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.
There are moments of truth in the lives of every organization. Savannah, the nation's fourth-largest container port, is living through one of those moments.
The Georgia port is a heavyweight in domestic and international commerce. It handled a record 2.82 million twenty-foot equivalent unit (TEU) containers in its 2010 fiscal year (which ended on June 30, 2010). Bu way of comparison, the combined TEU throughput at the ports of Virginia and Charleston, S.C., both of which calculate traffic data on a calendar year basis, was about 3.2 million, with Virginia at slightly under 1.9 million TEUs and Charleston at 1.36 million TEUs.
In calendar year 2010, Savannah moved the equivalent of 8.6 percent of all U.S. containerized trade and 12.4 percent of all U.S. containerized exports. It is the only East Coast port to be served by both Class I Eastern railroads: CSX Corp. and Norfolk Southern Corp. In addition, Savannah traditionally handles more export cargoes than imports, a claim that none of the country's three biggest ports—Los Angeles, Long Beach, and New York/New Jersey—can make.
In fiscal year 2009, operations at Savannah and at the nearby Port of Brunswick, which mostly handles breakbulk, agri-bulk, and roll-on/roll-off traffic, directly and indirectly supported more than 286,000 Georgia jobs and contributed $6.3 billion in taxes to state and local coffers, according to the University of Georgia's Terry School of Business.
Savannah's industrial capacity continues to make it a magnet for developers and tenants. According to real estate and industrial services giant Jones Lang LaSalle (JLL), the "net absorption" of Savannah's warehouse and distribution center space stood at a positive 1.14 million square feet at the end of 2010, meaning more space was being occupied than was being returned to the market. Savannah's industrial vacancy rate stood at 16 percent in 2010, down from 18 percent in 2009.
Steve Grable, a JLL vice president, says Savannah continues to work off excess capacity created by overbuilding between 2005 and 2008. Grable adds that Savannah will become what JLL calls a "landlord-favorable" market by 2013 or 2014 due to the absence of so-called spec construction and as "impressive" port volumes attract more shippers.
Few would dispute Savannah's importance on the statewide, regional, or national stage. Yet if events unfolding over the next year or so don't break right for the port, it may find its relevance to shippers and consignees—and its edge over its rivals—begin to diminish.
In August 2014, Panama is scheduled to complete the much-publicized $5.2 billion expansion of the legendary canal that joins the Atlantic and Pacific oceans. The project will deepen the canal by as much as 10 feet, while new lock construction will enable it to accommodate ships built to carry a maximum of 12,600 TEUs, up from a current maximum of 5,100 TEUs.
The expansion promises compelling economies of scale for the seagoing supply chain because carriers can move more containers per vessel through the canal than ever before. It could also permanently reshape shipping patterns if importers that would normally bring Asian-originating ocean cargo in through West Coast ports for movement inland via surface transport instead opt for a less-costly all-water route for drop-off at East and Gulf Coast ports. Only 30 percent of all seagoing cargoes are discharged at points east of the Mississippi, although 70 percent of the U.S. population lives there.
Getting ready for "bigger boats"
Ship order books reflect what lies ahead. At present, about 80 percent of containerships on order are giant ships that are too big to move through the Panama Canal as it's currently configured. When fully loaded with anywhere from 8,000 to 12,000 TEUs, these so-called post-Panamax vessels will require channels deeper than most U.S. ports currently have. As a result, a number of ports have begun significant dredging programs to prepare for the bigger ships.
Georgia's port interests don't need to be reminded of what's at stake, especially since 57 percent of Savannah's throughput in 2010 transited the canal. Yet at a depth of only 42 feet at its channel, the port needs an additional six feet to accommodate the larger vessels carrying full container loads. At this time, there is no guarantee it will get the environmental approval, or the funding, to do the work.
