Have you ever had issues with port congestion or total transit time and cost issues for international freight? Taylor Logistics has a specific team that specializes in services with the New Jersey/New York Ports.
The 2023 Inbound Logistics Planner is here, and you can read all about Taylor! From our outstanding team to what sets us apart and how Taylor technology improves customers’ supply chains. Here’s our entry:
As the longest-standing 3PL, we know that offering one supply chain service decreases overall efficiency and sustainability; that’s why we’ve altered our business to be a full-service omnichannel 3PL for our customers.
We provide SQF food-grade public warehousing, contract dedicated warehousing, B2B & B2C fulfillment services, freight brokerage, asset local Cincinnati fleet, dedicated fleet services, D2C e-commerce, packaging, drayage/ port management services, kitting, and subscription services.
We support large and mid-sized companies in the food, beverage, flavoring, ingredient, pet food, CPG, retail, PPE, packaging, and automotive spaces.
As a privately held family business with over 170 years of experience, we are an agile company that scales and grows with our customers. We are small enough to care and have excellent customer service with dedicated teams to some of our clients, yet large enough to have the technology and infrastructure needed to scale. Our goal is always to exceed customers’ expectations and build long-term relationships.
A part of our competitive advantage is that we continuously invest in technology to offer our customers the latest and greatest for complete customization, visibility, tracking, and reporting. Technology creates a stronger bond between our team and our customers, mainly due to improved communication, information sharing, and meaningful collaboration that produces better results. From finding the best shipping rates to inventory optimization and forecasting, our systems are paramount in customers’ cost-saving strategies.
While we partner with several industries, we pride ourselves on an extensive food-safety program that is rooted in principles verified by the Safe Quality Foods Institute (SQF). All of our public warehouses are food-grade, and we offer SQF to be established at our contractual locations as well.
We make supply chains stronger. This industry requires hard work and dedication; our team always makes the impossible possible for our customers. Through a collaborative and safe culture, we are always one team, one mission.
Regardless of the time, day, month, or year, we can provide a precise update on what is happening with your cargo. If there are any problems, we will notify you so that a solution may be implemented before matters escalate. In addition, the information provided is so accurate that you do not have to worry about complaints later for incorrect information or the correct information at the wrong time. If you’re not already partnering with a 3PL with container tracking capabilities, let’s walk you through how your business can benefit.
Container tracking is a series of technological functions that allows shippers, carriers, and freight forwarders to access the latest status updates on cargo. The technology is effective regardless of location, time zone, route, port, personnel, and cargo type. Despite these benefits, experts are still trying to understand why the technology is not widely used in the sector.
Container tracking provides operations teams with accurate freight arrival and departure times, improving personnel productivity and exception management by reducing manual detective work by 20-50%.
The ocean carriers have been slower to introduce this new technology because hours and minutes matter in trucking, whereas ocean shipping thinks more in terms of days. Identifying and responding to potential disruptions can significantly reduce demurrage fees and accessorial charges. This innovation and profit-boosting system for container tracking requires on-demand access to accurate and reliable accountability streams.
By partnering with Taylor, you gain access to our container tracking capabilities; we constantly evolve our technology to be best in class. That’s why we partner with project44 to provide our customers with the best data. project44 delivers, covering more than 96% of the world’s container volumes, with the highest data quality and most accurate ETAs available. Have questions? Please fill out the form below, and a member of our team will reach out ASAP.
Each year, Robert Handfield, Ph.D. of North Carolina State University, predicts what’s in store for global commerce and supply chains for the next 365 days. While these predictions are perhaps not completely original, his takeaways and supporting evidence are worth considering. Please see the full article from NCSU here.
