The Washington State Department of Transportation's decision to learn from the private sector about building resiliency into supply chains has led to the creation of what the state agency calls its Freight System Resiliency Plan.
Peter Bradley is an award-winning career journalist with more than three decades of experience in both newspapers and national business magazines. His credentials include seven years as the transportation and supply chain editor at Purchasing Magazine and six years as the chief editor of Logistics Management.
The snow was heavy even for Washington's Cascade Mountains, where 50 feet a year is not unusual. Back in late January, sections of the mountains received as much as five feet of snow over a five-day period. One result of the heavy snowfall was that highways across the mountains were impassable for several days. Interstate 90, one of the nation's major freight corridors, was closed at the Snoqualmie Pass as a result of the heavy snow and the resulting avalanche danger. Eventually, all three major east-west routes through the mountains had to be shut down.
Most of the time, such road closures and shipping delays are business as usual for truckers, but those particular delays were different. What made them unusual was the way Washington's state highway department directly informed carriers and shippers of current conditions and when they could expect to travel those roads again.
That high level of communication was the result of the Washington State Department of Transportation's decision to learn from the private sector about building resiliency into supply chains. The department worked closely with the Center for Transportation and Logistics at the Massachusetts Institute of Technology (MIT) to develop what the state agency calls its Freight System Resiliency Plan.
The plan's intent, according to a 2007 white paper written by researchers from MIT and managers of the Washington DOT's Freight Systems Division, is to complement emergency response by monitoring, managing, and controlling the state's transportation network assets while working with the private sector to improve the network's resiliency. "The transportation network should not be the bottleneck that is preventing economic recovery," the report's authors wrote. The benefits of the initiative are not limited to Washington's own highways; any government agency could use the multistep process to create a freight resiliency plan, they added.
Barbara Ivanov, director of the Washington DOT Freight Systems Division and one of the white paper's authors, says the idea of developing a freight resiliency plan grew out of a presentation on business resiliency she attended during a Council of Supply Chain Management Professionals annual conference. It's the right thing for her agency and others like it to do, she believes. "After Katrina, anyone in the public sector would have recognized that we have a deep responsibility to be prepared to help our citizens and our economies recover after significant disaster." Ivanov's co-authors were Chris Caplice and James B. Rice of the MIT Center for Transportation and Logistics, and Elizabeth Stratton of the Freight Systems Division.
Ivanov's observation may be right, but public agencies' first responsibility in the wake of a disaster is to respond quickly to protect lives, and they don't always follow that up with facilitating economic recovery after the event. Yet there's good reason for them to get involved in post-disaster recovery. It is no secret that the economic costs of disruptions to freight movement can be substantial. For example, the 1994 Northridge earthquake, which destroyed portions of highways near Los Angeles, created 4,400 hours of truck delays for each day of reconstruction.
Give them what they want
Two-way communication is the linchpin of Washington's freight resiliency initiative. While interviews with carriers played a large part in developing the plan, Ivanov says, discussions with shippers were also important because they helped the agency understand what disruptions might mean for their businesses and what internal capabilities shippers have for recovery.
One of the most effective parts of the plan is a notification system for carriers and shippers. "They want different information than what the public wants and what the news media reports," Ivanov observes. The department created a freight listserv that initially had about 800 companies in the database. That increased to about 3,000 when flooding forced the state to close Route I-5 for four days in December.
The notification system quickly improved as the department learned more about what carriers and shippers needed. "They want predictive information," Ivanov says."They want to know if the highway will be closed until 8 p.m." Messages became shorter, for example, and included links to detour maps.
The researchers also consulted with other public agencies on how to coordinate emergency response with economic recovery efforts—before another disaster comes along. "A county sheriff has tremendous knowledge and expertise in first response, but he does not necessarily have a lot of information about global trade links," Ivanov notes. "The whole point is, you do not want to be meeting the fire chief when your house is burning. The time to know what to do is well in advance. Lots of work has to be done on that in identifying decision makers and identifying core customer needs."
The department has now moved to a second phase of research, focused on identifying the key freight corridors in the state and placing them into a geographic information system (GIS) database.
A move by federal regulators to reinforce requirements for broker transparency in freight transactions is stirring debate among transportation groups, after the Federal Motor Carrier Safety Administration (FMCSA) published a “notice of proposed rulemaking” this week.
According to FMCSA, its draft rule would strive to make broker transparency more common, requiring greater sharing of the material information necessary for transportation industry parties to make informed business decisions and to support the efficient resolution of disputes.
The proposed rule titled “Transparency in Property Broker Transactions” would address what FMCSA calls the lack of access to information among shippers and motor carriers that can impact the fairness and efficiency of the transportation system, and would reframe broker transparency as a regulatory duty imposed on brokers, with the goal of deterring non-compliance. Specifically, the move would require brokers to keep electronic records, and require brokers to provide transaction records to motor carriers and shippers upon request and within 48 hours of that request.
