Dr. Terry L. Esper is an associate professor of logistics at the Fisher College of Business of The Ohio State University. He has published several articles on issues associated with retail logistics and supply chain management strategy in leading academic and managerial outlets.
We’ve all seen the news. The rallies and protests triggered by the killing of George Floyd have taken center stage all across this country, as persons of all races and ethnicities gather in city streets to express frustration, hurt, and anger. These are, indeed, tense and “charged” times. Times that call for tough conversations within communities, about how racism, discrimination, biases, and differences in viewpoints shape the ways in which those communities function. This includes the supply chain management (SCM) community.
We have had long-held conversations regarding gender disparities in SCM, but the widescale focus on the George Floyd incident opens a door for us to bring the race conversation to the forefront. There are many things that we could discuss on race, but as a researcher of last-mile logistics and home delivery services, I’d like to raise one concerning issue for us to talk about, ponder, and hopefully act on.
I’ve been in SCM for over 25 years. I started as an intern for a state department of transportation, worked for a major carrier in claims and billing, launched my professional career managing small package transportation for a major corporation, and throughout these experiences, worked my way through college and graduate school, eventually earning a PhD in SCM. For the last 20 years, I’ve been in the SCM academic community, serving on faculty at many of the field’s most well-respected university programs. In this capacity I not only educate emerging SCM talent, but I also spend considerable time studying strategic SCM issues (like last-mile logistics) and working with several major corporations in the process. And, I must admit...In my many years of observing our industry from these various viewpoints and perspectives, never... never have I ever... been as concerned and fearful for the safety of frontline logistics and transportation workers as I am today.
Let me be more specific by adding another of my characteristics to my credentials—I’m a black man. It is part of my identity that triggered this piece, because while I am generally concerned about the safety of all frontline logistics workers, especially in light of COVID-19, I am most and directly concerned about my fellow black men in our SCM community that are charged with the task of providing last-mile delivery services. Let me also be clear in saying that this is not a new concern. It’s been brewing for some time. But a series of recent events, including the situation in Minneapolis, Minnesota, have brought my concern to a boiling point—prompting me to pull up a chair and attempt to start a conversation.
In case you missed this story in the news... a black male delivery driver was recently stopped by members of a neighborhood community demanding answers regarding his reasons for being there. These weren’t simple inquiries, mind you... they were demands, laced with threats of calling law enforcement, apparently out of concern for the safety of their neighborhood. The driver, recording it all via a mobile device, was eventually “allowed to leave”... but only after the delivery recipient intervened, assuring neighbors that the driver had a valid reason for being in their community.
Fast forward a few days, and another such incident occurs. In this case, a pair of FedEx independent contractors, black men in full FedEx uniform, deliver a package to a home. Upon leaving, a resident of the home chased and confronted the men, yelling threats and verbal attacks. After law enforcement intervention, the resident claimed that he had done so out of fear that these men were potential burglary threats. Again, the incident was video captured by one of the drivers.
Fast forward another week, and yet another example surfaces. A black man attempting a DoorDash delivery in an Arizona apartment complex was met by a resident with a drawn firearm. The resident claimed to be afraid of the delivery worker and held him at gunpoint until law enforcement arrived.
Now, some would classify these as isolated incidents, perhaps blown out of proportion by social media retweets and reposts. Some might argue that these are nothing more than simple misunderstandings that were captured and shared, in order to highlight one side of the story. I disagree. Either way, this disturbing pattern allows for a broader conversation, because what I know for sure is that these situations represent the oft unspoken fears and concerns that many Black men shoulder when navigating neighborhoods to make deliveries.
Stories abound where African Americans, particularly men, are reported to law enforcement for what is found to be benign occurrences, simply because their presence and/or disagreement are interpreted as a threat of significant harm. A most recent example involves Amy Cooper, a New York Central Park patron, who, upon being asked to leash her dog by a black man, called law enforcement and falsely claimed that her life was in danger...all while being recorded. This story was shocking to many, but came as no surprise to black men. We know that we are often viewed as a threat. It is an awareness that we carry, and an unfortunate tax of physicality that we pay. Yet, as the recent killings of Ahmaud Arbery and George Floyd have so hurtfully illustrated, we also know that our traipsing about city streets can be interpreted as threatening, and can lead to loss of life, even if law enforcement is involved.
