Logistic

May 26, 2023 / By Erika / Drivers • Logistic • Transport / 0 Comments

On May 10th, President and CEO of the Transportation Intermediaries Association (TIA), Anne Reinke, testified before the House Committee on Transportation and Infrastructure on behalf of freight brokers. She addressed the challenges faced by 3PLs and offered solutions to ease supply chain disruptions. Reinke also emphasized the need for a better safety rating system and the fight against fraud in the logistics industry, estimated to cost $800 million.

Westgate has been a long time member and supporter of the TIA, which not only sets the ethical standards for the freight brokerage industry, but also actively lobbies on our behalf regarding important issues affecting our businesses.

Read the full article here: LINK

April 10, 2023 / By Erika / Logistic • Transport / 0 Comments

Westgate’s Mark Fiorini is Part of the Power 100

Congratulation to Westgate Global Logistics’ President, Mark Fiorini, for being chosen for the 2023 Lehigh Valley Business’ Power 100.

Chosen by Lehigh Valley Business staff, this list consists of the top 100 most influential business leaders from a wide variety of businesses in Lehigh Valley. These leaders improve the local community, bring prosperity, and are considered to be the “movers and shakers” of the area.

We are proud of Mark for all his hard work and dedication to Westgate and beyond. His leadership is valued by all the employees, customers, and carriers that he impacts.

If you would like to read more about the Power 100 or Mark and his accomplishments, you can read more here: LINK

March 15, 2023 / By Erika / Logistic • Transport / 0 Comments

FMCSA Carrier Safety Bill In The Works

A bill has been introduced to Congress to amend the safety rating process for motor carriers. The upgraded standard would also require shippers and brokers to ensure trucking companies are licensed, registered, and insured before using them. As the TIA and its members continuously put forth efforts to establish a Motor Carrier Selection Standard, this is a small step in the right direction for the freight brokerage industry.

“TIA applauds Congressmen Gallagher and Moulton for their leadership on this critical safety issue. The current carrier selection processes lack clarity, affecting greatly not only our members but also all highway users. This legislation establishes a robust and clear rating process and improves highway safety,” stated TIA President & CEO Anne Reinke.

Read the full article at FreightWaves: CLICK HERE

February 6, 2023 / By Erika / Logistic • Shipping • Transport / 0 Comments

Westgate’s 40-Year Anniversary

We take a look at the history of the transportation industry and how Westgate Global Logistics evolved along with it.

A New Era in Transportation

The Motor Carrier Act of 1980 (MCA) was the beginning of deregulation in the trucking industry and the start of a new era in transportation. It promoted the introduction of a new entity to trucking… Freight Brokerage. The role of the broker was to serve as an intermediary between shippers and carriers, facilitating high levels of communication and customer service to move shipments faster and more efficiently. This opened up a new opportunity for businesses to meet this need and changed how goods are transported across the country.

While these industry changes from the MCA were taking place, our co-founder Tom Fiorini was a manager with IML Freight (a former LTL carrier based out of Salt Lake City). His boss at the time saw great potential in the brokerage business and began the process of leaving IML to start his own freight brokerage. Being a friend and mentor to Tom, he strongly encouraged Tom to consider the same opportunity.

Westgate Breaks Out

Meanwhile, a long-time freight salesperson and acquaintance of Tom’s in the Lehigh Valley, PA area, Don Hunsinger, had already secured a business license to start a brokerage firm. Tom joined him and together they formed Westgate Transportation Inc. in 1983. This partnership continued through the early 1990’s until Tom became the sole owner.

Westgate was founded on our core values – honesty, integrity and trust. This mindset coupled with our focus on remaining a small, streamlined company helped us remain flexible and able to provide personalized solutions to our customers. This structure and mission have allowed us to stand out in the industry as we are able to provide nimble solutions that are unique to our customers’ needs. In addition, both our carrier base and our employees enjoy working with a family owned company where their needs are valued and prioritized. As one of Tom’s ten children, Mark Fiorini joined the company in 2012 and became President in January 2017. Mark continues to focus on maintaining the tradition and culture that Tom built as the company grows.

40 Years Later

As we enter 2023, Westgate is celebrating its 40th anniversary year. Over the years we have witnessed many changes in the industry, including the move from paper to technology and ever-evolving tools. And while Westgate utilizes advanced technology to give their shippers the data and updates they need, they also have the focused support team to monitor it along the way. The newest, sleekest logistics technology is rendered useless if the company utilizing it doesn’t have an experienced team managing it. The highly-trained team utilizing the technology is what sets us apart.

