3PL

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.

The ATA’s advanced Seasonally Adjusted (SA) For-Hire Truck Tonnage Index, for February, came in at 118.4 (2015=100), for a 1.2% increase, over January’s 117 reading.

Phoenix-based Knight-Swift Transportation, already the biggest player in the TL market at $4.5 billion revenue last year, is buying Chattanooga, Tenn.-based U.S. Xpress, which ranked ninth in TL revenue last year at $2.2 billion. The deal is valued at $808 million, including assumption of $484 million of debt.

The American Trucking Associations (ATA) expressed what it called its “grave concerns” about media reports that the Environmental Protection Agency (EPA) may be on the verge of granting the state of California waivers to implement potentially harmful and unrealistic emissions rules on the industry. Under California rules, new Class 8 heavy truck models would be zero-emission next year. Diesel and gasoline-powered drayage trucks must retire after 18 years to guarantee that they meet a zero-emission requirement by 2035.

The Port of Los Angeles reported that February volume—at 487,846 TEU (Twenty-Foot Equivalent Units)—were down 43% compared to February 2022. The Port of Long Beach reported that total February volume—at 543,675 TEU—dropped 31.7% annually

For January, the most recent month for which data is available, the TCI came in at -1.71, a significant improvement over December’s -6.1 and November’s -7.94. That was preceded by October’s -11.25, its lowest level since the April 2020 all-time low, at -28.66. The September TCI reading came in at -2.35.