While fuel surcharges skyrocket, carriers must get creative


Good morning! It’s National Blueberry Muffin Day, which is as good a reason as any to enjoy a sweet treat for breakfast this morning… 🫐

Accessorial charges have long been a headache for merchants, but carriers have a vast array of additional charges put upon - them besides the normal drayage fees, of course. Now, the fuel surcharge is growing on most carrier invoices as well, and managing those inflating charges is requiring some creativity.

Check out today’s featured article from Supply Chain Brain to read about some of the creative methods shippers are implementing to better manage the rising shipping costs. ☕️

Gas gauge moving from Empty to Full.

Gas Station Car GIF By Shell via GIPHY


Featured Article:

Five Ways to Manage Shipping Costs as Fuel Surcharges Soar | Supply Chain Brain

“Navigating accessorial charges — the additional fees that carriers charge on top of base delivery costs — is among the most challenging aspects of managing shipping costs for online merchants.”

read the entire supply chain brain article here

Water Cooler Topics

🚔 The Commercial Vehicle Safety Alliance (CVSA) enforcement blitz has begun! July 10th through the 16th is this year’s “Operation Safe Driver Week” throughout North America, a week-long operation. Law enforcement representatives will be heavily monitoring both passenger and commercial vehicle drivers for any unsafe behaviors that could jeopardize them or the drivers around them. These behaviors include drunk driving, improper lane changes, and tailgating. Be on your best behavior, drivers!

👩‍⚖️ AB5 is officially in effect for the trucking industry in California. With the injunction lifted after the Supreme Court's decision to decline a review of the AB5 law, carriers are scrambling with what to do regarding any Owner-Operators on their roster. The California Trucking Association has compared the SCOTUS decision to “pouring gasoline on a fire, which is the ongoing supply chain crisis.”

🚢 DHL Global Forwarding and Hapag-Lloyd have agreed to a partnership to further the sustainability goals of both companies. Hapag-Lloyd is shipping 18k TEU’s and decarbonizing the heavy transport with advanced biofuels such as FAME - a fatty acid methyl ester. The newer fuel tech will lower greenhouse gas emissions by over 80% and further push the companies towards their 2050 and 2045 net-neutrality goals.


Supply and demand spurn a Mexican beer shortage

There has been an extreme demand for Mexican beer and sellers are struggling to keep their shelves well-stocked. During the pandemic, sales of Mexican beer plummeted - but have surged to new heights in the following years, creating a whiplash effect.

Domestic and international demand for Mexican beer is more to blame for the shortages than supply chain snarls, according to Jose Ramon Ruiz, a supplier of malt imported beer from Germany and the U.S.

Read more from Supply Chain Brain ▶


June boasted 372k new jobs offered by employers

While the unemployment rate continues to hover at 3.6%, employers still added new jobs to the roster in droves. Woes about the U.S. labor market have made many nervous in recent months, but in the month of June, companies created 372,000 new jobs. However, this is less than the month before - where 390,000 were added.

The Bureau of Labor Statistics offered insights into the hiring data, showing that most gains occurred in professional and business service industries with leisure and hospitality coming in at a close second.

Read more from Fox Business ▶


Warehousing 📦

Watch: The Rise of Hyperlocal Fulfillment Centers | Supply Chain Brain

“Balmiki Bhattacharya, vice president and market sector leader of the industrial practice at Nelson Worldwide, explains the concept behind “hyperlocal” fulfillment centers, and the criteria that retailers should consider when creating them.”


Fuel ⛽️

Fuel economy will always be important | CCJ Digital

“When we talk about fuel economy we often focus on diesel-powered vehicles.”


Business Strategy 💡

Walmart Expands Program That Delivers Right to Your Fridge | TT News

“Deliveries are going beyond the front door.”

'Be holistic on third-party procurement risk' - Santander UK | Supply Chain Digital

“In April 2022, Procurement Magazine, Supply Chain Digital, and Bizclik Media Group returned to London’s Tobacco Dock to host our second Procurement & Supply Chain LIVE.”


Safety 🦺

U.S. safety regulators to probe crash involving self-driving car from GM-backed Cruise | CNBC

“Federal vehicle safety regulators will investigate a crash last month in which a vehicle struck a self-driving car from General Motors-backed Cruise.”


Company Culture 🎉

Ex-Disney workers sue, claiming religious discrimination | AP News

“Three former employees have sued Walt Disney World, saying they were fired after refusing to wear face masks and get the COVID-19 vaccine due to religious reasons, according to a lawsuit.”

Network Association 🤝

Amazon Ordering In; Importing Baby Formula; Europe’s Gas Squeeze | The Wall Street Journal Logistics Report

“Amazon is inching deeper into meal delivery.”


Electric Vehicles 🔋

Belaboring the obvious | CCJ Digital

“A statement is said to be “self-evident” when it is stating something that everyone already knows and understands.”


Industry Forecast 📊

Spot Market Decline Accelerates as Demand Softens | TT News

“Trucking’s spot market is experiencing an accelerating decline as pre-pandemic conditions re-emerge.”

Logistics economy expanded in June | DC Velocity

“But growth slowed for the third straight month, marking a steep decline from record-level expansion in March, LMI researchers said.”

ISM Manufacturing Index Down in June | MHL News

“ISM' s June Manufacturing PMI registered 53%, as reported on July 1.”


Owner-Operators 🚛

Forget speed limiters: Safe parking, highway infrastructure should be top priority | Overdrive Online

“Why do those who have no clue try to fix that which is not broken?”


Trade & Border Issues 🗺

The State of Global Trade - Bullwhips vs. Full Ships | Flexport

What is the state of international trade? Will demand for goods remain robust?”


Quote of the Day:

Truck side mirror reflecting a purple sunset sky.

“Diligence is the mother of good luck.”

— Benjamin Franklin, a Founding Father of the United States



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