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News And Update

News And Update

Trucking Association of New York Slams NYC’s revived Traffic Tolls Proposal 

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New York Governor Hochul’s announcement to move forward with a revised congestion pricing toll plan seems to affect the trucking operators unfairly. In this recent announcement by the governor, here are the following key points to ponder:  Revised Toll Plan:  But it is seen that the revised toll plans will draw the ire of the Trucking Association of New York (TANY). The association says that the revised toll plan ignores the critical role of trucks in New York’s economy. They also argue that the frequent tolling is likely to increase costs for trucking operators and consumers, disrupting the supply chain. The revised toll which has certain goals for the betterment of the city is also likely to unfairly burden the truckers who transport 90% of goods in the state.  In regard to considering all the cons of the revised toll plans, the TANY filed a federal lawsuit earlier this year to stop the plan and intended to pursue legal remedies for the same.  But what led to initiating such changes? Well, Hochul said that the plan will resume its implementation in January as it was paused after the TANY file the federal lawsuit against the Metropolitan Transportation Authority (MTA).   The plan has some major goals and objectives to achieve:  TANY President Kenra Hems criticized the revised congestion pricing plan, stating that while political leaders may say it addresses the cost of living, but the reality is far away. This revised plan is likely to remain harmful to the economy and will disrupt supply chains.   She emphasized saying that the TANY will continue to fight against the plan.  “The core problem hasn’t changed,” Hems added. “The disproportionate pricing structure still unfairly targets trucking operators, imposing a regulatory and financial burden on an industry that moves 90% of New York State’s goods.  In another statement, He said TANY will keep following through on its previously filed lawsuit to try to stop the revised toll plan from moving forward. 

Trump Win
News And Update

How a Trump Win Could Boost the Shipping & Logistics Sectors  

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Donald Trump has again made his place as the second president of the United States of America, defeating Kamla Harris. This is said to be the biggest rift in recent years. This change does not untouched the shipping and logistic sector. Presidential powers resting in Donald Trump’s hand are going to change the aspect of U.S. trade and supply chain.    Increased U.S.-Asia Trade   With Trump back in office, trade policies may change to enhance imports from Asia. His administration would likely restore some tariffs placed on countries outside of Asia, where an increased demand for imports from Asia may be seen. The shipping traffic from the trans-Pacific route would be higher, and shipping lines transporting cargo along that route would find themselves in a busier, therefore a more lucrative environment, moving electronics, textiles, and machinery from Asian manufacturing hubs to the United States.  Lower Fuel Expenses in Transportation   The Trump administration is reportedly pro-fossil fuels, which are synonyms for oil and gas. If his policies result in cheaper domestic fuel prices, transportation will be one of the biggest beneficiaries since fuel costs make up the largest portion of a maritime and logistics company’s cost buckets. Lower transportation expenses translate to lower transport prices and better profit margins along the entire transport chain.   Stronger U.S. Infrastructure for Smoother Logistics   Improvement of the country’s infrastructure should remain among the issues on the front burner of his campaign, around the ports, highways, and freight systems. For instance, better infrastructure at major US ports will enable quicker cargo handling with streamlined processes and reduced congestion to benefit international trade in several ways, such as reduced waiting times and making goods travel faster through the United States, thus assisting shipping firms and their clients.   Changes in Supply Chains   Trump’s policies of encouraging American manufacturing and reducing reliance on overseas production will reshape supply chains. Such reshaping would probably involve a combination of domestic and international logistics. This might mean that some industries try to source all or most of their parts within the United States. However, some industries rely on international suppliers for product differentiation. All these changes will increase demand for logistics services on both domestic and international routes, creating new opportunities for shippers.   The Future   Overall, many of Trump’s policies will lead to a more acceptable climate regarding the shipping and logistics industry. This will be driven by higher U.S.-Asia trade, reduction of fuel expenses, improvement in infrastructure, and shifting supply chains. This will lead to a stronger and more cost-effective shipping and logistics sector in the years to come. 

