To stay square with the EPA, makers of big diesel engines have found new ways to curb the clouds of noxious diesel exhaust. But the low-emissions engines carry a high price.
It may be small comfort as you sit stalled behind an 18-wheeler in traffic, sucking soot down into your lungs from the clouds of diesel exhaust. But our air's actually getting cleaner all the time. Makers of big diesel engines have tinkered furiously with their products in the past few years to bring them into compliance with the first phase of the EPA's tough anti-pollution rules. And they've made real strides in getting the lead—or more precisely, the nitrogen oxide and particulates—out; nitrogen oxide alone is expected to be down a third from 1998 levels by the end of this year. Now they're gearing up to meet the next phase of the agency's aggressive timetable. With luck, Americans everywhere will be inhaling far fewer particulates and a lot less nitrogen oxide (NOx) by 2010.
But there's a price to pay for cleaning up this act. The new low-emissions engines introduced in October 2002 cost more than their predecessors—anywhere from $2,500 to $4,000 more per unit, according to Fleet Owner magazine. They also burn fuel more freely. And those are just the quantifiable concerns. What's really giving fleet operators the chills are the unknowns: Will the new engines need more frequent maintenance? Will they stand up to the day-in/day-out demands of real-world hauling conditions? Will they last as long as the older, non-compliant models?
The engine manufacturers themselves are unhappy about the uncertainties, but they point out that they've had to meet what they consider a tough set of standards in a very short time. The first phase of the EPA's rules, which called for lowering both NOx and particulates (soot), were originally set to take effect in 2004. But as part of a $1 billion 1998 settlement arising from an EPA "enforcement action" against engine makers for alleged testing irregularities, "several engine manufacturers had to sign a consent decree with the EPA to move the standards ahead to 2002," explains Bill Gouse, vice president of engineering at the American Trucking Associations (ATA), based in Alexandria, Va.
Moving up the deadline meant scaling down the testing. And that's what worries truckers."While we supported the 2004 standard," says Gouse,"we weren't able to test the product as we would have liked in time for the 2002 pull ahead, so there were a lot of concerns about the new engines." Adds Tom Freiwald, senior vice president of marketing for Detroit Diesel, "We worked closely with the EPA and we wanted the new engine introduction process to go as smoothly as possible. But the truck manufacturers and their customers would have preferred to test the technology before it was int roduced. They usually get two years to do this, and that didn't happen this time."
Not ready for prime time?
Given the time constraints for compliance, most manufacturers opted to outfit their engines with cooled exhaust gas recirculation (EGR) hardware to cut NOx emissions. Under this system, much of the exhaust stream is recirculated, cooled and then reintroduced into the combustion chamber, where it's burned off.
The fix was quick, as fixes go, but it's also somewhat experimental. Because this technology's largely unproven, many fleet owners fear that the engines' longevity may be compromised. "We'd like to stay on the same [engine] life cycle of about 800,000 miles," says Steve Duley, vice president of purchasing for Schneider National of Green Bay, Wis."Logic would tell you that with the new technology, the new engines won't last as long, but right now it's too early to tell."
Another concern has been the amount of maintenance the low-emissions engines will require,though the manufacturers downplay this one."The standard used to be oil changes at 15,000 to 25,000 miles, although changes with our engines were typically at 35,000 miles," says Tom Kieffer, executive director of marketing at Cummins, based in Columbus, Ind. "With the new engines, we recommend changing at 25,000 miles, which is still above standard."
But Gouse says that this one's too early to call."In some of the new engines,exhaust is cycled back into the oil,so the oil must do more work," he reports. "So we really don't know yet how this will play out."
Perhaps the truckers' biggest concern has been fuel economy. The EGR technology is said to cut fuel efficiency anywhere from 3 percent all the way to 15 percent, depending on who you talk to."This is the first time we've had a reduction in fuel economy from new engines," Gouse notes.
