Darren Hawkins assumes executive position at NACPC
Darren Hawkins announced as president and incoming CEO, Dave Manning to serve as Chairman of the Executive Board The North American Chassis Pool Cooperative (NACPC) announces Darren Hawkins as president and incoming Chief Executive Officer. Before this appointment, he served as CEO of Yellow and had 35 years of experience in transportation logistics service with three large motor carriers. “Darren is serving as president now and will add the CEO designation on January 1, 2025. I will transition to Chairman of the Executive Board, allowing me to stay involved with this great company and take advantage of many personal interests outside of work,” said Dave Manning, CEO of NACPC. “I’ve known Darren for many years and am excited to have him guiding NACPC into the future. He is the perfect person to lead NACPC to achieve the ambitious growth goals established by our Board.” “I’m honored to work with the NACPC team to continue providing a modern fleet of chassis to the U.S. intermodal container network with first-class service, expansion in our domestic services, and continued heavy investment in our international services to benefit US motor carriers with chassis choice and competitive pricing,” said Darren Hawkins.
Episode 517: Leveraging podcasting to Fuel 3PL growth
In this episode of The New Warehouse Podcast, Kevin welcomes back Dave Gulas, founder of EZDC 3PL and host of the Beyond Fulfillment Podcast. Dave’s transition from the pharmaceutical industry to the 3PL space showcases a remarkable growth trajectory. His strategic use of podcasting to build a personal brand and expand his business network has been a critical driver of this success. In their conversation, Dave shares insights into how podcasting has opened doors, increased lead generation, and contributed to the overall growth of his 3PL business. The Power of Consistency in Content Creation One of the standout themes in this conversation is the importance of consistency in content creation. Dave emphasized that starting his podcast was pivotal in growing his business. He noted, “When I started, I had no experience, but I just kept going. The more you do it, the better you get.” His discipline in regularly producing content has improved his podcasting skills and significantly boosted his company’s online presence. “You don’t have to get it right; you just have to get it going and continue to improve and adjust along the way.” This consistency has led to a steady stream of leads, which has been crucial in a highly competitive industry like logistics. Navigating the Challenges of 3PL Growth As Dave’s 3PL business expanded, he encountered the typical challenges of rapid growth, particularly in identifying the right customers. Early on, Dave admitted to chasing after every deal. He shared, “We brought in accounts that really weren’t the right fit for us, and we’re now transitioning away from some of those.” This experience has taught him the value of refining his company’s focus and only taking on clients that align with their strengths, leading to better service and more satisfied customers. Expanding Services Through Strategic Partnerships Dave also discussed the strategic decision to add freight brokerage to his service offerings. This move helps provide a more comprehensive service to his clients, who often require help with freight services in addition to fulfillment. Partnering with SPI Logistics allowed Dave to manage sales while efficiently leveraging SPI’s robust back-office support. “Becoming an agent with SPI has been great,” Dave said, highlighting how this partnership has enabled him to serve his clients better and offer a more complete logistics solution. Key Takeaways Consistency is Key: Regularly producing content, even without initial experience, can significantly boost business visibility and lead generation. Focus on the Right Clients: Identifying and sticking to your company’s strengths leads to more successful client relationships and better overall business outcomes. Strategic Partnerships Enhance Service: Expanding service offerings through partnerships can help provide clients with a more comprehensive solution, improving satisfaction and retention. The New Warehouse Podcast Episode 517: Leveraging podcasting to Fuel 3PL growth
AAR reports Rail Traffic for the week ending August 31, 2024
Today, the Association of American Railroads (AAR) reported U.S. rail traffic for the week ending August 31, 2024. This week’s total U.S. weekly rail traffic was 516,632 carloads and intermodal units, up 8.4 percent compared with the same week last year. Total carloads for the week ending August 31 were 233,278, up 1.0 percent from the same week in 2023, while the U.S. weekly intermodal volume was 283,354 containers and trailers, up 15.3 percent from 2023. Seven of the ten carload commodity groups posted an increase compared with the same week in 2023. They included grain, up 5,492 carloads, to 20,494; petroleum and petroleum products, up 1,365 carloads, to 11,412; and motor vehicles and parts, up 1,144 carloads, to 17,221. Commodity groups that posted decreases compared with the same week in 2023 were coal, down 5,495 carloads, to 62,624; metallic ores and metals, down 1,487 carloads, to 21,616; and nonmetallic minerals, down 166 carloads, to 32,156. For the first 35 weeks of 2024, U.S. railroads reported a cumulative volume of 7,557,821 carloads, down 3.6 percent from last year, and 9,094,439 intermodal units, up 9.3 percent. Total combined U.S. traffic for the first 35 weeks of 2024 was 16,652,260 carloads and intermodal units, an increase of 3.1 percent compared to last year. North American rail volume for the week ending August 31, 2024, on nine reporting U.S., Canadian, and Mexican railroads totaled 343,419 carloads, up 2.3 percent compared with the same week last year, and 354,117 intermodal units, up 8.1 percent compared with last year. Total combined weekly rail traffic in North America was 697,536 carloads and intermodal units, up 5.2 percent. North American rail volume for the first 35 weeks of 2024 was 23,201,648 carloads and intermodal units, up 2.4 percent compared with 2023. Canadian railroads reported 94,106 carloads for the week, up 4.7 percent, and 58,491 intermodal units, down 18.8 percent compared with the same week in 2023. For the first 35 weeks of 2024, Canadian railroads reported a cumulative rail traffic volume of 5,538,464 carloads, containers, and trailers, up 0.3 percent. Mexican railroads reported 16,035 carloads for the week, up 8.9 percent compared with the same week last year, and 12,272 intermodal units, up 24.8 percent. Cumulative volume on Mexican railroads for the first 35 weeks of 2024 was 1,010,924 carloads and intermodal containers and trailers, up 4.1 percent from the same point last year. To view the rail charts, click here.
