Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
Strict carbon-emissions and fuel-efficiency standards proposed Friday by the Obama administration will lead to a dramatic increase in the average miles per gallon logged by heavy-duty trucks, potentially yielding billions of dollars in fuel savings for shippers and carriers by the middle to the end of next decade, according to a leading environmental group.
The Environmental Defense Fund (EDF) estimated that the tougher fuel and greenhouse-gas caps jointly proposed by the Department of Transportation and the Environmental Protection Agency will spawn the development of higher-efficiency tractor-trailers that will get 9.5 miles per gallon. As of 2010, tractor-trailers, on average, got 5.8 mpg.
Jim Bierfeldt, an EDF spokesman, said neither federal agency has disclosed an estimate on impoved miles-per-gallon efficiency. A Department of Energy-sponsored initiative called the "Super Truck" program supports the development of tractor-trailers that can operate at 10.7 mpg, the environmental advocacy group said. At that level, truck owners would save 5,000 gallons of diesel, cut fuel costs by $20,000 per year, and attain $73,000 in net fuel savings over the life of the truck, EDF said, citing a 2014 White House report. Truck upgrade costs would be recouped in one year, according to the group, again citing administration estimates.
The proposed caps would apply to tractor-trailers, heavy-duty pickup trucks and vans, commercial and school buses, and garbage trucks, but would not affect current efficiency standards for passenger cars and light pickups.
Calling the plan "ambitious yet achievable," EPA and DOT's National Highway Traffic Safety Administration (NHTSA) proposed to extend the current "Phase 1" limits that cover vehicles built between 2014 and 2018. If approved, the proposed "Phase 2" caps would cover heavy-duty trucks built in model years 2021 to 2027, and trailers built between 2018 and 2027.
In an effort to finalize the proposed standards by 2016, EPA and DOT will host two public hearings and collect feedback through a 60-day public comment period, as well as
a series of open-door meetings with interested stakeholders.
The specific limits vary according to truck model and year, but a tractor-trailer built in 2027—when the standard is fully phased in—would cut both fuel use and CO2 emissions by 24 percent compared to current standards, the EPA website shows. That efficiency boost would be 8 percent for trailers, 16 percent for vocational vehicles such as garbage trucks, and 16 percent for heavy pickup trucks.
The suggested standards target medium- and heavy-duty trucks because they account for only 4 percent of U.S.-registered vehicles but generate about one-quarter of all highway fuel use and greenhouse-gas emissions, according to U.S. government data. Worldwide, heavy-duty trucks account for 58 percent of all logistics-related greenhouse gas emissions, according to the World Economic Forum.
To comply, vehicle manufacturers could use technologies such as improved transmissions and engine combustion optimization, while trailer builders could meet the efficiency limits through options such as aerodynamic devices and lighter-weight construction, the EPA said.
Some transportation-industry figures are concerned about the cost of compliance to trucking companies and the financial impact of passing those costs on to shippers.
"The devil is in the details, but we will continue to work with our partners to ensure the final rule is strong but still implementable for our industry," Doug Stotlar, president and CEO of Ann Arbor, Mich.-based Con-way Inc., one of the nation's largest transportation companies, said in a statement.
Michael L. Ducker, president and CEO of FedEx Freight, the less-than-truckload (LTL) unit of Memphis-based FedEx Corp., added in the same statement that the federal government needs to "ensure national harmonization of standards and compliance requirements in order to maximize environmental benefits and fuel cost savings for fleets so as to decrease U.S. dependency on oil."
Bill Graves, president and CEO of the American Trucking Associations (ATA), praised the administration for meeting 14 of ATA's 15 "guiding principles" for meeting the Phase 2 goals. However, Graves said that some of the fuel-efficiency technologies necessary to meet the new targets are not ready to be implemented.
"In 2014, trucking spent nearly $150 billion on diesel fuel alone," Graves said. "So the potential for real cost savings and associated environmental benefits of this rule are there—but fleets will need a wide variety of proven and durable technologies to meet these new standards throughout the various implementation stages."
In response, administration officials downplayed the financial effect of compliance with the new fuel regulations, saying the rapid returns on investment more than justify the expense.
