NASSTRAC’s Carrier of the Year Awards recognize those providers that have demonstrated excellence in transportation. Here’s a look at this year’s winners.
The supply chain disruptions caused by the coronavirus outbreak have only emphasized what most supply chain professionals have long known to be true: having a strong relationship with a highly skilled transportation provider can save a shipper in times of trouble.
Every year CSCMP’s sister organization, NASSTRAC (National Shippers Strategic Transportation Council), recognizes those transportation providers that have excelled at creating such partnerships with its Carrier of the Year awards. The goal of the program is to help shippers identify carriers that are the “best of the best” in terms of performance and value. As such, the program aligns well with the association’s focus on helping its members navigate the current challenges in transportation and create strategic partnerships with providers.
When it was founded in 1952, NASSTRAC was designed as a shippers association for transportation and logistics professionals who manage freight across all modes. The association, however, has two types of members: 1) regular members, which include shippers, receivers, shipper associations, and third-party providers, and 2) associate members, which include suppliers of transportation services, warehousing, or technology services and providers of other logistics-related products and services.
Regular members of NASSTRAC who are qualified buyers of transportation services receive ballots for the Carrier of the Year awards each year and grade candidates on a quantitative scale in five key areas: customer service, operational excellence, pricing, business relationship, and leadership/technology. To win, a carrier must be a member of NASSTRAC and/or CSCMP.
For this reason, Gail Rutkowski, executive director of NASSTRAC, also sees the awards as a way to recognize its carrier members.“Our motor carrier members have been great supporters of NASSTRAC, working with our members to continue to provide good service at fair prices,” she says. “We feel it is important to celebrate those supporters who day-in and day-out work with our members to keep our supply chains moving.”
This year’s winners are:
National Less-Than-Truckload (LTL) Coverage: YRC Worldwide Inc.
“Many of the winners this year are repeat winners,” Rutkowski says. “Year after year, they continue to work with our members and with us on challenges and on providing solutions.”
What makes a winning transportation provider? To answer this question, Supply Chain Quarterly's Managing Editor Diane Rand spoke with: Derek Leathers, president and chief executive officer, at Werner Enterprises; Pat Martin, vice president of corporate sales and strategic planning, at Estes Express Lines; Geoffrey Muessig, executive vice president and chief marketing officer, at Pitt Ohio; and Mike Gamel, chief executive officer, at Mexpress Transportation.
(National LTL Coverage winner YRC Worldwide Inc. was unable to participate by press time.)
National Truckload winner:Werner Enterprises
Represented by Derek Leathers, President and Chief Executive Officer
What attributes or aspects of your business do you feel led to Werner Enterprises being named Carrier of the Year?
The dedication of our professional drivers and office associates is what sets us apart and makes us an industry leader. I often tell our drivers and associates that average is for other people, and when I look around Werner, average is nowhere to be found. Our innovation in transportation and our ability to provide global transportation solutions definitely gives us an edge.
What does winning this award represent to your company?
Customer service and satisfaction are always at the forefront of our strategic planning. To receive an award that is shipper-selected based on our excellence in performance and results is very impactful. It validates that our innovation in transportation technology and focus on customer service are producing results that are in alignment with customer expectations.
What are some of the challenges that the national truckload sector is facing, and how is your company responding to these challenges?
Of course, the COVID-19 crisis is the main challenge everyone is facing right now. We have been responding to natural disasters as an industry for as long as the industry has been around, but not to this magnitude. Keeping our drivers safe and ensuring they have the necessities they need while out on the road is our top priority. Every decision we make and every action that we implement will be done by being logical, rational, and above all, compassionate.
How do you plan to weather the COVID-19 pandemic and the economic repercussions?
Werner has had a pandemic plan since 2009 when the H1N1 outbreak occurred. We were well-prepared throughout our network. Werner has always been financially stable; we accomplish this by having a diversified portfolio and keeping debt very low. Because of this, we are well-positioned to weather these uncertain times.
What are some of the biggest accomplishments that your company has achieved in the past year?
We were very honored to have been the recipient of 10 customer awards in 2019. In addition to being recognized by our customers, we also received many industry awards including the SmartWay Excellence and High Performer Awards from the Environmental Protection Agency for the third consecutive year. Werner also earned two 2019 Quest for Quality Awards from Logistics Management in the truckload and van line carriers and third-party logistics (3PL) service providers categories. Other significant awards we earned were Top Company for Women by the Women in Trucking Association and several Military Friendly awards from VIQTORY. We were also extraordinarily proud to have been able to assist the State of Nebraska in its efforts to source and deliver critical medical supplies for hospitals and public health agencies across the state in the fight against COVID-19.
