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Trucking

How the Pandemic has Shifted the Supply Chain – Part 1

May 20, 2021 by Levinson and Stefani Leave a Comment

Since the start of the pandemic over a year ago, the trucking industry and the sectors working alongside it have undergone many changes–and have had to overcome countless challenges. Here’s a look at some of the most highly-affected areas across the nation’s supply chain

For State Transportation Departments, the response to the pandemic varied widely across the country. Technology, in particular, was a huge factor in each DOT’s actions, according to American Association of State Highway and Transportation Officials president, Victoria Sheehan.

Sheehan also currently serves as commissioner of the New Hampshire Department of Transportation, which has continued having employees work remotely. However, when employees must work in-person, such as at construction sites, they have begun utilizing contactless ticketing and delivery, and have also made an effort to travel in separate vehicles to work sites.

Additionally, Sheehan said the DOT began distributing personal protective equipment on public transportation and modifying buses and trains for social distancing between passengers.

“Not only are our workers essential, but we’re transporting other essential workers to and from their employment,” she said.

Now, state transportation department employees have been working to set up call centers for vaccination appointments and vaccination sites. Although these kinds of tasks are new, most state officials were well-prepared for an emergency, including that of the 2020 pandemic.

“Our association and our state DOTs and all the partners we work with had to be very nimble in reacting to all of these emerging issues,” said Sheehan.

Another area that saw major changes–road safety.

“It was definitely a strange year for inspectors,” said roadside inspection program director at the Commercial Vehicle Safety Alliance, Kerri Wirachowsky. “In the beginning of the pandemic, a lot of agencies just stopped doing inspections completely, only stopping vehicles if they saw an imminent issue.”

Only 2.7 million inspections were conducted in 2020, as compared to 3.5 million in 2019. Even the number of roadside inspections throughout CVSA’s International Roadcheck dropped by 25% last year. Many jurisdictions removed inspectors from the road to assign them other responsibilities instead.

“Some jurisdictions redeployed people to work on things related to COVID,” Wirachowsky noted. “So, the actual number of people doing inspections went down temporarily through 2020. It varied from state to state.”

Additionally, some state troopers who also worked as inspectors were sent to help the violence taking place during the social unrest in Wisconsin and Oregon, she added.

The accuracy of CVSA’s numbers during this time may be slightly less accurate than previous years, as well.

“As far as my data presentations go, I’m not using 2020 data,” said Wirachowsky. “For me, violations data each year needs to be consistent. But when you have an emergency declaration from the federal government for the entire year almost, when some violations aren’t cited and trucks can run over their hours, that skews all the violation data.”

On a high note, though, another affected area of the industry was that of truck driver advocacy.

Truckers–as they worked around the clock every day of the pandemic to make sure hospitals and clinics had the medical resources they needed and that grocery stores were fully stocked with food and household goods–quickly became the heroes of 2020. Many members of the public showed their thanks with outward displays of gratitude and gifts for the nation’s truckers as the pandemic wore on.

“Last March, we didn’t know what we didn’t know, but it became clear just what an important role we were going to play in getting the country back on its feet,” said Chris Spear, President of American Trucking Associations. “Truck drivers became soldiers on the front lines of our response to the pandemic: delivering food, medicine, [personal protective equipment], and other essentials that made our long quarantines possible. And now, as the tide is turning, delivering the literal shots in the arm we need to finish the fight.”

This advocacy made it possible for the industry to get more done in its favor than ever before, Spear added.

“We were able to secure real wins for our industry: access to rest stops, distributing PPE and sanitizer all in the name of keeping our drivers safe and healthy,” Spear said. “We worked with lawmakers to ensure that economic stimulus reached carriers and drivers so they could keep the economy moving. We pivoted and adapted our series of meetings and events to keep our members safe, but connected.”

Venture Capital May be Vital in the Modernization of Trucking Tech Systems

May 20, 2021 by Levinson and Stefani Leave a Comment

Autonomous Electric Van semi truck car driving on a highway with technology assistant tracking information, showing details.

We recently reported on the growing number of trucking technology companies merging with startups to stay competitive in the industry. To avoid inefficiencies, though, convergence is key.

