Craft Beer Logistics: Navigate Complexity, Grow Your Business

Beer, a beloved and timeless beverage. It’s a staple in many cultures and continues to be one of the world’s most popular drinks. A growing subset in beer is the craft beer industry, known for its robustness, variety of flavors, and highlighting regional tastes. According to the Brewers Association, in 2022, craft beer sales increased five percent and now account for almost a quarter of the U.S. beer market. While the demand for craft beer grows, the logistics behind its distribution is increasingly complex.

Craft brewery owners often wear many hats and have lots of tasks to hop on. This can include handling their logistics. This includes more than just the shipping of their beer but the many ingredients and equipment that go into making it. From start to finish, these beer supply chains involve numerous stages and stakeholders, including ingredient manufacturers, distributors, and retailers.

Having effective logistics planning and processes is crucial for craft brewers to meet their growing demand and provide great service to their stakeholders. Managing their supply chains can be difficult to do alone, which is why a third-party logistics (3PL) provider can be a valuable resource to growing craft breweries. 

LOGISTICS CHALLENGES FACING THE CRAFT BEER INDUSTRY

Knowing how to legally and efficiently manage their shipping networks is a crucial part of running a successful craft brewery business. There are several challenges craft brewers face such as keeping temperature control throughout transportation, meeting state regulations, and meeting customer demand.   

PERISHABLE INGREDIENTS AND PRODUCTS

The need for temperature control in the logistics of craft beer is paramount to preserve the integrity of any needed ingredients or finished products.

Craft brewers also often experiment with ciders, mead, and other malt beverages with specialized flavors, which can include perishable ingredients like fruit. The shelf life of the raw materials and craft beer brings along the element of urgency, placing even more importance on on-time deliveries. Coordinating these shipments to ensure quality beer adds an additional layer of complexity to the logistics process.

REGULATORY COMPLIANCE

Navigating the web of regulations for shipping beer in logistics can be a considerable challenge. Regulations for shipping alcohol vary from state to state, meaning you’ll need to be compliant based on where you are shipping to and from. Additionally, state laws will often change every few years, making it even more difficult.

Craft brewers must also find carriers with the correct licensing, knowledge, and experience to handle the unique requirements of transporting alcoholic beverages. It’s important to work with a logistics provider that knows all the ins and outs of meeting your product’s requirements and state regulations to prevent costly disruptions due to non-compliance.

MEETING CUSTOMER DEMAND

As craft brewers reach more customers, the more need there is for effective logistics planning. Having to juggle keeping track of supplies, determining the most efficient distribution methods, and preparing for any supply chain disruption can be overwhelming. Having a successful craft brewery goes beyond just brewing great beer, but ensuring it reaches the consumer when and where they want it.

Managing costs is on top of rolling out new beverages can be a significant challenge for craft breweries. Having efficient strategies, such as freight consolidation or finding the most cost-effective mode of transportation, can help keep costs in check. This is where an expert third-party logistics company (3PL) can assist with strategy and technology, like a transportation management system (TMS) for visible reporting.

3PL BENEFITS: BREWING SUCCESS WITH TRINITY LOGISTICS

While there may be difficulties to face in the dynamic world of craft brewing, partnering with a 3PL like Trinity Logistics can alleviate the burden. Here’s why working with us for your craft beer shipping and supply chain is the perfect recipe for success:

Our Only Job is Logistics

Logistics is what we handle day in and day out. When you trust us with your freight, you get more time to focus on what you do best – brewing exceptional beer and growing your business.

Experts in Specialized Shipments

Understanding the nuances of transporting freight with specialized requirements, such as temperature control, is our expertise. Whether it’s raw materials or the final product, we ensure everything arrives in optimal condition.

Regulation Compliance

Our dedicated Team and compliance department work diligently to ensure the necessary regulations are meant to provide you peace of mind and reduced risk.

Tracking and Tracing

We understand transparency is key to your success, so we offer several ways to view and keep track of your freight, no matter the time of day.

Effective Logistics Strategies

Whether you need help with something as simple as finding the most cost-effective mode of transportation to freight consolidation, we can help you find and implement strategies to optimize your supply chain and manage costs. It doesn’t matter if it’s just one or 20 pallets of freight, we can arrange full truckload, less-than-truckload (LTL), expedited, or any other mode you may need. 

Reduced Risk

At Trinity, we meticulously verify all carrier relationships that we work with, not just during the initial setup but for every shipment. We’re also proud to share that less than one percent of all shipments coordinated with Trinity Logistics end up in a claim. If something does happen, we have a Cargo Claims Department at the ready to assist you in navigating any issues.

24/7/365 Support

No matter what happens, we’re ready to support you around the clock. We have a dedicated After-Hours Team to continue the monitoring of your freight and are ready to quickly resolve potential challenges, no matter the time of night, holidays, and every weekend.

Trustworthy Carrier Relationships

We treat and respect our carrier relationships just as much as our shipper ones. We aim to build a strong partnership with each one to help their businesses be successful. Because of that, we’ve built strong and trusted partnerships with those in our carrier network, providing you further confidence that your freight will arrive safely.

Managed Transportation

Whether you solely need a TMS for your transportation management, you’re looking for a fully outsourced solution, or something in between, we can help. We understand companies don’t come one-size-fits-all, and neither should the services you need to optimize your logistics. Our Managed Transportation services cater to businesses of all sizes and needs, capable of growing right alongside your brewing venture.

Partnering with Trinity Logistics offers you more than just transportation services. We’re a trusted, strategic ally that’s invested in seeing your business succeed. Leave the logistics to the seasoned experts, so you can focus on creatively and passionately brewing while we ensure your craft brews reach your consumers right when they want it.

