The food and beverage industry is enormous, including subindustries like grocery, restaurants, bars, catering, and more. The industry continues to evolve and adapt despite frequently changing consumer preferences and new, complex challenges. So, what’s currently affecting those in food and beverage? In this blog, we’re going to dive into some of the latest trends in the food and beverage industry.

TRENDS IN THE FOOD AND BEVERAGE INDUSTRY

CONTINUED COLD CHAIN GROWTH

SUSTAINABILITY

LABOR SHORTAGES IN FOODSERVICE

CONSUMERS ARE MORE COMPLEX

SUPPLY CHAIN CHALLENGES

ARTIFICIAL INTELLIGENCE & AUTOMATION

GROWING COLD STORAGE DEMAND

CONTINUED COLD CHAIN GROWTH

One of the well-known trends in the food and beverage industry is the continued growth of cold chains. Recently, a Grand View Research study shows that the cold chain market was estimated at USD $330,680 billion in 2023. Furthermore, it’s estimated to grow at a Compound Annual Growth Rate (CAGR) of 14.8 percent from 2024 to 2030.

Recently, there’s been an increased demand for temperature-controlled pharmaceutical logistics (think vaccines and biologics), rising demand for better food quality, including more fresh and frozen foods, and a surging need to reduce food waste. All this is anticipated to drive the market’s growth. 

In light of the pandemic, the risks of COVID-19 have made consumers more interested in healthier, less processed foods that will boost their immune systems. However, less processed foods mean more food products that will need temperature control.

Additionally, the frozen food sector looks to be growing. Besides filling home freezers, frozen foods are growing in restaurants. Restaurants are also providing new menu items for the frozen grocery aisle. In an American Frozen Food Institute report, 72 percent of frozen food consumers said they combine frozen and fresh ingredients in their meals.

Comparatively, shippers are also using more cold chain services to preserve the shelf life of their products, even when temperature-controlled transportation isn’t needed.

SUSTAINABILITY

Growing climate issues are making sustainability a common trend in almost all industries. Consumers are taking notice of the sustainable practices of companies. From ethical sourcing, carbon neutrality, to eco-friendly packaging, consumers want the brands they buy from to be sustainable. Additionally, food waste is a major contributor to greenhouse gas emissions globally, contributing to cold chain issues. This makes sustainability one of the top trends in the food and beverage industry.

Consumers Care About Sustainability

One way consumers can show their support for the environment is by choosing to purchase from sustainable brands. Consumers have shown they’re willing to pay more and be loyal to brands that invest in their sustainability efforts. In a survey by YouGov, more than half of consumers said they would be willing to pay up to 10 percent more on sustainable versions of regular packaged food and drinks. In another consumer survey, 78 percent of respondents agree that sustainability is import, with 63 percent stating they have adopted greener buying habits.

Food Waste Prevention

In fact, an S&P Global Ratings report says food waste contributes to 10 percent of emissions and that $1 trillion of food is wasted each year. Similarly, according to the U.S. Environmental Protection Agency (EPA), between 73 to 152 million metric tons of food get wasted each year in the U.S. The most wasted foods are fruits and vegetables, followed by dairy and eggs, with over half of all waste occurring in households and restaurants. In addition, the food processing sector generates 34 million metric tons of food waste per year. And over the past decade, the total U.S. food waste has increased by 12 percent to 14 percent.

To put it differently, the EPA said halving food waste in the U.S. would save 3.2 trillion gallons of water, 640 million pounds of fertilizer, 262 billion kilowatt-hours of energy, and 92 million metric ton equivalents of carbon dioxide. According to the Agency, reducing the waste of meats, cereals, and fresh fruits and vegetables would have the most significant impact.

Due to this growing issue, governments and businesses have been working hard to improve sustainability efforts. In July 2021, the Zero Food Waste Act was introduced to provide grants to businesses that significantly reduce their food waste. Additionally, in November 2021, the Food Donation Improvement Act was introduced to lower food waste by making it easier for companies to donate food instead of throwing it out.

Cold chain improvements have seen growing importance even outside the food and beverage industry. One example is UPS Healthcare developing a system and opening facilities to move medicines safely. Part of their plan includes using reusable cold chain packaging. In addition, Amazon is working on insulation packaging to reduce material waste and replace 735,000 pounds of plastic film, 3.15 million pounds of cotton fiber, and 15 million pounds of non-recyclable plastic.

LABOR SHORTAGES In Foodservice

Labor shortages are common among other industries, making this another relatable trend in the food and beverage industry. As a result, hiring workers in the U.S. is becoming near impossible. According to a recent market report, labor shortages are a top concern for 23 percent of food and beverage businesses. The most difficult positions to fill look to be those in the restaurant and foodservice sectors. It’s not just the hiring of new workers, but retaining them as well.

Workers are leaving the industry due to a combination of burnout, low wages, and a desire for better work-life balance. Because of this, restaurants and foodservice companies have had to reduce their hours or limit their menu, while consumers have felt it in longer wait times and less personalized service. With good customer experiences being paramount to a company’s success, resolving this issue is critical.

For this reason, advanced technology can help remove some redundant tasks and help supplement amidst labor shortages. For example, those in the bar sector are being introduced to self-pour technology, which uses RFID tracking and allows customers to pour their own beverages. .

CONSUMERS ARE MORE COMPLEX

Over the years, consumers and their choices in food and beverage and their preferred shopping habits, have become more complex. Because of this, there is a greater assortment of products than ever, with more items requiring temperature control as consumers move away from processed foods and look for fresher, healthier items. Consequently, the supply chain for grocery continues to evolve as the message from consumers is clear. They want what they want, when they want it, where they want it, and expect businesses to respond to their demands.

