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.
A major blizzard is winding up for a strike on the northeast quadrant of the U.S. that could disrupt supply chain operations this week just as health officials begin distributing precious doses of the Covid-19 vaccine and as parcel carriers struggle under the weight of their busiest week of the year.
Set to begin at mid-day Wednesday, the storm could unload a foot of snow over major population centers including Boston, New York, Newark, Philadelphia, Baltimore, and Washington, D.C. At the same time, high winds from the winter nor-easter could pile that snow into deep drifts and cause coastal flooding, according to a forecast from Riskpulse, a Texas-based supply chain risk analytics company.
That scenario would make it the biggest December storm in the region in a decade, dating back to the Boxing Day Blizzard of 2010, which shut down the eastern seaboard from December 24-27, the firm said.
Those impacts could force reduced operations or even closures at major cargo airports like New York’s John F. Kennedy, New Jersey’s Newark, and Pennsylvania’s Philadelphia, as well as the maritime ports of New York, Philadelphia, and Baltimore, Riskpulse said. Road travel could also be snarled, as snow stacks up on interstate highways including long stretches of I-81, I-95, and I-76.
In fact, the National Weather Service says travel is not recommended for a broad swath of territory stretching from the central Appalachians and interior Mid-Atlantic into portions of the Northeast and southern New England. However, forecasters say the storm’s main brunt could vary widely depending whether the precipitation falls as rain or snow. “The greatest uncertainty with the system remains with the rain/snow line. A very slight adjustment to the north or south could mean for vastly different outcomes in local areas,” the federal forecast said.
Wherever it hits, the storm’s timing means it could affect major logistics operations as carriers hustle to deliver the floor of gifts and packages that enter the system during the holiday peak rush. It will arrive right in the middle of the U.S. Postal Service’s busiest week of the holiday mailing and shipping season, which is December 14-21, the agency said.
USPS has already extended its operating hours as it has stretched its resources to handle conditions including pandemic health restrictions, a record number of mail-in ballots during the presidential election, and belt-tightening budget changes enacted by a new postmaster general. “This has been an extraordinary year of unprecedented challenges given the Covid-19 pandemic — and the Postal Service is expecting significant increases in the volume of mail and packages. Sunday delivery has been expanded in select high package volume locations, and the agency already delivers packages on Sundays in most major cities,” USPS said in a release.
The threatening storm would be the latest natural event to ravage the U.S. in an extraordinary year that has already seen the impacts of a warming climate lead to flooding in the midwest, wildfires in California, and a relentless series of hurricanes in the Gulf of Mexico.
Economic activity in the logistics industry expanded in November, continuing a steady growth pattern that began earlier this year and signaling a return to seasonality after several years of fluctuating conditions, according to the latest Logistics Managers’ Index report (LMI), released today.
The November LMI registered 58.4, down slightly from October’s reading of 58.9, which was the highest level in two years. The LMI is a monthly gauge of business conditions across warehousing and logistics markets; a reading above 50 indicates growth and a reading below 50 indicates contraction.
“The overall index has been very consistent in the past three months, with readings of 58.6, 58.9, and 58.4,” LMI analyst Zac Rogers, associate professor of supply chain management at Colorado State University, wrote in the November LMI report. “This plateau is slightly higher than a similar plateau of consistency earlier in the year when May to August saw four readings between 55.3 and 56.4. Seasonally speaking, it is consistent that this later year run of readings would be the highest all year.”
Separately, Rogers said the end-of-year growth reflects the return to a healthy holiday peak, which started when inventory levels expanded in late summer and early fall as retailers began stocking up to meet consumer demand. Pandemic-driven shifts in consumer buying behavior, inflation, and economic uncertainty contributed to volatile peak season conditions over the past four years, with the LMI swinging from record-high growth in late 2020 and 2021 to slower growth in 2022 and contraction in 2023.
“The LMI contracted at this time a year ago, so basically [there was] no peak season,” Rogers said, citing inflation as a drag on demand. “To have a normal November … [really] for the first time in five years, justifies what we’ve seen all these companies doing—building up inventory in a sustainable, seasonal way.
“Based on what we’re seeing, a lot of supply chains called it right and were ready for healthy holiday season, so far.”
