Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.
In the nine-plus years since the 9/11 terrorist attacks, operators of all-cargo aircraft have been largely exempt from the security precautions imposed on passenger airlines carrying freight in their lower-hold compartments.
After the events of Oct. 29, when authorities in the United Arab Emirates and Britain found two packages with explosives on airplanes bound for the United States, the calculus may have changed. The packages were sent from Yemen by an al Qaeda terrorist group and addressed to Chicago-area destinations.
Rep. Edward J. Markey (D-Mass.), who authored a 2007 law that now requires 100 percent screening or inspection of air cargo loaded in the bellies of passenger planes at U.S. airports, said yesterday he plans to introduce legislation when the House reconvenes Nov. 15 following the mid-term elections to mandate the same screening requirements for cargo flying on all-cargo planes.
Markey, who has been pushing for cargo screening laws since 2003, tried to include a screening mandate for all-cargo planes shortly before the legislation requiring cargo screening on passenger aircraft was signed into law by President Bush in 2007. However, Markey's efforts were thwarted by a coalition that included the Bush administration, a Republican-controlled Congress, the air-cargo industry, the U.S. Chamber of Commerce, and other business interests, he said.
A source close to Markey said he will take the two-week hiatus to conduct "due diligence" on the total air-cargo universe, which includes companies like FedEx Corp., UPS Inc., and DHL whose air operations mostly handle packages and letters, smaller cargo airlines that carry more general freight, a phalanx of charter operators, third parties that book shippers' freight on all-cargo planes, and foreign airlines that operate freighters to and from the United States. No U.S. airline that predominantly flies passengers has cargo planes in its fleet.
"While we now have 100 percent screening of air cargo being transported on domestic passenger planes, and we are screening over a reported 80 percent of the incoming air cargo on international passenger planes, we are not yet screening all the freight on all-cargo carriers," Markey said in a statement. "Friday's incident shows that al Qaeda is well aware of this loophole in the system, and they fully intend to exploit it," he said. In a shot across the bow at the all-cargo sector, Markey added, "It is time for the shipping industry and the business community to accept the reality that more needs to be done to secure cargo planes so that they cannot be turned into a delivery system for bombs targeting our country."
Representatives from FedEx and UPS declined comment on Markey's announcement.
Tipping point for all-cargo sector
Markey has been tenacious in his attempts to require industry to screen or inspect air-cargo shipments. From 2003 to 2007, he offered multiple bills and amendments to mandate physical screening and inspection of air cargo. Time after time, his efforts were beaten back.
During that period, Markey clashed with industry, the administration, and members of Congress. Even the lone Democrat in the Bush Cabinet, Transportation Secretary Norman Y. Mineta, at the time opposed the mandatory physical screening of cargo as too expensive and time-consuming. Industry condemned it as a so-called unfunded mandate, where Congress passes legislation but appropriates no funds to pay for it, leaving it to industry to foot the bill.
In January 2007, an amendment authored by Markey to inspect 100 percent of cargo on passenger planes phased in over three years was included in a House bill to implement the recommendations of the 9/11 Commission. After the passage of House and Senate versions early in 2007, President Bush signed the bill into law that August.
A security executive at a major transportation company said that in the wake of the Oct. 29 incidents, it will now only be a matter of time before the all-cargo airline industry is subject to the same screening and inspection mandates as its passenger brethren.
The idea of screening freight on all-cargo planes "has been in the background all the time. All that was needed was a catalyst to push it over the edge," said the executive, who asked not to be identified. The events of last Friday could be that catalyst, the executive said.
The executive said the large parcel carriers do a very good job of self-policing for security, noting that they handle cargo for a living and are accustomed to having security authorities in the United States and abroad "looking over their shoulders."
Though they are not subject to screening or inspection mandates, all-cargo carriers are required to comply with general government security requirements that apply to all air-cargo operations. Transportation Security Administration (TSA) Administrator John S. Pistole said in a statement that cargo airlines carrying freight into the United States are held to "TSA security standards that include specific requirements covering how facilities and cargo is accessed, the vetting of personnel with access to cargo, employee training, and cargo screening procedures."
Any U.S. government policy response to Friday's events, the executive said, should take into account the distinction between all-cargo operators like FedEx and UPS that carry parcels and letters, and other carriers that ship general freight not in parcel configuration.
But with the issue now very much in the public eye, the executive doesn't believe such distinctions will matter to lawmakers.
"The general public doesn't know and doesn't care" about shipment types, the executive said. "All they see is a cargo plane blowing up in the sky or someone commandeering a plane and crashing it into a building."
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 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.
Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).
While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.
In addition to its human toll, the storm could exert serious business impacts, according to the supply chain mapping and monitoring firm Resilinc. Those will be largely triggered by significant flooding, which could halt oil operations, force mandatory evacuations, restrict ports, and disrupt air traffic.
While the storm’s track is currently forecast to miss the critical ports of Miami and New Orleans, it could still hurt operations throughout the Southeast agricultural belt, which produces products like soybeans, cotton, peanuts, corn, and tobacco, according to Everstream Analytics.
That widespread footprint could also hinder supply chain and logistics flows along stretches of interstate highways I-10 and I-75 and on regional rail lines operated by Norfolk Southern and CSX. And Hurricane Helene could also likely impact business operations by unleashing power outages, deep flooding, and wind damage in northern Florida portions of Georgia, Everstream Analytics said.
Before the storm had even touched Florida soil, recovery efforts were already being launched by humanitarian aid group the American Logistics Aid Network (ALAN). In a statement on Wednesday, the group said it is urging residents in the storm's path across the Southeast to heed evacuation notices and safety advisories, and reminding members of the logistics community that their post-storm help could be needed soon. The group will continue to update its Disaster Micro-Site with Hurricane Helene resources and with requests for donated logistics assistance, most of which will start arriving within 24 to 72 hours after the storm’s initial landfall, ALAN said.