Freight Industry August Roundup

Freight Industry August Roundup

Welcome to the Freight Industry August Roundup. It’s the first in a series of articles where we gather breaking news and important information from the Logistics Industry and add our unique perspective to it. Why waste time searching for news yourself when we do all the work for you? Enjoy!

Retailers See Gains in Serving E-Commerce Supply Chains

Big Box Retailers are learning hard and fast how to do e-commerce. Home Depot’s online sales grew 25% compared to the same period last year with overall sales growth of 4.3%. Target’s online sales grew even further at 30% with 2.4% total sales growth. With numbers like that it makes sense to figure out an efficient e-commerce infrastructure. The prevailing consensus is that dedicated fulfillment centers are the way to go.

Mr. Cornell said Target has expanded its ability to use stores as fulfillment centers, with plans to ship online orders from 450 store locations by year-end, up from 140 stores now. “Ship-from-store capabilities allows us to balance inventory across the network, leverage the capital and labor already in our stores and reach guests more quickly,” he said.

I wonder if Jeff Bezos is looking over his shoulders?

Read the full article from the Wall Street Journal

Carload Traffic Dips Slightly, Intermodal Makes Modest Gains

Carloads traffic dip “For the week ending August 15, 2015, total U.S. weekly rail traffic was 564, 502 carloads and intermodal units, down 1.7% compared with the same week last year, as carload traffic took a dip and intermodal made slight gains, the Association of American Railroads (AAR) reported on August 19, 2015.”

The jewel in the crown is that intermodal volume actually increased by 2.3% over the same period last year. Metallic ores and metals, coal, petroleum and petroleum products were the three major commodities that decreased the carload volume.

Read the full article from Railway Age

Truckload Rates Could Jump 25 Percent in Three Years, Says Freight Payment Exec

“U.S shippers and third-party logistics providers could see truckload rates increase by as much as 25 percent over the next two to three years, according to one of the heads of the largest privately held freight payment company in the U.S.”Truckload rates could jump350

The original article was actually posted in June but I’m including it because it reinforces my belief that long haul trucking will eventually go away to be replaced by intermodal facilities and short haul trucking.

Read the full article from

Inside the Edible Insect Industrial Complex

All things bugs “Human insect consumers seem to be on the rise.And wherever there is a marketable product, there is a supply chain. In this case, entrepreneurs like Bachhuber are rushing to feed America’s newfound hunger for edible insects.”

No it’s not April 1st! This could be a great opportunity for any 3PL company reading this to corner the market for logistics services to the edible insect industry. If you do don’t forget who alerted you, a case of those honey mustard crickets looks quite tempting 🙂

Read the full article on Fast Company

Thanks for reading. If you have any suggestions on what you would like me to cover next month mention it in the comments below.

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