The U.S. and Canada, though they have very different systems of government and laws in place, are intricately connected through trade. America is considered Canada’s largest trading partner, as two-thirds of all the goods shipped by container trucking companies in the Great White North occurred with the United States. Because our commercial logistics are so intertwined, carrier and transportation companies should pay attention to any major changes that take place in America. Currently, the biggest problem has to do with the construction of a new ballpark — in the Charles P. Howard Terminal in the Port of Oakland.
The planned construction would be for the Oakland Athletics, an American professional baseball team. In addition to the ballpark itself, the team is also supporting the building of 3,000 residences near the ballpark, and another 3,000 on the Coliseum site.
The Agriculture Transportation Coalition (AgTC), a national organization that represents agriculture and forest product producers, farmers, processors, and exporters, has expressed concerns over the impact this will have on international trade, especially because deepwater ports are in short supply and high demand.
“We ask the governor, city of Oakland officials and port commission to very carefully consider the impact of permanently limiting the ability of the port to expand and negatively impacting existing maritime operations to serve the states’ and the nation’s agriculture production and exports,” stated AgTC Executive Director Peter Friedmann. “Taking Howard terminal offline and creating barriers to Oakland’s other marine terminals is directly contrary to the expanding infrastructure taking place at all U.S. coasts, in Canada, Mexico and Latin America and efforts to improve cargo velocity and flow.”
Due to the fact that this port acts as a critical gateway to America’s largest international markets, including Asia Pacific and South Asia, a restriction here could have far-reaching repercussions on the nations — like Canada — that depend on this activity to receive goods of their own. Container trucking companies in both the U.S. and its neighbors would suffer in the aftershocks.
Though it is unsure if Friedmann’s impassioned letter will see a response or change anyone’s mind, we can only hope the governor, city of Oakland officials, and port commission understand the potential repercussions.
The Canadian trucking industry is facing a problem. Despite the fact that it’s valued at over $65 billion and employs more than 260,000 drivers, only a startling 3% of those are women. Due to the fact that trucking has historically been associated with men, the few women who do work in the heavy haul and logistics business have decided something needs to change.
“We need to get into the schools and colleges to get more women and girls interested,” said Shelley Uvanile-Hesch, CEO of the Women’s Trucking Federation of Canada and carrier driver herself, during the annual Women With Drive conference near Toronto on March 7. Uvanile-Hesch believes that trucking offers a lucrative option compared to fast food work and other low-paying jobs.
Container trucking companies have been struggling to get drivers interested in general, but this gender imbalance reveals a deeper problem. Uvanile-Hesch has been in logistics for a while — long enough to see how attitudes toward women have improved since she started trucking — but knows that the situation is far from ideal. Although one in 10 Canadian millennials have stated they’d consider a career as a trucker, women continue to face sexual harassment and a general feeling of danger: 71% of millennial women believe trucking is unsafe.
David Coletto, CEO of Abacus Data, has been researching the demographic for Trucking HR (an organization devoted to human resources issues in the Canadian trucking industry). He claims that the logistics industry needs to change its image; effective messaging that emphasizes the modernization of the trucking business as a whole could generate more millennial candidates and women drivers, he said, stating that there’s “a lot of opportunity.”
Unfortunately, it isn’t only women that the trucking industry needs right now. Studies have revealed that Canada — which relies heavily on container trucking to ship goods and products — will be short a staggering 35,000 drivers by 2020. There are a number of reform plans and investments being made in an attempt to encourage younger people to the field, including an unlimited income potential. Hopefully, as the nation works to bring more people into the fold, women will turn up just as much as men.
Canada is currently facing a serious heavy haul driver shortage. Despite the downfalls of such a future, the nation is adamant about encouraging younger people to give the lucrative career a shot; not only is the Trade and Transportation Corridors Initiative planning to invest $2 billion in Canada’s transportation infrastructure over the next decade, but they are also looking to push for more incentives that container trucking companies can offer new drivers. If you think the commercial logistics (or warehousing and distribution) industry could be a good fit for you, here’s what you can expect from your training.