Inflation will persist. Jason Miller from Michigan State is an expert at navigating the many different publicly available government database, and interpreting the tea leaves. He writes a weekly blog on Linked In which I follow religiously. He is the most accurate forecaster I know, because unlike many speculators and economists, his observations are based on actual data! He believes that inflation isn’t going to go down going into 2023 – but will persist. He writes that“While it is good news that we are starting to see the inflation of goods slow down, I would caution anyone who expects goods to go through a deflationary cycle that the data (to me) isn’t pointing in this direction to a meaningful degree. Data below from three series from the BLS PPI program obtained from FRED (with call codes after the labels), all set such that 100 = January 2019. Implication: the best-case scenario I see for the price of finished goods is that their prices stay relatively unchanged from the 3rd quarter of 2022….we are going to see meaningful deflation in finished goods prices as we move into 2023, which will in turn impact PCE price index that the Fed monitors for consumer inflation.” Unfortunately, this also means that the Fed will likely keep interest rates high through much of 2023 – and will likely increase rates again in February and June. Inflation is indeed going down slowly– but not as fast as the markets would like.
Inventory will remain bloated for the first half of 2023, – and supplier relationships will be tested. Here again, my prior blog notes how much inventory we have in supply chains today – and how certain parties are pushing back their excessive demand forecasts, and punishing their suppliers. For instance, a large apparel brand requested about 20 of their largest textile mills (many in Pakistan, Singapore, China, and other regions) to travel all the way to San Francisco for a “Vendor Summit”. They then sequestered each individual in a room, and two individuals came in and told them that they needed to reduce their prices by 20%. Walmart is moving their vendors from FOB (Free on Board) to domestic buying, and the shift is happening fast. Walmart will pay more for domestic sources, but will not be burdened with the inventory and purchasing FOB. They are also canceling orders, decreasing quantities, and deducting off invoices, which they claim as “chargebacks” for “late deliveries”, from shipments which were received as late as last year. These kinds of behaviors by buyers will come back to bite them in the future…
Despite having more inventory – we won’t stop having shortages. Unfortunately, a lot of the bloated inventory is stuff that consumers don’t want – or can’t afford. But that doesn’t mean we will stop having shortages of critical materials. One reason for this is that the COVID crisis in China is escalating to incredible levels, and that is shutting down a lot of manufacturing hubs. In particular, a lot of maintenance parts for equipment, replacement parts for appliances, automobiles, and larger (>48 nm) chips are still produced in Asia – and we will continue to see shortages of these component parts. That means that repair may take longer than you think. Labor and material shortages for factories are going down – but still are at a much higher rate than they were in 2019.
Mexico will become a destination hub for many companies in the US – but within reason. As I noted in a prior blog, and as discussed in the New York Times today – Mexico is a great option – but the capacity isn’t there yet. More importantly, the supply chain isn’t there yet! I spoke to a CPO who mentioned that his CEO was a big proponent of bringing all supply to Mexico – but despite this fact, we are still largely dependent on China for raw materials! As pointed out in the NY Times – even apparel manufacturing in Mexico is largely dependent on fabric produced entirely in China! As such, it is unlikely we are going to lose our dependence on Chinese products. Price is still the determining factor here. Chinese manufacturing is of such scale, that moving it to the US or Mexico is unlikely.
The US Government will play more of a role in promoting domestic supply chains. Not only did the US government, pass the CHIPS Act – but they are actively promoting the domestic production of semiconductors. As noted in one of my blogs, however, producing a fab plant is a good step – but the supply chain for chips is still largely in Taiwan. There is massive flux in the chip industry – which seems to be on a different cycle than most demand cycles. What was once a one year backlog has shrunk and chips are now readily available – to the point where semiconductor companies are cutting back on capital investment! This will continue to be a real problem – and I believe we will see “capacity as a service” models begin to emerge in the chip sector – where buyers will reserve capacity based on actual forecasts, not guesses or bets on what they think they will need next year. This will stabilize production – and lead to improved availability and assurance of supply.
