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October 2014 Logistics Management

In this issue:

  • 15th Annual NASSTRAC Shipper of the Year: TriMas centralizes freight, boosts bottom line
  • Distribution Network Design: The e-commerce effect
  • State of Cloud Computing: Defining itself in SCM
  • Optimizing 3PL Relationships: How to avoid commoditization
  • Lift truck technology: Elevating the entire facility
  • Top 30 Ocean Carriers: Profits at last?
  • Viewpoint: How TriMas centralized freight and boosted profits
  • Moore on Pricing: Contracting for a Big Data windfall
  • Pearson on Excellence: Strengthen the supply chain with Big Data analytics
15th Annual NASSTRAC Shipper of the Year: TriMas centralizes freight, boosts bottom line
October 1, 2014 · Three years ago, Candace Holowicki, the company’s director of global transportation and logistics, joined its Global Services Organization and helped to level functional silos and bring together procurement, logistics, operations, and continuous improvement areas—a move that now saves millions annually.
Distribution Network Design: The e-commerce effect
October 1, 2014 · New research and analysis offers suggestions of a new modal mix and a subsequent distribution process designed to help retailers meet more pressing customer demands.
State of Cloud Computing: Defining itself in SCM
October 1, 2014 · We explore the progress supply chain management (SCM) applications are making in the cloud, pinpoint key benefits, attempt to demystify the concerns, and discuss which solutions are helping to solidify cloud delivery in this somewhat reluctant market.
Optimizing 3PL Relationships: How to avoid commoditization
October 1, 2014 · While shippers may generally be content with the reliability of their 3PL partners, new research indicates that there’s considerable concern about the value of long-term, strategic relationships. Industry analysts explain how innovation and a deeper commitment to collaboration will become the key differentiators in the 2015 marketplace.
Lift truck technology: Elevating the entire facility
October 1, 2014 · As the industry successfully harnesses the wealth of available lift truck fleet data, opportunities for improvement extend throughout the operation.
Top 30 Ocean Carriers: Profits at last?
October 1, 2014 · Maersk caused a stir last summer by raising its full-year profit forecast for 2014 due to higher freight volumes and lower costs. Industry analysts wonder, however, if many of the other Top 30 carriers will exercise the same discipline to achieve similar goals.
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Baltimore suing ship that crashed into bridge, closing port, costing jobs
The city of Baltimore is suing the owners of the cargo ship that crashed into the Francis Scott Key Bridge, causing it to collapse and closing the Port of Baltimore for months.

Intermodal growth volume remains intact in March, reports IANA
Total March volume, at 1,464,782 units, increased 6.7% annually, below February’s 14.6% annual increase, while topping November, December, and January, which saw gains of 3.8%, 6.4%, and 5.5%, respectively.   

Descartes announces acquisition of Dublin, Ireland-based Aerospace Software Developments
Earlier this week, Waterloo, Ontario-based Descartes, a provider of logistics based on-demand, software-as-a-service offerings, continued to flex its M&A muscle, acquiring Dublin, Ireland-based Aerospace Software Developments, a provider of customs and regulatory compliance service.

Amid ongoing unexpected events, supply chains continue to readjust and adapt
Expecting the unexpected going back to the onset of the pandemic in March 2020 has really been a part of supply chain and logistics lexicon. As we know, there were many logistics and supply chain “lessons learned” coming out of the pandemic, which clearly still remain intact today, especially including the need for supply chain resiliency and preparedness, as well as flexible and nimble deployment of labor, assets, and technology, among others.

Shipment and expenditure decreases trend down, notes Cass Freight Index
March’s shipment reading, at 1.113, fell 3.6% annually, down from February’s 4.5% decrease and January’s 7.6% decline.

March trucking tonnage trends down, reports ATA
The ATA’s advanced Seasonally Adjusted (SA) For-Hire Truck Tonnage Index fell 2%, to 113.4 (2015=100), following a 4% February gain, to 115.7, and a 3.2% January decline.

FTR Shippers Conditions Index enters negative territory
For February, the most recent month for which data is available, the SCI reading came in at -1.4, below January’s 3.4, which was 3% below December’s 6.4 reading and also below November’s 6.3.

DAT March Truckload Volume Index sees modest March gains
From February to March, the the van TVI, at 260, was up 4%, with the refrigerated TVI, at 200, up 2.6%, and the flatbed TVI, at 242, up 4.4%.

National diesel average, for week of April 22, is down for the second straight week
For the week of April 22, the national average fell 2.3 cents, to $3.922. This followed a 2.3-cent decrease, to $4.015 per gallon, for the week of April 15, which was preceded by a 6.5-cent increase, to $4.004, for the week of April 8.

UPS reports first quarter earnings decline
Quarterly consolidated revenue, at $21.7 billion, fell 5.3% annually, and adjusted earnings per share, at $1.43, saw a 35.0% annual decline. Consolidated quarterly operating profit came in at $1.6 billion, which was off 36.5% annually.

LM Podcast Series: Assessing the freight transportation and logistics markets with Tom Nightingale, AFS Logistics
During this podcast, Nightingale provided a detailed overview of the new Cowen/AFS Freight Index report and variuous market issues.

Investor expectations continue to influence supply chain decision-making
More shareholders are expecting supply chains to become resilient to protect the bottom line.

Sponsored Content
The Next Big Steps in Supply Chain Digitalization
Technology continues to advance and new developments are building on the foundation that is now in place in many supply chains. Here are five of the most significant advances shaping the next wave of digitalization.

Under-21 driver pilot program a bust with fleets as FMCSA seeks changes
The FMSCA says only 113 motor carriers have applied for its under-21 truck driver apprenticeship program since July 2022. That is a very disappointing turnout for an initiative that the government had expected to recruit up to 1,000 carriers and 3,000 drivers.

Diesel back over $4 a gallon; Mideast tensions, other worries cited
Diesel prices are back over $4 a gallon, according to the U.S. Energy Information Administration’s (EIA) weekly, on-highway survey of prices at 73,000 service stations and 9,500 truck stops around the country. Average diesel prices rose by 6.5 cents, increasing to $4.06 per gallon as of Monday, April 8. The Western states of Arizona, Nevada, Oregon and Washington saw the highest average price increase for the period, rising 11 cents to $4.26 per gallon.

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