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The 5 Causes of Port Congestion & An Update on the Chassis Shortage

adam • Sep 13, 2022

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The 5 Causes of Port Congestion & Chassis Shortages

Anyone involved in shipping, transportation, or logistics knows about the nightmare at domestic and international ports, distribution centers, and warehouses. From ongoing concerns over port delays and bottlenecks to issues with drivers, containers, and chassis shortages, shippers have a lot to contend with today. And problems with supply chain logistics lead to even more issues down the line with meeting customer demands and maintaining high on-time, in-full performance rates.


According to
Statista research, 80% of the world’s cargo is transported by ocean. While this mode is costly, it would be much more expensive to move the volume and type of cargo in ocean freight any other way. And In many cases, modes such as truck or air are simply not logistically possible due to weight, size, content, and other regulatory requirements and factors.


Most prominent ports are down to a 5-day or less delay, with only a few of the busiest still seeing delays above five days, and even those are improving. According to
GoComet port congestion monitoring, most ports overseas register three days or less for delays. In the UK, Felixtowe averages nine days of delays; in the U.S., Savannah averages nearly two weeks, with New York (eight days) and Los Angeles (ten days) performing a bit better.


These port loading and unloading delays and container backlogs had primarily improved compared to months ago when ships were waiting outside ports for days or weeks and containers were piling up for months at the dock waiting to be transported to distribution centers and other facilities. However, dissolving backlogs and lowering delay and dwell time to pre-pandemic levels remains in flux. 


 Several factors, such as consumer demands, market and product schedules,
oversized and overweight limitations, and the U.S. and international holidays, can cause temporary increases in delays. Delays at ports often include backlogs with truck and rail distribution ad poor access to chassis and capacity as containers linger at the docks and port warehouses for long periods. This can contribute to additional delays even once ships are unloaded, as highlighted by early September delay stats from Hapag-Lloyd:



  • Charleston, SC – average 8.1 days
  • Chicago, IL - average 9.1 days
  • Dallas, TX – average 14.2 days
  • Detroit, MI – average 6.3 days
  • Houston, TX – average 7.6 days
  • Kansa City, MO – average 12.4 days
  • Long Beach, CA – average 18.7 days
  • Los Angeles, CA – average 10.9 days
  • Memphis, TN – average 11.6 days
  • MMR rail New York – average 6.3 days
  • New York, NY - average 7.8 days
  • Norfolk, VA – average 9.6 days
  • Savannah, GA – average 10.3 days


Shippers, especially those dealing with
cold expedited freight and other sensitive loads, must be ready to account for these factors and adjust accordingly. Care and attention are needed to reduce the impact of port congestion and overcome the effects of container chassis shortages, driver shortages, and other ocean freight-related issues and concerns.


Port congestion and Recovery Then and Now


The American Farm Bureau Federation reported on August 8, 2022, how the last few years have seen the US economy struggling to overcome a steady stream of severe and disruptive supply chain disruptions. “This variation has challenged production and inventories in every facet of the economy. [This was most] easily observed at the ports, where the dramatic changes in consumer behavior were observed in seemingly mile-high stacks of containers and vessels waiting to be unloaded. Observers hoped that port congestion previously had peaked at the beginning of 2022 and appeared to finally be easing in May and early June.” 


While overall things have improved, there has been an uptick in delays in key shipping lanes and ports, which has some worried that a relapse of long delays may lie ahead for the end of the year peak season crunch. A June 2022
Reuters report noted that rising shipping costs, longer transit times, and higher uncertainty should be expected as the "new normal" for the shipping industry for the foreseeable future. Long-term contracts, open availability for spot contracts, and improved collaboration and communication with shippers, carriers, and drivers will be critical to riding whatever waves of disruption lie ahead for the end of 2022 and the start of 2023.


5 Factors of Port Congestion


Navigating the uncertainty of port congestion and improving express shipping and delivery success rates comes down to how well shippers understand and respond to the following five factors.


1. Chassis Shortages ad Port Delays


The current chassis shortages plaguing ports across the US offer a prime example of how one issue can quickly snowball into an industry-wide concern. Starting with delays in parts and material access and manufacturing, fewer new chassis and pieces of equipment entered the supply chain. This made it harder to keep up with demand and manage the logistics of moving chassis from one port to another. Add to that other delays with port labor and driver shortages, existing delays, and financial impacts. The chassis shortage has quickly become one of the dominating issues shippers must deal with regularly.


2. Balancing Port Driver Shortages and New Drivers


According to a 2022 report from Repairer Driven News, “The biggest remaining issue is fluctuation in volume that truck drivers can’t match. On top of that, there’s congestion at many terminals, with an average time of 86 minutes to get trucks through and 26% of the transactions taking two hours or longer. “ The concern is that adding more drivers into the network might not be the best or only answer. Yes, more drivers are needed, but flooding the supply chain with too many drivers could simply add more drivers and vehicles to the already long queue lines. Balance is critical and is an ongoing process for logistics managers. 


3. Chip and Other Shortages Impacting Port Logistics


Port shortages also tie back to the impact technology and manufacturing delays and shortfalls have on the economy. The worldwide chip shortage and other concerns over the lack of materials and components for vehicles and machinery continue to plague the industry. These shortages continue to impact the auto industry, equipment manufacturers, and transportation service providers. Estimates indicate that there are as many as 80,000 fewer trucks on the road now, further putting pressure on available drivers. The lack of vehicles capable of handling supply chain demands further exacerbates delays and logistical issues.


4. High Consumer Demands Increase Imports


Pandemic concerns and shifts in consumer focus and spending led to a dramatic e-commerce spike, which caused a considerable import surge. They flooded ports with even more cargo containers and ships. In turn, this caused even more delays, and the effects remain clear today as another crunch looms as the holiday season and the end-year peak season approaches. Shippers and transportation providers are struggling to overcome port congestion and equipment shortages.


5. Freight Inland Distribution Delays Impact Shipping


The delays are not stopping once the containers come off the ship and continue well into the inland distribution, mainly due to chassis shortages and other distribution concerns. As noted by Green Worldwide Shipping:


“The cause of the chassis shortage is twofold; retaliatory tariffs on goods from China in 2020 temporarily stunted the primary source of chassis equipment to the U.S… combined with an overall increase in street dwell for import deliveries has significantly reduced the available supply chassis.”


