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Monday, March 30 2020
And then along came the pandemic

Orlando, Florida—There was the truck driver shortage challenge was already there, it hasn’t gone anywhere up until now, and then came the coronavirus pandemic. Not only truck drivers are important helping us keep our lifestyles by keeping your stocks supplied of what you need, when you need it —but now, more than ever, they are essential to keep us all going.

There is no doubt these are very difficult times, not only for us in the U.S., but the for rest of the world. Our hearts go out to those families who have lost loved ones at home and/or abroad.

The CDC  recently issued a strong Travel Advisory, to be administered by the Governors, in consultation with the Federal Government in order to avoid a quarantine. The CDC does not generally issue advisories or restrictions for travel within the United States. However, cases of coronavirus disease (COVID-19) have been reported in all states, and some areas are experiencing community spread of the disease. The domestic travel advisory does not apply to employees of critical infrastructure industries, including but not limited to trucking, public health professionals, financial services, and food supply

The U.S. Centers for Disease Control and Prevention issued guidelines for truck drivers delivering into New York City area, which is one of the hardest-hit by the COVID-19 pandemic. About  a half of all cases reported in the U.S. were in New York – almost 10 times more than any other state.

With that said, the CDC stated that truck drivers and other workers who obtain or deliver needed supplies who live in the greater New York area, may continue to work both within and outside of the greater New York area, but should stay at home and practice social distancing according to instructions of state and local officials when they are not working. When delivering goods and supplies, they should follow the same precautionary measures as those delivering in the city from outside the region.

While the CDC advisory is not currently mandatory, other states are implementing more restrictive quarantines. Rhode Island Governor Gina Raimondo signed an executive order recently that anyone traveling to Rhode Island from New York must be quarantined for 14 days. State troopers will also be stopping any vehicles with New York plates from entering Rhode Island. RI decided not to stop commercial vehicles or tractor-trailer trucks with New York license plates, that might be carrying food, supplies, or medicine into their area.

Florida, on the other hand, is attempting to keep New York passenger vehicles from entering the state. An advisory on the Florida Trucking Association website has alerted commercial truck drivers that there are checkpoints on I-95 at the Florida-Georgia border and at the eastbound I-10 3.3-mile marker from Alabama at the weigh station. Truck drivers will be guided through a bypass lane.

If you are an owner/operator of a truck company and have insurance issues, or questions please contact us at Florida Transportation Insurance (407) 501-8275 we’ll be happy to assist!

Mariana Zorrilla CIC, CRIC,CPIA

Email Mariana Zorrilla
Call 321-206-8035

Posted by: AT 04:10 pm   |  Permalink   |  Email
Thursday, March 05 2020
Shared, Electric, and Self-Driving

Orlando, Florida—According to experts, the future of transportation is shared, electric, and self-driving. Our state of Florida is racing to overtake states like Arizona and Nevada as the training ground for tomorrow’s self-driving vehicles. Over the past seven years, Florida has been passing legislation that is friendly to AV research and development, very appealing to companies with prospects of lax regulation, good weather, and abundance of tourists/taxi businesses and retirees. AV startups from Pittsburgh to Silicon Valley have launched operations in Florida.

It is yet to be seen if the state is ready for an influx of these companies and these vehicles. The state has a history of AV-related crashes, including two high-profile fatalities involving semi-autonomous vehicles. Critics worry that bad or careless actors could exploit the state’s laissez-faire approach to regulation, and that residents would pay the price.

Florida isn’t the first state to try and entice AV companies with loose laws. Michigan and Texas permit AVs without drivers as well. Meanwhile, Arizona lacks regulation on this topic. However, in Florida, the state does not require companies to register for permits in order to operate autonomous vehicles. It means that the state does not necessarily tracks how many such vehicles are being operated on its roads at any point.

Last year, AV operator Voyage, expanded its autonomous taxi pilot program through a partnership with the well known community in Central Florida, The Villages. The company is currently adding funds to increase its fleet of second-generation self-driving cars (called G2) that are currently being used in a 4,000-resident retirement community in San Jose, Calif., as well as The Villages, a 40-square-mile, 125,000-resident retirement city in Florida. 