With these vendors bringing in more aspects of modern trucking tech into their businesses, hardware can easily become redundant. Therefore, many managers are having to work with various data streams, platforms, and logins.

For example, when Omnitracs first acquired SmartDrive, tech convergence became a priority. The company soon found that it could lower overall costs for fleets by merging in-cab applications, core devices, and data plans. It also discovered that carriers could make similar convergences on the back office side instead of having to work with a variety of host systems.

According to the company’s CEO, Ray Greer, Omnitracs was also able to consolidate data gathered by apps, onboard video capabilities, and telematics in order to boost visibility and bring the company further insight.

“You can begin to mine that to better understand the environment, better understand the conditions to improve the coaching of the driver, [and] maybe even [better understand] the management of the asset, the freight, and the delivery,” said Greer.

“This would not have been possible without venture capital funds,” added Bart De Muynck, research vice president of Gartner Inc., explaining that venture capital has helped the industry exponentially by bringing in new vendors and by helping fleets steer their companies in the direction of lower-cost and cloud-based management and safety software.

According to Greer, though, companies newer to the market have a more difficult time rising up against the competition and boosting their own technology than a more substantiated company would, and typically end up leaving the industry by becoming acquired.

In fact, most startups keep their eyes on rapid growth and high selling value as opposed to steady increases in profits.

“They’re building for growth, and they’re building to sell,” said James Langley, senior vice president of Trimble Transportation.

Convergence can become particularly tricky when trucking tech start ups produce some “really compelling solutions” regarding methods of data utilization and artificial intelligence application, Langley said, but they also will often create specific solutions for particular problems, which makes it difficult for their fleet customers to incorporate that solution into the software they’ve already implemented.

Langley came across this exact problem when he served as president of Dart Transit Co., a truckload carrier based in Eagan, Minnesota.

“I’d have people come in and present some really awesome technologies, and my next question was, ‘OK, does that mean I need another sign-on? Does that mean I need another portal? Does that mean I need another reporting tool?’ Because if that’s the answer, I don’t want it, because my people only have so much time in a day,” he remembered.

The trucking technology market has also become much more complicated in recent years as consolidation continues to become more common, and many vendors that work in competition in specific market segments are also, oftentimes, collaborating on certain tech integrations within other areas of the market in an effort to bring further convenience to the customers they share.

“My view, as the leader of Trimble Transportation, is [that] we have to embrace ‘coopetition’ because we have to support customer choices,” said Langley.

With all of these new and unique applications for trucking companies, many fleets will chose multiple kinds of technology to suit their individual needs, Langley added.

“If we want people to buy more of our solutions, our Trimble-branded solutions, it has to be the one plus one equals three. They’ve got to be better together,” he explained. “We’ve got to win on [the] value proposition. We can’t hold a customer back if we don’t have exactly what they need.”

The industry, as a whole, seems to expect these kinds of consolidations within trucking tech to continue in the coming years, especially as more improvements and advances are made in electric and automated vehicle technology, final-mile delivery capabilities, machine learning, and data analytics. The boosted innovation and investment that will come with these changes will undoubtedly bring more consolidation in this sector.

Finally, many companies won’t be able to go all-in on one platform unless it implements much better user experiences, better overall capabilities, and a much lower cost, De Muynck explained.

“On the shipper side, we have already seen a much larger desire for a single platform and supplier,” he said. “We have not yet seen the same appetite on the carrier side. The economic conditions of the carriers mean they have to continue to use their software for a lot longer, whereas shippers have no issue changing out a TMS, for example, after three years.”

Software and Telematics Collaboration is Drastically Changing Trucking Tech

May 19, 2021 by Levinson and Stefani Leave a Comment

driver writing electronic log books

Telematics and software companies are working together to boost their outreach, capability possibilities, and organization sizes as consolidation has been resulting in massive changes across technology throughout the trucking world.

As this expansion continues and technology advances, transportation tech startup numbers have been growing steadily. Even technology vendors that have been in the transportation sector for a while have been buying out these newbies to maintain their competitive edges and continue improving their products.

Not only do these vendors often purchase startups and integrate their newer ideas into their business models, but they will also bring in a variety of fleet management tech capabilities like back-office software, vehicle telematics, and workflow apps as well as routing, navigation, and onboard camera software.

