperations to keep a human in the loop, which allows the company to deploy its technology more quickly and safely than other fully autonomous trucking startups. FERNRIDE has already partnered with leading industry players such as Volkswagen, DB Schenker, and HHLA to test and deploy its autonomous yard trucks.

The new funding will be used to accelerate FERNRIDE’s growth and technological development. The company plans to expand its operations globally and invest in its human-assisted autonomy platform. FERNRIDE is committed to using its technology to promote sustainability, increase productivity, and improve worker safety in the global supply chain.

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Global Logistics, Global Trade Daily

Maximizing ROI with Transportation Management Software: Understanding Features and Benefits

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The post-COVID world of logistics and supply chains has seen drastic changes. Keeping those in mind, you are probably no stranger to the constant evolution of transportation management software (TMS) and its impact. These days, supply chain businesses are pushing the boundaries of their freight networks with the help of some seriously advanced TMS software. Studies have showcased that Best transportation management Software features can give you an 8% return on investment (ROI), but hold on tight because the right software could go above and beyond that.

Speaking of savings, here’s a stat: Transportation management solution features have been known to reduce the time spent on tracking and tracing inquiries by a whopping 60%! Now, that’s some serious efficiency right there.

As we sail through changing times, with e-commerce booming left and right, the pressure’s on for retailers and supply chain leaders to up their game. And that’s not all – we’ve got sustainability in the spotlight too.

There are new government schemes that are passed with talks about electric vehicles and charging stations buzzing around. We are surely in for a wild ride that will ensure smoother operations in the supply chain. So, what’s the secret sauce? It’s all about strategic supply chain management. You’ve got transportation management software in your corner, but here’s the catch – it’s only as good as the magic it weaves through its features. 

Adapting to multi-route delivery: Can you guess what’s the most preferred TMS functionality for users? Its predictive estimated time of arrival (ETA). Without ETA knowledge, your delivery operations can become daunting. We’re talking about upset customers, restocking delays, and the whole downward spiral of operations. Every move matters, especially when you’ve got deliveries and pickups spread along the route. A transportation management system helps you find the most fuel-efficient paths, lowering operation costs by 25-30% annually.

Fewer miles = Lesser spend on fuel = Cost Saving = Rise in ROI

Unleashing the power of data analytics: The use of data is crucial to enhance ROI using TMS. It helps you access performance data like the use of owned-fleet vs outsourced fleet. Find bottlenecks in operations, details related to delivery operations, inventory management, and more. When you make decisions based on data, you can be assured of raising above your targets. 

Data Analytics = Cost-effective decisions = Optimized Processes = Better ROI

Automating delivery management: Finding the right balance between shippers and carriers is essential for seamless logistics operations. Ensure maximum capacity storage for shippers. While carriers ensure maximum deliveries are completed with minimum fleet requirements. The use of automated delivery management helps to adapt to current trends and fluctuating economic conditions. Additionally, transportation management software helps with compliance and documentation. This helps avoid penalties due to missing or expired documents and reduces manual paperwork that complies with enhanced ROI.

Maximum Storage Capacity = Lower Fleet Utilization = Rising ROI

Streamlining last mile operations: The use of a modern and advanced TMS ensures a plan to avoid disruptions and sail through any issues that may arise.  With a transportation management system and real-time visibility, you’ve got the tools to smooth out those last-mile wrinkles. The result? It improves delivery times, results in happier clients, and boosts ROI. This helps the leaders to boost the efficiency of last-mile operations.

Real-time Visibility = Improved Delivery Time = Happier Customers = Boost ROI

Planning for order returns: Delivering the parcel to the customer’s doorstep is not the end of the customer’s life cycle. Managing order returns is another headache that most companies fail to optimize. The use of modern transportation management software can reduce annual order return costs by up to 5%. In a world of ever-shifting markets, communication is the glue holding it all together. Add real-time alerts and notifications to the mix and ensure streamlined operations to enhance your ROI.

From the first mile to savings on order returns, it’s a data-driven symphony that’s transforming the supply chain game. The use of advanced TMS functions helps improve throughput and efficiency while deriving a stronger ROI. A transportation management system will not only streamline operations but helps improve ROI to new heights, leading your business to scale uncharted heights.

Summary

This blog focuses on key features and benefits offered by transportation management software. The benefits are tied up with the key metric C-level executives look for when purchasing any logistics software- Improved ROI. 

Author Bio

Matt Murdock works for a leading SAAS-based platform called LogiNext Solutions. Where he helps businesses optimize their logistics operations and improve their delivery performance. With a passion for innovation and technology, Matt is always looking for new ways to streamline logistics processes and enhance customer experiences. In his free time, he enjoys writing blogs based on his experience in the logistics industry. Happy reading!

