don't break glass or even break a sweat it won't help. Do train your drivers to collect facts and take photos at the scene and resist the temptation to engage in incriminating babble with the highway patrol.
It's the phone call you've been dreading. On the other end is a truck driver from your fleet calling in to report that he's been in an accident. The image that pops into your mind as you listen to him try to sort out the facts is one of sharks circling. And with good cause: If it's anything other than a fender-bender, chances are that investigators will be called in. And if you've bungled your accident response, you're toast.
You can't blame the investigators, of course: they're only following the money. "Liability levels on commercial trucks are significantly higher than they are on cars," says Truman Wayne Nicolaus, owner of Nicolaus Investigations of Wilton, Calif., who was a driver for 28 years before becoming an investigator. "A lot of attorneys are now specializing in trucking-only cases because there is a lot of money to be made. Many of these attorneys are really sharp. They know the motor carrier safety regulations, and they will tear you apart."
Your best defense, of course, is to stay up to date on those regs yourself and keep your operations in full compliance. But just as important, you should make sure your drivers know exactly what to do in the event of an accident. Specifically, they need to know what facts to gather at the scene. This evidence—and your analysis of the material—could help protect your company and the driver from legal liability. It could even help prevent future accidents.
What to do at the scene
In the aftermath of an accident, even the coolest of drivers tends to get pretty rattled. For most, having written step-by-step procedures to follow at the scene is helpful. "You should provide written instructions in a packet in the cab with details of what drivers should and should not do, and should and should not say," says Nicolaus. It's for their own good, as well as yours: Drivers can and probably will be named in any suit that arises, he explains. "The 'pockets' are the company's, but the driver will still have to defend his position."
What should be in that instruction packet? Nicolaus offers the following guidelines:
Contain the damage. The first thing the driver should do is pull over to the side and stop.He should check the victim(s), if any. "Don't move anyone," Nicolaus advises, "but give first aid if you can, such as stopping any bleeding." Then take any necessary steps to mitigate the situation. For example, make sure there is no debris on the highway that could cause another accident. "If a fender or mudflap is in the road, the driver should remove it," he says. The driver should also put up cones or triangles to warn oncoming motorists of the accident site.
Get pictures. Each truck should be outfitted with a disposable camera—-or even a video camera—in the cab. The driver should take snapshots of the scene from different angles and different distances. "A picture is worth a thousand words,"explains Bill Praetz , president of TLC Transportation Management Safety Consultants of Fresno, Calif., who spent 27 years with the California Highway Patrol.
But random snapping won't do. "The driver needs to take good pictures. A lot of times, when we come into a case later on, we find that the pictures are almost wort hless,"says Praetz. "The driver must be systematic in taking the photos."He should go back aways from the scene and start walking toward the scene, taking pictures at various points along the way, then repeat this process from various angles and directions. "When the driver is up close," he adds, "he should get photos of the license plates so that the vehicles can be identified."
Color photos are always better. "Black and white photos don't do justice to the condition of vehicles and the damage they have sustained," explains Praetz. And the camera should have a flash in case you need to take photos at night, adds Bob Eichler, president of Technical Services of Vancouver, Wash., which investigates trucking accidents. "The driver should take photos of tire marks, debris fall locations, etc. Tire marks are particularly important."
Do your own fact-finding. Drivers should collect as much information as they can before law enforcement arrives and even while law enforcement is present. "The police may or may not gather a lot of information, because their first responsibility is public safety, not recording data," explains Eichler. "If the accident seems minor and there is not a lot of blood, the police may not bother to conduct a thorough investigation. They may just take care of the injured and secure the site so no one else gets injured."
That could be a relief at the time, but trouble down the road. Even though the accident may not seem major, your company could still end up being involved in a big case. For example, there may be claims for a lot of property and vehicle damage, and/or delayed medical claims.
Zip your lips. "One of the biggest mistakes drivers can make is following the police around and making excuses, offering apologies or offering money for repairs," notes Praetz. "They should allow the police to investigate."