When you make it through these three phases, you’ll be required to pass a road test to prove your competency. After that, you’re officially qualified to offer your warehousing and distribution services to any business that need a driver! With demand so high, you should have absolutely no problem finding a job.
Managing your company’s commercial logistics is an extremely important part of owning a business. If you sell a product, you have to figure out all the details involved in the transportation and storage of that product to ensure it gets to your customers on time and in one piece. This is especially important if you sell perishables as food grade logistics have a much wider margin for error; if your warehousing and distribution services (including your heavy haul carriers) are not properly equipped with climate-controlled appliances, you will lose consumer loyalty and product in one blow. Let’s take a look at how warehouse management systems can smooth out the wrinkles from one of the most important aspects of business ownership.
Complex Supply Chains Your product needs to go through a number of steps before it finally reaches the consumer. From the assembly line to the carrier, modern supply chains have been growing more complex as the things being bought and sold have gotten more complex; the need to trust the nuances of such a situation to a quality management system has risen as a result. Warehouse management systems offer the following benefits.
At the same time, you’ll be able to focus on improving other areas of your business that might not be getting enough attention. Customer service and productivity often increase thanks to the added assistance and streamlined operations that warehouse management systems offer. Since the food and beverage processing industry is worth approximately $105.5 billion, it’s a worthwhile field to get into; as long as you use a quality warehouse management system, your odds of running into problems are significantly reduced.
Finding the right container trucking company can seem like a daunting task. You need to ask the right questions and be sure you can trust your carrier with your warehousing and distribution needs. But what exactly should you look for when navigating through a long list of logistics companies?
Finding someone with valuable experience is the first step to finding a worthwhile business partner. Living in Vancouver BC gives you an advantage since Canadian for-hire trucking firms manage over 80% of cargo transported intra-provincially.
But aside from looking into experience, you need to consider what you’ll gain from working with a reputable logistics firm.
They’ll do the heavy lifting for you, upping your customer satisfaction and creating unmatched value for your big or small business.
So what are some critical factors in making sure it will be a mutual transaction for both parties?
Before you make your selection, consider asking these questions before settling on one of the many transportation companies out there.
Going with a respected logistics business will help you meet demand and customer satisfaction. You’ll never miss an order or shipment again since they will take care of everything from warehousing, transport, and everything in between.
From customer service, to agriculture, to the financial sector, automation and AI are constantly disrupting industries and improving efficiency. The integration of automation into various sectors comes with a number of crucial improvements, including:
It only follows that these innovations are moving to the packaging and shipping industry as well — today, container trucking companies in Vancouver BC and all over the world are beginning to integrate the new technology into the workflow.
The Projections By analyzing current data, Tractica has forecasted massive growth in revenue brought in by warehousing and logistics robots in the years to come. While these robots had shipments of around 200,000 units in 2018, this number is predicted to increase to nearly 1 million per year by 2022. This will be accompanied by revenue increases from around $8 billion in 2018 to over $30 billion a mere five years later
The Primary Concern When it comes to utilizing automation across the supply chain, commercial logistics companies have one main concern which stands above all others: is it worth it? While it certainly remains to be seen how the return on investment in these technologies will play out over time, one thing is certain — things are moving in the right direction. Automated systems are growing increasingly versatile, making it less and less likely that they will grow obsolete near-term. To combat this concern, companies are designing automation technology that is scalable, rendering it useful for an ever-increasing variety of applications.
A Possible Future: Driverless Vehicles With roughly two-thirds of all trade between the United States and Canada carried out by truck, the implications for driverless vehicles are far-reaching. Driverless trucks could reduce accidents, improve fuel efficiency, and decrease labor costs. A study from Indiana University suggested that over 90% of crashes on the road are due to human error rather than external causes. Autonomous vehicles driven via a complex array of sensors, state-of-the-art GPS, and extremely advanced computing software would most likely reduce accidents by a very significant margin.