August 2024 Logistics Manager’s Index Report® LMI® at 56.4
Growth is INCREASING AT AN INCREASING RATE for Inventory Levels, Inventory Costs, Warehousing Capacity, Warehousing Prices, Transportation Capacity, and Transportation Utilization. Growth is INCREASING AT A DECREASING RATE for Warehousing Utilization and Transportation Prices The Logistics Manager’s Index reads in at 56.4, down slightly (-0.1) from July’s reading of 56.5. The overall index has now increased for nine consecutive months. The index has been remarkably consistent, reading in at 55.6, 55.3, 56.5, and 56.4 over the last four months (for a standard deviation of 0.5) as the logistics industry has continued its slow, steady expansion. The major move of the August report are Inventory Levels, which are up (+6.1) to 55.7, breaking the streak of contraction that we had observed over the previous three months. This suggests that after running inventories down, firms are building them back up again in anticipation of Q4. This suggests a return to traditional patterns of seasonality that we have not seen since pre-COVID. This buildup of inventories is somewhat tempered by increases in both Warehousing Capacity (+5.0) and Transportation Capacity (+5.8). While it may seem somewhat incongruous for there to be more available capacity when inventories are up, there are some reasonable explanations when we dig into the details. The expansion of Transportation Capacity could be some smaller carriers or owner-operators “getting off the sidelines”. Transportation Prices read in at 61.6. This means that prices have increased consecutively in seven of the last eight months as well as in the last four. The prices are still nowhere near the highs of 2020-2021, but it is a marked shift from the 18 consecutive months of contraction from July 2022 to December 2023. The signs of new life in the freight market, along with anticipation of the traditional jump in demand that follows the Labor Day holiday, are likely causing some of the capacity that had been sidelined over the past two years to re-enter the market, accounting for the mild increase in available capacity. Warehousing Capacity increased at least partly because Downstream Inventory Levels are still decreasing at 46.3 (although this is a notably slower rate than July’s 40.0). As a result, downstream capacity is increasing significantly faster than upstream (67.6 to 56.8). We would expect this to shift as inventories matriculate downstream to retailers. If this does not happen, it may mark a slower-than-expected peak season. That being said, Warehousing Prices are still up (+2.8) to 63.1, with more of the cost increase coming from Downstream respondents who reported a growth rate of 67.6. Researchers at Arizona State University, Colorado State University, Florida Atlantic University, Rutgers University, and the University of Nevada, Reno, and in conjunction with the Council of Supply Chain Management Professionals (CSCMP) issued this report today. Results Overview The LMI score combines eight unique components that comprise the logistics industry, including inventory levels and costs, warehousing capacity, utilization, and prices, as well as transportation capacity, utilization, and prices. The LMI is calculated using a diffusion index, in which any reading above 50.0 indicates that logistics is expanding; a reading below 50.0 indicates a shrinking logistics industry. The latest results of the LMI summarize the responses of supply chain professionals collected in August 2024. The LMI read in at 56.4 in August, nearly unchanged (-0.1) from July’s reading of 56.5. This continues the run of moderate expansion that we have observed throughout 2024. It is interesting that the rate of expansion in the overall index has plateaued between 55.0 and 56.5 throughout most of the year (with March’s 58.3 and April’s 52.9 being the only exceptions). This is a modest growth rate below the all-time average of 61.8. The overall index has been below the all-time average every month since June 2022, when it read in at 65.0. In their future predictions, respondents predict that within the year, the overall index will reach 62.4, which is consistent with their forecasts throughout the summer and will bring us back in line with that all-time average. The logistics industry is a leading indicator and barometer for economic activity. It will be interesting to continue monitoring these movements over the next year and to see whether or not we see any acceleration past the slow, steady growth that has characterized the logistics industry throughout 2024 (which, it should be pointed out, has been a relief relative to the contraction or anemic growth we saw throughout 2023). The slow, steady growth of the LMI, in many ways, mirrors the overall U.S. economy. U.S. GDP for Q2 was revised up to 3.0% growth, which is up 0.2% from the initial estimate of 2.8%. Morgan Stanley’s current estimate for Q3 growth is 2.3% (up from the previous estimate of 2.1%)[1]. The PCE price index also came in slightly lower, moving down from 2.6% to 2.5%, providing another data point for the normalization of inflation[2]. This spending comes despite revisions showing that 818,000 fewer jobs were created between April 2023 and March 2024 than were initially reported[3]. This mix of strong spending with a softening labor market significantly increases the chances that the Fed will cut interest rates by at least a quarter point at their September meeting, something that would begin the process of loosening up spending for both the Downstream and Upstream supply chain. Despite the dip in PCE, Americans increased their spending at retailers in July, with sales up 1% from June’s reading. This is the largest month-to-month increase in consumer spending since January 2023[4]. Spending was spurred by the continued cooling of prices, which rose by only 0.2% from June to July – a far cry from the 2.5% increase from the same period in 2023[5]. There is also a seasonality element; the National Retail Federation (NRF) estimates that U.S. consumers spent $38.8 billion ($875 per household) on back-to-school shopping. This is down slightly from last year’s $41.5 billion spent but still represents the second-highest back-to-school season on record[6]. Despite this, the U.S. economy continues to be tougher on lower-income individuals. This is evidenced by
NRF urges ILA-USMX to resume negotiations and avoid port strike
The National Retail Federation released the following statement from NRF President and CEO Matthew Shay regarding concerns about a potential labor strike at U.S. ports on the East and Gulf Coasts. The International Longshoremen’s Association and the United States Maritime Alliance have until Sept. 30 to reach a new contract. “NRF continues to call upon the International Longshoremen’s Association and the United States Maritime Alliance to return to the bargaining table to resume negotiations in order to reach a new deal before the contract expires on Sept. 30. The threat of a strike during the peak shipping season has many retailers already implementing costly mitigation strategies. “At a time when inflation is on the downward trend, a strike or other disruption would significantly impact retailers, consumers, and the economy. The administration needs to offer any and all support to get the parties back to the table to negotiate a new contract.” In June, NRF led a coalition of 158 state and federal trade associations in a letter to President Biden urging the administration to work with the negotiating parties to reach a new agreement. Earlier this year, NRF sent a letter to ILA and USMX calling for the resumption of port labor negotiations. As the leading authority and voice for retail, NRF will continue to advocate for policies that ensure supply chain resiliency.