Trinity Logistics, a leading nationwide logistics provider, is pleased to announce the recent promotions of two key Team Members, Jake Lafferty and Dylan Banning, to Vice Presidents of their respective Regional Service Centers (RSCs). 

Jake Lafferty, who joined Trinity Logistics in June of 2019, has been promoted to the Vice President of the Texas RSC. In his previous four years of dedicated service as the Director of Sales in Texas, Jake played a pivotal role in driving growth within that Team. His wealth of experience, strategic mindset, and deep understanding of the logistics industry makes him an excellent fit for this elevated leadership position. 

“It’s been an exciting journey over the last four years leading the Texas Sales Team,” said Lafferty. “As I move into my new role, I’m excited to positively impact more people within the company. Trinity has given me and my family so much since I’ve joined. I view this new opportunity as a way to help preserve the culture and opportunities for other Team Members at Trinity, so they may have a similar experience as I did.”

Dylan Banning, a familiar face within the company, is taking on the role of Vice President at Trinity’s Minnesota RSC. Dylan’s journey with Trinity began in 2013 when he joined as an intern. Dylan’s strong dedication and impressive work ethic helped him climb the ranks, serving in various capacities, most recently as Director of Sales at the Delaware RSC, Trinity’s corporate location. Dylan’s proven leadership and commitment to Trinity, along with his familial ties to the Bannings, the original creators and owners of the company prior to 2019, showcases the legacy that still resides within Trinity’s culture today. 

“I feel extremely honored and excited for the opportunity to work with and lead the Minnesota Regional Service Center,” said Banning. “I’m grateful for the five-plus years spent in the Delaware office, where I was surrounded by amazing Team Members and leaders who continuously promoted growth and opened doors to opportunities across the company. I look forward to getting started in Minnesota and can’t wait to see what the Team will accomplish in the future!” 

“Jake has been a standout since his arrival to Trinity Logistics,” said Hayley Dobson, Senior Vice President of Trinity’s Regional Service Centers. “He’s been a major contributor in the development of our sales onboarding and training program, in addition to taking the Texas Team to benchmark performances. As for Dylan, he’s consistently demonstrated exceptional leadership, innovative thinking, and a strong work ethic. He has a proven track record in both operations and sales, as well as a passion for the industry and developing the Team around him. I believe both internal moves will make a positive impact on their respective Teams and the company as a whole.”

Trinity Logistics congratulates Jake and Dylan on their recent promotions. The company looks forward to the growth and success their new roles will bring.  

Interested in working with an organization that is committed to you and your career growth?

About Trinity Logistics

Trinity Logistics is a Burris Logistics Company, offering People-Centric Freight Solutions®. Our mission is to deliver creative logistics solutions through a mix of human ingenuity and innovative technology, enriching the lives of those we serve. 

For the past 40 years, we’ve been arranging freight for businesses of all sizes in truckload, less-than-truckload (LTL), warehousing, intermodal, drayage, expedited, international, and technology solutions.

We are currently recognized on Transport Topics’ Top 100 Freight Brokerage List, as a Top 100 3PL by Inbound Logistics, and as a Top Company for Women to Work for in Transportation by Women in Trucking.

Businesses constantly seek innovative solutions for their supply chains to streamline operations, reduce costs, and enhance customer experience. Generative Artificial Intelligence (Gen AI) offers promises to fulfill those exact wishes. But can it do just that? I’m going to answer that question for you as well as offer some practical insights into how you should be implementing Generative AI in your supply chain. 

What is Generative AI?

Before we dive into its impact, let’s briefly discuss what exactly is Generative AI. Now, there’s a lot of definitions out there, but here’s how I define it. It’s a system that can create new patterns based on the interpretations of learned patterns. It also comes down to three main components.

Foundational Model

This is where the training/learning takes place, where you’re teaching the AI how to look at things and look at input.

Large Language Model (LLM)

This model is trained on vast amounts of text, can interpret what you’re asking of it, and can put a response in words that you can understand.

Natural Language Processing Model/Chatbot

This is the most visible portion of current Generative AI implementations, like ChatGPT. This model component is generally a conversational chatbot leveraging the LLM to create content. It was first trained on a foundational model and then fine-tuned with human feedback. 

Generative AI is first trained on a foundational model and then fine-tuned with human feedback and additional data.

Now, none of these are really new technologies. They’re just available more widely today because of the lowered cost of processing power, rise in cloud technology availability, and ability to push it out in more cost-effective manners. 10- 15 years ago, it was far too expensive. As prices have come down and processors have become more powerful (think Moore’s Law), it’s allowed Generative AI to become more easily accessible. 

When you talk to Generative AI it feels like it understands you. Spoiler alert, it doesn’t. Its responses are based on data it has consumed and a resultant powerful prediction mechanism. Don’t think that Gen AI “understands”; it doesn’t. This has significant impact when it comes to focusing a Generative AI into a particular industry, like logistics. Generative AI can’t apply specific nuances of an individual industry unless it has been trained on them, and even then, there are other obstacles to Gen AI being useful outside of targeted use cases. This is a key point in how we think of getting Generative AI to effectively impact supply chains. 

Public vs Private Generative AI

When you use Generative AI, there’s a big thing you should be concerned about – public vs. private Generative AI.

Public AI

We talked about ChatGPT. That is one example of a public version of Generative AI. Anything you input in there is being reused for training purposes. Any of the prompts you put in, it’s using that to train itself and feed back into that foundational model for others to use. That becomes more or less public domain once you put it in there. You must think about it that way. It’s like posting something on the internet – it’s there forever. 