In celebration of our 40th year, we are transitioning to the new company logo and look to reflect the growth and legacy of Westgate. Rest assured that our values, mission, dedication, and commitment to our relationships remain the same.

We dedicate this milestone to the customer base, the carriers, and the company’s trusted employees. We thank our customers for having the trust in us as a reliable partner to provide solutions to their shipping needs and challenges. Likewise, we thank our carrier base for allowing us to represent them, and for providing great transportation services for us and our customers. Most of all, we thank our employees for their dedication, hard work, and integrity in facilitating each and every move.

Remembering Tom Fiorini: a Founder, Father, and Mentor

It is with very heavy hearts we announce that Thomas A. Fiorini passed away on January 6th, 2022. Tom was more than just our Chairman and Co-Founder of Westgate Global Logistics. He was our dear friend, our mentor, and our family. Tom impacted each person he encountered with his incredible ability to connect with others and the integrity he upheld in everything he did. He was a hard worker in both his professional and personal life. He enjoyed fixing things and updated his entire home. Most of all, he enjoyed spending time with his large and ever-expanding family. He will be dearly missed and we will carry on his values and vision in how we work and how we live. You can read Tom’s full obituary here: https://www.cantelmifuneralhome.com/notices/Thomas-Fiorini

We are grateful for the firm foundation Tom established for us and look forward to many more years of fulfilling his vision.

CONTACT US

See for yourself why businesses are depending on Westgate to improve their shipping processes and to keep them informed of industry trends. Reach out to us to experience our boutique approach to streamlining logistics through an extensive network of resources, trained brokerage experts and unique personal service.

October 4, 2022 / By Erika / Logistic • Transport • Trucking / 0 Comments

Why AB5?

New California law adds a little chaos to truckers’ lives coast to coast.

Are independent owner-operators and drivers lease-independent contractors, or are they really employees under another name?

That’s the question posed by AB5, a controversial California law that has other states eyeing similar measures. Now that the law has passed a Supreme Court challenge, organizations like the TIA are studying the effect the ruling might have across the transportation industry.

It Started with Uber

AB5 was originally designed as a way to give gig drivers, like those working for Uber, Lyft, DoorDash, and similar app-based services, a fair shake. It codified the “ABC test” for determining if a driver was an independent contractor or an employee. You count as an employee – with all the obligations that entail – unless the company that hires you can prove:

You’re “free of the control and direction of the employer in performing work”; in other words, you’re not subject to hands-on supervision.
The work you do is outside the usual course of the employer’s business.
You’re already working in an independently established trade, occupation, or business of the same nature as the work performed for the employer.

For Uber drivers and the like, the law meant a chance at unemployment insurance, health insurance, sick leave, minimum wage, and everything that goes with a regular job. It went into effect on January 1, 2020.

By November, the ride-share companies had sponsored their own law, Proposition 22, that overrode AB5 and specified that app-based drivers were independent contractors (though it did kick in some health-care subsidies and accident insurance for them).

But other independent contractors – and especially other drivers – were left out.

No Dice In Court

The California Trucking Association challenged the law and ultimately tried to bring its case before the U.S. Supreme Court, but the court declined to consider it, issuing a denial without comment this summer.

Different versions of the law passed in Massachusetts and New Jersey attracted similar challenges from groups representing freelance journalists and photographers, saying that a law declaring them employees was a limit on their freedom of speech, but those arguments got no further.

For now, the CTA case is back in a California district court, and the state was trying to have the Owner-Operator Independent Drivers Association (OOIDA) removed from it. The CTA and OOIDA replied with a joint statement saying, among other things, “It makes no sense that the State would oppose the participation of the nation’s largest and oldest organization representing small-business truck drivers in a lawsuit that harms tens of thousands of OOIDA’s members.”

That was in September. At the time this article is being written, it seems likely the court arguments will continue – but the law is already in effect.

Now What?

For now, TIA Board Vice Chair Mark Christos is heading up an “AB5 Task Force” looking into three possible impacts the law might have: first, on how brokers will now relate to owner-operators in California; second, on how agents used by brokers will be affected; and third, what broad effects the law will have on California’s cargo-carrying capacity.

The TIA also brought up the wider legal picture in Policy Forum in Washington, D.C. this September, as a part of what they’re calling “supply chain sustainability.” Our President Mark Fiorini attended the forum and is committed to being involved in these critical policy meetings. They’re hoping to get lawmakers to review how dozens of outdated or mismatched regulations are actually shaping the way things get moved from point A to point B.

