Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.
Robotics and automation may be all the rage in warehousing circles these days, but the building blocks of the modern warehouse haven’t strayed far from their roots. Storage racks—the traditional, nonautomated kind—are a prime example and an often overlooked aspect of today’s fast-moving, high-tech facilities. These warehouse staples can help maximize storage space, speed throughput, and create a safer work environment in facilities of all shapes and sizes—provided you have the right system in place to meet your needs.
Wondering how to choose the right storage racking for your warehouse—or determine if your current system is the right one? These three steps can help guide the way.
STEP 1: UNDERSTAND RACK FUNDAMENTALS
In warehousing and logistics, industrial storage racks typically hold pallets, cases, and large individual items that will be picked, packaged, and shipped. Some of the most common types of racks include:
Selective racking.This type of rack is used to store pallets in either single- or double-deep modes. Single-deep racks allow full pallets to be stored side by side, so that all pallets are accessible from the warehouse aisle. Double-deep options increase storage density by allowing two pallets to be stored back to back.
These are some of the simplest racks available and are often used in warehouses that store a high number of different stock-keeping units (SKUs), but a low volume of each SKU, according to Diane Domingues, vice president of marketing and customer service for rack manufacturerFrazier Industrial Co. She describes selective rack as “a great solution for any industry, especially those with changing needs.”
Case- or carton-flow racking. This type of racking consists of shelves equipped with rollers or wheels that allow cases or cartons of product to flow forward as they are picked. Domingues explains that it is “used to store SKUs fulfilled in case- or each-based increments. It’s commonly seen in food, beverage, and retail applications, [but] it can be a solution for any industry with slow-moving SKUs stored in case- or each-based increments as part of its product mix.”
Pallet-flow racking.These racks allow for higher-density storage, and they work much like case-flow racking does. Pallets are loaded from the rear of the system and move forward along a pitched track of wheels. When a pallet is removed, the remaining loads roll forward. Such systems are commonly used in first-in/first-out (FIFO) storage applications, including in the food industry, according to Domingues.
Drive-in racks. These are free-standing self-supporting racks that allow drive-in access to forklifts. Pallets are loaded and unloaded on horizontal rails that run along the inside of the racks, perpendicular to the warehouse aisles. Used to create high-density storage, these are best for high-volume, low-SKU applications, such as manufacturing, beverage, and food processing.
Drive-in rack systems are versatile and cost-effective, allowing products to be stored multiple-positions deep, which can “cut down on aisle space compared to other systems,” according to Eric Andres, national sales manager for rack manufacturerHannibal Industries.
Push-back racking. This high-density storage option is similar to drive-in racking and allows customers to store pallets up to five deep. It uses a series of carts on pitched tracks for loading and unloading. The first pallet to be stored in the system is loaded onto the top cart; the next pallet is used to push the first load back, exposing the next cart for loading. The process repeats until the last pallet is deposited into the system. When a pallet is unloaded, gravity moves the subsequent carts forward until all pallets have been picked. “Unlike drive-in, every push-back bay can store a different SKU, and all pallet access is done without entering the rack,” according to Domingues. The system is commonly used in food and cold storage applications.
Cantilever rack.This type of system is used to store long products, such as pipes or lumber. A series of columns with arms are used to hold the products, which are often bundled together. Products are stored across the arms, allowing a forklift to pick up the load from the center. The racks can also be fitted with wire decking to allow storage of other types of products.
These systems are typically used in manufacturing and construction, and also by some specialty retailers such as hardware stores.
STEP 2: DETERMINE YOUR NEEDS
Because warehouses often store different types of products, with differing volume throughputs, the ideal storage solution often includes more than one type of racking. The first step to determining what you need is to review “unit, method, and area,” according to Domingues. Unit refers to the product load or loads being stored; method is the type of equipment being used to handle the products; and area refers to the space available in your warehouse for racking.
“Your answer to each question will dictate what types of racking are most [suitable] for your specific needs,” Domingues explains. “If you’re unsure what type of rack is best, a racking supplier can help you determine the ideal solution.”
Andres agrees, adding that it’s also important to work with a supplier who understands the rules and regulations for constructing racking systems. Such requirements are often guided by local building codes and can include seismic considerations, which vary by region, as well as safety measures that can help guard against system damage and worker injury.
“We think it starts with finding a trusted partner,” Andres says. “You need to look for someone who understands the requirements for the building space and how those needs may change over time. It’s also critically important that they understand local, state, and federal requirements for the building or warehouse space.”
STEP 3: DESIGN FOR THE LONG TERM
Customers used to select racking systems based on the here and now, but not anymore, Domingues and Andres agree.
“Once upon a time, buyers were selecting rack systems based on their immediate needs. When those needs changed, they bought new racking,” Domingues says. “Now, they are buying systems that take both their immediate needs and projected future needs into account. The modern warehouse can’t wait the time it takes to remove an old rack … and replace it with a new one, so buyers are thinking longer term, with resiliency in mind.”
Lately, that means designing systems that maximize storage capacity, largely in response to a tight warehousing market, according to Andres. Accelerating e-commerce activity, inflation, and a variety of other factors have combined toincrease both demand for and the cost of warehouse space, so companies are looking to get the most out of new and existing facilities. Andres advises designing systems that optimize storage in a smaller warehouse footprint and free up space for picking and other value-added activities, for example.
He says seismic considerations are animportant aspect of long-term designas well. Rack installers can reinforce their designs based on local building code requirements, and there are also specific rack products designed with seismic protections in mind. Hannibal Industries’ patented TubeRack system was designed specifically to withstand the dangers of earthquakes, for example.
“It’s really about designing a safer system,” Andres says.
Domingues agrees that safety is taking on a greater role in rack design today, especially when it comes to ergonomics and worker protection. Storage systems that provide easier access to items, for example, can help reduce injuries and increase productivity—two factors that also address the industry’s labor crunch by keeping workers on the job and maintaining the flow of products through the warehouse.
“Racks have grown to keep up with the needs and demands of the modern warehouse. They’ve become a lot more agile, adaptable, and flexible in their design to accommodate the ever-evolving warehouse environment,” Domingues says, emphasizing the need to focus on the safety aspect in particular. “There is a greater premium on worker, equipment, and product safety than ever before. And today’s racking solutions are designed with a greater emphasis on all of those [considerations].”
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.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."