Skip to content
Search AI Powered

Latest Stories

fastlane

Eight predictions for 2014

What's in store for the industry in the coming year? Several trends bear watching—particularly if you compete with Amazon or have to travel by air.

Each January for the past few years, I've made a number of predictions for the coming 12 months. Some have panned out; others have not. But the task seems to be getting harder. As I sat down to write this year's edition, it occurred to me that I haven't seen this much upheaval in our industry since the early 1980s.

That point was driven home to me on Dec. 1, when I saw the "60 Minutes" segment in which Jeff Bezos introduced his drone package delivery system. While we won't see Amazon drones winging their way through our neighborhoods in 2014, it's quite possible we'll see them some time in the future. With so much going on, it is increasingly tough to visualize what will happen tomorrow, let alone throughout the year. Nevertheless, I am going to wade into the storm and make eight predictions for 2014:


  1. Amazon.com will continue to set the pace for supply chain innovation. Just as Wal-Mart did several years ago, Amazon will keep raising the bar where supply chain advances are concerned. Whether it's building out a vast private distribution network, utilizing Sunday deliveries by the U.S. Postal Service, or launching drones into the supply chain skies, I believe Amazon will force other retailers to rethink their networks and capabilities.
  2. The truck driver hours-of-service (HOS) controversy will heat up again. Even though the courts have upheld the new rule and the regulations took effect July 1, 2013, we haven't heard the end of this. I believe Congress will step in. The American Trucking Associations can be a formidable lobbying force, and it is making a full court press to get the regulations rolled back.
  3. Regardless of what happens with the HOS regulations, there will still be a shortage of drivers. The overall lifestyle, congested roads, and various government interventions are simply making the job too unpleasant. To attract and keep qualified drivers, carriers will be forced to raise salaries.
  4. "Reshoring" and "nearshoring" will continue, although at a relatively slow pace. Offshoring may be losing its luster, but don't expect to see a dramatic shift in sourcing patterns. While labor rate differentials are narrowing between China and Mexico, for example, it will be a few years before they equalize. Also, the large investments some manufacturers have made in Asia will keep them there for the foreseeable future.
  5. The current transportation funding act will expire in October 2014. Although we desperately need a comprehensive bill with an adequate funding mechanism, it's doubtful we'll see a breakthrough in this area anytime soon. I believe Congress will kick the can down the road again, possibly just extending the current legislation.
  6. More states will raise taxes to fund their own infrastructure. In the face of Congress's continued failure to act, states will take matters into their own hands. Maryland, Virginia, Wyoming, and others have already done so.
  7. Carriers will continue to invest in alternative fuel vehicles. The growing abundance of cleaner, lower-cost fuels will accelerate the shift away from diesel. UPS has already made heavy investments in electric, hybrid, and natural gas-powered vehicles, and others are sure to follow.
  8. The air travel experience will continue to deteriorate. American Airlines and U.S. Airways executives have touted their recently approved merger as a good move. It may be for them, but experience has shown that consolidation in the airline industry often results in reduced service for many cities coupled with higher fares and fees, not to mention the shrinkage in personal space.

Notwithstanding some of our current issues, things could be worse. Remain calm, stay focused, and keep an eye out for drones.

The Latest

More Stories

power outage map after hurricane

Southeast region still hindered by hurricane power outages

States across the Southeast woke up today to find that the immediate weather impacts from Hurricane Helene are done, but the impacts to people, businesses, and the supply chain continue to be a major headache, according to Everstream Analytics.

The primary problem is the collection of massive power outages caused by the storm’s punishing winds and rainfall, now affecting some 2 million customers across the Southeast region of the U.S.

Keep ReadingShow less

Featured

Survey: In-store shopping sentiment up 21%

Survey: In-store shopping sentiment up 21%

E-commerce activity remains robust, but a growing number of consumers are reintegrating physical stores into their shopping journeys in 2024, emphasizing the need for retailers to focus on omnichannel business strategies. That’s according to an e-commerce study from Ryder System, Inc., released this week.

Ryder surveyed more than 1,300 consumers for its 2024 E-Commerce Consumer Study and found that 61% of consumers shop in-store “because they enjoy the experience,” a 21% increase compared to results from Ryder’s 2023 survey on the same subject. The current survey also found that 35% shop in-store because they don’t want to wait for online orders in the mail (up 4% from last year), and 15% say they shop in-store to avoid package theft (up 8% from last year).

Keep ReadingShow less
containers stacked in a yard

Reinke moves from TIA to IANA in top office

Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.

Reinke will take her new job upon the retirement of Joni Casey at the end of the year. Casey had announced in July that she would step down after 27 years at the helm of IANA.

Keep ReadingShow less
Driverless parcel delivery debuts in Switzerland
Loxo/Planzer

Driverless parcel delivery debuts in Switzerland

Two European companies are among the most recent firms to put autonomous last-mile delivery to the test with a project in Bern, Switzerland, that debuted this month.

Swiss transportation and logistics company Planzer has teamed up with fellow Swiss firm Loxo, which develops autonomous driving software solutions, for a two-year pilot project in which a Loxo-equipped, Planzer parcel delivery van will handle last-mile logistics in Bern’s city center.

Keep ReadingShow less
Dock strike: Shippers seek ways to minimize the damage

Dock strike: Shippers seek ways to minimize the damage

As the hours tick down toward a “seemingly imminent” strike by East Coast and Gulf Coast dockworkers, experts are warning that the impacts of that move would mushroom well-beyond the actual strike locations, causing prevalent shipping delays, container ship congestion, port congestion on West coast ports, and stranded freight.

However, a strike now seems “nearly unavoidable,” as no bargaining sessions are scheduled prior to the September 30 contract expiration between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) in their negotiations over wages and automation, according to the transportation law firm Scopelitis, Garvin, Light, Hanson & Feary.

Keep ReadingShow less