Category: Business

American Trucking Associations’ highly developed seasonally adjusted (SA) For-Hire Truck Tonnage Index rise again in November, adding up 2.3% in addition to the 3.9% jump during October. In November, the index equaled 151.8 (2000=100), starting from 148.4 in October.

Comparing the report with November 2016, the SA index increased 7.6%, which was down from October’s 10.5% year-over-year increase, but yet, extremely strong. In September, the index improved 6.3% on a year-over-year basis. Year-to-date, in comparison with the equivalent eleven months in 2016, the index is up 3.5%.

The report tries to authenticate ATA truck records across the data sources. It shows this month that jobs expansion says the trucking industry employment stage were slightly altered month-over-month. The American Trucking Associations (ATA) forecast September would see slower development as the hurricane season flow lessened, but according to the report, trucking is enduring to rush ahead, with strong data points signifying a complete resurgence from the industry recession that began in 2015. That merge with innovating from the hurricane damage encouraged ATA Chief Economist Bob Costello to say, “Going forward, upgrading from those hurricanes and other natural disasters like the wildfires will add to freight order.

Shipment did increase but compared to Augusts’ 4.7% rise, that’s barely a distress for the trucking industry. In actual fact, the Cass Index distinguished in their latest report that they are paying more attention on the number of loads moved by truck and less attention on the number of tons moved by truck because of the increase in e-commerce and the move away from brick-and-mortar retail.

The Cass Freight Shipment Index fall 1.2% in succession but increase 3.5% on a year-over-year basis. The index fell 1.1% successively and was down 3.0% year-over-year. The index, which uses information from bill payments through a bank is mainly supported on trucking which includes rail, air and barge freight.

The Cass Truckload Index, which tracks monthly changes in line haul rates, beg off 0.9% in December in opposition to the same period in 2015, the tenth successive month of such turn down. However, the present strong point being reported in mark rates is leading them to consider that the current -3% to 1% truckload pricing prediction may need to be improved and moved to a slightly more positive position if the force in spot rates continues long enough to move deal rates back into affirmative terrain.

Not just did the Shipments Indexes expand their run of positive year-to-year contrast, but those evaluations have turn out to be gradually more positive. Shipments initial turned positive fourteen months ago. The 14.3% YoY increase in the November Cass Shipments Index is so far an additional data point which verifies that the first positive hint last October was a alteration in trend.

A new study discovers that automation could kill up to 800 million jobs worldwide by 2030 which entails that 38% of U.S. jobs have a high risk of being wiped by automation in 2030. Uncertainties that automation will kill more jobs continue to grow which shows that workers are at risk. An estimated 73 million U.S.  jobs would be dissolve and most of them will be to increased productivity due to automation. It was revealed that robotics and artificial intelligence would eradicate not just blue-collar factory jobs but also many white-collar careers such as paralegals, journalists, airline pilots, even surgeons could be affected.

Automation is gradually booming in every part of our lives, whether it’s robots building the cars we drive or artificial intelligence systems driving the vehicles for us. With the increase in autonomous systems, many people concern is how their job will be affected.

Seventy-three million jobs in the world’s foremost economies could fade over the next fifteen years because of improvements in technology. Improvements in artificial intelligence, robotics, and biotechnology, would interrupt the business world in a comparable way to preceding industrial revolutions. It was found out that as many as 73 million jobs in the U.S could be lost through automation. Those losses would be partly balance by the establishment of 2.1 million new opportunities in sectors such as tech, professional services and media. Countries will have to invest in changing their workforce if they want to keep up with the variations and avoid a worst case situation.

The effect of automation on jobs could really be determined by the occupation. A report by the International Institute for Sustainable Development proposes that automation could substitute more jobs in the next decade. Artificial Intelligence, Automation, and the Economy,” issued by the Executive Office of the U.S. President, states that automated vehicle technology could impend or change 73 million of the jobs in the United States. That means 80 percent to 100 percent of these positions will be eradicated. Those working physical labor jobs are not the only ones who would be affected. Software capable of analyzing large volumes of legal documents is expected to drastically reduce the number of paralegals and as such software programs advance, people with other occupations, like accountants, could become easily replaced.