Freiwald of Detroit Diesel counters that the engine manufacturers are continually working to improve fuel economy, and the industry can expect improvements in this area in the future. "We have to be sensitive," he says. "The fuel economy issue hasn't been as bad as people had predicted, but it is a loss." In fact, Freiwald believes that as a whole,the en gines have perform ed mu ch bet ter than pred icted . "People who tried to get the standard delayed based their arguments on the worst-case scenario," he says. "The issues were unknown then," he says, "but most of them haven't come to fruition."
Rush delivery
Those assurances apparently weren't enough for fleet operators, however. Many hastily revised their spending plans last year and pre-bought trucks equipped with engines made prior to the October 2002 deadline. Ann Arbor, Mich. -based Con-Way Transportation Services, for instance, pre-bought all of its truck needs for 2003. Con- Way,which operates three regional less-than-truckload carriers that provide service across the United States, bought 400 new trucks before the October 2002 deadline kicked in, forestalling the need to purchase any trucks in 2003. "And we're not planning on buying any in 2004 either," says Doug Stotlar, COO and executive vice president for the company. "Our concern was that when technology changes this quickly, it's not given an adequate test period."
Schneider National, based in Green Bay, Wis., also prebought tractors. "There weren't any engines available for testing to help us make a decision about the technology," says Duley. "We did our best to help delay the standard, but that didn't work."
Schneider bought about a third more trucks than it normally would have for 2003 in advance of the new standard. Since that time, the company has also purchased 50 trucks with the new engines to begin testing their performance and will start adding some of the trucks to its fleet in the coming months.
This spike in demand disrupted operations not only for the engine manufacturers, but for the truck manufacturers as well. Many had to go from one or two shifts to three on short notice in order to meet the sudden demand for vehicles equipped with the pre-standard engines.
Yet most of the engine manufacturers insist they were able to weather the pre-buy storm as well as the ensuing sales drought. "There was about a two- to three-month drop-off," admits Kieffer of Cummins, "but it wasn't as significant as had been predicted. We're at or exceeding our plan for market size at this point in the year."
Too much, too soon?
Fleets won't be able to put off equipment purchases indefinitely, however; at some point, they'll have to make the switch. And when they do, they'll have to choose between two competing technologies. Two of the Big Three engine manufacturers—Cummins and Detroit Diesel—met the 2002 EPA standard by adding EGR technology to their new engines; the third, Caterpillar, took a different route, developing advanced combustion emission reduction technology (ACERT) . But because it has only recently been able to put its ACERT technology to work in its engines, Caterpillar has had to pay fines for its out-of-compliance engines in the interim.
Yet Caterpillar dismisses the fines, which averaged $3,000 per engine, as a small price to pay for the added development time."We knew we couldn't have the ACERT technology available in time for the 2002 deadline," says spokesman Carl Volz. "But the ACERT technology is revolutionary and will certify our engines in time for the next deadline."
That will come in 2007, when the final stages of the EPA's anti-pollution mandate start to kick in. The 2007 standards, which focus on further reducing NOx and particulates, have the fleet owners seriously worried. According to Stotlar, none of the engine manufacturers has yet been able to demonstrate a clearly delineated strategy for meeting the stand a rds even though they must be ready for testing the new technology by 2004.
At this point, the industry's best hope for meeting the NOx limits appears to be installing an aftertreatment device known as an adsorber. But that won't be cheap. Stotlar of Con-Way estimates the cost of installing NOx adsorbers on engines at anywhere from $4,000 to $15,000 apiece, and he predicts another large equipment pre-buy prior to 2007. "Those buying and using the engines will have to pass that cost along to the consumer," he says."We support clean air," adds Duley of Schneider."But these standards are too much to absorb, too quickly."
Makers of robotic truck-unloading solutions are refining their offerings now that the technology is being used in many warehouses—and that means solutions are getting “smarter” and more adept at handling challenges that arise in real time. Increased handling capabilities, better dexterity, and even more autonomy are at the heart of the updates.
