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Think Tank
Transportation Management: Page 68
How Container Shipping Is Evolving in Asia's Changing Economies
The viability of the international container ship transportation industry depends on vibrant trade between distant nations, and that trade depends on cost-competitive manufacturing industries in the exporting nations, mainly China.
Transforming Logistics: Don't Fall Behind on These Trends
Analyst Insight: The findings from the 25th Annual Trends and Issues in Transportation and Logistics suggest that three complex supply chain elements - transportation, technology, and organizational structure - have companies waiting before committing to transformation changes in these areas. However, waiting too long to make a decision will result in a competitive disadvantage that will be difficult to overcome in a global economy. Understanding the interplay and interconnectedness of the three elements is essential in determining the path forward. – Mary Collins Holcomb, SCM professor, University of Tennessee, and Karl Manrodt, logistics and SCM professor, Georgia College and State University
Grocery Heavyweights Expand Delivery Services
Big food retailers are expanding grocery delivery services, hoping to dissuade customers from defecting to online rivals.
Calming the Bubble in Deep-Sea Cargo Markets
Analyst Insight: Slow post-recessionary recovery has fostered uncertainty in many markets, but few have felt the effects as strongly as deep sea cargo transportation. The market's emblem - an ancient, laboring ship that is slow to adapt to obstacles in its path - has become an apt metaphor for the market itself. Financial risk, absent demand and volatile inputs indicate that container shippers may be caught in a bubble - one that IBISWorld anticipates will burst by 2020 unless shippers change course. – Ashley Cruz, research analyst, IBISWorld Inc.
Omni-Mode Transportation Integration Is Key Tool for Profitable Fulfillment
Analyst Insight: In 2016, Amazon subsidized the cost of shipping to their customers by about $7bn, setting a very high bar for customer expectations of cheap or free shipping with rapid delivery. Most competitors don't have the same options as Amazon to buy market share this way, putting enormous pressure on them to squeeze every penny out of fulfillment and transportation costs (as well as to differentiate in other dimensions). Omni-mode integration is one tool that can help companies lower shipping costs to effectively compete. – Bill McBeath, chief research officer, ChainLink Research
The Future of Transportation Looks Flexible
Analyst Insight: Logistics decisions are executed to deliver a service at the lowest possible cost. There are various inefficiencies in logistics operations, and the overall supply chain, that make this seemingly simple objective a constant struggle. Some of those inefficiencies are self-imposed by shippers, as they attempt to drive stability in logistics to lower costs. Mode decisions and core carrier programs are examples of historical ways to drive logistics efficiencies. But they may be driving inefficiencies in tomorrow’s logistics operations. – Shanton Wilcox, Partner-Supply Chain Management, Infosys Consulting
A Grim 2017 Expected for Container Shipping
The outlook for global container carriers remains grim at the outset of 2017, says analyst AlixPartners in their latest industry report.
Who's to Blame for the Trucker Shortage?
Help wanted: America needs truck drivers. In 2015, American Trucking Associations estimated that for-hire trucking companies had nearly 50,000 fewer drivers than they needed. The shortage was less severe in 2016, but the trade group expects it to worsen in coming years.
Are Ocean Carriers and Shippers Focused on Service - Or Just Lip Service?
It's been the same drill for years: Ocean carriers and shippers talking service, then fixating on price. Is this disconnect finally about to be disrupted?
Autonomous Robots Promise Economic Delivery Options
Analyst Insight: The decades-old practice of a delivery truck dropping off a package at a home or business occurs millions of times daily across the globe. But new ways to cover last-mile delivery - such as drones, self-navigating parcel robots and underground vehicles/tunnels - are providing a glimpse into what tomorrow's last-mile delivery options might look like. Here are three technologies that carry the potential to transform the local delivery of direct-to-consumer orders. – John Johnson, senior content specialist, Gartner
Amazon Founder Plans Delivery for 'Future Human Settlement' of the Moon
More than four decades after the last man walked on the lunar surface, several upstart space entrepreneurs are looking to capitalize on NASA's renewed interest in returning to the moon, offering a variety of proposals with the ultimate goal of establishing a lasting human presence there.
DHL Pilots Carbon-Neutral Bike Deliveries
DHL Express is piloting a cargo bicycle program for inner-city deliveries. The bikes, called 'DHL Cubicycles' are customized, four-wheel bikes that can carry a container with a load of up to 125 kilograms (one cubic meter in volume). The program reduces emissions by minimizing the mileage and time spent on the road by standard delivery vehicles. As e-commerce volumes surge, efforts to minimize the industry's high carbon footprint are increasingly important.
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