The company’s goal in The Villages is straightforward: master self-driving in a simple and slow environment for a targeted demographic, and then maybe deploy it somewhere more complex. In the other hand, in Miami, two other producers of automated vehicles, Ford and Argo AI, are taking the opposite approach, deploying cars in technically challenging environments. Safety drivers accompany the vehicles, and those drivers are instructed to take over control of the AV at the first sign of trouble. Meanwhile, co-drivers sit shotgun and take notes so Argo’s engineers can later refine the system.

Tampa has also proven to be a popular proving ground, The city’s 14-mile Lee Roy Selmon Expressway has become a test track for autonomous semi-trucks and vehicles. Although self-driving cars have ostensibly been on the horizon for decades, the last five years have seen automakers accelerate the hype.

On a funny note, the public response to AV companies in Florida has been mixed. The driver of the Ford and Argo AV told me that pedestrians in Miami pose for selfies with the car and even toss money at it as if it was a dancer. But other drivers are quick to lay on their horns when the AV obeys explicit traffic laws, such as stopping for yellow lights, and hesitates when taking unprotected left turns at green lights. If AVs and humans are going to safely share the road, vehicles might first need to drive more like people.

If you own —or are considering to start a business in the transportation industry, or become a driver, Florida Transportation Insurance offers flexible commercial auto insurance that grows with your business. From one taxi to a fleet, we have a policy that will meet your industry’s insurance needs. Contact us for an orientation (407) 501-8275!

Oscar Pacheco - Licensed Agent

Call 321-206-8035

Email Oscar

Posted by: AT 04:24 pm   |  Permalink   |  Email
Wednesday, February 12 2020
2020 Trucking Industry Shows

Florida—New year, new schedule! One of the best ways to stay abreast with everything going on in this fast changing Trucking Industry is by participating in trade shows throughout the year across the nation. Believe it or not, many of these events are free and family friendly, even pets allowed.

FEBRUARY 24-27, 2020 

The Technology & Maintenance Council (TMC) Annual Meeting & Transportation Technology Exhibition
Atlanta, GA 

TMC is North America’s premier technical conference for trucking with educational sessions covering all aspects of vehicle Web-tmcannual.trucking.org 

  

MARCH 1-3, 2020 

TCA Annual Convention
Orlando, FL 

The Truckload Carriers Association’s 82nd Annual Convention brings together more than 100 industry suppliers in 22,000 square feet of exhibition space as well as several speaking sessions.  

Web-tca2020.com 

  

March 3-6, 2020 

The Work Truck Show
Indianapolis, IN 

Put on by The Association for the Work Truck Industry (NTEA), The Work Truck Show is North America’s largest work truck event. Programming includes a massive exhibitor floor and conference with lots to see and do.  

Web-worktruckshow.com 

  

MARCH 26-28, 2020 

Mid-America Trucking Show (MATS)
Louisville, Kentucky 

MATS is the most comprehensive trucking event with over 1,000,000 square feet of exhibition space and more than 1,000 exhibitors. It’s a great opportunity to research new products, connect with experts, keep up with regulatory changes, and more. Exhibitor and attendee registration are free until February 20, 2022. 

Web-truckingshow.com 

  

APRIL 6-8, 2020 

NAFA 2019 Institute & Expo
Indianapolis, IN 

The National Association Fleet Administrators’ annual Institute & Expo is the largest gathering of fleet professionals, attracting fleet managers at all stages of their careers. The even offers cutting-edge training and engagements with prominent speakers as well as the opportunity to check out the latest products and services. 

Web-nafainstitute.org 

  

APRIL 26-28, 2020 

NPTC Annual Education Management Conference and Exhibition
Cincinnati, OH 

The National Private Truck Council’s Annual Conference and Exhibition has over 1,250 attendees and 165 exhibitors as well as educational opportunities across a wide variety of topics. 

