Truckers are seeking solutions for “drowsy driving”
Good morning! Welcome to another edition of our daily newsletter on logistics and transportation management. We hope you had a great start to your week and are ready for another day of optimizing your supply chain operations. Grab a cup of coffee, sit back, and let's dive into the world of supply chain logistics together. 🚛💨
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Let’s talk about “drowsy driving.” Drowsy driving in the trucking industry refers to the practice of operating a commercial vehicle while fatigued, which can occur due to a lack of sleep or long hours spent driving. This can be a serious safety concern as it can lead to decreased reaction times, impaired judgment, and even falling asleep at the wheel.
The Federal Motor Carrier Safety Administration (FMCSA) has implemented regulations that limit the number of hours a commercial driver can operate a vehicle without rest, commonly known as Hours of Service (HOS) regulations. Despite these regulations, drowsy driving remains a problem in the trucking industry. Some drivers may falsify logbooks to avoid penalties, and others may drive while fatigued due to pressure from employers to meet tight delivery schedules.
Check out today’s featured article from Truck News to read about some of the trending solutions to this persistent problem in the trucking industry. If Hours of Service regulation modification isn’t the sure-proof answer… how can truck drivers effectively manage driver fatigue? ☕️
Featured Article:
Strategies to fight driver fatigue go beyond Hours of Service | TruckNews.com
“Most people are aware of the dangers of drinking and driving but don’t realize that drowsy driving can be just as fatal — and likely happens more often than we think.”
Small Business & Company Culture 🎉
The NFIB Small Business Optimism Index is dropping
The National Federation of Independent Business (NFIB) is a non-profit organization that represents small and independent business owners. Founded in 1943, the organization advocates for policies and legislation that support the interests of small businesses and promote entrepreneurship. The organization’s “Optimism Index” is a monthly survey that measures the level of optimism among small business owners, as well as their perceptions of the economy and their own businesses. This survey covers a range of topics, such as sales, earnings, employment, inventories, capital spending, and credit conditions. It is based on a scale of 0 to 100, with a reading above 50 indicating that small business owners are optimistic about the economy, and a reading below 50 indicating that they are pessimistic.
For 49 years, the index has sat pretty at an average of 98. However, in December of 2022, the index dropped two points to 89.8 - this is now the twelfth consecutive month below that average. Inflation remains the single most important problem for small business owners with hiring challenges falling in a close second.
With the NFIB Small Business Optimism Index being considered a leading indicator of economic activity, a drop in the index is an indication of economic weakness. Small businesses are a significant contributor to economic growth, and the level of optimism among small business owners can provide insight into the overall health of the economy.
Theft & Safety 🦺
$223 million in cargo stolen in 2022, according to CargoNet
Cargonet, a digital platform for logistics and transportation management, has released some staggering numbers. According to the company, there was a 15% increase in cargo theft across Canada and the United States in 2022 compared to 2021 numbers. The average value of the stolen cargo was approximately $215,000 and the top commodity targeted by thieves were household goods and electronics.
A whopping 46% of all theft recorded in the two countries was attributed to California, Texas, and Florida. The Golden State itself earned the top spot with a 41% increase in cargo theft in year-over-year numbers.
Some of the theft comes in the form of fictitious cargo pickups - a situation where a shipment is reported as picked up by a carrier or freight forwarder, but unreality the cargo has not been loaded or transported. This can occur for various reasons such as fraud, errors in data entry, or miscommunication between parties involved in the process. To minimize the chance of fictitious cargo pickup, companies can implement strict procedures for cargo tracking and monitoring, regular communication with the carrier, and use of verified and trusted partners in logistics.
Let’s Get Global 🌎
Jennifer Coolidge Disaster GIF By Golden Globes via GIPHY
😷 China’s controversial zero-Covid policies are over, but at what cost? With the Chinese New Year holiday around the corner, Chinese factories are struggling to keep their factories staffed while employees fall ill with Covid. A sharp spike in cases has been recorded in recent weeks as the country eased its strict zero-Covid policies for the first time in years. As of December 26th, 2022, cases grew by more than 67%, according to the World Health Organization. While some speculate that the numbers are far greater and being under-reported, China-based manufacturers are facing a serious problem if operations cannot be performed due to a lack of manpower.