Healthcare supply chains will remain strained. Despite having a lot more PPE in warehouses, hospitals are still struggling with a lot of shortages. Jim Wilson, an expert in medical intelligence, advocates that hospital monitoring programs is a critical area of government investment. One area is generic drugs – such as amoxycillin. We wll have shortages of baby formula as well. For this reason, I believe the government should be creating incentives to increasingly healthcare supply chain. To address this issue, one recommendation I am advocating would be to create government industrial policies that are targeted at supporting a domestic “stop gap” manufacturing capability. Secondly, partnerships should be developed with distributors to enable visibility into their inventory systems, and ensure they enter contracts which set aside inventory for government allocation under different conditions of duress. This will require a set of common data standards and a common architecture to create a dashboard and control tower. In addition, a multi-agency materials inventory portfolio based on in-depth supply market analysis is needed. At a minimum, this should include specialists in the following categories: semiconductors, precious metals, electric vehicle batteries, medical supplies (PPE, gowns, gloves), medical devices, pharmaceuticals, plastics and resins, medical equipment, biologics, healthcare personnel, and respiratory products. This will require team of supply market analysts with special knowledge of these categories, that track the condition of critical supply markets for medical supplies, the supply risks within those markets, and acquisition strategies to manage the risks. Multi-tier supply chain mapping can provide clues as to critical points of risk that can “shut down” the US healthcare sector, based on multiple forms of risk assessment.
Growth in 2023 will be positive – but lean. As noted in a lecture by the Economist which I attended, the greatest risks looming ahead are concentrated in 2023. Next year will see some positive growth but only 1.7%, reflecting slowing growth in the US in China and recession in Europe. Global monetary tightening will take some time to kick in – likely in the second half of 2023. The US will likely see only 0.5% growth in 2023, the EU 0.4%, which in turn will impact other regions of the world. China will likely see a modest rebound after the 2022 slump, moving to only 5% growth. However, there are always risks that will move the needle, including the escalation of the Ukraine war, more COVID-19 variants, spikes in energy prices, and sovereign debt pile-ups.
Government regulation of Artificial Intelligence will increase. As I noted in a blog of a recent SAS INNOVATE conference, Henry Kissinger described AI as the new frontier of arms control during a forum at Washington National Cathedral on Nov. 16. If leading powers don’t find ways to limit AI’s reach, he said, “it is simply a mad race for some catastrophe.” The former secretary of state cautioned that AI systems could transform warfare just as they have chess or other games of strategy — because they are capable of making moves that no human would consider but that have devastatingly effective consequences. This is true not just in warfare, but also in supply chains. As we move towards a digital future where we increasingly will be ceding control to machines who call the shots, not humans, what are the risks of doing so? Increasingly, more and more data is being stuffed into the cloud, which certainly allows us access to more readily access reams of data which can be processed by algorithms for decision-making. We have to be able to trust these algorithms to make the right decisions. But driving towards AI standards to increase trustworthiness is easier said than done. The UK has also begun pursuing this goal, as has the EU, who are likely to explicitly define AI and how to use it. The government will begin to mandate a more comprehensive approach, which spans the entire organization. Three primary elements determine the fiduciary responsibility for trustworthy AI: Duty of Care, the Business Judgement rule, and Duty of Compliance Oversight. These pillars are required to understand the historical biases that so often find their way into AI algorithms, which have created historical injustices and inequities, meaning that the government is surely going to step in.
Electric vehicle parts will remain in short supply. In a recent blog, I noted how there is still a massive shortage of the so-called “green metals” required to meet the burgeoning demand for EV’s. Environmentalists and automotive companies have committed to converting all of their vehicles to electric power. GM has committed to 30 new electric vehicles by 2025. Ford is committing to an all-electric vehicle platform with zero emissions by 2035. But nobody is talking about the supply chain for these vehicles, and the capacity required to build them. Converting an entire supply base of automotive suppliers, who are all focused on building of combustion engine-powered vehicles, and moving them all to electric vehicles, will be a superhuman feat. What will happen to those manufacturers that can’t or won’t convert? They go out of business? And is there enough capacity to produce the new types of vehicles? And what raw materials are required to convert to EV in the future? I don’t think executives have really given any meaningful thought to the answers to these questions yet… I predict a rough road ahead for EV’s. Perhaps I’m a voice in the wilderness – except maybe for Toyota – they have the same doubts as I do.
Demand for supply chain graduates will go through the roof in the next two years. To summarize – global supply chains remain fragile – and we are in a period where things are starting to change. Supply chains will look very different in two or three years from what they are today.
