Here’s an overview of 6 popular transportation and supply chain news stories from March: Research Brief: Inbound Freight Management. Inbound transportation consumes more than 40% of an average organization’s annual freight budget. New research indicates the biggest challenge managing inbound freight moves is controlling costs. More than half of shippers agree that to improve inbound freight, they need to acquire the best rate per shipment. Learn more by downloading the Research Brief.

The shortage of truck drivers in the U.S. has been a hot topic for some time. Most people in the industry have heard the statistics by now: we’re currently short 48,000 drivers, the shortage is expected to rise to 175,000 drivers by 2024 and carriers will need to hire 89,000 drivers a year over the next decade in order to keep up with demand.

Medium- and heavy-duty trucks move about 70% of America’s freight. These vehicles make up about 5% of traffic and contribute 20% ofgreen-sustainability.jpg greenhouse gas (GHG) emissions and oil consumption in the transportation sector. This makes trucking firms a prime target for green initiatives. In the past few years, the government has created regulations to reduce GHG emissions and support green shipping.Medium- and heavy-duty trucks move about 70% of America’s freight. These vehicles make up about 5% of traffic and contribute 20% ofgreen-sustainability.jpg greenhouse gas (GHG) emissions and oil consumption in the transportation sector. This makes trucking firms a prime target for green initiatives. In the past few years, the government has created regulations to reduce GHG emissions and support green shipping. High-Level Regulations In 2015, the EPA and the NHTSA released an emissions and fuel consumption reduction plan in response to President Obama’s Climate Action Plan. This plan consists of 2 phases. Phase 1 targets truck engines and emissions in model years 2014 to 2018. This part of the program has been a success, cutting carbon emissions and reducing petroleum use. Phase 2 takes effect beginning with the model year 2021 (2018 for trailers) until the model year 2027 trucks and expands the plan’s scope to include trailers and glider vehicles. Phase 2 is estimated to reduce GHG emissions by 1 billion metric tons, save 75 billion gallons of fuel and save vehicle owners $170 billion over the vehicle’s lifetime. Whether you believe these numbers to be optimistic or not, shippers need to pay attention to these regulations as they will have a profound impact on the transportation industry. Regulations that impact trucking companies will inevitably impact shippers’ transportation costs, operations, and strategy. Here are 5 reasons why shippers should pay attention to GHG trucking regulations: Fuel Costs Fuel comprises a major portion of operating costs for trucking companies. The EPA estimates the costs of Phase 2 vehicles, due to their improved fuel economy, will be recouped by vehicle-owners within two years. This means smaller, lower risk investments and big fuel savings for trucking companies. Improved fuel economy means reduced transportation spend for shippers. Carbon Taxes New, fuel-efficient vehicles will emit less GHGs than current vehicles, which will lead to further savings for carriers and for shippers. Carbon taxes are already being implemented in most major countries as well as in parts of the U.S. They are slowly gaining popularity for their effectiveness. Consequently, the entire fuel-intensive trucking industry will be taxed for carbon output in the near future. Presumably, phase 2 trucks will reduce emissions and help shippers avoid inflated transportation costs. Freight Flow Fuel-efficient vehicles and aerodynamic trailers stop less for fuel, which increases the speed of transport. Also, these vehicles are more reliable than existing equipment, which means fewer break-downs, service requirements and overall disruptions for carriers. Shippers will get their freight moving faster and more reliably. Otherwise, if new equipment investment proves to be a heavy burden for carriers, or if they’re hit unpredictably hard by carbon taxes – rail transport would become much more common because it is typically less expensive and more fuel efficient. Equipment Investments Phase 1 and Phase 2 significantly impact the timing of equipment investments for carriers. Whether they are financially ready to invest or not, they have to buy new trucks and trailers to meet government standards or face harsh consequences. The investment in Phase 2 vehicles could potentially provide great benefits. However, the investment itself could cause undue strain on profit margins for trucking companies. It’s impossible to tell what economic conditions will be like. So, carriers could feel the need to raise costs to keep profits steady, which would lead to higher costs for shippers. Consumer Approval Demanding consumers want their products fast, cheap and they want to receive them in a responsible way. Sustainability in the supply chain is important for consumer approval. As a shipper, you hold responsibility for being a high emitter of carbon and consumer of fuel. Approval from the end consumer can greatly affect the bottom line. The potential benefits of the EPA and NHTSA’s Phase 2 green shipping regulations are undeniable. However, the benefits won’t be immediate, and carriers will have to take a financial leap to meet the standards. Ultimately, the cost savings and environmental benefits should quickly outweigh the downsides of the regulations. But, either way, shippers will feel trucking regulations too. Finally, green shipping definitely has a future. Keep reading: Market Update: 2016 – 2017 Trucking Regulations May Aggravate Economic Trends.

The omni-channel environment consists of demanding, knowledgeable consumers who expect a seamless, customized shopping experience. They want to order from anywhere, at any time – these empowered shoppers have changed fulfillment and transportation in retail supply chains.

The sharp and sustained decline in the price of oil has had far-reaching consequences across the U.S. economy. There are numerous factors that have caused oil prices to drop. And now, with excess oil supply, the effects are all-encompassing, with positive and negative impacts on carriers and shippers.

All interstate commercial trucks must install and update electronic logging devices (ELDs) by November 30, 2017. An ELD allows truck drivers and commercial carriers to efficiently record and track their hours of service.

CPG shippers rely heavily on LTL transportation, which leads to several inefficiencies. CPG shippers rarely have the freight volume to utilize a full truckload, and often feel stuck using more expensive, slower LTL transportation. But, there are ways to make LTL shipping as efficient and cost-friendly as TL shipping.

reshoring Companies are strategically moving manufacturing facilities, examining labor costs and time to market, plus looking for accessibility to existing or developing markets and sources of innovation. Some companies are moving facilities offshore or nearshore, while many others are bringing production back to the US. According to a study from Boston Consulting, 54% of US manufacturers with more than $1 billion in revenue are considering reshoring some or all of their manufacturing.

Industrial distributors are beginning to see the potential of proper transportation management, how it can add much-needed value throughout their supply chain, and how it can address some of their toughest challenges. The challenges distributors face are unique, but the effects of these challenges are representative of the difficulties many are having in the broader industrial sector – restricted supply, plummeting demand, dropping revenues and out of control operating costs.

The Federal Motor Carrier Safety Administration’s (FMCSA) hours of service (HOS) rules have been controversial and complicated. A lot of talk has surrounded the HOS regulations, and whether they will become a rule again or not is up in the air. However, it appears the HOS rules have been dealt a decisive blow. Truck drivers and carriers said the rules were unnecessary and costly. FMCSA and safety advocates said the HOS rules were a step in the right direction for highway safety. Neither side has been able to factually prove their point yet. As a reminder, the 34-hour restart provision was the most controversial part of the 2013 HOS update. The 2 main components of this provision are: Two periods of 1:00 a.m. – 5:00 a.m. had to be included within the mandatory 34-hour restart period One restart per week

What is Partial Truckload Shipping? Partial truckload, or volume LTL, is a mode used by shippers looking for faster transit times, less handling and lower costs. Partial truckload shipments are used by shippers whose freight is less than a full truckload, but more than an LTL shipment. The exact amount of freight needed for a partial truckload shipment depends on the weight, linear feet and service requirements.

Rail transportation has historically been cheaper and slower than over-the-road (OTR) transportation. It’s a valuable service for raw materials, freight that is not time-sensitive or freight that is expensive to haul. As OTR costs rise, many shippers look for new opportunities to reduce overall transportation spend, and despite the current rise in rail costs, intermodal is a practical alternative.