Women In Trucking Association announces its September 2024 Member of the Month
The Women In Trucking Association (WIT) has announced Lehua Anderson as its September 2024 Member of the Month. Anderson is a professional driver for GP Transco, a trusted leader in transportation that delivers excellence and innovative solutions for the trucking and logistics industry. Originally from Moloka’i, a tiny island in Hawaii, Anderson relocated and was raised in rural Alaska, where much of the population survived on fishing, farming, and hunting. This upbringing, surrounded by a family of towering Polynesian men, showed her that challenges are meant to be conquered, regardless of gender norms. “Men don’t scare me,” says Anderson. Once Anderson’s children moved out, she and her husband decided they wanted to travel and began pursuing professional truck driving careers. Now, with a staggering 25 years of overall experience, she enjoys the freedom of driving, saying, “I don’t have to manage or supervise anyone, and I have the freedom to make my own choices about when my day is going to start and where I want to go.” For Anderson, trucking isn’t just a profession; it’s a passion forged through years of dedication and a deep-seated love for the open road. Anderson stresses the importance of researching and finding a company that prioritizes the safety of its drivers, especially as a woman in a male-dominated industry. As an example, while at her first company, she recalls a time she got stuck in a blizzard with no heat in her truck. Anderson relied on her ten years of living in Alaska to survive, showcasing her ability to navigate any roadblock with finesse and confidence. Anderson is a beacon of strength and resilience in the trucking world, where grit and determination pave the way. Her journey with GP Transco is about miles driven and overcoming obstacles with unwavering courage. As Anderson continues to drive forward with GP Transco, she embodies the perseverance that defines the Women in Trucking community. Her story inspires admiration and a profound respect for those who dare to break barriers and pave new paths in the trucking world.
ORBIS hosted a 2024 Community Giving Reception
ORBIS® Corporation held its annual Community Giving Reception on August 22 to celebrate and honor the services that nonprofit organizations provide to area communities. The event brought together 80 attendees representing charitable organizations from across southeast Wisconsin to receive their charitable donations. Menasha Corporation, ORBIS’ parent company, was founded by Elisha D. Smith in 1849. He was a tremendous philanthropist in the Menasha, Wis. area. Today, the Menasha Corporation Foundation proudly carries on the tradition of Elisha Smith’s giving. Funding is made available by Menasha Corporation Foundation, the charitable entity of ORBIS’ parent company. ORBIS has community teams across the enterprise to serve the local, geographic communities in which its employees live. These teams identify and support local groups, agencies and causes in need of financial support, time or volunteers. The Community Action Team at ORBIS’ headquarters, located in Oconomowoc, has built partnerships with many nonprofits in southeast Wisconsin and celebrates these partnerships at the Community Giving Reception. “The Giving Reception shines a light on the positive impact nonprofit organizations make in the communities where our employees live and work,” said Jo Anne Behling, leader of the ORBIS Community Action Team. “In addition to the donations we make, we collaborate with our nonprofit partners to provide volunteers to help support their great work to make the world a better place for citizens and animals in need and advance the health and wellbeing of the community. This is a special year for us, as Menasha Corporation celebrates its 175th anniversary.” Strength and Service through Local Partnerships ORBIS demonstrates a strong commitment to the communities where their employees reside, regularly partnering with local entities and businesses to enhance community growth. In addition to community giving efforts, one other example of this partnership is how ORBIS achieved a significant fundraising milestone of $1 million for Children’s Wisconsin during their fourth annual Good Day for Kids golf outing. The event was held in June at the Grand Geneva golf course in Lake Geneva, Wisconsin. This year’s outing collected over $370,000 for pediatric critical care, supporting the Pediatric Simulation and Resuscitation Program. The partnership aims to improve care for children facing life-threatening conditions. To date, the event has raised $1 million for the program, offering realistic simulation-based training for healthcare professionals nationwide. “We are incredibly proud of our employees’ dedication to volunteerism and community service,” said ORBIS President Norm Kukuk. “Neighborhood involvement and improvement is a crucial part of our mission, and I’m thrilled to celebrate their collective efforts in partnering with organizations to support and uplift the communities we serve. It’s all part of honoring the spirit of service that has set us apart for the last 175 years.” 2024 Menasha Foundation fund recipients: Alzheimer’s Association of Wisconsin Angelman Syndrome Foundation Big Bob & Bob Van Wie Tournament – UW Carbone Blessings in a Backpack (Waukesha Chapter) Brewers Community Foundation Bryon Riesch Paralysis Foundation CCLS – Creative Community Living Services Downs Syndrome Association of WI Educational Foundation of Watertown HAWS (Humane Animal Welfare Society in Waukesha) Hebron House Heroes for Heroes Hope Center Humane Society of Jefferson County Imagine a Day Foundation Johnson Creek Helping Hands Food Pantry Johnson Creek Police Department Journey21 Kisses From Keegan & Friends Lake Area Free Clinic Lake Country DockHounds Lake Country Shop with Cops Lake Mills Food Pantry Lake Mills Police Department LifeStriders Madison Starlings Make-A-Wish Foundation Milwaukee Bucks Foundation National Alliance on Mental Illness – Southeastern WI Oconomowoc Festival of the Arts Oconomowoc Police Department Oconomowoc Regional Cancer Center Oconomowoc Scholarship Foundation PAVE Personal Essentials Pantry Pets Helping People Prohealthcare Foundation (Angelsgrace Hospice) Rainbow Hospice Care Shorehaven ST. Katharine Drexel Shelter Summit Police Department The Cure Starts Now – WI Chapter – Brayleighville Watertown Food Pantry Watertown Humane Society Watertown Police Department Waukesha Country Green Team Western Lakes Fire Department Women & Girls Fund of Waukesha County
AAR reports Rail Traffic for the week ending August 24, 2024
The Association of American Railroads (AAR) has reported U.S. rail traffic for the week ending August 24, 2024. This week’s total U.S. weekly rail traffic was 516,807 carloads and intermodal units, up 9.5 percent compared with the same week last year. Total carloads for the week ending August 24 were 228,858 carloads, up 1.2 percent compared with the same week in 2023, while U.S. weekly intermodal volume was 287,949 containers and trailers, up 17.1 percent compared to 2023. Seven of the ten carload commodity groups posted an increase compared with the same week in 2023. They included grain, up 5,519 carloads, to 18,914; petroleum and petroleum products, up 951 carloads, to 10,867; and miscellaneous carloads, up 602 carloads, to 9,360. Commodity groups that posted decreases compared with the same week in 2023 were coal, down 5,785 carloads, to 62,543; nonmetallic minerals, down 329 carloads, to 32,891; and metallic ores and metals, down 212 carloads, to 21,812. For the first 34 weeks of 2024, U.S. railroads reported a cumulative volume of 7,324,543 carloads, down 3.7 percent from last year, and 8,811,085 intermodal units, up 9.1 percent from last year. Total combined U.S. traffic for the first 34 weeks of 2024 was 16,135,628 carloads and intermodal units, an increase of 2.9 percent compared to last year. North American rail volume for the week ending August 24, 2024, on nine reporting U.S., Canadian, and Mexican railroads totaled 310,429 carloads, down 4.5 percent compared with the same week last year, and 350,204 intermodal units, up 7.1 percent compared with last year. Total combined weekly rail traffic in North America was 660,633 carloads and intermodal units, up 1.3 percent. North American rail volume for the first 34 weeks of 2024 was 22,504,112 carloads and intermodal units, up 2.3 percent compared with 2023. Canadian railroads reported 65,550 carloads for the week, down 22.0 percent, and 49,890 intermodal units, down 28.0 percent compared with the same week in 2023. For the first 34 weeks of 2024, Canadian railroads reported a cumulative rail traffic volume of 5,385,867 carloads, containers, and trailers, up 0.5 percent. Mexican railroads reported 16,021 carloads for the week, up 6.8 percent compared with the same week last year, and 12,365 intermodal units, up 5.7 percent. Cumulative volume on Mexican railroads for the first 34 weeks of 2024 was 982,617 carloads and intermodal containers and trailers, up 3.8 percent from the same point last year. To view the railroad traffic charts, click here.