"Once upon a time, to be proenvironment you had to be anti-big-vehicles. This rule will change that," U.S transportation secretary Anthony Foxx said in a release. "In fact, these efficiency standards are good for the environment—and the economy. When trucks use less fuel, shipping costs go down. It's good news all around, especially for anyone with an online shopping habit."
Generative AI (GenAI) is being deployed by 72% of supply chain organizations, but most are experiencing just middling results for productivity and ROI, according to a survey by Gartner, Inc.
That’s because productivity gains from the use of GenAI for individual, desk-based workers are not translating to greater team-level productivity. Additionally, the deployment of GenAI tools is increasing anxiety among many employees, providing a dampening effect on their productivity, Gartner found.
To solve those problems, chief supply chain officers (CSCOs) deploying GenAI need to shift from a sole focus on efficiency to a strategy that incorporates full organizational productivity. This strategy must better incorporate frontline workers, assuage growing employee anxieties from the use of GenAI tools, and focus on use-cases that promote creativity and innovation, rather than only on saving time.
"Early GenAI deployments within supply chain reveal a productivity paradox," Sam Berndt, Senior Director in Gartner’s Supply Chain practice, said in the report. "While its use has enhanced individual productivity for desk-based roles, these gains are not cascading through the rest of the function and are actually making the overall working environment worse for many employees. CSCOs need to retool their deployment strategies to address these negative outcomes.”
As part of the research, Gartner surveyed 265 global respondents in August 2024 to assess the impact of GenAI in supply chain organizations. In addition to the survey, Gartner conducted 75 qualitative interviews with supply chain leaders to gain deeper insights into the deployment and impact of GenAI on productivity, ROI, and employee experience, focusing on both desk-based and frontline workers.
Gartner’s data showed an increase in productivity from GenAI for desk-based workers, with GenAI tools saving 4.11 hours of time weekly for these employees. The time saved also correlated to increased output and higher quality work. However, these gains decreased when assessing team-level productivity. The amount of time saved declined to 1.5 hours per team member weekly, and there was no correlation to either improved output or higher quality of work.
Additional negative organizational impacts of GenAI deployments include:
Frontline workers have failed to make similar productivity gains as their desk-based counterparts, despite recording a similar amount of time savings from the use of GenAI tools.
Employees report higher levels of anxiety as they are exposed to a growing number of GenAI tools at work, with the average supply chain employee now utilizing 3.6 GenAI tools on average.
Higher anxiety among employees correlates to lower levels of overall productivity.
“In their pursuit of efficiency and time savings, CSCOs may be inadvertently creating a productivity ‘doom loop,’ whereby they continuously pilot new GenAI tools, increasing employee anxiety, which leads to lower levels of productivity,” said Berndt. “Rather than introducing even more GenAI tools into the work environment, CSCOs need to reexamine their overall strategy.”
According to Gartner, three ways to better boost organizational productivity through GenAI are: find creativity-based GenAI use cases to unlock benefits beyond mere time savings; train employees how to make use of the time they are saving from the use GenAI tools; and shift the focus from measuring automation to measuring innovation.
According to Arvato, it made the move in order to better serve the U.S. e-commerce sector, which has experienced high growth rates in recent years and is expected to grow year-on-year by 5% within the next five years.
The two acquisitions follow Arvato’s purchase three months ago of ATC Computer Transport & Logistics, an Irish firm that specializes in high-security transport and technical services in the data center industry. Following the latest deals, Arvato will have a total U.S. network of 16 warehouses with about seven million square feet of space.
Terms of the deal were not disclosed.
Carbel is a Florida-based 3PL with a strong focus on fashion and retail. It offers custom warehousing, distribution, storage, and transportation services, operating out of six facilities in the U.S., with a footprint of 1.6 million square feet of warehouse space in Florida (2), Pennsylvania (2), California, and New York.
Florida-based United Customs Services offers import and export solutions, specializing in remote location filing across the U.S., customs clearance, and trade compliance. CTPAT-certified since 2007, United Customs Services says it is known for simplifying global trade processes that help streamline operations for clients in international markets.
“With deep expertise in retail and apparel logistics services, Carbel and United Customs Services are the perfect partners to strengthen our ability to provide even more tailored solutions to our clients. Our combined knowledge and our joint commitment to excellence will drive our growth within the US and open new opportunities,” Arvato CEO Frank Schirrmeister said in a release.
