Teams that regularly route shipments through the Port of Baltimore have already had to make rapid adjustments to operations to account for this disruption. As the dust settles, logistics teams must continue to revisit their strategies to maintain an adaptive approach and minimize spend. 

Uber Freight’s Head of Intermodal D’Andrae Larry and Vice President of International Operations Mollie LeBlanc shared critical insights into how shippers can address the bridge collapse. 

Divert shipments strategically 

According to Larry, shipments which have historically gone through the Port of Baltimore to reach the Mid-Atlantic, Upper Midwest, and Northeast regions will likely be forced to divert first to other East Coast ports. Specifically, ports in New York, New Jersey, South Carolina, Georgia, and Norfolk, Virginia. 

Since Baltimore is heavily a roll-on/roll-off port, other ports on the East Coast will likely see an especially high volume of flatbed and auto shipments. Be sure to update routing guides accordingly, and identify the alternative routes and modes that are within budget but have the least amount of impact on delivery performance. 

“As the situation continues to develop, up-to-the-minute market information will be a critical asset to shippers looking to minimize wasted costs and time,” said LeBlanc.

The immediate impact of the Port of Baltimore crisis is increased demand at alternative ports, which may cause spot market prices for over-the-road (OTR) shipments to see a temporary uptick. However, volumes in these areas may be limited. While Baltimore offers limited intermodal options, inland moves from alternative ports can take advantage of intermodal availability to mitigate delays.

Revisit maritime law and insurance policies

LeBlanc shared that this incident is an important reminder that compliance and insurance should be top of mind for all shippers. Logistics teams should familiarize themselves with the laws and regulations under which their shipments are governed, so they can take appropriate action in urgent situations. 

For instance, it is widely expected that the owners of the Dali, the cargo vessel that struck the bridge, will declare General Average, an important concept for all ocean shippers to understand. General Average is a maritime law that spreads liability for accidents among stakeholders, meaning that those responsible for the freight on board the ship may incur high costs following the incident. 

“This liability will be distributed among buyers and sellers following the International Commercial Terms, or incoterms, negotiated during the procurement cycle,” said LeBlanc. “Depending on how those terms were negotiated, this accident may become an unbearable cost for foreign buyers.” 

For these parties, the right insurance coverage could be invaluable. Reach out to an insurance underwriter or transportation partner to ensure that shipments retain critical insurance coverage during any deviations or diversions. 

Build contingency plans and improve data visibility 

The last few years have proven that supply chain disruptions of one kind or another are inevitable, and can occur at any minute. A case like the Francis Scott Key Bridge collapse may seem unprecedented but, in fact, many U.S. bridges are vulnerable to cargo ship collisions.

To prepare for disruptive supply chain events as best as possible, logistics teams must have a business continuity and contingency plan in place. Developing a proactive plan, and tailoring this plan to regional and seasonal needs, can ensure teams are able to adapt when disaster strikes. 

One key way logistics can maintain a proactive approach is by gaining granular visibility into shipment status and location, which enables them to make real-time decisions such as route optimization and downgrading or upgrading service to mitigate delays. Access to logistics management tools that make transportation data easily accessible and transparent is valuable to help create resiliency and minimize spend amid uncertain and dynamic conditions, particularly for long-distance or international shipments. 

To better navigate future supply chain disruption, arm yourself today with dynamic, proactive transportation management strategies.

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“Freight fraud takes on many forms and is a massive threat to our industry. It undermines the trust built in our ecosystem, disrupts operations, and impacts both businesses and consumers alike,” said Bill McDermott, Senior Investigator at Uber Freight. “At Uber Freight, fraud detection, prevention, and response are of the utmost priority, and our approach is built around safety, reliability, and professionalism. We assess the quality of carriers on our platform through systematic vetting processes and compliance requirements and continually monitor performance to maintain the integrity of our network.”

One of the key threats we’ve been focusing on is double brokering, a practice that undermines the trust and efficiency of the freight industry. Double brokering has been an area of focus as part of the 60% reduction of fraud on the Uber Freight network. This is a testament to the effectiveness of our initiatives and the dedication of our team to combating fraudulent activities.

