Susan Lacefield has been working for supply chain publications since 1999. Before joining DC VELOCITY, she was an associate editor for Supply Chain Management Review and wrote for Logistics Management magazine. She holds a master's degree in English.
If yours is a typical shipping operation, shipments probably aren't the only thing flowing out your dock doors each day. Chances are, money is too, in the form of air you've paid to heat or cool.
The causes of the problem aren't hard to understand. With doors opening and closing all day long, loading docks represent a prime escape route for heated and cooled air. And those doors aren't the only area of vulnerability. Think of all the gaps between the dock door and the door of the truck that's parked there for loading or unloading. Those cracks and gaps may seem insignificant, but they're actually a prime source of energy loss. If you added up all those gaps for 10 dock doors, you'd have the equivalent of a 6- by 6-foot hole in your distribution center's wall, says Steve Sprunger, vice president of sales and marketing for dock equipment maker 4Front Engineered Solutions.
In the past, it was easy enough to dismiss the problem as an unavoidable part of dock operations. But times are changing. Today, rising utility costs and societal and corporate pressure to be green are driving companies to take a look at how they can conserve energy at the loading dock.
So what can you do to tighten up your operations? Here are some tips.
Mind the gaps
When it comes to saving energy at the dock, most experts will tell you that shelters and seals are the first line of defense. Dock doors typically stand open for hours on end while trucks are loaded and unloaded, creating enormous potential for energy loss if the opening isn't sealed. Shelters, which cover and surround the top and sides of a trailer, and seals, which work by pressing up against the truck, are designed to prevent air from escaping. If your operation doesn't already have these devices in place, investing in them would be a good place to start.
But it's not enough to simply install these devices; you have to keep them in good working order. Seals and shelters can lose effectiveness over time—whether through normal wear and tear or damage. That's why it's a good idea to regularly inspect seals and shelters and replace old and damaged units.
It's worth noting that the cause of sealing failures isn't always obvious. Sometimes, the fault lies not with the seal, but with the door itself. As Sprunger explains, it's not unusual for a door to get hit and end up with a kink in it. Although the DC often is able to get the door working again, there may be residual damage—like panels that have been knocked out of alignment, creating a gap of a quarter inch or more and compromising the seal. To avoid this, Sprunger recommends installing dock doors that are specifically designed to withstand abuse, like those with impactable bottom panels.
Draft dodging
Although seals and shelters can go a long way toward stemming energy loss, they're not always enough. Even with these devices in place, dock doors can still be drafty. If that's true of your operation, there are a couple of other possibilities to investigate.
One is the so-called "hinge gap." Most over-the-road trailers have doors that hinge open as opposed to rolling up. When the truck backs into the dock, the dock shelter then seals to the inside face of the trailer door, as opposed to the trailer's outside wall. The result is a vertical gap between the outside wall of the door and the outside wall of the trailer, where air can rush in and out, says Walt Swietlik of dock equipment maker Rite-Hite.
Specialized seals designed to close off the trailer hinge gap during loading and unloading can help plug this type of leak. Rite-Hite also offers a dock shelter that has hooks that extend over the hinge, sealing it off from top to bottom.
Another place to check for leaks is the dock leveler, the device that bridges the gap between the truck or trailer door and the loading dock. Oftentimes, gapping occurs at the corners on either side of the dock leveler. As Swietlik puts it, as you look down on the leveler, there are two squares of white space on either side of it.
These gaps can be a significant source of energy loss, according to the experts. That's because unlike the gapping that occurs around dock doors and trailers, these gaps don't disappear once the dock door is closed. "Gaps around the leveler are a 24-hour-a-day concern since the front of the leveler is exposed to the exterior of the building," says Sprunger.
A number of dock equipment companies offer products that mount to the outside of the building and to the dock leveler to seal up those gaps.
Leakage can also occur underneath the dock leveler. Traditional dock levelers are recessed into a pit. If there's any kind of gapping between the leveler and the concrete pit, heated and cooled air can escape through the opening. Investing in an under-leveler seal can help plug this gap.
Open door policy?
When it comes to dock-related energy loss, the problem isn't always with the equipment. Sometimes, it's with the people. Seals won't do much good if dock attendants inadvertently leave doors open or fail to follow the proper procedure for opening dock doors (thus leaving doors open longer than necessary).
