Breakbulk refers to the type of shipping of cargo or goods that cannot fit in standard-size bins or containers. This cargo is instead transported in bags, boxes, crates, drums, barrels, other handling equipment, or is simply rolled, lifted, or pushed onto a ship or barge.
Examples of common breakbulk goods include reels and rolls, steel girders, structural steel, heavy or oversized goods, manufacturing equipment, construction equipment and vehicles.
Then there is the shipping of liquids (think petrochemicals) that rely on tankers. In these post-pandemic times, when container shipping remains in a topsy-turvy state, some ports and terminals are seeing upticks in the breakbulk and liquid sectors.
ST. LAWRENCE SEAWAY
Heading into the 2022 navigation season, which began in March, operators within the St. Lawrence Seaway were . . . wait for it . . . buoyant. How could they be anything but, having come off a 2021 when the handling of iron ore was up 26.63% from the previous year and seeing 1,589,000 metric tons of iron and steel pass through represented a mind blowing 99.16% increase year-over-year.
The St. Lawrence Seaway, which is named after the river that flows 2,300 miles from Lake Ontario to the Atlantic Ocean, is a series of locks, canals and channels that are managed by the Canadian St. Lawrence Seaway Management Corp. and the U.S. Great Lakes St. Lawrence Seaway Development Corp. They market themselves together as “Highway H2O.”
Shippers and other maritime industry leaders will come together at the 17th annual Hwy H2O Conference, the only yearly event dedicated to St. Lawrence Seaway business development, which is scheduled for Nov. 15-17 at the Hilton Toronto Airport Hotel & Suites. This year’s theme is “Path to a Sustainable Waterway.” (Go to HwyH2O.com for more information.)
Attendees should be whooping it up because, by the time the 2023 navigation season begins, there is every indication the mood along Highway H2O will remain . . . here it comes . . . buoyed. Between the start of the shipping season and the end of July, the system moved 514,000 tons of grain, marking a nearly 37% increase compared to the same period in 2021. The increase was attributed to ongoing demand for U.S. grain amid food shortages caused by the conflict in Ukraine.
Hot grain helped offset seasonal cooling for liquid bulk (think petrochemicals), but so far this year, the St. Lawrence Seaway system’s ports have seen significant increases in general cargo, dry bulk, agricultural exports, renewable energy material imports, and iron ore and coal exports. This is critical in the region that includes eight U.S. states, two Canadian provinces and 107 million people who rely on the $35 million the system pumps into the economy annually. If the region was a country, it would have the third largest economy in the world with a GDP of $5.5 trillion.
“The Great Lakes Seaway marine transportation system is critical infrastructure,” says Craig H. Middlebrook, deputy administrator with the Great Lakes St. Lawrence Seaway Development Corp., “and remains vital to keeping commerce flowing without disruption in order to support North America’s agricultural, manufacturing, construction, energy, and mining industries.”
PORT OF CORPUS CHRISTI
Increases in crude oil and refined products exports helped the Port of Corpus Christi move a record 46.4 million tons in the Q2 and 90.1 million tons for the first six months of 2022, which are the most in a fiscal quarter and half year in the Texas institution’s 100-year history.
Keep in mind that these records fell shortly after the port announced tonnage records in Q1 and for all of 2021.
Corpus Christi, which also saw increases in the liquid natural gas (LNG) exports and dry bulk cargo imports in the latest tallies, is close to completing improvements that will make it the deepest and widest ship channel in the entire Gulf Coast.
The 52.4 million tons of crude oil shipments in the first half of the year represented a 12% increase over the same period in 2021, the previous record first half. Refined products amounted to 15.8 million tons, or a 26.6% jump year-over-year, the 3.9 million tons of dry bulk cargo represented a 21.5% spike, and LNG shipments soared 11 % to 8.1 million tons.
“These numbers are a testament to the role the Port of Corpus Christi and its industry partners play in the global marketplace, providing certainty in uncertain times,” says Charles W. Zahn Jr., Port of Corpus Christi Commission chairman.“With additional developing initiatives in hydrogen production and Carbon Capture Utilization and Sequestration, the future continues to look bright for the South Texas Coastal Bend and the great State of Texas.”
PORT OF NEW BRUNSWICK
The Georgia Ports Authority says the Port of Brunswick’s East River Terminal handled 902,000 tons of breakbulk cargo in 2021, while the Mayor’s Point Terminal took care of 88,380 tons of forest products last year.
This spring, the GPA announced plans to increase breakbulk capacity at both terminals. A third Brunswick terminal, Marine Port, also handles breakbulk.
The East River and Mayor’s Point improvements are part of a $150 million GPA project that also aims to increase vehicle handling at Brunswick’s deep-water auto terminal, Colonel Island. After the Port of Baltimore, Brunswick is the second busiest hub for roll-on/roll-off cargo in the U.S., having moved 650,000 units of vehicles and heavy machinery in 2021, a 10% increase over the previous year.
The project includes a fourth Colonel Island berth that will include a concrete deck and a system of mooring dolphins to extend ro-ro vessel berthing space from 3,355 feet to 4,630 feet. Completion is expected in late 2024.
“Home to more than 20 automaker brands, Colonel’s Island is poised to become the Southeast’s premier auto port,” says Joel Wooten, the GPA’s board chairman. “With more room to grow, better connections to inland markets, and an operation dedicated to ro-ro cargo, Colonel’s Island is the region’s busiest gateway for autos and machinery.”
The GPA is also adding 360,000 square feet of warehousing and 85 additional acres of land for auto processing, expanding the terminal’s annual capacity from 1.2 million to 1.4 million vehicles. The new pavement and buildings are to be completed next year.
Near-dock storage areas will be upgraded at Colonel Island to better accommodate heavy machinery used in agriculture, construction and warehousing operations, the GPA says.
Georgia’s deep-water ports and inland barge terminals support more than 496,700 jobs throughout the state annually and contribute $29 billion in income, $122 billion in revenue and $3.4 billion in state and local taxes to the Peach State’s economy.
Our List of the Top 50 Ports by Tonnage Reveals Some Surprises, Unsurprises & Some Un-Ports
At first glance, Global Trade’s latest list of top 50 power ports looks pretty much the same as last year’s. The same ports occupy the top 10 slots, although some switched places from year to year.
The greatest cluster of power ports among the top 20 remain in Texas and Louisiana, which is understandable considering the tonnage figures used to compile the list includes those that handle large quantities of both liquid bulk cargo (e.g., petroleum or chemicals) and dry bulk cargo (e.g., coal or grain) .
Indeed, that’s the modus operandi of the top three entrants on this year’s power ports list, which are respectively: the Port of Houston, Texas; the Port of South Louisiana in Reserve, Louisiana; and the Port of Corpus Christi, Texas.
However, comparing the top ports of 2022 and 2021, there are some surprises.
First, we must point out that our list is based on the U.S. Department of Transportation’s Bureau of Transportation Statistics 2020 data that was provided by the U.S. Army Corps of Engineers, Waterborne Commerce Statistics Center.
That’s the most recent power ports data available, but it of course means that we’re dealing with numbers that were skewed by the supply chain nightmare are caused by that two-headed beast known as the global pandemic and runaway consumer demand.
As a result, our latest list of power ports includes such strangeness as five ports losing significant cargo tonnage yet occupying the same slots as they did the previous year. Stranger still were the nine ports that increased tonnage but dropped in the rankings.
More reasonable was the fact that 20 ports experienced decreases in tonnage and their rankings. Eight others rose when it came to both.
Five new entrants were welcomed to our power ports list, their locations being in Pennsylvania, Alaska and, well, nowhere. Or, actually, Ohio/West Virginia, Illinois/Iowa/Missouri and central/north-central Illinois. See, these are not single physical ports but, according to the U.S. Army Corps of Engineers, “statistical ports,” which means … um… you’ll have to read on to figure that out.
What we can report is that our top 25 tonnage ports handled a total of 1,744 million tons of cargo—or about 71.3% of the tonnage handled by the top 100 ranked ports, which all together account for 95.5% of total tonnage handled by U.S. ports . That’s a lot of handling!
What follows are each of the top 50 power ports ranked in order, their ranking the previous year, their total tonnage for 2020 and how much that was up (+), down (-) or the same (=) as in 2019, according to the gubment.
All tonnage represents a mix of imported, exported and domestic materials. Ports within the first 22 that only handled domestic are indicated with an asterisk (*), while our entrant at No. 25 that dealt with domestic, and exports has two (**).
