• ZIM Integrated Shipping Services entered into a new operational cooperation with MSC on the Asia – U.S. East Coast and U.S. Gulf trades. The cooperation scope includes six new services—launching in February 2025—linking Asia to the U.S. East Coast, Mexico, Caribbean ports, and U.S. Gulf ports.

• Southeastern Freight Lines launched a direct service to Las Cruces, New Mexico. The new route is serviced from its El Paso, Texas, service center and provides next-day shipping from Dallas, Fort Worth, Odessa, and San Antonio.

• Atlas Air Worldwide Holdings, a provider of outsourced aviation logistics, added three Boeing 747-8 freighters to its fleet to meet global demand for airfreight capacity, particularly for cross-border ecommerce shipping.

Technology

↑ HUBTEX now offers a sensor-powered aisle entry assistance system for multidirectional sideloaders to handle goods with precision and avoid collisions in narrow-aisle warehouses. All series of the PHOENIX multidirectional sideloader can be equipped with this new system, which processes data from a 2D lidar sensor and orients the vehicle to the center of the aisle.

• Resilinc enhanced its supplier collaboration platform to improve sub-tier supply chain visibility and accelerate mitigation responses. Key updates include enhanced forecasting, supplier-customer collaboration, and mitigation capabilities. Users can now integrate pre-existing sub-tier sourcing data into the platform.

• John Galt Solutions now offers Atlas Deliver capabilities as a microservice-based application on its Atlas Planning Platform. Atlas Deliver streamlines the processing of orders into shipments while accounting for real-world constraints, including freight rates, container sizes, distribution routes, truck load capacities, and replenishment plan priorities based on factors such as item type, release date, and product category.

• Integrated Systems Design released its warehouse control system (WCS) software for the UltraStore Mid-Load automated storage and retrieval system (AS/RS) and the entire warehouse. The WCS provides real-time stock levels, allowing management to eliminate stock-outs and schedule replenishment as labor becomes available.

• Banyan Technology, a provider of over-the-road (OTR) freight execution software, partnered with Shiplify, an accessorial identification service, to automatically verify less-than-truckload limited access and accessorial needs while rating shipments. Integrating Banyan’s platform, LIVE Connect, with Shiplify’s accessorial identification capabilities, the collaboration aims to reduce delivery issues and improve billing accuracy.

← X1, a cloud-native integration engine from Rygen Technologies, lets users create and manage integrations faster and more efficiently. The AI-enhanced platform is the company’s latest integration Platform as a Service (iPaaS) technology, allowing for supply chain data mapping with diagnostics.

Products

• Returnity’s latest version of its flagship product, The Last Box, a reusable packaging solution, works with various distribution line setups. Returnity reformatted the box to comply with automated labeling requirements. The Last Box features a collapsible nesting design for easy storage and returns.

→ The OPTE4548 series container is a sustainable alternative to paper gaylords for storage and distribution of raw material, assemblies, and finished goods. The reusable collapsible container from ORBIS is the industry’s first 28-position 45-inch x 48-inch container, offering customers up to eight more containers per truckload vs. traditional sleeve-pack containers.

• DT Research now offers the DT312RP rugged tablet, which is designed for harsh environments and provides several data capture options such as front and back cameras, 4G LTE/AWS, GNSS for precise mapping and measurements, and 2D barcode scanner.

← The Clamco 6800CS-HS from PAC Machinery is a high-speed automatic side sealer for shrink wrapping applications. Companies can shrink wrap products up to 16 inches wide and with varying lengths at a rate of up to 120 cycles/minute with this continuous motion all-electric side sealer.

• Maritime cargo equipment specialist Cargo Care Solutions introduced a line of lashing solutions to meet increasing demand in the newbuild and retrofit container market. The new line is compliant with worldwide recognized standards including DNV and LRS. The company also provides product support through the life cycle of a container ship.

↑ Maersk Container Industry (MCI) introduced the Star Cool 1.1 triple refrigerant reefer cooling machine, which incorporates R1234yf, a climate-friendly refrigerant that offers an ultra-low Global Warming Potential (GWP). The unit can enhance energy efficiency, consuming 8% less energy than previous models through advancements in compressor technology and design optimization.

Services

• Realterm completed the final phase of O’Hare International Airport’s Northeast Cargo campus. The completed third and final phase of the cargo campus offers an additional 130,000 square feet and two aircraft parking positions; can accommodate up to 12 jumbo freighters per day; and processes more than 110,000 tons of cargo per year.

• Worldwide Flight Services Holland B.V. (WFS), a member of the SATS Group, is expanding its presence in Amsterdam Airport Schiphol (AMS), with the proposed acquisition of Menzies World Cargo B.V., Menzies Aviation’s general cargo handling operations at AMS. The acquisition will increase the warehouse capacity and cargo handling capabilities for WFS in one of Europe’s busiest air cargo locations.

• Savage, a provider of supply chain infrastructure and solutions, is developing a new multi-commodity, rail-connected transload terminal to serve the Las Vegas market. The terminal will be located in Jean, Nevada, and served by the Union Pacific Railroad.

• Ecommerce brands can quickly expand into markets around the world with a new partnership between Bleckmann, a provider of end-to-end logistics solutions, and Global Bridge, a cross-border online B2B platform. In addition to end-to-end logistics services, the partnership offers a pay-as-you-sell solution.