Web-nptc.org 

JULY 9-11, 2020 

Truckers Jamboree
Walcott, Iowa 

Since 1979, the annual Trucker’s Jamboree has been a celebration of America’s truckers. Parking and admission are free for this one-of-a-kind event which features everything from carnival games through live country music, the Trucker Olympics, the Iowa Pork Chop Cookout and over 175 exhibits. 

Web-iowa80truckstop.com/trucker-jamboree 

  

AUGUST 27-29, 2020 

The Great American Trucking Show (GATS)
Dallas, TX 

The Great American Trucking Show is an interactive and all-encompassing public convention of trucking professionals. Expect to see more than 150 trucks, 500+ exhibitors, 50,000+ products, and attend with 50,000 other industry professionals. Registration for GATS is free online or $10 on-site. 

Web-truckshow.com 

SEPTEMBER 20-24, 2020 

CVSA Annual Conference and Exhibition
Wilmington, DE 

The Commercial Vehicle Safety Alliance’s premier meeting, the CVSA Annual Conference and Exhibition, provides the opportunity for government officials, enforcement and industry to gather together to affect meaningful changes to the overall culture of transportation safety throughout Canada, Mexico and the United States. 

Web-cvsa.org/eventpage/events/cvsa-annual-conference-and-exhibition 

  

SEPTEMBER 23-35, 2020 

Women in Trucking Accelerate! Conference & Expo
Dallas, TX 

Accelerate! offers more than 60 educational sessions covering critical transportation issues and trends as well as perspectives from women in the industry and a full expo. More than 1,200 are slated to attend. 

Web-womenintrucking.org/accelerate-conference 

  

OCTOBER 24-28, 2020 

ATA MCE Conference & Exhibition
Denver, CO 

The American Trucking Association’s (ATA) Management Conference & Exhibition (MCE) brings together trucking executives from across the country to explore economic, regulatory, and business trends that drive the success of fleets today and in the future. More than 2,500 of trucking’s top decisionmakers attend MCE annually. 

Web-mce.trucking.org 

  

NOVEMBER 19-20, 2020 

NASTC Annual Conference
Nashville, TN 

The National Association of Small Trucking Companies’ Annual Conference is helps small trucking companies control their costs through managed purchasing, analysis, consultation, and advocacy; leveling the playing field and allowing member companies to prosper. 

Registration begins February 1, 2020. 

Web-nastc.com/nastc-annual-conference/annual-conference 

We hope you can attend some these events, and find them productive and helpful in finding solutions to make your business prosper and grow.

At Florida Transportation Insurance, we specialize in truck insurance and commercial vehicles coverage in the state of Florida. If you have questions about how how to best protect your investment in the trucking industry, or any other insurance aspects for your business, please do not hesitate to visit us online at Florida Transportation Insurance, or you may also call us directly at (407) 501-8275. 

Diana Munoz, CRIS

Email Diana Munoz
Call 321-206-8035

Diana Munoz - Linkedin

Posted by: AT 12:14 pm   |  Permalink   |  Email
Thursday, December 19 2019
Will You Have a Happy Return Season?

Orlando, Fla.—When you own a business, your Holiday Season may be as Happy as what your Return Season will be. So far, we know shoppers return their purchases 18 percent more frequently that during any other sales season. How prepared are you to handle reverse logistics in the coming months? The reverse logistics that directly impact supply chains the most are the return of products from the end consumer back to the manufacturer.

Processing a high-volume of returns can be time-consuming, labor-intensive and costly. Outsourcing helps to ease pain of Reverse Logistics. Engaging a Third Party Logistics (3PL) provider can help to address common pain points in the returns process.


For example,

If you think your returns will be out of control after Christmas, a third party provider has more flexibility with space, and brings additional staff and other resources to the table.

Your 3PL provider should be able to manage returns and get products back in inventory more efficiently and cost effectively with a robust order management system (OMS).