The longer it takes to move containers off the docks and cargo out of warehouses, the longer the delays in final delivery.


These disruptions and delays are well on the path to improvement compared to months ago. Delays are down to days or weeks from weeks or months in many cases. Overcoming backlogs and lowering dwell times to pre-pandemic levels remains an ongoing issue. Working with a skilled and experienced freight broker is a great way to improve port logistics and inland distribution processes.


Why a Freight Broker is Poised to Help for Inland Distribution- Call Entourage Freight Services Today


Working with a freight broker can make cargo shipping, distribution, and logistics much more manageable. They can also unlock many
shipper benefits that improve delivery success rates. Whether you carry freight or need to ship it, it is easy to miss the mark and struggle to get things done correctly. Miscommunications, delays, and freight damages lead to poor overall performance and low customer satisfaction. The easiest way to overcome disruptions, uncertainties, and other port or inland challenges is to work with a skilled and experienced freight broker. 


In July 2022,
Transport Topics touched on how fragmented the carrier market is, noting that 90% of all U.S. carriers have five trucks or fewer, and 66% are owner-operators with a single truck. Shippers work with select carriers for only about 20% of their lanes. “They need about 80% of their lanes covered by brokers because not all freight is created equal,” said Pat Nolan, the VP of North American surface transportation for C.H. Robinson Worldwide. “In all those lanes where freight is less dense, less frequent, and less predictable, few of the big carriers position trucks there. So, shippers need to tap into the 90% of carriers who have five trucks or less.”


A
freight broker optimizes the transportation process, making all of this more manageable and accessible. 


These experts facilitate communication between the shipper and the carrier, manage pick-ups, drops off, and load timelines, address delays, and pass along information and updates as needed. When goods are done with loading and drayage and are ready to go to the inland destination, they need a broker with the specialized skills and training, insight, and the best tech stack to help broker the process.
Contact Entourage Freight Services to learn more about overcoming port disruptions, container and chassis shortages, driver concerns, and logistical obstacles to improve port and inland distribution today!

