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.
The Teamsters labor union and the fleet owners’ trade group American Trucking Associations (ATA) rarely agree on matters of freight and transportation policy, but their interests aligned this week when they both praised Congress’ vote to pass the $715 billion “INVEST in America Act.”
The infrastructure bill, known formally as H.R.3684, won passage Thursday in the House of Representatives and now awaits Senate action on a comparable bill. The legislation is a transportation reauthorization and water infrastructure bill that invests in: roads, bridges, and safety ($343 billion); transit ($109 billion); passenger and freight rail ($95 billion); drinking water infrastructure & assistance ($117 billion); and wastewater infrastructure ($51.25 billion).
In a statement, ATA President and CEO Chris Spear encouraged the Senate to advance companion legislation this summer and pledged to support those investments. “By passing the INVEST in America Act, the House has taken a significant step toward enacting the kind of comprehensive infrastructure package our nation needs. The investments in this bill will enable the country to grow, not just economically, but they will improve safety and the environment,” Spear said in a release.
Among other improvements, the bill would focus on the estimated 47,000 bridges in the national highway system that are in need of substantial repair or replacement, according to a statement by U.S. Rep. Peter DeFazio (D-OR), the chair of the Committee on Transportation and Infrastructure.
“We can lead again, like we did in the 60s, and the 70s, when our infrastructure was the envy of the world. We were number one, we're now number 13. And falling fast,” DeFazio said in a press conference. “We're investing one half of 1% of our GDP in infrastructure, China is investing six [and] other competitor nations are investing between three and four. We cannot afford to be absent from this debate anymore. States are trying to do it on their own. They can't do it on their own. This is a federal system. It's a federal problem. Its international competitiveness, it’s jobs, it’s manufacturing.”
The Teamsters also applauded the bill, although that group cited different benefits, saying the INVEST in America Act would reform the trucking sector by requiring all motor carriers to certify that they comply with all labor and safety laws prior to renewing or acquiring their registration with the U.S. Department of Transportation (DOT).
"The motor carrier accountability provision is a huge step forward in holding trucking and delivery companies, including Amazon's growing fleet, accountable for keeping workers safe," Teamsters General President James P. Hoffa said in a release. "Under this new legislation, Amazon, its Delivery Service Partners, and other trucking companies across the country, would be responsible for any labor law and workplace safety violations when they apply for their DOT registration."
According to the Teamsters, that provision also requires the DOT to formally study the correlation between compensation and safety in all trucking and delivery operations nationwide. "This is not only a victory for Teamsters, but for all drivers in the trucking and delivery industries. Our roads and communities will be safer thanks to this legislation,” Hoffa said.
Despite that support from different quarters of the transportation industry, the bill also has its detractors.
Trade groups representing fuel retailers and truckstops said they oppose the act for provisions they say undermine new investment in electric vehicle charging, according to a joint statement from NATSO, representing the nation’s truckstops and travel plazas, NACS, the National Association of Convenience Stores, and SIGMA: America’s Leading Fuel Marketers.
“NATSO is disappointed that we must reject a federal highway bill for the second time because it contains the same harmful provisions that will discourage the private sector from making investments in electric vehicle charging infrastructure,” NATSO President and CEO Lisa Mullings said in a release. “NATSO wants to work with lawmakers to expand the market’s transition to alternative fuels, including EV charging. With a few key improvements to these provisions, NATSO and the entire retail fuel industry would otherwise be able to support this important legislation.”
North American manufacturers have begun stockpiling goods to buffer against the impact of potential tariffs threatened by incoming Trump Administration, building up safety stocks to guard against higher imported costs, according to a report from New Jersey business software firm GEP.
That surge in orders has sparked a jump in production, shrinking the level of spare capacity in global supply chains to its lowest level since June, the firm said in its “GEP Global Supply Chain Volatility Index.” By the numbers, that index rose to -0.20 in November, from -0.39 the month before, based on GEP’s measurement of demand conditions, shortages, transportation costs, inventories, and backlogs from its monthly survey of 27,000 businesses.
Another impact of the trend has been to trigger a surge in procurement activity by manufacturers in Asia—especially China—as new orders rebounded sharply. Only India reported a greater rise in raw material purchases than China in November. And preparations to ramp up production even further were evidenced data showing factory procurement activity across Asia rising at its fastest pace for three-and-a-half years, GEP said.
In sharp contrast, Europe's industrial recession worsened in November, in large part due to Germany's deepening manufacturing downturn. Factories in that region went deeper into retrenchment mode, as demand for inputs from manufacturers in Europe was its weakest since December 2023.
"In November, U.S. manufacturers, particularly in the consumer goods sector, increased their safety stocks to help blunt any immediate tariff increases," John Piatek, vice president, GEP, said in a release. "In contrast, Chinese manufacturers are getting busier as a result of government stimulus and growth in exports, led by automotives and technology products. Strategically, many global companies have a wait-and-hope approach, while simultaneously planning to remake their global supply chains to respond to a tariff and trade war in 2025 and beyond."
