HomeNewsAbout CTSWhy CTSThe ProcessFAQ'sTestimonialsCase HistoriesContact CarriersIndustry LinksContact
 
Logistics Intelligence Brief
Tuesday, September 7, 2021

Workforce

Transportation hiring surges as US peak season begins

The Journal of Commerce William B. Cassidy September 3, 2021

Subscription-Based

Transportation employment last month reached its highest level since the start of the COVID-19 pandemic as imports poured into the US and domestic freight demand increased. Although labor shortages were reported up and down supply chains, transportation and warehousing firms added 47,200 employees in August, according to US Bureau of Labor Statistics (BLS) data released Friday.
That number, unadjusted for seasonality, took transportation and warehousing employment to 5.747 million, surpassing February 2020 employment for the first time. Warehousing employment rose for the fourth straight month, adding 27,200 jobs, according to the BLS. Courier and messenger firms gained 10,000 workers, while for-hire trucking companies accounted for 4,900 of August’s new hires.
Local beats long-haul
“That headline [truck transportation employment] number continues to hide a major reallocation of employment across subsectors,” Miller said Friday in a post on LinkedIn. His data support the argument that long-haul trucking operators face a shortage of drivers, in part because drivers choose to work elsewhere.
Some freight-producing industries also gained jobs, with overall manufacturing adding 34,000 jobs, unadjusted. A seasonally adjusted gain of 37,000 employees indicates the manufacturing sector was expected to lose 3,000 jobs in August. By contrast, retailers lost 64,400 jobs in August, unadjusted.
Link: Dr. Jason Miller LinkedIn Post On Transportation Hiring

Share This: Share on Twitter Share on Facebook Share on LinkedIn

Forget Finance. Supply-Chain Management Is the Pandemic Era’s Must-Have MBA Degree

Bloomberg Matthew Boyle September 3, 2021

“For years, we had sort of taken logistics for granted,” says Skrikant Datar, the dean of Harvard Business School. “The pandemic caused us to rethink it.”
The problem, says Hitendra Chaturvedi, a supply-chain management professor at Arizona State University’s W.P. Carey School of Business, was that supply-chain education and theories had grown as rigid as some of the practices out in the real world. “After years of teaching without any tremors,” he says, “our courses had become less flexible.”
In response to those tremors, business schools are now emphasizing things such as risk mitigation, data analytics, and production reshoring—while also carving out room to explore more intangible topics like ethics, communication, and sustainability. Penn State’s Smeal College of Business is adding a master’s course in supply-chain risk management next year, with lessons taken straight from the pandemic experiences of corporate partners including Hershey Co. and Dell Technologies Inc. The course will count toward a new certificate program in risk management that’s also in the works. The W.P. Carey School of Business also plans to offer a certificate in supply-chain resilience.

Share This: Share on Twitter Share on Facebook Share on LinkedIn

Industry

U.S. Ports See Shipping Logjams Likely Extending Far Into 2022

The Wall Street Journal Paul Berger September 5, 2021

Subscription-Based

Leaders of some of the busiest U.S. ports expect congestion snarling maritime gateways to continue deep into next year, as the crush of goods from manufacturers and retailers looking to replenish depleted inventories pushes past shipping’s usual seasonal lulls.
Ports are already swamped by record numbers of containers reaching U.S. shores during this year’s peak shipping season, and the number of vessels waiting for berth space at Southern California’s gateways is growing as logjams stretch into warehouses and distribution networks across the country.
Port leaders, such as Mario Cordero, executive director at the Port of Long Beach, Calif., who have spoken with shipping lines and their cargo customers say the slowdown in container volumes that usually coincides with the Lunar New Year in February, when factories in China typically shut down, is unlikely to offer much relief.
“I don’t see substantial mitigation with regard to the congestion that the major container ports are experiencing,” Mr. Cordero said. “Many people believe it’s going to continue through the summer of 2022.”

Share This: Share on Twitter Share on Facebook Share on LinkedIn

Class 8 Orders in August Hit Five-Month High

Transport Topics September 3, 2021

“While the supports for new vehicle demand remain in unprecedented territory, the industry’s ability to convert that demand into vehicles remains constrained by numerous supply-side issues that begin with, but are not limited to, semiconductors,” ACT President Kenny Vieth said in a release. “As such, production challenges are likely to weigh on orders, even as backlogs continue to rise.”

