The Federal Motor Carrier Safety Administration (FMCSA) said it may incorporate the findings of reports related to the impact of in-cab technology on safety in potential changes to its carrier safety rating system. But some trucking industry organizations want the FMCSA to put the brakes on that plan. A group of 11 industry stakeholders protested that the “majority of the documents cited are dated and have no direct relevance to a new [safety fitness determination rule] or to the agency’s previous notice of a possible reboot of its Safety Measurement System (SMS).”
In other news, recent reports have identified cybersecurity trends for 2024 and the increase in food and beverage thefts around the world. Industry publications have shared leading companies’ supply chain secrets and reported on the growth of cross-border operations as the nearshoring trend continues. Warehousing jobs in Southern California’s Inland Empire have declined for the first time in more than two decades. And a supply chain expert has taken on trucking tall tales.
Will In-cab Tech Play Role in FMCSA Carrier Safety System?
The FMCSA said in January it may take a closer look at six studies when considering changes to its carrier safety rating system. According to an article in Overdrive, four of those reports are related to the impact of in-cab technology on safety. But the Owner-Operator Independent Drivers Association said those studies “contain various flaws” and should not be the basis of a safety rating system.
What’s Your Secret?
Inbound Logistics shared “the secrets behind today’s leading supply chain companies”: PepsiCo, Zara, Mars, and Apple. Inbound Logistics said complex supply chain strategies “incorporate innovation, efficiency, sustainability, and resilience.” The four companies’ streamlined supply chain strategies enable them to deal with disruptions, respond to just-in-time demand, utilize automation, and increase transparency.
Ryder Expands Cross-border Operations in Texas, Mexico
Ryder System is the latest U.S. logistics company to strengthen its cross-border operations as the nearshoring trend continues. In February, Ryder opened a 228,000-square-foot warehouse in Laredo, Texas, and expanded a drayage yard across the border in Nuevo Laredo, Mexico. “If you look at the market, truck border crossing activity between the U.S. and Mexico is up more than 20 percent annually since the pandemic, as more businesses look to nearshoring to diversify their supply chains and shorten lead times,” Ricardo Alvarez, vice president of supply chain operations for Ryder Mexico, said, according to Transportation Today.
So the Story Goes …
Jason Miller, a Michigan State University supply chain professor, has a big following on LinkedIn, where he generated a lot of feedback with a post on commonly heard narratives in the trucking sector. “We likely underappreciate the role of narratives, factually accurate or not, in shaping perceptions of supply chain phenomena,” Miller said.
Once-booming Inland Empire Warehousing Industry Declining
Warehousing and storage jobs in Southern California’s Inland Empire have decreased for the first time in over two decades. Truck transportation has been down in the region since early last summer. Transport Topics quoted California economist John Husing as saying, “Right now I am not an optimist on this economy.”
Cybersecurity Trends for 2024
Gartner identified generative AI, third-party risks, and continuous threat exposure as among the driving forces behind the top cybersecurity trends for 2024. Gartner predicted that by 2026, organizations utilizing continuous threat exposure management to prioritize their security investments will see a two-thirds reduction in cyber breaches. “Technology disruptions and socioeconomic uncertainties require willingness to act boldly and strategically enhance resilience over ad hoc responses,” Gartner’s Bart Willemsen said.
Where Are My Doughnuts?
Rising grocery prices have made even everyday food and drink items targets for thieves. According to the supply chain intelligence company British Standards Institution, food and beverages made up 22% of all theft cases globally in 2023, behind only automobiles and auto-related thefts at 52%. That includes the stealing of a van carrying 10,000 Krispy Kreme doughnuts in Australia. “The total pressure on a supply chain professional these days is immense,” BSI’s Jim Yarbrough told Bloomberg.
FTC sues to stop merger of Kroger and Albertsons
In other food-related news, the Federal Trade Commission has filed suit to block the merger of supermarket giants Kroger and Albertsons, saying the $25 billion deal would result in higher food prices, store closures, and job losses, according to CNN.
J.B. Hunt and Walmart sign intermodal deal
Two other big names, J.B. Hunt Transport and Walmart, have signed a long-term intermodal deal. A major part of the deal is J.B. Hunt buying Walmart’s intermodal container and chassis fleets. “Walmart’s long history of working with J.B. Hunt has many milestones of innovation and growth,” Fernando Cortes, Walmart’s senior vice president of transportation, said, according to the American Journal of Transportation. “This agreement will strengthen our commitment to delivering goods at an everyday low cost to our customers and members.” Terms of the deal were not disclosed.
How Do You Really Feel?
Overdrive asked owner-operators what they thought about freight broker margins as well as rates data and transparency. “Small carriers do care about broker transparency, and bring a healthy dose of skepticism to rates averages on any given lane. If anything, owner-operators seem to pride themselves on arriving at their own singular understanding of the market,” Overdrive said. The full results of the survey are available here.
Economists Fear Interest Rate Cuts Won’t Come Soon Enough
If the Federal Reserve moves too slowly in cutting interest rates, it could trigger a recession, according to a USA Today article. “The longer they wait, the greater the risk that something goes off the rails,” Mark Zandi, chief economist for Moody’s Analytics, told the publication.
Take the Risks Out of Business
There is a risk that “something goes off the rails” in any business involved in the supply chain. A recession, for example, could send the trucking industry into a tailspin. During turbulent economic times, innovative financing can be a true lifeline. A financially stable supply chain also is a secure supply chain, a must as cyber criminals are finding new ways to attack.
Cass’s subject matter experts help prevent businesses from going off the rails financially. Cass’s services for carriers include Cass Expedite, a quick-pay program that enables two-day payments to carriers.
With six decades in business and more than $38 billion in annual processed freight spend, Cass has become adept at solving the most complex auditing, data management, and accounting challenges. Contact Cass to be connected with experts in freight audit and payment, freight accounting, business intelligence and reporting, claims management, and more.
