DictionaryWelcome to our first Logistics Glossary post of the Fall season! This week’s focus: factors that affect trucking costs! One of the things that we’ve written about before is the difference between calculating the lowest rate and the lowest total cost when quoting a delivery from point A to point B. Today, we can provide a real concrete example of factors that can make calculating a basic rate misleading. Any good third party logistics (3PL) providers can provide a rate for transport, but to be able to consider these factors below to generate a lower total cost (even though it is not the lowest rate in the market) is what makes them great! But let’s start with the definition of what getting a rate is in the logistics sense:

Rate/Pricing

Definition: In logistics terminology, getting a rate or pricing from a 3rd party logistics provider simply means that you are being given the established charges for the transport of certain goods.

So, if I want to transport a package from New York City to Mexico City, the rate would simply mean how much the service would cost to move these goods from origin to destination. But that doesn’t really cover all aspects for what your total cost could be. What is usually being calculated is the line haul cost.

Line Haul Cost

Definition: What is usually given to you when you as for a rate from origin to destination. Exclusive to trucking terminology, it is incurred in transporting goods over a route but not including costs of loading and unloading. Line-haul costs vary directly with distance.

Sometimes, because rates are Below we’re providing a list of some common, additional costs that should be taken into consideration when getting rates to have a better idea of total cost.

Loading/Unloading Costs

Definition: In logistics terminology, loading and unloading is the process of putting shipments into or taking shipments out of containers respectively. The main reasons that these costs apply to your shipments is primarily because initiatives taken to minimize problems that may occur during these phases, especially the loading phase. Problems such as inadequately sized docks and rough terrain can lead to load damage and more costly delays.

Fuel Surcharge

Definition: A fuel surcharge is an additional charge for motor carriers like trucks to cover fuel costs and is dependent on the line haul. There is some controversy with how fuel charges work as having a line haul cost and the fuel surcharge in flux makes it hard to calculate total freight spend and makes carrier relationships more difficult to maintain. There’s an old blog post from Inbound Logistics Magazine that gives great insight into the standardization of fuel surcharges.

Stop-Off Charge

Definition: A stop-off charge is an additional cost to cover trucks having to make specific stops between origin to destination. In some cases this ‘stop-off’ might be conveniently on route to the destination, but it is not necessarily always the case. These factors obviously affect the cost for the line haul as we affect the distance and the route that trucks have to travel through. The main reason stop-off charges happen is primarily due to packages in the truck having to be delivered to more than one location (i.e. Toronto – Montreal, but with a stop-off in Ottawa). But another common reason is due to warehouse space capacity issues. Sometimes the destination has an overflowed warehouse and a stop-off is needed to accommodate for it.

Bond Fee

Definition: A special type of storage fee for ‘legal’ reasons and is usually seen in cross-border shipments. A package ‘in bond’ means that the goods under customs control (for clearance, inspection, or other form of legal involvement) either until import duties or other charges are paid, or to avoid paying the duties or charges until a later date.

We hope after looking at some of these cost definition you have a better appreciation of our earlier statement:

A good third party logistics (3PL) providers can provide a rate for transport, but to be able to consider other cost factors to generate a lowest total cost (even though it is not the lowest rate in the market) is what makes them great!

If, for example, I wanted to take a load from Vancouver to San Francisco and I have been given Rate A at $100 and Rate 2 at $120 from just the line haul cost. I could obtain estimates on the additional cost factors and find out that other charges are similar except Rate A has a high fuel surcharge of $50 and a bond fee of $30, while Rate B has a those costs at $20 and $10 respectively. We can see that Rate A actually has a total cost of $180 while Rate B has a total cost of $150. Thus the lowest total cost would be Rate B. This is something to definitely keep in mind when getting rates for transport. It pays to know your logistics terminology!

And that’s all for us this week! Hope you have a great weekend! If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news! We’ll catch you next week!

There have been some exciting new developments in the world of logistics this year; the news of a predicted slow growth in the industry for the next five years hasn’t stopped innovation. The logistics industry has been creating exciting new developments along all the stages of the supply chain. From 3D printing to robots that organize your warehouse.

This week we’d like to focus on two new potential modes of transportation that can drastically change the future of what we perceive to be core tenets of the logistics industry today. Namely, one that stems from the military and one that has long been forgotten from the golden age of flight.