Risks Facing Supply Chains
News And Update

Top 7 Global Risks Facing Supply Chains Today  

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The Global supply chain is facing huge risks, with disruptions in many sectors driven by various factors. These undeniable risks are becoming more universal in today’s unstable world, and here are 7 most critical threats:   1. Climate Change   Climate change means more frequent and strong occurrences of extreme weather, floods, and wildfires. These also bring about damage to roads, ports, and warehouses, leading to delays in shipping and high, unplanned costs. The new UN report shows that disasters caused by climate have risen five-fold in the last 50 years, strongly impacting logistics for all the world’s regions. Flooding in Europe and wildfires in the U.S. have lately disrupted supply lines across both regions and have cost millions in lost business.  2. Geopolitical Tension   Political conflicts are another major threat. The ongoing war between Russia and Ukraine has grossly impacted the free movement of commodities, such as grains and energy. The 70% importation of natural gas from Russia to Europe has weighed a blow on countries that use fuel-based products. Trade wars and sanctions between powerful countries, like the U.S.-China dispute, also create barriers to smooth international trade.   3. Cyberattacks Cyber threats and data breaches seem to haunt modern supply chains. Cyberattacks increased by 50% in the logistics industry during 2023 compared with the previous year, as reported by a survey conducted by the World Economic Forum. In case of such attacks, the whole network of companies can be crippled. Operations and flows of goods across borders come to a halt.   4. Material Shortages   Material shortages have become a critical issue for industries depending on specific resources. The shortage of semiconductors that began in 2021 continues to plague the automobile and electronics industries, with full recovery unlikely until late 2024. The U.S. government has already spent $52 billion ramping up homegrown chip production through the CHIPS Act. However, the effects of the shortage are still being felt, leading to production delays and higher costs for businesses.   5. Labour Shortages Labor shortages, especially in the transportation and logistics sectors, have further strained supply chains. According to the International Road Transport Union, there are currently shortages of 2.6 million truck drivers globally. This has greatly delayed deliveries to the ports and created large backlogs in some firms’ supply chains. This shortage further pushes the finance of companies largely dependent on transport, hence encouraging companies to invest in automation and better working conditions.  6. Energy Market Instability  Global energy prices have experienced unprecedented spikes lately due to geopolitical factors. It was the Russia-Ukraine conflict that pushed oil above the $100 threshold in 2022, making freight and production very expensive. These high energy prices force companies to seek alternative sources of energy and to explore renewable options to depend less on their fossil counterparts.  7. Technological Disruptions   While technology is at the heart of supply chain efficiency, it also brings new risks in its wake. An automated system malfunction at a few key logistics hubs in 2023 resulted in week-long delays in shipments across the globe. As businesses keep investing in AI and automation systems, it becomes essential that such systems be reliable and have contingency plans in place. The growing use of technology has highlighted the importance of balancing innovation with operational stability. Conclusion The global supply chain is facing complex risks that require businesses to be more agile and prepared for future disruptions. Climate change, geopolitical tensions, cyberattacks, and labor shortages all pose huge threats.   Logistic companies should invest in resilient strategies and technologies to remain competitive. By staying ahead of these challenges, businesses can navigate the ever-changing global landscape and reduce any disruptions to their supply chain.  

US-PORT-STRIKE
News And Update

US Port Strike: A New Challenge for Global Supply Chains 

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In the recent US port strike, nearly 50,000 members of the ILA (International Longshoremen’s Association) stood against the nation’s East and Gulf Coast ports leading to a work stoppage of imports and exports. The strike began on 1st Oct, Tuesday midnight as a reaction to the just-expired master contract with the United States Maritime Alliance or USMX. The ILA was demanding fair contracts for a long time, which the USMX kept denying.   The impact of such strikes is likely to raise concerns as to how long these will last and the damage they will bring about. The strike has already led to disruptions in supply chain and logistics as it stopped the flow of a variety of goods over the docks covering major cargo ports.   The Disruptions that Seem Inevitable Port operators have been taking precautions by extending hours and implementing measures, especially for refrigerated shipments to minimize cargo losses. Meanwhile, the ocean carriers have added surcharges on shipments to East Coast ports. According to Judah Levine, Head of Research at Freightos Group, the air cargo rates between China and North America have also been elevated to peak season levels. This is largely due to high e-commerce volumes.   The suppliers in North America have been facing a rise in capacity with the lowest demands in the past eight months. Counting in Asia and Europe, these have been experiencing sharp declines in purchasing and manufacturing recessions. As per the August reports, the global demand for key raw materials has been seen dropping at the fastest rate in 2024.   As the regular peak season increases in October, the air capacity and rates will face additional pressure, and the strike will worsen this.  Facing the Logistical Challenge  If the strike continues for long, it could have some serious consequences for the logistics companies. Those who have already moved their peak season shipments forward are little secure but for those who haven’t may need to look to air freight to move their inventory. But this alternative comes with high costs involved.   To this, Judah adds- “Air freight is often a reactionary option during supply chain disruptions, particularly for shippers that wouldn’t normally consider it, and this current environment could make air freight capacity even more scarce and expensive.”  But, with the peak season already in full swing, companies may find it hard to secure air capacities and the heavy costs associated.   Can the Government Intervene? Remains a Question  The possibility of government intervention remains a question as there are no signs to see that the striker might be avoided. This is because neither of the parties has had any direct negotiations since June and did not agree on any terms. While the US President Joe Biden can use his power to suspend the strike for 80 days, but there seems little indication of this to happen.  Seeing the economic and political implications of the prolonged strike, the government can only ensure that it does not last long.  Festive Supply Chains in Jeopardy  The strike has posed a serious jeopardy to the festive seasons that are fast approaching. With holiday seasons and Christmas around the corner, the retailers largely depend on smooth logistics to keep their shelves stocked up. The ongoing strike has led to unfulfilled orders, shortages and disruptions in supply chains. Some seasonal goods imported from Asia may not arrive in time this Christmas which raises concerns. As a result, the retailers that did not prepare by stockpiling will struggle.   Popular Christmas gifts will have higher prices due to the strike as shipping costs will increase and goods will become scarcer. Moreover, e-commerce orders will face longer delays leaving customers frustrated. The retailers who relied on just-in-time (JIT) delivery systems will potentially miss out on their key sales opportunities due to ongoing disruptions.  What to Learn from Past Supply Chain Challenges?  The Baltimore bridge collapse earlier this year highlighted logistics disruptions, but the current East Coast strike poses much bigger challenges. Vessels en route may sit idle, with some cargo potentially diverted to Mexico or the Caribbean.   Experts warn the strike could cost the US economy $5 billion a day and highlight there is need for businesses to diversify supply chains. Supply chain disruptions are no longer an ‘one-off crisis’ but the ‘new normal’ for businesses. 