Public AI is great to use for idea generation, but only put in anonymized data, that’s if you put in any data at all. 

I also cannot stress this enough – fact check what it generates. Generative AI will make stuff up – the industry term is hallucinations. It’s the worst people pleaser you can imagine. It will give you what you ask for, whether that’s true or not. There are advances in the works to help “fact check” the tool, but you must remember whatever Generative AI does today is opaque. We don’t know where it’s pulling this information from. You’ve got to go in and check its responses.

Private AI

There are opportunities to use private Generative AI. Amazon Bedrock and Microsoft’s OpenAI implementation have private options to use such that the prompts and any data you put in are not used for training the core foundational model. But you must make sure you’re on the right (private) version of the tool. 

The second thing is that if you feed it data, you must make sure that data is right because Generative AI has no clue. It’s assuming what you’re telling it is true. Though it does have the ability to fact check your data, it will only do so if you ask – and ask correctly. You must have clean data and validate the results that come out of it.

Again, private AI is great for idea generation but not so great yet as a fully automated toolset that can be used to drive business forward. It’s getting there, but not there yet. Private AI options will get there faster for certain topics, industries, and businesses than public AI. 

Generative AI Latest Features 

There are some new features that have come out for Generative AI recently. One of those is the ability to relate images and text. You can put an image up, and it can write a story about that image. You can input text, and it can create an image, like Dal-E. 

There’s also code creation and injection. It can generate code, and when I say code, I mean programming. OpenAI has functionality where you can do code injection. Github has its copilot technology where it can write code alongside you based on a plain English prompt. 

Another feature is enables tools to call digital actions. So, I can go from a Generative AI tool and call out to create an action in another application. This is where we shift over into physical actions that we find in Logistics 4.0. For example, a robot in a warehouse that results in a physical action, or it could just be something as small as, if this event takes place, then make this phone call or change this data. 

The Impact of Generative AI in Supply Chain

What’s the logistics impact of Gen AI? Biggest one is data analysis. 

Data Analysis

Generative AI is great at taking data in and putting it into a format that can be easily used to extract meaning. Think about this from a summarization perspective. You’ve got somebody on a call with a customer. Based on their phone number, Generative AI identifies them and comes up with a prompt that tells you the last 30 days of that customer’s history (products, contacts, issues, etc.) so you can have a much more informed conversation with them. 

Trending is another great one to look at across data sets. As you put the data sets in and tell Generative AI to relate these two things, you can start to see trends against each other. It’s interesting what you can do with those pieces.

Then there’s assistive information delivery. At points in time where actions need to be taken, information can be delivered as a prompt to the person performing the action. This can happen in real-time with some tools, or it can happen in the background.

These are all pieces that you can put into place today.

Predictive Analysis

A primary use case within logistics is predictive data analysis. 

Routing is one but that’s going to take some work to be effective. That’s because it needs specific knowledge sets around the model and those knowledge sets are not available to most of generic models. There isn’t a specific logistics model yet that understands all the nuances to the different modes and can bring in the data sets that are necessary to truly understand routing. There are tools you can use for routing right now, but they’re not Generative AI tools.

Exception identification is another one. Again, this is a large data problem and there are a lot of factors that come into it. Any supply chain is essentially a complex system. Being able to identify those exceptions earlier is going to be something Generative AI will help with when it comes to logistics and supply chains.

Hyper-personalization is a great one. That’s getting information into a format that speaks to a particular person, entity, or customer. You can hyper-personalize a piece of communication to them based on the information you know to make sure it’s something you can use to improve service delivery. 

These benefits of Generative AI are really where we’re going to be able to improve service delivery across supply chains as it evolves. 

How to Use Generative AI in Supply Chains Today

You’re likely wondering, how can I use it today? I’m happy to report that there are several different ways you can being using it. 

Improving Customer Experience

One of those ways is improving customer experience. Using a private AI, you can feed it customer data. Then, when you’re talking with customers you can bring up insightful information. It can bring up things like a notice of a customer’s birthday and save you time from having to go and look up specific pieces of information. 

If you’re feeding the data into a system, you can use these private models to intake that data and provide relevant information back to someone that’s interacting with a customer. This is where I like to remind everyone that Generative AI isn’t a replacement for people in customer service but is great for putting information into a digestible format to support people in their roles. 

Summarization

One of the big things is summarization. Summarization is an awesome feature of Generative AI. It’s ability for it to take data and create a summary is a tool that you can use today. Getting summaries of articles, getting summaries of customer history, getting summaries of a lot of different types of data is something the current application can do and do it well. You still have to fact check it, though!

Personalization

The other big piece is the creation of personalization. Getting that data in and creating a personalized email with some information about who you’re sending to is something that Generative AI can do and at scale. There are tools you can use to do that and it’s something that you can put into place today and try out. 

Think About Your Data

I would encourage everyone to get started and try things. It’s not going to be perfect out of the gate. I can tell you that right now. 

One of the key factors that you must think about as we move into this Generative AI world, is data. Good, clean data is at the core of successful AI use. You must think about how clean your data is, what data you’re going to send to an AI, are you public or private, all those pieces. 

Accuracy and consistency are the core. You must establish your data governance. It’s great if you have clean data, but if you start feeding bad data in again, all you’re going to do is skew your results coming out. Now is the time to start evaluating your data sets. Understand where you have good data, how your data is inputted, where you can start, and where you need some work. Then, get your data in line and start to think about how you can enrich that or what can you do with it.

Before You Get Started…

There are other pieces to consider before you fully dive into Generative AI. 

