Truckers answer the bell to keep the economy moving during pandemic
Essential freight needed delivery. Challenges and obstacles arose from all sides. Trucking operators responded with quiet determination—and the formidable dedication of selfless drivers—to keep goods flowing.
Gary Frantz is a contributing editor for DC Velocity and its sister publication CSCMP's Supply Chain Quarterly, and a veteran communications executive with more than 30 years of experience in the transportation and logistics industries. He's served as communications director and strategic media relations counselor for companies including XPO Logistics, Con-way, Menlo Logistics, GT Nexus, Circle International Group, and Consolidated Freightways. Gary is currently principal of GNF Communications LLC, a consultancy providing freelance writing, editorial and media strategy services. He's a proud graduate of the Journalism program at California State University–Chico.
Motor carriers have been whipsawed by the pandemic. Yet through perseverance, grit, and savvy, they have managed to keep the trucks running and employees safe, making essential deliveries to support millions of stay-at-home families and an economy struggling to find new footing.
Dave Bates, senior vice president of operations for Thomasville, North Carolina-based Old Dominion Freight Line (ODFL), has dealt with hurricanes, floods, tornadoes, strikes, recessions, and numerous other disruptions during his 33 years in the trucking industry. “This is by far the most challenging environment we have ever had to operate in,” he observes.
The less-than-truckload (LTL) carrier saw an immediate 20% drop in shipments when the pandemic hit in late March and raged across the country in April. May saw a nearly 17% drop, he notes. Some segments of the business fell off a cliff, while others rebounded relatively quickly. “We are heavy into food supplies and medical products as part of our normal [mix]. That picked up for us,” Bates recalls. “It was the [small business] mom-and-pop type freight where we saw it dry up because they were not able to be open.”
With the onset of the pandemic and its initial impact on volumes, ODFL, which on average handles some 120,000 LTL shipments daily, made an immediate decision to right-size its workforce. The company in April furloughed about 15% of its employees, in three phases, for 90 days—and kept their health benefits intact. “We knew at the beginning of the pandemic [the impact on the business] was not going to last long,” Bates notes. “We wanted them back, and we knew [conditions would change and] we were going to need them back at some point.”
Through it all, service levels remained consistent across ODFL’s network of 238 service centers, which, Bates says, is a testament to ODFL’s nonunion workforce. “None of this would be possible without our employees stepping up and doing what was needed. I could not be prouder of our team and what they’ve done to get us through,” he says, adding, “I hope we never have to go through this again.”
TURNING THE BUSINESS ON ITS HEAD
At Richmond, Virginia-based Estes Express Lines, a purposeful shift several years ago to increase its presence in the burgeoning e-commerce, omnichannel, and last-mile segments helped blunt the downside business impact of the pandemic, says Pat Martin, vice president of corporate sales and strategic planning.
“Delivering [e-commerce purchases] last-mile to homes and helping businesses [and fulfillment centers] restock, that’s what’s driving the market right now,” he notes. Consumers relegated to being at home have doubled down on projects, ordering “everything from basketball hoops to hot tubs, pool and yard supplies, and patio furniture—anything to fix up the house.”
Traditional business expectations and operating assumptions have been turned on their head. “Parts of the economy have never been better, and other parts have never been worse,” Martin notes. “The market is simply crazy right now; it just depends on what your mix of business is.” While Estes saw business fall off in April and May, June and July have seen a recovery, to the point where the company has begun aggressively managing capacity. “We’re not bringing on a lot of new business right now; [we’re focused on] taking care of our existing book of business,” he says.
ALL HANDS ON DECK
For Memphis, Tennessee-based FedEx Freight, at the outset of the pandemic, figuring out who was closed and who could still accept deliveries became an immediate challenge, recalls Lance Moll, senior vice president of operations. “We called 24,000 customers prior to attempting delivery to confirm whether or not they were open,” he says.
It was a critical time where essential freight still had to be delivered where it was most needed. The company responded with an “all hands on deck” approach, proactively reaching out to shippers to confirm operating hours and set specific pickup and dropoff times. Drivers were equipped with protective gear. Cleaning and disinfecting routines were implemented for offices and trucks. Protocols were adopted to limit close contact between drivers and shippers. Signature requirements were suspended to help maintain proper social distancing.
At the same time, exploding e-commerce volumes accelerated use of the company’s FedEx Freight Direct service, which provides home delivery of heavy, bulky items, such as fitness gear, outdoor furniture, and sewing cabinets. The service, which had been growing at a decent clip prior to the pandemic, really took off as homebound consumers began ordering more oversized items from online retailers. “The pandemic continues to drive unprecedented volumes, and we have managed our linehaul model to align with current demand,” Moll notes.
AGILITY TO THE FOREFRONT
With market disruption and a clouded view of the future, fleets are placing a premium on flexibility and agility. One example is St. Louis-based CPC Logistics, which provides CDL (commercial driver’s license)-qualified drivers to private fleets and other dedicated needs. It is one “leg” of a three-legged trucking operations stool: CPC manages all aspects of driver recruiting and deployment, the manufacturing or retailing business (such as a pharmacy, automotive aftermarket, or consumer products concern) does network and route planning, and a third party provides the rolling-stock equipment and maintenance.
This “unbundled dedicated” model flexed with the pandemic, such that “we were able to move drivers from one area or customer to another who saw higher demand and needed more capacity,” notes Dan Most, CPC Logistics’ vice president of safety and operations. “That met the customer’s volume need while making sure the driver had the opportunity to work and continue earning a paycheck.” CPC Logistics has about 3,000 full-time drivers assigned to its clients.
TUNING IN TO DRIVERS
On the truckload side of the business, carriers report a similar story. Freight disappeared in late March and early April, then began a slow but determined rebound. “People are refocused. There’s hardly any inventory,” notes Greg Orr, executive vice president of U.S. truckload for Canada-based trucking conglomerate TFI International. “A lot of catch-up is happening with supply chains right now.”
Orr’s management portfolio includes the operations of TFI truckload subsidiaries CFI and Transport America. He’s observed that currently, some 65% of their customers are seeing solid, steady volumes. The other 35% “are now trying to come out of [the pandemic], rebuild inventories, and win back customer confidence,” he says.
His biggest concern has been drivers and how the loss of personal interaction brought on by Covid-19–related distancing protocols is affecting them. “They’re vital to the country,” Orr stresses. And while they are professionals and, in his view, clearly committed to what they do, “protecting them and being super-attuned to their needs and concerns has never been more important. Last week, I was out in the yard [at CFI’s Joplin, Missouri, office] and had no less than a half-dozen drivers walk up to me and want to talk. They’re out on the road seven to 10 days [at a time], and they miss that personal connection, seeing a friendly face.”
At the end of the day, “the pandemic has placed focus on what our individual actions mean not only to our own safety but to the safety of others around us as well,” comments Darren Hawkins, president and chief executive officer of LTL carrier YRC Worldwide. “We have entered an era where, more than ever, personal responsibility [for safety] is front and center.”
Concludes Hawkins: “The collective power of a society that is more aware of its surroundings, more prepared to act safely, and committed to acting in the best and safest interest of everyone is the promise of a better future for us all.”
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.”