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Amazon Looking to Transform Empty Mall Space Into Fulfillment Centers

Posted by Land Link Traffic Systems on Aug 13, 2020 9:17:47 AM

One of the largest owners of shopping mall real estate in the United States, Simon Property Group, has been talking to Amazon about transforming its anchor department stores into Amazon distribution hubs, according to the Wall Street Journal. This sounds like good news for Amazon, property owners and local tax and employment opportunities. But is there a downside?

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Topics: Supply Chain Management, Intermodal Freight, Reducing Freight Rates, 3D Printing, Big Data

The Slow Opening of the Country.  How Will it Work.

Posted by Land Link Traffic Systems on May 21, 2020 8:19:57 AM

While health experts have expressed doubt of America's readiness to "open up" the economy, it is clear that elected representatives are putting the wheels in motion towards that end.

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Topics: Supply Chain Management, Third Party Logistics, Freight Bill Auditing, Transportation News, Maximizing Routing Efficiencies, 3D Printing, Logistics News, Industry Trends

Supply Chain Recovery Post Corona Virus.  Formulate Your Plan Now.

Posted by Land Link on May 14, 2020 9:51:11 AM

 

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Topics: Supply Chain Management, Third Party Logistics, Freight Bill Auditing, Transportation News, Logistics Business, Freight Bill Audit, Logistics News, Industry Trends

The New Normal in Retail Will Be Far From Normal

Posted by Land Link Traffic Systems on May 6, 2020 12:26:03 PM

As retailers struggle with re-opening strategies it’s clear the new normal will be something we have never experienced.  Consumers in many areas of the world have tightened their wallets and eliminated discretionary spending because of lost jobs, lower wages and uncertainty about how long the COVID-19 pandemic will last.

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Topics: Supply Chain Management, Third Party Logistics, Freight Bill Auditing, Transportation News, Logistics Business, Freight Bill Audit, Logistics News, Industry Trends

Corona Virus Accelerating Drone Applications

Posted by Land Link Traffic Systems on Apr 30, 2020 10:24:37 AM

If necessity is the mother of invention a worldwide pandemic is the mother of cutting through government red tape.  Vaccine approvals are basically getting rubber stamped and that’s a good thing.  Automated vehicles are ramping up in anticipation of increased demand in this new environment as well.  UPS will use drones to fill prescriptions for residents of The Villages in Florida, one of the country’s biggest retirement communities, amid a lock down to halt the corona virus.  The time-sensitive 

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Topics: Supply Chain Management, Third Party Logistics, Transportation News, Shipping News, Logistics News, Technology

Additive Manufacturing (3-D Printing) is Gaining Traction

Posted by Land Link on Apr 23, 2020 9:47:02 AM

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Topics: Supply Chain Management, Transportation News, 3D Printing, Logistics News

Leveraging Your Transportation Provider Relationship To Gain Market Share

Posted by Land Link on Feb 26, 2020 9:00:41 AM


It’s no secret, in any business relationship, that the easier the relationship between customer and provider the more smoothly things run. In a shipper/provider relationship this is particularly important. The intricacies of logistics can be very challenging given the nature of all the moving parts; desirability of lanes, pickup and delivery restrictions, equipment availability and all the issues that can happen on the way to a 1000 mile delivery.  We have discussed the importance of becoming a preferred shipper in previous blogs. The impact of carrier relations on your supply chain is more important now than ever. Several factors are putting pressure on carrier/shipper relationships and performance. Fluctuating fuel costs, capacity issues, driver shortages, and carriers that abruptly go out of business can all take a toll on a shipper’s ability to get the right products to the right customer within the right time frame. Take the time to make some manageable changes to your supply chain protocols to improve operations, moral and overall supply chain efficiency.

Some Easy Fixes

There needs to be a culture shift in vendor relations, particularly when it comes to carriers. Historically, truckers have been treated as second-class citizens when it comes to, for example, driver accommodation and respect for one’s time. A reasonably comfortable waiting area for the driver is an inexpensive and easily implemented enhancement to the driver experience. Minimizing loading time is also an easy, low cost, improvement to loading and unloading dock protocol. 

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Topics: Supply Chain Management, Logistics Business, Shipping News, Logistics News, Industry Trends

Fixing Our Country's Crumbling Infrastructure

Posted by Land Link on Jan 23, 2020 11:59:15 AM

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Topics: Supply Chain Management, Transportation News, Shipping News, Logistics News, Industry Trends

Major Trucking Company's Bankruptcy May Be the Tip of the Iceberg

Posted by Land Link on Dec 11, 2019 11:37:00 AM


Celadon Transport, a division of the Celadon group filed for bankruptcy protection this week just days after two former officials were charged in an accounting fraud scheme. The Chapter 11 bankruptcy filing by the Indianapolis based Celadon Group left more than 3,000 drivers jobless and, in many cases, stranded drivers across the U.S. after their company gas cards were cancelled.  Another 500 administrative jobs are expected to be eliminated through the bankruptcy.

Celadon's former president and chief operating officer, William Meek, 39, and its former chief financial officer, Bobby Lee Peavler, 40, were indicted on conspiracy and other charges. They knew the value of a substantial portion of Celadon's trucks had declined and that many trucks had serious mechanical issues that made them unattractive to drivers, according to the indictment.

Earlier this year, Celadon agreed to pay $42.2 million to settle securities fraud allegations stemming from falsely reporting profits and assets. The company's stock was trading at less than 3 cents a share on Monday, down from a 52-week high of $2.83 last April 11. Celadon said it was the largest provider of international truckload services in North America, and its bankruptcy filing means 3,300 trucks and 10,000 trailers will stop rolling.

