David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
When an electric lift truck's battery begins to lose its juice, DCs deal with it in one of two ways: They either remove the drained battery and replace it with a fresh one or they send the lift truck over to a high-voltage charger for a quick recharge while the battery remains in the truck. Whether a given DC chooses the traditional battery exchange method or the newer "fast charging" option depends on a number of factors, including the number of vehicles in service, time available for charging, size of the loads carried, and space available for power management.
In the not-too-distant future, there may be a third choice. Looming on the horizon is yet another power technology. Hydrogen fuel cells, though still very much in their infancy, may someday find practical applications in warehouses. With fuel cells, there are no batteries to be charged; the fuel cells would simply be refilled with hydrogen, similar to fueling a car with gasoline. But that day still appears to be a ways off. Fuel cell developers have yet to produce fuel cells that provide enough power at a cost competitive with established systems.
Time for a change
How the future of power management shakes out is still an open question. But in the meantime, both vendors of battery changing systems and fast-charging systems continue to introduce new options.
Take the traditional battery changing systems, for example. These systems continue to grow in size and sophistication. Labor costs play a big part in this. Companies looking to reduce labor costs can opt for fully automated systems for swapping out batteries, rather than paying an employee for that function. Many of these systems are multi-level and can hold hundreds of batteries. Automated cranes provide the muscle to move the batteries around.
"Automation is certainly a trend we see, eliminating the need for a battery operating person," says Dan Dwyer, vice president and general manager of Sackett Systems, a company that makes battery changing equipment.
Another selling point for automated battery changing systems is safety. Batteries are very heavy and facilities may choose automation to reduce the risk of injuries.
Speeds are also increasing. "The value in a system is having the right battery available when the truck enters the changing area," says Dwyer. This takes coordination between the truck and exchange system so that the vehicle can be serviced as fast as possible. A good system today can change a battery in less than a minute.
Customers also have several options when it comes to the battery changing system's design and layout. For example, DCs with space limitations can install multi-tiered systems that feature rows of chargers stacked one on top of the other. If space is not a problem, however, single-tier systems that align batteries and chargers in long rows at floor level provide a less costly and faster alternative (there's no wait while the battery is retrieved from an upper level). In the end, says John Pratt, owner of battery handling systems maker Multi-Shifter, the decision comes down to this: "What is more important to you, saving space or gaining productivity?"
The success of any system, though, hinges on whether it can deliver a battery that can last an entire eight-hour shift. This is where good battery management comes into play.
"Battery management systems are helping customers identify battery usage to properly forecast replacement batteries," notes Martin Huber, president and CEO of BHS (Battery Handling Systems).
"Software integration has become a huge part of systems today," adds Jim Lane, vice president of sales for Materials Transportation Co. (MTC). "We used to sell just changers; now we sell them with battery management systems."
Using measurement tools and analytical software, battery management systems optimize battery usage and determine when batteries have reached the point in their lives when it is no longer economical to recharge them. "The goal is not to keep a battery 10 years," says Lane. "Companies need to scrap batteries that are poor performers."
Make it fast
Like the battery exchange business, the fast-charging segment has matured in recent years as the technology behind it has improved. The cost of fast charging has also dropped, which has accelerated its adoption. Chargers that cost $20,000 about eight years ago now can be had for half that price.Manufacturers of these systems predict that costs will continue to drop as technology improves and chargers become smaller.
Because these systems have regular contact with the batteries and their vehicles during charging times, they are able to easily collect charging data to help manage battery performance—so much so that Larry Hayashigawa, director of product management for PosiCharge, likes to refer to fast charging as "intelligent charging." Some of his company's charging systems, for example, include data collection units that are placed on customers' lift trucks to track battery and vehicle performance. Whenever the vehicle is connected to the fast charger, operating data are automatically downloaded to a server, providing technicians with at-a-glance information such as how many amperes went into the battery at its last charge, how much was discharged during the last shift and when the battery was last watered. Managers can then use the data to manage their charging systems or to determine when it's time to replace an aging battery.
While 36-volt batteries continue to be the norm for fast charging, some higher voltage systems, such as 80 volts, are growing in use. Eighty-volt batteries produce less heat than lower voltage cells and can be more efficient. Of course, this requires a lift truck that can operate at 80 volts. Several truck manufacturers, especially those based in Europe, produce such vehicles.
"Eighty-volt is well suited for powering vehicles that have to carry heavy loads," notes Hayashigawa. He says that with increasing mandates to lower vehicle emissions, the 80-volt batteries are being used to power new heavy-duty trucks that customers are buying to replace their fleet of LP vehicles.
Experiments are also being done on using higher voltages to reduce charging times.
"We continue to work with battery packs as high as 312 volts," says Peter Michalski, vice president of Edison Minit-Charger, a manufacturer of fast-charging systems. He says that using the higher voltages can drastically reduce charging times, though at a higher cost of electricity. "A 1,000 ampere battery can be charged at 312 volts in only 10 minutes," he notes.