PHANTOM INVENTORY:

Inventory that appears in software systems, but is not on store shelves or in the warehouse. This can happen as a result of theft, misplacement, weighing errors by consumers, or not tracking missing items. Boost inventory accuracy with regular checks as well as avoiding missteps such as scanning errors during goods receipt.

HOLIDAY CREEP:

No, not an unwelcome house guest. The holiday creep phenomenon—retailers stocking holiday merchandise earlier each year—is a response to consumer shopping trends. Only 6% of consumers wait until December to start holiday shopping, a project44 2024 peak season report finds, and many shoppers start in August. So, embrace holiday creep and don’t let shipping deadlines creep up on you.

AI HALLUCINATION:

A fabrication by an artificial intelligence system. For instance, a predictive model used for inventory management or logistics planning can generate inaccurate or false information about stock levels, delivery times, or other supply chain data, leading to misguided decisions. Guard against AI flights of fancy by vetting the data input as well as output. A human decision-maker should have the final say.

FICTITIOUS PICKUP:

A scheme run by cargo thieves disguising themselves as legitimate carriers. This allows them to show up before a scheduled pickup and drive off with entire truckloads of cargo. Train your staff to scrutinize contact and company information and confirm positive identification of drivers at the pickup point.

RETURN FRAUD:

When a bad-faith actor exploits a retailer’s return policy to get refunds or replacements. Some examples include returning stolen or counterfeit items, wardrobing or free renting (using an item for a short time and returning it for a full refund), falsifying a receipt, or returning a cheaper item using a receipt for a more expensive one. To outsmart fraudsters, flag suspicious requests and identify repeat offenders.

PORCH PIRATES:

Opportunistic thieves who swipe packages when they reach the last stop in their direct-to-consumer journey: a consumer’s porch or front door. Shrink the window of opportunity to pilfer packages by providing consumers with an accurate shipment ETA.

SOURCES: RELEX; project44; Travelers

• Honeylove selected Inspectorio to modernize its supply chain as its brand grows. The brand will now rely on Inspectorio’s advanced analytics, AI capabilities, and support network to strengthen and modernize its production chain.

• Nynas AB, a manufacturer and supplier of specialty oil products and services, is using Descartes’ cloud-based transportation management system to automate communications throughout the customer order lifecycle.

↑ Bioelements Group will supply its compostable, biobased, and biodegradable packaging to Multi X. The salmon farming company will replace all of the bags it uses for packaging fresh fillets with Bioelements’ bioplastic containers.

GOOD WORKS

↑ When students from Star Academy in Boston learned their pen pals in Kenya were affected by heavy flooding, they helped collect more than 20 boxes of essential items including clothing, footwear, canned food, hygiene products, and school supplies. DHL Express shipped all the supplies, covering the transportation costs. The aid will support at least 100 students in Kenya.

↑ As part of its participation in fundraising initiatives for Wreaths Across America, the National Motor Freight Traffic Association aims to virtually fill a tractor trailer with 5,000 sponsored veterans’ wreaths, which will be transported and placed by volunteers on gravestones at Arlington National Cemetery as part of National Wreaths Across America Day in December.

• ODW Logistics supported the recent Pelotonia Ride Weekend with inventory management and the transportation of bicycles for dedicated riders. Since 2009, Pelotonia has raised more than $295 million for innovative cancer research.

Milestone

↑ J.B. Hunt Transport Services surpassed 50,000 autonomous long-haul trucking miles, using Kodiak technology to haul Bridgestone passenger car tires between South Carolina and Dallas. Since the Bridgestone route kicked off in January 2024, the autonomous route has been driven with no accidents and achieved 100% on-time pickup and delivery.

• Loadsmart, whose logistics offerings span planning, optimization, and execution to gate, yard, and dock solutions, is celebrating its 10th anniversary.

• DeSpir Logistics, a specialized transportation logistics provider for high-value, high-risk and temperature-controlled cargo, is celebrating its 10th anniversary.

RECOGNITION

↑ Greg Swift, a longtime driver for Schneider National, achieved the milestone of driving five million miles without a preventable accident. Only two other drivers in Schneider’s nearly 90-year history reached this feat. Schneider recognized Swift’s achievement with a parade, a Sound the Horn celebration, and a $10,000 bonus.

↑ Clarios LLC, an advanced energy storage solutions provider, named Averitt its LTL Carrier of the Year, recognizing outstanding service and reliability in the logistics and transportation sector.

↑ The U.S. Great Lakes St. Lawrence Seaway Development Corporation presented the Port of Green Bay and the Illinois International Port District with the Robert J. Lewis Pacesetter Award, which recognizes the achievements of U.S. ports whose activities result in increasing international tonnage shipped through the St. Lawrence Seaway in comparison with the previous year.

• The Business Intelligence Group recognized Jarrett as a SAMMY Award winner in the area of technology use in marketing strategy.

UP THE CHAIN

← DSG appointed Dan Klepack as its chief supply chain officer. In this newly created role, Klepack will be responsible for driving supply chain optimization, enhancing efficiency, and delivering an exceptional customer experience across DSG’s extensive network.

M&A

↑ The Kenan Advantage Group (KAG) has acquired TransVac, a Abbeville, Louisiana-based company that specializes in the transportation of chemicals, water treatment products, and plastic additives.

• NTG Germany, a fully owned subsidiary of NTG Nordic Transport Group A/S, has signed an agreement to acquire 100% of the shares in Schmalz+Schön Holding GmbH, which specializes in road and logistics services. SSH operates from its headquarters in Stuttgart and 27 additional sites across Germany.

