Christopher Nichols

Retailers, take note! Adding an alternate delivery option at checkout could be key. Not just for high-value shipments, but for cases when the customer won't be home. With porch piracy on the rise, leaving packages unattended is a risk. The current redirection process through carriers' portals is cumbersome and impacts customer satisfaction. Check out more on this trend here: https://lnkd.in/gZmJWsYe By the way, signature delivery is $6.50 per package in 2025! Alternate delivery locations a signature isn't required... #customerexperience #porchpiracy Via.Delivery Corp. Parcel Pending by Quadient

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A tough, but necessary, read if you buy into the "Strive to be Earth's Best Employer" LP. I can match each of these points to associates at my site and others I've worked in. - 53% of workers experienced one or more forms of food insecurity in the previous three months. - 48% of workers experienced one or more forms of housing insecurity in the previous three months. - More than half (56%) have not been able to pay all their bills without a remaining balance in the previous three months. - One-third of workers (33%) have used one or more publicly funded assistance programs, including 23% who have used the Supplemental Nutrition Assistance Program (SNAP). - Taking time off due to the health impacts of working at Amazon is linked with greater economic insecurity. 

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CNBC today published the article linked below stating, "America's freight recession is nearing its end...with retail orders and rates headed higher." There are just a few problems: [1]: The article cites data from Motive showing truck visits to distribution centers of the top 5 retailers are up 30% year-over-year as evidence. While Walmart, Target, Costco, Home Depot, and Amazon are indeed large entities (assuming these are the 5 retailers mentioned), they are a small fraction of the overall freight market. And I highly question this figure's accuracy, as Census Bureau data aren't showing sharp increases in retail sales in these sectors to match. [2]: The article ignores that Cass's shipments data for June showed a steep slide to the worst reading in 4 years. Cass shipments is directionally very predictive of freight market dynamics. [3]: The article states, "Data across the retail sector shows year-over-year order increases through June, including at department stores, electronics, and apparel retailers with bricks-and-mortar locations (32.9%), home improvement (24.4%), grocery & superstores (22.1%), and discount retailers & wholesalers (13%)." These numbers can't be accurate nationally, as we aren't seeing increases in real sales or real inventories even close to these totals for these industries based on Census Bureau data. Implication: retail trade is NOT the primary driver of domestic trucking activity. Rather, its domestic manufacturing, and domestic manufacturing output continues to be weak. We are finally seeing signs that seasonally adjusted manufacturing output found a bottom in several industries in late Q1/early Q2 2024, but we still have a way to go before this freight recession ends for trucking firms. #supplychain #supplychainmanagement #shipsandshipping #trucking #freight https://lnkd.in/gAUpaa-Q

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Now that we are halfway through July, I wanted to look at where the dry van truckload spot market was at. Using data from DAT Freight & Analytics, I’ve calculated the dry van spot market cycle indictor as broker buy contract rates less dry van TL spot rates divided by the average of the two series. One chart below. Thoughts: •Historically, when this ratio falls below 10%, we tend to see a bull market pricing cycle begin, which is picked up well the Bureau of Labor Statistics primary service producer price index for general freight trucking, long-distance, truckload (https://lnkd.in/gUXXNHrd). Conversely, anytime we see the series move above 15%, we enter a bear market pricing cycle. Key dates for bull cycles labeled in black, bear cycles in red. These dates mirror swings in observed contract & spot rates picked up by BLS. •The bad news for carriers is that July’s reading of 15.8% is well away from the 10% threshold. As such, there aren’t signs of the market being ready to turn. •For the market to turn, we need more freight demand. Unfortunately, as I’ve been noting frequently, demand conditions just aren’t great now. For example, Cass Shipments, which tracks the trucking ton-mile index quite closely, fell in June to the lowest level since the recovery from the COVID-19 pandemic (https://lnkd.in/gAZb34hZ).  As I’ll share next week, machinery manufacturing and wholesaling is especially weak. Implication: I continue to see few signs that the dry van truckload sector will enter a bull market pricing cycle in 2024. It increasingly looks like any capacity tightening felt in June was just a return of seasonality. Continued weakness in pricing and freight demand reinforces my emphasis on why domestic manufacturing activity must be front and center in discussions about freight demand, with less attention given to retail sales. #supplychain #supplychainmanagement #freight #trucking #economics #markets