There’s an ethical component here. There’s change that’s coming. People’s jobs are going to be affected. You must think about how this impacts your team. What trainings do you need to provide? How do you get people brought along for this ride instead of leaving them behind? What’s the impact to your customers? If you’re relying on this as an assistive technology, how are you making sure that you’re still servicing your customer effectively? 

One great thing about automation is that it makes things happen in the background. The bad thing about automation is things happen in the background. Unless you understand what’s happening, can react to that, and leverage it to effectively service your customers, you’ll end up doing them a disservice. That’s true for any automation and Generative AI is no exception. 

Then there’s change management. How do you prepare your people? How do you get to the point where you have prompt engineers? 

Each AI works differently. If you give the same prompt to different AI applications, you’ll get different answers. So, how do you understand how to engineer those prompts? How do you identify this skill? These are critical questions you’ll need to answer over the next few years as we move into this Generative AI world. 

FAQs 

Are There Logistics Focused Tools in the Market Today Leveraging Gen AI?

There are. I would say that the use of Gen AI in logistics tools is still a little new. Tools like Parade, which is a very specific toolset around carrier relationships is leveraging some Gen AI capabilities. Most Gen AI is relatively generic. Tools like Observe.ai or Freshworks are available today with some Gen AI capabilities. 

How Do You Measure Success When Leveraging Generative AI Initially?

We always look at success when we look at automation as reclaimed time. What we mean by that is, are we giving someone a technology that assists to a point where we’re able to redirect them to more strategic activity. The other one is really asking the people who are impacted by it. You need to get feedback so you can understand if it’s being helpful or harmful.

When Should I Start Using Generative AI?

Now! Encourage its use, though with appropriate guardrails and guidelines. It’s going to be a disruptor. Gen AI is not a disruptor quite yet, but it’s getting there, fast. The widespread availability and use will accelerate its impact on many industries and roles. 

What’s an Example of How Trinity Logistics is using Generative AI today?

We’re using it in a couple of different ways. One tool we use is Observe.ai, which is a natural language processing tool. We use it to look at our interactions with customers, look at sentiments, look at certain events, look at what type of interaction was this, and that uses that Gen AI to provide us with that information. Then we have a Development Team, so we’ve started working with some of the code copilot, so assistive coding technology. 

Consumers want more fruits and vegetables in their diets but produce shippers must face these common logistics challenges to keep up with their demand.

It’s hard to deny the nutritional value fruits and vegetables bring to our diets. It’s likely why there’s been substantial growth in consumer demand for produce over the past decade. While that’s great for businesses based in produce, there’s also greater pressure for produce shippers to deliver.

The journey from farm to table can be surprisingly complex for fruits and vegetables. Produce shippers face several hurdles that they need to overcome for their products to deliver fresh and meet the growing consumer demand. Let’s explore the intricacies of these difficulties and how they all can be taken care of by working with a third-party logistics (3PL) provider, like Trinity Logistics. 

CHALLENGE 1: CHOOSING BEST TRANSPORTATION MODE

Produce shippers first face the challenge of determining what transportation mode to use for their shipments. With produce, half of its shelf life is spent in transit. It’s also reported that roughly 33 percent of produce is lost or wasted during its journey, according to the Logistics Bureau.

This is why produce shippers must ask themselves these questions to help determine the right transportation mode for their shipment.

What’s best for your product?

What can you afford?

How much time does your produce have?

Air is great for foods that have a very short shelf life and may need expedited shipping. However, air is often the most expensive of your options. Rail can offer you cost savings but requires more travel time, often two to three days. This option is often saved for produce with a longer shelf life. Lastly, there’s truckload shipping, which offers several shipping options and costs, depending on factors like whether you need a full truck, expedited shipping, or freight consolidation.

CHALLENGE 2: SELECTING THE RIGHT CARRIER PARTNER

The next challenge produce shippers need to tackle is choosing the right carrier to pick up and deliver their shipment. This may be the most crucial task of all because the carrier you choose can make or break your shipment. You need to trust the carrier you choose has experience in handling your specific cargo and meeting food safety regulations, especially for those that need temperature control.

CHALLENGE 3: MAINTAINING FRESHNESS/QUALITY

Maintaining freshness is one of the primary logistics challenges for produce shippers. Millions of dollars are wasted each year on produce that didn’t maintain freshness by delivery.

Produce begins to deteriorate the moment it’s harvested, so the risk of decomposition is equal to, or perhaps even greater, to produce shippers than those of theft or delay. Fresh or frozen produce needs to be stored and transported at specific temperatures to ensure its quality when bought and eaten by the consumer. Even the amount of humidity, light, or kind of packaging can affect a produce product, so produce shippers face this challenge in every segment of their shipping.

Every kind of produce also has different needs. Some need very specific environments to maintain freshness. Others can stay at room temperature or take on more handling. Shelf life is also something to consider. Produce with short shelf lives will need quick transit from farm to store. This also means several kinds of produce often can’t ship together. Since there is no one-size-fits-all process for produce, it’s important for produce shippers and their logistics partners to understand what’s needed for the specific product to deliver at peak quality.

CHALLENGE 4: SHIPMENT VISIBILITY

Tracking and shipment visibility is essential for produce shippers to be able to reduce risk. Without a clear look into your shipments, you’re left in the dark and uncertain whether your product will arrive on time or in acceptable condition.

This can challenge more than just produce shippers, but all stakeholders in a company’s supply chain. Miscommunication can happen between retailers and sellers as well, causing miscalculations in capacity planning or undependable forecasts. Real-time visibility and data are absolutely needed for produce shippers to enhance transparency with their business partners and gain more control over their supply chains.

CHALLENGE 5: REGULATIONS

Navigating regulations is a huge challenge for produce shippers. Failure to meet those regulations can lead to severe and often costly consequences. For example, in the U.S., produce shippers must comply with the Food Safety Modernization Act (FSMA), which entails specific guidelines for food safety.

