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.
Airfreight users, who had been dealing most of the year with a tightening market for capacity, are now also coping with
what could be a late-peak season crush for airfreight services as disruptions at West Coast ports are pushing some businesses
to shift their goods from ocean to air.
Tensions between the International Longshoremen & Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) over
negotiations for a new collective bargaining agreement have been increasing over the past few weeks, and according to PMA, led
to ILWU-orchestrated slowdowns at the ports of Los Angeles, Long Beach, Seattle, and Tacoma. On Tuesday, the slowdowns spread
to the Port of Oakland, where dockworkers temporarily shut down a terminal operated by SSA Marine, a Seattle-based stevedoring,
marine terminal operations, and intermodal management firm. Mike Zampa, a spokesman for the Port of Oakland, said late yesterday
that workers have returned to their jobs and normal operations have resumed.
ILWU has declined comment on the PMA allegations of slowdowns, and both sides have spent most of the month hurling insults at
one another. The 13,600 ILWU members have been working without a contract since the prior six-year pact expired on July 1, and
until recently, the 29 West Coast ports covered under the agreement have operated normally.
The dispute has forced some businesses to shift goods that would normally move by ocean to higher-priced air to ensure they
enter U.S. commerce before the holiday shopping season begins. Ann Inc. (formerly Ann Taylor), a women's specialty apparel
retailer, will be hit by a double-whammy when it reports its fiscal third-quarter results later this month. The company said
in a mid-quarter update Nov. 6 that sales in the first half of the period were hurt by shipment delays due to labor-related
uncertainty at the ports. A shift to air freight mitigated the delivery issues, but at a cost of $8 million in air shipping
expenses, it said. Airfreight users, even if they've negotiated capacity agreements with airlines, are still subject to
peak-season surcharges if they want rush freight moved.
For airfreight forwarders, the turmoil at the ports throws another log on what has been a yearlong fire revolving around a
general tightening of international air capacity, especially in the eastbound trans-Pacific market. Carrier rates have been
driven up for much of the year by a pickup in demand, ongoing concerns over West Coast port congestion separate from the labor
issue, the simultaneous launches of two Apple Inc. iPhones, and a secular decline in the production and delivery of all-cargo
aircraft. "There are [marketplace] expectations that will compound the situation in the coming days, but we have seen the
airlines with large backlogs before the port slowdown hit," said Rich Zablocki, vice president, North American air freight, for
Dutch forwarder and third-party logistics provider Ceva Logistics.
In early October, DHL Global Forwarding, the world's largest air freight forwarder, launched a capacity management program
designed to secure all-cargo lift on key trade lanes from Asia to North America and into Latin America, as well as on certain
Asia-to-Europe routes. The forwarder is negotiating so-called blocked-space agreements with airlines that will guarantee
capacity for a certain amount of time in return for a specified amount of freight. Rates are generally kept constant for the
duration of the agreements.
Mathieu Floreani, CEO Americas for DHL Global Forwarding, said the move is in response to mounting customer and company
concerns over the availability of all-cargo equipment in the years ahead. The capacity situation is dire on certain trade
lanes, though it doesn't affect the global market, Floreani said in an October interview. Many of his customers, even those
that don't require main-deck lift and can manage with using below-deck aircraft space, have expressed worries over all-cargo
space and the rates they'll be forced to pay for it, he said.
Floreani declined comment on the amount of space the forwarder is attempting to procure. He said an agreement's duration would
depend on the trade lane involved. However, he expects most compacts to extend only beyond the end of 2015.
Demand for air freighters, especially newbuilds, is likely to diminish over the next two decades as a shift to regionalized
or local sourcing and production, a migration to lower-cost seafreight on certain lanes, and an abundance of passenger aircraft
with lower-holds priced as an inexpensive byproduct of passenger services make costly freighter purchases less appealing. In its
biennial global air cargo forecast released last month, Boeing Co. projects 840 new freighters to be delivered worldwide through
2033. In its prior report two years ago, the aircraft maker forecast 935 new freighters to be delivered from 2012 through 2031.
Boeing also scaled back its forecast for total freighter deliveries, which include aircraft converted from passenger
configuration. In this year's forecast, it forecast deliveries of 2,170 freighters through 2033. Two years ago, it projected
2,754 freighter deliveries through 2031.
Global airfreight activity in September grew by 5.2 percent from the 2013 period, the International Air Transport Association
(IATA), the global airline trade group, said earlier this month. Most world markets showed strong growth, IATA said. The exceptions
were Europe, which reported a year-over-year decline, and Latin America, which posted flat results.
In its 2014 forecast, Boeing projected a 4.7-percent annualized growth rate worldwide through 2033, which would result in a
doubling of global cargo activity by then.
The “series C” round was led by Toyota division Woven Capital, with additional participation from Innovation Endeavors, Norwest Venture Partners, and Qualcomm Ventures. It brings California-based Third Wave to $97 million in total capital raised.