Cold storage applications represent another frontier for fast charging. Users are reporting good results using fast charging for these applications, where freezing temperatures often zap batteries of their performance. Another potential use for fast charging is in the area of "opportunity charging." Edison's Michalski says that some 25 to 30 percent of lift trucks using conventional batteries never have them exchanged. Instead, users simply charge the battery while it remains in the truck. Unfortunately, these batteries often do not receive a full charge, as the vehicles are needed before they can be adequately topped off. This tends to diminish long-term battery life. Michalski says that fast chargers could be used for these applications, as they provide a better overall charge than the spotty practice of hooking up for short periods to conventional chargers.
As for where the next innovations in fast charging will come from, Michalski points to battery design. "One thing that has yet to happen is battery manufacturers' embracing fast charging to the point where batteries are designed from a clean sheet of paper for fast charging, rather than just modifying conventional batteries," he observes.
Michalski says a dedicated fast-charging battery should provide longer life. He also notes that future batteries may include carbon-based grids, instead of lead, which could improve durability and reduce the amount of heat generated from fast charging.
Best of both worlds
Even with efficient fast-charging systems, batteries still need to receive full charges every once in a while. "Batteries have to charge a certain amount of time to come up to full level," explains Pratt.
For that reason, he says, some customers may find a hybrid solution is best suited to their needs—one that may include fast charging for some vehicles and, at minimum, a single-level system that allows some battery rotation and emergency changes. Even with fast charging, batteries eventually wear out, which means a DC still needs some way to replace a battery at the end of its life cycle. These small hybrid systems using the best of both technologies may provide a good alternative.
Whatever system a company chooses today or in the future—changing, fast charging, a hybrid mix or some type of fuel cells—the accountant's bottom line will still be the major factor in the company's decision how to handle its batteries. "It's all about upfront capital costs and then cost per kilowatt,"
acknowledges Lane.
In this market, it seems, money literally is power.
The number of container ships waiting outside U.S. East and Gulf Coast ports has swelled from just three vessels on Sunday to 54 on Thursday as a dockworker strike has swiftly halted bustling container traffic at some of the nation’s business facilities, according to analysis by Everstream Analytics.
As of Thursday morning, the two ports with the biggest traffic jams are Savannah (15 ships) and New York (14), followed by single-digit numbers at Mobile, Charleston, Houston, Philadelphia, Norfolk, Baltimore, and Miami, Everstream said.
The impact of that clogged flow of goods will depend on how long the strike lasts, analysts with Moody’s said. The firm’s Moody’s Analytics division estimates the strike will cause a daily hit to the U.S. economy of at least $500 million in the coming days. But that impact will jump to $2 billion per day if the strike persists for several weeks.
The immediate cost of the strike can be seen in rising surcharges and rerouting delays, which can be absorbed by most enterprise-scale companies but hit small and medium-sized businesses particularly hard, a report from Container xChange says.
“The timing of this strike is especially challenging as we are in our traditional peak season. While many pulled forward shipments earlier this year to mitigate risks, stockpiled inventories will only cushion businesses for so long. If the strike continues for an extended period, we could see significant strain on container availability and shipping schedules,” Christian Roeloffs, cofounder and CEO of Container xChange, said in a release.
“For small and medium-sized container traders, this could result in skyrocketing logistics costs and delays, making it harder to secure containers. The longer the disruption lasts, the more difficult it will be for these businesses to keep pace with market demands,” Roeloffs said.
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
As the hours tick down toward a “seemingly imminent” strike by East Coast and Gulf Coast dockworkers, experts are warning that the impacts of that move would mushroom well-beyond the actual strike locations, causing prevalent shipping delays, container ship congestion, port congestion on West coast ports, and stranded freight.
However, a strike now seems “nearly unavoidable,” as no bargaining sessions are scheduled prior to the September 30 contract expiration between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) in their negotiations over wages and automation, according to the transportation law firm Scopelitis, Garvin, Light, Hanson & Feary.
The facilities affected would include some 45,000 port workers at 36 locations, including high-volume U.S. ports from Boston, New York / New Jersey, and Norfolk, to Savannah and Charleston, and down to New Orleans and Houston. With such widespread geography, a strike would likely lead to congestion from diverted traffic, as well as knock-on effects include the potential risk of increased freight rates and costly charges such as demurrage, detention, per diem, and dwell time fees on containers that may be slowed due to the congestion, according to an analysis by another transportation and logistics sector law firm, Benesch.
The weight of those combined blows means that many companies are already planning ways to minimize damage and recover quickly from the event. According to Scopelitis’ advice, mitigation measures could include: preparing for congestion on West coast ports, taking advantage of intermodal ground transportation where possible, looking for alternatives including air transport when necessary for urgent delivery, delaying shipping from East and Gulf coast ports until after the strike, and budgeting for increased freight and container fees.
Additional advice on softening the blow of a potential coastwide strike came from John Donigian, senior director of supply chain strategy at Moody’s. In a statement, he named six supply chain strategies for companies to consider: expedite certain shipments, reallocate existing inventory strategically, lock in alternative capacity with trucking and rail providers , communicate transparently with stakeholders to set realistic expectations for delivery timelines, shift sourcing to regional suppliers if possible, and utilize drop shipping to maintain sales.