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.
Research, development, and testing of large-cargo aerial drones—those capable of carrying more than just a few pounds of freight—continues around the world, but one European company is close to making commercial delivery operations a reality.
Cargo drone airline Dronamics will provide remotely controlled drone deliveries with its Cessna-sized Black Swan aircraft for Qatar Airways Cargo, in a partnership the companies announced late last year. The deal expands the reach of both airlines and furthers Dronamics’ goal of providing middle-mile logistics service that company leaders say not only speeds delivery and reduces costs but also gives remote and underserved locations around the world access to more frequent deliveries.
“[We] connect smaller places that may not have direct transport links,” says Severina Grozeva, global communications director for London-based Dronamics, which was founded by two brothers from Bulgaria in 2014 and maintains offices in the country’s capital, Sofia. Grozeva explains that the drones can land in small, unpaved areas that are unreachable by larger aircraft. “[The drones] will land at a small airport, regional airport, airfields. Eventually, we have plans for them to land near [warehouses] and manufacturing facilities.”
She adds that the drones can get a “meaningful” amount of cargo to remote locations for subsequent delivery to homes and businesses, explaining that the middle-mile drones deliver cargo “close to the business and close to the consumer, but not in your backyard.”
Dronamics expects to begin delivering for Qatar Airways Cargo later this year—first in Greece, where they will connect Athens with customers in the country’s northern industrial area as well as the islands in the south.
COVERING MORE DISTANCE
To date, most of the headway in drone delivery has been made in last-mile logistics, delivering small orders of retail merchandise or medicine to customers’ homes. Walmart has made strides in this area, announcing in January an expansion of its drone delivery program in Texas; the service will reach nearly 2 million households in the Dallas-Fort Worth area by the end of this year. Last-mile drones have also gotten traction in health care, delivering medicines, blood samples, and vaccines to medical facilities around the world. Autonomous delivery company Ziplineexpanded its work in that area in February, in a partnership with WellSpan Health in Pennsylvania. In both cases, the solutions offer small autonomous or remotely controlled airborne vehicles capable of delivering a few pounds of cargo up to a few hundred miles.
Dronamics’ planned service is different in size and scope. The Black Swan middle-mile drone can deliver 770 pounds of cargo up to 1,550 miles. Its fuselage is maximized for freight—it has no cockpit, giving the drone a maximum storage capacity of 125 cubic feet. Essentially, it holds about the same amount as a small delivery van, Grozeva explains. Technicians control the drones via a remote cockpit. The system requires a short runway for takeoff and landing, about 1,300 feet—paved or not. The idea is that the service will eliminate the need to use multiple trucks and vans to transport freight, replacing them with a service that can get the cargo closer to the consumer, faster.
Dronamics says its drones can deliver cargo up to 80% faster, 50% cheaper, and with up to 60% lower emissions than traditional modes of transportation, including air freight. The Black Swan runs on a conventional engine, but its frame and size help make it more fuel-efficient, Grozeva says, adding that the company is working toward using sustainable fuels, including biofuel, hydrogen, and synthetic-based formulations.
The company has been testing its drones for a few years and launched its first full-scale flight in 2023. Early customers include freight forwarders and logistics service providers— Germany’s Hellmann Worldwide Logistics and global package delivery service DHL are two examples—but Grozeva says Dronamics also plans to work directly with companies and brands that move large volumes of cargo. The agreement with Qatar Airways Cargo is its first partnership with an international airline—and Dronamics claims it’s an industry first as well.
DEMOCRATIZING DELIVERY
Air freight represents a small portion of the total cargo moved around the world annually, but leaders at Dronamics say middle-mile cargo drones will help broaden that market. On top of that, they say middle-mile drones can bring next-day delivery to more people in more places around the world, which will benefit those in less-developed regions as well as those in remote areas—like the Greek islands, where many businesses and consumers receive only weekly deliveries of essential goods, via ferry, much of the year.
“There are a lot of geographies like that,” Grozeva explains. “People say to us, ‘This is a great solution for the less-developed world’ … but there is a lot of opportunity in the developed world as well.”
Dronamics refers to its business proposition as “enabling same-day delivery to everyone, everywhere.”
Although Dronamics’ work has focused on Europe to date, the company is currently testing its service through a DHL partnership in Australia and eventually plans to break into the U.S. market.
Market trends may help make those goals a reality. The delivery drone market is expected to grow considerably over the next several years, by some estimates reaching a compound annual growth rate (CAGR) of around 40% by 2030—driven largely by demand for faster, more sustainable delivery as well as advances in drone technology. Small, last-mile delivery drones will make up the bulk of the growth, but drones that can transport heavier loads are making strides as well. A 2023 report from Allied Market Research points to the integration of cargo drones into middle-mile logistics as a key trend moving forward.
“Improvements in battery technology, sensors, machine learning algorithms, and materials have enhanced the capability of cargo drones,” according to the report. “With longer flight times, heavier payloads, and greater autonomy, cargo drones have become more efficient and effective than traditional delivery methods.”
Leaders at Dronamics agree.
“[This is] still considered a niche market,” Grozeva says, emphasizing the long-term potential of middle-mile drones. “But it’s interesting in terms of what it can do to help businesses become more competitive.”
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.