In our continuing series of discussions with top supply-chain company executives, Mike Pilgrim discusses problems equipment manufacturers have securing production materials, the effects of urbanization on dock designs, and new dock technologies.
David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
Mike Pilgrim has been in the material handling industry for more than 40 years. Since 2001, he has served as president of Systems LLC, a manufacturer of loading dock equipment under the Poweramp, McGuire, and DLM brands. Pilgrim started out in the loading dock business as a sales coordinator. He quickly moved up the corporate ranks to become a VP of sales before joining Systems. He is also a former chairman of MHI’s Loading Dock Equipment Manufacturers (LODEM) group.
Q: How would you describe the current state of the industry?
A: The good news is industry shipments for dock levelers and truck-restraining devices are at the highest levels in the past 25 years. However, the current challenges over the past 15 months seem endless. The Covid era has raised havoc with every aspect of manufacturing and materials management. As an industry, we have seen leadtimes go from the standard four to six weeks to 20 to 26 weeks. This is due to a combination of components like microchips going from eight weeks to 52, cylinders from 12 weeks to 36, powerpacks from 12 weeks to nine months, tubing from eight weeks to 10 months, and so on.
Dock levelers use specialty steel, which is high-strength treadplate. Both leadtimes and supply have been adversely affected. Seals and shelters have been negatively impacted by foam and wood material shortages and inflationary cost. Offshore producers of curtain materials, electronics, and steel products face extended leadtimes and extremely high transportation costs in addition to logistical difficulties at the ports. Steel indexes for hot- and cold-rolled products have risen fourfold from late 2020 to late 2021. Labor here at home has been negatively impacted as we compete for an ever-shrinking workforce and by employees’ increasing need for flexibility during the pandemic. Although we are experiencing record demand and uncertainty of raw materials, our company has maintained a 96% on-time–delivery rate.
Q: Docks are among the most dangerous places in a facility, with a lot of lift truck traffic and vehicles moving in and out of trailers. How can technology make this environment safer?
A: A clear trend in the industry is an ever-increasing percentage of truck restraints, pushbutton levelers, and integrated control panels. They provide a clear trend toward a safer and more efficient dock operation. With a greater influence of logistical providers such as Uber Freight and companies levying demurrage charges for idle time their trucks sit at the dock, companies are routinely being evaluated on how safe and efficient the operation is. Added into this mix is a higher turnover rate and consequent influx of new employees. In response, companies are trending toward safe and easy-to-use pushbutton dock levelers and truck restraints with controls that include the operation of the dock doors and light accessories. Many companies are adding accent lights at the dock and door, which are coordinated with the “safe” status of the dock controller, producing [safer] conditions for the dock worker and those in the immediate area.
Q: What is the most significant change in dock products you’ve seen during your time in the industry?
A: I have been active in the loading dock industry for nearly 40 years. I entered the industry when truck restraints and pushbutton levelers were in their infancy. Clearly, ergonomics and safety has been a driving force, and so our industry has evolved, and these products are now the standard. Companies recognize the loading dock as the lifeblood of the distribution center, and the equipment installed should last 10 to 15, even 20, years. It is critical that companies look not only at the operation they have today, but also consider the growth and changing needs within their workforce for the future.
An example of this is evolving right now in our industry. In the past, the dock area was void of data that can help a facility monitor safety, energy efficiency, and productivity. Today, our controllers can incorporate IoT (internet of things) technology that allows management to wirelessly compile data such as dock availability, time to load, inactivity, and use of safety devices to maximize their efficiency. This is critical today, particularly in cases where food safety is important.
We recently completed a project where the sustainability people at corporate were able to monitor a remote distribution center where the doors were open with periods of extended inactivity. In just three months, this customer was able to reduce the time the doors remained open by half. That is a huge potential savings and just one of the ways the data produced at the dock can help management personnel become more efficient. As the company’s needs expand to include gate access, yard management, and driver information, the foundation of these new dock controllers expands to accommodate this larger ecosystem.
Q: More e-commerce and other fulfillment facilities are moving into urban areas. How will that affect dock designs?
