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.
What would happen if the nation went to a 97,000 pound gross vehicle weight limit on its interstate highways?
MillerCoors, the giant Chicago-based brewer, estimates it could cut by 25 percent the number of trucks it deploys each week to move products from its eight breweries to its six distribution centers. That would translate into 1.15 million fewer vehicle miles traveled each week, the company said. Based on a diesel fuel price of $4.50 a gallon, Miller estimates it could cut its weekly fuel bill by nearly $181,000 and reduce weekly carbon emissions by more than 4.5 million pounds.
Kraft Foods, the snack foods behemoth based in Northfield, Ill., says that, in a typical year, it would be able to move the same product with 66,000 fewer loads, resulting in a 33 million drop in vehicle miles driven, a savings of 6.6 million gallons of diesel fuel, and a 73,000-ton reduction in Kraft's carbon emissions.
Campbell Soup Co., the iconic Camden, N.J.-based canned goods producer, said it could cut its annual loads by 41,000, reducing vehicle miles driven by 23 million, saving nearly 4 million gallons of fuel, and eliminating about 39,000 tons of carbon from the atmosphere.
International Paper Co., the Memphis, Tenn.-based paper products titan, said it would carry the same amount of tonnage per year on 68,000 fewer truckloads, achieve a 27-percent annual productivity gain per truck, and shave up to 20 percent a year from its truck freight bill.
All compelling numbers, to be sure. For now, however, it is just data on fact sheets. Arguably the best shot to date to increase both the weight and size limits for big trucks plying the nation's highways has vanished into the legislative ether, helped into oblivion by a trade group whose members move these companies' goods for a living.
BITTER BLOW
For shippers that have long fought to effect what would have been the first legislative change to truck weights and size limits in 30 years, it was a bitter and expensive blow. By one estimate, though impossible to quantify, upping the per-vehicle weight limit to 97,000 pounds from 80,000 pounds would have yielded shippers between $32 billion and $37 billion a year in cost savings and productivity improvements.
In early February, Rep. John L. Mica (R-Fla.), chair of the House Transportation and Infrastructure Committee, personally inserted language in a first draft of federal transport reauthorization legislation that would have allowed states to raise the weight limit for fully loaded trucks traveling on their portion of the interstate highway system. The vehicles would have to be equipped with a sixth axle to improve braking and to better distribute the load's weight in order to minimize road wear. Currently, six states—five of them located in New England—allow the heavier vehicles on their interstate highways.
The language would also have allowed the nationwide use of twin trailers each with 33-foot lengths, and would have permitted the deployment of triple-trailers in states that currently don't have them. The longer doubles are allowed in 22 states, and the triples in 16 states.
Shipper and business groups that have tried unsuccessfully for years to convince Congress to raise maximum gross vehicle weights were thrilled by the news. Unlike other bills that have been introduced only to quickly wither on the legislative vine, the initiative was being pushed by the head of the House committee that oversees transport programs, and it was included in the multiyear highway bill rather than standing legislatively naked on its own.
DASHED HOPES
However, even this version was not to be. Almost immediately, and expectedly, the Association of American Railroads (AAR) and the association representing owner-operator drivers came out in opposition. The railroads argued that heavier and longer trucks would jeopardize public safety and cause road damage that would put taxpayers on the hook for repairs.
The owner-operators group maintained that the heavier trucks would worsen an already-deteriorating infrastructure, and that longer trucks would put drivers and motorists at risk because of their limited maneuverability. The group also said there was no evidence that allowing bigger trucks on the highways would lead to an overall reduction in rigs and trailers.
Supporters of the Mica language knew the tide had turned against them when the full committee then called for a three-year feasibility study by the Transportation Research Board into the issue. But the death knell came on Feb. 13 from an unexpected source, when the American Trucking Associations (ATA) and the AAR penned an extraordinary joint letter calling on House members to move forward on a highway bill without the controversial language.
ATA Chairman Bill Graves made it plain in the letter that the group was urging the abandonment of the provision in order to maintain harmony among the many players with much at stake in the transport reauthorization process.
"What this agreement allows us to do is take one potentially controversial issue off the table in the interest of moving the legislation, which is nearly 30 months overdue, forward," the joint letter said.
