☕🍂 September brings good news
Rise and grind, hustle fam. The leaves are changing colors, and business is looking up for the freight and logistics sector. From new hires at CSX to the addition of a new sortation location for Target, there seems to be much growth everywhere.
On the other hand, continue reading to find out who will be increasing their tariffs before the new year and which marine terminal is seeking new customers.
The company is experiencing significant growth, leading to the opening of its tenth sortation store in Miami, FL, in August. By implementing its "stores-as-hubs strategy," Target aims to enhance its delivery speed, lower shipping expenses, and support its long-term growth objectives.
The expansion of the sortation center is just one aspect of a larger plan to enhance the customer experience and drive overall improvement. This investment, which encompasses consumer-facing services, store operations network, supply chain facilities, and digital innovations, is estimated to range from $4 billion to $5 billion for this year.
“Since the start of our sortation center operations, these facilities have helped to increase the number of orders delivered to guests the next day by more than 150%,” — Target
CSX has hired Mike Cory, CN’s former chief operating officer, as its new Chief Operating Officer. Cory has more than 40 years of operational experience and will work with the operations team, including Ricky Johnson, senior vice president of operations, and Casey Albright, senior vice president of network operations and service design.
“Mike’s reputation as a career railroader, devoted to process improvement, team building and employee development within the principles of scheduled railroading will help CSX continue to achieve new levels of safety, service and operating efficiency.” — Joe Hinrichs, president and chief executive officer.
Dollar General is working on improving its distribution network to help its supply chain grow. By making its distribution network more efficient, Dollar General has seen improvements in having products in stock and delivering them on time. The company also plans to increase its private tractor fleet from 1,800 to 2,000 by the end of 2023, which will bring additional benefits.
Dollar General has automated its South Carolina distribution center to help replenish stores, CEO Jeffery Owen said
The CEO told analysts that once the technology is fully operational, Dollar General will be able to process thousands more SKUs. This will also improve storage in the facility and lower overall costs.
“We think we’re well positioned on supply chain efficiencies with structural improvements on the horizon.” — EVP and CFO Kelly Ditts
UPS Inc. said late Thursday that it will raise its 2024 tariff rates to 5.9% on all air, ground and international services, effective Dec. 26. The move matches rival FedEx Corp., which announced a 5.9% increase late last month.
After FedEx’s announcement, there was speculation that UPS might come in with a higher increase to offset the higher labor costs of the first year of the five-year contract with the Teamsters union.
It turns out ITS in Long Beach, California is not closing their terminal down. Instead, they will remain open as they search for new carriers. Although, ITS does admit that their “gates may at times be closed” due to the low-demand environment.
This is a drastic change compared to the pandemic years of 2021-22, when volumes at the ports of Los Angeles and Long Beach surged to record levels and carriers were in desperate need of additional terminal space.
However, US imports from Asia have plummeted since late last year. Asian imports at the Port of Long Beach were down almost 24% in the first seven months of 2023 compared to the year-ago period.
We were very inspired when we got to hear Bianca Calanche, the CEO of Jaspem Truck Line, speak. She told us her amazing story of how she became a part of her family's business, which focuses on drayage, transportation, and warehouse distribution. With plenty of desire and hard work, Bianca turned Jaspem Truck Line into a profitable company worth $25 million, with operations in intermodal and warehouse services.
Watch our video from September 5th to stay up to date with the Truck N’ Hustle’s weekly podcasts!
“Growth and comfort do not coexist “
— Ginni Rometty