April 1, 2020 Round Table Discussion Summary - Coronavirus
Aborn & Co. • April 1, 2020
A market update and summary of the round table discussion from April 1, 2020
Themes of the Weeks of COVID-19
Week 1:
Shock.
Week 2:
Capacity Crunch
Week 3:
First signs of stability. Hope on the horizon
What are we seeing for driver detention time?
Domestically, a lot of our load planning work right now is around the receiving process/procedures at warehouses. As more and more warehouses and manufacturing plants are implementing rules around receiving freight, we are increasingly seeing trucks denied entry into facilities. For example, some facilities are now requiring gate workers to check the trucker’s temperature before admitting the trucker into the facility. In some cases (for example union drivers), drivers are rejecting the new requirements and refusing to service the facility. For our planning team, this rapidly changing environment drives a lot of work to make sure they are accurately communicating the facility requirements to carriers as they tender freight.
What is going on IMDL?
In the intermodal mode, capacity remains loose and rates/volume are low. If you can make the intermodal lanes work for your distribution strategy, there is still a lot of room for great rates, service, and capacity. The IMCs are flexible in their pricing right now and we even see some railroads are capping their daily charges.
How do we trust we are seeing accurate information in such a loaded market?
The first key to seeing accurate information is to develop strong long-term partnerships with your carriers and providers. If you have been in the spot market for years shopping service providers against each other, you are probably feeling the pinch right now as you potentially lack solid partnerships.
Also, it is important to ask your service providers to back up any of their assertions with data and trends. Anecdotal information right now isn’t very helpful as there is so much noise in the media and around the world. We have the strongest conversations with carriers, customers, and partners when the talk centers around numbers and trends.
How do we ensure we are not getting taken advantage of in bids during this?
In the short term (weeks) rates will continue to stay high. In the medium and longterm (months), we see the potential for substantial rate decreases as capacity becomes a challenge for domestic trucking companies.
In the bids that we are currently operating, we are asking carriers for short and medium-term pricing. Our philosophy is that we should make the carriers whole in the short term while their networks are imbalanced, and their costs are up to pay/retain drivers. As the carrier networks return to balance and the capacity loosens, we are asking carriers to submit and honor lower pricing.
We also believe it is important to use third party sources to validate carrier bids. For our own process, first, we try to identify similar lanes for other clients in our internal data. Second, through various software integrations, we have access to roughly $65B of annual freight cost data that we use to forecast and benchmark bids. If you are worried about the pricing you are seeing in a recent bid and want a complimentary review, please reach out to us at https://www.abornandco.com/contact.
Are any companies experiencing wins with procedures they’ve implemented for COVID?
One company has recently shifted to using their private fleet for customers pickups and deliveries as they were having challenges with capacity.
Warehousing Update
Background:
Commonwealth Supply Chain Advisors has spoken to over 60 companies and polled them on what they are doing and how it is impacted their business from a warehouse and facility perspective.
Overall, they are seeing certain industries like retail that have been highly impacted by COVID-19 while other companies such as food/beverage have not been affected.
The first thing companies jumped on was cleaning policies and health policies for workers. Overall, a lot of the feedback they are hearing is that companies are having a tough time keeping up with cleaning the facilities.
One strategy that firms are having some success with is segmenting workforces in the distribution centers so that they can maintain the proper social distance. This is very hard given warehouses are set up for people to interact closely as they move goods in, around, and out of the facility. Facilities are effectively changing shifts to try to accommodate people who are left without childcare.
Some companies are experiencing security and supply problems in light of COVID-19. There were a couple of plants where cleaning supplies were completely wiped out by the employee base.
From a labor perspective, the worker’s health is a huge concern and priority for almost every company. Right now, there are a lot of labor challenges at larger companies like Instacart and Amazon where we are starting to see public protests. So far, smaller companies are not seeing a lot of labor pushback as some of those companies had to lay off staff. So far, the labor unrest really depends on the health and size of the company. The last trend to monitor is that some companies are reporting up to 15% of their warehouse staff are not showing up for their shifts.
Interested in joining the next round table?
