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Volkswagen fines to fund "clean truck" initiatives

Automaker's pain may turn out to be the logistics industry's gain.

Volkswagen's admission last year that millions of its vehicles had been outfitted with software used to cheat on emissions tests resulted in a big ding to its polished corporate image.

Volkswagen's pain may turn out to be the logistics industry's gain, however, thanks to the company's $15 billion legal settlement with U.S. regulators, according to Reuters. To reduce the impact of the extra greenhouse gases pumped out by dirty VW engines, $2.7 billion of those funds will be earmarked for an "environmental remediation fund" aimed at cutting diesel pollution.


Under terms of the plan, individual states can use the money to replace older vehicles with new models featuring better exhaust scrubbing technology (or to retrofit the older vehicles). Qualifying vehicles include medium- and heavy-duty trucks, ocean-going vessels, freight switchers, airport ground support vehicles, tugboats, ferries, and transit buses.

So, if you notice the air's a little less hazy around your local warehouse, freight yard, or seaport next year, you might want to tip your hat to the next Audi, Porsche, or Volkswagen you pass.

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Digital truck

How digital twins can transform trucking operations

This story first appeared in the September/October issue of Supply Chain Xchange, a journal of thought leadership for the supply chain management profession and a sister publication to AGiLE Business Media & Events’' DC Velocity.

For the trucking industry, operational costs have become the most urgent issue of 2024, even more so than issues around driver shortages and driver retention. That’s because while demand has dropped and rates have plummeted, costs have risen significantly since 2022.

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Featured

Something new for you

Regular online readers of DC Velocity and Supply Chain Xchange have probably noticed something new during the past few weeks. Our team has been working for months to produce shiny new websites that allow you to find the supply chain news and stories you need more easily.

It is always good for a media brand to undergo a refresh every once in a while. We certainly are not alone in retooling our websites; most of you likely go through that rather complex process every few years. But this was more than just your average refresh. We did it to take advantage of the most recent developments in artificial intelligence (AI).

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FTR trucking conditions chart

In this chart, the red and green bars represent Trucking Conditions Index for 2024. The blue line represents the Trucking Conditions Index for 2023. The index shows that while business conditions for trucking companies improved in August of 2024 versus July of 2024, they are still overall negative.

Image courtesy of FTR

Trucking sector ticked up slightly in August, but still negative

Buoyed by a return to consistent decreases in fuel prices, business conditions in the trucking sector improved slightly in August but remain negative overall, according to a measure from transportation analysis group FTR.

FTR’s Trucking Conditions Index improved in August to -1.39 from the reading of -5.59 in July. The Bloomington, Indiana-based firm forecasts that its TCI readings will remain mostly negative-to-neutral through the beginning of 2025.

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Raymond lift truck lifting pallet

The Raymond Corporation

How to handle a pallet

Robotic technology has been sweeping through warehouses nationwide as companies seek to automate repetitive tasks in a bid to speed operations and free up human labor for other activities. Many of those implementations have been focused on picking tasks, a trend driven largely by the need to fill accelerating e-commerce orders. But as the robotic-picking market matures and e-commerce growth levels off, the robotic revolution is shifting behind the picking lines, with many companies investing in pallet-handling robots as a way to keep efficiency gains coming.

“Earlier in this decade and the previous decade, we [saw] a lot of [material handling] transformation around e-commerce and the handling of goods to order,” explains Josh Kivenko, chief marketing officer and senior vice president at Vecna Robotics, which provides autonomous mobile robots (AMRs) for pallet handling and logistics operations. “Now we’re talking about pallets—moving material in bulk behind that line.”

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image of retail worker packing goods in a shopping bag

NRF: Retail sales increased again in September

Retail sales increased again in September as employment grew and inflation and interest rates fell, according to the National Retail Federation (NRF)’s analysisof U.S. Census Bureau data released today.

“While there have been some signs of tightening in consumer spending, September’s numbers show consumers are willing to spend where they see value,” NRF Chief Economist Jack Kleinhenz said in a release. “September sales come amid the recent trend of payroll gains and other positive economic signs. Clearly, consumers continue to carry the economy, and conditions for the retail sector remain favorable as we move into the holiday season.”

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