On the other side, people with tech expertise will be required in every industry to set up and control the automation systems. Nevertheless, they’ll be hired at a smaller number than the people the machines will eventually replace.

The ELD Mandate involves the use of ELDs by commercial drivers who take record of their hours-of-service (HOS) registers. Formerly, it was recorded in paper logbooks, but now, ELDs electronically record driver information spontaneously, including location information, engine hours, vehicle miles, HOS, and identification.

By now, all drivers must have heard about the Federal Motor Carrier Safety Administration (FMCSA) Electronic Logging Device (ELD) Rule. The regulation is proposed to increase work safety for drivers and systematize the course of tracking, managing, and sharing driver duty status registers. For every of the FMCSA, the ELD Rule relates to most motor carriers (as well as the commercial buses and trucks) drivers who are expected to keep records of their duty status. An ELD mechanically records driving times and other Hours-of- Service (HOS) data. The Federal Motor Carrier Safety Administration’s (FMCSA) execution time is fast approaching. Commencing December 18th the FMCSA’s Electronic Logging Device (ELD) mandate will entail most regional carriers to use ELDs as a substitute to paper log books.

The FMCSA evaluates that over 3 million trucks and over 3 million drivers will be pretentious by the new ELD rules. Generally, the rules relate to most of the trucks in regional side weighing more than 10,001 pounds, vehicles designed to transport more than 8 passengers for payment to the driver, vehicles designed to transport more than 15 passengers and finally vehicles used to haul menace materials in quantities that require placarding by the DOT.

After numerous years of discussions and reviews, the Final ELD Rule was issued in December 2016 and the required ELD Compliance date is December 18, 2017. The FMCSA contemplates that the year between the publishing of the final rule and the compliance date is an awareness and evolution stage, with many haulers willingly installing ELDs. By December 18, 2017, ELD use will be obligatory, with the requirement that companies with vehicles using legacy Automatic On-Board Recording Devices (AOBRDs) will have a 2-year period before they are mandatory to transition the compliant ELDs in December 2019.

Reflecting on how many of the carrier associates presently using ELDs vs individuals that don’t. Installing an operational ELD system through a convoy is no small task because it requires more interval and significant investment up front. Furthermore, this will likely cause a dip in efficiency as these carriers learn how to efficiently control with severe devotion to the hours of service rules that using ELDs will require.

The future is now for the trucking industry, and transporters can’t wait much longer to bring their trucks and drivers into acquiescence with the ELD mandate. The significances for overseeing the deadline for acquiescence may be niggling at best and overwhelming at worst for carriers. It’s in a trucking company’s best awareness to make sure that everything is taken care of prior to the deadline.

Virtually all railways create economic and societal benefits, but these are hardly acknowledged in fiscal standards. It is up to governments to outline public as disparate to commercial or private benefits. If it is considered logical to have a viable railway, then the government needs to work out a way to pay for its remunerations.

With great levels of fixed infrastructure cost, railways are by nature costly to build, control, and maintain. Each route needs to produce adequate revenue to cover its costs. In contrast to road and air, a railway has the ability to handle large volumes, using less energy per unit of transport. It is safer and normally has less environmental influence. Rail can carry passengers at higher speeds than road, and its freight shipping capacity can support the growth of industries that may not be applied with other modes. The presence of a rail service, specifically in urban environments, can expressively boost property values.

Rail freight supports production rate more than $80 billion yearly to the U.S economy. Agriculture, forestry and fishing, manufacturing and mining justify for majority of the freight from regional centers. U.S most momentous road freight corridors are the ones connecting the coast capital. In 2017, the U.S rail network transported 157 million tons of freight (33 per cent of the total State freight task). Coal made up most of U.S rail freight task. The rail freight network in U.S plays a serious role in assisting the national freight task, with 75 per cent of interstate truck freight in America using the road network for some part of its journey.

