Morai-Logistics-Blog-eld-mandate-intermodal-logistics

Canada’s Electronic Logging Device (ELD) Mandate is set to affect intermodal transportation favourably in rates, fuel prices and capacity. This is based on the Intermodal Competitive Index (ICI) of the freight transportation forecasting firm FTR.

Earlier this week, the condition of intermodal versus truck was described as ‘moderately favourable’ according to freight transportation forecasting firm FTR. Their Intermodal Competitive Index (ICI) showed a slight increase in November to a level of 5.0.

The ICI looks compares North American intermodal sector and over-the-road trucking. A negative number indicates conditions are unfavourable. The higher the positive number, the better the favourability for the intermodal sector. Factors affecting the level are intermodal rates, fuel prices and truck capacity.

Despite the current state, FTR predicts that the ICI may deteriorate soon because of normal seasonal factors. Thankfully, the ICI is anticipated to start rising again until the end of the year. The rise will be due to the truck Electronic Logging Device (ELD) federal mandate.

“While the new administration’s more restrained philosophy with regard to regulation may have some eventual downstream effects on the trucking environment, we believe that the ELD regulation, which has already been formalized into law, will not be recalled…[]..While the extent and precise timing of the capacity effects of the ELD mandate are open to debate, there seems to be little doubt that its capacity effects will result in some tightening of truck availability which should work to the benefit of intermodal” said Larry Gross, Partner at FTR and principal author of its Intermodal Update, in a statement.

Canada Soon to Implement ELD Mandate

The Canadian Council of Motor Transport Administrators (CCMTA) is expected to have a final rule on its own ELD mandate early this year. A Canadian compliance date will likely occur for early next year.

The mandate received a lot of enthusiasm from the CCMTA as discussions about implementing a ELD mandate in Canada has been ongoing for nearly ten years.

“Though safety and consistency with U.S. guidelines were primary factors behind the change, Canada’s ELD mandate was also motivated by financial considerations as its trucking industry hopes to compete with U.S. carriers who have seen the economic benefit of using electronic logging devices” writes Keep Truckin, a blog about fleet management.

“Canadian fleets who implement and train drivers on ELDs well before the 2018 deadline will be more competitive with U.S. fleets already reaping the benefits, including fewer hours-of-service and form and manner violations and improved Compliance, Safety, and Accountability (CSA) scores.”

Although the Canadian ELD mandate will be a year behind it’s American counterpart, the decision is the right step to improve competitiveness. A high volume of trade is conducted between Canada and the U.S. In fact, the two countries trade around trade $662 billion worth of goods and services with one another annually.

What the ELD Mandate Will Mean for American and Canadian Fleets

Having ELDs be the standard will benefit fleets in a few different ways. For one, the amount of paperwork will be greatly reduced. Secondly, dispatchers will be kept up-to-date with the condition of the drivers, helping them with planning better loads. Thirdly, it will eliminate paper logs and with that, the headache that comes with maintaining it.

The American ELD mandate is only 11 months away, but is already predicted to have a positive impact on the intermodal sector. Canada will follow suit next year. Fleets in both countries will benefit in regards to increased safety, planning and efficiency. The North American Intermodal sector has a lot to look forward this year and the next.

That’s it for us this week! 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.

Morai-Logistics-Blog-Labour-Dispute

For this week’s blog post we would like to look at a case study of what happens when supply chain security is weak for a product that is in high demand.

“In addition to the actual threats, many factors make global supply chains complex and challenging to secure. The speed at which today’s supply chains operate, for example, can be difficult to reconcile with security measures” writes Amy Roach Partridge in this 2012 InboundLogistics.com article on supply chain security. “And, because supply chains today are often so long and fragmented, it can also be difficult to ensure security is treated with the same urgency by every party in the process” she writes.

This is an important lesson as just earlier this week, several news outlets reported on the California nut shipment thefts that have so far totaled losses of $4.6 million as of just last year. 31 cases have been reported within a span of one year with the thefts costing from $150,000 to $500,000 per shipment.

Losses for all four years combined reached nearly $7.6 million.

The thieves have been getting high-tech with how they’re stealing shipments as most of shipments were stolen through fraud rather than break in. Websites where truckers search for cargo assignments have been getting hacked as their cybersecurity measures have been lagging behind other industries according to this LA Time article. “A common ruse is to use a false company to hire a legitimate trucker, then tell the trucker to divert the load to another warehouse, where he is paid and sent on his way” writes the article. “Scammers also have used “ghost trucks” that duplicate legitimate ones but are untraceable on trucking databases. Thieves have also tested security measures by sending scout trucks that abruptly leave processing plants without picking up loads” it continues.

