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Public Health

Supply Chain Issues During Pandemic Become Focus of Lawmakers

October 7, 2020 by Levinson and Stefani Leave a Comment

Lawmakers have been calling for manufacturing environment boosts regarding supply chain products and equipment in an effort to decrease any potential difficulties among supply chains hindered by COVID-19.

Last month, policymakers iterated the need for a safer and more efficient manner of goods production throughout the freight sector at a House Ways and Means hearing.

Oregon Representative and chairman of the trade matters subcommittee, Earl Blumenauer said he plans to move forward a bipartisan trade and manufacturing policy effort that will aim to create more reliable supply chains.

“In the conversations that have been developing around the topic of re-examining supply chains and the relationship between trade and manufacturing at home, there has been a lot of excitement regarding tax incentives, ‘Buy American’ policies, or applying additional tariffs,” said Blumenauer at the hearing. “In our examination, let us not fixate on one particular tool to the exclusion of others.”

The key, he explained, will be a collaborative effort to create the best possible changes and upgrades.

“Meaningful solutions will require us to work together, to be thoughtful, strategic, and creative. They will require our best tools and ideas to work in concert, likely across different policy areas. Without prejudging what those specific tools may be, I am confident that trade policy is an important part of the answer.”

Throughout the pandemic, particular instances of supply chain disruptions have proven to be catastrophic–especially those of Personal Protective Equipment. PPE supply chains have been unable to meet the demand brought about by the coronavirus, especially with July’s spike in nationwide cases. Since then, the country has seen major PPE shortages, as well as shortages of important drugs like Remdesivir.

Although the Trump Administration often turns a blind eye to the shortage of supplies like these, many members of the administration, as well as congressional Democrats and Republicans, have been working to relocate some of these PPE supply chains to the U.S. This effort would require an increase in domestic production, and would align with calls to return manufacturing efforts to the country–a major focus of the Trump Administration’s economic plan.

“This pandemic has shown us how important it is for us to be medically independent and to have supply chains that are reliable and flexible, no matter how they are structured,” said Rep. Vern Buchanan of Florida. “If we want stronger and more resilient supply chains here, then this must be the best place in the world to do business. The pandemic has showcased the urgency for having vital medical products like PPE and pharmaceuticals available quickly and reliable. We cannot rely on our adversaries, like China.”

To combat the virus, the United States quickly leaned on foreign manufacturers for PPE and for masks in general. Because of China’s own outbreaks, its factories could not operate a full capacity and many American companies and factories began breaking from their usual inventory to produce face shields and masks.

Tax-writing Finance Committee chairman Chuck Grassley explained the need for large changes in how the country has operated its supply chains thus far. “We cannot allow our supply chains to rely so heavily on China,” he said, “and I look forward to working with my colleagues, on both sides of the aisle, to discuss how we can diversify our supply chains and increase our domestic manufacturing capacity.”

Other experts have studied how the pandemic has affected pricing changes within the marketplace, especially as delivery drivers and essential workers have been working overtime to meet demands.

Carnegie Mellon University professor of engineering and public policy, Erica Fuchs, discussed with House lawmakers the ways in which manufacturing could get the improvement it needs through specific infrastructure investments.

“By infrastructure, I mean not just roads, bridges, transit networks, water systems, and dams, but also [the] energy, communications, manufacturing, and data infrastructure necessary for all of those,” she explained. “In the same way that we need to build domestically the products that global markets want and only we can make, our infrastructure investments need to be for the infrastructure and the future.”

She also noted that transit infrastructure needs new designs that will allow for safe and easy implementation of smart city systems and driverless vehicles, as well as enable the necessary data infrastructure for better security and privacy.

Many Fleets Moving Quickly to Hire Furloughed Drivers During Pandemic

September 28, 2020 by Levinson and Stefani Leave a Comment

“We felt this was a great opportunity to add experienced, top talent to our fleet,” said U.S. Xpress recruiting director, Kendra Patton, of this time of pandemic.

