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AFS Logistics releases April 2022 Cowen/AFS Freight Index
Fuel surcharges together with market forces are predicted to push parcel and LTL rates to record highs, while truckload growth rate to ease
SHREVEPORT, La. (April 12, 2022) – AFS Logistics (afs.net), an industry-leading 3PL provider, and Cowen Research today released the April 2022 Cowen/AFS Freight Index, a quarterly transportation pricing snapshot with predictive pricing across multiple sectors in the freight industry. Dramatically higher fuel surcharges are the primary driver of the accelerated growth in LTL and parcel costs in Q2 2022, while driver shortages and labor costs support continued truckload growth even as forecasted demand softens.
“Rising fuel prices are no secret. The average cost of diesel in the U.S. going up over a dollar in just a month made plenty of headlines, and in a tight capacity market carriers are responding with significantly higher fuel surcharges,” says Tom Nightingale, CEO, AFS Logistics. “Shippers should expect rising rates across the board, as those higher fuel surcharges join the usual suspects like capacity constraints, GRIs, firm pricing policies and steep accessorial increases to intensify upward pricing pressure.”
The Cowen/AFS Freight Index offers a unique, forward-looking view that leverages both past performance and a machine-learning forecast for the balance of the quarter. The predictions are derived from AFS Logistics’ freight data across transportation modes, including LTL, parcel express, parcel ground sectors and truckload. AFS Logistics uses insights from the freight index to help clients navigate, budget and strategically plan for what’s ahead. Cowen uses the freight index to provide institutional clients with predictive pricing tools for multiple sectors within the freight industry.
“Truckload carriers continue to wield contractual pricing power, even as waning demand and increased capacity from smaller fleets hit spot prices hard," says Jason Seidl, senior analyst, airfreight and surface transportation, Cowen. “Consumer spending habits, inflation impacts and demand shifts from pending infrastructure projects are likely to have a big impact on 2H22 pricing trends."
Key implications for truckload shippers
Data indicates continued rate-per-mile increases, albeit at a slower rate compared to 2021. Compared to the January 2018 baselines, the index is expected to grow from 25.2% in Q1 to plateau at 27.1% in Q2, a lower growth rate than previous quarters.
The correlation between price and distance remains strong, and the overall miles per shipment increased 3.2% in Q1 compared to the previous quarter. Market forces like the driver shortage and higher labor costs continued to support cost-per-shipment growth in Q1 2022, but early data indicates truckload demand in 2022 will be softening compared to 2021.
Key implications for LTL shippers
Fuel is a major driver of cost-per-shipment growth in Q1 2022 and expected increases in Q2. Disruptions to global oil supply and continued high demand resulted in LTL carriers adjusting fuel surcharge tables, causing significant increases to fuel-related costs in the first quarter of 2022. Among major LTL carriers, the average fuel charge increased from 28.3% in Q4 2021 to 42.1% in March 2022.
Pressure from fuel, capacity constraints, firm pricing policies and accessorial charges are not expected to abate, and the LTL index is expected to reach an all-time high of 40.9% in Q2 2022 compared to the January 2018 baseline – a 4% quarter-over-quarter increase. With LTL rates at historic highs, shippers are considering alternatives like shipment consolidation, multi-stop truckload and additional warehousing solutions to help manage freight spend.
Key implications for ground and express parcel shippers
Both FedEx and UPS recently implemented significant changes to fuel surcharges, resulting in increases of 129% in express parcel and 89% for ground parcel compared to October 2021. The fuel surcharge increases outpaced the corresponding indices that drive fuel surcharge levels published by the U.S. Energy Information Administration – the USGC Kerosene-type Jet Fuel rates for express parcel and on-highway diesel fuel prices for ground parcel. To better capture the volatility of fuel cost, UPS joined FedEx in reducing the lag time in its fuel surcharge adjustments from two weeks to one week.
For express parcel, record-high general rate increases (GRIs), accessorial increases and higher fuel surcharges drove a quarter-over-quarter increase of 5.8% in Q1 2022. The GRIs pushed a sharp increase in parcel express rates in January 2022, but declining weight brought the average rate per package to a more moderate level. On a quarter-over-quarter basis, the express parcel net effective fuel surcharge increased 24.7% in Q1 2022. Looking ahead, the express parcel index is forecasted to stay above the 2018 baseline, growing from 0.8% in Q1 to 1.8% in Q2 2022.