• Global port operator PSA Baltics N.V. signed an agreement to acquire an 85% majority stake in Loconi International S.A., one of Poland’s leading intermodal operators, from the publicly traded Polish freight forwarder ATC Cargo S.A. This strategic move aims to develop new rail products to support PSA’s European container hubs.

• C.H. Robinson Worldwide sold its European Surface Transportation business to sennder Technologies GmbH, a digital road freight forwarder in Europe.

• Groendyke Transport will acquire all the tank truck assets of Linden Bulk Transportation from Depot Connect International, a tank container services provider. The acquisition expands Groendyke’s footprint to Ohio, Pennsylvania, and New Jersey, and solidifies its presence in the Gulf.

• Carrier Global Corporation, on behalf of its Sensitech business, completed its acquisition of the Monitoring Solutions business of Berlinger & Co. AG, a Swiss family-owned company that specializes in solutions for monitoring temperature-sensitive goods in the pharmaceutical and life science, clinical trial, and global health segments.

↑ Symbotic Inc. acquired substantially all of the assets of Veo Robotics, which offers intelligent safeguarding for industrial robots. By integrating Veo’s FreeMove solution into its robotic warehouse automation system, Symbotic expects to increase productivity with more dynamic, flexible human-machine collaboration.

• Lufthansa Cargo now flies to two more Asian stations—Zhengzhou and Shenzhen—with its B777F long-haul fleet from its home hub in Frankfurt. The carrier added Shenzhen Boa’an International Airport to its freighter network and serves it twice a week; it also recently started operating freighters to Zhengzhou three days a week.

• Roadrunner expanded its less-than-truckload (LTL) service to Vancouver, Calgary, Edmonton, and the surrounding areas of Canada. The move follows the launch of LTL shipping into Toronto and Montreal earlier this year. The new LTL service into Western Canada is available for all its origin locations that ship freight to Seattle, Washington.

Technology

↑ The Nokia Autonomous Inventory Monitoring Service (AIMS) added inventory counting functionality, enabling warehouse operators to utilize autonomous drones to individually count items in racked inventory locations. The new capability complements current system features such as finding misplaced and lost inventory, as well as detecting empty bins. Nokia AIMS is delivered as a service, including drones, software, and a cloud-based user interface.

• PSA BDP, a supply chain solutions provider, launched a carbon dashboard data service to help shippers measure their freight carbon emissions. The new digital tool provides detailed data on emissions across transportation modes.

• B&H Worldwide, a provider of aerospace and aviation logistics solutions, introduced FirstTRAC Mobile, the mobile version of its proprietary inventory management platform. Customers can now monitor orders and manage inventory activities directly from a smartphone.

• Montway Auto Transport now offers real-time vehicle shipment tracking from pickup through delivery. In partnership with technology provider Ship.Cars, the new program gives customers 24/7 real-time visibility of their shipment status and access to inspection and delivery documents.

• Wiliot, an ambient Internet of Things (IoT) provider, unveiled WiliBot, a generative AI chatbot that enables natural-language conversations with ambient IoT-connected products. Wiliot is piloting WiliBot with enterprise customers, with a broader rollout scheduled for late 2024 and into 2025.

Products

← The new Appleton Areamaster Connect LED Floodlight from Emerson provides illumination in industrial environments. Equipped with a WirelessHART network sensor module, an integrated photocontrol, and automated controls, the floodlights let facility managers use light only when needed.

• The HIAB eX.HIPRO crane crane crane offers load-sensing hydraulics and load-handling advancements for improved energy efficiency and productivity. Hiab, part of Cargotec, developed the crane to be energy efficient and electric vehicle-compatible.

• Power Knock is a last-mile delivery solution for communicating a driver’s message through closed doors. The technology enables quick driver messages such as “knock knock – XYZ Logistics – package delivery” to penetrate through any type of door so consumers can retrieve their packages at the moment of delivery.

• The ModTek hard case and docking system from ProClip can now securely hold the Lenovo K11 tablet for logistics applications. ProClip’s custom-fit, rugged mounts and systems securely hold communication devices, GPS units, vehicle diagnostics, and more for use in warehouses, docks, and ports.

→ AMMEGA, a provider of belting solutions, released two solutions to increase equipment durability in warehousing, distribution, and manufacturing operations: the Ropanol EX synthetic belt for higher-speed conveying applications and the ultra-strong Titanium belt (below).

• Ergodyne’s new 8951 (vented) and 8952 (non-vented) hard shell bump caps provide lightweight protection from bumps, cuts, and scrapes for workers in industries like manufacturing, warehousing, and transportation, where crews often maneuver in tight spaces without head protection. Available in five colors, the caps are less cumbersome than hard hats.

Services

• Saia, a less-than-truckload carrier, opened six new terminals in August 2024: in Cheyenne, Wyoming; Casper, Wyoming; Billings, Montana; Rapid City, South Dakota; Watertown, South Dakota; and Butte, Montana.

• Chicago South Shore & South Bend Railroad—which provides rail freight service between Chicago and Indiana—accepted delivery of 100 new rail cars purpose-built for steel coil shipments. The 48-foot, 115-ton capacity, transverse-style cars can each hold up to five steel coils with no need for dunnage or blocking.

• DHL Express launched a Small Business PartnerSHIP Program to provide small and medium-sized enterprises in the United States with resources and support to tap into global markets. The program provides access to shipping promo codes and discounts, simplified shipping solutions, global trade services for guidance on international shipping regulations, and the GoGreen Plus program to reduce carbon emissions.