With new methods of trucking safety technology emerging into the industry all the time, established vendors can either find ways to create their own versions of these new programs or buy out another company that has been making waves with a particular new method. Typically, purchasing a small company or startup is a much easier and faster solution to stay on top of the tech game than developing a copycat software.

“It’s sometimes easier to acquire technology that’s already winning in the marketplace and [that] complements what you’re doing and adds to your bevy of tools,” said Trimble Transportation senior vice president, James Langley.

Trimble followed these acquisition methods, beginning with its purchase of PeopleNet in 2011. These mergers led to Trimble becoming a global navigation and tracking tech provider for fleets across the continent, allowing it to continue buying other smaller tech firms including ALK Technologies, Kuebix, TMW Systems, and 10-4 Systems.

Now, Trimble is able to provide services for fleets such as real-time sensor data, geospatial routing and navigation, and fleet management software for a company’s back office. According to Langley, these added capabilities coming together with longer-used technologies are making it easier for the industry to remedy difficulties regarding on-time, in-full deliveries and driver detention times.

“If you’re trying to work towards a more connected supply chain to make it more efficient, you’re connecting the driver to the back office to the shipper,” he said. “Fundamentally, that’s the way we [believe] you can solve these workflow challenges and make the industry more efficient as a whole.”

New federal mandates within the industry have led to increased technology demand as well, therefore bringing about even more tech startups–such as when the electronic logging device mandate came into play.

As federal guidelines and expected capabilities keep changing, companies like Descartes, a logistics and supply chain software provider throughout the globe, make frequent and strategic acquisitions on a regular basis to stay up-to-date and competitive.

Descartes has acquired more than 40 companies throughout the last decade and a half.

“We’re driven to help the industry by bringing together the processes, network, and data that [are] needed to completely automate the movement of shipments,” said Edward Ryan, CEO of Descartes. “Companies focused on building from the ground up often need longer research and development cycles to bring technology to market, bet it, and gain market trust not only for the product but for the company as well. In an environment with quickly shifting business needs, time is at a premium, and for some transportation organizations, consolidation may afford the opportunity to operationalize technologies faster.”

Omnitracs, a provider of trucking telematics that branched off from Qualcomm in 2013, has become a major name within video telematics by acquiring tech firms like XRS Corp. and Roadnet Technologies, as well as video-focused safety tech provider, SmartDrive Systems.

“The primary interest for me in acquiring SmartDrive is the recognition that behavioral event processing is in its early infancy of adoption in the industry,” said CEO of Omnitacs, Ray Greer. “It’s becoming a standard for how to drive safe practices in the industry, specifically the intention of reducing the frequency of accidents as well as the severity of accidents.”

According to Gartner Inc.’s vice president of research, Bart De Muynck, mergers and acquisitions have been on a steep incline in the last few years within the entire fleet telematics sector. Verizon Connect was a perfect example in 2016 when it acquired Telogis and Fleetmatics. Many other telematics vendors have also been integrating trucking tech at the factory level by creating partnerships with vehicle manufacturers.

Cold Chain Shipments Face Major Obstacles During Pandemic

May 19, 2021 by Levinson and Stefani Leave a Comment

“I’ve been inundated with packaging providers and other manufacturers coming forward with innovative ideas about how to help manage the temperature regimen,” said Larry St. Onge, Life Sciences and Health Care President for DHL, regarding the changes brought to cold chain shipments by the pandemic. “The big focus at the moment has really been on the vaccines.”

Cold chains have had the task of adapting to innovative new methods of shipping medical supplies deemed essential throughout the coronavirus pandemic, with shipping containers undergoing redesign strategies and temperature conditions needing boosted monitoring methods. DHL Group, in particular, has been collaborating with partners like pharmaceutical manufacturers to determine the best ways to avoid any monitoring or packaging mistakes.

For the vaccine made by Pfizer-BioNTech, conditions must be regulated at 94 degrees below zero Fahrenheit, which will require thermal sensors that are enabled by GPS and that have a location- and temperature-tracking control tower to closely monitor every single shipment of vaccines.

“An example of innovation that we’ve seen come forward is the ability to be able to utilize passive containers where you can easily replace the dry ice and essentially have an effective temporary storage unit,” explained St. Onge. “Certainly, we’re considering the context of the solutions we’re bringing to bear for customers as we go forward.”