Nicolaus agrees. "Give only the information the police ask for, such as drivers license number, medical certificate, and a short statement, such as, 'I was driving eastbound in the second lane, and the other vehicle cut me off.' "Don't provide a lot of detail. The less information drivers give, the better off they and your company will be. The more drivers say, the more will go down on the report ."I've seen reports that showed that the first thing the driver said to the highw ay patrolman was, 'Gee, I'm sure sorry. I just looked down for a second,' or, 'I was thinking about my wife and kids.' The lawyers will interpret that as admitting fault."
The driver should also leave his log book alone, updated only to the last time he stopped before the accident. "If the driver offers his log book to the police, they will assume he has been playing with the book right there," explains Nicolaus.
One other thing, following an accident, the driver will likely need a drug test—which can pose difficulties in out-of- the-way locations. "If the accident is way out in the desert and too far from a testing facility, you need to have a written explanation of that," adds Nicolaus.
Meanwhile, back at the office
What the driver does at the scene of the accident counts, of course, but so does the company's response in the following days. When a major accident occurs, many companies automatically fire the driver. They think they can protect themselves if they can say, "The first thing we did was fire the driver." Nicolaus believes this is a big mistake, for two reasons:
"First, you appear to be admitting that the driver is guilty," he explains. "It's difficult to represent a company when the company has taken action showing that they think the driver is guilty—by firing him. If you thought he was innocent and that his story was believable, you wouldn't fire him."
Second, it alienates the driver. You make an enemy out of the one witness who's on your side. When the deposition rolls around,the driver will ask himself,"Why should I help them? They fired me." At the very least,his testimony is likely to include statements like, "They make me run hard. They don't care about my log, as long as I get my job done." A better move, says Nicolaus,"is to remove him from driving duties, but provide him with some other type of employment in the facility."
Next, if you hire an outside investigator, be sure to cooperate by providing all of the information you have available. "When we are called in and talk with a company, we want to know how well the rig was maintained," says Eichler. "We want service records to make sure the brakes, steering, suspension and tires are good." As for the accident itself, "we want the highway accident documentation," Eichler says. That includes reports, witness names and numbers, and photos.
Remember, too, that time is of the essence. Conoco Phillips, based in Tempe, Ariz., makes every effort to interview the driver as soon as is reasonable after an incident has occurred. "The sooner you have the conversation, the more detailed and accurate the information will be," explains Dan Brown, the company's director of light oil trucking.
Smart & Final, a Los Angeles-based foodservice distribution business that operates warehouse grocery stores, takes it a step further—acting quickly to put together a team to conduct an internal investigation. "Not only does our safety manager review each accident," reports Dan Smith, corporate director of transportation,"but we also have a safety committee composed of the transportation manager, a fleet supervisor and three drivers who are chosen by their peers." This committee reviews accidents and determines accountability—whether the driver should be held responsible or whether it was out of his control. "If we decide the driver is accountable," he continues, "we have an internal point system for assessing penalties. We may also provide him or her with additional training."
Driving home the lessons
Hustling those drivers into training courses is one way to reduce future accidents. Another is to meet with drivers and discuss measures that will reduce the likelihood that various types of accidents will happen again.
The most common cause of accidents is carelessness—hurried drivers who don't pay attention to everything around them, according to Praetz. "A perfect example is making a right turn and not observing vehicles or other things to the side," he reports. "This is one of the most common causes of accidents in trucking. It happens way too frequently. I recently investigated an accident where the driver made a right turn and took out a fire hydrant."
A surprising number of accidents take place in parking lots, which seem to be more and more congested these days, reports Praetz. "Many drivers don't take the time to look around as they're driving and before they make turns or back up."
Praetz is even seeing fatalities at truck stops. Drivers sometimes pull out and crush other drivers who are right beside them inspecting their own trucks.
"The solution is awareness training," he emphasizes. "Management should impress on drivers how accidents are occurring and how important it is to pay attention."
Smith agrees. "Good accident investigation can provide information that can be used in training to prevent future incidents," he says . "We also have safety meetings throughout the year with drivers, at which time we review previous accidents and what can be done to prevent them in the future."