U.S. Xpress was able to bring on more previously-furloughed drivers throughout the time of COVID-19, and is still continuing to do so–especially within the divisions of over-the-road drivers. This comes as an effort to meet high demand for grocery, retail, and consumer goods.

Many such carriers have been on-boarding the drivers furloughed by many other fleets, as the pandemic has brought about unprecedented employment efforts and recruitment methods.

“There was a smaller pool of companies actually continuing to hire, and yes, with the furloughs that took place, there was a slightly larger pool of applicants looking for their next opportunity,” said Grand Island Express vice president of operations, Deen Albert.

The larger potential selection of drivers seeking jobs is also filled with experienced commercial vehicle operators, giving fleets needing more truckers an opportunity to be pickier than usual in regards to their new employees.

DriverReach CEO, Jeremy Reymer, says this hiring situation is not unlike that of 2008’s recession.

“In many cases, there were a lot of really good drivers available as a result of that [recession],” he explained. “Through no fault of their own, they were out of work.”

For nearly a month-long period, highly talented and safe drivers were widely available, said Penske Logistics senior vice president of operations for dedicated contract carriage, Jeff Jackson.

Penske did indeed take advantage of this opportunity, although the company also laid off some of its drivers in areas with decreased demand, and even moved drivers to other sectors in need. Overall demand increase spiked much more quickly than was expected, Jackson said.

“Where we felt we had a surplus of drivers, it flipped to having to hire a lot of drivers again over the course of a couple of weeks,” he said.

Although many experienced drivers have been available for hire, fleets have been especially careful about who they bring onboard, said WorkHound CEO, Max Farrell.

“During this time, it isn’t just who can fill the truck. It is who is the right culture fit,” he said.

Still, a fleet’s main focus is safety, and bringing in veteran drivers helps boost that focus and get new employees on the road more quickly.

“Entry-level drivers, those with less than one year experience operating a [commercial motor vehicle] requiring a CDL, are subject to additional training requirements, and carriers often take special care to ensure they are as safe as possible,” explained CEO of Scopelitis Transportation Consulting, Dave Osiecki. “This training and on-boarding process adds time for new or less-experienced drivers.”

Grand Island Express’ Albert agreed, saying experienced truckers make on-boarding a much simpler process across the board.

“From a safety standpoint, we have some idea of the type of driver that they are,” he said. “From an efficiency standpoint, we know that they’ve been exposed to some of the technology used in the industry today. From a longevity standpoint, we know that experienced drivers understand the lifestyle of an OTR driver.”

Additionally, because COVID-19 has brought such a negative change in regards to job security, many trucking companies have also noticed higher overall driver retention rates.

“The broad job market is a little scary right now,” said Osiecki. “If you have a good driving job right now, you’re pretty happy, and most drivers are staying put.

Unemployment rates throughout the country increased to 14.7% in April, but fell back slightly to 11.1% in June. Staying put longer in a job is a natural effect of an uncertain job market, Osiecki explained.

“The grass may not be greener on the other side,” added Farrell, who explained that drivers are not likely to jump to another carrier, even if they had been considering it pre-pandemic.

Turnover rates have also dropped for both Penske and U.S. Express.

“Especially during the earlier days of COVID-19, uncertainty was greater, and more drivers decided to stay put in their current positions,” said Patton.

Jackson agreed, saying Penske’s turnover rate has decreased by 7%. “In 2019, our driver turnover was 29%. This year we’re trending at 23% through May.”

Additionally, trucking companies are often working to keep drivers at ease during these times by increasing communication efforts and staying mutually updated throughout the work day.

Penske, for example, implemented a communications strategy that utilizes both a COVID hotline and website for easier communication and question-asking.

“Drivers were not only concerned with COVID, but also with personal schedules that were in flux,” said Jackson. “From a [personal protective equipment] standpoint, we were ahead of pretty much every mandate with securing PPE. We also implemented temperature checks prior to the mandate. The drivers felt really good that we were putting this energy into it.”

