Staying ahead of Mother Nature: interview with John Bosse
Drivers and fleets can't control the weather, but John Bosse of The Weather Company believes that, with a little help, they have the ability to effectively plan for it.
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.
It's wintertime, and the truck driving is far from easy. For fleets and drivers, January means delays, safety hazards, and general misery across a large swath of the country. With that in mind, The Weather Company, which provides solutions to help businesses—including the world's airlines—minimize the impact of the elements on their operations, established a program tailored to the rig warriors.
In an interview with Mark B. Solomon, DC Velocity's executive editor-news, John Bosse, The Weather Company's offering manager, travel and transportation, talked about the Atlanta-based business's approach to helping truckers cope with the weather, the role of the Internet of Things in its value proposition, and the cost of weather-related accidents on the supply chain.
Q: You were acquired by IBM Corp. in 2015. What did IBM purchase?
A: IBM acquired our business solutions group, our advertising business that is now Watson Advertising, and The Weather Channel's digital properties, which include The Weather Channel app, Weather.com, and Weather Underground. IBM did not acquire the Weather Channel broadcast network.
Q: Truck fleets for years have traditionally relied on National Weather Service (NWS) reports and other sources of secondary research to help plan routes and driver schedules. Can you describe how your service works and how it differs from what's already out there?
A: Our operations dashboard complements the data provided by the National Weather Service with weather information tailored to specific customers. Additionally, we go beyond zone forecasts and can provide temporal and spatial resolution, offering a forecast over more than 2.2 billion locations around the entire globe. This means that drivers can understand what is ahead of them no matter what their destination.
Q: How do you define ROI (return on investment) for your service, and can you provide an example of how a customer has benefited from using it?
A: When we look at ROI for trucking, we consider two key issues: accident prevention and delay mitigation. Combining both issues, here's an example of potential ROI for a 5,000-truck fleet. There were over 430,000 large-truck accidents on U.S. roadways in 2014. That means accidents affected about 4 percent of the estimated 11 million large trucks on the road that year. Using that ratio, an operator of a 5,000-truck fleet can expect 200 accidents a year. By arming drivers with advance knowledge of expected hazardous weather, they are able to plan around it or at least be adequately prepared for it. This knowledge can reduce accidents by at least 5 percent, at an estimated cost of $148,000 per accident. This results in a $1.5 million savings for the company.
When it comes to delay mitigation, it is estimated that the average cost of congestion is $5,664 per truck in the U.S. With advance weather knowledge, coupled with our traffic flow and incident data, we are seeing at least a 5-percent reduction in delays. This converts to $1.3 million in annual savings for the same 5,000-truck fleet.
Q: Can you describe a solution that you would provide to a carrier?
A: A typical solution would involve a combination of services. Drivers and driver business leaders would have access to our "Operations Dashboard" app to track weather and traffic on their routes before they drive. This situational awareness would help them select the right routes, maximize their hours of service, and increase safety. In addition, driving alerts are designed to notify drivers via their in-cab telematics systems when hazardous weather is reported on the road ahead. This lets the driver stay focused on the road but anticipate conditions that will impact both travel speeds and safety by giving them time to change or pull off the road if conditions warrant. Additionally, drivers can combine our weather and traffic data with their own dispatch and asset tracking displays.
Q: What non-IT tips would you give to fleets to help them get ahead of the elements?
A: We like to say that drivers should "brief before you drive." Pilots don't enter a cockpit without a weather briefing, and neither should drivers. With the tools available today, drivers can be better prepared for what lies ahead if they take a minute to review traffic flow, traffic incidents, and the expected road weather conditions before getting in the cab. A quick review during a drop-and-hook or after a fuel stop can improve situational awareness for the next several hours.
Q: What was the catalyst to extend The Weather Company's reach into truck transport?
A: For 40 years, we have worked with global airlines to provide the foundational weather tools used in their daily operations. The extension into surface transport seemed natural, especially with IBM's deep roots serving the industry. The two industries parallel each other more than is visible, and it has everything to do with route optimization, enhanced safety, and maximized performance and efficiency. Ground drivers are the pilots on the ground; they have the same needs when it comes to potential weather conditions. Add into the equation that there are other drivers on the roads causing traffic, and you begin to get a clearer view of why solutions are needed that can help reroute drivers and get them to their destinations with the same safety and efficiency parameters as those given to aviation.
Q: Is the module available to shippers and third-party logistics service providers (3PLs) that work with truckers on behalf of their shipper customers?
A: Yes it is. The service is available across all corners of the industry.
Q: Do you have any data to quantify the cost of bad weather on the trucking ecosystem?
A: Bad weather costs the U.S. trucking industry more than $14 billion annually. According to the Department of Transportation, 22 percent of all U.S. traffic accidents are weather-related. Additionally, we know there were 438,000 large-truck accidents in 2014. So approximately 96,360 of those accidents were likely to be weather-related. If you look at the average cost per trucking accident, which we believe to be $148,000, and the number of total weather-related incidents in a year, it calculates out to more than $14 billion in costs.
Q: Can you describe the role that the Internet of Things (IoT) plays in your weather forecasting model for trucks?
A: IoT is a critical piece of improving the driving experience because data collected from vehicles greatly deepens the volume and quality of real-time observations. This detailed understanding of the road state will move us far beyond the few thousand Road Weather Information System (RWIS) sensors that report today, enabling the monitoring of more roads and improving road-surface forecasts.
Q: Can truckers use these tools for nonbusiness-related purposes?
A: Absolutely. Our dashboard has all of the standard weather features and information that you would see on television or on the Internet. In fact, The Weather Company supplies most of the weather data and graphics used by local broadcasters. This means truckers can plan for short and longer road trips in their "off-time," as well as look for daily and weekly weather conditions.
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."