3PL’s  can offer facilities to create a centralized hub that is more convenient for the customers and get salable products back in stock at a faster pace.

In order to ensure quality control you must examine the returned product or item, to determine whether it should be sent back into the inventory which is an area where an experienced third party provider could really assist. Some may even refurbish or repackage items as needed.

The FREE SHIPPING success — A 3PL’s established relationships with carriers, understanding of pricing considerations and ability to negotiate rates can help minimize return shipping costs.


It is important to understand that companies that implement an effective reverse logistics workflow can receive many benefits. 

Among them:

  • Reduced costs. By planning ahead for returns and making the return order right, you can reduce related costs (administration, shipping, transportation, tech support, QA, etc.)
  • Faster service. This refers to the original shipping of goods and the return / reimbursement of goods. Quickly refunding or replacing goods can help restore a customer’s faith in a brand.
  • Customer retention. Dealing with errors is just as important as making sales. If a customer had a bad experience with your product, you have to make it right. Fulfillment blunders can create educational opportunities. Learn how to keep your customers happy and engaged with your company - even after you’ve made a mistake.
  • Reduced losses and unplanned profits. Recover the loss of investment in your failed product by fixing and restocking the unit, scrapping it for parts, or repurposing it in a secondary market. With a good reverse logistics program in place, you don’t have to leave money on the table. Take a product that would otherwise just cost your company money and turn it into an unforeseen asset.

Now that the Holiday Season is in full swing, you know those holiday returns are coming.  Be prepared for a happy return season!

If you have questions about logistics and transportation insurance coverage or need a free quote,  please contact us at Florida Transportation Insurance (407) 501-8275. 

Oscar Pacheco - Licensed Agent

Email Oscar

Posted by: AT 08:38 pm   |  Permalink   |  Email
Friday, November 08 2019
Things To Keep in Mind for a Successful Holiday Season

Orlando, Fla.—Supply chain volatility is the new normal. Affected logistics stakeholders are diversifying their assets, technology, suppliers, and partner relationships to face ongoing challenges. Among them, Amazon’s expansion, tight labor and space on warehouses and distribution centers, increased volume of returned  merchandise, and of course we have to mention tariffs.

These are disruptions the supply chain will continue to combat in 2019 and forward.

Tariffs

As we know, the escalating trade dispute between China and the US doesn't show any signs of stopping, as negotiations have fallen apart multiple times. Domestic ground carriers are hurting, because freight demand is negatively impacted by the high levels of inventory held by U.S. importers.

Many other industries aside transportation are fighting hard to adapt to the new trade environment as well. Some of them include telecommunications giants, agriculture, automakers and manufacturers, among others.

Returns Increased Volume

Also known as reverse logistics, is expected the experience continuous growth in what’s left of 2019 and further, and many shippers seem to be turning to third-party logistics providers to support this area. Mostly triggered by Amazon’s customer satisfaction’s policy, which has helped them earn a great reputation for reliability, consumers return billions of dollars in merchandise they purchased online, and they want the process to be easy and free. The big winner is the customer, and experts don’t see this changing in the near future.

Amazon’s Expansion

It is no secret that Amazon now has logistics in place to reach most U.S consumers in one day. They announced a rapid expansion of their one-day shipping. Walmart, and other major retailers have challenged their bold move with similar plans, but e-commerce businesses that don't have the right level of resources have reasons to be concerned.

Tight Labor and Space

Last year, the tight labor market stood out as the overriding challenge for warehouse operations managers. This year, according to the “Warehouse and Distribution Center (DC) Operations Survey,” labor scarcity remain the top challenge. The struggles to find and retain an effective workforce are being done against a backdrop of continued business growth and the ongoing impact of e-commerce fulfillment activity. It feels more or less like trying to fix the engine of plane in full flight. It is a difficult problem to deal with, but not impossible, as  shown in the Redwood Logistics case for winning the Top Workplaces 2019 honor by The Chicago Tribune. Redwood is committed to providing an inspiring company culture that encourages comradery, teamwork and self-expression. As the company continues to expand, Redwood's focus remains on supporting a collaborative and creative environment.

