The higher shipping costs have been sparked by a combination of factors, including soaring demand amid stimulus money, saturated ports, and too few ships, dockworkers and truckers. The problems are too broad to be remedied by any short-term fix and are creating ripple effects across U.S. and International supply chains.

There are several factors contributing to the U.S. labor shortage. It has to be considered that generous unemployment compensation, both state and federal, has had a significant affect upon labor availability. It is understandable to invoke a government funded financial support program during a pandemic. But there is debate over the federal extended unemployment benefits.

The Corona pandemic has had a profound impact on worldwide commerce and adjusting to the new normal will be critical in your company’s market placement planning. The complexly of the intertwined nature of a global supply chain is sensitive to disruptions in any part of the network. Trauma in one area has a trickle-out affect through the entire network.

The global impact of Covid-19 continues to impact the Logistics industry. Increasing demand and a looming labor shortage is forcing freight rates up and capacity down. Persistent labor shortage, particularly for warehousing and distribution, is slowing supply chain and logistics activities. Regardless of specific mode, the warehousing and distribution environment appears to be a common issue for many freight operators right now. 

President Biden introduced a $2 trillion plan on Wednesday to overhaul and upgrade the nation’s infrastructure, calling it a transformational effort that could create the “most resilient and innovative economy in the world”.

In today’s Logistics business time and performance are key to success. Now more than ever analytics, metrics and key performance indicators are critical components in planning and execution protocols. Today’s logistics market is more demanding than it’s ever been. Businesses across the supply chain are now expected to easily adjust to shipment patterns, predict customers’ buying behaviors, provide on-time deliveries through the most efficient routes possible, and reduce the risks of cargo inventory errors and miscalculations. Predictive analysis allows for advanced planning for future demand based upon historical data. This movement towards anticipatory logistics is already widely accepted among industry decision-makers: A study by the Council of Supply Chain Management Professionals revealed that 93% of shippers and 98% of third-party logistics firms feel like data-driven decision-making is crucial to supply chain activities, and 71% of them believe that big data improves quality and performance. 

As we struggle to combat Covid-19 and other mutant strains of the virus, through this year and beyond, logistics planners may want to keep their eye on some key factors affecting the supply chain. You may find some of these topics affecting your logistics planning in the coming years.

America’s roads, bridges and tunnels are crumbling at an alarming rate. Every 4 years the American Society of Civil Engineers (ASCE), an organization made up of over 150,000 civil engineers, gives the United States an “infrastructure report card". The organization gave the U.S. a grade of “D+ in its most recent evaluation. This grade is an improvement from the previous one. The effects of failing infrastructure and the need for the federal government to improve it are obvious, yet why isn’t the government doing anything? There is little disagreement in Washington that repairs are critically needed. The slow response is mostly a combination of trying to secure funding and the snail’s pace at which our federal government moves.

Today's consumers may be more demanding than ever. They know what they want, and moreover, they want it fast. Sometimes I wonder if they really need it that fast or is it simply the mindset of the new generation of consumer. In an extensive career in the expedited freight market I was surprised to find how many receivers were not in a hurry at all for the product that their suppliers spent triple the money to ship expedited. In fact, I rented a box truck and personally delivered a few skids to a major account after an unavoidable traffic accident sidelined the original truck. After a 5-hour white knuckle drive, I was told it would be a couple hours until they could unload me. Turned out, they were in no hurry at all. The takeaway from all this personal wisdom is to be certain of the consignees' requirements before panicking about production delays and transit times. When you’re sick you call a doctor, in a legal matter you consult a lawyer. The same expertise is just as beneficial when managing your supply chain. If you do not currently have a relationship with a 3PL, think about starting one. It's a tremendous resource, particularly in a time of need. If you do have a current 3PL relationship, here are some tips to make the best of that relationship.

Think Long-Term Commitment

Like in all relationships, when an organization and its 3PL both have committed to mutual success, challenges can be overcome and the relationship can blossom. Service failures are part of our business. When you consider the vast amount of freight that travels thousands of miles across this country every week one must expect it can’t all go right. The true measure of 3PL customer service is how we react to service failures. There are fire alarms daily. A short-term mindset only creates short-term solutions. Your 3PL is invested in the long-term success of your logistics operation, so you should be too. Work together to devise long-term strategies that will improve practices and result in mutual success.

KPI's; A Staple At Land Link Traffic Systems

Many years ago, the founder of Land-Link Traffic Systems Inc. stressed the following. “What does not get measured, does not get fixed”. It would be difficult, if not impossible, for any rational person to repudiate this thought-provoking statement and important underlying principle of business. Yet, many companies do just that. Most companies, in fact, do not have the proper measurements and KPIs in place necessary to drive intelligent business decisions and to serve as support to the policies that are relied upon to drive day to day business activities.

Do not be one of those companies. Land-Link can help you support your business and gain and maintain competitive advantage through effective performance measurements. 

There is significant concern over whether or not to get the Corona vaccine. Indeed, the virus is frightening but there is similar concern over the safety of the vaccine. Health care workers are expected to get a COVID-19 vaccine first. But the speed of vaccine development, and the politicization of the process, has left some doctors and nurses skeptical and reluctant. In fact, nearly 40% of healthcare workers say it's 'not likely' they will get a coronavirus vaccine because they are afraid the vaccine was developed too quickly to be safe.