The Logistics Matters podcast: Effects of Covid-19: Workforce challenges, deaths in the industry, emerging companies, cargo volumes, resources | Season 1 Episode 1
The challenges of helping employees feel safe coming to work during the coronavirus crisis; Covid-19 deaths in the logistics industry; new companies emerging to serve the at-home workforce; how the virus is affecting cargo volumes; and Covid-19 resources for supply chain professionals.
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Transcript
David Maloney: 0:03 Covid-19 continues to disrupt global supply chains. Logistic workers find that they're on the front lines fighting a new kind of war. And companies emerge to provide new capabilities for a stay-at-home work forces. Pull up a chair and join us as the editors of DC Velocity discuss these stories, as well as news and supply chain trends, on this week's Logistics Matters podcast. Hi, I'm Dave Maloney. I'm the editorial director of DC Velocity. Welcome. Joining me to provide their insight into the top stories of this week are senior news editor Ben Ames, and senior editor Victoria Kickham. Victoria, just to start with, of course, the story that's dominated the headlines for the past several weeks not only in supply chain, but everywhere, is Covid-19. And you've reported in this past week about how logistics workers are finding themselves on the front lines of this new kind of war.
Victoria Kickham: 0:55 Yes, in my talks with logistics companies from across the spectrum, we're finding that they're facing the challenges of making their employees feel comfortable coming to work, by safety protocols and communicating the most up-to-date information on the virus--while at the same time, keeping their businesses running. This is most acute, it seems, for 3PLs, transportation companies serving customers in essential industries like food service, health care, medical, those kinds of industries.
David Maloney: 1:25 What sort of ways are they helping them to feel comfortable when they're being faced with what everybody is dealing with these days?
Victoria Kickham: 1:34 One company I talked to said they're spending 16 hours a day on this. I talked to a senior human resources representative, and she was saying, just communicating over and over again, reminding employees, why they're coming to work every day. The importance of getting is essential services--products and services--to hospitals, medical facilities, grocery stores And at the same time, reminding them what they need to do. They've put into place all kinds of deep-cleaning regimens, social distancing. In some cases, they've had to retool their work stations so workers are no longer two or three feet apart. They're six feet apart. Just really revisiting all of those things and reminding employees what they need to do and why they're doing it.
David Maloney: 2:21 Yeah. And then we've also seen sort of the first casualties that are--on the workers on the front lines. You reported on that as well [Ben].
Ben Ames: 2:30 I did. Yeah. Just today there was a story in the Wall Street Journal that the U. S. Postal Service has lost a dozen of its workers as casualties, as deaths from Covid-19, so far. And that follows news the previous week of a couple of workers in logistics jobs who had passed away from Covid-19 . One of them was at a military depot in Pennsylvania. And then there was also four additional workers who had been at grocery stores, which is a place where even those of us are sheltering at home have seen that they're workers in really visible jobs, right there among the crowds every day.
David Maloney: 3:14 And certainly I think people are even more aware of supply chain than ever before as they realize the importance supply chain plays on an everyday basis, let alone in the midst of a crisis. Ben, you also talked about some new companies that are beginning to emerge with ways to be able to serve an at-home work force. Can you tell us about that?
Ben Ames: 3:34 Yes, that's right. The Covid has really sort of upended some of the typical patterns in warehousing and delivery and transportation. We've seen the federal FMCSA regulators suspend their hours-of-service limits for truck drivers carrying certain loads, so that there's some real spikes out there in the amount of deliveries and the time the truckers are spending on the roads. And one of the impacts of that, you know, venture capital keeps on going. And there was a $30 million round, it was raised for a startup company called Bringg, which is spelled like it sounds, but with two G's on the end. What Bringg does, they have a software platform that lets users orchestrate and oversee the whole delivery chain, whether it's their own in-house fleets, whether using third party delivery providers, a combination, whatever it is. So it really helps the visibility over that complicated process.
David Maloney: 4:41 Very good. Victoria, the Logistics Manager's Index is also reflecting our new normal. Can you tell us about what that Index is all about and what it's saying right now?
Victoria Kickham: 4:52 Sure. The Logistics Manager's Index is a monthly report that comes out, it surveys professionals across the logistics and supply chain, and it had been trending down for the last couple of years. Still growing--I should say, still indicating growth in the sector, but trending down and sort of showing that the industry had settled into kind of a slow growth mode. But in March, activity really, really picked up and increased, just as you'd expect, because of the growing need for transportation and warehousing. So, really we'll know, what happens in April will tell us a lot. And at the same time, we noticed that earlier this month you know, shipments--or cargo, I should say--through some of the nation's ports were down drastically, so that paints a different picture. So the LMI folks and others a really kind of waiting to see how this plays out in April, to see what happens.
David Maloney: 5:49 Then we'll report on that at that time. Ben, we've also got on our website to some great Covid-related resources. Can you tell us about what's available there?