From the Military to Your Front Door

The first of the two new modes of transportation being explored is the commercial applications of the military drone. Drones, by definition are unmanned aerial vehicles (or systems). They are, according to Chris Andersen (creator of DIY Drones and co-founder of 3D Robotics):

“Aircraft that have the capability of autonomous flight, which means they can follow a mission from point to point (typically guided by GPS, but soon this will also be possible through vision and other sensors)… Usually drones carry some sort of payload, which at a bare minimum includes cameras or other sensors as well as some method to transmit data wirelessly back to a base.”

Source: Wikipedia Commons
Source: Wikipedia Commons
Recent developments in technology have made the production of drones quite cheap. You can actually purchase your very own drone with cheap models ranging from the $350-500 range with fewer features or in the $1000 range you can get one with many of the non-weapon based features that come with military grade drones.

Unfortunately for the North American market, the US Federal Aviation Administration is currently in limbo and won’t be testing out commercial transport drones until at least 2015. But that doesn’t mean other countries haven’t already taken the initiative to make it happen.

One of China’s biggest delivery companies, SF Express, has already received government permission and is testing their drones with the intention to deliver goods to remote areas. But it seems that drone delivery might be useful for more than just remote areas, some experts suggest that drone delivery can be extremely useful in congested city centers. Drones are said to have the potential help alleviate both traffic and pollution problems in China’s major cities.

Bringing Back the Zeppelin

The Aeroscraft in construction
The Aeroscraft in construction
Zeppelin’s have not had the best reputation ever since the Hindenburg disaster of 1937, but over 75 years later have we developed enough as an advanced society to bring it back? Worldwide Aeros Corp. thinks so. Founded by Igor Pasternak, the company has introduced their first zeppelin for transporting commercial goods: the Aeroscraft.

With the intention to not just be another mode of air transportation for transporting goods across the globe, the Aeroscraft is actually intended for making humanitarian relief and military missions easier and more practical. Worldwide Aeros Corp. boasts that their zeppelin is not only cost effective and more environmentally friendly (it uses approximately one third as much fuel as a cargo plane), but also more practical as it doesn’t require airports or roads. The lack of need for airports is actually a unique key feature of these zeppelins as it really adds convenience with regards to delivery sites.

So what do you think of these two new developments?

If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services. We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news! We’ll catch you next week!

DictionaryWelcome to our last Logistics Glossary Week post of the summer! This week we’re focusing on the different modes of transportation for logistics and we’re finishing with a look into the potential future of logistics with the introduction of a new, interesting mode of transportation!

Intermodal

Definition: In logistics terminology, intermodal simply means using two or more modes of transportation, usually this refers to truck and rail, but it can refer to any combination of different mdes of transportation. For example truck and oceangoing vessel.

Intermodal transportation is one of the most common ways goods are transported, especially when crossing borders or when transporting good for significantly long distances. Indeed, our biggest offer as a third party logistics provider is intermodal logistics services. News earlier this year suggested that the logistics industry is to experience slow growth over the next 5 years, but it seems that certain aspects of logistics are less affected. Chief Supply Chain officers look to 3rd party logistics providers and intermodal seems to be on the rise in certain parts of the world, for example Eastern Canada.

Truckload & LTL

Definition: We’re grouping these two because they are essentially the same, but differ mainly in the size of shipment. When you think logistics, you normally think truckload transportation; moving full truckloads of freight from the point of origin to its destination. Less-than-truckload (LTL) transportation services consolidate and transfer smaller shipments of freight, usually through a network of terminals and rally points.

Trucking is what makes good move across the world. It is the standard for logistics, hence why you might think trucks when you hear the word logistics! Because this is one of the most in-demand mode of transportation for getting good from origin to destination, there is a huge demand for truck drivers. This is no truer that today, when the addition of e-commerce has created even more demand for trucking services. This increase in demand, combined with the aging trucking population (the average age is about 40, with 20% of the total population over 55), there is a real need to increase the tuck driver workforce in order to keep up with tomorrow’s logistics demands.

Ocean and Air Carriers

Definition: Useful for global logistics, ocean and air carriers are what you would assume they are. They are cargo ships or airplanes that carry freight. Usually these types of transportation fit under intermodal logistics services because they tend to be combined with some form of ground transportation.

Drones

Definition: Also known as ‘unmanned aerial vehicles’ or ‘unmanned aerial systems,’ drones are best known for their military applications. They are aircrafts that can fly autonomously; they usually follow a set path from origin to destination using a form of GPS guide.

