Tom Dragotta has joined RedPrairie as marketing leader. Dragotta has been in marketing for 20 years, most recently as product manager for the Vollrath Co. At RedPrairie, he will be working on new product and market development, lead generation and strategic market planning, especially in the distribution and RFID markets.
FedEx Freight Corp. has named Patrick Reed to the position of executive vice president and chief operating officer. This is a new position, reporting to Douglas Duncan, president and CEO of FedEx Freight Corp. Reed previously served as president and CEO for FedEx Freight East. Larry Miller has been promoted from senior vice president to president and CEO of FedEx Freight East.
Averitt Express Inc., a company that provides freight transportation and supply chain management services, has completed the addition of Southern California, Milwaukee and Cleveland to its coverage area. Averitt now offers its customers in the South direct service to and from these markets.
Eastern Connection, the largest regional express parcel service on the East Coast, has promoted Robert Soucy to vice president of Rapid Response, Eastern Connection's same-day delivery division. Soucy has been with the company for 14 years, most recently as the Northern Region director of sales. In his new position, he will work from the Boston office and concentrate on same-day deliveries in the Massachusetts market.
The Food Marketing Institute has hired Anne-Marie Roerink as director of research. FMI has 1,500 member companies operating 26,000 retail food stores in the United States. FMI's research unit collects and analyzes data on consumer trends, food retail and wholesale operations, growth strategies, competition, store development and technology issues.
Data2Logistics has named Michele Myles as its new national sales manager. Data2Logistics, which is headquartered in Fort Myers, Fla., is a provider of freight audit, payment, information and rail services.
PeopleSoft has completed certification testing of the integration between HighJump Software's Data Collection Advantage 5.0 solution and PeopleSoft's Enterprise Supply Chain Management 8.8. The certification is the first for the latest version of the PeopleSoft product and represents the continuation of a collaboration between the two companies that began in 1996.
TNT Logistics North America has promoted a key business development manager to director, automotive sales. Kerry Zielinski will be responsible for new business development with major automotive manufacturers. He has been with TNT for 12 years.
Transplace Inc., a Texas-based logistics technology and transportation management services provider, has made two key appointments to its management team. Roy Cashman has been named Transplace's chief technology officer, while Vincent Chiodo has joined the sales team as vice president.
Bruce Lovett has been named vice president of marketing for Vastera, a worldwide provider of solutions for global trade. He brings more than 20 years of experience in marketing, product management and strategy formation at hightech companies to his new job.
Glacier Computer has promoted Dan Poisson to vice president of operations. Glacier develops industrial computer systems for harsh environments, such as refrigerated warehouses and distribution centers. Poisson, who has been with Glacier since 2001, will now be responsible for new product development.
CapTech Ventures has partnered with Richmond Cold Storage to create an RFID testing center that will provide services to companies wishing to comply with mandates handed down by Wal-Mart, the Department of Defense and others. The two companies are working primarily with large food suppliers to test effective ways to leverage RFID technology within the food supply chain.
Carter & Burgess, a consulting firm in engineering, architecture and related services, has appointed Ted Speas as a project manager for the Retail & Distribution Division at the company's Fort Worth office. Speas is a licensed mechanical contractor and has over 16 years of experience in food distribution, food and pharmaceutical manufacturing, and general merchandise distribution.
The Council of Logistics Management elected new officers during its annual conference, which was held in Philadelphia in October. The former first vice president, Mark Richards of Associated Warehouses, was elevated to the post of president. The retiring president, Elijah Ray of Standard Corp., becomes immediate past president. Other new members of the Executive Committee are Mary-Lou Quinto of Genentech, first vice president; Rick Blasgen of ConAgra Foods, second vice president; and Richard Jackson of Limited Logistics Services, secretary and treasurer.
Peggy Smith has been promoted to new business development manager for Creative Storage Systems, a supplier of gravity flow storage equipment based in Kennesaw, Ga. In her new role, Smith will be responsible for new account acquisition and will work with logistics and supply chain managers, consultants and engineering companies.
Karen Jones joins DHL as its new vice president of advertising, brand and promotion for DHL Americas. She will concentrate on enhancing the logistics provider's domestic visibility. Jones has over 17 years experience in both her own ad firm and working for major companies, and was most recently director of worldwide brand communications for Hewlett Packard. The hiring coincides with a new advertising campaign that DHL launched in June to build its brand in the United States.
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."