Technology

• Locus Robotics, a provider of autonomous mobile robots, released the LocusHub business intelligence engine to provide AI-powered warehouse intelligence and robotics automation optimization. LocusHub, part of the LocusOne platform, harnesses advanced analytics, artificial intelligence, and machine learning to deliver predictive and prescriptive insights.

• Rail shippers can gain better control of transportation costs with a demurrage management solution from Railinc’s TransmetriQ business unit. The new TransmetriQ module helps identify and manage demurrage situations, provides automatic demurrage estimates, identifies dwell and cycle time trends, and prioritizes cars for loading/unloading to minimize fees.

• apexanalytix, a provider of supply chain risk management solutions, launched apex Neural Engine, an AI-powered solution designed to streamline supplier interactions and relationships. The solution provides companies with a trainable risk-sensing assistant to consume risk signals from around the world and builds private knowledge bases by applying generative AI to supplier documentation.

• Kaleris unveiled new capabilities in its yard management system (YMS) to improve efficiency, operational visibility, and safety in yard operations. The latest innovations in the Kaleris YMS include intelligent movement to organize yard moves, minimize conflicts, and reduce bottlenecks as well as appointment scheduling, which assigns a specific time for trucks or carriers to arrive for shipment loading/unloading.

Products

↑ The next-generation HUBTEX Load Manager helps workers transport bulky, long, or heavy loads into and out of storage. Providing support for steering into target positions and finding the ideal lifting height, the system also offers optional preselection settings for fork adjustment and mast reachout, ensuring long goods can be transported with precision.

• The new Raymond Courier 3030 Automated Stacker offers improved motion control, object detection coverage, increased speeds, and lane staging capabilities to materials handling applications. The Courier is built on the Raymond chassis and mast and uses vision-guided technology.

• Emerson’s Appleton Baymaster LED high-bay luminaires and Areamaster LED floodlights are now equipped with energy-saving dimming as a standard feature, along with new color temperatures that minimize light pollution.

← The Autotote 64 from packaging manufacturer Loadhog is designed to work with intralogistics automation. The container features a single-shot, double-skin base that makes it smooth inside and out. It has a cantilever base edge which reduces deflection and helps ensure a smoother transition between linking conveyors, during directional change, and over rollers.

→ The LHI-DO Lightgistics series light from Smart Vision Lights is designed to deliver intense linear light in high-speed scan tunnel systems so packages can be illuminated and read, no matter the shape or material. The technology—which enables LEDs to rapidly self-trigger thousands of times per second at rates imperceivable to the human eye—maximizes the capabilities of machine vision systems while protecting employees.

• Delta, a provider of IoT-based solutions, unveiled a new wireless charging system for electric forklifts, heavy-load automated guided vehicles, and yard trucks. The new M∞Vair 30 kW wireless charging system, which recently obtained Federal Communications Commission approval, provides 95% contactless power conversion efficiency.

Services

• Bangkok Flight Services, the joint venture between Bangkok Airways and Worldwide Flight Services (WFS), a member of the SATS Group, achieved Good Distribution Practice (GDP) certification for its dedicated pharma handling facility at the city’s Suvarnabhumi International Airport. WFS customers can now avail of 27 GDP or IATA CEIV Pharma certified facilities globally, with two locations in North America aiming for certification in Q2 and Q3 2024.

• GEODIS launched a multi-carrier parcel shipping solution that offers shippers enhanced rate shopping and carrier selection capabilities. Customers in the Americas region can take advantage of a broader choice of shipping options, making informed selections for ecommerce fulfillment by comparing shipping rates based on parcel size, destination, and delivery timeline.

• Southeastern Freight Lines, a provider of regional less-than-truckload transportation services, opened a new service center in Bowling Green, Kentucky. The new facility, located at 6333 Whitney Drive, consists of 45 dock doors and offers expanded dispatch spaces.

• Old Dominion Freight Line opened one of its largest service centers, expanding its network to better serve the Northeast. The new service center located in Tannersville, Pennsylvania, began operations in March 2024 with 140 employees.

Transportation

↑ The CMA CGM Group took delivery of the CMA CGM MERMAID, the first ship in a series of 10 new 2,000-TEU container ships powered by liquefied natural gas. To be deployed in the Mediterranean and Northern Europe, the ships join the CMA CGM fleet of around 620 vessels, including more than 30 powered by alternative energies.