And, that is what I want us... the SCM community... to consider.
I am concerned. The sheer numbers suggest an increased likelihood of situations similar to the delivery examples above. As we have seen, COVID-19 has caused more marketplace consumers to shift to online retail for food and product purchases, which means an increase in home deliveries, and an increased potential for delivery-related confrontations involving African American drivers. Furthermore, many online retailers and restaurants are turning to crowdsourced home-delivery service providers for last mile logistics, which means an increase in home deliveries made by drivers in “ordinary” vehicles wearing “ordinary” clothes. And, in the event that these ordinarily clothed delivery drivers are black men, there is unfortunate likelihood that we will see more reported repeats of the aforementioned delivery incidences. Perhaps with even worse outcomes, especially if not recorded.
SCM community, let’s take this seriously! Yes, the leading story of the day involves law enforcement in Minneapolis, but this emerging pattern of delivery-related issues suggests we also have problems in our SCM community. The sad truth is that, for black male delivery drivers, simply circling a neighborhood to find an address location, or opening a screen door in order to secure a package, comes with a real threat of being accused, accosted, arrested, or dare we even say...assaulted or killed. I ask that we not turn a deaf ear or blind eye to this issue, especially in light of the heightened tensions in our country. I wish I had a list of solutions to provide, but I don’t. I can only ask that we expand our thinking regarding driver safety. In addition to investing in things like PPE, advanced technologies, and updated delivery equipment as ways of enhancing driver safety, let’s also consider implementing processes and standards to combat the safety threats that biases and racial stereotypes pose for frontline delivery drivers—especially those that are African American and men.
The Port of Oakland has been awarded $50 million from the U.S. Department of Transportation’s Maritime Administration (MARAD) to modernize wharves and terminal infrastructure at its Outer Harbor facility, the port said today.
Those upgrades would enable the Outer Harbor to accommodate Ultra Large Container Vessels (ULCVs), which are now a regular part of the shipping fleet calling on West Coast ports. Each of these ships has a handling capacity of up to 24,000 TEUs (20-foot containers) but are currently restricted at portions of Oakland’s Outer Harbor by aging wharves which were originally designed for smaller ships.
According to the port, those changes will let it handle newer, larger vessels, which are more efficient, cost effective, and environmentally cleaner to operate than older ships. Specific investments for the project will include: wharf strengthening, structural repairs, replacing container crane rails, adding support piles, strengthening support beams, and replacing electrical bus bar system to accommodate larger ship-to-shore cranes.
Commercial fleet operators are steadily increasing their use of GPS fleet tracking, in-cab video solutions, and predictive analytics, driven by rising costs, evolving regulations, and competitive pressures, according to an industry report from Verizon Connect.
Those conclusions come from the company’s fifth annual “Fleet Technology Trends Report,” conducted in partnership with Bobit Business Media, and based on responses from 543 fleet management professionals.
The study showed that for five consecutive years, at least four out of five respondents have reported using at least one form of fleet technology, said Atlanta-based Verizon Connect, which provides fleet and mobile workforce management software platforms, embedded OEM hardware, and a connected vehicle device called Hum by Verizon.
The most commonly used of those technologies is GPS fleet tracking, with 69% of fleets across industries reporting its use, the survey showed. Of those users, 72% find it extremely or very beneficial, citing improved efficiency (62%) and a reduction in harsh driving/speeding events (49%).
Respondents also reported a focus on safety, with 57% of respondents citing improved driver safety as a key benefit of GPS fleet tracking. And 68% of users said in-cab video solutions are extremely or very beneficial. Together, those technologies help reduce distracted driving incidents, improve coaching sessions, and help reduce accident and insurance costs, Verizon Connect said.
Looking at the future, fleet management software is evolving to meet emerging challenges, including sustainability and electrification, the company said. "The findings from this year's Fleet Technology Trends Report highlight a strong commitment across industries to embracing fleet technology, with GPS tracking and in-cab video solutions consistently delivering measurable results,” Peter Mitchell, General Manager, Verizon Connect, said in a release. “As fleets face rising costs and increased regulatory pressures, these technologies are proving to be indispensable in helping organizations optimize their operations, reduce expenses, and navigate the path toward a more sustainable future.”