Cincinnati, OH — December 29, 2022 — Third-party logistics company Taylor Logistics Inc. held its third annual Carrier of the Year Awards program, recognizing its most outstanding North American carrier. This unique awards program recognizes carriers that go above and beyond by displaying the highest level of service and operational excellence and establishing quality relationships with Taylor. We proudly announce that NGL Transportation is this year’s Carrier of the Year.
“One of NGL’s core differentiators is customer obsession – a practice that can be simple in concept but challenging in execution; we have a dedicated CSR and support from both the drayage and warehousing to ensure customer success,” said Nicholas Ratliff, Logistics Coordinator Taylor Logistics Inc. “We especially want to celebrate those who keep our country moving in these uncertain times and go above and beyond what’s asked of them. Our 2022 Carrier of the Year is the best example of reliable, high-quality carriers that make up our network.”
The carrier presented with this award was chosen from the company’s unmatched network of 80,000 carriers and was determined based on an evaluation of each company’s carrier scorecard performance – a rating system that evaluates carrier performance in quality, extraordinary partnership, operational excellence, on-time performance, and customer service – and input from Taylor senior leadership.
It can often be tricky to forecast what will sell. The majority of companies have peak seasons, so they may feel the pain of having too much inventory on hand. With a full plant or warehouse, productivity suffers from working in a crowded space, not to mention it can create an unsafe environment.
Partnering with Taylor to help with overflow can significantly reduce costs and help improve business performance. Taylor has a long history of supporting national and regional companies that run out of room in their distribution centers, plants, and warehouses. They develop a custom solution for overflow inventory. For example, one can etch out slower-moving products to Taylor Logistics’ facilities to free up space for high-priority goods.
Taylor is prepared to offer simple pricing solutions for handling and storage when one needs extra space. They know time is of the essence, so they pride themselves on fast implementation to free up space for clients as soon as possible. With their cloud-based customer portal, clients can access all inventory and track activities in real-time.
Managing warehouse overflow can be as simple as finding the right partner. At Taylor, they pride themselves on their customized solutions and scalability, making them an ideal partner for companies looking to store inventory in the Midwest. After the recent launch of their new warehouse, Taylor now has over 450K square feet of FDA food-grade storage space in the Greater Cincinnati area. So whether it is a quick solution to an inventory surge or a long-term business partnership, Taylor can create a customized solution to meet all business needs.
Transloading services are an essential part of the supply chain, primarily when shipping with intermodal drayage. When cargo is moved from rail to a truck (or the other way around), the transloading area is where an experienced team uses forklifts, cranes, and other equipment to ensure a seamless transfer of freight. Often, shippers want to combine the economic advantages of rail shipping with the flexibility of over-the-road trucking, using affordable rail shipping for the long haul and trucks for final delivery. Here’s our drayage team tips on how to save:
Standard Rail Commodities: Lumber, metals, paper, rebar bundles, palletized products
Liquids: Ethanol, biodiesel
Oversized: Transformers, wind blades, and machinery
Bulk: Sand, plastic pellets, food product
Service Sensitive/Critical: Auto parts, parcel, frozen food, and perishables
Everything: Bricks, floor tile, coil, solar panels and nearly everything else
Don’t waste container space! Abiding by container rules and regulations, strive to consolidate as much freight as possible into a larger container. For example, the contents of three 40 ft containers can fit into two 53 footers. Thus, reducing your overall costs significantly..
If your container is hauling more cartons than the allocated number, you could incur extra fees. Stay up to date on regulations to avoid paying more.
To save space, putting your product on pallets always helps. When freight arrives at the transloading area, palletize cargo to make distribution handling more efficient.
Taylor has a full drayage team of transportation professionals that know what to look for to help you cut costs and streamline your supply chain with transloading. Get a rate now!
It’s always a good time to #ThankATrucker, especially during National Trucking Week. This week we celebrate and recognize the important contributions made by drivers who keep the country’s freight moving.
National Truck Driver Appreciation Week is an important time for America to pay respect and thank all the professional truck drivers for their hard work and commitment in undertaking one of our economy’s most demanding and important jobs. These 3.6 million professional men and women not only deliver our goods safely, securely, and on time, but they also keep our highways safe.
