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.
In the nation's capital, legislation is what lawmakers do. As one veteran and somewhat jaded Washington lobbyist once remarked, "To a politician, introducing legislation is like breathing."
If industry comments greeting the House Transportation and Infrastructure Committee's five-year, $260 billion bill to fund the federal highway, transit, and safety programs is any indication, someone on Capitol Hill has taken a very deep breath.
The legislation, unveiled late Tuesday, has been trumpeted by Rep. John L. Mica (R-Fla.), the committee chairman, as the largest transportation reform bill since Congress created the Interstate Highway System mid-way through the presidency of Dwight D. Eisenhower. For freight interests that have clamored for more congressional recognition of freight's role in driving the U.S. and global economies, the bill goes a long way toward meeting that objective.
The bill, the American Energy and Infrastructure Jobs Act, proposes the first major federal change to truck size and weight limits since the early 1980s. It also restores to the states the authority to regulate truck sizes and weights, which was stripped from them in 1991.
The bill gives states the power to allow single-trailer trucks with gross vehicle weights of up to 97,000 pounds to operate on their portion of the nation's interstate highway system. The current federal weight limit is set at 80,000 pounds, though six states—Maine, New Hampshire, New York, Vermont, Massachusetts, and Rhode Island—allow six-axle trucks weighing up to 97,000 pounds to travel on their interstate highways. About 40 states allow vehicles weighing more than 80,000 pounds to operate on state roads.
The legislation would require the heavier trucks to be equipped with a sixth axle to maintain braking and handling characteristics at the higher weights. In addition, participating states would have the authority to exclude heavier trucks from operating on any route or bridge.
The bill also permits 33-foot trailers to be operated in doubles formation, up from the current maximum of 28 feet per trailer operating as a tandem. In addition, it would allow truckers to operate nationwide with triple-trailers up to 120 feet long.
Hurdles ahead
There are potential roadblocks to moving the House bill forward. The bill will be debated on Thursday, with possible amendments to be introduced and addressed. It then must be reconciled with the version that emerges from the Senate, a process expected to be politically bruising. The traditional funding mechanism, the fuel tax on cars and trucks, will not be sufficient to pay for the entire program. What is expected to be a $50 billion shortfall will likely need to be made up from funds transferred from the general treasury.
Still, advocates say there is hope that after eight short-term extensions since the last transport law expired in September 2009, a multiyear reauthorization bill could go to President Obama's desk for signature during 2012. However, it is unlikely that the process could move swiftly enough to avoid a ninth extension after the current one expires on March 31.
A focus on freight
Many shipper and carrier interests have long believed the increased use of longer and heavier vehicles will be the primary, if not the only, solution to a looming capacity crunch, escalating fuel prices, and greenhouse gas emissions. For them, the bill was manna from heaven.
The Coalition for Transportation Productivity, a group of 200 shippers and associations, said the measure will help truckers meet the demands of the supply chain while reducing the number of truckloads, amount of diesel fuel, and number of vehicle miles necessary to do the job.
"Truck capacity has dropped by 16 percent since the recession started, and the 30-year-old federal vehicle weight limit compounds the problem by forcing many trucks to travel when they are only partially full," said John Runyan, CTP's executive director, in a statement.
CleanerSaferTrucking Inc., a coalition of truckers, shippers, and equipment manufacturers, said in a statement that the bill will increase truck productivity and lead to a "safer, more viable trucking industry, utilizing better equipment and providing better, more sustainable jobs, while reducing highway congestion."
The American Trucking Associations and the American Association of Port Authorities also endorsed the legislation.
The U.S. Chamber of Commerce, which, with 3 million members, is seen as an accurate barometer of multi-industry consensus, applauded the bill's introduction. "It reflects the recognition of the federal role in the transportation system," said Janet Kavinoky, who heads the chamber's transportation infrastructure practice.
Kavinoky added that the bill underscores the need to focus on freight and its importance in keeping the U.S. economy competitive.
Critics take aim
Not all of the reaction was positive. The Association of American Railroads (AAR), the Teamsters union, and the Owner-Operator Independent Drivers Association (OOIDA) attacked the bill, saying it will create undue safety risk, further damage the nation's deteriorating infrastructure, and put additional financial burdens on taxpayers, and will not create jobs as the bill's sponsors contend.
