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.
In a move U.S. ocean exporters said relieves them of the sole burden of certifying the total weight of a container, cargo, and packing material before the box could be laden aboard a vessel, the U.S. Coast Guard said it's acceptable for other parties in the supply chain to help shippers determine and verify container weights and signed off on two approaches under which the exchange of equipment and data can occur.
In a letter sent to the London-based International Maritime Organization (IMO) and disclosed today, the Coast Guard said its enforcement regulations allow multiple entities to "work in combination with the shipper" to certify the weight of export containers. The agency added that stakeholders can be flexible in determining what steps should be taken to meet the July 1 deadline to comply with provisions of an IMO-administered "Safety of Lives at Sea" (SOLAS) treaty requiring shippers to verify the gross mass of a box before it is loaded aboard ship. The amendment, pushed through in 2014 by global container lines that were concerned a vessel with illegally overloaded containers could be damaged or sink, has the force of law for all 170 IMO-member nations.
One of the Coast Guard's acceptable approaches involves a port or terminal weighing the box, dunnage, and cargo, and verifying the weight on behalf of the shipper; that has been suggested by the Port of Charleston, which, like other U.S. ports, already weighs containers to meet Occupational Safety and Health Administration (OSHA) rules. Jim Newsome, CEO of the South Carolina Ports Authority, told a local paper earlier this month that the port could easily supply container-weight data to meet SOLAS requirements since it is already doing so, and that an informal study found its weighing method was within 1.2 percent of the containers' actual weights—well within what the international maritime community deems an acceptable margin for error.
The other approach calls for shippers to provide an accurate weight of the cargoes; the carrier or terminal operator would furnish the container's tare weight. The Agriculture Transportation Coalition, a group of U.S. agricultural and forest-products exporters, supports such a scenario. The group said it has no problem certifying the weight of the cargoes because it already performs the task. However, it said it is unreasonable to require exporters to certify the weight of an empty container, because it neither owns nor maintains the equipment.
The group hailed the Coast Guard's action, saying it calls for collective effort to certify container weights and opens the door for multiple market-driven solutions instead of a one-size-fits-all approach advocated by the Ocean Carrier Equipment Management Association (OCEMA), a group of 19 steamship lines that last month published what it labeled best practices for shippers to submit weight-verification data. The recommendations allowed data to be electronically transmitted either in Electronic Data Interchange (EDI) format through third-party pOréals like INTTRA and GT Nexus, or via the carrier's own pOréal. For e-bookings when the receiving cutoff time is the close of the business day, the data cutoff would be noon that day, according to the OCEMA document.
Though OCEMA said the recommendations weren't binding, it said that if a carrier does not receive the data prior to a specific cutoff time, the container will be "sidelined" until the shipper can arrange for the verification. Any issues arising from the shipper's failure to provide data in a timely manner would be hashed out in accordance with language in the carrier's tariffs and service contracts, according to the OCEMA document.
OCEMA officials were unavailable to comment on the Coast Guard letter. OCEMA noted on its web site that individual carriers can "deviate" from the suggested practices as they "deem appropriate to meet operational or other business requirements."
Terminals operating at such facilities as the Ports of Los Angeles and Long Beach, the nation's busiest port complex, have put exporters on notice that they will not load boxes without documents verifying a container's gross mass, and in some instances may not allow the equipment in the gate.
The Coast Guard communiqué "frees individual ocean carriers to develop, in concert with their customers, means of compliance that make economic and operational sense for both," the Coalition said in a statement today. Noting the agency's action doesn't require carriers to act independently, the coalition urged carriers to do so, adding that it "remains available to facilitate such dialogue."
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.