If you want to put satellite tracking technology to the ultimate test, what better way than to monitor four really big cannons moving more than 1,000 miles, by land, by rail and by sea?
Anyone out hiking in the Appalachian foothills near the army depot in Anniston, Ala., on Oct. 21, 2003, would have been greeted by an ominous spectacle: Four enormous Paladin howitzers (tank-like self-propelled cannons) being rolled onto trucks. But this wasn't a typical wartime mobilization; these Paladins weren't shipping out to Iraq. They were embarking on a nine-day trek, during which they would travel 1,200 miles by land, by water (via 175-foot army landing craft) and finally by rail as part of a security demonstration.
That demonstration was being staged to showcase the security capabilities of the Regional Agile Port Intermodal Distribution System (RAPID), a Defense Department offshoot that develops advanced agile high-speed movement and logistics technologies for commercial and military shippers and transporters. Each of the 58,000-pound howitzers had been outfitted with high-tech satellite tracking devices. As the Paladins moved over land from Anniston, Ala., to Charleston, S.C.; then by sea to Philadelphia, and by rail to Letterkenny Army Depot in Chambersburg, Pa., observers located miles away would be tracking their movements.
By organizing the demonstration, its sponsors, the Delaware River Maritime Enterprise Council (DRMEC) and the U.S. Maritime Administration (MARAD), were looking to answer several questions: Was it even possible to keep an eye on cargo like this every step of the journey? Would the tracking technology—in this case, five different commercially available satellite- based tracking devices—work in practice? And in particular, would the technologies stand up to the "intermodal challenge"—surviving multiple handoffs to multiple modes? "When people talk about tracking goods in transit, they don't consider that it goes through these transitional points," says Jim Galley, chief technology officer at NaviTag, maker of one of the devices tested. "So the intermodal aspects and particularly the global intermodal aspects are often an afterthought for tracking devices."
The information transmitted by the tracking devices would be plugged into both the Intelligent Road/Rail Information Server (IRRIS) system used by the U.S. Military Surface Deployment and Distribution Command, and to the RAPID RISK Alert system, a knowledge "tool" that allows crews, cargo owners and others to share real-time information and alerts with law enforcement agencies. In fact, as part of the field test, data generated during the Pennsylvania rail leg of the journey would actually be shared interactively with local law enforcement officials. Participants would have access to information regarding every point of potential hazard along this leg, such as rail bridges and grade-crossing chokepoints, as well as jurisdictions and contacts for state and municipal law enforcement, bomb technicians, emergency responders, hazardous materials teams, terrorism task forces, rail dispatch, rail police, a county emergency management agency and dispatch center, the Environmental Protection Agency and probably Grandma Moses somewhere along the way.
The implications for commercial logistics are obvious: This could have been any kind of cargo, whether a hazardous material that is sensitive by its very nature or simply freight traveling through a region under a heightened security alert. The test results would tell the industry much about both the potential for door-to-door security and the difficulty of achieving it.
A failure to communicate?
The good news was that the tracking and data technology worked, more or less (see sidebar). But that's not to say that this experiment wasn't something of an ordeal. It took mountain-moving amounts of effort to get everyone comfortably in the loop and working together—probably no surprise given the array of players involved: DRMEC, MARAD, the Pennsylvania Department of Community and Economic Development, the Pennsylvania National Guard, the Philadelphia Regional Port Authority, the Military Traffic Management Command, the Letterkenny Army Depot, the Transportation Security Administration and a long, long list of federal, state and local law enforcement agencies.
"Technology [was] not the issue," says Susan Howland, president of the Howland Group, which has acted as project manager for a number of DRMEC systems and port security initiatives, including this one. "Policies to support greater information sharing—that's the key to all this. We need a greater degree of cooperation between the Defense Department, Homeland Security and local government. It's about the willingness to share. … It's not a technology problem, it's a cultural, institutional and people problem."
Certainly there was no lack of advance planning. Innumerable meetings were held, particularly between law enforcement forces and the major stakeholders in the demonstration. Furthermore, a DRMEC team traveled the whole land route by car beforehand, and spoke to those in charge at each point of interest along the way.
All the same, there were hiccups before the shipment even began. The commercial bills of lading were not produced by the transportation office at Anniston until the trucks were actually loaded, something the operations team hadn't anticipated, and which prevented them from entering this crucial information beforehand into an integrated data system hosted by Transentric, which communicated with everyone through the RAPID and IRRIS systems.
Furthermore, the trailer numbers on the paperwork— when it was produced—didn't match what was actually on the trucks used. In two cases, the bill of lading did not match the trailer numbers with the correct Paladin numbers. Then security at Anniston didn't check the paperwork on the cargo as the trucks departed, as this would have caused a delay.
