Experts advise focusing on structure, safety, and automation when implementing new storage racking in today’s fast-paced temperature-controlled facilities.
Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.
When it comes to maintaining a safe and efficient cold storage warehouse, material handling experts say it’s best to start with the basics. And that means the right storage racking, which can serve as a building block in today’s fast-paced refrigerated and freezer environments. The need for freshness means that products are moving in and out quickly in these settings, increasing the risk of equipment damage and employee injuries, and putting quality and safety at the top of any warehouse manager’s operations checklist. Rising demand for cold storage nationwide is exacerbating the trend.
“In these environments, there are a lot of fast-moving parts [because you’re] bringing in and taking out product at a very high rate. … People operating lift equipment are moving at such a fast pace, there’s a higher probability of damage with the racking itself,” explains Skip Eastman, former CEO and current board member at Twinlode Corp., the parent company of Indiana-based material handling solutions provider Twinlode Automation. “And if we’re talking about a freezer, people can’t stay in there for an excessive amount of time, even with insulated clothing.”
As a result, Eastman and others say good design and proper installation of racking systems is taking on a higher profile today, especially as organizations look toward automated solutions to boost efficiency and productivity. This applies to all types of rack solutions, from standard storage racking to pallet flow rack to systems that incorporate conveyors and automated storage and retrieval (AS/RS) solutions. Whether a company is looking for better ways to maintain its current system or ideas for implementing a new one, the experts say leaders should focus on three essential points: structure, safety, and automating for the future.
“The racking and storage design in any temperature-controlled warehouse should be, first and foremost, structurally sound, installed with flexibility in mind, and built for the long term,” says Justin Kukal, vice president of automation strategy and implementation for Agile Cold Storage, an Atlanta-based company launched this year that is building a nationwide network of automated and conventional temperature-controlled warehouses. “A quality manufacturer and steel supplier make or break your long-term rack investment.”
STRUCTURALLY SOUND
Eastman agrees that structure makes a difference in harsh environments and says that racks made from structural steel are the best option for cold or freezer storage, where lower temperatures can affect the toughness of the racking system, making it more susceptible to damage if hit by a forklift or other equipment. Structural steel rack is hot rolled, its components welded together, making it strong enough to support very heavy loads and better able to withstand forklift impact. In comparison, roll-formed rack is cooled and then molded into different shapes and often features adjustable supports and shelves. This type of racking is often more versatile but not as durable in cold environments. Eastman also recommends reinforcing the structural steel supports and adding impact protection on the aisles of cold storage racking to help minimize damage from forklifts or other equipment—again, because the harsh environment can increase the risk of damage from impact.
“[In my experience], customers who do that have fewer problems with trying to replace parts after they are damaged,” he explains.
Burnie Taylor, COO and senior vice president at Agile Cold Storage, agrees, adding that the evolution of rack design and other technologies allows for better solutions across the board. As one example, he says low-oxygen fire-prevention technology—which reduces the oxygen in an environment to a level that keeps fires from igniting—eliminates the need for in-rack sprinkler systems and has made it more feasible to build higher structures that better utilize a facility’s cubic capacity. Such systems are often implemented in AS/RS environments, where human exposure to low oxygen can be minimized.
“Better manufacturing processes have increased the tensile strength of racking, and designs are being engineered to last,” adds Taylor. “The sub-technologies that work within the racking, such as fire protection and prevention, have evolved as well, allowing for taller and less-intrusive rack designs.”
Eastman says the finish on the rack is important too. Products must be processed, cleaned, and painted properly to avoid peeling and to withstand cleaning and sanitizing processes, which vary based on the customer’s operation. More complex systems—those that involve conveyors or other automation, for instance—may need to include shielded or sealed bearings or sealed motors, depending on the environment.
“One of the most important things is that whoever you work with has a clear-cut understanding of your environment,” Eastman says. “You have to select the right people to be working with so they are in tune with what goes on in your organization.”
SAFE AND SECURE
Beginning with a secure structure is the first step toward ensuring a safe racking system. Eastman, Kukal, and Taylor emphasize that the best-quality materials, reinforced and installed properly, will create a solid structure that can withstand the fast-paced traffic and extreme temperatures of a cold-storage environment.
Training is the other key element, according to Taylor. Quite simply, having the right people, with the right equipment, doing the right things is the best way to maintain a safe and efficient culture, he says.
“[Companies should] ensure that employees are trained and equipped with the standard personal protective equipment as well as specialized equipment such as thermal protection and fall protection,” he explains, adding that the advent of high-bay racking—which features multiple levels of storage and allows more pallet locations in a given footprint—has increased the need for safety equipment and training. Such systems take advantage of ceiling height, adding vertical storage that can be accessed via reach trucks, cranes, or automated systems. Depending on the environment, companies may need to add specialized equipment such as narrow-aisle forklifts or personnel lifts and platforms that allow access to the higher levels. All of these scenarios require “a robust safety program for your front-line maintenance and leadership team members,” Taylor says.
Eastman reiterates the importance of working with trusted suppliers.
“There are so many [elements to consider] when it comes to safety,” he says, pointing to local building codes, fire codes, insurance issues, and broader industry guidelines that play into the safe design and installation of racks. “The way we store [items] and the density we’re allowed to store them is predicated on local codes, but you also have to make sure all these are within the requirements of whoever is insuring the building. … [As a result], you need to make sure you are working with people that can help you with the process; they may not have all the answers, but they should be able to help you find them.”
AUTOMATE FOR THE LONG TERM
Automation is quickly becoming a trend in cold storage, and two elements are driving it: speed and a chronic labor shortage. Automation can help improve both safety and productivity in the warehouse, addressing the need to get products in and out quickly in a climate that makes it tough to attract workers. E-commerce is a factor as well. Recent research points to growing demand for cold storage facilities nationwide, in part due to an increase in e-grocery delivery. Online grocery sales are expected to increase 13% by 2022, according to research from commercial real estate giant CBRE. Nearly half of U.S. consumers already shop for packaged food products online, a figure that is expected to rise to 70% by 2022, the company also said. A large portion of that will likely be perishable food items, requiring more freezer/cooler space for storage and distribution, CBRE researchers wrote in a late 2019 report titled Food on Demand: Cold Storage Logistics Unpacked.
A shift toward AS/RS and other automated solutions will help organizations make the best use of those spaces and keep pace with the growing volume of products and deliveries.
“In today’s environment, everything moves even faster than [it did just a few] years ago, so you have to start looking into an automation phase,” Eastman explains.
Automation can reduce employees’ exposure to harsh conditions, for example, and as a result, speed the loading and unloading process while freeing up labor for other warehouse tasks. Eastman points to AS/RS as a common solution in cold storage environments, noting that such systems can be fully automated or semi-automated depending on an organization’s needs. Kukal adds that the broader cold storage industry is moving toward fully automated high-bay rack-supported structures as a way to accommodate demand for more products and faster delivery—a trend that also begins with a “back to basics” approach focused on proper structure and design.
“With high-bay rack-supported structures, you have the ability to maximize the storage density, and the automation eliminates most, if not all, damage caused due to rack strikes by conventional forklifts,” he explains. “The challenge for most racking providers has shifted to including the load requirements for the structures as well as the pallet loads being stored.”
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."