David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
At International Paper's manufacturing operation in Courtland, Ala., logs enter the building at one end and come out the other in the form of large paper rolls and cases of 8 1/2- by 11-inch paper. It takes trained workers and specialized machinery to keep the pulp and paper flowing in the highly automated operation. But as in most manufacturing plants, things can go wrong. That's why the company makes employee safety a priority.
"It's the most important facet of our business. Without our people being well, we could not run properly," says Tim Agee, who recently retired after 10 years as safety manager of the plant.
Most employers would agree with Agee that their people are their most important asset. Finding good workers is never easy. And when you factor in recruiting and training costs, workers represent a significant investment for employers. Protecting them from injury and lost days is vital to good performance. Most importantly, it is the right thing to do as an employer. That's why it's essential to keep workers informed of safety procedures—first with good training, and then through proper signage and labeling that reinforce safe practices.
SAFE WAY
Safety programs save lives. According to Occupational Safety and Health Administration (OSHA) statistics, workplace fatalities have dropped by more than 65 percent since 1970, while occupational injuries and workplace-related illnesses have declined by 67 percent. Most of this is due to regulations and safety programs that are deployed in workplaces, including the use of proper signage and safety labeling.
OSHA and other federal and state agencies set requirements for most of the safety signage found in a warehouse. The OSHA website (www.osha.gov) is a good resource on regulations. But local jurisdictions also have a say in creating safe work environments. For instance, local fire inspectors are typically charged with assuring that exits are clearly marked, directions to storm shelters are posted, and the locations of fire extinguishers and eyewash stations are clearly identified.
Local requirements can vary greatly, which tends to create headaches for companies that operate facilities in multiple locations. "It is important for managers to know the regulations [that apply to] the dirt under their feet," says Paul Burgess, regulatory specialist at Labelmaster, a company that provides safety labels and related products. "People think they have their ducks in a row, but then are surprised when the local inspectors show up and [tell them] they are not compliant."
Burgess notes that a wealth of material on fire, electrical, and building safety, including hazard marking and signage, can be found on the National Fire Protection Association's website (www.nfpa.org). Most fire departments use NFPA standardized codes as the basis for their own local codes, but individual requirements may vary. For that reason, it's wise to check with your local fire department to see how closely it follows NFPA guidelines and what other codes may be in force.
SIGN LANGUAGE
As for what kinds of signs companies use, Jeff Tanner, vice president of risk management at Kenco, a third-party logistics company, says the signs posted in his company's facilities fall into three basic categories: danger signs, caution signs, and safety instruction signs.
Danger signs warn of conditions that can cause serious harm or even death, such as exposure to high-voltage electricity. Caution signs warn against other possible threats, such as a hot surface or a conveyor that could start without warning. Safety instruction signs provide directions on where people should go in case of emergency or the proper use of a piece of equipment.
"As an advocate of safety, we have to go out and look for areas where we need to develop signs to assure safety," says Tanner. "For instance, we might place a sign near our dock doors that states, 'Jumping from dock doors is prohibited, use the pedestrian door.'"
Other signs might identify areas in which propane fuel is in use, "no smoking" areas, low clearances, or zones where lift trucks are prohibited from entering.
Agee reports that signs play a major role in assuring safety at the International Paper plant. "Every door you go through tells if forklift traffic is on the other side," he says. "Being in 'tornado alley,' there are also signs to direct people to storm shelters."
As for the signage itself, today's signs (which can be bought ready-made from suppliers or created in-house) are just as likely to feature symbols as the traditional text. In fact, symbol signs are growing in use and are required in some instances. Research confirms that people respond faster to graphics, known as pictograms, than to text. "Pictograms improve sign recognition from a distance, well before text is legible," says Jack Rubinger of Graphic Products, a supplier of industrial label printers for safety, productivity, and compliance programs.
