The Port of Los Angeles said today it has tentatively received $41 million from the California Air Resources Board (CARB) to develop, along with three private-sector partners, a fuel-cell powered electric network for heavy-duty trucks to ship goods from the port to final destinations.
The funding, which will come out of CARB's California Climate Investments Program and must still be formally approved by the CARB board, would cover half of the cost of the project's first phase. The partners, oil giant Shell, vehicle maker Toyota Motor Corp. and truck manufacturer Kenworth, a unit of Paccar Inc., would kick in $41.4 million in matching grants, bringing the phase's total cost to nearly $82.5 million. Formal approval is expected in the next 30 to 60 days, according to Phillip Sanfield, a port spokesman.
The project includes a large-scale "shore to store" transportation plan and a hydrogen fuel-cell-electric technology framework for freight facilities. The initiative will help reduce emissions by 465 metric tons of Greenhouse Gas, and 0.72 weighted tons of nitrous oxide and particular matter, the port said.
Port Executive Director Gene Seroka said the CARB grant provides "critically needed funding support to develop and commercialize the next generation of clean port equipment and drayage truck, as well as the infrastructure to support it."
The port will develop the project in several phases that will cover southern California, the Central Coast Area, and Merced County, located in the San Joaquin valley in the state's center. The first phase is designed to launch a class of goods-moving vehicles that will reduce emissions in designated communities. Kenworth and Toyota will develop 10 hydrogen fuel-cell-electric Class 8 trucks to move cargo from the Los Angeles ports throughout the Los Angeles basin, as well as to inland locations such as Riverside County, the Port of Hueneme in Oxnard, and eventually to Merced. The trucks will be operated by Toyota Logistics Services, UPS Inc., Total Transportation Services Inc., and Southern Counties Express.
In addition, Shell will develop two heavy-duty hydrogen fueling stations in Wilmington and Ontario, Calif. The stations will join three that are located at Toyota facilities around Los Angeles to form an integrated, five-station heavy-duty hydrogen fueling network. Shell and Toyota will provide multiple sources of hydrogen throughout the region, including over 1 ton of renewable hydrogen per day at one of the heavy-duty stations operated by Shell.
"Toyota believes that zero-emissions fuel-cell-electric technology, and the scalability, throughput speed, and driving range advantages of its hydrogen fuel, has the potential to become the powertrain of the future - and the capabilities of fuel-cell-electric heavy trucks are a big reason why," said Bob Carter, executive vice president of Toyota North America.
Mike Dozier, Kenworth general manager and a PACCAR vice president, said the project allows the port, Toyota and Kenworth to "explore and drive advanced zero-emission technologies that will play a critical role in the clean trucks of the future."
"This award is another recognition that hydrogen is a promising zero-emission solution for the heavy-duty transport sector," added Matthew Tipper, vice president, new fuels at Shell.
The number of container ships waiting outside U.S. East and Gulf Coast ports has swelled from just three vessels on Sunday to 54 on Thursday as a dockworker strike has swiftly halted bustling container traffic at some of the nation’s business facilities, according to analysis by Everstream Analytics.
As of Thursday morning, the two ports with the biggest traffic jams are Savannah (15 ships) and New York (14), followed by single-digit numbers at Mobile, Charleston, Houston, Philadelphia, Norfolk, Baltimore, and Miami, Everstream said.
The impact of that clogged flow of goods will depend on how long the strike lasts, analysts with Moody’s said. The firm’s Moody’s Analytics division estimates the strike will cause a daily hit to the U.S. economy of at least $500 million in the coming days. But that impact will jump to $2 billion per day if the strike persists for several weeks.
The immediate cost of the strike can be seen in rising surcharges and rerouting delays, which can be absorbed by most enterprise-scale companies but hit small and medium-sized businesses particularly hard, a report from Container xChange says.
“The timing of this strike is especially challenging as we are in our traditional peak season. While many pulled forward shipments earlier this year to mitigate risks, stockpiled inventories will only cushion businesses for so long. If the strike continues for an extended period, we could see significant strain on container availability and shipping schedules,” Christian Roeloffs, cofounder and CEO of Container xChange, said in a release.
“For small and medium-sized container traders, this could result in skyrocketing logistics costs and delays, making it harder to secure containers. The longer the disruption lasts, the more difficult it will be for these businesses to keep pace with market demands,” Roeloffs 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.
National nonprofit Wreaths Across America (WAA) kicked off its 2024 season this week with a call for volunteers. The group, which honors U.S. military veterans through a range of civic outreach programs, is seeking trucking companies and professional drivers to help deliver wreaths to cemeteries across the country for its annual wreath-laying ceremony, December 14.
“Wreaths Across America relies on the transportation industry to move the mission. The Honor Fleet, composed of dedicated carriers, professional drivers, and other transportation partners, guarantees the delivery of millions of sponsored veterans’ wreaths to their destination each year,” Courtney George, WAA’s director of trucking and industry relations, said in a statement Tuesday. “Transportation partners benefit from driver retention and recruitment, employee engagement, positive brand exposure, and the opportunity to give back to their community’s veterans and military families.”
WAA delivers wreaths to more than 4,500 locations nationwide, and as of this week had added more than 20 loads to be delivered this season. The wreaths are donated by sponsors from across the country, delivered by truckers, and laid at the graves of veterans by WAA volunteers.
Wreaths Across America
Transportation companies interested in joining the Honor Fleet can visit the WAA website to find an open lane or contact the WAA transportation team at trucking@wreathsacrossamerica.org for more information.