Headwinds are hitting the food & beverage sector from two different directions, recent headlines indicate. For one, it’s a leading target of cargo thieves, ahead of electronics and consumer goods, owing to the ease of local resale afterward. For another, a drop in consumer spending is motivating food & beverage companies to invest in infrastructure, including the use of artificial intelligence (AI) for supply chain optimization. Indeed, investing to improve supply chain and logistics efficiency will pay long-term dividends in food & beverage and other industries as well.
Cargo Thefts Plague Food & Beverage Logistics
Based on data from CargoNet, cargo thefts were up 68% in the fourth quarter of 2023, a sequential increase from Q3, when it was up 57%. Food & beverage was the industry hit hardest by the rise in cargo thefts, followed by electronics and household goods. Danny Ramon with Overhaul, a visibility and risk management platform, told FreightWaves that the ease of reselling stolen food & beverage products – often done locally – is one reason it tops the list for thieves. In a lighter observation, Ramon said stolen avocados from a Texas load could’ve ended up as guacamole on Super Bowl platters. For all of 2023, cargo theft was up 57% vs. 2022, according to CargoNet, representing a total value loss of $130 million. This figure was almost certainly higher, as cargo theft reporting is not mandatory, the company said.
Food & Beverage Companies Invest in Infrastructure, Supply Chain Optimization To Counter Headwinds
A pullback in consumer spending and supply chain disruptions are leading food & beverage companies to invest more heavily in infrastructure, including automation and data for supply chain optimization to support growth. This finding was part of a new market report (registration required) from RSM, which found that inflation, a drop in discretionary spending, and changing consumer preferences negatively impacted sales. The report suggests food & beverage companies should look to artificial intelligence (AI) to respond to the shifting preferences and gain operational efficiency. “Amid these challenges, the success of food companies hinges on adapting to shifting consumer preferences and establishing efficient operations,” the report states. “AI and data-driven strategies can optimize supply chains, forecast demand accurately, and identify trends promptly.”
Researchers Say ELD Vulnerability Could Let Hackers Disrupt Commercial Trucking Systems
A recent paper published by a trio of cybersecurity researchers at the University of Colorado details how security vulnerabilities in federally mandated Electronic Logging Devices (ELDs) could enable hackers to potentially disrupt entire fleets. The researchers highlighted three separate vulnerabilities in ELDs: their ability to be wirelessly controlled to gain unauthorized control over vehicle systems, the ability to upload malicious firmware that enables manipulation of data and vehicle operations, the potential for a self-propagating truck-to-truck worm that leverages the networked nature of ELDs. “Such an attack could lead to widespread disruptions in commercial fleets, with severe safety and operational implications,” the researchers concluded. ELDs were mandated by the Federal Motor Carrier Safety Administration (FMCSA) in 2017 to track driver hours and ensure they don’t exceed safety standards. Truckers have been pushing back since, with one owner-operator petitioning the FMCSA for a one-year exemption.
Tanzania Growing In Importance as LNG Producer, Distributor
Tanzania, looking to be a major exporter of liquified natural gas (LNG), is striking deals with oil & gas companies for the exploration, development, and processing of an offshore reserve estimated at 57 trillion cubic feet. The gas is in fields operated by Equinor, Shell, and ExxonMobil that can produce a combined 10 million metric tons per year. The national project will be discussed at Invest in African Energy (IAE) 2024, held in May in Paris. Tanzania is also a regional leader in LPG distribution, with gas imported from the Middle East flowing through its terminal on the Indian Ocean and then shipped by truck throughout the region.
TFI Acquires LTL Carrier Hercules
Logistics firm TFI International Inc. has acquired Hercules Forwarding, a less-than-truckload (LTL) carrier that provides transportation services across the U.S. and into Canada, the companies announced. With offices in Vernon, Calif., and New Westminster, BC, Hercules has a 31-terminal network with over 200 trucks, 600 trailers, and 75 containers, taking in $100 million in revenue. Industries served by Hercules include consumer and retail, HVAC and building products, automotive, industrial, 3PL, and food & beverage. “This bolt-on acquisition fortifies our U.S. LTL portfolio while adding cross-border LTL into Canada, creating a partner for our
Canada-to-U.S. shipments while offering synergy opportunities on both sides of the border,” stated Alain Bédard, chairman, president, and CEO of TFI International. In December 2023, the acquisitive TFI also announced its purchase of flatbed truckload carrier Daseke; the $1.1 billion deal is expected to close this quarter.
Food & Beverage Companies Seek Logistics Solutions
The food & beverage sector is indeed experiencing some challenging times. Between slowing sales due to inflation, changing preferences, and increasing cargo theft, companies must find ways to boost sales, protect loads, and improve operational efficiency. Seems like it’s asking a lot!
A partnership with Wicker Park Logistics can help the supply chain end. We are specialists in providing reliable transportation services for leading firms in food & beverage, oil & gas, paper & packaging, and more. Leveraging deep industry expertise, a cloud-based platform, and a consultative approach, Wicker Park offers on-demand transportation across modes (FTL, LTL, flatbed,hot-shot, reefer, etc.) and end-to-end visibility into every shipment. Get in touch with an expert today to learn more!