Condition tracking, especially when it comes to temperature monitoring, has been extraordinarily important for trucking companies transporting the vaccine, even among companies that are well-accustomed to shipping vaccines, like Boyle Transportation.

“It would often be performed at the truckload level, but not necessarily at the individual package level,” said co-president of Boyle Transportation and vice chairman at American Trucking Associations, Andrew Boyle, in regards to strategy updates surrounding temperature tracking.

Many cold chain shipment companies find no surprise in these vaccine-distributing challenges, and some say that COVID-19 has only brought increased focus to the difficulties that often arise with these efforts.

“The pandemic has drawn incredible scrutiny on the cold chain because of the exact temperature requirements of these vaccines,” said Joe Battoe, CEO of Varcode.

In October, Sensitech and Carrier, subsidiaries of Carrier Global Corp, were met with monitoring and packaging challenges when the Carrier Pods system was announced. Carrier Pods was developed in order to help vaccine distribution efforts with capabilities including product visibility, data analytics, deep-freeze cooling, and real-time telematics.

Another issue that arose with the desperation brought about in the difficult circumstances of the pandemic–vaccine, medicine, and medical equipment theft occurring on big rigs.

“Many concerned with theft and diversion are adding additional layers of risk mitigation,” said a spokesperson for Sensitech. “Others are more concerned with keeping a closer eye on temperature changes for their vaccine shipments and want an early warning signal if the temperature is trending in the wrong direction.”

Varcode, in particular, had already developed a specific bar code that can change via chemicals to display certain information to a viewer, including whether or not a particular package has reached temperatures outside of what was intended. The company began collaborating with PL Developments in January for the purpose of boosting not only the capabilities, but the overall availability of this monitoring method.

“COVID itself, not just the vaccine, has brought all these issues into focus and brought new challenges,” said Varcode’s Battoe. “There are wildly different temperature requirements at a scale that’s just absolutely unprecedented. That is driving innovation.”

Even before the COVID-19 pandemic, biopharma typically loses around $35 billion each year due to temperature-controlling failures, according to the IQVIA Institute for Human Data Science. The International Air Transport Association determined that nearly 25% of all vaccines have become degraded upon arrival, as well.

Because of major distribution and monitoring challenges like these, a huge boost in innovations for cold chains focusing on temperature control and real-time visibility has been a long-term top priority for the industry, said Andrew Stevens, an analyst for Gartner Research.

“The cold chain is very much multilayered, in that there are approaches that you can take both in terms of protecting the inherent temperature of the product across all of its logistics and transportation phases,” Stevens said.

Levinson, Stefani, Terleckyj Recognized By Illinois Super Lawyers

May 18, 2021 by Levinson and Stefani Leave a Comment

Super Lawyers, a Thomson Reuters rating service branch, recognizes particularly outstanding lawyers “from more than 70 practice areas who have attained a high-degree of peer recognition and professional achievement,” and has recognized Levinson and Stefani’s Ken Levinson and Jay Stefani as Super Lawyers, Dan Terleckyj as a Rising Star, and Levinson also as a Top 100 Super Lawyer for the 2021 year.

Levinson has been named a Super Lawyer each year since 2010, and a Top 100 Illinois Super Lawyer in 2012, 2016, 2020 and 2021. This year, Levinson, Stefani, and Terleckyj were chosen out of around 95,000 Illinois attorneys for their recognition.

Super Lawyers uses peer nominations, peer evaluations, and independent research to select its recognized lawyers through a patented selection process. Top Illinois Lawyers receive the highest point totals; these lawyers are then recognized within the Top Illinois Super Lawyer lists.

Super Lawyer candidates are considered through either a peer nomination, third party feedback, a managing partner survey, or Super Lawyer Research Team identification. Then, a candidate’s professional achievement and recognition are evaluated on factors such as experience, awards, pro bono and community service, transactions, and scholarly lectures.

Only 5% of a representative number of attorneys from small, medium, and large firms chosen for final selections are recognized as Super Lawyers and are considered to be the “best of the best.”

High-scoring candidates then serve on the Blue Ribbon Panel to evaluate their peers within their own specific areas of practice.