Among the big companies that failed in 2019 are New England Motor Freight, which employed more than 1,400 drivers. HVH Transportation, Falcon Transport and LME have all shuttered operations this year, too. Part of the problem, according to Donald Broughton, principal and managing partner of data firm Broughton Capital, is that spot pricing has dropped, which is hurtful to smaller companies that operate in the spot market instead of the contract market. Spot prices refer to shipping prices as they currently exist.

Trade tariffs, as well as slowdowns in a variety of markets, including housing and auto, contributed to the drop, Broughton had told FOX Business. He predicted companies would continue to fail into 2020 because of the weak pricing environment.

Additional pain for the industry could be coming next year in the form of labor laws designed to protect contracted workers from being misclassified. In California, for example, starting in January a law will go into effect that will make it harder for companies to classify workers as contractors, which the California Trucking Association has said could put 70,000 owner-operators in the state out of work. The group has sued to prevent the law from taking effect.

New Jersey is considering similar presumption-of-employment status legislation, which has caused alarm among the state’s trucking industry, as well.

What Shipper Can Do To Protect Shipments

The thousands of trucks stranded Celadon trucks likely have customers shipments onboard which will not be delivered anytime soon.  Getting that freight delivered will likely cost significantly more than the original rate.  The most damaging aspect of getting caught in a bankruptcy like this one is that thousands of customers supply chain has been significantly disrupted.

The best way to protect yourself against insolvent and even under achieving carriers is to vette them annually.  Review financial statements, credit ratings, customer experiences on social media and verifiable on time percentages.  Another option is to employ a 3rd party Logistics Firm to help with routing decisions.  At Land Link Traffic Systems carrier vetting is a standard procedure.  We take every precaution to route our customers freight with a financially healthy carrier with above average performance.

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Topics: Supply Chain Management, Third Party Logistics, Transportation News, Logistics Business, Shipping News, Logistics News, Industry Trends

Parcel Deliveries Clogging Up City Streets

Posted by Land Link on Oct 30, 2019 1:37:40 PM

The boom in online stores is increasing the demand for parcel delivery services, particularly in the big cities. New York, Chicago and Los Angeles are experiencing serious traffic issues due to the amount of parcel delivery vans clogging the city streets. Add to this the number of ride share drivers in any metropolitan area daily and it is easy to see how things are getting congested.

Consumers today are spending less time in local stores and more time online, buying not only retail items but also groceries from Peapod, office supplies from Postmates and whatever they need from Amazon. According to the National Capital Region Transportation Planning Board, it’s estimated that, on average, every person in the U.S. generates demand for roughly 60 tons of freight each year. In 2010, the United States Post Service overtook both FedEx and UPS as the largest parcel-delivery service in the country and delivered 3.1 billion packages nationwide. Last year, the USPS delivered more than 5.1 billion packages. The growth in e-commerce is fueling a rise in the number of delivery vehicles box trucks, smaller vans and cars alike on city streets.

While truck traffic currently represents about 7% of urban traffic in American cities, it bears a disproportionate congestion cost of $28 billion, or about 17 percent of the total U.S. congestion costs in wasted hours and gas. Cities, struggling to keep up with the deluge of delivery drivers, are seeing their curb space and streets overtaken by delivery vehicles, to say nothing of the bonus pollution and road wear produced thanks to a deluge of Amazon Prime orders.

The problem, really, is that we now live in a world where the brick-and-mortar stores are only one part of the retail equation and, as many a “retail apocalypse” story is warning, they are a shrinking part. Demand is being driven by people in their individual homes and apartments ordering smaller amounts of goods with higher frequency: groceries one day, several items from Amazon the next. As more goods are ordered, more delivery trucks are dispatched on narrow city streets. Often, the box trucks will double-park in a two-lane street if there’s no loading zone to pull into, snarling traffic behind them.

Many American cities are also playing catch-up as they try to understand these new urban delivery challenges and systems. That’s due in part to the failures of urban planning and the nature of the trucking business. While matters of public policy like public transit, bike lanes and walkability fall within the purview of planning boards and municipal departments of transportation, freight has always been a purely private-sector enterprise. Cities don’t have reliable data on the number of delivery trucks coursing through their streets; let alone planning for them.

Looking For Solutions

Cities can’t just ticket their way out of the delivery-truck problem. For big commercial delivery companies, parking fines are just part of the cost of doing business. UPS paid New York City $18.7 million in parking fines in 2006. In 2011 in Washington, D.C., UPS alone received just shy of 32,000 tickets.

If enhanced enforcement isn’t the answer, diverting delivery traffic might be. Seattle is taking an inventory of all the remaining alley space in the city. Instead of letting developers extend housing lots into the alleys, they might be used to accommodate some of the incoming delivery traffic.

Delivery companies are also experimenting with ways to reduce their impact. Late last year, UPS introduced its first “eBike” deliveries in Portland, Oregon. The goal is twofold: Reduce carbon emissions while putting a delivery vehicle on the road small enough to take advantage of curb space. UPS is also integrating across its U.S. routes its new big-data tool, On-Road Integrated Optimization Navigation (ORION). As a UPS driver travels their route, ORION works in the background considering up to 200,000 possible routes before picking the most optimal route for a driver to take to reduce the overall time spent driving around from delivery to delivery. The next generation is going to be a real-time tool taking traffic into account.

UPS currently uses drones to help drivers in rural delivery locations. It’s unclear how practical drone delivery can be in a metropolitan area considering the risk of personal injury, theft and inaccurate consignee deliveries. The solution to the congestion problem will likely come from many angles over the coming years. We simply were not prepared for the online purchasing boom and have never caught up.

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Topics: Supply Chain Management, Transportation News, Logistics Business, Shipping News, Logistics News, Industry Trends, Technology