A group of 19 large U.S. and foreign-flag carriers said late Friday its members will accept container-weight data from all U.S. ports and terminal operators that weigh the boxes at their facilities beforehand. The move helps lift the onus of box weighing from U.S. exporters less than two weeks before they must comply with international rules requiring that each box's "gross mass" be verified before it is placed aboard ship.
The Ocean Carrier Equipment Management Association (OCEMA) said in a statement that ports and terminal operators, using special on-terminal scales, could provide a packed container's gross mass—which encompasses the cargo, the container, and other contents such as the packaging and pallets—as the box moves through their truck gates. The port or terminal operator would then forward the weight information to the carrier on behalf of the shipper. With the certified documentation in hand, the carrier could load the container aboard the vessel.
Shippers using OCEMA's approach would not be required to sign off on each container, the group said.
The container-weight rule, an amendment to the 102-year-old Safety of Life at Sea (SOLAS) treaty, takes effect July 1 and has the force of law in the 171 nations that are members of the International Maritime Organization (IMO), which administers the treaty.
Earlier last week, the U.S. Coast Guard, the agency tasked with enforcing the amendment, told OCEMA that its approach was compliant with the SOLAS mandate, the group said.
The container-weighing amendment was pushed hard by carriers concerned that illegally overweight boxes could lead to improper ship balancing, making a ship prone to structural failures and even to capsizing. Until recently, carriers and a number of ports had insisted it was the exporter's sole responsibility to provide the data. U.S. exporters have argued they cannot provide tare weights of equipment they neither own nor control. As the clock ticks toward the July 1 deadline, carriers and selected ports have come off their stance regarding the exporters' role in performing the weighing procedure.
The two basic approaches being discussed to arrive at gross mass are to weigh the box after its contents have been packed and sealed, or weigh the cargo and other materials prior to loading, and then add the total to the tare weight printed on each box.
The Agriculture Transportation Coalition, which represents U.S. agriculture and forest-products transportation interests, welcomed the proposed solution. However, Peter Friedmann, the group's executive director, said OCEMA fought any changes "tooth and nail." Only a warning from the U.S. Federal Maritime Commission that it might challenge OCEMA if it didn't agree to the modifications moved the needle, Friedmann said in an e-mail yesterday. OCEMA officials were unavailable to comment.
There are still a number of issues to be worked out, among them the procedures for weighing boxes that enter terminals via on-dock rail networks. Another is whether all U.S. ports and marine terminals will go along with the OCEMA approach. A third is the impact on U.S. importers, especially those that own the cargoes. As of two weeks ago, only 15 percent of the IMO-signatory nations have issued guidelines on how their supply chains should implement the amendment, according to ICHCA International, a non-governmental organization (NGO) that specializes in global cargo handling.
U.S. retailing interests are concerned that their shipments could be affected should the amendment's enforcement not be uniform country to country or carrier to carrier.
Correction: In a number of articles, the name of the treaty has been improperly referred to as the "Safety of Lives at Sea." It is the "Safety of Life at Sea" treaty. DC Velocity regrets the errors.
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 U.S. manufacturing sector has become an engine of new job creation over the past four years, thanks to a combination of federal incentives and mega-trends like nearshoring and the clean energy boom, according to the industrial real estate firm Savills.
While those manufacturing announcements have softened slightly from their 2022 high point, they remain historically elevated. And the sector’s growth outlook remains strong, regardless of the results of the November U.S. presidential election, the company said in its September “Savills Manufacturing Report.”
From 2021 to 2024, over 995,000 new U.S. manufacturing jobs were announced, with two thirds in advanced sectors like electric vehicles (EVs) and batteries, semiconductors, clean energy, and biomanufacturing. After peaking at 350,000 news jobs in 2022, the growth pace has slowed, with 2024 expected to see just over half that number.
But the ingredients are in place to sustain the hot temperature of American manufacturing expansion in 2025 and beyond, the company said. According to Savills, that’s because the U.S. manufacturing revival is fueled by $910 billion in federal incentives—including the Inflation Reduction Act, CHIPS and Science Act, and Infrastructure Investment and Jobs Act—much of which has not yet been spent. Domestic production is also expected to be boosted by new tariffs, including a planned rise in semiconductor tariffs to 50% in 2025 and an increase in tariffs on Chinese EVs from 25% to 100%.
Certain geographical regions will see greater manufacturing growth than others, since just eight states account for 47% of new manufacturing jobs and over 6.3 billion square feet of industrial space, with 197 million more square feet under development. They are: Arizona, Georgia, Michigan, Ohio, North Carolina, South Carolina, Texas, and Tennessee.
Across the border, Mexico’s manufacturing sector has also seen “revolutionary” growth driven by nearshoring strategies targeting U.S. markets and offering lower-cost labor, with a workforce that is now even cheaper than in China. Over the past four years, that country has launched 27 new plants, each creating over 500 jobs. Unlike the U.S. focus on tech manufacturing, Mexico focuses on traditional sectors such as automative parts, appliances, and consumer goods.
Looking at the future, the U.S. manufacturing sector’s growth outlook remains strong, regardless of the results of November’s presidential election, Savills said. That’s because both candidates favor protectionist trade policies, and since significant change to federal incentives would require a single party to control both the legislative and executive branches. Rather than relying on changes in political leadership, future growth of U.S. manufacturing now hinges on finding affordable, reliable power amid increasing competition between manufacturing sites and data centers, Savills 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.