Ohio warehouse & logistics

Ohio Warehouse & Logistics Labor Oversight to Increase

The safety and well-being of our valued Ohio warehouse & logistics workers have always been an imperative at On Time Delivery & Warehouse.

Recently, the U.S. Department of Labor announced that given the heightened demands being placed on warehousing and logistics employees, it would be launching a new initiative to vigorously enforce these workers’ wage and hour rights and safety protections.

“The increased demand and constraints on the global supply chain have combined to place enormous strain on the nation’s warehouse and logistics industries,” the DOL said in a news release.

Regulators are ramping up federal enforcement to ensure employees are safe from harassment, paid their legally-owed wages, and are afforded proper family and medical leave in accordance with applicable employment laws. They’ll also be watching for potential misclassification of employees as independent contractors, a practice that tends to result in underpaid wages and benefits, as well as an unfair competitive advantage for companies in the free market.

Of course, the agency has had its eye on the industry for some time now. But the pandemic underscored the critical economic function of warehouse workers, truckers, delivery drivers, and other Ohio warehouse & logistics professionals. Ongoing supply chain exigencies have left more than few logistics firms scrambling to keep pace. Still, the DOL doesn’t see that as an excuse to make concessions on worker pay and safety measures. The recent announcement involves news that the agency is hiring more than 100 new wage and hour investigators – with more likely on the way.

Our Ohio Warehouse & Logistics Team is Committed to Worker Safety and Customer Satisfaction

We recognize that Northeast Ohio warehouse & logistics costs and challenges have risen in recent months, but investment in dedicated employees and their well-being is a core tenet on which our team has never compromised. We’ve had this commitment dialed in for decades, so the DOL’s announcement has no real impact on our day-to-day activities.

Meanwhile, companies that are just launching and/or struggling may want to reconsider any internal warehousing and logistics operations – especially knowing that there will be additional federal oversight and zero room to cut corners without significant penalties.

Cleveland trucking

Cleveland Trucking Favored Over Rail by Shippers

Shipping companies are increasingly favoring Cleveland trucking services over rail to avoid supply chain bottlenecks and ensure on-time deliveries.

As reported recently by The Wall Street Journal, U.S. intermodal transports (which involve railroads carrying containers and truck trailers) have fallen by 12 percent in the first six weeks of 2022 compared to last year. Even as manufacturers and retailers were scrambling to import and transport goods in the last six months of 2021, reliance on rail was slipping. Even though both Cleveland trucking and railroad companies recognize the rising demand of long-distance freight transport (500+ miles), shippers are increasingly leaning on highways over railroads. This is largely thanks to shortfalls of equipment, warehousing space, and labor in rail yards – and that’s across all supply chains. This inevitably results in erratic and vexing delays for modes of transport that rely in whole or in part on rail.

Intermodal transportation does rely on trucking, but typically only for the final leg of the delivery. Under normal circumstances, intermodal transport is an effective way to move key goods. It tends to be cheaper, too. However, it’s also slower and more complicated. In an era of supply chain uncertainties, long-haul trucking has proven to be the more reliable option.

Toward the tail end of 2020 and through the first part of last year, railroads were still making considerable gains, chugging along to keep the supply chain moving. But then last summer, rail yards in the Midwest (namely, Chicago) started to see major bottlenecks. Both railroads and warehouses struggled with lack of space and too few workers. Shippers east of the Mississippi River were reporting up to 30 percent delays in container unloading and deliveries. To help resolve the issue, Chicago railroad companies imposed substantial restrictions on incoming cargo for several days. This cleared the backlog, but there were still ongoing bottlenecks at other ports across the country. Shippers, looking to make up for lost time, sought more dependable supply chain solutions to get their products out of ports and into warehouses. They turned to long-haul trucking, and they’ve stuck with it as the months have worn on.

Experts opine that since the start of the pandemic, intermodal transport has ceded roughly 1 percent of its market share to long-distance trucking. That may not sound like much, but it breaks down to about 30,000 additional truck moves a week. Truckload volumes from L.A. to Chicago are up more than 130 percent over the last year. That has increased trucking rates, but Cleveland trucking companies like On Time Delivery & Warehouse still have additional capacity. That’s a good thing considering the way that consumer spending habits have shifted the last two years from services to goods, resulting in skyrocketing imports.

Cleveland truckload carriers

Cleveland Truckload Carriers in High Demand as West Coast Supply Chain Bottlenecks Persist

Cleveland truckload carriers moving full trailers have been in especially high demand in recent months, thanks to persistent West Coast supply chain bottlenecks. The Wall Street Journal reports indicators from bellwether transport services foreshadow the likelihood these western port backlogs will drag through the holidays and into 2022. Suppliers and shippers looking to keep down costs may want to consider working with a dedicated 3PL trucking logistics service.

Part of the issue with higher costs is the rush by large retailers to restock inventory (with demand in some sectors up as much as 85 percent this year compared to the same time in 2020). Also factoring are the broader supply chain upheavals affecting the whole country – primarily, shortages of truck drivers, rail workers, and warehousing employees.

Keeping freight and trucking costs down while maintaining efficient logistics operations isn’t a cakewalk, especially when the labor force has been so limited. Meanwhile, consumers are leaning on e-commerce now more than ever, with few sacrificing expectations – including on costs and delivery times.

As longtime Cleveland truckload carriers and warehousing professionals, we understand these challenges and work closely with our customers to help tackle them. Key to our longevity are competitive pricing and low staff turnover, the latter fueled by good pay, attractive benefits packages, and a perpetually positive work environment. Loyal, experienced truck drivers and warehouse workers help us keep customers’ inventory moving as efficiently as possible for the best rates.

Cleveland warehousing

Safe Cleveland Warehousing in the Time of Coronavirus

Warehousing has proven more critical than ever during the COVID-19 pandemic, with teams like ours responsible for delivering essential goods to healthcare facilities, businesses and individuals. While many other businesses are closed or have the bulk of their employees working from home, warehouses like ours have gone into overdrive. Keeping the supply chain moving is important, but it’s also imperative that we keep our Cleveland warehousing workers safe.

On Time Delivery & Warehouse has taken numerous measures to assure our warehouse facility personnel can do their jobs safely and that we’ve minimized the risk of infection. We’ve adopted a range of actions from implementing strict social distancing guidelines to taking worker temperatures to ensuring our facilities are frequently cleaned and sanitized. Meal breaks and shifts may be staggered. Meetings are held over the phone or via video conferencing where possible.

Keeping our valued warehouse workers healthy our top priority, and it also helps protect our customers and ensures we can meet their dynamic and rising needs.