If Savannah can't get the job done, then its loss could be Charleston's gain. Charleston, 108 driving miles to the north, boasts a 47-foot depth at its entrance channel and a 45-foot depth at its harbor. It already handles one 8,500-TEU ship per week routed through the Suez Canal. It is also building the last container terminal to be permitted in the United States, a 288-acre facility approved in 2007. The project's first phase is set for completion in 2018, according to Byron Miller, marketing director of the South Carolina State Ports Authority, which runs the port.
One Georgia port interest, speaking on condition of anonymity, says Savannah's TEU throughput is so much larger than Charleston's that even if Savannah lost one-quarter of its volume to its rival, the added traffic "would shut Charleston down." Miller disputes that notion, saying the 750,000 additional units—which would be roughly equal to one-quarter of Savannah's 2010 TEU volume—when added to Charleston's 2010 TEU total of 1.36 million units, would represent what the port handled at its peak five years ago.
"We'll take half of their business; we don't need just a quarter," he says.
"Just do it"
Savannah's shallow depths have long posed challenges for the vessels it serves, as well as for the port itself. The U.S. Army Corps of Engineers, which has spent 12 years studying the environmental impact of deepening Savannah's harbor, said in mid-November that more than 70 percent of vessels aren't operating at their maximum capacity or draft when they call at Savannah. "The 'light loading' of vessels increases costs to the shipper, which are eventually passed on to the consumer," the Corps of Engineers wrote in an environmental impact statement in support of the dredging plan. Each foot of draft allows vessels to carry an additional 100 loaded containers, according to industry estimates.
The comments submitted during a two-month period following the statement's release were mostly supportive of the project because of its economic and job-creation potential. Few echoed the worries of environmentalists that a deeper river could cause saltwater to infiltrate freshwater wetlands, killing off fish and wildlife, and requiring businesses and communities to pay for costly filtration equipment on water intakes.
Many commenters expressed concern that the approval process has already gone on too long, and in so doing threatens the port's competitiveness, Georgia's economy, and jobs. One remarked in handwritten scrawl, "Be like Nike, and just do it!"
Curtis J. Foltz, executive director of the Georgia Ports Authority, which runs the port, shares the frustration. In an interview, Foltz warned that harm will come to a wide range of stakeholders—including the U.S. economy—"the longer this project drags on without giving our customers deeper water." Further delays would "weaken the competitive position of our ports," he added.
The next major milestone is March 2012, when the departments of Commerce and Interior, the Environmental Protection Agency, and the U.S. Army, all of which have authority over the project, are scheduled to give it their blessing. Foltz is confident of approval, noting they all have supported the dredging. The earliest that work could begin is the spring of 2012, with completion scheduled for early to mid-2016. By then, the expanded canal will have been open for nearly two years.
Then there's the issue of money. Foltz estimates the project's total cost at $600 million, of which $200 million would be earmarked by the state to mitigate any environmental damage the dredging might cause. Of the $200 million, the state has already approved and set aside $103 million. At this writing, the Georgia Legislature was expected to approve Gov. Nathan Deal's request for an additional $32 million in his fiscal year 2012 budget.
The bigger problem may be at the federal level. President Obama's FY 2012 budget authorizes just $600,000 in "pre-construction" funding for the Corps of Engineers to finish their study. That's a far cry from the $105 million that state officials said they would need this year to move the project forward. Foltz says federal funds will come in four-year increments, adding that "we would hope there would be federal dollars available" to proceed.
If it's any consolation to Savannah, other ports didn't fare particularly well in the Obama budget. Charleston didn't receive $400,000 in funding for a Corps of Engineers study to determine the feasibility of deepening its harbor to 50 feet. Nor did Miami receive $75 million for its own dredging project to go to 50 feet.
The winner seemed to be the Port of New York/New Jersey, which was authorized to receive $65 million to complete a $1 billion span elevation project at the Bayonne (N.J.) Bridge that will allow its 50-foot channel to accommodate the larger vessels.
