Posts Tagged “Allen Lund Company”
By Fernando Dominguez ALC San Francisco
The Transportation industry is more than just getting products from point A to point B. There are myriad factors to consider, from the product itself and the agricultural regulations it abides by to the equipment utilized and the laws that govern it. Most importantly, but arguably the most overlooked factor in this industry, are the laws, rules, and regulations that create the foundation under which many products are cultivated. Being part of a national transportation brokerage and working in the San Francisco office, whose main niche is in produce, we are consistently watchful for changes in regulations and shifts in the market. They have the potential to affect both the customers we conduct business with and the carrier companies that relentlessly move product from coast to coast. I am part of a team that must shift and pivot in an industry full of change, but with change comes bountiful opportunities.
There have been numerous occasions where changes in agriculture and consumer spending have led customers and carriers to adjust their daily procedures to keep up with demand. Most recently, the USDA Announced Temporary Suspension of the Continuance Referendum Requirement for California Raisins. This has the potential to change how much grapes are moved throughout the country. Subsequently, other produce products grown in California will be impacted, as this action amends a marketing order affecting growers and handlers of grapes (of whom presently, there are approximately 18 handlers of raisins subject to regulation under the Order and approximately 2,000 raisin producers in the regulated area). Keeping track of regulatory changes is extremely important because they enable multiple entities to regulate the cultivation and distribution processes. Additionally, it’s crucial to understand the financial effects of these changes. Any time there is a change of this magnitude in the transportation industry, it has the potential to change customer buying projections, bids on specific lanes, and carrier shifts in certain geographical regions. It even changes the compliance that drivers must adhere to when loading at specific shippers.
I take pride in contributing to an industry that ensures Americans have access to high-quality goods and efficient resource distribution. Our direct involvement in this dynamic system allows us to continuously sharpen our skills and thrive amidst challenges. These challenges foster team cohesion and offer unparalleled opportunities for career growth. The next time I go to the grocery store and see a display of grapes or raisins, I will know that many people and businesses made a tremendous effort to cultivate, supply, and distribute them even through changing regulations. At ALC, we’re committed to upholding our core values of integrity, dependability, service, honesty, and family while meeting the evolving needs of our industry.
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Fernando Dominguez graduated from California State University Chico in 2020. He served as an embarkation logistics specialist in the United States Marine Corps Reserve as a sergeant, while beginning his career at the Allen Lund Company as a transportation broker in training. He was promoted to transportation broker after eight months and subsequently to carrier manager after a year and a half at the ALC San Francisco office.
fernando.dominguez@allenlund.com
By Scott Fontes ALC Orlando
International logistics plays a crucial role in facilitating global trade and commerce by connecting businesses across continents. The Red Sea, a key maritime route, is currently experiencing significant disruptions that have led to impacts on international logistics. The ongoing geopolitical tensions in the region, coupled with environmental challenges, are reshaping the landscape of maritime transportation. Shipping times and costs have increased, adding significant delays and costs. Oil and gas prices have jumped following news of attacks, and shipping insurance premiums have nearly doubled for some carriers. Even if attacks stopped today, the effects will take a significant time to resolve.
The Red Sea has become a focal point for tensions and conflicts, influencing the safety and efficiency of shipping lanes. By January 2024, only 200,000 standard containers were passing through the waterway per day, compared with around 450,000 in December 2022. Strategic chokepoints, such as the Bab-el-Mandeb and the Suez Canal, are vital passages for vessels navigating between the Mediterranean and the Indian Ocean. Political instability in the surrounding areas can lead to heightened security concerns, affecting the smooth flow of goods. According to the AP, “The governments of Australia, Bahrain, Canada, Denmark, Germany, Netherlands, New Zealand, and South Korea joined the U.S. and U.K. in issuing a statement saying that while the aim is to de-escalate tensions and restore stability in the Red Sea, the allies won’t hesitate to defend lives and protect commerce in the critical waterway.” Instead of sailing through the Red Sea, ships traveling between Asia and Europe are now being re-routed around Africa and the Cape of Good Hope. Stakeholders in international logistics are closely monitoring these developments to assess potential disruptions to supply chains.
