Safety-conscious motorists tend to fixate on the trucks with the scary hazmat danger warnings. But hazardous goods haphazardly stowed in unmarked trucks could pose a far bigger threat.
John Johnson joined the DC Velocity team in March 2004. A veteran business journalist, John has over a dozen years of experience covering the supply chain field, including time as chief editor of Warehousing Management. In addition, he has covered the venture capital community and previously was a sports reporter covering professional and collegiate sports in the Boston area. John served as senior editor and chief editor of DC Velocity until April 2008.
Drivers, beware. That tractor-trailer blowing by you on the highway may have none of the usual warning signs—those ominous hazardous materials placards, for example—but it might nonetheless be carrying hazardous materials. Worse yet, those materials may have been improperly packaged or even loaded in such a way as to create a dangerous and volatile mix. Amidst a worsening shortage of experienced hazmat professionals, the task of shipping hazardous goods sometimes falls to workers who aren't trained for the task. And their ignorance could have deadly consequences.
In fact, the federal government has become so concerned about the problem of improperly packaged hazardous goods that the U.S. Department of Transportation (DOT) is partnering with private industry to address the problem. Last year, the DOT signed two separate training- and recruitmentrelated agreements with the Council on Safe Transportation of Hazardous Articles (COSTHA), an industry association devoted to promoting regulatory compliance and safety in the transportation of hazardous materials.
Return to sender—but not like that!
Ironically, the shipments that have the DOT so concerned are not the large-volume loads of regulated materials shipped by chemical or paint manufacturers and distributors to retail locations. Rather, they're the occasional small quantities of hazardous materials being returned to manufacturers by retail stores and similar outlets—in other words, those moving through the reverse supply chain.
In most cases, the problem can be traced to simple ignorance, or at least a lack of training. At a big chemical company, shipping hazardous materials is left strictly to the experts—usually an in-house staff of hazmat regulatory compliance specialists. At a neighborhood hardware store (or even at many big box retailers), however, the person packaging up a hazardous product for return may not be a trained hazmat employee. That clerk may not even realize that the product in question is a hazardous material—many people are unaware that common household items such as perfumes and fragrances, aerosols, paints and coatings, and gasoline-fueled appliances qualify as hazardous materials and may pose hazards in transportation.
"It's an issue that people don't really like to discuss," says Robert Heinrich, transportation safety adviser for Novartis Pharmaceuticals and vice president of COSTHA. "The magnitude of this issue is fairly large," he adds. "It happens more often than people might think."
Heinrich says a common scenario goes something like this: After trying out a newly purchased gas-powered hedger or leaf blower, the consumer decides it's malfunctioning and returns it to the store—with gas still in the tank. The store employee tosses it in a box and ships the tool back to the vendor, not realizing that the tank contains highly flammable gasoline.
"You'd be surprised at how some items are returned," Heinrich adds. "We've seen things like lighter fluid shipped in banana boxes."
To address that issue, the DOT and COSTHA are launching an initiative to investigate the scope of the problem and to educate companies about the potential risks involved in returning goods. "The industry has established an excellent record for regulatory compliance and safety in the distribution of hazardous materials, including consumer commodities, from the manufacturer and distributors to the consumer," says COSTHA administrator John Currie. "We now need to candidly examine the reverse logistics process where the person packing the returns may not be a trained hazmat employee, the packaging may not be the same as when it was originally shipped, and the person preparing the returns may not even be aware of the hazards associated with transportation. Through this partnership [we] can openly discuss the issue and provide solutions to enhance transportation safety."
The hardest job you'll ever love …
As daunting as it may seem, solving the returns problem looks downright easy compared to the other challenge facing the industry: a worsening shortage of career hazmat professionals. The industry has seen an exodus of experienced senior-level hazmat professionals in recent years. According to COSTHA, many of these senior people are being eased out the door with accelerated retirement packages offered by corporations eager to trim their payrolls. Sometimes, their responsibilities are handed over to entrylevel employees. Other times, they're given to managers who oversee a loosely related environmental, health, or safety function—many of whom lack the time or the resources to devote to their added responsibilities.
The problem is not unique to the United States; the scarcity is being felt worldwide. At a recent meeting of the UN Subcommittee of Experts on the Transport of Dangerous Goods, officials from the Netherlands submitted their concerns regarding a decline in the number of experts on dangerous goods transportation regulations, not only on the side of government but also within industry.
"It's a global problem," says Heinrich. "There is a real gap in career development for hazmat management professionals. A lot of folks don't want to get into our industry."
What really has COSTHA and the DOT worried is the problem Heinrich alludes to—the difficulty attracting smart young talent. There are a number of reasons for that. Part of the problem is the increasing complexity of transportation regulations and the potential for criminal and civil liability incurred as a result of errors or omissions. Perhaps a bigger obstacle is the general lack of management recognition. Top management tends to focus on revenue-generating functions like sales and marketing, often at the expense of "cost avoidance" areas like regulatory compliance, which means promotion opportunities may be limited. That lack of a career path has hobbled efforts to attract qualified management candidates to the hazardous materials profession.
To burnish the profession's image, COSTHA and the DOT signed a partnership agreement late last year to work together on a public awareness campaign. Their mission will be to enhance recognition within companies, the industry, and the general public for those involved in hazardous materials management. Among other initiatives, the groups say they will look at organizing award programs within both the private sector and government.
But initially, COSTHA and the DOT will focus on getting the word out about the field to as wide an audience as possible. "We're looking to find qualified professionals almost anywhere," says Heinrich. "We really need to enhance the career of the hazmat professional. It's important to public safety, especially following 9/11."
