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.
Contract talks between the bargaining committees of the International Longshoremen's Association (ILA)
and waterfront management for ports along the East and Gulf Coasts collapsed yesterday. The stalled talks
raised the unsettling specter of a strike or lockout that could paralyze cargo traffic moving in and out of
13 U.S. ports near the height of the pre-holiday shipping season.
The talks were scheduled to be held from Aug. 22 through Aug. 24 in Delray Beach, Fla., but were suspended
before the end of the first day. No new talks are scheduled. The current collective bargaining agreement expires Sept. 30,
and both the ILA and the United States Maritime Alliance (USMX), which represents ship management, were aiming for a new six-year
agreement.
The union will review management's final proposals, which USMX had put on the table prior to the most recent talks, and take it to a full-wage scale committee meeting scheduled for
early September, according to an ILA spokesman.
In a combative statement, James A. Capo, chairman and CEO of USMX, called the ILA's bargaining stand "uncompromising" and
"contrary to the history of cooperation" that has marked the past 35 years of contract negotiations. Capo charged the ILA with being unwilling to "have a meaningful discussion" about the need to change archaic work rules
that thwart efforts to improve productivity and remove inefficiencies at the ports.
In particular, Capo singled out operations at the Port of New York and New Jersey, which employs more ILA members
than the other 12 East and Gulf Coast ports combined. For example, work rules at the port pay some ILA members for 24
hours of work even if they are only on the job for a few hours a day, he charged. Additionally, one out of every three
ILA members working at the port makes more than $208,000 a year in wages and benefits, according to the USMX statement.
That figure doesn't include workers' portion of $232 million in annual "royalties"—or bonuses—received by dockworkers
at all 13 ports based on the weight of containerized cargo, according to the statement.
The ILA spokesman expressed surprise that the talks broke off so suddenly.
"For some reason, [USMX] came in very heavy handed today after cooperating and having good negotiations over the past three
months," he said.
The breakdown of talks comes a little more than a month after both sides
reported meaningful headway on two key issues—the greater use of automation to replace manual functions at the docks
and the continued jurisdiction of labor to repair and service chassis used by drayage companies.
RISING RETAILER CONCERNS
Retailers have become concerned over a possible work stoppage and have pressed both sides to reach an agreement well
before September 30. In the meantime, there have been discussions among importers to shift cargo deliveries from East to
West Coast ports to avoid any service disruptions. About 20 percent of all apparel, textile, and footwear traffic moves
through the 13 ports stretching from Maine to Texas, according to the trade group the National Retail Federation (NRF).
Jonathan Gold, vice president of supply chain and customs policy for the NRF, said in comments today that an ILA strike or
lockout "would be devastating for the economy" as the retail supply chain enters the peak shipping season.
U.S. retailers generally order and ship their pre-holiday goods during the mid-summer period. Although a work stoppage would
not affect the bulk of holiday shipments, it would still upend the normal flow of goods entering U.S. commerce and could disrupt
residual holiday traffic. U.S. imports from Europe would face the most severe disruptions, although Asian import flows could be
affected as well. About 30 percent of Asian imports enter U.S. commerce through East and Gulf Coast ports.
Brian Dodge, senior vice president, communications and state affairs, for the Retail Industry Leaders Association (RILA), said
in a July 20 e-mail that because shipping routes are generally determined when orders are placed, concerns about service issues
will "reach peak urgency well before Sept. 30." Dodge was unavailable to comment on the latest developments.
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.