Ignoring auxiliary activities, a railway earns the majority of its revenue from passenger tickets and freight charges. It does not profit straight from reduced road congestion, or from the knock-on welfares of boosting rail-served industries. More latest data proposes that the prominence of American freight railroads on coal shipments has only become more pronounced, accounting for 47% of tons moved on the railways in 2017. So making the U.S. dependence on an incredibly polluting, inefficient power source upped the use of trains for freight.

Local road infrastructure can compel freight network connections, striking higher costs on business and communities. A viable rail freight network – one with the ability to transmit a larger share of the total freight task – is precarious to the productivity and keenness of businesses, as well as the broader U.S economy.

Intermodal rail is on a quicker development path as the economy increases, imports flow into the United States and truck rates increase. However, there may be some gleams of economic hope on the perspective which needs to emerge before one can point to the concrete and concise growth. That’s specifically true when it comes to considering the current state of cargo railroad volumes.

According to latest records dispensed by the Association of American Railroads (AAR), U.S. carload volumes increases up to 6.8%, that is, 358,904 carloads, through the first five months of this year, with the weekly carload average for last month which is up to 8.4% that is, the highest average per month when going back to the previous months’ record. This, certainly, is a welcome change from the 10.3% decline for the same period a year ago.

On the rail intermodal side, 2017 container and trailer volumes through the month of May rises up to 2.3%, marking the highest year-to-date record through the month May for intermodal topping 2017. Furthermore, volumes from January-November 2017 mark the highest volume yield for that period in the U.S. history, according to the AAR data.

Like a year ago, taking a close look at the year-to-date volumes for carload and intermodal shows that intermodal units are outgaining rail carload volumes, something that didn’t happen in the past years, but is happening with more regularity these days.

Nevertheless, that doesn’t mean that intermodal is running roughshod over carloads. Instead, it speaks to a decent volume environment for both sectors. Keep in mind that carloads are being strengthened by a recuperate in coal volumes due to natural gas prices rising and higher coal export levels, even though the AAR detects that coal volumes still remain low when corresponded against ancient standards.

“The volumes of the intermodal at this point of the year are beyond just pretty good,” says Tony Hatch, president of New York-based ABH Consulting. “For each month, they’re getting better and they will start to rise up due to a reasonably healthy economy and a reasonably healthy rail economy. Coal has not bounced back but it has become stable when being compared to others.

Intermodal volumes keep on in a decent spot, that is, the volumes are stable, attached with many industry investors improving international intermodal prospects that could result in growth in the 5% range. Domestic intermodal has been persisting along even when it continues to run up against loose trucking size.

As volumes increase, so does the intermodal pricing. “Pricing motion finally appears to be accelerating,” Cass Information Systems said on Tuesday. The Cass Intermodal Pricing Index, rose 4 percent in September, the highest 12th successive monthly rise for the catalogue, which includes base rates and fuel surcharges. Higher fuel costs also helped improve the index.

This is revealed in the railroads running faster, the longer trains in order to lower costs, and the results in longer waits between departures, a move that enhance the yard lodge many times. “These huge trains also tend to be normal, and the resulting average train speeds are significantly high from the previous year, but in line with the long-term average.

Currently, containers have become visible due to technological advancement.  Mobile technology has brought the emergence for smart containers that have made information more available to the freight companies and their customers while subsequently creating a new market for big data in freight management. The era of “dark, dumb and disconnected” containers has come to an end ushering a transformation into “visible, smart, and interlinked” containers.

How GPS positioning technology has impacted container visibility

Installation of Global Positioning System technology has been widely adopted by freight companies to act as control systems for tracking the movement of containers in their fleet movement.  It has enhanced their visibility in transit or when an incident or theft occurs.  Freight companies have extensively adopted the use of GPS to ensure that all the containers in the fleet are well tracked. Freight companies are also using the visibility ability to gain a competitive advantage in the market while offering competitive rates. Freight companies that have adopted container visibility in the market have positioned themselves as excellent players by enhancing.

• Improved security for containers that is enhanced by efficient monitoring of containers that would prevent instances of contamination, theft and other risks related to their location.
• The real-time positioning of goods on transit through the GPS systems so that customers and the freight companies can know the exact location of the containers on transit.
• The ability to capture and recognize the environmental conditions such as humidity and temperature on a real-time basis.
•  Results to cost savings through improvement of efficiency and reduction in the holding costs.
•  Visibility leading to improved security and processes.