Cutting Costs
By Nick Terry 27 Mar, 2024
While every for-profit business has its own mission and goals, they all want to maximize revenue and save costs with an optimized supply chain network.
By Nick Terry 21 Mar, 2024
Food and beverage shippers know that the trucking industry is always moving – both literally, and in the sense of the market. Carriers’ rates have been up and down, and one key LTL carrier is on a growth spree. As tonnage, rates, and capacity continue to change, here are six headlines to keep up to date with the latest in the ever-changing logistics industry: Saia Basks in February Glory Things warmed up for Saia in February. The LTL carrier saw an 11% YOY increase in daily tonnage last month, with a 19% boost in shipments and a 6.7% decrease in weight per shipment. That growth was even faster than in January, when tonnage went up 3.3% YOY and shipments grew 11.8%. “March is the most important month in Q1,” Saia CFO Doug Col told analysts on the carrier’s quarterly earnings call last month. “That's where maybe we'll start to get a better feel for what's going on with this underlying freight economy. … So, we'll see what things look like in March.” But Saia isn’t waiting until March to invest. According to FreightWaves , the LTL carrier has big growth plans this year—Its $1 billion in CapEx includes $550 million for real estate. The carrier plans to grow its net door count by 12% to 14% this year. And recall that Saia recently acquired 28 terminals from bankrupt Yellow. Diesel Prices on the Downhill As carriers like Saia see their tonnage go up, they’re also seeing diesel prices go down. On March 4, the Department of Energy/Energy Information Administration diesel price was $4.022 per gallon. That’s a drop of 3.6 cents a gallon from a week earlier, FreightWaves reported . When we take a step back, however, the picture is even clearer. At this time last year, the diesel price was $4.282 cents a gallon. That’s 26 cents more than the price at the beginning of this month. So, why the drop? There are a handful of possible factors. Last year, there was more uncertainty regarding Russia’s diesel supplies as the country continued its invasion of Ukraine. Those supplies have mostly normalized. More refining capacity for diesel has come online, increasing the ability to supply diesel. For one, ExxonMobil brought on 250,000 barrels a day of new refining capacity at its refinery in Beaumont, Texas. A final potential reason is the rise of renewable diesel capacity in the U.S. All those factors together equal a softening picture for diesel, which is welcome news for diesel consumers. Scope 3 Emissions Get the Boot It’s tough to discuss diesel without also talking about the elephant in the room: greenhouse gas emissions. There’s a new development in the Securities and Exchange Commission’s climate disclosure rule. The SEC finalized its rule, but it doesn’t require publicly traded companies to report their Scope 3 emissions. On top of that, requirements to report Scope 1 and Scope 2 emissions are scaled back, according to ESG Dive . The SEC first laid out its climate reporting proposal in March 2022. At the time, Scope 3 emissions—which are generated from a company’s supply chain rather than its direct operations—were slated to be part of the disclosure. However, since then, the SEC has received more than 16,000 comments opposing the inclusion of Scope 3. While the rule is finalized, the impact isn’t over. KPMG noted that large companies still have to report their Scope 3 emissions to comply with other regulations, such as California’s climate disclosure laws. Plus, many firms have set their own sustainability goals. Tracking Scope 3 emissions, from transportation providers to suppliers, holds them accountable for meeting those targets. A Costly Forklift Regulation In other regulatory news , the California Air Resources Board is developing a rule that would require businesses and local governments to replace combustion forklifts with battery-electric ones. According to a new economic impact report released by the Western Propane Gas Association, this wouldn’t be cheap. WPGA estimates the regulation will cost California forklift owners and operators up to $27 billion, Food Logistics reported . The association notes that, under the regulations, operators will spend $10 billion on forklift replacements and will have to buy new forklifts even if their internal combustion ones are fully functional. They’ll also spend more than $6.3 billion on implementing charging stations, and that doesn't include any costs to upgrade power supplies or actually transmit electricity. But making the transition to battery-electric forklifts is also a critical part of CARB’s strategy . According to the board, the measure helps meet California’s air quality and greenhouse gas reduction goals. The board will consider the rule this summer. Smaller Suppliers Feel the Pinch A recent Supply Chain Dive article took a look at the finances of small companies. Turns out, many are in worse shape than before the pandemic began. Private middle-market companies have filed for bankruptcy four times as often as public large companies since 2019. Those middle-market companies also saw earnings before tax drop 20% from 2019 to 2022, while large companies’ earnings rose 20%. “Their profit margins are being squeezed. Their capital costs are increasing,” Rapid Ratings Executive Chair James Gellert told Supply Chain Dive. It can behoove large firms to support their suppliers. Some buyers are pressuring suppliers with short lead times or canceled orders. By avoiding those practices, and offering faster payment terms, large buying companies could improve the health of their suppliers and the overall value chain. The Need for Cold Chain Focus Here’s a staggering statistic: $1 trillion of food goes to waste every year. Can supply chains dramatically reduce that? Most certainly, according to Food Logistics . The publication calls on companies to make cold chain technology a big focus for 2024. The food supply chain hasn’t kept pace with the food industry’s rapid expansion, with thousands of farms, restaurants, and grocery stores feeding the nation. Fast and reliable transportation is essential. One solution is to remove moisture from shipping containers. Companies can also use technology for better circulation in a container. Another is to use expedited trucking . These strategies help better maintain the freshness of perishables, in an environment where every degree counts. “Holding in cold temperatures and improving the flows of refrigeration should be the north stars of the logistics industry in the coming years,” the article stated. Tyson’s Call for Cold Chain and More Startups  As the industry rallies around modernizing and cutting down waste in the cold chain, Tyson Foods is making its own play. The CPG’s venture capital arm, called Tyson Ventures, will hold its third Demo Day this summer, Food Business News reported . Startups focused on everything from cold chain to forecasting to logistics software are invited to pitch their technology solutions at the Demo Day event. The idea is for Tyson to work with startups to improve sustainability and efficiency across its supply chain, while Tyson provides mentorship and partnerships to the startups. As Tyson’s CFO put it: “Together, we can reimagine, innovate, and elevate the protein supply chain across every touchpoint.” Securing Capacity – LTL or Otherwise – With Entourage Whatever your logistics needs, Entourage Freight Solutions can help you with personalized services and security capacity. Entourage Freight Solutions offers the following services, and many more: Our LTL service provides on-demand access to capacity, along with real-time data and peace of mind in this high-stakes world. Our Freight Management lets your team stay organized across inbound and outbound logistics, tracking market capacity and using automation notifications to keep everyone informed. Our Refrigerated transport provides expertise in everything from finished goods to raw materials, ensuring products arrive on time and in top condition. Request a quote today to see how Entourage Freight Solutions can solve your key logistics pain points.
expedited trucking
By adam 23 Feb, 2024
Expedited trucking ensures fast and reliable transport. But where it shines is in keeping production lines moving smoothly by linking raw materials directly to production needs, helping businesses stay nimble and ahead of the curve.
By Nick Terry 16 Feb, 2024
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By Nick Terry 31 Jan, 2024
