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Monday, June 1, 2020
Logistics Intelligence Brief
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YRC Worldwide Companies Recognized as 2020 BEST Award Winner by the Association for Talent Development

YRC Worldwide Press Release May 29, 2020

“It’s a tremendous honor for the ATD to recognize YRC Worldwide with a BEST Award, honoring the company’s commitment to learning and development,” said Sarah Statlander, VP – Human Capital & Talent Acquisition. “Across the organization, our leaders prioritize employee development, recognizing continued learning as a critical piece of growing our workforce and building up future leaders. Moreover, talent development is ingrained in YRCW’s culture and how we attract and retain top talent.”

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US truck dwell times declining, but detention still a problem

The Journal of Commerce William B. Cassidy May 29, 2020

Truck driver detention times that soared in March may have dropped as demand for essential goods eased in April and May, but truck drivers, carriers, and shippers have not stopped searching for solutions to a problem that cuts into available capacity and frustrates truck drivers. Those solutions will inevitably involve technology that better tracks the movement of trucks and the time they spend at shipping and receiving facilities, helping carriers, brokers, and shippers, more precisely identify when and where excessive driver detention is taking place. In some states where volumes have increased since the beginning of May, truck dwell time at pickup and delivery sites has dropped 10 to 20 percent, according to Fourkites. That is highly unusual, and probably related to the pandemic, the supply chain visibility provider said.

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FedEx & UPS Suspended Service Guarantees During Covid. So, How Are They Performing?

Logistics Management Keith Myers May 29, 2020

Shipware compiled delivery data for both carriers during the Covid-19 pandemic (Figure 1). Figure 1 FedEx service performance has been trending worse than UPS thus far during the pandemic. On-time percentage is in the low-90s for most weeks but does lag behind the pre-Covid performance. FedEx maintains separate networks for Ground, SmartPost and Express, which makes them less flexible than UPS in this new environment.

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Dollar Tree: Distribution center pressure will continue even as supply issues resolve

Supply Chain Dive Emma Cosgrove May 29, 2020

The panic-buying phase of the COVID-19 pandemic may be largely over, but essential products, including cleaning agents and paper goods, are still flying off the shelves and, therefore, rushing through warehouses. Inventory per selling square foot was down for the quarter — down 3% for Dollar Tree and down 7% for Family Dollar, year over year — which executives attributed to increased stock-outs. "We send the essentials to stores every week. They used to last about two hours. I would tell you now, it's probably lasting between a day and a half to four days depending on who's getting what amounts," said CEO Gary Philbin.

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Why the pandemic was a windfall for (some) dollar stores

Retail Dive Ben Unglesbee May 29, 2020

GlobalData Retail Managing Director Neil Saunders called Dollar General "one of the major beneficiaries of the crisis," pointing to a few particular advantages of the retailer. One was consumers stocking up on food and household goods. Another was the locations of its stores, which Saunders noted are typically located in areas underserved by other large chains. "This localness was a major advantage during the crisis when many households were reluctant to travel too far and some were nervous about visiting big box stores where it is very difficult to reduce dwell time," he said.

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Trimble and Kuebix roll out upgrades to Community Load Match platform

Logistics Management Jeff Berman May 29, 2020

Earlier this week, Sunnyvale, Calif.-based Trimble, a provider of end-to-end technology solutions to for-hire motor carriers, private fleets, freight brokerage, and third-party logistics providers, and Maynard, Mass.-based TMS provider and creator of the North America’s largest connected shipping community Kuebix rolled out new capabilities for its Community Load Match platform, which facilitates collaboration between shippers and carriers to optimize how freight moves throughout the supply chain.

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Major trucking lender BMO sees bigger transportation impairments, writeoffs in Q2

Freight Waves John Kingston June 1, 2020

The quarterly earnings report of Canada’s BMO bank, one of the largest lenders to the trucking sector in North America, reflected a deterioration of the company’s book of business with the industry. Virtually every benchmark number broken out for the company’s transportation sector in the second quarter ended April 30 showed a sequential weakening compared to the first quarter that ended Jan. 31. The deterioration was particularly stark when compared against the second quarter of 2019. BMO’s transportation sector is believed to be about 75% trucking-based, though there are other transportation-based loans in the portfolio. It is also about 90% U.S.-based. The sector’s performance is considered a strong indicator of the overall health of the market for trucking loans and the industry itself.

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U.S. rail carload and intermodal units are down for the week ending May 23, reports AAR

Logistics Management May 29, 2020

Intermodal containers and trailers—at 238,076—saw an 11.2% annual decline, which was ahead of the week ending May 16, at 231,700 units, and the week ending May 9, at 227,405 units.

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Postal Package Deliveries ‘Bogged Down’ With Delays, Backlogs

The Wall Street Journal Jennifer Smith May 30, 2020

“There is a whole network that is bogged down,” he said, “and it’s not the [mail] carriers’ fault.” Like private delivery giants United Parcel Service Inc. and FedEx Corp., the Postal Service is coping with unexpected holiday-level package volumes as the pandemic adds to operational and financial stresses. UPS is imposing extra fees to help offset those costs, while FedEx is limiting the number of items some retailers can ship from certain locations.

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Nikola to Broaden Electric-Truck Sales Model

Truckinginfo.com May 31, 2020

Milton tweeted on May 29, “We will now be working with major truck dealerships to sell and service Nikola trucks. This is incredible news and I believe will create a great cash flow and backlog of Nikola trucks on order.” The move coincides with Nikola’s acquisition by VectoIQ Acquisition Corp., a deal that will create a new publicly traded company named Nikola Corp. After the Nikola Motors Merger is complete, the new ticker symbol will be "NKLA."

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Appeals court revives CRST’s driver-poaching lawsuit

Freight Waves Clarissa Hawes May 29, 2020

In a 2-1 split, the 8th U.S. Circuit Court of Appeals on Wednesday reversed the U.S. District Court for the Northern District of Iowa’s July 2018 order granting summary judgment to TransAm and remanded the case for further consideration. Judge Bobby E. Shepherd, writing for the majority, wrote that the district court erred in granting TransAm’s motion for summary judgment on claims of intentional interference with CRST’s employment contracts, finding that TransAm’s action of offering an incentive, like higher pay, caused some CRST drivers not to complete the terms of their noncompete agreement with the Cedar Rapids, Iowa, carrier.

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Preventing trucking fleets from falling prey to nuclear verdicts

Freight Waves Vishnu Rajamanickam May 30, 2020

Over the past few years, there has been a surge in nuclear verdicts against the trucking industry. Nuclear verdicts are jury judgments that award penalties over $10 million. This warrants a focus by trucking fleets on risk management, as such verdicts can force companies to declare bankruptcy, adding to the distress already prevalent in the industry today. One of the primary reasons for such massive verdicts is the lack of exculpatory evidence on the part of the trucking companies, making it a “he said, she said” problem that often ends up with truck drivers and companies being blamed. But with the advent of technologies including sensors and cameras, fleets can now record incidents and reduce their legal risk.

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ATA pushes Congress for temporary tort protections as businesses reopen

Transport Dive Jim Stinson May 29, 2020

"As we move from the crisis to recovery, we should be supporting truck drivers and ambulance drivers, not ambulance chasers," said Bill Sullivan, ATA EVP of advocacy, in an email to Transport Dive. "Allowing the plaintiffs bar to use [COVID-19] to open a new front on their assault on the trucking industry is something that cannot be allowed."

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