Continued Decline of In-Person Shopping

In speaking to consumer shopping preferences, it looks like online grocery shopping, food delivery, and food subscription boxes are here to stay. Many consumers prefer the option to receive food and beverage products at their door. For instance, in recent a study by Drive Research, the use of grocery delivery services in 2024 have risen 56 percent compared to 2022. Additionally, the use of grocery curbside or pickup in 2024 have risen 100 percent compared to 2022, further showing the decline of in-person shopping for food and beverage items.

Cost of Food and Beverage Products a Large Concern

Additionally, inflation and rising costs for everyday items, including food and beverages, have consumers rethinking how much and what brands they buy. For example, a recent study showed 54 percent of respondents stating they’ve reduced how much, and unfortunately, 20 percent said they were skipping meals to save money on food. Data from another survey found that 43 percent of consumers are cooking dishes with less meat to save on grocery costs. Others are choosing to purchase cheaper cuts of meat.

Private label brands continue to see growth as shoppers look to save money whenever possible. In fact, according to Numerator, private label brands hold almost a quarter of sales in the grocery sector. The Private Label Manufacturers Association shows that private label sales saw 2.5 percent growth compared to a decline of 0.8 percent by national brands in 2024.

Taste and Experience is a Must

Consumers want to feel good about what they eat. They want nutritious options that alight with their dietary preferences or health goals. In a survey but the International Food Information Council, 54 percent of consumers consider the healthfulness of food in their purchasing decision. Yet, even with the health benefits, they still want their products to taste good, as Datassential shared 35 percent of them purchase items that sound both delicious and healthy.

Consumers are interested in trends like unprocessed foods, natural ingredients, anti-inflammatory, and hydration. Alcohol-free and non-alcoholic beverages are also a rapidly growing trend, with 2 in 5 consumers abstaining from drinking alcohol.

Consumers generally want a positive experience with food and beverage products. While it’s fuel for the body, it can also serve as a source of community, entertainment, and more. In one study, 53 percent of consumers see experiences as essential to their personal lives, especially among the younger generations since the pandemic. They’re interested in trying to tastes and spices, products that bring a sense of nostalgia, or food and beverages that tie in with a story, as shown by the recent increase in pop-up restaurants and bars.

supply chain Challenges

Since the pandemic, supply chains have been seen more of the limelight. As shown by rising costs faced by consumers, food and beverage supply chains have been challenged by shortages of raw materials, disruptions like strikes or a bridge collapse, and a growing demand by consumers for transparency and speed.

Consumers are also becoming more interested in knowing where the products they buy come from. According to a study by IBM, nearly 70 percent of consumers want to see a brand’s sourcing practices. They want to know how the products they buy were manufactured. They’re looking for companies who show concern to how their manufacturing affects the planet’s life span and how their product is raised or grown. Consumers want to feel like the products they choose to buy will make a difference.

According to a Mckinsey report, food and beverage supply chains see supply chain disruption roughly once every three years. A 2023 risk report shows that supply chain executives are concerned about disruptions from climate change, environmental factors, and geopolitical conflicts. Another risk report shows that 73 percent of companies experienced higher supply chain losses within that past two years. Because of this, building supply chain resiliency is a huge trend for food and beverage companies.

ARTIFICIAL INTELLIGENCE & AUTOMATION

Artificial intelligence (AI) is a buzzword across all industries, but how could it affect food and beverage? One way is through providing clearer insights into shopper preferences, helping companies better market to them to grow brand loyalty. It can help with supply chain optimization, helping businesses better understand consumer demand and optimize production planning and management, reduce overstocking, and minimize waste. Some companies, like Campbell Soup Co., are using AI to help with product development, tracking data and discovering what its customers want next.

According to WifiTalents, 62 percent of food and beverage executives believe AI will have a significant impact on their industry within the next five years. With the uses for AI in the food and beverage industry being so extensive, it will be interesting to see how companies make use of it.

There’s also a lot to be talked about in AI and automation for the customer experience. Companies are looking into AI-driven customer service opportunities and ways to streamline customer interactions. You see a lot of this in the restaurant industry with the use of table side tablets, interactive menus, and mobile ordering and payment. AI is used in mobile apps to personalize menus and promotions based on customer preferences.

Growing Cold Storage Demand

The demand for refrigerated warehouses is continuing to soar to new heights. A report from Skyquest forecasts the U.S. cold storage market to increase with a compound annual growth rate of 13.5 percent through 2031, expecting to reach a value of $118.8 billion.

Temperature-controlled storage is critical to many sectors, from grocery to pharmaceutical companies. The growing demand for cold storage facilities comes the adoption of automation and technology, the popularity of ecommerce and demand for faster delivery, as well as online grocery platforms. There’s also a thriving demand for convenience foods – those that are usually chilled but ready to eat with little to no preparation.

STAY AHEAD OF TRENDS IN THE FOOD & BEVERAGE INDUSTRY

No matter the trends in the food and beverage industry, having a logistics resource, consultant, or expert is one way to stay ahead. Whatever phrase you want to use but ultimately, have support on your side for any complex situation. This is where a third-party logistics company (3PL), such as Trinity Logistics, can come in. We can help you find creative solutions to your logistics challenges.

Now, you’re likely wondering, “why work with Trinity Logistics?” For one, we’ve been serving cold chains for over 45 years! Whether you have a complex challenge or just need help with one shipment, we have the experience and quality carrier relationships to meet your needs.

You can also count on us to stay knowledgeable on what’s going on in your industry so you can stay updated too. We know that even in times of supply chain disruption, your industry doesn’t stop, so neither do we.

And lastly, what makes Trinity unique from other 3PLs and what our customers praise the most is our exceptional People-Centric service. We’re a company built on a culture of family and servant leadership, and that culture shines through in our service to you. It’s our care, compassion, and communication that you’ll notice and appreciate.