The development of technology has brought down the prices of drones to as little as $500-1000 USD. We found an article that takes a look at people in the logistics industry who have introduced the concept of drones as a means to transport goods. This could create a potentially hassle-free way that can transport goods speedily!

And that’s all for us this week! Hope you have a great Labour Day Weekend! If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services. We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news! We’ll catch you next week!

Photo Credit: Bill Butcher/USFWS
When goods are delivered for large packages what is the first thing that comes to mind? If you thought of a big cardboard box, then you’re among the majority of the population. This quintessential cardboard box has been a staple tool in the logistics industry for transporting all sorts of products. But times have changed. The future of logistics is trending towards more sustainable practices as well as for more creative ways to have efficient throughput in the supply chain cycle.

Enter the world of Intelligent Returnable (or Reusable) Transport Items or iRTIs. The concept comes from combining RFID technology to regular RTIs (Returnable Transport Items). RTIs are important to the development of not just sustainable business practices, but also for the practicality and potential profitability that it can offer. The RFID tags collect and capture information about the containers they’re tagged onto as well as its contents. This gives a whole new set of accessible, actionable date for supply chain managers.

This week we’re going to talk about our top three advantages of having an iRTI system for the global supply chain.

Improved Sanitation and Cargo Control

iRTIs are a great benefit primarily in the food and pharmaceutical industries, the main benefit of which is the fact that these container provide not only a more hygienic solution due to the nature of having durable, fully enclosed containers, but also for the fact that it lends itself to special considerations such as temperature control. This greatly benefits perishable supply chain challenges iRTIs have are able to track the conditions of goods within containers.

Other methods can provide holes along the monitoring of the supply chain and this lack of visibility and actionable data for perishable goods such as pharmaceuticals and food can lead to product loss, recalls, and legal woes. iRTIs can greatly reduce, and in certain cases, eliminate these issues leading to a system set up with avoidable product loss.

Less Wasteful and a More Sustainable Solution

Reusable packaging is not a new concept, and it has been shown in the past to be tantamount to solid waste reduction strategies. Because containers are durable and reusable, iRTIs reduce the carbon footprint and waste that non-RTI packages create primarily by reducing their solid waste output. But iRTIs take it one step further; Rick LeBlanc from RFID Arena provides some great concrete statistics on its sustainability advantages:

“One third party study, reviewing the use of RPCs [Reusable Plastic Containers] versus corrugated display ready packaging for 10 fresh produce commodities, concluded that RPCs required 39 percent less total energy, created 95 percent less solid waste, and generated 29 percent less total greenhouse gas emissions than corrugated display ready containers.”

Profitability and a Closed-Loop System

Reusable containers have already been an attractive consideration in the supply chain because they can greatly reduce the cost-per-trip of transport packaging by virtue of the fact that the containers are re-usable, meaning that costs are predicted based on the durability of the containers themselves as opposed to non-RTI containers which would just be disposed of after delivery. iRTIs take this cost-saving one step further due to the abovementioned features of greatly reducing instances of product loss, liability exposure, recalls from ineffective products, etc.

Thus, it seems that RFID technology is slowly making itself more and more relevant to the logistics and supply chain industry. The addition of RFID to a global supply chain can create ‘smart crates’ that not only really cater to food and pharmaceuticals, but may be a viable option in general for both its cost-cutting and sustainability benefits.

Well that’s it for this week. Tune in next week for out next blog post! If you want to know what we do as a third party logistics provider (3PL) check out our core services. If you haven’t already check us out on Twitter (@MoraiLogistics), give us a follow or a @mention, we’re looking forward to engaging with you. Otherwise, stay tuned for next week’s post on our monthly Logistics Glossary Week series!

Mexico Flag Morai Logistics Supply Chain
 
In the world of logistics several factors can be involved when it comes to producing and moving your goods. Where is the best place to manufacture your products? Should we stay within the county’s borders or go offshore? If so, which country would produce the most cost-effective solution, or produce with a certain level of quality? This month, we’re going to focus on an interesting logistics hub that is sometimes overlooked, but is always at the back of most Supply Chain Officers minds: Mexico.

The Offshore Duel: Mexico vs. China

While there has always been an attraction towards creating logistics and supply chain hubs in Mexico as a means to reduce production costs, among other things, the competition has always been Mexico vs. China with regards offshoring options. For the past decade this has always been the case, but as the US economy creeps to pre-recession levels, American companies have been looking to restructure their supply chain. Companies are bringing their products closer to home and Mexico has become an attractive nearshoring alternative to making products within country in order to keep costs low while maintaining production quality.