Businesses engaged in international trade face three major supply chain hurdles as they head into 2025: the disruptions caused by Chinese New Year (CNY), the looming threat of potential tariffs on foreign-made products that could be imposed by the incoming Trump Administration, and the unresolved contract negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX), according to an analysis from trucking and logistics provider Averitt.
Each of those factors could lead to significant shipping delays, production slowdowns, and increased costs, Averitt said.
First, Chinese New Year 2025 begins on January 29, prompting factories across China and other regions to shut down for weeks, typically causing production to halt and freight demand to skyrocket. The ripple effects can range from increased shipping costs to extended lead times, disrupting even the most well-planned operations. To prepare for that event, shippers should place orders early, build inventory buffers, secure freight space in advance, diversify shipping modes, and communicate with logistics providers, Averitt said.
Second, new or increased tariffs on foreign-made goods could drive up the cost of imports, disrupt established supply chains, and create uncertainty in the marketplace. In turn, shippers may face freight rate volatility and capacity constraints as businesses rush to stockpile inventory ahead of tariff deadlines. To navigate these challenges, shippers should prepare advance shipments and inventory stockpiling, diversity sourcing, negotiate supplier agreements, explore domestic production, and leverage financial strategies.
Third, unresolved contract negotiations between the ILA and the USMX will come to a head by January 15, when the current contract expires. Labor action or strikes could cause severe disruptions at East and Gulf Coast ports, triggering widespread delays and bottlenecks across the supply chain. To prepare for the worst, shippers should adopt a similar strategy to the other potential January threats: collaborate early, secure freight, diversify supply chains, and monitor policy changes.
According to Averitt, companies can cushion the impact of all three challenges by deploying a seamless, end-to-end solution covering the entire path from customs clearance to final-mile delivery. That strategy can help businesses to store inventory closer to their customers, mitigate delays, and reduce costs associated with supply chain disruptions. And combined with proactive communication and real-time visibility tools, the approach allows companies to maintain control and keep their supply chains resilient in the face of global uncertainties, Averitt said.
Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.
Those negative numbers are nothing new—the TCI has been positive only twice – in May and June of this year – since April 2022, but the group’s current forecast still envisions consistently positive readings through at least a two-year forecast horizon.
“Aside from a near-term boost mostly related to falling diesel prices, we have not changed our Trucking Conditions Index forecast significantly in the wake of the election,” Avery Vise, FTR’s vice president of trucking, said in a release. “The outlook continues to be more favorable for carriers than what they have experienced for well over two years. Our analysis indicates gradual but steadily rising capacity utilization leading to stronger freight rates in 2025.”
But FTR said its forecast remains unchanged. “Just like everyone else, we’ll be watching closely to see exactly what trade and other economic policies are implemented and over what time frame. Some freight disruptions are likely due to tariffs and other factors, but it is not yet clear that those actions will do more than shift the timing of activity,” Vise said.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index indicating the industry’s overall health, a positive score represents good, optimistic conditions while a negative score shows the inverse.
Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.
Broken into geographical regions, the European Union has a robot density of 219 units per 10,000 employees, an increase of 5.2%, with Germany, Sweden, Denmark and Slovenia in the global top ten. Next, North America’s robot density is 197 units per 10,000 employees – up 4.2%. And Asia has a robot density of 182 units per 10,000 persons employed in manufacturing - an increase of 7.6%. The economies of Korea, Singapore, mainland China and Japan are among the top ten most automated countries.
Broken into individual countries, the U.S. ranked in 10th place in 2023, with a robot density of 295 units. Higher up on the list, the top five are:
The Republic of Korea, with 1,012 robot units, showing a 5% increase on average each year since 2018 thanks to its strong electronics and automotive industries.
Singapore had 770 robot units, in part because it is a small country with a very low number of employees in the manufacturing industry, so it can reach a high robot density with a relatively small operational stock.
China took third place in 2023, surpassing Germany and Japan with a mark of 470 robot units as the nation has managed to double its robot density within four years.
Germany ranks fourth with 429 robot units for a 5% CAGR since 2018.
Japan is in fifth place with 419 robot units, showing growth of 7% on average each year from 2018 to 2023.