Innovative managed transportation provider continues to invest in hiring and developing the best talent within the logistics space QUINCY, Mass — FreightPlus, a data-driven managed transportation solutions provider, announced Brendan Lawler has joined as Senior Manager of Strategic Planning and Customer Service. Lawler brings in over seven years of experience leading diverse, cross-functional teams in challenging, chaotic, and ambiguous environments. In his new role, Lawler will own all aspects of planning, optimizing, appointing, tracking and servicing customers’ freight. He looks forward to standardizing the planning and customer service functions within the department and incrementally improving the throughput of the team through process improvement and technology integration. “I am energized by the opportunity to help continue FreightPlus’s growth as a data-driven transportation management solutions provider,” says Lawler. “I’m eager to use my experience in leading teams toward operational excellence to enhance the customized service for our clients. FreightPlus's mission to ‘simplify complex logistics together’ embodies the people-driven culture that I value so deeply. I look forward to joining a company that is team-focused and has a proven track record of transforming ideas into innovative solutions that create sustainable impact.” Lawler previously served as a Captain in the Marine Corps and as Senior Operations Manager within Amazon Transportation Services, where he focused on driving operational excellence and utilizing new technology to drive process improvements. In his tenure, he was responsible for developing and implementing new network-level process improvements for both under-the-roof (UTR) and over-the-road (OTR) operations, as well as spearheading the effort of optimizing the synchronization of warehouse and transportation operations. With revenue and employee count quadrupling over the past five years, FreightPlus was listed no. 184 on the Inc. 5000 list of fastest-growing private companies in America in 2022. Chief Operating Officer Ben Graeff comments, “I am so excited to welcome Brendan to FreightPlus. Brendan brings a deep background in operational excellence from his time in the Marine Corps and Amazon Transportation. He is a quiet leader that leads by example, lives in the day-to-day details, and is the exact right person to help us scale our operation and customer service teams through our continued growth.” About FreightPlus FreightPlus is an industry provider of data-driven transportation management, offering businesses customized and fully tailored managed transportation solutions in a boutique environment where clients get the individual attention they deserve. FreightPlus combines first class customer service with innovative technology and industry best practices to help mid-size and growing companies work efficiently in the $800B domestic transportation market. Visit FreightPlus.io for more information. ### Media Contact: Courtney Conyers Marketing & Communications cconyers@freightplus.io
For the 2nd Time, FreightPlus Appears on the Inc. 5000, Ranking No. 184 on the List of Fastest-growing Privately Held Companies in America FreightPlus recognizes a three-year revenue growth rate of 2,846% NEW YORK, August 16, 2022 – Today, Inc. revealed that FreightPlus is No. 184 on its annual Inc. 5000 list, the most prestigious ranking of the fastest-growing private companies in America. The list represents a one-of-a-kind look at the most successful companies within the economy’s most dynamic segment—its independent businesses. Facebook, Chobani, Under Armour, Microsoft, Patagonia, and many other well-known names gained their first national exposure as honorees on the Inc. 5000. “We are honored to be featured on the annual Inc. 5000 list for the second year in a row,” said Stephen Aborn, FreightPlus Chief Executive Officer. “This award and our ranking reflect the continuous dedication from our team to providing our customers with the people, technology and processes to build best-in-class logistics programs. We are thrilled to be recognized as we strive to bring customer-centric and innovative solutions to the world of logistics.” The companies on the 2022 Inc. 5000 have not only been successful, but have also demonstrated resilience amid supply chain woes, labor shortages, and the ongoing impact of Covid-19. Among the top 500, the average median three-year revenue growth rate soared to 2,144 percent. Together, those companies added more than 68,394 jobs over the past three years. Complete results of the Inc. 5000, including company profiles and an interactive database that can be sorted by industry, region, and other criteria, can be found at www.inc.com/inc5000 . The top 500 companies are featured in the September issue of Inc. magazine, which will be available on August 23. “The accomplishment of building one of the fastest-growing companies in the U.S., in light of recent economic roadblocks, cannot be overstated,” says Scott Omelianuk, editor-in-chief of Inc. “Inc. is thrilled to honor the companies that have established themselves through innovation, hard work, and rising to the challenges of today.” About FreightPlus FreightPlus is an industry provider of data-driven transportation management offering businesses customized and fully tailored managed transportation solutions in a boutique environment where clients get the individual attention they deserve. FreightPlus combines first class customer service with innovative technology and industry practices to help mid-size and growing companies work efficiently in the $800B domestic transportation market. Visit https://www.freightplus.io/ for more information. Media Contact: Courtney Conyers cconyers@freightplus.io