According to the Offshore Group’s recent blog post:

Michael Shifter, president of Washington policy group Inter-American Dialogue, told Reuters U.S. manufacturers are shifting their sights to Mexico to be part of the country’s $800 billion goods and services market.

“There’s something happening in the region and the U.S. wants to be part of it,” Shifter said. “Whether there’s a well-thought-out vision or policy remains a question. But there is more of an affirmation of the region and a willingness to engage.”

Mexico’s Logistics Infrastructure

Mexico is aware of these trends and has already taken initiatives in order to attract companies to invest in their logistics hubs. Here are some of the highlights that we find to be the most appealing with regards to being a strong contender as a logistics hub for companies.

Improvements to Mexico’s Railways

According to Railway Track and Structures (RT&S), Mexico is investing in 4 billion pesos (~$318 million USD) to copmlete 12 rail-specific projects underway that will improve routes between Mexico City and Queretaro (a known manufacturing centre) and between Meridia and the Riviera Maya. This plan is said to increase transportation and communications speed; offering attractive intermodal options for many US companies.

Improvements to Corporate Social Responsibility and Sustainability

As US businesses begin to relocate south of the border, considerations to improve Mexico’s corporate social responsibility (CSR) policies and sustainability practices have gone underway. Over half of the 166 publicly traded companies in the Mexican stock market have created a system for managing sustainability related activities, with considerations for improvement in the supply chain included. This is a great start due to the fact that sustainability along all levels of the supply chain is still in its developing stages at the global level. Such an initiative offers a competitive edge towards Mexico’s main offshoring competitor, China, as trends for companies to tackle on green practices have now prioritized considerations on sustainability as a determinant for deciding offshore locations.

For more information about how Mexico is seen as an attractive supply chain location for both manufacturing and distribution, check out this great white paper from Jones Lang LaSalle.

If you liked this blog post and you want to read more of our content, don’t hesitate to subscribe to our blog. Or if you want more logistics and supply chain content throughout the day, follow us on Twitter! If you’re interested in what we do as a 3rd party logistics provider, feel free to check out our core services. Otherwise, we’ll catch you next week!

DictionaryWelcome back to our monthly Logistics Glossary Week post! A couple of weeks ago we posted some great infographics that we found and a lot of them seemed to focus on trucking when we were searching for content. So this month we’re going to focus on the world of trucking. Specifically, we’re going to cover all of the different types of trailers. There are currently about 35 terms for the number of different trailers that is recognized in the American trucking industry. This month we will only be focusing on four types that we think are good to know about!

Dry van

Definition: What you first think of when you think for a truck with a trailer. A dry van carrier is an enclosed non-climate controlled rectangular trailer. It mainly carries general cargo, including food (but the kind that doesn’t require refrigeration). These types of trucks are loaded or unloaded via the rear doors and you would need elevated access for forklifts to put goods into the trailer.

Reefer or Refrigerated Van

Definition: Reefer trailers are truckload carriers that are designed specifically to keep perishable goods refrigerated. This type of carrier tends to be used by the food industry, but can also be used by pharmaceutical companies.

Reefer trailers are particularly important with regards to logistics because of their main purpose: preserving goods. Thus of all types of trailers, reefer trucks can be deemed the most time sensitive. This is apparent in certain governments attempting policy changes specific to the refrigerated vans. For example, India’s National Centre For Cold Chain Development (NCCD) has teamed up with the government to allow refrigerated trucks and vans toll-free access across all states.

Flatbed

Definition: A flatbed is a type of trailer that has no enclosures or doors. Sometimes known as a ‘haul brite,’ flatbeds can be loaded or unloaded from the sides and the top and doesn’t require elevated access for forklifts.

Tanker

Definition: Tankers have the primary purpose of hauling bulk quantities of liquid. They tend to be cylindrical in shape.

Tankers are special trailers that require quite a bit of attention and care as tankers can carry liquids that may be dangerous, for example oil. A fair chunk of accidents in the trucking industry result from tanker type malfunctions or accidents. And even when tanker trucks are being maintained gas leaks from flammable substances such as oil can lead to severe accidents.

We hope you’ve enjoyed our third Logistics Glossary week post. To keep up with our posts, and to see other content related to logistics and supply chain don’t hesitate to follow us on Twitter or subscribe to our blog! If you’re interested in what we do as a company, feel free to check out our services. Looking forward to seeing you in July!