PORT OF VALDEZ U.S. FISH & WILDLIFE SERVICE
1 Port of Houston
Previous year: 1
Total tons: 275.9 million
(-9 million)
Yeesh, think of the ports that would love to have the 9 million tons Houston lost year-to-year. And yet, Houston remains number one, no doubt because it’s one of the world’s largest ports, benefitting as it does from its proximity to the Gulf of Mexico and sprawling public and private facilities that stretch more than 50 miles.
2 Port of South Lousiana
Previous year: 2
Total tons: 225.1 million
(-12.9 million)
Yowzah, think of the ports that would love to have Houston’s lost tonnage and South Louisiana’s near 13 million tons of buh-bye. Yet it remains the Avis of port tonnage thanks to remaining America’s grain exporting leader.
3 Port of Corpus Christi
Previous year: 4
Total tons: 150.8 million
(+39.6 million)
It’s amazing that you add nearly 40 million tons—which is more than each port at No. 16 and below took in for the year—and only move up one spot on the list. “The Energy Port of the Americas” is the country’s second largest exporter of crude oil and is strategically located next to some of the largest Texas highways.
4 Port of New York and New Jersey
Previous year: 3
Total tons: 123.7 million
(-12.9 million)
Making the Corpus Christi leap even more stunning is the fact that had NY/NJ maintained its 136.6 million tonnage from 2019, it still would have dropped to No. 4. But don’t bet against the busiest container port on the East Coast as about a third of all U.S. GDP is produced within 250 miles of it.
5 Port of New Orleans
Previous year: 6
Total tons: 81.1 million
(-11.1 million)
You also can’t discount the Big Easy’s multimodal gateway, which combines rail, river and road and is on the Mississippi River and near the Gulf of Mexico. Plus, you may open yourself up to a voodoo spell.
6 Port of Long Beach
Previous year: 7
Total tons: 79.2 million
(-1.5 million)
Here is one of those cases where a port lost some tonnage year-to-year but still managed to move up in the rankings. Known in recent times for ships anchored off the Southern California coast awaiting berths, Long Beach has a broader reputation for handling cargo that is worth $200 billion+.
7 Port of Greater Baton Rouge
Previous year: 8
Total tons: 71.7 million
(-1.7 million)
Plopped at the convergence of the Mighty Mississippi and Gulf Intracoastal Waterway, the port serves The Heartland via 15,000 miles of inland water transportation. Like Long Beach, it dropped some tonnage but rose in the rankings.
8 Port of Beaumont
Previous year: 5
Total tons: 70.6 million
(-30.5 million)
The Texan port handles bulk grain, aggregate, liquid petroleum, forest products, military equipment cargo, metals—you name it. Seriously, please name it; “The Beau” was down 30 million+ tons, fer crying out loud. That’s too big a hit not to drop three spots on our list.
9 Port of Los Angeles
Previous year: 9
Total tons: 59.5 million
(-3.5 million)
And here is an example of a port that lost tonnage but not its slot on our rankings. You expect that from the busiest seaport in the Western Hemisphere, handling everything from avocados to zinc and the alphabet soup of diverse commodities in between.
10 Port of Virginia
Previous year: 10
Total tons: 58 million
(-3.7 million)
The Norfolk port is another one that lost tonnage/maintained its position. Of course, things could change given Virginia is uniquely poised on the East Coast to accommodate ultra-large container vessels thanks to 55-foot-deep channels.
11 Port of Mobile
Previous year: 12
Total tons: 53.2 million
(-3.7 million)
It was a down year/better ranking for the Alabama port, the only such deep-water facility along the Mobile River. Better things could be ahead thanks to direct access to about 1,500 miles of inland and intercoastal waterways that put everywhere from the Great Lakes to the Gulf of Mexico in play.
12 Plaquemines Port Harbor & Terminal
Previous year: 13
Total tons: 46.8 million
(-6 million)
We’re like you, Alabama neighbor: down year/ranking hike! Nestled on the Gulf Coast and mouth of the Mississippi River, the Louisiana port provides water-based access to some 33 U.S. states.
13 Port of Savannah
Previous year: 15
Total tons: 43.5 million
(+1.6 million)
That’s more like it: A port that grows in tonnage and the rankings. Georgia Ports Authority’s crown jewel is one of America’s fastest growing container ports thanks to its easy reach to Atlanta, Birmingham, Charlotte, Memphis, and Orlando.
14 Port of Lake Charles
Previous year: 11
Total tons: 43.1 million
(-14.9 million)
Ouch! A nearly 15-million-ton hit is enough to drop the deep-water Louisiana seaport three notches on our list. But, again, being strategically perched at the center of the Gulf Coast could change things quickly.
15 Port of Port Arthur
Previous year: 19
Total tons: 41.2 million
(+7.3 million)
Not even the superfluous second “port” in the name could stop the Texas two-stepper from adding 7 million+ tons from the previous year and moving up four slots on our list. Of course, being based on the Sabine Neches Waterway, 19 miles from the Gulf of Mexico, doesn’t hurt.
16Port Freeport
Previous year: 23
Total tons: 38.7 million
(+8.9 million)
Dare we say we’re in the middle of a Texas trend? Because the nearly 9 million more tons from our previous list helped the port move up a whopping seven slots. Watch year back, Port of Port Arthur, because a $295 million Port Freeport upgrade is expected to bring ever more larger vessels to a waterway on track to be deepened and widened by 2025.
17 Mid-Ohio Valley Port District
Previous year: not ranked
Total tons: 35.9 million* (NR)
You could say Mid-Ohio Valley sprang onto our list out of nowhere because it did not officially exist until the U.S. Army Corps of Engineers approved the new “statistical port” in 2021. This port has no physical assets but is instead a way to aggregate freight data from the Ohio and West Virginia sides of the Ohio River. Whatever you consider Mid-Ohio Valley, it is likely to become the largest inland port by freight tonnage.
18Port of Baltimore
Previous year: 14
Total tons: 35.2 million
(-9 million)
Boasting the deepest harbor in Maryland’s Chesapeake Bay, the port had been benefitting greatly from accepting larger vessels since the 2016 expansion of the Panama Canal. But a drop of 9 million tons moved Baltimore down four spaces.
19 Ports of Cincinnati-Northern Kentucky
Previous year: 18
Total tons: 34.5 million* (-2.1 million)
The inland port complex covers 226.5 miles of commercially navigable waterways on the Ohio River and Licking River. The drop of just over 2 million tons could be a COVID blip for the 70 “barge and in charge” active terminals.
20 Port of Texas City
Previous year: 16
Total tons: 33.7 million
(-7.6 million)
PORT OF MOBILE ALABAMA PORT AUTHORITY
Although it’s not the largest Texas port, it’s very close to the largest (Houston). Losing more than 7.5 million tons year-to-year is obviously significant for smaller ports. But in this instance, we’re talking about a vital trading hub for crude oil imports and the export of gasoline, diesel, jet fuel, chemicals, and petroleum coke.
21 Port of Metropolitan St. Louis
Previous year: 21
Total tons: 30.5 million* (-800,000)
A slight drop in tonnage and no change in the rankings for the second-largest inland port system in the States. Ol’ St. Louie spans 6,000 acres, two states (Missouri and Illinois) and lies along 15 miles of Mississippi River frontage.
22 Port of Huntington-Tristate
Previous year: 17
Total tons: 29.7 million* (-7.1 million)
Those “tri” states would be Kentucky, Ohio, and West Virginia, which benefit from America’s most influential inland port sitting along prime country on the Ohio River. What the three amigos don’t benefit from is a hit of 7 million+ tons from year-to-year, accounting for a five-spot slide in our rankings.
23 Port of Philadelphia
Previous year: 39
Total tons: 28.5 million
(+12.2 million)
The numbers don’t lie as an impressive gain of 12 million+ tons year-to-year vaults PhilaPort into the top 25 and legitimizes its boasts of being the fastest growing port in the country.
24 Tampa Port Authority
Previous year: 22
Total tons: 28.5 million
(-1.5 million)
Think this is just the place you drop off your grandparents for their anniversary cruise? Think again: It’s also Florida’s largest cargo tonnage port and is flanked by a million square feet of warehouse space and 40-acre container yard. The 1.5 million fewer tons in 2020 from 2019 cost two places on our list.
25 Port of Valdez
Previous year: 26
Total tons: 25.1 million (+100,000)
Alaska makes it into the top 25 with America’s farthest north ice-free port. Port of Valdez is also the southern terminus of the Trans- Alaska oil pipeline that handles more than 1.5 million barrels of crude oil a day. Anyone who’s freaked out at the pumps lately knows that’s precious cargo.
26 Port of Duluth-Superior
Previous year: 20
Total tons: 25 million
(-8.6 million)
Losing more than 8.5 million tons year-to-year caused the twin Ports of Duluth, Minnesota and Superior, Wisconsin, to drop six spots in the rankings. Located at the western part of Lake Superior, these are the farthest inland freshwater seaports in North America.
