Inside Logistics July/August 2023

Publisher | Delon Rashid (416) 459-0063 delon@turnkey.media

Editor | Emily Atkins (416) 262-4106 emily@turnkey.media

Contributing Writers | Tyler Higgins Norm Kramer, Robert Parker, Christian Sivière, Creative Director | Samantha Jackson Video / Audio Engineer | Ashley Mikalauskas, Nicholas Paddison

Sales | Delon Rashid, (416) 459-0063 delon@turnkey.media

Peter Bulmer, (585) 653-6768 peter@turnkey.media

Production and Ad-ops | Tracy Stone tracy@turnkey.media

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Stopping the strikes

AS WE GO TO press, the International Labour and Warehouse Union Canada (ILWU Canada) has ratified the four-year negotiated agreement with the British Columbia Maritime Employers Association (BCMEA) that was announced on July 30th. The BCMEA ratified the agreement on July 31st. It was reached after five months of negotiations, conciliation and mediation, and five weeks of labour instability at B.C.’s ports.

All this caused chaos on the west coast, and consternation among business groups. “In the first 13 days of job action, $9.9 billion in traded goods were affected, causing significant economic harm,” said Greater Vancouver Board of Trade president and CEO, Bridgitte Anderson.

“We are greatly concerned about the impacts the continuation of the strike will have on Canada’s international reputation as a reliable trade partner. In less than two weeks, business across Canada were facing shortages, temporary layoffs, and, in some cases, total shutdowns. The continuation of the strike will put these businesses at risk again. We need the federal government to be an active participant in finding a resolution to re-open our ports.”

Anderson’s concerns were echoed by many industry groups. Canadian Manufacturers and Exporters (CME), the Mining Association of Canada, and others weighed in, joining a chorus of calls for federal intervention.

And while there was intervention in the background, the government lacks the tools it needs to cut such disruptions short.

CME, for one, has asked the feds to work with industry on legislative reforms that will discourage future disruptions to Canada’s critical trade infrastructure. They want ports, rail lines, and all other transportation infrastructure designated as essential, limiting when and where labour and other disruptions can occur.

“If we do not seriously address the root problems of Canada’s transportation network disruptions, and eliminate the incentives to time and game labour disruptions to inflict maximum economic pain, then it will just continue to be Groundhog Day – where every six months a disruption occurs, and manufacturers and Canadians are left to pay the economic costs,” said Dennis Darby, CME president and CEO.

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He is right, there needs to be legislation that will prevent these disruptions from occurring at our critical gateways. The Canadian economy and our reputation as a trading partner are at stake.

New algorithm can find safest route for city deliveries

UBC researchers use crash data to develop safe routing

By Emily Atkins

MOST NAVIGATION APPS can show you the fastest possible route to your destination and some can even suggest an eco-friendly route calculated to produce the lowest amount of carbon emissions. But what if they could also map the safest route with the lowest possible risk of a crash?

A new algorithm developed by University of British Columbia researchers could make this a reality. Led by Tarek Sayed, a professor in the UBC department of civil engineering, and PhD student Tarek Ghoul, the group developed a new approach which identifies the safest possible route in an urban network using real-time crash risk data, and can be incorporated into navigation apps such as Google Maps.

To conduct their research, the team used data from 10 drones hovering over downtown Athens, Greece, over multiple days. The drones recorded factors including vehicle position, speed and acceleration. They used this information to identify near-misses between vehicles and then predicted the risk of crashes in real-time.

Bringing Discipline, Structure and Visibility

Supply

“This research is the first to use real-time crash risk data to provide navigation directions and give you the safest possible driving route through a city,” said Sayed.

“The algorithm is capable of adjusting directions in real-time, suggesting detours to avoid hazardous locations. This helps enhance road safety for all users. For instance, companies will be able to route their fleet efficiently, prioritizing safety and reducing crash risk.”

FASTEST ROUTE NOT ALWAYS SAFEST

The study also found that the fastest routes are not always the safest. For example, the team analyzed a small section of Athens’s urban road network, and found only 23 percent of the fastest routes were also considered to be the safest routes. On average, the safest route used 54 percent of the roads used in the fastest route. This indicates that road users should consider a mix of safety and efficiency when choosing directions, Ghoul explained.

“In the network we looked at, there was a clear trade-off between safety and mobility: The safest route tended to be 22 percent safer than the fastest route, while the fastest route was only 11 percent faster than the safest route. This suggests that there are considerable gains in safety on the safest routes with just a small increase in travel time. As well, intermediate routes, which

consider both safety and mobility, would yield larger safety benefits that would by far outweigh the increased travel time,” he said.

CONNECTED CITIES

The researchers are currently extending their research into other cities, including Boston, where autonomous vehicles being tested produce not only information about themselves and their navigation, but also about traffic routes and crash risk.

“If an urban road network has access to new technologies such as autonomous vehicle data, cameras and other sensing technologies, new possibilities open up for real-time safety measurement and effective routing,” Sayed said.

“These technologies are now generating unprecedented amounts of data, giving rise to new smart mobility applications in the future.”

The algorithm could also be used for bike routing, with cyclists and pedestrians being some of the most vulnerable users of road networks. “Including pedestrian and cyclist data in future algorithms or navigation tools will allow us to improve their safety significantly,” Sayed added.

