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.
Amazon.com Inc. is working to recruit thousands of owner-operators who will haul for Amazon's last-mile delivery services, attendees at the NASSTRAC annual shippers conference in Orlando were told today.
Seattle-based Amazon has set a target of 30,000 drivers by the time the operation is fully scaled up, according to Lance Healy, co-founder of Cleveland-based logistics IT firm Banyan Technology, who disclosed Amazon's plans during a panel at NASSTRAC.
The Seattle-based e-tailing giant is also working, on a limited basis, with Paul Hanson Partners, which operates a web pOréal for firms like Amazon to determine whether contract carriers have proper insurance documentation and appropriate operating permits. The pOréal also provides links to driver background-check and drug-screening programs, as well as other verification services that a company may require when vetting and contracting with prospective carriers.
Napa, Calif.-based Paul Hanson does not help companies search for and recruit contractors, according to President and CEO Lisa Paul. "Each freight broker we work with has their own recruitment solutions, and the data we store is exclusive to the company we contract with for services," Paul said in an e-mail. "Our strategy is to help freight brokers bring on contractors faster with greater transparency to the quality of that carrier."
Under a typical on-boarding process, prospective drivers are vetted to ensure they are in compliance with various state and federal requirements. Once the driver passes the initial screen, the pOréal will then provide the carrier with the necessary operating certificates and insurance documentation.
Some of the drivers who sign up may have commercial drivers licenses (CDLs). However, because CDLs are not required for drivers who operate vehicles of less than 26,001 pounds and aren't carrying hazardous materials, the license would not be an absolute requirement, especially since many of Amazon's shipments weigh 5 pounds or less.
In addition, drivers operating within a 100- to 150-air-mile radius would either be exempt from the same federal "hours of service" rules governing driver operations, or would be subject to looser restrictions. It is believed that many of the hauls for Amazon would fall within that mileage range.
As outlined at the NASSTRAC event, on-boarded drivers will carry goods over relatively short lengths of haul from Amazon customers to one of the e-tailer's many fulfillment centers. Drivers will also carry outbound goods, also over short stage lengths, from the fulfillment center to the destination.
The operation supported by the on-boarding platform resembles that of a less-than-truckload (LTL) model, where an Amazon fulfillment center would act as a hub to receive inbound traffic from various shippers and then consolidate those goods for transportation to the final destination, Healy said after the panel. "This is Amazon's answer to LTL," he said.
It is also Amazon's latest step in a multi-year strategy to build out a global transport and logistics network that would fulfill and deliver its own goods ordered from its web site as well as shipments from third-party merchants using the company's "Fulfillment by Amazon" service. A growing percentage of orders placed on Amazon are for the products of these third parties. Amazon has made no secret of its desire to control more of its supply chain to meet the surging demand of goods shipped under its Amazon "Prime" service, where, for a flat annual fee, customers get two-day deliveries of millions of eligible items.
Within the past year two years, Amazon has agreed to lease 40 cargo airplanes and purchased thousands of 53-foot truck-trailers. Its Chinese subsidiary has received authority from the U.S. government to operate as a non-vessel operating common carrier (NVOCC) to move oceangoing cargo from China to the U.S. under its own bill of lading. It announced plans in February to build an air hub in Cincinnati to support the two-day delivery product. Earlier this week, John G. Larkin, analyst for investment firm Stifel, wrote that he was told by a reliable source that Amazon has placed a large order for tractors to haul the large trailers.
Editor's note: This is a revised version of an earlier story. It clarifies Paul Hanson Partners' services, and its involvement with Amazon.
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).
While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.
In addition to its human toll, the storm could exert serious business impacts, according to the supply chain mapping and monitoring firm Resilinc. Those will be largely triggered by significant flooding, which could halt oil operations, force mandatory evacuations, restrict ports, and disrupt air traffic.
While the storm’s track is currently forecast to miss the critical ports of Miami and New Orleans, it could still hurt operations throughout the Southeast agricultural belt, which produces products like soybeans, cotton, peanuts, corn, and tobacco, according to Everstream Analytics.
That widespread footprint could also hinder supply chain and logistics flows along stretches of interstate highways I-10 and I-75 and on regional rail lines operated by Norfolk Southern and CSX. And Hurricane Helene could also likely impact business operations by unleashing power outages, deep flooding, and wind damage in northern Florida portions of Georgia, Everstream Analytics said.
Before the storm had even touched Florida soil, recovery efforts were already being launched by humanitarian aid group the American Logistics Aid Network (ALAN). In a statement on Wednesday, the group said it is urging residents in the storm's path across the Southeast to heed evacuation notices and safety advisories, and reminding members of the logistics community that their post-storm help could be needed soon. The group will continue to update its Disaster Micro-Site with Hurricane Helene resources and with requests for donated logistics assistance, most of which will start arriving within 24 to 72 hours after the storm’s initial landfall, ALAN said.