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."
Leaders at American ports are cheering the latest round of federal infrastructure funding announced today, which will bring almost $580 million in Port Infrastructure Development Program (PIDP) awards, funding 31 projects in 15 states and one territory.
“Modernizing America’s port infrastructure is essential to strengthening the multimodal network that supports our nation's supply chain,” Maritime Administrator Ann Phillips said in a release. “Approximately 2.3 billion short tons of goods move through U.S. waterways each year, and the benefits of developing port infrastructure extend far beyond the maritime sector. This funding enhances the flow and capacity of goods moved, bolstering supply chain resilience across all transportation modes, and addressing the environmental and health impacts on port communities.”
Even as the new awardees begin the necessary paperwork, industry group the American Association of Port Authorities (AAPA) said it continues to urge Congress to continue funding PIDP at the full authorized amount and get shovels in the ground faster by passing the bipartisan Permitting Optimization for Responsible Transportation (PORT) Act, which slashes red tape, streamlines outdated permitting, and makes the process more efficient and predictable.
"Our nation's ports sincerely thank our bipartisan Congressional leaders, as well as the USDOT for making these critical awards possible," Cary Davis, AAPA President and CEO, said in a release. "Now comes the hard part. AAPA ports will continue working closely with our Federal Government partners to get the money deployed and shovels in the ground as soon as possible so we can complete these port infrastructure upgrades and realize the benefits to our nation's supply chain and people faster."
Supply chains are poised for accelerated adoption of mobile robots and drones as those technologies mature and companies focus on implementing artificial intelligence (AI) and automation across their logistics operations.
That’s according to data from Gartner’s Hype Cycle for Mobile Robots and Drones, released this week. The report shows that several mobile robotics technologies will mature over the next two to five years, and also identifies breakthrough and rising technologies set to have an impact further out.
Gartner’s Hype Cycle is a graphical depiction of a common pattern that arises with each new technology or innovation through five phases of maturity and adoption. Chief supply chain officers can use the research to find robotic solutions that meet their needs, according to Gartner.
Gartner, Inc.
The mobile robotic technologies set to mature over the next two to five years are: collaborative in-aisle picking robots, light-cargo delivery robots, autonomous mobile robots (AMRs) for transport, mobile robotic goods-to-person systems, and robotic cube storage systems.
“As organizations look to further improve logistic operations, support automation and augment humans in various jobs, supply chain leaders have turned to mobile robots to support their strategy,” Dwight Klappich, VP analyst and Gartner fellow with the Gartner Supply Chain practice, said in a statement announcing the findings. “Mobile robots are continuing to evolve, becoming more powerful and practical, thus paving the way for continued technology innovation.”
Technologies that are on the rise include autonomous data collection and inspection technologies, which are expected to deliver benefits over the next five to 10 years. These include solutions like indoor-flying drones, which utilize AI-enabled vision or RFID to help with time-consuming inventory management, inspection, and surveillance tasks. The technology can also alleviate safety concerns that arise in warehouses, such as workers counting inventory in hard-to-reach places.
“Automating labor-intensive tasks can provide notable benefits,” Klappich said. “With AI capabilities increasingly embedded in mobile robots and drones, the potential to function unaided and adapt to environments will make it possible to support a growing number of use cases.”
Humanoid robots—which resemble the human body in shape—are among the technologies in the breakthrough stage, meaning that they are expected to have a transformational effect on supply chains, but their mainstream adoption could take 10 years or more.
“For supply chains with high-volume and predictable processes, humanoid robots have the potential to enhance or supplement the supply chain workforce,” Klappich also said. “However, while the pace of innovation is encouraging, the industry is years away from general-purpose humanoid robots being used in more complex retail and industrial environments.”
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.
The Boston-based enterprise software vendor Board has acquired the California company Prevedere, a provider of predictive planning technology, saying the move will integrate internal performance metrics with external economic intelligence.
According to Board, the combined technologies will integrate millions of external data points—ranging from macroeconomic indicators to AI-driven predictive models—to help companies build predictive models for critical planning needs, cutting costs by reducing inventory excess and optimizing logistics in response to global trade dynamics.
That is particularly valuable in today’s rapidly changing markets, where companies face evolving customer preferences and economic shifts, the company said. “Our customers spend significant time analyzing internal data but often lack visibility into how external factors might impact their planning,” Jeff Casale, CEO of Board, said in a release. “By integrating Prevedere, we eliminate those blind spots, equipping executives with a complete view of their operating environment. This empowers them to respond dynamically to market changes and make informed decisions that drive competitive advantage.”