West Coast waterfront management late Friday suspended this weekend's vessel loading and unloading operations at 29 ports,
saying it will no longer pay longshoremen engaged in deliberate efforts to paralyze commerce along the coast.
The Pacific Maritime Association (PMA) said yard, rail, and gate operations—namely the moving of processed containers for
truck and rail delivery to customers—will continue at terminal operators' discretion. Vessel operations are set to resume
Monday, PMA said.
"After three months of union slowdowns, it makes no sense to pay extra for less work," said PMA spokesman Wade Gates in a
statement. "Especially if there is no end in sight to the union's actions which needlessly brought West Coast ports to the
brink of gridlock."
The announcement comes 48 hours after PMA submitted an "all-in" contract offer to the International Longshore and Warehouse
Union (ILWU) in an effort to end a nine-month contract stalemate that has prevented ships from unloading their imports and has
left exports sitting (and in the case of some perishables, rotting) because their goods can't get moved out of terminals.
PMA's five-year contract offer calls for a 3-percent base rate increase for full-time workers, no change in health insurance
coverage that is already considered one of the best in the nation, and an 11.1-percent hike in the union's current maximum
pension benefit. This offer would bring the top-of-the-line payout to $88,800 per year. Management's proposal allows ILWU to
keep jurisdiction over the maintenance and repair of truck chassis equipment, a major victory for the union because PMA wanted
to outsource the work to nonunion labor. On Jan. 26, under the guidance of a federal mediator, the two sides reached a tentative
agreement on the chassis maintenance issue.
In a Feb. 4 statement broadcast on PMA's website, Jim McKenna, the group's president, warned that a "coastwide meltdown is a
week or two away." Ships remain anchored in harbors, and cargo is piling up inside terminals due to the alleged ILWU work slowdown
that has been underway since the end of October, according to PMA. Although management has not explicitly said so, it hinted that
the first employer lockout of workers since 2002 is possible if the union doesn't accept the proposal and the ports begin what will
be a slow process to resume normal operations.
McKenna said the latest proposal is the best management can offer at this time.
ILWU President Robert McEllrath struck a somewhat conciliatory tone on Wednesday, saying in a statement that a deal is within
reach and that the "few issues that remain can be easily resolved." McEllrath pledged that ILWU will keep the ports open and
warned that closing the ports at this point "would be reckless and irresponsible."
However, ILWU's rhetoric heated up the next day when it released photos on its website purportedly showing large swaths of
open space at the docks of either a port or ports, none of which were identified. The union was attempting to refute management's
claim that the alleged worker slowdown was clogging ports with containers and forcing ships to remain either anchored and fully
loaded or sitting out in the water.
For his part, McKenna said in a separate statement that as of yesterday the two sides have been unable to "bridge the
considerable gaps" between them. He charged that the union has "made significant new demands" in the talks, including seeking to
change a long-held process for selecting arbitrators so it could remove those arbitrators who rule against them.
The two sides have worked without a contract since the prior pact expired July 1. Normal port operations were maintained
through the summer and part of the fall. According to PMA, however, ILWU around Halloween began staging deliberate work
slowdowns by not making skilled workers, such as crane operators, available at terminals during peak periods. By withholding
the services of workers critical to keeping freight moving, the ILWU intentionally created bottlenecks that dramatically slowed
productivity, according to PMA.
At the ports of Seattle and Tacoma, for example, terminal productivity was cut in half, PMA said. ILWU has blamed the
congestion on employer mismanagement of the chassis network that has resulted in significant equipment shortages. Steamship
lines, which used to provide chassis for free, have been exiting the business, leaving the provisioning, for the most part, in
the hands of private chassis pools. The transition has been difficult, according to all stakeholders.
Cargo backlogs have worsened as ships sit on the water with no place to offload their cargo. As of Friday morning, 18
containerships and six bulk ships were anchored at the harbor outside Los Angeles and Long Beach, according to Philip
Sanfield, a spokesman for the Port of Los Angeles. At the Port of Oakland, five ships are at anchor and 11 are idling beyond
the Golden Gate Bridge, Mike Zampa, a port spokesman, said later in the day.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use AI-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next 1-3 years. That was followed by self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) that are planned for use within the next three years, specifically for loss prevention.
Those strategies could help improve the brick and mortar shopping experience, since 78% of shoppers say it’s annoying when products are locked up or secured within cases. Adding to that frustration is that it’s hard to find an associate while shopping in stores these days, according to 70% of consumers. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
The survey also identified additional frustrations faced by retailers and associates:
challenges with offering easy options for click-and-collect or returns, despite high shopper demand for them
the struggle to confirm current inventory and pricing
lingering labor shortages and increasing loss incidents, even as shoppers return to stores
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.
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.