The American Society of Civil Engineers (ASCE) today issued the nation's infrastructure a "D+" grade for the second time in four years, meaning the massive network encompassing everything from highways, rails, and ports to the water supply and the energy grid remains in fair to poor condition, but with capacity deteriorating near the point of failure.
The nation's roads, one of 16 infrastructure categories, but perhaps the most visible because virtually every American uses and relies on them, received a "D" grade. The nation's inland waterways also received a "D," while bridges and ports each received "C+" grades. The U.S. rail network, which encompasses the freight rail system and the Amtrak passenger rail operation, was the only category to receive a "B" grade, largely on the back of the significant annual investments made by freight railroads, which rely primarily on their own revenues and borrowing to maintain and improve their facilities.
ASCE called for a ramp-up of annual investment to an equivalent of 3.5 percent of U.S. GDP, compared with current levels of 2.5 percent. With US GDP coming in at $18.5 trillion in 2016, this would translate into an increase to $647.5 billion from $462.5 billion. The Trump administration is fast-tracking efforts to develop an infrastructure spending plan that is likely to approach $1 trillion a year. Late last month, the White House appointed DJ Gribbin, former general counsel of the Department of Transportation (DOT) under President George W. Bush, as special assistant to the president for infrastructure policy.
The group repeated its call for increases in federal taxes on diesel fuel and gasoline, levies that have not been changed since 1993. It also urged that policymakers take a closer look at the merits of a tax imposed on the number of miles a vehicle travels, noting that such a tax would capture consumption from electric-powered cars and trucks, and would take into account the enhanced per-mile fuel-efficiencies found in later-model vehicles.
The 2017 report card represents the first time that ASCE has embedded a discussion about funding in its broad conclusions. The group issued its first report card in 1998, and since 2001 has published its findings every four years. The 2017 report card was drafted by a team of 28 civil engineers, who grade each infrastructure category using eight criteria.
Among the findings:
The average delay per lock on the nation's inland waterway system nearly doubled to 121 minutes from 64 minutes between 2000 and 2014. Nearly half of all vessels experienced some form of delay in 2014, the last period for which full-year data was available. The report lauded the U.S. Army Corps of Engineers, which maintains the 25,000-mile network, for utilizing increased funding levels from government and users to expedite the completion of various lock and dam rehabilitation projects.
About 9 percent of the country's 614,387 bridges were in such poor condition last year as to be classified structurally deficient, according to the report. On average, there were 188 million trips per day across structurally deficient bridges, ASCE said. The number of bridges declared structurally deficient has been decreasing, the report found. However, the age of the typical span continues to rise, with 40 percent of bridges 50 years old or more, according to the report.
Port productivity declined by 25 percent or more over the past 10 years due to an increasingly congested landside network connecting ports, railroads, and highways ASCE said, citing port-industry data. Under the five-year federal transport-funding bill signed into law in late 2015, landside connections are scheduled to receive $11 billion in new funding. However, those intermodal connections are expected to require $29 billion in funding over that time, according to the report.
More than two out of every five miles of America's interstate highways near urban areas are congested, and traffic congestion costs the U.S. about $160 billion a year in delays and wasted fuel, according to ASCE. One out of every five miles of highway pavement is in poor condition, the report found. There is currently a $420 million capital backlog to pay for highway repair, the report found.
Capital allocated to fixing road infrastructure would be money well spent, according to the report. Citing data from DOT's Federal Highway Administration, ASCE said that each dollar spent on road, highway, and bridge improvements returns $5.20 in the form of lower vehicle maintenance costs; reduced traffic delays and fuel consumption; improved safety; lower road and bridge maintenance costs; and carbon emission cuts due to improved traffic flow.
Statements from trade groups reflected the sobering realities facing the millions of infrastructure stakeholders. The grades "provide yet another example of what occurs when a nation underinvests in the critical infrastructure systems that support economic development and quality of life," said Bud Wright, executive director of the American Association of State Highway and Transportation Officials (AASHTO). Wright said long-term, structural funding changes that go beyond even the five-year intervals mandated under the 2015 funding law are needed.
Kurt Nagle, president and CEO of the American Association of Port Authorities (AAPA), said the slight improvement in port grades (to C+ from a C in 2013) indicates that while some progress has been made, much work still needs to be done. Nagle acknowledged the poor condition of landside connections, contending that the federal government isn't adequately investing in those links to keep freight moving efficiently. The mediocre grade "reinforces our view that the federal government is still underinvesting in the landside and waterside connections to ports," Nagle said.