A: Last-mile and urban satellite facilities have created new approaches to dock design. Most of these facilities will still require receiving of conventional truck-trailers for loading and unloading. Generally, these facilities will also accommodate straight trucks for both conventional loading and liftgate deliveries. For these applications, the dock, restraint, and seal interface will be different, and consulting with your dock professional is critical. In addition, sprinter vans are becoming extremely popular for deliveries, and service to these vehicles gets quite challenging. Many companies require modified access to get these vehicles into the building or the designated area where loading takes place.
Q: How has the growth of automation affected dock operations?
A: Automated truck loading systems exist in our industry. Many require modification to the trailer and warehouse floor along with a greater staging area. A technology that’s currently trending is automated loading with robotics or automated guided vehicles (AGVs). We have worked with several clients to interlock and monitor the status of these docks while sophisticated AGVs load or unload packages. Along the same line and a steppingstone to the future is advancing the technology to accommodate credentialing of equipment operators and the eventual arrival of autonomous vehicles.
Q: Your company is part of the Chamberlain Group, which specializes in “smart access solutions.” Can you explain what that means and how Systems fits into the group?
A: Systems joined the Chamberlain Group in 2017. At the time, we had our own iDock Connect solution for online dock analytics, which had some striking similarities to Chamberlain’s myQ facility software. The myQ product is very popular with residential users, having literally millions of consumers exposed to it on a daily basis. These same users are employed in warehouses and distribution centers, and therefore, having a platform that extends from residential use to industrial use makes perfect sense, and today myQ is a part of our smart control platform. Chamberlain Group is the leader in access management, so whether it’s your home garage, telematics in your car, gated home development, apartment access, or access to your industrial facility, the foundation of myQ is established and its ability to grow as your needs develop is assured. This is a huge competitive advantage for Systems.
Q: Are there any particular projects or products you are working on that you wish to share?
A: With a growing demand for online dock analytics, we wanted to expand this offering to all existing loading docks with the introduction of iDock Link. Link utilizes IoT technology to connect a loading dock online to myQ, regardless of what dock equipment is already installed. Sensors can track and report on activity such as the time a truck is present, use of the leveler or restraint, how long a door is open, forklift activity, and more. A facility can add these components with Link to its loading docks and still obtain the benefits of myQ Dock Management without having to replace all of its existing equipment.
Motion Industries Inc., a Birmingham, Alabama, distributor of maintenance, repair and operation (MRO) replacement parts and industrial technology solutions, has agreed to acquire International Conveyor and Rubber (ICR) for its seventh acquisition of the year, the firms said today.
ICR is a Blairsville, Pennsylvania-based company with 150 employees that offers sales, installation, repair, and maintenance of conveyor belts, as well as engineering and design services for custom solutions.
From its seven locations, ICR serves customers in the sectors of mining and aggregates, power generation, oil and gas, construction, steel, building materials manufacturing, package handling and distribution, wood/pulp/paper, cement and asphalt, recycling and marine terminals. In a statement, Kory Krinock, one of ICR’s owner-operators, said the deal would enhance the company’s services and customer value proposition while also contributing to Motion’s growth.
“ICR is highly complementary to Motion, adding seven strategic locations that expand our reach,” James Howe, president of Motion Industries, said in a release. “ICR introduces new customers and end markets, allowing us to broaden our offerings. We are thrilled to welcome the highly talented ICR employees to the Motion team, including Kory and the other owner-operators, who will continue to play an integral role in the business.”
Terms of the agreement were not disclosed. But the deal marks the latest expansion by Motion Industries, which has been on an acquisition roll during 2024, buying up: hydraulic provider Stoney Creek Hydraulics, industrial products distributor LSI Supply Inc., electrical and automation firm Allied Circuits, automotive supplier Motor Parts & Equipment Corporation (MPEC), and both Perfetto Manufacturing and SER Hydraulics.
The move delivers on its August announcement of a fleet renewal plan that will allow the company to proceed on its path to decarbonization, according to a statement from Anda Cristescu, Head of Chartering & Newbuilding at Maersk.
The first vessels will be delivered in 2028, and the last delivery will take place in 2030, enabling a total capacity to haul 300,000 twenty foot equivalent units (TEU) using lower emissions fuel. The new vessels will be built in sizes from 9,000 to 17,000 TEU each, allowing them to fill various roles and functions within the company’s future network.