The ground parcel index continued to increase, and is expected to reach an all-time high of 24.6% in Q2 2022, primarily driven by carriers leveraging fuel surcharges to boost per package cost. In Q1 2022, the net effective fuel charge was 17% higher than the previous quarter and 70% greater on a year-over-year basis.
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About AFS Logistics
AFS Logistics helps more than 1,800 companies across more than 35 countries drive sustained savings and operational improvements, while turning their logistics operations into competitive, customer-centric differentiators. As a non-asset based and non-asset biased 3PL, AFS provides a range of logistics services, featuring freight and parcel audit, parcel cost management, LTL cost management and transportation management, which includes freight brokerage and freight forwarding. Founded in 1982 and employing a team of more than 380 logistics teammates in eight major locations across the U.S. and Canada, AFS is regularly part of the Inc. 5000 list of fastest growing companies. To learn more, visit www.afs.net.
GEODIS, a leading global logistics provider, today announced plans to hire 3,700 seasonal workers across its campuses in the U.S. and Canada to help manage the expected rise in volumes during peak season. This hiring initiative will bolster the company’s operational capacities in its warehouses and distribution centers in preparation for the holiday season, a time when consumer demand surges.
Emarketer noted U.S. holiday sales in 2023 increased 3.9% year-over-year as consumer spending grew even amidst uncertain economic times, and a similar pattern is projected for this year. Emarketer expects a substantial 4.8% increase in holiday retail sales for 2024, signifying continued growth despite factors such as inflation and consumer price sensitivity. In anticipation of this demand, GEODIS is seeking seasonal employees to join its nearly 17,000 teammates who power its operations across North America.
GEODIS is recruiting material handlers and equipment operators across 13 regions in the U.S. and Canada this peak season. The company offers competitive wages, peak premium pay incentives, peak and referral bonuses, and an expedited payment option that allows workers to receive up to 50% of their paycheck before payday through an on-demand program. Additionally, GEODIS provides flexible schedules with weekend opportunities and multiple shift options daily, allowing teammates to choose times that best suit their lives. Both part-time (under 30 hours a week) and full-time (over 30 hours a week) seasonal positions are available. Prospective teammates can also use GEODIS’ virtual recruiting assistant, Sophie, to find the right role, easily navigate the application process and receive fast answers to questions before being connected to a recruiter for next steps.
“We acknowledge the immense responsibility we have to our customers to deliver exceptional service every day, and this is especially true during peak season,” said Anthony Jordan, GEODIS in Americas Executive Vice President and Chief Operating Officer. “Because peak season is the most business-critical sales period of the year for many of our retail clients, expanding our workforce is vital to ensure we have a flexible, dynamic team that can handle anticipated surges in demand.”
GEODIS’ culture puts teammates at the forefront by offering opportunities for employees to provide feedback and suggestions through surveys, personal check-ins and group meetings. The company also prioritizes teammate safety and ensures optimal work conditions in modern facilities with state-of-the-art technology. GEODIS invests in its teammates with paid safety-focused training, allowing them to gain hands-on experience so they can feel confident from day one of employment.
“GEODIS is committed to creating a diverse and supportive work environment where employee well-being is our top priority,” said Jordan. “Whether looking for extra income during the holidays or wanting to explore a long-term path at GEODIS, our teammates have the opportunity to make a difference and receive the training and support they need to move their careers forward.”
For more information on GEODIS’ seasonal positions, visit www.WorkAtGEODIS.com.
GEODIS – www.geodis.com
GEODIS is a leading global logistics provider acknowledged for its expertise across all aspects of the supply chain. As a growth partner to its clients, GEODIS specializes in four lines of business: Global Freight Forwarding, Global Contract Logistics, Distribution & Express Transport, and European Road Network. With a global network spanning nearly 170 countries and 53,000 employees, GEODIS is ranked no. 5 in its sector across the world. In 2023, GEODIS generated €11.6 billion in revenue. GEODIS is a company owned by SNCF group.
Nulogy, a leading provider of supply chain collaboration solutions, is hosting a session during the Association of Supply Chain Management's ASCM Connect 2024. Nulogy, Kinaxis and Colgate-Palmolive executives will present “Orchestrating Digital Transformation: Nulogy & Kinaxis Empower Colgate-Palmolive’s External Network” on Monday, 9/9/2024, 3:45 - 4:45 p.m. CT in Ballroom E, Level 4.
