Insurance BlogWednesday, August 07 2019
Orlando, Fla.—In Florida, when the Governor issues a state of emergency, FDOT and others allow certain trucking regulations to be temporarily relaxed or lifted. These apply to road use, size and weight restrictions, hours of service and other issues. Hurricanes, floods, fires, terrorism, and other potential hazards pose serious threats to businesses everywhere, and Florida is no exception. For that reason, it is of vital importance for businesses to be always prepared, and to safeguard the uninterrupted health of our State’s economy. Fleets preparing for a natural disaster should:
In the event of a natural disaster, the following resources will provide you the needed information to proceed with your business operation according to ordinances in place at the time.
It is of utmost importance to keep this information accessible in a safe place while in and off the road. Prior to a storm, it is a good practice to stock up on extra parts, including tires and hydraulic hoses. Finding safe ground for the fleet vehicles and enough fuel to sustain the operation when a disaster strikes, is one of the most important tasks during the preparation stage. Reporting all response activities is extremely important, especially if the Federal Emergency Management Agency (FEMA) will assist you with reimbursements. Keeping records of the amount of hours a machine ran; the amount of hours the staff worked; if your personnel were held over you must document for how long, even in their rest period. Insurance claims need to be fully documented about any loss claimed. When disaster has struck and your organization has been called into action, there are things a Fleet Manager needs to consider in order to support the response force. Knowing how to work within a State of Emergency, and under a formal Incident Command Structure, is paramount in order to execute an effective emergency response. Three major guiding principles that a fleet manager should consider in preparing to respond to an emergency are : Survivability – Does your plan actually work, and can it operate in a disaster? Do you test your plan regularly, and make changes from lessons learned? Does your plan protect your supply chain? Adaptability – Is it flexible? Is there room to adapt to the changes of the disaster? Does it spell out who’s in charge of what if one or more key persons is unavailable? What if staff are on vacation, out sick, injured or out of touch? Who has the authority to make decisions if you are out of town? Sustainability – Can you survive beyond 1-2 days? How do you provide fuel for days, weeks, months? How will you staff your shops after 3-4 days? How long could you be fully independent of the world (supply chain, fuel providers, etc.)? Are there things you can do to increase your independence? Thursday, July 11 2019
Orlando, Fla.— We have seen how the right technology, employed in the right way, can create bridges. A recent example is commercial drone delivery. The delivery drones market is expected to grow at a significant pace during the forecast period, due to the surging application of drones in the commercial sector. Companies such as Amazon, UPS, Google, and other delivery service providers are experimenting with Unmanned Aerial Vehicles (UAV) for home delivery of goods. Recently, Airbus unveiled Skyways drone delivery services in Singapore, which is expected to fuel the market growth. In 2016, the worldwide shipment of drones exceeded 100,000 units and the total market value was more than $2 billion. In the United States alone, the value of drone activity rose from $40 million in 2012 to $1 billion in 2017. According to a McKinsey report, by 2026 commercial drones will have an annual impact on US GDP of $31 billion to $46 billion. The market has been segmented by e-commerce, Quick Service Restaurants (QSR), convenience stores, healthcare, and others. The e-commerce segment of the market is expected to grow at the highest rate during the forecast period as there have been a high usage of drones for the delivery of products in the e-commerce industry. North America is expected to witness the highest growth during the forecast period. High production and increasing applications of delivery drones in commercial sectors are the major reasons for the high growth of this market. The key players in the delivery drones market are Amazon (U.S.), United Parcel Service (U.S.), JD.com (China), Uber Technologies Inc. (U.S.), EHANG (China), DJI (China), Skycatch Inc. (U.S.), Airbus S.A.S (France), Zipline International Inc. (U.S.), Alibaba (China), Flirtey (U.S.), FedEx Corporation (U.S.), and Google (U.S.). Regulations are the main challenge for the drone industry It’s clear that flying a drone above your picnic spot for amazing shots isn’t the same as delivering a package someone paid for. In the first case, you’re using a drone as a hobby, and in the second case, you’re using it for commercial purposes. Unlike personal UAVs, drones used for commercial purposes have to meet certain requirements. In the US, the Federal Aviation Administration (FAA) controls both personal and commercial uses of drones today. In addition, several states have their own specific requirements. Stringent regulations by the Federal Aviation Administration (FAA) and logistical challenges are restricting the use of delivery drones. It is also expected that poor infrastructure and complex terrain will be one of the