Whatever direction the industry may take, one thing is for certain: 18 Wheels Logistics will be at the top of the game.
The transportation industry in Canada is massive. Approximately 90% of consumer products and foodstuffs are shipping by carrier throughout the nation, as well as two-thirds of all trade with the United States. While this demand has a notable impact on heavy haul container trucking companies and the country’s commercial logistics, it has also had a powerful secondary effect: a sky-high demand for warehouses.
According to the Spring 2019 Global Industrial Market Report from Avison Young, a Toronto-based commercial real estate services firm, large warehouses near major cities are being sought after in the extreme; e-commerce and last-mile logistics providers want to be close to their customers to ensure efficient deliveries. Because so many of these carrier companies are vying for space, demand is red hot.
“E-commerce logistics, distribution, and warehousing requirements continue to drive the market and are increasing in line with online retail sales,” said Mark E. Rose, chair and CEO of Avison Young. “This strong demand has driven down supply, with developers increasingly becoming more innovative in regard to maximizing value through the repurposing of obsolete assets such as vacant big-box retail stores and aged office buildings, as well as exploring multi-story facilities in a growing trend that caters to a demand for close-in warehousing and distribution.”
The facilities in the highest demand are technologically advanced; these customized design-build locations are fully-automated, a feature that renters desire in order to further optimize the supply chain. Additionally, e-commerce and logistics companies are laying claim to a growing share of U.S. warehouse leases in an attempt to find the most optimal sites.
As a result, investors are eagerly building new properties to meet this demand. The report revealed that the development of both product deliveries and the new space under construction remains robust. These investors are also looking to find additional value in older assets near urban areas to further boost their profits. Currently, they show no signs of stopping — or even slowing down.
“Investor interest in the industrial sector continues to grow unabated and the forecast for the remainder of 2019 is that industry dynamics will continue to be positive, attracting investors and resulting in low yields and rising asset values,” Rose said.
The food and beverage industry is responsible for 17% of total manufacturing shipments, and 2% of the national Gross Domestic Product.
If you need food grade logistics solutions for your company, you might want to consider hiring a third party logistics facility (also referred to as a 3PL).
The benefits and advantages of outsourcing supply chain management are numerous. The following are just a few of them.
1. You Become an Instant Logistics Expert
The biggest advantage of using a 3PL is that they’re experts at distribution and logistics. If they’re a reputable, competent company, then their staff are among the best in the industry. This kind of expertise is a bragging right that most companies simply don’t have.
You may be the best at inventing a specific type of food product, but it’s hard for one business to be competent at everything. So what better way to manage logistics and distribution than by outsourcing it to a company that specializes in that?
With a third party logistics provider, you get to hand off logistical concerns to people who do it all the time, and know the industry better than anyone else. This allows you and your team to focus your efforts on doing what you already do best, delighting your customers with great service and products.
2. You Get to Manage International Logistics Easily
If you sell product internationally, a 3PL will take care of all the documentation and issues that come up when dealing with customs and border control. This saves you from having to figure out complex distribution laws in foreign countries, and spares you the expense that can come with handling these kinds of problems inefficiently.
3. You Constantly Improve Your Supply Chain
Because you’re outsourcing to a food grade logistics facility, your supply chain will be evaluated, optimized, and improved constantly—without your having to lift a finger.
4. You Are Free to Scale Infinitely
By utilizing a 3PL, you’re free to expand your operations anytime there’s a spike in sales, without having to rush to rent another food warehouse or hire new staff. All physical challenges and paperwork are managed by the food grade logistics provider, leaving you to grow your business, with no need to worry about expanding too much too quickly.
5. Your Company Saves Money Over Time
By not having your own warehouses and stocking staff to deal with, you stand to save a lot of money—and time—by outsourcing to a commercial logistics facility. Storage, billing, auditing, staffing, training, and improving your supply chain are all taken care of by the provider.
