In the 1980s, the wind of change blew through the transportation industry in the form of deregulation. Thirty-five years later, more deregulatory moves are afoot.
Mitch Mac Donald has more than 30 years of experience in both the newspaper and magazine businesses. He has covered the logistics and supply chain fields since 1988. Twice named one of the Top 10 Business Journalists in the U.S., he has served in a multitude of editorial and publishing roles. The leading force behind the launch of Supply Chain Management Review, he was that brand's founding publisher and editorial director from 1997 to 2000. Additionally, he has served as news editor, chief editor, publisher and editorial director of Logistics Management, as well as publisher of Modern Materials Handling. Mitch is also the president and CEO of Agile Business Media, LLC, the parent company of DC VELOCITY and CSCMP's Supply Chain Quarterly.
Consider the extent to which your world has changed in the past 35 years. In 1980, you still did most of your banking with a teller, not an automated teller machine, and you certainly didn't do it online. In fact, you didn't even know what "online" meant—to say nothing of terms like "Internet" and "World Wide Web." Your desk didn't have a computer. Your phone was attached to the wall by a cord. If you came across a person with a cell phone, that person was no doubt quite wealthy and had the oversized biceps required to lug around one of those brick-sized "handhelds." Forget e-mail; facsimile machines were all the rage.
In the logistics world, pen and paper ruled. The emerging game-changing technology was the bar code. And it was a wonder indeed: Just point a beam of light at a package's shipping label and, boom, you knew everything about its contents, origin, and destination.
Logistics operations, though, were about to change and in a very big way, especially with respect to freight transportation. In 1980, Congress largely deregulated the trucking business with the Motor Carrier Act. Less than 24 months later, the rail industry was deregulated via the Staggers Rail Act.
The debate over the merits of deregulation went on for years. In the early days, opponents were both numerous and vocal. They decried the adverse effects on their companies and the economy at large, while bemoaning the loss of the price protection they had enjoyed under the Interstate Commerce Commission. They weren't entirely off base: Freeing motor carriers to compete on price and service resulted in an astounding number of casualties. Consider that of the top 200 motor carriers in the U.S. in 1980 (based on revenue), just five were still in business 15 years later.
Yet as time passed, the opposition voices grew fainter. Today, most acknowledge that deregulation was a very good thing. More motor carriers succeeded than failed. The rail industry consolidated and got itself back on solid financial ground. Shippers saw rates stabilize and service improve.
Still, even all these years later, there is more that can be done. Both the trucking and rail industries remain hobbled by regulations that, while profoundly less onerous than their pre-1980 counterparts, still keep carriers from operating at peak efficiency.
Two initiatives aimed at remedying the problem have been in the news lately. First, on June 10, the House of Representatives passed a $55.3 billion appropriations bill that includes language allowing twin 33-foot trailers to operate nationwide on the Interstate Highway System. Although the measure must still be reconciled with a Senate version of the bill, the momentum favors advocates of wider use of the twins, often referred to as "pups."
On the same day the House passed its version of the appropriations bill, the Transportation Research Board (TRB) issued a report, sponsored by the Department of Transportation, finding that policies designed to protect so-called captive rail shippers—businesses that lack economic alternatives to the railroads or in some cases, a single railroad—are "not working," and that current dispute resolution procedures must be reformed so shippers have adequate redress for their complaints over rate gouging. The TRB recommends development of a new formula that compares the disputed rates with those charged in competitive rail markets for comparable shipments. This would enable the Surface Transportation Board, the federal agency that regulates railroads, to more efficiently determine if a shipper paying an unusually high rate is entitled to some form of relief, according to the report.
While neither of these initiatives will unleash the gale force-level winds of change brought on by deregulation in the 1980s, they nonetheless bear watching. They are, at minimum, a pleasant and refreshing breeze to savor in this summer of 2015.
Online merchants should consider seven key factors about American consumers in order to optimize their sales and operations this holiday season, according to a report from DHL eCommerce.
First, many of the most powerful sales platforms are marketplaces. With nearly universal appeal, 99% of U.S. shoppers buy from marketplaces, ranked in popularity from Amazon (92%) to Walmart (68%), eBay (47%), Temu (32%), Etsy (28%), and Shein (21%).
Second, they use them often, with 61% of American shoppers buying online at least once a week. Among the most popular items are online clothing and footwear (63%), followed by consumer electronics (33%) and health supplements (30%).
Third, delivery is a crucial aspect of making the sale. Fully 94% of U.S. shoppers say delivery options influence where they shop online, and 45% of consumers abandon their baskets if their preferred delivery option is not offered.
That finding meshes with another report released this week, as a white paper from FedEx Corp. and Morning Consult said that 75% of consumers prioritize free shipping over fast shipping. Over half of those surveyed (57%) prioritize free shipping when making an online purchase, even more than finding the best prices (54%). In fact, 81% of shoppers are willing to increase their spending to meet a retailer’s free shipping threshold, FedEx said.
