Most cargo thefts occur near:

• Warehouses and distribution centers
• Unsecured parking lots
• Company truck yards and premises

Sources: Overhaul and CargoNet

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Technology

• Identiv’s ID-Pixels tags will now be powered wirelessly by Energous’ PowerBridge technology, enabling accurate sensor measurements throughout the supply chain, including in cold chain logistics. The joint solution aims to deliver more reliable power than disposable batteries and charging cables to Internet of Things sensors deployed across the logistics industry.

• HERE Technologies launched HERE Advanced Traffic Patterns to help improve the planning, routing, and delivery of goods and packages. The solution leverages trillions of data points from onboard sensors, telematics systems, and mobile devices to calculate traffic speed information for commercial vehicles, incorporating variables such as time, day, and vehicle type to help companies improve planning capabilities with predictive ETA windows.

↑ RightHand Robotics introduced the RightPick 4 System, an autonomous robotic piece-picking solution for warehouse order fulfillment, which offers improved picking and grasping techniques. The solution has enhanced AI-based software algorithms, upgraded sensors, and hardware that enables a larger picking range of item SKUs, item handling capacity, and increased system autonomy.

Products

← Smart Vision Lights’ new RHI200-DO Lightgistics light with hidden strobe technology features 64 LEDs in a ring light for uniform lighting at long working distances. The technology helps maximize the abilities of machine vision systems. The light addresses the challenges of high-speed barcode reading and optical character recognition on highly reflective plastic wraps and shipping bags.

• ORBIS, in collaboration with partner Seedbox Solution, unveiled the GEN250 seed box, a container for storing, transporting, and discharging bulk seed. The reusable containers are collapsible and stackable, minimizing storage needs and increasing transportation efficiency.

• The new nestable picking pallet, Retail US5, from Cabka is 100% recyclable and is constructed from recycled plastic. Designed for U.S. plastic pallet solutions, the Retail US5 features a lightweight construction and a low nesting height to maximize space utilization.

Services

• cargo-partner is constructing its third warehouse at its iLogistics Center in Dunajská Streda, Slovakia. The expansion will nearly double storage capacity from the current 27,600 to 50,000 pallet spaces. The new Class A building was designed to optimize energy efficiency and includes 22 loading ramps and two drive-in gates for loading and unloading.

• Delta Cargo launched an ecommerce solution called DeliverDirect in collaboration with SmartKargo. DeliverDirect is a door-to-door delivery service for the U.S. market, offering ecommerce retailers a customizable, direct-to-consumer shipping solution that provides alert management, tracking and reporting, and access to Delta’s domestic network.

↑ Southeastern Freight Lines opened an expanded service center in Charlotte, North Carolina. The new facility consists of 230 dock doors and houses its pickup and delivery operation as well as its breakbulk operation on an interim basis while Southeastern works to redevelop its second facility in Charlotte.

• CJ Logistics America is opening a cold storage warehouse in Gainesville, Georgia, later this year, located adjacent to the future Northeast Georgia Inland Port, providing a direct link to the Port of Savannah. The 270,000-square-foot building, developed by RL Cold, offers a blast freezing system that brings products to desired temperatures in 24 hours or less.

• AIT Worldwide Logistics opened a LEED-certified warehouse in Palatine, Illinois, near Chicago. Designed to handle a variety of shipping needs, the newly constructed, 370,000-square-foot building is equipped with 58 dock doors and provides full-service warehousing, including pick and pack services, short- and long-term storage, and multiple temperature-controlled areas for food logistics and life sciences commodities.

Transportation

↑ China Cargo Airlines launched three Boeing 777 freighter flights a week to Miami from Shanghai Pudong International Airport. The airlines awarded Worldwide Flight Services a three-year contract to handle its cargo, including ecommerce traffic, perishables, seafood, and general cargo.

• Ocean Network Express (ONE) is set to launch a container ship service between Savannah, Georgia, and West India in May 2024. The new offering gives the Georgia Ports Authority 10 services via the Suez Canal, with nine calling on the Indian subcontinent. ONE’s new West India North America service offers a weekly route linking Hazira, Nhava Sheva, and Mundra to Savannah.

• CMA CGM’s first liquefied natural gas-powered container ship now serves West African ports. The 15,000-TEU CMA CGM SCANDOLA sails on CMA CGM’s West Africa Express service connecting West Africa (Tema, Lekki, Abidjan, and Pointe-Noire) directly to China, Southeast Asia, and India.

• ZIM introduced ZIM Pacific Northwest Xpress (ZPX), an independent service that connects Asia, Canada, and the United States via Vancouver Gateway. ZPX commenced operations on January 21 from Cai Mep, Vietnam, with the following rotation: Yantian, Kaohsiung, Xiamen, Ningbo, Shanghai, Vancouver (Deltaport), Pusan, and back to Cai Mep. Service features include rail connectivity covering major Canada and U.S. inland IPI destinations, including East and Central Canada, U.S. Midwest, and Ohio Valley.

• Roadrunner expanded its less-than-truckload services, launching offerings to Canada and Portland as well as adding 135 lanes to its network. Roadrunner’s new lanes include: Dallas and Houston, Texas, to Denver; Nashville and Memphis, Tennessee, to Denver; the Northeastern United States to and from Nashville, Indianapolis, Louisville, and Cincinnati; cities in Florida to Nashville and Memphis; and service to Alaska and Hawaii.

↑ Maersk A/S, an entity under A.P. Moller – Maersk (Maersk), and Hapag-Lloyd signed an agreement for a long-term operational collaboration called Gemini Cooperation, which will start in February 2025, to provide shippers with ocean network reliability and accelerate decarbonization initiatives. The new cooperation includes a fleet pool of around 290 vessels with a combined capacity of 3.4 million TEUs; Maersk will deploy 60% and Hapag-Lloyd 40%.

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Make Room for Twins

The popularity of supply chain digital twins is rising. These virtual replicas or simulations of a physical supply chain—created using real-time data and advanced technologies such as the Internet of Things, artificial intelligence, and machine learning—enable organizations to better understand, analyze, predict, and optimize their supply chain processes.