• PITT OHIO now offers next-day shipping lanes to New England from three of its terminals. Previously, standard shipping to New England from Cumberland and Baltimore, Maryland, and the Greater Philadelphia Area could take up to 3 days. Now, customers in New England can expect their freight to arrive in 24 hours.

• OOCL introduced its newest mega container ship the OOCL Abu Dhabi, the eighth eco-friendly 24,188-TEU vessel on its fleet. It will serve the Asia-Europe LL1 service.

• ZIM added a call to Cai Mep Port in Vietnam to its ZMP service, connecting Asia to the East Mediterranean. The updated rotation includes Pusan, Qingdao, Ningbo, Shanghai, Da Chan Bay, Cai Mep, Colombo, Haifa, Ashdod, Mersin, Derince, Istanbul, and Xiamen.

• Efret launched a road freight transport service from the UK to Morocco with scheduled departures every weekday. The direct service offers transit times of 5-7 days door to door.

Cold Chain Tech Glows

Ember LifeSciences and the U.S. Anti-Doping Agency (USADA) have partnered to enhance the efficiency of blood-sample shipping processes for upcoming sporting events, including the 2024 U.S. Olympic Team Trials.

Ember LifeSciences’ cold chain technology focuses on self-contained, self-monitoring shipping systems for items such as temperature-sensitive pharmaceuticals, vaccines, and lab specimens. The Ember Cube (photo above) provides a fully integrated solution to common and costly challenges in cold chain shipping. Its design addresses issues related to tracking and temperature-sensitive deliveries, ensuring secure transport and preserved efficacy of medicine and specimens.

The USADA used the Ember Cube at several sporting events in 2023, including the Boston and New York Marathons and the Ironman World Championship in Kailua-Kona, Hawaii.

Through these events, hundreds of blood samples from elite athletes were transported in Ember Cubes to drug testing labs across the United States. Leveraging Ember’s cloud-based dashboard, USADA was able to monitor the real-time location, ambient temperature, and payload temperature of the Cubes during transit, ensuring that the blood samples maintained optimal temperatures and chain of custody was retained throughout the journey.

Beyond addressing shipment delays, the Ember Cube presented USADA with a cost-effective, integrated shipping solution given its reusability and advanced features, including self-refrigeration capabilities to store collected blood samples before and during transport. The Cube’s integrated temperature monitoring also eliminated the need for a standalone temperature logger, enhancing the overall efficiency, simplicity, and reliability of the process.

6 Healthcare Supply Chain Trends to Monitor

It will take next-level healthcare supply chain management to deliver next-level healthcare, according to DHL’s latest whitepaper, Delivering Next-Level Healthcare, which identifies these six key trends driving healthcare logistics.

1. Patient-centric healthcare. Today’s personalized treatments require closer links between pharmaceutical manufacturers and patients. And patients now expect the same choice and convenience in healthcare as in the commercial marketplace, driving growth in the consumer healthcare segment.

2. Advanced therapies. New approaches supplant simpler, more generalized medicines. For example, complex cell and gene therapies are developed in small batches that require tightly controlled two-way supply chains. Biopharma products need to be handled carefully at every stage in the supply chain, prompting robust investments in cold chain logistics.

3. Digital healthcare. The pandemic fueled an explosion in remote healthcare, including “decentralized clinical trials” where shipments of urgent, sensitive, and temperature-controlled medications replace the movement of patients. This results in more complex healthcare supply chain management, with sophisticated sensor and asset-tracking technologies for cross-system visibility and auto-replenishment. It also has applications for blockchain technologies to guard against counterfeiting and data theft.

4. New ecosystems. The urgency with which the COVID-19 vaccines were developed and distributed reset expectations, not just for the pharmaceutical industry but for logistics as well. Accelerated timelines have led some large healthcare providers to turn to outsourced logistics providers to handle the critical flows of medicines and devices throughout the supply chain.

5. Sustainable solutions. Carbon-neutral warehousing, alternative fuels, closed-loop returnable packaging and container systems, and optimized inventory and delivery models can ensure high levels of availability while minimizing waste and helping the industry meet its emissions goals.

6. Resilience. The pandemic and its after effects brought unprecedented stress to global healthcare supply chains. The desire to avoid future disruptions has led to a “great supply chain rethink,” including more localized supply chains for essential healthcare products and insourcing of critical pharmaceuticals, active ingredients, and medical supplies.