“There are certain behaviors you don’t see in the lab but you do see in the real world,” explains Pete Blair, vice president of product and marketing for Cambridge, Massachusetts-based Pickle Robot, which completed its first commercial installation in the summer of 2023 and now has roughly 12 truck-unloading robots up and running around the country. “We’ve been improving the system over that time period. Right now, [we’re] moving forward with the next generation of the robot.”
As of this past fall, all customers had been upgraded to the new robot, which features better wheels on its custom-built base, a sturdier onboard conveyor, additional sensors, and an improved gripper, according to Blair. The updates are making the robot more efficient and are in line with enhancements other robotic developers are making as well—all in the name of automating one of the toughest jobs in the warehouse.
“This technology is something [warehouses have] wanted for so long,” Blair says, emphasizing the difficulty of manually unloading box after box from a trailer, often in extreme temperatures. “The value at the end of the day is just so big and easy to recognize. [Truck unloading] remains one of the worst jobs in the warehouse … these jobs are getting harder and harder to fill.”
SMOOTHING OUT THE PROCESS
Pickle’s truck-unloading robot consists of a robotic picking arm on a wheeled base, with sensors, cameras, and an advanced software system that enable it to move boxes of different shapes and sizes out of trailers and into the warehouse. The robot, whose gripper can handle cartons measuring up to 36 inches long, 24 inches high, and 24 inches wide, can retrieve boxes weighing up to 60 pounds from high up in the trailer and handle floor-loaded boxes of up to 100 pounds. The robot then places the items on a flexible conveyor that moves them into the warehouse for the next step in the receiving process.
Some of the next-generation updates are part of ongoing refinements to the system—such as the ability to move smaller items, perform multipick moves, and recover boxes that fall on the floor during unloading. Today, Pickle’s robot can grip items as small as six-inch cubes for multipick moves, for example. And it can autonomously respond to changing conditions in the trailer, just as a human would.
“If you pick something and something shifts and falls on the floor, the robot picks it up, just takes care of it,” Blair explains. “We had been field testing that function; now we can do it.
“We’re making the robot smarter, making it do things differently—with more sophisticated path-planning algorithms. Now it can make more sophisticated moves that are more efficient, faster—grabbing two things rather than one, for example.”
Other changes are a direct result of the robots actively working in the field. For example, the robot’s gripper is designed to break away if it’s under too much stress, but users found that the process of reattaching the gripper was difficult and time-consuming—and ultimately slowed the unloading process.
“This has been completely redesigned and is now a one-minute fix,” Blair says.
BUILDING A SYSTEM
Global robotics supplier Mujin is also continuing to refine its truck-unloading solution—TruckBot. Although the developer does not disclose the number of TruckBots in use around the world, company leaders say user feedback from pilot tests and recent rollouts is playing a large role in refining the system. Mujin is working to improve the robot’s capacity—so that it can handle an increasing array of sizes, shapes, and weights—and also ensure that the TruckBot, which is part of a larger effort to automate the entire inbound logistics workflow, can operate effectively alongside other types of warehouse robots, according to Josh Cloer, vice president of sales and marketing.
“Truck unloading is only part of the challenge; [you also have to consider] what happens next [in a warehouse’s inbound freight operation],” Cloer explains, pointing to downstream functions such as sorting the unloaded boxes and building pallets. “We focus on areas where we can solve all those problems.”
The company starts with its MujinController, a robotic platform that powers its products and allows them to work autonomously. TruckBot is different from other unloading solutions in that it doesn't use a robotic arm to grab and move boxes—instead, it uses advanced gripper technology attached to a standard telescoping conveyor. Powered by the controller, and using sensors and advanced software, TruckBot can reach as far as 52 feet into the truck trailer, grasping boxes weighing up to 50 pounds from the front and seamlessly transferring them to the conveyor, which transports the packages into the warehouse. Cloer says the design allows for faster unloading so that warehouses can turn those trailers around quickly: TruckBot can move up to 1,000 cases per hour.