Developing behavioral principles to support your corporate strategy
When strategy development is complete, most executives start the rollout process. But communicating the strategy isn’t activating the strategy. Activation requires establishing guidance on how to shed old mindsets and embrace new ways of thinking. This necessitates shifting from telling to illustrating. Change always begins with identifying specific behaviors that impact outcomes. Yet things like company values are typically too subjective, abstract, or generic to drive a distinct strategy. For instance, “product excellence” is a common organizational value, and no one would argue against it. But what does that mean for daily decision-making? How does that value help those teams with conflicting opinions find common ground? This is why behavioral principles are needed. In this example, translating “product excellence” into a behavioral principle would be, “We won’t release a product until we would use it ourselves.” When facing multiple courses of action, this provides teams with a clear edict. Rather than having various interpretations of what product excellence means – which can fuel relentless internal debate and conflict – the behavioral principle becomes the decision-making tool. Your behavioral principles should be designed in a way that makes them: a) embody your unique orientation and position, b) shine a clear light on how employees should make decisions, and c) be free of buzzwords. There are two parts to writing a behavioral principle. First, specify the what, and second, explain the how. With one of our clients, we began by asking, “What behaviors and mindsets reinforce and express your unique orientation and brand position?” and crafted the following four behavioral principles: 1. We create experiences that connect emotionally with customers, by knowing who they are, caring, and genuinely engaging. 2. We develop helpful, practical, and beneficial solutions to real-world problems by understanding customers’ real-life challenges. 3. We positively impact the customer experience through every conversation, every interaction, every point of contact, every message, and every piece of content. 4. We focus on making things easier for customers by helping simplify decisions and removing complexity. Depending on your circumstances, you may benefit from developing additional principles but do not exceed more than what would be considered practical and reasonable. Too many can create the potential for inconsistencies and contradictions. If necessary, consolidate similar principles into a single concept. The goal is to ensure the organization has a straightforward framework for making aligned decisions.
Port’s small business spending surpasses $55 Million
Effort to broaden opportunities to more firms exceeds goal by 15% A commitment by the Port of Long Beach to include more small businesses among its vendors and contractors continues to be extraordinarily successful, broadening access to port-related construction and professional services contracts. Last fiscal year, almost 42% of Port funds spent on eligible contracts through the Port’s Small Business Enterprise Program went to purchase needed services and materials from companies defined as “small business enterprises” and “very small business enterprises.” The 41.8% participation by small and very small businesses in contracting in fiscal year 2023 is the second-highest since the program was started in 2004, behind only 48.9% in 2022. The amount of applicable spending on construction projects, consulting services, event planning, and other supplies and services, rose year-over-year from $54.2 million to $55.7 million. The goal set for small business enterprise participation at the Port, which is the Harbor Department of the City of Long Beach, is 27%, higher than many peer agencies. “The SBE program provides opportunities to a wider, more diverse range of local contractors, suppliers and other businesses, which strengthens the local economy,” said Port of Long Beach CEO Mario Cordero. “As an additional benefit, we believe this practice also increases competition for tens of millions of dollars in public contracts each year, resulting in better outcomes and even more value.” “The Port of Long Beach is a job creator for our community and beyond, but we recognize it’s not enough to merely serve as an economic engine,” said Long Beach Harbor Commission President Bonnie Lowenthal. “This program was created to ensure there’s a place for smaller companies to benefit from the economic opportunities.” The thresholds of annual receipts and number of employees for classification as a small business vary widely by industry, as determined by the U.S. Small Business Administration. The very small business eligibility is equivalent to the state of California’s microbusiness designation – businesses with $5 million or less in annual gross sales, averaged over the last three fiscal years, or manufacturers with 25 or fewer employees. Aspiring contractors for the Port apply for posted contracts on the Port’s “Planet Bids” online system, where the business owners can pre-register their companies and check back for posted bids. The Port of Long Beach is a global leader in green port initiatives and top-notch customer service, moving cargo with reliability, speed and efficiency. As the premier U.S. gateway for trans-Pacific trade, the Port handles trade valued at $200 billion annually and supports 2.6 million jobs across the United States, including 575,000 in Southern California. In 2024, industry leaders named it “The Best West Coast Seaport in North America” for the sixth consecutive year. During the next 10 years, the Port is planning $2.3 billion in capital improvements aimed at enhancing capacity, competitiveness and sustainability.