• Seaboard Marine ordered 1,000 Star Cool reefers from Maersk Container Industry (MCI), including a portion of units equipped with Star Cool CA (Controlled Atmosphere). The order includes MCI’s Sekstant reefer monitoring, which provides real-time monitoring and control of the reefer containers.

The WindRunner aircraft will offer a cargo volume approximately 12 times greater than that of a Boeing 747-400 and nine times that of the largest remaining Antonov aircraft, the An-124.

The aircraft can transport gigantic wind turbine blades to remote onshore locations, facilitating the creation of more wind farms.

WindRunner was designed to help build GigaWind—gigantic onshore wind turbines, which are significantly more powerful than traditional turbines. GigaWind could supply up to 40% of total U.S. electricity generation by 2050.

The 108-meter-long (more than 354 feet) aircraft is also being considered for additional applications, including military transport. It can carry up to six F-16 fighter jets or six Chinook helicopters with their rotors still attached.

WindRunner optimizes volume rather than weight, an approach that sets it apart from other heavy-lift transport aircraft. This means it can move a lot of mass (80 tons) as well as carry a 100-meter-plus-long blade (more than 328 feet long). Powered by four fuel-efficient engines, WindRunner can reach cruise speeds of up to Mach 0.6 (around 460 miles/hour).

Supply Chain VC Update

Could the relative calm in supply chains in 2023 and 2024 versus the major disruptions in 2021 and 2022 be dampening investor enthusiasm for supply chain-related deals? A Crunchbase analysis indicates as much.

Crunchbase data shows total venture funding to supply chain startups has yet to hit $2 billion this year—a pace that, if continued, will result in a 79% drop from the all-time high set in 2021 of $14.7 billion. At its current rate, the total is likely to fall short of the $3.3 billion raised in 2023.

There are a few exceptions. Logistics giant Flexport—which less than 3 years ago hit a peak valuation of $8 billion—raised $260 million from partner Shopify in January. And Altana AI, a company that “empowers governments, logistics providers, and enterprises with an intelligent, dynamic map of the global supply chain” nabbed $200 million in Series C funding in July.

Otherwise, deal flow in the supply chain sector has declined dramatically, with Crunchbase predicting only slightly more than 300 deals will close this year—a 55% drop from 2021’s 711 and a decrease of more than nearly 150 rounds from last year.

Crunchbase notes that venture funding has been down in nearly every sector since 2021, but the decrease in supply chain-related funding has been especially sharp.

Survey Says: It’s Risk Management Over Cost

A shift is afoot when it comes to selecting and locating global supply chain networks. Instead of focusing solely on lowest-cost strategies, leaders are emphasizing building resilience, agility, and flexibility into their supply chains, shows new research from Gartner.

The data shows that these risk management considerations have displaced cost-efficiency as the top drivers of network changes. Here are some key takeaways from the global survey:

• 73% of companies have added or removed production locations from their supply chain networks in the past two years.
• Of those that have made changes in the past two years, 90% report that they have met or exceeded the expected benefits of the change.
• Despite the early success of these network shifts, 96% of respondents cite challenges with operating in new locations; operational and logistics costs are cited most often.
• A shortage of factory workers was a more common challenge in North America compared to all other regions.

Supply Chain Sustainability Trends

Q&A with Jeff Pepperworth, President & CEO, iGPS Logistics

Sustainability has been an industry buzzword for a while now. What are some new/current trends you are seeing?

Even though sustainability is not a new initiative, we see the adoption of greener supply chain practices on a much larger scale. Previously, bigger-name brands were the main players advocating for the implementation of more eco-friendly practices. But because big retailers have been pushing their suppliers to adopt sustainability programs, we now see a ripple effect, and more secondary and tertiary players are putting environmental responsibility at the forefront.

Are there any buzzy sustainability efforts companies should be more aware of, such as new developments with AI and other tech?

While route-planning technology has been around for a while, it is certainly becoming more advanced, and we have more electronic “eyes” on our roadways than ever to help shippers identify ways to optimize. AI is also creating dimensional references to build packaging that is specific to items being shipped—cutting down on dunnage and wasted space—and ensuring that boxes on pallets are cubed more efficiently, so more products can be transported at once. This all adds up to reduced greenhouse gas emissions in the atmosphere.

The market for green bonds and other sustainability bonds hit a growth milestone last year. What can you tell us about these bonds and what they mean for supply chain and environmental sustainability?

When you look at the investment marketplace, it’s clear that investors— including institutional investors, angel investors, and VC firms—are increasingly looking to include sustainable investment vehicles as part of their portfolios. Not all consumers are investors, but all investors are consumers. They are looking to invest in sustainable brands in the same way that consumers are looking to do business with sustainable brands. Here at iGPS, we have multiple participants in our own green bonds, and we expect that the pallet industry will continue to move in this direction.

How can the supply chain sector as a whole help to get sustainability moving forward in a stronger direction?

It comes down to unification. In what ways can we unify the supply chain sector around common sustainability goals? For example, many years ago the grocery industry standardized the pallet. It was recognized that a consistent asset of specific dimensions was necessary to ensure that all forklifts and warehouse racking could handle pallets.

So, what else can we unify? Can we make water packaging or egg cartons consistent so that these products have the same density and can be transported more efficiently, without impacting the spirit of competition? If we look at the supply chain holistically and discover new ways to adopt common standards, we can move toward an even greener and healthier future.

