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WHY DO WE HAVE A TRUCKING SHORTAGE?

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Archives, Global Logistics, Global Trade Daily, Trucking

WHY DO WE HAVE A TRUCKING SHORTAGE?

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The truck driver shortage presents an ongoing challenge for the logistics industry.  However, many people understandably wonder why it’s still a problem. 

One often-cited challenge is that there are not enough new drivers entering the workforce as veterans retire. A recent study confirmed that there were more than 14 million truck driver job postings between 2019 and 2020. That tremendous amount details the extent of the issue and suggests it will take time to address.

The research also concluded that nearly 57 percent of all truck drivers are older than 45. Then, almost a quarter (23 percent) are in the 55+ age bracket. 

A paragraph in the study explained, “The workforce composition suggests that young workers are not being recruited at rates that will replace current workers as they exit the market due to age or disability. This issue is further compounded by a relative dearth of younger workers overall compared to the abundance of baby boomers.”

Finding Women to Fill the Driver Shortage

Some trucking companies have dealt with the issue by ramping up their efforts to recruit women, a historically underrepresented group in the sector. One excellent way to do that is to focus on safety. 

Ellen Voie, the CEO of the Women in Trucking Association, says that the females who speak to her about the industry often cite safety as their top priority. However, maintaining safe working conditions and environments benefits everyone. 

She clarified that safety doesn’t only mean addressing one aspect: “That [safety] includes the maintenance of the equipment, the perception of when a driver should or should not drive in inclement weather or in areas of civil unrest, and how safe the loading dock is for drivers. Is it well lit, secure or in a dangerous neighborhood? Those are all aspects of a carrier’s safety culture.”

Canada’s Skelton Truck Lines found that recruiting women became easier when more females filled leadership roles in the company. It currently has nine female department managers. It’s notable that more than 30 percent of its drivers are women. The company also offers team freight so that women could do runs with their spouses. 

Efforts to recruit more women in the industry won’t account for all the aging workforce issues. However, they help, while making trucking a more gender-balanced industry. 

Industry Turnover Rates Exacerbate the Driver Shortage

Some people who get trained and licensed as truckers ultimately discover that they don’t want to make long-term careers out of the endeavor. However, some recent changes in the industry aim to provide more flexibility, which could reduce turnover rates.

More specifically, the U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) published new rules that went into effect at the end of September 2020. 

One of them is that drivers must take 30-minute breaks after driving for at least eight hours. There is no requirement that they are consecutive hours, and drivers can count periods when they are on-duty but not driving while calculating the eight hours. There is also an updated definition of what constitutes adverse driving conditions.

Pay Tops the List of What Keeps Drivers Committed

A 2021 study about truck driver retention showed some gender-based differences in what makes a person stick with the career and particular companies. However, the top concern for both men and women was that the company provided them with enough pay or settlement. 

Having a work/life balance was also more important for women, the study showed, as females ranked it as their third priority, and men chose it as their seventh. 

Carriers Mention Retention as a Pressing Concern

Another survey, this one published in October 2020, showed that trucking carriers brought up retention as their second most urgent problem. However, of the more than 1,000 drivers who responded, compensation was one of their primary concerns. 

Paying drivers more could be a vital step in making them feel that companies value them and their service. Moreover, it is ideal if compensation goes up according to a person’s experience level and reliability. Then, truckers should be more willing to stay in the career rather than looking for opportunities they perceive as more attractive. 

Another study indicated that 50 percent of drivers polled saw their current wages as uncompetitive. On top of that, many found that companies did not offer career paths for them. Data from that research also found that half of respondents did not feel safe on the road. If drivers struggle with feeling unsafe and realizing that they could earn more in other jobs, many will see what other possibilities exist. 

Obstacles Persist in Getting New Drivers Road-Ready

Getting more people interested in entering the trucking sector doesn’t solve the driver shortage. Industry leaders expect that COVID-19 restrictions could cause persistent backlogs that prevent new drivers from getting on the roads as efficiently as they otherwise might. 

For example, many Department of Motor Vehicles facilities delayed certain services during COVID-19 lockdowns and enforced social distancing rules that limited the number of people a location could serve in a given day. That affects all people who drive vehicles, including those who need to get their commercial licenses to operate trucks for the first time. 

Relatedly, some driver training centers had to close or hold smaller classes to abide by the applicable COVID-19 restrictions. Some people who were eager to get the necessary education may have found that they had to wait longer than anticipated to meet that goal. 

Drug Testing Crackdowns May Make Potential Drivers Wary

Another recent development related to the truck driver shortage is that the FMCSA’s Drug and Alcohol Clearinghouse took effect in 2020. It has already kept thousands of drivers from staying on the roads. 

New rules require all trucking companies to register in a database and conduct yearly queries on each driver. During 2020, the Clearinghouse system caught more than 56,000 violations, although just over 1,200 were alcohol-related. Marijuana was by far the most common drug found among drivers’ substance usage. Some people familiar with the matter attribute that statistic to the growing number of states that have legalized it.

When speaking about the 2021 driver shortage outlook, analyst Avery Vise noted that the Clearinghouse has “culled another 40,000 or so drivers directly from the market, and probably thousands more have exited because they think they might not pass a drug test.”

Other parties who specialize in driver recruiting noticed a decrease in new applicants. The tighter regulations for drug testing were not likely the sole reason for that trend. However, it could prove an important factor. For example, a person who uses legal drugs recreationally during their off-time might worry about getting called for a surprise drug test and not passing it because of their recent usage. 

That’s one example of how stricter regulations could worsen the driver shortage. If a trucker tests positive for marijuana, that does not necessarily mean they were smoking it while on duty. A person who keeps their legal drug use out of their work may ultimately decide that trucking is not an ideal industry after all due to the drug testing aspect. If they worry about their downtime choices affecting their careers, people may investigate other work opportunities. 

A Multifaceted Issue That Needs Strategic Solutions

This overview emphasizes that the industry could not target only one area to end the truck driver shortage. It’s an ongoing challenge that COVID-19 and other recent events negatively affected. 

However, one excellent starting point is for trucking company representatives to research the top things that their current drivers like and dislike about their jobs. That way, it’s easier to determine what to address first. If most people say that they enjoy their schedules but don’t get paid enough for what they do, that’s valuable information that could shape positive changes. 

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Emily Newton is an industrial journalist. As Editor-in-Chief of Revolutionized, she regularly covers how technology is changing the industry. Learn more at revolutionized.com.

counterfeit
Air Cargo, Archives, Global Logistics, Global Trade Daily

HOW DUBAI CUSTOMS STOPS COUNTERFEIT PRODUCTS FROM ENTERING THE SUPPLY CHAIN

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Dubai Customs continues to position itself as a leader in countering illicit product transport, with regular reports showcasing the efforts and successes throughout each year. Dubai Customs remains one of the leading organizations in halting counterfeit imports in the supply chain. Additionally, the organization continues to lead efforts in sustainable solutions for discarding seized products. In 2020, the organization recycled 1,906 counterfeit items ranging from computers to athletic shoes and mobile headphones.