It may seem strange that these thieves are putting so much effort and time into stealing nuts, but it is important to remember that demand for the health-food snack has soared in emerging economies such as China. California is also an especially lucrative state to target for these heists as it produces more almonds, walnuts and pistachios than any other state, with a combined value of $9.3 billion in 2014. Almonds alone were valued at $5.9 billion, according to the U.S. Department of Agriculture.

So why nuts? This article on Quartz.com describes the reasoning, “Food and beverages have replaced electronics as the most-stolen good in the US. Criminals are concentrating their efforts on fewer heists of larger value, and as stolen goods go, nuts have a lot of appeal. They’re expensive. They have a long shelf life. They have no serial numbers and can’t be electronically tagged or traced.” Cargo theft of consumables isn’t all that uncommon the U.S in fact. Just last year about 28% of the 881 incidents of cargo theft involved food and beverages, more than double the number targeting electronics. Of that number, California accounted for 158 of the U.S’s cargo thefts, with losses of about $18.7 million.

That’s it for us this week! 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.

The current shortage of truck drivers is estimated at roughly 25,000. The turnover rate, which hit 96% by the end of 2014 is due to a multitude of reasons, including demographic, regulatory, and the fact that drivers are away from home for a period of time, among other factors.

This month, we thought it would be a great idea to take a look at these facts and figures!

12 Key Facts About the Driver Shortage and the Future of the Trucking Industry

Morai-Logistics-12-Key-Facts-About-the-Truck-Driver-Shortage

That’s it for us this week! 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.

Third party logistics (3PL) companies offer resources for companies to outsource all or part of their supply chain management. When you select your 3PL you are essentially selecting another member of your organization. As the 3PL will be acting an extension of your company, it is essential that you find out if the 3PL you are viewing is the right fit for your business.

This month we’ve created an infographic to help you select the right 3rd party logistics provider!

5 Questions to Ask Before Selecting a 3PL

Morai-Logistics--5-Questions-to-Ask-3PL

That’s it for us this week! 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!

Morai-Logistics-Blog-Hiring-Client-Success-Specialist

Morai Logistics is currently looking for a full-time Client Success Specialist to join our team in Mississauga, ON.

View the job posting on Indeed by clicking here!

What does that even mean?

Logistics can be messy, as a client success specialist, your goal is to deliver success within the chaos. On a day-to-day basis, you will be primarily responsible for coordination of the movement of goods from point A to point B (origin to destination). That means, though isn’t necessarily limited to, reserving and booking container equipment from various transportation providers (rail, truck, etc.), coordinating with drayage carriers (and knowing what drayage means!), and electronic tracking (we work with Triton) and tracing, billing, etc.

Our Core Values

  • Integrity and Honesty
  • Respect
  • Empowerment
  • Client Success
  • Community

The top candidates for this position are born multi-taskers and are experts at analyzing many different situations. They are ideally bilingual (Spanish preferred) with a knack for being customer/client-oriented. They’re also a great team player and know the difference between casual and professional writing and when to use each!

What Your Main Responsibilities Would Be

  • Acting customer support and administrative representative for a set of clients
  • Monitors clients’ equipment usage, costs, containers, etc.
  • Prepares and analyzes reports on factors affecting the supply chain process (outstanding equipment charges, yard checks, etc.)
  • Investigate and solve issues regarding any transportation delays
  • Provides basic consultation to help clients find cost saving initiatives

Prerequisites for this Position

  • Post-secondary education preferred
  • Minimum 3 years’ experience in the logistics industry
  • Experience in truckload, LTL, and intermodal
  • Strong analytical and priority management skills
  • Ability to work under pressure and in a constantly evolving and changing environment
  • Team player and a good communicator

Additional Desired Traits

  • Bilingual (Ideally fluent in Spanish)
  • Excel and Word experts
  • Computer literacy in general
  • Interpersonal, conflict resolution and negotiating skills
  • Problem solving and decision making skills
  • Organizational, planning, multi-tasking skills
  • Time management skills; ability to assign tasks, set priorities and resolve related conflicts
  • Forecasting, scheduling and tracking skills

Don’t hesitate to shoot us an e-mail if you’re interested in being part of the Morai Logistics team. Please send an e-mail to kelli.saunders@morailogistics.com with the job position (Client Success Specialist – Intermodal Position) as part of the subject line!