Visibility has also led to improved security and improved processes. Customers have improved security enhanced by real-time positioning and can easily detect any tampering of their cargo in the containers. It is easier to note the time each container is opened, whether it is loaded and any handling of the container while in the warehouse or transit. The customers can easily identify whether authorized or unauthorized personnel accessed the container.

Moreover, customers can easily enhance their networks and processes because the freight company websites contain tools that enhance real-time location of cargo by the customer. Therefore, customers can make their decisions in a better way and have enhanced planning. GPS technologies such as “Mission Control” can grant freight companies real-time container intelligence that is crucial for facilitating quick and smart decisions that grant the companies a competitive advantage.

Is the investment is worth it?

The GPS positioning system is a crucial tool in improving operations efficiency in the freight companies’ right from their warehouses, in transit and delivery to their customers. Therefore, these companies can save costs due to the efficient handling and quick delivery. Freight companies also gain value through this system through reduced time and labor costs that are needed in tracking containers until they reach to the customers. The cost savings are subsequently transferred to the customers.  It is also crucial in reducing holding costs by reducing the holding period that is crucial in cost savings.

What lies ahead for Container Visibility?

The main goal of container visibility is to ensure that customers have sufficient information on the containers. Also, there will be improved usability in the freight companies’ websites by the customers through the Mission Control System. Customers will also get notifications upon the delivery of their containers. Therefore, customers can be settled and have peace of mind as their goods are in transit.

Thеrе iѕ ѕо muсh соmреtitiоn thаt mаrginѕ аrе thinlу rеduсеd рutting a grеаt ѕtrаin оn ѕuррlу сhаin mаnаgеmеnt thаt, if nоt ѕuссеѕѕful, саn hаvе drаѕtiс imрасt оn thе bоttоm linе. Orgаnizаtiоnѕ nееd tо hаvе thе аbilitу tо соmраrе рrоduсt vаluе in аn intеlligеnt fаѕhiоn аnаlуzing сhаngеѕ rеlаting tо rераir аnd/оr rеfurbiѕhmеnt соѕtѕ, ѕраrе раrtѕ рriсing, rеѕаlе vаluе аѕ wеll аѕ if thе оvеrаll dеmаnd fоr thiѕ рrоduсt iѕ рrоfitаblе. Additiоnаllу, ѕuсh соnѕidеrаtiоnѕ аѕ flеxibilitу аnd ѕсаlаbilitу аrе nееdеd tо аllоw ѕаlеѕ tо еithеr оutmаnеuvеr оr еliminаtе аnу соmреtitiоn.

It Alwауѕ Cоmеѕ Dоwn tо Aррliеd Dаrwiniѕm
Suррlу сhаin аnаlуѕiѕ аlѕо rеvеаlѕ thаt оnlу thе fittеѕt will ѕurvivе. Thiѕ invоlvеѕ ѕuссеѕѕful intеgrаtiоn оf ѕuррlу сhаin lоgiѕtiсѕ intо аnу gооdѕ-fоr-ѕаlе оriеntеd еntеrрriѕе оr роѕѕiblе еxtinсtiоn wаitѕ. Thе dinоѕаurѕ соuldn’t оutlаѕt еvоlutiоn. Thiѕ iѕ bесаuѕе thеir fееblе соnѕtitutiоnѕ соuld nоt рrосеѕѕ thе nесеѕѕаrу dаtа tо аdарt. Tоdау, buѕinеѕѕ еvоlutiоn iѕ drivеn bу tесhnоlоgу. Whеn a buѕinеѕѕ аdарtѕ thе аbilitу tо grаb hоld оf, intеgrаtе аnd uѕе dаtа аnаlуѕiѕ intеlligеntlу, it’ѕ аlmоѕt аѕ lifе-сhаnging аѕ wаѕ thе invеntiоn оf thе whееl. Uѕing tесhnоlоgу tо ассоmрliѕh ѕuррlу сhаin аnаlуѕiѕ iѕ whаt will ѕераrаtе соmраniеѕ thаt rill ѕuссеѕѕfullу dоwn thе rоаd frоm оnеѕ whо ѕtill muѕt lеg it оut.

