Logistics providers are continuing their push this week for their employees to get prioritized access to Covid-19 vaccines, saying the workers are critical to keeping supply chains moving despite the challenges of the pandemic.
While federal programs such as Operation Warp Speed may have helped to accelerate the process of developing vaccines to the disease, the rollout of the life-saving medicine has been snarled with delays and complications in many states. Another hurdle has been the peak fulfillment volumes seen in many sectors due to spikes in demand, a boom in e-commerce sales, and the recent holiday season, making it difficult for many warehouse and transportation workers to take time off to get their shots.
Vaccine availability is currently prioritized for the elderly, first responders, medical, and/or school personnel, but logistics and transportation provider Ryder System Inc. said today it is “actively working with industry trade associations and state authorities to have its essential workers prioritized as soon as possible.” In a step to accelerate the process, Ryder has begun paying its employees to get their vaccines. Ryder will pay up to three hours of paid time off (PTO) for workers to get their first shot and an additional three hours for treatments that require a second dose.
While the Miami-based company is not requiring employees to get vaccinated, it said it is following guidance from the Centers for Disease Control and Prevention (CDC) that people should take the vaccine in order to protect themselves, their coworkers, and everyone around them.
“The health and safety of our employees is our top priority, and we want to provide assurances to our workforce that they don’t need to worry about being penalized either in pay or PTO balance when getting vaccinated,” Ryder Chairman and CEO Robert Sanchez said in a release. “Since the beginning of the pandemic, our team has been committed to creating a safe work environment by implementing sanitation stations and contactless interaction with our customers where possible, as well as paying sick leave to employees who have contracted the virus, and this paid vaccine decision was no different.”
The company has some powerful voices backing its effort from within the federal government itself. On Friday, two commissioners of the Federal Maritime Commission (FMC) sent a letter to President Biden reiterating the importance of vaccinating the maritime workforce. “We recommend that this essential workforce be prioritized for vaccinations, and in the interim be given access to rapid testing in order to help minimize workplace disruption, given their critical role in moving medical supplies, personal protective equipment (PPE), and handling what is an unprecedented amount of consumer goods arriving at our gateway ports,” commissioners Carl Bentzel and Daniel Maffei wrote.
The movement is also in line with an international effort to provide vaccines to thousands of maritime crew members worldwide who have been stranded on their ships by travel and quarantine restrictions imposed during the pandemic.
Danish trade group the Global Maritime Forum says that situation is leading to crew fatigue and an increased risk of maritime incidents, and has launched an initiative called the “Neptune Declaration on Seafarer Wellbeing and Crew Change,” calling for solutions. Signed by more than 450 companies and organizations across the maritime value chain, the declaration seeks to: recognize seafarers as key workers and give them priority access to Covid-19 vaccines; implement health protocols based on existing best practices; increase collaboration between ship operators and charterers to facilitate crew changes; and ensure air connectivity between maritime hubs for seafarers.
Greek bulk cargo handler Star Bulk Carriers Corp. on Thursday said it had joined the movement, calling the situation a “humanitarian crisis" that remains unresolved despite efforts by international organizations, unions, companies, and governments. “Star Bulk is committed to take action to help resolve this humanitarian crisis, recognizing the shared responsibility of all parties in the maritime chain to protect the rights and well-being of our seafarers,” Star Bulk CEO Petros Pappas said in a release. “The Neptune Declaration is in line with our company’s values on Human Rights and Labor which are driven by the principles of the United Nations Global Compact, to which Star Bulk is a signatory.”
Economic activity in the logistics industry continued its expansion streak in October, growing for the 11th straight month and reaching its highest level in two years, according to the most recent Logistics Managers’ Index report (LMI), released this week.
The LMI registered 58.9, up from 58.6 in September, and continued a run of moderate growth that began late in 2023. The LMI is a monthly measure of business activity across warehousing and transportation markets. A reading above 50 indicates expansion, and a reading below 50 indicates contraction.
October’s reading showed the fastest rate of expansion in the overall index since September of 2022, when the index hit 61.4. The results show that the industry is continuing its steady recovery from the volatility and sluggish freight market conditions that plagued the sector just after the Covid-19 pandemic, according to the LMI researchers.
“The big takeaway is that we’re continuing the slow, steady recovery,” said LMI researcher Zac Rogers, associate professor of supply chain management at Colorado State University. “I think, ultimately, it’s better to have the slow and steady recovery because it is more sustainable.”
All eight of the LMI’s indices grew during the month, with the Transportation Prices index showing the most growth, at nearly 6 points higher than September, reflecting increased activity across transportation markets. Transportation capacity expanded slightly during the month, remaining just above the 50-point threshold. Rogers said more capacity will enter the market if prices continue to rise, citing idle capacity across the market due to overbuilding during the pandemic years.
“Normally we don’t have this much slack in the market,” he said. “We overbuilt in 2021, so there’s more slack available to soak up this additional demand.”
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
The port worker strike that began yesterday on Canada’s west coast could cost that country $765 million a day in lost trade, according to the ALPS Marine analysis by Russell Group, a British data and analytics company.
Specifically, the labor strike at the ports of Vancouver, Prince Rupert, and Fraser-Surrey will hurt the commodities of furniture, metal products, meat products, aluminum, and clothing. But since the strike action is focused on stopping containers and general cargo, it will not slow operations in grain vessels or cruise ships, the firm said.