RFID: Hospitals Tag Along

The global RFID market is experiencing significant growth and is projected to reach $40.9 billion by 2032, up from $15.8 billion in 2023, according to Markets and Markets research. Applying RFID technology to healthcare is expected to grow at the second-highest rate during the forecast period, the research finds.

Patient monitoring within hospitals presents ample opportunities to integrate RFID solutions. These technologies offer a means to track and accurately identify patients, which enhances safety protocols. By leveraging RFID-enabled patient monitoring solutions, hospitals can optimize patient flow and throughput, streamlining routing workflows while reducing medication errors.

These systems also facilitate the monitoring of patient movement history and activity levels, ensuring comprehensive room-level patient visibility. Additionally, RFID technology can detect instances of patients falling from beds or wheelchairs. Real-time monitoring capabilities afforded by RFID solutions offer a proactive approach to preventing such incidents.

“The demand for temperature-controlled shipments, especially for vaccines, is on a steady rise. This trend, coupled with the fact that most healthcare-related items also require temperature control, could potentially lead to a squeeze in the availability of services. It’s crucial to anticipate these challenges and ensure we are prepared to meet the growing demand.”

—Joel Pinsky,
President,
Customized Logistics and
Delivery Association and
CEO and CFO,
Global Messenger and Logistics

At-Home Tests Not Going Away

Over the past few years, in large part due to COVID-19, healthcare providers have become more comfortable with patients self-administering tests and reporting the outcomes. As a result, the market now offers more intelligent, technology-forward devices for general consumers proactively taking charge of their own healthcare.

As healthcare and medical device companies continue to navigate this booming market, they’re also running into a host of issues: regulatory compliance, risk mitigation, quality assurance, logistics and distribution, inventory management, and typical global supply chain disruptions.

In the life sciences space, regulatory compliance is critical to guaranteeing that at-home testing kits and medical devices safely get to consumers. Companies are subject to strict mandates imposed by health authorities across the globe.

The challenges that at-home testing kits and medical devices face in supply chains aren’t going away, and are likely to get only more nuanced. It’s vital that providers work with partners that have experience in medical device logistics to help mitigate risk and successfully navigate this rapidly evolving market.

– John Marrow, President, RRD Supply Chain Solutions

CtrlChain’s Shipper TMS modernizes the way businesses manage their transportation needs. Managed Transportation by CtrlChain offers a seamless integration of shippers’ own carrier networks into our system, empowering them to plan their shipping operations with ease. Now, shippers can easily tender ad-hoc shipments to their existing carriers or leverage CtrlChain’s extensive network of trusted carriers to ensure optimal delivery routes and efficiency.

Specializing in full truckload (FTL) shipments, CtrlChain’s innovative system not only enhances service quality but also significantly reduces overhead and administrative costs for businesses. On average, shippers spend from 30-90 minutes working on the operational tasks for each order. This includes searching for transportation, replying to carrier inquiries, appointment coordination, and so on. By leveraging the CtrlChain platform, shippers can streamline their shipping operations, spending less time on manual tracking and more time focusing on core business activities.

“As we grow we aim to position ourselves as a strategic partner within company’s Supply Chain Management where we focus on digitalization, automating logistics management through data driven decision making. We also focus on incorporating sustainability and ethical practices as core components of supply chain management on top of efficiency, safety and cost reduction,” stated Giovanni Gubbels, CEO.

With a solid foundation built on years of success in Europe, CtrlChain aims to empower businesses across the United States to optimize their shipping processes and achieve sustainable growth.

In addition to its commitment to customer satisfaction, CtrlChain continues to address industry challenges such as freight fraud, driver shortages, and sustainability concerns. Through strategic partnerships and investments in digitalization, CtrlChain remains at the forefront of driving innovation and facilitating international expansion.

Read more about our innovative solutions at www.ctrlchain.com.

About CtrlChain:

CtrlChain, founded in 2018, is an innovative logistics service provider with offices located in Eindhoven, Barcelona, and Chicago. The company aims to modernize the industry, offering easy-to-implement solutions that bridge communication gaps and embrace the digitization of logistics, leading to fewer empty miles driven and less manual time spent on operations. For more information about CtrlChain and its advanced transportation management solutions, visit www.ctrlchain.com.

