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.
The mega-storm called Sandy began breaking up as it headed through the Great Lakes to Canada, leaving behind a life-altering trail of destruction that will take weeks, if not months, to repair.
By the morning of Oct. 31, Sandy's remnants had reached the lower Great Lakes region, where gale-force warnings were in effect for some areas. The storm was expected to pass over far northern New England and eastern Canada later in the day.
With Sandy essentially history, officials in the U.S. Northeast and Mid-Atlantic focused on rescuing those who stayed behind to ride out the storm and assessing the damage before commencing a long and arduous rebuilding process. Meanwhile, the region's supply chain continued to make slow but steady progress toward recovery.
The marine terminals at the Port Authority of New York and New Jersey would remain closed at least into Oct. 31, the Port Authority said in an alert issued late the previous day. That statement did not sound optimistic about a quick return to business, noting that there was still no electricity and "no time frame" for when it would be restored. The port's channels are closed, access roads are covered with debris, traffic signals are out, rail track has been "compromised," and fence lines are in "widespread disrepair," according to the statement.
Better news emerged from the ports of Virginia and Baltimore, which were both open as of Oct. 31. However, the Port of Virginia, which encompasses facilities in Norfolk, Portsmouth, Richmond, and elsewhere in the state, said the storm's widespread impact would affect vessel schedules "across the entire East Coast port range."
CSX Corp., one of the two main eastern railroads, was working to restore service on lines running between Philadelphia and Albany, N.Y. Trackage there was affected by high water, downed trees, and power outages. In an Oct. 31 statement, CSX warned that deliveries would be delayed by three days or longer.
Norfolk Southern Corp., the second eastern railroad, said service would return by Nov. 1 to "lightly impacted areas" of its network. However, areas the railroad described as "heavily impacted" may not have service until week's end. The railroad did not specify which areas were heavily impacted and which were not.
AIR TRAFFIC TRAVAILS
John F. Kennedy International Airport, probably the nation's most important air cargo facility, resumed limited flights on Oct. 31. The lack of electricity seems to be the airport's biggest problem at this time. A freight forwarding source said power outages are affecting trucking operations and causing delays in customs clearance.
Many forwarders at JFK have rerouted shipments to westward points, holding them for delivery until order is fully restored, the source said.
UPS Inc. said it has resumed all small package and freight operations except in parts of New Jersey, the New York borough of Staten Island, and mountainous areas of Pennsylvania and West Virginia, according to Susan L. Rosenberg, a UPS spokeswoman. The company is also operating at all U.S. airports, including JFK, where it resumed service the afternoon of Oct. 31.
Rival FedEx Corp.'s FedEx Express air unit has temporarily suspended service to approximately 2,100 cities in 12 states and the District of Columbia, according to an Oct. 31 service alert on the Memphis, Tenn.-based company's website. The company's FedEx Ground parcel unit and FedEx Freight less-than-truckload (LTL) unit experienced significantly fewer service suspensions, according to the alert.
Old Dominion Freight Line Inc., one of the nation's leading LTL carriers, is transacting business throughout the region, according to Chip Overbey, senior vice president, strategic development, for the Thomasville, N.C.-based trucker. "At this point, we are picking up and delivering freight in the areas that are open with power and where customers are ready for service," Overbey said Oct. 31 in an e-mail.
Overbey added that Old Dominion is operating at between 60 percent and 70 percent of capacity in such badly hit areas as south-central New Jersey and on Long Island. "To the degree the customers are open, working, and we can get to them, then we are servicing them," he said.
Only the carrier's Brooklyn, N.Y., and Jersey City, N.J., service centers are operating well below capacity. That's because they serve Manhattan and the New Jersey shore, both of which were battered by Sandy, Overbey said, adding that both service centers have power and communication capabilities.
Omaha, Neb.-based truckload carrier Werner Enterprises Inc., which has a large presence in the Northeast, is experiencing lingering delays due to road closures, according to Derek J. Leathers, Werner's president and chief operating officer. Leathers said in a telephone interview that customers could expect delays of one to two days.
