Weather-related disruptions are impacting many global supply chains and the communities they serve. Luckily, organizations like the American Logistics Aid Network (ALAN) are working hard to help coordinate relief efforts.
Diane Rand is Associate Editor and has several years of magazine editing and production experience. She previously worked as a production editor for Logistics Management and Supply Chain Management Review. She joined the editorial staff in 2015. She is responsible for managing digital, editorial, and production projects for DC Velocity and its sister magazine, Supply Chain Quarterly.
Weather has always been a challenge for logistics organizations and supply chains; this year is no different. The aftereffects of tornados, extreme heat waves, and Hurricane Beryl—to name a few—have caused havoc around the globe for many people and businesses. And it appears likely that weather-related disasters are only going to increase in the future.
According to the UCAR Center for Science Education, a consortium of 120 North American colleges and universities that focuses on atmospheric research, current climate models predict that the Earth’s global average temperature will rise another 4 degrees Celsius (7.2 degrees Fahrenheit) this century if greenhouse gas levels continue to rise at present rates. And according to recent news reports, the hottest day ever recorded on Earth was Monday, July 22—with the global average temperature reaching a stunning 62.87 degrees Fahrenheit.
With this projected rise in temperature, we will continue to face life-changing weather disruptions as we head into the mid-21st century. Luckily, the logistics and supply chain industries have nonprofit organizations like the American Logistics Aid Network (ALAN) they can partner with to help bring relief to disaster survivors around the world.
I had the pleasure of meeting Kathy Fulton, executive director of ALAN, at the Council of Supply Chain Management Professionals’ (CSMCP) annual EDGE conference several years ago. At the time, I was unfamiliar with ALAN and its mission, which is “to deliver hope to disaster survivors across the globe.” After speaking with Fulton and learning more about the organization, I was overwhelmed and inspired by the nonprofit’s origin story, which goes something like this: After watching the struggle to get donated food, water, and medicine into the hands of survivors following Hurricane Katrina in 2005, the supply chain community realized this was a place it could make a difference and stepped up to provide badly needed logistics expertise.
Since Hurricane Katrina, Fulton and her team of dedicated staff have worked tirelessly to spread their mission and partner with more businesses to bring relief to thousands affected by weather-related disasters both here in the U.S. and around the globe. I’m proud that our industry has stepped up to help ALAN and other organizations make lasting impacts to benefit survivors.
In a July 2024 “ALAN in Action” newsletter, Fulton wrote, “There’s a lot of amazing work that the commercial supply chain community does to facilitate humanitarian relief efforts. … We continually thank our lucky stars to have so many amazing supporters as part of our extensive ‘buddy system.’” The nonprofit offers companies two ways to contribute to the ALAN mission—with in-kind donations (providing transportation, warehouse space, material handling equipment, or shipping and packaging materials) or financial gifts.
Those in-kind and financial contributions have made an impressive impact. In 2023, for example, ALAN and its partners responded to 15 different disasters, served more than 65 nonprofits, generated more than $2.3 million of disaster aid (moving, storing, or distributing supplies for relief efforts), and reached 3.1 million people.
In addition to connecting donated supply chain services and money with those in need, ALAN has established itself as an active logistics disaster relief educator and integrator. The nonprofit provides free access to its Supply Chain Intelligence Center, an interactive map that lets users monitor the real-time status of roads, ports, and airports in disaster-stricken areas, and also hosts numerous disaster simulations. But its work is far from over.
As you and your fellow logistics and supply chain professionals work to prepare your supply chains for future disruptions, I encourage you to learn more about ALAN and other nonprofit organizations to see how your company can make a difference in disaster relief.
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”