Carriers Say They are “Not Prepared” to Begin Shipping COVID-19 Vaccines

September 27, 2020 by Levinson and Stefani Leave a Comment

As the nation relies on the trucking industry to keep it stocked on essential goods, food, and medical equipment, freight companies say they will not be ready to meet the challenges of shipping COVID-19 vaccines to all who need it once it becomes readily available.

Carriers have had tirelessly-working employees throughout the current health crisis and have seen issues such as low containership and cargo capacity as well as a lack of a timeline in regards to the arrival of a vaccine. The rush to safely transport fragile medicines in larger-than-ever quantities will call on the use of reliable, innovative technology, and, unless these innovations are adopted widely soon, vaccine transport will face heavy delays.

“We’re not prepared,” said Flexport’s global head of air carrier relationships, Neel Jones Shah. “Let’s all be honest here, vaccine supply chains are exponentially more complex than PPE supply chains. You can’t ruin PPE by leaving it on the tarmac for a couple of days. You will destroy vaccines [by doing that].”

Distributing vaccines will bring a lot of unprecedented challenges, especially with a scaling-down infrastructure behind the global economy as it prepares for widespread downturn, which comes just as pharmaceutical professionals work toward their largest export to date.

Health officials have brought up the issue of refrigeration, saying a new vaccine must be kept at between 35.6 and 46.4 degrees Fahrenheit during the entire shipment process. Newer tech methods may require advanced freezer machinery to keep them at 80 degrees below 0 Celsius, but any change in temperature, at any time, could ruin the vaccines entirely.

According to Shah, Flexport is still working out how products needing such careful transport could reach rural or impoverished areas, or what pharmaceutical companies working on these vaccines will need from companies like his. “To a T, they’re all extremely nervous about being able to bring these to market as quickly as people might expect,” he explained.

According to the World Health Organization, there are currently at least 160 COVID-19 vaccines being developed, with 25 presently in human studies. Those that have been most successful are heading into late-stage trial experiments, and may reach emergency-use authorization before the end of 2020. This would bring potentially usable shots–although in limited quantity–to health care workers and others who are most at risk.

“Often, people are talking about the scientific conundrum of coming forward with a vaccine that works,” said Kenneth Frazier, CEO of Merck & Co. “None of us are safe until all of us are safe, so it’s got to be given broadly to humanity. We need a vaccine that we can make and distribute around the world.”

Right now, companies are working out manufacturing deals while facilities prepare to produce still-risky vaccines that may fail in clinical trials. Although these vaccines are not yet ready for mass distribution, that level of production looms over the transportation industry, with pharmaceutical experts saying this distribution will be the greatest difficulty of the entire vaccine-producing process.

In regards to overseas travel, a single Boeing 777 will be able to ship one million individual vaccine vials, according to head of Emirates SkyCargo’s pharmaceutical division, Julian Sutch. Airlifting double-dose regimens–to be administered to half of the global population–would require 8,000 cargo planes.

Freeing up air freight capacity and preparing idled passenger planes to carry essential goods is helping to develop an international strategy. Currently, Emirates is using 70 passenger 777s just for cargo.

“I don’t think we’re ready because I don’t think we know what to expect,” said Miami International Airport aviation trade and logistics manager, Emir Pineda. “If, all of a sudden, 20 to 30 charter flights land at Miami International Airport full of pharmaceuticals for distribution throughout the Americas, we’re going to have a challenge.”

Governments may begin to intervene if private industry cannot meet the demands of this vaccine, as well. The Pentagon could potentially call Civil Reserve Air Fleet-contracted commercial airlines to aid in the efforts.

Additionally, as economies attempt to regain footing, stock demands will skyrocket ahead of the holiday season. Shipping prices may rise even higher, especially with current–and future–capacity shortages.

“We are going to see spikes driven by commercial freight,” said vice president at Atlas Air Worldwide, Michael Steen. “The typical calendar peak will be strong–that’s what we’re expecting.”

Although some international companies have been working to truck products into the U.S. or have been chartering private planes to deliver therapeutics, these Band-Aid solutions will likely fail with the complicated, expensive needs of shipping an international vaccine.