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The growing demand for faster deliveries is revolutionizing the last-mile logistics sector. Previously, platforms like Glovo, #UberEats, and #JustEat were at the forefront of this revolution, but now, major retailers are leading the change. They are investing in extremely innovative processes, leveraging well-tested technologies to provide customers with an abundance of fast-shipping options. Who will win the war among Amazon, #Target, and Walmart? "Shipping Wars" is a three-part video series produced by The Wall Street Journal that examines and compares the strategies of these retail giants. This video specifically explores Amazon's strategy 👇 Luiss Business School Luiss Guido Carli University Boston Consulting Group (BCG) Giuseppe F. Italiano Blerina Sinaimeri

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It's always nice to be quoted (even if briefly) by Liz Young at The Wall Street Journal. What Liz highlights here is Amazon going back into expansion mode in their distribution network (something they never really stopped, just slowed down). This new expansion represents a hybrid strategy of integrating old-school big-footprint facilities along with new-school micro-fulfillment centers. This allows them to take advantage of economies of scale and cut costs upstream, while simultaneously increasing service levels and delivery speed downstream. I should note that the timing of this is quite interesting. The warehousing industry has slowed a bit after the red-hot years of 2020–2022. While storage facilities are by no means cheap, they are not as expensive as they have been. My working theory is that by expanding now, Amazon is hoping to get ahead of the next inevitable wave of consumer demand and bolster their network now before competition heats up again. They experienced first-hand how painful it can be to expand during a crisis. It is likely that by doing this now during "peace time" they can get ahead of the curve. It will be interesting to see how this strategy pays off when consumer spending picks up again. Which by the way, is likely coming later this year according to the latest LMI: https://lnkd.in/giCUuw-6 #warehousing #logistics #supplychain #ecommerce

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From a retailer perspective, have you ever wondered how packages are staged for same day courier pick up? Do couriers often interrupt sales associates, leading to lost sales or potential mix-ups? Our smart lockers offer a solution by providing a seamless process for courier pick up within retail spaces, enhancing operational efficiencies. Not only perfect for "Buy Online Pick up in Store" scenarios, but also for staging products for courier collection. Retailers implementing this solution have experienced a 20% increase in on-time delivery performance. Discover more about how smart lockers are transforming last-mile delivery in partnership with retailers: Parcel Pending by Quadient #BOPIS #SmartLockers #operationalefficiencies Learn more: https://lnkd.in/gGumJ-jx

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Much is being said about the not entirely unexpected shutdown of Pitney Bowes (PB) Global eCommerce (GEC) unit, including their fulfillment operation in Kentucky and the consolidator network that hands off to the US Postal Service for final delivery. Days before the announcement of the consolidator network shutdown, PB announced a blanket 25% increase on these services with an effective date of 8/28. Citing the USPS's recent changes to the published, non-negotiated Parcel Select pricing and entry-level discounts, the reason for the rate hike seemed disingenuous to those protected in the short-term by existing Negotiated Service Agreements with the USPS. The fact that they would not live to see the application of the increase suggests that perhaps the changes at the USPS were meant to serve as a convenient scapegoat for their demise. Whatever the reason, PB publicly announced the exit stating they were "committed to ensuring that this process is as seamless as possible for GEC employees, customers, partners and vendors". This was followed by communication to customers that final pickups were in two business days. I hope that better consideration was given to the GEC employees, all good people, than was given to the customers through this chaotic series of announcements. Fortunately, at DCL Logistics, we have a diverse carrier portfolio, ever-increasing, so we were able to easily mitigate this potential business disruption to our customers. Some 3PL's and brands I am sure are not so fortunate. All that aside, I do not feel that the changes at the USPS are to blame for the demise of this segment of Pitney Bowes business. I do feel there will be significant impacts down the road. The Parcel Select and Parcel Select Lightweight services, coupled with deep entry level discounts, have been the workhorse of eCommerce. Removing discounts for DDU level entry will, in the short-term, drive new entry further upstream at the USPS, but is the USPS able to handle that upstream volume? The Postmaster General and ever-growing army of Ground Advantage sales folks think so, but not everyone at the USPS agrees. At the Postal Forum in June, a non-public facing group of processing center managers were conducting meetings. They were not on the floor of the exhibit hall, but they were out in the evenings. I talked to several, and they all said the same thing. They are not able to manage that volume if it moves upstream. One went as far to say that he felt that the USPS was having an identity crisis as to its role in the industry. These are not the only recent changes at the USPS that crashed, some resulting in a congressional review which delayed further rollouts. In addition to the readiness / service impact, there is the cost. The elimination of ounce-based pricing for under a pound shipments, and the changes to the entry level discounts, will fundamentally alter the landscape. New hybrid allegiances will form, and a new workhorse may be born.

