Check Call: Born in the USA

It’s America’s birthday on Thursday and with it comes an obscene amount of explosives to light up the night in celebration. The first fireworks celebration for the holiday was in Philadelphia on July 4, 1777, during the first organized celebration of Independence Day. Ships fired a 13-gun salute in honor of the 13 colonies followed by the Sons of Liberty setting off fireworks over Boston Common.

Fast forward to 2024 and it’s a time-honored tradition to set off fireworks on the Fourth, ideally with all extremities staying attached to the body. As for fireworks being available for Americans this time of year, well naturally the supply chain is to thank for that.

The average firework has a life expectancy of five to 10 seconds, a ridiculously short life span compared to how long it takes them to get to U.S. shores. On average it’s 30-45 days from the time fireworks leave the manufacturer in China until they hit U.S. suppliers. (A Forbes article says 90% of fireworks purchased in America, roughly $2.3 billion worth, come from China. Germany and France are Nos. 2 and 3.)

Fireworks are transported via the cold chain – looking at you, Running on Ice – to reduce the risk of combustion. That includes even special warehouses and facilities designed to prevent fireworks from prematurely exploding.

Fireworks also have other restrictions in regard to transportation: They must be properly labeled and packaged according to the Department of Transportation regulations. This includes using U.N.-certified packaging and marking the contents.

Vehicles used for transporting fireworks must meet criteria set by DOT, including having a valid registration and being equipped with appropriate safety features. These may include fire extinguishers, emergency exits and placards indicating hazardous materials.

The Forbes article adds: “Actual demand leading up to July 4th is very dependent on the weather. Most actual consumer purchases take place in the week prior, so wet and gloomy forecasts can significantly impact actual demand. On the other hand, a specifically dry period leading up to the big day can also have a negative impact as local authorities may put a ban on public displays.”

More News by Radar: Logistics companies seek integrated location tracking solutions

Accurate location tracking is a vital aspect of many industries, perhaps none more so than logistics and transportation. With the costly pitfalls of lost assets or misplaced leases and the prevalence of fraud, theft and location spoofing, 3PLs and carriers are constantly in need of more accurate and more efficient means of tracking and securing equipment and drivers. Read more.

Market Check. There has been some surprising movement in Southern California as outbound tender rejections and outbound tender volumes are on the rise. Onatrio, California, has had a 198-basis-point increase week over week as the OTRI inches closer to 9%. It’s still holding strong at 8.63% – a strong indication of what to expect for July. There will be a small blip toward the end of the week and the beginning of next week as the market levels out with some post-Fourth of July corrections.

Should these levels return after the Fourth, it’s a strong indication that some demand has come back to the market. Southern California remains one of the markets to watch as a leading indicator of a market flip. After the holiday if the OTRI stays around 9%-10%, it could be an early sign for a positive Q3 and Q4.

Who’s with whom — and yet again this week it’s who’s not with us any longer. The fallen this time is less-than-truckload carrier Tony’s Express based in Fontana, California. The company has filed for bankruptcy protection approximately three months after it abruptly ceased operations. This bankruptcy protection filing will allow the business to reorganize without having to fully go under.

According to Clarissa Hawes’ article, “The filing for Tony’s Express lists both its assets and liabilities as up to $10 million. The company states that it has up to 199 creditors and that funds will be available for distribution to unsecured creditors. The company’s top three creditors with unsecured claims are located in California, including Y Trucking of Fontana, which is owed $700,000.”

The owner, John Ohle, has set a path for the future of the company by converting the LTL carrier to a rental truck trailer business, which is a bold strategy. Hawes also explains that “According to FMCSA data, Tony’s is ‘not authorized to operate as [a] property broker.’” Currently Ohle has an extension on his deadline to submit schedules of assets and liabilities with the court, so who knows what the future holds for Tony’s?