We thought we might take a break from our usual industry topics to draw attention to a serious issue; driver safety, particularly, over the holiday weekend. Transportation analysts expect a record number of people in the U.S. to travel during the Independence Day weekend. The travel group AAA says almost 45 million Americans will take trips to destinations at least 50 miles from home during the holiday period. Unfortunately, reported road rage incidents are on the rise. The increase in holiday traffic can only add to driver frustration. Do what you must to keep your patience in check this holiday for the sake and safety of your family as well as other travelers. Be cognizant of the stopping distances required by a fully loaded semi-truck.  A fully loaded semi-truck has a gross vehicle weight, depending on its cargo, of up to 80,000 lbs. Compare this to the average loaded weight of a passenger vehicle of 4,000 lbs, and you can see the difference in energy produced by both vehicles.

The Trump administration on Friday escalated a trade war between the world’s two largest economies, moving ahead with tariffs on $50 billion of Chinese goods and provoking an immediate response from Beijing. Today Trump suggested possibly moving forward with additional tariffs which may exceed $200 million. The shipping community has been on edge about the impact the tariffs may have on the logistics market since the tariffs were proposed some 18 months ago. Before we examine the potential fallout lets outline precisely what industries will be affected.

There are several developing factors refining the world of freight transportation as we currently know it. Technology in the form of ELDs is forcing fleet managers to become more scientific in the management of their assets. The apparently insatiable appetite for immediate gratification from the millennials will force carriers to improve speed to market. This will likely put pressure on trucking companies to better integrate their small parcel and LTL operations so local distribution centers can concentrate on meeting on time final mile deliveries. Data engineering will be at the forefront of everything that goes on in supply chains. Data engineering, according to Dr. Michael Watson of Northwestern University, is "the art and science of blending data from multiple sources, automatically cleaning and filtering the data, and transforming the data to be useful for analysis."  You may have heard the term "Big Data" referring to the volumes of pertinent data accumulated from various sources along the supply chain. This big data will be the source of information in the data engineering process. Another term you've likely heard is IoT or The Internet of Things. The IoT is the network of physical devices, vehicles, home appliances and other items embedded with advanced electronics capable of exchanging data with a central computer over the internet.  

Expedited transportation is something to know about. When to request it. How much weight are your shipping. What is the protect time. These are all considerations when something goes wrong in either the manufacturing timeline, finished goods refinement or shipping scheduling.  It doesn't matter where in the supply chain the problem occurred. It matters how you make up the time to avoid the ultimate disaster...a plant or partial plant shut down. At this point you are talking big money.  I know if we shut down any portion of an automotive plant in the 80's it was $10,000 per hour for every hour the truck was late. Extrapolate that to today's standards and you can appreciate the severity of tardiness in our business.

The Commercial Vehicle Safety Alliance’s (CVSA) International Road check will take place June 5-7, 2018. Over that 72-hour period, commercial motor vehicle inspectors in jurisdictions throughout North America will conduct inspections of commercial motor vehicles and drivers. This year’s focus is on hours-of-service compliance. Here is a quick summary of the HOS rules:

Perhaps more than most other industries shippers and logistics companies seem to be late to the table when it comes to implementing technology. I know some carriers who operated without a website well in to the 90's. This tardiness to implement that technology which everyone else has adopted may eventually lead to their economic demise. The ability to provide big data driven information and the ability to protect that data have become a critical requirement. Some companies are finding themselves unqualified to bid on contracts if they cannot provide the data and technology required by customers.

According to industry experts the biggest weapon a company must have to outperform its competitors over the next 3 years is the Digital Supply Chain. The DSC will dramatically improve revenue and reduce costs while delighting customers. There is little disagreement among logistics professionals that this is the direction supply chain technology is moving. The sheer magnitude of data involved in logistics transactions simply requires digitization for the effective management of the information and efficient operations. So, if we're all in agreement regarding the direction of our industry now is the time for shippers and transportation providers to implement the necessary protocols and personnel to be adequately prepared for the transition to digital based logistics technology. Let's examine the theory behind the DSC and what needs to be done to make the transition.

The economy seems to be on a role and, of course, it's happy times at home. Let's look at what is driving this current surge and how logistics plays a key role. Every major economic indicator points to a robust economic outlook. The major indicators are construction, healthcare, energy, agriculture, manufacturing, and transportation. It's the last two sectors which we are most interested in.

The transportation and logistics industry are currently going through some major transformations. The current metamorphosis is creating opportunities as well as challenges. Successful shippers are looking for ways to adjust to the challenges and take advantage of the opportunities. The economy, labor, and I believe, most dramatic, is the technology component which will be the game changer. Astonishingly what seemed like an unrealistic idea ten years ago, today, is now plausible because of technology. From robotics to radio frequency identification technology to blockchain applications, the possibilities are intriguing to say the least. The challenge for supply chain professionals is how to stay current on these applications and how they can give your business the competitive edge that often makes the difference between black and red on the financial statements. Let's cover a few key areas in which every supply chain professional should have a firm understanding.

President Trump’s planned trade tariffs effect mainly imported steel and aluminum. Let's take a moment to explore the details of the tariffs and what consequences we can expect.