It’s important to use real-time crash risk data in any crash prediction or safety optimization algorithm, he noted, in order to reflect current conditions, provide more accurate crash risk estimates, and reduce the number of road collisions. Using this data and advanced modelling techniques allows a safer route algorithm that helps road users prioritize safety without compromising efficiency.

Awards programs taking entries

TWO LOGISTICS AWARDS programs have opened their entry portals.

Entries are being accepted for the International Intralogistics and Forklift Truck of the Year (IFOY) Award until October 30, 2023. Toyota Material Handling is accepting applications for the Toyota Logistic Design Competition 2024 until December 18, 2023. For the IFOY awards, intralogistics companies worldwide can apply to be considered with their new products and projects. Forklift trucks and warehouse technology equipment, as well as custom-built special vehicles, are welcome to enter the competition. Applications can be submitted at www.ifoy.org.

Eleven categories covering all areas of intralogistics are up for voting in the twelfth edition of the award for 2024. Automated and autonomous industrial trucks, stationary and mobile robots, software and outstanding technical details or components, such as ergonomic innovations, safety solutions or warehouse aids, are now the largest IFOY group of applicants. Awards are also given for successfully implemented integrated warehouse and automation projects at customer sites. A separate IFOY award will be presented to start-up companies.

In the Toyota contest, undergraduate and graduate students enrolled in university programs from around the world are invited to participate in the competition by submitting ground-breaking inventions and solutions to improve the circular economy through logistics.

A panel of professionals working around design and innovation within Toyota will evaluate all entries and determine the finalists. The winner in each category of the competition will receive a cash prize. The winner and finalists’ submissions will be displayed during Milano Design Week and at the 2024 Paris Olympics Paralympic Event. More information is available at: https:// tldc.toyota-forklifts.eu/

The IFOY award

Insurer warns of enclosed space dangers

CONFINED OR ENCLOSED spaces are common in the supply chain industry. Insurer TT Club is reminding supply chain operators to take precautions when workers need to enter such spaces.

Confined areas exist across all freight modes, from tank containers to cargo hold stairwells and holds, to road tankers and sealed cargo units. A lack of understanding of the danger may have fatal consequences.

Reduced oxygen levels result from the increased presence of other gases, such as carbon dioxide. This may arise from rusting of a ship’s structure or metal cargo, oxidation of cargo such as coal, or the decomposition of biodegradable cargo, for example fish meal, logs, bark, or wood pellets. Other associated hazards include flammable or toxic vapours from leaking cargo or leaking pipes or hoses.

A lack of awareness of these, often hidden dangers is surprisingly high, said Peregrine Storrs-Fox, risk management director at insurer TT Club. “The key risk is that workers may not readily recognize spaces that could present danger,” he said.

“The cargo hold of a ship is a leading example, but containers and other cargo transport units pose similar risks; there may be a lack of knowledge of the cargo packed or whether fumigants have been used. Similarly, tanks units, whether a road barrel or tank container, certainly qualify as enclosed spaces.”

When entering a lethal space, there are no warning signs such as coughing or feeling breathless or nauseous. An individual can pass out without having the opportunity to raise an alarm or escape. The speed with which the effects of oxygen depletion can become debilitating means managers need to regularly remind workers to ensure they understand the risks.

The quick onset and catastrophic nature of these symptoms often leads to others rushing to the aid of the casualty, unaware of the reason for their collapse. Statistically, over 60 percent of fatalities connected to confined and enclosed spaces are suffered by would be rescuers.

“The silent and invisible nature of this killer emphasizes the importance of raising awareness of the risk,” stressed Storrs-Fox.

“Developing and undertaking drills to practice rescues are crucial steps in mitigating the risks, as are a number of other strategies including risk assessments of working in potentially hazardous spaces, discouraging short cuts in work practices and testing, monitoring and venting air in confined areas.”

While not exhaustive, TT has developed a checklist of risk mitigation strategies that can be applied across all modes, whether on land or at sea. It can be downloaded from https://tinyurl.com/IL-confined.

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Warehouse construction decline leads to drop in robot sales

THERE HAS BEEN a 25 percent decline in new warehouse building starts in North America and Europe in 2023.

According to new research from Interact Analysis, the drop in warehouse construction is having a knock-on effect on demand for end-to-end automation projects.

However, the slowdown is expected to be short-lived and warehouse construction is predicted to pick up again by 2025.

The slowdown in e-commerce growth has had a direct impact on the demand for automation from the grocery, apparel and general merchandise segments. Traditionally, these have been the fastest growing segments, while vertical markets upstream in the supply chain, such as manufacturing, have experienced slightly slower growth.

“The market for fixed and mobile automation is certainly a dynamic one. While demand for end-to-end automation has decreased, demand for mobile robots continues to rise,” said Rowan Stott, research analyst at Interact Analysis.

“This is because many companies are reluctant to spend on large automation projects due to rising inflation, so mobile robots offer the ability to automate some of their processes at a more affordable cost. As a result of the changes that we have made to our forecasts we predict the total market size for warehouse automation (includ-

ing mobile robots) will be six percent lower in 2027 than initially predicted in our forecast last year.”

movers + shakers

Trailcon Leasing, Inc, has appointed Stacey Sarris as vice-president of marketing and client success. Bringing over two decades of expertise in marketing and branding, Sarris has led the strategic vision of successful omni-channel marketing for a diverse group of brands, including Microsoft, LG, The Weather Network, Canadian Tire, Sony and Ryder.