Founded in 1996, Hopewell Logistics is part of the Hopewell Group of Companies. Hopewell’s commitment to operational excellence, teamwork, innovation and sustainability has helped the company become one of Canada’s Best Managed Companies.

Today, Hopewell provides third-party logistics services to some of the world’s best-loved brands and operates multiple stand-alone and campus-based distribution operations across Canada.

The firm continues to drive operational excellence and continuous improvement at all of its sites and offers a complete suite of supply chain solutions to help you deliver world-class service to your customers, including:

Dedicated Warehousing & Order Fulfillment

Warehousing and Distribution are at the core of Hopewell’s business. The company operates multiple +500,000 sq ft warehouses across Canada and ships to all major retailers. Their team of experts can custom design or accommodate your existing facility and operations in addition to tailoring solutions to businesses of any size.

eCommerce Fulfillment and Delivery Solutions

Hopewell’s flexible and customizable solutions can help you overcome the challenges of omni-channel fulfillment and meet growing consumer demands with speed and accuracy. Whether you are a large retailer or small to medium enterprise looking to outsource your ecommerce fulfillment, Hopewell’s full-service logistics solutions can aid you a seamless buying experience for your customers.

Transportation Management

When it comes to moving products, Hopewell has a Transportation Solution for you. Its Transportation Management System provides top-shelf infrastructure and is calibrated by experts to support your business needs. Services include order tracking, OS&D, claims management, billing, and compliance management, among many other features.

Continuous Improvement

At Hopewell, exceeding KPIs is a way of life. The team has led and participated in many Continuous Improvement initiatives with its clients, including Six Sigma programs, facility design and re-engineering, data modeling, and workforce management.

Network Evaluation & Design

Whether you are looking to design a site network strategy, multi-temperature zone locations within site, or just figuring out the best place to put the washroom, Hopewell can help!

Value-Added Services

Hopewell offers several value-added services, including:

• Transition and Change Management
• Contract Packaging (Co-Pack) Solutions
• Information Technology Services
• Shunt and Shuttle Services

Technology

↓ Dexory’s autonomous robotics and AI-powered analysis solution, DexoryView, lets businesses understand what happens in their warehousing operations in real time. The system combines analytics capabilities with autonomous robots that capture image and sensor data from across a warehouse and a digital platform that connects warehouses across the global supply chain.

• Dock management solution myQ Enterprise from Chamberlain Group, the company behind the LiftMaster brand, is a connected hardware and software solution that streamlines driver scheduling, simplifies check in, and provides real-time communication. Facilities can automate loading dock assignments and processes with the solution.

• QAD’s new Industrial Transformation Platform helps manufacturers, suppliers, and supply chain participants address challenges by solving root causes. Also called the O3 Platform, the solution lets enterprises synchronize processes, systems, and people with artificial intelligence, accelerated implementations, frontline worker coaching, manufacturing and supply chain solutions, connected workforce capabilities, and process intelligence.

• PalletTrader, an online marketplace for buying and selling pallets, introduced new features to streamline the process. PalletTrader now offers buyers direct access to pallets for sale on the marketplace from its homepage without having to log into the platform. It also added a guest buying role.

• End-to-end supply chain planning software solution provider John Galt Solutions expanded its partnership with PlanetTogether to enhance supply chain planning and scheduling solutions and add new capabilities to the Atlas Planning Platform. Companies can streamline manufacturing processes, adapt to changes in production sequence, and unlock business value throughout the supply chain.

• AI-driven optimization software provider INFORM offers SYNCROSUPPLY, a truck and time slot solution that automates the scheduling of truck appointments at manufacturing facilities. The solution supports the yard management staff and provides visibility more than four days out to reduce vehicle congestion and improve dock door utilization.

Products

• Retailers can lower the environmental impact of their packaging with middle-mile logistics platform Fillogic’s new offering: 100% recyclable, reusable mono-material polypropylene packaging. Provided by Renegade Plastics and made by reusable packaging provider Returnity, the reusable shipping box replaces standard corrugated cardboard, holds more than 50 pounds, and lasts 40 – 50 shipping cycles.

• Toshiba America Business Solutions’ new BV400T thermal transfer printers quickly (7 inches per second) and vividly (up to 300 dots per inch) produce shipping and shelving labels, radio frequency identification (RFID) asset management tags, and other labels. Capable of making approximately 1,000 labels a day, Toshiba’s 4-inch desktop printers are designed to meet industrial labeling and receipt needs.