cargo-theft
News And Update

Cargo Theft Rises: NJ Police Bust Ring, Chicago Driver Escapes 

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Cargo theft incidents have been on the increase for a while, with another incident highlighting its growing concern in the US. In a recent incident that took place in New Jersey, the cops arrested four Philly men who tried to steal meat from a parked truck.   Another cargo theft incident took place in Chicago where the robbers tried to steal over 259 cases of electronics. Such incidents show that driver confrontations have become more frequent than ever.  Alarming Incidents Taking Place Frequently  The ongoing theft incidents in the US have alerted the cargo industry to take preventive measures. But the thieves have become cleverer than ever. The suspects are now calling in backup for large hauls, which typically means they are collaborating with more individuals to pull off large-scale criminal operations. Following are some alarming trends that are raising concerns:  NJ Cracked Down on ‘Beef Bandits’  In a recent cargo theft in New Jersey, four suspects named Shaun Coleman, 23, Salahudin Reddy, 37, Rashan Clark-Reddy and Hanif Tucker,31 were arrested. The sting was dubbed as- ‘Operation Beef Bandit’ where the four suspects were observed to occupy a parked occupied tractor trailer.   They stole boxes containing high value goods like meat, alcohol and seafood. These suspects have been involved in similar thefts over the past three years across the tri-state area- the police said in a statement. Two of these four suspects tried to ram the police car intentionally to escape from the scene. But fortunately, all four suspects got arrested.  The Chicago Theft to Wild Chase Pursuit   The act of pilferage is seen becoming common in Chicago city. This time a routine theft became a wild chase pursuit with suspects that attempted to surround the truckload. The suspects first swiped 259 cases of electronics from the parked trailer and then attempted to surround it. But fortunately, the truck driver managed to evade them as per the reports.  Such incidents highlight the increasing number of driver confrontations and raise concerns about driver safety.  How to Stay Safe?  While cargo theft incidents are becoming unstoppable, if truckers start to be vigilant, they can avoid such instances. Some of the ways to stay safe include:  It is advised to take some other preventive measures like opting for real time visibility, remote compliance monitoring and contextual intelligence.  The Way Forward  As cargo thefts only seem to get worse before they get better, it’s time we ensure to follow all security measures. From pilferage to driver confrontations, criminals are planning more aggressive ways to plan their thefts. The need of the hour is to enforce necessary laws that protect truck drivers and ensure cargo safety.  

