Margins are falling in the transportation sector. FedEx miscalculated holiday demand by a long shot, and UPS and FedEx are barely treading water when it comes to keeping up with rapid increases in the demand for e-commerce. Paul Ziobro writes for The Wall Street Journal: Both FedEx and rival United Parcel Service Inc. are struggling to keep pace with the dramatic growth of e-commerce. While more people doing their shopping online is bringing added volume into their networks, both are spending heavily to build out package-sorting centers and automating facilities to handle the extra deliveries … [Read more...]
Truck Orders Surging Since November
I wrote to you here that in October trucking companies were ordering trucks at record lows, with not much hope for the 2017 economy. But starting in November orders for new heavy-duty trucks have surged, increasing every month. Jennifer Smith writes for The Wall Street Journal: Many trucking companies trimmed fleets last year as truck capacity outweighed demand from shippers, driving down freight prices. In recent months the freight market has picked back up as manufacturing strengthened and businesses completed inventory adjustments, “so there is more freight to haul,” said Don Ake, FTR’s … [Read more...]
For the First Time in Five Years Trucking Hiring is Soaring
Jennifer Smith reports for The Wall Street Journal that the trucking industry is hiring faster than it has for five years. Companies seem to be more confident in their prospects for orders and demand over the next few months, pushing them to pull the trigger on more transportation hiring. She writes: Trucking fleets stepped up hiring at the fastest pace in five years in February, adding 10,600 jobs in a display of confidence as companies across U.S. industries ramped up payrolls. Goods-producing private companies added 95,000 jobs last month, fueled by strong growth in construction and … [Read more...]
A New Energy Source Could Change Shipping in the World Forever
In a year, a typical cargo ship can pollute as much as 50 million passenger vehicles. Needless to say, the shipping industry is coming under increasing fire by environmentalists to clean up its fleet. At ExxonMobil Energy Factor, the company explains how shipping companies are embracing much cleaner burning liquified natural gas. While the containerships responsible for supplying goods to consumers have consistently grown in size over the decades, one of the latest technological improvements ahead for these vessels will be what they consume themselves. Today, large, diesel engines are … [Read more...]
It Looks Like a New Amazon Cargo Hub is Nearing Reality
The Wall Street Journal reports the breaking news on Amazon’s brand new cargo hub. Amazon.com Inc. said Tuesday it plans to build its first air cargo hub to accommodate its growing fleet of planes, signaling the company is ramping up its expansion into transporting, sorting and delivering its own packages. The Seattle-based retailer said it expects the new air hub, located at Cincinnati/Northern Kentucky Airport in Hebron, Ky., to create more than 2,000 jobs. The move will lessen its dependence on traditional carriers, including United Parcel Service Inc. and FedEx Corp. , both of whose … [Read more...]
Watch What Happens to Obama’s Costly Transport Rules on the 21st
The WSJ makes an excellent case that the Obama administration's executive order writing against the transportation industry needs to be throttled back. Leaders of the industry trade groups say they are trying to unite transport representatives in Washington, including airline, automobile and shipping groups, in the effort to reverse Obama administration-era safety initiatives and slow the process for enacting new regulations. The Obama administration, through agencies that oversee trucks, railroads and highways, has written a series of freight and passenger transport rules in the past … [Read more...]
Can You Guess This Big Secret about the Internet of Things?
Today the Internet of Things (IoT) is connecting a vast array of new devices to the web, and produces mountains of data that designers, manufacturers and consumers can use to improve their products’ experience. But the big secret about the IoT isn’t how devices can communicate with people—it’s how they can now communicate with one another. A great example of this inter-device communication is the ability of new Audi vehicles to communicate with traffic lights in Las Vegas, telling them how much longer the driver will need to wait at the intersection before proceeding. Vehicle to … [Read more...]
I Challenge You to Uncover a Sounder Long Term Strategy
The Wall Street Journal offers a summary analysis on what FedEx and UPS are up to. At youngresearch.com you can regularly follow the progress of both strategic powerhouses. Parcel delivery companies are getting closer to online retailers—literally. The package-delivery operations at FedEx Corp. and United Parcel Service Inc. have been opening more and larger sorting facilities that are readily accessible to their customers—shortening the often time-consuming first leg of a shipment, from e-commerce fulfillment center to shipping hub. This week, UPS announced plans to open its … [Read more...]
UPS Pushes into the Profitable Medical Deliveries Business
The Wall Street Journal breaks the fascinating logistics growth story of the medical deliveries business. United Parcel Service Inc. said Monday it agreed to acquire clinical logistics company Marken Ltd., deepening its push into the profitable business of medical deliveries. The move by UPS into the highly specialized industry could help it expand its express delivery business at a time when many of its traditional industrial and retail customers opt for slower, cheaper shipping options. United Parcel Service Inc. said Monday it agreed to acquire clinical logistics company Marken Ltd., … [Read more...]
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