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Tay-Tay's Supply chain-chain - How Taylor Swift's Eras Tour Mastered the Art of Time-Sensitive Logistics 🌍🚢 When it comes to large-scale logistics, JIT/JIS strategies aren’t just for CPG or manufacturing—they’re essential for massive events like Taylor Swift's Eras Tour. The challenge of moving 850 tons of equipment across continents underscores the complexities of international logistics. Swift’s team transported 90 cargo containers (TEUs) via maritime shipping from the UK to the U.S., spending over $15 million to ensure her stage setup, costumes, and production essentials arrived on time. This JIT-like precision was key to ensuring seamless transitions between back-to-back performances across Europe and the U.S.​. Much like manufacturing, every piece—whether a stage component or a set of costumes—had to be in place at the right moment. It highlights the critical role of real-time tracking, container optimization, and expert logistics partners like Fly By Nite and Rock It Cargo. Timeliness wasn't just a preference, it was essential for success. If something doesn’t go right with her logistics, EVERYONE would be talking about it, the fact that this is not mainstream is credit to the team’s performance. When things go wrong, like during Drake’s It’s All A Blur tour in Memphis, TN, in August 2023, tens of thousands of fans were disappointed, and the show lost an estimated $1.5 million to $3.5 million in revenue due to the cancelation. The production was cited as “logistically impossible” to execute. Similarly, delays in Milwaukee forced the show to be postponed by a day due to "logistical and technical" issues. 🚀 Are you making excuses and telling your customers "It's All A Blur" or are you in the success "Era" of on time delivery? How is your supply chain leveraging precision to meet customer demands? What strategies have helped you maintain seamless operations, and where do you find unexpected successes or ongoing challenges that your customers constantly notice? Let’s discuss some behind-the-scenes wins that deserve more recognition! #TaylorSwift #Logistics #SupplyChain #JIT #MaritimeShipping #GlobalLogistics #Operations Sources: 📚 FreightWaves – How much does it cost to ship a Taylor Swift tour overseas? (https://lnkd.in/ePsqkiAz) 📚 FreightCaviar – Inside the $100M Logistics of Taylor Swift's Eras Tour (www.freightcaviar.com) 📚 KCH Transportation – Taylor Swift’s Eras Tour Logistics (https://lnkd.in/echYBZ2z) 📚 UK Parliament – Recognising the economic impact of Taylor Swift's Eras tour on the UK economy (https://lnkd.in/eebtpydR) 📚 Daily Memphian – Drake’s ‘logistically impossible’ Memphis concert canceled (www.dailymemphian.com) 📚 WTMJ – Drake & 21 Savage concert in Milwaukee postponed due to production issues (www.wtmj.com)