We've all seen these symbol-laden signs before: A picture of a person walking with a line drawn through it means "Don't walk here." A pictogram of safety glasses in a battery changing room reminds workers to wear eye protection. A symbol of a horn blowing warns lift truck drivers to hit their horn when approaching a blind corner.
Good signage and labeling are especially important for facilities that experience high turnover, rely heavily on temp workers, or have a lot of visitors. And at warehouses where English is not the first language for a majority of workers, pictograms are essential.
While the primary purpose of signs in facilities is to promote safe practices, good signage can also yield other benefits.
"The [main] reason to use signs is to promote safety, but they can also [improve] workflow," says Barry Alves, label systems consultant at Peak-Ryzex, a systems integration company that also provides labeling solutions. He says that while good signage saves on lost employee workdays, the return on investment from productivity increases alone can be as short as six to eight months.
"The signs can tell people where to be, where not to be, and how to go. It gives them a workflow pattern and process that they can follow," Alves says.
Another way to accomplish that is through floor markings. Some operations mark travel lanes for facility vehicles (and include stop-sign warnings at major intersections to reduce the chance of accidents), while others use floor markings to identify designated pedestrian lanes, where workers and visitors can walk safely away from forklift traffic.
Among the companies that use floor markings to denote pedestrian lanes is Kenco. "We train our people to stay in the lanes [wherever possible], as the lift truck drivers look for you to be there," says Tanner. He adds that some sites mark the pedestrian lanes with large footprints to further indicate where people should walk.
STICK WITH IT
In addition to proper signage, many regulations require specific labeling. Again, OSHA, NFPA, and your local fire department can provide details on what's required. If your facility uses or distributes hazardous chemicals (and just about all do, as the definition is broadly interpreted), you're required to mark them according to the Globally Harmonized System (GHS), a worldwide standard for the classification and marking of chemicals.
"GHS requires distributors to label containers that they are shipping," says Labelmaster's Burgess. "For instance, a case of paint may contain six cans," he says. "The paint cans inside the carton are required to have the hazard standard (GHS) labeling applied to them. The shipping case may also require other markings, but not necessarily GHS labels. Many facilities also may require certain signage where chemicals are stored within the facility."
Many of the markings are placed on these products at the point of manufacture. However, if they're not, you're still responsible for making sure they're marked properly when in your facility and for shipments that you initiate.
In addition to product markings, other labels must be placed on facility infrastructure to alert workers to hazards. According to Graphic Products, the six most common types of safety labels used in industrial facilities are arc flash labels, used in electrical panels to warn of shocks, burns, or possible electrocution; lockout/tag out tags, which assure that machinery is shut down when someone is performing maintenance or other operations; wire and cable marking labels, which identify the types, locations, and functions of the cables used in machinery and communications; pipe and valve marking labels, which let workers know what the pipes are carrying, the direction of flow, and any hazardous materials they might contain; and fire safety and exit signs that show workers where to go in case of emergency.
The International Paper facility, for instance, has a large number of pipes that carry water, steam, oil, and chemicals. "We labeled every pipe we could, on both sides of a wall they go through," says Agee.
Labels can also be placed on material handling equipment to promote safe operation. Many equipment manufacturers include warning and cautionary labels with the systems they provide. But in addition to these, facilities may want to provide instructional labels that encourage operators to use the equipment properly. For instance, a label might direct a lift truck operator to exchange a battery once it drains to a certain power level in order to maintain efficient performance.
The International Paper facility also uses labels to promote safe behaviors. "People know what they can and cannot do there. There isn't any doubt [as to] what is expected," says Agee. "If the maximum lifting [limit] is 50 pounds, there is a label to show that. Safety is number one; that's for sure."
Each facility should have a safety manager who is charged with understanding what signs and labels are needed for compliance as well as providing the informational signs that can boost productivity and efficiency. Good signage and labeling programs do more than just promote safe practices—they instill habits that can assure that a company's most important assets are well protected.