Kinaxis Inc. has appointed Margaret Franco as chief marketing officer. She will be based in London, UK. Franco was previously chief marketing officer at Finastra and before that held senior marketing roles in North America, Europe and Asia at Dell during a 13-year tenure. In 2022, Franco was ranked fourth on the Financial Technology Report Top 25 Women Leaders in Financial Technology.

Sébastien Martel is joining the board of directors of TFI International Inc. Martel was previously the chief financial officer of BRP Inc. He was with

BRP for nearly 20 years, serving as CFO since 2014. A registered CPA, Martel holds a bachelor degree in accountancy from McGill University.

DP World has appointed Douglas Smith as CEO of its operations in Canada. Smith replaces Maksim Mihic, who will be assuming a new role as senior vice-president, global operations and engineering, ports and terminals for DP World in Dubai, UAE. Smith brings almost 30 years of industry expertise. He began his career with Sealand Service, Inc, and has held key positions at Maersk, APM Terminals, and Global Ports Management. Most recently, he served as joint president and CEO of Mundra and Tuna Ports at Adani Ports and Special Economic Zone in Mundra, India. Smith holds an MBA in Global Management from the University of Phoenix.

ADM Aéroports de Montréal has appointed Aymeric Dussart as vice-president, finance and administration and chief financial officer. Dussart

has been with ADM for more than 11 years. He has served as vice-president, technology and innovation since January 2020. Before ADM, Dussart worked for Hydro-Québec, where he was responsible for systems supporting electricity brokerage activities. Dussart earned a master’s degree in economics from the Université de Montréal and a master’s degree in information technology from HEC Montréal. Dussart succeeds Ginette Maillé, who is retiring after leading ADM’s finance and administration team for the past six years. Maillé will leave the organization at the end of the year.

Baltej Dhillon has been appointed chair of WorkSafeBC’s board of directors for a three-year term. Dhillon has been a member of WorkSafeBC’s board of directors since 2017. He replaces the outgoing chair, Jeff Parr, who served from August 2020 to June 2023. Dhillon was a police officer for more than three decades, working in intelligence, special enforcement, protective services and investigations.

60 YEARS OF EXCELLENCE

Landoll’s business is built on quality and family values

Fortruck manufacturer Landoll is celebrating is 60th year in business in 2023, and the Kansas-based company has a lot to celebrate.

It’s been six decades of dedication, diversification and attention to quality that have put the manufacturer at the forefront of North-American made material handling products. The company makes Landoll, Drexel and Bendi forklifts and equipment, along with numerous other product lines.

Founder Don Landoll remains active in the day-to-day operations of the company. He took a little time out to talk with us about his vision and secrets for success.

Coming from a farming family, where hard work was the key to survival, Landoll got started in business straight out of high school, where he had successfully designed a trailer that got him his start in the world of fabrication. He initially worked for a company that built playground and agricultural equipment, but quickly moved on to buy a welding shop in 1963.

Landoll says his farming background gave him a natural affinity for vertically integrated

operations. “We took what we had and made something out of it, from the ground up,” he recounts.

He applied those lessons in every area, from making trailers, to farming products, to de-icing equipment for airports, which led to government contracts. It was in 1993 that the company got into the forktruck business. Initially starting out making narrow-aisle lift trucks for U.K.-based Bendi for the North American market, Landoll redesigned the forklift, making it better, and ended up buying the manufacturing rights. The company added the Drexel line of swing mast forktrucks in 2003.

The English manufacturer was making narrow-aisle forktrucks, something that was unheard of in North America, thanks to the surplus of available space on this side of the pond. But all that has changed now with the price of land and warehouse space through the roof. Businesses are flocking to adopt narrow aisle forktrucks that will let them increase capacity by 30 to 40 percent. This originally niche product has now made Landoll a home-grown success story.

Don Landoll

“I’ve always gone for unique products, you know, products that didn’t have numbers that the big boys really wanted to be in,” Landoll says. “It’s worked for us.”

Using vertically integrated production methods means the company has control over manufacturing from design through to the finished product. Making high-quality, durable products has always been key. Landoll stresses that this sets his company’s products apart. “We’ve been unique from day one,” he says.

The company is unique in more ways than one. Just ask long-term employees, like Shawn Rose, who manages operations. He’s been with Landoll since 1989.

“If you take care of what needs to be taken care on a daily basis, Don always finds a way to move you up in the company,” Rose says. “I started out as a quality control inspector trainee. Within two years I was a lead person and had two other inspectors reporting to me. Through my whole career, about every four or five years, I got an opportunity to move up within the company.”

Rose is not alone: Out of 870 employees, Landoll currently has 110 with more than 25 years of seniority. Landoll says he believes in treating people like family and rewarding hard work.

“I’ve always taken care of our people. We’ve been in business 60 years and never had an organized labour vote,” he says. Landoll adds that the company recognizes employees with profit sharing, gas subsidies for those with long commutes and other help when someone is in need.

An anecdote shared by the company’s sales manager, Al Connelly, illustrates both Landoll’s care for employees and his ingenuity. A worker was in a machine-tending role. Her job was to repeatedly pull a lever – all day long – to punch a hole.