It’s a frustrating inability to attract and retain a qualified hourly workforce as cited by 50% of the survey respondents. This year’s survey shows respondents are budgeting for change; they’re looking to use more technology and automation; and they are looking to improve their operational processes and controls. Managers responsible for distribution center operations are focused on ways to find efficiencies to deal with the changes brought by e-commerce growth, and help mitigate labor scarcity.

For questions about transportation  and logistics insurance or quotes, contact us at (321) 206-8035. 

Diana Munoz, CRIS
Email Diana Munoz
Call 321-206-8035
Posted by: AT 06:17 pm   |  Permalink   |  Email
Friday, October 04 2019
Logistics Spending Expected to Soar in 2020

Orlando, Fla.—Day after day, here in the U.S. we continue to hear about mega stores that have been a shopping experience staple in every family, deciding to close business. Some others, like Walmart, Target, among many others, even Marshall’s in recent days — have joined the hustle of e-commerce, in order to stay alive, competing not only in quality and price, now — but offering FREE SHIPPING and other convenience terms that ultimately make the end customer value their service more.

With a competition that is heating up to fulfill an increasing demand, and up to 15 percent growth forecasted, accurate and efficient Third Party Logistics processes must decrease their costs, while maintaining their customers’ service expectations. That is the key to secure success in the future. Thus, adopting automation is becoming more, and more indispensable. The word automation itself sounds a little scary for some, especially when there is no certainty of how many jobs will end up being displaced, and what programs are being put in place by both the government and the private sector, to retrain the workplace and keep them productive within a healthy economy.

Again, emerging technology adoption will be key to that goal’s success. 

More collaboration between shippers and TPL companies — Third party logistics companies are expected to rely heavily on technology to collaborate, connect, and better engage with customers. 

The importance of mobile applications—Freight shipments ordering and processing will be possible 24/7 by buyers from anywhere thanks to the agility and mobility brought by mobile applications.

Specialized smart technology — Transportation Management Systems type software solutions are expected to lower inefficiency and costs while saving valuable time. 

Sharing information — Essential to item tracking throughout the supply chain, also to provide a capability to serve trends efficiently and meet flexible operation demands. 

Global economy—By 2020 many challenges are expected to be faced down to increase growth dramatically, largely due to emerging and expanding global markets on a massive scale.

Manufacturer and shipper collaboration —Manufacturers must collaborate with suppliers on production schedules, ensuring raw materials will be readily available. 

Workflow increase — Automated and system-generated data may allow pallets using GPS technology that may even self-report delivery errors to achieve in-transit, corrections, utilizing advanced sensors where inventories will self-count.

Diversification —A transformation from commodity distribution services to more complex organizations offering online ordering, returns processing, product assembly, documentation and inventory management is in order for 2020.

Top Notch Staff Management —A well-rounded transportation management system for worker management improvements, from time per task, chosen carriers, invoice accuracy and handling of freight claims management will be required.

The following conferences in 2020 pose an excellent resource to jump onto these new trends.

At Florida Transportation Insurance, we help you secure your future, by protecting your present investment. As Florida’s premier delivery, logistics, and courier insurance agency, we understand the demands of your business and how to best protect it from costly risks and liabilities.

From Cargo Insurance, to Warehouse/Terminal Coverage. Our professional staff, and specialized local agents are trained and prepared to find insurance solutions that fit your business needs.

Contact us for a FREE consultation!

Diana Munoz, CRIS

    

Email Diana Munoz
Call 321-206-8035

Posted by: AT 02:11 pm   |  Permalink   |  Email
Thursday, September 05 2019
Delivery Businesses Thrive and Why Insurance Matters

Orlando, Fla.—As demand for deliveries whether you are a restaurant or a retailer, more businesses may need commercial car insurance for delivery drivers. A Commercial Auto Insurance and Delivery & Logistic Insurance might be an appropriate fit. Also, additional coverage options like Hired and Non-Owned Auto Insurance can cover employee accidents that happen while using their personal vehicles for business errands.