News And Update

Freight Brokerages Achieve $1.2M+ Revenue Per Employee 

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Recent financial data has highlighted the impressive performance of freight brokerages, revealing an average gross revenue of over $1.2 million per employee. According to a comprehensive report from Brush Pass Research, the exact figure stands at $1,267,516. This data reflects the financial outcomes of the freight brokerage sector over the past year, drawn from an analysis that spans the last four quarters.  Analysis of the Data  This $1.2 million average has some very important implications. First and foremost, it is across all different sizes of brokerages. Large and small companies alike are taking down hundreds to thousands of gross revenues. It should be emphasized that these numbers are net revenue, not profit. Freight brokerages retain profit between 10 and 15%. Freight carriers take away much of this money and are left with $127,000 to $190,500 per employee.  Understanding Brokerage Operations  This impressive revenue highlights not only the growing demand for freight services but also the operational efficiencies brokerages are employing to thrive in a competitive market. There is a significant need for everyone in the industry to understand these numbers. Above revenue proves that operations are working properly and that relationships with the carriers are good.   Additionally, brokerages that make use of technology and automation can gain an edge. Improvement in overall efficiency brings higher profits and enables companies to quickly respond to market changes.   Future Scenarios  Looking forward to the fact that the freight brokerage sector will continue its growth in upcoming prospects. Reports mentioned a Compound Annual Growth Rate (CAGR) of above 5% for the following years. Its growth is because of increased requirements for e-commerce logistics and advancement in the technology line. Companies will be more efficient by investing in tools like artificial intelligence and data analytics and becoming one step ahead of their customers.   Additionally, customers also demand more transparency of logistics. They demand tracking real-time shipments. Only those brokerages which can deliver such features will be ahead in the market. Blockchain technology can also enhance security and transparency in transactions as well.  Looking Ahead  In conclusion, the freight brokerage sector is thriving, with an average gross revenue per employee of $1,267,516, according to Brush Pass Research. While this figure highlights robust financial performance, it is essential to remember that it represents gross revenue, not profit. As the industry continues to evolve, efficiency and productivity will remain crucial. Smaller brokerages, in particular, must focus on optimizing their operations to compete effectively.  The future looks promising for freight brokerages that embrace technology and automation. By doing so, they can not only enhance their profitability but also improve customer satisfaction. With projected growth on the horizon, the freight brokerage industry is set to continue its upward trajectory and adapt to the changing landscape.  Sources: 

News And Update

How the Empty Container Surge at the Port of LA Affects Supply Chains and Freight 

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The Port of LA is experiencing a high surge in empty shipping containers, negatively impacting supply chains and freight operations. The port of Los Angeles, the most prominent and busiest port in the United States of America, is struggling to maintain its efficacy. As of late 2024, the Port of LA has reported an unprecedented increase in the number of empty containers accumulating at its facilities. This blockage is a combined result of logistical inefficiencies and shifting international trade patterns.  According to the port of Los Angeles, it went through the busiest month of the year in April, which marked a 61% surge of shipping containers from last year, blocking the efficient flow of the supply chain. Regardless of these facts, the port processed 219,158 empty containers in 2023, and these numbers are set to rise by the end of 2024.  This accumulation of empty containers is causing a bottleneck in the supply chain’s effectiveness. Companies such as retail and manufacturing where time is crucial suffer greatly because of high demand and low supply.   What is the Current Situation? The movement of international and domesticized containers from Asia to South California is the main reason for vast traffic to the port. Johnathan Lee, CEO of Global Freight Solutions, noted, “The imbalance of empty containers is creating significant disruptions. We’re seeing shipment delays, increased storage fees, and higher costs due to inefficient use of port resources. It’s a challenge that impacts the entire supply chain ecosystem.”  The freight expert, Jhon Kingston, the founder of Freight Waves, also stated that increasing instability in the trucking industry is the leading cause of obstruction of empty containers in LA Port.   According to the Port Authority, improvement plans include focusing on coordinated operations and increasing the storage capacity for empty containers. There is also a streak of conversation with international shipping partners to work out ways of improving the return logistics of containers to minimize turnarounds.  Looking Ahead  With the Port of Los Angeles still facing an unusual level of empty containers, industry analysts say that early 2025 will bring some improvement. A $250 million infrastructure upgrade by the Port Authority by the end of late 2025 will yield up to 25% higher operational efficiency and an average cutback of unloading times by 15%.   This infrastructural advancement should make the number of empty containers in the port about 30% less than it is today. Despite these projected gains, there may still be short-term supply chain delays.  According to the Institute for Supply Management, supply chain delays could shrink by 40% over the coming year as port efficiency improves. Recovery in the longer term will depend upon further investments in logistics technology and infrastructure, as well as practical international cooperation to manage container flows to prevent future disruptions.  It is believed that September won’t be as busy as the time before August. Situations will become normal, and the number of empty containers will diminish by a tremendous amount.  Sources:

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