In this exclusive Q&A with His Excellency (HE) Ahmed Mahboob Musabih, director general of Dubai Customs, we get a behind-the-scenes peek at how the organization continues protecting consumers and the environment from counterfeit products and the international supply chain from illicit trade.

Global Trade (GT): Please discuss how Dubai Customs has successfully stopped counterfeit products from entering the supply chain.

HE Musabih: Dubai Customs works to perform all UAE obligations under international trade regulations and agreements and pays great attention to the protection of intellectual property [IP] rights. These efforts have led the United States to a decision to remove the UAE from the Watch List for Intellectual Property, according to the annual report of the Office of the United States Trade Representative [USTR], an affiliate of the U.S. federal government, on the Intellectual Property Protection. 

The total number of IP disputes resolved by the department in the first quarter of 2021 was around 81 disputes, with an estimated value of AED [Emirati dirham] 11.3 million. In 2020, 255 IP disputes were resolved, with an estimated value of AED 62.2 million.

One of the most prominent seizures carried out by the department was the foiling of the smuggling of 58 counterfeit goods of oil and gas pipes based on a complaint received by the department from [Middle Eastern IP consultancy] Cedar White Bradley regarding counterfeit goods loaded in four containers coming from an Asian country to Dubai. The goods were to be brought to the UAE as original goods of oil transport pipes bearing the Vallourec trademark. These pipes posed significant risks to the environment as they were not capable of withstanding high pressure that the original pipes of that trademark were designed to withstand. This could have caused serious environmental damage if the counterfeit pipes reached the country of origin and were used for oil and gas projects.

Our efforts to combat counterfeit goods have resulted in the application of a series of measures and steps adopted by the department to resolve IP disputes relating to trademark counterfeiting goods. These measures and three steps are as follows:

1. Customs inspectors in our customs checkpoints suspect counterfeit goods through inspection activities.

2. Counterfeit goods are pre-monitored by the Smart Risk Engine System developed by the department to identify risks in commercial shipments prior to their arrival to our customs checkpoints.

3. A trademark infringement complaint is filed by the trademark owner or its legal representative.

GT: What role does technology play in halting counterfeit trade? 

HE Musabih: Advanced electronic systems and applications effectively contribute to countering attempts to smuggle counterfeit goods through pre-monitoring of risks in commercial shipments. Dubai Customs has developed the Smart Risk Engine System to manage and analyze customs risks efficiently to determine risk levels in future shipments and track prohibited, restricted goods and counterfeit goods before they reach customs posts of Dubai. This process is completed by inspection and detection by highly skilled customs inspectors. 

Last year, the department organized 10 workshops that were attended by 309 participants to familiarize customs inspectors and officials with how to distinguish between counterfeit and original goods. In the first quarter of 2021, two workshops were organized, which were attended by 68 participants.

The technology used in risk management has enabled us to control counterfeit goods. For example, the Customs Intelligence Department and Air Customs checkpoints management inspectors worked in coordination with the IPR Department to successfully thwart an attempt to bring a shipment bearing the “Vaseline” counterfeit trademark in the quantity of 17,280 packages coming from an Asian country via air freight, with a market value of about AED 400,000. 

GT: What are some best practices Dubai Customs recommends for preventing counterfeit/illicit trade?

HE Musabih: Prevention of illicit trade of counterfeit goods is an integrated process that should include thwarting the smuggling of goods across borders through cooperation between customs departments, border control and partnerships with the private sector represented by trademark owners. This requires development of the technologies used in inspection activities and improvement of the performance of customs inspectors through continuous training while raising awareness among consumers of the dangers of counterfeit goods.

The IPR Department, through the Awareness and Education Division, contributes to raising awareness about the importance of implementing the IPR Policy internally and externally, so that internal awareness activities target customs officials and inspectors while external awareness events organized by the department target all groups of society. The number of awareness events organized by the department in the first quarter of 2021 to inform customers, partners and the public of the importance of protecting intellectual property rights, reached 12 awareness events. There were 1,394 beneficiaries of these events, including inspectors, government department staff and school students. In 2020, about 46 awareness events were organized with 2,358 beneficiaries from these categories.

The department applies environmental sustainability standards in combating counterfeit goods to achieve the UAE Agenda for Sustainable Development by stopping shipments containing counterfeit goods while avoiding environmental damage resulting from their destruction, through recycling of counterfeit goods. Through these operations, Dubai Customs prohibits the re-export of counterfeit goods to limit the trade of these goods in the world. The department has recycled about 510, 000 pieces of counterfeit goods of 26 trademarks during the first quarter of 2021. In 2020, about 161,800 counterfeit goods of 60 trademarks were recycled.

GT: How does Dubai Customs ensure the security of the supply chain?

HE Musabih: Dubai Customs is making its best efforts to prevent counterfeit goods, having allocated substantial budget to develop its system of procedures through smart devices and innovations launched by the department with a view to improving its ability to counter smuggling attempts, most notably high-capacity scanners [X-ray]. Goods within containers are detected with six scanners operating under the Advanced Container Scanning System in Jebel Ali, with a capacity of scanning 900 containers per hour. These are supported by the operating room, which follows up on operations in customs checkpoints in addition to the Early Trademark Information System and the Smart Risk Engine System targeting risk shipments.

We have an intelligence-led approach to preventing illicit trade, which relies on effective data collection and analysis, risk profiling and targeting. The comprehensive system uses technology to support public awareness, detection, enforcement and sector-specific intelligence around illicit trade and smuggling activities that pose risk for the economy and the society. But when it comes to tackling illicit trade in counterfeits, we believe that improved IP enforcement and regulatory compliance are key, but this alone will not be enough without engaging all stakeholders and consumers through enhanced consumer protection and public awareness initiatives to ensure demand for counterfeit products is reduced. 

Learn more: 

https://www.dubaicustoms.gov.ae

https://www.wfmj.com/story/42253899/counterfeit-vallourec-tubes-seized-in-dubai

https://gulfnews.com/uae/crime/dubai-customs-foil-bid-to-smuggle-fake-vaseline-worth-dh400000-1.79303481

data
3pls, Archives, Global Logistics, Global Trade Daily

THE SOLUTION TO MITIGATING RISKS FOR TODAY’S 3PL COMES DOWN TO DATA

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Gaps in operations are not biased. Whether you are a warehouse manager navigating scheduling oversights or a fleet manager solving the next best approach to reducing costs, gaps in operations within the global logistics arena are inevitable. The real concern is how the modern-day 3PL provider can successfully mitigate risks while minimizing common gaps before they become a critical problem. 

Until one can jump to the list of solutions ranging from technology applications to hybrid work models, the most common (and possibly least talked about) gaps must be identified. Taking it a step further, 3PL providers should have a solid understanding of the why behind the what. In other words, they should ask themselves: Why are these gaps present within our operations and can they be resolved? Are these gaps common within the industry or are they unique to my company?

“One of the bigger gaps in the industry is the availability of timely and accurate data back to the shippers and to the community,” states Jason Carl, vice president of 4PL Solutions at BridgeNet Solutions. “3PLs are sitting on a wealth of data and information, and the ability to harness that effectively has always been a gap from my perspective. Delivering standardized timely information and data makes all the difference for a shipper in today’s environment.”