A waiting game
With the situation at Savannah in limbo, the supply chain waits. To be sure, no one expects vessels to stop calling on Savannah, or for shippers and importers to suddenly relocate their operations to other ports. But experts say Savannah's inability to dredge the harbor could change the complexion of things.
Ben Hackett, whose company, Hackett Associates, produces the widely followed monthly "Port Tracker" reports on import container volumes in conjunction with the National Retail Federation, says the "impact on the supply chain would be significant. The port is not only a large importer but also an exporter for the Southeast region."
Hackett adds that any meaningful shift of vessels to Charleston or Norfolk (Va.)—both of which have deeper channels than Savannah—would "lengthen inland haulage mileage and thereby increase costs. It would also increase truck emissions significantly."
Charles W. Clowdis Jr., managing director, transportation consulting and advisory services at consultancy IHS Global Insight, says a shift in vessel calls and supply chains would never occur "all at once." However, he says a diversion of calls to Charleston—about two hours to the north by road—would add time and cost for deliveries throughout the Southeast and, especially, into Florida.
Clowdis surmises that operators of the larger, post-Panamax vessels may call on ports in the Caribbean and even Cuba, and then trans-load their freight to smaller vessels to call on Savannah. That practice, he says, would also add time and cost to delivery schedules.
Clowdis says Savannah is a powerhouse port, whose dredging is a project of national importance. "It's just stupid," he replied when asked about the lengthy process of moving the project forward. "They need to find the money from somewhere."
Electric vehicle (EV) sales have seen slow and steady growth, as the vehicles continue to gain converts among consumers and delivery fleet operators alike. But a consistent frustration for drivers has been pulling up to a charging station only to find that the charger has been intentionally broken or disabled.
To address that threat, the EV charging solution provider ChargePoint has launched two products to combat charger vandalism.
The first is a cut-resistant charging cable that's designed to deter theft. The cable, which incorporates what the manufacturer calls "novel cut-resistant materials," is substantially more difficult for would-be vandals to cut but is still flexible enough for drivers to maneuver comfortably, the California firm said. ChargePoint intends to make its cut-resistant cables available for all of its commercial and fleet charging stations, and, starting in the middle of the year, will license the cable design to other charging station manufacturers as part of an industrywide effort to combat cable theft and vandalism.
The second product, ChargePoint Protect, is an alarm system that detects charging cable tampering in real time and literally sounds the alarm using the charger's existing speakers, screens, and lighting system. It also sends SMS or email messages to ChargePoint customers notifying them that the system's alarm has been triggered.
ChargePoint says it expects these two new solutions, when combined, will benefit charging station owners by reducing station repair costs associated with vandalism and EV drivers by ensuring they can trust charging stations to work when and where they need them.
New Jersey is home to the most congested freight bottleneck in the country for the seventh straight year, according to research from the American Transportation Research Institute (ATRI), released today.
ATRI’s annual list of the Top 100 Truck Bottlenecks aims to highlight the nation’s most congested highways and help local, state, and federal governments target funding to areas most in need of relief. The data show ways to reduce chokepoints, lower emissions, and drive economic growth, according to the researchers.
The 2025 Top Truck Bottleneck List measures the level of truck-involved congestion at more than 325 locations on the national highway system. The analysis is based on an extensive database of freight truck GPS data and uses several customized software applications and analysis methods, along with terabytes of data from trucking operations, to produce a congestion impact ranking for each location. The bottleneck locations detailed in the latest ATRI list represent the top 100 congested locations, although ATRI continuously monitors more than 325 freight-critical locations, the group said.
For the seventh straight year, the intersection of I-95 and State Route 4 near the George Washington Bridge in Fort Lee, New Jersey, is the top freight bottleneck in the country. The remaining top 10 bottlenecks include: Chicago, I-294 at I-290/I-88; Houston, I-45 at I-69/US 59; Atlanta, I-285 at I-85 (North); Nashville: I-24/I-40 at I-440 (East); Atlanta: I-75 at I-285 (North); Los Angeles, SR 60 at SR 57; Cincinnati, I-71 at I-75; Houston, I-10 at I-45; and Atlanta, I-20 at I-285 (West).