If you’re ready to have Trinity Logistics on your side for logistics support and expertise, no matter the industry trends, then let’s get connected.

Many of today’s manufacturing trends are in line with the industry’s goals to improve processes, create more efficiency, and meet consumer demand.

The manufacturing industry has seen challenges, from changes in the way people work to the rapid growth in demand, with many of these challenges accelerated by the recent covid-19 pandemic.

So, what evolutions and challenges are the manufacturing industry currently facing? Let’s dive into the latest manufacturing trends.

WHAT ARE THE LATEST TRENDS IN MANUFACTURING?

• DIFFICULTY FINDING LABOR
• DIVERSIFYING WORKFORCE
• TECHNOLOGY IS TAKING OVER
• INCREASING CYBERSECURITY
• CARBON NEUTRALITY
• BUILDING RESILIENT SUPPLY CHAINS

DIFFICULTY FINDING LABOR

Manufacturers are still struggling to find labor, with a recent Deloitte survey estimating that the manufacturing sector will be short 2.1 million skilled workers by 2030. It’s difficult for manufacturers to fill open positions, with respondents claiming it is 36 percent more difficult to recruit than in 2018.

To combat the shortage, manufacturers are looking for ways to recruit and retain skilled talent, by raising wages and reskilling current talent to meet company needs. According to the Manufacturing Institute, young employees are attracted to companies that look to train and invest in them. 70 percent of manufacturing workers under 25 said they will stick with an employer because of these opportunities to grow.

Additionally, technology is advancing and should help manufacturers combat their labor challenges. With tools like artificial intelligence (AI) and the Internet of Things (IoT) becoming more accessible, companies should be able to become more efficient and able to produce more with fewer people.

DIVERSIFYING WORKFORCE

Diversifying the workforce is one of the growing manufacturing trends because the industry has held a reputation for being a male-dominated industry. According to a study by the Manufacturing Institute, less than 30 percent of manufacturing workers are women. So, in 2021, the Building Economic Strength Through Manufacturing Act was passed. This bill seeks to double the number of women-owned and minority-owned manufacturers.

According to Glassdoor, when applying for jobs, 76 percent of applicants look for company diversity. Diversifying the workforce is a trend that goes in hand with employee recruiting. It creates opportunities for new talent and can help make operations more resilient.

TECHNOLOGY IS CHANGING THE INDUSTRY

Technology changing the industry has been and will be a manufacturing trend for some time. Technology is improving, becoming more accessible, and showing its benefits, so many manufacturers are investing in it more. Manufacturers need technology to keep up with the challenges of increased demand while facing a labor shortage.

Some technology tools companies are using include AI, automation, sensors, IoT, robotics, predictive maintenance, and remote monitoring. These tools help manufacturers with the manual and repetitive tasks that they struggle to find the labor for. In addition, companies are evaluating their operations to make the best use of technology and people.

Frontline workers will likely expand their roles to take on new responsibilities. As technology automates processes, workers will need to use more communication, collaboration, and analytical skills. Technology will also offer more flexibility and safety for frontline workers, further helping with employee recruiting and retention.

Some manufacturers are even pushing the limit and testing our “dark factories”. These are fully automated factories without any human workers on site.

Industry 4.0 is what many refer to as this trend of technology. It’s a shortened term for what is being called the fourth industrial revolution. Industry 4.0 technologies, such as the above examples, can raise productivity by 40 percent.

INCREASING CYBERSECURITY

As technology use increases and manufacturing processes get more connected and complex, a growing challenge is cybersecurity. In 2021, manufacturing was the industry that suffered the most cyberattacks, according to IBM’s X-Force Threat Intelligence Index. In fact, according to a survey by Omdia, the increasing risk of cyber attacks are one of the main challenges slowing down the implementation of more analytics, automation, and AI in manufacturing.

Because of its increased risk for cyber attacks compared to any other industry, manufacturing companies are investing more in the cybersecurity strategies and monitoring, implementing the use of multi-factor authentication, issuing employee training on cybersecurity, and building recovery plans to be prepared should any attacks take place.

CARBON NEUTRALITY

Combatting climate change is a priority on everyone’s mind and the manufacturing industry is no exception. The manufacturing industry produces almost a quarter of global greenhouse emissions. However, with the government pushing industries towards sustainability, manufacturing companies are rethinking their operations.

One manufacturing trend is carbon neutrality. Carbon neutral is when a company removes the same amount of carbon dioxide it emits into the atmosphere.

Manufacturing companies can become carbon neutral by purchasing carbon offsets. An example of this would be a company sponsoring a solar energy farm or a project for reforestation.

BUILDING SUPPLY CHAIN RESILIENCE

Since the start of the covid-19 pandemic and the supply chain bottlenecks we continue to face, supply chain resilience remains a top manufacturing trend.

Supply chain bottlenecks like the covid-19 pandemic, high container costs and delays, severe weather, protests, and new regulations are a few of the disruptions that have shed light on manufacturers’ fragile supply chains.

Manufacturers continue to look for more resilience to keep up with consumer demand despite these challenges.

Improving communications with supply chain partners, onshoring or reshoring, and investing in supply chain technology are some of the ways manufacturers are making their supply chains more stable.

STAY AHEAD OF MANUFACTURING TRENDS

Whether you know the latest manufacturing trends are or not, having an expert on your side is one easy way to stay ahead. And that’s just what Trinity Logistics aims to be.

Yes, our primary focus is as your logistics partner, but our People-Centric culture means we’re more than that. As a business relationship, we’re invested in your company’s success. We stay knowledgeable on what’s going on in your industry to help keep you updated. And we stand at the ready to offer your business any logistics support and expertise that you need.

Don’t miss your opportunity to gain a business relationship that stays on top of your industry’s trends and is people focused. Let’s get connected.