Carl has more than 15 years of experience in the logistics arena, ranging from ocean exports to operations. He originally started his career with Evergreen Line before moving on to BDP International for 13 years, managing operations for several multinational clients. He moved to BridgeNet two years ago to head the 4PL product.

BridgeNet Solutions, a wholly-owned subsidiary of BDP, provides sourcing, outsource sourcing procurement and managed transportation services focusing primarily on data analytics for more effective supply chain management.

BridgeNet’s cloud-based data solution, Xonar, is the company’s analytics and execution platform based on a foundation of accurate data collection combined with a robust analytics layer. Xonar enables BridgeNet to effectively collect and share critical information from shipper ERP systems, 3PL providers and freight payment companies. Carl cites this solution and the above capabilities as a game-changer for the company among competitors.

“Oftentimes what you find is that providers offering these solutions could be largely just software as a service or a technology company,” he explains. “At BridgeNet, we extend both the technology and the execution components to our customers, ensuring they can rely on an excellent integration hub paired with customizable technology based on the customer’s needs. We also offer a network of control tower operations based in Asia, Europe and the Americas to oversee that and to orchestrate the flow of information that’s moving through Xonar on a day-to-day basis.”

To be successful at identifying and eliminating common gaps in processes, the provider must consider the quality of the information coming in and going out. It is critical the provider understands where this information could be compromised–or even worse, completely missed. 

“3PLs need to understand the why,” Carl says. “Not just at the strategic level but also down to the desk level. It enables better decision-making on a day-to-day basis that really benefits shippers in ways that are often overlooked. The quality of the data can be a game-changer for planning processes and for decision-making overall. There is an increased recognition of that at least in the conversations I’m having.”

Beyond closing gaps in operations and day-to-day processes, Carl emphasizes the importance of looking at the big picture rather than just the result, citing innovative technology as a distraction for what is really going on layers deep within a data solution. 

“If the underlying data is not high quality, not standardized, not tightly controlled, then it’s not going to yield the results that providers want to achieve from that piece of technology. The value of that underlying information cannot be discounted. Before you go on the tech journey, providers should focus on the information that is going to fuel operations. This is where 4PLs can step in.”

As for the role of the 4PL provider, they are part of the bigger picture of where your data is coming from and what it all means. Data translation is equally as important as data collection. If a provider cannot identify the value from the data, the role of analytics becomes a moot point. That’s why Carl emphasizes the need to look and think outside of the box for solutions that are not only more cost-effective but add significant value to client needs. 

“4PLs can act as a translator or the intermediary to help provide data-driven insights to shippers by standardizing information from a multitude of 3PLs and then translate shipper’s needs and strategies for actionable change from the 3PL,” he says. “This bridge between the two entities can be a great help but it is not always the right fit for every shipper or for every supply chain. There are many situations where, now more than ever, a 4PL provider can provide a lot of value and support for 3PL operations and processes.”

Whether it is a pandemic or random disruption (think Suez Canal), the conversation of eliminating gaps in operations would be incomplete without addressing how the logistics industry has shifted looking back at the last year and a half. Buzzwords such as “agile” and “adaptable” might very well be accurate, but in what ways are 3PL providers being challenged to maximize their position in a competitive market? Carl points to letting go of the past as many companies still utilize lessons learned to affirm the success of the future.

“Gone are the days where the 3PL can rest on proverbial laurels and be complacent based on past success and relationships,” he warns. “The past 18 months have proven this. The existing network that 3PLs may have been operating for a customer for many years may no longer be sufficient in 2021. The needs are going to change, and it’s important that 3PLs are responding effectively to compete and be good partners for the shipping community.”

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Jason Carl is vice president of 4PL Solutions at BridgeNet, a BDP International company, where he oversees the development, performance and operations of the 4PL product and global control tower teams. He has more than 15 years’ experience helping customers improve and optimize complex supply chains through technology and process optimization. Carl holds an undergraduate degree in Economics from Austin College in Sherman, Texas, and an MBA in Strategy from Temple University’s Fox School of Business. He can be reached at jcarl@bridgenetsolutions.com. 

career
Archives, Executive Education, Global Logistics, Global Trade Daily

LESSON FOR THE DAY: ONE PROFESSIONAL’S CAREER PATH 

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In 2019, more than 11 billion tons of cargo were shipped internationally, according to the United Nations Conference on Trade and Development, and the dollar value of global trade that same year was approximately $19 trillion (U.S.).

The logistics required in the transshipment of products by sea, air, rail and truck are enormous, and the efficiency of the multitude of supply chains is equally as vital. Developing the logistical programs and building supply chain models require people with in-depth training in these sectors of cargo movement.

Patrick Bohan has been involved in supply management and logistics for several years. The director of Business Development with the Halifax Port Authority in Nova Scotia, Canada, Bohan says he would highly recommend a career path in these specific sectors.

He said his work in the area of supply chains has been “fascinating” and states that it is the supply chains that “make the world go around every day.”

Approximately 80% of global trade moves by ship and “even through the global pandemic, these supply chains had to keep functioning and were more important than ever,” Bohan stressed.

He said that, thankfully, with the necessary technology, “we had remote work capabilities and we had the devices we could get the work done from just about anywhere and that was important to keep lot of things going.”

After earning a business degree from Western University in London, Ontario, Bohan’s “first employee experience was in and around transportation,” he says. I knew how to use Excel (Microsoft) and spreadsheets plus other software programs.” 

With this background, he could see value in his training and felt “maybe I could work in this industry for the long term.” Bohan saw an opportunity in the transportation field. “To be quite honest,” trade globally was growing and getting more sophisticated in terms of overseas trade, as both inbound and outbound supply chains were being “connected around the world,” he said.

He started working in transportation in the 1990s and as his experience began to develop, he wanted to get more into logistics and supply chain management. So, he felt the best way for him to accomplish that was to become a Certified Logistics Professional (CCLP) through the Canadian Institute of Traffic and Transportation (CITT).

Bohan worked on correspondence courses at night and during weekends and studied “basically all different modes of transportation and warehousing and distribution topics. When I completed the courses and had five years of full-time work experience, I qualified for the designation and every year there is some upkeep required.

“That was my first specific training in this field and it has served me well, to move up the learning curve in an efficient way and to get some clues about where the world is going in that industry,” he said.

Although his career was moving forward, Bohan said the shipping industry and his specific areas of supply chain and logistics are always evolving and changing and a mid-career refresher was important in his line of work.

“I had been out of school for about 10 years and working and by going back and doing my MBA [Master of Business Administration in International Business at Saint Mary’s University, Halifax], I had freshened up on the changes that had taken place in the world.”

The MBA program proved invaluable to Bohan because it had “an international project, too, which I was able to complete using work-related concepts.” He said the research project was related to his work at the port and involved some trade with China and Vietnam. “It was timely because in 2005,” when Bohan was doing his MBA, China and Vietnam “were coming into their own and the port had a lot of interest with what was going on in that part of the world with Asian trade.” 

He looked at the Asian market from the perspective of how this industry would change some of the trade patterns as well as logistics and supply chain habits.