Uber Freight has multiple layers of controls to safeguard customers and carriers from fraudulent behaviors including double brokering. Our measures include automated and manual solutions to prevent, detect and mitigate against this vector of fraud. We are continuously investing in this area with predictive risk models, risk signaling and ongoing carrier evaluation and are committed to staying ahead of the ever-evolving fraud tactics experienced across the industry.

In addition, Uber Freight partners with trusted third party companies including Highway and RMIS, a product of Truckstop. With Truckstop’s 28 years of expertise and high quality carrier data, RMIS has long been the industry’s leading, trusted partner in helping provide the security measures to prevent fraud. Highway’s proprietary Carrier Identity solution allows Uber Freight to strengthen security protocols by creating a digital firewall around their network to prevent fraud and enforce a new carrier standard. These partnerships not only strengthen the security of our network but also benefit our business and our customers by mitigating risk to create a more reliable shipping experience.

Our commitment to fraud prevention extends to the broader law enforcement community and to our risk and compliance technology partners. Recently we collaborated with law enforcement agencies in Southern California to investigate a case of missing cargo, ultimately leading to the dismantling of an organized retail crime ring. This resulted in more than $1.5 million worth of stolen goods being recovered, underscoring the critical role of collaboration in combating freight-related crimes.

As the logistics industry continues to evolve, so too do the threats it faces. We recognize the importance of ongoing innovation and collaboration to safeguard the supply chain and uphold the trust of our customers and partners. By implementing robust fraud prevention measures and fostering partnerships with law enforcement and industry stakeholders, we remain steadfast in our commitment to delivering safe, reliable, and transparent freight services.

In the face of escalating threats, it’s imperative that businesses prioritize transparency, communication, and automation to safeguard their operations and protect the integrity of the supply chain. Together, we can build a more resilient and secure freight industry for the benefit of all.

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With the market expected to remain soft in early 2024, logistics teams have breathing room to innovate and refine their transportation programs. Companies can set themselves up for success in the new year by investing in strategies—including AI-powered logistics, emissions visibility, and nearshoring—bolstered by using modern freight technology and partnering with managed transportation experts.

At Uber Freight, our experts keep a pulse on market conditions—not only to pinpoint potential tightening or headwinds, but also to identify key opportunities for growth and savings. As you prepare your logistics strategies for 2024, we recommend keeping these considerations top of mind to remain nimble and competitive.

Harness AI to make strategic decisions 

“Artificial intelligence is here in a meaningful way, and its impact will be profound on logistics,” said Lior Ron, founder and CEO of Uber Freight, at our annual Deliver conference this year. “We can leverage advances in AI to shift from a reactive to a predictive logistics strategy.”

For example, recent advances in generative AI use large language models (LLMs) to generate insights from massive datasets—informing smarter, more proactive decisions. The technology boosts productivity across the transportation department, from efficiently matching loads with interested carriers to better predicting load delivery times. 

Our annual Deliver Tech Showcase demonstrated additional benefits for shippers and carriers. Companies can use AI to quickly analyze data and surface insights, from load history and GPS pings to identifying supply-demand imbalances and recommending smart coverage options. Shippers can also harness the power of AI to simplify appointment scheduling and boost productivity.

Increase emissions visibility to improve sustainability 

As companies work to reduce their carbon footprint and create more sustainable supply chains, there are two elements to prioritize: measuring carbon emissions output and adopting realistic solutions to reduce those emissions. 

It’s notoriously difficult to track emissions, especially when using numerous modes of transportation. However, modern technology solutions are unlocking valuable data that improves emissions visibility, providing insight into where and how businesses are generating waste across different modes and regions.

When businesses are able to identify their carbon hotspots, they can map out plans to use different solutions that will reduce emissions for the short and long term: these include adding electric trucks to a fleet, optimizing network design to reduce empty miles, and investing in intermodal transportation.