How great is the demand? According to Market.us, the worldwide supply chain digital twin market is projected to reach a value of $8.7 billion by 2033—a compound annual growth rate of 12% during the forecast period from 2024 to 2033.

The increasing complexity of supply chains, the need for greater visibility and control, and the rising demand for predictive analytics in supply chain management is driving the growth in this market, according to the report.

Top Trade Disruptors

While the pandemic is firmly in our rearview mirror, a new batch of disruptions have popped up to challenge the supply chain. The Q1/Q2 2024 Retail Sourcing Report from TradeBeyond outlines the top trade disruptors that are likely to throw a wrench into global sourcing plans and buying decisions in 2024. Here are the key highlights:

• Rate fluctuation: Extreme shipping rate volatility with attacks in the Red Sea have sent shipping rates surging since December, more than doubling the rates on some European lanes and creating substantially longer transit times.
• Looming uncertainty: The shipping crisis has made supply chain disruptions more likely, elevating fears of a return to the bottlenecks, component shortages, and product delays that supply chains endured in recent years.
• Tech spend coming: The pace of digitalization continues to accelerate in retail supply chains, with more than 90% of supply chain managers saying their companies are actively engaged in digital transformation. And 46% of supply chain executives anticipate that AI, cognitive computing, and cloud applications will be their greatest areas of investment in digital operations over the next three years.
• Manufacturing slump: The most recent GEP Global Supply Chain Volatility Index warned of continued downturn in global manufacturing through at least the first quarter of 2024 amid softened demand, especially in Europe.

Mega Money for Intermodal Projects

In a win for intermodal infrastructure, the U.S. Department of Transportation (USDOT) recently selected 37 projects to receive funding through the Bipartisan Infrastructure Law’s Mega and Infrastructure for Rebuilding America (INFRA) grant programs. Several of the projects will boost intermodal infrastructure across the country.

The Mega Program, also known as the National Infrastructure Project Assistance program, funds large, complex projects that are difficult to fund by other means and likely to generate national or regional economic, mobility, or safety benefits. Congress established the program in 2021 through the Bipartisan Infrastructure Law and dedicated $5 billion to the program over five years. The most recent awards were the second round of funding, worth roughly $2 billion.

INFRA is a competitive grant program that provides funding for multimodal freight and highway projects of national or regional significance to improve the safety, efficiency, and reliability of freight movement in and across rural and urban areas. The most recent annual program funding amount is $3.1 billion and the annual award amount is $1.5 billion.

Intermodal projects receiving grants in this round of Mega and INFRA funding include:

• America’s Green Gateway: Pier B Rail Program Buildout, Long Beach, Calif. The project will complete the Pier B On-Dock Rail support facility program by significantly enhancing container-on-rail service to and from the ports of Long Beach and Los Angeles.
• St. Lucie River Railroad Bridge Replacement Project, City of Stuart, Fla. The project will replace the existing 100-year-old St. Lucie River Railroad Bridge with a new double-track structure. By diverting freight traffic to rail, the project will increase safety for marine traffic, decrease the potential for blocked grade crossings and vehicle collisions, and shift single-occupancy vehicles to passenger rail travel.
• East River Berth Replacement Project, Garden City, Ga. The project will replace a port berth and two vessel berths at Georgia Ports Authority’s Port of Brunswick’s East River Terminal and will also reduce greenhouse gas emissions by supporting a modal shift from truck to rail for transporting commodities to the Port of Brunswick.
• Louisiana International Terminal Project, St. Bernard Parish, La. The project will construct a new container terminal on the Gulf Coast for the Port of New Orleans that is not air-draft restricted and can accommodate larger vessels.

Walmart Wings It

The nation’s largest retailer will soon boast the retail sector’s largest drone delivery footprint. Walmart recently unveiled plans to dramatically expand its drone capabilities across the Dallas-Fort Worth metroplex, adding more than 30 municipalities and towns in North Texas.

The expansion will enable the company to reach up to 1.8 million additional households—the most ever by a retailer offering drone delivery in a single market—and cover as much as 75% of the metro area.

Individuals who live within 10 miles of participating stores will be able to order thousands of items, ranging from snacks and beverages to baby wipes and over-the-counter medications, for delivery by drone in 30 minutes or less and potentially in as fast as 10 minutes.

The retail giant is partnering with drone delivery companies Wing and Zipline for the service; both are authorized by the FAA to fly drones beyond the line of sight of operators.

Walmart says it has safely completed more than 20,000 drone deliveries over some two years of test flights.

AI in Transportation: All Talk, No Action?

While artificial intelligence (AI) is one of the most buzzed-about topics within the supply chain sector, AI adoption is lacking severely in the U.S. transportation and logistics (T&L) market, according to new data from HERE Technologies and Amazon Web Services. In a multi-country survey of transportation and logistics professionals in the United States, Germany, and the United Kingdom, HERE found a significant gap in the adoption of basic data analytics.

The survey results underscore the untapped potential of AI—from data analytics supported by machine learning to optimized fleet routing, predictive maintenance, and streamlined processes for strategic decision-making.

Here are the report’s key takeaways:

• Only 50% of T&L professionals across the three countries say that their organizations utilize basic data analytics in their operations. At the same time, 25% of all respondents state their organization leverages AI capabilities.
• Cost (23%) is the leading barrier to tech implementation.
• Potential disruption to existing services (12%) and lack of internal expertise (11%) were the second and third most cited barriers to technology implementation.

Somewhat conversely, survey participants were optimistic about their progress toward supply chain visibility, with 86% reporting notable progress toward supply chain visibility and 18% considering their progress significant. Among modes, 50% indicate truck freight has the highest visibility, while 45% cite ocean freight as the least visible mode of transportation (see chart).

Manufacturers: .ru Prepped Against Cyber Attacks?

The manufacturing sector faced an unprecedented 165% surge in cyber attack attempts last year—many coming from Russian and Chinese actors, according to Armis, an asset intelligence cybersecurity company. Its new report reveals that the industry faces severe safety, production, and critical infrastructure risks if security gaps aren’t urgently addressed.

