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.
Humanitarian logistics efforts were elevated today as disaster response professionals wrestled with a storm the likes of which the nation has never seen.
Tropical storm Harvey, after hammering a large swath of the Texas Gulf Coast on Friday
and Saturday with rain and "Category 4" hurricane winds, continued today to swamp Houston, the fourth
most populous U.S. city, with rainfall that will likely end up being measured in feet rather than inches.
Moving at only 2 to 3 miles per hour as of this morning, Harvey is expected to head out to the
Gulf of Mexico and gather more moisture through evaporation from the Gulf's surface before returning
to Houston and Galveston by mid-week. In the interim, Harvey will douse neighboring Louisiana, including
New Orleans, so heavily that President Trump has declared the state a disaster area so that it qualifies
for federal aid.
What makes Harvey so frightful is its slow-moving nature and its trajectory over a massive body of
water rather than land. Nearly all storms depart after a day or two and then weaken rapidly as they move over land and are deprived of sources of moisture. Harvey, by contrast, is in an elongated meandering phase and will spend the next two days recharging its batteries over the Gulf. Once it returns to Houston and Galveston, Texas, 50 miles from Houston, it may stall there for two or three additional days.
By the time Harvey leaves for good around week's end, it could dump a staggering 50 inches of rain on the Houston area, about as much as it gets in a year. What's more, Houston is a region of flat topography that's prone to flooding and isn't known to have optimal drainage infrastructure. As a result, it may take a while for floodwaters to recede and for recovery efforts to fully begin.
Federal Emergency Management Administrator Brock Long today called Harvey a "landmark event" for
Texas and for the nation. Kathy Fulton, executive director of the American Logistics Aid Network (ALAN), a
nonprofit group that connects logistics resources with disaster relief and recovery efforts, labeled Harvey a
"historic and catastrophic" storm.
The extended rains and flooding, which are swelling waterways, rivers, and bayous and making key
road and rail transport arteries impassable, mean it will take longer for ground transportation to resume,
Fulton said. This hampers response and recovery activities, she said.
ALAN's last communiqué,
issued shortly before midnight Sunday, urged those wanting to help to "donate
and volunteer responsibly so as not to consume supply chain capacity with items that are not needed." Cash donations
made to reputable nonprofit organizations allow them to "purchase exactly what is needed in the right configurations
and quantities, and to help restart the local economy," according to the communiqué.
Dry clothing, food, and assets to be deployed for high-water rescue efforts are in greatest demand right now,
according to state and local officials quoted in news reports.
On Sunday, ALAN said it had coordinated the transportation of cots from San Antonio to Houston and provided
information on sources of swift water rescue teams, drones that can be used for damage assessments, portable medical
clinics, and rotor-powered aircraft for delivery of pharmaceuticals to clinics and hospitals. ALAN said it continues
to request information—which will be kept confidential—on supply chain disruptions.
(More information on requests for aid that ALAN has received can be found
on its website.)
For now, transport providers can do little but wait out Harvey's wrath. The ports of Houston and Galveston
remained closed today, and port officials will assess the situation later in the day and into the evening to
determine if they will stay closed tomorrow. The U.S. Postal Service has suspended regular mail service as well
its Priority Mail Express overnight delivery service until late Wednesday throughout virtually all of Houston.
Atlanta-based UPS Inc. reported this morning that 728 ZIP codes across south Texas, as well as four in Louisiana,
are experiencing service disruptions of one degree or another.
Omaha, Neb.-based rail giant Union Pacific Corp., whose network feeds directly into the affected regions, has
issued embargoes on all traffic destined to Houston and surrounding areas. The railroad said it is not running
scheduled train service to and from Houston at least through Monday, while facility switching in Houston and
surrounding areas will remain suspended for at least another 48 to 72 hours.
According to consultancy FTR, Harvey will "strongly affect" more than 7 percent of U.S. trucking, with about
10 percent of all trucking operations affected during the first week. A portion of the country's trucking network
will be impaired for as long as two weeks, FTR said. After a month, about 2 percent of the national network
and one-quarter of the regional system—skewed heavily towards the Gulf—will be impacted. Regional services will absorb most of the dislocation, FTR said..