PORT OF NEW ORLEANS GNOVIK/WIKIPEDIA COMMONS
27 Port of Charleston
Previous year: 27
Total tons: 24.9 million
(+300,000)
A small tonnage increase did nothing to the year-to-year ranking for this South Carolina Ports facility. Charleston serves as a vital transit hub for many essential industries in the region, including automotive manufacturing, consumers goods, frozen exports, grain, and tire manufacturing.
28 Port of Indiana
Previous year: 43
Total tons: 24.7 million
(+12.5 million)
What a difference a year makes in a few ways. First, this spot was listed as Port of Indiana-Burns Harbor last year. Now it’s Port of Indiana (Northern District). More stunning is an increase of 12.5 million tons to vault the port that is based in the largest steel-producing region of North America up 15 slots on our list.
29 Jackson County port Authority
Previous year: 25
Total tons: 23.1 million
(-2.7 million)
Known as Port of Pascagoula on last year’s list, this deep-water port on the southeastern coast of Mississippi lost in tonnage and ranking from year-to-year. The port’s east and west harbors are each home to several public and private cargo terminals.
30 Port of Seattle
Previous year: 29
Total tons: 23 million (=)
Founded in 1911 and now one of the largest container terminals on the West Coast, the port dropped one slot despite its tonnage remaining equal year-to-year. Hmm, wonder how its Puget Sound partner on the Northwest Seaport Alliance did?
31 Port of Tacoma
Previous year: 31
Total tons: 21.6 million
(+100,000)
Well, look here: Seattle’s partner had a slight increase in tonnage and maintained the same ranking. By the way, the alliance is considered the fourth largest container gateway in the country.
32 Port of Richmond
Previous year: 24
Total tons: 21.1 tons
(-7.4 million)
Northern California’s most diversified cargo handler—thanks to its expansion into dry bulk, break-bulk and containerized cargo handling—was riding higher on last year’s list, helped no doubt by being the San Francisco Bay Area’s top port in vehicle tonnage. But a nearly 7.5 million tonnage decrease cost Richmond eight slots on our list.
33 Port of Portland
Previous year: 32
Total tons: 20.7 million
(+1.3 million)
Grain, minerals, forest products and automobiles are the most common types of cargo passing in and out of Oregon’s largest port, which handled 1.3 million tons more year-to-year but still somehow dropped a rank.
34 Port Everglades
Previous year: 28
Total tons: 20.4 million
(-3.6 million)
Meanwhile, over on the opposite coast, Florida’s so-called “powerhouse port” dropped more than 3.5 million tons year-to-year to move down six slots on our list. The Greater Fort Lauderdale/City of Hollywood region counts on $34 billion in economic activity from the port annually.
35 South Jersey Port District
Previous year: 34
Total tons: 20.3 million
(+1.9 million)
What was known on last year’s list as the Port of Paulsboro, New Jersey, gained nearly 2 million tons but dropped one spot. Situated on the Delaware River and around 80 miles from the Atlantic Ocean, the port’s key commodities include crude oil, petroleum products and asphalt.
36 Port of Oakland
Previous year: 33
Total tons: 19.4 million
(+100,000)
Here’s another that gained, albeit slightly, but dropped three rungs on our list. Founded in 1927, the busy Northern California seaport is equipped with an array of commercial buildings and industrial parks, as well as an airport.
37 Port of Kalama
Previous year: 36
Total tons: 18.1 million
(+1.1 million)
Um . . . are we in the middle of a trend? Because here is another port that increased tons and lost a slot in the rankings. Just 30 minutes north of Portland, Oregon, but within the state of Washington, the Port of Kalama prides itself on being a business-friendly haven, with no state corporate or personal income taxes levied.
38 Port of Jacksonville
Previous year: 35
Total tons: 16.7 million
(-1 million)
Florida’s largest container port and one of the nation’s most prominent vehicle handling sites, JAXPORT made the funny papers earlier this year when Gov. Ron DeSantis invited shippers to leave impacted ports on the coasts for Sunshine State counterparts with open berths. Increases in traffic are obviously not reflected on this power ports list—quite the opposite.
39 Port of Pittsburgh
Previous year: 30
Total tons: 15.5 million
(-6.3 million)
The southwestern Pennsylvania port and its 203 terminals took a sizable 6.3 million tonnage hit year-to-year to cost it nine spots on our list. Pitt is a hugely important transit hub for coal.
40 New Bourborn Port Authority
Previous year: not ranked
Total tons: 15.5 million (=)
Forty years in the making—the port authority was created in 1982 but construction of the physical port three miles south of St. Genevieve, Missouri, did not begin for another three decades—New Bourbon handling 15.5 million tons justified its founders’ forecasts of increased cargo on the Mississippi River and placement on this list.
41 Mid-America Port Commission
Previous year: 44
Total tons: 15 million
(+3 million)
The largest port district on the Upper Mississippi and Illinois rivers serves 26 counties across Illinois, Iowa and Missouri and is flanked by three Class 1 railroads and four regional airports. That may explain the jump in tonnage and ranking spots for the so-called statistical port.
42 Illinois Waterway Ports
Previous year: not ranked
Total tons: 14.9 million
(=)
One good statistical port deserves another. By the way, Nos. 41 and 42 on this list are also marketed as being part of a larger selection of waterways collectively known as Corn Belt Ports. What the shuck? Yes, it’s true. Illinois Waterway Ports refers to those in the central and north-central parts of the Land of Lincoln.
43 Port of Two Harbors
Previous year: 37
Total tons: 13.5 million
(-3.4 million)
Two Harbors is a port city in Minnesota, where a nearly 3.5 million cut in tonnage cost six spots on our list. Located at Lake Superior, Two Harbors’ claim to fame is having the oldest operating lighthouse in the state, and the light keeper’s quarters are now a B&B.
44 Port of Boston
Previous year: 40
Total tons: 13.3 million
(-2.7 million)
A less than 3 million dip in tonnage cost more than three (four, actually) spots on our list. Boston Harbor’s seaport is the largest port in Massachusetts, with facilities dedicated to bulk cargo, petroleum, and LNG shipment and storage.
45 Port of Honolulu
Previous year: 41
Total tons: 12.3 million
(-2 million)
Honolulu also took a 2 million tonnage hit that cost four ranking levels. The state’s principal seaport handles containers, dry and liquid bulk, breakbulk cargo, passenger, and fishing vessels.
PORT OF HOUSTON BUSINESS WIRE
46 Port of Galveston
Previous year: 47
Total tons: 11.9 million
(+900,000)
A nearly 1 million tonnage increase moved Galveston up a power port slot from year-to-year. Did you know this is one of the older Texan ports, beginning as a trading post in 1825 and since growing to more than 850 acres in size?
47 Port of Longview
Previous year: 50
Total tons: 11.1 million
(+1.4 million)
A nearly 1.5 million tonnage hike allowed the Washington state port to move up three slots from the previous rankings. Operating since 1921 along the banks of the Columbia River, Longview specializes in fertilizers, grain, heavy-lift cargo, logs, lumber, minerals, paper, pulp, and steel. In other words: heavy duty.
48 Port of Vancouver USA
Previous year: 46
Total tons: 10.2 million
(-800,000)
Hey, remember reading Nos. 30 and 31 on this year’s list? Good times—and it was another example of what we have here: back-to-back Washington state ports. However, unlike Longview, Seattle, and Tacoma, which either increased or maintained tonnage, Vancouver experienced a drop in weight and ranking. Established in 1912, this port specializes in wheat, mineral and liquid bulks, vehicles, and other cargos.
49 Port of Cleveland
Previous year: 45
Total tons: 9.4 million
(-2.5 million)
What’s billed as the premier port of the Great Lakes took a 2.5 million tonnage hit year-to-year that caused Cleveland to drop four ranking notches. It’ll be back as half of U.S . households and manufacturing plants are within an eight-hour drive.
50 Port of San Juan
Previous year: 48
Total tons: 9.3 million
(-1.1 million)
The capital of U.S. territory Puerto Rico has experienced economic and Mother Nature knocks in recent years, which likely explains the drop in tonnage and ranking year-to-year. Half of the port’s piers service passenger ships and half are for cargo vessels.
Recent studies indicate companies are moving toward eventually having more robots than flesh- and-blood employees. Google Cloud research shows two-thirds of manufacturers who use artificial intelligence in their day-to-day operations say that their reliance on AI is increasing, while a report from Price Waterhouse Coopers predicts that by the mid-2030s, up to 30% of jobs could be automated.