“We’re not planning proactively for accommodating that vaccine distribution going forward, because the various parties here are not connecting,” said Steen. “Shippers and manufacturers are not connecting.”

Still, supply chain companies, governments, and drug manufacturers are working diligently to find ways to “take this very scarce capacity and support the distribution of those vaccines in order to stimulate the economies and, most importantly, make people healthy again,” Steen said.

Supply Chain Workers Form Task Force to Increase Social Distancing During Delivery

September 21, 2020 by Levinson and Stefani Leave a Comment

Recently, a group of supply chain partners, retailers, and manufacturers came together to create a task force that would outline standards needed in order to reduce person-to-person contact when freight is moved from Class 8 vehicles to last-mile drop-offs.

The Contactless Delivery Task Force, launched by the Consumer Brands Association, has developed protocols for safer and smoother delivery processes for everyone involved.

“Everyone is very concerned about ‘How do we keep our employees safe, how do we keep things moving efficiently in a high-demand environment?’” said Consumer Brands Association vice president of supply chains, Tom Madrecki. “But, that issue of safety continues to percolate and continues to be very relevant.”

The group’s primary focus will be electronic bills of lading (eBOL), which bring the benefits of digitizing typically paper-based processes for further efficiency and data accuracy, as well as health and safety improvements (by reducing the need for human contact).

“As shippers continue to build more efficient and resilient supply chains, the eBOL fills in a gap that many clients have been asking for,” said Accenture’s supply chain and operations practice senior manager, Henry Blum. “The touchless BOL will result in entry error reduction, increased visibility to OS&Ds, drive lower transportation costs, and benefit their green footprint.”

EBOLs will help the industry move away from paper documentation and forward into the age of online dashboards, virtual booking, instant quotes, and data analytics. These methods are becoming much more present throughout the industry as shippers more regularly prefer real-time updates and information. Trucking industry carriers have been adopting the technology more rapidly than ever.

Additionally, as more industry workers have been working from home due to COVID-19, the demand for quickly-available electronic information has skyrocketed, and the transition to eBOL has allowed shippers to give faster and more efficient insight into the operations and logistics of their warehouses from their remote locations. For jobs that cannot be done from home, an eBOL allows for easier social distancing as files and documents no longer need to be exchanged in person.

“As CPG companies identify ways to increase supply chain efficiencies and ensure employee safety, electronic delivery verification through a contactless pick-up and delivery process is a natural solution,” said Madrecki.

The task force plans to make contactless delivery and pickup protocol much easier while maintaining and increasing system efficiency and employee safety. Since its launch, the task force has grown to include 25 consumer packaged goods retailers and companies.

“We’re really looking at ‘How do we reduce human interaction so that we can continue to facilitate the movement of goods and services?’” Madrecki explained. “A lot of companies raised the need for contactless deliveries mechanisms or tools.”

One company on the task force is Land O’Lakes, Inc., which hopes to be part of a major change for the progress of supply chains.

“While a major disruptor, COVID-19 now gives us the opportunity to partner across our industry and develop the processes and procedures that will define the consumer packaged goods space for years to come,” said Land O’Lakes senior vice president and chief supply chain officer, Yone Dewberry. “Health, safety, and efficiency have always been our priorities, but now we’re forced to look for new and innovative ways of incorporating technology even further.”

Virtualization is key for the task force, and those that are part of the effort have found a solution to keeping supply chains moving efficiently has been electronic delivery verification. Because of this, eBOL processes are a logical next step.

“We specifically looked at that as the first bite of the apple when it comes to contactless deliveries and how do we remove paperwork and the physical process from deliveries,” said Madrecki. “But, there are clearly other applications.”

If a company is able to implement an eBOL system, it would also be able to put in place other related solutions for different situations, as many aspects of a trucking business involve electronic information transfers.

“If we can work in a concerted way to provide a workable standard for that, then there are clearly other applications to other parts of the delivery ecosystem,” said Madrecki. “It can definitely open up into a lot of different directions.”

