As fleets adopt technology, the public remains skeptical of safety focus

freight technology

Commercial drivers are among the safest drivers on the roadways, but based on general public perception, and anti-trucking safety groups that highlight the number of yearly incidents involving big rigs, it would be difficult to tell that.

According to data within the Federal Motor Carrier Safety Administration's Motor Carrier Management Information System (MCMIS), there were 164,529 large trucks involved in crashes in 2018, with 79,879 injuries and 4,708 deaths reported. Those numbers were comparable to 2017's figures, with 154,634 crashes, 75,985 injuries and 4,858 deaths.

In 2013, the American Trucking Associations released results of a research project conducted by the University of Michigan Transportation Research Institute. That study looked at 8,309 fatal car-truck crashes and found that in 81% of the incidents, the car driver was assigned fault, versus just 27% of truck drivers to which fault was assigned. Similarly, a 2003 study by the National Highway Traffic Safety Administration (NHTSA) identified 10,092 fatal car-truck accidents and assigned blame to the car driver 91% of the time in head-on crashes. It also found that 71% of the time the car driver was responsible for rear-end crashes.

The American Transportation Research Institute (ATRI) said that commercial trucks traveled over 9.4 billion miles in 2017. While the numbers can be significant, when putting them in context based on the number of miles traveled and compared to automotive-only numbers, a different story emerges.

According to the Insurance Institute for Highway Safety (IIHS), 0.94 passenger car occupants were killed in 2017 per 100 million truck miles traveled. Conversely, 1.16 people were killed per 100 million miles traveled overall in 2017. Statistically speaking, fewer people die in truck-car crashes than in car crashes alone.

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Mexican officials: wait times at Otay Mesa Port of Entry up to five hours

Delay Times at Port of Entry

Truck wait times on the Mexican side of the Otay Mesa port of entry have jumped as the inspection process lengthens, leaving trucks backed up for hours, said officials in Mexico.

"Both Mexican and American customs are spending more time reviewing the trucks – with wait times between four and four and one-half hours," said Salvador Díaz González, president of the Tijuana-based Industrial Association of Otay Mesa (AIMO).
The long lines for the commercial crossing checkpoint in Otay affects not only the companies and transporters, but also the people who [travel] through the area, since the [trucks] massing invade the surrounding roads, Díaz said in an August 14 report in elimparcial.com.

Carrier wait times in the whole Otay Mesa/Tijuana/San Diego market have been trending up since June 1 – up 30 percent to 133 minutes average per load/unload event per month.

The average wait time for commercial trucks in the market is 126 mins over the last year. This information comes from the FreightWaves SONAR platform.

While traffic may be affected in Tijuana, wait times are not affecting the U.S. side of the border. Wait times are hovering around 40 minutes, as of noon August 14, according to U.S. Customs and Border Protection.

With the FreightWaves SONAR Van Inbound Tender Rejection Index (VITRI.SAN) at 1.81 percent and dropping, carriers are still willing to accept loads into the Otay Mesa/San Diego market. SONAR's Van Outbound Tender Rejection Rate (VOTRI.SAN) is also around 1.81 percent, meaning there are no capacity issues in the market.

Díaz said he understands why officials have been stricter with inspections, but the negative effects are causing lower carrier productivity, more air pollution in the Tijuana area and traffic jams that affect others who drive in the area.

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Are the delays at the border causing disruptions in your supply chain? Ventus Global Logistics has alternative solutions to ease the pain. Contact us for a FREE consultation.

Technology Trends You Can’t Ignore

Logistics Technology

Strategic technology trends have the potential to drive significant disruption and deliver significant opportunity. Enterprise architecture and technology innovation leaders must evaluate these trends to identify opportunities, counter threats, and create competitive advantage, according to a recent Gartner report.

KEY REPORT FINDINGS

Artificial intelligence (AI) opens up a new frontier for digital business. This is because virtually every application, service, and Internet of Things (IoT) object incorporates an intelligent aspect to automate or augment application processes or human activities.

Artificial intelligence (AI) opens up a new frontier for digital business. This is because virtually every application, service, and Internet of Things (IoT) object incorporates an intelligent aspect to automate or augment application processes or human activities.

