"Once burned, twice learned" appears to be the cliche of the day as West Coast dockworkers and waterfront management closed in late Friday on an extraordinary step to extend their collective bargaining agreement for three years, despite being just halfway through their current compact.
The International Longshore and Warehouse Union (ILWU), which represents about 20,000 workers at 29 ports, said Friday that early tallying indicated the contract extension, which would run until Jan. 1, 2022, would pass with about two-thirds of the members ratifying it. A final tally is expected to be announced later this week. The current five-year compact is set to expire on July 1, 2019.
No maritime stakeholder can recall a situation where a new labor contract has been agreed to, or an existing pact extended, with so much time remaining on the current agreement. Yet the circumstances that led in the February 2015 tentative contract agreement, followed by union ratification that May, may have pre-ordained such a scenario.
The nine-month battle between ILWU and Pacific Maritime Association (PMA), which represents waterfront management, was one of the most contentious in years, though it never resulted in a strike or management lockout. An ILWU work slowdown caused U.S. import traffic to languish on docks and on vessels both berthed and sitting on the water. Exports, many of them perishables shipments, sat rotting in warehouses because no vessels were available to transport them. U.S. importers and exporters re-routed their traffic to East and Gulf Coast ports; some of it never returned to the West Coast.
Only a last-ditch effort by then-Labor Secretary Thomas E. Perez, and a threat to move the talks to Washington, with President Obama possibly getting involved, forced both sides into hammering out an agreement.
Mindful of the extreme animus created by the dispute, as well as concerns that future service disruptions might compel more businesses to avoid the West Coast in favor of the expanded Panama Canal, which enables vessels to sail from Asia to the East Coast and bypass West Coast gateways, PMA approached the ILWU leadership in April 2016 to join talks aimed at extending the contract. ILWU members debated for more than a year before taking a ratification vote, the union said.
Another factor is that no one either side wants to stake out a position that may threaten the strong tonnage gains being reported by virtually all U.S. ports, including Los Angeles, Long Beach, and Oakland, Calif., the three biggest on the West Coast. The gains have been due to a combination of an improving global economy, larger vessels capable of handling more containers, and higher cargo-handling productivity at ports and terminals. The latter element may be the most pivotal, because the 2015 agreement did not introduce any productivity-enhancement measures, unlike the 2002 and 2008 accords. Instead, management's objective in 2014-15 was just to maintain normal operations at the ports.
The Port of Oakland said labor relations have been good and productivity high in the 30 months since the current contract was ratified. "We feel that a decision to extend the contract reflects improving relations and performance up and down the West Coast," said Chris Lytle, the port's executive director. Oakland, which handles more exports than imports, suffered greatly during the dispute because of its large export profile.
The National Retail Federation (NRF), which is the country's largest retailer trade group and has a huge stake in maritime labor affairs, hailed news of the extension. The agreement provides the stability and predictability that NRF's members and other supply chain stakeholders need to move their cargo efficiently through the ports, said Jonathan Gold, vice president of supply chain and customs policy for NRF.
Gold added that "nobody wants to see a repeat of the problems that were experienced in 2014-2015, and this remarkable sign of good faith on the part of both labor and management ensures that such a situation will be avoided."
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.