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Logistics Intelligence Brief
Monday, November 21, 2022

Trucking

Yellow Corporation Earns 2023 Military Friendly® Employer Designation and NDTA Corporate Distinguished Service Award

Yellow Corporation Press Release November 18, 2022

Yellow Corporation has been awarded the Military Friendly Employer designation and has also received the National Defense Transportation Association (NDTA) Corporate Distinguished Service Award. Both awards recognize Yellow’s continued support for America’s military heroes and its focus on recruitment of veterans.
Yellow has been named a Military Friendly Employer for the second consecutive year due to its efforts in creating sustainable and meaningful career paths, community outreach, brand enthusiasm and enduring partnerships that meet thresholds for applicants, new hire retention, and promotion of veterans and military employees.
“It’s an honor to once again be recognized as a Military Friendly Employer,” said Yellow CEO Darren Hawkins. “Our veterans’ programs are robust and we’re growing them every year. Our veteran colleagues make us a better company and we’re proud to have them on our team.”
“Yellow has excelled at attracting military talent and will continue to set the bar high while striving to be the employer of choice for veterans and their families,” said Yellow’s Military Engagement Program Manager Jason Schenkel.

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Schneider expects 2023 intermodal boost from move to Union Pacific

Transport Dive Larry Avila November 18, 2022

“There’s plenty of business operating on the highway that we can provide on average a nearly 29.5% savings, so there’s plenty of opportunity just on the highway side to talk to our customers,” she said during the Stephens Investment Conference. “So, if (customers are) doing business with Schneider today, I assume (they will continue) to do business there, but certainly if they want to have a conversation, we’ll be engaged in that.”
Rourke said Schneider has spent the year talking with current and potential customers about what its new partnership with Union Pacific offers. He added the company has most importantly gained more access to trains.

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Industry

October volumes see further declines, reports POLA and POLB

Logistics Management Jeff Berman November 18, 2022

Total October POLA volume—at 678,429 TEU (Twenty-Foot Equivalent Units)—fell 25% annually, steeper than September’s 21.5% annual decrease and 22% below the port’s five-year October average, for its lowest October tally going back to 2009. Imports—at 336,307 TEU—fell 28% annually, and exports—at 89,722 TEU—were off 8.7%. Empty containers came in at 252,401 TEU, for a 25% annual decline.
Seroka outlined three basic factors related to October’s cargo decline.
“The biggest is cargo that has shifted to the East and Gulf coasts, due to protracted labor negotiations,” he said. “Second, this year our Peak Season was in June and July, as cargo owners advanced shipments well ahead of the normal holiday cycle. And third, we saw an increase in durable purchases during Covid, like appliances and furniture. But consumers just don’t buy those types of products every year. All of these factors combined with inflation, interest rates, and concerns about a recession tell a more nuanced story of what we are up against today.”

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U.S. rail carload and intermodal volumes are down, for week ending November 12, reports AAR

Logistics Management November 18, 2022

Intermodal containers and trailers—at 254,876—decreased 4.5% annually, trailing the weeks ending November 5 and October 29, at 258,830 and 270,032, respectively.
Through the first 45 weeks of 2022, AAR reported that U.S. rail carloads—at 10,450,126—eked out a 0.2% annual gain, and intermodal units—at 11,835,682—slipped 4.7%.

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Authorities Say L.A. Railroad Theft Rings Dismantled

Los Angeles Times/Transport Topics Libor Jany November 18, 2022

Two theft rings that netted more than $18 million worth of merchandise stolen from railroad cars have been dismantled, authorities said Nov. 17, months after images of a sea of discarded containers along Union Pacific tracks in Lincoln Heights, Calif., drew national attention.
In the monthslong operation aimed at curbing rail theft across Los Angeles County, a task force has made more than 700 arrests and recovered millions of dollars in stolen goods, including designer handbags, power tools and a pair of empty coffins, authorities said.

