b'26American Journal ofTransportation ajot.comLABOR REPORT 2023Labor Day 2023: What a difference a year makesBy George Lauriat, AJOTLast September the American Jour- But to understand 2023 you have nal of Transportation released a Laborto go back to the unprecedented series Day Special report entitled Recruiting,of events that set all this into motion.Retraining and Retaining Supply ChainForstarters,thepostCOVID Professionals. The report was assembledpent-updemandforgoodsoffor-against the backdrop of unprecedentedmerlyhouse-boundconsumersburst difficulties to put drivers into seats thatlike a dam and released a torrent of occurred with boom in demand follow- merchandisethatoverwhelmedthe ingtheCOVID-19pandemicandthesupplychain.Everybodywanted ensuing disruptions to the supply chain.everything that they hadnt been able Lastyear,theAmericanTruckingto order during the pandemic and Associations (ATA) projected the 2022theywanteditrightaway.Supply driver shortfall to be at 80,000 and pro- chaindisruptionsparticularly jected with driver retirements that thethose in Chinese ports like Shanghai, driver shortfall could rise to 160,000NingboandYantianaggravated by2030. Therewasamongtruckingan already difficult situation. Simply companies, and indeed throughout theput, it was taking more time (and driv-entire supply chain, a feeling of dreaders) to accomplish the same deliveries that the vacancies wouldnt get filled through a stressed supply chain. or would at a premium.It was a chaotic period and logis-ticscompanies,forthelargepart, i tsc omplicatEd profited greatly during this once in a Herein2023withLaborDaygeneration spike. (For instance, Dre-approaching, trucking freight demandwrys World Container Index (WCI) hasfallen(albeitarecoverymaywas over $6,000 per 40 foot container already be in the works) and conse- inSeptemberof2022andpeaked quentlytheimmediatedemandforover $10,000 per 40 in September of truck drivers has eased. 2021. In the recent August 23 rdreport Butthereasonsforthelullinthe WCI was only at $1,832.48 per 40, freight demand and subsequently drivereven with a 2.3% rebound.)demand is as they say complicated.Then in the middle of 2022 import Last year Randy Mullett, a DC- demand started to fall. But the orders based trucking industry consultant inmadeforthenewreplacementstocks an interview with theAJOT, astutelywere often based on assumptions made observed, our supply chain woesfromearlierexperiences.Namelythat and the driver woes [shortage of driv- the supply chain wouldnt necessarily be ers] are tied in. COVID wasnt a newable to deliver the items on time; or even phenomenon,butitwasaphenom- more to the point, deliver them at all. enon, nonetheless, that tagged to anButattheendof2022andthe existing situation beginningofthisyear,therewere Thatsituation,Mullettwasfewer supply chain hiccups and ware-referring to, was the economy cominghouses filled up, often in mismatched out of COVID-19 and how it relatedgoodstothecycle(Halloweencos-tothesupplychainandtruckingintumesforChristmas).Soonware-particular. AndatanSMC3confer- houses were overflowing with goods enceinJune,Mulletdoubleddownwithnoplacetogo.(Forexample, and observed that if anything 2023 isExtensiv in their recent 3PL warehouse more complicated than 2022.reportnotedthat20%ofthe3PL Ittakesonlyacursorylookatwarehouses are operating above 100% the headlines to see the quirkiness ofcapacity). Inventories rose and kept 2023. One week 99-year old Yellowrising and the normal inventory burn-Freight, arguably the largest truckingoff never kept pace with the weakening companyintheUS,filesforChap- demand. Now with 2023 in reaction to ter11,putting30,000employees,the experience of overstocking, retail-largely from the Teamster Union, oners are being cautious in ordering, and the street, while in seemingly the nextconsequently imports remain low. And week UPS inks an agreement with theconsequently, as expected, inventories Teamsters that will put their driversare slowly coming down. Uber in their compensationupover$170,000per2023 Q3 Market update and outlook, year in salary and benefits. reportedInventoriesaretrendingin Has there ever been a year quite(DIFFERENCEcontinued on like this?page 34)'