Blizzard smothered most of the US last week, affecting trucking routes
Good morning! Happy Monday! Welcome to today’s edition of our supply chain newsletter. As always, we're excited to bring you the latest news and insights from the world of supply chain management. So grab a cup of coffee, settle in, and let's dive in! ☕️
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Trucking in a blizzard can be extremely dangerous and challenging, and truckers should take several considerations to ensure their safety and the safety of others on the road. Checking weather and road conditions, inspecting the vehicle, slowing down and increasing the following distance, using proper lighting, and staying aware of changing conditions are just a few of the considerations truck drivers should make during a snowstorm.
After last week’s blizzard took even areas of sunny Southern California by surprise, these considerations are more important than ever.
Check out today’s featured article from The Trucker to read about the blizzard storm that pounded much of the United States last week - from Southern California to the Pacific Northwest. Is this the last major storm of the season?
Featured Article:
Massive winter storm wreaks havoc on travel across large swath of US | The Trucker
“A coast-to-coast storm that paralyzed roads and blacked out nearly 1 million homes and businesses was set to pound California on Friday, sparking warnings about floods and blizzards.”
Trucking & Owner-Operators 🚛
Volatile spot market is forcing owner-operators to struggle
Overall, small fleets and owner-operators may struggle to live off of the current spot market due to market volatility, competition, capacity imbalances, lack of bargaining power, and economic uncertainty. These challenges can make it difficult for them to maintain profitability and remain in business.
: The spot market can be highly volatile, with prices fluctuating rapidly in response to changes in supply and demand. Small fleets and owner-operators may find it difficult to manage their expenses and maintain profitability when prices are unpredictable. It is also highly competitive, with many players vying for the same loads. This can lead to downward pressure on prices, making it difficult for small fleets and owner-operators to secure profitable loads. Capacity imbalances, where there are more trucks than available loads, can lead to oversupply and lower prices. Small fleets and owner-operators may struggle to find profitable loads during periods of oversupply. Additionally, small fleets and owner-operators may have less bargaining power compared to larger carriers, making it difficult to negotiate favorable rates with shippers and brokers.
Repair & Maintenance 🧰
Preventive vs. predictive maintenance: trucking’s latest trend
Fleets should consider moving from preventive maintenance to predictive maintenance because predictive maintenance is a more efficient and effective approach to maintenance. Predictive maintenance uses data analytics and machine learning algorithms to predict when a vehicle or equipment is likely to fail. This allows maintenance teams to address potential issues before they cause a breakdown or downtime, minimizing the time and cost associated with unplanned maintenance.
Predictive maintenance also can help fleets save money by reducing the frequency of unnecessary maintenance and minimizing the need for emergency repairs. By focusing maintenance efforts on the specific needs of each vehicle or piece of equipment, fleets can optimize their maintenance budgets and reduce the overall cost of maintenance. Additionally, predictive maintenance can also improve safety by identifying potential issues before they cause an accident or other safety incident. By addressing issues proactively, fleets can reduce the risk of equipment failure, which can cause accidents and injury to drivers and other road users.
Let’s Get Global 🌎
🚀 SpaceX rocket transports the world’s most advanced communications satellite. On February 17th, the I-6 F2 satellite was launched aboard SpaceX’s Falcon 9 reusable rocket from Cape Canaveral, Florida. The satellite is expected to spend a few months orbiting the Earth above the equator and will connect to its first customers later in the year. An additional five satellites will be launched by 2025, setting in stone the advancement of commercial communications satellites. These satellites will feature both L-band (ELERA) narrowband and Ka-band (Global Xpress) high-speed broadband communications and be in operation for approximately 15 years.
🔋 Regardless of naysayers, the EV market benchmark is still led by Tesla. Former Ford CEO and CNBC contributor Mark Fields are voicing his opinion on the electric vehicle manufacturer and throwing his support in the ring. Tesla has been dealing with some negative press associated with its CEO Elon Musk and several lawsuits regarding its self-driving feature. However, Tesla was one of the first companies to enter the electric vehicle market, giving it a significant advantage over its competitors. This allowed Tesla to establish itself as a leader in the market and build a loyal customer base.
🐟 Cod is back on the menu, boys! Pennsylvania’s fish supply chain elevates after challenges. The Western Pennsylvania fish supply chain is a complex network of organizations and individuals involved in the production, distribution, and consumption of fish and seafood products. The success of this supply chain relies on the coordination and collaboration of all stages to ensure the efficient and sustainable production and distribution of high-quality fish products.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🔍 Unexpected events happen all the time in the supply chain. A company can negotiate unexpected events in supply chain management by implementing a risk management plan and building flexibility in the supply chain. Companies should maintain open communication with suppliers to stay informed of any potential disruptions or delays. They should also work collaboratively with suppliers to develop contingency plans for unexpected events. Additionally, companies should continuously monitor the supply chain to identify potential disruptions and respond quickly to unexpected events. This can involve using technology to track inventory levels and transportation routes, and using real-time data to make informed decisions.
📝 Effective Contract Management makes all the difference. A company should establish clear expectations for the contract, including timelines, deliverables, quality standards, and payment terms and these expectations should be communicated clearly to all parties involved in the contract. A company should develop a standardized contract template that includes all necessary clauses and provisions, which can be used as a template that can be customized for each contract but should provide a consistent structure and format. Additionally, a company should conduct a thorough review of the contract before it is signed, including legal and financial reviews.
⚡️ UPS unveils Freightliner eCascadia, its new fully electric Class 8 truck. Electric trucks produce zero emissions, which helps UPS to reduce its carbon footprint and achieve its sustainability goals. These also may be cheaper to operate and maintain compared to diesel trucks, as they have fewer moving parts and require less maintenance. Many cities and countries are implementing regulations and standards to reduce emissions from transportation. Using electric trucks can help UPS to comply with these regulations and avoid fines and penalties. : Using electric trucks can enhance UPS's reputation as a responsible and environmentally conscious company, which can improve customer loyalty and attract new customers who prioritize sustainability.
💰 Acquiring a fleet? Prepare to be flexible. Agility is key in equipment acquisition plans for trucking fleets because the logistics industry is constantly changing, and companies need to be able to adapt quickly to stay competitive. Customer demands and expectations are constantly evolving, and trucking fleets need to be able to respond quickly to changes in demand. This may involve acquiring new equipment to meet specific customer requirements or shifting resources to different regions or industries. Technological advancements in the trucking industry, such as autonomous vehicles, electric trucks, and telematics, are rapidly changing the way that logistics companies operate. Fleets need to be agile enough to adopt new technologies quickly and efficiently.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 28, 2024, from iLevel Logistics Inc.