Many Fleets Rushing to Install Helpful Technology During Pandemic Challenges

September 15, 2020 by Levinson and Stefani Leave a Comment

Although many companies within the trucking industry have been hit hard financially during the COVID-19 crisis, many have gained much clearer insight into the necessity of high-quality and innovative technology in regards to their day-to-day operations.

Throughout the pandemic, technology investments have varied based on American fleets’ freight sectors, as well as their need to keep employees working from home and adhere to their drivers’ necessary safety precautions.

For example, for Paper Transport, a company with a fleet of 900 tractors and 3,000 van trailers, COVID-19 “has accelerated our ongoing investment” in technology, according to the company’s organizational development manager, Julie Decker.

“Our corporate office staff has been remote since March. We expect much of our workforce to remain remote through summer.” Decker also said that Paper Tranport’s truck-based tablets have allowed for these changes to be as seamless as possible for its employees.

The company, which operates across multiple freight segments–with paper products being a major one–saw its freight voluming skyrocketing during the pandemic, as well.

“Toilet paper during panic buying was crazier than you would ever imagine,”  said Decker. Because of this, Paper Transport accelerated its tech implementation, with help from Trimble Transportation.

“We have been active, early adopters of a few new software solutions provided by Trimble since last year, and each of those has launched in production during the pandemic.”

Ozark Motor Lines in Memphis had been working on implementing video telematics systems in all of its tractors since January, and is planning to continue the endeavor despite any financial setbacks. The company is installing Lytx units in 750 tractors, according to Ozark’s vice president of safety, Patrick Landreth.

Now, instead of needing to wait for drivers to be routed to an Ozark Motor Lines destination to receive safety coaching, the company can send a recording of an on-road event to the driver and then connect with the driver for coaching and counseling.

“When you consider the social distancing guidelines with the pandemic, that remote coaching is huge,” said Landreth.

Lytx’s vice president, Rob Abbott, reiterated the present need for telematics systems, saying for many carriers, this pandemic has “accelerated and exacerbated” the overall necessity.

“We’ve seen fleets accelerate implementation without first conducting a long test,” and relying heavily on other industry businesses’ recommendations, Abbott explained. Extensive testing for these technological systems was a typical precaution before the pandemic.

When Lytx visited Ozark Motor Lines to install units along with the carrier’s technicians, they realized the installation process would be similar across different model years.

“Our mechanics took it and ran,” said Landreth. “They have been getting multiple trucks done per week. We don’t think we’re going to have any trouble hitting our target date.”

This project also includes system installation on around 60 owner-operator trucks, with the vendor implementing units onto independent operators’ tractors of all makes and models.

For installers, drivers, and fleet workers, the majority of training must be virtual now, Abbott said. “Whereas before, we might prefer an in-person session with a group.” Lytx utilizes methods of training within web meetings, online teaching modules, and video training.

Many areas of the trucking industry have seen such a rise in demand that quick technology implementation is a must.

“The supermarkets are seeing a huge boom,” said Jonathan Bates, MiX Telematics‘ head of global marketing. “They’re having to lay on more drivers, more vehicles, more routes, and they need the visibility that telematics provides more than ever because the pressure is higher.”

Still, though, when the industry has seen slowdowns in the past, the effects have been different, said CEO of McLeod Software, Tom McLeod. He said this particular economic shutdown has shown trucking businesses where they need to be “more nimble and more able to withstand” any disruption.

“During an economic downturn, the larger companies tend to move ahead with their projects, because they’ve got a little more time to implement new systems.” he explained. For mid-market carriers, those businesses “tend to put the brakes on and wait to see when the economy’s going to pick up.”

McLeod has seen a huge boost in demand throughout the pandemic, and said other companies have also been “making a decision on much shorter time frames in order to address the need that’s been made obvious.”

He warned, though, that expediting automated business technology is not always wise.

“Sometimes I say, ‘With a computer, if you get in a hurry, it’s going to take longer,’” he explained. McLeod’s trucking software has “a very orderly and methodical process that we stick to because if you start trying to take shortcuts and skip steps, then sometimes you have a situation that needs to be cleaned up later.”