There’s been a lot thrown at supply chains lately. The up and down Covid-19 surges, material shortages, increased consumer demand, and more. And we can’t forget to mention other factors like the new covid variants, port congestion, and dock delays.  

Many of you might be wondering what Trinity is doing to stay agile during these supply chain bottlenecks. Let’s first quickly dive into what the supply chain is currently facing, and then we’ll go into how Trinity keeps moving forward.  

Current Supply Chain Bottlenecks 

Labor Shortages 

I’m sure you’ve heard and seen all the effects of the labor shortages today. Whether the companies are big or small, or in fast-food or logistics, every single industry is facing this issue. 

Over the past 22 months, businesses have been hit hard with workers’ pandemic-related absences. According to an analysis from the Integrated Benefits Institute, these absences have cost employers more than $78.4 billion. That’s nearly $1 billion every week. 

Along with this, the new omicron variant is leading to more staff shortages as people take sick leave and suppliers navigate new restrictions. This includes factoring in China’s zero-COVID strategy, which is likely to continue to disrupt both production and transportation of goods, possibly for the entire year.  

However, backorders in many sectors have been filled, but consumer demand may well be cooling now that furloughs have ended, and interest rates are beginning to rise. So, some companies might end up with an oversupply of goods after everything is said and done.  

While some people thought that these issues would stay in 2021, the start of 2022 is showing no signs of slowing down these disruptions.  

The beginning of this year has been filled with high levels of return volume from the holiday season, along with the suspension of air on-call pickups for packages. All these issues are mixed effects from weather, omicron, labor shortages, and more.  

Struggling to Keep Shelves Full 

A direct effect of the worldwide labor shortages is businesses struggling to keep shelves stocked. While Covid-19  rampages across the country, it’s not just healthcare and hospitality businesses feeling the effects. Grocery stores are getting gut-punched by the virus as well. 

Product shortages have been widespread throughout these 22 months of the pandemic. These shortages have varied in many different products, from toilet paper and hand sanitizer to different types of meat to even bread and soda. As a result, empty shelves have returned at supermarkets as grocery employees call out sick and truckloads of food arrive late.  

While all companies feel the effects of empty shelves, shipping companies, like FedEx are especially struggling with on-time delivery of packages and products due to the massive truck driver shortage nationwide. Unfortunately, the only solution currently for these issues is time.  

Ongoing efforts are continually in use to increase the recruitment and retention of truck drivers to combat these supply chain issues and stop bottlenecks from occurring.  

Struggling Imports 

Port congestion and backup is another huge issue facing the logistics industry and the entire world right now. Ports worldwide are seeing high wait times and a lower percentage of on-time delivery. In addition, many containers and ships are forced to dock and wait until they can be unloaded due to labor shortages.  

Although many different countries are facing this congestion and delay, no other is struggling more than China. Covid-19 flare-ups in China are straining supply chains as authorities tighten movement restrictions in various cities to stamp out the virus. 

Ningbo, a port city of around 8 million, is dealing with a partial lockdown. Its Beilun district has been especially hard hit, and that’s spelled major problems for the shipping industry. According to The Loadstar, “Many truckers live in Beilun, and there are complicated Covid-19 control policies there, so it’s extremely difficult to bring containers in or out.”  

With the Chinese New Year approaching, some cargo has been rerouted to the Port of Shanghai, which is already congested, The Loadstar reported. In addition, many smaller shipping services providers have already suspended operations this year ahead of the holiday, which starts on February 1^st.  

No Signs of Slowing Consumer Demand 

As of right now, however, demand is stronger than ever and shows no indications of an immediate post-holiday crash. As a result, changes on the demand front are likely to be slow and steady, leading to gradual market shifts over the next several months.  

Combined data from the OTVI and the OTRI indicates that accepted volumes were up three percent year-over-year in early December. Additionally, tender rejections are currently down about 25 percent year-over-year. Rejection rates are at their lowest levels since July 2020.  

Decreasing tender rejections indicates that freight is being moved at contract rates, which is a hopeful sign for shippers. Still, with a rejection rate of over 19 percent, strong demand and constrained capacity continue to stress the market.  

Unfortunately for shippers, spot and contract rates have continued to climb as demand surges, shortages drag on, and peak retail season continues. In early December, dry van spot rates rose to $3 per mile for the first time ever. Likewise, dry van contract rates reached an all-time high – $2.96 per mile – simultaneously, according to Arrive’s December market update. 

Shippers that can create more flexibility in their transportation strategies will fare best as conditions gradually improve in the upcoming year. Moving away from annual RFP’s in favor of shorter contracts, one-way shippers can take full advantage of any upcoming rate drops. While these shippers are also exposing themselves to slightly more risk in the event of unexpected rate hikes, taking a chance might pay off in 2022. 

How Trinity is Here to Help 

Keep You Updated 

At Trinity, we make sure we keep you up to date on all the industry’s information and news. We provide: 

• our monthly freight market updates 
• weekly news updates 
• monthly customer newsletters with industry-specific updates,  
• communications from your representative.  

Giving You The Trinity Experience 

Along with giving up-to-date news and information regarding every industry, we are also here to provide you with exceptional service and communication, especially when facing these bottlenecks. 

