Resource Center/Article • 04/14/2021

Carriers Focus on Technology and Environment to Improve Service Times

Still overwhelmed, carriers look to technology to create efficiencies and maneuver around roadblocks (sometimes literally).

PARCEL CARRIER NEWS

FedEx: Carrier announces strong third quarter results with hints of B2B return and says Express rates will remain high for the next year.

Elevated rates will remain high for the next 12 monthsbecause of increased demand for FedEx Express due to the pandemic. “We know, however, that these prices are not sustainable in the longer term and we will flex our networks appropriately as commercial capacity returns into the market,” FedEx COO Raj Subramaniam said. As a result they plan to increase network capacity over the next year by investing in the maintenance costs of seven planes that had previously been put aside when airfreight demand was down.

UPS: UPS is focused on helping the environment by using renewable energy and speeding up the process for package delivery in small markets.

UPS has become the largest consumer for renewable natural gas in the transportation industry by announcing that they will purchase 250 million gallons of renewable natural gas (RNG) over the next several years. “We’re using both liquid natural gas (LNG) and compressed natural gas (CNG) as bridging fuels to increase our use of RNG. This will have a measurable impact … RNG yields up to a 90% reduction in lifecycle greenhouse gas emissions when compared to conventional diesel,” said Mike Whitlatch, UPS vice president of global energy and procurement. The carrier also notes a commitment to purchase “more than 6,000 CNG-powered trucks”, with an investment value of $450 million.
Introducing the Fernhay eQuad: a four-wheeled electric-assist cycle able to get around more easily through crowded streets and allowable in bicycle lanes. Touted as a game changer for UPS’s growing fleet of sustainable delivery solutions, the Fernhay eQuad is designed to cater exclusively to the delivery woes of growing urban cities. ”Many cities around the world not only have more pedestrian areas but are also growing fast, resulting in more package deliveries in busy areas inaccessible to larger vehicles,” said Luke Wake, vice president of maintenance and engineering, “The eQuad is a solution that can deliver throughout cities reducing noise, emissions and congestion.”
UPS is stepping up the speed of package delivery through the use of 10 electric vertical takeoff and landing (eVTOL) aircrafts from Beta Technologies. The carrier predicts eVTOLs are a future-focused solution for both rural and urgent customers – able to carry up to 3,000 pounds, land on a helipad instead of an airport, and designed to accommodate shipping containers for fast turnaround and delivery times, eVTOLs could be a game changer for the carrier’s ability to response to customer, network, or even literal traffic needs.

GRI & SURCHARGES

LTL CARRIER NEWS

Roadrunner Transportation Systems (RRTS) announced the $50 million equity result of Roadrunner Freight private placement. RRTS will use the new equity to develop technology solutions “underpinning operations, specifically around planning, pricing and efficiency, and to recruit and retain top talent.” RRTS is excited to welcome its new board members as the company focuses on highlighting a tech-solution brand narrative, a sentiment underlined by their statement that “Roadrunner is really a technology moving trucks, not a trucking company. Every shipper needs a consolidator like Roadrunner, and most are not taking advantage of what Roadrunner has to offer. “ By the end of 2021, RRTS hopes to have a guaranteed service offering in place.
Global transportation and logistics provider, Pilot Freight Services, announced acquisition of DSI Logistics. Known for providing last-mile home delivery solutions for large and bulky items that often require installation assistance, DSI’s notable clientele includes Ashely Furniture, Lowe’s, and Williams-Sonoma. The acquisition strengthens Pilot’s own last-mile home delivery service, bringing an additional 200 employees. “Pilot serves as a key partner to many shippers who are experiencing the rapid growth and increasing transportation requirements associated with e-commerce,” said Zach Pollock, CEO of Pilot Freight Services. “The acquisition of DSI was a natural fit and another successful step in Pilot’s e-commerce strategy.”

SHIPPING INDUSTRY TRENDS

Linamar & Co may deliver turnkey FCEVs to UPS. | Linamar Corporation is evaluating fuel cell electric delivery vans (FCEVs) for the US Center for Transportation and the Environment (CTE). These vans are part of a project by the California Air Resource Board intended to accelerate the adoption of clean transportation technology. The vans will be used by UPS in revenue service as part of a demonstration in California.
General Motors announced BrightDrop, a new logistics delivery solution with both environment and e-commerce concerns in mind. Billed as “a new ecosystem of electric first-to-last-mile products, software and services designed to support sustainability, as well as help businesses reduce costs, improve employee safety and freight security, and maximize productivity,” GM believes they’re building the future of electric powered delivery solutions. This statement combined with GM’s plan for BrightDrop to include an electric pallet (EP1) and an EV600 zero-emission light commercial vehicle, it’s clear GM envisions a full-service model.

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