This year’s National Truck Driver Appreciation Week is September 11-17, 2022.
Contrary to recent news headlines, port volumes increase and are speculated to continue. We’ve all seen the clickbait titles stating “U.S. Import Demand is Dropping off a Cliff (June 7, 2022)” or even “U.S. Retail Cargo Seen Cooling in Second Half as Inflation, Rates Bite (August 8, 2022)”. But is there any truth to these reader-inducing headlines? Not really – While there is no doubt that economic growth in the U.S. has slowed substantially from the breakneck pace experienced last year, a closer look at the subcomponents for GDP suggests that domestic and international transportation providers can expect demand to hold strong through the remainder of 2022. Here’s what our team found after scouring the web to find factual metrics from reliable sources:
Despite the dollar being incredibly strong relative to other currencies, US exports increased 3.7 percent between the first and second quarters of 2022. On a non-seasonally adjusted basis, this increase was larger, at 5.1 percent. This suggests demand for American products despite the higher costs other nations are paying for them. Supporting article.
Descartes Systems Group (Nasdaq: DSGX) (TSX:DSG), the global leader in uniting logistics-intensive businesses in commerce, released its July 2022 report on the ongoing global shipping crisis and analysis for logistics and supply chain professionals. The report shows another record month of U.S. ocean container import volume in June 2022 versus June 2021. While volumes are lower than May 2022’s record, they remain above the level that has caused port congestion and delays for the last 15 months. Supporting article.
Taken together, the more granular data that underlies the GDP statistic suggests demand for transportation services, both domestic and international, is unlikely to cool substantially as we move through the second half of 2022. Rather than falling off a cliff as some have foretold, it appears we are moving toward a phase where freight markets are normalizing after two years where nothing has been normal.
In today’s market, it’s essential to ensure a successful supply chain. You can achieve this by partnering with a port solutions provider that offers reliable service, timely pick-ups, and supply chain visibility. In addition to this, #TeamTaylor provides free ocean container tracking. Partner with Taylor today.
Providing solutions to managing port chaos is our thing here’s how we do it:
With Real-Time Visibility
We offer real-time GPS tracking, automated status updates, and notifications for every container. Leveraging the power of the project44 cloud-based platform allows Taylor to provide customers complete visibility throughout the supply chain.
Flexible Capacity
Whether you are shipping a couple of containers or hundreds, Taylor has a vast network of vetted carriers ready to handle your freight seamlessly from port to store or anywhere in between.
Fast Implementation
When it comes to port services, speed is of the essence. That’s why our teams are quick to deploy solutions for your needs. So if you’re looking for speed and high service levels, look no further- partner with Taylor.
Our easy-to-use cloud-based customer portal gives you access to real-time insights on your freight while in transit and allows you to review scheduled loads.
CINCINNATI, Ohio. – MAY, 24th 2022—Taylor Logistics, a third-party logistics solutions provider, announced that it has partnered with project44 the world’s leading Advanced Visibility Platform™ for shippers and logistics service providers.
Leveraging the power of the project44 cloud-based platform allows Taylor to increase operational efficiencies, reduce costs, improve shipping performance, and deliver an exceptional customer experience. Connected to thousands of carriers worldwide and having comprehensive coverage for all ELD and telematics devices, project44 supports all transportation modes and shipping types.
“We are excited about our partnership with project44. This allows our customers complete visibility throughout the supply chain that we were missing on the front end,” said Vince Bonhaus, Vice President of Logistics, Taylor Logistics Inc. “project44 was the obvious choice for our growing business.”
project44 is a Leader among Real-Time Transportation Visibility Providers, according to the Gartner Magic Quadrant. To learn more, visit www.project44.com.
Well, Q1 2022 had no shortage of curveballs, from record-high gas and oil prices to the war in Ukraine and supply chain blockades lasting days on end, on top of record-high inflation. With the unpredictability of Q1, our team is taking a look at the trends and events as we dive into the start of Q2.