In additional findings from DHL, the Weston, Florida-based company found:
43% of Americans have an online shopping subscription, with pet food subscriptions being particularly popular (44% compared to 25% globally). Social Media Influence:
61% of shoppers use social media for shopping inspiration, and 26% have made a purchase directly on a social platform.
37% of Americans buy from online retailers in other countries, with 70% doing so at least once a month. Of the 49% of Americans who buy from abroad, most shop from China (64%), followed by the U.K. (29%), France (23%), Canada (15%), and Germany (13%).
While 58% of shoppers say sustainability is important, they are not necessarily willing to pay more for sustainable delivery options.
Schneider says its FreightPower platform now offers owner-operators significantly more access to Schneider’s range of freight options. That can help drivers to generate revenue and strengthen their business through: increased access to freight, high drop and hook rates of over 95% of loads, and a trip planning feature that calculates road miles.
“Collaborating with owner-operators is an important component in the success of our business and the reliable service we can provide customers, which is why the network has grown tremendously in the last 25 years,” Schneider Senior Vice President and General Manager of Truckload and Mexico John Bozec said in a release. "We want to invest in tools that support owner-operators in running and growing their businesses. With Schneider FreightPower, they gain access to better load management, increasing their productivity and revenue potential.”
Terms of the acquisition were not disclosed, but Mode Global said it will now assume Jillamy's comprehensive logistics and freight management solutions, while Jillamy's warehousing, packaging and fulfillment services remain unchanged. Under the agreement, Mode Global will gain more than 200 employees and add facilities in Pennsylvania, Arizona, Florida, Texas, Illinois, South Carolina, Maryland, and Ontario to its existing national footprint.
Chalfont, Pennsylvania-based Jillamy calls itself a 3PL provider with expertise in international freight, intermodal, less than truckload (LTL), consolidation, over the road truckload, partials, expedited, and air freight.
"We are excited to welcome the Jillamy freight team into the Mode Global family," Lance Malesh, Mode’s president and CEO, said in a release. "This acquisition represents a significant step forward in our growth strategy and aligns perfectly with Mode's strategic vision to expand our footprint, ensuring we remain at the forefront of the logistics industry. Joining forces with Jillamy enhances our service portfolio and provides our clients with more comprehensive and efficient logistics solutions."
In addition to its flagship Clorox bleach product, Oakland, California-based Clorox manages a diverse catalog of brands including Hidden Valley Ranch, Glad, Pine-Sol, Burt’s Bees, Kingsford, Scoop Away, Fresh Step, 409, Brita, Liquid Plumr, and Tilex.
British carbon emissions reduction platform provider M2030 is designed to help suppliers measure, manage and reduce carbon emissions. The new partnership aims to advance decarbonization throughout Clorox's value chain through the collection of emissions data, jointly identified and defined actions for reduction and continuous upskilling.
The program, which will record key figures on energy, will be gradually rolled out to several suppliers of the company's strategic raw materials and packaging, which collectively represents more than half of Clorox's scope 3 emissions.
M2030 enables suppliers to regularly track and share their progress with other customers using the M2030 platform. Suppliers will also be able to export relevant compatible data for submission to the Carbon Disclosure Project (CDP), a global disclosure system to manage environmental data.
"As part of Clorox's efforts to foster a cleaner world, we have a responsibility to ensure our suppliers are equipped with the capabilities necessary for forging their own sustainability journeys," said Niki King, Chief Sustainability Officer at The Clorox Company. "Climate action is a complex endeavor that requires companies to engage all parts of their supply chain in order to meaningfully reduce their environmental impact."
Supply chain risk analytics company Everstream Analytics has launched a product that can quantify the impact of leading climate indicators and project how identified risk will impact customer supply chains.
Expanding upon the weather and climate intelligence Everstream already provides, the new “Climate Risk Scores” tool enables clients to apply eight climate indicator risk projection scores to their facilities and supplier locations to forecast future climate risk and support business continuity.
The tool leverages data from the United Nations’ Intergovernmental Panel on Climate Change (IPCC) to project scores to varying locations using those eight category indicators: tropical cyclone, river flood, sea level rise, heat, fire weather, cold, drought and precipitation.
The Climate Risk Scores capability provides indicator risk projections for key natural disaster and weather risks into 2040, 2050 and 2100, offering several forecast scenarios at each juncture. The proactive planning tool can apply these insights to an organization’s systems via APIs, to directly incorporate climate projections and risk severity levels into your action systems for smarter decisions. Climate Risk scores offer insights into how these new operations may be affected, allowing organizations to make informed decisions and mitigate risks proactively.
“As temperatures and extreme weather events around the world continue to rise, businesses can no longer ignore the impact of climate change on their operations and suppliers,” Jon Davis, Chief Meteorologist at Everstream Analytics, said in a release. “We’ve consulted with the world’s largest brands on the top risk indicators impacting their operations, and we’re thrilled to bring this industry-first capability into Explore to automate access for all our clients. With pathways ranging from low to high impact, this capability further enables organizations to grasp the full spectrum of potential outcomes in real-time, make informed decisions and proactively mitigate risks.”