TEL: (516) 822-1183

Results of “New Normal” Supply Chain Service

/in , /by

A recent article in Chain Store Age reported the results of a survey for 3PL provider GlobalTrans, and authored by Edelman Data and Intelligence.  They surveyed 200 US based supply chain leaders on what they considered the “New Normal” to be.  The results were very interesting with over 90% of the respondents claiming they were convinced that their 3PL partners will effectively meet their needs in 2021. The respondents also felt that the latest Federal Government Stimulus packages, would benefit their operations and revenues.

While these comments were certainly positive, there were some results however that were not as positive.

  • 37% were sure they would be dealing with higher transportation costs in 2021
  • 31% were concerned that they would have workforce challenges to meet their customer’s demands
  • 24% reported that poor handling of home deliveries will remain a challenge in 2021
  • 76% claimed they still have concerns that their small package carriers will continue to struggle with on-time deliveries
  • 33% of respondents felt that their top concern was ensuring they have enough inventory on hand to meet their customer’s demands

To be perfectly frank, we were a little surprised with at least one of the survey results.  How is it possible that only about a third of respondents believe they will be dealing with higher freight costs in 2021.  As of today, we continue to see shipping expenses on the rise with really no end in sight.   Are these companies a little over-confident, and if they are, will they be facing the music with their “C” level executives if they are severely over budget at year end.

Our advice to all supply chain executives is to keep a close eye on shipping expenses and don’t take anything for granted.  Continue to test the market and look for alternative service options, even if there is no intention to change service providers.  Knowing the market each and every day of the year is critical for every supply chain executive.  Seek expert advice from logistics consultants that have the ability to benchmark a company’s current expenses against other competing businesses.  This is an exercise that just cannot be successfully accomplished with merely in-house resources.

Need help keeping a close eye on your shipping expenses?  Consider reaching out to us today to learn more.

Breaking News

Breaking: FedEx Follows UPS

/in , , , , /by

We reported earlier today that UPS has reinstated modified versions of their Guaranteed Service Delivery Refund Program.  Now, our friends at FedEx have made an announcement that they too will be reinstating their Guaranteed Service Delivery Refund Program effective today, April 6, 2021 for some of their Express Delivery Products.  As with UPS’ announcement, FedEx has not yet indicated whether they will reinstate the Guaranteed Service Refund Programs for any of their Ground Service Products.

Want to make sure you take advantage of the Service Delivery Refund Program?  Reach out to us today

Below is a copy of the FedEx announcement.

 

Ocean Rates on the Rise

/in , /by

The pain of paying ever-rising ocean rates for US Importers will continue into May and there is no end in sight.   Effective May 1, 2021, a General Rate Increase (GRI) has been filed for all cargo imported from Asia ports of loading, to U.S.A., Canada, and Mexico ports/ramps of discharge.

The proposed increases are as follows:

USD     900 / 20′

USD   1,000 / 40′

USD   1,125 / 40′ HQ

USD   1,125 / 40′ Reefer

USD   1,266 / 45′

USD   1,600 / 53′

If US importers are waiting to finalize their 2021 ocean contracts with the steamship lines in the hopes that rates will start to decline soon, a word of advice.  Don’t wait any longer because there is no end in sight to these General Rate Increases.  And, to add insult to injury, getting your containers on the ship, even at these greatly increased prices will be the real challenge.

Want to take control of rising international shipping costs?  Click here to learn more.

Breaking News

Breaking: UPS Reinstates and Modifies its Guaranteed Service Refund Program

/in , , , /by

Last week we reported that UPS was going to finally reinstate its Money Back Guarantee program on April 5, 2021 for late deliveries, at least for some of their service offerings.  Well UPS did in fact make that announcement on their website yesterday.

First and foremost, remember that effective March 26, 2020, UPS suspended its UPS Service Guarantee for all shipments from any origin to any destination as a result of the Covid-19 Pandemic.  For all U.S. origin shipments, the Service Guarantee suspension actually became effective on March 24, 2020.

Now, effective April 5, 2021 the UPS Service Guarantee will be reinstated however ONLY for the following services.  UPS Next Day Air services (UPS Next Day Air® Early, UPS Next Day Air® and UPS Next Day Air Saver®) and UPS Worldwide Express services (UPS Worldwide Express NA1®, UPS Worldwide Express Plus®, UPS Worldwide Express®, UPS Worldwide Express Saver®, UPS Worldwide Saver, UPS Worldwide Express Freight® Midday and UPS Worldwide Express Freight®).

In its announcement, UPS made the following provision changes and it’s a big one.  “Until further notice, the guaranteed delivery time for UPS Next Day Air Saver® deliveries has been extended to end-of-day (11:59 p.m. on the guaranteed day of delivery). The Service Guarantee remains suspended for all other UPS shipments from any origin to any destination. Also, delivery times for UPS Next Day Air Saver® and UPS 2nd Day Air A.M.® services scheduled for delivery on or after March 30, 2020 will be extended to end-of-day (11:59 p.m. on the guaranteed day of delivery) until further notice.”

It’s important to note that while UPS extended the time its deliveries for these services will qualify as “on-time” did not reduce its fees for these services to compensate shippers for these extended delivery times.

It is not clear at this point at least, whether UPS will reinstate their service guarantees for their Ground Delivery Services, nor is it clear if FedEx will play “Follow the Leader” in reinstating it’s service guarantees, so stay tuned!

Want to make sure you are taking advantage of this reinstatement?  Contact us today to learn more.

ICC breaking news

Breaking: Could This Be The Future of Guaranteed Service Refunds?

/in , /by

According to several sources said to be familiar with this matter, and reported by Freightways, UPS Inc. will partially reinstate its money-back guarantees for late or missed deliveries, effective April 5, 2021. 

For now, what we hear is UPS will resume its “guaranteed service refunds” (GSRs) program for its three next-day air delivery products: Early A.M. (deliveries by 8 a.m.), Next-Day Air (by 10:30 a.m.), and Next Day Air Saver (by mid-afternoon),.  This policy shift will not extend, at least for now, to UPS’ Ground Parcel delivery services.

When reached about this news, UPS declined comment.

UPS suspended its money-back guarantees in March, 2020, citing unprecedented market conditions due to the COVID-19 pandemic. UPS’ main rival,  FedEx, which also suspended its service guarantees, has not yet indicated whether it will reinstate its Money Back Guarantee programs.

UPS and FedEx have sterling delivery performance records, hitting their targets roughly 98% to 99% of the time. Still, given the two carriers’ massive volumes — UPS delivers about 17 million daily packages — even a 1% to 2% blemish translates into big bucks should every shipper whose deliveries weren’t made on time file claims that the carriers couldn’t dispute.

The program also represents a fertile revenue source for parcel consultants that shippers retain to analyze carrier performance, identify problem shipments and collect a cut of any refunds granted to the shipper.

Want to learn how you can take advantage of GSR reinstatement? Reach out to us today to learn more.