Although customers can use TruckBot on its own, the robot is designed to work in concert with Mujin’s other robots—including its automated case-handling solution, called QuickBot, which can depalletize, palletize, and repalletize boxes in the warehouse. The combination allows for a smoother, more efficient inbound process.
“We provide the whole inbound automation solution,” Cloer explains. “We put these processes in parallel—unloading and palletizing really fast and sorting downstream.”
On the human side of the equation, labor can be reallocated from the loading dock to other parts of the warehouse. Cloer notes that many warehouses have multiple workers in a trailer performing the unloading tasks along with another set of workers handling the removal of boxes and building pallets. Automation solves that challenge.
“You can more greatly reduce the [number] of operators you need on the inbound side of the warehouse,” he says.
MAKING STRIDES
Vendors agree that interest in robotic truck unloading is growing as more systems are put in place. Quite simply, the ability to show systems in action, achieving real results, helps seal more deals, according to Blair.
“Being able to show other prospects … just [gives] the whole market confidence that this is ready for prime time,” he says, adding that Pickle just signed three more deals with customers this past summer. “Being able to automate this function—it remains a huge interest for a broad swath of customers.”
Hackers are beginning to extend their computer attacks to ever-larger organizations in their hunt for greater criminal profits, which could drive an anticipated increase in credit risk and push insurers to charge more for their policies, according to the “2025 Cyber Outlook” from Moody’s Ratings.
In Moody’s forecast, cyber risk will intensify in 2025 as attackers switch tactics in response to better corporate cyber defenses and as advances in artificial intelligence increase the volume and sophistication of their strikes. Meanwhile, the incoming Trump administration will likely scale back cyber defense regulations in the US, while a new UN treaty on cyber crime will strengthen the global fight against this threat, the report said.
“Ransomware perpetrators are now targeting larger organizations in search of higher ransom demands, leading to greater credit impact. This shift is likely to increase the cyber risk for entities rated by Moody's and could lead to increased loss ratios for cyber insurers, impacting premium rates in the U.S.," Leroy Terrelonge, Moody’s Ratings Vice President and author of the Outlook report, said in a statement.
The warning comes just weeks after global supply chain software vendor Blue Yonder was hit by a ransomware attack that snarled many of its customers’ retail, labor, and transportation platforms in the midst of the winter holiday shopping surge.
That successful attack shows that while larger businesses tend to have more advanced cybersecurity defenses, their risk is not necessarily diminished. According to Moody’s, their networks are generally more complex, making it easier to overlook vulnerabilities, and when they have grown in size over time, they are more likely to have older systems that are more difficult to secure.
Another factor fueling the problem is Generative AI, which will will enable attackers to craft personalized, compelling messages that mimic legitimate communications from trusted entities, thus turbocharging the phishing attacks which aim to entice a user into clicking a malicious link.
Complex supply chains further compound the problem, since cybercriminals often find the easiest attack path is through third-party software suppliers that are typically not as well protected as large companies. And by compromising one supplier, they can attack a wide swath of that supplier's customers.
In the face of that rising threat, a new Republican administration will likely soften U.S. cyber regulations, Moody’s said. The administration will likely roll back cybersecurity mandates and potentially curtail the activities of the US Cybersecurity and Infrastructure Security Agency (CISA), thus heightening the risk of cyberattack.
Even worse, many managers are overconfident in their data. The majority (91%) of supply chain managers believe they are equipped to drive accurate supply chain visibility, but the reality is that only a third (33%) consistently obtain accurate, real-time inventory data.
And in turn, that gap also hinders supply chain managers’ ability to address challenges such as counterfeit goods, shrink and theft, misload and delivery errors, meeting sustainability requirements, and effectively implementing AI within their organization’s supply chain. Those results came from Seattle-based Impinj’s “Supply Chain Integrity Outlook 2025” report, which was based on a survey of 1,000 US supply chain managers.
