LITTLE BIT STILL MARKETS IN
RED RIGHT NOW BACK TO YOU.
MARIA: ALL RIGHT, CHERYL,
THANK YOU SO MUCH PROBLEMS ARE
PILING UP AT PORTS CHIMENT
ROBINSON ONE OF THE WORLD
LARGEST SHIPPING LOGISTIC
COMPANIES TO ADDRESS THE
SUPPLY CHAIN, HANDLING 26
BILLION DOLLARS GOODS FORWALMART
TARGET.
>> THANKS FOR ATTENTION TO
THIS WE ARE WATCHING YOUR O
BETTER-THAN-EXPECTED ER
QUARTERLY NUMBERS AS WELL,
FIRST ACCESS THE SITUATION FOR
US BOB WHAT DO YOU SEE?
>> GOOD MORNING, MARIA.
THE -- ACROSS ENTIRE GLOBAL
SUPPLY CHAIN THERE ARE
OPPORTUNITIES FOR IMPROVEMENT
AT EACH STEP ALONG THE GLOBAL
SUPPLY CHAIN I HEARD ONE GUEST
EARLIER SAID -- THIS MAY BE
CASE ONLY ONE PART OF THE
SOLUTION WE’VE GOT, ISSUES
WITH CAPACITY, OCEANSIDE,
TAKING STEPS TO KEEP PORTS
OPEN 24-7, THAT WON’T SOLVE
THE PROBLEM AS CHALLENGES WITH
THINGS LIKE LABOR
AVAILABILITY, SHORTAGES, GOES
THROUGHOUT THE ENTIRE SUPPLY
CHAIN.
MARIA: WHAT ABOUT THAT LABOR
AVAILABILITY, WE’RE TALKING SO
MUCH ABOUT A SHORTAGE OF TRUCK
DRIVERS, WHY ARE WE SEEING
SUCH A LABOR SHORTAGE?
WHAT CAN YOU TELL US ABOUT THE
REALITIES THAT YOU ARE FACED
WITH ON THE GROUND?
>> WELL THERE IS A SHORTAGE OF
TRUCK DRIVERS, I WOULD BE
REMISS IF I DIDN’T AT LEAST
SPEAK TO O SOME THINGS GOING
WELL IN TRIBUTEING THE
FACT LITERALLY MILLION
PROFESSIONAL TRUCK DRIVERS ON
ROAD EVERY DAY, SAFELY
DELIVERING OVER 75% ALL GOODS
THAT ALL OF US CONSUME EVERY
DAY, IF WE LOOK CROSS
LANDSCAPE PROFESSIONAL TRUCK
DRIVERS ESTIMATE BETWEEN
60,000 AND 80,000 DRIVERS
SHORT WHAT HAVE WE NEED IN
ORDER TO REACH EQUILIBRIUM
THIS IS AN INDUSTRY WILL
NEEDED TO ADD OVER A MILLION
DRIVERS OVER THE COURSE NEXT
DECADE, CHALLENGING INDUSTRY
TO ATTRACT LABOR INTO GIVEN
DEMANDS OF THIS JOB.
>> AN INCREDIBLE DEMANDING
JOB DRIVING ALL THE TILE
SITTING IN THAT SEAT ALL THE
TIME THAT ALSO IS -- YOU
DISRUPTIVE, FOR ONE’S BODY YOU
ARE ALSO INVESTING IN
TECHNOLOGY.
TO MOVE THINGS ALONG.
WHAT ABOUT THAT IN TERMS OF
THE IMPACT ON YOUR COMPANY,
AND GROWTH WITH THIS INVESTING
IN TECHNOLOGY?
>> SO THAT HOW ARE YOU DOING
THAT?
>> YEAH SO WE WILL SPEND A
BILLION DOLLARS ON TECHNOLOGY
OVER THE COURSE OF THE NEXT
SEVERAL YEARS.
MUCH OF THAT TECHNOLOGY
INVESTMENT IS -- SOLVING JUST
THIS PROBLEM INEFFICIENCIES
OUT OF SUPPLY CHAIN IF WE
THINK -- TRUCKING AS EXAMPLE
CLOSE TO 25% ALL MILES THAT
THESE TRUCKS DRIVE ARE DRIVEN
-- WITHOUT A LOAD WE BELIEVE
WE’VE GOT ABILITY TO GET MORE
TRUCKLOADS THAN ANYONE ELSE IN
THE INDUSTRY MATCH EVERY EMPTY
MILE, MORE CAPACITY ADDING
BACK IN TO HELP GOODS FLOW
MORE EFFECTIVELY THROUGH
SUPPLY CHAIN JAMES FREEMAN
FROM "THE WALL STREET
JOURNAL," GO AHEAD.