In an era when digital transformation is paramount for sustainable growth, Colgate-Palmolive stands out as a leader in the consumer packaged goods space. With a strong digital transformation vision and strategic partners that tout the technical capabilities and expertise to bring it to life, Colgate and its extended supply network has been able to reap the benefits of digitally-infused agility, resilience and efficiency to outcompete in today’s marketplace.
The session will cover Colgate-Palmolive’s vision for transforming its supply chain planning and execution, highlighting the imperative to enhance supply chain synchronization and collaboration.
Nulogy and Kinaxis join Colgate-Palmolive in this talk to discuss how their best-of-breed solutions in advanced planning and scheduling and supplier collaboration have played pivotal roles in interconnecting Colgate’s network.
Speakers include:
Moderator: Christine Barnhart, CPIM Chief Marketing and Industry Officer, Nuology
Panelist: Kevin Wong Chief Operating Officer, Nulogy
Panelist: Polly Mitchell-Guthrie Supply Chain Thought Leader, Kinaxis
Panelist: German Vizcaya Leon VP Global Planning, Colgate-Palmolive
Check out the complete Colgate-Palmolive case study by visiting https://bit.ly/3z6xwPK.
Austin, TX - (September 3, 2024) – AutoScheduler.AI, an innovative Warehouse Orchestration Platform and WMS accelerator, announces the company is sponsoring a webinar hosted by DC Velocity magazine to discuss PepsiCo/FLNA’s (Frito Lay North America) warehouse transformation using AutoScheduler.AI’s AutoPilot.
Keith Moore, CEO of AutoScheduler.AI, and Peter Hanna, a leader at PepsiCo, will share how AutoPilot is revolutionizing operations at PepsiCo/FLNA. Faced with rising demand, shrinking margins, and complex operations, PepsiCo turned to AutoScheduler.AI’s cloud-based AutoPilot platform to optimize warehouse operations and improve efficiency, including a 30% increase in product picks per hour.
“PepsiCo has been focused on driving value for customers through innovative supply chain processes that improve fulfillment times, reduce operating costs, and maximize productivity,” says Keith Moore, CEO of AutoScheduler.AI. “Our AI algorithms can prioritize customer orders based on predefined rules and criteria while considering warehouse constraints, which helps to improve customer satisfaction and overall profitability.”
At the free webinar on September 12, 2024, at 2:00 PM ET, attendees will:
•Learn how AutoPilot unifies data across systems for better visibility.
•Discover how advanced algorithms maximize productivity and minimize costs.
•See how AutoPilot provides comprehensive, real-time insights for informed decision-making.
•Hear about the impressive gains at PepsiCo/FLNA, including a 30% increase in picks per hour.
AutoScheduler.AI AutoPilot smooths warehouse operations by orchestrating and planning all activities in real-time on top of an existing WMS. It considers space, time, labor, dock doors, and more constraints to ensure that orders are fulfilled on time and in full. Clients gain efficiencies and value in their supply chains through optimized labor, schedules, touches, and inventory.
To register for the free webinar, visit: https://event.on24.com/wcc/r/4676523/A2108DE2BC89DF1C73F2FCB1C1A5863F?partnerref=auto
About AutoScheduler.AI AutoScheduler.AI orchestrates warehouse activities directly on top of your WMS, optimizing operations for peak performance. Developed alongside industry leaders like P&G and successfully deployed at prominent companies such as Pepsi, General Mills, and Unilever, our AI and Machine Learning platform seamlessly integrates with your existing systems. Focused on labor planning, inventory workflow, human-robotics interaction, and space utilization, we streamline operations, reducing travel and inventory handling while maximizing OTIF rates and labor efficiency. With prescriptive analytics driving insights, our clients harness the power to enhance efficiencies and generate value across their supply chains. Reach out to us at info@autoscheduler.ai for more information.
GreyOrange Inc., a leader in AI-driven fulfillment automation, was recently recognized as a Sample Vendor in the 2024 Gartner® Hype Cycle™ for Mobile Robots and Drones report. GreyOrange views its inclusion in four categories – Multiagent Orchestration (MAO), Mobile Sortation Robots, Smart Robots, and Mobile Robotic Goods-to-Person Systems – as confirmation of the company’s role in driving innovation and efficiency within the rapidly evolving robotics landscape. The report focuses on practical applications of mobile robots and drones, leaving detailed technological aspects to other Hype Cycle reports.