Bohan, who was involved in the early stages of building Asian trade through Halifax, actually went to China and Vietnam for two weeks as part of his MBA project.

“Southeast Asia seemed to be where the action was and the MBA project certainly helped,” he said. It was his first trip to those countries and it provided him with “good, direct connections” with the work he was doing at the port.

In a further comment on a refresher program for mid-career professionals, Bohan also suggested “some kind of specialized certification in your field.” He said an MBA or a certification program would provide “the best path to discover things that may have changed from early career to mid-career.” 

With the shipping industry and supply chains constantly evolving, updating in mid-career is also important in dealing with new technology and data streams, things which increase efficiency of supply chains, said Bohan. Early in his career, he had some ideas of where the world was headed based on training and technology and how it could be adapted to make supply chains more efficient. 

Looking into the future now, Bohan said there are discussions about artificial intelligence and other technologies, which seem to be moving to the next level where the machines might actually learn logistics and supply-chain models and update them.

So, he stressed, “I think it is very important for people in mid-career to touch base with the technology, get comfortable with it and find out what it can do so they don’t feel the world is passing them by.”

And in the shipping industry in particular, with the constant introduction of larger container ships, improved technology is vital with changing supply chains and logistics in handling cargo.

“Without technology, it would be impossible to imagine if you had a 24,000 TEU ship and had to keep track of every single container plus the speed of planning, the arrivals, getting them unloaded to rail or truck and the transshipment to many locations,” Bohan says. “Without technology, can you imagine the volume of paper?”

In his work at the Port of Halifax, Bohan has occasionally been invited to speak to high school students about the port, his role there and how things get from one side of the world to the provincial capital of Nova Scotia. 

He believes that speaking to these students—or even providing business programs on supply chains and logistics as part of a curriculum—would be beneficial “because so many jobs and careers are somewhat related to supply chain.” Having their young eyes opened to the field early, Bohan added, may be advantageous compared to having to make last-minute decisions later in life.

WHAT THEY’RE LOOKING FOR

People looking to the transportation industry for a career with a focus on logistics and supply-chain management should know that many employers are looking for specific things from new recruits.

Take enVista, for example. Based in Kansas City, Missouri, the global software, consulting and managed services provider was founded by supply chain and technology experts in response to market demand for skilled consulting services.

“In terms of training for labor-management consulting roles, we do have a multi-phase training approach that consists of on-the-job training, introductory classroom training and specific vendor application training, i.e. Blue Yonder, Korber, etc.,” says enVista Vice President Tom Stretar. 

“In addition, for warehouse management, labor management, and transportation consulting roles, the common college degrees we keep an eye out for include, Supply Chain Management (BA/BS or MBA) and Industrial Engineering or equivalent type engineering degrees, like Mechanical Engineering (BS), Computer Science Engineering (BA/BS) and Data/Business Analytics (BA/BS).”

First published by Reuters

port management
Archives, Global Trade Daily, U.S. Ports

LAMAR’S PORT MANAGEMENT PROGRAM ENHANCES CAREERS AND BUILDS KNOWLEDGE

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Lamar University’s new Center for Port Management prepares today’s port and terminal management professionals for tomorrow’s industry challenges and opportunities. The center’s flagship offering is the fully online Master of Science degree in Port and Terminal Management. The 12-course program blends theory and practice through course content and delivery, taught in equal measure by industry experts sourced globally, and faculty from Lamar’s Business College and Industrial Engineering Department.

“Throughout my 40-year career, the port industry has sought an advanced degree in port management that would recognize the exceptional nature of this critical profession, as well as advancing its practice,” says Erik Stromberg, the center’s first executive director. “As an industry veteran, my focus is on the application of knowledge to the practice of port management.

“Historically, port managers prepared for their significant responsibilities through on-the-job training and continuing education as offered by trade organizations, such as AAPA,” says Stromberg in reference to the American Association of Port Authorities, which he ran for 10 years. “The required set of skills and knowledge could take years to develop, but even then, it would typically address the manager’s functional focus and not the broad spectrum of port authority roles and responsibilities.

“Our port master’s degree program spans the many interdisciplinary skill sets a senior port leader needs to understand and apply. Management skills training in leadership, team building and decision-making are included in the curriculum. The curriculum also addresses one of the most important port management responsibilities, which is to balance the public and private sector roles a port authority must play.”

Stromberg continues, “Importantly, one of the very important if less obvious roles our port industry veterans play in delivering course content is to convey the normative value of port management. Port authorities operate as a public enterprise, requiring management acumen and business-like efficiency in the delivery of public goods—jobs, economic development and waterborne commerce. There is a tangible aspect of port management that prides itself on generating public benefits, as well as achieving commercial success that engenders a strident dedication to the craft.”

The center’s program also provides continuing education to Texas and West Gulf ports and terminal managers, primarily through the SE Texas Waterways Advisory Council’s Education, Research and Workforce Development Committee. Two very successful programs—“Women in Transportation Management—Ports and Terminals” and the annual “Hurricane Planning” workshop/webinar—recently concluded.

The third aspect of the center’s activities lies in sponsoring industry-relevant research. Most of the supported projects have successfully facilitated safer and more efficient waterborne transportation and waterway utilization. These projects, along with information about the center’s education and training programs, can be found at lamar.edu/portmanagement.

Location Data
Archives, Global Logistics, Global Trade Daily, Trucking

Three Ways Location Data is Creating In-roads for Driver Safety and Efficiency

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Ensuring a safety-first work culture is essential for those within the transportation and logistics (T&L) industry. In fact, according to the latest National Census of Fatal Occupational Injuries in the United States, more than one in seven on-the-job deaths occur in the heavy-duty trucking industry. When mapped, approximately 10,000 truck crashes occur every month, across nearly all 50 states.

In today’s interconnected, global supply chain and “need-it-now” world, expectations for delivery windows are shortening, thereby challenging fleet managers to balance increasing fleet speed and efficiency — without sacrificing drivers’ safety.

As a result, many are looking to location data to provide real-time intelligence to inform everything from driver behavior analyses to improved workload scheduling. Here are three ways location intelligence is paving the road for faster, safer, and more efficient fleets.

1. Enhanced driver behavior analyses

It’s imperative fleet owners implement safety-focused measures not only to protect their employees but their businesses as well.

Fleet owners are creating more risk-averse fleets by performing regular analyses of driver behavior using location data. Through real-time analytics and insights provided, fleet managers can compare geospatial (e.g. road features and weather conditions) and other legal factors (e.g. posted speed limits) against an employee’s typical driving habits to make a proper assessment of an employee’s driving behavior.

Additionally, by performing regular analyses of driver behavior, fleet managers can work with employees to improve their driving behaviors and reward these positive habits to ensure they stick going forward – including everything from good driver incentive programs to additional vacation days or even cash bonuses. Along with improvements to overall workplace collaboration and culture, these types of incentive programs can also and lead to better company savings through reduced insurance premiums for good drivers.

2. Increased road condition awareness

Weather conditions can change in a matter of seconds. While snow or extra gravel on the road may serve as minor nuisances for the everyday driver, these types of debris can heavily impact the safety and efficiency of those driving over 6,000 lb. of steel.