Hello everyone! We hope you’re enjoying your summer so far. This week we’d like to focus on increasing awareness about the logistics industry as a whole. There is a growing number of people outside of the logistics and supply chain industry who are now trying to become more aware of where their products are coming from and the entire process behind getting it delivered to your doorstep. So we scrounged the web to find you not just one online video series on logistics, but three!

1 – Introduction to Supply Chain Management

Arizona State University’s (ASU) W.P. Carey School of Business has released an open online video series on supply chain management in an effort to “inspire a new generation of supply chain management professionals across the country and around the world.”

2 – Supply Chain Brain’s Video Series

The folks over at Supply Chain Brain and Kinaxis have teamed up to create an online video series during their annual Kinexions Conference. They completed a set of video interviews with customers, analysts, and executives. While the videos mainly focus on attendees and people over at Kinaxis, they offer great insight from thought leaders in the industry and give a great overview on some specific topics in the logistics and supply chain industry.

3 – The Supply Chain Academy

The Supply Chain Academy is a special case for this list because it’s more than just a video series, they offer a series of massive open online courses (MOOCs) that grant you certificates by Dr. Simon Croon. He started this with colleagues at Warwick University in the hopes of providing a dynamic, engaging, and focused course series about the supply chain. The current course schedule is for sustainability and the global supply chain, but registration is now closed. Here’s the introductory video though:

Registration will open in July for the Fall 2013 class titled “The Management of Supply Chain Costs.” So if you’re serious about learning about the logistics and supply chain industry, we highly recommend registering and taking advantage of this free online course (you do get a certificate upon passing!).

We hope these videos provide you with a better grasp into the complex world of logistics and supply chain; getting products from point A to point B can be a very complex process! If you want to know what we do as a third party logistics provider (3PL) check out our core services. If you haven’t already check us out on Twitter (@MoraiLogistics), give us a follow or a @mention, we’re looking forward to engaging with you. Otherwise, stay tuned for next week’s post on our monthly Logistics Glossary Week series!

Oil Rail Train
Source: Geograph
Last month we took a look at the retail industry and how its supply chain is affected with regards to recent news. We’re continuing the series this month by exploring the crude oil industry. If you have been keeping up with recent news, last Saturday the town of Lac-Mégantic experienced an unexpected tragedy when 73 black rail tankers carrying pressurized containers of crude oil was derailed.

The train was parked for an overnight shift change, the tankers decoupled from their locomotives for an unknown reason (as of yet) and rolled downhill without any drivers into the town centre, derailing and setting off a series of explosions. The explosions caused fires that lasted for hours; about 30 building were destroyed and a death toll of at least 15 with dozens unaccounted for.

This tragedy has given light to concerns of the logistics behind crude oil transport and below we will take a look at how development in the crude oil supply chain has changed with regards to the modes of transportation and the factors that affect crude oil costs.

Crude Oil Transport Shifting to Rail

The revival of oil trains in North America stemmed from the Bakken shale in North Dakota due to fracking (i.e. hydraulic fracturing) creating a huge amount of product that needed to be moved without too many options with regards to the pipeline. This led to the oil industry turning to rail to move crude oil to refineries at the East and West Coasts as well as the Gulf Coast. This growth led to huge shipments of oil. For example, in Canada’s railroads alone rail transport for crude oil has gone from 500 carloads in 2009 to a predicted 130 000 to 140 000 this year, according to the Railway Association of Canada.

Apart from being a highly efficient mode of transport for crude oil, costs for train transport can also be lower due to the crude oil in trains being made entirely of tanker cars of oil. This effectively creates an above-ground pipeline and is more cost-effective than traditional the traditional mixed cars of boxcars, flatbeds, etc. (a.k.a. ‘manifest trains’).

Supply Chain Factors that Affect the End Cost of Oil

We’d like to finish this off with a look at two main factors, with regards to the logistics and supply chain aspects of oil transport, lead to changes in cost for the end user.

Mode of Transportation – As discussed above, consumer end cost rises if we limit train movement. If you change the cost from intermodal/rail to truck transport, costs will increase. Equipment shortages can also affect the prices of oil as in order to supply the demand, companies will have to seek alternative modes of transportation in order to meet consumer needs. Disasters along the supply chain can have a devastating impact on the price of oil, something we have already been made aware of in 2010 when the BP oil spill on the Deepwater Horizon rig happened.