Omnicron 2.0: Surprise, a new Covid variant, is making its course throughout the globe. This new BA.2 subvariant of Omicron could account for a surge in cases impacting consumer behavior. According to data published by the Centers for Disease Control and Prevention last week (04/04) BA.2 spreads 80% faster than the earlier Omicron, has more than doubled in the U.S. over two weeks and will become the dominant variant.
Inflation, Inflation, Inflation: Consumer demand remained strong throughout the quarter. But March has been unusually soft in the truckload freight market. Consumers just aren’t spending like they were in 2021. New research reveals that supply chain issues are exacerbating inflation. A recent study found that during 2022 trade is expected to expand further, due to a 16% increase in exports during 2021 and imports by 12%. Production levels have been unable to keep pace with demand leading to supply shortages and will limit import growth in 2022.
Ocean Freight: Container shipping costs are higher than ever and will stay high for the foreseeable future as importers continue to battle for space in the face of record demand for consumer goods from Asia. Covid resurgence in China disrupted productivity and the supply chain in March. Next potential disruption on-deck: West Coast Longshore Union contract expiration and negotiation.
Drivers: making headlines and making late-night television. Last Week Tonight with John Oliver had an entire 24-minute segment on, you guessed it, drivers (aired just last week). Now a 24-minute spot in any programming late night or news is pretty significant, and the transportation and trucking crisis in America is of the utmost importance. 70% of the US cargo is transported by truck; nearly everything you purchase comes to you by truck. That box of Mac & Cheese that’s been sitting in the pantry for a hot second – truck. Headphones – truck. Your dogs squeaky toy that has seen better days – truck. You get the point. 3.5 million truckers supply our goods in this country. But the entire industry is facing a crisis; there’s a lack of drivers, a pretty massive lack of drivers, and it’s only increasing year over year. Not just long-haul drivers but final-mile delivery drivers. Leading to an overall shortage on shelves, congestion, the domino effect.
Domestic Shipping: Consumer goods demand remains high, filling truck capacities on tight routes due to driver and equipment scarcities. Diesel fuel spiked when Russia invaded Ukraine. As a result, unprecedented ground freight cost is the norm across North America.
Peak produce season is approaching; our team is breaking down the 2022 season, rate increases, transport practices, and capacity challenges. Even if you do not ship or grow produce, this season can directly impact your transportation performance and spending.
What is produce season?
Produce season in the United States generally begins in February and continues through July. It’s the period in which the most significant volume of fruits and vegetables are harvested and shipped to food manufacturers, grocery stores, and other vendors across the country. In February, growing and harvesting kick off in Mexico, and we start to see an influx of produce imports into the U.S. Then, in late March, the produce wave moves to the southeastern states, southern Texas and the Rio Grande Valley, and southern California and continues to move north as temperatures rise.
The impact of produce season
Simply put, produce season it’s the rise in crop volumes and the elevated demand for trucks to transport these crops that impact capacity during this season. These factors lead to an upsurge in rates not only for shippers who utilize refrigerated trucks in harvesting areas but also for most shippers across other modes and regions.
How can you prepare for produce season?
It’s important for shippers to closely watch how all these current issues may magnify the typical challenges of the season. Here’s what you can do to avoid the potential problems during this season:
Partner with a team of logistics experts to help keep you informed of changes in the freight market during produce season
Ship your freight as early as possible and add flexibility into your delivery date
Factor in the longer lead time it may take to source trucks
Consider multimodal shipping solutions to explore alternate transport options
Work with a partner that keeps you informed about the effects of the produce season and educates you on how to adjust your network in response to agricultural fluctuations.
Taylor has a vast network of qualified carriers across the country. In addition, we’ve built a rapport with trucks that produce routes regularly and can help you deftly navigate capacity jumps.
Cross docking is the transfer of inbound goods to an outbound carrier through the use of a cross docking facility – that is, a temporary storage terminal that cuts out or reduces the need for inventory storage. All incoming goods are sorted and loaded onto outbound trucks as quickly as possible – often immediately.
The cross docking market is growing yet again! Globally it’s expected to reach US$342 billion by 2030 at a CAGR of around 6%. This growth is fueled by increasing consumer expectations for delivery times, putting pressure on the supply chain through the ‘need for speed’.