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This post by today Andrew Silver about whether Uber Freight's new Broker Access is essentially double brokering is worth a read: https://lnkd.in/eVm7q9wv I wrote about the new product today (https://lnkd.in/e5NcSaBC) but let me be absolutely clear. I am not neither for or against the product. I know some people believe a media outlet merely writing about a subject constitutes advocacy (or tacit advocacy) but I don't see it that way. My job, at its core, is to help readers of our publication do their jobs better. Writing about a development in the market - even if it's untested, or a repackaged idea that's been around for ages, or if it's controversial - is part of that process for me. Andrew has forgotten more about brokerage than I'll ever know, but I will say that it's pretty important we clear up the nomenclature in the industry. Some people in the comments to his post said Uber Freight is offering co-brokering. Andrew insisted it is double brokering. The way I understand it is Uber is essentially opening a door to a house that many brokers will never have the resources to build themselves. Will that house ever belong to those other brokers? No, but without giving their customers access to it, maybe they lose the business to another broker anyway. I do think that, as a broker using this product, you have to know that the data you supply can and will be used in some way - perhaps for you, perhaps against you, perhaps in service of another product. That's really up to Uber and brokers using Broker Access to put in black and white with one another. One other thing I'd address: some on the thread, including Andrew, suggested that Uber should get out of the brokerage game and focus on software for other brokers. The argument against that is that a large diversified company - with brokerage, MTS, and software - is better able to ride out different parts of the freight cycle. There's also the argument that a large 3PL can essentially road-test software better than a standalone software company could. Again, I make no judgments on any of this - that's certainly not my role - but rather am eager to hear from the market their thoughts on this as it lives in the real world.

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Steve Kochan has built HaulPay to be a modern tech enabled factoring solution for both carriers and brokers. Read Freight Bites latest post to read about the efficienct and price competitive solutions for freight financing. Thanks Bianca Meneses for bringing the content to us.

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If you’re not following the Port Strike story yet, you might want to… For the first time since 1977, dockworkers are on strike—that’s nearly 50 years! This morning, 36 major U.S. ports were shut down as the International Longshoremen’s Association (ILA), representing around 45,000 port workers, went on strike. The supply chain disruption will be felt soon, but it’s crucial to act now. If your freight forwarder isn’t being proactive, now is the time to be. At Natoex Freight, we’re monitoring the situation closely and are prepared to help our customers navigate this challenge. We understand the impact of port strikes and the potential disruption to your supply chain, and we’ve already developed solutions to keep your business moving. From alternative ports to air shipments and intermodal transport, we’re here to ensure that your cargo reaches its destination on time. While others may be struggling, we’re ready to offer seamless logistics alternatives during this crisis. If you have any questions, please don’t hesitate to reach out, and we’ll work together on a plan to avoid any disruptions.

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Wow - I missed this announcement: #Walmart is moving into the #3PL space with their new WFS (Walmart Fulfillment Services), to compete more with #Amazon services. WM also announced a new "Walmart Cross #Border import service" to help manage importation of full-containers into their fulfillment centers... It will definitely be interesting to see how this plays out - as well as what impacts they will have on independent 3PLs. Definitely another reason to explore regional (and international) partnerships - like some we've been working on over the past year at Global Logistics and Fulfillment - as well as other investments to stay competitive. Let me know your thoughts - how do you see WFS affecting your companies? https://lnkd.in/dnEpUQGF

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I rarely post on LinkedIn, but since this month marks my 10th anniversary at Coyote Logistics, and is likely the last year I'll be able to call myself a Coyote (officially), it feels like a good time to try it out. Like many of us in logistics, I started at Coyote thinking that I'd spend a year or 2 at the company before moving on to something bigger and better. I spent the first years learning the basics; figuring out who I was an operator, spending late nights in the office, even later nights at the bar, and showing up the next morning with a story to tell (probably along with a hangover and some bagels). As I grew in my role, I expanded friendships inside and outside of Coyote. I learned from the mentors that I met along the way (you know who you are). I grew relationships with customers and received compliments on my work, but probably (definitely) not as much as I got yelled at when something went wrong. I learned how to have tough conversations, how to think outside the box and how to empower my teams to make decisions, and mistakes, as long as they learned from them. I won’t say that every day of the past 10 years has been rainbows - 2023 was by far the most challenging year of my career, and even though there is no crying in freight, tears were shed. What I will say is that joining Coyote was one of the best decisions that I have ever made, and that it has helped shape me into the person, and professional, that I am today. I can’t say that I’m not nervous about what the next year will bring; there are big changes ahead. But I also know that Coyote culture will remain strong. We will have each other’s backs and we will grow as we welcome new teammates, leaders and perspectives (technically RXO, Inc. will be welcoming us? But this is my post so it’s fine). OK enough blabbing. Happy 10 year anniversary to the Coyote class of 9/22/2014, wherever you are today. Thanks for everything, and cheers to the next 10 😊

