Commentary

The era of carrier rate agreements is over, but freight markets still need a stabilizing influence. How did we get here? Can we do better?

Amid tight US trucking sector supply, in order to ensure that shippers can access the capacity they need at reasonable rates, shippers need the right supply chain technology and resources to drive information accessibility, visibility, and efficiency.

Legally, a consignee is protected against the carrier’s claim for its charges if it (the consignee) would wind up having to double-pay those charges by complying with the carrier’s demand.

In theory, blockchain has the potential to enable global container carriers to create a universal, standardized, ledger system with many more efficient processes. The question is whether carriers who are fierce competitors and who do not trust each other can use a system where trust is integral.

Short-haul sticker shock is one consequence of the electronic logging device era, and the era has only just begun. New charges, additional demands placed on the shipper by the transporter, and new demands for distribution centers are among the other consequences. Here are several tips to meet the demands of US trucking's new normal.

When President Donald Trump announced he would impose steel and aluminum tariffs on all except Canada and Mexico, the media was abuzz regarding the policy implications. What was buried, however, was the fact that it was only the latest salvo by the current US administration questioning the efficacy and relevance of the World Trade Organization.

Building into sales terms language that would oblige a shipper’s customer to pay for transportation if a third-party logistics provider (3PL) does not get the shipper off the hook better than any modifications of a 3PL’s bill of lading would.

What does the term “Industry 4.0” mean for logistics and supply chains? Logistics 4.0 has recently emerged as a move to smart transportation and logistics, enhanced sales and operations planning, and dynamic logistics network configuration.

Ocean carriers want to put the past 10 years behind them; it was a time when their focus went inward and unsuccessfully so. Much rebuilding is needed to re-establish credibility with customers. One opportunity is the small shipper market. But can carriers make their services Amazon-like for small shippers?

Better batteries, longer ranges, and lower costs are making electric trucks and delivery vans more popular than they have been in a century. Further, the prospect of zero emissions is adding to the go-electric argument.

From rising protectionism underscored by President Donald Trump’s attack on steel and aluminum imports, to a new reality regarding US surface capacity, there are new challenges for shippers and transportation providers that demand action rather than hand-wringing.

Even as the European Union hardens its stance and shows the United Kingdom the full impact of a hard Brexit in April 2019, there are calls within the United Kingdom for a new, post-Brexit trade union that would lessen the impact on trade, the ports, and commerce. As of today, this is certain: a hard Brexit would be an unwelcome trade jolt to the United Kingdom and the European Union.

With the world’s most stringent environmental regulations, California state, regional, and local agencies are proposing new, overlapping regulations that will drive trade and jobs away from California. If that is the goal of these regulators, then they are sending a strong signal.

If your customers want to take over their inbound freight, oblige them to take title to the goods first; otherwise you have the right to select who will handle the transportation to destination, a right you should exercise freely.

Controversial new laws that went into effect last December now require most commercial truck drivers to use electronic logging devices (ELDs) to record data. ELDs synchronized with the truck’s engine automatically record driving time, creating a tamper-proof way to ensure drivers do not exceed limits.

Freight rail is the backbone of our nation’s intermodal network. US railroads have created the most advanced intermodal network in the world by more-fully utilizing existing capacity and through tens of billions of dollars in spending on new infrastructure and equipment directly connected to intermodal operations.

Many are asking, what the state of the ocean carrier/container carrier industry is in 2018. But a more illuminating question may be what the goal of the individual container carrier is and, quite possibly, the goal of the nation supporting it.

The European Union is pushing further for rail freight development. In addition to reducing carbon dioxide emissions by 30 percent, facilitating the free circulation of goods within Europe is part of the European Union's DNA. And the quality of inland transportation is a key success factor regarding port development.

In the period ahead, the container shipping industry may look different, but know this: that will be due to technology, not consolidation. Consolidation, so far, has reduced the number of carriers but has not changed behaviors.

Ensuring product integrity and security throughout the supply chain has always been a top priority for biopharmaceutical manufacturers. However, a convergence of new forces — intense cost pressure and competition, a changing product portfolio, stricter regulations, rapid growth in emerging markets, and increasing risk — is raising the stakes significantly.

The 18th Annual TPM Conference marks the start of formal negotiations between many beneficial cargo owners and container lines on annual trans-Pacific service contracts. Price, as always, will drive those negotiations. However, as recent news demonstrates, price is not everything.

Shippers and all involved in trade take note: US railroads, in some respects, hold the destiny of the 2018 intermodal year in their hands.

As I hear about technology being the game changer in logistics, I am certainly open to the thoughts, but recall the caution of the Harvard professors who taught the classes on process improvement — first make sure you have the right processes, then build systems that support those processes.

Shippers are complaining and fearing a huge increase in US transportation costs. For those who keep informed of developments impacting this spike in prices, this should not have come as a shock. Further, the factors impacting the hikes are outside the control of the trucking industry.

While the US administration has fixated on balancing trade relationships, many economists have argued that neither a trade deficit nor a trade surplus is a meaningful indicator of economic prosperity when examined in isolation of other economic influences.

I believe we are turning the page. The US Congress and the Trump administration are taking action to expedite the dredging activities for our ports, waterways, rivers, and shorelines.

The ocean carriers’ long-standing determination to retain the business of large retailers and other large trans-Pacific importers, even if it means accepting marginally profitable or even loss making cargo, is slamming head on into the reality of the US trucking market.

A company agrees to pay a premium to guarantee same-day delivery. After the truck breaks down, service becomes next-day delivery. Is there recourse?

There are many startups out there already offering different value propositions to the logistics industry and its participants. And although they all have a clear unique selling proposition, not all of them will be successful. Simon-Kucher has evaluated the most important factors that will determine whether or not these startups will be successful in the long run.

The delays at the Port of Prince Rupert, and to a lesser degree, Port of Vancover, raise a compelling question: can Canadian marine terminals and railroads handle the growing volumes efficiently, especially during peak periods, with reliabilty?

How can one recognize business challenges that can be tackled with predictive analytics?

The term "artificial intelligence" (AI) conjures up images of futuristic, all-knowing, all-powerful artificial beings. So far, however, in global trade AI already is being put to work in a much more prosaic, less-perilous arena.

In launching a joint venture company with IBM, with whom it has had a relationship going back to the 1950s, Maersk would seem to be in the pole position to exploit blockchain’s potential in container shipping. And that move also highlights the factor that is at the core of what happens next in the industry.

Goods of almost any description have more than an intrinsic worth; they also have time-and-place value. Transportation serves to help realize that time-and-place value.

Blockchain interest, to a considerable degree, has been buoyed by bitcoin — the most famous application of blockchain. But it is important to consider what will happen to blockchain interest if the bitcoin bubble bursts.

US shippers, truckers, and intermediaries finally have secured a federal hearing on their effort to make it easier for them to challenge port congestion-related fees that are not their fault. Even so, aside from complexity and little middle ground, there are other reasons for shippers to be skeptical of any dramatic, federal, regulatory action.

A writer poses a question regarding a shipment made on what he classified as "on an ex-works basis."

The North American supply chain is now coping with inadequate truck capacity. The question is whether the driver shortage is just a typical, cyclical event or a fundamental, structural change in the US trucking sector.

A key component to promoting trade facilitation is having a single window. Simultaneous submission of customs and other government agency information enables the approving officials to clear an entry in a shorter time frame.

Besides the usual rate issues, what other variables in 2018 will affect shippers and carriers?