“Supply chain managers continue to face data blind spots that prevent them from ensuring secure, reliable, and adaptable supply chains,” Impinj Chief Revenue Officer Jeff Dossett said in a release. “It’s essential that organizations address the data accuracy gap by putting technology in place to surface accurate data that fuels the real-time, actionable insights and visibility needed to ensure supply chain resilience.”
In additional findings, the study showed that over half (52%) of supply chain managers face challenges responding to rapid peaks in customer demand driven by social media- and influencer-driven trends. Nearly half (47%) of supply chain managers also report that changes in customer demand due to growth in social media storefronts (49%) and the rise of the thrift movement (47%) are among the top challenges for their organization’s supply chain.
The survey also identified the most significant supply chain integrity challenges and priorities for several sectors:
in retail: 65% of supply chain managers agree it’s a challenge for their organization to reduce the amount of counterfeit goods entering the supply chain
also in retail: 60% of retail supply chain managers surveyed also agree that reducing rates of shrink and theft is a challenge for their organization, and 99% are investing in measures to mitigate these concerns
in the food, grocery, and restaurant sector, 82% of supply chain managers report challenges reducing shrink, which is primarily due to shoplifting (45%), food spoilage (37%), and food waste (35%)
in transportation and logistics, 74% of surveyed supply chain managers are concerned about growing volumes of Load Planning Problems (LPPs), misloads, and delivery errors
As the old adage goes, everything old is new again. For evidence of that, you need look no farther than cargo ships, which are looking to a 5,000-year-old technology as an eco-friendly source of propulsion—the sail.
But today’s sails bear little resemblance to the papyrus or animal-skin sails used in ancient times or the billowing cotton or linen sails of 19th-century clipper ships. These are thoroughly modern, high-tech devices designed to reduce ship operators’ reliance on costly marine fuels and help curb greenhouse gas emissions—and they’re sprouting up on freight vessels around the world.
One example is the “rotor sail,” a cylindrical unit that’s mounted inside a flagpole-shaped device. When installed on a cargo ship’s deck, the sail can reduce the vessel’s fuel consumption and carbon dioxide emissions by 6% to 12%, users say. Last month, the Japanese marine freight carrier NS United Kaiun Kaisha Ltd.announced plans to install five rotor sails manufactured by Anemoi Marine Technologies Ltd. on the 1,184-foot-long iron ore carrier ship NSU Tubarao over the next year.
But the story doesn’t end with rotor sails. Companies are experimenting with other types of high-tech sails as well. For instance, the Dutch heavy-lift cargo ship Jumbo Jubileehas been outfitted with two mechanical sails known as wind-assisted ship propulsion (WASP) units in a bid to boost fuel efficiency and cut carbon. And the Dutch maritime gas carrier Anthony Vederhas deployed two “VentoFoil” sails made by Econowind on its ethylene carrier Coral Patula, with plans to add two similar sails to its sister ship Coral Pearl later this year.
When it comes to logistics technology, the pace of innovation has never been faster. In recent years, the market has been inundated by waves of cool new tech tools, all promising to help users enhance their operations and cope with today’s myriad supply chain challenges.
But that ever-expanding array of offerings can make it difficult to separate the wheat from the chaff—technology that’s the real deal versus technology that’s just “vaporware,” meaning products that don’t live up to their hype and may even still be in the conceptual stage.
One way to cut through the confusion is to check out the entries for the “3 V’s of Supply Chain Innovation Awards,” an annual competition held by the Council of Supply Chain Management Professionals (CSCMP). This competition, which is hosted by DC Velocity’s sister publication, Supply Chain Xchange, and supply chain visionary and 3 V’s framework creator Art Mesher, recognizes companies that have parlayed the 3 V’s—“embracing variability, harnessing visibility, and competing with velocity”—into business success and advanced the practice of supply chain management. Awards are presented in two categories: the “Business Innovation Award,” which recognizes more established businesses, and the “Best Overall Innovative Startup/Early Stage Award,” which recognizes newer companies.