As early winter turns into late spring, it is clear ATA's position hasn't changed. "Is it an important issue? Yes. Can it be the only issue? Unfortunately, no," Boyd Stephenson, ATA's manager for safety and security operations, said May 3 at an international trade conference in Norfolk.
Shippers' groups have come to realize what they probably already suspected: that the trucking industry as a whole pays lip service to the issue, even though a honcho like David S. Congdon, president and CEO of Thomasville, N.C.-based less-than-truckload carrier Old Dominion Freight Line Inc., has gone on record saying an increase in size and weight limits would represent a "quantum leap" in supply chain productivity.
TEMPORARY SETBACK?
For now, and perhaps for the foreseeable future, U.S. shippers will have to be content with the status quo, even though their two border partners, Mexico and Canada, have weight limits of 106,000 and 95,000 pounds, respectively. They are also left to ponder what remedies will be available to deal with the consequences of a doubling or tripling of U.S. truck volumes by 2025 on an infrastructure where truck traffic is already growing 11 times faster than road capacity.
John Runyan, executive director of the Coalition for Transportation Productivity, which has lobbied extensively to increase truck size and weight limits, said the recent legislative setbacks are temporary and the joint ATA-AAR letter didn't make anything better or worse for the group's members.
Runyan said, however, that he would have advised ATA officials not to sign the letter.
"The days of a carrier group speaking on behalf of American shippers are over," he said. "They simply may not be aware of that yet."
Fruit company McDougall & Sons is running a tighter ship these days, thanks to an automated material handling solution from systems integrator RH Brown, now a Bastian Solutions company.
McDougall is a fourth-generation, family-run business based in Wenatchee, Washington, that grows, processes, and distributes cherries, apples, and pears. Company leaders were facing a host of challenges during cherry season, so they turned to the integrator for a solution. As for what problems they were looking to solve with the project, the McDougall leaders had several specific goals in mind: They wanted to increase cherry processing rates, better manage capacity during peak times, balance production between two cherry lines, and improve the accuracy and speed of data collection and reporting on the processed cherries.
RH Brown/Bastian responded with a combination of hardware and software that is delivering on all fronts: The new system handles cartons twice as fast as McDougall’s previous system, with less need for manual labor and with greater accuracy. On top of that, the system’s warehouse control software (WCS) provides precise, efficient management of production lines as well as real-time insights, data analytics, and product traceability.
MAKING THE SWITCH
Cherry producers are faced with a short time window for processing the fruit: Once cherries are ripe, they have to be harvested and processed quickly. McDougall & Sons responds to this tight schedule by running two 10-hour shifts, seven days a week, for about 60 days nonstop during the season. Adding complexity, the fruit industry is shifting away from bulk cartons to smaller consumer packaging, such as small bags and clamshell containers. This has placed a heavier burden on the manual labor required for processing.
Committed to making its machinery and technology run efficiently, McDougall’s leaders decided they needed to replace the company’s simple motorized chain system with an automated material handling system that would speed and streamline its cherry processing operations. With that in mind, RH Brown/Bastian developed a solution that incorporates three key capabilities:
Advanced automation that streamlines carton movement, reducing manual labor. The system includes a combination of conveyors, switches, controls, in-line scales, and barcode imagers.
A WCS that allows the company to manage production lines precisely and efficiently, with real-time insights into processing operations.
Data and analytics capabilities that provide insight into the production process and allow quick decision-making.
BEARING FRUIT
The results of the project speak for themselves: The new system is moving cartons at twice the speed of the previous system, with 99.9% accuracy, according to both RH Brown/Bastian and McDougall & Sons.
But the transformational benefits didn’t end there. The companies also cite a 130% increase in throughput, along with the ability to process an average of 100 cases per minute on each production line.
Artificial intelligence (AI) and the economy were hot topics on the opening day of SMC3 Jump Start 25, a less-than-truckload (LTL)-focused supply chain event taking place in Atlanta this week. The three-day event kicked off Monday morning to record attendance, with more than 700 people registered, according to conference planners.
The event opened with a keynote presentation from AI futurist Zack Kass, former head of go to market for OpenAI. He talked about the evolution of AI as well as real-world applications of the technology, furthering his mission to demystify AI and make it accessible and understandable to people everywhere. Kass is a speaker and consultant who works with businesses and governments around the world.
