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Technology is Essential in Navigating Peak Shipping Season

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As crazy as it may sound, planning for peak shipping season has already begun! In the U.S., peak shipping season extends from August until January of the following year. Peak shipping season can be broken down into two spikes in demand. The first occurs from August until October. This significant increase can be largely attributed to the holidays occurring in the next few months like Thanksgiving and Christmas. After a brief lull towards the end of October, a second spike carries the trend from November until the end of January.

The more customers shop online, the more expensive the season becomes for shippers. The pandemic shifted the mindset of many consumers – instead of placing an online order every once in a while, they started to depend on e-commerce. As a result, this peak shipping season is projected to be more expensive and busy for shippers than 2020.

Both FedEx and UPS are increasing their additional handling surcharges as a result of high order volumes and tight capacity. Both increases will start over the summer and last through peak shipping season. While raising surcharges is a start to handling peak shipping season, technology is providing a larger and more sustainable answer.

How Technology and Automation Can Help

In order to keep up with the steady increase in order volume, FedEx is working to increase its capacity by building out its infrastructure. The expansion will include 16 new automated facilities that will be finished just in time for peak shipping season. They already have over 140 facilities that are fully automated! FedEx’s automated facilities use advanced technology to handle, sort and scan packages. Automating traditionally manual processes saves them time and money without the added stress of hiring additional people.

For shippers and other peak season stakeholders, integrating technology into their traditionally manual logistics processes can feel overwhelming. A great way to start is by implementing a transportation management system (TMS). By leveraging a TMS, shippers can rate, book and track their shipments on a single platform where they can collaborate with carriers. 

A TMS that integrates directly with a visibility platform is especially important. Navigating an increase in order volume while keeping up with growing customer expectations can be difficult. With a visibility platform, shippers can view each aspect of their supply chain in detail as moves are planned, alerts are sent and real-time adjustments are made. Visibility platforms collect data and use it to create actionable analytics. By leveraging a visibility platform that integrates seamlessly with their TMS, shippers can keep customers informed while continuously improving their logistics operation!

On Demand Trucking - Kuebix

Status of On-Demand Trucking

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On-demand trucking is the process of finding capacity for shipments “on-demand,” rather than through negotiated agreements ahead of time. When a shipper leverages a load matching platform to find last minute truckload rates, for example, that is what is known as on-demand trucking. This type of trucking helps carriers fill empty miles and shippers find the trucks they need when their regular lanes don’t suffice.

The U.S. transportation market is quickly ramping up technology-enhanced options to move products, goods and people in an effort to keep up with demand. Consumers are accustomed to free two-day shipping and detailed tracking information to follow their package every step of the way.

These expectations are becoming increasingly hard to reach as Covid-19 disrupts supply chains throughout the world. Businesses are struggling to adapt to new rules and regulations, shipping delays and material shortages. Consumers are stocking up on essential products like toilet paper, hand sanitizer and flour, making it increasingly difficult for stores to keep their shelves stocked.

Any business looking to fulfil these requirements and navigate through changes brought on by the pandemic need to outperform their traditional operations. On-demand trucking is a viable solution to meet all of these needs. Trucking companies can use it to find additional product that needs to be moved in the area to eliminate wasteful empty backhaul and businesses can find reliable coverage when they need it most. It’s a win for everyone involved!

What’s driving the growth of U.S. on-demand trucking?

It’s no wonder there’s such a big demand for on-demand trucking. Unpredictable market conditions, changing import/export levels and new technology have all combined to speed the shift to on-demand trucking:

  • •Volatile market conditions. In recent years, lack of trucks and a scarcity of drivers-for-hire have combined with high freight demand to severely restrict U.S. trucking capacity/availability.
  • •Electronic logging devices (ELDs). Federally mandated ELDs closely scrutinize and monitor drivers to be sure they follow hours of service (HOS) laws, which can impact driver productivity.
  • •Rising spot and contract rates. Trucking rates continue to rise while capacity remains tight, driving some shippers to move portions of their freight to intermodal transportation or “rail.”
  • •Trucking apps. New apps are taking center stage: Uber Freight’s app operates much like its ride-sharing service. Both Convoy and Amazon have apps that target on-demand freight, as well, matching trucking companies with shippers who have freight that needs to move. This “at-your-fingertips” flexibility means shippers have flexible options for meeting their trucking needs; carriers can choose higher- and faster-paying freight.
  • •Rising interest rates. Higher rates mean higher costs for transporting goods, so shippers are best served by choosing their best transportation options.

How does on-demand trucking work?