For owner-operators and other independent contractors, as well as for the motor carriers who hire them, things are still somewhat in the air. Will brokers suddenly have to become employers if their drivers enter California (or Massachusetts, or New Jersey)? Can California-based motor carriers and owner-operators survive what the CTA has called “the costs and burdens associated with shifting to an employer-employee business model”? How will those “costs and burdens” affect prices and plans up and down the supply chain?

Unfortunately, those answers remain to be seen.

As Always, Westgate Global Logistics Will Keep You Informed On Industry Issues. We Encourage You To Evaluate Your Business, And If You Have Any Questions, CONTACT US To Discuss Your Transportation Needs.

Since this article was written, the U.S. Department of Labor has proposed a national regulation similar to AB5.

SOURCES:
https://www.investopedia.com/california-assembly-bill-5-ab5-4773201

https://www.foley.com/en/insights/publications/2022/07/supreme-court-refuses-challenges-california-ab5

https://www.freightwaves.com/news/california-doesnt-want-ooida-allowed-into-next-steps-in-ctas-ab5-lawsuit

https://multichannelmerchant.com/operations/ab5-upheld-as-supreme-court-declines-case/

https://www.freightwaves.com/news/viewpoint-how-a-supreme-court-ruling-will-immediately-affect-california-trucking

https://3plmagazine.tianet.org/2022/09/06/tia-task-force-to-review-impacts-of-ab5-to-industry/

June 2, 2022 / By Erika / Logistic • Transport • Trucking / 0 Comments

Industry Insights: Fuel Prices, Economic Trends, and Emergency Service Responses

Soaring Fuel Prices Putting the Squeeze on Owner-Operators

As fuel prices continue to surge, many of the 350,000 registered owner-operator drivers are looking at changing lanes and becoming company drivers. “It’s not happening yet, but it’s coming,” said William “Lewie” Pugh, an OOIDA executive vice president who worked as a leased owner-operator for 24 years, said of free-agent independent drivers either leaving the business or deciding to change the way they operate.

According to weekly data from the Energy Information Administration (EIA), on-highway diesel pump prices are still hovering around record-high levels, averaging $5.72 a gallon nationwide. On top of the soaring fuel prices due to rising oil prices, flattening demand and lower spot rates are putting owner-operators in a tough spot. As a result, many drivers are looking to change the way they operate by either becoming company drivers and avoiding the fuel mess or by leasing their independent services to a fleet.

Freight Industry Downshifts from Hectic Pace for Shipping

As we approach the midway point of the year, the survey-based Logistics Managers Index fell for the first time this year. In fact, it fell from a record high in March to the lowest level since January 2021. However, not every sector in the industry was hit equally. While the inventory and warehousing sectors only exhibited minor changes, the transportation sector showed the steepest drop.

“Despite the slowdown in transportation, respondents still indicate growth in the sector, just at a slower pace than what we’ve seen over the last 18 months,” the report stated. “It can be observed that the two curves have not yet inverted, suggesting that while the frantic pace in the transportation market has slowed down, we have not yet tilted into a full-on recession.”

Rail Regulators Want to Speed Emergency Service Responses

Recently, the Surface Transportation Board (STB) announced the upcoming policy changes that will overhaul the existing emergency service rules. The new policy would essentially set up an accelerated response to emergency situations.

The STB mentioned many issues faced by the rail sector, including:

tight car supply
unfilled railcar orders
missed switches
ineffective customer assistance

“The rail service challenges shippers are currently experiencing are amplified by certain recent conditions but are not new,” STB Chairman Marty Oberman said in a release. “For several years the Board has gathered information showing that the existing emergency service rules are too cumbersome to be of use to shippers in need of immediate relief.”

About Westgate

You can always count on Westgate Global Logistics to keep you up-to-date on industry news. Our passion for delivering exceptional logistics services continues to be at our core and is why we have thrived in this constantly changing industry. CONTACT US today to experience how we can improve your shipping efficiencies.

SOURCES:
https://www.freightwaves.com/news/soaring-fuel-prices-leave-owner-operators-with-tough-choices
https://www.ttnews.com/articles/white-house-eyes-emissions-fuel-prices-congress-finalizes-supply-chain-bill
https://www.ttnews.com/articles/freight-industry-downshifts-hectic-pace-shipping
https://www.freightwaves.com/news/rail-regulators-want-to-speed-emergency-service-responses

March 30, 2022 / By Erika / Logistic • Shipping • Transport • Trucking / 0 Comments

Industry Insights: Truck Tonnage, Women in Logistics, and Expedited Shipping

Truck Tonnage is Up¹

Compared to this time last year, truck tonnage is up over 2.5%. “Demand for trucking freight services remains strong, but for-hire contract carriers are capacity constrained due to the driver and equipment markets. The spot market has been surging as these carriers can’t haul all of the freight they are asked to move,” said Bob Costello, ATA’s chief economist. “So the fact that the tonnage index hasn’t fully recovered is a supply problem, not a lack of demand.”