And many of them will have a budget to do it, since 51% of supply chain professionals with existing innovation budgets saw an increase earmarked for 2025, suggesting an even greater emphasis on investing in new technologies to meet rising demand, Kenco said in its “2025 Supply Chain Innovation” survey.
One of the biggest targets for innovation spending will artificial intelligence, as supply chain leaders look to use AI to automate time-consuming tasks. The survey showed that 41% are making AI a key part of their innovation strategy, with a third already leveraging it for data visibility, 29% for quality control, and 26% for labor optimization.
Still, lingering concerns around how to effectively and securely implement AI are leading some companies to sidestep the technology altogether. More than a third – 35% – said they’re largely prevented from using AI because of company policy, leaving an opportunity to streamline operations on the table.
“Avoiding AI entirely is no longer an option. Implementing it strategically can give supply chain-focused companies a serious competitive advantage,” Kristi Montgomery, Vice President, Innovation, Research & Development at Kenco, said in a release. “Now’s the time for organizations to explore and experiment with the tech, especially for automating data-heavy operations such as demand planning, shipping, and receiving to optimize your operations and unlock true efficiency.”
Among the survey’s other top findings:
there was essentially three-way tie for which physical automation tools professionals are looking to adopt in the coming year: robotics (43%), sensors and automatic identification (40%), and 3D printing (40%).
professionals tend to select a proven developer for providing supply chain innovation, but many also pick start-ups. Forty-five percent said they work with a mix of new and established developers, compared to 39% who work with established technologies only.
there’s room to grow in partnering with 3PLs for innovation: only 13% said their 3PL identified a need for innovation, and just 8% partnered with a 3PL to bring a technology to life.
Volvo Autonomous Solutions will form a strategic partnership with autonomous driving technology and generative AI provider Waabi to jointly develop and deploy autonomous trucks, with testing scheduled to begin later this year.
The announcement came two weeks after autonomous truck developer Kodiak Robotics said it had become the first company in the industry to launch commercial driverless trucking operations. That milestone came as oil company Atlas Energy Solutions Inc. used two RoboTrucks—which are semi-trucks equipped with the Kodiak Driver self-driving system—to deliver 100 loads of fracking material on routes in the Permian Basin in West Texas and Eastern New Mexico.
Atlas now intends to scale up its RoboTruck deployment “considerably” over the course of 2025, with multiple RoboTruck deployments expected throughout the year. In support of that, Kodiak has established a 12-person office in Odessa, Texas, that is projected to grow to approximately 20 people by the end of Q1 2025.
Women are significantly underrepresented in the global transport sector workforce, comprising only 12% of transportation and storage workers worldwide as they face hurdles such as unfavorable workplace policies and significant gender gaps in operational, technical and leadership roles, a study from the World Bank Group shows.
This underrepresentation limits diverse perspectives in service design and decision-making, negatively affects businesses and undermines economic growth, according to the report, “Addressing Barriers to Women’s Participation in Transport.” The paper—which covers global trends and provides in-depth analysis of the women’s role in the transport sector in Europe and Central Asia (ECA) and Middle East and North Africa (MENA)—was prepared jointly by the World Bank Group, the Asian Development Bank (ADB), the German Agency for International Cooperation (GIZ), the European Investment Bank (EIB), and the International Transport Forum (ITF).
The slim proportion of women in the sector comes at a cost, since increasing female participation and leadership can drive innovation, enhance team performance, and improve service delivery for diverse users, while boosting GDP and addressing critical labor shortages, researchers said.
To drive solutions, the researchers today unveiled the Women in Transport (WiT) Network, which is designed to bring together transport stakeholders dedicated to empowering women across all facets and levels of the transport sector, and to serve as a forum for networking, recruitment, information exchange, training, and mentorship opportunities for women.
Initially, the WiT network will cover only the Europe and Central Asia and the Middle East and North Africa regions, but it is expected to gradually expand into a global initiative.
“When transport services are inclusive, economies thrive. Yet, as this joint report and our work at the EIB reveal, few transport companies fully leverage policies to better attract, retain and promote women,” Laura Piovesan, the European Investment Bank (EIB)’s Director General of the Projects Directorate, said in a release. “The Women in Transport Network enables us to unite efforts and scale impactful solutions - benefiting women, employers, communities and the climate.”