The judging for this year’s competition—the second annual contest—took place at CSCMP’s EDGE Supply Chain Conference & Exhibition in September, where the three finalists for each award presented their innovations via a fast-paced “elevator pitch.” (To watch a video of the presentations, visit the Supply Chain Xchange website.)
What follows is a brief look at the six companies that made the competition’s final round and the latest updates on their achievements:
Arkestro: This San Francisco-based firm offers a predictive procurement orchestration solution that uses machine learning (ML) and behavioral science to revolutionize sourcing, eliminating the need for outdated manual tools like pivot tables and for labor-intensive negotiations. Instead, procurement teams can process quotes and secure optimal supplier agreements at a speed and accuracy that would be impossible to achieve manually, the firm says.
The company recently joined the Amazon Web Services (AWS) Partner Network (APN), which it says will help it reach its goal of elevating procurement from a cost center to a strategic growth engine.
AutoScheduler.AI: This Austin, Texas-based company offers a predictive warehouse optimization platform that integrates with a user’s existing warehouse management system (WMS) and “accelerates” its ability to resolve problems like dock schedule conflicts, inefficient workforce allocation, poor on-time/in-full (OTIF) performance, and excessive intra-campus moves.
“We’re here to make the warehouse sexy,” the firm says on its website. “With our deep background in building machine learning solutions, everything delivered by the AutoScheduler team is designed to provide value by learning your challenges, environment, and best practices.” Privately funded up until this summer, the company recently secured venture capital funding that it will use to accelerate its growth and enhance its technologies.
Davinci Micro Fulfillment: Located in Bound Brook, New Jersey, Davinci operates a “microfulfillment as a service” platform that helps users expedite inventory turnover while reducing operating expenses by leveraging what it calls the “4 Ps of global distribution”—product, placement, price, and promotion. The firm operates a network of microfulfillment centers across the U.S., offering services that include front-end merchandising and network optimization.
Within the past year, the company raised seed funding to help enhance its technology capabilities.
Flying Ship: Headquartered in Leesburg, Virginia, Flying Ship has designed an unmanned, low-flying “ground-effect maritime craft” that moves freight over the ocean in coastal regions. Although the Flying Ship looks like a small aircraft or large drone, it is classified as a maritime vessel because it does not leave the air cushion over the waves, similar to a hovercraft.
The first-generation models are 30 feet long, electrically powered, and semi-autonomous. They can dock at existing marinas, beaches, and boat ramps to deliver goods, providing service that the company describes as faster than boats and cheaper than air. The firm says the next-generation models will be fully autonomous.
Flying Ship, which was honored with the Best Overall Startup Award in this year’s 3 V’s competition, is currently preparing to fly demo missions with the Air Force Research Laboratory (AFRL).
Perfect Planner: Based in Alpharetta, Georgia, Perfect Planner operates a cloud-based platform that’s designed to streamline the material planning and replenishment process. The technology collects, organizes, and analyzes data from a business’s material requirements planning (MRP) system to create daily “to-do lists” for material planners/buyers, with the “to-dos” ranked in order of criticality. The solution also uses advanced analytics to “understand” and address inventory shortages and surpluses.
Perfect Planner was honored with the Business Innovation Award in this year’s 3 V’s competition.
ProvisionAi: Located in Franklin, Tennessee, ProvisionAi has developed load optimization software that helps consumer packaged goods (CPG) companies move their freight with fewer trucks, thereby cutting their transportation costs. The firm says its flagship offering is an automatic order optimization (AutoO2) system that bolts onto a company’s existing enterprise resource planning (ERP) or WMS platform and guides larger orders through execution, ensuring that what is planned is actually loaded on the truck. The firm’s CEO and founder, Tom Moore, was recognized as a 2024 Rainmaker by this magazine.