Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
When contract logistics specialist DHL Supply Chain wanted to improve security at company warehouses in Mexico and Brazil, the Deutsche Post DHL Group unit deployed flying drones with surveillance cameras.
When transportation and logistics service provider XPO Logistics Inc. wanted to beef up security in its employee parking lots, the company rolled out mobile security robots outfitted with video cameras, heat sensors, two-way speakers, and alarm sirens.
Both companies are turning to new technologies to address the age-old problem of safety and security at distribution centers, parking lots, loading docks, and yards. Drones and sensors are taking on larger roles in facility and yard systems, providing capabilities like airborne reconnaissance and 24-hour surveillance that previous generations of systems could not offer.
"Robots offer exciting new capabilities in terms of productivity and security," XPO President Troy Cooper said in an e-mail. During a test beginning in October 2017 at XPO's Atlanta facility, the use of robots reduced the number of security incidents while cutting costs, Cooper said. XPO declined to share specific numbers on the extent of the reductions. In addition to cutting down on incidents like trespassing, car break-ins, and car damage, the robots ensure a workplace is free of intruders and that no suspicious vehicles are parked at a facility, Cooper said.
Drones are becoming an increasingly common sight in transportation applications, according to a March survey by the American Association of State Highway and Transportation Officials (AASHTO). The survey found that 35 out of 44 responding state departments of transportation—or 80 percent—are using drones for tasks including bridge inspections, surveying, photography of highway construction projects, emergency response, and daily traffic control and monitoring.
The ability of drones and other sensors to collect a wide range of data also makes them well suited for applications in busy warehouse yards and facilities, technology providers say.
SENSORS ENHANCE SECURITY
Yard management systems provider Pinc Solutions, a Union City, Calif.-based firm known for its drone deployments, said customers are typically concerned about four types of security in the yard: visitors, trailers, drivers, and containers. Yard management systems can address all of those concerns by using sensors to automatically monitor wide areas, Pinc said.
First, a yard system can track visitors, keeping an electronic log of all people who arrive at a facility, recording when they come, how long they stay, and when they leave, said Rafael Granato, the company's marketing director. Second, yard systems can use drones and cameras to track the location of trailers, allowing supervisors to quickly search for missing units and to determine if they have been misplaced or have already departed the grounds.
Third, a system can track individual drivers, allowing facility managers to monitor drivers who don't behave according to company policies. Lastly, video systems can verify the presence of container seals during gate check-in and checkout, Granato said. This allows a facility to verify its role in the chain of custody, he added.
Cargo theft is a common security concern in warehouse yards, said Walt Swietlik, director of customer relations and sales support for Milwaukee-based Rite-Hite, a provider of loading dock equipment and safety barriers. To help deter thieves from making off with loaded trailers, the Milwaukee-based company offers a trailer restraint that connects a truck trailer or intermodal container to the warehouse dock both with physical hooks and with an electronic connection to the building's security system.
"By far our number one concern is trailer theft and hijacking," Swietlik said. "Year in and year out, loading docks are one of the top locations [for trailer theft]."
Another common problem is unauthorized persons entering a yard to gain access to a building, Swietlik said. Even if these visitors don't intend to steal equipment or inventory, they can present a safety problem by wandering around dangerous loading zones and high-traffic lanes, he said. Because loading docks are often left open to allow for quick loading and unloading of cargo, they offer an easy target for thieves. In response, yard management providers are using sensor-based systems such as security doors, access controls, and motion sensors to prevent unwanted pedestrians from wandering around the yard and DC, he said.
STAYING A STEP AHEAD OF THE CROOKS
Another area where sensors can provide a big payoff is in the tracking and reporting of inventory—a task that's becoming increasingly critical for shippers across all industries, according to Maynard, Mass.-based logistics software vendor Kuebix, which specializes in transportation management systems (TMS). In a recent blog post on its website, the company warned that thieves are changing their tactics in ways that often catch shippers off guard. Rather than stealing entire loads or multiple pallets, they're "lifting" small amounts of product at a time, according to the blog post, "Cargo thieves' new strategy hitting shippers hard." This allows thieves to quickly escape, often leaving victims unaware anything was taken, Kuebix said.
To protect against that threat, companies can collect data from sensors, radio-frequency identification (RFID) tags, and global positioning system (GPS) tracking units, tying those inputs together with Internet of Things (IoT) platforms in the yard, Kuebix said. They can then analyze the data and use it for applications like locating trucks and drivers in real time, reviewing how long a truck stayed at a particular checkpoint, and tracking and tracing individual pallets as well as identifying any unusual patterns of activity.
Integrating RFID and GPS data into a yard management system is a crucial tool for improving security measures, according to Ed Moran, managing director and senior vice president for sales and marketing, Americas, at Transporeon Group, a German company that develops cloud-based logistics platforms. Whether that data is generated by a driver's smartphone app, an electronic logging device (ELD), or a hovering drone, users can use it to improve yard security and reduce the risk of lost shipments or trucks as well as cargo theft or damage, he said.
Collecting that data may be cumbersome at first, but users can streamline the process by coupling their dock scheduling and yard management solutions with tracking systems and sensor technology, Moran said. That approach can automate the process of performing security checks like locating lost trailers, ensuring that all the trucks in a yard are supposed to be there, and detecting when a certain truck has remained in the yard longer than expected.
Regardless of which types of tools it chooses, deploying monitoring technologies can improve a facility's ability to keep track of both inventory and personnel on site. And that capability will always be important at bustling docks and busy yards.
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."