“Interestingly, like Industry 5.0, Supply Chain 5.0 also will have to
rely heavily on collaborative robots (cobots) and need to combine human creativity and ingenuity along with the productivity, speed, and consistency of robots to improve the customer experience,” writes Prabhat Khare, director of KK Consultants, in his recent report “The Great Reset & Future of Supply Chain Management.”
“The rise of Society 5.0 may also give that extra push needed by
Supply Chain 4.1 at this stage of transformation,” Khare continues.
“While this next generation of supply chain solution is still in the
making, deploying Industry 5.0 technology and amalgamating the
current learning of COVID-19 period with JITSCM 4.1 will certainly lead to development of a new way of handling future supply chains.”
Want to see these robots in action? Go to Pittsburgh, the home
of Seegrid, whose autonomous mobile robots (AMRs) are capable
of moving materials in warehouses and manufacturing sites completely autonomously. Equipped with stereo cameras and machine learning smarts, the AMRs are designed to “see just like humans do,” enabling them to navigate dynamic environments–lifting up to 10,000 pounds of goods.
Seegrid began taking customer orders in April for its newest
autonomous lift truck, Seegrid Palion Lift. Equipped with the
most advanced generation of the company’s proprietary autonomy
technology, Palion Lift is billed as the only lift truck in the market with industry-leading 3D perception.
Named to Fast Company’s prestigious list of the World’s Most
Innovative Companies for 2022—placing No. 4 globally in the robotics category—Seegrid has fast company in Pittsburgh’s robotics industry.
That’s where you will find IAM Robotics, the world’s first mobile
picking robot application, and Gather AI, the planet’s first software-only autonomous inventory management platform for modern warehouses.
Of course, supply chain robotics is not confined to the home of the
NFL’s Steelers. A 4 ½-hour drive from Pittsburgh, outside the only
Pennsylvania city that is larger, Philadelphia, is Malvern, the home of
Rajant Corp. The pioneer of Kinetic Mesh wireless networks, Rajant’s ES1-2450CS and ES1-5050CS can be integrated inside robots and automated machines.
“Obstructions, which typically hinder connectivity, such as shelving
and equipment, are a non-issue for Rajant,” boasts Geoff Smith, the
company’s vice president of Sales and Marketing.
Whether you want to study at home or abroad, and/or in English or another language, there are numerous master-degree programs aimed at global trade professionals.
For our purposes, we have identified intriguing educational opportunities, first in the U.S. and then around the world.
DOMESTIC PROGRAMS
Lamar University
Beaumont, Texas
Master of Science in Port and Terminal Management
Lamar’s Department of Industrial Engineering, College of Engineering and College of Business have teamed with port and marine terminal leaders to offer port-management courses. The university claims its Master of Science degree program in Port and Terminal Management is unlike any other in the world. It’s aimed at working professionals in the public port and private marine terminal industry seeking to advance and enhance their careers by studying under field experts and scholars within the Southeast Texas Neches River ports and conducting cutting-edge waterfront community research.
Texas A&M University-Galveston
Galveston, Texas Master of Maritime Business Administration & Logistics
The university, which was founded in 1876, claims its Master’s in Maritime Business Administration and Logistics “places students in a prime position for successful leadership roles within the field of maritime business administration.” Coursework came about through experienced experts having shared the latest advances within the industry. Students can pursue an online degree or an on-campus track that offers a license option, a five-year combined undergraduate-graduate program or a thesis option.
Maine Maritime Academy
Castine, Maine Masterof Science in Maritime Management
To be perfectly honest, we prefer this degree program’s other name: Master’s & Commander. Whatever you call it, the degree combines two programs: Small Vessel Operations and International Logistics Management. And students can also earn their U.S. Coast Guard Mate Less Than 200 Gross Tons, Near Coastal or Inland license as well as Maritime Port Manager certification from the International Association of Maritime and Port Executives. International logistics involves studying the process of planning and managing the movement of goods and products in a company’s supply chain from one point to another—and across at least one international border—until reaching the consumer. It must be noted that while a substantial portion of studies can be done online, some on-campus coursework is also required.
State University of New York Maritime College
Bronx, New York
Master of Science in International Transportation Management
The SUNY graduate program offers these five tracks: business of shipping; global transportation security; international logistics; marine insurance; or research in international logistics and shipping. But students can also select from a vast array of elective courses that cover liner and tramp shipping, port operations, international trade, economics, insurance, law and other topics so they may may design a track tailored to their specific needs and interests. Options include: a 34-credit, online, on-campus or hybrid degree program that involves four core courses, six electives and one culminating capstone course; a 40-credit, in-person only program that includes an Advanced Certificate in Supply Chain Management with the completion of four core courses, five supply-chain management courses, three electives and the culminating capstone; and a 96-credit, hybrid program that includes the 34-credit master’s degree as well as a U.S. Coast Guard third mate license. While the courses may be completed online, the license includes 62 credits at the undergraduate level that must be done on-campus.
American Public University
Charles Town, West Virginia
Master of Artsin Transportation and Logistics
Conducted through APU’s Dr. Wallace E. Boston School of Business, the accredited online program teaches advanced logistics skills and technologies needed to manage enterprise-level manufacturing, shipping, retail, security, emergency management and disaster relief. Students are provided a higher-level examination of the principles, policies and trends in air, maritime and ground transportation; supply chain optimization; security; and sustainability. Portions of the program were developed in partnership with the U.S. Merchant Marine Academy Global Maritime and Transportation School.
INTERNATIONAL PROGRAMS
Rotterdam University of Applied Sciences
Rotterdam, Netherlands, Rotterdam, Netherlands
Master of Science in Shipping & Transport
The one-year, full-time, English-language program will, according to the university, “give you an excellent opportunity to improve your skills in business administration in the maritime and logistics field.” Students will acquire in-depth knowledge of shipping management, economics and finance, logistics management and transport laws & policies. The program “guides students to make the link between understanding the fundamental maritime and transport concepts, tools and techniques and to apply them effectively and successfully in real-life situations,” boasts RU. “We practice a genuine ‘Rotterdam hands-on and make-things-happen’ approach, which is our distinctive strength.”
Netherlands Maritime University
Rotterdam, Netherlands
Part-time Master of Science in Shipping and Transport
This 27-month, fully English program, which is aimed at shipping and transport management professionals, provides a multidisciplinary view on maritime, port, transport and logistics issues and complex management problems. Consisting of four core modules with various courses and a final module that is dedicated to thesis research, the program flips online learning on its head. Three-hour classes that are held two nights a week are expected to be completed on-campus. And every five or six weeks there is a full Friday of excursions or simulations. Your off hours can thus be devoted to your day job which, unless it’s real close to Rotterdam, will have to be performed online, from your student housing. When you’re not working, in class or off on an excursion, you are expected to discuss, analyze and share thoughts about your coursework with fellow students. Welcome to the brave new virtual world!
University of Bamenda
Bamenda, Cameroon
Professional Master in Transportation, Shipping Management & Logistics and Supply Chain Management
The two-year, English-language, on-campus program is under the umbrella of the university’s Higher Institute of Transport and Logistics, whose departments include General Studies, Customs, Land Transport, Maritime Transport and Transit and Logistics. The degree program covers Transportation and Logistics, Shipping Management, Logistics and Supply Chain Management and, besides courses, students must complete an internship and dissertation.
Bureau Veritas Business School
Alcobendas, Spain
Master in Shipping Business Administration & Logistics
This program is aimed at business people, naval engineers, civil engineers and other port and maritime professionals who want to conduct their studies online and in Spanish. (How’s that for niche programming?) “The primary objective of the course is to achieve a comprehensive knowledge of the management of maritime and port companies,” states Bureau Veritas , “as well as to develop the skills and capacities necessary to know how to analyze the maritime port, and logistics company from a managerial point of view.”
Established in 1980 to meet the needs of a newly deregulated domestic transportation market, Armstrong & Associates provides unparalleled third-party logistics market research. With offices smack dab in Middle America (Milwaukee and Madison, Wisconsin, to be precise) and a newsletter that is emailed to more than 88,000 subscribers globally, A&A, as the hep cats call it, churns out market estimates found in media accounts, trade publications (like you-know-who) and securities filings by publicly traded 3PLs,
One thing consumers of A&A’s research gobble up every year is the Top 25 Global Freight Forwarders List. The 2021 version (see accompanying chart) includes rankings based on 2020 gross revenue and freight forwarding volume.
Once again, DHL, Kuehne + Nagel, DB Schenker, DSV Panalpina, Sinotrans, Expeditors and Nippon Express take the power positions, but there are also new entrants: Apex Logistics International and CTS International Logistics.