Autonomous forklift maker Cyngn is deploying its DriveMod Tugger model at COATS Company, the largest full-line wheel service equipment manufacturer in North America, the companies said today.
By delivering the self-driving tuggers to COATS’ 150,000+ square foot manufacturing facility in La Vergne, Tennessee, Cyngn said it would enable COATS to enhance efficiency by automating the delivery of wheel service components from its production lines.
“Cyngn’s self-driving tugger was the perfect solution to support our strategy of advancing automation and incorporating scalable technology seamlessly into our operations,” Steve Bergmeyer, Continuous Improvement and Quality Manager at COATS, said in a release. “With its high load capacity, we can concentrate on increasing our ability to manage heavier components and bulk orders, driving greater efficiency, reducing costs, and accelerating delivery timelines.”
Terms of the deal were not disclosed, but it follows another deployment of DriveMod Tuggers with electric automaker Rivian earlier this year.
Manufacturing and logistics workers are raising a red flag over workplace quality issues according to industry research released this week.
A comparative study of more than 4,000 workers from the United States, the United Kingdom, and Australia found that manufacturing and logistics workers say they have seen colleagues reduce the quality of their work and not follow processes in the workplace over the past year, with rates exceeding the overall average by 11% and 8%, respectively.
The study—the Resilience Nation report—was commissioned by UK-based regulatory and compliance software company Ideagen, and it polled workers in industries such as energy, aviation, healthcare, and financial services. The results “explore the major threats and macroeconomic factors affecting people today, providing perspectives on resilience across global landscapes,” according to the authors.
According to the study, 41% of manufacturing and logistics workers said they’d witnessed their peers hiding mistakes, and 45% said they’ve observed coworkers cutting corners due to apathy—9% above the average. The results also showed that workers are seeing colleagues take safety risks: More than a third of respondents said they’ve seen people putting themselves in physical danger at work.
The authors said growing pressure inside and outside of the workplace are to blame for the lack of diligence and resiliency on the job. Internally, workers say they are under pressure to deliver more despite reduced capacity. Among the external pressures, respondents cited the rising cost of living as the biggest problem (39%), closely followed by inflation rates, supply chain challenges, and energy prices.
“People are being asked to deliver more at work when their resilience is being challenged by economic and political headwinds,” Ideagen’s CEO Ben Dorks said in a statement announcing the findings. “Ultimately, this is having a determinantal impact on business productivity, workplace health and safety, and the quality of work produced, as well as further reducing the resilience of the nation at large.”
Respondents said they believe technology will eventually alleviate some of the stress occurring in manufacturing and logistics, however.
“People are optimistic that emerging tech and AI will ultimately lighten the load, but they’re not yet feeling the benefits,” Dorks added. “It’s a gap that now, more than ever, business leaders must look to close and support their workforce to ensure their staff remain safe and compliance needs are met across the business.”
The “2024 Year in Review” report lists the various transportation delays, freight volume restrictions, and infrastructure repair costs of a long string of events. Those disruptions include labor strikes at Canadian ports and postal sites, the U.S. East and Gulf coast port strike; hurricanes Helene, Francine, and Milton; the Francis Scott key Bridge collapse in Baltimore Harbor; the CrowdStrike cyber attack; and Red Sea missile attacks on passing cargo ships.
“While 2024 was characterized by frequent and overlapping disruptions that exposed many supply chain vulnerabilities, it was also a year of resilience,” the Project44 report said. “From labor strikes and natural disasters to geopolitical tensions, each event served as a critical learning opportunity, underscoring the necessity for robust contingency planning, effective labor relations, and durable infrastructure. As supply chains continue to evolve, the lessons learned this past year highlight the increased importance of proactive measures and collaborative efforts. These strategies are essential to fostering stability and adaptability in a world where unpredictability is becoming the norm.”
In addition to tallying the supply chain impact of those events, the report also made four broad predictions for trends in 2025 that may affect logistics operations. In Project44’s analysis, they include:
More technology and automation will be introduced into supply chains, particularly ports. This will help make operations more efficient but also increase the risk of cybersecurity attacks and service interruptions due to glitches and bugs. This could also add tensions among the labor pool and unions, who do not want jobs to be replaced with automation.
