After several record setting years, 2023 saw shifts to the freight market. How did the 2023 freight market affect shipper and carrier businesses? Did other businesses have the same struggles as yours? Are they expecting to face similar difficulties in 2024? How are their partner relationships? 

Trinity Logistics wanted to get answers to these questions for you, so we asked a random sample of our shipper and carrier relationships to gauge the effect 2023 had on their business and what their expectations for 2024 in our first Freight Market Survey. Here’s what we found out:

2023 SHipper & Carrier Data: Freight Market Survey Results

Past Challenges – Same, But Different

Considering the recent turndown of demand and the freight market, it’s not a big surprise that money was the biggest issue for shippers and carriers alike. Shippers answered that transportation costs were their biggest challenge in 2023, with supply chain delays/disruption and capacity not far behind. Low rates and increasing operating costs were the main challenges facing carriers. 

Business Impact – Could Have Been Better

Even with the change in consumer demand trending downwards throughout 2023, most shippers answered that their year was good overall. Carriers on the other hand seemed to face a rougher year in business with over half of them stating their year could have been better or was poor. 

A LOOK INTO 2024

Future Challenges – Money Problems

2024 isn’t looking much different in terms of challenges compared to 2023. Shippers look to have the same financial challenges as they did in 2023 with transportation costs, supply chain delays/disruption, and decreased demand being the top concerns selected. Carriers are still concerned about low rates, operating costs, and low freight volumes hurting their businesses. 

Hot Trends

Even though transportation costs are shippers’ strongest concerns in their previous answers, it seems the increased amount of supply chain disruptions and delays we’ve all experienced in these recent years have hit a nerve, with the majority answering that supply chain resilience is the trend their business is most interested in. Cybersecurity also looks to be a growing interest.

Carriers on the other hand, interestingly enough, look to the recent trend of Artificial Intelligence (AI). Also, as noted in the comment boxes of our “Other” option, increased rates and better fuel prices were trends they’d like to see in 2024. 

Load Volumes & Capacity – Slightly Positive Outlook

Overall, shippers are slightly more optimistic for 2024, thinking it won’t bring any change or the change it brings will be positive. Most think load volumes will stay the same or there will be a little more in freight volumes this year. As for truck capacity, they think it will be the same as 2023 or slightly tighter. 

Carriers also think 2024 will bring more freight volumes and that capacity will likely stay the same or get tighten slightly versus 2023.  

Spot or Contract?

Year-over-year, shippers aren’t looking to change much in terms of which market they turn to. Most look to continue to put most of their freight on the spot market.

For carriers, there looks to be some change anticipated. In 2023, most carriers ran spot market freight but in 2024, over half of them look to haul contracted freight. 

Do Shippers Have a TMS?

It’s 2024, so you’d think most shippers would have a transportation management system (TMS), and no surprise, they do. For those that don’t and answered, it seems they did not have a good experience with one in the past or don’t know enough about them. 

Brokers Are the Way to Go

When asked how they like to move their shipments, most shippers use a mix of carriers and third-party logistics providers (3PLs) or just 3PLs. A few do use their own trucks. For those that do outsource to 3PLs, they usually just stick to one provider.

Shippers most often look to a 3PL for help with their everyday shipments, for transportation management, visibility, and access to their capacity. The main reason shippers choose not to work a 3PL for their logistics? They don’t like the risk. 

Transportation Modes – Staying Consistent

Overall, shippers aren’t looking to change what transportation modes they use for their shipments. Truckload and less-than-truckload (LTL) are the primary modes they like to use, with a little diversification sprinkled in.

Exceptional Service Stands the Test of Time

When it comes to their logistics partners, shippers find the most value in receiving exceptional service, with costs coming in as a close second. 

Most Wanted: Long Mileage, Flatbed Shipments

When it comes to mileage, most carrier companies tend to run long-hauls or a mix of short and long shipments. Flatbed hauls are the type of shipments most carriers like to haul with dry van coming in as a close second. 

Load Boards are the Way

With 74 percent selecting this option, load boards are the norm for carriers to find available shipments. Sometimes they use their shipper relationships, and occasionally they make use of a 3PL. 

3PLs – Expanding a Carrier’s Reach

Carriers most often look to a 3PL for help with gaining access to available shipments that they wouldn’t have otherwise. Covering backhauls are another big reason carriers reach out to a 3PL. 

