John Johnson joined the DC Velocity team in March 2004. A veteran business journalist, John has over a dozen years of experience covering the supply chain field, including time as chief editor of Warehousing Management. In addition, he has covered the venture capital community and previously was a sports reporter covering professional and collegiate sports in the Boston area. John served as senior editor and chief editor of DC Velocity until April 2008.
If you've ever had the dubious pleasure of taking a cab ride in Boston, you know what a harrowing experience it can be. If you're lucky, the air conditioning will be working while the taxi idles in one of the city's infamous traffic jams. And if you're really lucky, the shocks will be in working order too, since your driver is likely to hit at least one pothole the size of the Big Dig.
That may be about to change. Since the beginning of the year, 30 taxi cabs in the city have been outfitted with RFID tags. Combined with sensor technology, the tags are expected to help cabbies avoid traffic jams and provide information for a database on the city's worst potholes and ways to avoid them.
It's all part of a project called CarTel, backed by professors and students from the Massachusetts Institute of Technology (MIT). By the end of the year, the group hopes to have RFID tags and sensors on about 400 private cars as well, in an effort to build a more extensive database on potential bottlenecks as well as roads in disrepair. In an ideal world, information could be relayed to highway officials, who would then send a crew out to fix the road. The CarTel project will likely expand to include cab companies in San Francisco and Los Angeles later this year.
The goal of CarTel is to make personalized route recommendations to drivers, based on the driver's personal commute history as well as commute histories of other drivers who are willing to share their information. In addition, the system could help monitor the vehicle's performance by collecting data on emissions and gas mileage. These reports could be combined with historical data, thus highlighting long-term changes in a car's performance. Such a system would be able to provide the driver with early warnings of potential trouble.
It's just one example of how RFID technology, coupled with other technologies like sensors and GPS, is expected to make life on the road a lot easier to handle—and possibly less expensive—in the coming years. In fact, the technology is making its way onto the nation's roadways in a big way. From Boston to Alaska, RFID is showing its potential to provide visibility for cargo and ease congestion due to poor road conditions and isolated events like accidents or a ball game that affect traffic flow.
Early warning
MIT isn't the only university that's investigating ways to use technology to improve traffic patterns and safety. In June, researchers at Rensselaer Polytechnic Institute (RPI) and the New York State Department of Transportation finished installing six solar-powered mobile RFID readers that will monitor traffic flow by reading EXPass tags attached to passing cars. (Motorists use the tags to pay for highway tolls.) RPI began testing last fall with a single RFID reader in Troy, N.Y., and added six more readers this spring, enabling them to collect data for an eightmile stretch of highway in Rochester, N.Y.
Researchers at RPI received a $3.9 million grant from the Federal Highway Administration to fund the program, which could be used in the future to calculate how long it takes traffic to move from one stationary RFID reader to another. Someday, data collected from the system might help to reroute traffic when congestion occurs, or to alert motorists to slow-moving traffic by sending a message to their cell phones or GPS systems.
"We really hope to see if, in fact, the technology can be used to get a better handle on traffic and travel times," says Al Wallace, director of the Center for Infrastructure and Transportation Studies at RPI and a professor of decision sciences and engineering systems at the school. "I happen to think there will be a variety of technologies that will be used [to improve] traffic management. We're not just talking about congestion, but incident management. The better idea we have about traffic behavior, the better job we can do routing for commerce. It's not just the individual driver who benefits, but in the short and long term, commerce could benefit by saving energy."
Indeed, the federal Department of Energy's Clean Cities Program says that U.S. trucks burn about 800 million gallons of diesel fuel each year while idling. Although much of that idling occurs in parking lots while waiting to load and unload, a typical long-haul tractor idles approximately 1,830 hours per year, in part due to congested roadways. Aside from releasing damaging pollutants into the air, with diesel prices hovering near $3 a gallon, idling results in a waste of close to $2.5 billion a year.