“Don was walking the floor – he always walks the floor – and he saw that this one person was just constantly just pulling that lever,” Connelly recounts. Landoll went home and spent the night working on an idea, the story goes. When the woman came in for her next shift, all she had to do was tap her foot to create the same effect. “He totally re-engineered something, just to make her life, or her job, a little easier.

Landoll’s generosity extends beyond the company’s walls, well into the community. Landoll is a strong community supporter with dozens of charitable projects to his credit. From hospitals to airports and churches to schools, the Landoll company has donated generously to help develop the communities it works in. Landoll and his brother, both pilots, have flown numerous medical evacuation flights over the years to get people in their community to the care they need. And recently, the company took over a bowling alley near its headquarters and runs it as a community service.

While Don Landoll is very much involved in the day-to day operation of the company, two of his children, Phil and Paula, are gradually taking over the reins. Keeping it in the family is part of the plan, Landoll says, as is continuing innovation.

A move into the Canadian market will open new opportunities, while product enhancements will always be rolling off the line. “We’re doing our best to continue as we have, producing high-quality products, and always looking for new opportunities,” Landoll concludes.

Established: 1963

HQ: Marysville, Kansas

Locations: Beloit, KS / Waterville, KS / Brillion, WI.

Employees: 870

Business lines:

▶ Material handling equipment – Bendi, Drexel, Landoll

▶ Agricultural equipment

▶ Trailers

▶ OEM/Government

Production: 1,000,000+ square-foot factory using robotics and modern manufacturing technologies

Area served: US, Canada and 48 more countries

PT40- Precision Telehandler made at Landoll

VNA Forktruck - SLT30 Drexel

FIXING MANUFACTURING SUPPLY CHAINS

Here’s the issue with the problems facing our manufacturing supply chains: Too often, we talk about them in isolation.

Inventory management problems are distinct from poor contingency planning. Supply chain visibility is a different challenge than finding reliable suppliers. And logistical challenges are varied and many. These are all fundamentally different things.

But they’re so interconnected we can only truly address them in an integrated, holistic way. The global manufacturing supply chain is a single, integrated ecosystem of trade that requires an all-hands approach if it’s to operate efficiently and fluidly. Technology is a critical part of the solution.

But technology is just where it starts. Ultimately, suppliers, manufacturers, and customers all must commit to ongoing communication and collaboration for the manufacturing supply chain to operate as we all want it to.

Let’s look at each of the five most common manufacturing supply chain challenges in turn, before we explore the path forward.

Supplier reliability

In recent years, concerns about political instability around the globe have led both North American and Western European countries (among others) to embrace nearshoring.

This has served to shrink the length of supply chains. Nearshoring makes it more likely we can address some of our stickiest supply chain issues. But as we’ll see, it alone is no guarantee of success.

Supply chain visibility

Supply chain visibility problems compound all the other issues you might be facing. Without an effective view of where your shipments are in the world – which carrier they’re with, what delays they’re facing, their expected arrival times, and what it all means for your inventory – it makes it next to impossible to address all your other common challenges.

This means that a manufacturer without visibility into its supply chain may lose control of its operations and, ultimately, fail.

The company may be able to stagger along for a while, but the challenges are too great in our current environment to fly blind. That’s how important supply chain visibility is in 2023.

Happily, the solution here is relatively simple: technology. And manufacturers don’t need to go in it alone when it comes to supply chain visibility technology either. They can now work with an end-to-end service provider, which will give them insight into their supply chain.

Poor inventory management

Without the right software, effective inventory management is becoming increasingly impossible. Large companies already know this. However, there are still some smaller and medium size companies which still prefer to have people with pads and paper walking around a warehouse doing inventory instead of investing in a technology solution.

But that won’t be sustainable much longer. With a move away from push-to-pull distribution, and the mainstreaming of a just-in-time approach to inventory, there simply isn’t enough slack in the system to effectively control inventory with an old-school approach.

The problem for small and medium size companies is usually cost (the relevant software is perceived as too expensive), complication (the software requires various workarounds to be effective) or culture (they’ve always managed inventory by hand), but those challenges will increasingly pale in

comparison to the competitive disadvantage of poor inventory management.

That’s a couple of challenges now that can be partly or fully addressed by technology. But of course, in global trade, software alone won’t fix what ails us.

Logistical challenges

Logistical problems will never go away. Anyone in manufacturing will tell you that. Freight is routed and rerouted millions of times around the globe every single day due to equipment availability issues, mechanical problems, bottlenecks at ports and on roads and rail, weather-related events, political unrest, and dozens of other challenges.

The sheer scope of a typical manufacturer’s supply chain – even one that’s been nearshored and optimized with the latest technology – creates significant opportunities for something to go wrong.

Which leads us to the next big issue. What happens when something does go wrong?

Contingency planning

It’s fair to argue that the global supply chain has not optimized its ability to plan for contingencies. This is also true of individual companies.

This is intuitive when you think about everything we’ve discussed in this article up until now. If a manufacturer doesn’t have visibility into its supply chain, how can it effectively plan for logistical challenges? And if that same manufacturer has a supplier reliability issue, that will only be compounded by poor inventory management.

While any single manufacturer can address some of these issues by implementing technology or seeking out reliable logistics providers, this is a system-level problem that requires a system-level solution.

There’s no single silver bullet to solve this. We see supply chains from every angle. Our footprint covers ports and terminals, and we’re making massive investments in innovative technology. But without our partnerships with the other players in the supply chain, without their commitment and collaboration, even an organization as large as ours can’t drive all the changes we need to make.