Under federal regulatory processes, public comments on the move are due by January 21, 2025. However, transportation groups are not waiting on the sidelines to voice their opinions.
According to the Transportation Intermediaries Association (TIA), an industry group representing the third-party logistics (3PL) industry, the potential rule is “misguided overreach” that fails to address the more pressing issue of freight fraud. In TIA’s view, broker transparency regulation is “obsolete and un-American,” and has no place in today’s “highly transparent” marketplace. “This proposal represents a misguided focus on outdated and unnecessary regulations rather than tackling issues that genuinely threaten the safety and efficiency of our nation’s supply chains,” TIA said.
But trucker trade group the Owner-Operator Independent Drivers Association (OOIDA) welcomed the proposed rule, which it said would ensure that brokers finally play by the rules. “We appreciate that FMCSA incorporated input from our petition, including a requirement to make records available electronically and emphasizing that brokers have a duty to comply with regulations. As FMCSA noted, broker transparency is necessary for a fair, efficient transportation system, and is especially important to help carriers defend themselves against alleged claims on a shipment,” OOIDA President Todd Spencer said in a statement.
Additional pushback came from the Small Business in Transportation Coalition (SBTC), a network of transportation professionals in small business, which said the potential rule didn’t go far enough. “This is too little too late and is disappointing. It preserves the status quo, which caters to Big Broker & TIA. There is no question now that FMCSA has been captured by Big Broker. Truckers and carriers must now come out in droves and file comments in full force against this starting tomorrow,” SBTC executive director James Lamb said in a LinkedIn post.
The “series B” funding round was financed by an unnamed “strategic customer” as well as Teradyne Robotics Ventures, Toyota Ventures, Ranpak, Third Kind Venture Capital, One Madison Group, Hyperplane, Catapult Ventures, and others.
The fresh backing comes as Massachusetts-based Pickle reported a spate of third quarter orders, saying that six customers placed orders for over 30 production robots to deploy in the first half of 2025. The new orders include pilot conversions, existing customer expansions, and new customer adoption.
“Pickle is hitting its strides delivering innovation, development, commercial traction, and customer satisfaction. The company is building groundbreaking technology while executing on essential recurring parts of a successful business like field service and manufacturing management,” Omar Asali, Pickle board member and CEO of investor Ranpak, said in a release.
According to Pickle, its truck-unloading robot applies “Physical AI” technology to one of the most labor-intensive, physically demanding, and highest turnover work areas in logistics operations. The platform combines a powerful vision system with generative AI foundation models trained on millions of data points from real logistics and warehouse operations that enable Pickle’s robotic hardware platform to perform physical work at human-scale or better, the company says.
Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.
Those negative numbers are nothing new—the TCI has been positive only twice – in May and June of this year – since April 2022, but the group’s current forecast still envisions consistently positive readings through at least a two-year forecast horizon.
“Aside from a near-term boost mostly related to falling diesel prices, we have not changed our Trucking Conditions Index forecast significantly in the wake of the election,” Avery Vise, FTR’s vice president of trucking, said in a release. “The outlook continues to be more favorable for carriers than what they have experienced for well over two years. Our analysis indicates gradual but steadily rising capacity utilization leading to stronger freight rates in 2025.”
But FTR said its forecast remains unchanged. “Just like everyone else, we’ll be watching closely to see exactly what trade and other economic policies are implemented and over what time frame. Some freight disruptions are likely due to tariffs and other factors, but it is not yet clear that those actions will do more than shift the timing of activity,” Vise said.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index indicating the industry’s overall health, a positive score represents good, optimistic conditions while a negative score shows the inverse.
Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.
Broken into geographical regions, the European Union has a robot density of 219 units per 10,000 employees, an increase of 5.2%, with Germany, Sweden, Denmark and Slovenia in the global top ten. Next, North America’s robot density is 197 units per 10,000 employees – up 4.2%. And Asia has a robot density of 182 units per 10,000 persons employed in manufacturing - an increase of 7.6%. The economies of Korea, Singapore, mainland China and Japan are among the top ten most automated countries.
Broken into individual countries, the U.S. ranked in 10th place in 2023, with a robot density of 295 units. Higher up on the list, the top five are:
The Republic of Korea, with 1,012 robot units, showing a 5% increase on average each year since 2018 thanks to its strong electronics and automotive industries.
Singapore had 770 robot units, in part because it is a small country with a very low number of employees in the manufacturing industry, so it can reach a high robot density with a relatively small operational stock.
China took third place in 2023, surpassing Germany and Japan with a mark of 470 robot units as the nation has managed to double its robot density within four years.
Germany ranks fourth with 429 robot units for a 5% CAGR since 2018.
Japan is in fifth place with 419 robot units, showing growth of 7% on average each year from 2018 to 2023.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."