The AAR, which has for years fought federal efforts to raise truck size and weight limits, said the operator of a typical 97,000-pound, six-axle truck pays only half of the cost of repairing road damage caused by its use. Taxpayers pick up the rest of the tab, the AAR said.
"Americans don't want 97,000 pounds or huge multi-trailers up to 120 feet long on our nation's highways," said Edward R. Hamberger, AAR's president and CEO, in a statement.
OOIDA, which represent mostly fleets of one to five trucks, argued that longer and heavier vehicles are harder to maneuver and will put additional stress on roads and bridges that are designed to accommodate weights no greater than 80,000 pounds. OOIDA said an increase in size and weight limits has never resulted in a reduction in truck traffic.
OOIDA warned the legislation would lead to tax increases and new toll levies because the cost of potentially massive road and bridge damage would far exceed the inflow of user fees paid by the companies that would benefit from the proposed increase in size and weight limits.
Logistics real estate developer Prologis today named a new chief executive, saying the company’s current president, Dan Letter, will succeed CEO and co-founder Hamid Moghadam when he steps down in about a year.
After retiring on January 1, 2026, Moghadam will continue as San Francisco-based Prologis’ executive chairman, providing strategic guidance. According to the company, Moghadam co-founded Prologis’ predecessor, AMB Property Corporation, in 1983. Under his leadership, the company grew from a startup to a global leader, with a successful IPO in 1997 and its merger with ProLogis in 2011.
Letter has been with Prologis since 2004, and before being president served as global head of capital deployment, where he had responsibility for the company’s Investment Committee, deployment pipeline management, and multi-market portfolio acquisitions and dispositions.
Irving F. “Bud” Lyons, lead independent director for Prologis’ Board of Directors, said: “We are deeply grateful for Hamid’s transformative leadership. Hamid’s 40-plus-year tenure—starting as an entrepreneurial co-founder and evolving into the CEO of a major public company—is a rare achievement in today’s corporate world. We are confident that Dan is the right leader to guide Prologis in its next chapter, and this transition underscores the strength and continuity of our leadership team.”
The New York-based industrial artificial intelligence (AI) provider Augury has raised $75 million for its process optimization tools for manufacturers, in a deal that values the company at more than $1 billion, the firm said today.
According to Augury, its goal is deliver a new generation of AI solutions that provide the accuracy and reliability manufacturers need to make AI a trusted partner in every phase of the manufacturing process.
The “series F” venture capital round was led by Lightrock, with participation from several of Augury’s existing investors; Insight Partners, Eclipse, and Qumra Capital as well as Schneider Electric Ventures and Qualcomm Ventures. In addition to securing the new funding, Augury also said it has added Elan Greenberg as Chief Operating Officer.
“Augury is at the forefront of digitalizing equipment maintenance with AI-driven solutions that enhance cost efficiency, sustainability performance, and energy savings,” Ashish (Ash) Puri, Partner at Lightrock, said in a release. “Their predictive maintenance technology, boasting 99.9% failure detection accuracy and a 5-20x ROI when deployed at scale, significantly reduces downtime and energy consumption for its blue-chip clients globally, offering a compelling value proposition.”
The money supports the firm’s approach of "Hybrid Autonomous Mobile Robotics (Hybrid AMRs)," which integrate the intelligence of "Autonomous Mobile Robots (AMRs)" with the precision and structure of "Automated Guided Vehicles (AGVs)."
According to Anscer, it supports the acceleration to Industry 4.0 by ensuring that its autonomous solutions seamlessly integrate with customers’ existing infrastructures to help transform material handling and warehouse automation.
Leading the new U.S. office will be Mark Messina, who was named this week as Anscer’s Managing Director & CEO, Americas. He has been tasked with leading the firm’s expansion by bringing its automation solutions to industries such as manufacturing, logistics, retail, food & beverage, and third-party logistics (3PL).
Supply chains continue to deal with a growing volume of returns following the holiday peak season, and 2024 was no exception. Recent survey data from product information management technology company Akeneo showed that 65% of shoppers made holiday returns this year, with most reporting that their experience played a large role in their reason for doing so.
The survey—which included information from more than 1,000 U.S. consumers gathered in January—provides insight into the main reasons consumers return products, generational differences in return and online shopping behaviors, and the steadily growing influence that sustainability has on consumers.