ATRI’s analysis, which utilized data from 2024, found that traffic conditions continue to deteriorate from recent years, partly due to work zones resulting from increased infrastructure investment. Average rush hour truck speeds were 34.2 miles per hour (MPH), down 3% from the previous year. Among the top 10 locations, average rush hour truck speeds were 29.7 MPH.
In addition to squandering time and money, these delays also waste fuel—with trucks burning an estimated 6.4 billion gallons of diesel fuel and producing more than 65 million metric tons of additional carbon emissions while stuck in traffic jams, according to ATRI.
On a positive note, ATRI said its analysis helps quantify the value of infrastructure investment, pointing to improvements at Chicago’s Jane Byrne Interchange as an example. Once the number one truck bottleneck in the country for three years in a row, the recently constructed interchange saw rush hour truck speeds improve by nearly 25% after construction was completed, according to the report.
“Delays inflicted on truckers by congestion are the equivalent of 436,000 drivers sitting idle for an entire year,” ATRI President and COO Rebecca Brewster said in a statement announcing the findings. “These metrics are getting worse, but the good news is that states do not need to accept the status quo. Illinois was once home to the top bottleneck in the country, but following a sustained effort to expand capacity, the Jane Byrne Interchange in Chicago no longer ranks in the top 10. This data gives policymakers a road map to reduce chokepoints, lower emissions, and drive economic growth.”
"Shrink" is the retail industry term for the loss of inventory before it can be sold, whether through theft, damage, fraud, or simple book-keeping errors. In the ongoing effort to reduce those losses, Switzerland-based retail tech company Sensormatic Solutions has expanded the scope of its Shrink Analyzer application to shine a light into previously unmonitored parts of brick-and-mortar stores where goods tend to go missing.
The newly enhanced, cloud-based application can now integrate radio-frequency identification (RFID) and electronic product code (EPC) data from overlooked parts of the building, like employee entrances, receiving doors, "buy online, pick up in store" (BOPIS) doors, or other high-risk areas selected by a store. It then integrates that data into Sensormatic's analytics engine to provide insights into when, where, and how shrink occurs to help users strengthen their loss-prevention strategies, the company says.
Those expanded capabilities allow the platform to provide enhanced "shrink insight" at locations beyond the store's main exit, Sensormatic says. For example, strategically placed RFID scanners at employee exits can reduce internal theft while providing item-level evidence for theft investigation efforts. Likewise, monitoring online-order pickup doors can help retailers both improve in-store e-commerce fulfillment accuracy and identify employee theft events, according to Sensormatic.
A few days before Christmas as I was busy preparing for the holiday, I received a text message from my bank asking if I had attempted to purchase a $244 Amtrak ticket in Orange County, California. Considering that I had the card in my possession and that I lived thousands of miles away from the attempted purchase location, I promptly replied "No." Almost immediately, a second message informed me that my card was locked and to contact my bank.
I'd like to say this was an isolated incident, but in 2024, I had to replace the same card four times. Luckily, it just took a quick trip to my local bank to replace the compromised card, but it was still an unwanted hassle.
Fraud is a never-ending issue facing not just consumers but businesses as well—no one is immune, it seems. In its latest industry report, "Occupational Fraud 2024: A Report to the Nations," the Association of Certified Fraud Examiners (ACFE) estimated that businesses lose 5% of their revenues to fraud each year. This report focused specifically on three basic types of occupational fraud: asset misappropriation, corruption, and financial misstatement. But what about other types of fraud?
The media often report on big organized theft rings stealing goods from trailers, trains, or containerships, or on bands of thieves breaking into warehouses or retail stores—but there are so many other ways in which fraudsters wreak havoc.
