Good day,
The National League of Cities’ recently published an analysis of congestion pricing options to reduce traffic bottlenecks. The report was notable for what it didn’t include. There was nary a mention of commercial motor vehicles (CMVs), even though they are major contributors to congestion, and will be more so as a growing volume of goods that used to be picked up in person are now delivered to residences after being ordered online. In fact, past discussions over congestion pricing have focused on ways to get trucks out of cities during daytime commuting hours. Perhaps the League is planning a follow-up study focused on CMVs. Failing that, it is shocking that CMVs got no mention.
Did you know?
That 81 percent of 400 air freight forwarders surveyed by IAG Cargo said technological change will have a positive impact on their business, and that 55 percent said increased automation and digitalization will be the sector’s most important trend over the next 12 months.
Quotable:
“I just got done with IBM.”
– A sales executive in the late 1990s at the old freight forwarder Air Express International Corp. walking back to his office with an exaggerated bowleg gait. IBM was the 1990s version of Amazon.com.Inc. – namely a high-profile shipper with tons of volume and no interest in whether its service provider turned a profit.
In other news:
Domino’s Pizza bracing for ugly Brexit
The pizza chain has spent $8.5 million to stockpile supplies in the U.K. should a no-deal Brexit disrupt its access to key products. (CNN)
Study: Product tracing, logistics most common uses for blockchain
A report from the University College of London found that the grocery sector was the most dominant area of application, with over half the projects analyzed operating in the sector. (Coingeek)
No more Road Dog Network for YRC drivers
The less-than-truckload (LTL) carrier has scrubbed satellite radio subscriptions in its cabs after failing to come to terms with satellite radio provider SiriusXM. (TruckingBoards)
Cars rolling on the Silk Road
As vehicle shipments increase on overland routes between Europe and China, Russian companies such as state-owned RZD are aiming to capitalize on the new business. (Automotive Logistics)
Executive: Proposed California air logistics complex to be environmentally friendly
The Eastgate Air Cargo Logistics Complex in San Bernardino will be sustainable from start to finish, said Paul Granillo, president and CEO of the Inland Empire Economic Partnership. (Redlands (Calif.) Daily Facts)
Final thoughts:
FedEx Corp.’s move to end its domestic ground-delivery contract with Amazon has little, if anything, to do with its fears about Amazon being a competitor. Nor does it have to do with FedEx wanting to make its service offerings available to other e-commerce companies. It has everything to do with Amazon being a relatively small customer with outsized demands and low-yielding traffic. It’s hard to believe FedEx would have cut Amazon loose had it thought the e-tailer was paying a compensatory rate for the services rendered. Amazon may one day compete with FedEx. And FedEx believes it will be able to fill the void with other, higher-revenue business. But neither was a factor in severing the relationship. It was a dollars-and-cents decision.
Hammer down everyone!