Key highlights include:

• Global attack attempts more than doubled in 2023, increasing 104%. The manufacturing industry weathered a much higher-than-average rate of attacks at a 165% increase.
• In 2023, manufacturing was one of the top industries exposed to attack from Chinese and Russian actors. Compared to other industries, manufacturing experienced an intensified threat landscape, with .cn and .ru domains contributing to an average of 30% of monthly attack attempts.
• The concerning trend of operational technology (OT) devices accessing the internet highlights further potential vulnerabilities, with around 80% of engineering workstations and 60% of supervisory control and data acquisition (SCADA) servers having internet access over the past year. The vulnerabilities in these devices increase the potential entry points for bad actors.
• Data further highlights a concerning number of exploitable devices owing to usage of end-of-life or end-of-support operating systems that are no longer actively supported or patched for vulnerabilities and security issues by the manufacturer. Additionally, 12% of utilities and 11% of manufacturers are still using legacy operating systems—exacerbating cyber weaknesses.

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Some key questions the report answers include:

• Why outsource this function? In addition to cost reduction, outsourcing the freight audit and payment function enables shippers to reduce time spent on tasks like collecting carrier invoices, conducting freight invoice audits, making payments to carriers, and pulling detailed reporting on freight costs and services.

The highly regulated nature of the U.S. transportation market is another factor pushing shippers to  freight audit and payment services. The report shows that shippers are adopting these services to ensure compliance with various regulations.

• How big is the market? The report notes a market value of $696.11 million in 2022 and projects that number to reach $1.85 billion by 2030, growing at a compound annual growth rate (CAGR) of 13.67% from 2024 to 2030.

• What are the market segments? Currently, the market is bifurcated based on organization size, mode, industry verticals, and geography.

• Large organizations make up the largest market share, accounting for 64.48% of the market in 2022, with a market value of $448.87 million. The report projects this number will grow at a CAGR of 13.67% during the forecast period.
• Road freight accounted for the largest market share of 39.16% in 2022, with a market value of $272.59 million. It is projected to grow at the highest CAGR of 14.33% during the forecast period.
• Top industries included in the market are retail, manufacturing, food and beverage, and healthcare. Retail accounted for the largest market share of 31.35% in 2022, with a value of $218.21 million and a CAGR projection of 13.84% during the forecast period.
• Regionally, the market is classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. North America accounted for the largest market share of 44.9% in 2022, with a market value of $312.57 million and is projected to grow at a CAGR of 13.77% during the forecast period.

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Top Supply Chain Challenges for Dangerous Goods

Dangerous goods professionals highlight the need to reduce process complexity, establish effective staff recruitment and retention programs, and enhance digitalization to facilitate the safe and compliant transport of dangerous goods (DG) and hazardous materials, according to the 2023 Global Dangerous Goods Confidence Outlook survey, sponsored by Labelmaster, the International Air Transport Association (IATA) and Hazardous Cargo Bulletin.

Among the survey’s key findings and recommendations:

DG professionals are confident about the industry’s level of infrastructure and investment. 85% of respondents say that their infrastructure is on par or ahead of the industry and 92% increased or kept their DG investment the same year-over-year. While 56% believe their current infrastructure meets existing needs, only 28% responded that it meets both current and future needs.

Process complexity, mis-declared DGs, and attracting qualified staff remain challenging. 72% of respondents need more support to address future DG compliance. Views of the labor market are mixed; 40% indicate that current challenges will persist, 32% expect the labor market to improve and 28% say that it will become more difficult to find qualified staff. 56% say they expect the mis-declaration of DGs to stay the same or worsen.

Sustainability remains a focus across the industry. 73% of DG professionals report that their organizations have sustainability initiatives in place or planned. However, 27% do not have any sustainability initiatives planned, indicating room for improvement.

HazMat To-Do List

Hazardous materials shippers have a lot of moving pieces to manage. Of all the shipper responsibilities, properly classifying a hazardous material is most critical because all the other requirements are based on that proper identification.

According to the Federal Motor Carrier Safety Administration, hazmat shippers are responsible for:

• Determining whether a material meets the definition of a “hazardous material”
• Proper shipping name
• Class/division
• Identification number
• Hazard warning label, packaging, marking, placarding
• Employee training
• Shipping papers
• Emergency response information and phone number
• Certification
• Compatibility
• Blocking and bracing
• Security plan
• Incident reporting

6 Questions to Ask a HazMat Carrier

Ensuring the safe and compliant transportation of hazardous materials requires careful planning and due diligence. Choosing the right carrier is crucial, and asking the right questions can help you mitigate risks and ensure smooth transit for your hazmat shipment.

Before assigning a load, ask your prospective carrier:

1. Are you properly licensed and insured for transporting my specific hazardous material? Different hazmat classes have specific requirements for carrier licenses and insurance coverage. Verify the carrier holds the necessary permits and has insurance limits that meet your risk tolerance and regulatory requirements.

2. Do you have experience transporting this specific type of hazardous material? Experience matters. Ask about the carrier’s track record with similar hazmat shipments. Inquire about their safety protocols, training programs, and any incidents they have encountered.

3. Can you provide detailed information on your equipment and personnel qualifications? Ensure the carrier’s vehicles are properly equipped for your hazmat shipment, including placards, safety equipment, and emergency response measures. Verify the driver’s hazmat endorsements and training certifications match the specific requirements for your load.

4. What is your emergency response plan in case of an accident or incident? Accidents can happen. Ask about the carrier’s established emergency response procedures and their communication channels. Learn who to contact in case of an incident, and ensure their plan aligns with your own.

5. Can you provide references from previous customers who shipped similar hazmat materials? References offer valuable insights into the carrier’s reliability and performance. Contacting previous clients who shipped similar hazmat materials allows you to verify the carrier’s claims firsthand.

6. What is your process for ensuring regulatory compliance throughout the transportation process? Understanding the carrier’s approach to regulatory compliance demonstrates their commitment to safety and adherence to industry standards.

Expanding U.S. Chemicals Manufacturing

To increase domestic manufacturing of military-grade chemicals, the U.S. Department of Defense will award $192.5 million to seven companies under the Defense Production Act Investments (DPAI) Program.