There are also quality standards and labeling requirements to be met. The U.S. Department of Agriculture (USDA) has a strict grading system to determine the quality of produce, considering its size, shape, color, and defects.

CHALLENGE 6: HANDLING ANY CLAIMS

There’s always a risk for claims in shipping, but claims can happen more often for produce shippers compared to other industries, due to its shorter shelf life. The majority of claims we see in produce shipping are the result of spoilage, which can happen for many different reasons. 

Handling claims for produce is slightly more difficult due to the Perishable Agricultural Commodities Act (PACA). When handling produce claims, it’s important you and your transportation provider understand and follow PACA. 

HOW TRINITY LOGISTICS HELPS PRODUCE SHIPPERS OVERCOME THEIR CHALLENGES

All those challenges listed above that you may face – we know how and are prepared to handle them.

After 45 years of serving shippers in the food and beverage industry, we’re experts in its logistics requirements and regulations. We also take part in industry organizations, like the International Fresh Produce Association, so we stay knowledgeable about what may affect produce shippers. 

When it comes to choosing your transportation mode, we have a multitude of options available to support you, whether you’re looking for help with one shipment or a fully outsourced logistics solution.

Additionally, we work with trusted carrier relationships that have been fully vetted to ensure your product travels safely and delivers on time. This includes vetting that reefer equipment is not older than 2012 and a temp-reading or download can be made readily available for any refrigerated or frozen produce shipments.

No matter where your freight is in its journey, we provide you with several real-time tracking options to stay fully informed. Through our Managed Transportation service and the use of a transportation management system (TMS), you can find more visibility and data to improve your supply chain processes and communication.

And then there are claims. While we wish every situation could go smoothly, there can still be mishaps. Even so, we’re proud to share that less than one percent of all shipments coordinated with Trinity Logistics end up in a claim. That’s likely because we work with shippers and receivers to monitor load and unload times, checking to ensure trailer doors are not left open, causing temperatures to fluctuate outside of any required ranges.

Now, fear not, because if something does happen, we’re able to help with that too. We have an in-house expert Claims Team to help negotiate any produce claims on your behalf, with an average rate of 60 days in resolving cargo claims.

By working with Trinity Logistics for your produce shipments, you’ll also gain an extra benefit – experiencing our acclaimed People-Centric service. It’s what our customers praise the most about our services and keeps them returning to Trinity Logistics for their logistics needs.

If you’re tired of tackling these produce shipping challenges alone, it may be time to get connected and join the thousands of shippers that choose to make their logistics easy with Trinity Logistics. You won’t be-leaf our exceptional service until you try it!  

Get Out of Your Produce Shipping Pickle

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LIKE TRACKING A HURRICANE

I’m sure we’ve all felt like we were in a bad storm over the past few years when it comes to the freight market, and particularly, shipping rates. As we’re now into a new year, shippers and brokers are looking at their 12-month rate forecasts and wondering how things will look come December ‘24. It’s relatively easy to project for the first few months, even the first quarter, but as you get further and further away from when you send those projections to your finance team, the level of angst goes up.  

Figure 1.1 will hopefully help in assessing if your year will have a good outcome, or if there may be reason to look at your contingency plan. As we typically see in the first months of a calendar year (setting aside what we saw in 2021), rates are usually at their lowest point due to volume being restrained. Using the current rates for dry van freight, you can see the projections are for upward movement in rates as we go through the year, with rates pushing past $2.30 per mile as we close out 2024. However, as with any forecast or projection, there is always that “margin of error”.  

If the projected supply and demand balance is more volatile, it’s possible to see freight rates pushing $0.50-$0.60 per mile higher. On the opposite end, if demand for freight is muted, and the carrier churn rate levels out or, dare I say, we see an increase in capacity, freight rates could be well below $2.00 per mile.  

As with any major storm, it’s better to prepare and not need, than the other way around. As a shipper, boosting your carrier and broker base to give you options is always a prudent move.

CONSUMER SPENDING TO STEADY

There are some positive signs for 2024.  

The dreaded word “recession” that has been thrown around for seemingly all of 2023 doesn’t seem likely. The U.S. is poised for modest GDP growth and inflation shows signs of easing throughout 2024. There is also a strong likelihood we will see rate CUTS from the Fed this year.  

As we know, consumers are a big driver of freight activity. Look no further than the second half of 2020 and all of 2021 to see the impact consumers with disposable income can have on movement of goods. Figure 2.1 gives an indication that consumer buying will continue this year. As the ship steadies with inflation, that line will most likely head towards three percent at the end of the year, as consumers are finding dollars available to spend.  

There was a lot of pent-up demand for services that gobbled up U.S. consumer dollars over the past year plus, which lends credence to consumers looking to spend their dollars on things versus services. This will certainly be a shot in the arm for the freight-challenged industry we have experienced over the last 12 months.

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Trinity Logistics, a leading logistics solutions provider, proudly announces the promotion of Michael Cupertino to the position of Director of Operations for the Iowa Regional Service Center (RSC). Cupertino, with a distinguished five-year tenure at Trinity Logistics, has shown unwavering dedication and played a pivotal role in the company’s success.

Starting as a Pricing Analyst, Cupertino quickly distinguished himself through his commitment to continuous improvement, exceptional work ethic, and a drive for excellence. His insights and contributions over the past five years, particularly in his role as a Truckload Pricing Manager, have been instrumental in advancing Trinity’s strategic goals.