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Shippers/3PLs

US ecommerce grows 10.8% in Q3 2022

Digital Commerce 360 Jessica Young November 18, 2022

Key takeaways:
 U.S. ecommerce grew 10.8% in Q3 2022.
 Amazon moved its Prime Day sale to July this year from June last year. This pushed dollars into Q3 and bolstered ecommerce growth for the quarter.
 Amazon, Walmart and Target’s collective performance drove the overall market for the three-month period.
 20.6% of all dollars spent on retail purchases came from online orders.
 Sales through all channels grew 7.7% in Q3, while in-store and other offline sales grew 7.0%.

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Technology/Innovation

Q&A: Upstream CEO on Protecting Trucks Against Cyberattacks

Truckinginfo.com Jack Roberts November 18, 2022

HDT: What are the main types of cyberattacks fleets fall victim to?
Levy: The first threat fleets face is having intellectual property stolen – which can then be used to facilitate other crimes later on. It’s astonishing to consider the massive amounts of proprietary business data stored on a modern truck. Thieves who hack into a vehicle can get anything from spec’ing information, maintenance records, operational data, route information, and even personal data: Where did the truck go last night? Where does this driver live? And it’s not hard to imagine how thieves could use that data for all sorts of criminal activity.

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Government/Safety/Sustainability

California Looks to Ban Diesel Trucks at Ports by 2035

The Wall Street Journal Paul Berger November 20, 2022

Subscription-Based

An ambitious California plan to require trucking fleets in the state to switch from diesel to electric power faces a potential backup at charging stations.
The California Air Resources Board is proposing phasing out older big rigs operating in the busy corridors shuttling shipping containers between ports, rail yards and warehouses and require that all new vehicles be powered by clean fuels starting in 2024. From 2025, the state would bar trucks powered by internal combustion engines that have more than 800,000 miles on them from operating at ports and rail yards.
Aaron Brown, senior vice president of port services for logistics and trucking operator NFI Industries, said the Camden, N.J.-based firm is introducing about 90 electric trucks in Southern California over the next year. NFI is also installing dozens of chargers across three depots that are close to ports and warehouses.
“We are counting on the shipper community to pay significantly elevated prices to support the higher equipment costs,” Mr. Brown said.

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Airlines Push for Lone Pilot Flights to Cut Costs Despite Safety Fears

Bloomberg Angus Whitley November 20, 2022

Subscription-Based

Airlines and regulators are pushing to have just one pilot in the cockpit of passenger jets instead of two. It would lower costs and ease pressure from crew shortages, but placing such responsibility on a single person at the controls is unsettling for some.
“The psychological barriers are probably harder than the technological barriers,” Boeing Co. Southeast Asia President Alexander Feldman said at a Bloomberg business summit in Bangkok last week. “The technology is there for single pilots, it’s really about where the regulators and the general public feel comfortable.”
The value of having two pilots up front was famously borne out on Jan. 15, 2009, when a US Airways plane struck a flock of geese shortly after takeoff and lost power in both engines. The captain, Chesley Sullenberger, and first officer Jeffrey Skiles together managed to land the Airbus A320 on the Hudson River. No one died. The incident became known as The Miracle on the Hudson.

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Workforce

Biggest Railroad Unions Count Votes as Threat of Strike Looms

The Wall Street Journal Esther Fung November 20, 2022

Subscription-Based

Two of the country’s largest railroad unions will reveal Monday whether their members voted to accept a new wage deal brokered by the White House, or reject it and move closer to a strike that could disrupt the flow of goods around the country.
The unions representing engineers and conductors—SMART Transportation Division and the Brotherhood of Locomotive Engineers and Trainmen—are the final two of the 12 unions reporting the ratification of votes in what has been a contentious and protracted labor dispute.

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FedEx Ground contractor group disbands, denounces calls for work stoppages

Supply Chain Dive Max GarlandNovember 18, 2022

An organization aiming to provide a collective voice for FedEx Ground contractors disbanded Friday, just months after its launch as a core piece of ousted delivery contractor Spencer Patton’s campaign for change at the company.
“Committee members nominated themselves to join this group with one clear, shared objective: to better promote effective dialogue with FedEx Ground,” per the update. “After considerable discussion and investigation, it is clear this committee, as structured, is not the appropriate vehicle to accomplish this goal and that better options exist.”

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