Furthermore, environmental factors like extreme temperatures, strong currents, occasional coral reefs, and weather events pose challenges to maritime operations in the Red Sea. Rising sea levels and changing weather patterns can impact navigation, port infrastructure, and overall logistics efficiency. Companies engaged in international trade must adapt to these environmental shifts, incorporating resilience measures into their logistical strategies.
As the Red Sea continues to play a pivotal role in global trade routes, a comprehensive understanding of both geopolitical and environmental dynamics is essential for the sustainable functioning of international logistics networks. By embracing innovation and responsible practices, we can ensure that the Red Sea remains a vital and sustainable lifeline for international trade in the years to come.
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Scott Fontes began working for the Allen Lund Company in 2023 as an international logistics specialist in the Orlando office. Scott joined the company with years of experience in transportation, most recently as a logistics manager for an OTR transportation company.
scott.fontes@allenlund.com
By Charlie Fabricant, ALC Corporate
With the growth in awareness around climate change, the supply chain industry is taking significant strides to reduce greenhouse gas emissions while maintaining the crucial service of keeping our economy flowing. Many companies across all sectors, driven by altruism or differentiation, are incorporating ESG-focused improvements. In 2021, 73% of S&P 500 companies tied their executives’ compensation to ESG metrics. Governments are investigating additional ways to push organizations to decarbonize. One avenue that many regulators are exploring is requiring companies to publicly share their annual carbon emission data. Both California and the EU have already passed emission disclosure bills, and the SEC is expected to release U.S. wide regulations this Spring. With the transportation sector currently leading all business sectors in carbon emissions, ALC is developing low-carbon shipping programs to help our customers with their reduction and reporting goals.
To provide a very brief explanation of GHG (greenhouse gas) accounting, there are three “scopes” of emissions. Scope 1 and 2 cover direct (owned assets) and indirect (purchased utilities) emissions, which are largely controllable by reporting companies. Scope 3 includes more complex calculations from production to disposal, including all emissions associated with a manufacturer’s or retailer’s supply chain, a significant aspect of which is transportation. For example, if you were a car manufacturer, your scope 3 would include the emissions associated with the first metal being mined through the post consumer disposal and everything in between (excluding emissions captured in scope 1 and 2). The SEC regulation was originally proposed in 2022, but has been pushed back multiple times due to the difficulties associated with reporting scope 3 emissions. Due to the truckload market’s fractured nature, many shippers work with multiple transportation partners, further increasing the difficulty of consolidating this data.
So, now that I have made ESG seem scary, here’s the soothing part…In order to address environmental concerns, our company uses an EPA and CDP (Carbon Disclosure Project) based calculator which provides truckload emission data. In addition, we’re developing a ‘Green Carrier Base’, recruiting low-emission carriers for sustainable shipping needs who will have a reportable emission reduction when compared to traditional fleets. Investigations into alternative fuels, such as renewable diesel, compressed natural gas, and eventually electric charging, are also underway with the goal of setting up a fuel delivery program for interested carriers and shippers through our partner, one of the U.S.’s largest energy providers. We’re also partnering with a unique carbon offset company which prioritizes additionality and building local coalitions of small-businesses and community leaders to ensure long-term environmental and economic benefits. We all live together on the same planet, and reducing our carbon footprint should be important to us all. Reach out to me if you’d like to have a conversation.
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Charlie Fabricant graduated from Vanderbilt University in 2021 with a double major in Economics and Human & Organizational Development with a minor in Environmental Sustainability. He joined the Nashville office as an undergraduate intern in 2021 and became a transportation broker along with the company’s Environmental, Social, and Governance (ESG) coordinator. In 2024, he was promoted to ESG programs manager.
charlie.fabricant@allenlund.com
By Jon Manning, ALC Cincinnati
Creighton Abrams once said, “When eating an elephant, take one bite at a time.” AI is that elephant in the logistics space that everyone seems to be talking about. Let’s not kid ourselves here, we humans love the opportunity to have something within our grasp, that ultimately will make our lives less laborious, and can provide boundless information whenever and wherever we need it. Within the past week, I would have loved to have had something tell me how to make a beef Wellington from scratch or provide me with college football picks. That time will come, I’m sure, but even before the time comes the conversation about policy and ethics of AI will certainly be debated in many forums.
