When John T. "Jock" Menzies of the American Logistics Aid Network visited earthquake-ravaged Haiti in March, he had an abstract idea of what he would encounter. Being face to face with the reality was another matter.
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.
When John T. "Jock" Menzies, president of the American Logistics Aid Network (ALAN), visited earthquake-ravaged Haiti in late March, he had an abstract idea of what he would encounter.
Being face to face with the reality was another matter.
The capital of Port-au-Prince and the Western city of Leogane at the quake's epicenter each resembled, to Menzies, a modern-day Dante's Inferno. Large areas of both cities were covered in dust, he said, the residue from pulverized structures, exhaust from burning diesel fuel, and huge rubbish fires set in a desperate effort to incinerate waste that otherwise would have been routed through now-ruined sanitation systems.
Menzies saw streets choked with rubble and makeshift housing—with crude roofs often made out of cloth—erected next to destroyed homes. He witnessed mountains of trash and litter being picked over by humans and animals alike. He saw roads hopelessly clogged by merchant storefronts that had literally been moved off their sidewalk moorings and into the street. Traffic in Port-au-Prince was at a standstill most of days he was there, Menzies noted. At night, the capital's streets would be transformed into ghostly thoroughfares with the movement of stray individuals and motorbikes barely visible through the eerie gloaming.
For Menzies, who returned to the United States March 28 after a weeklong trip to meet with non-governmental agencies (NGOs) working with ALAN, the images were searing. "You know what to expect, but until you touch it and smell it, you just don't get it," he said.
Three months after the Jan. 12 quake that left approximately 230,000 dead and 750,000 homeless, Haiti remains a basket case of near-epic proportions. Water treatment systems lie in ruins and drainage canals have been badly compromised, raising fears that flooding during Haiti's traditional April-May rainy season and possible summer hurricanes to follow might trigger another humanitarian disaster. Nearly 2,000 schools, hospitals, and health centers have been destroyed. About 25 million cubic yards of debris lie scattered, enough rubble to cover Washington, D.C.'s National Mall to a height of 700 feet, according to a report in The Washington Post. To put the magnitude of the damage in perspective, the Washington Monument is 555 feet high.
In addition, Haiti's central government has been, in Menzies' words, "decapitated" both in terms of leadership and infrastructure.
The bureaucratic void has created chaos. For example, the government requires NGOs to submit written reports chronicling the situation and their needs. However, it lacks the resources and manpower to process the paperwork. As a result, NGO representatives must re-hash their findings in face-to-face meetings with government officials often conducted in a linguistic cacophony of English, French, and Creole.
Supply chain getting back on track
After an initially nightmarish start when relief supplies would arrive in Haiti by air and then be abandoned in random locations because there were no consignees to sign for them, the supply chain has made positive strides, Menzies said. Today, goods flow relatively freely into the Port of Haiti and Port-au-Prince International Airport, though airport capacity remains tight relative to the enormous demand, he said. Most shipments are properly signed for and reach their intended destinations, though ground deliveries in the country remain an adventure, Menzies said.
And yet there are anecdotes that remind Menzies of the yawning logistical gaps that still exist. In one refugee camp, medical personnel used their personal credit cards to buy food and water because the relief supplies on hand were inadequate.
For ALAN, which was created in 2005 following Hurricane Katrina to serve as a conduit between the resources of the logistics community and disaster relief agencies needing supply chain support, Haiti was the largest-scale disaster it has yet confronted. Menzies said he has been satisfied with ALAN's response and performance. Still, he acknowledges there were areas that need improvement.
For example, ALAN could be more precise and focused in connecting logistics companies, relief groups, and the needs at hand, he said. Menzies also found that while the leading NGOs had solid knowledge of the nuances of international logistics, the second-tier organizations, for the most part, did not. "One of our jobs is to help point [the secondary groups] in the right direction and support them with the necessary resources," he said.
Menzies knows that, sadly, there will be another time and place for ALAN's services. For now, though, the attention remains focused on Haiti, which he said would not be restored to pre-quake conditions for at least three years. A group called Hands On Disaster Relief (HODR) recently asked ALAN to help find a volunteer with warehouse management and logistics experience to serve as a consultant in Leogane during May. HODR has established a Joint Logistics Base in Leogane, about one hour from Port-au-Prince. The base will support the operations of various relief agencies active in the area, it said.
Menzies and the thousands of relief workers with boots on the ground in Haiti share one common fear: that the world has already put Haiti in the rear-view mirror and in short order, will forget about the misery that still very much plagues its people.
"The attention to disaster relief anywhere in the world quickly falls off," he said. "People will say to themselves, 'Well, we've done enough,' and they then move on to the next issue. It would be a tragedy if that happened here."
how supply chain players can support disaster relief—today and tomorrow
Three months after a devastating earthquake, Haiti remains in terrible crisis. For companies still looking to lend supply chain resources or expertise to the task in Haiti or that want to be ready when the next disaster strikes, John T. "Jock" Menzies, head of the American Logistics Aid Network (ALAN), offers the following suggestions:
Make contact with one of the many agencies active in disaster relief ahead of time, as they have difficulty assimilating spontaneous volunteers at the time of an event. Your state will have a group known as Voluntary Organizations Active in Disaster (VOAD). Go to the National VOAD website, www.NVOAD.org, to find a link to your state VOAD.
Review agency needs as they are posted on the National Donations Management Network (NDMN). The network is accessible through the ALAN website (www.ALANaid.org). After Hurricane Katrina, the Federal Emergency Management Agency (FEMA) established the NDMN as a collection point for donations for VOADs. Since then, the NDMN has been enhanced to allow VOADs to post needs as well. The network approach has been adopted by 46 states and jurisdictions in the United States.
Become familiar with the emergency response structure in your area. Typically, states have an emergency management office or agency. During an emergency, an Emergency Operations Center will be established to serve as the meeting and coordination points for VOAD, state, and federal relief efforts. ALAN will be happy to provide guidance, if requested.
Be prepared yourself. Government and relief agencies are unable to provide for individual needs in the first hours or days after a major disaster. FEMA's website includes a number of helpful preparedness tips.
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."