Wherever your company falls (or does not fall) on the list, it is important to consider that we are (fingers crossed) coming out of unprecedented times in the ocean freight shipping game. A shipping container shortage led to a massive spike in freight rates. Of course, during the height of the pandemic, production and trade halted, leaving ocean carriers in limbo—and many are still trying to regain their sea legs.
Yes, the busiest trade routes are humming again. The Long Beach/Los Angeles port complex experienced a 23% spike in volume in December 2020 compared to the previous year and, despite the pandemic, the second busiest December in their history. On the opposite coast, the ports of Charleston, South Carolina, and Savannah, Georgia, also dealt with massive influxes in traffic.
Ports that did not share in that success can at least take solace in knowing congestion has created fresh headaches for the industry leaders. Maersk and MSC have pulled certain carriers from their regular rotations in the short term. Timing shipments, so products can navigate through offshore parking lots and reach store shelves in time for the holidays, has become the sweet science.
Meanwhile, many shippers say they’re operating at losses to meet their global customers’ demands. Keep in mind this is at a time when investing much more into that magic bullet known as digitization is all the rage. The aforementioned Maersk is using technology to streamline freight booking, particularly spot booking. CMA CGM, Yang Ming Marine and Hapag-Lloyd also introduced freight booking tools. And artificial intelligence (AI) is growing as a major force in global shipping.
Here comes another headache: The reliance on tech increases the risks of cyberattacks.Since 2017, nearly half of the top 10 freight carriers worldwide were victims of digital security breaches, including a $300 million loss from Maersk due to a ransomware cyberattack.
While noble, sustainability efforts create another money-sucker for ports and logistics companies. The freight shipping industry represents approximately 2.2% of all global greenhouse gas emissions, which expected to rise by 50% by 2050 if action isn’t taken. Carriers are doing their part by switching to more environmentally friendly fuels, such as liquified natural gas (LNG). Around 13% of new vessels ordered this year are LNG fueled, becausea clean planet = priceless.
ARMSTRONG & ASSOCIATES 2021 TOP 25 GLOBAL FREIGHT FORWARDERS LIST
* Ranking also factors in a forwarder’s air cargo shipments by metric tons.
** Revenues and volumes are company reported or Armstrong & Associates, Inc. estimates. Revenues have been converted to US$ using the average annual exchange rate in order to make non-currency related growth comparisons. Freight forwarders are ranked using a combined overall average based on their individual rankings for gross revenue, ocean TEUs and air metric tons.
Moments after leading a press conference to herald the opening of the Long Beach Container Terminal at Middle Harbor on Aug. 20, Port of Long Beach Executive Director Mario Cordero is chatting up a certain magazine editor who asks if the $1.5 billion facility will speed up offloading the convoy of cargo vessels currently anchored off the California coast awaiting berth slots.
“That’s the hope,” says the ever-congenial Cordero before he recalls a recent phone call between his wife and a friend who resides down the coast in upscale Newport Beach.
“Let me speak with your husband,” the friend demanded, and after Cordero got on horn she sternly asked, “What are you doing about all these ships in the water? They’re an eyesore!”
Ensuring beautiful, unobscured views for coastal residents is not normally found in seaport chief’s job description, but the ever-resourceful Cordero had an answer for the refined lady:
“You know how to make the ships go away? Stop shopping.”
Click.
Naturally, the Fashion Island shopping sprees have not ended any sooner than everyone else’s retail therapy, virtual or otherwise. Even before a global pandemic jolted the supply chain, ports around the planet were in the expanding and modernizing mode, especially with the arrival of ever-larger cargo vessels and the need to move more goods by on-dock rail due to concerns about truck emissions and dwindling driver rosters.
The thing about being competitive is . . . there is always someone else being competitive. Already responsible for 2.6 million direct and indirect jobs across America, the Port of Long Beach has stepped up its game with a 300-acre, completely electric terminal that can handle up to 3.3 million twenty-foot equivalent units (TEUs) and by itself would rank as the sixth busiest container port in the country.
While truly spectacular to behold—as you will discover if you read to the end—the LBCT, as the hip kids call it, is but one of many port enhancement projects happening around the world. What follows are just some—with estimated price tags that would even raise a Neiman Marcus shopper’s manicured brow.
South Carolina port expansions
$985 million (and another $5 billion likely on the way)
To open the first terminal in the nation since 2009, crews in North Charleston, South Carolina, dealt with challenging site conditions, waterways, motorists and even . . . gulp . . . bombs. That’s because the Hugh K. Leatherman Terminal occupies a former naval base that was used as an airfield during World War II, opening up the possibility of previously undetonated ordnance going “BOOM!” on former training grounds.
It’s full speed ahead for Leatherman as entities up and down the East Coast scramble to expand port capacity to accommodate larger ships from the widened Panama Canal. The new terminal includes a 1,400-foot berth and yard that can accommodate 19,000 TEU ships, with a capacity of 700,000 TEUs, for the Port of Charleston. Five ship-to-shore cranes that were delivered in 2020 are now the tallest in South Carolina.
At full buildout, Leatherman will have three berths, cover 286 acres of area and include about 3,500 linear feet of marginal wharf, with a channel depth of 52 feet. Ultimate capacity will be 2.4 million TEUs, or roughly double what the deepest water port on the East Coast previously handled. After welcoming its first container on March 30 and first ship on April 9, Leatherman helped its port attain record numbers in May and be honored the following month as the 2021 South Carolina Project of the Year by the American Society of Civil Engineers’ state section.
Meanwhile, the port authorities of South Carolina and Georgia are negotiating to jointly operate a $5 billion terminal in Jasper County, South Carolina. Operating on a 1,500-acre site that’s 8.5 miles downstream from Garden City, Georgia, the Jasper Ocean Terminal would have the capacity to transfer 8 million TEUs a year and meet the Southeast’s cargo demand through at least mid-century. The Washington Post recently reported that Jasper would create 900 direct jobs with an estimated $81 million payroll, 1 million high-paying jobs nationwide between 2040-50 and $9 billion in revenue for the two states. South Carolina State Sen. Tom Davis (R-Beaufort), who has been working on the project for nearly 20 years, recently put it best when he told the Hilton Head Island Packet, “This makes all the economic sense in the world.”
Georgia Ports Authority Peak Capacity project
$525 million
With the Port of Savannah seeing a 25 percent increase in TEUs handled in July, its Garden City Terminal breaking container trade records for nine out of the past 10 months by that time, the Port of Brunswick experiencing a 39 percent jump in auto and machinery units passing through in July (with ro-ro records of its own in four out of the 10 months)—and demand expected to just keep rising through the end of the year—expansion is required merely to keep up.
Which explains GPA expediting its Peak Capacity project to add 700,000 TEUs over two phases beginning this fall. Then, in March 2022, a Garden City Terminal chassis storage facility will open on a 25-acre parcel along Georgia State Route 21. The expansion wagon rolls on in 2023, when improvements of Berth 1 at Garden City Terminal are expected to be completed and 92 more acres of land will be added to up capacity by 750,000 TEUs.
The berth project, which also includes the purchase of eight new ship-to-shore cranes, will allow the Port of Savannah to simultaneously serve four 16,000-TEU vessels as well as three additional ships. Rail lift capacity is expected to double to 2 million TEUs annually thanks to the Mason Mega Rail Terminal project at a port that already handled 9.3% of total U.S. containerized cargo volume and 10.5% of all American containerized exports in fiscal year 2020.
Expansion cannot come soon enough for GPA Executive Director Griff Lynch, who last spring remarked, “Right now, we are moving container volumes that we did not expect to see for another four years.”
Tanzanian ports’ expansion and creation
$500 million+ (and another $10 billion possibly on the way)
During Xi Jinping’s maiden foreign tour shortly after he became China’s president in March 2013, he and then-Tanzanian President Jakaya Kikwete watched over the signing of a framework agreement between the East African nation and China Merchants Holdings International. Under terms of the deal, China’s largest port operator would build a new $10 billion port in Bagamoyo, which is about 47 miles north of the thoroughly congested Dar es Salaam Port, Tanzania’s largest.
However, negotiations stalled—until the country’s current President Samia Suluhu Hassan said during a recent gathering of the Tanzania National Business Council, “Regarding the Bagamoyo Port project, let me give you the good news that we have started talks to revive the whole project.”
If what is currently planned at Bagamoyo comes to pass, that port would dwarf the Port of Mombasa, which is nearly 320 miles to the north in neighboring Kenya and is currently East Africa’s main gateway. But Dar es Salaam Port has steadily undergone expansion and modernization that is also aimed at overtaking Mombasa. Work has included the strengthening and deepening of seven berths, including a ro-ro terminal that has already allowed the Tranquil ACE Panama to call with 3,743 vehicles aboard. Expanding and dredging the ship entrance channel, turning circle and harbor basin are expected to be completed soon.
