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.
Corporate CIOs aren't shrinking violets when competing for budget dollars. If it walks, talks, or quacks technology, they'll push ROI projections and lobby hard for the stuff. But mention the word "blockchain" and the CIOs' attitudes suddenly get adjusted. They become Star Trek's stone-cold Mr. Spock to the emotional Captain Kirk, forced to tamp down the demands of their besotted CEOs to "get me some blockchain!"
Part of the caution stems from the notion that the CIOs' bosses have no idea what a blockchain is or what it does. A blockchain is not a product, service, or database. It is a process, one with enormous promise but whose broad uptake is far from assured. It was first utilized to support the Bitcoin crypto-currency, which buyers and sellers use to execute transactions outside of the normal banking ecosystem. But leveraging a blockchain across multiple industries, while certainly feasible, will require much work, robust collaboration between many parties, and a challenging transition to what could end up being different sets of laws and regulations.
"Managing expectations will be critical over the next two years as CIOs try to rein in CEOs who don't understand blockchain, but are sold on its potential," Ken Craig, senior vice president, special projects for Birmingham, Ala.-based McLeod Software, a trucking software provider, told a meeting of the executive council of the "Blockchain in Trucking Alliance (BiTA)," an industry standards group, in mid-November in Atlanta. Craig co-founded BiTA with Craig Fuller, founder of TransRisk, the first futures market for truckload spot-market pricing, which had its coming-out party in late October.
Given the blockchain's superheated hype, expectation management could be a tall order. According to Fuller, 561 companies have applied to join BiTA, a number he reckons makes the group the largest vertical involved in blockchain. About one-third of the applicants have interests that extend beyond trucking, Fuller said. There is little doubt that many are IT firms exploring profitable ways to refresh trucking's reputation as a technological backwater and bring it into the 21st century. There is also keen interest in how a blockchain process could transform an industry where time and the chain of custody mean everything, and where the bill of lading—the standard contract of carriage—still rules the roost. About 30 attendees were expected at the BiTA council meeting, but about 160 showed up, Fuller said.
What blockchain is
A blockchain is a distributed ledger that creates a transparent and indelible trail of each transaction, free of hackers and of so-called trusted third parties such as lawyers, bankers, and other intermediaries who've historically filled overseer's roles. In its simplest form, parties within an extended supply chain add "blocks" of information to the broader chain. The blocks could identify as much information as the stakeholders deem necessary for the transaction to progress and be consummated. Cheating would be virtually impossible, because each step in a transaction, whether open to the public or restricted to specific stakeholders (the latter being what is envisioned in trucking) would be witnessed by everyone in the chain.
At the heart of a blockchain's appeal is the development of so-called smart contracts, or self-executing contracts that would not require a third party to validate them. As envisioned, contracts could be converted to computer code, stored, then replicated on the system and supervised by a network of computers that run the blockchain. Smart contracts enable the exchange of money, property, shares, or anything of value in a transparent and conflict-free way, while avoiding the services of a middleman, according to supporters of the blockchain process. Like a traditional contract, these new compacts would define applicable rules and automatically enforce those obligations, proponents say. Smart contracts are the "holy grail" of the blockchain concept, said Craig of McLeod.
It is no secret that global supply chains running on legacy systems often get bogged down in the back-and-forth of obtaining multiple approvals for transactions, and are vulnerable to loss and fraud. A blockchain prevents this by providing a secure and quickly accessible digital version to all parties in the chain, advocates say.
"We all collectively work to integrate one level upstream or downstream through point-to-point integration. But then we lose the ability to view the extended supply chain beyond those direct relationships," Shanton Wilcox, a partner at Infosys Consulting, a Palo Alto-based firm that works with logistics providers, among other fields, said in a recent webcast sponsored by the investment firm Stifel.
By charting each step of a transaction in the form of blocks that are validated before they are added, a blockchain process cuts the time lag incurred in achieving extended visibility and reduces the risk of information being corrupted as it moves through the chain, Wilcox said.
Companies that have explored a blockchain for transportation have done so gingerly, to say the least. Danish ocean carrier Maersk Line is probably the furthest along, having completed a test of managing Maersk's cargoes using blockchain in collaboration with IT giant IBM Corp. Retail behemoth Wal-Mart Stores, Inc. is testing blockchain technology, mostly to track food shipments with its suppliers, according to Gartner Inc., a consultancy that presented at the Atlanta event. Japanese automaker Toyota Motor Corp. is considering a blockchain technology to track auto parts from the point of manufacturing to assembly plants in other countries, Gartner said.
What blockchain isn't
One wag at the BiTA event referred to a blockchain as "the thing that enables the thing." Scrambled syntax notwithstanding, the description is not far from accurate. Because it isn't a product or service, a blockchain doesn't replace technologies currently in use. Rather, it augments existing business-to-business integration systems with what Craig called a "shared visibility overlay." The challenge for developers and users will be to determine where a blockchain fits within the framework of the current IT mosaic, Bart de Muynck, research director at Gartner, said at the Atlanta event.
As with other very nascent processes, the jury is out on how a blockchain would actually perform. A present-day blockchain cannot handle a lot of data and is not scalable, experts said at the conference. Attaining the ultimate objective of executing smart contracts will depend on Congress, states, or the courts writing and interpreting laws granting them legal authority, a process that could take years.
There will also be new scrutiny placed on the software developers who are writing code to enable a blockchain. One of the pre-meeting conversations centered on whether a blockchain would dis-intermediate lawyers, who have long filled the role of a trusted third party. One attendee replied that lawyers would still be needed to help ascertain liability in the event of a problem, and that they will be riding herd on the developers. Not surprisingly, blockchain advocates said it is critical to establish a transitional mechanism between paper and smart contracts, and to produce a totally bug-free system for smart contracts.
Speakers at the BiTA event emphasized that blockchain processes will not advance without a well-thought-out strategy, rock-solid collaboration among vested interests, and a strong set of industry standards governing folks with different agendas operating in what could become a radically changed world. As one attendee said, "What we are talking about is doing away with traditional trusted parties that have existed for centuries, and replacing them with technology, and with each other."
A version of this story appeared in our January 2018 issue under the title "The block is hot."
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
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.”