MCFA, Jungheinrich ink North American manufacturing and distribution agreement
MCFA will act as exclusive distributor of Jungheinrich's branded equipment across the continent, while Jungheinrich will design products that will be manufactured by MCFA.
Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.
Jungheinrich AG and Mitsubishi Caterpillar Forklift America Inc. (MCFA) announced a joint North
American agreement under which MCFA will be the exclusive distributor of Jungheinrich's branded
equipment across the continent starting in January. As part of the deal, Jungheinrich will design
products that will be manufactured by MCFA.
In addition, Jungheinrich will offer some of its Class 1 product line for sale under the Cat
lift-truck brand and Class 3 products under the Mitsubishi lift-truck brand, the companies said in
a joint statement.
The Cat lift-truck line, the companies said, will now focus on sit-down Class 1, 4, and 5
counterbalanced models. The Jungheinrich line will be offered for narrow-aisle Class 2 and 3
products as well as some select Class 1 models typically used in warehousing and distribution
applications, according to the companies. The range of Mitsubishi forklift trucks offered through
North American dealers will not change.
"Sales of Jungheinrich products through the MCFA distribution network open up wonderful
opportunities to the Jungheinrich brand in North America and strengthens our competitive position,
with MCFA benefiting from our warehousing expertise in exchange," said Hans-Georg Frey, chairman of
Jungheinrich's board of management, in a statement.
"Bringing Cat lift trucks and Jungheinrich products together through one distribution network
gives our customers the best of both worlds," said Jeff Rufener, MCFA's vice president of marketing,
in the statement. "Cat Lift Trucks and Jungheinrich are global leaders in their product categories.
Our customers can now pick one or both of the brands to serve their needs, delivered and supported
by MCFA dealers; the industry's best distribution network."
As part of the agreement, Jungheinrich will establish a design center on MCFA's campus in
Houston. The Houston Design Center will focus on development of a new range of warehouse products
designed for and manufactured in North America, and will be staffed by Jungheinrich personnel, the
companies said.
The current Jungheinrich sales and service operations will cease effective Dec. 31, 2009. The
Jungheinrich facility in Richmond, Va., will close in 2010.
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.”
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.
Global trade will see a moderate rebound in 2025, likely growing by 3.6% in volume terms, helped by companies restocking and households renewing purchases of durable goods while reducing spending on services, according to a forecast from trade credit insurer Allianz Trade.
The end of the year for 2024 will also likely be supported by companies rushing to ship goods in anticipation of the higher tariffs likely to be imposed by the coming Trump administration, and other potential disruptions in the coming quarters, the report said.
However, that tailwind for global trade will likely shift to a headwind once the effects of a renewed but contained trade war are felt from the second half of 2025 and in full in 2026. As a result, Allianz Trade has throttled back its predictions, saying that global trade in volume will grow by 2.8% in 2025 (reduced by 0.2 percentage points vs. its previous forecast) and 2.3% in 2026 (reduced by 0.5 percentage points).
The same logic applies to Allianz Trade’s forecast for export prices in U.S. dollars, which the firm has now revised downward to predict growth reaching 2.3% in 2025 (reduced by 1.7 percentage points) and 4.1% in 2026 (reduced by 0.8 percentage points).
In the meantime, the rush to frontload imports into the U.S. is giving freight carriers an early Christmas present. According to Allianz Trade, data released last week showed Chinese exports rising by a robust 6.7% y/y in November. And imports of some consumer goods that have been threatened with a likely 25% tariff under the new Trump administration have outperformed even more, growing by nearly 20% y/y on average between July and September.
Declaring that it is furthering its mission to advance supply chain excellence across the globe, the Council of Supply Chain Management Professionals (CSCMP) today announced the launch of seven new International Roundtables.
The new groups have been established in Mexico City, Monterrey, Guadalajara, Toronto, Panama City, Lisbon, and Sao Paulo. They join CSCMP’s 40 existing roundtables across the U.S. and worldwide, with each one offering a way for members to grow their knowledge and practice professional networking within their state or region. Overall, CSCMP roundtables produce over 200 events per year—such as educational events, networking events, or facility tours—attracting over 6,000 attendees from 3,000 companies worldwide, the group says.
“The launch of these seven Roundtables is a testament to CSCMP’s commitment to advancing supply chain innovation and fostering professional growth globally,” Mark Baxa, President and CEO of CSCMP, said in a release. “By extending our reach into Latin America, Canada and enhancing our European Union presence, and beyond, we’re not just growing our community—we’re strengthening the global supply chain network. This is how we equip the next generation of leaders and continue shaping the future of our industry.”
The new roundtables in Mexico City and Monterrey will be inaugurated in early 2025, following the launch of the Guadalajara Roundtable in 2024, said Javier Zarazua, a leader in CSCMP’s Latin America initiatives.
“As part of our growth strategy, we have signed strategic agreements with The Logistics World, the largest logistics publishing company in Latin America; Tec Monterrey, one of the largest universities in Latin America; and Conalog, the association for Logistics Executives in Mexico,” Zarazua said. “Not only will supply chain and logistics professionals benefit from these strategic agreements, but CSCMP, with our wealth of content, research, and network, will contribute to enhancing the industry not only in Mexico but across Latin America.”
Likewse, the Lisbon Roundtable marks the first such group in Portugal and the 10th in Europe, noted Miguel Serracanta, a CSCMP global ambassador from that nation.