The funding would establish, expand, and modernize U.S. manufacturing capacity for 22 critical chemicals in defense systems applications. The department expects the companies to reach a national capacity of chemicals by 2028.

The seven companies, which have proven that they can produce one or more of the military-grade chemicals, are CoorsTek, Goex/Estes Energistics, Lacamas Laboratories, Magrathea Metals, METSS Corp., Powdermet, and Synthio Chemicals.

Lacamas Laboratories received the largest contract at $86.2 million. The next two largest contracts were CoorsTek at $49.6 million and Magrathea Metals at $19.6 million.

The commercial sector can also apply these chemicals to various operations, including consumer products, pharmaceuticals, automotive components, energy, and agriculture. The funding adds to 10 awards and $289 million the DPAI Program has issued since the start of 2024.

Before Assigning a HazMat Load

• Request copies of the carrier’s insurance certificates and safety permits.
• Conduct a background check on the carrier’s safety record.
• Negotiate contractual terms that clearly define responsibilities and liabilities.
• Maintain open communication with the carrier throughout the transportation process.

Hazmat shipments account for 12% of all freight tonnage shipped within the United States. That equates to roughly 3.3 billion tons of hazardous materials shipped every year, worth an estimated $1.9 trillion.

The post Top Supply Chain Challenges for Dangerous Goods and Other HazMat Shipping Updates appeared first on Inbound Logistics.

• The Trucking Cares Foundation, the trucking industry’s charitable arm, donated $20,000 to South Dallas Driving Academy, a nonprofit that provides free driver education courses to low-income teens and young adults.

↑ Logistics Plus successfully completed a challenging shipping operation to support the reconstruction and development of Ukraine’s energy infrastructure. The company was tasked with transporting thousands of tons of essential gas pipe into Ukraine amidst the ongoing war.

Green Seeds

↑ Schneider National’s battery electric vehicle (BEV) fleet has hit the milestone of hauling more than 1 million zero emission miles of customer freight.

• Hellmann Worldwide Logistics entered into a partnership with shipzero, which specializes in measuring and reducing CO2 emissions in global freight transport. As part of the agreement, shipzero supports the entire data management process and determines the CO2 emissions for Hellmann’s global road business.

UP THE CHAIN

Andrew Williams

Mike Parra

← Andrew Williams, current CEO of DHL Express Canada, takes on the role of new regional CEO for the Americas. Current Americas CEO Mike Parra will start a new role as the CEO for DHL Express Europe.

• Angel Rodriguez joins ASF as president of ASF Air. He is an industry veteran with more than 30 years of global end-to-end supply chain experience.

Frank A. Lonegro

← Landstar System named Frank A. Lonegro as president and chief executive officer, effective February 2, 2024. James B. Gattoni, who currently serves as president and CEO, transitions to the role of special advisor to the CEO before his anticipated retirement in July 2024.

Robert Fischer

→ Wagner Logistics named Robert Fischer as senior vice president of business development to lead the 3PL’s growth strategy.

• Penske Logistics appointed Jeff Jackson as the new president for the business group. Throughout his career, Jackson has held numerous operations management and leadership roles with Penske Logistics.

Max Roberts

Belinda Finch

← Global cloud enterprise software company IFS has made two senior appointments. Max Roberts joins the company as chief operating officer and Belinda Finch joins as chief information officer.

M&A

↑ AIT has acquired Mach II Shipping Ltd, a U.K.-based freight forwarder specializing in worldwide distribution of pharmaceuticals and related products. The deal includes two locations in the Netherlands and the U.K., as well as a global network of life sciences partners extending across 30 countries.

• Cheetah signed a letter of intent to purchase Edward Transit Express Group, a global inbound non-vessel operating common carrier providing ocean and air transportation services.

• Canada Cartage Corporation will acquire The GTI Group, which provides a range of supply chain services including brokerage, transportation management, and freight forwarding for oversized and heavy-haul freight.

• Generix Group and DDS have joined forces to provide a supply chain digitization offering that covers all flows of goods and data, from procurement to invoicing and payment.

• Riverstone Logistics has acquired Ralph’s Transfer Co., a final-mile logistics provider based in Tampa.

• Transportation | Warehouse Optimization will acquire ProvisionAI, which provides a patented, optimized replenishment transportation scheduling solution named LevelLoad.

↑ CN has signed and closed an agreement to acquire Iowa Northern Railway, which operates approximately 275 track miles in Iowa connecting to CN’s U.S. rail network.

SEALED DEALS

• To gain greater visibility across its supply chain through suppliers and help identify responsible sourcing and business continuity risks, fashion retailer New Look partnered with TrusTrace, a global SaaS company with a platform for supply chain traceability and compliance data management.

↑ U.K.-based activewear brand AYBL replaced paper-based picking and manual fulfillment practices with Descartes’ ecommerce warehouse management system. As a result, AYBL has doubled its fulfillment capacity with existing staff and can scale to fulfill 70,000+ daily orders during peak season.

• Heura, a plant-based meat production company, selected ToolsGroup to help achieve the planning speed and accuracy necessary to transform its supply operations and meet the growing demands of its global expansion.

↑ KiK, a German discount retailer with more than 4,100 locations across Europe, has adopted TradeBeyond as its multi-enterprise platform to digitalize its supply chain operations. KiK will use TradeBeyond’s CBX platform to optimize its supply chain end-to-end, starting with its sourcing, tendering, order collaboration, and inspection processes

• Bamboo Rose entered a joint project with retail giant Walmart to develop and implement an enterprise sourcing platform (ESP) to bring together disparate systems, improve efficiencies, and help the company stay true to its mission of everyday low cost.

↑ Electrical parts distributor Van Meter is leveraging 18 vertical lift modules from Kardex Remstar to support growth. Since implementation, Van Meter has increased picking throughput by 25%, reduced labor costs by 21%, and increased accuracy to 99.99%.

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This potential is clear in supply chains, where both the number and complexity of decisions are increasingly complex. Achieving goals such as reducing transportation costs and carbon emissions, or improving order fulfillment speed and accuracy, requires better visibility and agility in decision making.