← ORBIS added a new pallet, top cap, and reusable sleevepack system to its OpteBulk collapsible plastic bulk solutions. Maximizing truckload space, the new OpteBulk 48×45 series offers a total of 28 positions per 53-foot trailer, two more positions than other 48×45 sleevepacks in the market.

Services

→ Florida’s Port Canaveral welcomed a second mobile harbor crane, expanding its ability to handle a diverse cargo portfolio. Manufactured by the Liebherr Group in Germany, the LHM 600 evo 6 has a lift capability of up to 154 tons and a jib length of 200 feet. Its 20-container reach allows for containers to be stacked nine high on deck.

• Ryder System expanded its cross-border U.S.-Mexico operations by opening a logistics facility in Laredo, Texas, as well as extending its drayage yard in Nuevo Laredo, Mexico. Its new 228,000-square-foot warehouse and cross dock in Laredo is located 3 miles from the World Trade Bridge on the U.S.-Mexico border with interstate access in both directions.

• Americold Realty Trust plans to begin construction in the first half of 2024 on its first facility through a strategic collaboration with Canadian Pacific Kansas City to co-locate Americold warehouse facilities on the CPKC network. Americold is investing $127 million in the 335,000-square-foot facility in Kansas City, Missouri. The new facility will support CPKC’s single-line rail service for refrigerated shippers between the U.S. Midwest markets and Mexico.

• DHL eCommerce, a division of DHL Group, relocated from its Elkridge, Maryland, distribution center to a 138,500-square-foot location in Manassas, Virginia. Double the size of the previous location with 41 dock doors, the new distribution center enables DHL eCommerce to process more B2C domestic volume.

• Corporate Storage activated its Foreign Trade Zone designation at its Gainesville, Georgia, warehouse to save customers thousands of dollars through deferred duties, taxes, and processing fees. With the FTZ designation, Corporate Storage is positioned to serve customers whose products come through the nearby Blue Ridge Connector, Northeast Georgia’s inland port, which is scheduled to be completed in 2026.

Transportation

• Enstructure, a U.S. marine terminal and logistics company, and Dole Food Company expanded Dole’s shipping services to Port Wilmington in Delaware. The addition of a second weekly service increases the capacity for tropical fresh fruits, including Dole branded fruits, and general cargo being imported to the Mid-Atlantic region from Colombia, Honduras, and Guatemala.

Quick Checklist for Choosing Artificial Intelligence

☐ Does the AI project align with the company’s goals?
☐ Can we measure its impact?
☐ Should it augment or replace processes?
☐ Is this a problem AI can solve?
☐ Does the organization have access to pertinent data?
☐ Does the team have the needed technological capabilities and skills?
☐ Have we looked at ethical considerations?

← AGILOX OCF: The autonomous mobile robot (AMR) from AGILOX can move up-to-3,306-pound loads and lift them up to 63 inches high. The AMR uses the contours of its surroundings to navigate autonomously, automatically recognizing and avoiding obstacles. When in motion, the AGILOX OCF displays a green light on the floor in front of it to visually alert people. In addition, white lights at the bottom front and top rear on the lift mast indicate changes in direction.

→ LG CLOi CarryBot: Launched at the MODEX 2024 trade show, the new LG CLOi CarryBot family of AMRs from LG Business Solutions USA can navigate complex floor plans to move and deliver payloads in customizable configurations, with loading and unloading performed by workers. With a top speed of 2.7 miles per hour, a typical runtime of 18.5 hours, and autonomous dock charging in 6 hours, the LG CLOi CarryBot can streamline product movement and reduce physical strain on workers.

← ifollow AMR: The autonomous solution from Movu Robotics can carry payloads of up to 1.2 tons. The robot is suitable for cold storage environments; the batteries are protected from icing and condensation and can last from 8 to 10 hours on a charge time of 2 hours. ifollow AMRs can move cases, pallets, trolleys, or even two roll cages at a time.

→ Palion Lift CR1: The new AMR from Seegrid can move loads of up to 4,000 pounds, making it suitable for payloads that range from empty pallets to heavy manufacturing components. With 15 feet of effective lift height, the CR1 handles high-density storage or stacks of multiple pallets and payloads. Leveraging Seegrid’s navigation technology and safety sensors, the CR1 operates throughout dynamic environments, navigating aisles and managing buffer zones.

