Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
Air cargo industry group The International Air Transport Association (IATA) is urging governments to begin planning now with industry stakeholders to create supply chains capable of distributing a future Covid-19 vaccine, warning of “potentially severe” capacity constraints in transporting vaccines by air.
Even in years without major pandemics, air cargo plays a key role in the annual distribution of vaccines through well-established global time- and temperature-sensitive distribution systems, IATA’s director general and CEO, Alexandre de Juniac, said in a release.
But that process will likely be far more complex for a potential coronavirus vaccine, which still has major unknown variables, such as the number of doses, temperature sensitivities, and manufacturing locations. To cope with those challenges, it is clear that the scale of activity will be vast, cold chain facilities will be required, and delivery to every corner of the planet will be needed, IATA said.
According to IATA’s calculations, providing a single vaccine dose to the world’s 7.8 billion people would fill 8,000 747 cargo aircraft. Of course, developed economies with local manufacturing capacity will offset many of those flights through land transportion, but the estimate underlines the size of the challenge.
“Safely delivering Covid-19 vaccines will be the mission of the century for the global air cargo industry. But it won’t happen without careful advance planning. And the time for that is now,” de Juniac said. “We urge governments to take the lead in facilitating cooperation across the logistics chain so that the facilities, security arrangements and border processes are ready for the mammoth and complex task ahead.”
In addition, those challenges come at a time when the air cargo sector is mired at historically low capacity levels, due to coronavirus travel restrictions and travelers’ wariness of boarding airplanes. Those factors have led airlines to ground large numbers of passenger jets, which typically carry some 60% of global air freight volumes as “belly cargo.”
According to IATA, additional challenges will include boosting cargo security to guard valuable vaccine shipments from theft, and easing border restrictions to streamline regulatory approvals, security measures, appropriate handling, and customs clearance.
“Delivering billions of doses of vaccine to the entire world efficiently will involve hugely complex logistical and programmatic obstacles all the way along the supply chain,” Seth Berkley, CEO of Gavi, the Vaccine Alliance, said in a release. “We look forward to working together with government, vaccine manufacturers, and logistical partners to ensure an efficient global roll-out of a safe and affordable Covid-19 vaccine.”
Air freight specialists bulk up pharma networks
Some logistics providers are already preparing for the looming challenge of global vaccine distribution.
DHL Global Forwarding, Deutsche Post DHL Group’s air and ocean freight specialist, today announced a series of technology enhancements to its Life Sciences and Health Care logistics services. The Miami-based company rolled out: a new iteration of its Lane Risk Assessment software tool that incorporates data from sensors and internet of things (IoT) devices; a digitalized version of its Standard Operating Procedures (SOPs) for biopharmaceutical shipments; and a new interface for its DHL LifeTrack tracking portal for temperature controlled shipments.
“At DHL Global Forwarding we partner with our life sciences and healthcare customers to develop ground-breaking technologies to facilitate their logistical needs. Due to the unprecedented challenges unchained by the pandemic and its aftermath, it prompted us to expedite the rollout of these innovations, in order to more quickly support our customers to navigate this fluid environment,” Patricia Cole, global head of temperature management solutions at DHL Global Forwarding, said in a release.
Also, the freight forwarding and logistics provider Kuehne + Nagel today announced recent investments to its global pharmaceutical and healthcare network, saying it has opened airside pharma & healthcare hubs in Brussels, Belgium, and Johannesburg, South Africa. Those facilities support direct tarmac access, which is critical for handling temperature-sensitive products with very low to no stability outside of their stated temperature ranges, the Swiss firm said.
"Today, new pharma & healthcare products tend to be more valuable, more temperature-sensitive, and have additional requirements for storage and transportation conditions,” Yngve Ruud, member of the management board of Kuehne+Nagel, responsible for Air Logistics, said in a release. “Such capabilities and facilities are not easily available globally.The new hubs in Brussels and Johannesburg will ensure that our pharma & healthcare customers can fully rely on Kuehne+Nagel to handle the specific challenges of integrity as well as provide end-to-end visibility and regulatory compliance along the logistics journey of their sensitive products.”
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.