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Monday, April 26, 2021

Logistics Intelligence Brief

Industry

Report: Supply chain disruptions up 67% in 2020

DC Velocity April 23, 2021

“Covid-19, and the government policies enacted in response to it, created deeper global impacts, leading Resilinc to designate the event as ‘severe’—the first time in the company’s history ranking an event at that level of impact,” according to the company. Resilinc issued 6,192 alerts about potential supply chain disruptions to its customers in 2020. Of those, 60% were serious enough to trigger the creation of a “WarRoom”—a virtual platform in the Resilinc dashboard where customers and their suppliers communicate and collaborate to assess and resolve disruptions. WarRoom creation was up 80% year-over-year in 2020, due mainly to pandemic-related threats pushing supply chain teams to develop contingency plans, including finding alternate suppliers. Link: Resilinc Annual Report 2020 Carpe Diem

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Empty-container rush signals worst yet to come for shipping community

Freight Waves Zach Strickland April 24, 2021

“It’s time to sound the alarms. The shortage of container capacity is already affecting many supply chains, but almost no company will be spared from what lies ahead. The congestion and delays happening right now are primarily part of the downstream ripple effect that was largely caused by last year’s increased import volumes. Since we are able to see these volumes as they are leaving on vessels that are destined for the U.S., we can tell you that these TEU volumes are still hitting record highs. So, if the downstream supply chain is already under enormous pressure, we are likely to see rates reach new heights as well.”

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Rising sustainability pressure spurs logistics technology (Subscription Based)

The Journal Of Commerce William B Cassidy April 23, 2021

Interest in sustainability has reached a “tipping point” among global shippers, and that is putting pressure on smaller companies and transportation providers that do business with them, according to the largest US-based third-party logistics provider. That, in turn, is creating opportunities for technology developers and logistics providers designing tools that will help smaller companies gain a better understanding of their supply chains’ complex carbon footprint. “In the last 10 years, sustainability has become far more relevant with varying degrees of priority, but now we’ve reached that tipping point where we’ve determined it to be a high priority,” said Tim Gagnon, vice president of analytics and data science for C.H. Robinson Worldwide. “But in terms of data, there are a lot of inconsistencies.”

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Technology/Innovation

Panasonic’s long-anticipated acquisition of Blue Yonder is a done deal

Logistics Management Jeff Berman April 23, 2021

Following weeks of mixed reports regarding the future of Scottsdale, Ariz.-based Blue Yonder (formerly JDA), a provider of AI-driven and end-to-end supply chain management service—one in early March which indicated it was going to be acquired by global electronics giant Panasonic, and an another earlier this month indicating it had “confidentially filed paperwork with the Securities and Exchange Commission for a proposed initial public offering”—it appears the former is going to come to fruition. Panasonic formally said earlier today that it will acquire Blue Yonder by purchasing the remaining 80% of shares of Blue Yonder, for $5.6 billion (USD), coupled with the 20% of Blue Yonder shares Panasonic acquired in May 2020, when it acquired a minority ownership stake and one seat on the Board of Directors of Blue Yonder, with New Mountain Capital and funds managed by Blackstone remaining majority shareholders of Blue Yonder fully committed to supporting the company’s strategic vision.

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Government/Safety

Bipartisan Group Backs Gas-Tax Increase as Option to Fund Infrastructure (Subscription Based)

The Wall Street Journal Andrew Duehren April 23, 2021

A bipartisan group of House lawmakers endorsed a report that includes raising the gasoline tax as a possible way to pay for infrastructure spending, lending support to a measure that both Republican and Democratic proposals have avoided in the debate about how to cover the cost of an infrastructure package. The report from the group of 58 lawmakers, dubbed the Problem Solvers Caucus, proposed indexing gas and diesel taxes to inflation, highway construction costs, fuel-economy standards, or some combination of the three in a report on infrastructure released Friday. It lays out several possible fee increases, including a vehicle-miles traveled tax that would collect revenue from electric vehicles. Congress hasn’t raised the gas tax, which stands at 18.4 cents a gallon, since 1993. While the bipartisan group doesn’t detail specific funding levels, it does call for federal investments in rail, water infrastructure and broadband. Closing the gap between taxes owed and taxes paid and creating a national infrastructure bank are among other revenue ideas the group lays out.

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Gap widens between GOP and Democrat infrastructure spending goals

Fleet Owner Josh Fisher April 23, 2021

While dwarfed by the overall size of the Biden Administration’s opening salvo, the $568 billion GOP infrastructure bill puts more focus on traditional infrastructure, such as spending $299 billion on roads and bridges. ‘Core infrastructure’ “This is the largest infrastructure investment Republicans have come forward with,” Sen. Shelly Moore Capito (R-W.Va.) said during an April 22 press conference about the GOP proposal. “This is a robust package when we look at where we’re focusing our infrastructure needs. The funding levels and the principles are meant to guide us. And then I would say now’s the time for the committees to get to work.” Chris Spear, American Trucking Associations’ president and CEO, was encouraged by the Capito compromise proposal. “This proposal is a good start and more in line with the investment in last year’s House transportation bill led by Transportation & Infrastructure Chairman Peter DeFazio. The trucking industry, along with all Americans who utilize our roads and bridges, knows the time for infrastructure investment is overdue. We need more members of Congress willing to work together on critical priorities, and we cheer the efforts by the president and the Republicans and Democrats in Congress who are brave enough to try and find a consensus.”

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Gaming Out The Biden Infrastructure Proposal on Capitol Hill

Truckinginfo.com David Cullen April 23, 2021

What if Dems Can't Use Budget Reconciliation? But that may not happen this time. Republicans plan to raise procedural objections to the bill on the grounds that various elements will violate the reconciliation rules, according to a report by The Hill. To pull this off, the mechanism the GOP would deploy is known as the Byrd Rule, which restricts what can be included in Senate reconciliation measures by prohibiting provisions seen as “extraneous” to the budget. If that threat pans out and the Byrd Rule is successfully invoked, Biden and Democratic leaders will have to make more overtures — and concessions — to at least some Republican Senators to get their votes – or will have to strip from the legislation the policy initiatives deemed by the GOP as a bridge too far. The Republican Infrastructure Vision Then there’s the infrastructure legislation Senate Republicans have just put on the table. Dwarfed by Biden’s plan, the GOP counterproposal released on April 22 calls for spending just $568 billion over five years. GOP leaders aren’t floating this plan to win over Democrats. But provisions of their bill may be worked into the Biden plan if Leader Schumer must secure at least some Republican votes to overwhelm Byrd Rule objections. The bill was introduced by Sen. Shelley Moore Capito (R-West Virginia) ranked as one of the most bipartisan members of Congress. In a tweet, she called the GOP plan a “framework [that] continues our conversations w/Democrat colleagues & the administration.”

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