In the meantime, the company will also proceed with its plan to charter a range of methanol and liquified gas dual-fuel vessels totaling 500,000 TEU capacity, replacing existing capacity. Maersk has now finalized these charter contracts across several tonnage providers, the company said.
The shipyards now contracted to build the vessels are: Yangzijiang Shipbuilding and New Times Shipbuilding—both in China—and Hanwha Ocean in South Korea.
Asia Pacific origin markets are continuing to contribute an outsize share of worldwide air cargo growth this year, generating more than half (56%) of the global +12% year-on-year (YoY) increase in tonnages in the first 10 months of 2024, according to an analysis by WorldACD Market Data.
The region’s strong contribution this year means Asia Pacific’s share of worldwide outbound tonnages overall has risen two percentage points to 41% from 39% last year, well ahead of Europe on 24%, Central & South America on 14%, Middle East & South Asia (MESA) with 9% of global volumes, North America’s 8%, and Africa’s 4%.
Not only does the Asia Pacific region have the largest market share, but it also has the fastest growth, Netherlands-based WorldACD said. After origin Asia Pacific with its 56% share of global tonnage growth this year, Europe came in as the second origin region accounting for a much lower 17% of global tonnage growth. That was followed closely by the MESA region, which contributed 14% of outbound tonnage growth this year despite its small size, bolstered by traffic shifting to air this year due to continuing disruptions to the region’s ocean freight markets caused by violence in the vital Red Sea corridor to the Suez Canal.
The types of freight that are driving Asia Pacific dominance in air freight exports begin with “general cargo” contributing almost two thirds (64%) of this year’s growth, boosted by large volumes of e-commerce traffic flying consolidated as general cargo. After that, “special cargo” generated 36%, with 80% of that portion consisting of the vulnerables/high-tech product category.
Among the top 5 individual airport or city origin growth markets, the world’s busiest air cargo gateway Hong Kong also remained the biggest single generator of YoY outbound growth in October, as it has for much of this year. Hong Kong’s +15% YoY tonnage increase generated around twice the growth in absolute chargeable weight of second-placed Miami, even though the latter had recorded +31% YoY growth compared with its tonnages in October last year. Dubai was the third-biggest outbound growth market, thanks to its +45% YoY increase in October, closely followed by Shanghai and Tokyo.
And on the inverse side of the that trendline, the top 5 YoY decreases in inbound tonnages were recorded in Teheran, Beirut, Beijing, Dhaka, and Zaragoza. Notably, Teheran’s and Beirut’s inbound tonnages almost completely wiped out as most commercial flights to and from Iran and Lebanon were suspended last month amid Middle East violence; tonnages at both airports were down by -96%, YoY, in October. Other location that saw steep declines included Dhaka, Beirut and Zaragoza – affected by political unrest, conflict, and flooding, respectively –followed by China’s Qingdao and Mexico’s Guadalajara.
Specifically, 48% of respondents identified rising tariffs and trade barriers as their top concern, followed by supply chain disruptions at 45% and geopolitical instability at 41%. Moreover, tariffs and trade barriers ranked as the priority issue regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501-1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing.
“Evolving tariffs and trade policies are one of a number of complex issues requiring organizations to build more resilience into their supply chains through compliance, technology and strategic planning,” Jackson Wood, Director, Industry Strategy at Descartes, said in a release. “With the potential for the incoming U.S. administration to impose new and additional tariffs on a wide variety of goods and countries of origin, U.S. importers may need to significantly re-engineer their sourcing strategies to mitigate potentially higher costs.”
Cowan is a dedicated contract carrier that also provides brokerage, drayage, and warehousing services. The company operates approximately 1,800 trucks and 7,500 trailers across more than 40 locations throughout the Eastern and Mid-Atlantic regions, serving the retail and consumer goods, food and beverage products, industrials, and building materials sectors.
After the deal, Schneider will operate over 8,400 tractors in its dedicated arm – approximately 70% of its total Truckload fleet – cementing its place as one of the largest dedicated providers in the transportation industry, Green Bay, Wisconsin-based Schneider said.
The latest move follows earlier acquisitions by Schneider of the dedicated contract carriers Midwest Logistics Systems and M&M Transport Services LLC in 2023.