Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.
YRC Freight, the long-haul unit of less-than-truckload carrier YRC Worldwide Inc., on March 11
unveiled a long-awaited network restructuring that seeks to close three breakbulk terminals and
consolidate 29 smaller, "end-of-line" terminals used as freight pickup and final delivery points.
However, it may be some time before the plan is implemented.
The Overland Park, Kan.-based carrier, which employs between 20,000 and 25,000 members of the Teamsters
union, initially requested meetings on March 20 with leaders of union locals to discuss the proposed changes.
However, the dissident group Teamsters for a Democratic Union (TDU) said today that the international
leadership in Washington told all locals not to schedule any meetings with YRC through the end of April
because there are "substantive and procedure issues" with the proposal.
YRC asked for the March 20 meetings in a Feb. 11 letter sent to Teamsters General President James P.
Hoffa and other members of the union hierarchy.
Under the National Master Freight Agreement, the compact that currently governs labor relations
between the Teamsters and what's left of the unionized trucking business, a company has the right to
implement a "change of operations." Management must meet with the union to discuss the proposal, and
labor has substantial input in how the change is executed. However, the Teamsters don't have much
control over the company's overall strategy.
The proposed restructuring would eliminate breakbulk terminals in Cincinnati, St. Louis, and Memphis.
It would also consolidate end-of-line terminals in San Jose, Calif.; Youngstown and Mansfield, Ohio; and
Daytona Beach, Fla., among other cities, into YRC's terminal network. Ironically, on that list is Fort Smith,
Ark., home of YRC's archrival, ABF Freight System Inc.
YRC Freight plans to open a small "relay" driver facility in Staunton, Va., staffed by 26 drivers. Relay
drivers take over a load and drive between eight and 10 hours before handing that load to another driver. After
a required break, the initial driver would then take over the next truck heading back to his or her hometown.
The restructuring proposal would lead to the loss of 760 dock, shop, office, and cartage jobs, and an additional
452 over-the-road driver positions at the various affected terminal locations. At the same time, 343 over-the-road
driver jobs would be created, along with 639 cartage positions. All told, the restructuring would result in a net
loss of 230 jobs.
In the Feb. 11 letter, YRC Freight said the proposal is designed to improve line-haul density, reduce unproductive
"empty" miles, cut fixed administrative costs such as building and leasing expenses, and make the company's service more
cost-effective.
FEWER "FINGERPRINTS"
A breakbulk facility acts as an intermediate sorting point for interregional freight. Freight
from the various end-of-line terminals is sent to a regional breakbulk terminal to be combined
into trailers, which the carrier then routes to end-of-line terminals. For example, freight
destined for Texas from a terminal in Binghamton, N.Y., might go to a breakbulk terminal in
Pittsburgh, where it would be combined with Texas-bound freight from other Eastern cities.
Charles W. Clowdis Jr., a longtime trucking executive and now managing director, transportation advisory
services for the consulting firm IHS Global Insight, said the proposal should reduce the frequency of freight
"touches" between origin and destination, a problem that plagued Yellow Transportation Inc., the LTL carrier
whose 2003 merger with Roadway Express Inc. created what is now known as YRC Freight.
"Every time a carrier handles, or 'fingerprints,' a shipment, it adds labor costs," Clowdis said. In addition,
fewer handoffs should, in theory, result in smaller loss and damage claims, he added.
"The basic premise is that fewer handling(s) and fewer small terminal investments translate into more profit," Clowdis said.
Freight-claims ratios, which historically were a big problem at YRC Freight, have declined for seven straight months on a
year-over-year basis through the end of January, Jeff Rogers, YRC Freight's president, said in an interview with DC Velocity
last month. Without disclosing specifics, Rogers said the unit's freight-claims ratio is at its lowest level in years.
The network proposal is Rogers' latest move to wring efficiencies and profitability out of YRC Freight. That unit still
accounts for the bulk of the parent's revenue, and its troubles nearly drove the entire company into bankruptcy at the
end of 2009. Rogers was named head of YRC Freight in September 2011 after three years piloting Holland, a regional carrier
and YRC subsidiary.
YRC Freight posted fourth-quarter operating income of $21.1 million, its second consecutive quarter of operating gains and
a nearly $48 million improvement over the 2011 period. Its fourth-quarter operating ratio—the ratio of revenues to expenses
and a key gauge of a carrier's efficiency—improved 600 basis points year-over-year to 97.3, the unit's best fourth-quarter
operating ratio in six years. The ratio meant YRC Freight generated $97.30 in expenses in the quarter for every $100 in revenues.
In a sign that YRC Freight has made progress in shedding unprofitable freight, the unit's revenue per hundredweight—a
central measure of tonnage profitability—rose 3.2 percent both in the fourth quarter and for the entire year, even though tonnage
and shipment count were down in the same periods.
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”