Signs have emerged in the last few months that point to a renaissance for the waterways. Frustrated by highway congestion and a shortage of trucks, shippers are giving the inland waterways another look.
Mitch Mac Donald has more than 30 years of experience in both the newspaper and magazine businesses. He has covered the logistics and supply chain fields since 1988. Twice named one of the Top 10 Business Journalists in the U.S., he has served in a multitude of editorial and publishing roles. The leading force behind the launch of Supply Chain Management Review, he was that brand's founding publisher and editorial director from 1997 to 2000. Additionally, he has served as news editor, chief editor, publisher and editorial director of Logistics Management, as well as publisher of Modern Materials Handling. Mitch is also the president and CEO of Agile Business Media, LLC, the parent company of DC VELOCITY and CSCMP's Supply Chain Quarterly.
Among the highways and byways that make up the tangled skein we know as the U.S. surface transportation network, there are some that are far more than just faceless strips of blacktop. One that comes to mind is the venerable Route 66, whose name resonates even with those of us who have never personally "gotten our kicks" on that historic connector from the Upper Midwest to Southern California's palm-lined shores.
Another is historic U.S. Route 1, which stretches from the Canadian border at Fort Kent, Maine, to the continent's southernmost point, Key West, Fla. Portions of that roadway date back to the earliest days of our country. In the Northeast Corridor, for instance, Route 1 closely follows the path of the original trails (and later roads) that linked colonial settlements like Boston, Providence, New London, New York City and Philadelphia (and later, Washington, D.C.). In parts of New England, you'll still hear the 2,390-mile river of asphalt referred to as the "Post Road," an old term for the route used to move mail between the original colonies' main settlements.
Though they may lack the scenic attractions and mystique of a Route 66 or a Route 1, even the anonymous miles of blacktop that constitute the U.S. Interstate Highway System are not without historical associations. Take the stretch of I-90 that traverses upstate New York. Though the average road-weary driver may not know (or care) about it, portions of that roadway run alongside the Erie Canal. One of the greatest engineering feats of its time, the Erie Canal represented a major artery for 19th century trade between the states. Eventually, of course, the Erie Canal and myriad other waterways so vital to economic growth a century ago were eclipsed by road and rail. Today, few still serve as primary routes for commercial traffic. But that could be changing. Signs have emerged in the last few months that point to a renaissance for the waterways. Frustrated by highway congestion and a shortage of trucks, shippers are giving the inland waterways another look. Just last month, for instance, Sappi Fine Paper shipped a load of pulp bound for Europe via the Great Lakes out of the Port of Duluth. It was the first time anyone can remember pulp moving out of Duluth by that mode.Not just in recent times, but ever!
Rail, with truck drayage at each end, had been the mode of choice for Sappi (and its predecessor company, Potlach) for decades when it came to moving pulp to East Coast seaports for subsequent movement to Europe. Sappi executives say shipping to the East Coast by water is now the most cost-effective and efficient option they have.
Other companies are coming to similar conclusions. Though it's hardly a wholesale shift, more and more businesses are putting their goods on container ships sailing from port to port across the Gulf of Mexico to avoid the congestion on southern-tier highways.
Companies like Wal-Mart and Home Depot are already rerouting some international shipments from the roads to water. To avoid the maritime gridlock at the Pacific Coast ports, for example, the retail giants are routing vessels laden with goods from Asia to the Port of Houston via the Panama Canal. Both have established large-scale DCs adjacent to the Port of Houston, through which they distribute the goods to locations throughout the country.
It would hardly come as any great surprise to learn that at least some of those goods continued their journey on inland or coastal waterways. With traffic on the nation's roads, rails and intermodal connectors stalled in gridlock, these waterways may turn out to be the path of least resistance.
That percentage is even greater than the 13.21% of total retail sales that were returned. Measured in dollars, returns (including both legitimate and fraudulent) last year reached $685 billion out of the $5.19 trillion in total retail sales.
“It’s clear why retailers want to limit bad actors that exhibit fraudulent and abusive returns behavior, but the reality is that they are finding stricter returns policies are not reducing the returns fraud they face,” Michael Osborne, CEO of Appriss Retail, said in a release.
Specifically, the report lists the leading types of returns fraud and abuse reported by retailers in 2024, including findings that:
60% of retailers surveyed reported incidents of “wardrobing,” or the act of consumers buying an item, using the merchandise, and then returning it.
55% cited cases of returning an item obtained through fraudulent or stolen tender, such as stolen credit cards, counterfeit bills, gift cards obtained through fraudulent means or fraudulent checks.
48% of retailers faced occurrences of returning stolen merchandise.
Together, those statistics show that the problem remains prevalent despite growing efforts by retailers to curb retail returns fraud through stricter returns policies, while still offering a sufficiently open returns policy to keep customers loyal, they said.