For those that choose to not work with a 3PL, it’s often because of money; rates not being high enough. Surprisingly in the comments, many are not familiar with what a 3PL or freight broker is as well.  

When it comes to measuring value in their 3PL partners, most carriers want good rates and great communication.

Fraud Concerns Growing

Fraud and scams have been growing in the industry, so we wanted to know what carriers think about it. Carriers are most worried about double and triple brokering affecting their businesses compared to concerns of identity theft or cargo theft. 

Successful goal-setting is a necessity for Freight Agents to run prosperous businesses. If you’re feeling stuck with your goal setting, the Fresh Start Effect could help you achieve what you want.

If you perform a web search on the “Fresh Start Effect”, you’ll find a lot of articles and studies on the impact that a Fresh Start Date has on goal setting.  

What is a Fresh Start Date? 

It’s a date that signifies a clear end and a new beginning. New Year’s Day is the epitome of a fresh start date because you’re ending one year and starting a new one. However, a Fresh Start Date doesn’t have to be as well known as New Year’s Day. It can be any day that signifies a new beginning such as your birthday, Mondays, the first day of a new month, etc. 

Why Is a Fresh Start Date Important in Goal-Setting?

Studies show that people are more likely to commit to their goals when centered around a Fresh Start Date. It gives a boost to let go of the past, whether it’s a behavior that you would like to let go of or a new behavior that you would like to start.  

Tips for Freight Agents to Achieve Their Goals

If you’re looking to really set yourself up for success when setting your goals, here are some tips you can put into place.

1. Set Your Fresh Start Date  

Choose your Fresh Start date to give yourself an extra chance at committing to your goal!

2. Make It S.M.A.R.T.  

Using this tried-and-true goal setting method can help you become specific in what you are trying to accomplish. Make sure your goals are specific, measurable, attainable, realistic, and timely, giving you a greater chance at seeing success. 

3. Know Your Why 

Make it personal. Why is this goal important to you? How will your life look different when it is accomplished? Goals that don’t have a personal why behind them can seem arbitrary and make it very easy to quit.

4. Write It Down and Share It!  

Writing down your goal in a place that you can see often, such as a daily planner, helps keep you focused on the goal. Having someone else aware of your goal also helps you stay accountable to yourself!

5. Plan Ahead 

This is the beauty of a Fresh Start Date. By knowing when you are going to start, you can put in the work ahead of time to close out your current chapter and begin the new one.  Whether it’s transitioning and delegating responsibilities or researching and learning so that you can hit the ground running on your fresh start date, having some pre-planning time will allow you to focus on the goal ahead.  

6. Celebrate! 

Having a significant reward or way to signify the achievement of a goal can help maintain motivation. For example, one goal that many of Trinity’s Independent Freight Agents have each year is to achieve Platinum status. This is a designation set aside for Agents that hit production goals in a calendar year. The reward for our Platinum Agents is an all-expense paid vacation for two! It’s a great way to recognize success, celebrate, and network with other Platinum agents so that you can start getting motivated for the next year!

One thing many people forget is that goals don’t just have to be professional; they can be personal, too. Whether you want to strengthen your relationships or learn a new skill, use these tips to get yourself there.  

How Trinity Helps Freight Agents Get a Fresh Start for Their Business

At Trinity, we plan our goals around our monthly periods. This gives us the opportunity to evaluate regularly to ensure that we are staying on track and adjust quickly if needed. With our Independent Freight Agents, we work with them based on their personal business needs. Depending on the particular goal of a Freight Agent office, we may review these monthly, quarterly, or annually.  

For instance, many of our Agents set the goal to achieve Platinum Agent status. Because of this, we have a Platinum Agent tracking tool that we can send out at any time to help them track their progress toward this important goal. 

A Fresh Start Date is just one tactic to setting your Freight Agent business up for success and always a great time to re-evaluate your current brokerage partner.  In fact, Freight Agents who partner with Trinity Logistics often see an average of 20 percent growth within their first two years of joining. 

Check out the details of Trinity’s Freight Agent program to see if making a change at your next Fresh Start Date may be right for your business. 

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

COULD WE LOSE CARRIER CAPACITY….WITHOUT LOSING ACTUAL CAPACITY?

