Susan Lacefield has been working for supply chain publications since 1999. Before joining DC VELOCITY, she was an associate editor for Supply Chain Management Review and wrote for Logistics Management magazine. She holds a master's degree in English.
If yours is a typical shipping operation, shipments probably aren't the only thing flowing out your dock doors each day. Chances are, money is too, in the form of air you've paid to heat or cool.
The causes of the problem aren't hard to understand. With doors opening and closing all day long, loading docks represent a prime escape route for heated and cooled air. And those doors aren't the only area of vulnerability. Think of all the gaps between the dock door and the door of the truck that's parked there for loading or unloading. Those cracks and gaps may seem insignificant, but they're actually a prime source of energy loss. If you added up all those gaps for 10 dock doors, you'd have the equivalent of a 6- by 6-foot hole in your distribution center's wall, says Steve Sprunger, vice president of sales and marketing for dock equipment maker 4Front Engineered Solutions.
In the past, it was easy enough to dismiss the problem as an unavoidable part of dock operations. But times are changing. Today, rising utility costs and societal and corporate pressure to be green are driving companies to take a look at how they can conserve energy at the loading dock.
So what can you do to tighten up your operations? Here are some tips.
Mind the gaps
When it comes to saving energy at the dock, most experts will tell you that shelters and seals are the first line of defense. Dock doors typically stand open for hours on end while trucks are loaded and unloaded, creating enormous potential for energy loss if the opening isn't sealed. Shelters, which cover and surround the top and sides of a trailer, and seals, which work by pressing up against the truck, are designed to prevent air from escaping. If your operation doesn't already have these devices in place, investing in them would be a good place to start.
But it's not enough to simply install these devices; you have to keep them in good working order. Seals and shelters can lose effectiveness over time—whether through normal wear and tear or damage. That's why it's a good idea to regularly inspect seals and shelters and replace old and damaged units.
It's worth noting that the cause of sealing failures isn't always obvious. Sometimes, the fault lies not with the seal, but with the door itself. As Sprunger explains, it's not unusual for a door to get hit and end up with a kink in it. Although the DC often is able to get the door working again, there may be residual damage—like panels that have been knocked out of alignment, creating a gap of a quarter inch or more and compromising the seal. To avoid this, Sprunger recommends installing dock doors that are specifically designed to withstand abuse, like those with impactable bottom panels.
Draft dodging
Although seals and shelters can go a long way toward stemming energy loss, they're not always enough. Even with these devices in place, dock doors can still be drafty. If that's true of your operation, there are a couple of other possibilities to investigate.
One is the so-called "hinge gap." Most over-the-road trailers have doors that hinge open as opposed to rolling up. When the truck backs into the dock, the dock shelter then seals to the inside face of the trailer door, as opposed to the trailer's outside wall. The result is a vertical gap between the outside wall of the door and the outside wall of the trailer, where air can rush in and out, says Walt Swietlik of dock equipment maker Rite-Hite.
Specialized seals designed to close off the trailer hinge gap during loading and unloading can help plug this type of leak. Rite-Hite also offers a dock shelter that has hooks that extend over the hinge, sealing it off from top to bottom.
Another place to check for leaks is the dock leveler, the device that bridges the gap between the truck or trailer door and the loading dock. Oftentimes, gapping occurs at the corners on either side of the dock leveler. As Swietlik puts it, as you look down on the leveler, there are two squares of white space on either side of it.
These gaps can be a significant source of energy loss, according to the experts. That's because unlike the gapping that occurs around dock doors and trailers, these gaps don't disappear once the dock door is closed. "Gaps around the leveler are a 24-hour-a-day concern since the front of the leveler is exposed to the exterior of the building," says Sprunger.
A number of dock equipment companies offer products that mount to the outside of the building and to the dock leveler to seal up those gaps.
Leakage can also occur underneath the dock leveler. Traditional dock levelers are recessed into a pit. If there's any kind of gapping between the leveler and the concrete pit, heated and cooled air can escape through the opening. Investing in an under-leveler seal can help plug this gap.
Open door policy?
When it comes to dock-related energy loss, the problem isn't always with the equipment. Sometimes, it's with the people. Seals won't do much good if dock attendants inadvertently leave doors open or fail to follow the proper procedure for opening dock doors (thus leaving doors open longer than necessary).