← Straddle AGV: Straddle AGVs from Dematic are ideal for transporting materials between production areas and warehouses, repetitive pallet movements, and product transfers from end-of-line and point-to-point warehouse routes. They have support legs that straddle loads with various fork designs and a slim body that provides a tight turning radius.

→ Vector AMR: The autonomous mobile robot from Locus Robotics supports a variety of material moves, including case- and each-picking or putaway, parts-to-line, dunnage, and point-to-point shelf/rack moves. Vector’s omnidirectional design makes it nimble in tight spaces, while carrying up to 600 pounds on fixed shelves (pictured) or by integrating with standard detachable carts. Vector is currently working alongside other Locus AMRs and human workers at sites around the world.

← Chuck AMR: With large, modular, and multi-level workspaces, Chuck is a configurable AMR available through Ocado Intelligent Automation. Used in more than 100 facilities worldwide, Chuck works collaboratively with associates to expedite daily warehouse tasks such as putaway, picking, sortation, and returns.

Supply Chains Search for New Sources

All eyes are on emerging markets as logistics and supply chain professionals look for the next opportunity to combat an uncertain global economic climate. These executives also remain wary of recession, express concerns over elevated costs, and expect supply chains to continue moving out of China, according to the newly released Agility Emerging Markets Logistics Index.

The Index ranks countries for overall competitiveness based on their logistics strengths, business climates, and digital readiness—factors that make them attractive to third-party logistics providers, freight forwarders, air and ocean carriers, distributors, and investors.

Here are some key findings from the 2024 Index:

• India, Europe, and North America rank ahead of China as destinations executives expect to move production to in 2024 and onwards.
• A large percentage of executives see increased risk/decreased rewards in emerging markets.
• Many see India growing in importance as a producer and market, but cite inadequate infrastructure and corruption as the biggest obstacles there.
• Many predict a surge in Africa investment.
• 66% say climate change is something they’re planning for, or is already affecting their businesses.

Readers React: New Cybersecurity Executive Order

To address growing concern over cyber threats, President Biden signed an executive order amending regulations designed to safeguard U.S. vessels, harbors, ports, and waterfront facilities. The order aims to further protect these assets against cyber attacks and other threats.

Here’s what Inbound Logistics readers say about this new action:

“The new executive order will give the U.S. Coast Guard greater authority to enforce cybersecurity requirements. Securing the maritime sector is an essential part of building resilient supply chains.”

—Abe Eshkenazi, CEO, Association for Supply Chain Management (ASCM)

“This is a critical step forward in protecting U.S. ports. We also have to pay attention to common wireless vulnerabilities. Attacks leveraging wi-fi, Bluetooth, and IoT protocols may be used to access authorized infrastructure including IT and OT systems.”

—Dr. Brett Walkenhorst, CTO, Bastille

“This is a crucial advancement. Cyberattacks serve as stark reminders of the cascading impacts on America’s shipping ports and the U.S. economy. Employing due diligence and verifying partnerships are also key to mitigating external risks.”

—Cole Garson, COO, Remcoda

Is Same-Day Delivery Worth the Hype?

While implementing same-day delivery presents challenges, many companies say that the benefits are worth it. A majority of companies (80%) say they increased revenue after implementing same-day delivery, according to new research from Roadie, a UPS Company that offers a logistics management delivery platform.

The research, which provides an overview of the challenges and benefits associated with implementing same-day delivery services, finds that nearly one-third of retailers report a revenue increase of more than 10%. Executives also cite benefits including higher customer satisfaction (80%), and an increase in sales (70%) and retention rates (66%).

Additional research highlights include:

• Most companies (63%) offering same-day delivery have done so for three years or more.
• 68% report that same-day delivery ROI consistently increased each year.
• Companies say that growing ROI unlocks insights that help them make decisions about:
  ‣ Product and service offerings (65%)
  ‣ Expansion of same-day delivery in new regions (59%)
  ‣ Warehouse space (54%)
  ‣ Distribution facility locations (51%)
  ‣ Logistics investments (45%)
  ‣ Labor (37%)

One caveat: The transition to same-day delivery introduces higher operational costs for most companies surveyed, who report the need for innovative pricing strategies to mitigate these expenses.

