• A Week in Logistics: Slowdown Predicted for Air Freight, More Bad News for Chipotle

  • Air Cargo Slowdown Predicted for 2016

    The demand for air cargo as a method of transportation has consistently decreased and experts are predicting even more of a slowdown for 2016. The downturn in China coupled with falling commodity prices are partly to blame in the decreased demand. Air transportation has been declining over the past 7 years and air traffic volumes are only 8% higher than the pre-recession peak. The only saving grace for air traffic would be the sharp drop in oil prices over the last year, which prevents a major hit to the bottom line. Airline traffic however, is up by 42%. As a whole, experts are predicting a slight decline in overall industry growth for 2016, with many companies revising their 12 month forecasts to account for this. Read more…

    New Policy Mandates Truckers to Log Hours Electronically

    The long-awaited rule mandating truckers to electronically record their hours is finally here. An estimated 3 million commercial truckers and bus drivers will now have to record their hours via electronic log, as opposed to handwritten logs which allow drivers to change their log or evade driving hour restrictions. The safety administration estimates that the new rule will save $1B per year, through paperwork reductions. The rule officially goes into effect in 60 days and gives companies 2 years to implement the technology. Companies will technology that has been previously implemented but does not meet current requirements have four years to get current. Read more…

    Chipotle Cited for Third Critical Violation on Thursday

    It seems like Chipotle just can’t catch a break as the fast-food favorite was cited for its third critical violation in a 12 month span. Health inspections discovered that several ingredients such as fajita vegetables, carnitas, and chicken were not being kept hot enough on the assembly line. The violation caused health inspections to close a Seattle store until the investigation is complete. After a norovirus outbreak that sickened 120 Boston students and a nine-state E.coli problem, the chain is now facing a major drop in stock and PR nightmare. Once touted for its sustainable and ethically-sourced supply chain, that same supply chain may be its undoing. Read more…

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