Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.
IF YOU ASK THEM, most forklift operators, fleet managers, and warehouse workers will say that safety is their number-one priority. They’ll probably also say that they continually think about safety while they’re at work. More often than not, though, such assertions are closer to aspiration than reality.
Yet it is possible to develop an environment where every employee and contractor actually does consider safety to be his or her responsibility and does think about it throughout the workday. That describes a “safety culture,” which Don Buckman, Hyster Co.’s environmental health and safety manager, defines as “a set of beliefs, attitudes, and actions consistently adopted by everyone in the organization to make the right decisions that value safety.”
The word “everyone” is key: A successful safety culture requires each individual to value and prioritize safety, regardless of his or her position on the organization chart. “We want every person who comes to work, including not just forklift drivers but also office staff, to have a ‘zero injury mindset,’” says Ed Johannesen, director of manufacturing for UniCarriers Americas (UCA).
It’s neither quick nor easy to ensure that everyone is safety-focused and compliant at all times. Rather, it’s a long-term initiative that requires sustained attention. “Safety culture is something that must be cultivated over time,” says Brian Duffy, director of corporate environmental and manufacturing safety for Crown Equipment Corp. “It’s not something that can be created or forced.”
Though it requires time and effort, there are plenty of reasons why developing a safety culture is worthwhile. In addition to fewer injuries, they include higher productivity, lower costs, reduced product and equipment damage, and better compliance with regulations. Here’s one more: A safety culture encourages co-workers to look out for each other’s well-being. “If we truly are treating each other like family, then we care enough to make sure others don’t put themselves in dangerous positions,” says Toyota Material Handling Brand Ambassador Tom Lego.
The consequences of failing to develop and maintain a safety culture can be dire. In a May 2019 blog post, Thelma Marshall of TotalTrax, a provider of forklift telematics systems, cites the example of a forklift operator who backed over a pedestrian; after numerous surgeries, the accident victim’s leg was amputated, and the resulting lawsuit was settled for $9 million. Such mishaps occur when “workers get complacent with repetitive work and ignore safety measures,” Marshall wrote. Indeed, during the trial, the operator admitted to being careless about basic safety protocols.
As the above example suggests, developing a safety culture among forklift operators and other warehouse and DC personnel requires employees to change both their mindset and their behavior. The baseline for accomplishing that: clear, consistent communication and collaboration across the facility.
10 WAYS TO GET YOUR SAFETY PROGRAM STARTED
The U.S. Occupational Safety and Health Administration’s (OSHA) “Safe and Sound” initiative helps companies of all sizes improve safety in the workplace. OSHA suggests completing the following steps to provide a foundation for a more comprehensive health and safety program. Many of these steps involve soliciting and incorporating recommendations from workers; for example, during inspections, managers should ask workers to identify any activity, piece of equipment, or material that concerns them. The steps include:
Clear, effective communication by and for everyone—not just forklift operators but pedestrians too—is vital. Even nonverbal communication can lead to big improvements when everyone adopts them. Hyster Co., for example, asks pedestrians to “wait for the wave.” Whether employees or visitors, pedestrians do not proceed until the forklift operator waves to them. This conveys the message that “I see you, I value your safety, and I will wait and wave you on,” Buckman explains.
More broadly, safety communications should be shared through multiple channels—horizontal, vertical, and peer-to-peer. UCA, for example, always starts major meetings with a safety-related topic; this reinforces the idea that safety is the first priority, Johannesen says. Because informal discussions can also be effective, UCA makes sure line supervisors and managers are “fluent in safety” and know how to communicate guidance to their direct reports and others in a facility. Regardless of who is delivering the safety messages, Johannesen adds, they must be aligned and consistent across the organization.
Training, of course, is a fundamental element of safety communication. Facilities with a forklift safety culture typically go above and beyond the minimum safety training requirements set by the U.S. Occupational Safety and Health Administration (OSHA). And because a safety culture by definition encompasses everyone in a facility, their programs generally include pedestrians too. Anyone who enters a facility should receive a safety orientation and periodic refresher training on how to be safe in an environment where forklifts are operating, Lego says.
An essential element of any operator-training program is hands-on safety demonstrations and instruction, says Joe Tomkiewicz, director, consumer trades and durable goods for Yale Materials Handling Corp. He also recommends assigning an experienced mentor to work with new employees during training sessions. “This practice helps ensure that important legacy knowledge is passed on to new hires, enabling them to meet demanding performance standards while respecting safety protocols,” he says.