Werner currently has extra trucks in the Northeast because it will be involved in relief efforts on behalf of its customers and aid groups such as the American Red Cross, Leathers said. Werner is a big player in the temperature-controlled transportation category, and specialized "reefer" equipment will be in high demand in the coming days and perhaps weeks.
One potential long-term impact of the storm and subsequent rebuilding is that it might exacerbate an ever-worsening shortage of truckload drivers, Leathers said. The restoration efforts will require a huge number of construction workers—people who might otherwise have considered obtaining a commercial drivers license and getting behind the wheel had the disaster not intervened, he said.
ALAN READY FOR ACTION
The American Logistics Aid Network (ALAN), which connects logistics resources with the needs of governments and organizations providing disaster relief, is gearing up for what will be its first major stateside test since it was formed after Hurricane Katrina in 2005. John "Jock" Menzies, ALAN's president, said governments and relief organizations are "just now identifying their needs" and will soon be making requests of resource providers.
Highest on the list, according to Menzies, will be refrigerated transportation equipment and so-called "mega-pumps" designed to rid the infrastructure of standing water.
Menzies expects relief organizations' need for logistics support to be fluid. He noted that governments and organizations go into a disaster with a requirements list, but once they are immersed in the work, they typically find there are tools or resources they need but didn't initially ask for.
The one certainty, Menzies said, is that the post-Sandy relief work will not be brief. "This is going to take a long time," he said. "If you've seen footage of the New Jersey shore, you know it's going to take a while to undo the mess that's been left."
Parcel carrier and logistics provider UPS Inc. has acquired the German company Frigo-Trans and its sister company BPL, which provide complex healthcare logistics solutions across Europe, the Atlanta-based firm said this week.
According to UPS, the move extends its UPS Healthcare division’s ability to offer end-to-end capabilities for its customers, who increasingly need temperature-controlled and time-critical logistics solutions globally.
UPS Healthcare has 17 million square feet of cGMP and GDP-compliant healthcare distribution space globally, supporting services such as inventory management, cold chain packaging and shipping, storage and fulfillment of medical devices, and lab and clinical trial logistics.
More specifically, UPS Healthcare said that the acquisitions align with its broader mission to provide end-to-end logistics for temperature-sensitive healthcare products, including biologics, specialty pharmaceuticals, and personalized medicine. With 80% of pharmaceutical products in Europe requiring temperature-controlled transportation, investments like these ensure UPS Healthcare remains at the forefront of innovation in the $82 billion complex healthcare logistics market, the company said.
Additionally, Frigo-Trans' presence in Germany—the world's fourth-largest healthcare manufacturing market—strengthens UPS's foothold and enhances its support for critical intra-Germany operations. Frigo-Trans’ network includes temperature-controlled warehousing ranging from cryopreservation (-196°C) to ambient (+15° to +25°C) as well as Pan-European cold chain transportation. And BPL provides logistics solutions including time-critical freight forwarding capabilities.
Terms of the deal were not disclosed. But it fits into UPS' long term strategy to double its healthcare revenue from $10 billion in 2023 to $20 billion by 2026. To get there, it has also made previous acquisitions of companies like Bomi and MNX. And UPS recently expanded its temperature-controlled fleet in France, Italy, the Netherlands, and Hungary.
"Healthcare customers increasingly demand precision, reliability, and adaptability—qualities that are critical for the future of biologics and personalized medicine. The Frigo-Trans and BPL acquisitions allow us to offer unmatched service across Europe, making logistics a competitive advantage for our pharma partners," says John Bolla, President, UPS Healthcare.
The supply chain risk management firm Overhaul has landed $55 million in backing, saying the financing will fuel its advancements in artificial intelligence and support its strategic acquisition roadmap.
The equity funding round comes from the private equity firm Springcoast Partners, with follow-on participation from existing investors Edison Partners and Americo. As part of the investment, Springcoast’s Chris Dederick and Holger Staude will join Overhaul’s board of directors.
According to Austin, Texas-based Overhaul, the money comes as macroeconomic and global trade dynamics are driving consequential transformations in supply chains. That makes cargo visibility and proactive risk management essential tools as shippers manage new routes and suppliers.