"All accidents are different, obviously," adds Brown. "We try to use the information that is gathered from all accidents to provide a platform for training and sharing of information, so that not only ConocoPhillips —but the industry as a whole—can learn from the knowledge that is gathered through the investigation process."
Most of the apparel sold in North America is manufactured in Asia, meaning the finished goods travel long distances to reach end markets, with all the associated greenhouse gas emissions. On top of that, apparel manufacturing itself requires a significant amount of energy, water, and raw materials like cotton. Overall, the production of apparel is responsible for about 2% of the world’s total greenhouse gas emissions, according to a report titled
Taking Stock of Progress Against the Roadmap to Net Zeroby the Apparel Impact Institute. Founded in 2017, the Apparel Impact Institute is an organization dedicated to identifying, funding, and then scaling solutions aimed at reducing the carbon emissions and other environmental impacts of the apparel and textile industries.
The author of this annual study is researcher and consultant Michael Sadowski. He wrote the first report in 2021 as well as the latest edition, which was released earlier this year. Sadowski, who is also executive director of the environmental nonprofit
The Circulate Initiative, recently joined DC Velocity Group Editorial Director David Maloney on an episode of the “Logistics Matters” podcast to discuss the key findings of the research, what companies are doing to reduce emissions, and the progress they’ve made since the first report was issued.
A: While companies in the apparel industry can set their own sustainability targets, we realized there was a need to give them a blueprint for actually reducing emissions. And so, we produced the first report back in 2021, where we laid out the emissions from the sector, based on the best estimates [we could make using] data from various sources. It gives companies and the sector a blueprint for what we collectively need to do to drive toward the ambitious reduction [target] of staying within a 1.5 degrees Celsius pathway. That was the first report, and then we committed to refresh the analysis on an annual basis. The second report was published last year, and the third report came out in May of this year.
Q: What were some of the key findings of your research?
A: We found that about half of the emissions in the sector come from Tier Two, which is essentially textile production. That includes the knitting, weaving, dyeing, and finishing of fabric, which together account for over half of the total emissions. That was a really important finding, and it allows us to focus our attention on the interventions that can drive those emissions down.
Raw material production accounts for another quarter of emissions. That includes cotton farming, extracting gas and oil from the ground to make synthetics, and things like that. So we now have a really keen understanding of the source of our industry’s emissions.
Q: Your report mentions that the apparel industry is responsible for about 2% of global emissions. Is that an accurate statistic?
A: That’s our best estimate of the total emissions [generated by] the apparel sector. Some other reports on the industry have apparel at up to 8% of global emissions. And there is a commonly misquoted number in the media that it’s 10%. From my perspective, I think the best estimate is somewhere under 2%.
We know that globally, humankind needs to reduce emissions by roughly half by 2030 and reach net zero by 2050 to hit international goals. [Reaching that target will require the involvement of] every facet of the global economy and every aspect of the apparel sector—transportation, material production, manufacturing, cotton farming. Through our work and that of others, I think the apparel sector understands what has to happen. We have highlighted examples of how companies are taking action to reduce emissions in the roadmap reports.
Q: What are some of those actions the industry can take to reduce emissions?
A: I think one of the positive developments since we wrote the first report is that we’re seeing companies really focus on the most impactful areas. We see companies diving deep on thermal energy, for example. With respect to Tier Two, we [focus] a lot of attention on things like ocean freight versus air. There’s a rule of thumb I’ve heard that indicates air freight is about 10 times the cost [of ocean] and also produces 10 times more greenhouse gas emissions.
There is money available to invest in sustainability efforts. It’s really exciting to see the funding that’s coming through for AI [artificial intelligence] and to see that individual companies, such as H&M and Lululemon, are investing in real solutions in their supply chains. I think a lot of concrete actions are being taken.
And yet we know that reducing emissions by half on an absolute basis by 2030 is a monumental undertaking. So I don’t want to be overly optimistic, because I think we have a lot of work to do. But I do think we’ve got some amazing progress happening.
Q: You mentioned several companies that are starting to address their emissions. Is that a result of their being more aware of the emissions they generate? Have you seen progress made since the first report came out in 2021?