For these reasons and more, it’s a good idea to invest in a third party logistics facility for your food grade logistics and distribution needs.
Container trucking companies are heavily relied upon to transport consumer products and foodstuffs across Canada’s expansive land; the trucking industry is worth over $65 billion, revealing just how crucial it is to the nation’s logistics.
If you own a business that sells a physical product, you undoubtedly utilize heavy haul carriers to handle your commercial logistics and may be considering cutting out the middleman by buying a warehouse of your own. Though your intentions may be pure, the reality of the situation is a bit more complicated than you know;
here are three reasons why you should leave the warehousing and distribution services to the professionals.
At the end of the day, owning your own warehouse simply isn’t worth the hassle. Rather than worry about the stress of successful warehouse management, focus on what really matters: running your business. By outsourcing your warehousing and distribution sector, you can utilize your time most effectively.
The Benefits of Third Party Logistics CompaniesIf you have been doing business for any significant amount of time, you understand the importance of having a clean operational logistics team. From warehousing product correctly to shipping efficiently, there are a number of warehousing and distribution methods available. Whether it is warehousing for food storing or for any other type of product, in order to scale a business profitable, the logistics needs to be air tight.
The Trade and Transportation Corridors Initiative shows that Canada understands the economic importance of great logistics. An impressive $2 Billion will be invested over the next decade into making Canada’s transportation infrastructure more efficient and effective.
So why would someone consider using a third party commercial logistics company? Commercial logistics companies specialize in one thing: the most efficient and effective way to warehouse and transport your products. Because we specialize in this, there are many benefits to outsourcing your commercial logistics.
Professional Supply Chain Expertise On Demand: We understand that you have more important things to focus on than shipping and warehousing. For us though, that is our entire business. The experience we have as a 3PL provider is great for you to know that you are getting the best source of industry best practices. We stay up to date with the latest advances in tech and developments in logistics, manufacturing processes, and distribution. This ensures that when we handle your inventory, it is effectively moving to each distribution center on time, and in the most cost effective manner. Beyond this, we use the latest and most advanced software to help improve the visibility of the supply chain, allowing you to monitor and track the process as necessary. Letting us take care of what we are experts at allows you more time to focus on your company core competencies.
Huge Network of Resources: Because we specialize in commercial logistics, we have a very strong network of companies who can help with the process from beginning to end. By leveraging our network, the steps in your supply chain can be optimized for the most efficient and cost effective process possible. Additionally, we are constantly looking to expand our network and will always be up on the latest in the industry to keep you with the best deals. Because of the volume of transportation we do, we can often get exclusive relationships and volume discounts for our clients, minimizing overhead and other transportation costs. These resources are usually unavailable for in-house logistics teams.
Free Up Time and Capital: Because of our ability to leverage relationships and our expertise in logistics practices, you will have a large amount of time and capital freed up to invest in other areas. There is no need for you to invest in warehouse space, staff, and transportation vehicles. We have it covered for you. In addition to the initial expenses, using a 3PL will minimize costly mistakes that are typically made by in house logistics staff.
Fully Flexible and Scalable Services: By nature, using a third party commercial logistics company will increase the flexibility and scalability of your business. We can easily scale up (or down) the amount of shipping and warehousing you need. Whether it is a large order of goods to get ready for the Christmas season, or you are simply increasing demand overall, we can help you scale your logistics needs as it becomes necessary for you. This is especially important for seasonal businesses who are continuously shifting between high and low times because it increases their business efficiencies. Lastly, this is also a great way to quickly scale your business into new territories throughout the country and the world.
Commitment to Continuous Improvement: Shipping and Logistics is what we do. We are committed to continuously improving our methods and processes. The technology in this industry changes fast, and it is important to always stay up to date with best practices and advancements in technology. We are constantly on the look out for how we can improve our processes to keep costs down for you and keep your warehousing and distribution as efficient as possible.
Give us a call today to see if commercial logistics is right for your company.
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