Innovative managed transportation provider brings on LTL industry leader to continue to support rapid growth QUINCY, Mass — FreightPlus, a data-driven managed transportation solutions provider, has announced the expansion of their company with the hiring of Curtis Garrett, joining as Senior Vice President of LTL. Garrett will focus on improving carrier relationships and interactions through utilizing technology and strategic processes. With revenue and employee count quadrupling over the past five years, FreightPlus was named the second-fastest growing privately held company in Massachusetts by the Boston Business Journal. FreightPlus was also listed as the 783 rd fastest-growing company on the 2021 Inc 5000 list. CEO Stephen Aborn commented, “I am thrilled to have the opportunity to work with Curtis. Expanding our team with his experience is a great step in the right direction for FreightPlus as we continue to look for the most innovative and ambitious thinkers in the logistics space.” Garrett brings fifteen years of LTL experience prior to joining FreightPlus, including eight with ODFL in operations, driving, pricing, yield, and W&I. Since departing from ODFL, he has spent six years on the 3PL, software and consulting side of the industry, recently serving as Vice President of Pricing and then Chief Strategy Officer at Reconex. Garrett is fascinated with technology and is truly a student of the industry. Having overseen hundreds of millions of dollars in revenue on the business profitability side, as well as pricing and carrier relationships and procurement, Garrett is more determined than ever to break down silos and get everyone on the same playing field. “I am beyond excited to join FreightPlus”, said Garrett on his new role. He continued, “from what I have witnessed, this company has all the right parts and pieces – customer obsession, innovation, and grit – to do big things in the freight industry and I could not be more excited to be a part of it.” About FreightPlus FreightPlus is an industry provider of data-driven transportation management offering businesses customized and fully tailored managed transportation solutions in a boutique environment where clients get the individual attention they deserve. FreightPlus combines first-class customer service with innovative technology and industry practices to help mid-size and growing companies work efficiently in the $800B domestic transportation market. Visit https://www.freightplus.io/ for more information. Media Contact: Courtney Conyers cconyers@freightplus.io
FreightPlus has been named to Boston Business Journal's exclusive 2022 Fast 50 list for the first time.
Innovative managed transportation provider continues to invest in executive team to support the company’s rapid growth. QUINCY, Mass — FreightPlus, a data-driven managed transportation solutions provider, announced Ben Graeff has joined as Chief Operating Officer, the first in company history. Graeff will be responsible for the company’s operational, managerial, and product strategy, as well as driving day to day and quarterly results and innovation in FreightPlus’ next stage of scale and growth. With revenue and employee count quadrupling over the past five years, FreightPlus was named to The Inc. 5000 list of fastest-growing private companies in America in 2021. CEO Stephen Aborn commented, “I am thrilled to welcome Ben to FreightPlus. His natural ability to lead and his experience scaling large businesses at the intersection of technology and operations will be invaluable to our growth story. Every person or partner that works with Ben will be better for it.” Graeff brings over 10 years of experience building technology and businesses at Amazon. Prior to joining FreightPlus, he served as Sr. Manager, Product Management and Data Analytics within Amazon Transportation Services. During his tenure, Graeff was responsible for P&L ownership in Amazon’s consumer retail division, developing new software and customer experiences for Amazon Prime, as well as product development and business results in operations and logistics across the globe. “I am excited to join a company whose mission embodies solving complex problems in partnership with its customers,” said Graeff on his new role. He continued, “Like all great organizations , FreightPlus is powered by its people. I’m eager to join this growing team and blend my experience in building and developing organizations with delivering fast-paced results through people, process and technology. FreightPlus’ commitment to driving long-term partnerships, cost savings and strong service for our customers aligns closely to my core values. I look forward to continuing to build the products, processes, programs and technologies to drive FreightPlus’ future growth as a data-driven transportation management service.” About FreightPlus About FreightPlus FreightPlus is an industry provider of data-driven transportation management offering businesses customized and fully tailored managed transportation solutions in a boutique environment where clients get the individual attention they deserve. FreightPlus combines first-class customer service with innovative technology and industry practices to help mid-size and growing companies work efficiently in the $800B domestic transportation market. Visit https://www.freightplus.io/ for more information. Media Contact: Courtney Conyers cconyers@freightplus.io
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