Transportation, Warehousing, Distribution, and Logistics| Analysis and Commentary

Logistics,Distribution and
TransportationSector
P a u l Y o u n g C P A , C G A
M a y 1 3 , 2 0 2 1

PaulYoung-Bio
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Business Process Change
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

Agenda
• Consumer Price Index – April 2021
• Diesel Fuel
• Freight Index
• USA eCommerce Sales
• USA Retail
• Canada eCommerce Sales
• World eCommerce
• Class 8 Truck Sales / USA
• EPA Issues
• Trailer Sales
• Tonnage
• Supply Chain Management Solutions
• Planning Analytics and CPLEX
• Blockchain and Supply Chain Management
• Watson Assistant

ConsumerPriceIndex–April2021
Source - https://economics.bmo.com/en/publications/detail/e4c5ce1a-1cd9-4df0-8c68-bf585c58d3bf/

DieselFuel
Source - https://ycharts.com/indicators/us_retail_diesel_price

FreightIndex
S o u r c e -
h t t p s : / / w w w . c a s s i n f o . c o m / f r e i g h t -
a u d i t - p a y m e n t / c a s s - t r a n s p o r t a t i o n -
i n d e x e s / c a s s - f r e i g h t - i n d e x

USA
eCommerce
S o u r c e -
h t t p s : / / w w w. s t a t i s t a . c o m / s t a t i s t i
c s / 2 7 2 3 9 1 / u s - r e t a i l - e - c o m m e r c e -
s a l e s - f o r e c a s t /

Canada
eCommerce
Sales
S o u r c e – S t a t s C a n a d a
Potential labor disruption at the Port of Montreal
Container congestion at several ports
CPI went up in March 2021
eCommerce continues to see expansion
https://www.slideshare.net/paulyoungcga/retail-sales-canada-
february-2021

World
eCommerce
Market
S o u r c e -
h t t p s : / / p a y s p a c e m a g a z i n e . c o m / r
e t a i l / t o p - 1 0 - e - c o m m e r c e -
m a r k e t s /

Class8 TruckSales
S o u r c e – T h e T r u c k e r a n d h t t p s : / / w w w . t t n e w s . c o m / a r t i c l e s / s e p t e m b e r - c l a s s - 8 - s a l e s - h i g h e s t -
y e a r o r h t t p s : / / w w w . t t n e w s . c o m / a r t i c l e s / c l a s s - 8 - s a l e s - n o v e m b e r - s l i p o r
h t t p s : / / w w w . t t n e w s . c o m / a r t i c l e s / d e c e m b e r - c l a s s - 8 - s a l e s - r e a c h - h i g h - m a r k - 2 0 2 0 - d o w n - 7 4 -
c o m p a r e d - 2 0 1 9

EPAStandardChange
Due to engine certification issues in the U.S., Hino Motors has suspended vehicle production at its factories
in West Virginia and Ontario, Canada, until Oct. 2021, the company announced Dec. 23. Hino Motors is the
Toyota Group’s truck and bus subsidiary.
The Hino Board of Directors-approved decision was made based on “challenges in the required U.S. engine
certification testing process for new model years of the A09C, J08E, and J05E*engines for North America.”
The Environmental Protection Agency’s Phase 2 greenhouse gas emissions standards cover model years
2021-2027, which means new model year vehicle sales, including the refreshed Hino XL Series (Classes 7 &
8), have also been postponed.
Hino L Series medium duty truck
https://www.fleetowner.com/equipment/article/21151165/hino-shuts-down-na-production-until-october-
2021?utm_source=FR+FO+Newsline&utm_medium=email&utm_campaign=CPS201222016&o_eid=7930I4
506489J2B&rdx.ident%5Bpull%5D=omeda%7C7930I4506489J2B&oly_enc_id=7930I4506489J2B