Hear from some of our Team Member Experts on how Trinity is staying agile during these times: 

• “Labor Shortage at the shipper or receiver due to COVID outbreak and/or protocols – day of pickup or delivery. Not a whole lot we can ‘solve’ but providing everyone involved with a friendly, calm, timely, communication goes a long way. We often talk about drivers but one area of our industry that seems to get less press are those shippers/receiver teams. The good ones are gold baby!” – Benjamin Bowne, Sales Executive 

• “I would echo Mr. Bowne’s assessment. Handling the conversations with carriers, customers, and warehouse alike with care and empathy goes a long way. Everyone has been impacted over the last year by the pandemic, it’s the experience that our overall Team provides throughout the transaction that has proven invaluable. This is echoed in the feedback we have received from all the parties throughout the pandemic. We care about what we do.” – Chad Eckland, Director of Sales 

• “We are being more agile by focusing on internal as well as external adjustments. A large percentage of our staff are working remote to avoid being short manpower due to illness. Those that are in person are participating in higher safety standards within each location. We are asking customers what are their Covid standards, when applicable, and how they are adjusting so we can conform to their needs. We are checking on trends for spiking locations across the U.S. to see how it will affect imports/exports and its affects of capacity in that area. This is a little harder to do but definitely on the radar. If a shipper/receiver is affected, then we prompt carriers to know what expected delays may occur while costing that into what we are offering carrier.” – Tony Austin, Director of Sales 

• “In addition to all the good points already mentioned, I would add that even though I always try to consider any and all viable solutions for my customers, I do a little extra now, because of the circumstances, to help educate customers on conditions, market changes, expectations, and challenges. In addition, I emphasize that I do look under EVERY rock to help them get their freight moved by leveraging all of the modes and resources we have available, as well as be thorough in understanding the factors to be considered in moving their freight (flexibility in dates, rates, modes?). I feel like we have more detailed and personalized conversations, and I provide an added level of insight to show customers that I am truly being a partner to help them through this difficult time.” – Kimberly Meadows, Sales Executive 

We Are Experts 

While this may be our first pandemic, after 40 years of being in this industry, it certainly isn’t our first season of supply chain disruption, high freight volumes and rates, or tight capacity.  

We are well versed and experienced in many different situations, and we know when and how to pivot quickly and keep business moving forward. We follow through on our efforts. When issues arise, we work until they are resolved and keep open communication every step of the way.  

We Help You Plan 

You can always use your Trinity relationship to discuss current and upcoming projects. This helps us give you things to look out for to keep your transportation aspect of business more stable and reliable.  

Having a solid relationship with an expert like Trinity will prove to be your largest asset no matter what supply chain bottlenecks you may face.

If your ready to get support in your logistics with Trinity Logistics, no matter what issue the supply chain has, lets get connected.

By: Christine Morris 

Over the last 18 months, the trucking industry has faced uneven supply and demand, congested ports, rising costs, a global pandemic, labor shortages, and a boom in online consumer spending. As a result, demand for truck capacity and rates remain elevated. What’s one thing straining capacity and raising rates? Dock delays and detention. Dock delays and detention not only affect truck drivers but shippers as well. In this blog, we’ll dive into what truck detention is, why it happens, how it impacts truck drivers and shippers, and how shippers can help reduce dock delays and detention.

WAITING, WAITING, WAITING…

According to a recent Trucker Tools whitepaper, wait times at shipper and receiver locations have increased compared to a year ago. As a result, delays at docks and detention ranked as the number one challenge carries currently face. While loading dock wait times have plagued the industry for years, recent woes have worsened them.

Nearly 60 percent of those surveyed reported waiting for longer than two hours on each load. This is in line with data collected by a DAT solutions survey showing that 63 percent of drivers say they spend more than three hours waiting when loading and unloading. Freightwaves also collected data on driver wait times. In June, average wait times were around the two-hour mark but are now showing past two and a half hours.

At the same time, 79 percent of those surveyed in the Trucker Tools whitepaper say that they never or rarely receive detention pay when they wait for more than two hours. Half of those surveyed reported receiving detention pay only if negotiated in advance. Of those surveyed, 65 percent responded that detention pay has not increased or otherwise improved in the last year.

WHAT IS TRUCK DETENTION?

Truck detention can be one of the most irritating things drivers have to deal with. When a driver arrives at a pickup or delivery location, there’s a built-in “free time” period in which the driver will wait while the truck is getting loaded or unloaded. This “free time” is what people consider to be a reasonable expectation for the time it should take the shipper to load the trailer or the receiver to unload it. This “free time” varies from carrier to carrier, but a good baseline for most is two hours. Anything over two hours is extra and considered truck detention. Once a truck driver has had to wait over their “free time” limit, they will often charge truck detention fees.

The carrier company decides detention fee amounts and the shipper or receiver handles payment of it. Generally, truck drivers will ask anywhere from $25 – $100 per hour to cover this extra waiting time. Most motor carriers will have a clause in their contract with the shipper or broker stating their detention fees. The purpose of truck detention pay is to compensate the driver or carrier when the shipper or receiver holds them up. You’ll find that truck detention is more common with full truckload shipments than with less-than-truckload (LTL).

WHY/HOW DOES TRUCK DETENTION HAPPEN?

There are so many factors that can cause truck detention to happen. In most cases, the driver is set back and not loaded on time by the shipper/receiver.

Truck detention is not for when the truck driver’s delay is on their own terms. This includes if their truck broke down, congested traffic, or being delayed by another pickup or delivery appointment. While some delays are not the shipper’s fault, American Transportation Research Institute (ATRI) found that customer inefficiencies were a major contributing factor to detention.

A lack of organization or lax attitudes on docks tends to create the problem of dock delays; shipments could not be ready to go, or the dockworkers may not be in as much of a rush as the truck driver. Additionally, warehouses may not be well organized to get the shipments ready in time.

As of late, there are also other factors to consider, such as the labor shortage. There could be a limited amount of dock workers or overworked workers, which doesn’t help the situation.

According to Business Insider, nearly 10 percent of all truckers recently said they’ve had to wait six hours or more. In addition, one in five drivers said that preloaded trucks weren’t ready by the time of their appointment, that products weren’t ready, or were still being manufactured. Delays were also attributed to shippers and receivers that overbooked appointments, booked more trucks than they had space to accommodate, or didn’t have the equipment to load and unload the trucks.