A different approach may be more effective for experienced employees who have been doing things their own way for years. They might be resistant to new expectations associated with a safety-focused culture. For them, Johannesen says, “this is really about implementing and managing change, just like in any other business or industry.”
Strong safety programs also use a variety of methods to deliver training and guide operators to follow best practices. Advancements such as virtual reality-based instruction, which allows operators to practice safe operating techniques using a simulator on a stationary lift truck, and e-learning are effective when used in addition to traditional safety lectures and in-person instruction, says Dave Norton, vice president, customer solutions and support, for The Raymond Corp. Outside the classroom, technologies like warehouse and labor management systems and forklift telematics enhance safety by allowing organizations to connect and communicate directly with an operation’s fleet management, assets, and workforce, he notes. Forklift telematics, for example, use sensors and wireless transmission to direct, track, and measure some of the lift truck’s and the operator’s activities and performance. This capability makes it possible to identify operators who require additional training. On the flip side, reports, alerts, and remote controls can help to reinforce desired behaviors.
COME TOGETHER
The safest facilities are those where employees take to heart their responsibility for each other’s safety. For mutual responsibility to become a way of life, people must take a collaborative approach to fixing problems. When a mistake, an accident, or a near-miss occurs, it’s important that a working group of employees from different levels, not just managers, come together to understand what happened and take corrective measures right away, Lego says. A safety culture will give similar weight to developing a long-term action plan to prevent similar problems from occurring in the future. Information about the incident as well as the short- and long-term solutions should be shared across the organization so people can learn from each other and work with accurate information, not hearsay, he adds.
Among the most important ways co-workers can help each other be safe is to speak up when they see a hazard or unsafe behavior. But most people are reluctant to approach a co-worker—especially someone they may not know well—with what may be perceived as a criticism.
Behavior-based safety programs leverage human psychology to overcome that obstacle and encourage collaboration. These voluntary programs empower employees to speak to each other about risky behavior and provide positive reinforcement when they see safe behavior. A key success factor for this type of program is that employees both understand and are accountable for the consequences of their behavior.
Crown has had an employee-run behavior-based program, called SafeSteps, in place for about 10 years. When they speak with co-workers, the volunteer observers (many of Crown’s warehouse and factory employees currently participate) use positive language to express concerns about people’s safety, Duffy says. This includes discussing the consequences of unsafe actions and their potential impact on co-workers. Peers also recognize and thank each other for what they did right. Observers note on scorecards whether or not their peers performed specified tasks safely and whether the observer gave verbal feedback. Importantly, participants are coached on how to give feedback so that recipients will be receptive to it.
Companies that have adopted these programs say that over time, they lead to safer workplaces and fewer injuries. Behavior-based safety programs offer other benefits as well. Duffy, for one, cites stronger, more positive relationships among peers, while Johannesen, whose company adopted a behavior-based safety program about two years ago, has seen a positive impact on injury rates, product quality, and, in some cases, operating costs. Employees are more engaged too: “In some departments, everyone is thinking and talking about safety now,” he says.
SIGNS OF SUCCESS
No matter how committed to achieving a safety culture a facility may be, there are bound to be some roadblocks along the way. Oftentimes, says Toyota’s Lego, the root cause is an imbalance among the three pillars of industrial performance—safety, quality, and productivity. He uses the analogy of juggling. All three “balls” have to keep moving at the same pace; they are so interrelated that if there’s too much emphasis on one, then one or both of the others will suffer in some way. If the facility puts too much emphasis on hitting productivity targets, for instance, “that sets a poor precedent, because you’re communicating to your people that numbers are more important than their safety,” he says. Importantly, he adds, nothing should ever allow the safety “ball” to be dropped.
If the entire organization—from top management to the shop floor to the back office—is not aligned, then efforts to develop a safety culture will be undermined. When that’s the case, says Johannesen of UniCarriers, it’s important to help the resisters overcome their objections. “If you can see that some people don’t quite buy into [a safety initiative], have early adopters and safety champions work with them in advance or on the side,” he suggests. “If you can get some quick wins and generate some buzz, that can also help to bring those people on board.”