EPAStandard andTruck
Production
S o u r c e - h t t p s : / / w w w . g o v e r n m e n t - f l e e t . c o m / 1 0 1 2 4 7 9 7 / a r e - y o u - r e a d y - f o r - t h e - n e x t - e m i s s i o n - s t a n d a r d s - c h a n g e s
h t t p s : / / w w w . e a t o n . c o m / u s / e n - u s / c o m p a n y / n e w s - i n s i g h t s / w h a t - t r u c k - m a n u f a c t u r e r s - n e e d - t o - k n o w - a b o u t - t h e - f u t u r e - o f - e m i s s i o n s . h t m l

USATransportation, Logisticsand
Distribution
• P o r t s h a v e s e e n i n c r e a s e i n s h i p m e n t s b u t a r e s t i l l d o w n y e a r o v e r y e a r -
h t t p s : / / l b b u s i n e s s j o u r n a l . c o m / c a r g o - v o l u m e s - h a v e - b o o m e d - i n - r e c e n t - m o n t h s -
b u t - p o r t s - s t i l l - a n t i c i p a t i n g - y e a r - o v e r - y e a r - d e c l i n e s
• U S A r e t a i l S a l e s - h t t p s : / / w w w. r e u t e r s . c o m / a r t i c l e / u s a - e c o n o m y / u - s - r e t a i l - s a l e s -
b l o w - e x p e c t a t i o n s - i n - s e p t e m b e r - d a r k - c l o u d s - g a t h e r i n g - i d I N K B N 2 7 1 2 H S - H e r e i s
m y w o r k o n U S A r e t a i l s a l e s - h t t p s : / / w w w 2 . s l i d e s h a r e . n e t / p a u l y o u n g c g a / r e t a i l -
s e c t o r - u n i t e d - s t a t e s - s e p t e m b e r - 2 0 2 0
• Tr a n s f o r m a t i o n o f r e t a i l - h t t p s : / / w w w. c b r e . u s / r e s e a r c h - a n d - r e p o r t s / 2 0 2 1 - U S -
R e a l - E s t a t e - M a r ke t - O u t l o o k - R e t a i l

CommercialVehicleMarket
S o u r c e – T h e Tr u c k e r

TrailerSales
https://www.trailer-bodybuilders.com/market-stats/article/21157899/rising-freight-rates-push-trailer-order-even-
higher-act-research
Record freight rates continue to push commercial vehicle demand beyond truck and trailer manufacturers’ ability to
supply equipment in a timely manner, suggest a series of recent reports from ACT Research.
Preliminary reports indicate that February's net order volume of 24.2k trailers was up 82% from the same month last
year, according to ACT Research’s State of the Industry: U.S. Trailers report. That was also down 21% from January
2021 bookings. Final February volume will be available later this month, the research firm noted.
Source - https://www.trailer-bodybuilders.com/trailers/article/21151176/fleets-already-eyeing-2022-trailer-build-slots-act

Volume
https://www.thetrucker.com/trucking-news/business/consumer-product-levels-on-the-rise-but-other-
freight-sectors-still-short
“Overall, the amount of available freight rose again in August, along with the rates paid to haul it. It’s gotten
so good that carriers are complaining about the driver shortage again. However, each carrier’s experience
can be different, depending on the type of freight and the company’s dependence on spot rates.
Member carriers of the American Trucking Associations (ATA) reported in August that freight levels are
down. The ATA For-Hire Truck Tonnage Index dropped 5.6% in August to 107.5 after declining 1.4% in July.
The ATA Index uses 2015 data as a baseline, so the 107.5 Index (seasonally adjusted) was 7.5% higher than
in 2015, but is trending downward.
Bob Costello, chief economist for ATA, attributed the decline to “uneven freight,” explaining, “The trucking
sectors that haul for the industrial and energy industries are not seeing the surge in freight like the
consumer side of the economy. The industrial loads tend to be heavier, so they count more in a tonnage
calculation than most consumer-related loads.””