Ultimately, the idea is that AI can and will eventually surpass a team of people in breadth and scope of work, in mere seconds, it will become the new standard. I opened ChatGPT recently and typed in, “How will AI help supply chains?” The answer was shocking. In a matter of seconds, it gave me a plethora of ways that AI could be beneficial, such as demand forecasting, inventory management, predictive maintenance, blockchain for transparency, and risk management. For those thought-provoking scholars, that means AI can carve vast efficiencies in any supply chain. In a recent article from Nasdaq, “AI is being used worldwide to improve production times and boost safety in manufacturing plants in what is referred to as the ‘Industry 4.0’ era.” Will the human element still be applicable? The short answer is yes. While AI is revolutionizing the supply chain by optimizing processes, predicting demand, and enhancing efficiency, it will never replace the invaluable human connection, compassion and sensible foresight that supports the industry.
So, where would I guess the logistics industry to be in 5 to 10 years from now? Perhaps we’ll see a litany of providers offering up to customers a comprehensive “AI” program to help manage their supply chain stem to stern, or, most likely, staying the course and navigating the nuances of logistics using the best and brightest talent in the industry, which is none other than human capital. This remains essential for fostering collaboration, resolving complex issues, and navigating the unpredictable challenges inherent in the dynamic world of supply chain management. AI may streamline operations, but the industry’s success will always count on the symbiotic relationship between technological innovation and the irreplaceable human element that is required to cultivate and grow businesses.
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Jon Manning is the general manager of the ALC Cincinnati office. He started in the logistics industry working in transportation sales role in 2002. Manning graduated from Bowling Green State University with a B.A.C. degree in Communications.
jon.manning@allenlund.com
By Michael Patrick, ALC Corp.
Transportation and analytics go together like peas and carrots. As technology continues on an upward trajectory with the implementation of artificial intelligence and machine learning, transportation companies will have to continue to adapt their environments to use this technology to their benefit. We currently use basic metrics to help our customers, managers, and brokers be as effective and efficient as possible. We combine our data with multiple data sources to get an overall market picture.
As a third-party transportation company, we use business intelligence and analytics in a multitude of areas. Market trends are used to help us bid spot market freight and rate prediction engines to help forecast rates on customer bids. Executives and managers use data and analytics to conduct customer, carrier, and employee reviews on a quarterly basis.
Customers and carriers benefit from Allen Lund Company conducting business reviews that show them not only trends in the overall marketplace, but also identify areas where they may reduce costs and thoroughly streamline their transportation. We use things like loads, customer spend, weight and pallet analysis, lane and cost analysis to create a great story for our customers and carriers.
One example comes to mind of ALC using data and analytics to help a customer reduce costs within their transportation department. We were asked to help this customer with a market analysis on their lane set. We ran the customers rates and market rates and showed them which areas to reach out to the incumbent carrier in order to adjust their rates to market levels. Some of these rates went up, and some went down. Overall, the customer felt like they not only got better rates, but also better service from their carrier. Win-win for everyone involved.
As technology continues to grow, we will have to stay ahead and evolve quickly in order to keep up with our customer and carrier demands. Allen Lund Company is committed to keeping up with the markets and to keep our customers, carriers, and employees up-to-date on all current market trends. The Business Intelligence team here at ALC will continue to push the envelope on what is possible with analytics.
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Michael Patrick is the Director of Business Intelligence and has been with Allen Lund Company since January 2018. He graduated from Winthrop University with a BS in Marketing in 1998 and earned his MBA from The Citadel in 2002.
michael.patrick@allenlund.com
By Steve Hull, ALC Special Projects
I recently celebrated my 27th anniversary working at Allen Lund Company. So far, my career has included many different job titles and roles, from transportation broker to management positions and now to my current role as special projects business analyst. I’ve seen firsthand how the use of data in the supply chain has grown and evolved over that time span.
