Steve Geary is adjunct faculty at the University of Tennessee's Haaslam College of Business and is a lecturer at The Gordon Institute at Tufts University. He is the President of the Supply Chain Visions family of companies, consultancies that work across the government sector. Steve is a contributing editor at DC Velocity, and editor-at-large for CSCMP's Supply Chain Quarterly.
In its November 2009 issue, DC Velocity published an article about maritime piracy by Earl Boyanton, who recently retired from an executive post at the U.S. Department of Defense. The story led with an account of the April 2009 Maersk Alabama incident —the attack by armed Somali pirates, the retaking of the vessel by its unarmed crew, and the hostage crisis that ensued.
While working with the author on the development of the article, we learned that since the April attack, Maersk Line had made at least one important change to its operating policy. By the time the article was published, the Maersk Alabama had become an armed merchant ship. We made a deliberate decision to omit that detail out of respect for the safety of the people on board the ship.
But the news leaked out anyway. On Nov. 18, the Alabama was attacked again, and news services around the world reported that armed guards on the ship had repelled the attackers. So now we can talk about the difficult decision made by Maersk Line's leadership —a call that was controversial in some camps but which many argue was the right one.
The firestorm over fire power
Maersk is not alone in arming its ships. In late October, Spain authorized fishing vessels to carry guards armed with military weapons. About three weeks later, reports surfaced of a Spanish fishing boat that fired shots to repel an attack. France also allows its commercial vessels to sail with armed marines aboard, and there have been reports of their success in driving off attackers.
Even so, the notion of arming merchant ships continues to spark controversy. Opponents include the United Nations, which outlined its position in a circular issued in June by its International Maritime Organization. "The carrying and use of firearms by seafarers for personal protection or for the protection of a ship is strongly discouraged," the organization said. It went on to warn ship operators to consider carefully the "possible escalation of violence and other risks."
There is no mention of crews playing guitars and singing "Kumbaya" in the face of an attack. But to my mind, the United Nations' guidance clearly leans in that direction.
On the other end of the spectrum is the U.S. military, which recommends the use of armed guards on merchant ships when transiting high-risk areas, and even goes so far as to call deploying armed security teams a "best practice."
"Due to Maersk Alabama following maritime industry's best [anti-piracy] practices, such as embarking security teams, the ship was able to prevent being successfully attacked by pirates," said Navy Vice Adm. William E. Gortney, commander of the U.S. Naval Forces Central Command and U.S. 5th Fleet, in a press statement. "This is a great example of how merchant mariners can take proactive action to prevent being attacked, and why we recommend that ships follow industry best practices if they're in high-risk areas."
Speaking to the idea of using less lethal options —like sound blasters —to repel attackers, Vice Adm. Gortney was a little more colorful. "A well-placed round from an M-16 is far more effective," he said.
The U.S. military has long been aggressive in confronting piracy —so long that the battle against maritime pirates has been enshrined in a line from the Marine Corps Hymn: "From the halls of Montezuma, to the shores of Tripoli…" The "shores of Tripoli" refers to the Barbary States, where almost 200 years ago, the U.S. Marines went ashore to eliminate a group of incorrigibles who would not leave the nation's merchant ships alone.
To arm or not to arm?
When you are faced with a decision like this regarding arms, nobody else can make the decision for you. You have to face it, and you have to own it. I understand this from personal experience. While on assignment in Iraq, I once asked some civilians to go out to make a pickup. It was a peaceful activity in a decidedly unstable area. The unarmed convoy was attacked, and somebody died.
So, while I understand the lofty sentiments that support the argument for not arming merchant ships, I cannot get past the thought of those crewmen who risk their lives carrying our goods. I salute the shipowners for proving once again that the U.S. Merchant Marine is not to be trifled with, and I congratulate Maersk's management for standing up and making what I believe to be the right call.
Editor's note: An extended version of the article on modern-day piracy that ran in DC Velocity appeared in the Quarter 4/2009 edition of its sister publication, CSCMP's Supply Chain Quarterly.
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The U.S. manufacturing sector has become an engine of new job creation over the past four years, thanks to a combination of federal incentives and mega-trends like nearshoring and the clean energy boom, according to the industrial real estate firm Savills.
While those manufacturing announcements have softened slightly from their 2022 high point, they remain historically elevated. And the sector’s growth outlook remains strong, regardless of the results of the November U.S. presidential election, the company said in its September “Savills Manufacturing Report.”
From 2021 to 2024, over 995,000 new U.S. manufacturing jobs were announced, with two thirds in advanced sectors like electric vehicles (EVs) and batteries, semiconductors, clean energy, and biomanufacturing. After peaking at 350,000 news jobs in 2022, the growth pace has slowed, with 2024 expected to see just over half that number.
But the ingredients are in place to sustain the hot temperature of American manufacturing expansion in 2025 and beyond, the company said. According to Savills, that’s because the U.S. manufacturing revival is fueled by $910 billion in federal incentives—including the Inflation Reduction Act, CHIPS and Science Act, and Infrastructure Investment and Jobs Act—much of which has not yet been spent. Domestic production is also expected to be boosted by new tariffs, including a planned rise in semiconductor tariffs to 50% in 2025 and an increase in tariffs on Chinese EVs from 25% to 100%.
Certain geographical regions will see greater manufacturing growth than others, since just eight states account for 47% of new manufacturing jobs and over 6.3 billion square feet of industrial space, with 197 million more square feet under development. They are: Arizona, Georgia, Michigan, Ohio, North Carolina, South Carolina, Texas, and Tennessee.
Across the border, Mexico’s manufacturing sector has also seen “revolutionary” growth driven by nearshoring strategies targeting U.S. markets and offering lower-cost labor, with a workforce that is now even cheaper than in China. Over the past four years, that country has launched 27 new plants, each creating over 500 jobs. Unlike the U.S. focus on tech manufacturing, Mexico focuses on traditional sectors such as automative parts, appliances, and consumer goods.
Looking at the future, the U.S. manufacturing sector’s growth outlook remains strong, regardless of the results of November’s presidential election, Savills said. That’s because both candidates favor protectionist trade policies, and since significant change to federal incentives would require a single party to control both the legislative and executive branches. Rather than relying on changes in political leadership, future growth of U.S. manufacturing now hinges on finding affordable, reliable power amid increasing competition between manufacturing sites and data centers, Savills said.
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
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.