In fact, demand has been on the rise since the beginning of 2021. According to the National Retail Federation, retail sales are expected to continue to rise in 2022. “NRF expects retail sales to increase in 2022, as consumers are ready to spend and have the resources to do so,” NRF CEO Matthew Shay said. “We should see durable growth this year given consumer confidence to continue this expansion, notwithstanding risks related to inflation, COVID-19 and geopolitical threats.”

Even though the expected growth rate for 2022 is lower than the 14% annual growth rate we saw in 2021, it is stronger than the 10-year, pre-COVID-19 pandemic growth rate of 3.7%.

Women in Logistics²

Many women are taking advantage of the opportunity to work in the logistics industry and contribute to a field that is often considered the backbone of American society. However, women’s presence in the industry is still lacking. In fact, men make up about 90% of the driving and warehouse positions and 70-80% of the positions in the 3PL space.

Are we lacking women in logistics? If so, we’ve come a long way, but what else can we do? How can we attract female talent to the industry? The TIA’s Women in Logistics (WIL) committee has a few plans in this regard, including speaking to high school and college-age students to introduce an industry they might not have ever considered.

Save Money with Expedited Shipping³

As shipping delays and supply chain issues continue to disrupt the logistics industry, a huge issue businesses are struggling with is shipping and receiving products on time. These disruptions can cause companies to miss deadlines, leading to the loss of valuable customers and vendors.

However, expedited shipping services can help mitigate these issues and save you money in the long run. Westgate has almost 40 years of experience as a freight broker. We can identify the quickest and most cost-effective transportation methods while also helping to prevent financial loss caused by absent or late shipments.

When you partner with Westgate, we save your account information, needs, and special requests in our customer database. That means that every time you ship with us, you’ll spend less time explaining your situation, getting your inventory on the road and on its way even faster.

When you have goods that need to be delivered, there’s no time to waste. LEARN MORE today to find out how we can help you with your shipping needs. CONTACT US today to request a quote!

December 27, 2021 / By Erika / Cargo • Logistic • Shipping • Transport • Trucking / 0 Comments

Top LTL Mistakes to Avoid

Less than truck load (LTL) shipping can be an extremely efficient way to move shipments when you don’t need to fill an entire trailer.

However, if the LTL shipping process is not implemented well, it can have some potential disadvantages, costing the company more time and money than necessary.

In order to ship smarter, a shipper needs to know how to get the most benefit for the cheapest price. Understanding common LTL shipping mistakes makes it much easier to avoid these issues. LTL shipping is a growing side of the freight industry and shippers need to know these common pitfalls in order to avoid a potentially costly shipping mistake.

Here are some ways to avoid common LTL shipping mistakes you could be making that hinder productivity and negatively impact the bottom line…

1] Know your dock delivery set up to plan for additional services needed.

2] Include proper labeling and documentation.

3] Train employees in OSHA regulations and the risks associated with not following them.

4] Provide correct load dimensions.

5] Provide accurate class designations.

6] Use the right equipment to weigh the freight correctly.

If you’re tired of dealing with the frustration that comes with shipping via LTL carriers, working with an experienced 3PL to manage your less than truckload shipping tasks is a smart idea that can save you a tremendous amount of money.

For more packing tips and tricks, download our free Freight Pallet Packing Guide HERE.

CONTACT Westgate today to speak with a shipping specialist about how to make your shipping more efficient!

December 16, 2021 / By Erika / Logistic • Shipping • Transport • Trucking / 0 Comments

2022 — Continued Supply Chain Challenges

Prior to the Covid pandemic, less than 50% of the population had any knowledge regarding supply chain issues.

Today, over 90% are aware of supply chain issues and the impacts they have on our everyday lives.

There continues to be significant congestion of ships and an overwhelming shortage of container equipment in addition to staffing problems at the ports. In order to abate anxiety among the general public, container vessels must now anchor at least 50 miles from the Ports of LA and Long Beach until they are called in for offloading. Out of sight, out of mind. Although unpredictable, capacity and supply will eventually return, which will cause rates to level off somewhat.

Shippers who negotiated contracts early in 2021 will experience the highest rate increases in 2022. Early negotiation created a buffer for the price increases that developed throughout the year. Those shippers may experience rate increases as high as 20%.