When I started as a transportation broker working in the Los Angeles branch office in 1996, emails were rare, and the internet was still a ‘new thing’ we were all trying to figure out. Customers tendered loads to me via fax machine, and tracking and tracing a load amounted to a phone call every few days from the driver. If there were problems after hours, the drivers all had my home landline phone number to call! And we gave directions to drivers via atlases and the trusty Thomas Guide. The only real data we used was either counting up the piles of paperwork on your desk or tallying how many loads you helped a trucker haul in a month.
Things evolved when I was promoted to assistant manager in the Portland, OR, branch office in 1998. To help be more connected to data and information, I convinced the team we needed to upgrade to mobile phones and then Palm Pilots a few years later. That way, we could better monitor pickup and delivery ETAs and update our customers.
Then, as general manager of the Portland office in the early 2000s, data-driven principals really took off. Analytics around load volumes, pricing trends, and metric-driven scorecards started to be commonplace. We started using customers’ TMS modules, and ALC brought our solution to market in AlchemyTMS. Fax machines and print-outs went away, and e-faxes and digital PDFs became the norm. We also eschewed the room full of filing cabinets in favor of hard drives and servers. When the iPhone came out in 2007, I knew right away that the future had arrived! The ease at which you could pull up data to share with your customers was (and is) astonishing.
I held that branch manager title for 20 years, and then it was time to hand off those responsibilities and put my experience to use in a new way. In early 2022, I took on the role of business analyst within ALC’s Special Projects team. I now work daily with our team of talented folks who help keep our broker’s eyes and ears aware of all the requirements of our customers and carriers. Dashboards, scorecards, maps, and spreadsheets are the tools of our trade. And we’re preparing for the future as well. APIs and AI programs will surely play a big role in what’s to come in the next decade.
Data has proven to be the key to success for many parts of the supply chain in my past 27 years, and I’ve enjoyed my front-row seat to this proliferation of information. I can’t wait to see what comes next!
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Steve Hull is a business analyst working for the Corporate office, and has been with the Allen Lund Company for 27 years. Hull is a graduate of the University of Southern California, completing a dual major in political science and U.S. history.
steve.hull@allenlund.com
By Iyer Amruthur, ALC San Antonio
One of the most refreshing things on a hot Texas (or hotter Arizona!) day is an ice-cold sarsaparilla soda, or at least I’ve been told. My generation grew up during one of the peak periods for soda, candy, snacks, and a cornucopia of “consumables” that tasted great, but usually ended up in more than a few dentist visits. It’s safe to say a lot of us are still on the “high-fructose”, “high carbonation” train; admittedly, I was the same way. I gave up soda in my youth because I always felt the sugar crash pretty rapidly, and eventually, many sugar-based products began to weigh down my digestion. Fast forward to the current date and I’ve almost entirely cut out refined sugars from my diet. So what’s been my go-to fix while being healthy, you ask? Well, maybe you’ve heard of nootropic beverages?
Instead of being taste-centric, these beverages are purchased for their perceived nutritional benefits. In the same way you might drink/consume pre-workout supplements, or take a shot of apple cider vinegar per a daily schedule, you would now pursue these commercially available products. Some of my favorite examples include companies like Soylent, Huel, and Ka’chava for their dedication to nutrition/complete meals as a drink. They provide consumers with a bag of powdered food that prioritizes all the vitamins, minerals, carbs, protein, and fats humans need to operate (just add water!). Another example is Kin Euphorics and several similar companies that have created “mocktails” that taste similar to a non-sweetened cocktail; the drinks are chock-full of roots, herbs, vitamins, and more, meant to enhance mood, cognition, and digestion.
The category that was so dominated by the sensation of taste has now become a laterally divided market between taste and utility. The latter has become popular with younger demographics and those concerned with improving their health or creating better consumption habits in general. While these drinks are often smaller in volume and higher in price, they have been flying off the shelves at most common stores (Walmart, Costco, Kroger, etc.). So, what’s popular, healthy, and tasty?
