Merriam-Webster's Dictionary defines transparent as "honest and open; not secretive; free from pretense and deceit." Keep this in mind as you consider the following story about events taking place in the air transport world.
Since Jan. 26, 2012, the U.S. Department of Transportation (DOT) has required airlines to post total airfares on their websites and in their promotional materials. This has been something of a double-edged sword for the consumer. On the one hand, this lets prospective passengers know exactly what they will be paying for a ticket on a given airline between two points. All fees are included. On the other hand, the precise amounts of the government fees, taxes, and other charges are hidden. Still, to the average traveler, I believe this is the preferable method of pricing. If you are taking the family to Disney World, you just want to know how much it's going to cost you - total. It is something akin to buying gas for your car. While I may have some academic interest in the amount of the fuel taxes, I really only care about what a particular station is charging per gallon.
Fast forward to March 6, 2014. On that day, the Transparent Airfares Act of 2014 was introduced in Congress (H.R 4156). This bill "declares that it shall not be an unfair or deceptive practice for an air carrier or covered entity to state the base airfare in an advertisement or solicitation for passenger air transportation if it clearly and separately discloses (1) the government-imposed taxes and fees for the air transportation and its total cost." In other words, if this bill becomes law, an airline can advertise the base fare, then when the time to pay arrives, add various taxes and fees.
Using a current example, if I want to travel from Memphis, Tenn., to Jacksonville, Fla., on June 30, returning on July 2, the advertised airfare is $740.50, including applicable taxes and fees. Under the provisions of H.R. 4156, Delta could advertise the fare as $652.09, and when I'm ready to confirm the purchase, I will learn there are several "gotchas."
Since a roundtrip from Memphis to Jacksonville requires an aircraft change in Atlanta, the trip will involve four segments and incur 12 different taxes and fees. First, there is the federal tax of $48.91. Then, there is the Sept. 11th Security Fee. There are four of these, at $2.50 each. Each segment has a Flight Segment Tax of $4, and finally, there are three U.S. Passenger Facility Charges of $4.50, for a total of $88.41 or almost 14 percent, to be added to the base fare. This, of course, does not include charges for checked baggage, room for both legs, and moisturized turkey sandwiches. And heaven help you if you have a last-minute change in your plans.
Airlines have found that the road to profitability is through their various fees, and under the proposed pricing scheme, comparisons in trip costs will be much more difficult than they are today. A quick look at the website of one of the more fee-dependent airlines, Spirit, reveals that a trip from Dallas to Miami has a base fare of $117, but adding such nonoptional fees as those for fuel costs, carry-on baggage, and other services results in a total price of $188, or 60 percent more than the base fare. Spirit even has a charge for "unintended consequences of DOT regulations."
I will leave it to the reader to decide which method is "free from pretense and deceit."
The San Francisco tech startup Vooma has raised $16 million in venture funding for its artificial intelligence (AI) platform designed for freight brokers and carriers, the company said today.
The backing came from a $13 million boost in “series A” funding led by Craft Ventures, which followed an earlier seed round of $3.6 million led by Index Ventures with participation from angel investors including founders and executives from major logistics and technology companies such as Motive, Project44, Ryder, and Uber Freight.
Founded in 2023, the firm has built “Vooma Agents,” which it calls a multi-channel AI platform for logistics. The system uses various agents to operate across email, text and voice channels, allowing for automation in workflows that were previously unaddressable by existing systems. According to Vooma, its platform lets logistics companies scale up their operations by reducing time spent on tedious and manual work and creating space to solve real logistical challenges, while also investing in critical relationships.
The company’s solutions include: Vooma Quote, which identifies quotes and drafts email responses, Vooma Build, a data-entry assistant for load building, and Vooma Voice, which can make and receive calls for brokers and carriers. Additional options are: Vooma Insights and the future releases of Vooma Agent and Vooma Schedule.
“The United States moves approximately 11.5 billion tons of truckloads annually, and moving freight from point A to B requires hundreds of touchpoints between shippers, brokers and carriers,” Vooma co-founder, who is the former CEO of ASG LogisTech, said in a release. “By introducing AI that fits naturally into existing systems, workflows and communication channels used across the industry, we are meaningfully reducing the tasks people dislike and freeing up their time and headspace for more meaningful and complex challenges.”
The Dutch ship building company Concordia Damen has worked with four partner firms to build two specialized vessels that will serve the offshore wind industry by transporting large, and ever growing, wind turbine components, the company said today.
The first ship, Rotra Horizon, launched yesterday at Jiangsu Zhenjiang Shipyard, and its sister ship, Rotra Futura, is expected to be delivered to client Amasus in 2025. The project involved a five-way collaboration between Concordia Damen and Amasus, deugro Danmark, Siemens Gamesa, and DEKC Maritime.
