Mitch Mac Donald has more than 30 years of experience in both the newspaper and magazine businesses. He has covered the logistics and supply chain fields since 1988. Twice named one of the Top 10 Business Journalists in the U.S., he has served in a multitude of editorial and publishing roles. The leading force behind the launch of Supply Chain Management Review, he was that brand's founding publisher and editorial director from 1997 to 2000. Additionally, he has served as news editor, chief editor, publisher and editorial director of Logistics Management, as well as publisher of Modern Materials Handling. Mitch is also the president and CEO of Agile Business Media, LLC, the parent company of DC VELOCITY and CSCMP's Supply Chain Quarterly.
A five-year federal transportation funding law hit the books Dec. 4, and freight interests celebrated a fine pre-holiday gift. The $305 billion measure allocated to freight an unprecedented $10.8 billion in funding. It directed the establishment of a multimodal freight policy and required the Department of Transportation to establish a multimodal freight network that identifies the most critical parts of the national freight-moving system. Almost as important—though in a less-tangible way—the process raised freight's profile among lawmakers.
For big trucking, however, the outcome was more muddled. The industry didn't get the proverbial "lump of coal." It scored a big win when Congress ordered the administration to scrub its hated carrier-grading system of scores and analysis for more than two years, though the raw data used to compile the scores remains in public view. Lawmakers killed language that would have allowed tolls on existing interstate highways. Trucking will also benefit from the funding dedicated to freight transport and intermodal connectivity; a law that bestows goodies on freight would seem to positively impact the sector that moves two-thirds of it.
Yet the industry whiffed on some of the big stuff that would have directly affected its operations. Attempts to raise the maximum permitted weight of vehicles operating on the national highway system never made it. (To add insult to injury, a provision to lengthen twin trailers to 33 feet each from 28 feet was dropped from the $1.1 trillion omnibus appropriations budget for FY 2016.) A highly conditional plan to allow commercial drivers under the age of 21 to operate in interstate commerce fell by the wayside, a victim of mainstream media hysteria mostly fed by misinformation. Congress killed an amendment saying that states couldn't regulate truckers who fall under federal driver hours-of-service regulations, this in the wake of a 2014 federal appeals court ruling that a California law mandating meal and rest breaks for trucking workers superseded a 1995 federal law pre-empting intrastate transport regulations. And Congress again refused to raise federal motor fuels taxes, marking 22 (which will become 27) years with no increases, despite trucking's continued support of tax hikes on diesel fuel.
The irony is that the pro-trucking agenda seemed to be gathering legislative momentum over the summer. So much so, in fact, that it sent the typically volatile highway safety crowd into apoplectic spasms, warning that Congress would have blood on its hands by passing legislation that would put American motoring families at risk. In the end, though, safety advocates, which teamed with U.S. railroads to present truckers with formidable opposition, carried much of the day. As the tide goes out, it seems clear the Association of American Railroads continues to outmaneuver big truck interests. It is well financed and well connected, and it speaks with a unified voice. It has the influential megabillionaire Warren E. Buffett, whose holding company Berkshire Hathaway Inc., owns BNSF Railway, as its ace in the hole.
By contrast, the American Trucking Associations (ATA), which represents large for-hire fleets, is a conglomeration of 50 state trucking groups that find themselves at odds with each other and with the mother ship. During the process, ATA couldn't get on the same page with its key members. For example, the organization supported the provision calling for longer twin-trailers. Yet a large number of big truckload carriers, the core of its constituency, opposed it.
One D.C. insider criticized ATA for failing to build bridges with other transport trade associations. Even finding common ground with the railroads would be helpful—as difficult as that may be, the insider said.
In a city where, like it or not, the phrase "go along to get along" still resonates, the group may need to rethink how it tackles legislative issues, especially when it comes to the 800-pound gorilla known as the "Highway Bill." It has five years to work on it.
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.
As the hours tick down toward a “seemingly imminent” strike by East Coast and Gulf Coast dockworkers, experts are warning that the impacts of that move would mushroom well-beyond the actual strike locations, causing prevalent shipping delays, container ship congestion, port congestion on West coast ports, and stranded freight.
However, a strike now seems “nearly unavoidable,” as no bargaining sessions are scheduled prior to the September 30 contract expiration between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) in their negotiations over wages and automation, according to the transportation law firm Scopelitis, Garvin, Light, Hanson & Feary.
The facilities affected would include some 45,000 port workers at 36 locations, including high-volume U.S. ports from Boston, New York / New Jersey, and Norfolk, to Savannah and Charleston, and down to New Orleans and Houston. With such widespread geography, a strike would likely lead to congestion from diverted traffic, as well as knock-on effects include the potential risk of increased freight rates and costly charges such as demurrage, detention, per diem, and dwell time fees on containers that may be slowed due to the congestion, according to an analysis by another transportation and logistics sector law firm, Benesch.
The weight of those combined blows means that many companies are already planning ways to minimize damage and recover quickly from the event. According to Scopelitis’ advice, mitigation measures could include: preparing for congestion on West coast ports, taking advantage of intermodal ground transportation where possible, looking for alternatives including air transport when necessary for urgent delivery, delaying shipping from East and Gulf coast ports until after the strike, and budgeting for increased freight and container fees.
Additional advice on softening the blow of a potential coastwide strike came from John Donigian, senior director of supply chain strategy at Moody’s. In a statement, he named six supply chain strategies for companies to consider: expedite certain shipments, reallocate existing inventory strategically, lock in alternative capacity with trucking and rail providers , communicate transparently with stakeholders to set realistic expectations for delivery timelines, shift sourcing to regional suppliers if possible, and utilize drop shipping to maintain sales.