Certainly, this question could cause one to scratch his head. If we don’t have a decline in the number of operating authorities, or available trucks, then how could we lose capacity? 

Well, technically, the answer is you would not be physically losing trucks. However, an impact could be felt from recent events with regards to container shipping that would make it feel like less trucks are available. With recent geo-political events, and events at home, shipping to the West Coast has become more feasible than it was a year, certainly two years, ago. As ocean carriers are mindful of events in the Red Sea, combined with an easing of labor tensions at the West Coast ports, freight that in prior years was diverted to the East Coast is now heading back to the left coast of our country.  

As you can see in Figure 1.1, container costs from Asia to Los Angeles are over $1700 cheaper than freight bound for an East Coast port, such as New York. Figure 2.1 shows outbound freight volume for the last year in the Los Angeles market, currently seven percent higher than this time last year.  

So how could this impact capacity? When freight hits the East Coast ports, it’s typically consumed close to the port or at the very least, the coast itself. This means more regional runs. When freight hits the West Coast, typically that freight is destined for locations such as Dallas, TX or Chicago, IL, so taking freight up and down the East Coast may be a one-day run. Freight out of the Los Angeles market, heading to further destinations would take a day and a half, two days.  

Same freight, same one-truck move, but now it occupies that truck for twice as long. Additionally, this could necessitate a shifting of fleet resources from one coast to the other, potentially creating an over-capacity on one side of the U.S. while the other coast is more desperate for trucks.

SPRING IN 6 WEEKS?

Will that rodent in Pennsylvania be right this year, and will freight volumes accelerate quicker as a result? First of all, ‘ol Punxsutawney Phil is batting less than 50 percent for his career and the last 10 years he’s only been accurate three times.  

A better canary in the cave would be how the rejection rate index ebbs and flows. As you can see in Figure 3.1, van rejection rates have been pretty stagnant for the past year. Flatbed has remained relatively high and reefer rejection rates have trended up the last five months. If Phil is a soothsayer this year, we expect flatbed rejection rates to continue rising. If produce season also starts earlier than most, reefer rejection rates will then follow. 

As reminder, with increases in rejection rates, shippers typically see transportation costs increase on the spot market.  

Stay tuned for next month’s update to see if an early spring is a turning of the tide for the freight market.

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Trinity Logistics, a leading logistics solutions provider, has been breaking bread with its customers through a series of exclusive roundtable events. These gatherings offer a unique platform for local customers to engage with Trinity’s Team Members, share insights, and strengthen collaborative relationships.

The first of these engaging events took place August 2023 in Dallas, Texas, at the acclaimed Pappas Bros Steakhouse, creating an inviting atmosphere for meaningful conversations. Following the success in Dallas, Trinity Logistics continued the momentum, hosting its second customer roundtable in November 2023 at the esteemed Steak 48 in Philadelphia. 

The roundtable events go beyond the conventional business setting. Attendees, comprised of Trinity’s Team Members and their shipper relationships, participated in candid discussions about the current state of affairs, challenges faced by the individual companies, and their strategic focus for the future. 

Deb Carrasquillo, a valued shipper relationship from Nichino America, attended the roundtable event in November and shared her thoughts on the unique experience. “The customer roundtable held by Trinity Logistics was a great opportunity to discuss logistical challenges facing businesses in our area outside of our industry. Sharing ideas, resolutions, and challenges amongst our group of supply and logistics professionals was a realization that our particular hurdles are consistent amongst other industries. We all depend on Trinity to assist us in achieving our respective corporate, supply, and customer goals. It was an excellent opportunity to meet and discuss with Trinity executives that we don’t normally interact with.” 

Amanda Lloyd, Director of Sales Operations at Trinity Logistics, expressed the company’s commitment to fostering these connections. “Our customer relationships are at the heart of everything we do. These roundtable events are about more than talking logistics, but building long-lasting, successful business partnerships. We’re thrilled to have these opportunities to connect in person and gain valuable insights to how we can improve our services and solutions offered to shippers.” 

Encouraged by the success of the initial events, Trinity Logistics is excited to host their next customer roundtable in Miami, Florida, scheduled for March. Invited attendees will have the exclusive opportunity to enjoy an evening filled with dining, engaging in conversations with Trinity Logistics Team Members and likewise industry professionals, while having the opportunity to shape the future of their logistics partnerships. 

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.

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.