Mar
18
Long Haul Truck Rates Expected to Decline
Due to an overabundance of trucks and lack of demand, truck rates are expected to decline throughout 2016. Experts are predicting a fluctuation rate of -1% to 2% during the remainder of 2016, as the result of decreasing demand for trucking needs. The report, which was released Thursday and completed by Avondale Partners, shows a pricing increase of 0.5% in February but expects a steady decline to follow. The report was based on the contract pricing of 95% of publicly-held truckers. The sector to be hit the hardest appears to be dry vans, which has fallen 18% since February 2015. Read more…
Minimum Wage Increases May Boost Logistics Costs
Experts recently released a report regarding the upcoming changes in minimum wage and how they will affect logistics costs. Findings in the report showed that if employees were to receive a $1 raise in a warehouse 500 employees, annual labor costs could increase by over $1M. For e-commerce companies, the results are expected to be even higher due to the labor-intensive nature of the business, especially around peak seasons. Los Angeles, Seattle, San Francisco, Chicago and Washington D.C. are among the first cities to approve a minimum wage increase. By 2022, 11 states are expected to have a minimum wage above $10/hour. To cope with the expected labor cost increases, e-commerce companies are thinking of replacing employees with automated operations. Read more…
Cuba Ports Deemed Safe for U.S. Trade
The United States has officially removed Cuba from its list of unsafe ports, allowing the free flow of ships out of Florida into the country. Cuba was on the list of unsafe ports due to concerns of insufficient security. Lifting the restriction will allow cruise ships, ferries, and cargo vessels to freely travel back and forth between the countries. Cruise lines including Carnival have begun making arrangements for cruises into the country, with millions of Americans expected to travel to Cuba in the coming years. While there is still technically a travel ban on Cuba, government officials have stated that tourism is allowed and travelers can even collect frequent flyer miles when visiting the country. Read more…