Let's Talk Logistics

It is hard to believe it has been almost two years since the onset of the pandemic. We still don't fully understand the extent of the disruption that has overwhelmed the global supply chain, nor do we know what to expect in the coming year. It is uncharted, unfamiliar territory. 

From short supplies and depleted inventories to delayed shipments and order backlogs, the movement of goods has never been so unpredictable and stress inducing. But the biggest issue for shipping managers, and dare I say, the elephant in the room,  is not so much the daily struggles that come with tight capacity, employment woes, and lack of raw materials, but the result of it all, which is soaring freight rates. 

"Regarding location, there are two areas in a trailer that placing a temperature monitoring device (TMD) is not recommended. You never want to put it on the south-facing wall because the south wall is always warmer. The TMD is not going to give you an accurate reading in that location."

 -Doug Thurston, Vice President Sales, Emerson

If you are just chiming in on this blog post, it is important to note that this is the second half of the two-part series, Myth or Fact? The Truth About Refrigerated Shipping. Part one can be found here.

The Experts

Moderator: James Lee, Choptank Transport, Vice President of Legal Affairs

Expert Panelist Jeffrey K. Brecht: University of Florida, professor, and co-author of Protecting Perishable Food in Transport by Truck and Rail.

Expert Panelist Doug Thurston: Emerson, Vice President of Sales

Expert Panelist Greg Blades: Thermo King, General Manager

Myth or Fact #4: Is it okay to mix a load of products that have varying temperature requirements on the same truck? For example, fresh with frozen, dry with frozen, or dry with fresh.

"Maintaining the cold chain means looking at the entire shipping process from start to finish. Once the products have been cooled, you can never allow them to warm. When the cargo is allowed to warm anywhere in the distribution system, it is almost impossible to cool it back down again. If you let that happen, you will have a negative effect on the quality and the shelf life of the freight." - Professor Jeffrey K. Brecht, University of Florida

This blog is the first of a two-part series taken from our 2020 webinar, Myth versus Fact: The Truth About Refrigerated Shipping. Part two will be posted next week. You can also listen to the webinar here. 

The Experts

Moderator: James Lee, Choptank Transport, Vice President of Legal Affairs

Expert Panelist Jeffrey K. Brecht: University of Florida, professor, and co-author of Protecting Perishable Food in Transport by Truck and Rail.

Expert Panelist Doug Thurston: Emerson, Vice President of Sales

Expert Panelist Greg Blades: Thermo King, General Manager

Myth or Fact #1: All refrigerated trailers built after 1995 have download capability.

Greg (Thermo King): This is a myth. The download capability was an option on units all the way up until the early 2000s. They started becoming more standard equipment around 2004, until around 2006 when it became completely standard and available on all trailer equipment.

Shipping temperature-controlled freight can be a risky business even on the best of days, but when outside temperatures soar to record-breaking highs, (most recently putting 13 million Americans under a severe heat advisory), it is time to pay extra attention to your cold freight shipments.

The past month was the hottest June in North America on record. In recent days, California, Nevada, and Arizona all surpassed previous record temperatures. It has been so hot in the Pacific Northwest that roads are actually buckling. What does this mean for shippers and carriers?

Every produce shipping season is different, but 2021 has more than one extenuating circumstance that could make it one for the record books. Not only are we coming off of a volatile, high volume post-pandemic freight market, but we still are trying to recover after a week of bizarre winter weather in Texas and the deep South that devastated many winter crops.   

Melons, onions, lettuce, and broccoli were just some of the more than $600 million in damaged produce. According to Texas A&M Today, the estimated losses from weather-related storms are broken down by these categories:

• Citrus crops, at least $230 million
• Livestock, at least $228 million
• Vegetable crops, at least $150 million

Speculation about how much shipping costs will increase this year vary, but industry experts agree that rate hikes are inevitable, and soon.

The last year has tested the industry to its limits. Expecting the unexpected has become the norm because of COVID-19. It has stretched us like too little butter over too much bread, creating far-reaching consequences. Now that the pandemic threat may be winding down in many places, we are presented with one more thing to make us grind our teeth at night—more cost to our bottom line.

Picture the hustle and bustle of the Christmas holiday, but on STEROIDS. That is what it is like during the Chinese New Year (CNY) in the Eastern half of the world in January and February. It is the largest human migration in the world. For countries like China, Korea, Vietnam, Singapore, Indonesia, Malaysia and the Philippines, the event is celebrated not only for a few days or even a week, but two weeks. 

The dates change from year to year depending on the calendar. This year, CNY is much later than it was in 2020, by 18 days. According to Wikipedia, the criteria used to establish the dates is as follows: “The first day of the Chinese New Year begins on the new moon that appears between 21 January and 20 February. 

In 2021, the first day of the Chinese New Year will be on Friday, February 12, which is the Year of the Ox. The celebration lasts until February 22, but preparations often begin as early as February 4.

This is the time of year when everyone in the logistics industry should be on the lookout for heightened cargo-theft activity. Historically speaking, holidays have been prime time for thieves to hone their skills and get away with as much plunder as possible. This year, because of COVID-19, cases of cargo theft are increasing.

Why have cargo thefts increased?

Part of the reason is sheer volume. Freight volumes for durable goods have hit an all-time high in 2020, with significant fluctuations in the marketplace. Volumes and capacity have unexpectedly surged from one quarter to the next, echoing the increases in COVID-19 cases. Consumer behaviors such as overstocking on paper goods and online shopping have resulted in a hectic logistics industry with tight capacity and high rates. For truck robbers, this unexpected freight boom has created opportunity by putting tons of goods on the road, and at risk.

You’ve got the best freight insurance in the world, right? Sure you do—until you have a claim, that is. When compensation is needed, some policies can turn out to be about as much good as a screen door in a submarine. In other words, you're not covered.

Our Team of Logistics Pros Offer Shippers Valuable Insights 

U.S. Shipping Volumes

The leaves are falling and so may be your profits this peak season. It is a wild and wooly freight market this year and the supply chain has dealt shippers a tough hand. We are fighting a pandemic that has far-reaching economic and personal ramifications. Shipping volumes are 50 percent higher than either of the last two years. High rates and lack of capacity keep gnawing away at profits, just like the virus keeps rearing its ugly head around the country. Relying on historical trends has become pointless with a market that is as unpredictable as this year’s presidential race (or as President Trump’s next tweet). 2018 dealt us a bull market, 2019 was flat, and well, we all know the story this year.