This humble piece of material handling equipment is getting more sophisticated in terms of design, technology, and applications. What will they do next?
Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.
Walk into any warehouse, distribution center, retail stockroom, grocery store, or transportation operation and you're sure to see pallet jacks and pallet trucks. These ubiquitous pieces of equipment are typically used for moving pallets over long distances as well as into and out of trailers and low-level storage. They include manual versions—essentially a pull handle and forks on wheels—and electric-powered walk-behind trucks ("walkies") and operator-aboard walkie/riders.
These warehouse stalwarts have been undergoing a transformation. While manual pallet jacks haven't changed significantly, powered pallet trucks—the primary focus of this article—have far more capabilities than they did just a few years ago. (Although the terms are often used interchangeably and with many variants, this article generally uses "pallet jack" for those that are driven manually and "pallet trucks" for powered types.) According to the manufacturers we polled, there are many more improvements to come. Here's an overview of how they've changed and what they might be like in the future.
NEW DESIGNS FOR NEW PLACES
As pallet truck applications and demands change, so must the equipment's design and capabilities. For example, because a grocery operation nowadays may run 20 hours a day, seven days a week, pallet trucks and jacks must be designed to reliably work longer in harsh environments such as cold storage, says Susan Rice, product manager, pallet trucks and stackers, for The Raymond Corp. With more customers using this type of equipment on delivery trucks, Raymond has moved to the IP65 standard of ingress protection against dust and water. "This allows [end users] to take the equipment on the street and work in rain or snow—that was unheard of 10 years ago," she says.
Pallet trucks overall have been getting smaller and lighter, with lower capacities, says Bill Pedriana, director of sales and marketing at Big Lift LLC, maker of Big Joe forklifts. In large part, that's because the growth of e-commerce, just-in-time delivery, and direct-to-store delivery (DSD) requires more drivers to maneuver pallets through commercial doorways, in retail backrooms, and in truck trailers. Those changing needs prompted his company five years ago to introduce a 3,000-pound-capacity electric pallet truck with the same size and shape as a manual pallet jack. According to Pedriana, the E30 was the first electric that could go wherever a manual could. Demand is so strong, he adds, that it has become the company's all-time best-seller.
The popularity of direct-to-store delivery not only creates a need for maneuverability in small spaces but also places a premium on stability, says David McNeill, manager of product strategy for warehouse products at Yale Materials Handling Corp. It's increasingly common for pallet trucks to carry loads over doorjambs, parking lots, and curbs, he notes. As an example of equipment that was designed with such tight quarters and bumpy terrain in mind, he cites Yale's MPB045VG motorized hand truck, with its six-inch battery box, stability casters, load-retention strap, and moveable load backrest for multiple pallets.
Although they're typically used for floor-level handling, pallet trucks are exploring new territory off the ground, too. Second-level order pickers—rider pallet trucks that can elevate operators to a height of about 32 to 38 inches, as shown in the photo at right—are starting to migrate from Europe to North America. According to Rice, few companies here are using them so far, but interest in this type of equipment is "phenomenal," particularly among companies that don't have enough floor space for all of their stock-keeping units (SKUs). Because second-level pickers allow operators to quickly access both the first and second level of storage with the same piece of equipment, users can add SKUs without slowing operations or having to expand the facility. Currently, European equipment designed for comparatively light duty is available here, Rice says, but Raymond will introduce a heavier-duty second-level picker designed for and built in North America in 2017.
HOT TECHNOLOGY ON BOARD
Technology is helping pallet trucks work harder, smarter, and faster in applications old and new. For example, new materials are improving strength and durability without increasing the weight of the truck itself. Rice mentions thermo elastomers (essentially rubberized plastic), ductile iron (made by infusing magnesium into steel), and high-strength low-alloy (HSLA) aluminum. All are more flexible and resilient than the traditional low-carbon steel but weigh much less.
A promising but still developing advancement is the adoption of alternative energy sources such as hydrogen fuel cells and lithium-ion batteries, says Mark Koffarnus, director of national accounts for Hyster Co. Fuel cells are gaining momentum as the fueling options and infrastructure catch up to the fuel cell technology itself, he says, while lithium-ion batteries are making headway, in part because they offer "a very attractive economic return on investment." The lithium-ion pack on Hyster's W45ZHD walkie, for example, has a lifespan of five-plus years, lasting up to five times longer than traditional battery solutions, he says.
McNeill believes lithium-ion batteries are well suited for DSD operations. For one thing, they can be opportunity-charged from a standard 120V outlet, whether in the trailer while en route or at a delivery site. For another, they are smaller and lighter than lead-acid batteries, making them a good fit for pallet trucks that must maneuver in tight spaces like delivery trailers, store aisles, and doorways, he says.
Martin Brenneman, electric product planning specialist at Toyota Material Handling, U.S.A., Inc., reports that Toyota is seeing the most interest in lithium-ion among customers using smaller pallet trucks, and several are using this type of battery in 4,500-pound-capacity equipment. But they are still limited to certain specialized applications, as not all customers would realize a favorable return on investment, he says. That could soon change: Several of our sources predicted that in the next one to three years, the price of lithium-ion batteries will come down enough to make them more widely accepted for pallet trucks.
Onboard technology is helping pallet trucks become complex machines with an array of sophisticated capabilities. Just a few examples cited by the experts we contacted include technology that automatically slows the unit during cornering for better control and load stability, software that forces pallet trucks to travel with elevated forks, and onboard diagnostics and displays that provide feedback on truck and battery performance directly to the operator. Another example: Toyota offers an operator keypad that allows up to 10 unique operator logins. Each operator login can have its own maximum speed and acceleration settings, customizing the pallet truck for operators with different skill levels or for different operating areas within a facility.