Logistics trades professionals (i.e. truck drivers, machine operators, etc.): This probably isn’t the job for you, but maybe you know someone who would be the perfect fit! Send them this link and we’ll take it from there! Thanks!

Morai-Logistics-Blog-Truck-Driver-Appreciation-Week

This past week was National Truck Driver Appreciation Week (NTDAW). From September 13th to 19th, professional truck drivers across America for their hard work transporting all sorts of items, commercial and industrial.

For this 27th passing of NTDAW, we would like to highlight some important and interesting facts about the trucking industry. They’ll demonstrate how incredible and essential the 3.5 million professional men and women who transport goods across the country are to not just logistics, but the economy overall.

Did you know? – The trucking industry is foundationally important to the United States!

Currently, 70% of all freight transported in the United States is done through one of the 15.5 million truck currently in operation according to this source.

What’s also important to note is that almost 80% of communities residing within the United States rely exclusively on trucks for the delivery of their goods.

Did you know? – Trucking is a dynamic industry for growth!

At present, The trucking industry collects, on average, $650 billion in revenue each year. That is about 5% of America’s GDP. The mean salary for a truck driver in the United States meanwhile is $44,500 according to Career Builder. This is likely to grow as over the next decade, the trucking industry is estimated to grow over 21%.

This growth can already be seen as The Department of Transportation registers more than 40,000 commercial drivers licenses per month.

90% of the trucking industry in the United States is made up of small business trucking companies with ten or less trucks.

Did you know? – Truckers need more appreciation!

Of the millions of truck drivers, more than 169 billion miles are logged each year collectively from all the drivers.

In regards to expectations, drivers are typically expected to cover 125,000 miles per annum. That breaks down to around 2,500 miles a week, which equates to 500 miles a day.

According to an industry article about the life of a trucker on Jobs.net:

Days can begin really early. Many drivers like to move with the light; others prefer to drive through the night. OTR truck drivers don’t have set starting hours, unless they’re calling in to dispatch after returning from time off

You may be expected to work up to 70 hours over an eight-day period. After you’ve worked for 70 hours, you cannot drive again until you take a full 34 hours off duty. The 70-hour limit could be reached by working 14-hour days, but you cannot drive for more than 11 hours in a day. You must conclude your “Hours of Service” with a 10-hour break.”

The trucking industry has also made major efforts toward being more green-friendly. The best example is the clean diesel trucks that operate today. It would take 60 trucks to equal the exhaust emissions of one truck from 1988.

As you can see from the facts and figured above, there is a lot that truckers and the trucking industry should be lauded for. They are a very large part of not only ensuring logistical chains run smoothly, but also and all too often the unsung backbone of America as well.

That’s it for us this week! 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!

Morai-Logistics-Blog-Mexico-Rail

Last Friday, a new international rail bridge between the United States and Mexico was finally operational. The project took 15 years to complete, and had a price tag that ran over $120 million according to an article in the San Antonio Express news.

This new international bridge, of a sort not built in over one hundred years, is impressive but it is only a small part of Mexico’s rapidly developing rail ways and intermodal capabilities.

The combination of recent labor disputes at the U.S. West Coast, and rising costs on goods shipped to the U.S. from China (due to high oil prices and rising wages) has made Mexico very popular for international trade and companies seeking to convert to nearshoring as their logistics strategy.

It should be no surprise then that the aforementioned article quoting census data, writes that in the first six months of 2015, Mexico topped $262 billion in trade.

An excellent InboundLogistics.com article on the topic covers Ferrocarril Mexicano’s success, the country’s largest railroad, as a case study for the growing demand for rail transportation both domestically and between Mexico and the United States. This railroad had its carload volume increase by 6.6 percent in 2011 compared with 2010, and revenues increase by 13.9 percent.

Mexico’s central location, and the country’s commitment to improving security across its entire rail system are the other reasons InboundLogisitcs attributes to the railroad renaissance.

A similar article on LogisticsViewpoints.com emphasizes that Mexico has received a lot of investment from private companies to improve the Mexican rail system (over 5 billion U.S in fact).

This, according to the article, has created a system that is compatible with those of both its northern neighbours: “rail transportation, including bulk, general cargo and intermodal, has been a key factor in the expansion of trade between the U.S. and Mexico”.

Bringing it all back home

Stronger, more secure, and better supported rail ways are not the only things Mexico has to offer. Along the Mexico-Texan border, an area traditionally filled with warehouses, a home for “reshoring” is being created. U.S manufacturing companies are moving back home.