 

Shipping 3pl
Global Logistics, Global Trade Daily

The 4 Pillars of a Successful 3PL Partnership

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Managing a supply chain is a full-time job. Without consistent oversight, your supply chain process could easily end up with excessive levels of inventory, delays in shipping or transportation, and all sorts of inefficiencies. In today’s convenience-obsessed economy, companies cannot afford to let supply chain issues go unnoticed or unresolved.

That’s why I believe an increasing number of business leaders are choosing to outsource logistics to a third-party logistics provider (3PL). 3PLs offer an array of essential supply chain management services, such as warehousing, transportation, order fulfillment, and inventory management. Think about it: did you decide to start your business so you could spend your days chasing down deliveries, both incoming and outgoing? Outsourcing logistics enables you to focus on the tasks you truly enjoy, like building a distinctive brand identity, growing your operation, and better understanding your customers’ needs.

Now that outsourcing logistics has become more commonplace, more 3PLs are popping up left and right. This can make it difficult to find the right partner for your business.

Track record and reputation 

One of the most important factors to consider when choosing a 3PL is your potential partner’s reputation. This isn’t one of those situations when there are advantages to partnering with a younger business with fewer customers. When it comes to a responsibility as crucial as logistics, it’s imperative to choose a 3PL that has a strong track record and can produce good references from numerous satisfied customers. 

You also want to find a 3PL who has experience working with companies in your industry. Every industry has its own challenges and regulations, and a 3PL that has worked with other companies like yours will be familiar with these challenges and regulations and know exactly how to navigate them. 

To that end, a 3PL with more experience is also more likely to have a larger network of partners. In the likely event of a supply chain disruption, a 3PL with more partners to count on can keep your supply chain running until the issue is resolved. In fact, you can get an even better idea of a 3PL’s reputation by reviewing references from vendors, carriers, and employees, not just customers.

Customization and flexibility 

Again, every industry has its own specific characteristics, and you want to partner with a 3PL that understands what makes your industry distinct. And due to the notorious complexity of supply chains, it’s important that 3PLs consistently adapt their services to meet the needs of each individual customer. A good 3PL will possess the resources to accommodate specific challenges of your business, such as unforeseen spikes in demand, or the need to maintain a certain level of inventory for a certain item throughout the year.

With this in mind, it’s also important to consider how your needs will change as seasons progress. Will there be times when you require additional services that you don’t need at this particular moment? Will the extent of your needs for each service change significantly? For example, at certain times of year, you may eventually require more storage space, or you may need to ship your items to further geographical distances. Your new logistics partner must be able to quickly scale up and meet these needs at any given time.

Finances and technology

Lots of 3PLs might say they are well-positioned for the future. Only some, however, will be able to prove it. When speaking with potential partners, be sure to determine whether the 3PL is in good financial shape and has made the necessary investments to succeed in the logistics industry of 2023. For example, if the 3PL has been able to consistently add new customers, has it simultaneously been making key investments in infrastructure and staff?

Another way to tell if a 3PL is ready for the future is the prevalence of advanced technology in its services. Does the 3PL consistently harness the latest transportation management systems, warehouse management systems, and freight forwarding software to improve efficiency and profitability for its customers? To what extent has the 3PL automated its fulfillment processes? A good 3PL should be able to rattle off all sorts of different ways it has stayed up to date with the latest developments in this ever-changing industry.

Customer service protocols

A reputable 3PL will have many customers, but that shouldn’t stop them from giving the same amount of attention to every single one. This is only possible if each customer has a designated point of contact who is fully prepared to field questions or concerns at any given time. 

As you’re well-aware, supply chains tend to become disrupted at the most inconvenient moments, and every minute that goes by could cause more orders to be delayed. For this reason, your new partner should have someone who will always be available to respond to communications and work with you to resolve sudden issues.

As you’re speaking with potential partners, ask them how they typically handle supply chain disruptions, and how you would contact them for support. A 3PL that understands the importance of customer service will have protocols in place for resolving different types of issues such as delivery errors or product recalls. It’s the 3PL’s job to help you maximize efficiency and profitability, so the last thing they should do is put you in a situation where you’re wasting time and money.

Final thoughts

Choosing the right 3PL comes down to determining whether a potential partner possesses the resources to simplify your business’s logistics-related challenges while also meeting the changing standards of the logistics industry. Once those boxes are checked, it’s just about getting the impression that the 3PL is ready to treat this new partnership as a top priority and can truly help you succeed.