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.
John Lennon wrote "life is what happens to you while you're busy making other plans." Kathy Fulton, head of operations for the American Logistics Aid Network (ALAN), which matches logistics resources with the disaster-response needs of aid groups, may not have been making plans on Aug. 17, 2013. However, life intervened in a sudden and tragic way. Fulton was told that, the night before, her boss, John T. (Jock) Menzies, ALAN's charismatic co-founder, had fallen 200 feet from a malfunctioning cable car near his Annapolis, Md., home. Menzies, 69 and in otherwise fine health, died of his injuries the next day.
Amid her shock and grief, Fulton knew that, for the interim at least, she had been elevated to become the face of ALAN. She was committed to maintaining the core beliefs and principles that Menzies developed when ALAN was formed in 2005 after Hurricane Katrina. A change of direction was not on the radar screen.
Fulton wasn't angling to be named permanent executive director, but this past September, ALAN's board appointed her to the post. She starts her first full year in the top job with formidable volunteer support. In September, Joel Anderson, the retired president and CEO of the International Warehouse Logistics Association (IWLA), joined ALAN to coordinate fundraising activities. At the same time, Felicia Alexander, a long-time business and nonprofit executive, came on board to expand ALAN's efforts within California.
Fulton spoke recently with Executive Editor Mark B. Solomon about her role, the state of global logistics humanitarian efforts, and her commitment to continue on the trail that Menzies blazed.
Q: When you joined ALAN in 2010, you were essentially "on loan" for one year from your IT position at Saddle Creek Logistics Services. At what point did you decide to remain with ALAN?
A: I was hooked from my first work volunteering in 2008, when I provided technology support during hurricanes Gustav and Ike. So, I was thrilled when [Saddle Creek President] Cliff Otto asked if I would like to work for ALAN. I think two simultaneous events solidified my view. At the ProMat show in March 2011, we exhibited a project to benefit the Greater Chicago Food Depository. We demonstrated how supply chain expertise was truly critical to humanitarian activities. The response from show attendees was overwhelmingly positive. Unfortunately, during the show, the Japan earthquake, tsunami, and nuclear accident occurred. That really hit home, especially as we started to see the impact on supply chain activities due to the infrastructure damage, the information challenges, and the loss of life. As an "insider," it was humbling to watch it unfold. I recognized that there would always be a need for ALAN.
Q: What was the thinking behind bringing in Joel Anderson and Felicia Alexander? A: Joel brings a unique network and passion to the organization. He will help us build a sustainable funding stream so ALAN has the financial support to continue its work. Because of Joel's deep understanding of how logistics providers work, he can ensure that not only are we looking to the right organizations to help meet disaster needs, but that we are also delivering the right disaster information and educational content to meet the needs of the business community.
Felicia is the first person we've signed up under our state liaison volunteer program. She has run her own business and served on nonprofit boards. That rare blend of perspectives is allowing us to bridge the gap between business and nonprofit activities. The liaison program is designed to expand our reach and help more organizations. Having local representation is critical to building relationships and quickly leveraging local capabilities that someone from another part of the country might not even know exist.
Q: The Ebola epidemic in West Africa is ALAN's first major test under your leadership. Can you describe the organization's response efforts, and what have you learned from this endeavor that can be applied to improve the group's future efforts? A: The Ebola response activities are complex due to multiple modes of travel and nodes of origin/destination. To date, the air bridge has delivered over 650,000 pounds of personal protective equipment and medical supplies. Our role has been the coordination of U.S. ground logistics, as well as making introductions internationally for sources of temporary warehouse storage. Our association partners have generated great leads for sourcing the warehousing, transportation, and material handling equipment necessary to support this work.
It has also reminded us that disaster relief is a continuum and that interest wanes as media moves on to the next big story. But just because you don't hear about it doesn't mean support isn't still needed. Even now, we're receiving requests to help with cleanup activities from the flooding in Detroit earlier this year, recovery work after the 2013 tornadoes in Illinois, and even requests as homes are rebuilt from the destruction of Superstorm Sandy.
Q: Speaking of Sandy, we are at its two-year anniversary as we speak. Can you provide an update on where the recovery stands, the logistics community's involvement in it, and what ALAN has taken away from that experience? A: Rebuilding efforts continue slowly due to a myriad of reasons, and logistics support remains a critical need. Nonprofit groups that provide donated labor for home rebuilding need to move and store materials and tools. Sandy taught us many things, but most importantly, it reminded us that relationships that are in place prior to a disaster are going to be the ones that get used.
Q: You take over a well-established organization. What is your strategic vision for ALAN? Where do you see the group, say, five years from now? A: One of the first things ALAN's board did after Jock's passing was to review the vision and mission statements and to ask ourselves—who are we, who should we be, and how do we get there? Jock started a great deal of this work in 2012 and 2013, so it was really just pulling together all of the pieces. Our vision is to change the way people prepare for, respond to, and recover from disasters. We want to help reduce not just the time it takes to get supplies to people who need them after a disaster, but to, as Jock often said, "wire the networks" so that the impact of the disaster itself is reduced. The more that we prepare together, the more that we understand each other's capabilities, and the more that we build the trust needed to work together, the more resistant we'll be to the effects of a disaster. I'd love to have an ALAN liaison volunteer in every state and an expert across every supply chain discipline. We've got some rebuilding to do, but we have committed volunteers, association partners, sponsors, and advisers to help us along the way.
Q: Give us a sense of the state of logistics relief aid today. Where have you seen the most progress? And where does more work need to be done? A: Disaster relief in general is still a system of fragmented, independent responses. There is increased recognition that "together we can do more," but the mechanisms for communicating and coordinating the roles of each group are not yet well developed. People want to help—independently, corporately. However, because there isn't a way for the general public or even most businesses to plug in, people get frustrated and do their own thing.
We really see a need for distributed coordination of activities. That's the focus of our cross-sector disaster simulation programs. Each sector may still work independently, but if we can share information and resources, there is a much greater chance that disaster needs will not be duplicated or overlooked. There are lots of great ideas out there—we want to help bring together the people with those ideas and get the best ideas moved from theory to practice.
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."