Represented by Geoffrey Muessig, Executive Vice President and Chief Marketing Officer.
What attributes or aspects of your business do you feel led to your being named Carrier of the Year?
Pitt Ohio provides reliable and dependable service within and between the Midwest and the Northeast regional LTL markets.
What does winning this award represent to your company?
We at Pitt Ohio appreciate the fact that the NASSTRAC award is based on widespread support from shippers in many industries.
What are the challenges that the LTL sector is currently facing, and how is your company planning to respond to these challenges?
Rising operating costs in the form of increased labor, benefits, equipment, and tolls are a challenge for all LTL carriers across the nation.
What are your plans for the upcoming year?
Pitt Ohio has enhanced our service offering by providing shippers with next-day service lanes to the Greater Toronto area, western New York, and parts of New England.
What are some of the biggest accomplishments that your company has achieved in the past year?
Pitt Ohio is focused on lowering our costs. To this end, we are digitizing our administrative functions by working with our customers to transition from paper bills of ladings to digital bills of lading.
Represented by Pat Martin, Vice President of Corporate Sales and Strategic Planning
What attributes or aspects of your business do you feel led to Estes Express Lines being named Carrier of the Year?
As the largest privately held trucking company in America, we have the size, scale, and flexibility that customers are looking for. We are also passionate about our customers, willing to “think outside the box” to get things done, and always try to do the right thing.
What does winning the Carrier of the Year award represent to your company?
Being recognized by NAASTRAC is really an honor. We are humbled to be named Carrier of the Year and will continue to do everything we can to live up to the faith and trust that the shipping community has put in us.
What challenges are LTL companies facing, and how is your company responding to these challenges?
Estes is made up of six regions and has a vast nationwide network. This means our success isn’t just dependent on a single person or team. Every day, we are relying on many different people, across many different locations, to make the right choices. And because of this, our biggest challenge is often fitting the right people to the right positions. This isn’t an easy task with a network as large as ours, but we’re in the people business. For us, that means we are committed to creating an environment where our employees feel valued for their contributions and want to come to work.
How do you plan to weather the COVID-19 pandemic and the economic repercussions?
All businesses are facing a challenge today with COVID-19, but we are very fortunate (and humbled) to have so many loyal customers who continue to put their trust in us during these uncertain times. We are lucky to be privately held and debt-free, so we are in a great position to weather the storm. As the economy begins to open up, we will all have a better understanding of the “new normal.” Then it will be back to the business of rolling up our sleeves and growing our company like we’ve always done.
What are some of the biggest accomplishments that your company has achieved in the past year?
Customers rewarding us with business is always our greatest accomplishment. This only happens when we deliver a quality product to the market. In fact, our commitment to quality is what’s driven us to spend the past year enhancing many of our tools and systems to provide an even more efficient, user-friendly experience for our customers. And it’s always fun to watch the people of Estes step up and grow, too.
Specialty LTL winner:Mexpress Transportation Inc.
Represented by Mike Gamel, Chief Executive Officer
What attributes or aspects of your business do you feel led to your being named Carrier of the Year?
We feel that Mexpress Transportation has been named Specialized Carrier of the Year for the fourth time because we continue to provide a service to the logistic marketplace that no one else provides. Our service is unique in that we provide a “borderless” LTL and full truckload (FTL) road feeder service to and from Mexico that fills the void between your regular truck service and air freight. Mexpress has been providing a “borderless” road feeder service between the U.S. and Mexico for 22 years, and we are still seen as a new service. We are way ahead of our time!
What does winning the Carrier of the Year award represent to your company?
I have been a member of NASSTRAC since its inception. I attribute most of our success in this industry to what we’ve learned through our association with NASSTRAC as well as the friendship and unwavering support of NASSTRAC members through the good times as well as the bad times.
What challenges is the industry facing today, and how is your company planning to respond to these challenges?
As near shoring becomes more prevalent and with the passage of the new USMCA [United States-Mexico-Canada Agreement], trade with Mexico has increased in both directions. Just in time [deliveries] and keeping down inventory of both raw materials and finished goods has intensified. With our set schedules and committed transit times, clients from around the world have moved air freight into the U.S. and turned the shipments [over] to Mexpress at our various drop stations for immediate departure and overnight or second-morning service to Mexico. We are now seeing a big increase in freight from the U.S. to the manufacturers in Mexico, but the U.S. customer doesn’t understand the logistics between Mexico and the United States. We are here to help them from A to Z.
How do you plan to weather the COVID-19 pandemic and the economic repercussions?