Expand flexible procurement strategies 

Pandemic-era disruption put a spotlight on the importance of agile procurement: strategies that are cost-effective, unrestricted by long-term contracts and annual RFPs, and enable shippers to toggle their resources based on market conditions. As businesses seek to capture savings while rates are low—and work with carriers that have the capabilities to help meet those savings KPIs—they can shift from using spreadsheets to procurement software to become more strategic. 

Procurement technology helps transportation departments shorten decision-making cycles by using dashboards that automate contract freight procurement. Through these dashboards, shippers can conduct bids for freight of any size and access pre-configured routing guides and rates for their TMS. Access to procurement software also means access to market data, historical network data, and performance history, which inform the smartest options for lanes and modes. 

Additionally, companies gain access to an expansive carrier marketplace that facilitates new types of partnerships and transportation modes, such as autonomous trucks.

Take advantage of Mexico’s nearshoring boom 

Nearshoring to Mexico skyrocketed this year: the opening of 25 new industrial parks amounted to $35 billion in new investment, and 88% of U.S.-based small and mid-sized businesses reported using suppliers in Mexico. The Mexican government also published a new decree in October, granting incentives to companies planning to relocate operations to the country—potentially driving an additional $18.5 billion in investments in 2024. 

To successfully capitalize on the nearshoring boom, businesses can work with their managed transportation providers to map out a cross-border operations plan that accounts for the complexities surrounding customs and export promotion programs. 

As more shippers migrate to Mexico, demand for truck capacity will also increase. Addressing this demand will likely require diversifying transportation modes, such as pivoting from full truckloads to intermodal routes to maximize equipment utilization, consolidate orders, and minimize empty miles.

Leverage accurate data to inform network improvements 

Vast amounts of supply chain data tell companies what changes need to be made to improve service and save money. However, in order to use that data effectively, it needs to be accurate and easily accessible in real-time.

Logistics teams can uplevel their data and analytics strategy by working with managed transportation partners to cleanse and organize data, conduct data audits, and help visualize it create actionable insights that inform cost, service, and delivery improvements. Teams can also leverage a transportation management system (TMS) to house and measure metrics ranging from warehouse utilization to carbon emissions. 

Establishing a digital, data-driven strategy paves the way for accurate network analyses. In turn, shippers can make smarter, cost-effective changes across their supply chain, such as rightsizing fleets and consolidating warehouse space. 

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As logistics teams make a plan to innovate their transportation strategy, it’s vital to have a managed transportation partner and a TMS to effectively put these strategies into practice in a way that makes sense for their business. Connect with an Uber Freight representative today to learn how our team of experts and logistics solutions can help you achieve your 2024 objectives. 

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With unpredictability being the new normal, it’s more important than ever that shippers and carriers have the right tools and expertise at their disposal. And while automation has still radically transformed the brokerage model, streamlining the most labor-intensive touchpoints throughout the freight life cycle, it still takes a blend of service and technology to make key business decisions – that’s the way our Head of Brokerage Todd Souder sees it.

With 15+ years of supply chain experience, Todd has seen his fair share of logistics’ own digital revolution. He’s watched as technology has completely reimagined the procurement process, business relationships, record-keeping, payments, and more. These innovations have had a tremendous impact, revolutionizing the ways shippers and carriers operate and improving overall efficiency. However, that’s not to say high-touch service and industry expertise doesn’t still play a critical role. Having led Uber Freight’s brokerage operations over the last year, Todd has been the driving force behind a transformation in solutions that put service first, backed by industry-leading technology and market insight.

“Shippers require the right combination of automation and tailored service to deliver the best outcome,” says Todd Souder. “The brokerage model has evolved, and to efficiently and cost-effectively navigate today’s freight market, it’s imperative that logistics partners provide new technology that increases visibility, transparency, access to capacity and self-serve options, alongside the service and consultation from market experts who know the industry inside and out. We envision a brokerage model where technology and service complement and inform strategic decision-making. It shouldn’t be one or the other.”