U.S. Rail Traffic Report for the week ending August 17, 2024
The Association of American Railroads (AAR) reported U.S. rail traffic for the week ending August 17, 2024. This week’s total U.S. weekly rail traffic was 516,819 carloads and intermodal units, up 8.0 percent compared with the same week last year. Total carloads for the week ending August 17 were 231,081 carloads, up 1.0 percent compared with the same week in 2023, while U.S. weekly intermodal volume was 285,738 containers and trailers, up 14.3 percent compared to 2023. Eight of the 10 carload commodity groups posted an increase compared with the same week in 2023. They included grain, up 5,861 carloads, to 21,651; chemicals, up 2,008 carloads, to 33,599; and petroleum and petroleum products, up 1,849 carloads, to 11,267. Commodity groups that posted decreases compared with the same week in 2023 were coal, down 7,409 carloads, to 62,194; and nonmetallic minerals, down 2,110 carloads, to 31,897. For the first 33 weeks of 2024, U.S. railroads reported a cumulative volume of 7,095,685 carloads, down 3.9 percent from the same point last year; and 8,523,136 intermodal units, up 8.9 percent from last year. Total combined U.S. traffic for the first 33 weeks of 2024 was 15,618,821 carloads and intermodal units, an increase of 2.7 percent compared to last year. North American rail volume for the week ending August 17, 2024, on 10 reporting U.S., Canadian, and Mexican railroads totaled 333,194 carloads, down 0.2 percent compared with the same week last year, and 367,264 intermodal units, up 11.6 percent compared with last year. Total combined weekly rail traffic in North America was 700,458 carloads and intermodal units, up 5.6 percent. North American rail volume for the first 33 weeks of 2024 was 21,843,479 carloads and intermodal units, up 2.4 percent compared with 2023. Canadian railroads reported 86,349 carloads for the week, down 4.6 percent, and 69,111 intermodal units, down 2.6 percent compared with the same week in 2023. For the first 33 weeks of 2024, Canadian railroads reported a cumulative rail traffic volume of 5,270,427 carloads, containers, and trailers, up 1.2 percent. Mexican railroads reported 15,764 carloads for the week, up 7.4 percent compared with the same week last year, and 12,415 intermodal units, up 49.1 percent. Cumulative volume on Mexican railroads for the first 33 weeks of 2024 was 954,231 carloads and intermodal containers and trailers, up 3.7 percent from the same point last year.
Port of Long Beach sees busiest July on record
Cargo surge driven by back-to-school, potential tariff increases Surging cargo volumes lifted the Port of Long Beach to its most active July on record – and the third-busiest month in its 113-year history – as retailers stocked up on goods headed into the peak shipping season. Dockworkers and terminal operators moved 882,376 twenty-foot equivalent units in July, up 52.6% from the same month last year and surpassing the previous record set in July 2022 by 12.4%. Imports soared 60.5% to 435,081 TEUs, exports grew 16.3% to 104,834 TEUs, and empty containers moved through the Port jumped 57.8% to 342,462 TEUs. “We’re in a strong position heading into the peak shipping season as consumers purchase back-to-school supplies and shippers move goods ahead of potential tariff increases,” said Port of Long Beach CEO Mario Cordero. “We have plenty of capacity across our terminals and cargo continues to move efficiently and sustainably at this premier gateway for trans-Pacific trade.” “Our waterfront workforce continues to move trade through the Port at a record-setting pace,” said Long Beach Harbor Commission President Bonnie Lowenthal. “Our strong partnerships with labor and industry continue to help us meet the evolving needs of our customers.” The Port has moved 5,174,002 TEUs during the first seven months of 2024, up 20% from the same period last year.
U.S. Rail Traffic for the Week Ending August 10, 2024
The Association of American Railroads (AAR) has reported U.S. rail traffic for the week ending August 10, 2024. This week’s total U.S. weekly rail traffic was 496,509 carloads and intermodal units, up 5.2 percent compared with the same week last year. Total carloads for the week ending August 10 were 222,039 carloads, down 0.9 percent compared with the same week in 2023, while U.S. weekly intermodal volume was 274,470 containers and trailers, up 10.6 percent compared to 2023. Six of the 10 carload commodity groups posted an increase compared with the same week in 2023. They included grain, up 3,866 carloads, to 18,402; chemicals, up 2,969 carloads, to 32,959; and farm products excl. grain, and food, up 546 carloads, to 16,193. Commodity groups that posted decreases compared with the same week in 2023 included coal, down 7,633 carloads, to 61,031; nonmetallic minerals, down 1,295 carloads, to 31,849; and metallic ores and metals, down 906 carloads, to 19,432. For the first 32 weeks of 2024, U.S. railroads reported a cumulative volume of 6,864,604 carloads, down 4.0 percent from the same point last year; and 8,237,398 intermodal units, up 8.7 percent from last year. Total combined U.S. traffic for the first 32 weeks of 2024 was 15,102,002 carloads and intermodal units, an increase of 2.5 percent compared to last year. North American rail volume for the week ending August 10, 2024, on 10 reporting U.S., Canadian, and Mexican railroads totaled 326,804 carloads, down 0.2 percent compared with the same week last year, and 353,768 intermodal units, up 7.7 percent compared with last year. Total combined weekly rail traffic in North America was 680,572 carloads and intermodal units, up 3.7 percent. North American rail volume for the first 32 weeks of 2024 was 21,143,021 carloads and intermodal units, up 2.3 percent compared with 2023. Canadian railroads reported 89,620 carloads for the week, up 2.5 percent, and 66,976 intermodal units, down 5.5 percent compared with the same week in 2023. For the first 32 weeks of 2024, Canadian railroads reported a cumulative rail traffic volume of 5,114,967 carloads, containers, and trailers, up 1.4 percent. Mexican railroads reported 15,145 carloads for the week, down 6.2 percent compared with the same week last year, and 12,322 intermodal units, up 27.9 percent. Cumulative volume on Mexican railroads for the first 32 weeks of 2024 was 926,052 carloads and intermodal containers and trailers, up 3.3 percent from the same point last year. View charts
Episode 512: Transparency in freight management with CargoShot