“In an industry grappling with a severely constrained labor market and intensifying market competition, Third Wave Automation's approach of blending AI-powered autonomy with human expertise is transforming warehouse operations,” Prashant Bothra, principal at Woven Capital, who is now joining the Third Wave board, said in a release. “Third Wave’s solution provides reliable automation for vertical movement and placement of goods while optimizing labor efficiency, enhancing safety and enabling data-driven improvements.”
According to Third Wave, its Shared Autonomy Platform enables the TWA Reach line of forklifts to operate autonomously or to seek help from remote operators who can take control from the safety of their office. Specifically, the TWA Reach forklifts operate in four modes: fully autonomous, remote assist, remote operation and traditional manual operation. They are designed for high-reach applications, capable of horizontal and vertical movement of payloads, and used for end-to-end applications, from inbound, replenish and outbound tasks to all tasks in between. The platform also uses machine learning to ensure forklifts continue to adapt and improve over time.
Women in supply chain tech don’t always have it easy. That’s particularly true when it comes to building a career in the male-dominated field, where they may face gender bias, limited advancement opportunities, and a lack of mentorship and support.
“Across many professional industries, women have made strides in breaking down barriers; however, supply chain and digital technology are two sectors that are often seen as being male-dominated,” Stephan de Barse, o9’s chief revenue officer, said in a release. “Through the o9 Minerva community, we aim to elevate the incredible knowledge, drive, and experiences of women working in the supply chain space.”
The new group will host networking events and panel discussions that feature expert guidance from “Minerva Ambassadors,” high-ranking professionals who will discuss their career paths and experiences within the supply chain and digital tech space. During the events, Minerva Ambassadors will also address key career advancement challenges, such as gender disparity, access to mentorship and sponsorship opportunities, and the opportunity for more diversity in leadership roles.
“As a supply chain risk management (SCRM) expert and Minerva Ambassador, I am excited to share my own professional journey alongside fellow supply chain leaders and speak to some of the unique challenges that women face as they advance their careers,” Lara Pedrini, global head of sales at risk-management tech company Exiger, said. “I am committed to the advancement of women in the workplace and digital tech, and look forward to discussing ways to close the gender gap for women in STEM fields and foster more inclusive corporate policies and work environments where women can thrive.”
Some of Americans’ favorite condiments include ketchup, salsa, barbecue sauce, and sriracha. Toppings like marinara and pizza sauce are popular as well. The common denominator here is the tomato, and food producers need many tons of them to make these and other tasty products.
One of those producers is Red Gold, an Elwood, Indiana, company whose brands include Red Gold, Redpack, Tuttorosso, Sacramento, Vine Ripe, and Huy Fong. The company works with more than 30 family-owned Midwestern farms to source sustainably managed crops.
In the 80 years since its founding, Red Gold has grown to become the largest privately held manufacturer of tomato products in the U.S., with 23 different product categories and nearly 400 combinations of flavors and cuts. Today, it serves both the grocery market and institutional customers like schools and hospitals.
But a food supply chain of this scale can be expensive to operate. So Red Gold recently launched an initiative to modernize its logistics processes with an eye toward boosting efficiency and increasing resilience while also cutting costs.
The timing was right for such a project. Freight rates in the trucking sector have been depressed for nearly two years, giving the company a rare opportunity to invest some of its savings into process improvements, the company said. “The current transportation market is extremely shipper-friendly and has been for the past 18 months,” James Posipanka, Red Gold’s supply chain manager–logistics, said in a press release. “Now is the time for us to plan and prepare for when it swings the other way and carriers can choose which customers they want to work with. When that happens, we want to be a ‘Shipper of Choice.’ By putting strategies and processes in place now, we’ll be successful when the market does flip.”
STEP-BY-STEP SAVINGS
For help streamlining its processes, the company turned to Loadsmart, a Chicago-based logistics technology developer that specializes in helping clients optimize freight spend, increase efficiency, and enhance service quality. Step by step, Red Gold began implementing three of Loadsmart’s technologies and digital services, moving to the next phase only after it had realized a return on its investment in the previous one.
First, Red Gold implemented Opendock, Loadsmart’s online dock-scheduling platform. That move alone saved thousands of hours of staff time by eliminating the need to make carrier pickup appointments via phone and email. Today, 100% of the carriers that do business at Red Gold’s facilities book their appointments through Opendock—which amounts to some 60,000 appointments annually. Among other benefits, the new platform has drastically reduced the amount of time it takes for a carrier to book an appointment—with Opendock, appointments are scheduled one to two days out instead of 10 or more.
Second, the company installed Loadsmart’s ShipperGuide TMS, a transportation management and request-for-proposal (RFP) management system. The platform helps Red Gold avoid spreadsheets and administrative work. For example, instead of individually emailing RFPs to a few carriers, the company can now send RFPs through the TMS to many more carriers than was feasible in the past and easily compare the rates carriers submit in response. In addition, Red Gold was able to automate some 70% of its load tenders, or about 25,000 shipments, which allowed the company to reduce headcount without any interruptions in workflow.