Ben Ames: 5:59 We have, yeah. There's companies that have been, you know, so affected by this--as Victoria was saying, throughout the logistics sector--that some of them have compiled really incredibly helpful amounts of information to help their partner companies and their clients navigate this strange new world. So, as we've come across those in our reporting and in our speaking with industry figures, we've collected them all on a single resource page, so anybody can come and see how Covid is affecting the logistics sector specifically. I can give an example of one of those.
David Maloney: 6:35 Please.
Ben Ames: 6:37 So that there's a group called MHEDA, which listeners may be familiar with. They're the Material Handling Equipment Distributors Association. And MHEDA has a landing page full of Covid-19 resources and advice for anybody in the industry, and five points on that page that people can help determine who is an essential business, in terms of that classification, to keep on operating. It summarizes the various stay-at-home orders in different states. It gives guidance on how to manage the workplace during the crisis, which again, that would touch on some of Victoria's reporting. It gives members news updates on status of operations. For instance, we've seen some ports, maritime ports, revert to weekend hours, and we've seen some grocery stores have restricted hours so they could have cleaning. And then lastly, it gives a calendar of webinars. Because all of this, as soon as we've learned what's new in Covid, it seems to change the next day. So it's more important than ever to stay informed
David Maloney: 7:47 And so on that resources page at DCVelocity.com, we have links to where other people have placed resources, and those are available. We also have a very special section, too. In fact, a header as you come on to the website, where you can go directly and see the latest in the coronavirus coverage. So that's it for this week. For more information on the stories that we discussed in Logistics Matters, be sure to check out DCVelocity.com for details. Thanks, Ben and Victoria, and thank you all for listening. We'll see you next week on Logistics Matters.
Autonomous forklift maker Cyngn is deploying its DriveMod Tugger model at COATS Company, the largest full-line wheel service equipment manufacturer in North America, the companies said today.
By delivering the self-driving tuggers to COATS’ 150,000+ square foot manufacturing facility in La Vergne, Tennessee, Cyngn said it would enable COATS to enhance efficiency by automating the delivery of wheel service components from its production lines.
“Cyngn’s self-driving tugger was the perfect solution to support our strategy of advancing automation and incorporating scalable technology seamlessly into our operations,” Steve Bergmeyer, Continuous Improvement and Quality Manager at COATS, said in a release. “With its high load capacity, we can concentrate on increasing our ability to manage heavier components and bulk orders, driving greater efficiency, reducing costs, and accelerating delivery timelines.”
Terms of the deal were not disclosed, but it follows another deployment of DriveMod Tuggers with electric automaker Rivian earlier this year.
Manufacturing and logistics workers are raising a red flag over workplace quality issues according to industry research released this week.
A comparative study of more than 4,000 workers from the United States, the United Kingdom, and Australia found that manufacturing and logistics workers say they have seen colleagues reduce the quality of their work and not follow processes in the workplace over the past year, with rates exceeding the overall average by 11% and 8%, respectively.
The study—the Resilience Nation report—was commissioned by UK-based regulatory and compliance software company Ideagen, and it polled workers in industries such as energy, aviation, healthcare, and financial services. The results “explore the major threats and macroeconomic factors affecting people today, providing perspectives on resilience across global landscapes,” according to the authors.
According to the study, 41% of manufacturing and logistics workers said they’d witnessed their peers hiding mistakes, and 45% said they’ve observed coworkers cutting corners due to apathy—9% above the average. The results also showed that workers are seeing colleagues take safety risks: More than a third of respondents said they’ve seen people putting themselves in physical danger at work.
The authors said growing pressure inside and outside of the workplace are to blame for the lack of diligence and resiliency on the job. Internally, workers say they are under pressure to deliver more despite reduced capacity. Among the external pressures, respondents cited the rising cost of living as the biggest problem (39%), closely followed by inflation rates, supply chain challenges, and energy prices.
“People are being asked to deliver more at work when their resilience is being challenged by economic and political headwinds,” Ideagen’s CEO Ben Dorks said in a statement announcing the findings. “Ultimately, this is having a determinantal impact on business productivity, workplace health and safety, and the quality of work produced, as well as further reducing the resilience of the nation at large.”
Respondents said they believe technology will eventually alleviate some of the stress occurring in manufacturing and logistics, however.
“People are optimistic that emerging tech and AI will ultimately lighten the load, but they’re not yet feeling the benefits,” Dorks added. “It’s a gap that now, more than ever, business leaders must look to close and support their workforce to ensure their staff remain safe and compliance needs are met across the business.”
The “2024 Year in Review” report lists the various transportation delays, freight volume restrictions, and infrastructure repair costs of a long string of events. Those disruptions include labor strikes at Canadian ports and postal sites, the U.S. East and Gulf coast port strike; hurricanes Helene, Francine, and Milton; the Francis Scott key Bridge collapse in Baltimore Harbor; the CrowdStrike cyber attack; and Red Sea missile attacks on passing cargo ships.