At Uber Freight, world-class technology and service are what our customers demand, and we’re proud to deliver. We equip shippers and carriers of all sizes with the tools, transportation services, and expertise they need to manage today’s complex freight market. That’s why Todd is doubling down on the human element. That means investing more in the people that help you deliver, including dedicated account managers that can help strategize your supply chain approach, our 24/7 support team to have your back round-the-clock, and the research and market insight you need to inform key decision-making.

“Todd is a seasoned veteran that brings a wealth of experience transforming entrenched supply chain processes,” says Lior Ron, Uber Freight CEO. “Especially in today’s market, customers require more than just technology – they value relationships and trust that we’ll be there 24/7. Todd understands their needs and I’m confident in his ability to help us deliver a customer experience like no other.”

Today, Uber Freight offers the most comprehensive suite of transportation solutions and services for shippers and carriers alike, spanning managed services, logistics solutions, and technology solutions. Our brokerage services span FTL, LTL, intermodal, drop solutions and much more, all the way to autonomous freight. With one of the most extensive transportation networks in the world, our holistic approach to supply chain services will help you better navigate market fluctuations and deliver, any day of the week.

To learn more about how to ship with Uber Freight, visit https://www.uber.com/freight/platform/join-us/.

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As the industry experiments with sustainable alternatives to complement traditional capacity, this pilot will provide stakeholders with valuable insight into the logistical complexities of electrifying freight transportation. It will combine Uber Freight’s expansive network of digitally-enabled carriers with WattEV’s innovative electric fleet and charging infrastructure network. CHEP will be the first shipper to participate in the pilot, prioritizing electric capacity on the Southern California route.

“Our business relies on heavy-duty road transport, which is one of the biggest challenges to transition our value chain to net-zero emissions by 2040, CHEP’s long-term decarbonisation goal. This first electric truck pilot in the U.S., in partnership with Uber Freight and WattEV, is a step in the right direction as we move towards a net positive impact. We are proud to partner with our carriers and our customers as we together scale up electrification opportunities and deliver on our shared decarbonization goals,” said Marisa Sánchez Urrea, Director of Global Supply Chain Decarbonisation at Brambles, CHEP’s parent company.

The pilot builds on WattEV’s mission to develop a nationwide network of heavy-duty charging facilities that will serve fleets of electric trucks. Via the Uber Freight platform, CHEP will be able to book, schedule, and complete loads, track status and load KPIs, and manage paperwork all in one place.

“We are proud to be a zero emission transport solution of choice for Uber Freight and their customers,” said Salim Youssefzadeh, CEO of WattEV. “Combining our transport business and our Truck-as-a-Service model, we are able to use Uber Freight’s digital platform to serve the shippers and their customers with our zero-emission truck routes and services.”

As electric trucks hit the road, environmentally-conscious shippers and customers are turning to electrified capacity to meet their transportation needs and achieve their sustainability commitments. In addition to the benefits of zero emissions and the absence of engine noise and fumes, widespread adoption of electric trucks will decrease the reliance on non-renewable fuels with volatile prices and reduce maintenance costs.

“Electric trucks are finally here, and we’re proud to partner with WattEV to offer Uber Freight shippers even more ways to move freight more sustainably,” said Uber Freight Head of Sustainability, Illina Frankiv. “Electric trucks will have a profound impact on logistics, and we’re excited to build the technology platform to enable their seamless integration into supply chains”

Uber Freight’s expansive network is uniquely positioned to navigate the logistical complexities of integrating electric vehicles into shippers’ transportation strategy. By partnering with EV carriers and charging network providers like WattEV, and shippers every step of the way, Uber Freight is the proven network of choice for shippers and carriers to integrate emerging technologies into their supply chains.

Contact us to learn more about the Southern California pilot and electrifying your supply chain strategy.

The post Uber Freight announces its first electric truck pilot, partnering with WattEV and CHEP on southern California routes appeared first on Uber Freight.

By: Lior Ron, CEO, Uber Freight

We’re proud to share a significant milestone in our journey that began last summer when we announced that Uber Freight and Transplace were joining forces to enable a new era of logistics management. Today, the two organizations are officially together under one name, Uber Freight, the logistics platform and partner built to help shippers and carriers stay ahead in a rapidly evolving world.