Enter Kombucha! Kombucha is what I call “the produce of beverages,” and for good reason. Kombucha takes black tea, sugar, water, and a culture of bacteria (think yeast for bread) called a S.C.O.B.Y. (symbiotic culture of bacteria and yeast). These mix together, and over time, they ferment into a delicious and bubbly beverage. Most commercial retailers pasteurize any alcohol retained during the process and ship it to major stores to be sold as a healthy, tasty, and unique alternative to sugary sodas.
It’s safe to say this is going to be a growing market, and we may see “soda” spots be replaced with kombucha, meal-based-beverages, smoothies, pressed juices, and even some drinks that might twist your tongue from the flavor profile, but deliver a calm nights rest.
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| Iyer Amruthur is a national sales manager in the ALC San Antonio office and has been with the company for three years. He attended The University of Georgia where he obtained a bachelor’s degree in Marketing, with a minor in Communications. iyer.amruthur@allenlund.com |
By Ken Cavallaro Jr., ALC Boston
Pixar Animation Studios brought mental health to the big screen with its award-winning Inside Out, a movie highlighting the conflicting emotions humans face during major life events. These warring emotions can be especially difficult for truck drivers. Tasked with driving an 80,000-pound vehicle loaded with potentially over $250,000 worth of product through endless stretches of road and frustrating traffic snares for twelve hours a day is further complicated by carriers missing quality time with family and friends, disrupted sleep patterns, and often a less than stellar diet.
A survey by the National Library of Medicine shows almost 28% of truckers surveyed reported suffering from loneliness on the road, while 27% reported depression, 21% reported chronic sleep disturbances, 14.5% reported anxiety, and 13% reported other emotional difficulties. According to the Center for Disease Control (CDC), “truckers experience higher rates of obesity, diabetes, anxiety, depression, cardiovascular disease, divorce, drug use, and suicide.” After celebrating Truck Driver Appreciation Week last month, it’s important that we continue recognizing and advocating for these essential workers who contribute to making our day-to-day lives possible.
Ronald Allen of Points West Express, a second-generation truck driver, has traversed the country for the past 49 years. According to Ronald, missing family events caused the greatest stress during his lengthy driving career. He also attributes difficulty finding time to sleep as contributing to his high-stress level.
“Following what my father did, this is all I knew, which was the best way to provide for my family, and what got me through the day was knowing they were financially ok,” said Ronald.
At Allen Lund Company, we pride ourselves on providing exceptional service to shippers and growers nationwide. Supporting truck drivers that help us achieve this goal – hard-working people like Ronald – is a top priority at our company. As logistics specialists, it is important to remember the challenges drivers face and be sensitive to their struggles so we can help them feel like the respected and valuable members of the supply chain that they are. We might not be able to control their diet, exercise, or sleep habits, but we can listen attentively, share kind words, and practice patience.
Everyone should take a few extra minutes to engage with drivers and ask about their day. In the long run, our extra effort to treat a driver as a person and not just a load number will also benefit our customers. A driver who feels respected will most likely be calmer, more attentive, and ultimately deliver a load with more care. We might not be trained psychologists specializing in mental health, but kindness and sensitivity can go a long way to easing the emotional burdens of our drivers. Knowing we value the person behind the wheel as more than just another load might just be what a driver needs to settle those shifting emotions and safely deliver on time.
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Kenneth Cavallaro, Jr. is a carrier manager in the Boston office. He began his career at the Allen Lund Company in February of 2019. Kenneth has been in the transportation industry since May of 1999. He holds a Bachelor of Arts in Communications from Salem State University.
kenneth.cavallaro@allenlund.com
By Ben Batton, ALC Des Moines
After a scorching hot summer ravaged much of the country, let’s think about something cool, sweet, and juicy. Watermelon, that iconic summer fruit, holds a special place in our hearts as the ultimate thirst-quencher and sweet treat. In this edition of Keeping It Fresh, we’ll take you on a refreshing journey through the world of watermelons, exploring fascinating facts, their growth areas, consumption, and the logistics that bring these luscious, lycopene-laden fruits to our backyards and tables.
