Smarter Shipping, Volume 16: With UPS Negotiations Underway, Teamsters Turn Attention to ABF
Welcome to Volume 16 of "Smarter Shipping" with Intelligent Audit.
If you missed last week's newsletter, "Smarter Shipping, Volume 15: Spring Cleaning: Fresh Thinking Is Replacing Stale Strategies in The Logistics Industry"
Let's dive right in!
In this edition of "Smarter Shipping," we'll cover the following:
Testani is among 24 finalists in the New Jersey Region, based on her demonstration of long-term value creation through entrepreneurial spirit, purpose, growth, and impact. Regional winners from around the U.S. will be announced June 12.
Ernst & Young LLP (EY US) announced today that Intelligent Audit CEO Hannah Testani is a finalist for the Entrepreneur Of The Year® 2023 New Jersey Award. Now in its 37th year, Entrepreneur Of The Year is a prestigious business award recognizing visionary entrepreneurs and leaders of high-growth companies who drive change for a more equitable, sustainable, and prosperous world.
Continue the Home Delivery World party and come mingle over duckpin bowling, drinks and food at Liberty Lanes - conveniently located 1 block from the Convention Center!
Strike 🎳! Party with IA and Veho at HDW! Go Here to RSVP ahead of next week's HDW 2023!
Don't forget to visit the team at Booth #114
Our fantastic team will be at Home Delivery World June 14-15 in Philidelphia, PA.
Stop by Booth #1114 to say hello to Hannah, Richard, Andrew, David, and Doug!
Our global retail customer’s procurement team executed a carrier RFP which asked for “apple-to-apples” rates that would reflect an all-in cost. Thinking they were comparing apples-to-apples pricing, our customer started using a new carrier that was significantly cheaper than the other carriers who bid on the same lane. When extra beyond charges caused a spike in costs, the customer learned the carrier’s price was not ‘all-in’ after all.
As the Teamsters and UPS turn their attention toward a new National Master Agreement, things are not looking quite so smooth at ABF Freight, the LTL subsidiary of ArcBest. In late May, the Teamsters at ABF voted to authorize a strike. While many industry experts see the vote as signaling Teamsters' seriousness as they enter negotiations with ABF, others are questioning the likelihood of a strike. But that’s not all that’s moving and grooving in the world of logistics this week: Postmaster General Louis DeJoy is pushing for more commercial clients, and pallet manufacturers are turning to sustainable practices to meet ESG demands. Here's what you need to know in the industry that’s always moving.
Recommended by LinkedIn
Teamsters Authorize Strike at ABF Freight
Amid the ongoing national negotiations between the International Brotherhood of Teamsters and parcel carrier UPS, the Teamsters are reportedly preparing for a potential strike at carrier ABF Freight, the LTL subsidiary of ArcBest. The Teamsters at ABF Freight voted on May 24 to approve a strike at ABF Freight, a negotiating tactic that demonstrates the willingness of the Teamsters to strike if the need arises.
“We are down to a handful of critical open issues. It is our hope to reach a tentative agreement in time to have it ratified prior to the expiration of the current agreement and avoid a work stoppage,” Teamsters National Freight Director John A. Murphy said in a May 26 statement, “The rank-and-file members at ABF showed their support for their negotiators by recently voting by over 97 percent in favor of authorizing a strike should it be necessary. Such strong support for the union negotiating team by the ABF members will undoubtedly help us get the best possible result.”
DeJoy Renews Push for Commercial Shippers in Year Three of Ten-Year Plan
As mail volumes continue to decline, the U.S. Postal Service, under the guidance of Postmaster General Louis DeJoy, is looking to bolster revenue by appealing to commercial shippers. In year three of Postmaster DeJoy’s much-touted ten-year transformation plan, shippers expect improved local delivery speeds and facilities.
“I know that we can have a vibrant, thriving Postal Service that can realistically serve the needs of our stakeholders in a financially self-sufficient manner,” DeJoy said in a May 22 keynote address to the National Postal Forum. “Not by doing what has led to the tragic experiences of the past, but by finding new ways to serve and new ways to operate that benefit our mailing and shipping customers as we together serve the American public.”
Jump in Capacity Further Decreases Air Cargo Rates
In a blow to the already struggling air freight industry, an increase in air cargo capacity in April led to a further drop in spot rates. Overall air cargo capacity increased 7% YoY in April. In the busy Europe to North America trade lane, capacity increased by 26%.
In an email to Supply Chain Dive, Niall van de Wouw, Chief Airfreight Officer at Xeneta, wrote, “This is a market that will test companies … This is a tremendous jump in capacity and, consequently, we saw a corresponding -12% fall in spot rates on these routes.”
The latest insights from the Intelligent Audit Resource Hub
Just a few short years ago, finding a carrier was no easy task – it seemed like they held all the cards. However, the logistics landscape has shifted dramatically to a shippers market. Now more than ever, it's crucial to use apples-to-apples data when selecting a carrier to capitalize on cost savings opportunities and improve carrier performance.
Shippers have every reason to be thrilled this season, thanks to an all-time low tender rejection rate, stable volumes, and a double-digit capacity increase in the freight market. Although carrier executives remain optimistic, predicting a better second half of 2023, consumer financial stresses could still lead to a worsening freight market. In this increasingly fractured freight market, leveraging accurate and relevant freight data when selecting a carrier is more important than ever.
This article will provide a deep dive into the importance of data analytics in logistics, the pitfalls of bad-apple data, and how to harness the power of accurate information to make informed choices that positively impact your bottom line.
In 2008, Dr. Raymond Panko published a paper detailing examples of human error in data entry. His findings? When manually entering data into a spreadsheet, the probability of human error was 18-40%. And that number is likely to increase as spreadsheets grow more complex.
In other words, errors are common, even with the best intentions. What does that mean for a shipper dealing with hundreds or thousands of freight invoices monthly?
One solution is to turn to big shipping data. Shippers can get a handle on their expenses by tracking freight invoices and improving their logistics strategy.
Far from a buzzword, big data analytics in logistics and supply chain management are helping companies gain insight into their current performance while optimizing future operations. But to truly bring value, it must be done right. According to analysts at McKinsey, "Most of the data generated in a supply chain falls outside the scope of just one enterprise or entity," a dynamic that makes it hard to know if you're dealing with good or bad data or even the original source. Or in some cases, there are so many data sources and raw data it can feel overwhelming, leading to inaction and not getting the most out of the data. That's why it's critical to have an audit partner who can ingest data across all systems.
That's it for this edition of "Smarter Shipping" from Intelligent Audit! Make sure to subscribe to follow each edition.
Realtor Associate @ Next Trend Realty LLC | HAR REALTOR, IRS Tax Preparer
1yThanks for Sharing.