ROBERT PARKER is director of logistics at DP World Canada

SUPERL A TIV E CARRIERS

The 2023 Shipper’s Choice Awards are presented to the carriers who surpass the industry’s benchmarks of excellence according to our annual survey of transportation buyers.

EXPLAINING the scores

The annual Shipper’s Choice Awards measure how well carriers perform against our Benchmarks of Excellence. The scores are established by shippers, 3PL service providers, and freight forwarders from across Canada in our annual survey.

These transportation buyers rate each of their top three carriers on a five-point scale against six key per formance indicators, and use another five-point scale to rate the importance of the key performance indica tors themselves. The weighted rankings are determined by multiplying the two numbers together. These weighted

IMPORTANCE OF PERFORMANCE CRITERIA

rankings are then compared to the Benchmarks of Excellence, which represent averages of the weighted scores for each category’s key performance indicators.

Twenty seven carriers met or exceeded the benchmarks established for the 2022 awards. Six companies earned the coveted Carrier of Choice designations because they have scored above the benchmarks for at least five years in a row (see page 27).

EXPLAINING THE SCORES

WHO ANSWERED THE SURVEY

20.3% OTHER Respondents’ Industry Sector

8.7% FREIGHT FORWARDING

36.1% 14.5% RETAIL

53.4%

310 respondents answered the survey

The methodology

SHIPPER SATISFACTION RATINGS BY MODE MODE On-time performance Q uality of equipment & operations In formation technology C ompetitive pricing Customer service L eadership in problem solving score LTL TRUCKING 20.03 18.76 17.34 19.28 20.09 18.75 114.260 TL TRUCKING 19.59 18.83 16.31 19.01 19.78 17.95 111.479 AIR CARRIERS 18.18 17.42 16.00 16.19 16.08 14.82 98.683 OCEAN CARRIERS 17.76 17.66 16.72 17.96 16.93 16.17 103.204 RAIL CARRIERS 15.06 15.32 14.65 15.63 14.52 14.18 89.362 COURIERS 19.37 17.31 17.05 17.82 17.07 15.52 104.139 TRANSPORTATION AND WAREHOUSING BUDGETS BUDGET PERCENT OF RESPONDENTS WHO SPEND THIS MUCH ON TRANSPORTATION PERCENT OF RESPONDENTS WHO SPEND THIS MUCH ON WAREHOUSING Less than $100k 21.6 22.1 $100k to <$500k 24.1 22.9 $500k to <$1M 12.1 1 7.9 $1M to <$5M 17.7 17.1 $5M to $10M 7.4 4.3 $10M to <$25M 8.2 5.7 $25M or more 8.9 10

This year 310 respondents – buyers of transportation services, and those who manage shipments handled by freight forwarders or 3PL providers – completed our survey.

To qualify, carriers need to receive a minimum number of evaluations. To prevent tampering, we watch for multiple submissions by known respondents; look for similar IP addresses; and if carriers have invited customers to submit scores, we compare those email addresses to our own database. The Shipper’s Choice Awards Survey is undertaken through a continuing partnership with CITT and the Freight Management Association of Canada (FMA), and conducted by an independent research firm.

TL WINNERS

he TL mode has historically been the toughest for carriers to score above the Benchmark of Excellence. Shippers surveyed this year valued on-time performance as the most important benchmark for truckload carriers. Customer service was close behind, followed by competitive pricing. Information technology was the least important for this year’s respondents.

Five TL carriers surpassed the Benchmark of Excellence this year.

LTL WINNERS

Managing so many different shipments sharing space on one trailer and touchpoints between terminals makes the LTL business complicated. Demands from buyers of LTL services are high and carriers have to navigate a tightrope between providing excellent customer service while keeping prices competitive. This year’s survey found LTL carriers had the highest benchmark for on-time performance. Customer service was second highest, followed by leadership in problem solving. Unllike last year, pricing is less important, likely due to excess capacity. Five LTL carriers surpassed the Benchmark of Excellence.

For the 15th consecutive year, Cardinal has been recognized for the Shipper’s Choice Award and 10 years in a row

Choice.

Without your loyalty and appreciation over the years, Cardinal would not be where we are today. Now more than ever, your devotion to our business has never been more valued; and this award could not have been won without you.

O CEAN WINNERS B

uyers of ocean freight services have traditionally been very price sensitive, but this year it’s on-time performance that shippers are most concerned about. Competitive pricing was the second-most important KPI in 2023. Eight ocean carriers surpassed the Benchmark of Excellence this year.

Moving what Matters

For over 100 years, Oceanex has been providing efficient and reliable intermodal transportation services safely and with environmental leadership. With our fleet of 3 vessels and the largest dedicated fleet of containers and trailers servicing the province of Newfoundland and Labrador, we keep retail shelves stocked and deliver the materials that build and support our communities, keeping the economic engines of the province running.

Project Cargo

Experienced professionals, dedicated technology

Oceanex Global Logistics

To and From Anywhere. Oceanex can help you move what matters.

PROUD TO BE THE SHIPPER’S CHOICE FOR LTL

For over 25 years, GX Transport has been supporting our clients with seamless LTL, truckload and dedicated services across Canada and the USA. Based on their positive feedback, we have received the Shipper’s Choice Award for delivering an exceptional quality of service that surpasses industry standards.

