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.
Hurricane season officially kicked off this month, and experts say this year is set to be a doozy. That means logistics and supply chain professionals should prepare for the business disruptions, challenges, and headaches that can accompany the stormy weather.
But logistics pros should be used to all this by now, given the intensifying weather threats around the world. Last year’s above-average Atlantic hurricane season ranked fourth for the most named storms in a year since 1950, according to the U.S. government’s National Oceanic and Atmospheric Administration (NOAA). There were 20 named storms in 2023, seven of which were hurricanes—and three of those intensified into major hurricanes. You may recall Hurricane Idalia, the category 4 storm that barreled through Florida last August, disrupting infrastructure across the Southeast. And who could forget Hurricane Ian the year before, which helped push 2022 into the record books as the third-costliest hurricane season on record?
NOAA hadn’t issued its 2024 storm predictions at press time, but other groups were already predicting a higher number of damaging events this year. In April, researchers at the University of Arizona said the 2024 hurricane season has the potential to be even worse than last year’s, predicting 11 hurricanes—five of which could be major hurricanes, meaning category 3, 4, or 5—and 21 named storms over the North Atlantic. The prediction targets the North Atlantic basin, which includes the Gulf of Mexico and the East Coast.
Meteorologists from Colorado State University have predicted an “extremely active” hurricane season as well, forecasting 23 named storms, five of which could be major hurricanes. They issued their forecast for the Atlantic basin in early April.
For comparison, an average hurricane season has 14 named storms, seven hurricanes, and three major hurricanes, according to NOAA.
Logistics and supply chain professionals are taking note, pushing preparation to the top of their risk management to-do lists. Extreme weather ranked as one of the biggest threats to supply chain operations in several recent surveys and reports, including the “2024 State of Transportation” report from industry tech provider Breakthrough, which offers sustainable fuel and freight solutions for shippers. The 500 shippers and carriers polled for the report said extreme weather events—such as intensifying winter weather across the United States, flooding in California, and fallout from hurricanes—are their number one transportation-related challenge this year, surpassing inflationary pressures and macroeconomic uncertainty, which were their top concerns a year earlier.
Such worries are shining a brighter light on corporate sustainability initiatives, as companies work to reduce their environmental impact: 98% of shippers surveyed by Breakthrough said their organization has set sustainability goals for transportation, and 63% said they plan to achieve specific sustainability certifications or goals, for example.
Another report, from risk assessment firm Moody’s, includes “natural disasters and climate risk” among the top 10 challenges facing global supply chains. Extreme weather ranks ninth on the list, which was published last October. In addition to the threat of business interruption, property damage is another key risk facing supply chains as volatile weather conditions intensify, according to the report. And as with the Breakthrough analysis, Moody’s researchers emphasize the opportunity for companies to meet sustainability targets as these issues move front and center: As concerns about the weather heat up, it only makes sense that businesses focus on becoming better stewards of the environment. What’s more, the report notes that companies can use climate data to develop risk mitigation strategies, which might include analyzing how business partners’ activities and facility locations expose your company to risk.
Some weather officials will be updating their predictions this month, but only time will tell just how turbulent this year’s hurricane season—which runs through Nov. 30—will be. Here’s hoping that the weather-related disruptions of the past few years have toughened us up for what may lie ahead.
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).
While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.
In addition to its human toll, the storm could exert serious business impacts, according to the supply chain mapping and monitoring firm Resilinc. Those will be largely triggered by significant flooding, which could halt oil operations, force mandatory evacuations, restrict ports, and disrupt air traffic.
While the storm’s track is currently forecast to miss the critical ports of Miami and New Orleans, it could still hurt operations throughout the Southeast agricultural belt, which produces products like soybeans, cotton, peanuts, corn, and tobacco, according to Everstream Analytics.
That widespread footprint could also hinder supply chain and logistics flows along stretches of interstate highways I-10 and I-75 and on regional rail lines operated by Norfolk Southern and CSX. And Hurricane Helene could also likely impact business operations by unleashing power outages, deep flooding, and wind damage in northern Florida portions of Georgia, Everstream Analytics said.
Before the storm had even touched Florida soil, recovery efforts were already being launched by humanitarian aid group the American Logistics Aid Network (ALAN). In a statement on Wednesday, the group said it is urging residents in the storm's path across the Southeast to heed evacuation notices and safety advisories, and reminding members of the logistics community that their post-storm help could be needed soon. The group will continue to update its Disaster Micro-Site with Hurricane Helene resources and with requests for donated logistics assistance, most of which will start arriving within 24 to 72 hours after the storm’s initial landfall, ALAN said.