Most of the apparel sold in North America is manufactured in Asia, meaning the finished goods travel long distances to reach end markets, with all the associated greenhouse gas emissions. On top of that, apparel manufacturing itself requires a significant amount of energy, water, and raw materials like cotton. Overall, the production of apparel is responsible for about 2% of the world’s total greenhouse gas emissions, according to a report titled
Taking Stock of Progress Against the Roadmap to Net Zeroby the Apparel Impact Institute. Founded in 2017, the Apparel Impact Institute is an organization dedicated to identifying, funding, and then scaling solutions aimed at reducing the carbon emissions and other environmental impacts of the apparel and textile industries.
The author of this annual study is researcher and consultant Michael Sadowski. He wrote the first report in 2021 as well as the latest edition, which was released earlier this year. Sadowski, who is also executive director of the environmental nonprofit
The Circulate Initiative, recently joined DC Velocity Group Editorial Director David Maloney on an episode of the “Logistics Matters” podcast to discuss the key findings of the research, what companies are doing to reduce emissions, and the progress they’ve made since the first report was issued.
A: While companies in the apparel industry can set their own sustainability targets, we realized there was a need to give them a blueprint for actually reducing emissions. And so, we produced the first report back in 2021, where we laid out the emissions from the sector, based on the best estimates [we could make using] data from various sources. It gives companies and the sector a blueprint for what we collectively need to do to drive toward the ambitious reduction [target] of staying within a 1.5 degrees Celsius pathway. That was the first report, and then we committed to refresh the analysis on an annual basis. The second report was published last year, and the third report came out in May of this year.
Q: What were some of the key findings of your research?
A: We found that about half of the emissions in the sector come from Tier Two, which is essentially textile production. That includes the knitting, weaving, dyeing, and finishing of fabric, which together account for over half of the total emissions. That was a really important finding, and it allows us to focus our attention on the interventions that can drive those emissions down.
Raw material production accounts for another quarter of emissions. That includes cotton farming, extracting gas and oil from the ground to make synthetics, and things like that. So we now have a really keen understanding of the source of our industry’s emissions.
Q: Your report mentions that the apparel industry is responsible for about 2% of global emissions. Is that an accurate statistic?
A: That’s our best estimate of the total emissions [generated by] the apparel sector. Some other reports on the industry have apparel at up to 8% of global emissions. And there is a commonly misquoted number in the media that it’s 10%. From my perspective, I think the best estimate is somewhere under 2%.
We know that globally, humankind needs to reduce emissions by roughly half by 2030 and reach net zero by 2050 to hit international goals. [Reaching that target will require the involvement of] every facet of the global economy and every aspect of the apparel sector—transportation, material production, manufacturing, cotton farming. Through our work and that of others, I think the apparel sector understands what has to happen. We have highlighted examples of how companies are taking action to reduce emissions in the roadmap reports.
Q: What are some of those actions the industry can take to reduce emissions?
A: I think one of the positive developments since we wrote the first report is that we’re seeing companies really focus on the most impactful areas. We see companies diving deep on thermal energy, for example. With respect to Tier Two, we [focus] a lot of attention on things like ocean freight versus air. There’s a rule of thumb I’ve heard that indicates air freight is about 10 times the cost [of ocean] and also produces 10 times more greenhouse gas emissions.
There is money available to invest in sustainability efforts. It’s really exciting to see the funding that’s coming through for AI [artificial intelligence] and to see that individual companies, such as H&M and Lululemon, are investing in real solutions in their supply chains. I think a lot of concrete actions are being taken.
And yet we know that reducing emissions by half on an absolute basis by 2030 is a monumental undertaking. So I don’t want to be overly optimistic, because I think we have a lot of work to do. But I do think we’ve got some amazing progress happening.
Q: You mentioned several companies that are starting to address their emissions. Is that a result of their being more aware of the emissions they generate? Have you seen progress made since the first report came out in 2021?