major logistic issues for delivery drones. Therefore, high expertise and proper knowledge are required to maneuver delivery drones. Furthermore, the limited range of delivery drones (within ten km) is a major restraint for the market growth. With the cost of deliveries in rural areas estimated to be five times greater than in urban areas, using drones at scale can help equalize economic opportunity and access to affordable consumer goods between regions by bringing down the cost of rural logistics. The global commercial unmanned aerial vehicle (UAV) market is expected to reach $13 billion by 2025. However, they haven’t experienced their boom yet. The main reason for this is — regulations imposed on the drone industry. Tough rules for drone operations slow down adoption. This means that the commercial applications of drones in business are being limited. Although drones have proven to be highly efficient, they can’t work at their full capacity. And now, we are about to experience a new class — The Giant Dones — capable to deliver packages farther and faster. They are more environmentally friendly, and could completely change the cargo industry. These types of drones offer reduced carbon footprint but on a much larger scale. Focused on rural areas and shuttling goods between distribution centers, cargo drones are designed to land in the water or take off vertically, making drop-offs even more flexible. Thursday, June 06 2019
ORLANDO, Fla. —As we all know, Congress passed the 2018 Farm Bill, legalizing hemp. The Farm Bill removes hemp from the Controlled Substances Act and allows farmers to pursue federal hemp cultivation permits, while individual states can regulate the industry within their borders as they see fit. Already, 40 states have established hemp cultivation “pilot programs” for industrial and commercial purposes, although the plant has been strictly regulated. Hemp is primarily a cheap source of CBD, which has become a hot commodity, and the passage of the Farm Bill ensures that people who farm and create products with CBD are protected from prosecution. The federal legalization of hemp would also undoubtedly attract investors and businesses from outside the U.S. The USDA’s legal opinion basically reiterated many of the changes specified in the 2018 Farm Bill. The memorandum stated that hemp has been removed from the Controlled Substances Act (CSA) and that states and Indian tribes may not prohibit the interstate transportation of lawfully marketed hemp products, although they do have regulatory control over the production of the crop within their jurisdictions. About its transportation, too many questions remain. Recently, there was a case of a great-grandmother from Tenessee entering one of Disney’s theme parks who was arrested for carrying CBD oil. Despite having in her possession a note from her doctor, certifying its medical use for her chronic arthritis condition, was arrested. She spent 12 hours in jail and was trespassed from Disney property before being released on $2,000 bail. The charges were later dropped. In airports and airlines, the industry is also getting a boost from the new TSA ruling allowing passengers to carry on all FDA-approved medical marijuana products as well as certain types of CBD. In May 31st, hemp businesses together with regulators, scientists, and other stakeholders to assist with the “process of reconciling” varying state and federal laws. For example, In Idaho, the Ada County prosecutor charged a trucker, with illegally hauling hemp from Oregon into Idaho. The USDA opinion and disagrees with this high profile case. There has also been confusion over varying state laws regulating hemp-derived CBD in food, lotions and dietary supplements, substances that have become enormously popular among consumers. Whether recent regulatory developments will impel the Ada County Idaho Prosecutor’s office to drop charges against the above-mentioned case, and two other truckers remain to be seen. Originally, hemp cultivation became illegal in the U.S. in 1937, under provisions in the Marihuana Tax Act. In the intervening eight decades, American culture has steadily warmed to the idea of reviving the agricultural commodity and its many commercial uses. The hemp-derived CBD market was estimated at $591 million in 2018, and it was expected to grow 40 times its size—to $22 billion by 2022. The rapid growth will be supported by an anticipated explosion in distribution channels for these products in the next few years. For now, it is a matter of time, when the large alphabet soup of agencies involved in the process, and that are acknowledging the legality of hemp continue to help and keep the public informed. Saturday, May 04 2019