“It’s always nice to receive recognition for what you do, but I’m most proud to be recognized by other great lawyers,” said Stefani. “It means a lot knowing they see and appreciate how hard I work for clients.”

Still, Stefani notes that his own recognition comes from the firm’s powerful teamwork.

“Having each of the lawyers at our firm recognized by Super Lawyers is a testament to our team approach to fight for our clients,” he said.

Terleckyj agreed, noting the distinction is due to the firm’s motivation to do the best it can for the people it serves.

“It’s an honor to get this distinction and I am thrilled to share the spotlight with the firm’s partners,” he said. “I think it is a testament to our dedication to clients and getting results that all the lawyers in our firm were recognized.”

2020 Shows True Capability and Dedication of Trucking Industry

March 16, 2021 by Levinson and Stefani Leave a Comment

2020 was a year of many tests for the trucking industry as the COVID-19 pandemic sent more customers than ever online for shopping, and grocery stores and medical centers needing boosted supplies of household goods and medical gear.

Because of this, publicly-traded fleets saw rising spot rates and financial results throughout the course of the year.

Additionally, workers throughout the industry, including suppliers, logistics providers, truck manufacturers, and fleets themselves did their part to lower the potential spread of the coronavirus within their workspaces and in public. These protocols brought about social distancing and remote work where applicable, and trucks and facilities are now regularly and more vigorously sanitized and cleaned. Drivers and other industry workers have also been provided with plenty of masks and cleaning supplies.

These changes didn’t mean challenges didn’t continue on for the industry, though.

“In February, we were coming off an all-time record unit year in 2019, and still going flat-out,” said Utility Trailer Manufacturing Co. senior vice president, Craig Bennett. “Then, in March, the bottom fell out, and numerous orders were canceled and delayed. We furloughed or laid off around 1,100 people and reassigned all other teams.”

These difficulties brought about a record low of 209 industry trailer orders in April, with Class 8 orders dropping to 4,251–as compared to 14,859 the year prior–during the same month. Still, as fleets added trucks for replacement, Class 8 sales stayed mostly consistent throughout 2020.

In regards to laid-off or furloughed workers, around 70% have been rehired, with new employees onboarded as well, according to Bennett.

Because of truckers’ boosted efforts to deliver the most important freight for our nation’s well-being, they understandably were considered heroes during 2020 with truckload carriers receiving the most work and benefit, according to SJ Consulting Group founder Satish Jindel.

Less-than-truckload carriers that rely on retail or heavier industrial shipments in the public sectors saw more decline in the second quarter of the year, with a revenue drop of 17.9% and a 16% year-over-year shipment decline.

“The pandemic effect on LTLs was significant,” Jindel said.

Although the virus’s long-term effects were felt industry-wide, Bob Costello, chief economist for American Trucking Associations, assured that already-in-place business practices were not a factor.

“It was a health crisis that morphed,” he said. “We have to get solutions to the health issues for trucking to come out of this completely. Eventually, the economy is going to grow at a really strong clip to historic highs.”

As oil prices rose in the later end of 2020, hopes surrounding the COVID-19 vaccine remained high, and industry experts expected the global fuel demand would relax as these vaccines became available.

“We’re seeing a rebound in demand, and refiners have been tightening to the [oil] supply,” said Phil Flynn, an industry analyst based in Chicago. “The refiners had to work off a lot of diesel supply, and they have done all they can to draw down those inventories because there’s been a glut. We’re also seeing demand here in the U.S. and China start to go through the roof again.”

As the virus began showing up across North America, oil demand was not quickly considered anything to worry about.

“The reality is that, at first, there was not much attention paid to it,” said John Lyboldt, president of the Truckload Carriers Association. “But after a week, COVID-19 became the buzzword and we were grateful to have concluded a successful event just before the virus grew into the global pandemic that it became.”

During this time, communication throughout the industry and its relationships with collaborators were forced to evolve, according to North American council for Freight Efficiency executive director, Mike Roeth. Work was still completed as usual, but the majority of contact between fleets, employers, distributors, manufacturers, and customers became digital and distant.

“I am so proud of how this industry continued its great collaborative work during this pandemic,” said Roeth. “It is just extraordinary and a testament to this industry and our ability to get things done.”

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