Tanzania Ports Authority, which oversees Dar es Salaam, also has strengthening, deepening and construction going on at the ports of Mtwara and Tanga. A new port in Karema is due for completion in March 2022 and, in addition to Bagamoyo, the government is exploring building new ports in Mbamba-bay, Manda and Matema.
Port of Virginia dredging, widening and more
$350 million
Growing business at the Port of Virginia in Norfolk set the stage for the project that includes dredging commercial channels that serve the Norfolk Harbor to accommodate super-size cargo vessels as well as widening channels to allow for two-way traffic.
The port is also doubling capacity at the Norfolk International Terminals railyard and aiming to become Virginia’s wind industry hub by leasing 70 acres of land at its Portsmouth Marine Terminal to Dominion Energy. Portsmouth is to be used as a staging space to deploy equipment for building massive wind turbines by Dominion, which plans to build its $7.8 billion Coastal Virginia Offshore Wind farm 27 miles off Virginia Beach’s coast with 180 giant propellers.
The Port of Virginia work “speaks directly to our customers, the ocean carriers,” port spokesman Joe Harris tells reporter Elizabeth Cooper in an Aug. 30 Virginia Business article. “In two years, you are going to be able to bring in bigger ships and bigger ships with more cargo.”
Port of Antwerp’s Europa Terminal expansion
$304.6 million
To keep up with rising demand, the Port of Antwerp authority in 2010 approved a 15-year, 1.6-billion-euro investment plan that would capitalize on a shuttered General Motors factory. And by the end of this year, the first phase of the three-phase, nine-year Extra Container Capacity Antwerp (ECA) project begins with a goal of optimizing existing capacity.
Upon completion, expansion of the port’s Europa Terminal will allow two mega-max ships to operate simultaneously. That terminal’s current, 1,200-meter quay wall will be completely demolished, and the adjacent front quay will feature new flooring, shoreside power hookups and the installation of large container cranes.
“Containers are the most important segment at our port and a growth segment in the world; our yearly figures in 2020 prove this once again,” Port of Antwerp spokesman Lennart Verstappen recently told Port Technology. “And the trend toward more containers for transporting goods will only continue. This deepening is in line with our ambition to continue to grow as a port in a sustainable way and will contribute toward maintaining our position as a world port.”
Port Freeport Harbor Channel Improvement Project
$295 million
For an example of how government works slowly, we travel to Texas, where widening and deepening the channel at Port Freeport received initial congressional approval in 2014. The final chunk of joint funding arrived thanks to a 2018 voter initiative. And just when you thought the project was languishing, Port Freeport became one of two seaports nationwide to receive a “new start” designation in February 2020 for commencement of construction.
The ceremonial groundbreaking for the Freeport Harbor Channel Improvement Project was finally held this past April 8—and not a moment too soon. The region’s ongoing industrial expansion fueled by the production of shale oil and gas, as well as the port’s proximity to fast-growing populations, necessitated late inning fast-tracking. The project should prolong Freeport’s status as a leader in the export of crude oil, natural gas liquids and chemicals as well as the create more jobs (279,780, per a 2019 Economic Impact Study by Texas A&M Transportation Institute) and total economic output ($149 billion; ditto).
Widening and deepening for today’s mega-fleets will take about five years to complete, which will coincidentally coincide with the 100th anniversary of Port Freeport being created by the voters of Brazoria County, who in 1925 recognized the importance of diverting the Brazos River so the region would have a reliable, deep-water port for the movement of commerce. “I am grateful to those who had the bold vision and fortitude to divert the Brazos River to give this area a deep-water port advantageous for economic prosperity,” says the port’s CEO Phyllis Saathoff, who obviously recognizes it takes a village and leadership when she adds, “Now it is our turn to deliver the deep-water port for future generations. . . . Our region will greatly benefit from this project, as well as our local, state, and national economies.”
Port of Baltimore dredging
$122.1 million
These days, you don’t see members of opposite parties shaking hands let alone rubbing elbows (thanks, COVID). But Maryland’s Republican Governor Larry Hogan and the nation’s Democratic Transportation Secretary Pete Buttigieg came together on July 29 to marvel at the recently expanded and improved upon Helen Delich Bentley Port of Baltimore.
Thanks to dredging operations completed in April to create a second, 50-foot deep container berth at Seagirt Marine Terminal, the port will be able to accommodate two ultra-large ships simultaneously by the end of this year. The project was hailed for receiving the kind of bipartisan support that the Biden administration was seeking at the time for the $4.5 trillion infrastructure plan that the House narrowly passed in late August.
As Buttigieg toured the port’s Dundalk Marine Terminal, Hogan remarked, “Truly, you could not have picked a better stop for your first port visit as transportation secretary, and your visit could not be more timely.”
Buttigieg noted that the infrastructure bill had a “blue-collar blueprint,” citing the example of the expansion of Baltimore’s Howard Street Tunnel to accommodate double-stacked rail cars moving cargo to and from the port and improving capacity from Charm City to rail lines along the entire East Coast. “So much of what we buy and sell is flowing through ports like the one we’re at right now,” he said. “Top of the line machinery, made in America.”
Like the Baltimore project, the Jacksonville Port Authority (JAXPORT) improvements at Blount Island, where 700 linear feet of newly rebuilt deep-water berthing space was added, are the result of a public-private partnership. JAXPORT and SSA Atlantic are also making yard improvements and deepening the harbor.
Upon completion, the facility will feature two newly reconstructed 1,200-foot-long container berths capable of simultaneously accommodating two post-Panamax vessels. The berths are electrified to handle a total of 10 state-of-the-art environmentally friendly electric-powered 100-gauge container cranes, including three currently in use.
“These projects all work together to maximize Jacksonville’s logistics advantages for our customers and bring more jobs and business to Northeast Florida,” says Eric Green, CEO of the Sunshine State’s largest container port that’s also one of the nation’s top vehicle-handling ports.
Port of Long Beach Middle Harbor Redevelopment Project $1.5 billion
Under skies that were unusually dark and cloudy for summer in Southern California, Cordero, the Port of Long Beach executive director, manned a podium facing what appeared to be as many TV news cameras as breathing beings.
“Here we have the Amazon state of mind,” he says. “And what does that mean? Create efficiencies, reliability and in the age of e-commerce, obviously consumers expect things tomorrow, and the supply chain is in a full-court press to create greater efficiencies. So certainly, for us at the Port of Long Beach, it was well worth the investment of $1.5 billion for what you see here this morning.”
As if on cue, Cordero is upstaged by unmanned cranes, gantries and vehicles ever so diligently moving cargo containers off the massive COSCO Andes that is docked behind him.
“Efficiency is everything,” Anthony Otto, the LBCT’s CEO, says during his trip to the podium. “We designed the yard so that we can move more TEUs per acre.” While a traditional container terminal typically handles 6,000 to 8,000 TEUs per acre, LBCT can process 12,000 to 15,000 TEUs per acre. “It makes us, the Port of Long Beach and every link in our supply chain more competitive,” Otto says.
The terminal includes a container yard, an administration building and an on-dock rail yard designed to handle 1.1 million TEUs annually and minimize truck traffic on local roads and freeways. Additionally, 14 of the most modern ship-to-shore gantry cranes line a new, 4,200-foot-long concrete wharf capable of welcoming three massive ships at once.
“By any measurement, be it berth productivity, be it speed of trucks through our gates or the velocity of our rail system, which is the largest in North America, we have definitely set the bar for our industry,” Otto says. “Additional capacity means more cargo, which means more supply chain jobs, which means a strengthening of our regional and national economy. More land, more cranes, more berth capacity, just more of everything needed to better service the goods movement industry and to maintain the Port of Long Beach as the preferred gateway into the United States.”
He later alluded to the sight that irked that Newport Beach lady. “If you notice the ships that are anchored off shore, this additional capacity is badly needed right now. Trade is strong, and the capacity that we are adding here is really something that’s coming just in the nick of time.”
Col. Robert Sinkler is the new Water Resources Infrastructure director at The Heart of Illinois Regional Port District, which is branded as TransPORT. The retired commander of the U.S. Army Corps of Engineers Rock Island District says that after establishing the Illinois Waterway as a U.S. Port Statistical Area by the U.S. Waterborne Commerce Statistics Center, his second priority is “getting Global Trade Magazine to recognize the Illinois Waterway as a ‘Top 50 U.S. Power Port’ in their annual port rankings.” (Sir, yessir!).