“The supply chain technology space will see significant consolidation over the next 12 to 24 months,” Barry Conlon, CEO of Overhaul, said in a release. “Overhaul is well-positioned to establish itself as the ultimate integrated solution, delivering a comprehensive suite of tools for supply chain risk management, efficiency, and visibility under a single trusted platform.”
Under terms of the deal, Sick and Endress+Hauser will each hold 50% of a joint venture called "Endress+Hauser SICK GmbH+Co. KG," which will strengthen the development and production of analyzer and gas flow meter technologies. According to Sick, its gas flow meters make it possible to switch to low-emission and non-fossil energy sources, for example, and the process analyzers allow reliable monitoring of emissions.
As part of the partnership, the product solutions manufactured together will now be marketed by Endress+Hauser, allowing customers to use a broader product portfolio distributed from a single source via that company’s global sales centers.
Under terms of the contract between the two companies—which was signed in the summer of 2024— around 800 Sick employees located in 42 countries will transfer to Endress+Hauser, including workers in the global sales and service units of Sick’s “Cleaner Industries” division.
“This partnership is a perfect match,” Peter Selders, CEO of the Endress+Hauser Group, said in a release. “It creates new opportunities for growth and development, particularly in the sustainable transformation of the process industry. By joining forces, we offer added value to our customers. Our combined efforts will make us faster and ultimately more successful than if we acted alone. In this case, one and one equals more than two.”
According to Sick, the move means that its current customers will continue to find familiar Sick contacts available at Endress+Hauser for consulting, sales, and service of process automation solutions. The company says this approach allows it to focus on its core business of factory and logistics automation to meet global demand for automation and digitalization.
Sick says its core business has always been in factory and logistics automation, which accounts for more than 80% of sales, and this area remains unaffected by the new joint venture. In Sick’s view, automation is crucial for industrial companies to secure their productivity despite limited resources. And Sick’s sensor solutions are a critical part of industrial automation, which increases productivity through artificial intelligence and the digital networking of production and supply chains.
He replaces Loren Swakow, the company’s president for the past eight years, who built a reputation for providing innovative and high-performance material handling solutions, Noblelift North America said.
Pedriana had previously served as chief marketing officer at Big Joe Forklifts, where he led the development of products like the Joey series of access vehicles and their cobot pallet truck concept.
According to the company, Noblelift North America sells its material handling equipment in more than 100 countries, including a catalog of products such as electric pallet trucks, sit-down forklifts, rough terrain forklifts, narrow aisle forklifts, walkie-stackers, order pickers, electric pallet trucks, scissor lifts, tuggers/tow tractors, scrubbers, sweepers, automated guided vehicles (AGV’s), lift tables, and manual pallet jacks.
"As part of Noblelift’s focus on delivering exceptional customer experiences, we are excited to have Bill Pedriana join us in this pivotal leadership role," Wendy Mao, CEO at Noblelift Intelligent Equipment Co. Ltd., the China-based parent company of Noblelift North America, said in a release. “His passion for the industry, proven ability to execute innovative strategies, and dedication to customer satisfaction make him the perfect leader to guide Noblelift into our next phase of growth.”
An economic activity index for the material handling sector showed mixed results in December, following strong reports in October and November, according to a release from business forecasting firm Prestige Economics.
Specifically, the most recent version of the MHI Business Activity Index (BAI) showed December contractions in the areas of capacity utilization, shipments, unfilled orders, inventories, and exports. But on the upside, there were expansions in business activity, new orders, and future new orders.
The report gave an array of reasons for those quantitative results, judging by respondents’ accompanying “qualitative responses.” That part of the survey included positive references to lower interest rates, the clear outcome of the election, and improved abilities to retain workers. But those were counterweighed by downside mentions featuring multiple references to tariffs, reflecting broad skepticism in the business community to trade threats made by the incoming Trump administration.
Looking into the future, forecasts for a drop in interest rates and a likely accompanying drop in the dollar are likely to support material handling and manufacturing, which have been held back in recent quarters by high interest rates and a strong dollar, the report from Austin, Texas-based Prestige Economics found.
Likewise, hiring ease was strong in the survey, as a record high 81% of respondents reported hiring in December was “easier” than in November. That improved ease of hiring will be particularly important as the “new orders” category is likely to rise in the year ahead, the report found.