HOW TRUCK DETENTION IMPACTS…

Truck Drivers

Truck drivers say that waiting at warehouses for shipments is one of the most aggravating parts of their jobs.

Detention impacts the profits of carriers and uses up their valuable driving hours under Hours Of Service regulations. According to a survey by ATRI, 83 percent of truckers run out of available hours due to detention. In addition, according to a whitepaper by J.B. Hunt, of the 11 hours drivers have available to drive during a shift, an average of only 6.5 hours are spent on the road while the rest is wasted on detention.

A study by the Department of Transportation (DOT) found that because of detention alone, drivers lose an estimated $1.1 billion to $1.3 billion every year. In addition, the Inspector General’s audit report estimate that driver detention decreases U.S. truckers’ annual earnings by $1,281 to $1,534 or three to three point six percent of a driver’s annual income.

It also affects safety. According to the data from the FMCSA, in 2015, 415,000 crashes occurred involving large trucks. Detention time increases the risk of crashes by using up drivers’ available waking hours, contributing to fatigue while driving. The FMCSA report states that detention increases the likelihood of truck crashes involving fatalities or significant injuries.

Since truck detention delays drivers, it eats into their legal hours of service and causes further delays. Once a truck driver experiences a delay at one location, a snowball effect happens. The driver becomes delayed or misses their next appointment, causing even more possible detention, delays in supply chains, and most of all, lost pay. This can significantly eat into their pay.

Speaking of pay, according to a DAT survey, only three percent of drivers said they receive detention pay for at least 90 percent of their detention claims to shippers. Often, truckers are afraid to ask for detention pay. A study found that 20 percent of truck drivers who work for smaller companies don’t ask for detention pay to “remain competitive and maintain good relationships” with customers. Moreover, when carriers do receive detention fees, some don’t always pass along the money to the driver for their lost time and wages.

On top of not always being paid, a detention fee does not fully make up the cost of the driver’s stationary truck and lost time.

Truck drivers say that detention underlies a larger problem in the industry: a lack of respect for truck drivers. Every day, thousands of drivers arrive at their destination only to find no loading docks or crews available to unload the freight. In addition, there’s often no place to park while they wait. As a result, they end up searching for any place safe enough to park nearby. Some may find a rest area or truck stop, but those can fill quickly.

Other drivers aren’t so lucky and end up driving for extended periods searching for a place to park, ending up forced to park in less than desirable locations. This puts the driver in danger and overwhelms local infrastructure. An example of this is the overwhelmed Los Angeles port causing neighborhood streets to be clogged by trucks hauling or waiting to haul shipping containers.

Besides these scenarios, detention can also hurt a carrier’s business reputation with shippers.

Shippers

It’s crucial to note the impact of dock delays and truck detention goes beyond drivers and carriers. Detention reduces the amount of capacity that is available, making it a huge problem for supply chains.

It also impacts shippers financially. Detention fees come unplanned and cut into your profit. Detention fees can add up to hundreds of dollars per truck every day, which adds up to hundreds of thousands of dollars per year.

Regular detention affects your reputation. A survey showed that 77 percent of carriers are more selective in who they are willing to work with. Additionally, 80 percent of carriers stated there are facilities that they will absolutely not work with. According to an ELD survey, 43 percent of carriers say that the number of shippers/receivers they refuse to go to has increased since the ELD mandate was implemented. As a result, they can see better data on who consistently causes detention. Carriers state they also tend to avoid shippers with strict appointment times and don’t offer delivery windows.

Not all carriers will wait for you. Only 17 percent of carriers said they would wait as long as it takes to be loaded. The majority said they would only wait up to four hours before pulling their drivers from the shipment.

The effects of poor dock scheduling and detention can add up and result in more issues in your supply chain. This can include late deliveries, poor customer service, potential perishing of cold-chain products, loss of shipper of choice status, freight refusal by carriers, and higher freight rates. In addition, detention and delays hurt supply chain performance, carrier relationships, and impact labor costs. You can also face chargebacks from your customers who are unhappy about not receiving goods by the agreed-upon delivery date.

Considering the current market, shippers cannot afford carriers to blacklist them due to detention.

HOW TO MINIMIZE DETENTION AND DOCK DELAYS

Sometimes, delays are unavoidable, but it might shock you that your procedures could make you more vulnerable to delays. Effective dock scheduling and end-to-end visibility are critical to controlling costs and delays. In a report by Logistics Management, approximately 40 percent of an organization’s total freight spend is inbound freight costs. These costs come from poor dock scheduling, increased delays, detention fees, and other unexpected issues.

For shippers to reduce delays and detention fees, they need to understand how better dock scheduling can reduce risk and benefit them. Efficient dock scheduling amounts to better processes throughout your supply chain. This means more vendors, carriers, and customers will want to work with you.

There are many great ways to reduce or cut detention at your docks.

Staggered Appointment Times

One shipper told Uber Freight that they could save as much as $300 from detention per load just by staggering their pickup times.

Extended Facility Hours

Like staggered appointment times, adding more hours of operation can decrease congestion and lower detention for truckers. Having more time means you can space out appointments, and wait times decrease. Adding weekend and/or evening hours can go a long way.

Mode Specific Dock Doors

Having doors dedicated to different modes can help to keep things running smoothly. High-velocity doors and LTL doors can help ease congestion for drivers.

Adding More Dock Doors

Though not workable for everyone, adding more dock doors or moving to a warehouse with more dock doors, can accommodate more appointments and lower wait times.

Have Better Dock Awareness/Improved Dock Scheduling

Make sure your dockworkers have the product ready before scheduling the appointment. Furthermore, you can encourage them to have the process done in two hours or less to avoid detention.