"Look for spot [noncontract truckload] prices to jump over the next several weeks, with very strong effects in Texas
and the south central region," Noël Perry, a partner at FTR, said in a statement. "Spot pricing was already up strong,
in double-digit territory. Market participants could easily add 5 percentage points to those numbers."
The supply chain risk management firm Overhaul has landed $55 million in backing, saying the financing will fuel its advancements in artificial intelligence and support its strategic acquisition roadmap.
The equity funding round comes from the private equity firm Springcoast Partners, with follow-on participation from existing investors Edison Partners and Americo. As part of the investment, Springcoast’s Chris Dederick and Holger Staude will join Overhaul’s board of directors.
According to Austin, Texas-based Overhaul, the money comes as macroeconomic and global trade dynamics are driving consequential transformations in supply chains. That makes cargo visibility and proactive risk management essential tools as shippers manage new routes and suppliers.
“The supply chain technology space will see significant consolidation over the next 12 to 24 months,” Barry Conlon, CEO of Overhaul, said in a release. “Overhaul is well-positioned to establish itself as the ultimate integrated solution, delivering a comprehensive suite of tools for supply chain risk management, efficiency, and visibility under a single trusted platform.”
Artificial intelligence (AI) and data science were hot business topics in 2024 and will remain on the front burner in 2025, according to recent research published in AI in Action, a series of technology-focused columns in the MIT Sloan Management Review.
In Five Trends in AI and Data Science for 2025, researchers Tom Davenport and Randy Bean outline ways in which AI and our data-driven culture will continue to shape the business landscape in the coming year. The information comes from a range of recent AI-focused research projects, including the 2025 AI & Data Leadership Executive Benchmark Survey, an annual survey of data, analytics, and AI executives conducted by Bean’s educational firm, Data & AI Leadership Exchange.
The five trends range from the promise of agentic AI to the struggle over which C-suite role should oversee data and AI responsibilities. At a glance, they reveal that:
Leaders will grapple with both the promise and hype around agentic AI. Agentic AI—which handles tasks independently—is on the rise, in the form of generative AI bots that can perform some content-creation tasks. But the authors say it will be a while before such tools can handle major tasks—like make a travel reservation or conduct a banking transaction.
The time has come to measure results from generative AI experiments. The authors say very few companies are carefully measuring productivity gains from AI projects—particularly when it comes to figuring out what their knowledge-based workers are doing with the freed-up time those projects provide. Doing so is vital to profiting from AI investments.
The reality about data-driven culture sets in. The authors found that 92% of survey respondents feel that cultural and change management challenges are the primary barriers to becoming data- and AI-driven—indicating that the shift to AI is about much more than just the technology.
Unstructured data is important again. The ability to apply Generative AI tools to manage unstructured data—such as text, images, and video—is putting a renewed focus on getting all that data into shape, which takes a whole lot of human effort. As the authors explain “organizations need to pick the best examples of each document type, tag or graph the content, and get it loaded into the system.” And many companies simply aren’t there yet.
Who should run data and AI? Expect continued struggle. Should these roles be concentrated on the business or tech side of the organization? Opinions differ, and as the roles themselves continue to evolve, the authors say companies should expect to continue to wrestle with responsibilities and reporting structures.
Shippers today are praising an 11th-hour contract agreement that has averted the threat of a strike by dockworkers at East and Gulf coast ports that could have frozen container imports and exports as soon as January 16.
The agreement came late last night between the International Longshoremen’s Association (ILA) representing some 45,000 workers and the United States Maritime Alliance (USMX) that includes the operators of port facilities up and down the coast.
Details of the new agreement on those issues have not yet been made public, but in the meantime, retailers and manufacturers are heaving sighs of relief that trade flows will continue.
“Providing certainty with a new contract and avoiding further disruptions is paramount to ensure retail goods arrive in a timely manner for consumers. The agreement will also pave the way for much-needed modernization efforts, which are essential for future growth at these ports and the overall resiliency of our nation’s supply chain,” Gold said.
