b'may 25 - june 21, 2020NOrth AmericAs trANsPOrtAtiON & LOGistics NewsPAPer 31(IMPACTcontinued from(AHEADcontinued fromto evaluate carriers. Two yearsload shipment, if, only becausementsarecostedusingthis page 29) page 23) later,thecompanychangeditsit often involves more than onesystem. Carriers have to have altogether, while others chose toauditing and transit data. nametoSMC 3 .In2016,thecarrier. So, carriers can use thetheir fingers on the pulse of the let aging cargo aircraft retire with- SMC 3doesnt offer a trans- companyunveileditsSMC 3 SMC 3 platformtohavemoremarketandknowwhichway out replacing them. portationmanagementsystemplatform, which, through appli- informationabouteachothersits going to go, said Thomp-As a result, when the demandper se, but through its platformcationprogramminginterface,movements. son.Theydonthavethe for passenger travel plummeted inbetter empowers a TMS by sup- or API, enables Web-based ser- 3 luxury of hauling freight thats the wake of the COVID-19 pan- plying additional features. vicestoshippersandcarrierssmCP roDuCtsa imeD at not profitable.demic,adramaticreductioninPerhapsmostimportantly,alike. Weve really broadenedC arriers Thompsonbelievesthat cargo capacity followed. As morethesystemprovidesmuchourofferingstosupporttheThe company has productsSMC 3 technologylevelsthe countriesissuedvariousstay- greater connectivity and visibil- entire LTL shipment lifecycle,aimed specially at carriers. Oneplaying field between shippers at-homemeasures,aircargoity throughout the transit cycle.said Thompson. is a cost intelligence system,andcarriers,butalsoallows demand fell, but not to the sameIt allows, for example, recogni- AccordingtoThompson,which enables carriers to iden- them to act more as partners and level as capacity. This has resultedtion of a carriers PRO numberthishelpscarriersaswellastify the profitability at the ship- operate more cost effectively. It in congestion and increased ratesacross platforms so that shippersshippers. For example, he said,ment customer or even the lanesaves time. It saves frustration, globallywithsomelanesmorecaneasilytrackwhenatruckan LTL shipment is usually morelevel, said Thompson, addinghe said.affected than others. will arrive on a dock.complicatedthanafulltruck- that about 65% of all LTL ship- Thecurrentsupplychain Compared to 2019, we canOur technology helps levelcrisisandtheupendingof expect decreased demand for airtheplayingfieldforshippersnormaltransportflowsmay freight indefinitely. At this point,and carriers, makes the shipperswell have a lasting effect on the however,capacityhasdroppedmore knowledgeable, puts moreATA welcomes new HOS rule way carriers establish rates and morethancargodemand.Airinformation at their fingertips inprice their business, Thompson rates have accordingly increaseda very, very cost effective way,TheAmericanTruckingbreak to be taken as on-duty, notbelieves.Inthepast,hesaid, around the world. As social dis- and helps carriers and shippersAssociation thanked the Trumpdriving; pricing has been contractual. If a tancing measures ease, globally,act more as partners through theAdministrationforissuingaMakesmodificationstothecarrier wanted to change the rate demand for all modes of cargoprocess, said Thompson. newly updated hours-of-servicesplit sleeper berth provisions offor a particular lane, it was sub-transportationshouldincreaseCustomers are shippers andrule aimed at providing profes- theruleallowinggreaterflex- ject to individual negotiation.from the current low levels. Atcarriers, as well as 3PLs, which,sionaldriversmoreflexibility,ibilityforhowadriversplitsThompson offered the fol-what point, will capacity catchThompson said, tend to invest inwithout sacrificing safety. their sleeper berth time. lowingillustration:Normally, up with demand? technology more heavily and areThis rule is the result ofNo rule will satisfy every- March and April mark peak pro-often first adopters.atwo-year,data-drivenpro- one, even within our industry,duction time for auto manufac-a irLines trategy SMC 3 workswithmorecess and it will result in neededbut this onecrafted with a tre- turing.Truckstravelingfrom, Aspreviouslymentioned,than100technology-providerflexibilityforAmericaspro- mendous amount of input andsay,OhiotoFloridawould manyairlineshaveshiftedpartners,whichenablesthefessionaltruckdriverswhiledatais a good example of howtravel full, whereas they are rel-theirfocustowardspassengerscompany to roll out new tech- maintainingthesafetyofourbyworkingwithstakehold- atively