Port operations are increasingly looking to reduce their carbon emissions. Switching to battery-electric technology for cargo handling equipment can help—and developments are underway.
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.
Battery-electric vehicle technology is front and center in the race to create greener supply chains, with many companies investigating ways to reduce their reliance on diesel-powered trucks and material handling equipment in favor of lower- or zero-emission options.
Port operations are no exception, but efforts to electrify the heavy-duty equipment used in those environments are still in the early stages, with some industry-watchers saying the tipping point for adopting battery-electric port equipment is still years away. That’s largely due to the high cost of electrified container handling equipment (CHE), which is used to load and unload containers onto and off of ships—examples include large vehicles called straddle carriers, terminal tractors, and reach stackers. The total cost of ownership for battery-electric versions of that equipment is roughly 1.3 times higher than that of diesel-powered CHE, according to data from Netherlands-based port operating company APM Terminals and Dubai-based cargo logistics company DP World. Until those costs come down, battery-electric CHE is likely to remain a small portion of the equipment operating at ports around the world. In fact, battery-electric equipment is just beginning to be deployed, according to the APM and DP World data, which was published in a white paper last October.
But research and testing are underway. Forklift and material handling equipment manufacturer Hyster is one company at the forefront of those efforts. Hyster is involved in pilot programs with its own zero-emission equipment at ports around the world, including a partnership to provide APM Terminals with 10 battery-electric terminal tractors for APM’s location at the Port of Mobile, Alabama. The manufacturer is also working with the Port of Valencia, Spain, to use Hyster’s hydrogen fuel cell (HFC) reach stacker—another alternative to diesel-powered equipment—for port operations. The Valencia project is part of Europe’s H2Ports initiative, a European Union-funded project that aims to implement fuel cells and other zero-emission technologies at ports.
We asked Herman Klaus, Hyster’s director of application solutions, to weigh in on the trend toward battery-electric port equipment and discuss Hyster’s efforts to help create more sustainable port operations. Here are some excerpts from our conversation.
DC Velocity: Demand for zero-emission material handling equipment continues to rise. How is the trend evolving at ports? How much demand are you seeing for technologies that replace traditional diesel-powered equipment?
Herman Klaus: There is tremendous interest in electric machines in the market as the decarbonization targets in our industry are widely set. We see a lot of interest in our zero-emission portfolio, stretching from our battery-electric products [a wide range of forklifts, including port equipment] as well as our hydrogen fuel cell-powered container handling equipment. We have been able to deploy battery-electric [heavy-duty] forklifts in the field, where several customers had the ability to trial the equipment. Currently, we have two container handlers in operation with a hydrogen fuel cell-electric drive line. Apart from bringing interested customers to these sites, we are also heavily engaging with customers around the world by sharing our technology roadmap and discussing collaboration possibilities.
DCV: What are the main considerations when deciding whether or not to implement electric port equipment?
Klaus: When exploring electric options, it’s important to get a complete operational profile to guide decision-making. The right electrification choice will always depend on the particular needs of the operation, such as the demands and intensity of the operation. There will also be factors dictated by the charging/refueling infrastructure and working patterns. For instance, is opportunity charging possible? … There are also geographical considerations—certain energy options [for example, electricity and hydrogen] are more affordable in some countries than others.
Cost is another factor. The price of solutions will vary based on the equipment type, power source, charging or refueling infrastructure, and other factors. There is currently a significant cost differential between container handling equipment fueled with diesel and alternatives powered by electricity, but as more electric equipment enters the market, economies of scale will help to drive parity. It’s also important to remember that the initial acquisition price is only one piece of the total cost of ownership, and electric equipment can help reduce certain operating and maintenance expenses. For example, electric drivetrains have fewer components and less complexity than ICE [internal combustion engine equipment], which can help reduce the downtime and cost associated with maintenance.