Moving along the interstate highway system from Anniston to Charleston, the truck drivers were supposed to notify Transentric via phone of their actual departure time and their arrival time at Charleston, but none of those calls were made. (Luckily, the operations team was following them and reporting in every step of the way.)
At Charleston, the bar-coded shipping labels that should have been attached to each of the Paladins back at Anniston were attached. After a 650-mile sea journey in heavy rain to Philadelphia aboard the Landing Craft Utility Runnymede, it turned out that one of the Paladins' engines wouldn't start, and it had to be towed off, causing a two-hour delay. Then there was another two-hour delay on the Pennsylvania rail leg when the Norfolk Southern folks handed the train over to the CSX crew at Lurgan, Pa., six miles from the cargo's final destination.
Lessons learned
These setbacks notwithstanding, it seems the DRMEC and many other parties learned valuable lessons from this demonstration. "What we were interested in was this advanced information sharing, where not only did you have visibility over the equipment move but, simultaneously, improved information sharing, which is so critical for homeland security and homeland defense," says Howland. "The people who needed to be aware of sensitive cargo moving through the state were aware of it, and that leads to improved security."
Perhaps the most important lesson, Howland says, was that taking existing technologies and combining them intelligently adds more value than any one new system ever could. "We were not building any new technology or gizmos or satellite systems," she says. "We focused on processes and procedures and getting people to co-operate and share the information." One of the unique aspects of the demonstration, DRMEC says, was the RAPID system's ability to integrate state and municipal law enforcement and state emergency management activities to enhance force protection in support of military operations.
Howland says she was especially interested in what happened when you combined federal-level information with local-level data, or combined information from different government entities. A good example of this was the geographical information system (GIS) information from IRRIS that was fed into the Coast Guard's data system, which helped the Coast Guard enhance the "maritime domain awareness" called for under Homeland Security measures. Information also flowed from the Coast Guard into the IRRIS system. "That enhanced it and showed how states can add capability to the Defense Department systems," Howland says.
Most importantly, the demonstration indicated what steps must be taken if increased security requirements are going to be applied to commercial transportation.
"We need to take down the wall between federal and state enforcement agencies," Howland says. "I think everyone in the commercial sector fully appreciates that the world as we know it changed after 9/11. I think they want to respond, and the technology is out there. It's just a question of knocking down these walls within the government."
mobile solutions: the dish on satellite trackers
Though the October 2003 cargo visibility demonstration wasn't designed to be a worldwide satellite technology smackdown, it nonetheless provided an opportunity to compare performance among five satellite-based real-time tracking devices. And it seems those devices sent decidedly mixed signals.
Each of the Paladin howitzers was outfitted with off-theshelf trackers made by Corp Ten of Baltimore, Md.; SRA/NAL Inc./NAL Research Corp. (SRA/NAL) of Manassas, Va.; NaviTag of Hingham, Mass.; Pole Star Space Applications of London; and WGI/ZIA Systems of Arlington, Va. Technicians then monitored the ability of each tracker to provide information during all three legs of the journey—as the cargo moved via truck from the depot in Anniston, Ala., to the Naval Weapons Station in Charleston, S.C.; via ship from the Port in Charleston to the Port of Philadelphia; and via train from Philly to the depot in Chambersburg, Pa.
All of the technologies tested use active tags, bouncing their signals off satellites in order to locate the cargo. But they used the satellites differently. Some used geosynchronous satellites (ones that rotate with the earth, staying over the same spot), others used satellites that track an orbit independent of the earth's; some used satellites closer to the earth than others. Most required clear sight of the sky in order to triangulate position between two or more satellites, which became a problem when some of the Paladins on the ship to Pennsylvania were positioned in a way such that the satellite signals were blocked.
One—the NaviTag, which can lock onto one visible satellite and then use the Doppler effect (the physical effect that makes a train horn's sound shift when it changes from coming toward you to going away from you)—was able to compensate for that. But that technology had its own problems —the time interval at which the tag sent positioning information could not be varied remotely as requested, from every 15 minutes on land to every 60 minutes at sea. Furthermore, the location information had an accuracy range of only 150 meters; and there were other issues with positioning information being relayed out of order, although DRMEC admits an information processing system would have alleviated that last problem, if only it had had time to set it up before the trial.
