DCs apply sensors, wireless networks, and the Internet of Things to the warehouse yard, a traditionally low-tech node in the supply chain that’s getting new attention in a time of heightened operating restrictions.
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.
As the logistics industry adjusts to a new world marked by tight caps on drivers’ hours of service amid pandemic-fueled demand surges and operating restrictions, many companies are turning to technology that can help them cope with these challenges, leading to the rise of the “digital yard.”
With the hours-of-service (HOS) mandate restricting drivers’ road time, companies are looking for ways to boost efficiency in other parts of the supply chain, says Chris Wolfe, CEO of asset management solution provider PowerFleet Inc. With driving time at a premium, many businesses see the yard as a “chokepoint” where drivers can waste many of their allotted hours waiting in line for a DC dock door to open up, he adds.
But it doesn’t have to be that way, Wolfe says. DCs can gather data from the trucks in their yards by tapping into the sensors increasingly found on everything from truck cabs to trailers to drivers’ own smartphones as well as the increasingly sophisticated Internet of Things (IoT) networks that allow facilities to identify and track nearly every asset that rolls onto their property. They can then mine these rich veins of data to fine-tune dock and yard operations to avoid backups and delays.
DCs LOOK TO THE YARD TO CUT WASTE
The rise of the digital yard is accelerating as trading partners seek more-efficient operations. “This is the evolution of where things have to go based on … HOS. That’s where the next savings is in asset utilization,” Wolfe says.
In the new model of yard operations, companies can combine local sensor data with yard management system (YMS) and transportation management system (TMS) software platforms to squeeze inefficient practices out of the process—the kinds of practices that have led to the long lines of trucks waiting to load or unload that have become common in the coronavirus era. Instead, sensors monitoring variables like weight and motion can detect when a truck is ready to leave the DC and instantly alert warehouse managers.
Among other benefits, those precise metrics enable facilities to avoid backups by notifying suppliers to delay shipments or by warning incoming drivers that a dock door won’t be ready for a scheduled delivery. While the delay could still count against the drivers’ service hours, the advance notice might allow them to wait it out at a truck stop with amenities instead of sitting in a line of trucks outside a warehouse.
“How fast is a trailer getting loaded? If you find it’s not even half loaded, then you may as well slow a driver down and have him wait somewhere else. The worst thing you can do right now is have drivers waiting” in the yard, where they may be unable to maintain the recommended social distances, Wolfe says. “But if a driver knew when to arrive, he wouldn’t have to wait. Everything has to work like a well-oiled machine.”
That machine can be oiled by the vast streams of data that can be collected from a digital dock and yard management system, says Tim Kubly, business development manager for Rite-Hite Digital Solutions. “Customers want to know what’s happening with their equipment without standing there and looking at it the whole time. Now, with the Industrial Internet of Things, we can collect data and push it out to an intuitive dashboard,” Kubly said in a recent webinar, pointing to his firm’s Opti-Vu and Dok-Vu dashboards as examples.
“That means we can monitor detention time. A company might want to make sure it gets trailers off the dock within two hours. But the problem is that workers may not know how long a trailer has been there,” Kubly said. “Now, when a trailer backs up to the dock and the trailer lock is engaged, a timer starts.”
Depending on the type of dock equipment, the system could track sensor signals that detail every step in the inbound and outbound freight process. For example, Rite-Hite’s platform can track variables like trailer presence, door open, leveler down, forklift activity in trailer, leveler up, door closed, and trailer departure. DC managers can use those statistics to schedule the activities of drivers, warehouse workers, shipping and receiving staff, and yard jockeys, he said.
Another factor driving demand for digitized operations is the push for touchless operations during the Covid-19 pandemic, according to dock and yard management solution provider C3 Solutions. The company says its software products can reduce or eliminate paper transactions by using electronic documents instead of paper records on carrier/supplier web portals and for gate processes.
Yard management technology developer Pinc Solutions is taking a similar tack. Pinc says its Digital Yard solution is designed to automate gate activities, trailer movements, dock scheduling, yard operations, and more. The company’s Pinc Kiosk even supports a touchscreen multilanguage interface with a temporary radio-frequency identification (RFID)-tag dispenser that allows drivers to perform self-check-in and self-check-out.
YARD DATA FILLS IN VISIBILITY GAP
Supply chain visibility provider FourKites likewise had digital yard operations in mind when it announced in March that it had acquired three yard solution software platforms—Yard Management, Dock Management, and Gate Control—from TrackX Holdings Inc. All three of the newly acquired platforms collect data by building connections with enterprise resource planning (ERP) and warehouse management system (WMS) software as well as with RFID and IoT sensors. By tapping into that data flow, FourKites says it can now extend real-time freight visibility into the warehouse yard.
“I think we’ve really nailed where freight is during transit, but that is only one piece of the puzzle,” FourKites Founder and CEO Matt Elenjickal says. “Goods are being held in the yard for some time, whether it’s at pickup or dropoff. What people really want to know is, ‘Where are my products?’—regardless of whether they’re in transit, in the yard, or in the warehouse.”
But achieving that kind of universal traceability may not be so easy. FourKites acknowledges that some trading partners like third-party logistics service providers (3PLs), suppliers, and retailers have been hesitant to share shipping data with each other, although he says that’s starting to change. “We have a lot of customers who ship to retailers or who manufacture consumer packaged goods. We facilitate the sharing of data, but some people weren’t buying in because of data privacy concerns,” Elenjickal says. “One manufacturer said, ‘We’d be happy to share our data if you can mask our purchase orders and carrier lanes.’ And we said ‘OK, we can do that!’ The industry wants to collaborate more.”
Given the current pressure to deliver swift, smooth performance amid tightening restrictions, Elenjickal and others believe warehouse operators have a lot to gain from opening up access to their supply chain data. And one of the payoffs could be a big jump in efficiency at the dock and yard interface, where freight moves from truck to DC and back again.
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.
Global trade will see a moderate rebound in 2025, likely growing by 3.6% in volume terms, helped by companies restocking and households renewing purchases of durable goods while reducing spending on services, according to a forecast from trade credit insurer Allianz Trade.
The end of the year for 2024 will also likely be supported by companies rushing to ship goods in anticipation of the higher tariffs likely to be imposed by the coming Trump administration, and other potential disruptions in the coming quarters, the report said.
However, that tailwind for global trade will likely shift to a headwind once the effects of a renewed but contained trade war are felt from the second half of 2025 and in full in 2026. As a result, Allianz Trade has throttled back its predictions, saying that global trade in volume will grow by 2.8% in 2025 (reduced by 0.2 percentage points vs. its previous forecast) and 2.3% in 2026 (reduced by 0.5 percentage points).
The same logic applies to Allianz Trade’s forecast for export prices in U.S. dollars, which the firm has now revised downward to predict growth reaching 2.3% in 2025 (reduced by 1.7 percentage points) and 4.1% in 2026 (reduced by 0.8 percentage points).
In the meantime, the rush to frontload imports into the U.S. is giving freight carriers an early Christmas present. According to Allianz Trade, data released last week showed Chinese exports rising by a robust 6.7% y/y in November. And imports of some consumer goods that have been threatened with a likely 25% tariff under the new Trump administration have outperformed even more, growing by nearly 20% y/y on average between July and September.