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.
The Teamsters union said today it has named Sean O'Brien, an international vice president, to succeed Ken Hall as head of the union's small-package division, which represents more than 250,000 UPS Inc. employees in all-important contract talks.
O'Brien, who was recently re-elected to the international role, will oversee negotiations on behalf of about 240,000 workers at UPS and an additional 10,000 to 12,000 workers at UPS Freight, the Atlanta-based company's less-than-truckload (LTL) unit. Both contracts expire in June 2018. It is the largest collective-bargaining agreement in North America.
O'Brien currently serves in dual roles as president of Teamsters Local 25 in Boston, and president of the Teamsters' Joint Council 10, which covers all of New England. He was responsible for negotiating the regional and local supplemental agreements to the 2013 UPS contract that were not covered in the master compact. Three Teamsters locals, including the 9,300-member Local 89 in Louisville, the largest in the UPS' system, rejected their respective supplements, leading union leadership in April 2014 to take the extraordinary step of imposing the national contract on all members, including those in the locals. The master contract, which had already been ratified by most of the Teamster rank and file, sat in limbo for nearly a year until the leadership's action.
Fred Zuckerman, who heads Local 89, which represents workers at UPS' giant Worldport air hub, was narrowly defeated for the General-Presidency by James P. Hoffa in last November's elections. Hoffa won re-election for a fifth time.
Hall, who held the package division post since 2002 during which time he oversaw four UPS contract negotiations, will remain as the union's secretary-treasurer, a position in the union second only to Hoffa's. Hall became embroiled in legal controversy shortly before the election when Joseph Di Genova, an independent investigations officer (IIO), issued a report alleging that Hall obstructed corruption investigations by hiding and destroying thousands of union documents and emails. The Teamsters blasted the report as a politically motivated effort to interfere with the election.
Galen Munroe, a Teamsters spokesman, said the shift in leadership in the package division was unrelated to the legal issues that have swirled around Hall.
In a statement, O'Brien said he will meet with members nationwide to "hear their concerns" about working for UPS, and about the upcoming contract. "There are many challenges facing our members that work at UPS, one of the most profitable companies in America," he said. "Only by having a unified and involved membership can we achieve a contract that rewards our members for their role in making this company so successful."
The Teamsters for a Democratic Union (TDU), a dissident group that often clashes with union leadership, criticized the choice of O'Brien and laid the blame for the selection at Hoffa's feet. In picking O'Brien, Hoffa "has chosen one of the chief architects of the UPS deals that were roundly rejected by the members in 2013," TDU said.
The group added that "harassment is out of control at UPS and management is walking all over the members. UPSers can't afford more of the same, but that's just what O'Brien is promising." A UPS spokesman declined comment.
The two former leaders of the Teamsters' once-mighty freight division, Tyson Johnson and Gordon Sweeton, retired earlier this month after losing their respective election races in November. At its peak, shortly before trucking deregulation in 1980, the freight division consisted of about 400,000 members. In the decades to follow, decimated by trucking bankruptcies, consolidations, and the rise of non-union truckers, the freight division would shrink to between 30,000 and 75,000, depending on the source of the estimates.
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.