Make sure to space out your appointments so that your workers have enough time to load/unload the truck. Overscheduling is a huge cause of detention. Improving your dock scheduling lowers your risk of delays for drivers.

Using Technology

Forward-thinking shippers are using technology to reduce detention time.

Web-based dock appointment scheduling solutions enable shippers, carriers, and consignees to collaborate on dock scheduling. By distributing the responsibility among everyone, organizations will be able to proactively keep wait times at a minimum.

Carriers can avoid frustrating detention time and shippers can manage inventory more efficiently. Technology can give you greater visibility into inbound shipments. Besides reducing detention, you can also better manage inventory levels, increase warehouse efficiency, and reduce congestion by limiting idling in the yard.

Hiring More Labor

While this might be tougher to secure right now, it’s often cheaper to bring in extra workers than it is to pay detention fees. Unready freight is one of the major causes of detention. When there is more labor on-site, orders can be prepped and loaded quicker.

Staggering Your Labor

By staggering your labor hours, you can ensure loading and unloading can continue during lunch hours rather than the entire staff breaking all at once.

Drop and Hook Programs

If possible, with space, drop and hook programs are the easiest way to avoid detentions. What is a drop-and-hook program? This allows the driver to drop the trailer, hook an empty trailer, and head on their way. Often the shipper can use the dropped trailer for storage as a courtesy. Yet, shippers and carriers must work together to ensure that these trailer pools don’t expand and sap the fleet. In addition, drop and hook don’t work for live freight. When it works well, drivers wait less, and both shippers and the trucking company are more profitable.

Communication

Make sure to share your yard map with the truck driver so they know where to go and who to contact if there are any issues. Also, be sure to communicate with your warehouse that the truck must be loaded within a given timeline, such as two hours or less.

Improved Operations

It all comes down to improved planning, more visibility, and optimized labor. Smart shippers are looking at data to prevent overscheduling, maintain staff and equipment, and address problems.

Hold Regular Business Reviews with Your Logistics Providers

It’s critical that shippers and their logistics providers discuss performance regularly. It will help you identify key problem areas and introduce potential changes to help reduce driver wait times and fees and keep your supply chain efficient. In a whitepaper by J.B. Hunt, it was estimated that eliminating even 30 minutes of wait time would give a driver an extra hour on the road. This would be equal to 50 more miles per day or 12,500 miles per year. These carrier savings translate to increased supply chain efficiency, less risk of road accidents, and improved operational performance.

When asked about detention solutions from carriers, they’ve responded that customers who were organized, used technology, maintained scheduled appointments, or had as-needed extended hours, significantly reduced delays.

LET’S DO BETTER

Delays are the worst-case scenario for today’s supply chain professionals. Each delay amounts to a potential setback further down the supply chain. We’ve had plenty to deal with that has been out of our control, but truck detention is one that we have more control over.

Shippers need to take steps to reduce their impact by improving dock scheduling and operations to ensure a positive and timely, customer experience. And in the competitive market we’re in, drivers get to select who they want to run for. Don’t be one that gains a reputation for dock delays.

If outsourcing your logistics, make sure to work with a provider who can help be a resource for more than arranging your freight shipments. At Trinity, we’re your logistics consults, too. We make sure to take the time to have educated conversations about your logistics and operations, to help you reduce delays and have a more efficient supply chain.

We offer many technology options like our tracking and tracing options that can keep tabs on your truck and freight, as well as a transportation management system (TMS) to give you insight into valuable data. If you choose to work with our Managed Service Team, we offer you quarterly reviews with our experts so you can take a deep dive into your data for improvements.

Truck detention and dock delays remain a problem for many, but it doesn’t have to stay that way. Take charge of your dock operations today and find an improved supply chain.

Author: Christine Morris

What do semiconductors, plastics, furniture, chlorine, and more all have in common lately? They are near impossible to find. As disruption after disruption has interrupted supply chains, shortages are now messing with shipping and demand. Specifically, raw material and product shortages are affecting the chemical industry. With many other industries relying on the chemical industry, this is becoming a significant challenge to overcome.

MATERIAL AND PRODUCT SHORTAGES

Shortages in the chemical industry have worsened over the last quarter. According to a June survey of 84 National Association of Chemical Distributors, nearly 85 percent of distributors report at least one imported item as out-of-stock. This is a huge jump compared to only 47 percent found in March. Inventories in the chemical industry have begun increasing, but they have yet to reach their pre-pandemic levels. These shortages are not only hurting the chemical industries but the many industries that rely on them. One example is the shortage of citric acid, as it’s often used in vitamin or electrolyte drinks, even in soda. These material shortages mean tight supplies, high prices, and continued delivery delays.

Some recent materials and products that currently face shortages in relation to the chemical sector:

Semiconductors

Many manufacturers worldwide are having trouble securing supplies of semiconductors, delaying the production and delivery of goods, and increasing prices. Several factors are driving the crunch, which first affected the auto industry. The shortage is going from bad to worse, spreading from cars to consumer electronics. With the bulk of chip production concentrated in a handful of suppliers, analysts warn that the crunch is likely to last through the rest of 2021. Materials most vulnerable in semiconductor production include wet chemicals, solvents, photoresists, gases, and substrates. Several semiconductor process materials in the petroleum supply chain are also running short. Those materials include acetone, PGMEA, NMP, and IPA, and a few of several solvents.

Plastics

Yet another shortage complicating business is plastics. Food packaging, automotive components, clothing, medical and lab equipment, and countless other items rely on them. Since March 2020, a perfect storm of events has been putting severe strains on the supply of plastic raw materials, base plastics, and compounded plastics. This shortage has hit plastic product manufacturers very hard. 