The opening day also featured a slate of economic presentations, including a global economic outlook from Dr. Jeff Rosensweig, director of the John Robson Program for Business, Public Policy, and Government at Emory University, and a “State of LTL” report from economist Keith Prather, managing director of Armada Corporate Intelligence. Both speakers pointed to a strong economy as 2025 gets underway, emphasizing overall economic optimism and strong momentum in LTL markets.
Other highlights included interviews with industry leaders Chris Jamroz and Rick DiMaio. Jamroz is executive chairman of the board and CEO of Roadrunner Transportation Systems, and DiMaio is executive vice president of supply chain for Ace Hardware.
Jump Start 25 runs through Wednesday, January 29, at the Renaissance Atlanta Waverly Hotel & Convention Center.
A lithium refinery that broke ground this week on construction of a $1.2 billion plant in Oklahoma will soon become one of the nation’s largest factories for producing materials for batteries, according to officials with Connecticut-based Stardust Power Inc.
In December 2024, the company said it had acquired the 66-acre site for the refinery in Muskogee, Oklahoma, as well as the right of first refusal for future expansion on an adjacent 40-acre parcel of land. In choosing those plots, it cited the location’s proximity to the country’s largest inland waterway system, robust road and rail networks, and a skilled workforce rooted in the oil and gas sector.
Up next, the project will be developed in two phases, with the first phase focused on constructing a production line capable of producing up to 25,000 metric tons per annum. The second phase will add a second production line, bringing the total capacity to 50,000 metric tons per annum.
As it moves into the construction stage of the project, the company said it would follow sustainable standards, including responsible corporate practices, climate action, and the energy transition. “Our lithium refinery will be crucial for addressing U.S. national security and supply chain risks. By onshoring critical mineral manufacturing, we are helping to sustain America’s energy leadership,” Stardust Power Founder and CEO, Roshan Pujari, said in a release. “At a time when foreign entities of concern are attempting to consolidate critical minerals, Stardust Power is proud to play a key role in safeguarding American interests and supporting Oklahoma’s local economy,” Pujari said.
Local officials cheered the project for the hundreds of jobs it is projected to create once fully operational, and for its role in helping strengthen the U.S. supply chain for critical minerals by reducing the nation’s reliance on China for the production of critical rare earth elements.
The new cranes are part of the latest upgrades to the Port of Savannah’s Ocean Terminal, which is currently in a renovation phase, although freight operations have continued throughout the work. Another one of those upgrades is a $29 million exit ramp running from the terminal directly to local highways, allowing trucks direct highway transit to Atlanta without any traffic lights until entering Atlanta. The ramp project is 60% complete and is designed with the local community in mind to keep container trucks off local neighborhood roads.
"The completion of this project in 2028 will enable Ocean Terminal to accommodate the largest vessels serving the U.S. East Coast," Ed McCarthy, Chief Operating Officer of Georgia Ports, said in a release. "Our goal is to ensure customers have the future berth capacity for their larger vessels’ first port of calls with the fastest U.S. inland connectivity to compete in world markets."
"We want our ocean carrier customers to see us as the port they can bring their ships and make up valuable time in their sailing schedule using our big ship berths. Our crane productivity and 24-hour rail transit to inland markets is industry-leading," Susan Gardner, Vice President of Operations at Georgia Ports, said.
It appears to have found that buyer in Aptean, a deep-pocketed firm that is backed by the private equity firms TA Associates, Insight Partners, Charlesbank Capital Partners, and Clearlake Capital Group.
Through the purchase, Aptean will gain Logility’s customer catalog of over 500 clients in 80 countries, spanning the consumer durable goods, apparel/accessories, food and beverage, industrial manufacturing, fast moving consumer goods, wholesale distribution, and chemicals verticals.
Aptean will also now own the firm’s technology, which Logility says includes demand planning, inventory and supply optimization, manufacturing operations, network design, and vendor and sourcing management.
“Logility possesses years of experience helping global organizations design, build, and manage their supply chains” Aptean CEO TVN Reddy said in a release. “The Logility platform delivers a mission-critical suite of AI-powered supply chain planning solutions designed to address even the most complex requirements. We look forward to welcoming Logility’s loyal customers and experienced team to Aptean.”