Freight & Capacity Forecast

With less than half of 2024 remaining, supply chain professionals are looking back at what has already transpired—and what issues are left to contend with before the year draws to a close. Thus far, the supply chain has faced several significant challenges with lasting global implications, including the effects of ongoing geopolitical tensions and the threat of labor strikes in the United States, Canada, and Europe.

According to FTI Consulting’s Q2 2024 Transportation & Logistics Industry Update, the transportation and logistics market saw a surge in ocean freight prices and growing demand for air freight due to longer transit times caused by Red Sea shipping disruptions and congestion in Asian ports. However, an increase in capacity and the opening of new sea routes are expected to reduce freight prices in 2025 despite current T&L pricing pressures.

Here’s a roundup of the report’s findings from Q2 2024 and some upcoming predictions:

Global Freight Market Outlook

The global freight market shows steady growth in volume, reflected by an increase in the number of M&A deals and rising demand for air freight forwarding services.

– Increased volumes coupled with disruptions in major shipping routes have led to significant increases in demand for air and ocean freight in 2Q24.
– Hostile developments in the Red Sea have presented manifold challenges for global trade, ranging from extended transit durations and capacity limitations to elevated expenses and increased uncertainty.

– General cargo has shown faster growth than specialized products in 2024, due to increasing demand from ecommerce and disruptions in the container shipping sector.
– Air cargo is set for a strong second half, driven by sustained ecommerce growth, increasing ocean shipping costs, and disruptions in the Red Sea.

– Entering 2024, shippers expected a buyer’s market for ocean freight, with carriers adding capacity in 2023 and planning to do so again. Instead, global geopolitical events and high demand across trade lanes in 2Q24 have reduced available capacity and increased shipping rates.
– Due to the necessity of rerouting via the Cape of Good Hope, new capacity added in 2023 and early 2024 hasn’t been sufficient to meet growing demand.

Source: FTI Consulting

IRA/CHIPS Logistics Projects Stalled

The bipartisan Inflation Reduction Act (IRA) and CHIPS and Science Act, both passed in 2022, generated buzz in the supply chain sector for a predicted resurgence of manufacturing activity that would yield increased demand for logistics services and investments. However, two years later, some enthusiasm is waning as nearly half of the manufacturing projects envisioned under IRA and CHIPS have stalled, according to a Financial Times investigation. The slowdown has created uncertainty around the demand for logistics space.

Forty percent of the largest U.S. manufacturing investments announced during the first year of President Biden’s industrial and climate policies have been delayed or paused, the Times found. A total of $84 billion of those projects have been delayed for at least two months and some have been paused indefinitely. Deteriorating market conditions, slowing demand, and lack of policy certainty were cited as reasons for the delays.

Across the nation, large projects on hold include Enel’s $1 billion solar panel factory in Oklahoma, LG Energy Solution’s $2.3 billion battery storage facility in Arizona, and a $1.3 billion lithium-ion refinery in South Carolina, according to the report.

The tax credits and grants stretch into 2032, but inflation, labor shortages, and supply chain challenges are all contributing to delays in achieving project milestones, which are key to unlocking funding.

All Eyes on Mexico

Cross-border commerce and nearshoring have been a growing focus for many global shippers over the past few years—and events resulting from Mexico’s historic election in June 2024 seem to indicate that trend will continue.

Listen to our Nearshoring podcast with Cushman & Wakefield

That’s the consensus from Redwood Mexico’s Q3 Cross-Border Index. The election, which saw the country choose its first female president amid unprecedented levels of violence, has led to notable shifts that impact the U.S.-Mexico trade landscape, including the peso’s devaluation, shifting market dynamics, and an increased call for security.

The report highlights these shifting trends:

• Currency complexity: The peso’s devaluation has provided relief for Mexican truckers and boosted export competitiveness, but also introduces new challenges for foreign direct investment.
• Trade dominance: The competitiveness of Mexican commerce is on display as trade volumes through Laredo, Texas have been consistently rising, surpassing traditionally dominant international ports. For 15 of the past 16 months, Laredo has seen higher throughput than the Port of LA/Long Beach, which once processed nearly 50% of all foreign imports.
• Labor: Spurred by rising labor costs in Asia and ongoing trade disputes, Mexico continues to grow as a manufacturing and commerce hub, both with the United States and globally. Imports from Asia into Mexico have risen, pointing to the growth in Mexican ports as a way to work around U.S. tariffs on Asian goods.
• Safety: The new administration under President-elect Claudia Sheinbaum vows to improve security on Mexican highways, responding to long-standing concerns. This includes increased law enforcement presence, which should have positive impacts on future trade volumes and safety.

Are You Up to Speed with the Latest Regulations?

The U.S. supply chain, transportation, and logistics sector is continuously evolving, influenced by new technologies, global trade dynamics, and changing consumer expectations. To keep pace, U.S. government agencies regularly update and introduce regulations that impact how businesses operate in these critical areas.

Here is an overview of some of the most significant new and updated regs shippers need to stay abreast of.

Federal Motor Carrier Safety Administration (FMCSA)

FMCSA, the key agency responsible for regulating commercial motor vehicle safety in the United States, announced four recent updates to address the evolving needs of the trucking industry.