Our focus has been on the health and safety of our team as well as on strengthening our infrastructure. The COVID-19 epidemic put in the forefront how much of the raw material and finished goods that Canada, the U.S., and Mexico depend on come from Asia (in particular China). Companies that were contemplating moving their production back to a USMCA country have sped up the evaluation process—not only in an effort to meet the United States’ new country of origin rules but also because they now realize the importance of manufacturing in the region. The changes in the supply chain taking place is good for Mexpress because we link the United States, Canada, and Mexico with our unique LTL and FTL road feeder service.
What are some of the biggest accomplishments that your company has achieved in the past year?
Besides winning this coveted award from NASSTRAC, we feel our biggest accomplishment is the team of experts that Mexpress has put together within the company to assist companies or clients with any logistics issue to or from Mexico even though it may not be in our service matrix.
Container imports at U.S. ports are seeing another busy month as retailers and manufacturers hustle to get their orders into the country ahead of a potential labor strike that could stop operations at East Coast and Gulf Coast ports as soon as October 1.
Less than two weeks from now, the existing contract between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance covering East and Gulf Coast ports is set to expire. With negotiations hung up on issues like wages and automation, the ILA has threatened to put its 85,000 members on strike if a new contract is not reached by then, prompting business groups like the National Retail Federation (NRF) to call for both sides to reach an agreement.
But until such an agreement is reached, importers are playing it safe and accelerating their plans. “Import levels are being impacted by concerns about the potential East and Gulf Coast port strike,” Hackett Associates Founder Ben Hackett said in a release. “This has caused some cargo owners to bring forward shipments, bumping up June-through-September imports. In addition, some importers are weighing the decision to bring forward some goods, particularly from China, that could be impacted by rising tariffs following the election.”
The stakes are high, since a potential strike would come at a sensitive time when businesses are already facing other global supply chain disruptions, according to FourKites’ Mike DeAngelis, senior director of international solutions. “We're facing a perfect storm — with the Red Sea disruptions preventing normal access to the Suez Canal and the Panama Canal’s still-reduced capacity, an ILA strike would effectively choke off major arteries of global trade,” DeAngelis said in a statement.
Although West Coast and Canadian ports would see a surge in traffic if the strike occurs, they cannot absorb all the volume from the East and Gulf Coast ports. And the influx of freight there could cause weeks, if not months-long backlogs, even after the strikes end, reshaping shipping patterns well into 2025, DeAngelis said.
With an eye on those consequences, importers are also looking at more creative contingency plans, such as turning to air freight, west coast ports, or intermodal combinations of rail and truck modes, according to less than truckload (LTL) carrier Averitt Express.
“While some importers and exporters have already rerouted shipments to West Coast ports or delayed shipping altogether, there are still significant volumes of cargo en route to the East and Gulf Coast ports that cannot be rerouted. Unfortunately, once cargo is on a vessel, it becomes virtually impossible to change its destination, leaving shippers with limited options for those shipments,” Averitt said in a release.
However, one silver lining for coping with a potential strike is that prevailing global supply chain turbulence has already prompted many U.S. companies to stock up for bad weather, said Christian Roeloffs, co-founder and CEO of Container xChange.
"While the threat of strikes looms large, it’s important to note that U.S. inventories are currently strong due to the pulling forward of orders earlier this year to avoid existing disruptions. This stockpile will act as an essential buffer, mitigating the risk of container rates spiking dramatically due to the strikes,” Roeloffs said.
In addition, forecasts for a fairly modest winter peak shopping season could take the edge off the impact of a strike. “With no significant signs of peak season demand strengthening, these strikes might not have as intense an impact as historically seen. However, the overall impact will largely depend on the duration of the strikes, with prolonged disruptions having the potential to intensify the implications for supply chains, leading to more pronounced bottlenecks and greater challenges in container availability, " he said.
A coalition of freight transport and cargo handling organizations is calling on countries to honor their existing resolutions to report the results of national container inspection programs, and for the International Maritime Organization (IMO) to publish those results.
Those two steps would help improve safety in the carriage of goods by sea, according to the Cargo Integrity Group (CIG), which is a is a partnership of industry associations seeking to raise awareness and greater uptake of the IMO/ILO/UNECE Code of Practice for Packing of Cargo Transport Units (2014) – often referred to as CTU Code.
According to the Cargo Integrity Group, member governments of the IMO adopted resolutions more than 20 years ago agreeing to conduct routine inspections of freight containers and the cargoes packed in them. But less than 5% of 167 national administrations covered by the agreement are regularly submitting the results of their inspections to IMO in publicly available form.
The low numbers of reports means that insufficient data is available for IMO or industry to draw reliable conclusions, fundamentally undermining their efforts to improve the safety and sustainability of shipments by sea, CIG said.