To better protect drivers from hazardous road conditions, fleet owners have invested in truck navigation systems equipped with robust location intelligence in order to ensure drivers are navigating through safe and optimal routes. These systems provide up-to-date geospatial and weather data, allowing fleet owners to generate optimal delivery routes avoiding dangerous road conditions or other factors interfering with the delivery process. Simultaneously, the real-time location intelligence these platforms provide can help inform drivers of any sudden accidents, lane closures or even extreme weather.

Take for example a logistics company assigned to transport medical supplies from the East to West Coast in the dead of winter. Prior to the trip, a fleet manager can use a system equipped with real-time location data to create the optimal route avoiding significant weather conditions or road closures for their fleet. Then, if any other spontaneous weather or hazardous road conditions arise while a driver’s on the job, they can reference the data from their truck navigation system and work with their dispatch team to quickly adjust the route to ensure the job is completed in a safe and timely manner.

3. Improved workload scheduling

Workload scheduling for fleets is more complicated than one may think. Outside the challenges of route planning itself, fleet owners must factor in rest time for drivers – including specific areas for drivers to park, rest, eat and even shower. Additionally, fleet managers need to ensure work schedules abide by ELD mandates and are the most fuel and time-efficient from a cost perspective. If a workload schedule doesn’t account for all these factors, fleet owners could face more than just an angry complaint from an employee.

In order to both streamline workload scheduling efforts and ensure the safety of employees, fleet owners are turning to workload scheduling software to facilitate this routine task. These types of software platforms are enterprise-grade and provide real-time location intelligence, making them the optimal solution for fleet managers to effectively plan routes and schedules before drivers leave for their journeys.

As seen by the versatile applications of location intelligence, it’s clear how this modern-day solution is helping commercial fleet operators improve safety protocols within their company. While it may be easier for professionals within the T&L space to use native mapping software found on computers or mobile devices, these programs do not provide the essential intelligence needed in order to plan and facilitate optimal delivery routes. As a result, it’s imperative for fleet owners to look into commercial-grade platforms equipped with location intelligence to create safer work environments going forward.

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Erminio Di Paola has been with HERE for the past 10 years starting his career as Director of Sales Support, then becoming Senior Director product management and most recently as VP Head of Fleet and Supply-Chain solutions. Erminio comes to HERE bringing over a decade of international experience from TomTom and TeleAtlas with a focus on building location-based services and applications while working with different business functions. He holds a bachelor’s degree in computer science and an International Executive MBA (SDA Bocconi/UCLA/Fudan).

dropshipping
Archives, Global Trade Daily, International Trade

Top Products You Should Avoid Dropshipping

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There’s a reason why dropshipping is such a popular business model among aspiring entrepreneurs. Selling products that you don’t need to ship or store is accessible in that it doesn’t require much capital to get started. Also, it comes with low overhead, and, with such a wide selection of products available to sell, entrepreneurs can more easily experiment with their business without too much risk.

It’s an excellent choice for business owners who don’t have a large space to operate within, considering the dropshipping business model has built-in inventory management. Entrepreneurs who use dropshipping can run their business from practically anywhere and don’t have to worry about many of the logistics involved in running a traditionally supplied business.

Still, for all the benefits of dropshipping, there are a few drawbacks that may lead to financial problems.

Along with the labor involved in order fulfillment, you also export your trust. Too often, well-meaning and legitimate dropshipping businesses find themselves entangled with suppliers who are out to make a quick buck at the expense of the customer. This ultimately damages your business’s reputation and may cause consumers to perceive it as a scam when really, you aren’t the problem so much as the dropship supplier is (which is why it’s so important to shop around and try out a different supplier every now and then).

There’s no doubt finding a reliable supplier can be difficult. And, even when your dropshipping supplier does come through for your customers, sometimes you are met with such a low-profit margin that you may wonder whether running an e-commerce platform is even worth it.

An e-commerce store is a great way to earn an income — provided you’re selling the right dropship product. One of the most common mistakes entrepreneurs make is to sell items willy-nilly, without considering the possible complications of the sales channel or order fulfillment process. To aid your discretion in what products you offer your customers, we’ve compiled a list of items to absolutely avoid selling in your online business, so you don’t make financial mistakes.

Your Dropshipping Business Shouldn’t Sell 11 These Items

1. Large Items

As the owner of a dropshipping business, you may be tempted to sell large items like furniture with the expectation that they will yield you high-profit margins. The furniture itself may be worth big bucks, but the headache is not.

Here’s why; If you’ve been in the dropshipping business for a while, you’ve likely used ePacket, a shipping method that is offered by third-party providers operating in China and Hong Kong. ePacket is designed to ship lightweight items at low cost and high speed. This is the shipping option of choice for popular Chinese online store AliExpress.

For a dropshipping product to qualify for this super-cheap, super-speedy shipping method, the weight of the package cannot exceed 4.4 lbs. The longest side of the package cannot exceed 60 cm (if rolled, the limit is 90 cm). You cannot use ePacket to ship anything worth over $400 U.S. dollars. The shipping cost for large items often surpasses what the item itself is worth, making this a poor choice for the dropshipping retailer.

For obvious reasons, furniture is a no-go for ePacket shipping, which is why you should avoid it altogether as a dropshipping model. Not to mention, there is typically a higher risk of large items being damaged in transit than smaller items.

2. Items That Cost Over $100

If you want to keep your dropshipping company profit margins up, don’t bother with items that cost over $100 before shipping and handling. Of course, you can opt to have a pos financing system, but anyway, there are several reasons why selling expensive items doesn’t make a whole lot of sense.

For one, your customer base is looking for a bargain. They’ve come to your website because they think they’ll find a good deal there. Because the customer is coming in with that expectation, it’s unlikely they’re willing to spend any amount in the triple digits on a single item.  Customers who are willing to pay more will likely avoid a discount site altogether.

Secondly, it’s hard to justify the markup on items worth more than $100. If the wholesaler’s price is already high, there’s less of a chance you’ll be able to get away with charging the customer much more.

And lastly, items with a hefty price tag, such as specialty or luxury products, are already offered elsewhere in abundance. For instance, if someone wanted to purchase a musical instrument such as a bass guitar — which is a high-cost item, even at a discounted price — they would likely go to a specialty store rather than purchase from your business. While finding a niche for starting your own online store is a great idea, it’s highly recommended that your niche items are not inherently expensive.

3. Clothing and Shoes

One of the greatest woes of buying clothes online is that you can’t try on a piece before you buy. Sometimes you can’t rely on product descriptions or product images, either.

Too often, this leads to disappointment, negative customer reviews, and returns. The returns you may have to deal with as a merchant could be enough to make you vow never to sell clothing again. Any item that must be sized, whether clothing or shoes, has a higher likelihood of being returned by the customer.

It’s also very easy to unknowingly misrepresent an article of clothing. For example, if you are an e-commerce business that only ships to the U.S., but your dropshipping supplier is a Chinese clothing manufacturer, it’s likely that the clothing is sized incorrectly for a U.S. audience. Consumers may become confused about irregular sizing, leading to mixups, frustration, and returns.