Supply & Demand – Obviously one of the biggest factors that affect the end cost of oil is how much we have available to distribute and how much we need. There are also global oil inventories that affect pricing. Global oil inventories exist to balance the supply and demand. When production exceeds the demand for oil, the excess oil is stored. This way, when consumption exceeds the current supply of oil, the oil inventories can be tapped to meet the demand but could end up increasing cost for the end user.

We hope you enjoyed this month’s industry focus on the oil industry. If you liked this blog post and you want to read more of our content, don’t hesitate to subscribe to our blog. Or if you want more logistics and supply chain content throughout the day, follow us on Twitter! If you’re interested in what we do as a 3rd party logistics provider, feel free to check out our core services. Otherwise, we’ll catch you next week!

Hi everyone! Hope everyone had a great Canada day last weekend or if you’re in the United States, a great 4th of July! For this week we’d like to share with you a couple of cool logistics infographics that we’ve stumbled upon in the last little while that we thought were worth sharing.

1 – The Cost of Shipping

The Cost of Shipping
Source: Milo

2 – The Real Cost of Trucking in the US

The Real Cost of Shipping in the US
Source: Truckers Report

3 – Making Semi-Trucks More Efficient

Making Semi-Trucks More Efficient
Source: Truckers Report

4 – How Safe is US Rail?

How Safe is US Rail?
Source: Greater Memphis Chamber Access

We hope you found these infographics interesting, useful, and entertaining! Stay tuned next week for more updates on logistics and supply chain content! Feel free to check us out on Twitter (@MoraiLogistics) or check out our core services to see what we do as a third party logistics provider. Catch you next week!

DictionaryHi everyone, we hope you’re enjoying your summer so far! As mentioned in our previous post, we’re going to be continuing our end of the month Logistics Glossary Week, where we will be covering logistics terminology that you may or may not be familiar with that has to do with news that’s currently happening today. So let’s get started!

Third Party Logistics Provider

Definition: A 3rd party logistics or 3PL provider is a firm that provides multiple logistics services for use by customers. Usually these services are bundled to offer an integrated service solution. Common services are transportation, warehousing, cross-docking, inventory management, packaging, and freight forwarding. They can take manage any or all parts of the supply chain process and sometimes they can specialize in particular types of transport (for example alcohol, chemical, or refrigerated goods).

We’ve decided to kick off out Logistics Glossary Week with a definition of what a third party logistics provider actually does because the recent findings from the 24th annual ‘State of Logistics’ report by Penske Logistics. The results suggested that while the logistics industry should be prepared for a ‘new normal’ of slow growth, companies have started to become more reliant on 3PL services due to its potential to cut costs, as well as to have access to a body of supply chain experts who are comfortable and connected within the industry.

Freight Carrier

Definition: Freight carriers are companies that specialize in providing transportation of goods (i.e. freight) from one place to another, they can sometimes be referred to as ‘for hire’ carriers. Usually these companies own their own equipment and can have any or all of the following transportation services: trucking, rail, airlines, and ships.

This term is also relevant to the ‘State of Logistics’ report. While freight carriers offer different modes of transportation, we’d like to bring the focus on trucking. As you may have heard, the logistics industry is currently having a staffing problem with regards to trucking. Truck drivers were shown to have a fewest potential workers trained to fill the growing demand for them (trucking services rose 2.9%). As stated by the report, about 17% of the current driver population is under the age of 35, while a large proportion of truck drivers are on their way to retirement.

Cross-Border vs. Domestic Shipping

Definition: If you are shipping domestic, it means that your shipment is happening within the same country from origin to destination. Cross-border is the opposite, where packages at origin will have a final destination in a different country from origin.

We want to bring light to this definition because we recently ran into an interesting blog post that talked about a report issued by the World Economic Forum and the Boston Consulting Group on innovations that will change the supply chain. One of the things that are in development is a ‘smart’ visa system for automated check-in, security, and border control. This can potentially reduce the time it takes to cross borders by eliminating long lines at airport screening points and land border crossings while enhancing security. Biometric identity checks can also add to the speeding up of the processing. Furthermore, it has the potential to cut costs due to the fact that the visa applications could be standardized across multiple countries that would provide all relevant data to officials in all participating nations.

We hope you’ve enjoyed our second Logistics Glossary week post and that you have a wonderful long weekend (Happy Canada Day!). To keep up with our posts, and to see other content related to logistics and supply chain don’t hesitate to follow us on Twitter or subscribe to our blog! If you’re interested in what we do as a company, feel free to check out our services. Looking forward to seeing you in July!