If you suspect operator error is a factor in your operation, "interlocking" or "sequencing" the dock operation can help. The use of interlocking equipment—devices that automatically engage when another piece of equipment is set in motion—removes the risk of operator oversight. Mike Earle of inflatable seal maker Pentalift says his company offers seals that can be interlocked with the mechanism that opens overhead doors so that once a door is opened, the seal starts inflating against the truck. This eliminates the chance that the operator or dock attendant will forget to engage the seal.
Sequencing a dock operation is another way to limit the amount of time doors are kept open. With sequencing, a control system or panel automatically sets the order of the dock door opening process. So, for example, a dock attendant must lock the trailer before raising the dock door and then engaging the dock leveler. The equipment will not turn on until the previous step has been completed.
In addition to interlocking and sequencing, there's always the software route. A number of companies offer dock management software that monitors loading dock equipment to make sure a dock door isn't left open. The software notifies the user when a door has been breached and then acknowledges any corrective action taken, says Sprunger of 4Front.
Watts going down?
Opportunities to save energy at the loading dock aren't limited to plugging air leaks, to be sure. Switching to more efficient—that is, lower wattage—dock lighting can also go a long way toward cutting utility bills.
Motor carrier Old Dominion Freight Line, for example, installed T5 lights at its freight handling facilities along with motion sensors that turn on the lights when motion is detected and ambient sensors that dim or raise lights depending on how much natural light is available. It also installed skylights to increase the amount of natural light in the loading dock area.
The result has been a noticeable drop in Old Dominion's utility bills. The carrier has seen a payback in anywhere from one to 12 months, depending on the number of lighting fixtures in the facility, says Howard Cornelison, the company's director of purchasing and real estate.
Another way to take a bite out of utility costs is to install high-volume, low-speed fans in the dock vestibule. In cold weather, these fans force hot air down from the ceiling; in hot weather, they promote air circulation and have a slight cooling effect.
Energy audit
If that seems like a lot of information to digest, help is available. Many dock equipment companies, including Rite-Hite and 4Front, offer free energy audits to identify areas of vulnerability and recommend solutions.
The return on investment for this type of equipment is typically pretty fast, according to the vendors. So once you've decided on a solution, it's usually fairly easy to get upper management to sign off on it, they say.
"In our analysis, we find the payback in Northern climates [is] in many cases a year or less," says Swietlik of Rite-Hite. "Considering that this equipment can run anywhere from $1,500 to $2,500," he adds, "that's a fair amount of energy saved."
Four Seasons keeps cool in face of rising energy costs
Utility rate increases may be a fact of business life, but the hikes Ephrata, Pa.-based Four Seasons Produce was looking at four years ago were in a category of their own. With Pennsylvania's electricity price cap set to expire on Jan. 1, 2010, the produce wholesaler had been running some numbers to see what kind of hit it would take. The findings came as something of a shock: Four Seasons learned its utility bills would rise anywhere from 20 to 40 percent. That was all it took for the company to launch a wholesale energy conservation effort aimed at generating savings roughly equivalent to the increase—somewhere between 20 and 30 percent.
One of the first areas to come under scrutiny was the company's bustling distribution center, a three-shift operation that operates six and a half days a week and handles more than a million cases a month. "We started by looking at areas of the facility where we knew we could reduce our energy use," says Randy Groff, Four Seasons' director of facilities and energy. "The building envelope, including the dock area, was one place that we knew we could generate some savings."
That assumption proved correct. A review of the operation revealed significant energy leakage at the dock's 35 doors—a serious concern for a refrigerated operation that requires its docks to be kept at a cool 40 degrees F. Part of the problem was that the original dock shelters were designed for tractor-trailer barn-style doors. When the company had to load or unload anything smaller, the result was a significant gap between the shelter and the vehicle.
To plug the leaks, the company invested in dock shelters and seals. In 2009, Four Seasons installed Rite-Hite's Eliminator-GapMaster dock shelters at all of its loading dock doors to seal the gap at the trailer door hinge. It also put in Rite-Hite's Pit Master under-leveler seals, which eliminate the gap between the leveler and the pit wall.
"It's now a lot easier to keep the ice on the broccoli," says Nelson Longenecker, Four Seasons' VP of business innovation.
How did the company do against its target? Quite well, it turns out. Its overall conservation initiative, which also included a lighting retrofit and the installation of a DC energy management system, produced savings of almost exactly 25 percent. "We hit our goal of having a smaller electrical bill this year than we did four years ago," says Longenecker.
The venture-backed fleet telematics technology provider Platform Science will acquire a suite of “global transportation telematics business units” from supply chain technology provider Trimble Inc., the firms said Sunday.