In his new role as Director of Operations, Cupertino will bring his wealth of experience and leadership skills to oversee and enhance operational efficiency at the Iowa RSC. The company is eager to witness the positive impact he will undoubtedly have on the Team’s future growth. 

“I could not be more excited about welcoming Michael Cupertino to our Urbandale leadership team,” said Aaron Lansink, Vice President of Trinity’s Iowa RSC. “Michael has spent 5 years with Trinity where he has worked his way up through the ranks, consistently exemplifying the values of this company. I feel very confident that his commitment to continuous improvement, work ethic and drive will ensure our office’s overall success and efficiency looking to the future.”  

“Five years ago, I moved from Wisconsin to Delaware to continue my career at Trinity Logistics,” said Cupertino. “It felt like a risk but it’s more than paid off. With complete support from the organization, I helped build up the Pricing Team. Now I’m ready and excited to take on a new challenge with Trinity, moving back to the Midwest to become Director of Operations for the Iowa Regional Service Center.”

Cupertino’s promotion aligns with Trinity Logistics’s commitment to recognizing and fostering talent within the organization. Trinity is confident that Cupertino will excel in this new position and look forward to the impact he will have on the company’s success.

Interested in working with an organization that is committed to you and your career growth?

About Trinity Logistics

Trinity Logistics is a Burris Logistics Company, offering People-Centric Freight Solutions®. Our mission is to deliver creative logistics solutions through a mix of human ingenuity and innovative technology, enriching the lives of those we serve. 

For the past 40 years, we’ve been arranging freight for businesses of all sizes in truckload, less-than-truckload (LTL), warehousing, intermodal, drayage, expedited, international, and technology solutions.

We are currently recognized on Transport Topics’ Top 100 Freight Brokerage List, as a Top 100 3PL by Inbound Logistics, and as a Top Company for Women to Work for in Transportation by Women in Trucking.

The chemical industry is vital in producing goods and services that touch every aspect of our lives. It’s a competitive market to be in.

Adapting to trends is crucial for chemical manufacturers to stay successful. The most profitable companies will be ones that work with business partners who keep them updated on these trends and embrace any changes that may come their way.

Trends Affecting the Chemical Industry

• Artificial intelligence
• Data analytics
• Specialty chemicals
• Sustainability
• Renewable and bio-based chemicals
• Safety and reducing risk
• Resilient supply chains 

Embracing Artificial Intelligence

The chemical industry has a history of embracing new technologies. Artificial intelligence (AI) is no exception. AI offers many potential benefits for chemical manufacturers. It can help find savings, improve efficiency, and increase productivity. There are so many ways AI can help chemical companies get ahead.

For example, it can help automate manual tasks and analyze vast amounts of data faster. With AI, chemical companies can make more informed decisions and improve quality control. Adopting AI can also help chemical companies improve workplace safety and reduce the risk of human error.

The Growing Significance of Data Analytics

Examining data sets for insights to improve decision-making is becoming more commonplace among chemical companies. Chemical manufacturers can use data analytics in their decision-making to enhance their productivity, reduce costs, and predict critical events that may impact their business. Moreover, they feed AI algorithms this data to forecast better and optimize their operations.

Accessing data can provide insight into the quality control of products or visibility into bottlenecks affecting their chemical supply chain. This data can help them pivot and improve their customer’s experience. Using data analytics is a great opportunity for chemical manufacturers to drive growth and profits.

A Rising Demand for Specialty Chemicals

Many other industries use specialty chemicals, like personal care, electronics, packing, and pharmaceuticals. In fact, the pharmaceutical industry accounts for the largest segment using them as the need for more medication grows.

Additionally, agrochemicals are another significant user of specialty chemicals. The growing population means an increased need for food and food production. Agricultural land is dwindling, and increasing the crop yield per acre of land becomes more important, increasing the demand for specialty chemicals.

Sustainability

The pressure on chemical manufacturers to reduce the environmental impact of their operations and products has never been greater. Regulatory agencies have placed stringent regulations with ambitious emission reduction goals for 2030. While many in the chemical industry have prioritized sustainability in their business, there is still work to do.

Green chemistry is part of this trend that’s gaining momentum. Green chemistry focuses on the processes and products to reduce the effect of hazardous materials and negative environmental impact while conserving natural resources for future generations. Green chemistry embraces recycling technologies, alternative energy resources, and other sustainable practices. This pushes many chemical manufacturers to review their current business strategies.

A Greater Need for Renewable and Bio-based Chemicals

A growing demand for renewable and bio- or plant-based chemicals should be no surprise.

This trend aligns with sustainability goals and brings the chemical industry opportunities for savings and new market opportunities. Companies are exploring avenues like synthetic biology, bioremediation, and the production of bioplastic or biodegradable materials

Prioritizing Safety and Reducing Risk

Safety and mitigating risk are huge concerns for businesses in the chemical industry.

Cybersecurity is a rising trend and threat for many companies. We see it all over the news. Hackers and scammers are becoming more tactical in cyber-attacks and company breaches of private information. It’s crucial for chemical companies to put in place security measures and training to keep their businesses safe.

The transport of hazardous chemicals has also recently gained special attention in the news. Rail transport accounts for around 19 percent of chemical shipments. Recent derailments, like in East Palestine, Ohio, have raised concerns about transportation safety.

Many chemical companies are also investing more in developing safer chemicals and products. Their concerns are not only to be less harmful to the environment but to human health as well.

Improving workplace safety is another concern. Companies install new safety protocols, enhance employee training, and use technology to address this.

Building a Resilient Supply Chain

In the last few years, companies realized how vulnerable their supply chains were.