Reduced costs, particularly any costs associated with long-term inventory storage and associated facilities, labor and utilities
Improved stock turnover, as the goal of cross docking is to get goods in and out as efficiently as possible
Minimized risk, given there’s reduced handling of goods and no long-term storage that could increase the chance of spoilage
Halloween is this weekend; pumpkin-spiced everything has been taking up menu real estate at your local coffee shop for some time, and turkey is right around the corner. So not only is it the start of the holiday season, but it’s also the start of peak shipping season. Our experts give pointers on how to succeed during this busy season and how 2021 is already shaping up differently from years past.
There are four seasons of freight shipping and the peak season of shipping starts at the end of the summer. This time is considered a peak shipping season because there is a combination of demand from different markets. Businesses start stocking up for the upcoming holiday season, there is back-to-school shopping time, and retailers try to sell out their inventories from the summer season. During this peak time, freight rates are at the highest, and the capacity is tight.
What are the four seasons of freight shipping?
Knowing the market
The key to navigating peak shipping season is to understand the truckload demand and market specifics across various industries. In 2020, demand was low, and freight rates were higher than usual. In 2021 however, shippers are less cost-sensitive, and freight volumes are extremely hot. If you plan to work with high-quality carriers, start navigating the market during spring and early summer. Create a proper shipping strategy to help you define the market trends and successfully ship goods.
Utilize Technology
During the peak shipping season, you need every advantage you can get! Here’s an example, you can efficiently utilize a transportation management system (TMS) to optimize route planning and ensure efficient deliveries. You can also use other supply chain technology to automate warehousing processes and inventory control, providing up-to-the-minute data on your entire operation.
Work with reliable a 3PL
Reliable 3PL here, and we will make sure you have fast and reliable shipping services. Our team knows that freight, more often than not, is time-sensitive, and capacity can be tight. So we work with a wide variety of professional, high-quality carriers to ensure your products are delivered timely and with ease.
This update is a report that analyzes data from multiple sources, including but not limited to FreightWaves SONAR, DAT, American Shipper, Morgan Stanley Research, FTR Transportation Intelligence, Journal of Commerce, and National Retail Federation(NRF).
The broken record phrase of “freight volumes continue to rise” is still in play. The current Outbound Tender Volume Index is roughly 3% higher year-over-year (YOY). We get that 3% might sound and look like a minimal increase but keep in mind volumes were accelerating quickly over the last several months of 2020. So while the comps are more challenging as we get into the more difficult months of 2021, the volumes are still dominating what they were a year ago. Our team is digesting the 2021 peak season and the factors that are currently influencing the market.
Many anticipated a slowdown in import activity, as ports are overburdened with operations and equipment trying to keep up with the constant influx of ships waiting to unload their cargo. But that is hardly the case. While the numbers fluctuate from day to day, there were 70 container ships in the queue on Monday in late September 2021, with a total capacity of 432,909 twenty-foot equivalent units. To put the vastness of that number in perspective, that’s more than the inbound container volume the Port of Long Beach handled in the entire month of August. It’s roughly what Charleston handles inbound in four months and what Savannah handles in two. So why the boom? Well, consumers are spending. eCommerce, a rise in CPG, the upcoming holiday season are driving demand for imported goods, requiring ships for transportation.
What happens when the cargo finally reaches the port? First, available trucks will flock to these locations due to the increased pay possibilities that this freight represents. Second, shippers and retailers waiting for their long-dormant freight will pay above-market rates to get their goods rushed directly to their destinations.
Consumer goods have encountered extensive growth since the start of the pandemic, and there are no signs of this trend slowing down. Employment numbers, a reliable predictor of spending, are the strongest since March of last year. While consumer spending did not need employment numbers to remain elevated for the past year, a more stable job market bodes well for the economic outlook and trends to continue. In August, consumer spending bounced back from a mid-summer lull. During the past month, it jumped .8% after a decline of .1% in July. Moreover, income rose by .2% as consumer prices increased by .4%.
Our team is here for you. No matter the situation, we’ve got your back.
