The Friday Report: June 1st, 2018

Quick wrap up of a few hot topic newsworthy stories in the supply chain logistics industry

Big Data Provides Big Insight for Transportation and Logistics

Using electronic logging devices makes it possible for trucking companies to capture huge volumes of data.  Transportation fleets record a wide range of data from vehicle performance, driving time, driving behavior, gas mileage, hours worked, deliveries, environmental information and more.  Unwrapping the puzzle of the massive volume of data takes a bit more help from technology.  The huge volume of Big Data is too massive for traditional data processors to handle.  An ELog system is used to make sense of the data that is recorded, managing duplicates and presenting the information in an easily digestible format for the non-technical audience.

How is this data being used in the transportation and logistics industry?  Using vehicle and driver performance data, companies can implement driver coaching programs that can aid in improving driver performance,  reduce collisions and legal fees and decrease insurance costs.  Automated gas mileage reporting can help save thousands of dollars of taxes annually and remove the burden of compiling and filing reports.

The transportation and logistics industry has gotten the message and sees that big data can provide actionable intelligence.  53% of companies in 2017 adopted big data as compared to 17% in 2015, a positive trend that is expected to continue for years to come.

E-Commerce Delivers Increases in Warehouse Rents

As predicted, the increase in e-commerce online shopping has resulted in decreased warehouse availability and higher warehouse rents.  Although significant bottlenecks exist in cargo facilities at U.S. airports, the lack of momentum to renovate or add new facilities to the infrastructure is noticeable.

The amount of new warehouse construction is not compensating for the increased demand for warehouse space.  Rents in warehouses located adjacent to ports and “last touch” warehouses closer to downtown and heavily populated areas have seen double digit rent increases.  According to logistics facility developer Prologis, increased  e-commerce activity accounts for 20% of new warehouse leasing facility.

The aging warehouse stock is problematic as it is not suited for e-commerce fulfillment centers.  

The heavily populated Northeastern United States also has most warehouse facilities with the highest average age, particularly in New Jersey, Pittsburgh, Boston and Philadelphia.


Uber Freight Dispatches Driver Incentives

Determined to build on the success of the Uber brand and attract drivers, Uber Freight drove home the value of the new enterprise with the launch of a new perks program and company mobile app.  Uber Freight Plus provides truck drivers with discounts and opportunities which vary based on the amount they drive for Uber Freight.

Truck drivers that haul a minimum of one load per month with Uber Freight are eligible for an Uber Freight Plus “fuel card” .  The program provides a 20 cent per gallon discount off the retail price of gas at TA/Petro truck stops or 15 cents per gallon at specific Roady’s locations in California, Texas and Illinois.

After hauling ten loads as Uber Freight Plus members, truck drivers will become eligible for up to $16,000 off new truck purchases from Navistar or up to a $4,000 rebate on used trucks from the company’s International brand.  In addition, Uber Freight Plus members are eligible to save 20-50 percent off the cost of parts on truck maintenance at Navistar centers.  The discount is available on non-Navistar brand trucks as well.  Discounted phone plans through Sprint are another advantage.

Uber Freight is especially interested in attracting truck drivers with smaller fleets.  Uber Freight program advantages were designed to help “level the playing field” in the trucking industry by providing new tools, resources and help to run transportation operations.  Uber Freight maintains that their new plan will match or beat the types of discounts available to drivers who work with larger transportation fleets while enabling drivers to remain independent and in control themselves. 

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