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According to a recent study by the Bi-State Drivers Association, the shortage of long haul and over-the-road truck drivers is getting worse. Teamster drivers, whose average age is 58, are becoming more scarce as they take early retirement from full truckload carriers. Even as the shortage grows, non-union drivers in the full-truckload sector are being lured away by unionized LTL carriers that offer higher pay and better quality of life. According to Tom Sanders, CEO of Transplace, a third party logistics provider based in Plano, TX, the issue is compounding itself as fewer young people are entering the trucking industry. This is forcing truckload carriers to increase freight rates and driver pay. Today, drivers earn approximately $45,000 per year, but some carriers are paying as high as $70,000 in order to retain experienced and qualified drivers." I'm not sure there is a pay structure out there that encourages people to want to be out on the road three to six weeks at a time. The workplace has a lot of other opportunities," he said. "There is no easy solution in sight, and that makes it tough for shippers to control their costs going forward."
Shipping lines in the eastbound trans-Pacific trade are forecasting a 10-12 percent increase in freight rates for containerized imports from Asia for the 2005 calendar year. Members of the Transpacific Stabilization Agreement, which represents 13 lines, say they expect an early spike in cargo in March 2005 as factories resume production after Chinese New Year. The lines plan to use the holiday slowdown to dry dock vessels. During the first nine months of 2004, containerized imports from Asia rose 14.4 percent. For this year, the carrier group expects that cargo volume could total 11.7 million TEUs, an increase of 30 percent from 2003 and nearly 40 percent from 2002.
In order to meet “in stock” demands of leading retailers, such as Wal-Mart, FMI has developed warehouse management technology to provide for cost optimization, daily replenishment, order accuracy and 99% in stock accuracy. The technology consists of EDI supported data transfers, hand-held scanning devices and Pick-to-Location logic. FMI recently instituted this technology with a leading wholesale children’s apparel manufacturer. The initial feedback for the past three months resulted in “in stock” levels exceeding 99%. For more info click here.
©2005 FMI International