In response to booming e-commerce volumes, investors are currently building $9 billion worth of warehousing and distribution projects under construction in the U.S., with nearly 25% of the activity attributed to one company alone—Amazon.
The measure comes from a report by the Texas-based market analyst firm Industrial Info Resources (IIR), which said that Amazon is responsible for $2 billion in warehousing and distribution projects across the U.S., buoyed by the buildout of fulfillment centers--facilities that help process orders and ship products directly to end customers, ensuring deliveries of online goods from retailers to buyers.
That investment is inspired by U.S. Census Bureau data showing $300.1 billion in a preliminary estimate of U.S. retail e-commerce sales for third-quarter 2024, adjusted for seasonal variation but not for price changes, compared to $287.5 million in the first quarter, and an increase of 7.4% compared with third-quarter 2023. In addition, e-commerce sales accounted for 16.2% of total retail sales in the third quarter of this year, the report said.
Private equity firms are continuing to make waves in the logistics sector, as the Atlanta-based cargo payments and scheduling platform CargoSprint today acquired Advent Intermodal Solutions LLC, a New Jersey firm known as Advent eModal that says its cloud-based platform speeds up laden container movement at ports and intermodal hubs.
According to CargoSprint—which is backed by the private equity investment firm Lone View Capital—the move will expand the breadth of global trade that it facilitates and enhance its existing solutions for air, sea and land freight. The acquisition follows Lone View Capital’s deal just last month to buy a majority ownership stake in CargoSprint.
"CargoSprint and Advent eModal have a shared heritage as founder-led enterprises that rose to market leading positions by combining deep industry expertise with a passion for innovation. We look forward to supporting the combined company as it continues to drive efficiency in global trade,” said Doug Ceto, Partner at Lone View Capital.
Terms of the deal were not disclosed, but Parvez Mansuri, founder and former CEO of Advent eModal, will act as Chief Strategy Officer and remain a member of the board of directors of the combined company.
Advent eModal says its cloud-based platform, eModal, connects all parts of the shipping process, making it easier for ports, carriers, logistics providers and other stakeholders to move containers, increase equipment utilization, and optimize payment workflows.
Airbus Ventures, the venture capital arm of French aircraft manufacturer Airbus, on Thursday invested $10.5 million in the Singapore startup Eureka Robotics, which delivers robotic software and systems to automate tasks in precision manufacturing and logistics.
Eureka said it would use the “series A” round to accelerate the development and deployment of its main products, Eureka Controller and Eureka 3D Camera, which enable system integrators and manufacturers to deploy High Accuracy-High Agility (HA-HA) applications in factories and warehouses. Common uses include AI-based inspection, precision handling, 3D picking, assembly, and dispensing.
In addition, Eureka said it planned to scale up the company’s operations in the existing markets of Singapore and Japan, with a plan to launch more widely across Japan, as well as to enter the US market, where the company has already acquired initial customers.
“Eureka Robotics was founded in 2018 with the mission of helping factories worldwide automate dull, dirty, and dangerous work, so that human workers can focus on their creative endeavors,” company CEO and Co-founder Pham Quang Cuong said in a release. “We are proud to reach the next stage of our development, with the support of our investors and the cooperation of our esteemed customers and partners.”
As another potential strike looms at East and Gulf coast ports, nervous retailers are calling on dockworkers union the International Longshoremen's Association (ILA) to reach an agreement with port management group the United States Maritime Alliance (USMX) before their current labor contract expires on January 15.
The latest call for a quick solution came from the American Apparel & Footwear Association (AAFA), which cheered President-elect Donald Trump for his published comments yesterday indicating that he supports the 45,000 dockworkers’ opposition to increased automation for handling shipping containers.
In response, AAFA’s president and CEO, Steve Lamar, issued a statement urging both sides to avoid the major disruption to the American economy that could be caused by a protracted strike. "We urge the ILA to formally return to the negotiating table to finalize a contract with USMX that builds on the well-deserved tentative agreement of a 61.5 percent salary increase. Like our messages to President Biden, we urge President-elect Trump to continue his work to strengthen U.S. docks — by meeting with USMX and continuing work with the ILA — to secure a deal before the January 15 deadline with resolution on the issue of automation,” Lamar said.
While the East and Gulf ports are currently seeing a normal December calm post retail peak and prior to the Lunar New Year, the U.S. West Coast ports are still experiencing significant import volumes, the ITS report said. That high volume may be the result of inventory being pulled forward due to market apprehension about potential tariffs that could come with the beginning of the Trump administration, as well as retailers already compensating for the potential port strike.
“The volumes coming from Asia on the trans-Pacific trade routes are not overwhelming the supply of capacity as spot rates at origin are not being pushed higher,” Paul Brashier, Vice President of Global Supply Chain for ITS Logistics, said in a release. “For the time being, everything seems balanced. That said, if the US West Coast continues to be a release valve for a potential ILA strike supply chain disruption, there is a high risk that both West Coast Port and Rail operations could become overwhelmed.”