The way we perceive and interact with technology is undergoing a radical transformation. Conversational platforms, augmented reality, virtual reality, and mixed reality will provide more natural and immersive ambient experiences within the digital world.

Digital representations of things and organizational processes are increasingly used to monitor, analyze, and control real-world environments. These digital twins combined with AI and immersive experiences set the stage for open, connected, and coordinated smart spaces.

Formal mechanisms to identify technology trends and prioritize those with the biggest potential impact on the business create competitive advantage.

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Regional Development Key to a Strong North American Trade Bloc

North American Trade Bloc

For many years now, a concern of mine has been that the purpose of free trade and the agreements that envelop trade between regions has not been properly explained or promoted to communities, especially at the grass roots level.

Recently, Guillermo Malpica, trade commissioner of Mexico and executive director at the American Chamber of Commerce in Monterrey, Mexico, paid San Antonio a visit for a series of roundtables and presentations on the United States-Mexico-Canada Agreement(USMCA). At an energy sector meeting with Malpica, San Antonio energy industry leaders investing in Mexico were expecting to get a sense of direction and clarity regarding Mexico's energy policies.

One roundtable participant asked "what industries are the winners and the losers" in the USMCA. When you ask questions like these, you are basically taking apart a macroeconomic tool and looking at the individual parts. Separate parts don't work unless they are put together like a precision clock.

These types of agreements are not meant to be dissected. Not unlike the cute little frog you dissected in school, the innards don't look pretty. Trade agreements are macroeconomic tools that are designed to benefit economies. Yes, there were industries that were hit very hard once NAFTA came into play, but those industries were not ready.

The signals were clear when Mexico agreed to enter the General Agreement for Trade and Tariffs GATT in 1978 (today the World Trade Organization). My father, the Deputy Director General for the Foreign Trade Institute of Mexico during the 1970s, would have conferences and meetings with Mexican manufacturers, warning them to be ready to compete, up their quality, and export.

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Are the delays at the border causing disruptions in your supply chain? Ventus Global Logistics has solutions to help. We specialize in land freight, ocean freight, and air freight. Contact us for a FREE quote.

With U.S.-Mexico reaching agreement, trade tensions at southern border lessen

Mexico/ US Border Crossing
Canadian border with the USA. Canadian customs.

By Jeff Berman, Group News Editor • June 10, 2019

With last Friday's news that the United States and Mexico reached a deal that will put off the implementation of tariffs by the United States on Mexico, which it had planned to start today as a countermeasure to what President Trump called an "ongoing illegal immigration crisis" at the Southern border, it is likely cross-border trade stakeholders are breathing a collective sign of relief.

Had the U.S. tariffs come to fruition, it would have begun with the U.S. imposing a 5% tariff on all goods imported from Mexico and then raised to 10% on July 1, 15% on August 1, 2019, to 20% on September 1, 2019 and to 25% on October 1, 2019.

As previously reported, President Trump said in late May that tariffs would permanently remain at the 25% level unless and until Mexico substantially stops the illegal flow of aliens coming through its territory. And he added that if Mexico fails to act, tariffs will remain at a high level, with Mexican-based companies potentially moving back to the U.S. to make their products and goods, and companies that relocate to the U.S. not subject to tariffs or be otherwise impacted. Trump added that aside from immigration being the primary impetus for these planned tariffs that: "[o]ver the years, Mexico has made massive amounts of money in its dealing with the United States, and this includes the tremendous number of jobs leaving the country."

Well, quickly and fortunately, it looks like things are not going to get to that point, according to a joint declaration issued by the U.S. and Mexico that stated Mexico will "take unprecedented steps to increase enforcement to curb irregular migration, to include the deployment of its National Guard throughout Mexico, giving priority to its southern border."

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Freight costs still a concern at U.S.-Mexico border

US/ Mexico border delays

Wait times for trucks importing and exporting cargo across the U.S.-Mexico border have dropped considerably from April crisis levels but industry experts warn threats to the supply chain haven't been eliminated.

"I've been telling my members that maybe this is a blessing in disguise," said Bob Costello, Chief Economist and Vice President of International Trade Policy for the American Trucking Associations (ATA).