Logistics is the backbone of the economy. It’s a highly complex ecosystem that inevitably – and for many, behind the scenes – touches nearly every aspect of our lives. It’s the mechanics behind shelves being stocked, online orders arriving on doorsteps a mere days after purchase, and the movement of the goods we rely on day in and day out.

But a changing world has revealed vulnerabilities across our industry. We’re facing a pandemic-driven e-commerce explosion that’s influencing customer expectations around delivery timing, a looming truck driver retirement cliff, and market rate volatility unseen in decades. The fragile systems we rely on to continuously move goods are showing their age. Simply put, the logistics industry was built for a world that we no longer live in.

However, in times of strain and uncertainty come opportunities for reimagination and innovation, and at Uber Freight, we know there’s never been a better opportunity to reimagine how goods move.

Our newly combined organization brings Uber Freight and Transplace products and services together under the new Uber Freight Platform, a first-of-its-kind logistics solution and partner that unlocks unprecedented supply chain reliability, resiliency and optimization. Backed by market-leading technology, our offerings for shippers now span across digital brokerage, transportation management systems, and fully managed transportation and logistics solutions, as well as carrier applications and drop freight programs.

So what does the new Uber Freight look like?

First off, our managed transportation services and digital brokerage solutions will continue to operate separately from one another. As a strategic partner to shippers and carriers of all sizes, we’re committed to complete transparency and accountability when it comes to identifying the best recommendations, options and opportunities for a shipper’s transportation needs, be it a one-time load or a fully managed program.

Our platform is now designed to optimize the operations for shippers of all sizes. You could be a business simply looking to modernize with advanced digital brokerage solutions or instant real-time pricing via an API. Or you’re growing and scaling and require a more comprehensive transportation management system and network view all in one place. And if you’re an enterprise shipper that requires an end-to-end managed program backed by industry-leading domain experts, we have that. Uber Freight empowers you at every stage.

We’re focused on unlocking value and addressing some of the industry’s biggest pain points:

• Transparency is baked into every product and experience from real-time pricing to facility insights and everything in between.
• We break down the complexities and daily challenges that face both shippers and carriers and provide always-on visibility and insights.
• Our technology, including LTL Pooling and Shipper Collaboration, moves goods more sustainably, while also increasing business efficiency and impact.
• We’re building the framework for the future by introducing customers to the industry’s cutting-edge technologies such as autonomous driving solutions.

Our marketplace technology, now behind all of our core logistics solutions offerings for shippers, unlocks deep efficiencies and rich insights across $17 billion of freight under management, as well as access to one of the world’s largest networks of digitally-enabled carriers with 135,000 carriers operating across services throughout North America and Europe, including intermodal, cross border, expedited and more.

I can’t overstate that none of this is possible without the carriers who actually move the goods. We strive to improve the carrier’s quality of life every day with technology. By democratizing access to freight, increasing driver productivity and reducing operating costs, carriers leveraging our technology make every hour on the roads count, plan with flexibility and certainty, and are empowered to succeed.

Today’s news would also not have been possible without all the hard work both teams have done to change the logistics industry as we know it. In combining the best of Uber Freight and Transplace, we bring together the industry’s leading technology, solutions and talent, while empowering employees with the resources to further invest in our customers, our communities and our environment.

Our mission is to reimagine the way goods move to help communities thrive, and today marks the next chapter of an incredible journey for our vision, team and community. We’re excited for the road ahead and look forward to seeing you on it!

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By: Tracy Rosser, Executive Vice President of Operations

In the freight industry, we often contextualize fluctuations in market trends in terms of contract rates versus spot rates. When spot rates are beneath contract rates and trending down, or are significantly below contract rates regardless of trend, we consider that environment a deflationary market. The inverse is an inflationary market.

For the first time in over a year, current spot markets rates have dropped below the contract average, a rapid decline from January highs. This transition means a move from an inflationary market to a deflationary one. For shippers, that often means a change in strategy. It can seem like a daunting prospect after having recently adapted to inflationary conditions.