1. Automatic Emergency Braking (AEB) Systems Rule: Last year, FMCSA, in collaboration with the National Highway Traffic Safety Administration (NHTSA), proposed a rule that would require automatic emergency braking systems in U.S. light vehicles and trucks. The rule was finalized in May 2024 and goes into effect in September 2029.
2. Expansion of Drug and Alcohol Clearinghouse Requirements: As of 2023, all state driver licensing agencies are required to use the Clearinghouse to check whether a driver is prohibited from operating a commercial motor vehicle due to drug or alcohol violations before issuing, renewing, or upgrading a commercial driver’s license.
3. Electronic CDL Information Exchange: As of August 2024, states are required to implement an all-electronic system for exchanging commercial driver’s license (CDL) information, including convictions and disqualifications, to streamline and improve the accuracy of CDL record-keeping.
4. Hour of Service (HOS) Updates for Agricultural and Livestock Haulers: FMCSA updated the HOS regulations in 2023 specifically for agricultural and livestock haulers to provide more flexibility for haulers during planting and harvesting seasons while maintaining safety standards.

Environmental Protection Agency (EPA)

The EPA has introduced several new regulations aimed at reducing environmental impacts associated with transportation and logistics, particularly concerning emissions and sustainability. Here are two important developments:

1. Heavy-Duty Engine and Vehicle Standards: The EPA recently finalized new emissions standards for heavy-duty vehicles and engines, starting with model year 2027. These standards are designed to significantly reduce nitrogen oxide emissions, which contribute to smog and respiratory issues. The rules also set stricter greenhouse gas emission standards for medium and heavy-duty trucks, promoting the adoption of cleaner technologies.
2. Advanced Clean Trucks (ACT) Rule: Several states, including California, adopted the ACT rule, which required manufacturers to sell an increasing percentage of zero-emission trucks annually, starting in 2024. The EPA is expected to introduce similar nationwide regulations to support the transition to electric and hydrogen-powered trucks.

Food and Drug Administration (FDA)

The FDA continues to update its regulations to ensure the safety and security of the food and pharmaceutical supply chains. Recent changes include the following:

1. Food Safety Modernization Act (FSMA) Final Rule on Food Traceability: In response to ongoing concerns about foodborne illnesses, the FDA issued the final rule on food traceability in 2023. The rule establishes additional recordkeeping requirements for certain foods, facilitating faster identification and removal of potentially contaminated products from the market.
2. Drug Supply Chain Security Act (DSCSA): The FDA has ramped up enforcement of the DSCSA, which aims to enhance the security of the pharmaceutical supply chain. Starting this year, all prescription drugs in the United States are now required to be traceable at the package level throughout the supply chain. This will help prevent counterfeit drugs and improve the ability to respond to recalls and quality issues.

Customs and Border Protection (CBP)

CBP continues to play a crucial role in regulating international trade, with recent updates aimed at elevating security and efficiency in global supply chains.

1. Uyghur Forced Labor Prevention Act Expansion: The UFLPA focuses on preventing goods produced with forced labor in the Xinjiang Uyghur Autonomous Region (XUAR) of China from entering the U.S. market. Earlier this year, CBP intensified its enforcement efforts under UFLPA, expanding the UFLPA Entity List, which identifies entities involved in forced labor practices in XUAR, by adding 26 new entities believed to be sourcing materials from the region.
2. Modernization of the Automated Commercial Environment (ACE): CBP has made significant updates to the ACE system, which facilitates electronic processing of imports and exports. The updates include enhanced functionality for managing trade compliance and security, such as better tools for filing and processing entries, and new features for monitoring trade trends and risks.

Occupational Safety and Health Administration (OSHA)

OSHA has launched new initiatives focusing on safety in warehouses and distribution centers. These include increased inspections and enforcement related to hazards such as ergonomic injuries, forklift safety, and heat exposure, reflecting the growing importance of warehousing in the e-commerce-driven supply chain. The agency has also updated training requirements and enforcement strategies to reduce fall-related injuries and fatalities.

Ryan Sweet, chief U.S. economist at Oxford Economics, noted, “The port strike ended fairly quickly, removing any significant downside risk to the economy this quarter.” The deal, announced late Thursday, includes a wage increase of approximately 62% over six years, boosting average wages from $39 to around $63 an hour.

Economic Impact and Recovery Timeline

Despite the swift resolution, clearing the backlog of cargo will take time. Analysts at JP Morgan estimated that the strike cost the U.S. economy around $5 billion per day, putting considerable pressure on supply chains and retail operations.

Retailers had taken proactive measures by stocking up for the holiday shopping season, and many expect that the short duration of the strike will minimize any impact on product availability. Nonetheless, the disruptions have affected the prices of goods, including coffee, which saw price increases due to port closures.

Backlog and Port Operations

According to Everstream Analytics, each day of strike requires approximately one week to clear the resulting backlog. This means that the recent three-day work stoppage could lead to at least three weeks of recovery time to return to normal operations at U.S. ports.

As operations resumed, the number of container ships waiting outside Gulf and East Coast ports decreased to 54, down from a peak of 59. This decline is largely attributed to ships moving into ports like Savannah and Charleston in anticipation of reopening. However, the situation remains fluid; the queue outside the Port of New York-Newark has actually increased, with 18 ships still waiting in the anchorage area.

Looking Ahead

While the tentative wage deal has lifted immediate concerns, it extends the current contract only until January 15, leaving open discussions about critical issues, such as the increasing use of automation at ports, which workers fear could lead to job losses.