🇩🇰 Denmark’s southern islands welcome a record-breaking all-electric ferry. The Ellen ferry transversed the 22-nautical-mile route to make history with the world cruise record for an all-electric ferry. Electric propulsion engine supplier Danfoss Editron praised the achievement, stating that the ferry made the route on a single charge. After the successful cruise, the company is projecting that approximately 900 models of the same e-ferry can be launched across Europe to replace older, less fuel-efficient models.
⏳ China’s logistics infrastructure could have a major comeback. The increased demand during the pandemic years revealed some serious issues in the Chinese reign as a global manufacturer king. However, according to the Chinese news agency Xinhua, the country’s General Office of the State Council has a five-year plan to modernize its logistics system. In order for China is remain competitive as the world evolved around them, they need to invest heavily in changing the system. Western manufacturers are under pressure to pull operations from the country and China needs to get creative about making up for lost business.
iLevel With You 🏡
More topics for the average American household to consider…
🍗 Zaxby’s boneless wings need a CSCO, too. The fast food chain headquartered in Georgia recently welcomed Carl Mount to the fray as the new chief supply chain officer for the company. Formerly the head of supply chain for KFC, Mount boasts a wealth of experience in the supply chain industry - from manufacturing to logistics. Zaxby’s CEO Bernard Acoca praised Mount’s qualifications and highlighted the company’s goals of optimizing solutions to better serve their franchises and customers.
⛽️ Fuel price instability: can it be predicted? Logistics companies and regular U.S. consumers are both preparing for a volatile year to combat the insanity of gas prices over 2022. Are there tactical approaches that can be taken to anticipate how expensive it can get? Trucking is approaching the issue with fuel cost surcharges to line their invoices and offering dynamic delivery pricing. Consumers have fewer options to ease the strain at the gas pump. Some recommend diversifying energy sources and building flexibility into your budget.
🥛 Even the dairy industry is getting in on the electric big rig hype. California dairy farm Rockview Farms in Downey has introduced two new Volvo electric trucks into its fleet to assist the farm in supporting nearby customers. These trucks were funded through the Volvo LIGHTS project - a project that worked to benefit cleaner air, reduce noise, and workforce development opportunities throughout Southern California. The freight electrification trend is being spearheaded in the region.
🚌 Zero emissions? Zero fares? Welcome to the new public transit movement. Washington D.C. is the latest city to adopt a zero-fare program for its public transit riders, following similar moves in Denver, Colorado, San Francisco, California, and Boston, Massachusetts. Advocates for these programs cite accessibility, equity, and lessening congestion as benefits and reasons to accelerate these programs nationwide. It is worth noting that while the concept of free public transit is appealing, it can be challenging to implement and sustain financially.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
💡 Pristine, comprehensible, and current data is critical for supply chains. In a supply chain, inaccurate data can lead to a variety of problems, such as incorrect inventory levels, miscommunication with suppliers, and even lost sales. Clean data helps to ensure that the entire supply chain is operating efficiently and effectively. Accessible data helps to ensure that everyone in the supply chain has the information they need to make informed decisions and take action quickly. The use of clean, accessible, and up-to-date data can improve the transparency and traceability of the supply chain, this can help organizations to identify potential issues early, such as supplier disruptions, and quickly take action to minimize the impact, it also can help organizations to meet regulatory requirements and improve their relationships with customers and suppliers.
🤖 Robots may be more accessible in 2023. According to Universal Robots, a Danish collaborative robot vendor, 2023 is the year for manufacturing and warehouses to implement the new technology. Adopting robots in the workplace is meant for collaborative operations - not replacing human workers. Collaborative robots offer several benefits, including increased efficiency, safety precautions, increased flexibility in operations, and improved quality control.
🚛 The freight market could be stabilizing. According to data released by the FreightWaves National Truckload Index, truckload spot rates hit a low of $1.67 two months ago in November. Since then, those numbers have increased to $1.98 per mile, which suggests that the freight market could finally be heading back to a normal situation. After the volatility of 2022, this is welcome to many trucking companies.
♻️ The U.S. Environmental Protection Agency cannot be deterred. The EPA will be publishing the official rule on January 24th in regard to strict clean air standards for heavy-duty trucks from 2027 onward. While EPA maintains that the move is for the betterment of air quality and public health, trucking industry leaders are claiming the move is too much, too quickly - and that it will knock many small businesses out of the field.
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.