A disgruntled customer may take to your e-commerce store’s website to complain that a pair of jeans don’t fit as specified or look like the picture, and a bad review will scare away a potential customer. For this reason, it’s best to stay away from any sized items at all — it’s just not worth the hassle.

4. Fragile Items

Fragile items, such as glass and porcelain dishware, figurines, etc., can present a problem in transit, especially when shipping internationally. Depending on the quality of packaging by the wholesaler, an item might arrive damaged or broken. The safer option is to only ship plastic and other non-breakable materials. If you’re determined to ship fragile items, it’s a good idea to consult your dropshipping supplier about their fulfillment method. Ask your sales channel how they package that particular item, especially if it is a new product about which you cannot find much information. You may also want to read reviews of the item to see whether customers experienced problems with how their package arrived.

5. Supplements, Diet Pills, and Health Products

It probably won’t surprise you to learn that Facebook has stringent advertising policies. In addition to an extensive list of products (healthcare items and supplements included) that cannot be advertised on Facebook, there are restrictions pertaining to how you can advertise a new product in your online store.

Supplements cannot be advertised at all, and images showing “before and after” results are also not allowed. You also cannot use product images in a way that implies achieving health goals, such as muscle gain or weight loss, will occur as a result of using a product.

Supplements, diet pills, and health products are all items to avoid, considering that Facebook is a major driver of revenue for many a dropshipper. Without Facebook advertising, it may be harder to move your products. That is the number one reason why the above items don’t make great products; however, there are additional arguments to be made about the legality and safety of these products — some of which may be unregulated by the FDA or may even be illegal in some countries and regions.

6. Safety Equipment

Selling safety equipment simply puts the merchant at a far higher risk of liability than is necessary. For example, say a customer buys a motorcycle helmet from your website. By virtue of being a helmet, it is meant to protect the consumer from a head injury. If that customer gets into an accident while wearing your helmet and the helmet doesn’t perform as promised, you may have a major lawsuit on your hands. Since you can’t check the quality of items yourself, you’re placing all your trust in the supplier’s quality control.

However, this doesn’t mean you can’t sell equipment related to activities like motorcycling — just steer clear of equipment meant to protect consumers from serious injury. Examples of safety equipment to avoid include:

-Helmets

-Shoulder pads

-Mouthguards

-Flame retardant clothing

-Safety gloves

-Safety glasses

To a lesser extent, this even extends to equipment for electronic devices, such as a supposedly waterproof phone pouch, screen protectors, or other hardware meant to protect electronics. While you’re less likely to get a lawsuit thrown at you over a broken phone screen, your customers will not be happy, and you can expect a rather scathing review.

7. Counterfeit Items

It should be fairly obvious that selling counterfeit items is yet another invitation for trouble — if not just for legal reasons, then for your business’s reputation. It is completely illegal to sell counterfeit goods, whether you are producing, selling, or transporting such goods.

The top five counterfeit items most commonly bought on the internet are:

-Watches and jewelry

-Handbags and wallets

-Consumer electronics

-Consumer products

Pharmaceutical and personal care products

Whether or not you knowingly sold counterfeit goods, you can get in a lot of trouble. This is why it’s best to keep a close eye out for products of the above types that appear to be replicas of branded items. If the supplier price seems too good to be true, it probably is.

8. Weapons

Even if you are selling weapons such as pocket knives in a completely legal way, they can be a major annoyance to sell. The legality of a particular type of knife, for instance, may vary from region to region. Someone who is unfamiliar with weapon laws in countries their online retailer ships to would do best to avoid selling weapons altogether. There may be legality issues with selling items across national borders as well. At worst, your e-commerce business has unwittingly sold weapons that are illegal in a particular country; at best, a shipment doesn’t make it past customs. In the end, it’s probably not worth the trouble and risk of selling dangerous items.

9. Common Household Items

Avoid selling common, everyday items that consumers can find at just about any corner store. The reason? Well, just that. If you’re selling a generic item that can easily be purchased at any other store, including brick-and-mortar stores, you don’t have much of a competitive edge. For example, if a consumer has run out of toothpaste, they’re likely to buy it at any nearby drugstore. There is no incentive for the customer to buy from you, especially if they will have to wait several days to weeks for the item to arrive. But, if you sold something that was unique, such as a trendy type of teeth-whitening toothpaste with “exotic” ingredients, customers may be willing to wait for your specialty toothpaste (and hopefully buy some regular toothpaste in the meantime!).

10. Cosmetics

The reason for avoiding cosmetics is similar to the reasons for avoiding items five and seven. Namely, you may end up accidentally peddling a good that is untested or unapproved by the FDA, and possibly even counterfeit. Counterfeiting makeup has become an extremely lucrative venture. Unfortunately for the duped customer, counterfeit cosmetics often contain unregulated and unsafe ingredients that can cause skin irritation, damage, and serious allergic reactions. The same goes for cheap makeup brands from foreign countries; they are often not regulated or held to the same standards as higher quality brands. They may contain highly toxic ingredients — something you definitely don’t want passing through your hands and into the hands of your customers.

11. Copyrighted Items

Selling copyrighted items is one of the biggest financial mistakes you can make on your e-commerce platform. Just like with counterfeit products, selling items that violate copyright laws is illegal. It may be tempting to sell items that are copyrighted because there is an existing fanbase you can target; however, it’s not a good idea. Should you be caught, legal charges can be brought against you, and your store may be shut down entirely. Companies like Disney and its subsidiaries are well-known for going after any instance of copyright infringement. A small dropship company that is found to be violating Disney’s copyright, for instance, stands almost no chance of recovering from a lawsuit.

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Mike Austin is a Content Director at Adrack.com. He has worked in the Digital Marketing industry since 2009. As a conversion-driven marketer, he is passionate about helping businesses expand their online visibility and reach their goals.

kerry logistics
Archives, Global Trade Daily, News

KERRY LOGISTICS OPENS UP MONGOLIA TO U.S. BUSINESSES

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Kerry Logistics is a global logistics services provider with an extensive presence in the USA. In 2019, the firm was ranked the third-largest NVOCC (Non-Vessel-Operating Common Carrier) in terms of Trans-Pacific trade, handling more than 425,000 TEUs.

In December 2020, it announced a new series of multimodal transport solutions to Mongolia, designed to offer an alternate route to a market with untapped potential. 

Specifically, the latest offerings cover road-rail and sea-rail freight for dry and temperature-controlled cargoes between North America, Europe, and landlocked Mongolia via the Freeport of Riga, Latvia. 

William Ma, group managing director of Kerry Logistics Network, commented: “The new services greatly enhance the freight cost-efficiency and variety of solutions to Mongolia for our customers. To access the landlocked Mongolia, our strong rail freight capability in Central and East Asia gives us an invaluable advantage.” 

Kerry Logistics has a firm foothold in the U.S. from which it can help exporters to reach the Mongolian market. For example, it operates more than half a million square feet of warehouses in Southern California, Northern California, and Florida, facilities that employ more than 290 staff members. 