Share This: Share on Twitter Share on Facebook Share on LinkedIn

Supply chain leaders say peak season revenue will exceed 2020 levels

DC Velocity September 3, 2021

Roughly three quarters (76%) of decision makers surveyed said they expect their 2021 peak-season revenue will be higher than last year. They also pointed to changes that characterize this year’s busy season: 90% said they will need to increase hiring to meet customer demand; more than 70% said they’ve seen an increase in customers wanting last-mile delivery solutions and higher demand for white glove services; and 94% said that their partnerships with supply chain/logistics companies are necessary to get through peak season successfully.
When asked about how the resurgence of Covid-19 may affect their ability to meet demand: Nearly 80% said they are concerned that a resurgence will negatively impact their businesses’ supply chain operations, and more than 50% ranked future lockdowns related to Covid-19 as a top challenge.

Share This: Share on Twitter Share on Facebook Share on LinkedIn

U.S. rail carload and intermodal volumes are mixed in August, reports AAR

Logistics Management September 3, 2021

Rail carloads—at 934,762—headed up 4.1%, or 36,815 carloads, annually. And when excluding coal, carloads were up 16,149 carloads, or 2.5% annually and when excluding coal and grain, carloads were up 31,688 carloads, or 5.6%.
Intermodal containers and trailers—at 1,085,345 units—fell 3.3%, or 37,603 units, annually.

Share This: Share on Twitter Share on Facebook Share on LinkedIn

Government/Safety/Sustainability

California legislation targets Amazon, but all warehouses would be impacted

Freight Waves John Kingston September 6, 2021

On the surface, the changes in warehouse operations that would be required under AB 701 do not seem overly onerous. But the reaction to them from opponents of the bill, seen through various public commentaries, is fierce.
The Senate Judiciary Committee that approved the legislation put together a lengthy document that spelled out both supporters’ and opponents’ view of what is wrong — and right — with the bill, and by extension, the warehouse sector.
“The bill essentially sets down two key rules and then builds mechanisms around them to make sure they are enforceable,” the Judiciary Committee’s report said.
Quotas are at the root of the “key rules.” One rule in AB 701 is that when a worker is hired, the employee must be given a “written description of all the work quotas to which the worker will be subject, as well as what the consequences will be if the worker fails to meet those quotas,” according to the Senate committee summary.
With that list in hand, another key rule can be invoked: that employees can’t be expected to meet quotas whose demands would prevent the workers from being able to comply not just with occupational safety rules in general but with permitted rest and meal breaks.
And the AB 701 legislation decrees that if it is necessary for workers to spend time complying with occupational and safety rules, that time should not be counted when figuring out whether quotas were met.

Share This: Share on Twitter Share on Facebook Share on LinkedIn

Traffic fatalities up in first quarter despite less driving

Land Line Tyson Fisher September 3, 2021

Counterintuitive numbers regarding traffic fatalities in 2020 and 2021, suggest that a lot the new driving behavior that began during the pandemic last year still persist at least through the first three months of this year. Last year, traffic deaths increased despite a drop in vehicle miles traveled. Transportation officials attributed the fatality increase to a significant increase in driving speeds with motorists taking advantage of relatively empty roadways. Seat belt compliance also decreased while driving under the influence went up.
“We must address the tragic loss of life we saw on the roads in 2020 by taking a transformational and collaborative approach to safety. Everyone – including those who design, operate, build and use the road system – shares responsibility for road safety,” Steven Cliff, NHTSA’s acting administrator, said in a statement. “We are working closely with our safety partners to address risky driving behaviors such as speeding, impaired driving, and failing to buckle up.”

Share This: Share on Twitter Share on Facebook Share on LinkedIn

Economy

August Services PMI trends down but still showing growth, reports ISM

Logistics Management Jeff Berman September 3, 2021

Even though it did not surpass July’s all-time high, services economy growth, for the month of August, had another strong month, according to data in the most recent edition of the Services ISM Report on Business, which was issued today by the Institute for Supply Management (ISM).
The reading for the report’s key indicator—the Services PMI (formerly the Non-Manufacturing PMI)—came in at 61.7 (a reading of 50 or higher indicates growth is occurring), down 2.4% compared to July’s all-time high reading, at 64.1, while growing for the 15th consecutive month, with services sector growth intact in 137 of the last 139 months.
The August Services PMI reading is 1.8% above the 12-month average of 59.9, with July representing the highest reading for that period and February’s 55.3 representing the lowest reading.

Share This: Share on Twitter Share on Facebook Share on LinkedIn

News Archive



© 2009-2021 Capital Transportation Services  |  7 Wall Street Suite 200  |  Windham, NH 03087

P: 888.276.6699