Telematics solutions, which wirelessly send data and instructions to and from lift trucks, are incorporating electric pallet trucks into the industrial Internet of Things. Just as the technology has done for fleets of larger forklifts, telematics systems such as Raymond's iWarehouse, Yale Vision, Hyster's Tracker, and others are opening up a trove of previously unavailable data about pallet trucks. For example, Crown Equipment Corp.'s InfoLink, which is available on all of its electric pallet trucks, "provides customers with information to make better business decisions and improve the bottom line, particularly around asset utilization, safety, and productivity," says Steve Harshbarger, the company's marketing product manager.
Pallet trucks are also pioneers in the robotics revolution. Crown's semiautomated QuickPick Remote, controlled by a wireless signal transmitted from a special glove, follows alongside an operator, eliminating the need to step on and off and boosting picking productivity. Raymond's Courier, Yale's "Driven by Balyo," Linde's T-Matic, and a number of other robotic pallet trucks go even further, functioning like automated guided vehicles (AGVs) and moving around the warehouse independently to pick up and drop off pallets. They use a variety of technologies—lasers, vision guidance systems, GPS, or other methods, depending on the manufacturer—to map and navigate their environment.
An interesting question is whether the growing sophistication of pallet truck design and technology has had an appreciable impact on the equipment's price, reliability, and maintenance costs. Both Pedriana and Rice say modern pallet trucks' initial price, maintenance costs, and lifespan have been relatively consistent with those seen in recent years. They also suggest that the equipment's added utility, value, and operational costs savings are the most important metrics. Others have a different take. McNeill's opinion is that, generally speaking, an increase in capability will mean an increase in initial product cost. "However, thanks to reduced maintenance needs and other operating expenses, the end user ultimately receives a more cost-effective solution over the life of the product," he says.
One feature was cited more than any other as having had a beneficial impact on maintenance costs and productivity: the introduction of three-phase AC motor technology in pallet trucks. AC motor and controller technology, combined with the proper industrial batteries, helps manage the energy used and provides controlled acceleration when operators are moving materials throughout a warehouse, says Perry Ardito, general manager of warehouse products at MCFA, which provides Mitsubishi, Cat, and Jungheinrich lift trucks in North America. Such an increase in efficiency often results in longer operating times that can be extended with different battery options, he explains. And because the AC drive motor has no carbon brushes, it reduces the need for maintenance, ensuring significant long-term reduction in downtime for routine service and maintenance.
A number of other features and enhancements have led to increased durability and reduced cost per hour of operation. Koffarnus of Hyster highlights design improvements for rough surfaces and environments, as well as to undercarriages, drive trains, controllers, ergonomics, and automated solutions. Others we consulted mentioned tougher materials and hardware, and better protection against the elements.
Toyota's Brenneman sums it up this way: "The good news for pallet truck owners is that technology pays off in terms of the cost of operation, maintenance, and productivity." In fact, he adds, the lifespan of modern pallet trucks is "generally as good as or better than the 'built like a tank' pallet trucks of yesteryear."
A LOOK INTO THE FUTURE
Manufacturers have found many ways to make pallet trucks more efficient, more cost effective, and appropriate for a wider range of applications. But they're not done yet. When asked how the pallet trucks of the future will differ from those on the market today, experts contacted for this article had the following predictions:
There will be more customization, and more product solutions will be linked to specific problems, says Rice. She gives the example of Raymond's Pick2Pallet product, which uses different-colored LED lights mounted on a pallet truck's double-length forks to direct batch picks to the correct pallet. The solution, which interfaces with the customer's warehouse management software and voice-directed picking system, originally was developed for a grocery customer who wanted to batch pick but found the picking error rate to be too high. Customers using the solution have reduced placement errors by up to 25 percent.
Ergonomics and safety will guide many future design decisions, says Pedriana. Manufacturers are focusing on pallet trucks in light of the trend toward empowering workers with more tools to make their jobs easier and safer, he says. That includes providing more information and direction to the operator, making controls simpler and more intuitive, and enhancing safety and ergonomics through auto-assist features. "They see opportunities to drive a reduction in injuries and employee turnover ... by getting people away from manual equipment," he explains. Changing views on ergonomics—focusing not on the impact of a specific activity but on the cumulative effects of warehouse work over time—will reinforce the focus on equipment design as a means to reduce fatigue and physical stress.
As technology continues to evolve, walkie pallet trucks will continue to become more energy efficient, says Ardito of MCFA. In addition, some features that are designed to increase operator comfort and protection, currently available as options, will eventually become standard.
"Integration" will become an important word, says Hyster's Koffarnus. He foresees pallet trucks with integrated energy solutions (for example, onboard chargers), which could dramatically change their profile. He also sees pallet trucks being integrated into automated solutions at a minimal cost, with savings coming from driverless operation.
Despite all those futuristic forecasts, there's still a place for the manual pallet jack in today's warehouses and DCs. They're appropriate for moving lightweight, compact loads over short distances; they're simple to operate; and they're safest for use by new and temporary workers. They don't require batteries, charging, or maintenance, and there's always that low, low price—about $200 to $500 per unit.
Furthermore says Harshbarger of Crown, proven equipment that still has a purpose should be viewed as "smart and functional, not old-fashioned." As material handling demands evolve and change, the equipment, of course, must change along with them, he says. Ultimately, though, the focus should be on end-user satisfaction and operational efficiency. "If operators have the right equipment to safely, reliably, and efficiently do their work," he says, "the age of the design is not significant."
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."