On today’s episode of The New Warehouse Podcast featuring Jeff Jaeger, we tackle the subject of transparency in freight. Jeff, the co-founder of CargoShot, shares how his company is enhancing supply chain accountability through its innovative proof-of-condition solutions. Jeff shares his journey from moving heavy equipment worldwide for the Marine Corps to spearheading a startup that tackles the costly issues of freight claims and chargebacks. Dive into this insightful conversation to discover how CargoShot is revolutionizing the logistics industry by providing product condition transparency throughout the supply chain. The High Cost of Freight Claims Jeff outlines the significant pain point in the logistics industry: excessive freight claims and penalties. He recounts feeling helpless against fines and penalties assessed by big box retailers, “I didn’t think we were as bad as what we were getting penalized for, so I started taking photos, and I started sending them with the time and date stamp so they could clearly see the product.” Jeff saw significant relief from fines and penalties by proving they had done the work correctly. This issue propelled him to create a scalable solution that reduces erroneous charges by providing clear, irrefutable evidence of freight conditions upon shipment. Ensuring Freight Claim Accountability CargoShot addresses these challenges with its innovative mobile app, which allows users to capture and store real-time photographic evidence of freight conditions. Jeff explains the app’s functionality: “You can take that information to prove that you did your job right, or in the cases that if you didn’t, use it as a coaching/training session for your team, and speed up resolution time with the client.” By automating and simplifying the proof-of-condition process, CargoShot drastically reduces the likelihood of unwarranted penalties, fostering greater accountability and efficiency. Optimizing Transparency in Freight Management Looking forward, Jeff is excited about the potential for new technologies to mitigate freight claim issues further. He shares insights into upcoming features, “We’re working on technology using computer vision, machine learning, and artificial intelligence to be proactive.” These developments aim to preemptively identify potential issues before they result in fines, setting a new standard for proactive management in logistics. CargoShot aims to establish a seamless chain of custody from the initial warehouse receipt to the final delivery, involving every stakeholder along the way. The goal is to ensure that if an issue arises, accountability is accurately assigned, not merely defaulted. Key Takeaways CargoShot drives unnecessary costs out of the supply chain by streamlining freight claims, damage, fines, and penalties. The mobile app is hardware-agnostic and offers scalable solutions across multiple locations. Enhanced data capturing leads to improved supply chain accountability and efficiency. The New Warehouse Podcast Episode 512: Transparency in Freight Management with CargoShot
Mitsubishi Logisnext Americas and Family of Brands join efforts to Sponsor the 2024 FedEx St. Jude Championship
Mitsubishi Logisnext Americas Inc. (Logisnext) has announced its return as a sponsor for the 2024 FedEx St. Jude Championship. This year, Logisnext is joined by its entire family of brands – Cat® lift trucks, Jungheinrich®, Mitsubishi Forklift Trucks, UniCarriers® Forklift and Rocla AGV Solutions – showcasing a unified front in support of the St. Jude Children’s Research Hospital. From Aug. 14 to 18 at the TPC Southwind in Memphis, Tennessee, the tournament will feature the top 70 players on the PGA Tour competing in an exhilarating battle for the FedExCup. Since the tour’s initial partnership with St. Jude in 1970, the Memphis tournament has raised more than $60 million, significantly advancing the hospital’s lifesaving mission of ending childhood cancer. This longstanding tradition underscores that golf has always been more than just a game in Memphis; it’s been and continues to be a powerful force for good. “We are immensely proud to sponsor the PGA Tour’s FedExCup Playoffs and to be part of this prestigious event for another year,”said Stu Jacover, General Manager of National Accounts, Logisnext. “This year is particularly special as we bring together all our family of brands, reinforcing our collective commitment to charitable initiatives and the communities we serve. This sponsorship highlights our dedication to social responsibility and demonstrates our unified strength and broad capabilities in the material handling industry.” Logisnext and its family of brands extend a warm invitation to their valued Dealers and Dealer customers to join this unique golf experience. The FedEx St. Jude Championship continues to be a hallmark event in the world of golf, demonstrating the profound connection between sports and philanthropy. The event offers an exclusive opportunity to support a noble cause while engaging in meaningful conversations and fostering relationships.
Essential measures for minimizing disruption amid Ningbo Port closure
Container xChange is alerting the global container trading and leasing community to the serious repercussions of the recent explosion aboard the Yang Ming vessel YM Mobility at Ningbo Port, China. This incident, which has led to the closure of one of the world’s busiest container terminals, is expected to have significant ripple effects across global supply chains, especially on the main trade lanes out of Asia. On August 9, 2024, a container loaded with hazardous materials exploded aboard the YM Mobility while it was berthed at Ningbo Beilun’s Phase III Terminal. The explosion, which involved organic peroxide materials, has led to the terminal’s closure until further notice. “With this closure, Ningbo Port is no longer operational, compounding existing supply chain disruptions exacerbated by Typhoon Gaemi in July.” shared Christian Roeloffs, cofounder and CEO of Container xChange. “For container trading companies and those involved in container leasing, this incident presents some straightforward challenges worth accounting for. The disruption at the Ningbo Port, combined with pre-existing congestion at major Asian ports, will lead to a deterioration of ocean schedules and further delays in container availability. Companies must brace for increased dwell times, potential rerouting of shipments, and a tightening of available container supplies, especially for hazardous and dangerous goods.” shared Roeloffs. Recommended Actions: Rerouting Shipping Routes: Companies are exploring and evaluating alternative shipping routes through less congested ports to avoid delays. The closure of Ningbo will likely increase congestion at neighboring ports, so proactive planning is crucial. Increase Safety Protocols: Rigorous inspections and adherence to safety protocols, particularly for hazardous goods, must be prioritized to prevent similar incidents. Stay Informed: Regular updates from shipping partners and port authorities will be crucial in adjusting operations in real-time. Companies should maintain open lines of communication to adjust operations in real-time. Plan for Extended Dwell Times: With delays expected to increase, companies should anticipate longer dwell times at major ports and adjust their inventory and delivery schedules accordingly. Companies should plan for extended delays and consider increasing inventory levels to avoid disruptions.