The new administration in the United States introduces a lot of uncertainty, with talks of major tariffs for numerous countries as well as talks of US freight getting preferential treatment through the Panama Canal. If these things do come to fruition, expect to see shifts in global trade patterns and sourcing.
Natural disasters will continue to become more frequent and more severe, as exhibited by the wildfires in Los Angeles and the winter storms throughout the southern states in the U.S. As a result, expect companies to invest more heavily in sustainability to mitigate climate change.
The peace treaty announced on Wednesday between Isael and Hamas in the Middle East could support increased freight volumes returning to the Suez Canal as political crisis in the area are resolved.
The French transportation visibility provider Shippeo today said it has raised $30 million in financial backing, saying the money will support its accelerated expansion across North America and APAC, while driving enhancements to its “Real-Time Transportation Visibility Platform” product.
The funding round was led by Woven Capital, Toyota’s growth fund, with participation from existing investors: Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good and Yamaha Motor Ventures. With this round, Shippeo’s total funding exceeds $140 million.
Shippeo says it offers real-time shipment tracking across all transport modes, helping companies create sustainable, resilient supply chains. Its platform enables users to reduce logistics-related carbon emissions by making informed trade-offs between modes and carriers based on carbon footprint data.
"Global supply chains are facing unprecedented complexity, and real-time transport visibility is essential for building resilience” Prashant Bothra, Principal at Woven Capital, who is joining the Shippeo board, said in a release. “Shippeo’s platform empowers businesses to proactively address disruptions by transforming fragmented operations into streamlined, data-driven processes across all transport modes, offering precise tracking and predictive ETAs at scale—capabilities that would be resource-intensive to develop in-house. We are excited to support Shippeo’s journey to accelerate digitization while enhancing cost efficiency, planning accuracy, and customer experience across the supply chain.”
Donald Trump has been clear that he plans to hit the ground running after his inauguration on January 20, launching ambitious plans that could have significant repercussions for global supply chains.
As Mark Baxa, CSCMP president and CEO, says in the executive forward to the white paper, the incoming Trump Administration and a majority Republican congress are “poised to reshape trade policies, regulatory frameworks, and the very fabric of how we approach global commerce.”
The paper is written by import/export expert Thomas Cook, managing director for Blue Tiger International, a U.S.-based supply chain management consulting company that focuses on international trade. Cook is the former CEO of American River International in New York and Apex Global Logistics Supply Chain Operation in Los Angeles and has written 19 books on global trade.
In the paper, Cook, of course, takes a close look at tariff implications and new trade deals, emphasizing that Trump will seek revisions that will favor U.S. businesses and encourage manufacturing to return to the U.S. The paper, however, also looks beyond global trade to addresses topics such as Trump’s tougher stance on immigration and the possibility of mass deportations, greater support of Israel in the Middle East, proposals for increased energy production and mining, and intent to end the war in the Ukraine.
In general, Cook believes that many of the administration’s new policies will be beneficial to the overall economy. He does warn, however, that some policies will be disruptive and add risk and cost to global supply chains.
In light of those risks and possible disruptions, Cook’s paper offers 14 recommendations. Some of which include:
Create a team responsible for studying the changes Trump will introduce when he takes office;
Attend trade shows and make connections with vendors, suppliers, and service providers who can help you navigate those changes;
Consider becoming C-TPAT (Customs-Trade Partnership Against Terrorism) certified to help mitigate potential import/export issues;
Adopt a risk management mindset and shift from focusing on lowest cost to best value for your spend;
Increase collaboration with internal and external partners;
Expect warehousing costs to rise in the short term as companies look to bring in foreign-made goods ahead of tariffs;
Expect greater scrutiny from U.S. Customs and Border Patrol of origin statements for imports in recognition of attempts by some Chinese manufacturers to evade U.S. import policies;
Reduce dependency on China for sourcing; and
Consider manufacturing and/or sourcing in the United States.
Cook advises readers to expect a loosening up of regulations and a reduction in government under Trump. He warns that while some world leaders will look to work with Trump, others will take more of a defiant stance. As a result, companies should expect to see retaliatory tariffs and duties on exports.
Cook concludes by offering advice to the incoming administration, including being sensitive to the effect retaliatory tariffs can have on American exports, working on federal debt reduction, and considering promoting free trade zones. He also proposes an ambitious water works program through the Army Corps of Engineers.