Michael Andaloro has ascended to CEO of BDP International, replacing Richard J. Bolte Jr., who will remain as chairman of the board for the privately held global logistics and transportation solutions company. BDP also promoted Nina Olatoke to vice president, Global Diversity, Equity and Inclusion, a newly created role for the Philadelphia-based company.
San Diego, California-based Airspace, a leader in time-critical shipping, promoted SVP Alex Coates to chief financial officer while Ruan has promoted Marty Wadle to chief commercial officer and Chad Willis to chief transformation officer overseeing Information Technology, Operations Support Services and the Extended Operations Center. The Des Moines, Iowa-based logistics leader also welcomed Sofia Samuels as VP, Marketing and Communications. More Ruan news (sadly) ends our column.
Minneapolis, Minnesota-based logistics giant C.H. Robinson snagged Arun Rajan to become chief product officer. BlueGrace Logistics, which is headquartered in Riverview, Florida, announced that Chief Commercial Officer Adam Blankenship has been added to the Digital LTL Council, which is comprised of more than 20 industry-leading Less-than-Truckload transportation providers, logistics service providers, shippers, technology providers and organizations.
The Export-Import Bank of the United States (EXIM) Board of Directors has appointed Heidi Heitkamp, a former U.S. senator (D-North Dakota) and the founder of the One Country Project that aims to reconnect Democrats with rural voters, the chair of its 2021-22 Advisory Committee. The EXIM board also selected James (Jim) P. O’Brien, a partner with Baker & McKenzie LLP, to chair the 2021-22 Sub-Saharan Africa Advisory Committee.
Speaking of EXIM, its former VP of Economic Security and Operations is now the executive director of the Alexandria, Virginia-based International Wood Products Association. Before EXIM, Bradley McKinney was chief of staff for the International Trade Administration at the Commerce Department.
Wood Dale, Illinois-based Optimas Solutions, a global industrial manufacturer/distributor and service provider, elevated COO Daniel Harms to president of Optimas Americas. Harms and Optimas International President Mike Duffy are also new members of the corporate board.
Samantha Galltin has replaced Kenneth W. Duncan as managing director of the Port of Long Beach (California) Commercial Operations Bureau, which comprises the Business Development, Tenant Services and Operations and Security Services divisions. Meanwhile, Carlo Luzzi has become the acting director of Tenant Services as the port recruits for that role.
Massimo Messina has been appointed vice president of Mergers & Acquisitions at Crowley Maritime Corp. He will be based in the maritime, energy and logistics company’s Jacksonville, Florida, office.
Brett Parker has joined Charlotte, North Carolina-based EDRAY, The Collaborative Port Logistics Platform, as chief commercial officer.
We end on a couple of sad notes: The Ruan family of companies is mourning the loss of Chairman Emeritus John Ruan III. He was 78. Dennis Rochford, a World Trade Center Delaware board member, also passed away. He was 73. RIP, gentlemen.
How hot is intermodal right now? Total volumes rose 20.4% year-over-year in the second quarter of 2021, according to the Intermodal Association of North America (IANA) Intermodal Quarterly report.
International containers gained 24.8% from 2020; domestic shipments, 15.7%; and trailers, 18.5%, according to the Calverton, Maryland-based association’s report, which also found that intermodal volumes not only grew for the fourth consecutive quarter in Q2, but the double-digit gain was the largest quarterly increase since Q3 of 2010 as well as the sixth quarter with a double-digit growth rate in the history of the data.
“What is noteworthy is the breadth of the gains,” said Joni Casey, president and CEO of IANA, before September’s IANA Expo in Long Beach, California, where the Q2 surge was a source of industry optimism. “With one or two exceptions, the three market segments showed positive performance in all of IANA’s 10 regions.”
Trans-Canada led with a 29.6% total growth increase, followed by the Southeast-Southwest at 28.9% and the Midwest-Northwest at 26.6%. The Intra-Southeast likewise posted a 25.9% increase; the South Central-Southwest, 24.5%; and the Midwest-Southwest, 21.8%. The Northeast-Midwest came in at 20.9%.
“Freight volumes are expected to slow but experience steady q/q growth into 2022,” forecasts the 2021 Second Quarter Intermodal Quarterly report. “For 2021 as a whole, truck loadings are forecasted to be 7% higher than 2020 levels.”
Freight demand pressures, the end of consumer stimulus infusions and unemployment supplement and the ongoing surge in small new trucking companies have complicated matters, according to the report. “Intermodal remains highly competitive with trucking due to very high rates and tight driver supply.
This situation will likely continue at least into early 2022, however, could be affected by a quicker stabilization in the trucking market, as reflected by a peak in truck spot metrics.”
Managing the ups and downs of intermodal transport is greatly assisted by the IANA, whose roster includes more than 1,000 members from railroads, ocean carriers, ports, intermodal truckers and over-the-road highway carriers, intermodal marketing and logistic companies, and suppliers to the industry. (Learn more at intermodal.org.) But at the hyper-local level, economic development corporations (EDCs) also play a role in keeping freight trains rolling. Below are six cities meeting intermodal challenges with the help of their EDCs.
MILLERSBURG, OREGON
The Albay-Millersburg Economic Development Corporation estimates that 81% of the exported agricultural products from the Mid-Willamette Valley of Southern Oregon are loaded onto ships at the Seattle and Tacoma ports, with the remainder exported from ports in Long Beach (8 percent) and Oakland (3 percent), California.
Complicating the flow of produce is traffic congestion near Portland, Seattle, Tacoma and farther down Interstate 5 into California.
However, like an oasis of calm sits Millersburg, which allows agricultural producers in the region to consolidate their products efficiently and avoid bumper-to-bumper nightmares altogether. To that end, the Linn Economic Development Group (LEDG), which is an affiliate of the Albay-Millersburg EDC, is constructing the Mid-Willamette Valley Intermodal Center (MWVIC) in Millersburg.
The town of around 2,000 people just happens to be where the Union Pacific Railroad mainline, BNSF’s Portland Western Railroad and I-5 come together. The MWVIC was made possible by passage of the state’s Keep Oregon Moving legislation, which appropriated $25 million toward development.
The intermodal center will include a main office, parking lot, space for about 100 trucks to park overnight, amenities for truck drivers, capabilities to handle domestic and international containers, track space for inbound and outbound trains, a 60,000-square-foot storage warehouse and docks to support reloading and transloading onto rail, with capacity for longer-term storage of product.
Agricultural producers and train operators are not the only beneficiaries of the project. Shippers will now have the option of choosing the best transportation alternative for each individual load. The LEDG estimates that under full utilization, private transportation cost savings will total $2.1 million per year.
But the public should turn out to be the biggest winner. Reducing the number of trucks on the highways would lower maintenance costs, reduce congestion, improve air quality and decrease carbon emissions—while the MWVIC at the same time increases jobs and local spending.
ALLENTOWN, PENNSYLVANIA
The Norfolk Southern Allentown Rail Yard is among the railroad’s largest facilities, but only a few of the 200 manufacturers in the Pennsylvania town transport goods by rail. The Allentown Economic Development Corporation would like to change that. Saying of the yard “we’re very fortunate to have it,” Scott Unger, executive director of the Allentown EDC, says he and his team are pulling out all the stops to increase rail usage.
Pennsylvania’s Bureau of Rail Freight administers a special grant program called the Rail Freight Assistance Program that provides financial assistance to companies that are interested in bringing a railroad spur directly to their property for freight shipments. The goal of the grant program is to preserve and stimulate economic development through new and expanded rail service.
Also hoping the state incentive program lights a fire under local manufacturers is the R. J. Corman Railroad Co., LLC, which owns 11 Class 3 short line railroads in the Mid-Atlantic and the South, as well as the R. J. Corman Allentown Rail Yard.
“Products that are ideal for transloading include palletized commodities which can be loaded and unloaded in a boxcar,” explained John Gogniat, director of Commercial Development for R. J. Corman. “In addition, products such as lumber or steel that can be unloaded with a forklift are ideal candidates. That said, we are open to entertaining any potential commodity and will develop a mutually desirable solution for its loading and unloading.”
Gogniat notes that Allentown’s strategic location provides access to Philadelphia, Scranton, York, Harrisburg, Wilmington, New York and beyond.
WILKES COUNTY, NORTH CAROLINA
The North Carolina Department of Transportation’s Rail Industrial Access Program also uses state funds to help construct or refurbish railroad spur tracks required by a new or expanding company. Program funding is intended to modernize railroad tracks to ensure effective and efficient freight deliveries.
Many companies taking advantage of the incentive are located in Wilkes County, which was established in 1777 and is still known today as a mecca for outdoor recreation, small-town living . . . and a big business mentality.