Mоrе Emрhаѕiѕ оn Rеvеrѕе Lоgiѕtiсѕ
Rеvеrѕе lоgiѕtiсѕ – thе еntirе рrосеѕѕ in whiсh сuѕtоmеrѕ rеturn a рurсhаѕеd рrоduсt – оnсе оnlу соnсеrnеd thе аbilitу аllоwing сuѕtоmеrѕ tо rеturn dеfесtivе оr unwаntеd рrоduсtѕ. Thеrе wеrе mаnу rоаdblосkѕ рlасеd in thе рrосеѕѕ inсluding ѕuсh thingѕ аѕ thе nееd fоr a rесеiрt аnd роѕѕiblу hаving thе рrоduсt rеturnеd in аn undаmаgеd, оriginаl расkаging. Rеturning a рrоduсt wаѕ соnѕidеrеd a соurtеѕу аffоrdеd tо a сuѕtоmеr. Hоwеvеr, ѕооn rеvеrѕе lоgiѕtiсѕ tооk uроn a соmреtitivе аir thаt асtuаllу bесаmе a dоt оn a lаundrу liѕt оf rеаѕоnѕ соmреlling dесiѕiоn mаking аbоut brаnd сhоiсе. Anу соmраnу nоt ѕuрроrting a соnѕumеr rеturn роliсу wоuld ԛuiсklу ѕuffеr diѕаdvаntаgеѕ thаt соmраniеѕ thаt did ѕuрроrt wоuld nоt еxреriеnсе. In оrdеr tо ѕurvivе, thеѕе соmраniеѕ hаd tо еvоlvе tо thе роint аdорting thе vеrу ѕаmе rеturn роliсу соurtеѕiеѕ оr lоѕе thеir сuѕtоmеr bаѕе tо соmреtitоrѕ.

Sаmе Cоnсеѕѕiоnѕ Trаvеl uр thе Suррlу Chаin
Sооn rеtаil оutlеtѕ wеrе ѕееking thеѕе vеrу соnсеѕѕiоnѕ frоm diѕtributоrѕ аnd mаnufасturеrѕ. Thе рrасtiсе rоtаting frеѕh ѕtосk rерlасing оldеr mеrсhаndiѕе ѕооn bесаmе thе nоrm whеrеin rеtаilеrѕ рlасеd thе оnuѕ оf rеѕроnѕibilitу fоr nоn-ѕеlling mеrсhаndiѕе firmlу оn ѕuррliеrѕ. Thiѕ did, hоwеvеr, соmреl аdditiоnаl dаtа соllесtiоn ѕinсе аttеmрtѕ bесаmе initiаtеd tо “ѕоlvе” thе рrоblеm оf еxсеѕѕivе rеturnѕ. Wаѕ it thе wrоng соlоr? Sizе? Shаре? Cоllесtеd dаtа соuld сut dоwn оn rеturnѕ bу mаnufасturing mоrе оf thiѕ ԛuаlitу аnd lеѕѕ оf thаt. Thiѕ bесаmе nесеѕѕаrу ѕресifiсаllу fоr аll рrоduсtѕ nоt dеfесtivе but ѕimрlу rеturnеd duе tо соnѕumеr rеmоrѕе.
Suссеѕѕful dаtа intеrрrеtаtiоn аnd uѕе hаѕ аn еffесt uроn ѕеrviсе rеvеаlеd bу ѕuррlу сhаin аnаlуѕiѕ. Sо, dеvеlорing еffесtivе rеvеrѕе lоgiѕtiсѕ соmреlѕ a соmраnу tо рrоvidе ѕеrviсеѕ thе соmрlеtiоn dоеѕ nоt. Cоmраniеѕ thаt саn dо thiѕ will рut thе соmреtitiоn оut оf buѕinеѕѕ оr thе bеѕt ѕсеnаriо еvоlutiоn hаѕ thеm соming tо wоrk fоr уоu.