The bridge, spanning 1.6 miles, served as a lifeline for the Port of Baltimore, facilitating the movement of goods crucial to the region’s economy. Known as the busiest U.S. seaport for autos and light trucks, in 2023, the Port of Baltimore handled 52.3 million tons of foreign cargo, valued at nearly $81 billion, including a record 847,158 cars and light trucks, as well as 1.3 million tons of roll on/roll off farm and construction machinery, according to the Maryland Port Administration. It is also a busy hub for shipments of coal, petroleum products, and sugar. In total, roughly 30 to 40 container vessels call the Port of Baltimore every week, unloading or loading some 21,000 TEU (containers).

The port is also a key economic engine for the city and the state, directly employing more than 15,000 workers and indirectly responsible for nearly 140,000 more jobs in trucking, warehousing and other related industries. It generates nearly $2.6 billion in total business income.

While President Joe Biden has pledged federal support for rebuilding efforts, supply chain and manufacturing leaders are focused on the impact from the immediate disruptions, which include the initial need to remove the vessel and the collapsed bridge from the shipping channel. 

The resulting closure of the port now has logistics, transportation, supply chain, and manufacturing professionals preparing for the impact of disrupted service. With vessel traffic suspended and cargo stuck in limbo, manufacturers such as food giant McCormick & Co. and automakers General Motors and Ford are assessing operational impacts and rerouting shipments as necessary, notes Mirko Woitzik, Global Director of Intelligence for Everstream Analytics.

Cargo currently en route is being diverted to alternatives, which Woitzik reports “is expected to strain labor and handling capacities at nearby ports such as Philadelphia and Norfolk, leading to spill-over congestion and delays.”

Experts also say the incident underscores the vulnerability of global supply chains. “The disruption comes as geopolitical conflicts and natural disasters wreak havoc elsewhere. Shipping headed for the Suez Canal is being disrupted from attacks by Houthi rebels, while drought is limiting shipping through the Panama Canal. What’s more, industrial actions in some key ports, including in Australia and Finland, are adding to delays. All that is to say, it won’t take much to hobble supply chains and reinflate price pressures,” notes Harry Murphy Cruise, Economist, Moody’s Analytics. 

Supply chain managers need to act quickly, adds Andrei Quinn-Barabanov, Supply Chain Industry Practice Lead at Moody’s. “The tragic Key Bridge collapse will inevitably lead to delays in deliveries that go through the I-95 corridor between Washington DC and New York or through the Port of Baltimore. Supply chain managers who get their deliveries via either of these routes need to immediately accelerate orders that are likely to be affected. Speed of action is critical.”

The silver lining, if there is one? 

“Although many automotive manufacturers import parts through the Port of Baltimore, we expect that they will be able to reroute parts quickly through other ports to avoid lengthy factory line shutdowns,” say Ben Ruddell and Richard Rushforth, professors in the School of Informatics, Computing, and Cyber Systems at Northern Arizona University. And while they expect major supply chain delays due to this bridge collapse, they believe those delays “should be measured in days or weeks, not months. The abundance of alternative ports on the U.S. Atlantic provides redundancy and resilience and will expedite supply chain adaptation, limiting overall consequences from this disaster.” 

There are several reasons for the sharp year-over-year increase that could overstate this February’s results. Leap year occurred in 2024, adding one day of capacity in February. In addition, Chinese Lunar New Year occurred on February 11 this year versus January 22 in 2023, so February 2024 saw no impact on U.S. imports from China while February 2023 did. 

To gain more clarity on the year-over-year performance, Descartes analyzed TEU volume for the first 15 days in February of both years where there would be no impact from Chinese Lunar New Year. During this timeframe, the growth in container imports was 13.3%, which is much more representative.

Overall, Figure 1 shows that the first two months of 2024 are more in line with the consumer-fueled pandemic growth.

Figure 1: U.S. Container Import Volume Year-over-Year Comparison; Source: Descartes Datamyne™

February port transit times decreased on all coasts with East and Gulf Coast ports still experiencing the longest delays. The economy is still exceeding expectations, which indicates healthy import volumes; however, challenges with the Panama drought, Middle East conflict, and pending ILA contract negotiations at South Atlantic and Gulf Coast ports point to further trade flow disruptions in global shipping.