SUMMER 2024

46 THE DISTRIBUTOR’S

46 THE DISTRIBUTOR’S LINK Chris Donnell Chris Donnell is the National Sales Director for Scanwell Logistics International (CHI) Inc., specializing in Supply Chain Management, Inventory Control, Logistics Sales and Management. Chris excels at selling the “Solution” to advanced program analysis and implementation. A highly ambitious and effective team leader who thrives on the challenges of this industry, Chris currently oversees a National Sales and Partnership Program consisting of more than 100 Sales executives who focus primarily on SCM and Logistics development in most vertical markets. Contact Chris at 847-228-6789 or email: chrisdonnell@scanwell.com. HERE WE GO AGAIN... Surprise! The global trade and logistics industries are quickly evolving into a nightmarish dream of skyrocketing rates, rolled containers and the continuation of service disruptions. Does this sound familiar? As always, I want to provide a non-biased look at the global supply chain and logistics industries so you, whether importer, manufacturer, distributor, exporter or consumer are informed and have the ability to weather what appears to be a volatile storm. I typically start my articles with ocean freight but I’m going to change things up, I’m going to start with the industries which appear best suited for this time of year having the least number of issues, and then move onto those industries which are hanging on by the smallest of threads. Trucking & Drayage Overall, the trucking industry is running relatively smooth which is surprising considering it’s such a vital component of the global supply chain. As I mentioned before, 90% of all cargo moves by truck at one point or another in its journey. Today, the market is reporting limited-service disruptions. For years this industry has been rocked by various issues from a dwindling labor force, increased bureaucratic pressures, state and national rulings, and CONTRIBUTOR ARTICLE a weakened infrastructure. Today, for the most part, those issues have subsided. If there were one or two issues, we should keep an eye on, it is that fact that the industry is seeing a large number of bank defaults on equipment and properties. The industry is also seeing a rapid decline in new orders for items like chassis’, trucks and trailers. However, this trend is more likely due to the rapid expansion the industries saw during the pandemic years and with overall available capacity stagnate. It stands to reason that the default numbers are up and expected new orders are down. The banking defaults are a concern. As a nation, we can’t afford to see more companies shut down. The short-term outlook for the trucking and drayage industries remain flat as overall available tender figures is flat, rejections are down, and the overall market does have excess equipment. This excess equipment is due in large part to the fact that tonnage is down year over year (YOY) by about 6%. We could see this figure drop significantly should the market experience what many are predicting as a strong 3rd and 4th quarter. However, in an election year, it’s really anyone’s guess. Another positive sign is the industry has embraced the clean era initiative. More and more trucking companies are looking at reusable and clear burning fuels as well as taking a long hard look at integrating AI more and more. CONTINUED ON PAGE 122