The National Retail Federation issued a statement applauding the end of the strike, emphasizing the importance of reaching a final agreement swiftly: “The decision to end the current strike and allow the East and Gulf Coast ports to reopen is good news for the nation’s economy. The sooner they reach a (final) deal, the better for all American families.”

As the industry works to clear the backlog and stabilize operations, stakeholders will be closely monitoring ongoing discussions and their potential impacts on future labor relations and port operations.

Vessel Congestion Escalates

As of October 2, more than 45 container vessels are waiting in designated anchorage areas near U.S. ports, according to data from Everstream Analytics. This number has surged from just three vessels on September 29 and 21 on September 30. The combined cargo capacity of these ships now totals over 300,000 TEUs (twenty-foot equivalent units).

Everstream data also shows most vessels are concentrated outside major ports, with 13 waiting at Savannah, eight at New York, and eight at Norfolk. Notably, there have been minimal diversions to other ports in the Bahamas, Mexico, or the West Coast, likely due to ocean carriers’ hopes for a swift resolution of the strike. However, if the strike continues beyond a week without resolution, diversions may become a necessity.

Economic Impact and Supply Chain Disruptions

The implications of this strike are substantial, with estimates suggesting that it could cost the U.S. economy as much as $5 billion a day. Nearly 60% of U.S. imports and 10% of all global container trade move through these ports, highlighting the critical nature of this disruption.

Joseph Firrincieli, Sales Manager at OEC Group New York, a leading NVOCC freight forwarder, notes, “One week of a strike at ports results in approximately one month of congestion, backlogs, and delays.” He warns that as disruptions worsen, consumers can expect emptier store shelves and rising prices.

Affected Goods and Timelines

The strike is poised to impact a wide range of products, particularly those imported from Europe, Central America, and South America. Specific commodity figures indicate that 78% of dates, figs, and pineapples come through East and Gulf Coast ports, along with 75% of bananas and 81% of plywood and stone materials. For perishable items such as agricultural goods and pharmaceuticals, disruptions could occur within 1-2 weeks, while general consumer goods might see delays in 3-4 weeks.

A Broader Perspective on Trade

Despite the significant impact on various industries, Ben Ruddell, a professor in the School of Informatics, Computing, and Cyber Systems at Northern Arizona University highlights that the majority of the U.S. economy remains resilient. “The overwhelming majority of the U.S. economy is domestic or reliant on trade with Canadian and Mexican suppliers. So, while this strike is disruptive to some U.S. manufacturers and retailers, it is not an emergency in the short term,” he says.

Price Increases and Container Charges

In a controversial development, when announcing the strike, the International Longshoremen’s Association (ILA) reported that ocean container carriers are now charging $30,000 per container, a dramatic increase from $6,000 just a few weeks prior. However, data from Xeneta, an ocean and air freight rate benchmarking and market analytics platform, suggests this claim may be misleading. As of October 1, average spot rates for shipping containers from the Far East to the U.S. East Coast were around $7,000, with rates from Northern Europe having increased by 50% since late August, still only reaching $2,800 per container.

What’s Next?

As the port strike continues with uncertainty surrounding its duration, the potential for increased congestion and economic fallout looms large. Businesses and consumers alike are bracing for the impacts in the coming weeks while stakeholders are closely monitoring developments as they unfold.

Immediate Disruptions Across Industries

Anne Reinke, President & CEO of the Transportation Intermediaries Association, emphasizes the urgency of the situation: “With the longshoremen’s strike now in effect, the disruption to our supply chain is both immediate and far-reaching, impacting industries from retail to manufacturing at a crucial time—just as the holiday season begins. Essential goods are at risk of delays and price increases, which will severely affect consumers nationwide. With 43% of U.S. imports moving through these ports, the economic consequences will deepen the longer the strike continues.”

This disruption is not just a logistical headache; it has real implications for consumers and businesses alike. The impending delays and potential price hikes could alter shopping behaviors during one of the busiest times of the year.

The Complexity of Supply Chains

Ilya Preston, CEO of PAXAFE, highlights the catastrophic potential of such a disruption, stating, “When a major disruption like this labor stoppage takes place, the impact to supply chains can be catastrophic. As supply chains continue to get more complex and less predictable, the ability to make informed, real-time decisions becomes even more critical.”

Preston acknowledges the dual-edged nature of modern data availability: “The good news is that modern companies generate more data than ever across their supply chains, and data is the key to making those informed decisions. But the bad news is that distilling the raw data into actionable insights in real time is, for most companies, beyond their grasp.”

Strategic Responses from Shippers

According to Matt Muenster, Chief Economist at Breakthrough, businesses are already adopting strategies reminiscent of those used during previous labor disputes. “We’re seeing shippers responding to this port strike with similar methods and tools deployed during the Canadian railroad labor negotiations earlier this year. Many businesses are frontloading freight to achieve safety stock or excess inventories that could be used during disruption. Eventually, many businesses removed their freight from the network and pursued alternate routes and transportation modes to get their products to market.”

This proactive approach is essential, but it also highlights the ongoing challenge of navigating an increasingly unpredictable supply chain landscape.

Embracing the New Normal

Ross Meyercord, CEO of Propel Software, reflects on the broader context of supply chain interruptions. “We should stop being surprised by supply chain interruptions because this is the new normal. Whatever the cause, disruptions should be expected, and businesses need to invest in technology and talent that allows them to build organizational collaboration. This enables them to leverage real-time data and ‘what if’ scenarios that allow for quick pivots.”