Today, early adopters of AI are already achieving these goals across transportation and logistics, sourcing and procurement, manufacturing, and beyond.

I’ve heard success stories from supply chain executives. Their companies are capturing a digital record of their supply chains to better track and respond to evolving challenges, enabling continuous learning and improvement while training future logistics decision makers.

At one global CPG manufacturer, AI allowed teams to move from manual processes (such as managing transshipments in spreadsheets) to digitized recommendations. This company now relies on AI to identify needed stock movements and to calculate the best course of action by examining weight and volume utilization, truck utilization, and stackability. As a result, truckload utilization rose from 87 percent to 95 percent – reducing both transportation costs and carbon emissions, and improving customer service levels.

If you’re like many leaders I’ve spoken to recently, you may wonder how this new technology will improve OTIF performance, reduce labor and expedite costs, and help you better manage capacity. Moreover, you need to know you can trust AI to deliver accurate decisions and quantifiable results.

What Global Executives are Saying 

What Every Executive Needs to Know About AI-Powered Decision Intelligence, a recently commissioned IDC Global survey of Fortune 1000 companies, addresses some of these questions.

Leaders from eight countries and a range of industries were asked about the challenges and opportunities of AI-powered decision making.

Here are some of the takeaways:

• Survey respondents identify IT, operations, and supply chain as the top three business functions where AI-powered decision intelligence technology would have the greatest positive impact. (See chart above)
• Only 20% of survey respondents say they feel completely comfortable with the number of decisions that need to be made each day.
• 33% still rely on intuition or experience to make business decisions.
• There is a disconnect between executives and employees regarding “in-the-field” decision making: only 55% of executives say they mostly, or fully, know how these decisions are made.
• Companies that use AI-powered decision intelligence are improving business metrics up to 20% across product and service innovation, employee productivity, and customer and employee retention, among others.

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What’s on the Minds of Manufacturing CEOs?

Manufacturing CEOs are making big plans for 2024, including accelerating investments in artificial intelligence, automation and robotics, while also raising the skill level of their current employees and recruiting highly trained workers. That’s the consensus of a year-long series of polls conducted by Xometry, an AI-powered, on-demand industrial parts marketplace. Here are some in-depth findings from the polls:

• Modernizing through AI. Manufacturing CEOs say AI will play a significant role in their company in the next one to two years. Of the CEOs who have already implemented AI, more than 70% have seen significant ROI in key areas such as supply chain management, quality control, and procurement.
• Domesticating manufacturing. Reshoring will continue to trend upwards with 76% of manufacturing CEOs having successfully reshored some or all of their operations throughout 2023, a move accelerated by federal tax incentives and initiatives such as “Build America, Buy America.”
• Tapping the brakes on EVs. While the automotive industry is primed for growth and innovation in 2024, EV manufacturers may be taking their foot off the accelerator when it comes to electric vehicles. Xometry’s Automotive Survey finds that 84% of automotive executives said current production timelines and waning consumer demand may make it difficult for the industry to meet the Biden Administration’s goals for the years ahead.
• Tracking a more sustainable future. Though EVs may be hitting a road bump for now, manufacturers are taking proactive action to limit greenhouse gas emissions across their industrial supply chains. Fifty-two percent of CEOs view climate change as an existential threat caused by human activity. In 2024, companies will make sustainability a business goal with more investment in measuring and tracking tools to prioritize decarbonization of their operations.
• Investing to fight a skilled labor shortage. Nearly four years post-pandemic, there remains a shortage of more than 600,000 manufacturing jobs waiting to be filled. As American manufacturing becomes more high tech, CEOs remain worried about attracting highly skilled talent. According to Xometry’s research, more than half (56%) of CEOs said they struggle finding qualified employees in today’s tight labor market.
• Pushing aside politics. Xometry’s Q4 CEO survey shows a near 50/50 split on whether Democrats or Republicans will better support manufacturing and the economy at large. The priorities remain non-partisan: bipartisan collaboration, public-private partnerships that invest in skilled labor, and proactive assistance from the federal government for the reshoring of manufacturing.

Help Wanted x 2 Million

The logistics and transportation sector is no stranger to challenging employment trends. Combating driver shortages, for instance, has been a top priority for trucking and intermodal companies for the past several years. And finding and retaining skilled warehouse workers has also been problematic for the distribution field.

The sector should continue to expect ongoing employment difficulties in the near future, according to Chad Raube, president and CEO of IntelliTrans, a global provider of multimodal solutions for bulk and breakbulk industries. What’s driving these trends? Raube points to increased order complexities; lower levels of available, seasoned staff; and changes in economic conditions where recovery rarely generates a return to prior staff levels.

“With continued growth forecast for domestic freight in 2024 and beyond, there is an expected need of nearly two million new employees for transportation and warehousing jobs, due to growth and attrition,” he says.

Adding to the challenge is the fact that companies are competing for a shrinking share of the population. Raube points to these stats: For workers aged 25 to 65, only 19% of the labor force will increase from 2021 to 2031, and 80% of the workforce in 2031 will come from the over-65 population.

Also, construction of new manufacturing sites has tripled in the past two years because of reshoring, which will change distribution patterns and transportation modes, adding to the urgency around these trends, he notes.

Three Industrial Real Estate Predictions

1. Look for vacancy rates to inch up further, as the construction pipeline continues to deliver new product throughout the country, while demand moderates further. The national vacancy rate should peak at just over 6% in 2024 before re-tightening.

2. Net absorption will remain tempered in 2024, as cooler consumer demand for goods, persisting elevated interest rates, and sticky inflation hamper growth.

3. As this wave of industrial product delivers over the next 12 months, the construction pipeline will shrink further, leading some markets to become supply constrained in 2025 as absorption starts to regain momentum.

Source: Cushman & Wakefield

Oversupply Makes Waves for Ocean Shippers

What do ocean freight experts see for 2024?

Shippers should expect more service disruption as container lines seek to manage oversupply and limit losses, predicts Philip Damas, managing director of Drewry Shipping Consultants and head of Drewry’s Supply Chain Advisors practice.

To control the level of oversupply, Damas expects a greater number of blank sailings, which will significantly reduce the predictability of containership departures.