Filling the black hole
As much as individual drivers may benefit from RFID-equipped autos and roadways, industry stands to gain even more. Some industries are already benefiting from the use of RFID tags—both active and passive— along U.S. highways. Since January, Horizon Lines, a domestic ocean container shipping and logistics company, has utilized RFID along its shipping lane in Alaska to track the movement of goods for customers like supermarket chain Safeway. Many of the RFID readers are deployed alongside the highway weather stations used by the Alaska Department of Transportation.
The advantage of using RFID—as opposed to GPS technology—is the cost. Although Horizon uses satellite GPSbased solutions to track refrigerated containers containing high-value goods like pharmaceuticals, the cost of deploying GPS technology across its entire container fleet would be prohibitive, says Greg Skinner, applications group manager for Horizon Services Group, a Horizon Lines subsidiary that provides transportation technology and consulting services. "The active RFID solution that we have deployed has a lower cost of ownership in regard to both the tags and the fixed-reader equipment," he says.
Skinner notes that his company has historically had little difficulty tracking cargo while it's at sea, at marine terminals, and on the rails. But when containers hit the highway, they often vanish from sight. To solve that problem, Horizon has outfitted many of its trailers with RFID technology, and new units manufactured overseas are being delivered with built-in active RFID tags.
The tags have been installed on the rear door of Horizon's containers. During the installation process, tags are scanned via a handheld reader, which reads the tag ID (each tag carries a unique serial number) and allows the user to enter the container number. This information is then uploaded into a computer system that marries the container number to the tag number for tracking purposes.
The tag on the container continuously broadcasts its unique serial number. As the tag-equipped container passes a reader, the reader receives and stores the tag's serial number along with the date and time it was read. Horizon's system polls the reader network every five minutes to process captured tag data. As the tag data is processed, the tag ID is transformed to the appropriate container number and a RFID sighting event is created with the container information, shipment information, reader location, and date and time.
The reader network includes the Horizon port facilities, key customer distribution centers, and store fronts, as well as locations along the highway in Alaska.
Safeway and Horizon Lines can both use the data collected by the RFID network to plan labor and operations at their facilities. An RFID reader on the highway about an hour away from a Safeway facility in North Pole, Alaska, helps the retailer track shipments to the store on a regular basis. When a truck carrying tagged cargo passes the location, the reader records the event and automatically notifies Safeway so it can have employees ready to unload the shipment.
Horizon, which hopes to have all of its 23,000 pieces of equipment outfitted with RFID tags by the end of next year, plans to extend the program to its shipping lanes in Puerto Rico and Guam. It is also looking into the possibility of working with state and federal transportation officials to test the feasibility of using the RFID reader infrastructure already in place on highways to create a national network for end-to-end, real-time intermodal container tracking, therefore filling the black hole that now exists.
"Our ultimate goal is to have our entire fleet tagged sometime in 2008," says Skinner. "The other piece we're looking at now is how to get better visibility in the lower 48, and we're talking to the federal government and state Department of Transportation to see what infrastructure is available, like cell towers or container yards."
Horizon sees this as an integral step in solving the missing piece in intermodal visibility. By having better visibility, Horizon could track assets in real time, reduce unnecessary repositioning of containers, address congestion issues, and increase supply chain security.
By gaining better visibility into its containers, especially as they enter and exit container yards, Horizon could also likely reduce the overall size of its fleet, resulting in increased asset utilization.
"We might not have to blanket the entire highway system," says Skinner. "If we target key trouble spots, like certain container yards where we don't get visibility for our equipment, or a certain corridor through Florida that gets lots of truck traffic, we might be able to accomplish the same thing.We have equipment that tends to sit longer at certain locations, and that will fit into how we start to deploy our future [RFID] infrastructure."
Horizon Lines also believes that in the post 9/11 world, much of what it is doing in its Alaska trade lanes will eventually be mandated by the federal government. "We want to be on the leading edge because we believe down the road a lot of what we're doing now operationally will become more of a requirement from a security standpoint, especially for hazardous containers or suspect cargo," says Skinner.
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."