UK hauliers ditch container work in favour of Amazon ‘gold rush’

Posted on December 12, 2021 by | 1 comment

Container drayage hauliers are shifting to driving for Amazon. It’s a clear economic case— they can make more per shift driving for Amazon, and with easier work.

Of course it is the holiday season, and there is plenty of Amazon work. That may not be true after the season is over.

But it shows the line of thought independent trucking firms follow. And the same would be true for owner drivers. They are tired of being jerked around by container shipping firms.

Cargo movers need to start being sensitive to the drivers’ concerns.

By Nick Savvides 08/12/2021

UK hauliers ditch container work in favour of Amazon ‘gold rush’ – The Loadstar

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Posted in Labor Economics, Logistics, Trucking

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FreightLab Co-Director Gives Expert Testimony on Improving Trucking Capacity

Posted on December 9, 2021 by | 1 comment

David Correll cited his research from the Driver Initiative to congress at a hearing. He claims truck drivers are underutilized, largely because of bottlenecks outside their control. Some of these are warehouse hours, loading and unloading delays, and other issues that cause drivers to waste time idling. And they may not even get paid for the idle time.

He thinks, and I agree, that there’s no easy solution. People simply don’t value drivers’ time. It’s going to take a revolution in thinking on the part of people who are served by drivers and who serve them.

And parking places and bathrooms! Treat truckers like human beings.

December 01, 2021

FreightLab Co-Director Gives Expert Testimony on Improving Trucking Capacity at Congressional Hearing | Center for Transportation and Logistics

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Posted in Logistics, Trucking

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Nordstrom leverages pack and hold inventory to mitigate supply chain risk

Posted on December 8, 2021 by | 1 comment

Nordstrom and a number of other retailers are starting to keep more inventory, by buying larger lots and holding some. The fact that retailers are publicizing this means that they are starting to recognize that inventory shortage is a substantial issue. With sources of supply bottlenecked, stuff can’t be moved to the US as quickly.

Does it make sense to place larger orders earlier? Devotees of the bullwhip effect will say that’s counterproductive. Perhaps, in the long run with perfect coordination with suppliers. But when you have near-disaster conditions in the supply chain for, say, clothing manufactured in Vietnam, and ocean carriers blanking just about every other sailing, you need to take some action. That may mean committing to larger purchases and saving some of it against future demand rather than trying to sell it all at once.

We’ll see if the policy works, and how quickly it damps out. Especially if the ocean supply chain begins to normalize. Inventory is expensive, and the expense is both highly visible and easily tracked, unlike the lost business due to shortages on the floor.

Published Dec. 7, 2021 Max Garland

Nordstrom leverages pack and hold inventory to mitigate supply chain risk | Supply Chain Dive

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Posted in Logistics

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