In a survey by the American Chemical Council, 97 percent reported modifying operations due to supply chain disruptions. Chemical companies are focusing on reducing supply chain risk and increasing flexibility. With 25 percent of the U.S. economy depending on the chemical industry, it’s important their supply chains keep moving.

Keep Your Chemical Supply Chain Ahead of the Trends

Keeping your chemical company ahead of evolving trends and the competition is important. Having business partners that stay tuned to what’s happening in the chemical industry can be invaluable.

Trinity Logistics can help you with many of these trends through our services. Whether you have sustainability goals, are looking to build supply chain resiliency, or need technology to improve visibility and offer data analytics, we have solutions.

We’re members of many industry-related associations like the National Association of Chemical Distributors (NACD) and are Responsible CareⓇ Certified, so you don’t have to worry about falling behind in news or trends that may affect your business. When you work with Trinity Logistics, your designated expert will keep you so informed that you’ll likely know what’s affecting the chemical industry before any of your competitors do.  

That’s just part of Trinity’s People-Centric service you’ll get to experience when working with us. We understand that people are at the heart of all businesses, so that’s who you’ll talk to – a dedicated relationship at Trinity. It’s also who we truly serve – your people.

Our goal is to improve lives, and when you decide to work with Trinity Logistics, you’ll see just that – improved life satisfaction amongst your employees and customers.

Stay up to date on the latest information on conditions impacting the freight market, curated by Trinity Logistics through our Freightwaves Sonar subscription.

Shippers – Don’t wait ‘Til It’s Too Late

Probably every shipper has, at certain times or maybe all the time, been inundated with requests to handle their freight over the past year.  This is in stark contrast to 2021 and most of 2022 when carriers and brokers were keenly focused on existing customers and not as aggressive in pursuing new business relationships.  

Currently, shippers are enjoying relatively abundant capacity and spot rates, which have fallen below $2.00 per mile. As we all know, the freight market is cyclical. Several signs point to a period of supply and demand balance, and likely a crunch with capacity. Will it happen tomorrow? No. Six months from now? Possibly. Most likely, we’ll see this scenario play out as we head toward the latter part of 2024.  

Figure 1.1 shows the total for-hire trucking authorities (blue line) and the carrier net revocations of authority (orange line) over the past five years. Clearly, carriers started flooding the market in late 2020, in response to the surge in goods moving within the supply chain. Much of that was consumer driven thanks to direct and indirect government stimulus action.  

As we’ve seen freight volumes decline, carriers, mostly single person operations or small and micro fleets, have decided the juice is not worth the squeeze. This downward trend in available for-hire carriers will continue, and possibly accelerate, as we head toward more lean freight months ahead.  

Shippers over the past year have right-sized their provider network. Now is the time for shippers to look at their volume forecasts and imagine having to manage that freight movement with 25-40 percent fewer providers than they currently have in their network. 

If you haven’t started efforts to expand your carrier and broker partners, don’t wait until you have freight sitting on your dock and no one to move it from point A to point B. Nobody wants to be stymied like they were just a few years ago.

LTL Costs Rise

Does it feel like LTL shipments are getting more expensive, while truckload shipments are going the other direction? Why are the rates not cheaper if freight volumes are less than what we saw a few years ago?  

Figure 1.2 shows the spot truckload rate (green line) being almost $0.40 per mile less than the beginning of the year. LTL for the most part has seen rates (blue line) gradually head upwards as we have gone throughout the year.For a new shipper to the industry, this can be a head scratcher.  

Short answer, truckload has a much more expansive network of providers, and as we highlighted above, that door being opened for new entrants into the market can happen quickly. The LTL model is more complex and a much bigger barrier of entry to the market. It would be a tremendous capital investment for a new LTL entrant to enter the market – trucks, trailers, terminals, labor, maintenance, etc. With the recent departure of one of the top 10 LTL providers (Yellow Corporation), that freight volume has been gobbled up by the remaining LTL carriers in the market but for the most part at a higher rate.  

We are also approaching the time of year when LTL carriers, after assessing their financial statements and forecasting costs for the upcoming year, will start knocking on doors to discuss general rate increases (GRIs). Notice I said “increases”, not the other way. Don’t be surprised when your LTL contact lays out a proposal that elevates your LTL freight spend by four-to-six percent in the coming year.

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Trinity Logistics, a leading logistics solutions provider, is proud to announce Bree Severn as the winner of the Ivy Sales Forum’s sales competition held in collaboration with Iowa State University. This competition is an integral part of Trinity’s commitment to fostering talent and contributing to the real-world education of future sales professionals. 

Throughout the semester, Trinity Logistics actively participated in shaping the Ivy Sales Forum’s curriculum, ensuring that it provides students with a blend of theoretical knowledge and practical sales experience. The 50 students enrolled in the courses benefited from Trinity’s guidance, gaining insights that will shape their careers in sales. 

The sales competition, a two-part challenge designed to provide hands-on experience, involved students engaging with members of Trinity’s Leadership in simulated scenarios. The first part required students to pitch the value of Trinity Logistics to a hypothetical “shipper” and secure a follow-up meeting. In the second part of the competition, students showcased their negotiation skills to close a deal during the follow-up. Students were judged by Trinity Logistics and Professor Raj Agnihotri.

“It has been such an amazing experience working with Dr. Raj and his students,” said Kelsey Brown, Director of Sales at Trinity Logistics’s Iowa Regional Service Center. “The commitment to excellence and excitement they bring to both the class and competition has helped me see our industry through new eyes again. A top-notch sales program!”

Bree Severn was chosen as the winner of the sales competition for her tenacious sales disposition, warm and genuine approach, as well as overall preparedness. Bree is a junior pursuing a double major in Marketing and Management at Iowa State. Bree was awarded a prestigious trophy by Trinity Logistics to recognize her outstanding achievement and growth. Additionally, she was offered a summer internship with Trinity, however she has plans to study abroad in Greece during her break. 

