Supply Chain Optimization

The Package Revolution

Truck Loading

As we celebrate one revolution on July 4, there are other sea changes happening: Amazon is offering to finance individuals to compete with existing package delivery businesses While Amazon is setting up owner-operators, the teamsters and UPS have ...

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One Freight Rate Is Declining

While we all see the need for highway construction, expenditure on road repairs is… While we all see the need for highway construction, expenditure on road repairs is down 2.9% in a country where roads are making it to the end of their useful life. ...

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Solving One Problem Generates Another

We all know that if you want less of something, tax it. The Colorado DOT is looking to have less traffic ,so they have started testing variable tolls – when congestion is bad, it costs more to use the road. Problem solved. But that creates new ...

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Technology to the rescue + Optimizing the supply chain may get more rapid

One of the big challenges in optimizing the supply chain is the sheer mass of data and the time it takes to come up with a better solution. For example, rerouting trucks around a traffic jam without causing congestion somewhere else takes 45 minutes ...

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Maersk Takes One For The Team

Maersk bought Hamburg Süd last year for $4 billion and is “taking one for the team” by reducing fleet size. Its current fleet of 750 ships includes 400 chartered vessels – i.e., it doesn’t own them. Maersk will not start returning them to their ...

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What Is The Cost Of Freight Uncertainty?

Farmers claim that the lack of reliability of the U.S. waterway system causes a 14% reduction in the prices they get for their grain. This uncertainty, driven by a lock system that is older than its planned 50-year life span, is very real. When a ...

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Union Math: 104 People Can Impose Their Will On 3000…

Micro unions: Consider this: 178 workers in Boeing’s Charleston operation were asked to… Micro unions: Consider this: 178 workers in Boeing’s Charleston operation were asked to vote to form a “Micro Union”. Such a union is permissible because “they ...

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Oil Price Tumbles But Don’t Expect To See That At The Pump

One word from Saudi Arabia and the price of oil comes down fast even as Iran and Venezuela stumble. (See Graph from Noon Tuesday) Iran is on the cusp of punishing sanctions Venezuela – which sits on the world’s largest oil reserves – may not like ...

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Artificial Intelligence

Last week the Gartner conference highlighted… Last week the Gartner conference highlighted the digital revolution. While many presentations highlighted somewhat nebulous things – “where the rubber meets the sky” – one, Aera Technology, caught my ...

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Predicting Oil Prices Is A Mug’s Game

We often talk about labor constraints, but there are many infrastructure bottlenecks, such as in this email the last year – the aging locks on the inland waterways or pipelines under capacity. A constraint just surfaced – very large crude carriers ...

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