It’s also worth noting the maintenance element, as electric container handlers are categorized as high-voltage equipment, and there are important safety standards operations must understand and comply with to prevent electrical danger or injury.
DCV: How do you handle the charging process for electric vehicles in these environments? How is it different from charging done inside warehouses and distribution centers?
Klaus: Major considerations on this subject include the frequency with which equipment must be refueled/recharged and infrastructure requirements. These are similar questions to what operations with lower-capacity equipment used in distribution centers often consider. For example, warehouses and DCs must schedule charging to fit their productivity requirements and must also consider onsite charging and the ability of the local grid to provide sufficient energy.
First, frequency: Zero-emission options are being designed to provide enough capacity to keep operations moving and avoid the need to stop in the middle of a shift to recharge or, in the case of hydrogen fuel cells (HFC), refuel. But the required time and frequency of recharging or refueling are very important considerations. For large HFC-powered equipment, a rough ballpark figure is that it can take about 15 minutes to fill an empty tank, enough for up to eight to 10 hours of continuous runtime. A lithium-ion battery-powered top pick [a type of cargo handler] capable of opportunity charging, for instance, could have enough power onboard to complete a full eight-hour shift before needing to be charged.
As [for] the local electric grid handling the energy draw of port equipment: The answer depends on the grid stability and capacity in the local area and the fleet size. Charging heavy-duty electric equipment like this does demand a significant energy draw, so it is important to work with a partner who can help understand power requirements, evaluate charging strategies such as staggered or overnight charging when there is a lower burden on the grid, and speak with your local utility provider. It’s also important to note that not all electric equipment is dependent on electricity from the grid. HFC-powered equipment can be a strong option where the local grid is not reliable.
In terms of what operations need onsite in order to charge or fuel equipment: Apart from the container handling equipment, operations will need a charger for battery-electric equipment or hydrogen fueling stations and possibly storage—depending on your hydrogen sourcing strategy—for HFC-powered equipment.
DCV: Can you tell us a bit more about the recent deployments of Hyster’s battery-electric and hydrogen fuel cell port equipment?
Klaus: [Our] hydrogen fuel cell-powered reach stacker [a vehicle that can move containers around ports] at the Port of Valencia has successfully transitioned to real-world operation, marking the official launch of the piloting phase for the [European Union’s] H2Ports project.
It’s important to acknowledge that integrating any new technology requires a period of adjustment. Compared to a standard diesel truck, this initial startup phase requires added input and effort for both the reach stacker itself and the supporting hydrogen infrastructure.
Maintaining operational flexibility is also crucial during this pilot. We may encounter unforeseen challenges, such as temporary fluctuations in hydrogen supply or requirements for specialized parts. However, we’re committed to working collaboratively to address any such issues in a timely and professional manner.
The core objective of this project is to demonstrate the viability of hydrogen fuel cell technology in real-world port operations. Over a minimum two-year period, the reach stacker will be put through its paces, accumulating more than 5,000 operating hours. This data will be instrumental in proving that fuel cell reach stackers are a realistic and reliable option for the future of sustainable port operations.
We also have a special test agreement with APM Terminals in Mobile, Alabama, to deliver … 10 battery-electric terminal tractors [vehicles that move containers within a cargo yard or similar facility]. Hyster is onsite to provide support for these machines. We have a dedicated support team, solely to support our zero-emission port equipment projects around the globe.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use AI-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next 1-3 years. That was followed by self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) that are planned for use within the next three years, specifically for loss prevention.
Those strategies could help improve the brick and mortar shopping experience, since 78% of shoppers say it’s annoying when products are locked up or secured within cases. Adding to that frustration is that it’s hard to find an associate while shopping in stores these days, according to 70% of consumers. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
The survey also identified additional frustrations faced by retailers and associates:
challenges with offering easy options for click-and-collect or returns, despite high shopper demand for them
the struggle to confirm current inventory and pricing
lingering labor shortages and increasing loss incidents, even as shoppers return to stores
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.