Costello, speaking at the annual Global Supply Chain summit hosted by the U.S. Chamber of Commerce on May 16, was referring to the backups and delays that ensued at the southern border after President Trump in late Marchthreatened to shut it down in response to immigration issues. The problem was exacerbated when federal cargo inspectors were redeployed from cargo entry ports to help deal with the migration problem.

"[Wait] times have proved significantly, but we now have another reminder of how critical this trade is, and the modes of transportation that have to move it. Sometimes we need those reminders…that if you shut down the border for a week, you're in a recession, I can almost promise you that."

Costello emphasized the importance trade on the southern border is to American trucking and the U.S. economy: 32,000 U.S. truck drivers participate in cross-border freight moves, representing roughly $1.1 billion worth of cargo per day.

The U.S. automotive sector feels delays and border closure threats particularly hard. Shutting down a single assembly line for an hour due to a lack of parts can cost an automaker $1.3 million per day, said Kristin Dziczek, Vice President of Industry, Labor, and Economics for the Center for Automotive Research, who participated on the panel. "You can't make a car without the parts, and some very critical parts are supplied by Mexico and countries south of Mexico. We were predicting the whole [automotive] industry would be down within a week if the southern border is closed."

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Are the delays at the border causing disruptions in your supply chain? Ventus Global Logistics has solutions to help. We specialize in land freight, ocean freight, and air freight. Contact us for a FREE quote.

Mexico Border Delays Seen Weighing on US Investment, Factories

Border Delays

More cargo from Mexico to the United States is being held up at the border, accompanied by increasing evidence that such delays are dimming prospects for American companies.

Slower trade between the countries since federal border officers recently were redirected to deal with a surge in migrants has been socking businesses with additional shipping costs. The effects likely will cause a modest headwind for second-quarter nonresidential investment growth — which cooled at the start of the year — and already helped to push a U.S. factory gauge to a two-year low in April, according to Bank of America Corp.

"The delays generate a meaningful direct cost for businesses," economist Stephen Juneau said in an e-mail May 6. The disruption may have a significant impact on the flow of goods, as more than 86% of Mexican imports enter the U.S. by land, and impose some $5.5 million in additional costs on U.S. businesses each month, he wrote in a report May 3.

Trucking company Werner Enterprises Inc. said on an April 25 earnings call that it expects border crossing to be "slow for the foreseeable future."

"Freight is still crossing the border at a very slow rate by comparable standards," said Derek Leathers, CEO of the Omaha, Neb.-based company.

Werner ranks No. 15 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.

U.S. Customs and Border Protection said March 27 that trade processing would slow, with as many as 750 officers from crossings in the San Diego, Tucson, Ariz.; El Paso and Laredo, Texas, regions being re-assigned. President Donald Trump the next day renewed threats to close the border.

The Institute for Supply Management's factory survey last week showed April conditions at the weakest since October 2016, though still expansionary. The production component also fell to a more than two-year low, which Juneau said likely was in part because of border delays.

Ventus Global Logistics offer solutions to reroute your goods to avoid delays at the border. Contact us for a free quote.

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DOT sends HOS rule change to White House for review

DOT Changes Rules

Under current HOS rules, drivers can be on the road no more than 11 hours in a 14-hour period. If they stop to avoid rush hour or are stuck in a port waiting for a container, the clock on this 14-hour period keeps going.

Drivers want more flexibility and the ability to stop the clock on the 14-hour period if they take a break. This has become even more of an issue for drivers since the use of electronic logging devices (ELD) became mandatory.

"No one is looking for more drive time," Brian Brase, a heavy hauler out of Pennsylvania who helped plan a protest of HOS rules, told Supply Chain Dive earlier this year. "They just want some flexibility in it."

An early study on the effect of the ELD mandate showed it increased HOS compliance. The share of inspections that resulted in HOS violations fell from 6% before the mandate to 3.8% during a light enforcement period and finally to 2.5% during a strict enforcement period.

The DOT published an Advanced NPRM last August to get input on HOS and "received more than 5,200 comments, which have been carefully noted and considered," Chao said. This Advanced NPRM continues to receive comments.

"HOS needs more flexibility to allow for bad weather, delays at shippers and receivers, and traffic situations (wrecks, delays, construction, etc.)," a commenter named Sean Wright posted yesterday.