Trucking Implements Social Distancing and Sanitation as New Normal

August 31, 2020 by Levinson and Stefani Leave a Comment

As coronavirus continues affecting the nation, truckers have had to implement new sanitation and social distancing techniques into their daily lives. Now, it is the new normal for the industry.

According to the CDC, truckers must: always keep a distance of 6 feet away from anyone else whenever possible; limit outside-of-cab time while fueling, loading, unloading, and when at truck stops; use paperless invoicing; make appointments with facilities ahead of unloading activities; communicate with dock managers via phone; pack food and water to limit the number of stops on the road; avoid shaking hands; and keep trucks well-ventilated.

The CDC also wants truck drivers to continue wearing cloth face coverings whenever they may be in a public area, as well as to regularly clean and disinfect surfaces such as: the truck cab, including door handles, the steering wheel, seat belts, arm and head rests, the turn signal, wiper controls, the dashboard, and temperature controls; the sleeper berth, including light switches, the mattress tray, and other flat surfaces. They must also always request anyone else using the truck thoroughly disinfects it before returning it back and that all disinfection routines include diluted household bleach solutions or alcohol solutions with at least 70% alcohol.

Although these guidelines are appreciated and understood, adhering to them hasn’t been so simple, as many of these necessary materials have been scarce, even for the trucking industry. To keep risk to a minimum as truckers serve areas of the country with the highest numbers of COVID-19 cases, the industry has had to find new and creative ways to keep its employees safe.

For example, Grand Island Express has had a particularly difficult time finding cleaning supplies and personal protective gear. The company had to use extra T-shirts found in storage to make masks and also had to source cleaning products from a restaurant supplier connection.

“It is forcing us to think outside of the box,” said Grand Island director of operations, Deen Albert.

One driver for the company, Josh Rodriguez, said even these unorthodox provisions have helped him feel safer when heading into areas with heavy virus numbers. Rodriguez wears a mask, gloves, and keeps hand sanitizer ready at all times.

“I feel as safe as I can in this situation with the interactions we have,” he said. “I don’t want to drive myself crazy, but I want to balance it with the proper precautions.”

Still, other fleets are struggling to find necessary protective supplies as well. C.R. England’s director of management series, David Allred, said his fleet has had to find loopholes in obtaining effective hand sanitizer.

“We had to get creative,” he said, “such as using a four-ounce restaurant squeeze bottle for hand sanitizer.” C.R. England is also still working to find enough masks and gloves for all employees.

“However, since bulk orders have been back-ordered for some time, we still encourage all our employees to take the initiative to secure these items for themselves first, and the company will provide supplemental support,” he explained.

Because of that, C.R. England driver and trainer John Goode has relied on family for sanitation supply help. His aunt is a dentist, so she was able to give him much-needed gloves and masks once her practice shutdown during the pandemic.

“Every time we leave the truck, we put our surgical gloves on and put our mask on, and we don’t bring the gloves back in the truck with us,” said Goode. “After we do that, we sanitize our hands with the hand sanitizer, and we take the Clorox wipes and wipe down everything.”

Social distancing has had to become routine, as well, although it is not always easy in this industry.

“On the road, many shippers are not allowing drivers to access their docks,” said Averitt Express president Wayne Spain. “When they do have access to the dock and need to interact with a customer, they are keeping adequate space in between one another.”

Over-the-road Averitt driver Chris Yohn said customer locations are working to take initiative on social distancing.

“Shippers and receivers are doing their best to keep everyone separated,” he said.

These measures are even implemented when paperwork and signatures are needed.

“When it comes to paperwork, I’ll place the forms on a table for [the customer] to initial so that we can keep an appropriate distance from each other,” another Averitt driver, Manny Rodriguez, explained.

Grand Island’s Rodriguez also said customers have been marking 6 feet distances to create easier separation between themselves and drivers.

“They’ve been enforcing that,” he said. “Before, you’d be standing in line with eight to 10 drivers. Now, there are no more than three inside, and the rest wait outside.”

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