Currie says he's encouraged by the DOT's receptiveness to COSTHA's proposals, noting that the agency's willingness to cooperate with private industry has come as a pleasant surprise. The DOT is becoming much friendlier to work with, he says. "The fact that we've been able to negotiate these two agreements with the DOT is a sign that they want to work with industry."
States across the Southeast woke up today to find that the immediate weather impacts from Hurricane Helene are done, but the impacts to people, businesses, and the supply chain continue to be a major headache, according to Everstream Analytics.
The primary problem is the collection of massive power outages caused by the storm’s punishing winds and rainfall, now affecting some 2 million customers across the Southeast region of the U.S.
One organization working to rush help to affected regions since the storm hit Florida’s western coast on Thursday night is the American Logistics Aid Network (ALAN). As it does after most serious storms, the group continues to marshal donated resources from supply chain service providers in order to store, stage, and deliver help where it’s needed.
Support for recovery efforts is coming from a massive injection of federal aid, since the White House declared states of emergency last week for Alabama, Florida, Georgia, North Carolina, and South Carolina. Affected states are also supporting the rush of materials to needed zones by suspending transportation requirement such as certain licensing agreements, fuel taxes, weight restrictions, and hours of service caps, ALAN said.
E-commerce activity remains robust, but a growing number of consumers are reintegrating physical stores into their shopping journeys in 2024, emphasizing the need for retailers to focus on omnichannel business strategies. That’s according to an e-commerce study from Ryder System, Inc., released this week.
Ryder surveyed more than 1,300 consumers for its 2024 E-Commerce Consumer Study and found that 61% of consumers shop in-store “because they enjoy the experience,” a 21% increase compared to results from Ryder’s 2023 survey on the same subject. The current survey also found that 35% shop in-store because they don’t want to wait for online orders in the mail (up 4% from last year), and 15% say they shop in-store to avoid package theft (up 8% from last year).
“Retail and e-commerce continue to evolve,” Jeff Wolpov, Ryder’s senior vice president of e-commerce, said in a statement announcing the survey’s findings. “The emergence of e-commerce and growth of omnichannel fulfillment, particularly over the past four years, has altered consumer expectations and behavior dramatically and will continue to do so as time and technology allow.
“This latest study demonstrates that, while consumers maintain a robust
appetite for e-commerce, they are simultaneously embracing in-person shopping, presenting an impetus for merchants to refine their omnichannel strategies.”
Other findings include:
• Apparel and cosmetics shoppers show growing attraction to buying in-store. When purchasing apparel and cosmetics, shoppers are more inclined to make purchases in a physical location than they were last year, according to Ryder. Forty-one percent of shoppers who buy cosmetics said they prefer to do so either in a brand’s physical retail location or a department/convenience store (+9%). As for apparel shoppers, 54% said they prefer to buy clothing in those same brick-and-mortar locations (+9%).
• More customers prefer returning online purchases in physical stores. Fifty-five percent of shoppers (+15%) now say they would rather return online purchases in-store–the first time since early 2020 the preference to Buy Online Return In-Store (BORIS) has outweighed returning via mail, according to the survey. Forty percent of shoppers said they often make additional purchases when picking up or returning online purchases in-store (+2%).
• Consumers are extremely reliant on mobile devices when shopping in-store. This year’s survey reveals that 77% of consumers search for items on their mobile devices while in a store, Ryder said. Sixty-nine percent said they compare prices with items in nearby stores, 58% check availability at other stores, 31% want to learn more about a product, and 17% want to see other items frequently purchased with a product they’re considering.
Ryder said the findings also underscore the importance of investing in technology solutions that allow companies to provide customers with flexible purchasing options.
“Omnichannel strength is not a fad; it is a strategic necessity for e-commerce and retail businesses to stay competitive and achieve sustainable success in 2024 and beyond,” Wolpov also said. “The findings from this year’s study underscore what we know our customers are experiencing, which is the positive impact of integrating supply chain technology solutions across their sales channels, enabling them to provide their customers with flexible, convenient options to personalize their experience and heighten customer satisfaction.”
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.
Two European companies are among the most recent firms to put autonomous last-mile delivery to the test with a project in Bern, Switzerland, that debuted this month.
Swiss transportation and logistics company Planzer has teamed up with fellow Swiss firm Loxo, which develops autonomous driving software solutions, for a two-year pilot project in which a Loxo-equipped, Planzer parcel delivery van will handle last-mile logistics in Bern’s city center.
The project coincides with Swiss regulations on autonomous driving that are expected to take effect next spring.
Referred to as “Planzer–Dynamic Micro-Hub w LOXO,” the project aims to address both sustainability issues and traffic congestion in urban areas.
The delivery vehicle, a Volkswagen ID. Buzz battery-electric minivan, will feature Loxo’s Level 4 Digital Driver navigation software, a highly automated solution that allows driverless operation. The van was retrofitted to include space for two swap boxes for parcel storage.
During the two-year pilot phase, Loxo’s Digital Driver will navigate a commercial vehicle several times a day from Planzer’s railway center to various logistics points in Bern's city center. There, the parcels will be reloaded onto small electric vehicles and delivered to end customers by Planzer’s parcel delivery staff.
Following the completion of the pilot phase, Planzer and Loxo will build on the program for rollout in other Swiss cities, the companies said.
The partners said the project addresses the increasing requirements of urban supply chains and aims to ensure the “scalability of their disruptive solution.” With largely emission-free delivery, it contributes to greater levels of sustainability for the city as a living space, they also said.
“The uniqueness of this project lies in the fact that it will have a direct impact on society,” Planzer’s CEO and Chairman Nils Planzer said in a statement announcing the project. “We didn't just want to integrate automated technology into existing systems, we wanted to develop a completely new concept and a new business model.”
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.