Here are Damas’ key predictions:

• Container lines will collectively record profits of roughly $20 billion for 2023, but the oversupply of vessels will result in a collective loss of $15 billion in 2024.
• 2024 will be an ocean freight buyer’s market, and shippers should be able to secure significant rate cuts. “But,” Damas warns, “there will be a price to pay: the service reliability and service level of carriers will probably worsen.”
• In 2024, shippers will also need to contend with new EU Emission Trading System (ETS) surcharges from carriers. While current ETS surcharges on most trades are not high, Drewry is concerned about whether surcharges are “set at a justified, reasonable level,” as ETS surcharges are likely to more than double in 2025 and 2026.

2024: Year of Optimism and Growth?

Overcoming a slew of recent challenges seems to be breeding optimism in the supply chain sector. After enduring disruptions such as the pandemic, geopolitical conflicts, and monetary tightening, businesses are now adopting a growth mindset, according to Dun & Bradstreet’s Q1 2024 Global Business Optimism Insights report.

This is despite the fact that the report shows a downturn in global supply chain continuity due to geopolitical tensions, trade disputes, and climate-related disruptions in maritime trade causing higher delivery costs and delayed delivery times.

“Global businesses are adopting a more pragmatic stance towards their future,” explains Neeraj Sahai, president, Dun & Bradstreet International. “This shift in mindset suggests anticipation of additional growth in the forthcoming quarters, albeit with an underlying sense of continued caution.”

Key findings from the report’s five indices—measuring Q1 2024 compared with Q4 2023—reveal the following:

• The Global Business Optimism Index increased by 6.6%, indicating that businesses in advanced economies now feel more confident about their ability to absorb geopolitical and policy shocks, and are focusing more on growth opportunities.
• The Global Supply Chain Continuity Index fell sharply by 6.3%, with suppliers’ delivery time and delivery cost indices both deteriorating.
• The Global Business Financial Confidence Index increased by 10.1%; in addition, liquidity is expected to increase across firms of all sizes and businesses are more optimistic about their competitive positioning.
• The Global Business Investment Confidence Index rose 10.7%, showing a growing consensus that major central banks in advanced economies have reached a peak in the current interest rate hike cycle.
• The Global Business Environmental, Social and Governance (ESG) Index increased 7%, reflecting a positive shift in the commitment of firms worldwide towards sustainability practices.

“Greenwashing” Gaffes

With the current intense focus on sustainability, it’s not surprising that many companies are accused of “greenwashing,” or conveying a false or misleading impression of the environmentally friendly nature of their products or supply chains. Increasingly, however, many firms may be unintentionally guilty of the practice.

Nearly half (45%) of U.S. organizations are concerned they could be at risk of unintentional greenwashing, finds new research from Ivalua. With pressures from customers and regulators on the rise, organizations also face pressure to ensure all green claims are legitimate.

The study reveals less than half (48%) of organizations claim they are “very confident” that they can “accurately” report on Scope 3 emissions (emissions resulting from activities or assets not owned or controlled by the reporting organization). Meanwhile, nearly two-thirds (62%) say reporting on Scope 3 emissions feels like a “best-guess” measurement.

The research also shows that while 88% of organizations are confident they’re on track to meet net-zero targets, many don’t have comprehensive, fully implemented plans in place for:

• Adopting renewable energy (78% are confident in their plans)
• Reducing carbon emissions (68%)
• Adopting circular economy principles (72%)
• Reducing air pollution (67%)
• Reducing water pollution (63%)

The research also finds that more than half (51%) of organizations agree that unless green initiatives to reach net-zero goals also involve suppliers, they are a waste of time.

Quick Take: Sector Sentiment

• 74% of supply chain professionals foresee positive growth in the global container shipping industry in 2024.
• 53% expect an increase in container prices, 26% anticipate stability, and only 21% express pessimism about price decline.
• 30% of supply chain professionals say forecasting and planning is the most important area of business to improve with technology in 2024, followed by real-time visibility and tracking (24%), collaboration and connectivity (27%), and process automation (18%).

Source: Container xChange Industry Speak Survey

A Sea of Investment

The Great Lakes St. Lawrence Seaway system, a marine highway that supports more than 100 ports and commercial docks located in each of the eight Great Lakes states, and the provinces of Ontario and Quebec, has been the recipient of significant investment from public and private sources over the past five years.

An independent survey conservatively estimates that investments made between 2018 and 2027 will total $8.4 billion.

Prepared by Martin Associates, and titled Infrastructure Investment Survey of the Great Lakes and St. Lawrence Seaway System, the survey quantifies ongoing investments in the navigation system to help support long-term planning and economic development goals, while also building confidence in the system’s future viability.

The survey also reveals investment in specific aspects of the system, including:

• $636 million in vessel enhancements between 2018 and 2022; $328 million planned between 2023 and 2027.
• $2.1 billion to enhance port and terminal infrastructure between 2018 and 2022; $1.1 billion planned between 2023 and 2027.
• $3 billion in waterway infrastructure (locks, breakwaters, navigation channels) between 2018 and 2022; $1.2 billion planned between 2023 and 2027.

“The survey’s conclusion is clear: both the public and private sector recognize that maritime commerce on the Great Lakes and St. Lawrence Seaway remains essential to the economies of the United States and Canada, and are investing to protect this irreplaceable system,” said U.S. Transportation Secretary Pete Buttigieg.

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Top 5 Aerospace Supply Chain Disruptions

Aerospace is one of the top five industries impacted by supply chain disruptions, according to EventWatchAI, Resilinc’s global event monitoring platform, which collects information and monitors news on 400 different types of disruptions across 104 million global sources.

Here’s a look at what Resilinc identifies as the biggest challenges facing the aerospace industry.

#1 Factory fires. Fires and explosions at warehouses, factories, and plants, as well as investigations and force majeure due to fires, are the top disruption in aerospace and have been the leading supply chain disruption across all industries tracked by Resilinc for five consecutive years. Simple safety measures—such as stocking extinguishers and training employees—can reduce the potential risk of factory fires.