How do you know when you’ve successfully implemented a safety culture among forklift operators, pedestrians, and others in your warehouse or DC? From a quantitative standpoint, effective preventive measures will result in more streamlined processes, fewer work disruptions, and greater productivity, says Raymond’s Norton, adding that continuous monitoring of data generated by telematics and labor management systems will reflect improvements and shed light on new opportunities for optimization.
Duffy of Crown Equipment points to “leading indicators” that suggest whether a safety culture has not only been achieved but is also likely to continue. In a 2019 National Forklift Safety Day presentation, he characterized the development of a safety culture as a “journey.” In the early stages, employees believe safety and plant or DC managers are responsible for safety, and the focus is on compliance and injury investigations. Later, when all employees consider themselves to be responsible for safety and push each other to improve, that’s an indicator that safety has become part of the company’s culture and that it will continue over the long term. Ultimately, Duffy says, “the core of the program is worker engagement and ownership, not just ‘participation.’ You have to get to a higher level than that.”
Most of the apparel sold in North America is manufactured in Asia, meaning the finished goods travel long distances to reach end markets, with all the associated greenhouse gas emissions. On top of that, apparel manufacturing itself requires a significant amount of energy, water, and raw materials like cotton. Overall, the production of apparel is responsible for about 2% of the world’s total greenhouse gas emissions, according to a report titled
Taking Stock of Progress Against the Roadmap to Net Zeroby the Apparel Impact Institute. Founded in 2017, the Apparel Impact Institute is an organization dedicated to identifying, funding, and then scaling solutions aimed at reducing the carbon emissions and other environmental impacts of the apparel and textile industries.
The author of this annual study is researcher and consultant Michael Sadowski. He wrote the first report in 2021 as well as the latest edition, which was released earlier this year. Sadowski, who is also executive director of the environmental nonprofit
The Circulate Initiative, recently joined DC Velocity Group Editorial Director David Maloney on an episode of the “Logistics Matters” podcast to discuss the key findings of the research, what companies are doing to reduce emissions, and the progress they’ve made since the first report was issued.
A: While companies in the apparel industry can set their own sustainability targets, we realized there was a need to give them a blueprint for actually reducing emissions. And so, we produced the first report back in 2021, where we laid out the emissions from the sector, based on the best estimates [we could make using] data from various sources. It gives companies and the sector a blueprint for what we collectively need to do to drive toward the ambitious reduction [target] of staying within a 1.5 degrees Celsius pathway. That was the first report, and then we committed to refresh the analysis on an annual basis. The second report was published last year, and the third report came out in May of this year.
Q: What were some of the key findings of your research?
A: We found that about half of the emissions in the sector come from Tier Two, which is essentially textile production. That includes the knitting, weaving, dyeing, and finishing of fabric, which together account for over half of the total emissions. That was a really important finding, and it allows us to focus our attention on the interventions that can drive those emissions down.
Raw material production accounts for another quarter of emissions. That includes cotton farming, extracting gas and oil from the ground to make synthetics, and things like that. So we now have a really keen understanding of the source of our industry’s emissions.
Q: Your report mentions that the apparel industry is responsible for about 2% of global emissions. Is that an accurate statistic?
A: That’s our best estimate of the total emissions [generated by] the apparel sector. Some other reports on the industry have apparel at up to 8% of global emissions. And there is a commonly misquoted number in the media that it’s 10%. From my perspective, I think the best estimate is somewhere under 2%.
We know that globally, humankind needs to reduce emissions by roughly half by 2030 and reach net zero by 2050 to hit international goals. [Reaching that target will require the involvement of] every facet of the global economy and every aspect of the apparel sector—transportation, material production, manufacturing, cotton farming. Through our work and that of others, I think the apparel sector understands what has to happen. We have highlighted examples of how companies are taking action to reduce emissions in the roadmap reports.
Q: What are some of those actions the industry can take to reduce emissions?
A: I think one of the positive developments since we wrote the first report is that we’re seeing companies really focus on the most impactful areas. We see companies diving deep on thermal energy, for example. With respect to Tier Two, we [focus] a lot of attention on things like ocean freight versus air. There’s a rule of thumb I’ve heard that indicates air freight is about 10 times the cost [of ocean] and also produces 10 times more greenhouse gas emissions.
There is money available to invest in sustainability efforts. It’s really exciting to see the funding that’s coming through for AI [artificial intelligence] and to see that individual companies, such as H&M and Lululemon, are investing in real solutions in their supply chains. I think a lot of concrete actions are being taken.