The 2023 Gartner Supply Chain Technology User Wants and Needs Survey found continued strong interest in, and deployments of, robotics and automation, with 92% of the respondents saying they were investing, or planned to invest, in robotics over the next two years. GreyOrange believes the 2024 Gartner® Hype Cycle™ for Mobile Robots and Drones report highlights the critical role of mobile robots in transforming supply chain operations and addressing the challenges posed by labor shortages and increasing order volumes.
According to the report, “Demand for, and investment in, mobile robots and drones is robust and will remain so for the foreseeable future.” The report also details, “As companies deploy heterogeneous fleets of robots, integrating and coordinating tasks between these robots becomes more difficult, which will require an orchestration capability across robot platforms. This will introduce the need for an additional software layer to support these activities.”
This year, GreyOrange introduced two new intralogistics and case pick robot solutions - the Ranger Forklift XXL for case picking and the Ranger Forklift AnyPallet for closed pallet handling - to its Certified Ranger NetworkTM (CRN) ecosystem in response to labor and order volume needs. During MODEX this year, GreyOrange also welcomed partner solution Cypher Robotics’ CAPTIS, an autonomous cycle counting solution, to the CRN.
The CRN solutions are powered by GreyMatter, GreyOrange’s warehouse execution systems (WES) platform that enables real-time, multiagent orchestration among various robotic technologies, people and automation systems. Leveraging GreyMatter, customers can reduce fulfillment cost per unit (CPU) by 50%, decrease worker onboarding time by 90%, and improve peak season performance. These innovations further demonstrate the company’s innovation of robotics solutions for the evolving warehouse landscape.
“We are honored to be recognized by Gartner, as it is great to see some of the categories like Multiagent orchestration coming to life as we define the next generation roadmap for them,” said Akash Gupta, Co-Founder and CEO of GreyOrange. “We strive to continually advance fulfillment automation to meet and exceed the needs of our customers in an ever-changing and demanding market where supply chain optimization and execution are of top importance.”
GreyOrange’s fulfillment solutions help customers meet the growing demands for faster deliveries, reduce operational costs and tackle labor challenges. By leveraging advanced robotics and AI, GreyOrange's fulfillment solutions are designed to significantly improve operational efficiencies, adaptability, and actionable visibility in today's digital marketplace.
Download the Hype Cycle™ for Mobile Robots and Drones 2024 report, compliments of GreyOrange by visiting https://bit.ly/4cKZCh4.
FOR IMMEDIATE RELEASE – MELBOURNE, FL, AUGUST 27, 2024 — Element Logic Co-founder, Dag-Adler Blakseth, passes the baton to Ankush Malhotra effective immediately.
Ankush Malhotra will be the new Group CEO of the technology and automation company Element Logic. He is taking over from Dag-Adler Blakseth, who co-founded the company nearly 40 years ago, and who is stepping down from the day-to-day operations after 30 years at the helm.
"Ankush Malhotra is the right person to lead the company forward in what will be a significant global endeavor," Dag-Adler Blakseth, former Group CEO of Element Logic, said.
"I am truly honored to take on this role and look forward to join this great company with a rich legacy,” Ankush Malhotra, said. “Element Logic has undertaken an impressive growth journey and has great ambitions for the next chapter. I am excited to join a passionate team and am committed to create value for our customers and help the business move forward in the years.”
Malhotra is based out of London and brings relevant experience from his 18 years at Danaher/Fortive/Fluke. He has held various positions in the US and in the UK, with the last four years as President of Fluke Reliability, an innovation leader in the markets it serves.
"With the global expansion the company is now aiming for, it is a natural time to pass the baton. Ankush Malhotra is an ambitious and internationally experienced leader who understands what it takes to succeed as a global company,” Blackseth added. “His leadership style and principles align well with what Element Logic stands for and aspires to be. His vast knowledge in managing a complex growth company in a global market, make him an ideal candidate for the next part of our journey.”
Blackseth will now step into the role as Chairman of the Board.
Ambitious growth plans ahead
In recent years, Element Logic has expanded significantly, extending its distribution to new markets. During the past three years, the company has gained presence in seven additional countries, reached two new continents, and increased its employees by over 700 people worldwide. Now, the goal is to continue capturing additional market shares, and become the leading global integrator for automated warehouse solutions.
"Element Logic’s next chapter is an exciting one. We have ambitious goals to increase our market share across the globe through international expansion, and an increased product and services offering.” Malhotra concluded. “Together with the talented team at Element Logic, I will use my experience and knowledge to serve our customers and drive profitable growth while continuing to foster an employee-focused culture.”