CoStar.com gives the example of the $8.1 billion purchase by IndCor Properties of 18 buildings with a combined 2.13 million square feet in El Paso, TX, as evidence of this. The article also discusses why goods shipped to West Coast ports have declined by 30% thanks in large part to the ongoing labor disputes there (which is because of ongoing labor disputes there).

The best way to conclude this blog post, is to again quote from the InboundLogistics article:

Investments in better processes, connectivity and operations will continue to increase capacity, expand intermodal ramp operations, improve service and increase train speed within the growing Mexican railroad network. This, combined with the improvements made over the past 20 years, are making rail and intermodal a sustainable, viable and long-term transportation solution for both cross border and intra-Mexico supply chains

That’s it for us this week! 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!

With the summer heat being in full effect here in North America, we decided to share some facts about one of the world’s oldest, and most popular beverages – beer! Beer, in particular, requires greater attention to reverse logistics processes when it passes sell-by dates and kegs have to be transported from the reseller back to the bottler.

Beer production, marketing, storage, and distribution is difficult despite it being such a globally common product. This is why some beverage companies are turning to 3PLs to help manage distribution to market. This article from Inbound Logistics goes into more detail between beer companies and their heavy logistics needs. So after enjoying our top 10 beer facts, why not serve yourself a beer on a hot summer day and have a read?!

10 Summer Beer Logistics Facts

morai-logistics-infographic-beer-facts

That’s it for us this week! 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!

In recent years, the growing trend with many U.S. companies has been to relocate some or even all of their off-shore production back to North America. China no longer holds the sway that it used to, but countries such as Mexico are quickly becoming the much more attractive option. Here are 12 reasons why you should consider near shoring in Mexico.

The Right Time to Consider Nearshoring Strategies to Mexico

morai-logistics-12-reasons-to-invest-in-mexican-nearshoring

As foreign investment in China stalls, Mexico’s foreign investment continues to grow. As a result, demand for facilities and land is beginning to drive up. Thus, the best time to invest in Mexico for your manufacturing or sourcing potential for your organization is now.

That’s it for us this week! 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!

Morai-Logistics-Blog-Hiring-Client-Success-Specialist

Morai Logistics is currently looking for a full-time Client Success Specialist to join our team in Mississauga, ON.

View the job posting on LinkedIn by clicking here!

What does that even mean?

Logistics can be messy, as a client success specialist, your goal is to deliver success within the chaos. On a day-to-day basis, you will be primarily responsible for coordination of the movement of goods from point A to point B (origin to destination). That means, though isn’t necessarily limited to, reserving and booking container equipment from various transportation providers (rail, truck, etc.), coordinating with drayage carriers (and knowing what drayage means!), and electronic tracking (we work with Triton) and tracing, billing, etc.

Our Core Values

  • Integrity and Honesty
  • Respect
  • Empowerment
  • Client Success
  • Community

The top candidates for this position are born multi-taskers and are experts at analyzing many different situations. They are ideally bilingual (Spanish preferred) with a knack for being customer/client-oriented. They’re also a great team player and know the difference between casual and professional writing and when to use each!

What Your Main Responsibilities Would Be

  • Acting customer support and administrative representative for a set of clients
  • Monitors clients’ equipment usage, costs, containers, etc.
  • Prepares and analyzes reports on factors affecting the supply chain process (outstanding equipment charges, yard checks, etc.)
  • Investigate and solve issues regarding any transportation delays
  • Provides basic consultation to help clients find cost saving initiatives

Prerequisites for this Position

  • Post-secondary education preferred
  • Minimum 3 years’ experience in the logistics industry
  • Experience in truckload, LTL, and intermodal
  • Strong analytical and priority management skills
  • Ability to work under pressure and in a constantly evolving and changing environment
  • Team player and a good communicator

Additional Desired Traits

  • Bilingual (Ideally fluent in Spanish)
  • Excel and Word experts
  • Computer literacy in general
  • Interpersonal, conflict resolution and negotiating skills
  • Problem solving and decision making skills
  • Organizational, planning, multi-tasking skills
  • Time management skills; ability to assign tasks, set priorities and resolve related conflicts
  • Forecasting, scheduling and tracking skills

Don’t hesitate to shoot us an e-mail if you’re interested in being part of the Morai Logistics team. Please send an e-mail to apply@morailogistics.com with the job position (Client Success Specialist – Intermodal Position) as part of the subject line!

Logistics trades professionals (i.e. truck drivers, machine operators, etc.): This probably isn’t the job for you, but maybe you know someone who would be the perfect fit! Send them this link and we’ll take it from there! Thanks!