For instance, another area where fraud is rampant is consumer returns in the retail industry. Software company Appriss Retail, in collaboration with business management consultancy Deloitte, recently published its "2024 Consumer Returns in the Retail Industry" report. It states that "total returns for the retail industry amounted to $685 billion in merchandise in 2024." That might seem like a drop in the bucket compared to the $5 trillion in sales U.S. retailers racked up last year, but as the report's authors note in the executive summary, "the amount of fraud and abuse remains a significant issue that should be addressed. Fraudsters and abusers are often becoming adept at circumventing retailers' controls across all channels."
So what can businesses do? According to the ACFE study, internal controls (i.e., surprise audits, management reviews, hotlines or other reporting mechanisms, fraud training, and formal fraud risk assessments) are the best defense against occupational fraud.
When it comes to consumer returns fraud, Appriss Retail's report concludes that while retailers continue to adapt and refine their fraud prevention strategies, it's a delicate balancing act. The trick is for "retailers to implement solutions that have [a] minimal impact on the consumer experience," the report noted. "Brand loyalty can be fragile and competition continues to grow, so holding onto consumers is often a key to long-term success."
Then there's security and asset protection. Last October, I attended a session at the Council of Supply Chain Management Professionals' EDGE 2024 conference that focused on security and safety. In that session, Lee Ambrose, vice president of business development for Remote Security Solutions (RSS), discussed advanced strategies and technologies for violence prevention. But he also touched on asset/transit protection and specific solutions that can help companies discourage theft.
As an example, Ambrose cited his company's transit surveillance unit (TSU)—a portable monitoring device that can be installed on trailers to protect in-transit freight. According to the company's website, the TSU uses AI (artificial intelligence) detection, security cameras, and two-way communication to deter criminal activity, providing real-time detection and notification when unauthorized persons attempt to enter the trailer. It claims the device has a deterrence rate of 98%.
In the end, sometimes there is only so much a company can do to mitigate fraud/theft. But we are fortunate to have resources we can turn to if we need help. It's an uphill battle, but one that we will keep on fighting.
Most retail, wholesale, and manufacturing businesses are focused on fundamentally restructuring their supply chains to stay ahead of economic uncertainty. That’s according to results of the second annual State of Supply Chain report from supply chain solutions platform provider Relex Solutions, released Tuesday.
Relex surveyed nearly 600 professionals from retail, consumer packaged goods (CPG), and wholesale businesses across seven countries and found that 60% said they are overhauling their supply chains due to tariff uncertainty and market volatility.
Respondents said they are grappling with unpredictable consumer demand, escalating trade tensions, and unreliable supplier networks. More than half (52%) said demand volatility is their biggest challenge, forcing them to rethink inventory strategies in real time as shifting spending habits disrupt supply chains. In addition, 47% of businesses pointed to global trade disruptions and rising tariffs as a growing threat—with tariff volatility fueling concerns over higher costs and sourcing bottlenecks—and43% said they struggle with a lack of real-time data and visibility, making it harder to adapt to sudden shifts in demand, labor shortages, and transportation delays.
To counter those challenges, companies said they are making “bold operational shifts,” according to the study. Many are expanding their supplier networks, moving sourcing closer to home, and accelerating automation investments. Among retailers, 62% said they are addressing cost pressures through a combination of efficiency improvements and price adjustments, while 50% said they are actively broadening supplier bases to safeguard against economic and geopolitical instability.
“Supply chains are in a pressure cooker—between tariffs, demand shifts, and unpredictable disruptions, the outdated and traditional way of operating isn’t sustainable,” Dr. Madhav Durbha, Relex Solutions’ group vice president of CPG & Manufacturing, said in a statement announcing the findings. “Companies that lean into AI, automation, and supplier diversification will not only weather this volatility but emerge stronger. The ones that don’t risk falling behind.”
The full report, Relex State of Supply Chain 2025: Retail and CPG Dynamics, is slated for release in March. The report was conducted by market research firm Researchscape in January 2025.