Tracking

By Mark Fiorini, President of Westgate Global Logistics

Since the one constant in life is change, it is important to stay informed on the many fluctuations and challenges that happen in the transportation industry. Without new information, ideas, and solutions, you can get left behind as our industry evolves. One way we stay plugged in to the freight industry trends is by attending the TIA’s Capital Ideas conference. Logistics experts from across North America gather for three days of learning, connecting, and seeing what’s new in the world of freight. Here are some of the highlights from the conference.

Liability and Fraud Issues

Many of the speakers spoke about how liability and fraud issues will impact our future. There is a case in the Supreme court right now which will impact our industry. The case will decide whether State negligent laws are preempted by Federal laws. Depending on the decision, risk could go up and insurance costs could rise. It is important to be prepared for either outcome.

Fraud is something that we have been discussing for years. The TIA continues to provide education and resources to help fight against bad actors and to protect honest brokers. The TIA has backed legislative efforts aimed at enhancing the FMCSA’s authority to assess penalties and crack down on fraud. A speaker from the FMCSA attended the conference and said, “we are ramping up enforcement and some of those fronts aren’t areas FMCSA has been focused on in the past.” He pointed out that while cargo theft is a criminal issue, the FMCSA can work to modernize the registration system and they are working on better technology and processes.

Celebrating the Good

One of the most meaningful parts of the conference is the honor of presenting the TIA’s Heritage Award in honor of my dad, Westgate founder, Tom Fiorini. This year the award went to Rob Robinson, who is the founder of J.H. Rose Logistics. Rob has set an example for many of us and gave generously over his career by serving on a wide variety of associations and boards to help build up our industry. Honesty and integrity are core values that Rob exemplifies, and he is so deserving of this award which recognizes him for his impact on his employees, customers, and colleagues.

Shaping Our Industry

Being actively involved in the Transportation Intermediaries Association (TIA) has been a vital way to advocate for my business and our industry. TIA sets the ethical standards for the 3PL industry, represents our interests before government bodies, and advocates for regulations that promote fair competition, safety, and efficiency in the transportation sector.  It is an honor to serve on the board as the TIA develops policy initiatives and strategies for important issues we all face. I look forward to our next gathering.

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There was once a time when private fleets had a clear advantage in the pursuit of hiring truck drivers. But the COVID-19 pandemic caused many disruptions in nearly every segment of the supply chain that we’re still feeling today.

Freight demand has been rising which means that equipment capacity and trained drivers are in high demand as well. But it’s not just high demand stretching available drivers thin, the trucking industry has about 80,000 fewer available drivers today compared to a year ago.

Even before the pandemic caused many older truckers to retire for health concerns, trucking was already dealing with issues of drivers retiring. According to the National Transportation Institute (NTI), retirement accounts for 54% of the driver shortage we’re facing today.

“These challenges aren’t entirely new, but the pandemic accelerated them,” said Jim ­VonAchen, director of transportation support for McLane Co., a major distributor of groceries and packaged goods based in Temple, Texas.

“There’s just a lot more competition in every segment of the freight and transportation business,” said Brian Johnston, senior director of transportation at Core-Mark International — one of the largest distributors of fresh food, snacks, and tobacco goods to the convenience retail industry.

The increased freight demand brought on by the pandemic isn’t the only factor in the increasing shortage of available driver though. Other factors contributing to the shortage are:

  • Truckers are retiring
  • Other industries are poaching drivers
  • The FMCSA’s Drug and Alcohol Clearinghouse makes it harder for cited drivers to move from one carrier to another
  • Limited seating capacity due to COVID-19 social distancing requirements means driver schools are graduating 30% to 40% fewer drivers

 

This means that private fleets will have to fight even harder to recruit drivers moving forward. Companies need to be more creative in what they are offering to drivers in order to get them to sign on – and stay on. Some companies are offering:

  • Increasing pay rate
  • Safety bonuses and recognition
  • More flexible work schedules, including shorter shifts
  • Programs targeting military veterans that utilizes their military training experience
  • Apprenticeship programs for warehouse workers to transition to driver positions

 

“Drivers want to feel that they are heard and will have someone who will listen and act on their concern,” said Jane Jazrawy, CEO of CarriersEdge, an Ontario, Canada-­based company that develops compliance and safety training tools for fleets. “They just don’t want to be referred to as a truck number.” That’s why, in the midst of this seemingly epic driver shortage, we’re actually seeing a dramatic increase in truck driver hires in the smaller companies.

Sources: FMCSA, QualifiedCarriers.com, Tucker Company Worldwide, Inc.

That’s why working with a smaller company, like ours, can help you stay a step ahead of the rest. It may sound like a cliché, but we value our employees, our customers and the drivers who are hauling our customers’ freight. It’s our goal to ensure that they feel like they are part of the Westgate family.

Westgate has always been committed to fostering long-lasting relationships with our carriers which, in turn, allows us to deliver the best quality services to our customers. See for yourself why businesses depend on us to improve their shipping processes. CONTACT US today!

Technology is only as good as the team behind it!

 

The newest, sleekest logistics technology is rendered useless if the company utilizing it doesn’t have an experienced team managing it. The topic of offering shippers tracking and visibility comes up a lot in conversations as well as in industry publications.

Providing insight into load status through modern technology is definitely important. However, the team behind the technology is what makes it a successful tool. They are able to stay on top of your important delivery and address any delays and issues along the way. The technology isn’t going to do that on its own.

Westgate’s Chairman Tom Fiorini commented “Everyone says shippers want more visibility. What they really want is the freight off their dock on time and no issues during transit.” While Westgate utilizes a sophisticated technology to give their shippers the data and updates they need, they also have the focused support team to monitor it along the way.

 

“We want to take that worry away from our customers,” says President Mark Fiorini. “Westgate gives location updates sent via email, a log in to view detailed freight coordinates, the ability to watch your freight’s real-time movement, and estimated arrival time. But the real value comes from the trustworthy team monitoring all of this.”

 

As shippers find themselves regularly dealing with time-sensitive and short-notice shipments, working with a vendor who has tracking, estimated time of delivery becomes vital. The technology is useless though if the shipper doesn’t have time to use it. Since the shipper is short on time, the broker’s ability to monitor and manage the technology is key to a successful process.

Ultimately, technology can save time and improve processes. But the human touch is what makes it a tangible resource.

 

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.