The French maritime giant said the move underlines its connection to the U.S., where it serves 19 American ports with 34 services and 93 weekly port calls. In recognition of that bond, some of the masks will be donated specifically to workers of the Port of Los Angeles, supporting their dedication and efforts to keep the supply chains running during these difficult times.
The company says it has also helped in pandemic relief efforts by donating more than 1.2 million masks as well as several tons of medical and hygienic supplies, emergency food assistance, storage containers, and educational support. CMA CGM also has expedited the movement of medical production lines from Asia to North America, test-kit and ventilator air and ground transport throughout the U.S., and the delivery of 20 million masks and medical supplies to France in only 4 days.
“CMA CGM is playing a key role in keeping the supply chain running during this pandemic. We are very proud to have CMA CGM as a friend and partner, and look forward to many years of close collaboration on all levels for the benefit of trade and humanity,” Gene Seroka, Port of Los Angeles executive director and City of LA chief logistics officer, said in a release.
And in other examples of the logistics industry dedicating its assets to the coronavirus fight:
DB Schenker announced today it has contracted with The City of New York to transport and deliver much needed personal protective equipment for health care workers in local area hospitals and elderly nursing homes. The cargo, which consists of personal protective equipment such as medical goggles, gloves and gowns, is being picked up in several locations throughout China, transported to the U.S. on direct charter flights, and delivered to special Covid-19 distribution centers in the city. “We worked with New York City and their consultants to determine the most efficient, economical, and time-sensitive way to get much needed PPE from suppliers in China to New York City,” Benno Forster, senior vice president and head of Airfreight Operations and Procurement for DB Schenker Americas, said in a release. “Our discussions included guidance related to Chinese Customs export clearance and compliance, U.S. Customs import clearance regulations, warehousing and distribution, pricing, and even recommendations for the best-suited aircraft for transporting this precious cargo. We are very proud the City of New York chose to contract with us to transport these critical goods for the frontline healthcare workers throughout the city.”
Trailer leasing and rental company Premier Trailer Leasing will donate the use of 40 refrigerated trailers in a move to help combat hunger during the Covid-19 pandemic. Premier will provide free rental of up to 40 Thermo King refrigerated trailers to Feeding America. These 53-foot trailers have a 40,000-pound perishable food capacity, allowing this partnership to help secure, store and distribute more than 6 million meals this summer. Premier’s long-time supplier, Thermo King, is also contributing funds to Feeding America foodbanks through its We Move Food grant program. “We at Premier Trailer Leasing are so happy that we can use our resources to help communities around the U.S. and provide meals to those who need them most,” Jim Aubuchon, president and CEO of Premier Trailer Leasing, said in a release. “We’re incredibly proud to partner with Feeding America and show our appreciation for the important work they are doing to end hunger in our nation.”
Grocery supplier C&S Wholesale Grocers Inc. has pledged more than $300,000 in donations that will supply 100,000 KN95 masks to hospitals in hard-hit regions in the fight against the coronavirus pandemic, and will offer financial support for food banks and other charitable organizations across the country. As part of its overall Covid-19 relief initiative, C&S has also established an employee giving campaign, whereby employees can make need-based donations to colleagues within the company who demonstrate a financial need due to the public health crisis. “C&S is a family and we are committed to taking care of each other. By combining the company's overall national relief initiative with an employee giving campaign, we can positively impact communities nationwide, as well as our valued employees and their families,” Miriam Ort, chief human resources officer for C&S Wholesale Grocers, said in a release.
Industrial wearable computer provider ProGlove has created a product upgrade that activates proximity sensing for frontline workers in manufacturing, distribution, and logistics during the Covid-19 crisis. The platform leverages the company’s family of wearable barcode scanners and its smartphone app to provide safety and efficiency as production lines begin to resume operations, ProGlove said. Using the system, workers who come within close proximity of each other are alerted by an array of options on the wearable scanner, including audio sound, optic LED light, and haptic vibration signals. "Our key customers are sharing with us the challenges they're facing as they rethink and retool to restart operations," Andreas Koenig, CEO of ProGlove, said in a release. "We faced similar challenges as we reviewed our own processes for safety and efficiency. It is our natural tendency, as humans, to want to go back to doing things the way we did them before, however, it's not possible. Proper social distancing is now key to a successful return to work.”
Material handling equipment provider Creform Corp. has developed a new, simple temperature-screening station to help companies combat the spread of Covid-19 and to safely perform ongoing checks on both visitors coming in to its facilities and on its own employees. The metal-framed, wheeled station acts as a checkpoint, featuring a clear panel to keep the screener and incoming individual separate while the temperature is taken through a hole in the center of the plexiglass shield. The unit also features a small table to hold the thermometer, cleaning supplies, and recording documents.
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."