In Scranton, Pa., home of trucker and third-party logistics (3PL) provider Kane Is Able Inc., Winter Storm Jonas dropped just one inch of snow. Reading, just 100 miles to the south and in Jonas' arc, was slammed with 30 inches.
Yet Kane executives had little time to muse about their relative good fortune. They were too busy helping their employees, equipment, and customers dig out from one of the most powerful storms to ever strike the continental U.S. Before pushing out to sea yesterday, Jonas cut a 1,000-mile swath across the Midwest, Southwest, mid-Atlantic, Northeast, and New England. It dumped more than two inches of snow as far south as Louisiana. Along coastal New Jersey, residents reported storm surges and water damage worse than Superstorm Sandy in October 2012. Record snowfall accumulations were reported at many locations in Maryland, Virginia, Pennsylvania, and New York, states accustomed to big dumps. About 40 inches of snow fell on Frederick, Md., about 50 miles northwest of Washington, D.C.
At Kane, some deliveries scheduled for Saturday were, with the customers' permission, made the day before, according to Alex Stark, the company's senior director, marketing. Some deliveries in southern New Jersey and the Baltimore/Washington area have been delayed until tomorrow to give the region more time to dig out, Stark said in an e-mail.
Supply chain folks with operations in the densely populated region caught two breaks: The storm's intensity diminished by Saturday evening, giving crews of all types a full nonworking day to dig out. In addition, sunny skies and above-freezing temperatures yesterday allowed some of the massive snow pile to begin melting. However, subfreezing overnight temperatures over the next few days will turn many snow-cleared roads to ice, making travel hazardous. Also, the melting snow could trigger massive water runoff, inflicting damage worse than the storm itself.
For now, it appears there has been minimal damage to facilities and infrastructure, leaving the main task for carriers to wait for visibility to clear and get freight moving again. Eastern railroad Norfolk Southern Corp. (NS) issued a late-afternoon update saying its operations in the mid-Atlantic and Northeast continue to be "significantly impacted" by the storm. Operations remain "extremely limited throughout the Northeast corridor, in particular between Wilmington and Baltimore," NS said. Traffic moving within New Jersey has been reduced to allow for recovery efforts, NS said, adding that areas in Virginia, West Virginia, and Pennsylvania are "recovering slowly." Customers should expect delays of 24 to 72 hours on traffic moving through the affected areas, the railroad said.
Intermodal facilities in Harrisburg and in the New York/New Jersey marine-terminal areas remain closed, though other intermodal facilities in the storm-affected areas remain open, NS said.
CSX Corp., the other major Eastern railroad, posted an online update Saturday during the teeth of the storm saying that trains were being held up in the most heavily storm-impacted regions waiting for better weather or because of the unavailability of crews, Areas hit hard included Richmond, Va.; Washington, D.C.; Baltimore; Nashville, Tenn.; Atlanta; and Louisville, Ky., Jacksonville-based CSX said. In Louisville, snow drifts as high as three feet are hampering operations there, the railroad said. Customers should expect delays of up to two days, it said. A CSX spokeswoman said today that Saturday's communique was the most current update available.
UPS Inc. reported no pickups or deliveries in parts of Maryland and Virginia. Atlanta-based UPS' airport gateway operations have remained open, including its "Worldport" global hub in Louisville, according to Susan L. Rosenberg, a company spokeswoman. UPS retained volumes bound for closed businesses, Rosenberg said in an e-mail today. "There will be a few days of recovery, as is the norm with (a) major snow, because the businesses resume on different days," she said. UPS' facilities had power throughout the storm, she said.
FedEx Corp. posted on its website today that Jonas "is still leaving difficult conditions" that are affecting the company's operations. "Unavoidable service delays should be expected due to local road conditions," Memphis-based FedEx said.
FedEx said its "FedEx Express" air and international unit is fully operational. FedEx Ground and FedEx Freight, the company's ground parcel and less-than-truckload (LTL) units, respectively, are providing what the parent termed "partial service" to a large number of ZIP codes in multiple affected states.
The number of container ships waiting outside U.S. East and Gulf Coast ports has swelled from just three vessels on Sunday to 54 on Thursday as a dockworker strike has swiftly halted bustling container traffic at some of the nation’s business facilities, according to analysis by Everstream Analytics.
As of Thursday morning, the two ports with the biggest traffic jams are Savannah (15 ships) and New York (14), followed by single-digit numbers at Mobile, Charleston, Houston, Philadelphia, Norfolk, Baltimore, and Miami, Everstream said.
The impact of that clogged flow of goods will depend on how long the strike lasts, analysts with Moody’s said. The firm’s Moody’s Analytics division estimates the strike will cause a daily hit to the U.S. economy of at least $500 million in the coming days. But that impact will jump to $2 billion per day if the strike persists for several weeks.
The immediate cost of the strike can be seen in rising surcharges and rerouting delays, which can be absorbed by most enterprise-scale companies but hit small and medium-sized businesses particularly hard, a report from Container xChange says.
“The timing of this strike is especially challenging as we are in our traditional peak season. While many pulled forward shipments earlier this year to mitigate risks, stockpiled inventories will only cushion businesses for so long. If the strike continues for an extended period, we could see significant strain on container availability and shipping schedules,” Christian Roeloffs, cofounder and CEO of Container xChange, said in a release.
“For small and medium-sized container traders, this could result in skyrocketing logistics costs and delays, making it harder to secure containers. The longer the disruption lasts, the more difficult it will be for these businesses to keep pace with market demands,” Roeloffs said.
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.