ORLANDO, Fla. —In 1946, then President Dwight D. Eisenhower signed into law the Federal-Aid Highway Act of 1956 creating our nation’s system of interstate highways. On May 16, 1957, Congress designated the third Friday of May each year as National Defense Transportation Day, and in 1962 Congress included the whole week within which the Friday falls as National Transportation Week. Separate from the Truck Driver Appreciation Week, which is celebrated in September, the National Defense Transportation Day is a United States Federal Observance Day to recognize the importance of transportation and the people who support and protect the system in this modern era. A proclamation is signed each year by the current President of the United States. So, the third week of May is when we celebrate National Transportation Week every year. As part of National Transportation Week, events and ceremonies will be held honoring and recognizing the importance of transportation in communities across the country. Truckers are an essential part of everyday transportation for almost every industry including, retail, manufacturing, automotive, and food and dining. First-year truck drivers have the opportunity to see the country, but will also be developing their driving skills. There are both positive and negative aspects to driving a truck and in the first year of driving, each trucker is sure to become acclimated with these different situations. According to the Bureau of Labor Statistics, trucking has a higher than average rate of growth, with twenty-one percent rate of growth and millions of available jobs on the hauling market. In fact, there continues to be a driver shortage year after year. Driver’s wages are more than twice as high as the federal minimum wage and will allow most to provide for his or her family and live a comfortable lifestyle. Trucking is physically demanding and being away from family, friends, and familiar areas can be emotionally and mentally exhausting, but once drivers settle into their new life as professional drivers, the benefits can far outweigh the negatives. There are an estimated 3.5 million truck drivers in the U.S. The following important events are taking place during the month of May and you may still have time to join. The Final Mile Forum & Expo
NASSTRAC SIP-N-SHIP: CHICAGO SHIPPERS SUPPORT INFRASTRUCTURE WEEK Join NASSTRAC for a fun evening of networking with truck-loving shippers as we show support for Infrastructure Week. We will be joining more than 400 Affiliate organizations, companies, and cities that are hosting 100+ events nationwide to celebrate the 7th Annual Infrastructure Week, May 13-20. Join our kickoff! Let’s #BuildForTomorrow. Starting now. The event will be held at Redwood Logistics in downtown Chicago! Tuesday, April 02 2019
ORLANDO, Fla. —Between 2016 and 2018, major developments in logistics led to the consolidation of major shipping companies. The result is fewer shipping carrier options for shippers. It has become difficult to survive as an independent shipper with a fleet of cargo ships. So in order to compete, shipping companies have joined forces to form shipping alliances. By the end of 2019, further consolidation is considered a double-edged sword because it may mean higher rates due to less competition. However, through consolidation, shipping companies will offer top-tier customer service and increased capacity. A few important aspects reshaping the Logistics and Supply Chain Industry this year include:
There is no scarcity of challenges in this entire process of transformation, but the opportunities are there for those who dare to tap into it. Thursday, March 14 2019
ORLANDO, Fla. —As we all know, mandating the use of electronic logging devices (ELDs) was aimed ultimately at reducing accidents and improving safety, but an academic team led by Alex Scott, assistant professor of supply chain management at Northeastern University’s D’Amore-McKim School of Business, analyzed Federal Motor Carrier Safety Administration data to assess how enforcement of the ELD rule was affecting three safety-related metrics: compliance with hours of service; accident counts; and the frequency of unsafe driving. What they discovered was research that shows mixed results toward that goal so far. While HOS compliance – the primary target of the ELD mandate – improved considerably, the study found that there was no decrease in the number of accidents for independent owner-operators and carriers with small fleets. It also found that unsafe driving infractions for small companies and owner-operators actually increased relative to large asset-based carriers. Aside from safety levels, a drop in productivity as a result of the ELD mandate has been a significant issue for both large and small carriers – although there’s evidence that drivers that effectively manage their hours post-ELD have been able to generate increased profits. Although full implementation of the electronic logging device mandate is yet months away, data gleaned from currently ELD-compliant operators is already informing the Federal Motor Carrier Safety Administration’s plan to propose changes to the bedrock hours-of-service rule, stated FMCSA Ray Martinez in his upbeat address to members of the Truckload Carriers Association on March 12. When the pre-rule was issued back in August, FMCSA said it came in response to “widespread congressional, industry, and citizen concerns and seeks feedback from the public to determine if HOS revisions may alleviate unnecessary burdens placed on drivers while maintaining safety on our nation’s highways and roads.” Martinez said the agency was continuing to evaluate the comments and is “very close” to deciding whether it can “move forward with an NPRM that would provide definitive text” to launch the next phase. Recently, a Minnesota lawmaker has made good on his promise and reintroduced legislation that would exempt some truckers from Electronic Logging Device regulations. Early in February 2019, Rep. Collin Peterson had plans to reintroduce two pieces of legislation intended to provide certain truckers with relief from the Federal Motor Carrier Safety Association’s ELD regulations, especially for small trucking companies most responsible for agricultural products. The bill would mostly benefit farmers and small businesses in rural America. These bills had originally been introduced back in May of 2018, did not get enough support from other lawmakers at that time when the Speaker of the House was Paul Ryan. Given the changes in that post, a new opportunity to reintroduce the bills has now emerged and along with recent research developments, a different outcome might be possible. Both bills would still require that truck drivers use paper logs and that they comply with all of the FMCSA’s Hours of Service regulations. Monday, February 04 2019