While all shippers are interested in transit time, the primary concerns are occurring at the point of origin. It is vital for shippers to get products off their docks, opening floor space and providing the opportunity to invoice their customers. Transit time has become a secondary concern. Unfortunately, we will continue to experience a degradation of service throughout 2022.

It’s nearly impossible to have a lean operation without a predictable supply chain. Shippers must reassess what they consider to be safe inventory levels to meet production goals and may be forced to consider additional warehousing when necessary. Lean and just in time (JIT) inventories must be closely monitored and risk assessments should be performed regularly when permitting vendors to maintain stock.

Carriers have been working around the clock to keep up with the influx of freight. It all begins and ends with drivers. Both shippers and carriers need to work together to make the truck driving profession more appealing. The current commercial truck driver market consists of 92% men and 8% women, with the average age around 49 years old. A campaign to lower the age requirement to 18 years old as well as add more women to the driver pool appears to be a necessity. Despite driver pay increasing by as much as 25%, attracting more drivers has continued to be a challenge. Carriers have also reported that many current drivers have opted to work shorter hours in response to their increases in pay.

Many carriers are transitioning to target pricing, which is essentially identifying “good freight” versus “bad freight”. For example: How easy are the customers to work with? Which shippers load and unload quickly? How far out of route do they have to travel to their next pickup? etc. The pricing carriers quote will reflect their assumption on what freight works and what freight does not work in their systems.

The overall cost of trucking will remain high considering the elevated costs they are facing. In addition to the rising costs of fuel, equipment and insurance, LTL carriers are forced to use outside TL carriers to supplement their linehaul service.

Keep an eye out for another potential Black Swan Event. The ILWU has threatened a strike in July. While in the past they were agreeable to automation, they are now opposed and that has become a major sticking point in contract negotiations

WHAT IS A SHIPPER TO DO?

Become a strategic shipper.
Limit the dwell time carriers experience on the docks.
Make it as easy as possible for carriers to pick up and deliver.
Turn containers and trailers around quickly.
Provide a desirable environment for drivers.
Share important information.
Put yourself in the driver’s shoes with regard to your dock processes.

If you’re interested in improving your supply chain or reducing your freight costs… CALL WESTGATE GLOBAL LOGISTICS

610-866-8001

December 8, 2021 / By Erika / Logistic • Shipping • Transport • Warehouse / 0 Comments

Logistics Developments: What’s Out-of-Stock, Warehouse Squeeze, and EV Trends

2 Billion Out-of-Stock Messages

Online shoppers in October were looking for goods but instead found 2 billion out-of-stock messages according to an Adobe Analytics study. That is quadruple what it was in October of 2019. In November of this year, the out-of-stock messages surged 258% compared to November of 2019. The discounts offered were also lower than previous years.

The highest out-of-stock items were:

Electronic goods
Jewelry
Apparel
Home and Garden
Pet Products

It isn’t only online stores that have empty shelves. However, many businesses have tried to beef up their in-store inventory ahead of the holidays. Some are anticipating more in-person shoppers this year as consumers may be nervous about product shipping times. People can also look for alternatives easier in person if they face out-of-stock messages about what they were originally looking for.

Warehouse Shortages

Shipment congestion in ports has been making headlines but it also is translating into warehouse issues as well. Warehouse space was already scarce and now is in even more demand. Warehouse vacancy has reached a record low at 3.6% according to CBRE. This is so low that it really isn’t efficient. You need to have a little bit of availability to operate smoothly. Just like a lot of other price increases we are seeing, warehouse rent has gone way up. The net asking rent is at a record $8.92 per square foot. That is a 10.4% annual increase. This is likely to be an issue in 2022 and 2023.

As a result of the shortage of warehouse space, storage trailers are also extremely hard to find. Shippers and manufacturers are ordering more overseas products ahead of time to combat the congestion and delays on container shipments. Storage trailers have been a useful method to keep additional stock on-site without overcrowding their facilities. However, trailer manufacturers are unable to fulfill their orders which is compounding the issue and creating a rise in the cost of both new and used trailers.

What’s New in Trucking Sustainability

There has been a lot of build-up and talk around electric vehicle (EV) growth in the commercial truck and van space. And while there are some recognizable names such as Tesla, Volvo, Freightliner, Peterbilt, Mack, etc., there are some original equipment manufacturer (OEM) newcomers on the market. There are certainly some challenges ahead and EV adoption is still very low. But that doesn’t mean it isn’t coming. Daimler Trucks North America had vowed to have carbon-neutral truck lineups by 2039. And Volvo Trucks North America is aiming for the same by 2040. It will be interesting to see how these zero-emissions technologies compare as more players join in the game.