“I am beyond grateful for this experience with the Ivy Sales Forum and Trinity Logistics,” said Bree. “Through this sales competition, I learned more about the logistics industry, the sales process, and the value of relationship building. I want to thank Kelsey Brown, Raj Agnihotri, the Trinity Logistics Team, and my classmates for pushing me out of my comfort zone and believing in me along the way.”

Trinity Logistics continues to be an active participant in the Ivy Sales Forum, contributing to the development of future business professionals through experiential learning opportunities.

About Trinity Logistics

Trinity Logistics is a Burris Logistics Company, offering People-Centric Freight Solutions®. Our mission is to deliver creative logistics solutions through a mix of human ingenuity and innovative technology, enriching the lives of those we serve. 

For the past 40 years, we’ve been arranging freight for businesses of all sizes in truckload, less-than-truckload (LTL), warehousing, intermodal, drayage, expedited, international, and technology solutions.

We are currently recognized on Transport Topics’ Top 100 Freight Brokerage List, as a Top 100 3PL by Inbound Logistics, and as a Top Company for Women to Work for in Transportation by Women in Trucking.

As the industry pivots from Logistics 3.0 to Logistics 4.0, the role of Generative AI, a subset of artificial intelligence that can generate data like what it’s trained on, is becoming significant. 

What could and should you do with this technology?  Let’s follow, Alex, a seasoned logistics manager, into his journey with Generative AI in logistics. Hopefully, it will help you determine how to best apply this to your business.

Logistics 3.0 vs Logistics 4.0

Amid the hustle of daily logistics operations, Alex has found himself standing at a crossroads. The days of Logistics 3.0, with its familiar integration of technology and automation, were beginning to fade. A new era, Logistics 4.0, was dawning, bringing with it the promise of Generative AI.

In Logistics 3.0, Alex had seen the wonders of electronic data interchange, warehouse management systems, and transportation management systems. These tools paved the way for efficiency, streamlining operations, and data storage. Yet, something was missing. While data accumulated, its full potential remained untapped, and decisions largely depended on human insight.

Enter Logistics 4.0, a realm where technology is integrated and intertwined with every aspect of operations. Generative AI became Alex’s trusted advisor, offering capabilities that went beyond conventional wisdom. Here, data was stored and analyzed in real-time, creating predictive models, forecasting demand, and even simulating myriad scenarios.

Generative AI: A Helping Hand

With the introduction of Generative AI, decision-making saw a paradigm shift. No longer were decisions merely human-driven. Now, vast datasets could be processed with unparalleled speed and insights delivered directly to the team. 

Alex marveled as the AI suggested new routing strategies that outperformed traditional methods. When it came to risk management, AI could paint potential risk scenarios from existing data, enabling further preparedness against unforeseen challenges.

A New Era

Where Generative AI truly shone was in its influence on hyper-personalization and customer experience. 

Alex recalled a customer who had faced delivery delays in the past. Now before the customer could express any concerns, Generative AI analyzed previous interactions, preemptively providing solutions to identify and allow proactive mitigation of any delays. Such predictive customer service seemed like magic!

Customers were no longer treated with one-size-fits-all solutions either. Analyzing their preferences and behaviors, Generative AI tailored communications to fit an individual’s needs, background, and details. Natural Language Processing, powered by the same AI, equipped teams with accurate and individualized customer information. Moreover, dynamic pricing models consider each customer’s history, offering personalized pricing and discounts.

The power of Generative AI didn’t stop there. It sifted through mountains of customer feedback, highlighting sentiment and crafting actionable insights. This dynamic tool kept the team agile and evolving customer needs stay met.

In this new era of Logistics 4.0, Alex realized that the industry was undergoing more than just a technological shift. It was a transformation of values and priorities. Every customer interaction was now an opportunity to offer a more tailored, predictive experience that exceeded expectations.

Generative AI Concerns

Yet, as these capabilities expand, so do ethical concerns. Alex understood the importance of utilizing AI ethically, ensuring that it complements human skills rather than replacing them. He was also aware of the apprehensions among his team members.  They feared that AI might render their roles obsolete.

To address these concerns, Alex led training programs, emphasizing the useful relationship between AI and people. He shared how Generative AI could handle vast datasets, leaving the strategic and empathetic decisions to people, who were irreplaceable in these capacities. This synergy would ensure efficient logistics while preserving job roles, emphasizing the value of human touch in an AI-driven world.

Customer interactions presented another challenge. With Generative AI’s potential to personalize experiences, there was the risk of infringing on individual privacy. Alex championed transparent communication. He educated customers about how their data was used and the measures in place to protect their privacy. Training sessions were organized to equip team members with knowledge about ethical data usage, ensuring customers felt safe and valued.

Alex also recognized the importance of avoiding the misuse of AI. Though AI could suggest new routing strategies or predict potential challenges, the decision-making power remained with people. Alex believed that AI should inform decisions, not make them autonomously, especially when people’s livelihoods were at stake.

A Whole New World of Logistics

As he looked ahead, Alex felt optimistic. In this age, where brand loyalty was deeply rooted in personalized experiences, he knew that with Generative AI by his side, they were poised to lead, innovate, and set new standards in the world of logistics.

The leap from Logistics 3.0 to 4.0 marks a significant shift from manual and reactive operations to automated, intelligent, and proactive systems. Generative AI stands at the forefront of this revolution, providing the tools necessary for logistics companies to harness the power of their data, make informed decisions, and stay ahead in the competitive market.