A: Yes. When we published the first roadmap back in 2021, our statistics showed that only about 12 companies had met the criteria [for setting] science-based targets. In 2024, the number of apparel, textile, and footwear companies that have set targets or have commitments to set targets is close to 500. It’s an enormous increase. I think they see the urgency more than other sectors do.
We have companies that have been working at sustainability for quite a long time. I think the apparel sector has developed a keen understanding of the impacts of climate change. You can see the impacts of flooding, drought, heat, and other things happening in places like Bangladesh and Pakistan and India. If you’re a brand or a manufacturer and you have operations and supply chains in these places, I think you understand what the future will look like if we don’t significantly reduce emissions.
Q: There are different categories of emission levels, depending on the role within the supply chain. Scope 1 are “direct” emissions under the reporting company’s control. For apparel, this might be the production of raw materials or the manufacturing of the finished product. Scope 2 covers “indirect” emissions from purchased energy, such as electricity used in these processes. Scope 3 emissions are harder to track, as they include emissions from supply chain partners both upstream and downstream.
Now companies are finding there are legislative efforts around the world that could soon require them to track and report on all these emissions, including emissions produced by their partners’ supply chains. Does this mean that companies now need to be more aware of not only what greenhouse gas emissions they produce, but also what their partners produce?
A: That’s right. Just to put this into context, if you’re a brand like an Adidas or a Gap, you still have to consider the Scope 3 emissions. In particular, there are the so-called “purchased goods and services,” which refers to all of the embedded emissions in your products, from farming cotton to knitting yarn to making fabric. Those “purchased goods and services” generally account for well above 80% of the total emissions associated with a product. It’s by far the most significant portion of your emissions.
Leading companies have begun measuring and taking action on Scope 3 emissions because of regulatory developments in Europe and, to some extent now, in California. I do think this is just a further tailwind for the work that the industry is doing.
I also think it will definitely ratchet up the quality requirements of Scope 3 data, which is not yet where we’d all like it to be. Companies are working to improve that data, but I think the regulatory push will make the quality side increasingly important.
Q: Overall, do you think the work being done by the Apparel Impact Institute will help reduce greenhouse gas emissions within the industry?
A: When we started this back in 2020, we were at a place where companies were setting targets and knew their intended destination, but what they needed was a blueprint for how to get there. And so, the roadmap [provided] this blueprint and identified six key things that the sector needed to do—from using more sustainable materials to deploying renewable electricity in the supply chain.
Decarbonizing any sector, whether it’s transportation, chemicals, or automotive, requires investment. The Apparel Impact Institute is bringing collective investment, which is so critical. I’m really optimistic about what they’re doing. They have taken a data-driven, evidence-based approach, so they know where the emissions are and they know what the needed interventions are. And they’ve got the industry behind them in doing that.
Chief supply chain officers (CSCOs) must proactively embrace a geopolitically elastic supply chain strategy to support their organizations’ growth objectives, according to a report from analyst group Gartner Inc.
An elastic supply chain capability, which can expand or contract supply in response to geopolitical risks, provides supply chain organizations with greater flexibility and efficacy than operating from a single geopolitical bloc, the report said.
"The natural response to recent geopolitical tensions has been to operate within ‘trust boundaries,’ which are geographical areas deemed comfortable for business operations,” Pierfrancesco Manenti, VP analyst in Gartner’s Supply Chain practice, said in a release.
“However, there is a risk that these strategies are taken too far, as maintaining access to global markets and their growth opportunities cannot be fulfilled by operating within just one geopolitical bloc. Instead, CSCOs should embrace a more flexible approach that reflects the fluid nature of geopolitical risks and positions the supply chain for new opportunities to support growth,” Manenti said.
Accordingly, Gartner recommends that CSCOs consider a strategy that is flexible enough to pursue growth amid current and future geopolitical challenges, rather than attempting to permanently shield their supply chains from these risks.
To reach that goal, Gartner outlined three key categories of action that define an elastic supply chain capability: understand trust boundaries and define operational limits; assess the elastic supply chain opportunity; and use targeted, market-specific scenario planning.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”