The LMI has remained in the mid to high 50s range since January—with the exception of April, when the index dipped to 52.9—signaling strong and consistent demand for warehousing and transportation services.
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).
"After several years of mitigating inflation, disruption, supply shocks, conflicts, and uncertainty, we are currently in a relative period of calm," John Paitek, vice president, GEP, said in a release. "But it is very much the calm before the coming storm. This report provides procurement and supply chain leaders with a prescriptive guide to weathering the gale force headwinds of protectionism, tariffs, trade wars, regulatory pressures, uncertainty, and the AI revolution that we will face in 2025."
A report from the company released today offers predictions and strategies for the upcoming year, organized into six major predictions in GEP’s “Outlook 2025: Procurement & Supply Chain” report.
Advanced AI agents will play a key role in demand forecasting, risk monitoring, and supply chain optimization, shifting procurement's mandate from tactical to strategic. Companies should invest in the technology now to to streamline processes and enhance decision-making.
Expanded value metrics will drive decisions, as success will be measured by resilience, sustainability, and compliance… not just cost efficiency. Companies should communicate value beyond cost savings to stakeholders, and develop new KPIs.
Increasing regulatory demands will necessitate heightened supply chain transparency and accountability. So companies should strengthen supplier audits, adopt ESG tracking tools, and integrate compliance into strategic procurement decisions.
Widening tariffs and trade restrictions will force companies to reassess total cost of ownership (TCO) metrics to include geopolitical and environmental risks, as nearshoring and friendshoring attempt to balance resilience with cost.
Rising energy costs and regulatory demands will accelerate the shift to sustainable operations, pushing companies to invest in renewable energy and redesign supply chains to align with ESG commitments.
New tariffs could drive prices higher, just as inflation has come under control and interest rates are returning to near-zero levels. That means companies must continue to secure cost savings as their primary responsibility.
Specifically, 48% of respondents identified rising tariffs and trade barriers as their top concern, followed by supply chain disruptions at 45% and geopolitical instability at 41%. Moreover, tariffs and trade barriers ranked as the priority issue regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501-1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing.
“Evolving tariffs and trade policies are one of a number of complex issues requiring organizations to build more resilience into their supply chains through compliance, technology and strategic planning,” Jackson Wood, Director, Industry Strategy at Descartes, said in a release. “With the potential for the incoming U.S. administration to impose new and additional tariffs on a wide variety of goods and countries of origin, U.S. importers may need to significantly re-engineer their sourcing strategies to mitigate potentially higher costs.”
A measure of business conditions for shippers improved in September due to lower fuel costs, looser trucking capacity, and lower freight rates, but the freight transportation forecasting firm FTR still expects readings to be weaker and closer to neutral through its two-year forecast period.
Bloomington, Indiana-based FTR is maintaining its stance that trucking conditions will improve, even though its Shippers Conditions Index (SCI) improved in September to 4.6 from a 2.9 reading in August, reaching its strongest level of the year.
“The fact that September’s index is the strongest since last December is not a sign that shippers’ market conditions are steadily improving,” Avery Vise, FTR’s vice president of trucking, said in a release.
“September and May were modest outliers this year in a market that is at least becoming more balanced. We expect that trend to continue and for SCI readings to be mostly negative to neutral in 2025 and 2026. However, markets in transition tend to be volatile, so further outliers are likely and possibly in both directions. The supply chain implications of tariffs are a wild card for 2025 especially,” he said.
The SCI tracks the changes representing four major conditions in the U.S. full-load freight market: freight demand, freight rates, fleet capacity, and fuel price. Combined into a single index, a positive score represents good, optimistic conditions, while a negative score represents bad, pessimistic conditions.
The New Hampshire-based cargo terminal orchestration technology vendor Lynxis LLC today said it has acquired Tedivo LLC, a provider of software to visualize and streamline vessel operations at marine terminals.
According to Lynxis, the deal strengthens its digitalization offerings for the global maritime industry, empowering shipping lines and terminal operators to drastically reduce vessel departure delays, mis-stowed containers and unsafe stowage conditions aboard cargo ships.
Terms of the deal were not disclosed.
More specifically, the move will enable key stakeholders to simplify stowage planning, improve data visualization, and optimize vessel operations to reduce costly delays, Lynxis CEO Larry Cuddy Jr. said in a release.