If you suspect operator error is a factor in your operation, "interlocking" or "sequencing" the dock operation can help. The use of interlocking equipment—devices that automatically engage when another piece of equipment is set in motion—removes the risk of operator oversight. Mike Earle of inflatable seal maker Pentalift says his company offers seals that can be interlocked with the mechanism that opens overhead doors so that once a door is opened, the seal starts inflating against the truck. This eliminates the chance that the operator or dock attendant will forget to engage the seal.
Sequencing a dock operation is another way to limit the amount of time doors are kept open. With sequencing, a control system or panel automatically sets the order of the dock door opening process. So, for example, a dock attendant must lock the trailer before raising the dock door and then engaging the dock leveler. The equipment will not turn on until the previous step has been completed.
In addition to interlocking and sequencing, there's always the software route. A number of companies offer dock management software that monitors loading dock equipment to make sure a dock door isn't left open. The software notifies the user when a door has been breached and then acknowledges any corrective action taken, says Sprunger of 4Front.
Watts going down?
Opportunities to save energy at the loading dock aren't limited to plugging air leaks, to be sure. Switching to more efficient—that is, lower wattage—dock lighting can also go a long way toward cutting utility bills.
Motor carrier Old Dominion Freight Line, for example, installed T5 lights at its freight handling facilities along with motion sensors that turn on the lights when motion is detected and ambient sensors that dim or raise lights depending on how much natural light is available. It also installed skylights to increase the amount of natural light in the loading dock area.
The result has been a noticeable drop in Old Dominion's utility bills. The carrier has seen a payback in anywhere from one to 12 months, depending on the number of lighting fixtures in the facility, says Howard Cornelison, the company's director of purchasing and real estate.
Another way to take a bite out of utility costs is to install high-volume, low-speed fans in the dock vestibule. In cold weather, these fans force hot air down from the ceiling; in hot weather, they promote air circulation and have a slight cooling effect.
Energy audit
If that seems like a lot of information to digest, help is available. Many dock equipment companies, including Rite-Hite and 4Front, offer free energy audits to identify areas of vulnerability and recommend solutions.
The return on investment for this type of equipment is typically pretty fast, according to the vendors. So once you've decided on a solution, it's usually fairly easy to get upper management to sign off on it, they say.
"In our analysis, we find the payback in Northern climates [is] in many cases a year or less," says Swietlik of Rite-Hite. "Considering that this equipment can run anywhere from $1,500 to $2,500," he adds, "that's a fair amount of energy saved."
Four Seasons keeps cool in face of rising energy costs
Utility rate increases may be a fact of business life, but the hikes Ephrata, Pa.-based Four Seasons Produce was looking at four years ago were in a category of their own. With Pennsylvania's electricity price cap set to expire on Jan. 1, 2010, the produce wholesaler had been running some numbers to see what kind of hit it would take. The findings came as something of a shock: Four Seasons learned its utility bills would rise anywhere from 20 to 40 percent. That was all it took for the company to launch a wholesale energy conservation effort aimed at generating savings roughly equivalent to the increase—somewhere between 20 and 30 percent.
One of the first areas to come under scrutiny was the company's bustling distribution center, a three-shift operation that operates six and a half days a week and handles more than a million cases a month. "We started by looking at areas of the facility where we knew we could reduce our energy use," says Randy Groff, Four Seasons' director of facilities and energy. "The building envelope, including the dock area, was one place that we knew we could generate some savings."
That assumption proved correct. A review of the operation revealed significant energy leakage at the dock's 35 doors—a serious concern for a refrigerated operation that requires its docks to be kept at a cool 40 degrees F. Part of the problem was that the original dock shelters were designed for tractor-trailer barn-style doors. When the company had to load or unload anything smaller, the result was a significant gap between the shelter and the vehicle.
To plug the leaks, the company invested in dock shelters and seals. In 2009, Four Seasons installed Rite-Hite's Eliminator-GapMaster dock shelters at all of its loading dock doors to seal the gap at the trailer door hinge. It also put in Rite-Hite's Pit Master under-leveler seals, which eliminate the gap between the leveler and the pit wall.
"It's now a lot easier to keep the ice on the broccoli," says Nelson Longenecker, Four Seasons' VP of business innovation.
How did the company do against its target? Quite well, it turns out. Its overall conservation initiative, which also included a lighting retrofit and the installation of a DC energy management system, produced savings of almost exactly 25 percent. "We hit our goal of having a smaller electrical bill this year than we did four years ago," says Longenecker.
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."