Imagine a small, rural hospital facing an urgent crisis: their only MRI machine has broken down, and a patient with a suspected brain aneurysm needs an immediate scan. The nearest replacement part for the machine, a critical magnetic coil, is over 500 miles away. Enter Mike, an experienced driver in the expedited trucking industry, who receives the call for this emergency delivery. As Mike sets off in the early hours, his dispatcher, Sarah, is already mapping out the fastest, safest route. She keeps an eye on live traffic updates and weather forecasts, ensuring Mike avoids any delays. Their communication is constant and efficient, with Sarah relaying information about potential road closures and Mike providing progress updates. Back at the hospital, tensions run high. Yet, the trucking company's customer service team maintains a steady line of communication with the hospital, providing reassurance and real-time updates on the magnetic coil's arrival. This scenario isn't just a story; it's a day in the life of the expedited trucking industry, where such high-pressure situations are routine. Here, communication goes beyond talking over the radio or sending emails . It’s a key strategic principle that can mean the difference between life and death. Enhancing Operational Efficiency through Communication Effective communication is a building block of smooth operations in expedited trucking. It isn't just about passing messages; it’s about creating a seamless flow between dispatchers and drivers to ensure timely deliveries and happy customers. Streamlining Dispatch and Driver Interactions Clear and concise communication between dispatchers and drivers is fundamental to the smooth running of any trucking operation. Dispatchers are orchestrators and direct drivers to their destinations while often managing multiple routes and schedules simultaneously. Drivers, as the executors, navigate through unpredictable roads and weather conditions. This dynamic duo must work in perfect harmony to avoid costly delays and errors and allow for swift adjustments and decision-making. It's all about understanding and being understood. Leveraging Technology for Better Communication Technology has revolutionized how dispatchers and drivers communicate, making information exchange faster, more reliable, and more efficient. For instance, real-time data sharing and GPS tracking have become indispensable tools in expedited trucking by providing a live view of vehicle locations, enabling dispatchers to make informed decisions, and relaying accurate information to drivers and clients. At the same time, these tools combined enable dynamic routing. Dispatchers can reroute drivers based on traffic conditions, road closures, or weather issues, minimizing delays and enhancing delivery predictability. Solving Problems and Improving Safety with Effective Communication The benefits of effective communication go beyond staying on schedule. Communication is also a vital tool for problem-solving and enhancing safety. With the right communication strategies, managing both expected and unexpected challenges efficiently and safely is achievable. Quick Resolution of On-Road Challenges Imagine a driver encountering an unexpected road closure or a cargo issue. As we showed in our intro, instant and clear communication with the dispatch team can be the difference between a minor hiccup and a major delay. With real-time communication, dispatchers can quickly assess the situation, provide alternative routes, or offer solutions to cargo-related issues. This responsiveness ensures the prompt resolution of problems, minimizes downtime, and keeps schedules on track. Ensuring Driver Safety through Advanced Communication Tools Driver safety is paramount, and advanced communication tools play a critical role. Telematics systems, for instance, provide vital data on vehicle performance and driver behavior, enabling proactive maintenance and safer driving practices. Custom mobile applications are another boon. They offer drivers easy access to essential information without the distraction of handling multiple devices or paperwork. These apps can send alerts about weather conditions, traffic updates, or route changes, allowing drivers to focus on the road with fewer distractions. Building a Supportive Trucking Community Finally, building a supportive community is essential for driver well-being and job satisfaction in the often-solitary world of trucking. Fostering Team Spirit and Driver Engagement The rise of social media and digital platforms has opened new avenues for drivers to connect, share experiences, and support each other, regardless of their physical location. Online forums, social media groups, and dedicated apps allow drivers to engage in real-time conversations, exchange tips, and celebrate each other’s successes. This digital camaraderie fosters a sense of belonging and team spirit, which is crucial in an industry where isolation can be challenging. Moreover, companies can leverage these platforms to recognize driver achievements, share important updates, and gather feedback, nurturing a culture of inclusivity and loyalty . The Impact of Communication on Driver Satisfaction Effective communication goes beyond just passing information; it enhances driver satisfaction. When drivers feel heard and valued, their job satisfaction levels rise. Regular check-ins, transparent communication about schedules and expectations, and providing a platform for drivers to voice their concerns are all practices that contribute to a supportive environment. After all, 4 in 5 American workers report stress due to poor communication , while good communication can improve productivity by up to 25%.  Tying Together the Power of Communication in Expedited Trucking The essence of expedited trucking revolves around precision, speed, and reliability , all underpinned by robust communication between dispatchers, drivers, and customers. From managing unexpected road closures to enhancing driver safety with advanced tools, communication improves operational efficiency and builds a sense of community and satisfaction. Every minute counts, and clear and efficient communication is the backbone of success. Entourage Freight Solutions (EFS) stands at the forefront of integrating these communication principles into practical, real-world services . As a well-rounded provider with offerings from full truckload to specialized freight management designed to cater to diverse needs while prioritizing safety, efficiency, and reliability, EFS understands the critical role of timely deliveries, expedited service , robust communication, and 24/7 support. Advanced communication tools, coupled with a network of strategic locations, ensure that your cargo is handled with the utmost care and precision, no matter how urgent or sensitive. Ready to experience a new level of expedited trucking service? Request a quote from Entourage Freight Solutions today and get started.
By Nick Terry 26 Jan, 2024
2024 is shaping up to be a rollercoaster year for expedited trucking and the trucking industry as a whole. Think of it as a highway under constant construction, with new speed limits and safety signs emerging. The U.S. Department of Transportation (DOT) and the Federal Motor Carrier Safety Administration (FMCSA) are ramping up their game – imposing heftier fines for non-compliance. On the horizon, there are potential new laws. Imagine trucks mandated to have built-in speed caps, automatic braking systems, or Electronic Identification Devices becoming the standard, requiring you to upgrade your fleet just as you would swap an old phone for a smart one. That's just the tip of the iceberg. For everyone in expedited trucking, it's time to buckle up, stay alert, adapt, and keep pace with the pros, cons , changes, and proposed changes we’ll discuss in this article. Key Regulatory Changes in the Trucking Industry for 2024 Let’s first focus on three critical areas of change: stricter enforcement, higher fines, and new safety regulations. Stricter Enforcement and Financial Penalties The FMCSA is adopting a tougher stance with increased fines for non-compliance. This move isn't just a random decision; it's part of a yearly update required by a law passed in 2015, known as the Federal Civil Penalties Inflation Adjustment Act Improvements Act. This law is about keeping fines in step with inflation, ensuring they remain a strong deterrent against violations. As a result, if you find yourself caught bending the rules – say, falsifying records or ignoring out-of-service orders – expect to feel a heavier pinch in your wallet. To put it into perspective, the penalty for falsifying records has