COURIER WINNERS

Buyers of courier services have high expectations when it comes to shipment tracking and speed of delivery, so it’s no surprise this mode had the highest benchmark of any mode for information technology. On-time performance was the highest benchmark for the mode. Five courier companies made the benchmark this year.

AIR FREIGHT WINNERS

Buyers of air freight services have particularly high expectations when it comes to on-time performance, making it the most important KPI we measured this year. For air carriers customer service was deemed the second most important. Two air freight carriers surpassed the Benchmark of Excellence this year.

CARRIERS OF CHOICE

Carriers are presented with this prestigious award if they have demonstrated the consistency necessary to attain the highest levels of service by surpassing the industry Benchmarks of Excellence for a minimum of five consecutive years. This is a particularly difficult task. Aside from having to maintain consistent excellence in their operations, carriers have to meet a standard that rises every year, while also responding to changing priorities. To remain part of this exclusive fraternity, carriers must requalify each year.

Congratulations to the 2023 Carriers of Choice!

RAIL WINNERS

Pricing tops rail shippers’ priorities this year, but this is closely followed by on-time performance and customer service. Rail has the lowest benchmark score of all modes this year, and only two carriers have surpassed it.

HOW TO ENHANCE VALUE IN YOUR SUPPLY CHAIN

Strategies to reduce costs, enhance efficiency and strengthen partnerships

FOR THOSE SEEKING to gain a competitive advantage within transportation, the time is now to lock in value for the rest of this year or, as the saying goes, forever hold your peace.

But buyers beware – it is not as simple as just taking advantage of the current market and playing hardball with your carriers. The focus instead should be on realizing financial value in key areas of your supply chain while also strengthening relationships with transportation partners.

Everyone knows shipping and trucking prices have fallen dramatically over the past year in our post-pandemic world. Long gone are skyrocketing shipping costs, as well as headlines about supply chain disruptions and images of container ships queued in the Pacific Ocean near the ports.

The reality these days is that the U.S. economy has been uneven. Due to rising interest rates and stubbornly elevated inflation, most experts predict the economy will continue to cool for the rest of the year, or even slide into a recession.

“Freight recession”

A few factors are at play. Inflation remains high and consumers are pulling back on spending, and retailers are working through excess inventories. Softening consumer demand is also hurting B2B and industrial companies, which is translating into lower freight volumes.

The trucking industry, not surprisingly, is getting hammered. J.B. Hunt Transport Services president Shelley Simpson said on an analyst call, “We’re in a challenging freight environment where there is deflationary price pressure for an industry that continues to face inflationary cost pressures. Simply stated, we’re in a freight recession.”

As the economy decelerates, organizations have set ambitious savings goals. From Fortune 500 corporations to the many small- and medium-sized companies with which you likely do business, many have a cost-saving target.

While a large percentage of businesses are relying on layoffs or similar corporate restructuring to achieve savings goals, there are other options. Many businesses can see an immediate impact on their supply chain-related spending by focusing more on alternative strategies.

Improve rate management

Just because the overall spot market has dropped does not mean that your rates have kept pace with that decline. Pricing for companies with dedicated transportation fleets have negotiated lower rates with carriers, but those in brokered relationships – and the entire sea freight market beyond contracted rates – have huge opportunities to realize substantial cost savings.

A few words of caution when it comes to rate negotiations. Right now, there is a race to the bottom in terms of pricing, and capacity is available.

But that does not mean you should put the squeeze on your transportation provider. You need a positive working relationship with them. Treat them like a partner, because at some point you will face a shipping emergency or need a favour, and that goodwill will come in handy.

Rethink your network

Consumer behaviour has changed, e-commerce has changed and buying patterns have changed. As a result, organizations have had to rethink their network and transportation structure. During the pandemic, many organizations added distribution centres to support more locations. But with transportation rates rapidly falling, that may not be the only way to reduce shipping costs.

The smarter option is to improve forecasting throughout your supply chain. During and shortly after the pandemic, demand forecasting was, at best, a wild guess as spot rates fluctuated significantly. While economic forecasts are across the board, spot market prices

are much less volatile, and that will help you better forecast prices, transportation volumes and demand.

Optimize your backhaul

Backhaul represents another big opportunity to reduce costs in both dedicated and roundtrip transportation. Deadhead mileage is a major contributor to reduced transportation efficiency and profitability. The American Transport Research Institute trade group estimates that about 15 percent of non-tanker carrier miles were deadhead.

Backhaul efficiency was less of a priority when supply chains were disrupted. With demand stabilizing, now is the time to revisit deadhead trips to extract additional cost savings.

Revisit demand planning

If you are not already using or testing artificial intelligence and machine learning tools, then start now. Yes, AI is all the rage, but there is a reason. AI applications are now more affordable and easier to integrate into enterprise-level business intelligence platforms.

The technology can help improve forecasting and decision-making to let you deliver immediate value by enhancing transportation efficiency and reducing supply chain costs. The technology is so compelling that WalMart is now using it to negotiate deals with suppliers.

One of the underlying themes in these strategies is that they do not negatively affect your service quality and your expected delivery times across your network. These strategies allow you to reduce costs, improve efficiency, and cement and strengthen relationships with your transportation partners. Every day that is wasted by not finding and implementing new ideas is a lost opportunity to improve your bottom line.