Coming off a high inflationary market, today’s slow-down is resulting in a huge gap between spot and contract rates over the course of the year. But shippers can still take advantage of the new market circumstances — and even recover some of the overspend in budget that was necessary to use when rates were high.

The key to taking advantage of any market shift in the middle of an RFP cycle starts with monitoring freight rates at a lane level. That means looking closely at all-in blended rates, contract rates, backup (LCP) rates, spot and contract benchmarks, and internal budget benchmarks — and comparing the lowest cost options. From there, shippers can identify opportunities in the following categories:

Lever #1: Be Intentional with Your Routing Guide

To capture value in a deflationary market, it is critical to be intentional with how freight is being covered through the routing guide, with backup carriers, or utilizing the spot market. To achieve the optimal results, start with understanding lane level costs for contract and spot, and then ensure the routing guide is set up correctly to take advantage of those rates.

If spot rates are less than contract rates, one approach is to limit the freight sent to contract carriers to what has been committed in the bid. Agility in changing the routing guide setup based on market fluctuations can help to reduce costs. For example, say a carrier has a commitment of five loads per week but nine are generated. If the routing guide is set to a limit of five, then the four remaining shipments will be able to automatically go to freight auctions for cost savings. The inverse applies in a stable or inflationary market, and the primary carriers should always get first right of refusal on loads.

Shippers should also remove backstop broker carriers from the routing guide unless they’re used for a specific service or deflationary price strategies with transparent margins. This allows more volume to flow to freight auction, since in a deflationary market spot rate is typically a more viable cost-savings option.

Lever #2: Address Existing Contract Rates

Assessing existing contract rates during hyper deflation is necessary, but it might mean a difficult conversation with an existing carrier or working with a new carrier altogether. Some shippers might feel bullish on making these changes — others might be more inclined to avoid disrupting existing relationships altogether. No matter a shipper’s risk tolerance, there are still levers shippers can pull to improve existing contract rates as those things that caused a carrier’s costs to increase during inflationary times typically have the opposite effect in deflationary times.

Lever #3: Develop a Low-Volume Strategy

As shipper requirements allow, align the low-volume strategy to the most optimal cost solution. Often, that means most low volume shipments should be covered by the spot market (see step 1). Shippers can also expand the definition of “low volume” (from, say, lanes with 10 loads/year to, say, lanes with less than 50 loads/year) to increase cost savings. Working with a network partner can also open more competitive market rates.

A more conservative approach is twofold: exploring opportunities in new lanes (establishing new routing guides through mini-bids) and focusing any adjustments to existing carrier contracts on poor-performing lanes. Throughout the process, closely monitor how routing guides compare to the market and be prepared to move to a more medium-risk approach if needed.

A medium-risk approach should also include strategies around new lanes and poor-performing lanes. In addition, for broker and non-core asset-based carriers, shippers can:

• Completely replace with more cost-effective carrier
• Reduce commitments to let more shipments flow to freight auction or other targeted network solutions
• Surgically renegotiate rates to bring closer to market

The most aggressive approach centers around finding margin with core, asset-based carriers. That includes more closely monitoring these carrier lanes and, if necessary, acting to completely replace an existing carrier with a more cost-effective one. There are also opportunities to renegotiate rates or reduce commitments to allow volume to flow to the spot market.

Lever #4: Optimize Spot Market Utilization

The spot market is always changing and reacts faster to market conditions than contract rates. For unpredictable freight in a deflationary market, it can be a viable option for shippers to find cost savings. Shippers can leverage freight auctions and automate shipments to go directly to auction, for example, to achieve equal or below existing contract rates.

Shippers can also use data to find opportunities that take advantage of available solutions quickly and effectively. Machine learning models can identify opportunities within a 2–3-day window, reducing transportation costs by $140 per load on average. Working with a transparent brokerage partner can also open access to more favorable network pricing. By having an always-on approach to the spot market, shippers can identify patterns, trends and opportunities for continuous performance improvement.