The design of the 550-foot Rotra Futura and Rotra Horizon builds on the previous vessels Rotra Mare and Rotra Vente, which were also developed by Concordia Damen, and have been operating since 2016. However, the new vessels are equipped for the latest generation of wind turbine components, which are becoming larger and heavier. They can handle that increased load with a Roll-On/Roll-Off (RO/RO) design, specialized ramps, and three Liebherr cranes, allowing turbine blades to be stowed in three tiers, providing greater flexibility in loading methods and cargo configurations.
“For the Rotra Futura and Rotra Horizon, we, along with our partners, have focused extensively on energy savings and an environmentally friendly design,” Concordia Damen Managing Director Chris Kornet said in a release. “The aerodynamic and hydro-optimized hull design, combined with a special low-resistance coating, contributes to lower fuel consumption. Furthermore, the vessels are equipped with an advanced Wärtsilä main engine, which consumes 15 percent less fuel and has a smaller CO₂ emission footprint than current standards.”
Roadrunner CEO Chris Jamroz made the move through Prospero Staff Capital, a private equity vehicle that he co-leads with the investor Ted Kellner, buying the stake from Elliott Investment Management L.P.
Kellner, the founder and partner of Fiduciary Management Inc. with over $17 billion in assets under management, and currently CEO of T&M Partners and Chairman of Fiduciary Real Estate Development, is a long-term investor in Roadrunner. Prospero Staff Capital is part of LyonIX Holdings, Jamroz’ investment company with holdings in transportation and logistics, real estate, infrastructure, and cyber security.
"After comprehensively unwinding the prior management's roll-up strategy to get to a pure-play LTL network, Roadrunner now stands as a premium long-haul carrier," Jamroz said in a release. "Today marks the beginning of our growth phase, driven by new capital, strategic investments, and acquisitions. We're committed to organic expansion, as well as pursuing focused and opportunistic M&A to strengthen our market position."
Specifically, loaded import volume rose 11.2% in October 2024, compared to October 2023, as port operators processed 81,498 TEUs (twenty-foot containers), versus 73,281 TEUs in 2023, the port said today.
“Overall, the Port’s loaded import cargo is trending towards its pre-pandemic level,” Port of Oakland Maritime Director Bryan Brandes said in a release. “This steady increase in import volume in 2024 is an encouraging trend. We are also seeing a rise in US agricultural exports through Oakland. Thanks to refrigerated warehousing on Port property near the maritime terminals and convenient truck and rail access, we are well-positioned to continue to grow ag export cargo volume through the Oakland Seaport.”
Looking deeper into its October statistics, loaded exports declined 3.4%, registering 66,649 TEUs in October 2024, compared to 68,974 TEUs in October 2023. Despite that slight decline, the category has grown 6.7% between January and October 2024 compared to the same period last year.
In fact, Oakland’s exports have been declining over the past decade, a long-term trend that is largely due to the reduction in demand for recycled paper exports. However, agricultural exports have made up for some of the export losses from paper, the port said.
For the fourth quarter, empty exports bumped up 30.6%. Port operators processed 29,750 TEUs in October 2024, compared to 22,775 TEUs in October 2023. And empty imports increased 15.3%, with 15,682 TEUs transiting Port facilities in October 2024, in contrast to 13,597 TEUs in October 2023.
A growing number of organizations are identifying ways to use GenAI to streamline their operations and accelerate innovation, using that new automation and efficiency to cut costs, carry out tasks faster and more accurately, and foster the creation of new products and services for additional revenue streams. That was the conclusion from ISG’s “2024 ISG Provider Lens global Generative AI Services” report.
The most rapid development of enterprise GenAI projects today is happening on text-based applications, primarily due to relatively simple interfaces, rapid ROI, and broad usefulness. Companies have been especially aggressive in implementing chatbots powered by large language models (LLMs), which can provide personalized assistance, customer support, and automated communication on a massive scale, ISG said.
However, most organizations have yet to tap GenAI’s potential for applications based on images, audio, video and data, the report says. Multimodal GenAI is still evolving toward mainstream adoption, but use cases are rapidly emerging, and with ongoing advances in neural networks and deep learning, they are expected to become highly integrated and sophisticated soon.
Future GenAI projects will also be more customized, as the sector sees a major shift from fine-tuning of LLMs to smaller models that serve specific industries, such as healthcare, finance, and manufacturing, ISG says. Enterprises and service providers increasingly recognize that customized, domain-specific AI models offer significant advantages in terms of cost, scalability, and performance. Customized GenAI can also deliver on demands like the need for privacy and security, specialization of tasks, and integration of AI into existing operations.