jumped from $14,960 to $15,445 . It clearly signals that the FMCSA is serious about reinforcing safety and compliance, especially for smaller trucking businesses that might more acutely feel the impact of these increased fines. Other Adjustments in Civil Penalty Amounts DOT has also updated civil penalty amounts for various infractions in line with inflation in response to economic changes and to ensure that fines continue to deter regulatory violations effectively. As of January 2024, significant adjustments include increased penalties for premerger filing notification violations under the Hart-Scott-Rodino Improvements Act (from $50,120 to $51,744), violations of cease and desist orders under the Clayton Act (from $26,628 to $27,491), and several infractions under the FTC Act, including unfair or deceptive acts (each from $50,120 to $51,744). Additionally, penalties for failures to file required reports and maintain necessary records under several acts have increased from $659 to $680. Potential New Federal Laws On top of the harsher fines and penalties, the trucking industry is also facing some proposed new federal rules and regulations focused on vehicle safety and employment practices: Speed Limiters on Trucks: Balancing speed, safety, and service is a constant trucking challenge, and The FMCSA is getting involved with a proposal to mandate speed limiters on commercial motor vehicles with a gross vehicle weight of over 26,000 pounds. Proposed initially to cap speeds at 68 mph, this specific limit was later retracted, pending a final decision after public comment. This change aims to enhance road safety by controlling truck speeds on interstate highways​​​​​​. Automatic Emergency Braking Systems: There is a proposed rule, expected to be finalized by April 2024, for the mandatory inclusion of automatic emergency braking systems on new commercial vehicles over 10,000 pounds. This development is part of ongoing efforts to reduce accidents and improve safety standards in heavy truck operations​​. California's AB5 Labor Law: Potentially expanding to the federal level, California's AB5 law is redefining the classification of many independent contractors and gig workers as employees. This shift could significantly impact employment practices within the trucking industry, aiming to provide more worker protections while potentially requiring business model adjustments​​. Potential Technological and Sustainable Trucking Changes in 2024 Beyond the key regulatory changes we discussed above, there are two other ones to consider. One is the proposed Electronic Identification Devices (UIDs) requirement by FMCSA, and the other is California's Advanced Clean Trucks Regulation. While one is a proposal and the other is already in motion, they each signal a trucking industry on the cusp of significant changes in technology and regulation driven by environmental concerns, safety measures, and the need for increased efficiency. Electronic Identification Devices (UIDs) Requirement by FMCSA Since September 2022, the Federal Motor Carrier Safety Administration (FMCSA) has been pushing a game-changing rule for commercial motor vehicles: requiring Unique Identification Devices (UIDs). Sparked by a petition from the Commercial Vehicle Safety Alliance (CVSA), this proposal would equip every interstate commercial vehicle with technology to transmit a unique ID to safety enforcement personnel wirelessly. The goal? To boost safety and compliance monitoring by pinpointing vehicles needing inspections and honing in on higher-risk carriers and drivers. However, there's a catch: privacy concerns. A 2023 Pew Research Center survey reveals growing unease: 71% of Americans worry about how the government uses their data, up from 64% in 2019. People feel powerless over their data, with 73% concerned about companies and 79% about government handling. Unsurprisingly, these concerns center on using, accessing, and securing data gathered through UIDs. California's Advanced Clean Trucks Regulation Effective 2024, California's Advanced Clean Trucks Regulation ushers in a new era in transportation, mandating 5% to 9% of truck sales to be zero-emission, depending on the category. This pioneering initiative aims to diminish emissions and foster clean technology, aligning with California's vision to transition to a zero-emissions transport system by 2045 . However, even though zero-emission vehicles are emission-free during operation, they still emit pollutants during their construction and the production of energy carriers. Moreover, the higher costs associated with zero-emission vehicles stemming from vehicle prices, new fueling infrastructure, and performance attributes are challenging, particularly for small fleet operators . Such operators bear the brunt of operational changes and financial pressures due to these higher costs while managing limited resources. Strategies for Navigating the New Regulatory Landscape Now that you have a bird’s eye view of the trucking industry’s new regulatory landscape, what can you do to stay compliant? It requires a strategic approach, and we’ve outlined five tips you can employ: Regular Training and Updates: Stay informed about the latest FMCSA regulations and ensure that all employees, especially drivers, receive regular training on these updates. This approach helps understand and adhere to new rules, thus minimizing the risk of violations and associated fines​​. Investing in Compliance Tools: Utilize advanced software solutions designed for the trucking industry. These tools can track and manage compliance-related tasks, making it easier to adhere to FMCSA regulations. Features like automated alerts, record-keeping, and reporting functionalities are invaluable. Proactive Maintenance: Regular vehicle maintenance is more important than ever. Ensure that your fleet meets all safety standards to avoid violations related to vehicle condition. Doing so not only helps in compliance but also in ensuring the safety of your operations​​. Accurate Record-Keeping: Maintain meticulous records of driving hours, vehicle maintenance, and other compliance-related information. Accurate record-keeping is essential for compliance, particularly with the increasing complexity of regulations and the heightened emphasis on documentation​​. Seeking Professional Advice: Consider consulting with legal or compliance experts specializing in the trucking industry. They can provide tailored advice and help with specific challenges and changes in regulations. On the Fast Track: Closing Remarks on the Evolving Trucking Industry Expedited trucking in 2024 feels like a high-speed chase with new rules, regulations, and technological advancements. From higher fines to new laws to proposed new laws, it's not just about keeping up; it’s about staying safe, efficient, and profitable no matter what comes your way. Now's the perfect time to team up with a logistics partner who handles these changes. Entourage Freight Solutions (EFS) is at the forefront with expertise and diverse services. From the demanding world of food service logistics to a wide array of shipping needs, EFS ensures top-notch service with the customer at the center. Addressing everything from full truckload shipments to specialized freight management and using cutting-edge tech, they ensure each shipment is monitored and adapted to changing circumstances, maintaining high service quality and efficiency. So, why not take the next step? Contact Entourage Freight Solutions, request a quote , and prepare to steer your business through 2024 and beyond.
By Nick Terry 22 Jan, 2024