The demand for plastics continues to surge, especially for food packaging and automobile components plastics production. Plastics required by high purity chemical providers for packaging and wet processing equipment are experiencing raw material price increases due to availability issues.

Plastics make every kind of product imaginable — from food packaging, appliances, smartphones, and car parts to exercise equipment and roller skates. So with the ongoing surging demand for goods, it’s easy to see why these shortages are a big deal.

Chlorine

The swimming pool boom from the pandemic created a higher chlorine demand, thus contributing to a shortage. There was also a manufacturing lab fire in August of 2020 in Louisiana that only further aided the shortage. 

Some pool supply stores have imposed quantity restrictions. In certain regions, prices for chlorine tablets have doubled from last year. The chlorine shortage is widespread, and it will likely worsen as homeowners use their swimming pools for the season. 

Gas, Oil, Fuel

It’s not quite that there’s a huge shortage of crude oil or gasoline. Instead, it’s a shortage of tanker truck drivers who deliver it. According to the National Tank Truck Carriers, 20 to 25 percent of tank trucks in the fleet are parked due to the shortage of qualified drivers. The driver shortage has been an issue for a while, but the pandemic multiplied it. 

Gas prices, which typically rise at the start of the summer as seasonal regulations take effect — requiring the more expensive “summer blend” of gasoline needed to combat smog — are also rising. The national average has surpassed $3 a gallon this summer and could get even higher if any hurricanes hit the Gulf Coast or if there are any other disruptions to supply, such as a refinery fire. 

Other Raw Materials

As countries work to switch over to green energy, the demand for copper, lithium, nickel, cobalt, and other rare earth elements is soaring. And these raw materials are vulnerable to price volatility and shortages as limited access to known mineral deposits is another risk factor. Only three countries together control more than 75 percent of the global output of lithium, cobalt, and rare earth elements – the Democratic Republic of Congo, China, and Australia. Constraints on the supplies of their raw materials — especially polyethylene (PE), polypropylene (PP), and monoethylene (MEG) — are leading to factory shutdowns, sharp price increases, and production delays.

SHORTER SUPPLY + HIGHER DEMAND = HIGHER COSTS

Consumer spending rapidly grew because of the pandemic. Remote working and schooling created an increased demand for electronics. Higher demand came for food packaging and healthcare markets. Automotive production rebounded and surged beginning in the third quarter of 2020. All these and more are impacting the chemical industry.

These disruptions have undoubtedly led to rising prices. Echemi reported in late March that more than 20 chemical companies including BASF, DuPont, Dow, DSM, and LANXESS, have raised prices. These price hikes are largely due to difficulty in getting raw materials used to make products. And there’s less supply than there was a couple of months ago. As demand is rising relative to production, prices have increased for chemicals, like polypropylene, acetone, and other solvents. 

…AND LOGISTICS DELAYS

Not only have shortages worsened since March, so have delays. NACD’s survey found that 82 percent of respondents are dealing with an average uptick in travel time for their shipment of 11 days or more. And these issues extend throughout the supply chain. 

Containers and boats to ship products from overseas are in short supply. Products could be sitting in a factory overseas for months because they can’t get loaded onto a ship. Then you have the ports struggling with delays. Currently, you can look at live video outside of Los Angeles and you’ll see up to 30 boats driving around waiting to get an appointment because there are so many ships coming in. Ships are waiting longer to get in and once they do get in, there is a shortage of drayage drivers that only adds to the congestion. 

A lack of truck drivers and warehouse workers has contributed to the delays as well. The driver shortage was an issue before COVID, but the recent labor shortage in warehouse workers has created a larger problem. Say you do have a truck available. But if you don’t have somebody in the warehouse to pull the goods out of the racks and load them on the truck, then that’s another issue causing delays.

Supply chain issues continue to hamper the whole of manufacturing. It’s hard to look at the global supply chain and not think, “everything that can go wrong has.” The impact of these issues continues to impact many industries downstream. On raw materials such as chemicals and plastics, inventories are unlikely to be rebuilt amid continuing strong demand. There’s simply not going to be a quick return of inventories. 

WHAT YOU CAN DO DURING THESE TOUGH TIMES

Begin building a more resilient supply chain

Consider moving manufacturing operations closer to home. This can help reduce your transportation times from future delays or disruptions. Make plans now to be prepared for all potential disruptions. Disruptions to the supply chain are not new, but this current phase of repeat instances has been rougher than most.

Gain access to technology

Integrating technology into your supply chain has now become a necessity. Implementing technology like a transportation management system (TMS) will help all stakeholders maintain real-time communication and visibility. A TMS can help you optimize your routes and work with the best carriers, increasing your service levels and reducing any delays. It can provide you with data-driven insight so you can better manage current and future disruptions. And by using data analytics, you can recognize which carriers most likely have available capacity, reducing your time spent on transportation coverage. Gain insight into what’s happening across all markets, ensure proper rates for shipments, and keep more control over your budget and logistics costs with TMS technology.

Work with experts that keep a pulse on the market

An expert can help you pick up on early warning signs and help you prepare for potential constraints. They can also offer you alternative solutions when needed. 

Here at Trinity, we are a Team of experts. We do more than arranging your freight. When working with Trinity, we become logistics partners in your business and aim to help you with your growth. We can help you streamline your logistics procedures and give you insight into the freight market. We keep a close eye on it and keep you educated to help you plan and forecast. 

We also work very hard to follow through on what we say we are going to do. When issues arise, we work until they are resolved, keeping communication every step of the way. We have over 40 years of experience in logistics and industry challenges in supply chains is our day-to-day.

Industry experts and forecasters are saying this tough market is far from over. It may even look to extend into 2022. So don’t hesitate in asking for help. We’re here and ready to provide you with our People-Centric approach for you during this historical time in logistics.

Author: Jennifer Braun