In a comprehensive presentation at the recent NASSTRAC (National Shippers Strategic Transportation Council) Shippers Conference and Transportation Expo in Orlando, Fla., Bob Costello, chief economist at the American Trucking Associations, provided an outlook specifically focused on the freight industry.

Workplace safety and confidentiality are increasingly paramount concerns in today's workplace. In response, we've gone from picture ID cards to magnetic lock card access systems to retinal scanners and now...human implanted RFID sensors. Where do we draw the line between security and personal privacy? It seems to be moving more to the right with every new application. The idea of implanted RFID chips is the first application to invade one’s personal skin. Arguments can be made on both sides of the issue. After researching the topic, I have come to the conclusion that the nature of this application does not increase security enough to justify the excessively invasive application. Let's dive into the facts and you can arrive at your own conclusions. 

The commercial freight transportation industry faces regulatory trends that have the potential to worsen the capacity crisis, increase transportation rates and harm carrier productivity at a time when carriers are operating at tight margins.  

A TMS System is Crucial 

In today's information based logistics environment, a Transportation Management System (TMS) is essential. A TMS can be used for more than just booking loads; it provides historical and real-time data for visibility into the supply chain, which is necessary before any profitable changes can be made. It is impossible to effectively manage inbound and outbound shipments if data is decentralized and fragmented. Information on several different computers must be co hosted in one system to have any real interpretive value.

The Panama Canal Authority announced its new locks are going to be opened in June 2016, nearly 2 years beyond the original target date. The massive, multibillion-dollar project had originally been scheduled to end in October 2014 but has been successively pushed back. It has suffered construction and labor problems, legal issues and the discovery of fissures in one of the widened locks.

In the ultra-competitive retail world, Target is looking to supplier costs to improve supply chain efficiencies similar to the demands Wal-Mart placed on suppliers last year. According to several sources, Target plans to reduce windows for deliveries to its warehouses, increase penalties for late deliveries, and potentially institute penalties of up to $10,000 for inaccuracies in product information.

On-demand delivery continues to set the standard expectations of today's consumer. To meet the demand startup, Dispatch has designed and is manufacturing motorized autonomous delivery vehicles for use on sidewalks and pedestrian spaces. Dispatch co-founder Uriah Baalke has said, “Our goal is to fulfill the demand for low cost local delivery and build a system that can scale and that can operate in all locales efficiently.”

If you’ve never used a third-party logistics provider (more commonly referred to as a 3PL), they help companies realize various benefits by managing logistics and supply chain management functions. Here are the top four strategic advantages of utilizing a 3PL:

Daimler Chrysler’s V.P. of Product Development, Wolfgang Bernhard, and Nevada Governor Brian Sandoval are introducing the world’s first officially recognized self-driving truck. The truck they're introducing to the American public is the Freightliner Inspiration, a “tech-ed-up version” of the Daimler Chrysler 18-wheeler sold around the world.  According to Daimler, the parent company of Mercedes-Benz, it will make long-haul road transportation safer, cheaper, and better for the planet. 

Orders for durable goods fell in February, capping a downward trend in the last four months, reflecting a broad-based slowdown that underscores lingering softness in U.S. capital investment. New orders for manufactured durable goods in February decreased $6.6 billion or 2.8 percent to $229.4 billion, the U.S. Census Bureau announced today. This decrease, down three of the last four months, followed a 4.2 percent January increase. Excluding transportation, new orders decreased 1.0 percent. Excluding defense, new orders decreased 1.9 percent. Transportation equipment, also down three of the last four months, led the decrease, $4.9 billion or 6.2 percent to $74.2 billion.

Economic Implications

Economists viewed the big decline in durable goods orders as evidence that manufacturing companies remain under pressure. Manufacturing experienced a challenging year. The outlook for 2016 remains uncertain among most economists. The industry is being hurt by economic weakness in major export markets and a strong dollar.

“A lot of it is a function of businesses not being very confident about the outlook,” said Stephen Stanley, chief economist at Amherst Pierpont Securities LLC in New York, who correctly projected the drop in durable goods orders. “That’s a combination of a few things -- businesses who export are potentially facing weaker demand, and another important element of it is the policy landscape is very uncertain right now.” The absolute circus, it seems at times, that is the 2016 Presidential election in the U.S. is adding to the economic uncertainty.