As the world speeds up, so do the demands on the food industry. Picture a seasonal fruit company about to launch a limited-edition mango-flavored ice cream. But, with just a week left, they face a sudden shortfall of ripe mangoes due to unexpected storms. Enter expedited trucking: a fast and carefully coordinated service built for such emergencies . Within hours, a refrigerated truck dedicated solely to this task races across states, ensuring the mangoes arrive fresh and on time. This mission, more than just a delivery, is a testament to the growing significance of expedited trucking in food manufacturing. As we go deeper into this topic, we'll see how this fast-paced logistical solution has evolved from a convenience to a necessity, reshaping how food reaches from farm to factory to fork in record time . Understanding Expedited Trucking in Food Manufacturing The role of trucking in food manufacturing is like the bloodstream in the body: essential and life-sustaining. With trucking responsible for moving roughly 72.6% of the nation’s freight , it’s toiling behind the scenes, bringing ingredients to factories, products to shelves, and connecting farms, factories, and families. Consider expedited trucking as its express lane. The Expedited Trucking Process Unlike standard trucking, which operates on pre-set schedules and routes, expedited trucking is the 911 call of logistics. It's a tailored, rapid-response service that handles urgent, time-sensitive deliveries. When regular shipping says "in a week," expedited trucking says "overnight" or even "within hours." This process often involves dedicated vehicles and non-stop driving, bypassing the usual logistical hurdles to deliver urgent shipments as fast as possible. Key Benefits for Food Manufacturers For food manufacturers, expedited trucking is not just a service; it's a strategic advantage with three key benefits: Time-Sensitivity: In a world where timing is everything, expedited trucking ensures that seasonal, perishable, or limited-time products hit the market exactly when needed. Reduced Spoilage: Fast delivery means fresh ingredients and products, meaning less spoilage and waste for perishables like dairy, meats, fruits, and vegetables. After all, the U.S. wastes more food than any other country: nearly 120 billion pounds a year, or about 40% of the country’s entire food supply . Efficiency: Expedited trucking streamlines the supply chain, enabling manufacturers to operate leaner and respond faster to market demands and unexpected challenges. Impact on Supply Chain Dynamics The addition of expedited trucking into the supply chain is like introducing a high-speed train into a world accustomed to stagecoaches . It's transforming the dynamics of the movement and management of goods, making the supply chain faster, smarter, and more responsive. Enhanced Supply Chain Efficiency Imagine a world where the supply chain operates with the precision and speed of a finely tuned sports car. That's what expedited trucking brings to the logistics world. By significantly reducing transit times, expedited trucking allows businesses to implement just-in-time inventory strategies, transforming their operations into lean, agile systems that cut down on warehouse storage needs and associated costs and enable quick responses to market demands and customer needs. Take a boutique hot sauce company, for instance. The company’s unique, spicy creations are hot in taste and demand, and they're having trouble keeping pace. So, they turn to expedited trucking. The service works almost as a superpower for the company, ensuring the exotic peppers, spices, and ingredients needed arrive ASAP from distant suppliers—no more waiting for weeks, no risk of losing customers to competitors. Risk Management in Food Transportation The path perishables take from farm to fork is fraught with potential risks like temperature fluctuations, contamination, physical damage during transit, delays leading to spoilage, and loss due to inadequate storage facilities. Expedited trucking mitigates risks such as spoilage, contamination, or damage to sensitive products by shortening the delivery window. For instance, a dairy company switching to expedited trucking services can see a noticeable decrease in spoilage rates, ensuring that the products reaching consumers are as fresh as possible. Technological Advancements and Innovations Technology is reshaping our daily lives, and expedited trucking in food manufacturing is no exception. These advancements are not just about moving goods faster but smarter, safer, and more sustainable logistics. Role of Technology in Expedited Trucking Think of expedited trucking today as like a well-coordinated offense of a football team, where every player, or in this case, technology, has a specific, vital role . GPS tracking is the quarterback, guiding trucks along the most efficient routes and ensuring timely deliveries. Temperature monitoring technologies act like the offensive line protecting perishable goods against spoilage. Sophisticated logistics software functions like the coach, devising strategies to optimize routes, manage fuel usage, and enhance delivery times. It’s an orchestrated synergy that ensures your time-sensitive food items arrive in peak condition. Future Trends in Food Logistics The future of food logistics promises even greater efficiency and innovation, with advancements set to streamline the process of expedited trucking and contribute to more sustainable and eco-friendly logistics. One key trend is the increasing use of electric trucks, which could significantly reduce carbon emissions by at least 63% while maintaining the speed and efficiency of deliveries. Autonomous trucking technology is another exciting development, offering around-the-clock transportation without the constraints of human drivers. Additionally, AI and machine learning will likely become more prevalent, enabling predictive analytics to anticipate demand better and optimize supply chain operations. Best Practices for Food Manufacturers For food manufacturers, selecting the right expedited trucking service is about partnering with a carrier that can handle transporting perishable goods efficiently and reliably . Here are 5 points to consider when making that decision: Evaluate Carrier Reliability and Experience: Prioritize carriers with a strong history in expedited trucking and experience in handling perishables. High on-time delivery rates and positive customer testimonials are good indicators of reliability. Assess Technology and Tracking Capabilities: Choose carriers with advanced tracking and temperature monitoring technologies. This level of transparency allows for real-time monitoring of the shipment's condition and precise location tracking. Understand Pricing Structures: Carefully compare the pricing of various carriers. While affordability is necessary, the cheapest option may not always offer the best value. Weigh the cost against the quality of service, reliability, and speed. Plan for Flexibility and Scalability: Opt for a carrier that can adapt to your fluctuating needs, especially during peak seasons or in response to unexpected demand. Flexibility and scalability in a carrier are crucial for handling changing business dynamics. Seek Carriers with a Diverse Fleet: A carrier with a varied fleet can offer more tailored solutions for different types of shipments. Whether refrigerated trucks for dairy products or smaller vans for quick urban deliveries, a diverse fleet ensures that the specific needs of each shipment are met.  Sealing the Deal: Why Choose Entourage Freight Solutions Expedited trucking has become a cornerstone in food manufacturing, transforming the way we handle perishables with efficiency and precision. This service, more than a mere convenience, is a strategic asset that addresses the unique demands of food logistics – delivering freshness at speed. Entourage Freight Solutions (EFS) embodies this dynamic , offering tailored services that cater to the diverse needs of foodservice and food manufacturing . From comprehensive truckload options to specialized refrigerated transport and beyond, EFS's portfolio covers every aspect of modern food logistics. They provide a reliable network of services, including Full Truckload , Less Than Truckload , Refrigerated Trucking , Cross Docking , and more, ensuring that your food products are handled with the utmost care and professionalism. For those seeking a logistics partner that combines speed, reliability, and expertise, reach out to Entourage Freight Solutions and request a quote to elevate your food transportation strategy.
By Nick Terry 12 Jan, 2024