His perspective underscores the necessity for companies to adapt and innovate continuously in response to ongoing challenges.

Potential Economic Fallout

Mike DeAngelis, Senior Director of International Solutions at FourKites, warns of the economic implications if the strike persists. “We could see a significant drop in U.S. agricultural exports, potentially leading to increased food prices. For the auto industry, the strike could exacerbate ongoing supply chain issues, potentially leading to production slowdowns or even temporary plant closures.”

He adds that “the strike could also lead to inventory shortages, potentially impacting holiday shopping seasons and year-end manufacturing targets.” The political landscape may also play a role, as DeAngelis notes, “Despite early indications that the current administration is not looking to immediately get involved, the economic stakes and proximity to the election could eventually force political intervention.”

Milestone

• Team Worldwide is celebrating its 45-year anniversary as a global full-scale logistics provider of innovative solutions and personalized shipping experiences across multiple industries.

UP THE CHAIN

← Michele Grubbs, vice president of the Pacific Merchant Shipping Association (PMSA), was elected to the board of directors of the Containerization & Intermodal Institute, a not-for-profit organization that supports and promotes the business of international trade and the intermodal transportation community. She has been with PMSA since 2004, overseeing its Long Beach, California office.

Green Seeds

↑ As part of its sustainability and climate protection strategy, logistics service provider Dachser is cooperating with Renault Trucks on the gradual decarbonization of road freight transportation. Dachser is expanding its fleet by 15 Renault Trucks all-electric vehicles, which complete local and long-distance transport tours at seven Dachser locations in Germany every weekday.

SEALED DEALS

↑ Walgreens Boots Alliance Global Sourcing has selected TradeBeyond’s multi-enterprise platform to optimize and standardize operations across its retail brands and to leverage more innovative and agile sourcing practices.

← Snack food manufacturer and distributor Snak-King partnered with Redwood Logistics to mitigate supply chain disruption. The 3PL introduced a comprehensive suite of services that enables Snak-King to streamline logistics operations, secure more favorable carrier rates, and significantly reduce risk exposure.

• Blain’s Farm & Fleet partnered with Roadie, a UPS company and crowdsourced delivery platform, to offer same-day delivery for its products. Blain’s shoppers who place orders by 2 p.m. can now choose same-day delivery to their doorstep for more than 60,000 products, including select oversized items, qualifying for this service.

← Outdoor retailer Orvis expanded its relationship with FourKites and now uses FourKites’ Order Insights to improve on-time delivery, inventory management, and customer satisfaction.

• Apollo Tires (US) Inc. has implemented Corcentric’s Managed Accounts Receivable services to help focus on strategic initiatives that will contribute to business growth in the United States.

↑ Harry Rosen, Canada’s premier luxury menswear retailer, renewed its agreement with Rhenus Logistics Warehousing Solutions. Under the renewed contract, Rhenus provides comprehensive warehousing and distribution solutions to support Harry Rosen’s extensive network of retail stores across Canada.

RECOGNITION

↑ Landstar System presented its BCO Lifetime Achievement Award to Duane Vorst, a Landstar Three Million Mile Safe Driver and Roadstar recipient. To date, Vorst has driven more than 3.23 million miles while leased on with a Landstar company without a preventable accident. He also has earned two Landstar Star of Quality awards, and a National Safety Council Driver Honor.

• Schneider National was selected as the PepsiCo Asset Sustainability Carrier of the Year for the third consecutive year. Schneider works closely with PepsiCo to help achieve significant milestones in sustainable transportation.

• Anacostia Rail Holdings’ Pacific Harbor Line was recognized for safety and industry leadership with the Presidents Award for safety in 2023 from the American Short Line and Regional Railroad Association.

↑ For the sixth straight year, The Disability Equality Index named CSX Corp. one of America’s best places to work by earning a top score of 100. The Index measures key performance indicators across culture and leadership, enterprise-wide access, employment practices, community engagement, and supplier diversity.

• Target Corporation honored Capital Logistics with the Best Overall Provider for First Mile Food & Beverage award, for the second time. The award recognizes exceptional performance in managing thousands of shipments for Target over the past year.

↑ Ivca Kaiserova, senior manager EMEA security and loss prevention at Amazon, is the 2024 winner of the Young Supply Chain Resilience Professional of the Year Award, co-sponsored by the Europe, Middle East & Africa region of the Transported Asset Protection Association and TT Club.

M&A

↑ As a part of its strategic plan to continue building an established and strong presence in Saudi Arabia, CEVA Logistics signed a joint venture agreement with Almajdouie Logistics, a leading logistics provider in the Kingdom of Saudi Arabia (KSA). The signed agreement is pending approval by the necessary regulatory authorities.

• Accenture will acquire Camelot Management Consultants, an international SAP-focused management and technology consulting firm from Germany, with specific strengths in supply chain, data and analytics.

• Aptean acquired Principal Logistics Technologies, a provider of purpose-built warehouse management and supply chain optimization software solutions. With the acquisition, Aptean adds new capabilities to its warehouse management and supply chain management offerings for wholesalers, importers, manufacturers, retailers, and 3PLs.

• Advantive acquired Pepperi, an omnichannel B2B sales platform for wholesalers and distributors.

In Memoriam

← Dr. Spyros M Polemis, the former chairman of INTERCARGO, passed away in July 2024. An influential representative of the global shipping community in Athens, London, and New York, Polemis was instrumental in consolidating INTERCARGO’s presence in the shipping industry during the 1980s and 1990s.