Third, Red Gold began working with Loadsmart’s digital freight brokerage team to convert some of its full truckload movements to partial truckloads. That move expanded both its carrier base and its freight mode options, saving it $200,000 annually.
All in all, since it began using Loadsmart’s technology and services, Red Gold has reduced appointment leadtimes by 90% and saved 17% on annual LTL freight costs, according to the two companies. Red Gold is so pleased with those results that its logistics team has already begun working with the technology vendor on additional opportunities for improvement.
With that money, qualified ports intend to buy over 1,500 units of cargo handling equipment, 1,000 drayage trucks, 10 locomotives, and 20 vessels, as well as shore power systems, battery-electric and hydrogen vehicle charging and fueling infrastructure, and solar power generation.
For example, funds going to the Port of Los Angeles include a $412 million grant to support its goal of achieving 100% zero-emission (ZE) terminal operations by 2030. And following the award, the Port and its private sector partners will match the EPA grant with an additional $236 million, bringing the total new investment in ZE programs at the Port of Los Angeles to $644 million. According to the Port of Los Angeles, the combined new funding will go toward purchasing nearly 425 pieces of battery electric, human-operated ZE cargo-handling equipment, installing 300 new ZE charging ports and other related infrastructure, and deploying 250 ZE drayage trucks. The grant will also provide for $50 million for a community-led ZE grant program, workforce development, and related engagement activities.
And the Port of Oakland received $322 million through the grant, which will generate a total of nearly $500 million when combined with port and local partner contributions. Altogether, that total will be the largest-ever amount of federal funding for a Bay Area program aimed at cutting emissions from seaport cargo operations. The grant will finance 663 pieces of zero-emissions equipment which includes 475 drayage trucks and 188 pieces of cargo handling equipment.
Likewise, the Port of Virginia said its $380 million in new funding will help to reach its goal of eliminating all greenhouse gas emissions by 2040. The grant money will be used to buy and install electric assets and equipment while retiring legacy equipment powered by engines that burn gasoline or diesel fuel.
According to AAPA, those awards will demonstrate to Congress that the Clean Ports Program should become permanent with annual appropriations. Otherwise, they would soon cease to be funded as backing from the Inflation Reduction Act (IRA) comes to a close, AAPA said. “From the earliest stages of legislative development in Congress, America’s ports have been ecstatic about and committed to the vision of implementing a novel grant program for the port industry that will complement and strengthen existing plans to diversify how we power our ports,” Cary Davis, AAPA’s president and CEO, said in a release. “These grant funding awards will usher in a cleaner and more resilient future for our ports and national transportation system. We thank our champions in Congress and the Biden-Harris Administration for committing to us and we look forward to working closely with our Federal Government partners to get these funds quickly deployed and put to work.”
The majority of American consumers (86%) plan to reduce their holiday shopping budgets this year, with nearly half (47%) expecting to cut spending by more than 50% compared to last year, according to consumer research from Relex Solutions.
The forecast runs against some other studies that predict the upcoming holiday shopping season will be a stronger than last year, with higher sales and earlier shopping than 2023.
But Finland-based Relex says its conclusion is based on the shorter holiday shopping period of 27 days in 2024 (five days shorter than 2023), combined with economic volatility and supply chain disruptions. The research includes survey responses from 1,000 U.S. consumers in October 2024.
According to Relex, those results reveal a complex landscape where price sensitivity and decreased brand loyalty are reshaping traditional retail dynamics. That means retailers and manufacturers must carefully balance promotional strategies with profitability while maintaining product availability, since consumers are actively seeking better value and may switch between brands more readily.
"Retailers are facing a highly challenging season, with consumers prioritizing value more than ever. To succeed, retailers must not only offer attractive promotions but also ensure those deals don’t erode their margins. At the same time, manufacturers need to optimize their operations and collaborate with retailers to deliver value without sacrificing profitability," Madhav Durbha, Relex’ group vice president of CPG and Manufacturing, said in a release. The company says it provides a supply chain and retail planning platform that optimizes demand, merchandising, supply chain, operations, and production planning.
"This holiday season represents a critical juncture for the retail industry," Durbha added. "With reduced brand loyalty and a shorter shopping window, there’s no room for error. Retailers and manufacturers need to work together closely, leveraging AI-powered tools to anticipate demand, manage inventory, and run effective promotions," Durbha said.
In additional findings, the survey found:
Brand loyalty is eroding: About 45% of consumers say they're less likely to remain loyal to brands without meaningful discounts, while 41% will switch brands if faced with both poor deals and out-of-stock products.
Digital channels dominate deal-seeking behavior: Store and brand apps (60%) and email promotions (60%) are the primary channels for finding deals, while only 32% of consumers primarily search for deals in physical stores.
Supply chain concerns remain significant: Nearly 85% of shoppers express concern about potential disruptions, with electronics (60%) and clothing/accessories (57%) being the categories of highest concern.
Age significantly impacts shopping behavior: Consumers from age 45-60 show the highest economic sensitivity, with 60% cutting budgets by more than 50%, while shoppers aged 18-29 prioritize product availability over price.