ORLANDO, Fla.—2019 will be crucial for retailers as the automation strategies seem to be gaining ranking in their list of priorities for this year. According to Forbes Magazine last year, the fascination for automation relies upon the fact that it lowers the cost to consumers of accessing a market, so more people can afford to buy in. So, even though there are fewer jobs supporting the same amount of revenue as before, there are net the same or more jobs because consumers are buying more – there is more overall revenue. What’s holding everyone back so far? The biggest fear that as automated work requires more skills, those without those skills or access to training to gain those skills can get left behind. Would it really get rid of so many workers’ jobs or the so-called “death of the worker”? Retail is currently a business model based on low skill, low pay, high turnover labor force. With that said, as the world moves forward to automation, not only workers will need to obtain new skills and get retrained – but retailers will have to re-learn how to retain those highly skilled workers and be financially ready to sustain a different payment plan. FOR EXAMPLE —A New Model For Online Grocery Fulfillment According to the report from CommonSense Robotics, retailers like Target, Amazon, Kroger and others have invested $28 billion in e-commerce in just the last 18 months. With an annual market of nearly $800 billion, groceries are strategic hence the reason why so many companies are trying to win the grocery wars. According to CSR, retailers incur a pure loss of $5 to $15 on every manually picked online grocery order. The loss gets gets worse when the number of online orders increases. It is for that reason that moving from in-store manual picking to a dedicated facility to solely support e-commerce is a model many retailers see as the logical next step. To reduce costs and increase efficiency, CSR has perfected the use of robotics to select and retrieve the items requested by each customer. CSR recently opened its first fully automated fulfillment center which offers a stark contrast to picking orders manually. Automation is being utilized by some retailers to solve for scale and economics. However, the challenge is that most automation vendors can only enable next-day delivery propositions. Given that same-day delivery rollout increased by 500% in 2018, this seems like a solution for 2017 and not the future, according to CSR. Some believe that the optimal strategy for grocery retailers is to maximize sales per square foot inside its stores and leverage an offsite micro-fulfillment center to fulfill online grocery orders. D3 State of Retail Supply Chain report, an industry survey conducted by EyerforTransport and Quintiq— with more than 200 retailers, e-tailers and manufacturers on a range of issues, revealed that companies are less focused on forecasting capabilities and more focused on implementing automation in 2019, especially in the warehouse. Half of retailers and manufacturers reported that warehouse automation is an "advanced or immediate priority," according to the survey. Monday, February 04 2019
ORLANDO, Fla. — It is the year 2019 already and the promise for Smart Cities in the U.S. According to BW Smart Cities, about 100 cities are expected to become representative “smart-cities” by the year 2020 and be on par with smart cities across the world. Yes, that’s next year! The United Nations predicts a world population of 9.7 billion by 2050, leading to an urban population boom of 63%. Driven by the rise in global population and urbanization, smart cities are set to alter our perceptions of society as technology and big data turn cities into efficient marketplaces for essential services. The modern smart city is usually a city that has partnered with private and public enterprises and businesses to leverage technology to:
Thursday, November 29 2018
ORLANDO, Fla.—Kids around the country are eagerly expecting their gifts this Holiday Season. In their minds, Santa Claus on his sleigh goes around the world and somehow always ends up at their house and leave their Christmas wishes under the tree. And all those Tonka trucks, ugly sweaters and, electronics bought online have to get delivered to more than 126 million individual homes or apartments in the U.S. Adults, on the other hand, understand how challenging it is for Santa to complete his mission on time year-after-year. Just the fact of going shopping in super crowded commercial centers is already overwhelming, but making sure to make it before those wishes are out of stock is a killer. Most people are even unaware of the entire process behind it, even when you buy through the most convenient services like Amazon. Note they would even bring your tree to your doorstep if you