Tyler Higgins is a managing director at global management and technology consulting firm AArete, where he leads the strategic profitability improvement group.

OUR AUTOMOTIVE SUPPLY CHAIN

Is it in full gear, neutral or reverse?

THE AUTOMOTIVE INDUSTRY is one of Canada’s largest industrial sectors, accounting for 10% of manufacturing GDP and 21% of manufacturing trade. It is our second largest export, after energy products. About 1.4 million vehicles are assembled at the Canadian plants of Ford, GM, Honda, Stellantis and Toyota every year, with parts manufacturers located across the country.

The “Auto Pact” of 1965 sealed our first trade agreement with the US and created the modern Canadian auto industry. It started the integration of North American Supply chains, which culminated in 1994 with NAFTA, when Mexico joined the Free Trade Agreement.

The industry has gone through ups and downs, with automation and increased competition from lower-wage regions leading to plant closures and job losses in Canada over the past decade.

Several auto companies, including the US majors, invested in Mexico, gradually moving some production lines there. CUSMA (USMCA in the US) implemented in July 2020, aimed to rectify this, with increased North American content (from 62.5 percent to 75 percent for automobiles), and new minimum wage requirements of US$16/hour.

These were generally felt to benefit Canada. As these provisions were phased in over three years, we should be able to measure their impact on Canadian production next year, as well as on the global competitiveness of the North American automobile sector.

The industry has been heavily affected by the pandemic and resulting supply chain disruptions. Border closures, factory lockdowns, microchip shortages and labour challenges led to a decline in vehicle manufacturing in 2020. The Canadian automotive industry has not yet fully recovered. Consumer spending on new vehicles remains below pre-pandemic levels.

The light at the end of the tunnel could come from electricity, thanks to investments in the production of electric vehicles and particularly

christian.siviere@videotron.ca

batteries. Competition for incentives started south of the border, when the US government announced up to US$7,500 in tax credits for consumers purchasing an electric vehicle, part of President Biden’s Inflation Reduction Act.

Originally, this applied only to vehicles made in the US. Following intense lobbying from Canada and Mexico, the measure was modified and now applies to vehicles made in North America instead. This incentive may be contrary to World Trade Organization rules but that’s another issue, as the WTO is already very busy elsewhere.

In Canada, the incentives “race” began when Volkswagen announced the building of its first battery cell manufacturing facility in North America in St Thomas, Ontario. It is VW’s third one, following Salzgitter, Germany, and Valencia, Spain. Production is expected to start there in 2027.

Stellantis had announced a CA$5billion investment in a battery manufacturing plant in Windsor last year. VW got a hefty CA$16.3

billion in public money, more than double the estimated cost of construction, while Stellantis, seeing how generous we are, is now getting C$15 billion in production incentives.

According to our politicians, this is good for our green agenda. Electric vehicles are popular, as they are considered key to the decarbonization of our economy. The necessity of decarbonizing applies to businesses operating in all sectors but it’s often associated with energy generation and transportation.

But is all this reasonable? And are EV’s going to be the panacea to save the planet? I seriously doubt it, and am afraid all this hoopla is counter-productive.

Making batteries requires intense mining of nickel and other critical minerals. Is making more holes in the ground good for the planet?

I feel what is needed instead is to change our consumption habits. If all vehicles on the road were electric, the power grid wouldn’t be able to handle it. And driving one of these huge pick-up trucks (the best-selling vehicles in both Canada and the U.S.) is more damaging to the environment – even if they are electric – than is driving a small gas-powered sedan.

Another aspect often overlooked is that lot of electricity is still produced by coal-fired plants. My feeling is that, in order to save the planet, we will need to consume less, become more conscious of the environmental impact of our purchases, have fewer vehicles on the road and use more public transit.

A recent study published by Desrosiers Consultants also shows we are heading in the wrong direction. During the first half of 2023, new vehicles sales were up 7.6 percent in Canada, which is good news for the industry. However, sales of large SUVs were up 37.3 percent, while sales of sub-compacts were down 27.3 percent. Canadians want to drive larger vehicles.

This is not good for the planet and the current rapid switch to electric vehicles is not going to cut it. Electric or not, we need to drive smaller vehicles and drive less.

CHRISTIAN SIVIÈRE runs Solimpex, and is an international trade consultant and lecturer.

real- time visibilty

CITT’s annual Canada Logistics Conference was held this year in Saskatoon. The annual event brings together the logistics community – both shippers and carriers – for three days of learning and networking.  Next year’s CITT conference takes place in Halifax, June 5-7, 2024.

CITT’S TORONTO AREA COUNCIL HOSTED ITS ANNUAL GOLF TOURNAMENT EARLIER THIS SUMMER

Sheryl Meens, SCL Search; Lucille Thiele; Denise Ponte, Uber Freight; George Beck; Bonnie Parkinson, XTL

Luca Torresan, Uber Freight, and Horatio

L-R: Rick Robillard, George Beck, Shawn Winter

L-R: Zaid Alatrash; Claudio DiLaurenzio; Andrew Dolphine; Duane Chiasson; Horatio; Luca Torresan;  Armando Sousa; Mitch Peck; Brent Hudspeth; Hugh

Joel MacKay, Mactrans Logistics and Guest

Noah Sidenberg, Arrive Logistics; Delon Rashid, Inside Logistics; Amy Charette, TPG Mgmt; Beverley Baker, IKO

TIPS FOR MINIMIZING THREE COMMON MSD RISK FACTORS

Warehouses

A WHILE BACK, I was experiencing discomfort in my wrist at home, but the cause wasn’t obvious to me. After three months of progressive pain, I thought about the tasks I was doing, and the risk factors I was exposed to, such as force, awkward posture and repetition.