The others all had problems as well. The magnetic feet on the Corp Ten devices weren't strong enough to use alone to attach them to the Paladins, and additional securing arrangements had to be cobbled together. The SRA/NAL device had no anti-tamper sensor (although that could have been added). The Pole Star unit doesn't come with a battery power supply and had to be plugged into a cigarette lighter. That device also experienced lengthy, unexplained gaps in data transmissions. The WGI device kept reporting an incorrect alarm, which ran the battery down, leaving it dead until someone could come in and swap it out for a new one. It also reported some ludicrous data points (e.g., 0 latitude and 0 longitude).
The official assessment? All of the devices performed reasonably well, but not perfectly, according to DRMEC's report. "The conclusion is that there isn't a silver bullet out there— no single technology capable of meeting real-time tracking technology requirements for sensitive cargo," says William Shepard, chief operating officer of The Howland Group, which acted as project manager for the demonstration.
But that may be a bit harsh. The bottom line is that the shipment was tracked, most of the time, and pretty accurately. That represents a huge improvement over the usual black hole into which cargo disappears when it leaves the loading bay or port dock.
Actually, one company's technology did work flawlessly. Omaha, Neb.-based Transentric was given the thankless task of tying everyone's data information systems together and making sure they all spoke the same electronic language. There were some startup hurdles, of course, but in the end, Transentric met the challenge of determining the data formats being transmitted by each of the vendors and putting the information into a common format that could be accepted by the Intelligent Road/Rail Information Server (IRRIS) system.
Most of the apparel sold in North America is manufactured in Asia, meaning the finished goods travel long distances to reach end markets, with all the associated greenhouse gas emissions. On top of that, apparel manufacturing itself requires a significant amount of energy, water, and raw materials like cotton. Overall, the production of apparel is responsible for about 2% of the world’s total greenhouse gas emissions, according to a report titled
Taking Stock of Progress Against the Roadmap to Net Zeroby the Apparel Impact Institute. Founded in 2017, the Apparel Impact Institute is an organization dedicated to identifying, funding, and then scaling solutions aimed at reducing the carbon emissions and other environmental impacts of the apparel and textile industries.
The author of this annual study is researcher and consultant Michael Sadowski. He wrote the first report in 2021 as well as the latest edition, which was released earlier this year. Sadowski, who is also executive director of the environmental nonprofit
The Circulate Initiative, recently joined DC Velocity Group Editorial Director David Maloney on an episode of the “Logistics Matters” podcast to discuss the key findings of the research, what companies are doing to reduce emissions, and the progress they’ve made since the first report was issued.
A: While companies in the apparel industry can set their own sustainability targets, we realized there was a need to give them a blueprint for actually reducing emissions. And so, we produced the first report back in 2021, where we laid out the emissions from the sector, based on the best estimates [we could make using] data from various sources. It gives companies and the sector a blueprint for what we collectively need to do to drive toward the ambitious reduction [target] of staying within a 1.5 degrees Celsius pathway. That was the first report, and then we committed to refresh the analysis on an annual basis. The second report was published last year, and the third report came out in May of this year.
Q: What were some of the key findings of your research?
A: We found that about half of the emissions in the sector come from Tier Two, which is essentially textile production. That includes the knitting, weaving, dyeing, and finishing of fabric, which together account for over half of the total emissions. That was a really important finding, and it allows us to focus our attention on the interventions that can drive those emissions down.
Raw material production accounts for another quarter of emissions. That includes cotton farming, extracting gas and oil from the ground to make synthetics, and things like that. So we now have a really keen understanding of the source of our industry’s emissions.
Q: Your report mentions that the apparel industry is responsible for about 2% of global emissions. Is that an accurate statistic?
A: That’s our best estimate of the total emissions [generated by] the apparel sector. Some other reports on the industry have apparel at up to 8% of global emissions. And there is a commonly misquoted number in the media that it’s 10%. From my perspective, I think the best estimate is somewhere under 2%.
We know that globally, humankind needs to reduce emissions by roughly half by 2030 and reach net zero by 2050 to hit international goals. [Reaching that target will require the involvement of] every facet of the global economy and every aspect of the apparel sector—transportation, material production, manufacturing, cotton farming. Through our work and that of others, I think the apparel sector understands what has to happen. We have highlighted examples of how companies are taking action to reduce emissions in the roadmap reports.
Q: What are some of those actions the industry can take to reduce emissions?
A: I think one of the positive developments since we wrote the first report is that we’re seeing companies really focus on the most impactful areas. We see companies diving deep on thermal energy, for example. With respect to Tier Two, we [focus] a lot of attention on things like ocean freight versus air. There’s a rule of thumb I’ve heard that indicates air freight is about 10 times the cost [of ocean] and also produces 10 times more greenhouse gas emissions.