“Returns are a significant cost for retailers, and the rise of online shopping could increase this trend,” Kevin Mahoney, managing director, retail, Deloitte Consulting LLP, said. “As retailers implement policies to address this issue, they should avoid negatively affecting customer loyalty and retention. Effective policies should reduce losses for the retailer while minimally impacting the customer experience. This approach can be crucial for long-term success.”
The next time you buy a loaf of bread or a pack of paper towels, take a moment to consider the future that awaits the plastic it’s wrapped in. That future isn’t pretty: Given that most conventional plastics take up to 400 years to decompose, in all likelihood, that plastic will spend the next several centuries rotting in a landfill somewhere.
But a Santiago, Chile-based company called Bioelements Group says it has developed a more planet-friendly alternative. The firm, which specializes in biobased, biodegradable, and compostable packaging, says its Bio E-8i film can be broken down by fungi and other microorganisms in just three to 20 months. It adds that the film, which it describes as “durable and attractive,” complies with the regulations of each country in which Bioelements currently operates.
Now it’s looking to enter the U.S. market. The company recently announced that it had entered into partnerships with South Carolina’s Clemson University and with Michigan State University to continue testing its products for use in sustainable packaging in this country. Researchers will study samples of Bio E-8i film to understand how the material behaves during the biodegradation process under simulated industrial composting conditions.
“This research, along with other research being conducted in the United States, allows us to obtain highly reliable data from prestigious universities,” said Ignacio Parada, CEO and founder of Bioelements, in a statement. “Such work is important because it allows us to improve and apply academically driven scientific research to the application of packaging for greater sustainability packaging applications. That is very worthwhile and helps to validate our sustainable packaging technology.”
Transportation leaders, policymakers, administrators, and researchers from government, industry, and academia will gather January 5-9, 2025, in Washington, D.C., for the 104th annual meeting of the Transportation Research Board (TRB), sponsored by the National Academies of Sciences, Engineering, and Medicine.
The meeting’s program covers all modes of transportation and features hundreds of sessions and workshops on various transportation-related topics. The theme for this year’s conference is how innovations in technology, business, and processes help support transportation’s role in a thriving society, according to TRB.
Speakers at this year’s event include TRB executives as well as federal, state, and international government leaders and policymakers. Discussions on zero-emissions freight, supply chain shifts, automated vehicles and roadway digital infrastructure, National Transportation Safety Board investigations, and other topics will take place throughout the week, according to TRB. Held every January in Washington, D.C., the TRB Annual Meeting attracts more than 13,000 attendees from throughout the United States and around the world.
When the trucking giant known as Saia LTL Freight was founded back in 1924, the “company” consisted of just one employee, Louis Saia Sr. of Houma, Louisiana. And it didn’t own a single truck: Saia removed the rear seats from his family car in order to haul his customers’ goods to New Orleans, where he traveled to pick up produce.
One hundred years later, the firm has been bought and sold, acquired some competitors, and moved to Johns Creek, Georgia. And it has added a few more workers. Saia today employs more than 15,000 people who operate 213 terminals across the country and a fleet of over 6,500 tractors and 22,000 trailers.
Saia is now celebrating its 100th anniversary, and the company says it’s not done growing. At a November centennial celebration event, Saia announced that it would invest $1 billion in its operations this year to support further expansion, technological advancements, and its ongoing commitments to sustainability and community involvement. “Our centennial is not just about looking back at our achievements but also looking forward to the innovations and opportunities that lie ahead,” President and CEO Fritz Holzgrefe said in a release.
To commemorate its anniversary, Saia also launched two mobile museums that will stop at select venues for private events and visits. Guests can step into a real Saia truck and explore the company’s 100-year history through interactive artifacts. Visitors can also get behind the wheel of an action-packed simulator to learn what it’s like to be a Saia driver.
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2024 International Foodservice Distributor Association’s (IFDA) National Championship
It’s probably safe to say that no one chooses a career in logistics for the glory. But even those accustomed to toiling in obscurity appreciate a little recognition now and then—particularly when it comes from the people they love best: their kids.
That familial love was on full display at the 2024 International Foodservice Distributor Association’s (IFDA) National Championship, which brings together foodservice distribution professionals to demonstrate their expertise in driving, warehouse operations, safety, and operational efficiency. For the eighth year, the event included a Kids Essay Contest, where children of participants were encouraged to share why they are proud of their parents or guardians and the work they do.
Prizes were handed out in three categories: 3rd–5th grade, 6th–8th grade, and 9th–12th grade. This year’s winners included Elijah Oliver (4th grade, whose parent Justin Oliver drives for Cheney Brothers) and Andrew Aylas (8th grade, whose parent Steve Aylas drives for Performance Food Group).
Top honors in the high-school category went to McKenzie Harden (12th grade, whose parent Marvin Harden drives for Performance Food Group), who wrote: “My dad has not only taught me life skills of not only, ‘what the boys can do,’ but life skills of morals, compassion, respect, and, last but not least, ‘wearing your heart on your sleeve.’”