3PL

The search for a new CEO for Minneapolis, Minn.-based global logistics services provider and freight forwarder C.H. Robinson has come to an end, with the company announcing today it tabbed David Bozeman to take the position, effective June 26. Bozeman will also serve as a member of the company’s Board of Directors.

Company officials said that this new office will support customers throughout the greater Phoenix area, as well as southern Arizona. And they added the office will, at first, be the location for the company’s local sales, business development and administrative staff, with a focus on providing logistics services for current and also emerging industrial and manufacturing businesses and also their suppliers in Arizona’s Silicon Desert region.

Lakeland, Fla.-based 3PL Saddle Creek Logistics Services said this week it is taking steps to expand existing warehouse and fulfillment operations in four key United States-based markets. Company officials said that the objective of this initiative is to support the needs of both new and prospective customers.

The company said that it is adding staff associates and opening up new locations in Chicago, Illinois and Edison, New Jersey.

The topic of recessions—both for the general United States economy and the freight economy—was a key theme in a webcast hosted earlier this month by Jeff Tucker, president of Haddonfield, N.J.-based Tucker Worldwide, the nation’s oldest freight brokerage, which featured Lee Klaskow, Senior Global Transportation & Logistics Analyst and Sector Head, for Bloomberg Intelligence, a division of Bloomberg LP.

The period from mid-2020 to the fourth quarter of 2022 was a high-water mark for the container shipping industry, and with it came unprecedented turmoil, disruption, and prosperity, and that period was, above all, a period of extremes: extreme rate rises, extreme container and labor shortages, extreme delays, extreme congestion, and extreme chaos for exporters and importers alike, this time it's different.

Second quarter revenue rose 12% annually to $2.3 billion, for a new company record. And the company reported $25 million of net income attributable to GXO, down from $37 million a year ago, and $158 million of adjusted EBITDA. Adjusted earnings per share came in at $0.49, topping Wall Street expectations of $0.44. Operating income came in at $42 million, up 14% year over year compared with $37 million for the first quarter 2022.

Fulfillment services have largely been the domain of 3PLs, and needless to say, not all 3PLs are created equal when it comes to eCommerce expertise and omnichannel efficiency, and given the central role a fulfillment partner plays in the customer's journey and overall satisfaction, retailers cannot afford to choose a 3PL that lacks the means to meet their clients' expectations.

Over the last few decades, outsourcing has morphed into an essential way for businesses to leverage existing expertise without having to invest significant resources into peripheral disciplines.

Logistics Management Group News Editor Jeff Berman recently spoke with Michael Farlekas, CEO of Austin, Texas-based connected supply chain software platform services provider e2open. Farlekas provided Berman with an overview of various topics, including: a return to supply chain normalcy; inventory management, and sourcing options for shippers, among others.

The 2023 report, the tenth in a series of annual industry reports published by MHI and Deloitte, provides updates on the innovative technologies that have the most potential to transform supply chains into more transparent, sustainable, and responsible operations.

The company said the new mobile app is a major part of its software roadmap.

Total February volume—at 1,248,569 units—fell 7.3% annually. Trailers—at 61,211—saw a 27.6% annual decline, and domestic containers—at 611,460—were down 4.3%. All domestic equipment, which is comprised of trailers and domestic containers, were down 7.0%, to 672,671. ISO, or international, containers—at 575,898—dropped 7.6%.

Logistics Management Group News Editor Jeff Berman recently spoke with Adam Satterfield, CFO of Thomasville, North Carolina-based national less-than-truckload (LTL) carriers Old Dominion Freight Line about various industry trends and themes, including: the current state of the LTL market, the freight economy, rates and pricing, and supply chain shifts, among others.

DSV said that the objective of these acquisitions are three-fold: to augment its position within the semiconductor industry; align with its new Phoenix-Mesa Gateway Airport operations; and support its growing cross-border services into Latin America. It added that these acquisitions are expected to be made official next month.