Though it's been a mild winter so far for most of the country, it is definitely winter. Making sure that your company and supply chain are prepared for winter storms is important to ensuring that your clients remain happy and your employees and assets remain safe. While we typically discuss topics specifically related to freight and logistics in our blog, this post can apply to all types of businesses.
Last week, rail carrier Norfolk Southern rejected a $28.1 billion acquisition offer by Canadian Pacific Railway. Norfolk did not solicit the offer, and rejected it on the grounds that Canadian Pacific's interest level is “grossly inadequate, creates substantial regulatory risks and uncertainties that are highly likely to be overcome,”. Canadian Pacific feels that an acquisition would make sense for several reasons - including attractive results for shareholders of Norfolk Southern's investors.
Earlier this week, Canadian Pacific released the following statement:
While you might not hear about cargo theft on the news very often, it's happening all the time. Cargo trucks or trains with branded goods like consumer electronics, are attacked as often as once per week around the world. Many of these events occur in Asia or the Middle East, and separately, in Italy as part of organized crime. In both cases, thieves often use heavy weapons and threats of violence to hijack freight. Cargo theft surged over 300% from 2008 to 2014, raising alarm bells around the global logistics industry.
Consumption of diesel fuel in the United States has leveled off this year, after two consecutive years of strong demand. Experts say that this slowdown in usage mirrors the slowdown we've seen in inland freight movement, and the larger slowdown in shipping worldwide, compared to 2013 and 2014. Reasons for the slowdown include the strong US dollar and the a slowdown in economies like China and Brazil. The number of empty shipping containers which are returning to Asia has been increasing steadily in the last few months.
Traditionally, security checks for air cargo shipments are performed by trained dogs and security officers. The increase in global air cargo over the past decade, however, has presented an increased need for additional security systems to screen cargo. Systems that are being used today include X-Rays and other explosive scanning devices. In the last 6 years. the TSA has expanded its use of canine detection teams, which conduct primary and secondary screening of air cargo. While all cargo is screened, the emphasis is on freight which will be moved on passenger airliners.
A recent study of American shoppers revealed that online shoppers from 20 years old into their mid-thirties expect to have same day shipping as an option when they make purchases online. While veterans of the e-commerce world probably are not surprised at these numbers, they do point to a large gap between what many online shoppers want and what giant, traditional retailers are used to. Online giants like Amazon have changed the playing field with expeditious picking and shipping of orders from a network of geographically placed warehouses, and next day small parcel shipping options.
Sometimes, manufacturers, wholesalers and distributors receive inquires from overseas companies who whish to distribute or resell their products. In many cases, the request is denied or not taken seriously because of the complexities that are sometimes feared when customs and international shipping becomes involved. GlobalForwarding.com has a team of experts who are able to assist shippers with obtaining instant rates for shipments, helping with paperwork and customs issues, and planning overall logistcs and movement of products. In such cases, both revenues and profits can
The manufacturing industry has seen huge innovations in the past 10 years, from advanced barcode scanners, conveyor systems and robotics to 3D printing and more. Just like the manufacturing industry, the transportation sector has seen new technology develop over recent years. Transportation, logistics and distribution systems have become completely computerized, allowing companies to have better control and visibility over their supply chains. In turn, companies require a more advanced level of computer literacy and ability to adapt to technology among new employees.
The link between shipping and manufacturing might be one of the most important connections in the business world. To illustrate the meaning of this, let us examine a recent example. The Journal of Commerce recently repeated that the United States ports all around the Gulf of Mexico are seeing increased volume of shipments lately. The reason for the increase? According to the article, because billions of dollars are being invested now in petrochemical manufacturing construction.
For all of the security at ports to protect against crime, there is one area at the ports that remains liable from outside threats. This one area concerns cyber security. At today’s shipping ports, computers and technology play a major role. If a cyber terrorist or hacker were to successfully penetrate these computers, there could be numerous delays. And since these ports are responsible for billions of dollars worth of goods, then this could severely hurt our economy.