I realized I had been bending my wrist awkwardly three times a day while closing the lid of a large pet food container. This seemingly innocuous task was stressing the soft tissues in my wrist. I found a way to close the container keeping my wrist straight, and the pain went away within days.

While my discomfort was relatively easy to solve, the process of resolving a musculoskeletal disorder (MSD) at work after the fact is much more complicated, especially in warehouses and distribution centres where a host of risk factors are at play. MSDs cost your workplace in terms of time off, higher insurance costs, lower morale, staff shortages, and much more. Avoiding these costly injuries means eliminating or reducing risk factors before they cause MSDs. The best approach is to have a professional ergonomist carry out an ergonomics assessment to identify risks and recommend control measures. But you can also take steps on your own to reduce these three not-so-obvious risk factors in warehouse and distribution workplaces.

1. Twisting while operating a lift truck in reverse. Operators will drive in reverse if a high load on their forks is obstructing their vision. In order to look in the direction of travel, as recommended by CSA B335 Safety Standard for Lift Trucks, drivers in a seated position, usually twist their neck and/or body repeatedly, which may lead to discomfort or pain. Here are ways to mitigate this risk:

▶ Keep the pallet at a height that allows the operator to travel in a forward direction

and maintain good visibility over the load

▶ install swivel seats

▶ shift hips as needed, to reduce twisting as much as possible

▶ use mobile equipment, such as a standup forklift or electric rider pallet jack, which allows the operator to stand and turn their feet instead of their body

▶ use mobile equipment with a rotating operator compartment

▶ use a spotter to guide the operator

2. Experiencing whole-body vibration when driving over dock levellers. ‘Dock shock’ refers to the constant jolting and jarring that occurs when a forklift or stand-up walkie crosses from the warehouse floor over the bumps and gaps of a traditional dock leveler. As a result, operators experience whole body vibration, which can lead to serious back and neck injuries. Here are a few ideas for reducing this risk:

▶ Invest in quality mobile equipment with shock absorbing seats

▶ train operators to reduce speed when travelling over dock levellers to lessen vibration

▶ establish mandatory work breaks for operators, to give soft tissues in the neck and shoulders a chance to rest

▶ perform regular maintenance on your dock that includes assessing the severity of dock shock

▶ purchase dock levellers designed to minimize dock shock,

creating a smooth transition between the warehouse floor and truck or trailer bed.

3. Using awkward postures when repeatedly lifting onto and off pallets. Unfortunately, the advice to lift with your legs and keep your back straight is not enough to protect workers. Boxes may be large and awkward to move, pallet loads may be stacked high, and loads may be packed tightly beneath lower level racking, making them hard to retrieve. Workers may be forced into awkward postures that stress the soft tissues in the legs, arms, neck, shoulder, back and hands.

What can be done? Consider implementing the following:

▶ Use conveyors to eliminate the need for lifts, where possible

▶ place heavy objects on racking, shelving or pallets between waist and shoulder height (power zone) of average worker

▶ ensure frequently retrieved items are easily accessible

▶ put handles on loads so they can be gripped easily

▶ provide safe lifting training with examples of sizes, weights and location of loads in your warehouse, with appropriate techniques for unique situations

▶ use adjustable tables or platforms to eliminate the need for workers to bend

▶ consider automating the process by applying “box lifting robots”, autonomous mobile robots or automated guided vehicles that transport loads. The application of these technologies can eliminate manual material lifting entirely.

MSD-related hazards result in high insurance and other costs in warehouse and distribution workplaces, but are often ignored. Be proactive. Don’t wait until one of your staff approaches you with a doctor’s note saying they can’t work due to a work-related soft tissue injury.

and distribution workplaces pay a high price when workers suffer musculoskeletal disorders (MSDs). Don’t overlook these key areas.

NORM KR AMER, CRSP, P.MM, provides expert, in-depth health and safety consulting services for Workplace Safety & Prevention Services (WSPS) as a Warehouse Specialist in the GTA region.

Unlock the potential of your career with Canada’s logistics certification – CCLP®

For 65 years, elite logistics professionals have set themselves apart with the CCLP designation. Take your first step to join them this fall, and start online September 5

CCLP (CITT-Certified Logistics Professional) is the one and only professional certification granted by CITT –Canada’s Logistics Association. Created by industry, for industry, CCLP develops and certifies the crucial competencies required of an elite logistics professional.

When you hold the CCLP designation, it tells the industry – from carrier across modes to shippers in all sectors – that you have an expert understanding of the complex business of logistics. And it connects to you an unparalleled network of like-minded professionals who can share expertise and open new doors.

Whether you’re looking to sharpen your abilities, advance in your current organization, unlock new opportunities, or get formal recognition for the expertise you already have, CCLP can help you achieve your career goals.

Get certified via the fully online program or the challenge exam for professionals with deep experience • Access networking events, exclusive job board, topical webinars, and other exclusive resources • Fast-tracks available for previous business education • Recognition of international education and work experience