Trucking
ACT Research May 23, 2023
The freight cycle remains clearly weak, but there are encouraging rays of light at the end of the tunnel. We think freight market supply and demand dynamics are tightly intertwined, with the two main explanations for the recent improvement in spot trends in
April on the demand side: imports are starting to recover and produce season is beginning. But in a market with loosening capacity, these factors may not matter for rates, like last year. The medium-term demand outlook is as encouraging as we’ve seen in over
a year, but supply tends to matter more for rates, statistically speaking, and capacity is starting to contract as fleet profitability is hit hard by lower rates.
Shippers/3PLs
Transport Topics Connor D. Wolf May 25, 2023
The Uber Freight Q2 Market Update and Outlook Report found that more than 400 companies are expected to open businesses this year in Mexico. The country is also expected to see 25 new industrial parks, representing an investment of $25 billion, and $35 billion
in new exports.
“We’re seeing that the number of companies that are moving here is increasing and they’re coming from all types of industries,” Enriquez said. “Once you can get a truck to the border you can get it to pretty much any point in the U.S. between four and five
days.”
Laredo, Texas, has become a focal point of the nearshoring boom as a trade hub situated right on the border. RXO is one company that has targeted the city with the opening of a cross-border facility March 29.
Link: Uber Freight 2023 Q2 Market Update And Outlook
The Wall Street Journal Dean Seal And Sabela Ojea May 25, 2023
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Inflation is weighing on Americans across income levels, and some pandemic changes in consumer behavior are expected to be long-lasting.
And while some companies have touted the pricing power they have on certain items, executives remain cautious about consumers’ reception to further price increases.
Costco Wholesale said its average daily transaction amount fell in the most recent quarter, driven in part by weaker sales of big-ticket items such as home furnishings, electronics and jewelry. Costco Finance Chief Richard Galanti said the warehouse club’s
performance wasn’t down as much as other companies’ and that it follows two years of outsize growth during the pandemic.
The Wall Street Journal Liz Young May 26, 2023
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E-commerce service provider Shopify, apparel retailer American Eagle Outfitters and meal-kit delivery company Blue Apron are among the companies that set expansive strategies in hopes of gaining greater scale, with some looking to establish distribution channels
to compete with the sprawling logistics network of Amazon.com.
As growth in online commerce retreats to prepandemic levels, several companies are signaling that delivering goods to homes on a regular, reliable basis has proven more challenging than expected.
“The reality is that logistics is hard. Supply chain is hard, and you spend your whole existence in supply chain trying to make sure the things that were supposed to happen happen, and you have customers that effectively tolerate (only) perfection,” said Aaron
Alpeter, founder of supply-chain consulting company Izba. “That’s just a very difficult business to be in.”
Industry
The Journal OF Commerce Ari Ashe May 25, 2023
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Many domestic intermodal shippers detained containers in the first four months of this year, incurring penalties that can range from $150 to $300 per day, as companies tried to clear out overstocked warehouses of excess inventory, according to the Journal of
Commerce Intermodal Service Scorecard survey.
As shippers scramble to shed unwanted inventory, many reported that they’ve held onto 53-foot domestic containers too long. In total, 82.6% of shipper respondents admitted to incurring detention fees this year more than once, according to the survey, conducted
between March 1 and April 30 via SurveyMonkey.
Among those with at least 100 shipments per week, 95% admitted to recurring detention penalties. The scorecard is based on a survey of 113 shippers and intermodal marketing companies (IMCs) in North America.
Technology/Innovation
Fleet Owner Scott Keith May 25, 2023
Cargo theft is on the rise. Theft prevention and recovery network CargoNet reported that almost 1,800 claims of pilferage were made by its members last year—an increase of 15% from 2021, which saw fewer than 1,300 incidents reported. As 2023 has passed into
spring, that surge of thefts hasn’t slowed, with thefts traditionally concentrated on the West Coast now spreading farther east.
“One of the things that we are starting to see, and I predict is going to be a long-term trend, is the shift of strategic and fraudulent thefts moving to the East Coast and more eastern states,” said Danny Ramon, who is the intelligence and response manager
at supply chain risk management company Overhaul, which offers asset-tracking and theft-recovery solutions. “We’ve seen it start already in Indiana and Illinois, as well as Georgia and a couple of other East Coast port cities.”
Government/Safety/Sustainability
Transport Topics Eugene Mulero May 24, 2023
“The comprehensive and bipartisan bills that advanced today would address some of the root causes of ongoing supply chain challenges and improve the overall safety, efficiency and resiliency of freight transportation,” American Trucking Associations President
Chris Spear said. ATA has determined the trucking workforce is short about 78,000 drivers.
“ATA has repeatedly engaged with Congress to discuss persistent challenges facing our industry, and we thank Chairman Graves for his attention to these issues and for his leadership of today’s markup,” Spear added. “We also commend the bill sponsors who worked
with us and other key stakeholders to craft solutions that would benefit our industry, the economy and American consumers.”
DC Velocity May 25, 2023
Ten years ago, the Industrial Truck Association (ITA) created National Forklift Safety Day as an opportunity to educate customers, policymakers, and government officials about the safe use of forklifts and the importance of effective operator and pedestrian
training. A decade later, those topics remain relevant—and they’ll be front and center at ITA’s 10th annual National Forklift Safety Day program, on June 13, from 9 – 11 a.m., at the National Press Club in Washington, D.C.
Leading the program will be ITA’s longtime president, Brian Feehan. Sessions will highlight a variety of forklift safety-related topics, including government policies and regulations, best practices in forklift operator training and safety, and safety-enhancing
technologies.
Heavy Duty Trucking May 25, 2023
Inspectors found brake-related critical vehicle inspection items on 11.3% of the vehicles checked during the Commercial Vehicle Safety Alliance’s (CVSA) Brake Safety Day. The enhanced focus resulted in the restriction of 773 commercial vehicles from travel
until the violations were corrected.
In comparison, last year's Brake Safety Day saw nearly 1,300 commercial vehicles put out of service, or 14% of those inspected, for brake problems.
20% Brakes Violations: Of the vehicles checked, 479 had 20% brake violations. A vehicle is declared out of service when 20% or more of its service brakes have an out-of-service condition resulting in a defective brake, such as a brake out of adjustment, an
audible air leak at the chamber, defective linings/pads, a missing brake where brakes are required, etc.
Link: CVSA Inspectors Remove More Than 750 Commercial Motor Vehicles with Brake Violations
from Roadways During CVSA’s Unannounced Brake Safety Day
Teamsters Press release May 25, 2023
The following is a statement from Teamsters Freight Division Director John Murphy and Teamsters Carhaul Division Director Avral Thompson on a vote in the House Transportation and Infrastructure Committee to approve HR 3372 and HR 2948, which raise maximum allowable
truck weights for vehicles operating on the nation’s interstate highways:
“The Teamsters see these bills for what they clearly are – a naked giveaway to industry special interests more concerned with profit than the safety of experienced commercial drivers or the driving public. This legislation is absolutely not – as proponents
are falsely claiming – a good faith effort to address supply chain challenges.
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