#2 Labor disruptions. In 2023, the aerospace industry saw approximately 887 labor disruptions—a 66% jump from the year prior—which include company, site, union, and national strikes as well as layoffs, labor walkouts, protests, and more. Labor disruptions were a particular problem across all forms of global transportation as well.

#3 Mergers & acquisitions. While M&As can positively affect the industry, leading to improved technologies and more resilient companies, it takes time to merge data, suppliers, and systems, which can cause challenges.

#4 Business sale. 2023 saw more than 800 business sale disruptions in aerospace. Business sales include the sale of factories and plants, the sale of assets and subsidiaries, and brand/portfolio sales. Similar to M&As, business sales can increase supply chain resilience as companies acquire new technology and expand portfolios. However, business sales can also create increased security threats and delays while assets and information change hands.

#5 Factory disruptions. Factory disruptions include accidents, closures, and temporary shutdowns at warehouses, plants, and factories. There can be many reasons for factory closures—including industry growth. Even the most minor delays and shutdowns can cause significant issues across the supply chain.

Flying High

The 10 largest aerospace companies in the world:

• Boeing, US
• Airbus, France
• United Technology, US
• Lockheed Martin, US
• Northrop Grumman, US
• GE Aviation, US
• Raytheon, US
• Rolls-Royce, UK
• Leonardo, Italy
• Safran, France

Loose Ends

After United Airlines and Alaska Airlines discovered loose parts on multiple Boeing 737 MAX 9 aircraft, grounding 171 planes, industry experts raised new concerns about how the aircraft is manufactured.

The Federal Aviation Administration completed inspections of 40 grounded planes and says it will “thoroughly review the data” to determine if it is safe to allow the planes to resume flying.

Complexity Clouds A&D

The aerospace & defense (A&D) industry is facing unique challenges created by geopolitical conflicts, sustainability regulation and expectations, and shifting demand, finds Deloitte’s 2024 A&D Outlook report.

Key takeaways for supply chains include:

The A&D supply chain remains complex. The A&D supply chain is a complex, globalized ecosystem of customers and original equipment manufacturers; multiple tiers of suppliers; and maintenance, repair, and overhaul providers. This complexity makes implementing diversification and transparency across the value chain extremely difficult, but imperative.

By maintaining strategic raw material reserves, committing to bulk buying of long lead time items, exploring alternate sources of supply, and digitizing operations, A&D companies may position themselves well to handle any continued fragility across the entire supply chain.

Digital transformation will make a difference. Digital transformation in the A&D industry is largely impacted by regulations, priorities, and resources—but those who are prepared to adopt digitalization and advanced technologies such as Generative AI could gain a competitive advantage.

Sustainability matters. The industry faces evolving consumer demands for enhanced technology, greater sustainability, reduced emissions, higher performance systems, and lower costs, which may all factor into decision-making on supply chain processes.

5 Sustainability Trends Driving Change in Aerospace

The aerospace industry should keep an eye on five sustainability trends, according to Bryan Christiansen, founder and CEO of Limble CMMS.

#1: Advanced aircraft design. Aircraft manufacturers can improve performance by making slight improvements to aircraft. They can enhance engine designs for improved fuel efficiency, improve aerodynamic designs, explore the use of lightweight fabrication material, and use advanced coatings.

#2: Use of sustainable aviation fuels. The utilization of sustainable air fuels (SAFs) is taking shape as airlines strive to achieve net-zero emissions. These fuels have similar chemical characteristics to fossil fuels but with fewer ozone depletion capabilities; they release carbon that has already been extracted from the environment. Emissions from SAFs have a shorter life cycle, which further reduces their ozone depletion rates.

#3: Urban air mobility. Two technologies—electric vertical takeoff and landing (eVTOL) aircraft and drone deliveries—are front runners in the urban air mobility sector. Although at an infancy stage, eVTOLs promise to revolutionize air travel for short and medium-distance flights. Companies are using drones for last-mile deliveries across cities, with their payload capacities increasing over time.

#4: Advanced propulsion technology. Modern and future aircraft will not rely only on fossil-powered engines. The push for sustainable flights is revolutionizing the design of aircraft and spacecraft propulsion systems.

#5: Optimize air travel management. Airlines can minimize their carbon footprints by digitizing air travel management and leveraging advanced technology to improve route planning and asset maintenance and enhance operational efficiency.

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•  JLT Mobile Computers introduced its JLT Insights warehouse productivity software, a monitoring and analysis solution. It monitors devices, vehicles, access points, and workforce productivity through real-time data from sensors embedded in the JLT6012 series of rugged computers.

•  Casper Labs launched a tracking, reporting, and transparency tool called Casper Labs Track & Trace. Designed to optimize inventory management and product distribution, it helps manufacturers upgrade workflows and improve transparency.

•  AI-powered parcel delivery logistics platform Bettermile is now available for U.S. shippers seeking a last-mile visibility solution. The company’s cloud-based software offers real-time tracking, route optimization, and communication tools to boost efficiency and customer satisfaction.

•  Accenture and SAP SE teamed up to offer a supply chain nerve center that can reduce risk, enhance visibility, and support sustainability goals. The companies co-developed new capabilities for the SAP Integrated Business Planning for Supply Chain solution to help organizations respond to changes in supply, demand and inventory.

•  New route optimization SaaS solution, Logi-IQ, which launched in beta in late 2023, is now available for full implementation. Designed to address inefficiencies in logistics planning, resource waste, and communication challenges, Logi-IQ offers route optimization capabilities as well as driver management, task management, and business intelligence functionality.

•  Rotate launched a real-time capacity and market intelligence tool to support decision-making in the air cargo industry. Rotate’s Live Capacity tool offers insight into the supply side of the air cargo market—and is available free of charge. Users gain real-time access to global capacity information based on flight-tracking data covering flights from thousands of airlines at more than 9,000 airports.

•  ORO Labs integrated its procurement workflow platform with the SAP Ariba procure-to-pay solution and other SAP products, enabling customers to orchestrate spend and supplier management across enterprise systems and data. The integration helps companies create intake workflows, build a procurement tech stack, and simplify user engagement.