Among the results, 62% of consumers said that having more accurate product information upfront would reduce their likelihood of making a return, and 59% said they had made a return specifically because the online product description was misleading or inaccurate.
And when it comes to making those returns, 65% of respondents said they would prefer to return in-store, if possible, followed by 22% who said they prefer to ship products back.
“This indicates that consumers are gravitating toward the most sustainable option by reducing additional shipping,” the survey authors said in a statement announcing the findings, adding that 68% of respondents said they are aware of the environmental impact of returns, and 39% said the environmental impact factors into their decision to make a return or exchange.
The authors also said that investing in the product experience and providing reliable product data can help brands reduce returns, increase loyalty, and provide the best customer experience possible alongside profitability.
When asked what products they return the most, 60% of respondents said clothing items. Sizing issues were the number one reason for those returns (58%) followed by conflicting or lack of customer reviews (35%). In addition, 34% cited misleading product images and 29% pointed to inaccurate product information online as reasons for returning items.
More than 60% of respondents said that having more reliable information would reduce the likelihood of making a return.
“Whether customers are shopping directly from a brand website or on the hundreds of e-commerce marketplaces available today [such as Amazon, Walmart, etc.] the product experience must remain consistent, complete and accurate to instill brand trust and loyalty,” the authors said.
When you get the chance to automate your distribution center, take it.
That's exactly what leaders at interior design house
Thibaut Design did when they relocated operations from two New Jersey distribution centers (DCs) into a single facility in Charlotte, North Carolina, in 2019. Moving to an "empty shell of a building," as Thibaut's Michael Fechter describes it, was the perfect time to switch from a manual picking system to an automated one—in this case, one that would be driven by voice-directed technology.
"We were 100% paper-based picking in New Jersey," Fechter, the company's vice president of distribution and technology, explained in a
case study published by Voxware last year. "We knew there was a need for automation, and when we moved to Charlotte, we wanted to implement that technology."
Fechter cites Voxware's promise of simple and easy integration, configuration, use, and training as some of the key reasons Thibaut's leaders chose the system. Since implementing the voice technology, the company has streamlined its fulfillment process and can onboard and cross-train warehouse employees in a fraction of the time it used to take back in New Jersey.
And the results speak for themselves.
"We've seen incredible gains [from a] productivity standpoint," Fechter reports. "A 50% increase from pre-implementation to today."
THE NEED FOR SPEED
Thibaut was founded in 1886 and is the oldest operating wallpaper company in the United States, according to Fechter. The company works with a global network of designers, shipping samples of wallpaper and fabrics around the world.
For the design house's warehouse associates, picking, packing, and shipping thousands of samples every day was a cumbersome, labor-intensive process—and one that was prone to inaccuracy. With its paper-based picking system, mispicks were common—Fechter cites a 2% to 5% mispick rate—which necessitated stationing an extra associate at each pack station to check that orders were accurate before they left the facility.
All that has changed since implementing Voxware's Voice Management Suite (VMS) at the Charlotte DC. The system automates the workflow and guides associates through the picking process via a headset, using voice commands. The hands-free, eyes-free solution allows workers to focus on locating and selecting the right item, with no paper-based lists to check or written instructions to follow.
Thibaut also uses the tech provider's analytics tool, VoxPilot, to monitor work progress, check orders, and keep track of incoming work—managers can see what orders are open, what's in process, and what's completed for the day, for example. And it uses VoxTempo, the system's natural language voice recognition (NLVR) solution, to streamline training. The intuitive app whittles training time down to minutes and gets associates up and working fast—and Thibaut hitting minimum productivity targets within hours, according to Fechter.
EXPECTED RESULTS REALIZED
Key benefits of the project include a reduction in mispicks—which have dropped to zero—and the elimination of those extra quality-control measures Thibaut needed in the New Jersey DCs.
"We've gotten to the point where we don't even measure mispicks today—because there are none," Fechter said in the case study. "Having an extra person at a pack station to [check] every order before we pack [it]—that's been eliminated. Not only is the pick right the first time, but [the order] also gets packed and shipped faster than ever before."
The system has increased inventory accuracy as well. According to Fechter, it's now "well over 99.9%."