We are here as your partner — we are an extension of your team with a clear understanding of our responsibility to replicate the strategic business goals of your organization. No matter the size of your business, we help our customers achieve the best possible freight outcomes and decrease overall costs.
On Dec. 6 and 7, the beverage industry will gather in person in Santa Monica, CA, to learn and take action at BevNet Live! Experts will speak to the community about innovations and challenges within the industry.
Team Taylor will be there, and we want to talk with you! We are here for you if you have any questions or want to chat on areas of interest in fulfillment, food-grade certifications, packaging, eCommerce, operations, supply chain management, and transportation.
If you’ve seen higher than expected freight rates, we hear you, we see you. There’s a couple of potential factors for these increases. Since Q2 of 2020, the freight markets have shown robust growth, which has raised rates dramatically. While this is good news for carriers and manufacturers, it has caused CPG shippers to pay the price in rising freight rates. In this week’s blog, our team analyzes the various factors that are driving up freight rates and why they are happening.
Factor 1 | Port Congestion
With pandemic-related consumer shopping habits, many West Coast ports operated at maximum capacity during the summer. In 2021, the uptick in imports has compounded the situation and caused even more congestion. March retail sales increased by 9.8% sequentially and 14.3% year-over-year. A 27.7% jump led to an increase in sales of food services. With more imports on board, shippers should brace for capacity constraints. As the produce season gets underway, rates will also rise.
Factor 2 | Produce Season
The start of the produce season typically occurs in February in the southern US. By spring/summertime, it has reached the majority of the US. During this time, capacity is tightened as refrigerated carriers dedicate a lot of their space to hauling produce. Other products that can ship via dry van or on refrigerated trucks will move to van transport, thus increasing freight rates across the board.
Factor 3 | Reliance on Split Shipments
eCommerce brands have been comprehensively using split shipments for years. Firstly goods need to be picked from inventories across different locations. With not enough room on a single truck or plane for an entire shipment, it may have to be divided into individual boxes and delivered individually. Split shipments happen to occur even more often during cross-country or international shipment of goods. The more the shipments, the costlier the shipping costs; therefore, the trend ends up being a pricey affair and often harmful to the shipping ecosystem.
Advance Planning
One of the most effective ways to combat these high freight rates is planning shipments far in advance. Cargo cost is increasing every day. To avoid paying surged charges and avail early bird facilities, companies have to plan their shipments well in advance strategically. Working with a team of transportation experts (Like Taylor) that uses digital platforms to leverage data on the freight costs to predict rates and trends affecting the rates will help to plan and lower costs.
Work With A Team Of Experts
Work with a dedicated logistics team to ensure conditions do not endanger profitability. Teaming up with a partner like Taylor can help your organization correctly forecast costs and find more favorable pricing through consolidation or mode optimization services.
Transloading services are an essential part of the supply chain, primarily when shipping with intermodal drayage. When cargo is moved from rail to a truck (or the other way around), the transloading area is where an experienced team uses forklifts, cranes, and other equipment to ensure a seamless transfer of freight. Often, shippers want to combine the economic advantages of rail shipping with the flexibility of over-the-road trucking, using affordable rail shipping for the long haul and trucks for final delivery. Here’s our drayage team tips on how to save:
Standard Rail Commodities: Lumber, metals, paper, rebar bundles, palletized products
Liquids: Ethanol, biodiesel
Oversized: Transformers, wind blades, and machinery
Bulk: Sand, plastic pellets, food product
Service Sensitive/Critical: Auto parts, parcel, frozen food, and perishables
Everything: Bricks, floor tile, coil, solar panels and nearly everything else
Don’t waste container space! Abiding by container rules and regulations, strive to consolidate as much freight as possible into a larger container. For example, the contents of three 40 ft containers can fit into two 53 footers. Thus, reducing your overall costs significantly..
If your container is hauling more cartons than the allocated number, you could incur extra fees. Stay up to date on regulations to avoid paying more.
To save space, putting your product on pallets always helps. When freight arrives at the transloading area, palletize cargo to make distribution handling more efficient.
Taylor has a full drayage team of transportation professionals that know what to look for to help you cut costs and streamline your supply chain with transloading.
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