As well as opening opportunities in previously difficult to reach Mongolia, Kerry Logistics provides global coverage with offices in Canada, Mexico, India, the Middle East, South America, Australia, New Zealand, Europe and Asia.

intermodal
Archives, Global Logistics, Ocean Carriers, Trucking

IANA Releases 2021’s Second Quarter Intermodal Quarterly Report

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Second Quarter 2021 Intermodal Volume

Intermodal volumes improved for the fourth consecutive quarter, surging 20.4% year-over-year in Q2. This quarter’s double-digit increase was the largest quarterly gain since Q3 of 2010 and was also the sixth quarter with a double-digit growth rate in the history of the data. On a seasonally adjusted basis, total intermodal volume was 1.7% higher in Q2 than the previous quarter. This was anticipated, as inclement winter weather and service shutdowns held back volume in Q1. In Q2, all three market sectors had impressive growth. The domestic market, which consists of trailers and domestic containers, improved by 16.1% year-over-year. Trailer loads jumped 18.5% this quarter, compared to a 14.0% decline in Q2 of 2020. Domestic container traffic rose slightly less than trailers, at a pace of 15.7% year-over-year. However, domestic containers were up against stronger comparisons as this sector only lost 7.0% in Q2 of 2020. International volumes expanded by 24.8% this quarter, after declining 15.4% in Q2 of 2020.

On a regional basis, domestic container moves posted positive growth in all ten IANA regions in Q2. This was a change from the previous quarter when losses were present in both the Midwest and
Mexico. Only the Midwest and Eastern Canada increased less than 10% during Q2, rising 9.3% and 9.8%, respectively. Domestic container volumes were the best in western regions this quarter. The Mountain Central, Northwest and Southwest rose by 33.9%, 19.3% and 18.0%, respectively. In comparison, the eastern regions gained 15.0% year-over-year but were up against an almost 10% loss in the previous quarter. Stronger West Coast growth can be attributed to less trucking competition in the region and an overwhelming amount of imports flowing into West Coast ports and being transloaded. The trailer market sector surged by double-digits for the third quarter in a row during Q2. However, strong growth cannot be attributed to improving conditions but instead to weak comparisons. From Q4 of 2019 to Q2 of 2020, trailer volumes dropped 19.8% when compared to the previous year. As of Q2 2021, trailer moves were still considerably below 2018 and 2019 levels and it is unlikely that they will return to levels seen in prior years throughout the remainder of 2021. On a regional basis, this
market sector expanded in nine of the ten IANA regions. Trailers are currently not present in Eastern Canada, as the trailer lane was closed in early 2018.

Q2 is the second consecutive quarter with double-digit gains in international traffic and the third with positive improvements. Robust performance was bolstered by weak comparisons and soaring U.S. imports. As with last quarter, international volumes advanced in nine of the ten IANA regions. Mexico, the only region to decline in Q2, faltered 3.9%. However, this is one of the smallest regions, representing only 3% of the total international volume. International moves rose at comparative levels of 32.5% in the West and 32.6% in the East. And while growth rates were very close, Western improvement was more impactful as almost 30% of all international volume originates in this region.

Solid intermodal growth is expected over the remainder
of 2021. Strong domestic demand coupled with weak comparisons will bolster future gains. Intermodal volumes are forecasted to advance an estimated 9% during 2021. International traffic is anticipated to lead the annual improvement by rising almost 13% in 2021. Domestic container moves are expected to rise just above 6% over the course of the year, while trailer loads are estimated to gain between 1.5% and 2.5%.

In Q2 of 2021, total IMC loads rose significantly again, up 29.8% from last year. Q2 2020 volumes were down for IMCs, falling 10.0%, as COVID-19 slowed almost everything. Highway loads were up slightly more than intermodal loads, but both surged during the current quarter. Highway loads rose 33.4%, and intermodal loads grew 23.9% during Q2. Also, highway loads were up over 30% for all of the last three months, while intermodal loads slowed a bit as both April and May increased nearly 30%, but June was up only 11.5%. Total revenue rose in Q2, climbing 59.5% from 2020. Most of that surge was in highway activity that jumped 93.4%, reflecting the 45.0% rise in average revenue per highway load. Intermodal load revenue rose 29.2%, just a bit higher than volume because the average revenue per intermodal load was up just 4.3%. The normal growth from Q1 to Q2 happened again in 2021 with total loads up 6.7%, and total revenue increasing 9.7%. Part of that was due to intermodal volume and revenue slowing down significantly in February 2021 because of the weather.

Trucking Industry Outlook

Trucking posted modest quarter-over-quarter volume growth in the second quarter of 2021. Seasonally adjusted tractor-trailer loads were up 1.1% quarter-over-quarter. While dry van loadings had led growth in Q1, it was the only segment to experience a small decline in Q2 of 0.3%. Refrigerated loadings increased 1.4% q/q while all other loadings were up 2.1%, which is a reflection of the industrial sector’s recovery after lagging the consumer sector.

Short-haul tractor-trailer loadings were the only length of haul to decline in Q2, easing 1.3% quarter-over-quarter. Short-haul had also been the only drag in volume in Q1. The strongest quarter-over-quarter growth was in the super long haul which was up 2.2% quarter-over-quarter. Long-haul rose 1.6%, and medium-haul was up 0.9%.

Trucking volume was 14.0% higher in Q2 than in the same 2020 period. Comparisons range from being up 8.2% in short-haul to a 19.4% differential in long-haul. Dry van was 18.8% higher. refrigerated was up 7.8%, and all other segments were 11.6% above Q2 of 2020.

Active truck utilization – the share of seated trucks engaged in hauling freight – stood at 100% in Q1, basically in line with the extreme tightness seen in late 2017 and early 2018.

Hiring in for-hire trucking finally showed some signs of strength at the end of Q2 as payroll employment rose by 6,400 jobs, seasonally adjusted. The sector remains 38,300 jobs, or 2.5%, below February 2020 on a seasonally adjusted basis, although on an unadjusted basis, for-hire employment has essentially recovered to February 2020 levels.

While June’s job growth was the strongest since November, the first half of the year remains relatively weak with the addition of just 7,600 jobs, seasonally adjusted. By comparison, for-hire trucking in Q4 of 2020 had added nearly 29,000 jobs – the most in any three-month period in 25 years.

It is unclear how much loosening, if any, trucking has seen in the headwinds for adding drivers. Although the licensing of new drivers presumably has improved since the heights of the pandemic, hard data is lacking.

Net orders for Class 8 trucks are finally coming back down to normal levels. After orders of 40,000 or more in each month of Q1, they decreased to nearly 35,000 in April and moderated further to the mid-20,000s in April and June. However, one clear factor in the decline is that order boards for 2021 have been filled and manufacturers had not yet opened the boards for 2022.

Truck freight has not shown any signs of weakness, though it is showing indications that growth might have peaked. Total spot market volume by the end of June was off the peak in May, although the flatbed sector was mostly responsible. Dry van and refrigerated volumes through June were holding at near-record levels if the year’s two big spikes – February weather and the International Roadcheck inspection event in May – are excluded. Moreover, spot rates might also have peaked, but they have not moderated significantly yet.

Freight volumes are expected to slow but experience steady q/q growth into 2022. For 2021 as a whole, truck loadings are forecasted to be 7% higher than 2020 levels.