Commercial Auto Insurance provides liability protection when your drivers get into an accident while driving a company-owned vehicle. It can pay for property damage or physical injuries your driver causes, plus related legal expenses. It can also cover medical expenses if your driver is injured in the accident.

But note— drivers of most delivery-based businesses probably use their own vehicles to make deliveries. A Commercial Auto Insurance policy doesn't provide coverage for drivers involved in an accident while driving their own personal vehicle.

If you file a claim on your personal car insurance for a vehicle you use for work, your car insurance company may deny your claim simply because some business uses violate the terms of your personal car insurance policy.

You Need Commercial Auto Insurance When You:

  • Transport goods or people for a fee in your vehicle.
  • Conduct a service using your vehicle.
  • Need higher limits of liability because of the nature of your work.
  • Haul a considerable weight in tools or equipment or towing a trailer used to conduct your business in your vehicle.
  • Have employees who operate the vehicle or if it’s owned by corporation or partnership.

FUN FACT:

Domino's says its delivery drivers will log

4 million miles on Super Bowl Sunday,

the busiest pizza-delivery day of the year.

A Lot of People Ask Us — Is Pizza Delivery Insurance Real?

You won’t find it by that particular name,  but as we mentioned, there are a few insurers out there that do offer special policies, or supplemental coverage to a personal policy, specifically for delivery persons. Ask one of our agents at Florida Transportation Insurance about your viable options.

As food delivery demand increases, many of these drivers face the same challenges, of getting to their final destination before the meals get cold,  that means, the risk of having accidents also increase. Insurance companies know it.

As the local leaders in last mile, same day delivery, logistics, and courier insurance in Florida, we’ve developed exclusive carrier relationships that enable us to find the best coverage options at the most affordable price to our clients. Not only can we provide you with proven insurance products, but we can also provide a great service as you grow your business.

Our agents understanding of the courier and delivery industry enables us to design risk strategies that protect and serve all areas of your business, including the most specialized. In addition, our specialized carrier network and knowledgeable underwriters can offer you insurance coverage that are unmatched in the same day, expedited delivery and logistics industries.

Business We Insure


•    Same Day Delivery
•    Courier Service
•    Home Delivery
•    White Glove Delivery
•    Expedited Delivery
•    Freight Broker / Forwarder
•    Restaurant Delivery
•    Grocery Delivery
•    Logistics & Warehouse Services

Give us a call at Florida Transportation Insurance at (407) 501-8275, and we will be happy to assist you finding the right insurance solutions for your type of commercial vehicle.

Delivery Insurance in Florida

Mariana Zorrilla,  CIC, CRIC,CPIA
Principal Agent
321.206.8035
Email 
Posted by: AT 07:18 pm   |  Permalink   |  Email
Wednesday, August 07 2019
Protect Your Fleet During a Natural Disaster

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:

  • Collaborate with other agencies when creating a plan
  • Stock up on all necessary supplies in advance of the event
  • Document all activities, either for reimbursement purposes or for future planning.

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.

  1. Florida Division of Emergency Management (FDEM) Info for Business
  2. FDEM Info for the Public
  3. Register your business with the Florida Virtual Business Emergency Operations Center
  4. Statewide notices of regulation changes by the Governor: News Releases
  5. Agriculture Specific Rule Changes to Motor Carrier Operations
  6. Alabama, Georgia and Mississippi have waived their interstate import requirements for Florida pets and livestock.
  7. FDOT Emergency Management Public Site

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?

Posted by: AT 05:51 pm   |  Permalink   |  Email
Thursday, July 11 2019
Drones And A Higher Market Share

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.

Posted by: AT 02:11 pm   |  Permalink   |  Email
Thursday, June 06 2019
Transporting Cannabis: A Very Thin Line

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.

Posted by: AT 02:20 pm   |  Permalink   |  Email

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