Moving Forward with Transparency and Flexibility

The current slowdown poses new challenges for shippers, particularly considering fast-rising fuel prices. Q2 2022 has seen record high diesel prices, with an average price of $5.56/gallon. Moreover, a high level of uncertainty in the market remains due to unknowns like demand inconsistency, the reopening of production and shipping in Shanghai, and lease defaults. (Read more about these factors in our market report, here.)

For shippers, a strategy that uses all the resources at their disposal is key. And it means, as market conditions shift, shippers can leverage different tactics to solve for specific conditions as they arise — including striving for rate transparency with partners so they can have visibility to market comparisons and margins. Whether we continue in a deflationary market for a period, or find ourselves in inflationary conditions again, shippers can ensure no shift takes their business by surprise.

Learn More About Freight Rates in 2023 here.

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What is International Roadcheck?

During this large-scale event, an average of 15 commercial motor vehicles and drivers will undergo North American Standard Inspections every minute at weigh and inspection stations, on roving patrols, and at temporary inspection sites. These inspections check critical vehicle components from brakes, tires and exhaust systems to van and open-trailer bodies, fuel systems and lighting devices. In addition, inspectors will review drivers’ operating credentials, hours-of-service documentation, seat belt usage, as well as check for alcohol and drug impairment.

CSVA Inspection Focus Area: Wheel Ends

This year’s inspection focus will be on wheel end components, which support the heavy loads carried by motor vehicles, maintain stability and control and are critical for breaking. According to the CVSA, “violations involving wheel end components historically account for about one quarter of the vehicle out-of-service violations discovered during International Roadcheck, and past International Roadcheck data routinely identified wheel end components as a top 10 vehicle violation.”

Plan Ahead to Avoid Delays

The goal of the annual roadcheck is to maintain safety for everyone on the road. However, these inspections can significantly impact capacity and service. Drivers may lose hours due to checkpoints, and may be placed out of service for noncompliance. In an already tight market, further delays can seem untenable. With the right preparation measures, shippers and carriers alike can minimize disruption:

1. Capture capacity by planning now
2. Expect higher spot volumes
3. Expedite rate approvals
4. Move sensitive freight before May 17
5. Adjust appointments and shipments ahead of the impact
6. Schedule non-critical shipments after May 19
7. Ensure vehicles and drivers are in compliance (find the CSVA’s full overview of wheel end inspections here)

Ensuring Preparedness on Roadcheck Day — and Every Day

Particularly when market conditions are volatile, a combination of planning, transparency and agility are critical for shippers to ensure minimal delays no matter what challenges arise. While the International Roadcheck might create disruptions, it’s an event shippers and carriers alike can anticipate and therefore minimize its impact. In many cases, shipping and logistics hurdles are unforeseen.

At Transplace, we work with our partners to drive logistics performance excellence through our technology, domain expertise and network scale whether the environment is predictable or unpredictable, favorable or unfavorable. We have connections with a diverse carrier base of air freighters, trucking companies, rail freighters and ocean liners. And with over $15 billion in freight under management, our network reach in North America is unmatched. Our carrier network and shipper insights enable flexibility and nimble decision-making to consistently improve supply chain performance.

To learn more about our capacity and network services and the ways we can support you in preparing for International Roadcheck, reach out to us today.

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We are living through a time of historically tight trucking capacity, escalating transportation costs and record labor shortages. Gas prices are just the latest commodity to hit carriers’ and shippers’ bottom line. Nationwide, they quickly surged to over $4 a gallon, and are expected to continue to rise over the next several weeks. On top of that, surcharges are up .06-.07 cents per mile.

This dramatic increase has led to fuel costs per mile doubling since 2020 and fuel surcharges, as a percentage of total costs, doubling as well.

The ramifications for shipping costs, on top of already historically high linehaul rates, will be severe. When fuel spikes like this, shippers must be prepared to evaluate their end-to-end transportation networks.