Episode 510: Addressing lost and stolen packages with Deliverlitics
Today’s episode of The New Warehouse Podcast features Bobby McKinnon, Co-Founder and CEO of Deliverlitics. Deliverlitics is dedicated to solving a significant issue in the delivery and e-commerce industry: lost and stolen packages. With increased e-commerce activities, this problem has become more prevalent, impacting consumers and businesses. Bobby shares insights on how Deliverlitics leverages AI to tackle this challenge effectively. Bobby McKinnon’s Journey to Deliverlitics Bobby McKinnon’s background is diverse and impressive. After spending half a decade as an Army logistics and supply chain officer, he transitioned to the corporate world, gaining experience at Nike and a blockchain data analytics startup. His military experience, particularly in high-pressure logistics environments, equipped him with the skills to lead and innovate in the supply chain sector. “The military gave me a set of tools and passions for leading organizations that have pushed me to where I am today,” Bobby explains. His journey culminated in co-founding Deliverlitics, driven by a desire to address the pervasive issue of lost and stolen packages. The Problem of Lost and Stolen Packages The rise in e-commerce has exacerbated the issue of lost and stolen packages, creating significant challenges for retailers and consumers alike. Bobby categorizes the problem into three main areas: misplaced items, package theft, and first-party fraud. “Somewhere in the neighborhood of $15 to $20 billion is what it’ll end up being lost or stolen this year across all of e-commerce,” he notes. Examples like the man dressed as a trash bag stealing packages highlight the creativity of thieves. Moreover, first-party fraud, where customers falsely claim packages are missing, adds to the financial burden on businesses. Deliverlitics’ AI-Driven Solution Deliverlitics addresses these challenges through innovative AI solutions. By analyzing vast amounts of data, they predict and mitigate the risk of package loss and theft. This analysis allows them to provide specific recommendations to mitigate the identified risks. Bobby elaborates, “AI allows us to sift through these things, find the points of correlation, find the things that are causing these events to occur or contributing to their propensity to happen. And then we can predict them.” Their Shopify plugin, for example, assesses the risk of each order in real-time, providing recommendations like adding signature verification or redirecting to a secure location. This proactive approach protects businesses and enhances the consumer experience by reducing friction and maintaining trust. Key Takeaways Innovative AI Solutions: Deliverlitics uses AI to analyze data and predict risks associated with package delivery. Significant Financial Impact: The e-commerce industry loses billions annually due to lost and stolen packages. Proactive Recommendations: Their system provides real-time recommendations to mitigate risks, improving both business operations and customer satisfaction. The New Warehouse Podcast Episode 510: Addressing Lost and Stolen Packages with Deliverlitics
Episode 509: The Eighth Notch is streamlining last-mile delivery
Today, Mike Robinson, the Head of Retail Solutions and a founding member of The Eighth Notch, joins the show to discuss how The Eighth Notch is streamlining last-mile delivery. In this episode, we explore The Eighth Notch’s unique approach to addressing delivery coordination challenges, particularly in the last mile of e-commerce deliveries. Mike shares insights into their innovative solutions that aim to improve sustainability and efficiency in the delivery process. The Origin and Mission of The Eighth Notch Mike provides an intriguing background story, describing himself as an “accidental retailer” and sharing how his career trajectory led him to become a founding member of The Eighth Notch. He recounts his experiences at major retailers like Gap and Macy’s, where he witnessed the exponential growth of e-commerce and the consequent logistical challenges. This experience sparked his desire to focus on improving rather than just expanding e-commerce operations. The name “The Eighth Notch” itself is a tribute to the founder’s father, a railroad engineer. The term signifies the highest power setting on a locomotive, symbolizing their commitment to peak performance in delivery logistics. Tackling Delivery Coordination Issues The Eighth Notch’s primary goal is to reduce the frequency and inefficiency of delivery trucks by better coordinating deliveries. Mike explains that the current state is unsustainable economically and environmentally and that it is“done in an unsynchronized, uncoordinated manner.” The Eighth Notch aims to optimize delivery schedules, ensuring multiple packages arrive simultaneously. Mike illustrates how the company created a three-way gain-share model where the carrier gets their share, the retailer gets an incentive for changing their behavior, and they get a component of the savings. Enhancing Consumer Experience and Sustainability A key aspect of The Eighth Notch’s strategy is consumer education and engagement. While the end consumer might not be directly aware of the behind-the-scenes coordination, The Eighth Notch is providing consumers with the benefit of fewer, more consolidated deliveries, which reduces carbon emissions and enhances convenience. The company is also looking into offering consumers choices at checkout, similar to Amazon’s sustainable delivery options. This shift towards consumer-enlisted sustainability aligns with growing environmental consciousness among shoppers. Key Takeaways from The Eighth Notch Efficiency through Coordination: The Eighth Notch focuses on synchronizing deliveries to reduce frequency and enhance efficiency. Economic and Environmental Benefits: Their model saves costs and reduces carbon emissions, benefiting carriers, retailers, and the environment. Consumer Engagement: Offering sustainable delivery options at checkout can drive consumer engagement and loyalty. The New Warehouse Podcast Episode 509: The Eighth Notch is Streamlining Last-Mile Delivery
AAR reports Rail Traffic for the week ending August 03, 2024
The Association of American Railroads (AAR) has reported U.S. rail traffic for the week ending August 3, 2024, and July 2024 volumes. U.S. railroads originated 1,073,191 carloads in July 2024, down 2.1 percent, or 23,353 carloads, from July 2023. U.S. railroads also originated 1,319,818 containers and trailers in July 2024, up 8.4 percent, or 102,549 units, from the same month last year. Combined U.S. carload and intermodal originations in July 2024 were 2,393,009, up 3.4 percent, or 79,196 carloads and intermodal units from July 2023. In July 2024, 12 of the 20 carload commodity categories tracked by the AAR each month saw carload gains compared with July 2023. These included grain, up 19,690 carloads or 26.5 percent; chemicals, up 4,797 carloads or 3.1 percent; and petroleum & petroleum products, up 4,048 carloads or 8.5 percent. Commodities that saw declines in July 2024 from July 2023 included coal, down 35,167 carloads or 11.0 percent; crushed stone, sand & gravel, down 11,563 carloads or 10.6 percent; and motor vehicles & parts, down 6,436 carloads or 9.1 percent. Excluding coal, carloads were up 11,814 carloads, or 1.5 percent, in July 2024 compared to July 2023. Excluding coal and grain, carloads were down 7,876 carloads or 1.1 percent. Total U.S. carload traffic for the first seven months of 2024 was 6,642,565 carloads, down 4.1 percent, or 