>> THANKS MARIA BOB CAN YOU
TELL US WHEN TALKING ABOUT THE
PROBLEMS AT THE PORTS OF LOS
ANGELES AND LONG BEACH ARE
THERE CALIFORNIA SPECIFIC
REGULATIONS THAT ARE AFFECTING
THIS IN TERMS OF VEHICLES,
REGULATION, EMPLOYMENT LAW
THAT RESULTS IN FEWER TRUCKERS
FEW ER TRUCKS THAN WOULD
OTHERWISE BE THE CASE?
>> YOU KNOW PART -- HOARD TO
TELL IN SPECIFIC REGULATION
HAS DIRECT IMPACT ON SUPPLY
CHAIN I CAN SAY FOR CERTAIN
BOTTLENECK TO AVAILABILITY, IS
A HUGE THING, WHAT IS
HAPPENING HERE TODAY, IS THAT
CONTAINERS COME OUT OF THE
PORT, UNLOADED DIRECTORS
CENTER BECAUSE OF LABOR DELAYS
SENDING MUCH MORE TIMING AWAY
TO BE UNLOADED INEFFICIENCY
INTO SUPPLY CHAIN,
INTROSPECTIVE IN RAIL SERVICE
SOME RAILS TO HELP RELIEVE
CONGESTION SHOULD START TO SEE
MORE CONTAINERS MORE
EFFICIENTLY THERE ARE SEVERAL
MORE STEP YOU CAN SAY NEXT
SEVERAL MONTHS, QUARTERS.
MARIA: WHAT ABOUT COST?
YOUR COMPANY SAW PRICE GREATER
THAN COST TRANSPORT IN THE
TRUCKLOAD FOR THE FIRST TIME
IN NINE QUARTERS, TELL ME
ABOUT THE COST WHAT YOU ARE
FACING IN TERMS OF THE EXPENSE
SIDE OF THE BUSINESS.
>> IT IS CERTAINLY BEEN --
COST ENVIRONMENT REALLY EVERY,
OCEAN PROBABLY MOST PRONOUNCED
YEAR-OVER-YEAR BASIS WE SEE
CONTAINERS THAT PERHAPS YEAR
AGO MIGHT HAVE BEEN MOVING FOR
A FEW THOUSANDS NOW MOVING
TENS OF THOUSANDS OF DOLLARS
ON DOMESTIC TRUCKING FRONT
DECREASES IN COST OF
TRANSPORTATION OVER PAST
SEVERAL INQUIRIES DID MOD
DRAIT A BITTER THIRD QUARTER
PRICING IF MARKETPLACE TART TO
LEVEL OUT MUCH HIGHER RATES
THAN A YEAR AGO WE DO EXPECT
THERE WILL BE INFLATIONARY
COSTS IN THE TRUCKING SIDE, IN
OUR INDUSTRY WE TALK ABOUT
STOCK MARKET THE CONTRACTUAL
MARKET THE STOCK MARKET
CONTINUES TO MOVE AHEAD OF
CONTRACT, PRICING UP OVER
TIME.
MARIA: I AM GOING TO BRING
ALEX SANCHEZ IN FLORIDA BANKS
ASSOCIATION YOU SAID SOMETHING
SO COMPELLING WE MAY BE SHORT
60 TO 80,000 TRUCK DRIVERS,
WHAT IS THE SALARY THE AVERAGE
SALARY FOR THOSE TRUCK
DRIVERS?
AND WHERE DO YOU FIND THE
LABOR, IN THE FACE OF THESE
SHORTAGES THAT WE’RE SEEING
ACROSS THE COUNTRY IN SOME
CASES THE WORLD?