There is money available to invest in sustainability efforts. It’s really exciting to see the funding that’s coming through for AI [artificial intelligence] and to see that individual companies, such as H&M and Lululemon, are investing in real solutions in their supply chains. I think a lot of concrete actions are being taken.
And yet we know that reducing emissions by half on an absolute basis by 2030 is a monumental undertaking. So I don’t want to be overly optimistic, because I think we have a lot of work to do. But I do think we’ve got some amazing progress happening.
Q: You mentioned several companies that are starting to address their emissions. Is that a result of their being more aware of the emissions they generate? Have you seen progress made since the first report came out in 2021?
A: Yes. When we published the first roadmap back in 2021, our statistics showed that only about 12 companies had met the criteria [for setting] science-based targets. In 2024, the number of apparel, textile, and footwear companies that have set targets or have commitments to set targets is close to 500. It’s an enormous increase. I think they see the urgency more than other sectors do.
We have companies that have been working at sustainability for quite a long time. I think the apparel sector has developed a keen understanding of the impacts of climate change. You can see the impacts of flooding, drought, heat, and other things happening in places like Bangladesh and Pakistan and India. If you’re a brand or a manufacturer and you have operations and supply chains in these places, I think you understand what the future will look like if we don’t significantly reduce emissions.
Q: There are different categories of emission levels, depending on the role within the supply chain. Scope 1 are “direct” emissions under the reporting company’s control. For apparel, this might be the production of raw materials or the manufacturing of the finished product. Scope 2 covers “indirect” emissions from purchased energy, such as electricity used in these processes. Scope 3 emissions are harder to track, as they include emissions from supply chain partners both upstream and downstream.
Now companies are finding there are legislative efforts around the world that could soon require them to track and report on all these emissions, including emissions produced by their partners’ supply chains. Does this mean that companies now need to be more aware of not only what greenhouse gas emissions they produce, but also what their partners produce?
A: That’s right. Just to put this into context, if you’re a brand like an Adidas or a Gap, you still have to consider the Scope 3 emissions. In particular, there are the so-called “purchased goods and services,” which refers to all of the embedded emissions in your products, from farming cotton to knitting yarn to making fabric. Those “purchased goods and services” generally account for well above 80% of the total emissions associated with a product. It’s by far the most significant portion of your emissions.
Leading companies have begun measuring and taking action on Scope 3 emissions because of regulatory developments in Europe and, to some extent now, in California. I do think this is just a further tailwind for the work that the industry is doing.
I also think it will definitely ratchet up the quality requirements of Scope 3 data, which is not yet where we’d all like it to be. Companies are working to improve that data, but I think the regulatory push will make the quality side increasingly important.
Q: Overall, do you think the work being done by the Apparel Impact Institute will help reduce greenhouse gas emissions within the industry?
A: When we started this back in 2020, we were at a place where companies were setting targets and knew their intended destination, but what they needed was a blueprint for how to get there. And so, the roadmap [provided] this blueprint and identified six key things that the sector needed to do—from using more sustainable materials to deploying renewable electricity in the supply chain.
Decarbonizing any sector, whether it’s transportation, chemicals, or automotive, requires investment. The Apparel Impact Institute is bringing collective investment, which is so critical. I’m really optimistic about what they’re doing. They have taken a data-driven, evidence-based approach, so they know where the emissions are and they know what the needed interventions are. And they’ve got the industry behind them in doing that.
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.”
That result showed that driver wages across the industry continue to increase post-pandemic, despite a challenging freight market for motor carriers. The data comes from ATA’s “Driver Compensation Study,” which asked 120 fleets, more than 150,000 employee drivers, and 14,000 independent contractors about their wage and benefit information.
Drilling into specific categories, linehaul less-than-truckload (LTL) drivers earned a median annual amount of $94,525 in 2023, while local LTL drivers earned a median of $80,680. The median annual compensation for drivers at private carriers has risen 12% since 2021, reaching $95,114 in 2023. And leased-on independent contractors for truckload carriers were paid an annual median amount of $186,016 in 2023.
The results also showed how the demographics of the industry are changing, as carriers offered smaller referral and fewer sign-on bonuses for new drivers in 2023 compared to 2021 but more frequently offered tenure bonuses to their current drivers and with a greater median value.
"While our last study, conducted in 2021, illustrated how drivers benefitted from the strongest freight environment in a generation, this latest report shows professional drivers' earnings are still rising—even in a weaker freight economy," ATA Chief Economist Bob Costello said in a release. "By offering greater tenure bonuses to their current driver force, many fleets appear to be shifting their workforce priorities from recruitment to retention."