Many of the comments focus on a rule that requires drivers to take a 30-minute break after eight hours of driving. Peter Dombrowski, in a comment posted yesterday, suggested ending the 30-minute break requirement, saying drivers already take these breaks throughout the day.

Still, others are happy with the way things are: "Please keep the hos as is! Elogs are keeping companies from working drivers 18 hours a day," Robert Parker posted in February.

The details of the NPRM won't be known until its posted on the Federal Register. There is no set timeline for when this might happen or how long OMB will spend reviewing it.

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Border wait times swell amid customs officer shuffle to handle migrant crisis

border slowdown

NUEVO LAREDO, Mexico - U.S. President Donald Trump hasn't followed through on his threat to shut the border with Mexico, but one crossing here that connects this Mexican city with Laredo, Texas provided a glimpse of the chaos and economic disruptions that it would likely ensue.

Lines of 18-wheeled semi-trucks carrying auto parts, produce and other goods for U.S. consumers and businesses stretched more than six miles into Mexico Wednesday after the Trump administration shifted Customs and Border Protection agents from Laredo and other Texas border crossings to El Paso and the Rio Grande Valley to deal with the flood of asylum seekers from Central America. Waits to cross the World Trade Bridge, which normally run 30 minutes, reached more than three hours.

The impact of the delays was being felt on both sides of the Rio Grande, with those who depend on U.S.-Mexico trade barely able to consider what would happen if the Trump closed the border. Ernesto Gaytan, president of the Laredo company Super Transport International, which has 200 trucks on the American side of the border and 300 more on the Mexican side, said he couldn't put a number on it, but knew the delays were costing him money. A complete border shutdown, he estimated, would cost his company $200,000 a day.

On the other side of the border, Roberto Hernandez was idling at the back of the line with hundreds of 18-wheelers ahead of him. Hernandez doesn't get paid by the hour, but rather by the number of loads he delivers.

Usually, he makes four cross-border runs a day, earning the equivalent of about $15 per load. But he was only able to make two trips on Tuesday and his is daily pay fell to $30 from $60.

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Ventus Global Logistics operates out of every port in Mexico and we can reroute your goods through other ports even with a border slowdown or shutdown. In addition to land freight, our air and ocean freight services cover both consolidated shipments (LCL) and containers (FCL). Call us today for a FREE quote or fill out our online form.

The retail apocalypse, omnichannel and supply chain analytics

supply chain analytics

Three of the most important themes in retail right now are the retail apocalypse, omnichannel and supply chain data analytics. In our view, this is not a coincidence: the industry is abuzz with talk about the tools that will bring retail into the future and improve customer experiences; meanwhile, we're bearing witness to the destruction of numerous brands that have failed to adapt. In this piece, we explore how these three themes are interwoven in an attempt to articulate exactly what the challenges and opportunities are in contemporary retail.

What is the retail apocalypse? CB Insights, the leading intelligence platform and media company on high-growth private companies, has studied the phenomenon better than any other company. The 'retail apocalypse' is a catch-all term for the nearly 80 major retail bankruptcies since 2015. This year has already seen bankruptcies of nine major brands – Beauty Brands, Charlotte Russe, Diesel, FullBeauty Brands, Gymboree, IMS (Innovative Mattress Solutions), Payless Shoesource, Shopko and Things Remembered.

More illuminating than the number and names of the restructuring companies, though, is the insight into the reasons why the companies failed. David's Bridal cited its struggle to keep up with online competitors when it filed Chapter 11 in November 2018; the month prior Sears pointed to the challenge of personalizing the customer experience and improving operational efficiency; in August 2018 Brookstone hired liquidators to close 100 stores due to declining mall foot traffic.

"Retailers who survive the e-commerce disruption by executing on omnichannel will do so by executing a fulfillment strategy that is as nimble as possible," said Chris Kirchner, CEO of Slync. "Survivors will have to find solutions that provide real-time supply chain data in order to balance competitive threats and ever-shifting consumer demands."

In general, companies that recently expanded their brick-and-mortar footprints were the worst off. Doubling-down on physical retail stores indicated a lack of commitment to e-commerce and blindness to the fact that physical locations were less and less productive. Plus, the debt used to finance growth in real estate holdings quickly became burdensome.

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