empty on the backhaul. inrecentyears.Itseemsverynologiesmuchfaster,hesaid.roads, said ATA President andersonallsides,governmentRates reflect this. But this year, likely,atleastfortheremain- That speed, that adoption rateCEO Chris Spear. We appreci- cancraftarulethatsimulta- automanufacturersshutdown der of this year, that focus willisveryquick,versusifeveryate the time and attention Presi- neouslybenefitstheindustry,inMarchand April.Itthrew change. We have seen the effortsindividualshipperouttheredentTrump,SecretaryChaospecifically drivers, and main- LTLnetworkscompletelyout ofpassengerairlinestouseatried to adopt every new piece ofand Administrator Mullen havetainshighwaysafety,saidof whack, Thompson said.portionoftheirfleetforcargotechnology, it would be a slowpaid to our industry and to thisATA Chairman Randy Guillot,But carriers couldnt adjust alone. AirCanadamaybethecrawl, said Thompson. regulation, which, while main- presidentofTripleGExpressrates downward to attract other most aggressive in this strategy,Originally,SMC 3 wastaining the core limitations onInc., New Orleans. The agencykindsofbusinessfromOhio. goingsofarastoremovethecalled Southern Motor Carriersdriversworkandrestcycles,should be commended for theirNorcouldtheyadjustrates seats from some aircraft to loadRate Committee. It was foundedmakessmartchangestopor- efforts and we appreciate theirupwardsforcurrentcustomers cargo on the passenger deck. inthe1930sandservedasantions of the rules. willingness to listen throughoutwho ship far less.Thisinitiativeandaddi- organization that compiled andThenewfinalrulemakesthis process. Iseethecarriersneeding tional capacity is welcome andpublishedtariffsforFloridathefollowingchangestotheATA has been engaged intopricemoredynamicallyand appreciatedduringthistaxingtruckers. The organization beganhours-of-service regulations: this rulemaking process from thetransactionally instead of in the time, but that doesnt change theto fashion rates-related software Brings the short-haul on-dutybeginning and we are thrilled topast,whereeverythingsbeen fact that this additional capacityfor LTL shippers in 1998. Czarperiodinlinewiththerestofsee a final rule come to fruition,very contractual, he said. Its is less cost effective. Even whenLite,whichgivesshippersthetheindustry,whileincreasingsaid Dan Horvath, ATA vice pres- theabilitytorespondtothose seats are removed or cartons areabilitytoselectcarriersbasedthe air-mile radius of short-haulident of safety policy. Throughkind of swings in dynamics that beingloadedintheseatsandtransport rates, still exists. trucking to 150 air miles; numerous Agency meetings andhandcuffs carriers. Our technol-overheadbinsofthepassen- CzarLiteworks,Thomp-Allows drivers, under certaindiscussionswithATAsSafetyogy will help shippers, 3PLs and gerdeck,theyareloadedandson said, because carriers trustadversedrivingconditions,toPolicy Committee, we have beencarriers all get access and visibil-unloadedbyhandthroughtheSMC3withtheirdataandextend their driving window byengaged with FMCSA since thisity to the data and information passengerentrydoor.BecausebelievethatSMC 3 offersanup to two hours; proposalwasfirstintroduced.that they need to make the deci-ofthisthecapacityavailableunbiased, neutral presentation of Changes the requirement driv- Whilethefinalruledoesnotsions when they need to make it, will only be accessible for cer- the rates. ers take a 30-minute rest periodincludeallofourcomments,so they can adjust quickly. We taintypesofcargoandtakeIn2005,SouthernMotorwithinthefirsteighthoursofwewillcontinuetoworkwithwantthemtobeasresponsive more time. These inefficienciesCarriersunveiledBidSense,acoming on duty, to after 8 con- Agency to ensure that HOS regu- as possible. And to do that, you add to the cost of operations andbidprocurementapplication.secutivehoursofdrivingtimelations are consistent with ATAsneedtheinformationandyou ultimatelyneedtobepassedThis allows shippers the abilityhaveelapsed,andallowsthecommitment to safety. need the analytics.through to the shippers.F inaLt houghtsItislikelydemandfor domestic air travel will recover morequicklythaninterna-tional.TheInternationalAir TransportationAssociation (IATA)recentlyprojectedthat roughly50%ofthedeclineinSingle Source Solutions S3passengerdemandforinterna-tional travel will recover by theLearn how our S3 can empower your intermodal fourth quarter of 2020. Withouttransportation program. 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