Here are some actions shippers can take to mitigate risks as they begin to strategize and evaluate the new cost environment:

• Ship from optimally designed network configuration to minimize network miles
• Assess network model to reduce miles and evaluate adding DC’s / cross-docks
• Maximize equipment utilization
  • Focus on trailer fill, and ship trucks and containers at max weight
  • Evaluate and reduce the frequency of deliveries in order to increase fill rate
  • Establish minimum order quantities with customers
• Review product packaging to identify opportunities to improve equipment utilization
• Optimize mode selection by shifting:
  • Parcel to LTL
  • LTL to pool
  • Pool to truckload
  • Truckload to heavy weight truckload
  • Heavy weight truckload to intermodal
  • Intermodal to rail
• Consolidate orders
  • Ensure all parcel and LTL shipments shipping to the same customer are consolidated
  • Combine parcel and LTL and optimize mode to pool or multi-stop truckload shipments
  • Identify shippers ordering more than once per week and work with the customer to understand optimal shipping patterns, sailing schedules, etc.
  • Find partial load matching opportunities to combine lightweight truckloads or higher weight LTL shipments into truckload shipments
• Utilize intermodal where it makes sense
  • Complete analysis to include fuel projections for intermodal vs. truckload shipments
• Align shipping points and capacity
  • Determine the most cost-effective shipping locations
  • Limit out-of-alignment shipments
• Minimize empty miles
  • Utilize dedicated fleets when possible
  • Identify backhauls within your extended network
  • Collaborate with other shippers and partners
  • Identify opportunities where you can leverage continuous moves
• Train and measure driving behavior for dedicated fleets
  • Cruise control usage
  • Idle percent
  • Tire inflation
  • Maximize use of aerodynamics
  • Measure out of route miles
  • Reduce speed of fleet where possible

Uber Freight works with shippers to proactively identify areas of waste and inefficiencies in their networks. For more information, connect with an Uber Freight expert.

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Transplace manages more than 800,000 shipments into major retailers each year for iconic brands like Del Monte, Nestlé Waters, Kellogg’s, McCormick and Mars.

With a centralized group focused solely on OTIF excellence, our team of retail logistics experts has deep experience in the OTIF program and the appointment scheduling process to help shippers avoid incurring a 3% fine for noncompliance. Based on our long-term relationships with CPGs and hyper-care, white glove approach, we can anticipate issues and offer solutions to avoid schedule slowdowns, lower overall cost-to-serve and dramatically improve on-time service.

Below we share three key drivers for achieving OTIF excellence with Transplace’s advanced logistics technology and services.

1. Harness the power of a cloud-based transportation management system (TMS)

With fluctuating capacity and more demanding delivery service times, accurate visibility is required to mitigate risks and maintain schedules.

Transplace’s TMS and Global Control Tower offer complete visibility, as well as risk prediction analytics. Shippers can track and trace in real time where their shipments are and optimize route plans. With automated delivery appointments and scheduling, Transplace customers gain greater control of the logistics process.

In addition, our team of CPG and retail supply chain experts create proactive reports for loads scheduled to deliver late, as well as the Carrier Update Compliance report, which identifies leading indicators of service failures.

We use a root cause analysis data tracking system to identify common points of failure. The system spots trends and takes corrective action. After reviewing lead time, live vs. drop, asset vs. broker, delivery appointment times and more, shippers are armed with significant data to make necessary improvements.

2. Take advantage of industry-wide analytics and best practices

Transplace distributes a weekly supplier performance OTIF benchmarking report that is open to all CPG shippers and all participants are anonymously compared to other shippers in the program. With extensive data from our TMS, the benchmark report identifies trends and opens opportunities for shippers to share best practices.

3. Collaborate with your partners

The Transplace team makes recommendations that improve shipper-carrier-retailer relationships. Leveraging more than $11 billion of freight under management allows us to look for carriers that may be a better fit for a CPG’s specifications. Transplace’s Network Services provides significant advancements in multi-shipper collaborations, improved capacity and cost management. Shippers can be matched to the carriers and routes that will best improve delivery times. In addition, TNS optimizes shipments while minimizing deadhead and wasted miles.

Transplace’s commitment to hyper-care elevates collaboration, trust and continuous improvement for OTIF performance.

Download our OTIF Excellence infographic

Learn more about Transplace’s OTIF excellence program and weekly supplier performance benchmarking report here.

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