Watermelons have a long history dating back to ancient Egypt, where they were not only consumed, but used as containers for water storage. There are over 1,200 varieties of watermelon, ranging in size, shape, and color. The most common types include the classic red seedless and yellow-fleshed varieties. Watermelons are aptly named, as they are composed of over 90% water. This makes them an excellent hydrating snack, especially during the hot summer months. Plus, they are rich in vitamins A and C, and antioxidants!
ALC Des Moines office has worked with Capital City Fruit since 1969, managing hundreds of watermelon loads every year. Keith Brooks, Capital City’s watermelon buyer, has been in the melon business since 1991 and has built strong relationships with growers nationwide. He works to guarantee the availability of fruit for his customers and sources watermelon all year long, especially during the peak season of April through August. Keith is active with the National Watermelon Association (NWA) and has been on the board for eight years. Allen Lund Company has been a member of the NWA for nearly 15 years.
“Back in the day, we used to load bulk watermelons on the floor of the trailers on top of straw or shredded newspaper,” Keith remembers. “But today, watermelons are shipped in bins triple-stacked on reefers or dry vans with produce vents.” All the growers he buys from are good partners who follow food safety requirements and communicate well. “However, some of the characters out there are lower than a snake belly in a wagon wheel rut, so you have to pick your partners wisely,” reminds Keith.
All fresh produce is heavily affected by weather, but watermelons present an added challenge because they are not typically cooled before shipping. Most produce is harvested and transported to a cooling shed where it is brought down to temp before being shipped across the country. Many growers use converted school buses to haul melons from the field to the packing shed, where they are sized and placed in bins. This means there can be a lot of “field heat,” so it’s common for drivers who transport watermelon to open the front and rear vents when first loaded in order to circulate air through the trailer during the first couple hours.
As we savor the sweet, juicy taste of watermelon on hot summer days, it’s worth appreciating the global effort and logistics that go into bringing this delectable fruit to our tables. From the fields where they are grown to the logistics networks that transport them, watermelons truly represent the essence of summer. So, the next time you bite into a slice of watermelon, remember the journey it took to reach your plate. Cheers to the summertime staple that keeps us cool and refreshed!
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| Ben Batten is General Manager, ALC Des Moines. |
| Ben graduated in 2002 with a Bachelor of Science in Transportation and Logistics from Iowa State University and joined DMTB in January 2004. Over the next decade, he worked as a broker, account manager, and sales executive before being promoted to VP of Sales and Operations in 2015. In 2017, he became a partner in the business, and the Allen Lund Company acquired DMTB in February 2020, where he served as the assistant general manager of the ALC Des Moines office before being promoted to general manager in 2022. ben.batten@allenlund.com |
| Sunday, September 10th through Saturday, September 16th is designated as National Truck Driver Appreciation Week for 2023. This is a time when America honors all the professional men and women truck drivers who are so vital to our way of life. They are the link in the supply chain that delivers the everyday needs of food items, manufactured goods, and just about every item in your home, office, or factory. It doesn’t matter if you live in a small town in central Kansas or New York City they have you covered. America has the most sophisticated supply network in the world, but it would grind to a halt without the truck driver. This week was created to remind all Americans these hard-working men and women deserve our respect and appreciation for all 52 weeks of the year. This year, let’s make the extra effort to extend driver courtesy when you see these big rigs making their way across the highways! We see truck drivers everywhere we go. Who are these road warriors that move over 10 billion tons of freight or about 70% of all the freight in the US? Here are some interesting facts about truck drivers. **94% are men, 6% are women, the average age is 49. **On average, they drive over 100,000 miles per year. **Celebrity truck drivers include Sean Connery, Elvis Presley, Rock Hudson, and Chevy Chase. **Truck drivers are the heroes who deliver the goods during pandemics, fires, floods, and national disasters that put themselves in harm’s way because that is what they are made of. Whenever you get an opportunity, take a moment to thank that hard-working professional driver for delivering the goods that help keep America the greatest nation in the world. Thank you, Drivers Bill Bess, Director, Carrier Development Allen Lund Company |