Meanwhile, the dangers posed by poorly packed, mis-handled, or mis-declared containerized shipments has been demonstrated again recently in a series of fires and explosions aboard container ships. Whilst the precise circumstances of those incidents remain under investigation, the Cargo Integrity Group says it is concerned that measures already in place to help identify possible weaknesses are not being fully implemented and that opportunities for improving compliance standards are being missed.
By the numbers, overall retail sales in August were up 0.1% seasonally adjusted month over month and up 2.1% unadjusted year over year. That compared with increases of 1.1% month over month and 2.9% year over year in July.
August’s core retail sales as defined by NRF — based on the Census data but excluding automobile dealers, gasoline stations and restaurants — were up 0.3% seasonally adjusted month over month and up 3.3% unadjusted year over year. Core retail sales were up 3.4% year over year for the first eight months of the year, in line with NRF’s forecast for 2024 retail sales to grow between 2.5% and 3.5% over 2023.
“These numbers show the continued resiliency of the American consumer,” NRF Chief Economist Jack Kleinhenz said in a release. “While sales growth decelerated from last month’s pace, there is little hint of consumer spending unraveling. Households have the underpinnings to spend as recent wage gains have outpaced inflation even though payroll growth saw a slowdown in July and August. Easing inflation is providing added spending capacity to cost-weary shoppers and the interest rate cuts expected to come from the Fed should help create a more positive environment for consumers in the future.”
The U.S., U.K., and Australia will strengthen supply chain resiliency by sharing data and taking joint actions under the terms of a pact signed last week, the three nations said.
The agreement creates a “Supply Chain Resilience Cooperation Group” designed to build resilience in priority supply chains and to enhance the members’ mutual ability to identify and address risks, threats, and disruptions, according to the U.K.’s Department for Business and Trade.
One of the top priorities for the new group is developing an early warning pilot focused on the telecommunications supply chain, which is essential for the three countries’ global, digitized economies, they said. By identifying and monitoring disruption risks to the telecommunications supply chain, this pilot will enhance all three countries’ knowledge of relevant vulnerabilities, criticality, and residual risks. It will also develop procedures for sharing this information and responding cooperatively to disruptions.
According to the U.S. Department of Homeland Security (DHS), the group chose that sector because telecommunications infrastructure is vital to the distribution of public safety information, emergency services, and the day to day lives of many citizens. For example, undersea fiberoptic cables carry over 95% of transoceanic data traffic without which smartphones, financial networks, and communications systems would cease to function reliably.
“The resilience of our critical supply chains is a homeland security and economic security imperative,” Secretary of Homeland Security Alejandro N. Mayorkas said in a release. “Collaboration with international partners allows us to anticipate and mitigate disruptions before they occur. Our new U.S.-U.K.-Australia Supply Chain Resilience Cooperation Group will help ensure that our communities continue to have the essential goods and services they need, when they need them.”
A new survey finds a disconnect in organizations’ approach to maintenance, repair, and operations (MRO), as specialists call for greater focus than executives are providing, according to a report from Verusen, a provider of inventory optimization software.
Nearly three-quarters (71%) of the 250 procurement and operations leaders surveyed think MRO procurement/operations should be treated as a strategic initiative for continuous improvement and a potential innovation source. However, just over half (58%) of respondents note that MRO procurement/operations are treated as strategic organizational initiatives.
That result comes from “Future Strategies for MRO Inventory Optimization,” a survey produced by Atlanta-based Verusen along with WBR Insights and ProcureCon MRO.
Balancing MRO working capital and risk has become increasingly important as large asset-intensive industries such as oil and gas, mining, energy and utilities, resources, and heavy manufacturing seek solutions to optimize their MRO inventories, spend, and risk with deeper intelligence. Roughly half of organizations need to take a risk-based approach, as the survey found that 46% of organizations do not include asset criticality (spare parts deemed the most critical to continuous operations) in their materials planning process.
“Rather than merely seeing the MRO function as a necessary project or cost, businesses now see it as a mission-critical deliverable, and companies are more apt to explore new methods and technologies, including AI, to enhance this capability and drive innovation,” Scott Matthews, CEO of Verusen, said in a release. “This is because improving MRO, while addressing asset criticality, delivers tangible results by removing risk and expense from procurement initiatives.”
Survey respondents expressed specific challenges with product data inconsistencies and inaccuracies from different systems and sources. A lack of standardized data formats and incomplete information hampers efficient inventory management. The problem is further compounded by the complexity of integrating legacy systems with modern data management, leading to fragmented/siloed data. Centralizing inventory management and optimizing procurement without standardized product data is especially challenging.
In fact, only 39% of survey respondents report full data uniformity across all materials, and many respondents do not regularly review asset criticality, which adds to the challenges.