286,356 carloads, from the same period last year, and 7,962,928 intermodal units, up 8.6 percent, or 631,898 containers and trailers, from last year. Total combined U.S. traffic for the first 31 weeks of 2024 was 14,605,493 carloads and intermodal units, an increase of 2.4 percent compared to last year. Week ending August 3, 2024 Total U.S. weekly rail traffic was 498,807 carloads and intermodal units, up 5.7 percent compared to last year. Total carloads for the week ending August 3 were 219,568, down 1.2 percent from the same week in 2023, while the U.S. weekly intermodal volume was 279,239 containers and trailers, up 11.8 percent from 2023. Six of the ten carload commodity groups posted an increase compared with the same week in 2023. They included chemicals, up 2,971 carloads, to 33,218; petroleum and petroleum products, up 1,629 carloads, to 11,016; and grain, up 1,368 carloads, to 17,022. Commodity groups that posted decreases compared with the same week in 2023 included coal, down 5,528 carloads, to 58,978; nonmetallic minerals, down 2,052 carloads, to 31,312; and metallic ores and metals, down 1,357 carloads, to 20,721. North American rail volume for the week ending August 3, 2024, on ten reporting U.S., Canadian, and Mexican railroads totaled 322,520 carloads, down 1.2 percent compared with the same week last year, and 351,513 intermodal units, up 6.1 percent compared with last year. Total combined weekly rail traffic in North America was 674,033 carloads and intermodal units, up 2.5 percent. North American rail volume for the first 31 weeks of 2024 was 20,471,828 carloads and intermodal units, up 2.3 percent compared with 2023. Canadian railroads reported 90,465 carloads for the week, up 1.6 percent, and 64,067 intermodal units, down 10.6 percent compared with the same week in 2023. For the first 31 weeks of 2024, Canadian railroads reported a cumulative rail traffic volume of 4,958,371 carloads, containers, and trailers, up 1.5 percent. Mexican railroads reported 12,487 carloads for the week, down 17.3 percent compared to last year, and 8,207 intermodal units, down 15.8 percent. Cumulative volume on Mexican railroads for the first 31 weeks of 2024 was 907,964 carloads and intermodal containers and trailers, up 4.2 percent from the same point last year. To view the rail traffic reports, click here.
US Container Shipping braces for headwinds as peak season approaches
Majority of US container traders surveyed anticipate further container price hikes in August, 92% expect volatility China to US and China to Europe Container leasing rates surge in July The US container shipping sector is cautiously approaching the peak season, with the upcoming US elections and labor negotiations poised to bring their own set of implications for the container logistics industry, as indicated in the August Container Market Forecaster by Container xChange. The sector has already been witnessing its own set of challenges like overestimation of demand, pulling forward of orders which caused inflationary trends in the freight and container rates and resultantly, the wait and watch strategy by container sellers and container buyers. The election year brings an element of uncertainty, as many US container traders are concerned about potential changes in trade and regulatory policies, as well as economic policies that could impact consumer sentiment and their spending patterns. “While our customers anticipate these headwinds impacting their business, they also remain hopeful that business activity will pick up in September as companies prepare for the holiday season.” shared Angelo Marino, Americas Account manager, Container xChange. “The upcoming labor negotiations on the US East Coast in Q3 add another layer of potential volatility. Retailers have been preparing for the peak season since early 2024, aiming to avoid stock shortages, and now that we’re entering this busy period, the focus will be on understanding the true demand dynamics. The anticipation of these events is critical for navigating the complexities of the market in the coming crucial months.” shared Christian Roeloffs, cofounder and CEO of Container xChange. “The hot container leasing market isn’t solely due to the Suez Canal issue; it also ties into expectations surrounding potential changes in US administration and international trade policies. Additionally, retailers are anticipating the peak season and aiming to ensure their stock is secured well before November to avoid any kind of disruptions. While we expect container imports in Europe and the US, along with Asian exports, to remain strong as we approach the peak season, this momentum is likely to cool off by the end of the year. This is because the current stock recovery from retailers will have been largely completed. There is a possibility that the market could stay hot a little longer if retailers decide to stock up ahead of the Chinese New Year, but we don’t anticipate that the current market conditions, influenced in part by the Suez Canal crisis, will persist indefinitely into the future,” shared Andrea Monti, Managing Director and CEO of Sogese SRL, a trading and leasing company based in Italy and a customer of Container xChange. “Our customers in the US are facing challenges with inventory liquidation due to mismatched expectations between container buyers and container sellers. In this context, it may not be a prosperous time for container traders, the logistics market, or retailers who have stockpiled inventories to avoid delays in the peak season.” added Roeloffs. Container Price Sentiment Survey Results A survey of around 1,000 US-based container traders reveals that 78% expect container prices to continue rising in the coming weeks, driven by election uncertainty and potential labor strikes. Only 14% foresee a decline, while 8% expect prices to remain stable. This indicates a broad expectation of continued volatility in the US container trading environment. However, the global Container Price Sentiment Index (xCPSI) by Container xChange dropped from 63 to 39 points in July, suggesting waning sentiment towards rising container prices in the near term. Roeloffs added, “The overestimation of strong consumer demand has resulted in overstocked retail inventories. We’ve observed for some time now that actual consumer demand hasn’t experienced a significant spike, thereby allowing retailers and importers ample time to restock before their next cycle. This situation could challenge the container shipping industry, as the recent spike in freight rates and container prices may not be sustainable further in the rest of the year. It’s only a matter of time before we see a downward trend in container and freight rates.” Market Outlook “As we approach the peak season of 2024, we’re observing a couple of pivotal shifts expected to impact the container shipping industry. First, there’s a gradual correction in supply and demand on the cards that should stabilize rates in the latter half of the year, owing to a lack of solid demand surge. In a longer term, the more profound change is the ongoing trend toward regionalization and smaller trade networks, which became mainstream in 2021. This shift has gained even more importance today, especially as geopolitical conflicts become a regular consideration in risk resilience strategies. Intra-Asia trade boom is a significant factor that indicates that smaller, more complex trade networks are developing and flourishing.” shared Christian Roeloffs, cofounder and CEO of Container xChange, the online container trading and leasing marketplace, based in Hamburg, Germany.