On-demand trucking has a bright future for freight and transportation management and load matching:

  • •Provides a broad network of real-time carriers. This is not the old days when you had to contract with carriers to lock in capacity months or even years in advance for every single one of your lanes. On-demand trucking apps and spot markets let shippers connect with thousands of independent “owner-operator” drivers with empty truck space to sell in real-time to cover last minute or unusual loads.
  • •Leverages technology to handle settlements. Real-time freight visibility is important, of course, but it’s just as important to ensure driver certification and timely, accurate freight pick-up and delivery and settlement processing. Having a transportation management system (TMS) connect directly to the asset (driver) through a platform that provides access to drivers and ensures drivers’ certification and compliance–as well as manages the settlement through an Uber-like payment configuration–can be a great way to simplify and streamline your business.
  • •Focuses on getting shippers normal or “specialized” capacity on a transactional basis. Unlike dealing with large, asset-based carriers, the Uberization of freight means shippers can connect with drivers who offer capacity and even specialized freight treatment—like refrigeration–on back-hauls, making it a win-win for shippers and carriers.

On-demand trucking offers shippers a proven and flexible way of conducting their business, with real-time visibility over truck assets and a simpler way to access settlement, liability and other functions via a single interface. Read how recent innovations in web service technology mean shippers can get direct carrier rates, POD and BOL images, online shipment scheduling, and real-time status updates from all carriers on one platform.

Thank A Trucker Blog Post Kuebix

Trucking Companies Continue Service During Covid-19 – #ThankATrucker

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Truck drivers perform an essential service to our country with every trip they take, especially during times of crisis like what’s happening now. It’s paramount that we take a moment to #ThankATrucker for everything they do to keep our country and economy on its feet during Covid-19.

Trucking is the Backbone of the U.S. Economy

There are an estimated 3.5 million professional truck drivers populating the roads and delivering 71.4% of the country’s total freight tonnage. They are responsible for the consistent flow of food, water, medical supplies and other necessities in stores worldwide. More than 80% of communities in the United States depend on truck drivers to deliver all of their goods. Their job demands an extensive number of hours on the road, time away from family and trading in home-cooked meals for whatever fast food is available at rest stops. Being a truck driver is a serious commitment and every sacrifice they make ensures life continues normally for the rest of the country.

The rapid spread of COVID-19 has shifted the spotlight onto these hardworking individuals as supply chains throughout the country are struggling to adjust. Losses for U.S. retailers from production and transportation shortages from March 9 to April 20 are estimated to amount to $700 million. Businesses of all sizes that have been deemed non-essential have halted in-store operations entirely while manufacturers of household products like toilet paper and disinfectant wipes are experiencing a next-level increase in demand.

How Trucking Companies are Going Above and Beyond to Handle the Crisis

 Estes Express Lines

Virginia Governor Ralph Northam announced a partnership with Estes Express Lines to ship 56,000 meals to food banks throughout the state. Estes has also teamed up with the Virginia Department of Emergency Management to aid in the distribution of personal protective equipment to hospitals and first responders.

 Paper Transport Inc.

Truckload carrier Paper Transport, Inc. announced a minimum charitable pledge of $100,000 to the support of Covid-19 victims with hopes of either doubling or tripling it over the next month. With news of how the virus has affected communities and schools continuing to spread, the ownership team at Paper Transport decided to pledge to donate half of their profits during the month of April.

J.B. Hunt Transport

Trucking company J.B. Hunt is providing a one-time $500 bonus for its drivers and personnel at field operations and customer facilities as a result of their hard work and dedication. CEO John Roberts said “All of our employees have gone above and beyond the call to action during this crisis. They have kept pace with the evolving supply chain needs of our customers in the face of great uncertainty.”

UPS

UPS is working directly with the Federal Emergency Management Agency (FEMA) to distribute N95 masks and gloves for healthcare workers. FEMA will utilize UPS’s air hub in Louisville, Kentucky to stage shipments from overseas. CEO David Abney stated that “UPS Healthcare has the expertise and experience to move vital, life-saving medicines, medical devices, diagnostic specimens and supplies everywhere they are needed.” UPS is also working with LestGetChecked, Henry Schein and Pharmatech.

Tyson Foods

Earlier this week, Tyson Foods announced that they will be giving the 116,000 truck drivers and frontline workers responsible for keeping their food distribution running smoothly a $500 bonus. Tyson also changed part of their meat production to instead focus on retail packaging to adjust to the heightened demand for frozen goods. “Our team members are leading the charge to continue providing food to the nation. The bonuses are another way we can say ‘thank you’ for their efforts,” said CEO Noel White.

How Kuebix is Helping Shippers Keep Their Supply Chains Moving

Kuebix understands the importance of keeping supply chains moving in the midst of the Covid-19 pandemic. To help companies battle through Covid-19, Kuebix is offering 60-days free of our award-winning Kuebix Business Pro TMS. Our cloud-based TMS technology can help shippers expand capacity and effectively manage their supply chains remotely.

Kuebix Carrier Crisis Courting

A Modern Dating Game: Shippers are Courting Truckers

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In today’s market, shippers have to “court” carriers if they want to get capacity. They can do this by making sure turn-around times are fast, drivers are well-paid and paid on time and that processes like tendering flow smoothly. Some trucking companies are refusing to service particular markets. Others are refusing to pick up loads for shippers they’ve had trouble with in the past.

What can shippers do to “court” truckers?