•  Designed to help companies ensure compliance with the new U.S. Drug Supply Chain Security Act (DSCSA), Tecsys launched Elite WMS for healthcare distribution. The new warehouse management system contains embedded serialized DSCSA support designed for real-time, continuous compliance. It also streamlines workflows for receiving, putaway, and fulfillment.

Carrier Logistics Inc. (CLI), a provider of freight management software for less-than-truckload fleets, now offers automated departure reports that provide system-generated notifications about freight status. The departure reports are transmitted as soon as the delivery driver leaves a terminal to inform the customer their freight is on the truck and provide an estimated time of arrival.

Products

•  Metalcraft, a manufacturer of identification products, now offers the Universal Eco Mini RFID Tag, which is designed for item-level retail tracking on metal surfaces. Made with 40% less material than previous products, it has a read range of up to 25 feet on metal surfaces.

•  Cabka’s new reusable, recycled plastic pallets incorporating the Repsol Reciclex polypropylene compound, offer high load capacity, flexural rigidity, and dimensional stability. The pallets are compatible with automated handling and robotic palletizing systems.

•  Macfarlane Packaging launched a line of sustainable stock boxes for retailers. Made of single- and double-wall boxes, the new line is 100% Forest Stewardship Council certified.

•  Mezzanine Safeti-Gates now offers safety gate designs with product containment netting. The add-on offers high-strength, high-visibility netting on the ledge gate to prevent products from falling from elevated rack systems.

•  Specim, Spectral Imaging Ltd. released an upgraded Specim FX50 middle-wave infrared hyperspectral camera for industrial applications, including sorting, quality control, and process optimization. With a high spatial resolution, image speed, and signal-to-noise ratio, the Specim FX50 enables fast and accurate inspection and classification of materials.

•  Reelables unveiled its new 5G Smart Labels, a printable 5G label solution that lets retailers and other stakeholders track shipments at the piece level as they move through the supply chain. The label itself functions as the tracking device connected to a cellular network.

Services

Florida’s Port Everglades received three additional Super Post-Panamax container gantry cranes as part of its $471-million project to expand its deepwater turn-around area for cargo ships. The three 175-foot-high ship-to-shore cranes, valued at $15.1 million each, can handle containers stacked eight high from a ship’s deck and reach 22 containers across the ship’s deck.

•  Dayton Freight Lines relocated its Detroit service center to a new facility double in size. Located northwest of Detroit in Waterford Township, the new center has 132 dock doors.

Estes opened a new terminal in its headquarter city of Richmond, Virginia. One of the largest terminals in the carrier’s network, the facility features 98 doors, more than 41,000 square feet of dock space, and 4,900 square feet of office space across 20 acres.

•  Armada opened a new warehouse facility located at 101 Enterprise Drive in Flower Mound, Texas. The facility offers 357,069 square feet of ambient space, serviced by 72 dock doors. Temperature-controlled capacity includes 33,678 square feet of refrigerated space and a 54,630-square-foot freezer supported by a 16,723-square-foot cool dock and 16 dock doors.

•  PL Cold, the new corporate division of Progressive Logistics (PL), opened a 300,000-square-foot, deep-frozen (-10°F) storage facility east of Indianapolis. In collaboration with development partner Ambrose Property Group, PL Cold integrated technology and design features to ensure Safe Quality Foods (SQF), organic, and American Institute of Baking (AIB) certification, offering its customers flexible cold storage options within one day’s drive of most of the U.S. population.

•  Qatar Airways Cargo launched the Drive service, which transports various types of automobiles by air. Drive accommodates high-value vehicles on the airline’s freighters and passenger flights, delivering them to more than 160 belly-hold and more than 70 freighter destinations as well as other destinations that are not part of its scheduled services.

Averitt opened a new facility in the South Alabama Logistics Park in Mobile, Alabama. Equipped with electric forklifts and energy-efficient LED lighting with motion sensors, the facility features a 120,000-square-foot warehouse and a 35,000-square-foot cross-dock.

Transportation

cargo-partner launched cross-border road solutions connecting the United States, Mexico, and Canada. Its U.S. team is located in four cargo-partner offices in Chicago, Los Angeles, New York, and Clarksville.

•  Lufthansa Cargo welcomed a fourth Airbus A321 freighter to its fleet and continued to expand its route network by adding Stockholm, Amman, and Stavanger to its winter flight schedule. With 14 pallet and container positions on the main deck and 10 on the lower deck, the twin-engine medium-haul aircraft has a total payload of 28 tons.

•  OOCL launched a new Japan-Philippines service called KTX4. The new offering enhances the network coverage between Japan, Taiwan, Hong Kong, South China, and the Philippines. KTX4 directly connects multiple ports in Japan with the Philippines.

Cargo airline One Air took delivery of its second Boeing 747-400 freighter. The additional aircraft supports the new airline’s regular charter services connecting Hong Kong and London Heathrow, as well as provides ad hoc capacity for global charter services.

•  ZIM started a short sea service linking Mexico to the Port of Brunswick in Georgia, with the first shipment of more than 1,000 vehicles delivered through the gateway in November 2023. The Gold Star service offering from ZIM provides delivery of roll-on/roll-off cargo for automakers.

•  J.B. Hunt Transport Services and BNSF Railway launched Quantum, a premium intermodal offering. The offering cuts delivery times by one day from standard intermodal service. The shipments are assigned priority drayage and rail positions.

•  Atlas Air, a subsidiary of Atlas Air Worldwide Holdings, took delivery of a Boeing 777 Freighter on behalf of MSC Mediterranean Shipping Company SA. Atlas Air now operates four 777 Freighters for MSC. The aircraft supports MSC’s weekly global services, including a route from Hong Kong to Dallas/Fort Worth.

A.P. Moller – Maersk (Maersk) is set to launch the first of its 18 large methanol-enabled vessels currently on order. On February 9, 2024, the new vessel enters service on the Asia-Europe lane, which includes port calls in Shanghai, Tanjung Pelepas, Colombo, and Hamburg, with Ningbo, China, as its first destination. The container vessel built by Hyundai Heavy Industries in South Korea is equipped with a dual-fuel engine, enabling operations on methanol as well as biodiesel and conventional bunker fuel.

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