Skip to content
Search AI Powered

Latest Stories

newsworthy

will defensive measures crimp U.S. supply chain?

With the launch of war in Iraq, the question of how to provide homeland security once again came under the spotlight, and the nation's transportation and distribution system once again took center stage.

With the launch of war in Iraq, the question of how to provide homeland security once again came under the spotlight, and the nation's transportation and distribution system once again took center stage.

The Department of Homeland Security has raised its official advisory on the threat of terrorist attack to high and taken a number of steps to protect the nation's transportation and distribution network as part of its far-reaching Operation Liberty Shield.


In announcing the new steps, Homeland Security Secretary Tom Ridge said a variety of intelligence sources indicated a high probability that terrorists would attack U.S. interests in response to the war. "In recent months, there have been reports of suspicious activity in and around military facilities, ports, waterways, general infrastructure (bridges, dams, power-generating facilities) and targets that are considered symbolic of U.S. power and influence," Ridge said in prepared remarks. "Operation Liberty Shield will increase security at our borders, strengthen transportation sector protections, enhance security at our critical infrastructure, increase public health preparedness and make sure all federal response assets can be deployed quickly." He said the operations were designed for minimal disruption to the economy.

On guard
The initiative calls for increased Coast Guard patrols at major U.S. ports and waterways. In addition, all vessels deemed of "high interest" arriving at or departing from U.S. ports will have armed Coast Guard sea marshals on board. Those are ships the government has identified as having cargo or personnel to which officials wanted to give particular scrutiny.

The Coast Guard has also received instructions to enforce security zones in and around critical infrastructure sites in key ports. In particular, the Coast Guard has been asked to provide maritime protection for petroleum centers located in close proximity to major coastal population centers.

The department has also increased surveillance at U.S. borders with Canada and Mexico, adding agents and increasing patrols between major ports of entry. At border crossings, customs and border protection officers increased the number of screenings of vehicles and cargo.

Airports have come under particular scrutiny under the new rules. In particular, the department has put temporary flight restrictions in place overWashington, D.C., and New York City.

Freight railroad infrastructure was the focus of other steps. The federal government asked state governors to provide additional police or National Guard forces at selected bridges and requested that railroad companies increase security at major facilities and key rail hubs.At the same time, the Department of Transportation has asked railroads to increase their surveillance of trains carrying hazardous materials.

For over-the-road transportation, the DOT planned to encourage hazardous material shippers and carriers to follow transportation security checklists and recommendations. Suggested measures, according to the Department of Homeland Security, included checking employee identification, developing communications plans and emphasizing operator awareness.

Businesses engaged in food distribution were targeted for additional security steps. The Department of Agriculture began urging food producers to inspect all vehicles and escort all visitors to their facilities. At the same time, the Department of Health and Human Services increased inspections of imported food.

What's coming down
Some industry players are raising questions about the security initiative, however. Dave Miller, CEO of Con-Way Southern Express, a major regional LTL carrier, believes that some of the securi ty rules could undermine the nation's competitiveness. As an example, he cites U.S. Customs rules, some in place, some under consideration, requiring transmission of shipment-level detail on both imports and exports prior to lading. The rules, he fears, could wreak havoc on transportation and distribution. Some of those rules could add 24 to 72 hours to inventory cycles, threatening to reverse decades of logistics productivity improvements overnight. Miller asks, "Who would source in North America if they had to add 72 hours? "He believes that security rules should be subject to economic impact studies to make everyone involved aware of the consequences.

But he worries that not enough people involved in distribution, logistics or other segments of the supply chain fully understand the scope of what might be coming down the road. Unless more logistics and distribution professionals draw the attention of rulemakers to the consequences of their proposals, he says, the economy could suffer.

The Latest

More Stories

youngster checking shipping details on smartphone

Survey: older generations are unaware of holiday shipping deadlines

As holiday shoppers blitz through the final weeks of the winter peak shopping season, a survey from the postal and shipping solutions provider Stamps.com shows that 40% of U.S. consumers are unaware of holiday shipping deadlines, leaving them at risk of running into last-minute scrambles, higher shipping costs, and packages arriving late.

The survey also found a generational difference in holiday shipping deadline awareness, with 53% of Baby Boomers unaware of these cut-off dates, compared to just 32% of Millennials. Millennials are also more likely to prioritize guaranteed delivery, with 68% citing it as a key factor when choosing a shipping option this holiday season.

Keep ReadingShow less

Featured

shopper returning purchase with smartphone

E-commerce retailers brace for surge in returns

As shoppers prepare to receive—and send back—a surge of peak season e-commerce orders this month, returns will continue to pose a significant cost for the retail industry, with total returns projected to reach $890 billion in 2024, according to a report released today by the National Retail Federation (NRF) and Happy Returns, a UPS company.

Measured over the entire year of 2024, retailers estimate that 16.9% of their annual sales will be returned. But that total figure includes a spike of returns during the holidays; a separate NRF study found that for the 2024 winter holidays, retailers expect their return rate to be 17% higher, on average, than their annual return rate.

Keep ReadingShow less
screenshot of agentic AI for logistics

HappyRobot lands $15.6 million backing for its agentic AI

San Francisco startup HappyRobot has gained $15.6 million in venture funding for its AI platform that automates the communication needs of freight brokerages and other logistics users such as third-party logistics providers and warehouses.

The “series A” round was led by Andreessen Horowitz (a16z), with participation from Y Combinator and strategic industry investors, including RyderVentures. It follows an earlier, previously undisclosed, pre-seed round raised 1.5 years ago, that was backed by Array Ventures and other angel investors.

Keep ReadingShow less
iceberg drawing to illustrate supply chain threats

GEP: six factors could change calm to storm in 2025

The current year is ending on a calm note for the logistics sector, but 2025 is on pace to be an era of rapid transformation, due to six driving forces that will shape procurement and supply chains in coming months, according to a forecast from New Jersey-based supply chain software provider GEP.

"After several years of mitigating inflation, disruption, supply shocks, conflicts, and uncertainty, we are currently in a relative period of calm," John Paitek, vice president, GEP, said in a release. "But it is very much the calm before the coming storm. This report provides procurement and supply chain leaders with a prescriptive guide to weathering the gale force headwinds of protectionism, tariffs, trade wars, regulatory pressures, uncertainty, and the AI revolution that we will face in 2025."

Keep ReadingShow less
supply chain workers counting boxes in warehouse

US Bank tracks top three supply chain impacts for 2025

Freight transportation sector analysts with US Bank say they expect change on the horizon in that market for 2025, due to possible tariffs imposed by a new White House administration, the return of East and Gulf coast port strikes, and expanding freight fraud.

“All three of these merit scrutiny, and that is our promise as we roll into the new year,” the company said in a statement today.

Keep ReadingShow less