Trimble's other core transportation business units — Enterprise, Maps, Vusion and Transporeon — are not included in the proposed transaction and will remain part of Trimble's Transportation & Logistics segment, with a continued focus on priority growth areas following completion of the proposed transaction.
Terms of the deal were not disclosed but as part of this agreement, Colorado-based Trimble will become a shareholder in Platform Science's expanded business. Specifically, Trimble will have a 32.5% stake in the newly expanded global Platform Science business and will receive a Platform Science board seat. The company joins C.R. England, Cummins, Daimler Truck, PACCAR, Prologis, RyderVentures, and Schneider as a key strategic investor in Platform Science along with financial investors 8VC, Activant Capital, BDT & MSD Partners, Softbank, and NewRoad Capital Partners.
According to San Diego-based Platform Science, the proposed transaction aims to enhance driver experience, fleet safety, efficiency, and compliance by combining two cutting-edge in-cab commercial vehicle ecosystems, which will give customers access to more applications and offerings.
From Trimble customers’ point of view, they will continue to enjoy the benefits of their Trimble solutions, with the added flexibility of the Virtual Vehicle platform from Platform Science. That means Virtual Vehicle-enabled fleets will receive access to the Virtual Vehicle Marketplace, offering hundreds of new and expanded applications, software, and solution providers focused on innovating and improving drivers' quality of life and fleet performance.
Meanwhile, Platform Science customers will enjoy the added choice of Trimble's remaining portfolio of transportation solutions which will be available on the Virtual Vehicle platform, the partners said.
"We believe combining our global transportation telematics portfolio with Platform Science's will further advance fleet mobility and provide our customers with a broader portfolio of solutions to solve industry problems," Rob Painter, president and CEO of Trimble, said in a release. "Increased collaboration between the new Platform Science business and Trimble's remaining transportation businesses will enhance our ability to provide positive outcomes for our global customers of commercial mapping, transportation management, freight procurement, and visibility solutions. This deal will result in significant synergies along with tremendous opportunities for employees to continue to grow in a more-competitive business."
The acquisition comes just five months after Platform Science raised $125 million in growth capital from some of the biggest names in freight trucking, saying the money would help accelerate innovation in the commercial transportation sector.
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
With the economy slowing but still growing, and inflation down as the Federal Reserve prepares to lower interest rates, the United States appears to have dodged a recession, according to the National Retail Federation (NRF).
“The U.S. economy is clearly not in a recession nor is it likely to head into a recession in the home stretch of 2024,” NRF Chief Economist Jack Kleinhenz said in a release. “Instead, it appears that the economy is on the cusp of nailing a long-awaited soft landing with a simultaneous cooling of growth and inflation.”
Despite an “eventful August” with initial reports of rising unemployment and a slowdown in manufacturing, more recent data has “calmed fears of a deteriorating U.S. economy,” Kleinhenz said. “Concerns are now focused on the direction of the labor market and the possibility of a job market slowdown, but a recession is far less likely.”
That analysis is based on data in the NRF’s Monthly Economic Review, which said annualized gross domestic product growth for the second quarter has been revised upward to 3% from the original report of 2.8%. And consumer spending, the largest component of GDP, was revised up to 2.9% growth for the quarter from 2.3%.
Compared to its recent high point of 9.1% in July of 2022, inflation is nearly back to normal. Year-over-year growth in the Personal Consumption Expenditures Price Index – the Fed’s preferred measure of inflation – was at 2.5% in July, unchanged from June and only half a percentage point above the Fed’s target of 2%.
The labor market “is not terribly weak” but “is showing signs of tottering,” Kleinhenz said. Only 114,000 jobs were added in July, lower than expected, and the unemployment rate rose to 4.3% from 4.1% in June. Despite the increase, the unemployment rate is still within the normal range, Kleinhenz said.
“Now the guessing game begins on the magnitude and frequency of rate cuts and how far the federal funds rate will be reduced,” Kleinhenz said. “While lowering interest rates would be good news, it takes time for rate reductions to work their way through the various credit channels and the economy as a whole. Consequently, a reduction is not expected to provide an immediate uplift to the economy but would stabilize current conditions.”
Going forward, Kleinhenz said lower rates should benefit households under pressure from loans used to meet daily needs. Lower rates will also make it more affordable to borrow through mortgages, home improvement loans, car loans, and credit cards, encouraging spending and increasing demand for goods and services. Small businesses would also benefit, since lower intertest rates could lower their financing costs on existing loans or allow them to take out new loans to invest in equipment and plants or to hire more workers.
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.