“The Canadian port strike is a microcosm of many of the issues that are impacting Western economies today; protection against automation, better work-life balance, and a cost-of-living crisis,” Russell Group Managing Director Suki Basi said in a release. “Taken together, these pressures are creating a cocktail of connected risk for countries, business, individuals and entire sectors such as marine insurance, which help to mitigate cargo exposures.”
The strike is also sending ripples through neighboring U.S. ports, which are hustling to absorb the diverted cargo, according to David Kamran, assistant vice president for Moody’s Ratings.
“The recurrence of strikes at Canadian seaports is positive for U.S. ports that may gain cargo throughput, depending on the strike duration,” Kamran said in a statement. “The current dispute at Vancouver is another example of the resistance of port unions to automation and the social risk involved with implementing these technologies. Persistent disruption in Canadian port access would strengthen the competitive position of US West Coast ports over the medium-term, as shippers seek to diversify cargo away from unreliable gateways.”
The strike is also affected rail movements, according to ocean cargo carrier Maersk. CN has stopped all international intermodal shipments bound for the west coast ports of Prince Rupert, Robbank, Centerm, Vanterm, and Fraser Surrey Docks. And CPKC has stopped acceptance of all export loads and pre-billed empties destined for Vancouver ports.
Connected with the turmoil, Maersk has suspended its import and export carrier demurrage and detention clock for most affected operations. The ultimate duration of the strike is unknown, but the situation is “rapidly evolving” as talks continue between the Longshore Workers Union (ILWU 514) and the British Columbia Maritime Employers Association (BCMEA), Maersk said.
Consulting firm Accenture has taken another step to bulk up its supply chain advisory capabilities, announcing Monday that it has acquired Allitix, a California-based consulting and technology company specializing in Anaplan solutions with capabilities across financial planning and analysis, sales performance management, and supply chain.
Anaplan is a Florida provider of corporate performance management (CPM) systems, which it defines as enterprise cloud software that empowers organizations to see, plan, and lead better business outcomes by aligning their strategic objectives and resources.
Allitix provides tailored Anaplan-based solutions across finance, sales, supply chain, and human resources functions, with specific competencies in the manufacturing, consumer, technology, media and telecom, and financial services industries.
“Demand for connected enterprise planning is on the rise, given its ability to unlock business value and spur total enterprise reinvention,” David Leckstein, senior managing director and lead, Americas Technology at Accenture, said in a release. “Allitix’s highly skilled talent, deep domain expertise, and agile approach to implementation complements our broader digital capabilities and further expands our ability to deliver integrated enterprise planning transformations for our clients that drive better, faster insights and bottom-line value.”
Terms of the deal were not disclosed, but Accenture said that the acquisition adds 73 employees, including over 60 Anaplan functional and technical professionals to Accenture Technology in North America, with expertise across solution architecture, model building, integration, and data management.
Terms of the acquisition were not disclosed, but Mode Global said it will now assume Jillamy's comprehensive logistics and freight management solutions, while Jillamy's warehousing, packaging and fulfillment services remain unchanged. Under the agreement, Mode Global will gain more than 200 employees and add facilities in Pennsylvania, Arizona, Florida, Texas, Illinois, South Carolina, Maryland, and Ontario to its existing national footprint.
Chalfont, Pennsylvania-based Jillamy calls itself a 3PL provider with expertise in international freight, intermodal, less than truckload (LTL), consolidation, over the road truckload, partials, expedited, and air freight.
"We are excited to welcome the Jillamy freight team into the Mode Global family," Lance Malesh, Mode’s president and CEO, said in a release. "This acquisition represents a significant step forward in our growth strategy and aligns perfectly with Mode's strategic vision to expand our footprint, ensuring we remain at the forefront of the logistics industry. Joining forces with Jillamy enhances our service portfolio and provides our clients with more comprehensive and efficient logistics solutions."
In addition to its flagship Clorox bleach product, Oakland, California-based Clorox manages a diverse catalog of brands including Hidden Valley Ranch, Glad, Pine-Sol, Burt’s Bees, Kingsford, Scoop Away, Fresh Step, 409, Brita, Liquid Plumr, and Tilex.
British carbon emissions reduction platform provider M2030 is designed to help suppliers measure, manage and reduce carbon emissions. The new partnership aims to advance decarbonization throughout Clorox's value chain through the collection of emissions data, jointly identified and defined actions for reduction and continuous upskilling.
The program, which will record key figures on energy, will be gradually rolled out to several suppliers of the company's strategic raw materials and packaging, which collectively represents more than half of Clorox's scope 3 emissions.
M2030 enables suppliers to regularly track and share their progress with other customers using the M2030 platform. Suppliers will also be able to export relevant compatible data for submission to the Carbon Disclosure Project (CDP), a global disclosure system to manage environmental data.
"As part of Clorox's efforts to foster a cleaner world, we have a responsibility to ensure our suppliers are equipped with the capabilities necessary for forging their own sustainability journeys," said Niki King, Chief Sustainability Officer at The Clorox Company. "Climate action is a complex endeavor that requires companies to engage all parts of their supply chain in order to meaningfully reduce their environmental impact."