Let's cut to the chase — 2024's food transportation and logistics outlook is pulsing with innovation and challenges . Imagine a world where sleek technology seamlessly intertwines with the gritty realities of labor and operational costs, all while consumer choices shift like the tides. This sector isn't just about DC-to-DC transfers or the backdrop to our daily lives; it's a living, breathing ecosystem adapting to the rhythms of technological progress, economic shifts, and evolving tastes. We're about to unpack three transformative trends shaking up the industry, revealing what’s making it tick and keeping our world nourished and moving. Trend 1: Technology and Automation in Food Logistics Food logistics is undergoing a revolutionary change driven primarily by technology and automation. It’s a shift not just about efficiency but a response to various challenges, including changing consumer demands, environmental concerns, and the need for greater transparency. Rising Importance of Supply Chain Visibility Recent events over the past three-plus years have revealed the fragility of our food supply chain. The pandemic led to abrupt order cancellations for foodservice suppliers, resulting in significant stock excess due to mismatches in packaging sizes , exacerbating food waste. Geopolitical tensions, particularly the conflict in Ukraine, have disrupted vital crop supplies like wheat and corn, impacting global food accessibility . Similarly, climate change has led to concerning agricultural shifts ; Malaysia's chicken export restrictions due to reduced egg production in extreme heat and India's wheat export ban following a heatwave-induced yield drop are prime examples. In response, technology has become indispensable. With only 6% of companies having full supply chain visibility, 70% now prioritize this aspect strategically . Emerging technologies like AI and machine learning further revolutionize this space , enhancing demand forecasting, inventory management, and market responsiveness. Adoption of Advanced Technologies Let's take a closer look into those innovative technologies transforming food transportation: Real-Time Visibility: Essential for tracking goods, monitoring inventory, and adapting to demand changes. Alpine Fresh, a major player in the U.S. fruit and vegetable import market, is a prime example of the impact of this technology . They faced substantial losses due to untraceable shipments and product spoilage, so they turned to Tive’s Solo 5G trackers. This move improved their logistics operations and saved them hundreds of thousands of dollars. Blockchain: This technology offers a secure, decentralized ledger, vital for industries needing high transparency and traceability. Nestlé's use of IBM's Food Trust blockchain ledger exemplifies this . Through it, they can track the origin of products like Mousline purée and Zoégas coffee, partnering with the Rainforest Alliance to monitor cocoa bean sources, enhancing consumer transparency and supporting sustainable farming practices. Artificial Intelligence (AI): AI's application ranges from predictive analytics to data analysis and automation. Its impact on the food supply chain is significant, addressing challenges like container storage costs, asset planning, and route optimization. The increasing adoption of AI-driven solutions in the industry is a testament to its effectiveness in streamlining operations and enhancing overall efficiency. Trend 2: Addressing Operational Challenges The second trend shaping food transportation and logistics is addressing operational challenges. This trend encompasses two major areas: labor and talent management and capacity and cost issues. Labor and Talent Management Beyond food logistics, the challenges of retaining workers and managing rising labor costs impact the entire value chain in the transportation and logistics sector. Despite wage increases, logistics operations struggle with hiring and retaining frontline workers. Over 3 million truck driver positions are unfilled globally, including a 60,000 driver shortage in the U.S. Worse, this global shortage could double by 2028 . To address these issues, companies are building strategic relationships with temporary staffing agencies and prioritizing proactive hiring, employee development, competitive compensation packages, workforce retention , and developing managers and supervisors. They also leverage technology like advanced tracking and automation systems for more efficient operations. Dealing with Transportation Capacity and Cost Issues A 2022 survey revealed that 71.8% of companies were dealing with global supply chain disruptions, and 57.7% were working through ongoing transportation capacity shortages. Consequently, U.S. business logistics costs surged to $2.3 trillion, a substantial 19.6% increase from the previous year, accounting for 9.1% of the nation's GDP, the highest in the deregulated era . These challenges persisted throughout 2023 and led to rising transportation costs , directly impacting the profit margins of food and beverage manufacturers and causing widespread operational disruptions. In response, companies are adopting innovative approaches like big data analytics for improved operational insights and route optimization, utilizing Industry 4.0 tools for waste reduction and food safety , switching to more efficient materials like plastic pallets for transportation, and implementing advanced optimization algorithms to enhance transportation efficiency. Trend 3: Consumer Behavior and Market Dynamics The third and final trend impacting food transportation and logistics is the interplay of evolving consumer behaviors and global market dynamics. Shifting Consumer Preferences Shifting consumer preferences are significantly influencing food transportation. A study by Ingredion shows that 75% of consumers are making more deliberate food choices, with a willingness to pay more for brands aligning with their ideals. Deloitte UK also highlights how the rise in energy prices in 2023 drove consumers towards sustainable products and packaging . Simultaneously, BCG reports that health, quality, and nutrition are top priorities in food choices. These trends necessitate efficient transportation for fresh, organic, and local foods, transparency in processed food supply chains, and robust networks for increasing online grocery shopping and home delivery services. Moreover, as consumer behavior evolves, driven by social trends, economic conditions, and technological advancements , businesses must adapt their supply chain and product offerings to meet these changing demands. Economic and Geopolitical Influences As we kick off 2024, the food transportation sector is still reeling from the prolonged impacts of inflation that began in mid-2021 despite recent signs of easing . Plus, even if the economy sees a “soft landing” in 2024, economists still expect inflation to remain above the Fed’s long-term 2% inflation target . After all, food prices increased 5.8% in 2023 and could rise another 1.2% in 2024 . Compounding these challenges are geopolitical tensions and fluctuating global trade policies. Tensions are occurring worldwide, but the Russia-Ukraine War, with the region’s importance to energy and as Europe’s breadbasket , has disrupted supply chains and spiked energy prices. In response, the sector is adopting several strategies to mitigate these effects. These include improving operational efficiency, strategically managing costs and purchases , and enhancing price-negotiation capabilities . In addressing geopolitical uncertainties, investments in renewable energy , effective recycling of surplus nutrients, regionalizing supply chains , and exploring alternative revenue streams are also key tactics. Food Logistics: Entourage Freight Solutions (EFS) and The Road Ahead  The food transportation and logistics world is changing, with technology, operational hurdles, and consumer trends at the forefront. So, if your head is spinning, that’s understandable. How can you put your best foot forward to confront these trends? The answer lies in working with providers like Entourage Freight Solutions (EFS) . With specialized logistics services designed to cater to the complex needs of this dynamic sector, EFS has an answer for everything in foodservice logistics , food manufacturing , and beyond. Whether leveraging cloud-based technologies for real-time tracking, implementing strategic supply chain solutions, or needing expedited services and a refrigerated truck , they ensure top-tier service regardless of your needs. Entourage Freight Solutions is your go-to partner. Request a quote today and position yourself in the best way possible to thrive in the face of these changes.
By Nick Terry 21 Dec, 2023
