DC Velocity - October 2019

newsmakers

ATRI: Truck drivers face increased delays at warehouses

The frequency and length of time that truck drivers are detained at customers’ facilities have increased over the past four years, with negative effects on driver productivity, compliance with driver hours-of-service (HOS) regulations, and compensation, a new study shows.

Drivers have reported a 27.4% increase in delays of six or more hours at warehouses and other sites, according to a study by the American Transportation Research Institute (ATRI), the research arm of the American Trucking Associations. Arlington, Virginia-based ATRI based its analysis on data from more than 1,900 truck-driver and motor-carrier surveys conducted in 2014 and 2018.

Among other findings, the study showed there was a nearly 40% increase in the number of drivers who reported that the majority of their pickups and deliveries were delayed over the past 12 months due to customer actions. The group also found that the negative impact of detention on carrier revenue and driver compensation may be greater among smaller fleets (those running fewer than 50 power units), with 20% reporting that they do not charge for excessive detention in order to stay competitive with larger fleets.

As for the cause of the delays, the three most common factors cited by drivers were dock-staffing issues (slow or underperform-ing dock workers or understaffed operations), trailer-readiness issues (preloaded trucks that weren’t ready by their appointment times because products were not ready), and dock-space/overbooking issues (lack of space or equipment needed to load and unload trucks upon arrival).

The report, Driver Detention Impacts on Safety and Productivity, also identified four practices that drivers and carriers believe will greatly reduce delays: being well organized, utilizing technology, maintaining tightly managed schedules and appointments, and offering extended business hours to support after-hours delivery when needed.

The online grocery sector is on track for steep sales growth between 2019 and 2024, driven by the expansion of fulfillment options and online product assortments being offered by industry leaders Amazon.com Inc. and Walmart Inc., a new study says.

Store-based sales will continue to account for the majority of worldwide “edible grocery” sales over that period, but online sales are poised to grow much faster, according to London-based e-commerce analyst company Edge by Ascential.

Online grocery sales currently account for just 3.25% of food and beverage sales worldwide, or $91 billion of the $2.8 trillion spent annually in the food and beverage category, which includes ambient groceries, fresh groceries, carbonated drinks, fruit drinks, water, hot beverages, beers, wines, and spirits.

However, grocers are engaged in a rapid digital transformation that could drive a compound annual growth rate (CAGR) of 13% through 2024, for a total of $162 billion by the end of the forecast period. The report did not provide growth projections for brick-and-mortar–based grocery sales.

The frenzied growth in the sector is being whipped up by a race for global grocery supremacy between Amazon and Walmart, which are forecast to generate e-commerce grocery sales of $15 billion and $14 billion, respectively, by 2024. Individually, those figures will be more than twice as high as those of their nearest rival, Costco, Edge by Ascential said.

That’s not to say the companies are simply throwing money at the e-grocery business, however. In a bid to limit their investment in the complex supply chains that come with delivery services, “many retailers are investing in fast store-based fulfillment or teaming up with third parties for improved last-mile logistics,” the report said.

Online grocery sector poised for growth as Amazon and Walmart battle for market share

go figure …

4.6%

The increase in August retail sales over the same month last year, as “resilient” consumer spending continues to drive U.S. economic growth despite unpredictable trade policy.