“While 2024 was characterized by frequent and overlapping disruptions that exposed many supply chain vulnerabilities, it was also a year of resilience,” the Project44 report said. “From labor strikes and natural disasters to geopolitical tensions, each event served as a critical learning opportunity, underscoring the necessity for robust contingency planning, effective labor relations, and durable infrastructure. As supply chains continue to evolve, the lessons learned this past year highlight the increased importance of proactive measures and collaborative efforts. These strategies are essential to fostering stability and adaptability in a world where unpredictability is becoming the norm.”
In addition to tallying the supply chain impact of those events, the report also made four broad predictions for trends in 2025 that may affect logistics operations. In Project44’s analysis, they include:
More technology and automation will be introduced into supply chains, particularly ports. This will help make operations more efficient but also increase the risk of cybersecurity attacks and service interruptions due to glitches and bugs. This could also add tensions among the labor pool and unions, who do not want jobs to be replaced with automation.
The new administration in the United States introduces a lot of uncertainty, with talks of major tariffs for numerous countries as well as talks of US freight getting preferential treatment through the Panama Canal. If these things do come to fruition, expect to see shifts in global trade patterns and sourcing.
Natural disasters will continue to become more frequent and more severe, as exhibited by the wildfires in Los Angeles and the winter storms throughout the southern states in the U.S. As a result, expect companies to invest more heavily in sustainability to mitigate climate change.
The peace treaty announced on Wednesday between Isael and Hamas in the Middle East could support increased freight volumes returning to the Suez Canal as political crisis in the area are resolved.
The French transportation visibility provider Shippeo today said it has raised $30 million in financial backing, saying the money will support its accelerated expansion across North America and APAC, while driving enhancements to its “Real-Time Transportation Visibility Platform” product.
The funding round was led by Woven Capital, Toyota’s growth fund, with participation from existing investors: Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good and Yamaha Motor Ventures. With this round, Shippeo’s total funding exceeds $140 million.
Shippeo says it offers real-time shipment tracking across all transport modes, helping companies create sustainable, resilient supply chains. Its platform enables users to reduce logistics-related carbon emissions by making informed trade-offs between modes and carriers based on carbon footprint data.
"Global supply chains are facing unprecedented complexity, and real-time transport visibility is essential for building resilience” Prashant Bothra, Principal at Woven Capital, who is joining the Shippeo board, said in a release. “Shippeo’s platform empowers businesses to proactively address disruptions by transforming fragmented operations into streamlined, data-driven processes across all transport modes, offering precise tracking and predictive ETAs at scale—capabilities that would be resource-intensive to develop in-house. We are excited to support Shippeo’s journey to accelerate digitization while enhancing cost efficiency, planning accuracy, and customer experience across the supply chain.”
Donald Trump has been clear that he plans to hit the ground running after his inauguration on January 20, launching ambitious plans that could have significant repercussions for global supply chains.
As Mark Baxa, CSCMP president and CEO, says in the executive forward to the white paper, the incoming Trump Administration and a majority Republican congress are “poised to reshape trade policies, regulatory frameworks, and the very fabric of how we approach global commerce.”
The paper is written by import/export expert Thomas Cook, managing director for Blue Tiger International, a U.S.-based supply chain management consulting company that focuses on international trade. Cook is the former CEO of American River International in New York and Apex Global Logistics Supply Chain Operation in Los Angeles and has written 19 books on global trade.
In the paper, Cook, of course, takes a close look at tariff implications and new trade deals, emphasizing that Trump will seek revisions that will favor U.S. businesses and encourage manufacturing to return to the U.S. The paper, however, also looks beyond global trade to addresses topics such as Trump’s tougher stance on immigration and the possibility of mass deportations, greater support of Israel in the Middle East, proposals for increased energy production and mining, and intent to end the war in the Ukraine.
In general, Cook believes that many of the administration’s new policies will be beneficial to the overall economy. He does warn, however, that some policies will be disruptive and add risk and cost to global supply chains.
In light of those risks and possible disruptions, Cook’s paper offers 14 recommendations. Some of which include:
Create a team responsible for studying the changes Trump will introduce when he takes office;
Attend trade shows and make connections with vendors, suppliers, and service providers who can help you navigate those changes;
Consider becoming C-TPAT (Customs-Trade Partnership Against Terrorism) certified to help mitigate potential import/export issues;
Adopt a risk management mindset and shift from focusing on lowest cost to best value for your spend;
Increase collaboration with internal and external partners;
Expect warehousing costs to rise in the short term as companies look to bring in foreign-made goods ahead of tariffs;
Expect greater scrutiny from U.S. Customs and Border Patrol of origin statements for imports in recognition of attempts by some Chinese manufacturers to evade U.S. import policies;
Reduce dependency on China for sourcing; and
Consider manufacturing and/or sourcing in the United States.
Cook advises readers to expect a loosening up of regulations and a reduction in government under Trump. He warns that while some world leaders will look to work with Trump, others will take more of a defiant stance. As a result, companies should expect to see retaliatory tariffs and duties on exports.
Cook concludes by offering advice to the incoming administration, including being sensitive to the effect retaliatory tariffs can have on American exports, working on federal debt reduction, and considering promoting free trade zones. He also proposes an ambitious water works program through the Army Corps of Engineers.