And yet we know that reducing emissions by half on an absolute basis by 2030 is a monumental undertaking. So I don’t want to be overly optimistic, because I think we have a lot of work to do. But I do think we’ve got some amazing progress happening.
Q: You mentioned several companies that are starting to address their emissions. Is that a result of their being more aware of the emissions they generate? Have you seen progress made since the first report came out in 2021?
A: Yes. When we published the first roadmap back in 2021, our statistics showed that only about 12 companies had met the criteria [for setting] science-based targets. In 2024, the number of apparel, textile, and footwear companies that have set targets or have commitments to set targets is close to 500. It’s an enormous increase. I think they see the urgency more than other sectors do.
We have companies that have been working at sustainability for quite a long time. I think the apparel sector has developed a keen understanding of the impacts of climate change. You can see the impacts of flooding, drought, heat, and other things happening in places like Bangladesh and Pakistan and India. If you’re a brand or a manufacturer and you have operations and supply chains in these places, I think you understand what the future will look like if we don’t significantly reduce emissions.
Q: There are different categories of emission levels, depending on the role within the supply chain. Scope 1 are “direct” emissions under the reporting company’s control. For apparel, this might be the production of raw materials or the manufacturing of the finished product. Scope 2 covers “indirect” emissions from purchased energy, such as electricity used in these processes. Scope 3 emissions are harder to track, as they include emissions from supply chain partners both upstream and downstream.
Now companies are finding there are legislative efforts around the world that could soon require them to track and report on all these emissions, including emissions produced by their partners’ supply chains. Does this mean that companies now need to be more aware of not only what greenhouse gas emissions they produce, but also what their partners produce?
A: That’s right. Just to put this into context, if you’re a brand like an Adidas or a Gap, you still have to consider the Scope 3 emissions. In particular, there are the so-called “purchased goods and services,” which refers to all of the embedded emissions in your products, from farming cotton to knitting yarn to making fabric. Those “purchased goods and services” generally account for well above 80% of the total emissions associated with a product. It’s by far the most significant portion of your emissions.
Leading companies have begun measuring and taking action on Scope 3 emissions because of regulatory developments in Europe and, to some extent now, in California. I do think this is just a further tailwind for the work that the industry is doing.
I also think it will definitely ratchet up the quality requirements of Scope 3 data, which is not yet where we’d all like it to be. Companies are working to improve that data, but I think the regulatory push will make the quality side increasingly important.
Q: Overall, do you think the work being done by the Apparel Impact Institute will help reduce greenhouse gas emissions within the industry?
A: When we started this back in 2020, we were at a place where companies were setting targets and knew their intended destination, but what they needed was a blueprint for how to get there. And so, the roadmap [provided] this blueprint and identified six key things that the sector needed to do—from using more sustainable materials to deploying renewable electricity in the supply chain.
Decarbonizing any sector, whether it’s transportation, chemicals, or automotive, requires investment. The Apparel Impact Institute is bringing collective investment, which is so critical. I’m really optimistic about what they’re doing. They have taken a data-driven, evidence-based approach, so they know where the emissions are and they know what the needed interventions are. And they’ve got the industry behind them in doing that.
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.”
That result showed that driver wages across the industry continue to increase post-pandemic, despite a challenging freight market for motor carriers. The data comes from ATA’s “Driver Compensation Study,” which asked 120 fleets, more than 150,000 employee drivers, and 14,000 independent contractors about their wage and benefit information.
Drilling into specific categories, linehaul less-than-truckload (LTL) drivers earned a median annual amount of $94,525 in 2023, while local LTL drivers earned a median of $80,680. The median annual compensation for drivers at private carriers has risen 12% since 2021, reaching $95,114 in 2023. And leased-on independent contractors for truckload carriers were paid an annual median amount of $186,016 in 2023.
The results also showed how the demographics of the industry are changing, as carriers offered smaller referral and fewer sign-on bonuses for new drivers in 2023 compared to 2021 but more frequently offered tenure bonuses to their current drivers and with a greater median value.
"While our last study, conducted in 2021, illustrated how drivers benefitted from the strongest freight environment in a generation, this latest report shows professional drivers' earnings are still rising—even in a weaker freight economy," ATA Chief Economist Bob Costello said in a release. "By offering greater tenure bonuses to their current driver force, many fleets appear to be shifting their workforce priorities from recruitment to retention."