Blog–Warehousing, Logistics,
Distribution, andTransportation
Fuel charges continue to go up for shippers
There is a shortage of containers
Retail will continue to move to an online model
https://www.slideshare.net/paulyoungcga/transportation-logistics-and-warehousing-analysis-and-
commentary
Blog – Transportation, Logistics and Warehousing – Analysis and Commentary
Freight Index - https://www.logisticsmgmt.com/article/cass_freight_index_ends_2020_with_solid_growth
Delays/ports - https://www.maritime-executive.com/article/delays-are-growing-with-increasing-reports-of-
rollover-cargo-worldwide
Container shortages - https://www.cnbc.com/2021/01/22/shipping-container-shortage-is-causing-shipping-
costs-to-rise.html
Rates - https://www.tcicapital.com/tci-insights/current-freight-trends/
Fuel charges - https://www.ups.com/ca/en/shipping/surcharges/fuel-surcharges.page
Retail sales outlook - https://www2.deloitte.com/us/en/pages/consumer-business/articles/retail-distribution-
industry-outlook.html

USAInfrastructureSpending
USA Infrastructure
- only about $921B is going to fix the infrastructure gap in the United States
- Capital investment in key areas of the supply chain seen growth under
- Cement, asphalt, steel, iron-ore are tied to CO2 emissions.
https://www.slideshare.net/paulyoungcga/infrastructure-analysis-the-united-states
Source -
https://infrastructurereportcard.org/infra
structure-categories/

Trade
Blog – Trade
The US continues to expand oil into India.
There are issues with the global supply of Lithium.
The US has changed. their focus on tariffs to reforming tax policy around the globe.
https://www.slideshare.net/paulyoungcga/merchandise-tradeunited-states-february-2021
• Global chip production - https://www.reuters.com/article/us-usa-semiconductors/global-chip-supply-chain-
increasingly-vulnerable-to-massive-disruption-study-finds-idUKKBN2BO4TV
• New terminal for Charleston - https://www.joc.com/port-news/us-ports/port-charleston/new-charleston-container-
terminal-adds-much-needed-us-port-capacity_20210409.html
• Producers/Retailers - https://www.supplychainmovement.com/producers-and-retailers-plan-to-overhaul-their-
supply-chain-strategy-in-the-near-future/

SupplyChain
Management
Solutions

Planning
Analytics and
Cplex
(Optimization)

EdgeAnalytics
h t t p s : / / o p e n g o v a s i a . c o m / e d g e - c o m p u t i n g -
t r a n s f o r m a t i o n a l - e r a - f o r - b u s i n e s s - i n - p u b l i c - s e c t o r /

Logistics/
Transportation
Automation
• Price tag autonomous Trucks -
https://www.fleetowner.com/technology/article/21692381/the-price-tag-
for-autonomous-trucks-still-unclear
• Robots and Warehousing - https://www.freightwaves.com/news/mobile-
robots-feed-warehouse-demand-for-adaptability
• RPA and AI with Logistics and Transportation -
https://www.brighttalk.com/webcast/12529/365482/rpa-ai-delivering-
intelligent-automation-in-supply-chain-logistics
• Autonomous delivery robots - https://www.mhlnews.com/technology-
automation/article/21133565/autonomous-delivery-robot-sales-to-hit-
27-billion-by-2025
• RPA and Sectors like Retail - https://datafloq.com/read/industries-robotic-
process-automation-rpa-implementation/8584
• Robots and Retail - https://www.trendhunter.com/protrends/robot-retail

OtherSources
• Planning Analytics -
https://ibm.box.com/s/0fg1f62zrtjmvcwicu1bm
6u6emwkle88
• Cognos Analytics -
https://ibm.box.com/s/fh9cns7sk3ffwhsqhazqp
ndz1kj3mqbk
• IBM/RPA -
https://www.ibm.com/automation/rpa
• Modeling Risk - https://cloud.ibm.com/docs/ai-
openscale?topic=ai-openscale-mrm-ovr

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