The next step in the process is for both sides to ratify the tentative agreement, so negotiators have agreed to keep those details private in the meantime, according to identical statements released by the ILA and the USMX. In their joint statement, the groups called the six-year deal a “win-win,” saying: “This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coasts ports – making them safer and more efficient, and creating the capacity they need to keep our supply chains strong. This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy the key hub of the global marketplace.”
The breakthrough hints at broader supply chain trends, which will focus on the tension between operational efficiency and workforce job protection, not just at ports but across other sectors as well, according to a statement from Judah Levine, head of research at Freightos, a freight booking and payment platform. Port automation was the major sticking point leading up to this agreement, as the USMX pushed for technologies to make ports more efficient, while the ILA opposed automation or semi-automation that could threaten jobs.
"This is a six-year détente in the tech-versus-labor tug-of-war at U.S. ports," Levine said. “Automation remains a lightning rod—and likely one we’ll see in other industries—but this deal suggests a cautious path forward."
Editor's note: This story was revised on January 9 to include additional input from the ILA, USMX, and Freightos.
Logistics industry growth slowed in December due to a seasonal wind-down of inventory and following one of the busiest holiday shopping seasons on record, according to the latest Logistics Managers’ Index (LMI) report, released this week.
The monthly LMI was 57.3 in December, down more than a percentage point from November’s reading of 58.4. Despite the slowdown, economic activity across the industry continued to expand, as an LMI reading above 50 indicates growth and a reading below 50 indicates contraction.
The LMI researchers said the monthly conditions were largely due to seasonal drawdowns in inventory levels—and the associated costs of holding them—at the retail level. The LMI’s Inventory Levels index registered 50, falling from 56.1 in November. That reduction also affected warehousing capacity, which slowed but remained in expansion mode: The LMI’s warehousing capacity index fell 7 points to a reading of 61.6.
December’s results reflect a continued trend toward more typical industry growth patterns following recent years of volatility—and they point to a successful peak holiday season as well.
“Retailers were clearly correct in their bet to stock [up] on goods ahead of the holiday season,” the LMI researchers wrote in their monthly report. “Holiday sales from November until Christmas Eve were up 3.8% year-over-year according to Mastercard. This was largely driven by a 6.7% increase in e-commerce sales, although in-person spending was up 2.9% as well.”
And those results came during a compressed peak shopping cycle.
“The increase in spending came despite the shorter holiday season due to the late Thanksgiving,” the researchers also wrote, citing National Retail Federation (NRF) estimates that U.S. shoppers spent just short of a trillion dollars in November and December, making it the busiest holiday season of all time.
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
As U.S. small and medium-sized enterprises (SMEs) face an uncertain business landscape in 2025, a substantial majority (67%) expect positive growth in the new year compared to 2024, according to a survey from DHL.
However, the survey also showed that businesses could face a rocky road to reach that goal, as they navigate a complex environment of regulatory/policy shifts and global market volatility. Both those issues were cited as top challenges by 36% of respondents, followed by staffing/talent retention (11%) and digital threats and cyber attacks (2%).
Against that backdrop, SMEs said that the biggest opportunity for growth in 2025 lies in expanding into new markets (40%), followed by economic improvements (31%) and implementing new technologies (14%).
As the U.S. prepares for a broad shift in political leadership in Washington after a contentious election, the SMEs in DHL’s survey were likely split evenly on their opinion about the impact of regulatory and policy changes. A plurality of 40% were on the fence (uncertain, still evaluating), followed by 24% who believe regulatory changes could negatively impact growth, 20% who see these changes as having a positive impact, and 16% predicting no impact on growth at all.
That uncertainty also triggered a split when respondents were asked how they planned to adjust their strategy in 2025 in response to changes in the policy or regulatory landscape. The largest portion (38%) of SMEs said they remained uncertain or still evaluating, followed by 30% who will make minor adjustments, 19% will maintain their current approach, and 13% who were willing to significantly adjust their approach.