Offer better pay and perks to entice drivers – At the Transportation and Logistics Council’s Annual Conference, shippers discussed what they could do to make themselves more competitive in the race to secure capacity for freight. A key suggestion was to compensate truckers with higher wages to bring in more capacity. Other ideas included providing break rooms, bathrooms, free coffee, showers and more – in short, providing things to keep drivers happy while treating them with respect. The goal being that happy drivers will increase the likelihood of repeat capacity.

Improve operations to reduce turn-around times – With electronic logging devices (ELDs) accurately measuring the amount of time a driver is on the road, shippers need to focus on keeping truckers in the driver’s seat. Dock scheduling solutions allow carriers and suppliers to book appointments online and monitor statuses in real time, leveling the flow of activity in and out of the yard to decrease congestion and help truckers get back on the road as soon as possible. Ensuring the appropriate number of personnel are available for loading or unloading also allows drivers to get their trucks turned around faster. When wheels turn, drivers make money. If shippers want capacity, they are obligated to watch the clock and not cause delays for drivers.

Streamline processes to strengthen relationships – By tendering loads with plenty of lead time, shippers can give carriers the time they need to best plan routes and ensure driver availability. Shippers can also offer more flexible requests, such as wider shipping windows. This flexibility helps carriers offer the best lane and service for the job. Making sure that payments are made on-time is also essential for maintaining a strong reputation and good carrier relationships. When shippers improve these processes they make it easier for carriers to “sell” the shipper to their drivers, which increases the likelihood that drivers will want to do business with the shipper again.

In the past, only shippers kept scorecards on their carriers to measure performance. Now, carriers are also keeping track of shippers’ behaviors; things like ease-of-pick up, idling times, wait times, billing/payment accuracies, etc. In order to secure reliable capacity, shippers need to give their carriers the best working experience they can.

Changing all of these behaviors might seem like a daunting task, but with the help of a transportation management system like Kuebix TMS, these changes can be put into place with ease. Kuebix TMS enables shippers to compare rates side-by-side so that the lowest rate can be booked directly with the carrier without the need of a middle-man complicating the process. Kuebix also offers Dock Scheduling, Carrier Relationship Management and other programs and features which improve tracking and visibility to effectively communicate with carriers. By “courting” carriers with these operational and technical improvements, shippers can rely on capacity from carriers who are happy to handle their freight!

Kuebix TMS - Cargo Theft Claims Management

Cargo Thieves’ New Strategy Hitting Shippers Hard

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Cargo theft continues to be a pain-point for shippers in every industry as metrics from Q1 of 2018 roll in. Though technically the overall total of cargo related thefts has decreased 23% year-over-year in North America (CargoNet), it is presumed that many more cargo thefts are going unreported by shippers. All cargo theft numbers are voluntarily reported, meaning operations and finance teams who are already scrambling to ascertain their losses may be neglecting to report the theft to the proper authorities. Potentially more worryingly, shippers may not be realizing the extent of their missing products because of inadequate claims management.

Thieves targeting trucks in transit are using a new strategy to carry out their crimes. As opposed to stealing entire loads or many pallets of product, thieves are being more selective in what they are taking and only lifting a small amount of product at a time. Besides the obvious benefit of increased speed to avoid detection, thieves may also be leaving shippers unaware that there was a theft at all. Pallets go missing all the time for perfectly legitimate reasons that can be tracked down, but shippers without a system to track their historical claims may not be aware to what extent they have been targeted by thieves.

Food and Beverage remains the commodity with the highest losses, closely followed by Household Items and Electronics. In the first quarter of 2017, the average value of a reported cargo theft was $164,185. In the first quarter of 2018, the average value of reported goods stolen rested at $90,883. On first glance, this seems like a success story for law enforcement, but it could also paint the picture that pre-meditated theft sizes are actually dropping. Without ascertaining the accurate number of cargo thefts, it will be impossible to determine whether the number of individual events is rising correspondingly.

According to SensiGuard, 92% of large-scale incidents occur in unsecured parking areas. Other locations reported include warehouses and secured parking lots. Often, determining the exact location of the incident, if it is even noticed by the driver, is difficult. Drivers often travel hundreds of miles before unloading, and if they do not do a thorough walk-around of their vehicle at each stop, determining the exact location of the theft becomes more and more unlikely. The best way to catch a theft early is for drivers to remain vigilant about checking their trailer’s seal or lock.

3 Steps to Prevent Cargo Theft

  1. Check it – Drivers should thoroughly check their trailers’ seals and locks after leaving their truck even for a short period
  2. Report it – Notify the proper authorities if cargo has been stolen to encourage appropriate action be taken on thieves
  3. Track it – Make sure to track all historical claims to determine the scope and pattern of incidents, whether benign or malicious

Many shippers lack a process to track and manage their claims with carriers when items don’t arrive at their destinations as planned. This causes a lot of confusion and lost revenue if managed incorrectly, especially if those items have actually been stolen and their value can’t be recouped. By leveraging a Claims Management system like Kuebix TMS’s, shippers can tie claim information directly to the shipment to make tracking and research easy. By maintaining historical claim details no claim goes overlooked and patterns and totals can be discovered, making a real impact to a company’s bottom line.

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