>> WELL PROFESSIONAL TRUCK
DRIVERS DEPENDING HOW THEY
DRIVE IF OWN OPERATORS COUNTRY
DRIVERS, WAGE VARIES I WOULD
SAY IF YOU THINK ABOUT 50,000
DOLLAR RANGE PROBABLY GOOD
AVERAGE THERE IS A COUPLE
THINGS VERY SPECIFICALLY THE
FIRST THING I POINT TO IS THAT
MAKE UP 47% LABOR POOL BUT
ONLY MAKE UP ABOUT 8% OF THE
POPULATION OF PROFESSIONAL
TRUCK DRIVERS SO THERE IS A
REAL OPPORTUNITY TO ATTRACT
WOMEN INTO THIS INDUSTRY SAFE
WAY DRIVE MORE EMPLOYMENT
THERE SECOND PIECE I WAS
TALKING ABOUT BRINGING YOUNGER
WORKERS INTO THE INTERSTATE
TRUCKING TODAY YOU NEEDED TO
BE 21 IN ORDER TO BE
INTERSTATE TRUCK DRIVER TO
DRIVE FROM STATE TO STATE IF
YOU THINK ABOUT NATURE IT IS
DIFFICULT FOR TRICKING FIRST
JOB OUT OF HIGH SCHOOL PERHAPS
THEY HAVE TO WORK IN A
DIFFERENT TRADE FOR A PERIOD
OF TIME OR GO TO COLLEGE, FALL
INTO TRUCKING AS SECOND CHOICE
SO THE DRIVE SAFE ACT VERY
IMPORTANT TO LEGISLATION
WORKING THROUGH, WOULD ALLOW
18-YEAR-OLDS, TO OBTAIN
INTERSTATE TRUCK DRIVING
LICENSES, TO GO INTO PRIMARY
VOICE VERSUS SECONDARY.
>> YESTERDAY ON HILL LAWMAKERS
TALKING ABOUT, FUNNY THAT YOU
BRING IT UP AS BEING AS
IMPORTANT -- ALEX SANCHEZ IS
HERE WITH US GO AHEAD ALEX.
>> THANK YOU, MARIA, BOB YOU
ARE A GREAT EXAMPLE WHY THE
FREE ENTERPRISE SYSTEM IS
GOING TO FIGURING THIS OUT YOU
AND YOUR COMPANY I THINK WE
WILL, AND YOUR COMPANY WILL
HELP IN GETTING THOSE
SOLUTION.
MY QUESTION TO YOU, BOB, IS --
TO FOLLOW MARIA YOU SAID UP TO
NEW DRIVERS IN COMING YEARS
YOU HAVE TO RECRUIT WHERE YOU
PERHAPS HAVE NOT RECRUITED
BEFORE WHAT IS OUTLOOK, AND
WHAT KIND OF EFFORTS CAN YOU
SHARE WITH US, SO THAT WE WILL
KNOW THAT THE SOLUTIONS ARE
FORTHCOMING WHERE DO YOU SEE
RECRUITING NEW TRUCK DRIVERS
DOWN THE ROAD?
FOR THE INDUSTRY?
>> WELL AS I SAID I THINK YOU
KNOW THE INDUSTRY, THE
AMERICAN TRUCKING ASSOCIATION
OWN OPERATORS INDEPENDENT
DRIVERS COMPANIES WORKING TO
TRY TO MAKE TRUCKING
ATTRACTIVE JOB WE NEED BETTER
INFRASTRUCTURE REDUCING
BOTTLENECK IN SUPPLY CHAINS
MORE -- SO DRIVERS PEEL SAFE
ABLE TO MAXIMIZE FULL DAY
ENSURE OUR SHIPPERS OUR
RECEIVERS, TRUCK DRIVERS ARE
TREATED ETHICALLY FAIRLY A
GOOD ENVIRONMENT FOR THEM TO
ARRIVE TO DISTRIBUTION CENTER
TREATED WITH RESPECT.
>> NETWORK 75,000 DIFFERENT
MOTOR CARRIERS ALLOW TO
PARTICIPATE, THEY WOULDN’T
ACHIEVE ON THEIR OWN BECAUSE
OF LACK INABILITY TO FIND
SHIPPERS WE ARE LOOKING AT
THINGS A THE TO ATTRACT DRIVER
TSHL WORK WITH SMALLER
CARRIERS.
>> BOB QUICK HAVE YOU SEEN A
BIG CHANGE MACRO STORY.
>> THINGS PICK UP WE CONTINUE
TO SEE REALLY, REALLY STRONG
DEMAND SIGNALS FROM THE
CONSUMER SIDE AND SUPPLY CHAIN
CONTINUES TO BE CONSTRAINED SO
THE MARKET CONDITIONS WE ARE
EXPERIENCING EXPECT TO PLAY
FORWARD NEXT HAD BEENS SEVERAL
QUARTERS.
>> BOB GREAT TO GET YOUR TAKE