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*****Uber Freight Update***** A few weeks ago, there was a lot of buzz around Uber Freight’s new service offering. Recently, I had the opportunity to meet with Brooks McMahon, VP at Uber Freight, to learn exactly how it works. Here’s what I gathered—let me know what you think. *Brooks correct me if I am incorrect in any area! Here’s how Uber Freight’s platform operates: Load Posting: Brokers post loads on Uber Freight’s platform, setting the price they’re willing to pay (similar to a traditional load board). Carrier Bidding: Uber advertises these loads to its carrier network. Carriers can either accept the offered price or bid a higher rate. Broker’s Decision: Brokers are notified of bids and can accept or reject them. If accepted, the carrier is assigned the load. Setup Process: If the carrier isn’t already set up with the broker, they complete the onboarding process through Uber’s platform, including signing a broker-carrier agreement. Execution and Payment: The carrier gets a rate confirmation via Uber's platform with the broker’s branding and handles the shipment. Uber charges the broker a flat fee for the service, bills the broker directly, and then pays the carrier. Now, here’s the controversy: Is Uber Freight acting as a load board with a built-in carrier network? Is this co-brokering, with Uber functioning as a middleman? Or, as Andrew Silver suggested, does this blur into double brokering territory? Some might argue that this provides brokers a streamlined way to access capacity while reducing administrative headaches. Others could say it raises questions about transparency and competition. So, what’s your perspective? Does this benefit the industry by creating efficiency and access to capacity? Does it raise ethical concerns about how brokers and carriers interact? Is this a sustainable model, or does it create potential conflicts of interest? The logistics industry is built on relationships and trust—how does a model like this impact that dynamic?

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SHIPPERS... this one is for you. Post Gartner for Supply Chain Symposium, I reached out to our marketing team to describe and collaborate on what we were hearing from dozens of shippers at the event. We live the 4PL life at Redwood Logistics and shippers see their supply chains through a similar perspective. In a logistics world full of implementations and partnerships, how can shippers successfully navigate end-to-end supply chain integration to achieve clean master data to make impactful & predictable business decisions? This blog breaks it down and focuses on the shipper's ability to control the outcome through an OPEN ECOSYSTEM approach to integration. Upstream data driven planning & design that impacts downstream logistics execution that enhances relationships with suppliers, customers, and their IT teams. #modern4PL #supplychaintechnology #integratedsupplychain #openecosystem #masterdata

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Another example of how little work the word "elect" does in the title "President-Elect:" INTERNATIONAL LONGSHOREMENS ASSOCIATION Boss Harold Daggett went to Florida for an audience with the incoming President, followed by an afternoon statement on social media in full support of the ILA position (Lori Ann LaRocco had the screen shot yesterday: https://lnkd.in/di2eV4FH) in current negotiations with the UNITED STATES MARITIME ALLIANCE LIMITED to avoid a strike when the current agreement expires on January 15, five days before inauguration. Without comment on the post itself, two observations: * Paul Berger concludes his story linked below with this: "Shipping industry officials had seen the incoming Trump administration as more sympathetic to maritime employers than the Biden administration." Perhaps the better advocates for the ports' position would be Governors in VA, GA or FL whose states have substantial port investments. * Foreign-owned ocean carriers can advocate for themselves, but it seems that US workers that work for companies that produce export goods will continue to be constrained by the relatively lower productivity of U.S. ports if another long-term agreement limits terminal technology deployments. Interesting times ahead, LinkedIn peeps! #freight #oceanshipping #ports #labor #supplychains

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Great insights on e-commerce returns! According to Narvar, returning a $100 item costs a retailer approximately $32 for re-selling. Transportation stands out as a significant expense, leading many retailers to consider implementing return charges. To mitigate transportation costs, one effective method is dropping off packages at a physical location. Parcel Pending by Quadient provides an automated solution through parcel return lockers, simplifying the process and allowing associates to focus on sales. Our Drop Box solution seamlessly integrates with retailers' return processes, offering features like printing receipts upon parcel drop-off. Find out more about optimizing e-commerce returns here: https://lnkd.in/g3rsy9jg #ECommerce #Retail #Returns

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