want. But free shipping is never free. That’s something small businesses know all too well, still, some small businesses are making shipping cheaper to lure in customers. In an era when retail continues to undergo a massive transformation, there's no letup in shoppers demand for convenient, quick and simple. The National Retail Federation forecasts online shopping, for instance, will increase 11 to 15 percent this year, with more than $140 billion in non-store sales expected this holiday alone. According to a news report from Forbes, on average roughly every fifth present opened this Christmas will have come to you, at least partway, by air. ‘In the vast majority of cases, it continues to be far more efficient and cost-effective for companies to stock their brick-and-mortar stores using relatively old-fashioned 18-wheel trucks. That, in part, helps explain the continued – and rapid - growth of the trucking industry in recent years, and the intense stress on trucking companies to hire more drivers and put more trucks on the road. But when it comes to fulfilling 2 billion or more individual orders placed directly with manufacturers or online retailers via the internet, each requiring delivery to a distinctly different doorstep somewhere, nothing is as efficient and cost-effective as small-package delivery via air. The growth in demand for delivery – both by air and by ground services – of holiday gifts has become so profound in recent years that all of the big shippers now dismiss the notion of there being a “busiest” shipping day before Christmas as a quaint old notion.” The three logistics and delivery giants have strategies to deal with the expected increased volume in online shopping this year. UPS leased and chartered planes fleet always reaches its annual zenith in December. FedEx, in the other hand, says it expects every Monday in December except December 31 to rank at or above its current busiest day ever, Dec. 10 of last year, when it took in more than 19 million packages. Amazon is hiring third parties to supply the aircraft and in some cases the crew, the maintenance, and operations expertise and even the insurance that covers its planes. Monday, October 08 2018
ORLANDO, Fla.—Let’s talk about the importance of including Canada in the new NAFTA deal. The deal, if approved by Congress and the legislative bodies in Canada and Mexico, would take effect around 2020, before that happens, there are a number of hurdles that require clearing — and in the meantime, old NAFTA is still in effect. Perhaps most people are unaware of the importance of Canadian business to the state of Florida. Canada ranks top in visitors, ranks second in foreign investment and in exports, and ranks number three in imports to our state. Also, Canada is the #1 customer for U.S. goods and Florida benefits greatly from it. According to the Florida Chamber of Commerce 2017, Canada is the only country with those high rankings in those four important Florida economic indicators. More than 580 subsidiaries of Canadian companies call Florida home, including 81 in Hillsborough County and 25 in Pinellas. Only the United Kingdom has a bigger footprint in Florida. Last year, Florida and Canada enjoyed more than $7 billion in trade, which supported about 600,000 jobs in the state, the U.S. Census Bureau and the Canadian government reported. Much of the trade is highly integrated — companies in both places rely on each other as part of their supply chain and distribution network but not all the exports are that integrated. Florida sends far more agricultural products to Canada, especially in the winter. To give you a clear idea, Canada is the largest foreign consumer of Florida’s produce, gobbling up more than $800 million worth of oranges, strawberries, bell peppers, and other fruits and vegetables. Canada sends back a lot more meat, grains, furniture, fuel, and wood products. But on the other hand, as a true example of its integrated logistics, Canada sends organic chemicals used by Florida’s fertilizer and pharmaceutical manufacturing companies. Some strawberry seedlings begin their process in Canada, to then be turned into fruit by Florida farmers in order to sell them back to Canadians. If you don’t call this love, we don’t what you would call it! It works the same way with airplane parts. Aircraft assemblers in Florida look to Canadian parts suppliers to feed their production, while Canadian companies depend on Florida to boost their U.S. and Latin American sales. Last year, Florida and Canada enjoyed more than $7 billion in trade, which supported about 600,000 jobs in the state, the U.S. Census Bureau and the Canadian government reported. Florida sent almost $3.6 billion in exports to Canada, second only to the nearly $4.1 billion exported to Brazil, according to TradeStats Express. About 22 percent came from the Tampa Bay area. As reported on October 1st by politifact.com, the new deal allows the United States to supply the equivalent of 3.6 percent of Canada's dairy market tariff-free, up from the existing 1 percent. It also eliminates a milk ingredient pricing policy that incentivized Canadian cheese producers to use local ingredients. It also seeks to increase the number of truck parts made in North America by raising the proportion of North American parts and inputs that must be used in a car for it to qualify for duty-free treatment but that it the part of the story where Mexico also comes into play. |