You're at the helm of a shipping operation where every minute counts and deadlines loom large. Getting your goods delivered precisely on time and in full isn't a goal but literally the heartbeat of your business. If you don’t know or understand the 'On-Time In-Full' (OTIF) acronym, now’s the time to learn. Because those four letters represent much more than a catchy abbreviation, they're a commitment to delivering shipments precisely as promised, complete and undamaged. Falling short on OTIF can lead to devastating consequences, including customer dissatisfaction, financial penalties, or worse. So now, let's get to know your secret weapon in avoiding such adverse outcomes: expedited transportation. When you hear the term "expedited transportation," you probably think of fast transit and racing against the clock. But in reality, it's about so much more: making smart, timely choices. How can you leverage it to meet OTIF requirements and improve rates ? Think of this article as your playbook with expedited transportation as the star QB. For Today’s Shippers, OTIF Rates Remain a Challenge Walking the tightrope of high OTIF rates can feel like a high-stakes balancing act for shippers. You're constantly juggling to ensure every order is complete and punctually delivered. Miss the mark, and the consequences are more than just a red mark on a report card — think missed delivery windows and incomplete orders, each slip-up inching you closer to costly penalties. It's a game where precision is key, and the cost of a misstep can ripple through your business. The High Cost of Missing the Mark: Penalties for Missed Deliveries and Incomplete Orders Imagine the frustration when a carefully planned delivery misses its window or arrives incomplete. It's like preparing a perfect meal only to have it served cold. In the shipping world, such slip-ups do more than disappoint; they often lead to penalties and real hits to your bottom line and reputation. Financial Repercussions: The U.S. food retail industry sheds around $15–20 billion in sales annually due to unavailable or unsellable items, roughly 2-3% of total sales. Penalties for not meeting OTIF requirements can reach a staggering $5-6 billion annually in the U.S. Operational Hurdles: About a quarter of deliveries show up over two hours early, throwing a wrench in distribution center schedules and leading to idle assets and demurrage costs. This inefficiency consumes industry capacity and increases operational challenges. Strained Supplier-Retailer Ties: A survey of 300 retail buyers revealed that 100% value on-time delivery highly, with 73% having severed ties with suppliers over delivery issues. These relationships are increasingly at risk, with OTIF non-compliance rates averaging 20-30%. Penalties from Major Retailers: Retail giants like Walmart and Kroger enforce strict penalties for OTIF non-compliance. Walmart fines 3% of the purchase price for early, late, or incomplete orders. At the same time, Kroger imposes a $500 fine for orders over two days late. These fines can accumulate rapidly, especially for larger orders. Sales Impact: Incomplete deliveries, even when on time, contribute to up to 30% of out-of-stock situations, leading to an estimated $1 trillion in lost sales globally each year. The Role of Expedited Transportation in a Complex Logistics Environment In a world where every second counts, expedited transportation is the key to mastering logistics with speed and certainty. Let’s look more deeply at how expedited services go beyond traditional shipping methods , offering tailored, efficient solutions crucial to meeting tight OTIF goals. Understanding Expedited Transportation: Speed and Reliability Combined Expedited transportation is more than just quick shipping; it combines efficiency, speed, and reliability. Imagine it as giving your cargo a VIP pass, optimizing every aspect for the fastest delivery possible. Its hallmarks are direct routes that minimize stops, dedicated resources like exclusive vehicles and teams focused solely on your shipment, and enhanced tracking for real-time updates on your shipment's journey. How Expedited Services Differ from Standard Shipping Methods Standard shipping is efficient but bound to a set schedule and multiple stops like the regular bus service. Expedited transport, on the other hand, is akin to a private taxi ride explicitly tailored to your urgent needs. While standard shipping suits routine deliveries, expedited services shine in scenarios where time is of the essence. These services offer faster delivery times by significantly reducing transit time, provide customized solutions for unique shipping needs, and involve less cargo handling, lowering the risk of damage and delays. The Advantages of Expedited Transportation in Meeting OTIF Goals Do you still need to be sold on expedited services meaningfully differing from standard shipping methods? Consider the following advantages that expedited transportation has in achieving OTIF goals: Swift and Safe Deliveries: Ensures shipments reach their destinations quickly and intact. Mitigating Financial Risks: Reduces the likelihood of penalties and lost opportunities due to delays. Strategic Business Choice: Enhances your business's reputation and reliability in a competitive market. Improved Customer Satisfaction: Leads to happier clients thanks to reliable and prompt delivery. Enhanced Flexibility: Offers the ability to respond quickly to last-minute orders or changes in demand. 3 Strategies for Improving OTIF Rates The world of expedited transportation is a high-stakes race against time with zero margin for error. It's a thrilling yet challenging arena where the right strategies make all the difference. In this dynamic setting, let's dive into three game-changing strategies that promise to boost your OTIF rates and transform your shipping experience into a smoother, more satisfying adventure for you and your customers. Precise Planning and Forecasting OTIF success is the holy grail in the world of expedited shipping. Achieving it begins with precise planning and forecasting. Why? It's simple. By accurately predicting customer demand, you can seamlessly align your production schedules with shipping windows. Doing so ensures that goods are ready to ship right when a truck is available, minimizing delays and maximizing efficiency. Consider this hypothetical scenario: A company anticipates a seasonal surge in demand for its product. By using accurate forecasting methods, it increases production in advance. When the surge arrives, they're ready. Not only are products available, but they've also coordinated with expedited shipping providers ahead of time. This foresight means trucks are waiting to roll out as soon as products are off the line, leading to a significant increase in OTIF delivery rates. Carrier Selection and Performance The reliability of your carrier is the core of your logistics. Yet, not all carriers are created equal when it comes to expedited transport. Be sure to evaluate and select those with a proven track record of on-time deliveries. Your due diligence should go beyond just checking boxes and dive deep into their performance history, customer feedback, and operational strengths. The benefits of forging long-term partnerships with these dependable carriers go beyond reliability. They understand your business needs, can anticipate challenges, and are often willing to go the extra mile, quite literally, to meet your OTIF targets. Real-Time Visibility and Tracking In expedited transportation, time is not just money; it’s everything. It's here where real-time tracking and visibility become game-changers. The use of advanced technology in providing real-time updates on your shipment’s progress is a tech-driven approach that transforms how you manage logistics, offering a window into each stage of the transportation process. It enables proactive issue resolution, ensuring that you address potential delays before they impact your OTIF. These advantages all lead to an underlying goal far beyond tracking: real-time insight can help build a resilient, responsive, and reliable shipping strategy. Streamlining Your OTIF Success with Entourage Freight Solutions As we've explored, expedited transportation is not just about speed; it's about making smart, strategic choices. From the high costs associated with missing delivery targets to the complex logistics environment, the challenges are many. But so are the opportunities for those ready to embrace innovative solutions to improve OTIF rates. It's here where Entourage Freight Solutions (EFS) steps in. As a dedicated logistics expert, EFS offers a range of services designed to meet the unique needs of your shipping operation. Whether it's Full Truckload (FT) for dedicated shipments, Less Than Truckload (LTL ) for efficient multi-destination transport, specialized Refrigerated Trucking , or cross-docking solutions , EFS has you covered. They excel in managing retailer shipping , DC-to-DC transfers , and freight management solutions while leveraging their extensive food service logistics background. Don't let logistical challenges slow you down. Embrace the opportunity to excel with EFS. Request a quote today and take the first step towards seamless, efficient, and reliable shipping solutions.
Expedited Trucking Provider
By Nick Terry 30 Nov, 2023
With demand for expedited trucking surging, how can you choose the best provider? Consider starting your search with these three critical questions.
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