A: Yes. When we published the first roadmap back in 2021, our statistics showed that only about 12 companies had met the criteria [for setting] science-based targets. In 2024, the number of apparel, textile, and footwear companies that have set targets or have commitments to set targets is close to 500. It’s an enormous increase. I think they see the urgency more than other sectors do.
We have companies that have been working at sustainability for quite a long time. I think the apparel sector has developed a keen understanding of the impacts of climate change. You can see the impacts of flooding, drought, heat, and other things happening in places like Bangladesh and Pakistan and India. If you’re a brand or a manufacturer and you have operations and supply chains in these places, I think you understand what the future will look like if we don’t significantly reduce emissions.
Q: There are different categories of emission levels, depending on the role within the supply chain. Scope 1 are “direct” emissions under the reporting company’s control. For apparel, this might be the production of raw materials or the manufacturing of the finished product. Scope 2 covers “indirect” emissions from purchased energy, such as electricity used in these processes. Scope 3 emissions are harder to track, as they include emissions from supply chain partners both upstream and downstream.
Now companies are finding there are legislative efforts around the world that could soon require them to track and report on all these emissions, including emissions produced by their partners’ supply chains. Does this mean that companies now need to be more aware of not only what greenhouse gas emissions they produce, but also what their partners produce?
A: That’s right. Just to put this into context, if you’re a brand like an Adidas or a Gap, you still have to consider the Scope 3 emissions. In particular, there are the so-called “purchased goods and services,” which refers to all of the embedded emissions in your products, from farming cotton to knitting yarn to making fabric. Those “purchased goods and services” generally account for well above 80% of the total emissions associated with a product. It’s by far the most significant portion of your emissions.
Leading companies have begun measuring and taking action on Scope 3 emissions because of regulatory developments in Europe and, to some extent now, in California. I do think this is just a further tailwind for the work that the industry is doing.
I also think it will definitely ratchet up the quality requirements of Scope 3 data, which is not yet where we’d all like it to be. Companies are working to improve that data, but I think the regulatory push will make the quality side increasingly important.
Q: Overall, do you think the work being done by the Apparel Impact Institute will help reduce greenhouse gas emissions within the industry?
A: When we started this back in 2020, we were at a place where companies were setting targets and knew their intended destination, but what they needed was a blueprint for how to get there. And so, the roadmap [provided] this blueprint and identified six key things that the sector needed to do—from using more sustainable materials to deploying renewable electricity in the supply chain.
Decarbonizing any sector, whether it’s transportation, chemicals, or automotive, requires investment. The Apparel Impact Institute is bringing collective investment, which is so critical. I’m really optimistic about what they’re doing. They have taken a data-driven, evidence-based approach, so they know where the emissions are and they know what the needed interventions are. And they’ve got the industry behind them in doing that.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”
That result showed that driver wages across the industry continue to increase post-pandemic, despite a challenging freight market for motor carriers. The data comes from ATA’s “Driver Compensation Study,” which asked 120 fleets, more than 150,000 employee drivers, and 14,000 independent contractors about their wage and benefit information.
Drilling into specific categories, linehaul less-than-truckload (LTL) drivers earned a median annual amount of $94,525 in 2023, while local LTL drivers earned a median of $80,680. The median annual compensation for drivers at private carriers has risen 12% since 2021, reaching $95,114 in 2023. And leased-on independent contractors for truckload carriers were paid an annual median amount of $186,016 in 2023.
The results also showed how the demographics of the industry are changing, as carriers offered smaller referral and fewer sign-on bonuses for new drivers in 2023 compared to 2021 but more frequently offered tenure bonuses to their current drivers and with a greater median value.
"While our last study, conducted in 2021, illustrated how drivers benefitted from the strongest freight environment in a generation, this latest report shows professional drivers' earnings are still rising—even in a weaker freight economy," ATA Chief Economist Bob Costello said in a release. "By offering greater tenure bonuses to their current driver force, many fleets appear to be shifting their workforce priorities from recruitment to retention."