Freight demand pressures are becoming more complicated. Automotive sales are starting to slide based on low production due to the semiconductor shortage. This bottleneck could keep demand high for an extended period. The large infusions of consumer stimulus that the economy saw in January and March appear to be over but advance payments of a child tax credit started in July and run through December could extent consumer spending. On the other hand, a $300-a-week supplement in unemployment payments to around 14 million Americans has already ended in nearly half of U.S. states and probably will not be renewed nationwide beyond early September.

The sunset of generous unemployment benefits could have some near-term implications for trucking capacity as well if it turns out that those benefits have been a constraint on drivers returning to work. Active truck utilization is forecasted at 100% through Q3 and an easing to only about 99% in Q4. However, this forecast does not assume a significant increase in driver employment as generous unemployment benefits end. Therefore, the forecast risk would seem to be mostly on an easing of active utilization rather than a hardening of it.

Another issue that bears watching is the ongoing surge in small new trucking companies since the middle of 2020. However, if the spot market begins to cool, many of these mostly one-truck operations might rush back to the security of employment with larger carriers.

Intermodal remains highly competitive with trucking due to very high rates and tight driver supply. This situation will likely continue at least into early 2022, however, could be affected by a quicker stabilization in the trucking market, as reflected by a peak in truck spot metrics.

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Archives, Global Logistics, Global Trade Daily, Trucking

DESPITE MANY CHALLENGES, TRUCKERS ARE KEEPING THE SUPPLY CHAIN MOVING. HERE IS HOW.

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Of all the lessons learned from the pandemic, the critical role of supply chain workers remains among the most significant. Simply put, without the people keeping things moving, the supply chain suffers. Truckers are among supply chain workers who represent industry resilience, ensuring deliveries and shipments are fulfilled before, during and after COVID-19. 

However, protecting truck drivers has become less of a thought and more of a formality in the new normal. We looked to Avi Geller, CEO and founder of Maven Machines, to give us an idea of exactly how truck drivers are handling the new logistics climate and what companies can do to further protect, support and retain their workers. 

“The pandemic has had a substantial impact on the trucking industry, requiring fleets to accelerate digital transformation efforts like the widespread adoption of data and AI-based technologies,” Geller said. “Increased demand since 2020, coupled with an ongoing driver shortage, has forced fleets to reevaluate processes, plans and current levels of efficiency. Route optimization and planning technology can automatically provide managers with the best possible plans by considering variables such as traffic, road quality and weather. As route optimization tech becomes more advanced, driver preferences and proficiencies can also be taken into account as variables in machine learning algorithms.”

Geller goes on to explain that in 2021, the stakes are higher than ever before. Companies no longer have room for error when it comes to compliance and transport conditions. And with the surge of demand in pharmaceutical transportation for the COVID vaccine, the transportation sector is under even more pressure to quickly deliver vaccines at accurate temperatures while keeping employees safe. Utilizing technology solutions to keep up with demand and meet shipment requirements will be a significant game-changer for many. 

“Companies must ensure that their drivers adhere to compliance mandates and delivery timelines,” Geller observes. “For instance, COVID-19 vaccines require super cold storage temperatures. Drivers carrying vaccines must follow the appropriate shipping protocols and reach their destinations on time to prevent costly disruptions to the super cold supply chain. More than ever, drivers are relying on fleet management software to increase productivity and using route optimization and workflow technologies to their advantage.”

If retaining drivers was not already an issue, recruiting qualified drivers continues to be a pain point for the trucking industry. And with COVID-19 now in the mix, fleet managers are seeing more of their drivers leaving and a shortage of talent to quickly replace them.

“The trucking industry’s largest challenge today is the shortage of qualified drivers,” Geller says. “We cannot afford to lose drivers, but more are leaving the field than we are able to replace. We need to continue to find ways to revitalize the driver workforce and encourage people to join the profession. The pandemic has only highlighted our dependency on these employees, who are some of the economy’s most essential workers.”

Geller reiterates the importance of providing drivers with an experience that stands out from competing sectors, including providing accommodative tech solutions to minimize redundancies and maintain driver safety as a priority instead of an afterthought.  

“To stop the driver attrition and attract more drivers, fleets must prioritize the driver experience—and the right technology can help them do so,” he says. “Route optimization, ELD, and fleet workflow software foster a safer, more productive work environment by providing drivers with the fastest routes, automating the most tedious tasks, ensuring compliance, and presenting stop-based forms and step-by-step workflows that help them progress smoothly through their assigned trips and ETAs. By better positioning drivers for success, fleets can improve driver satisfaction and give drivers opportunities to be rewarded with pay increases and safety bonuses, which could lead to increased driver recruitment and retainment.

Streamlining operations and communications in the new normal is simply not an option for companies that want to last. The phases of adaptation are behind us.”

Those companies that are left standing in 2021 must continue to advocate for workers while providing a competitive edge for customers through the effective use of technology and automation. Geller’s company, Maven Machines, puts drivers first with their specialized and tailored solutions that optimize operations starting at dispatch all the way through.

“Maven Machines provides fleets with solutions that increase efficiency and elevate their drivers’ work experiences,” he says. “Our solutions for dispatch, route planning, workflow, ELD and fleet management software facilitate driver and trip management while also meeting each fleet’s unique set of operational needs. By eliminating outdated legacy solutions and processes, we are helping to increase fleet success, including driver performance.”

Among the applications tailored specifically for drivers are large, color-coded buttons, alerts, document imaging tools and other utilities that drivers can rely on for communications. Geller states that this technology provides a safe, reliable way for drivers to focus on driving and still manage communications expectations.

“A streamlined messaging system for drivers to communicate with managers, along with other smart features and intuitive user interfaces, keeps drivers safe, on task and satisfied. The driver experience is important, and we’re proud to support drivers with our software.”

For every company, the customer comes first (after the workers, of course). It is important to ensure your solutions portfolio is flexible, adding to the customer experience instead of further complicating it. Maven Machine’s adaptable solution provides solutions for different customer requirements.

“Different customers require different processes, so our flexible Maven Workflow solution takes that into account and provides drivers with the right workflow for their stops and trips,” Geller says. “It is a game-changer in terms of driver productivity. Our dispatch and route optimization software provide drivers with the fastest and safest routes so that they can make more on-time pickups and deliveries. With Maven ELD, drivers use a simple mobile HOS app that allows for faster log editing, helps them reduce HOS violations, and ensures FMCSA compliance.”

In conclusion, providing a safe, reliable, and pleasant experience for drivers and customers is not a new concept. Some would argue that it has always been a priority while others claim it took the pandemic to bring back the saying that when you take care of the workers, they take care of business. 

____________________________________________________________________

Avi Geller is the founder and CEO of Maven Machines. Since 2014, he has led Maven’s growth as an IoT platform that serves the transportation industry through real-time, mobile cloud enterprise software. Avi originally hails from Palo Alto, California, but he started Maven in Pittsburgh, Pennsylvania, due to the city’s impressive innovation and technology resources. Prior to founding Maven, he held international positions with SAP and contributed to the growth of several successful software companies and startups. Avi has an engineering degree from MIT and an MBA from Northwestern University.