Consider the Yadkin Valley Railroad, which offers Wilkes County businesses rail access to ship their products into the Ronda and Roaring River areas. Operating out of the Winston-Salem area and hauling 11,500 carloads per year with freight, Yadkin joins G&O’s short line railroads, which offer connections to CSX and Norfolk Southern, in figuring into the logistical operations of Charlotte Regional Intermodal Facility.
Wilkes County Economic Development Corporation will point businesses to other local and state incentive programs to improve rail access—dependent on the applicant’s potential to create new jobs and invest capital in the region. The aim is to get companies to locate or expand in North Carolina versus another state.
“The North Carolina Railroad Company partners with the state’s economic development community and railroads on initiatives designed to drive job creation, freight rail use and economic growth,” reads an EDC release. “Through NCRR Invests we evaluate requests for investments to address the freight rail infrastructure needs of companies considering location or expansion in the state.”
But Wilkes County does not live by rail alone, as the EDC also trumpets a location that is close to major freeways and interstates, two international airports (Charlotte Douglas and Piedmont Triad) and three major East Coast ports (Wilmington, North Carolina; Norfolk, Virginia; and Charleston, South Carolina).
NEW YORK, NEW YORK
An ambitious program was born out of congestion, pollution and unconnected cargo transportation options in the Big Apple. Freight NYC aims to expand the use of rail and water to move food, building materials and other goods that are normally trucked in from outside the five boroughs.
“Freight NYC will better equip New York City to meet 21st-century demand by modernizing the city’s freight infrastructure, reducing truck traffic and improving air quality, while creating nearly 5,000 good-paying jobs in the process,” says James Patchett, chief executive of the New York Economic Development Corporation. “This plan is a win-win for our environment and economy.”
The city would invest as much as $100 million in the program that would include a 500,000-square-foot distribution center on the site of the Brooklyn Army Terminal, adjacent to the New York New Jersey Rail carfloat hub, as well as a new air cargo center near John F. Kennedy International Airport in Queens.
Private participation in a $20-30 million barge terminal on five acres of land owned by the city in Hunts Point, a major distribution crossroads for produce in the Bronx, is also part of the multimodal plan.
Small rail freight yards on a line through Brooklyn and Queens, where goods would be transloaded to smaller vehicles for final delivery, is also envisioned.
DECATUR, ILLINOIS
When you think of the granddaddy of rail operations in the Midwest, you think of Chicago. That’s part of . . . heck, the main problem, according to Nicole Bateman, president of the Decatur Economic Development Corporation and executive director of the Midwest Inland Port. The Windy City is not only the nation’s busiest rail freight gateway, it’s the third-largest intermodal container/trailer port in the world, following Singapore and Hong Kong, according to the Illinois Department of Transportation.
What comes to mind when you think about freight, Singapore and Hong Kong? Congestion. As such, shippers on both ends of the supply chain need alternatives to Chicago—which is where Decatur (as Bateman’s fingers cross) comes in.
Located 160 miles southwest of Chicago, Decatur is now being propped up by its EDC and the Midwest Inland Port as a distribution transportation center, which is fed not only by four railroads but easy access to interstates and airports. The port association is utilizing public-private partnerships to capitalize on Decatur’s geographic location, while the EDC seeks to make the city Illinois’ designated downstate freight transportation hub as a way to relieve rail and highway congestion in Chicago.
Users of the Midwest Inland Port have experienced savings in freight transportation costs and significant reduction in transit times, Bateman recently told American Shipper.
SEGUIN, TEXAS
Talk about strategic locations, Seguin sits alongside Interstate 10 and the banks of the Guadalupe River, with San Antonio a mere 35 minutes to the west, Austin only 55 minutes north and Houston about 2 ½ hours to the east.
Besides the easy access to I-10, Seguin also connects to State Highway 130, which it bills as “the safe, fast and reliable alternative to congested Interstate 35 in Central Texas.” Two international airports (San Antonio and Austin-Bergstrom) and two deep-water ports (Houston and Corpus Christi) are an hour of so away.
But perhaps the biggest jewel in the close proximity crown is Union Pacific’s San Antonio Intermodal Terminal (SAIT), a $100 million state-of-the-art facility designed to support the growing intermodal volume in southern Texas. The expansive facility is designed to handle 250,000 annual container lifts as it serves markets across South Texas.
If that hasn’t sold you, allow the Seguin Economic Development Corporation to work its magic. The EDC helps guide businesses through the maze of available loans, grants and tax breaks from the city, county and state. To hear the EDC tell it, finding applicants should be no sweat considering Seguin’s “easy access to four of the United States’ largest consumer markets, allowing manufactures to get their products to millions of consumers, all within a five-hour drive.”
For part three of our tech-focused feature, Global Trade identified industry players who confronted challenges with the help of technological partners. Our case studies are arranged by the categories Global Trade covers on the regular, including ocean carriers, ports, trucking, and warehousing. Read part one here and part two here.
Challenge: Enhancing operations and market share for refrigerated shipments
Problem Solver: Carrier Transicold of Palm Beach Gardens, Florida
Solution: PrimeLINE refrigeration units
In an attempt to gain new operational advantages and efficiencies for its refrigerated shipping operations, Atlantic Container Line (ACL) began acquiring 150 new containers equipped with Carrier Transicold PrimeLINE refrigeration units in May. The cube-shaped, 40-foot-high containers, which help preserve and protect food, medicine and vaccine supplies, have been put into service on trade routes between the U.S. and western Europe.
“With its energy-efficient performance, the PrimeLINE refrigeration unit is a perfect complement for our fleet, which includes some of the world’s largest, most fuel-efficient and environmentally responsible roll-on/roll-off containerships,” says Maurizio Di Paolo, Corporate Liner Equipment Department manager, with the Naples, Italy-based Grimaldi Group that includes ACL in its portfolio.
Carrier’s Lynx Fleet digital platform monitors the cold-chain containers, although Di Paolo says that “is only the beginning” when it comes to providing benefits to the shipping line. “We are especially looking forward to the advantages that come with refrigeration unit health analytics and the subsequent efficiencies for our maintenance and repair operations,” he said at the containers’ roll out.
Lynx Fleet includes integrated telematics and a cloud-based architecture to ensure information is always up to date; a data management platform that provides enhanced visibility on the health and status of a fleet’s refrigerated containers, reducing operational costs and maintenance & repair expenses related to conducting new off-line pre-trip inspections; as well as platform accessibility from anywhere via smartphone, tablet or computer, through an interactive user-friendly, digital dashboard. The ACL units will also utilize Carrier’s Micro-Link 5 controller, the first and only one in the industry with wireless communication capability, providing greater memory, processing power and connectivity compared to standard controllers.
“We are pleased to support ACL’s modern fleet with our latest container refrigeration technology, which is designed to improve fleet efficiencies and help control operating costs,” says Kay Henze, Carrier’s account manager.
The deal with ACL was sealed a month after Carrier announced that SeaCube Containers LLC of Woodcliff Lake, New Jersey, became the first intermodal equipment leasing company to incorporate Lynx Fleet into its fleet, with an initial deployment of 2,000 PrimeLINE units.
“This is an exciting step forward for SeaCube as we move toward realizing our vision of telematics as a standard within our reefer fleet,” SeaCube CEO Bob Sappio mentioned at the time. “We are confident that the Lynx Fleet offerings will help drive improvements in our own operating metrics and resonate with our customers to help them achieve optimal reefer performance and act on data-driven insights.”
Challenge: Advancing the port’s ambitious Clean Air Action Plan
Problem Solvers: Toyota Motor North America of Plano, Texas; Kenworth Truck Co. of Kirkland, Washington; Shell Oil Products US of Houston, Texas, and multiple stakeholders
Solution: Hydrogen fuel cell electric freight vehicles and stations
North America’s leading seaport by container volume and cargo value, the Port of Los Angeles facilitated $259 billion in trade during 2020 and remained open with all terminals operational throughout the COVID-19 pandemic. The port currently has 18 projects under way aimed at achieving clear air, clean water and sustainability.
Under an $82.5 million Shore-to-Store project, the port has teamed up with Shell, Toyota, Kenworth Truck Co. and several other public and private-sector partners for a 12-month demonstration of zero-emissions Class 8 trucks. The project—which rolls into a larger-scale, multiyear demonstration that is designed to advance the port’s Clean Air Action Plan goals—is designed to assess the operational and technical feasibility of the vehicles in a heavy-duty setting.
Kenworth designed and built the trucks that rely on a fuel cell electric system designed and built by Toyota. Of course, these vehicles need places to refuel, so Shell designed, built and will operate two new high-capacity hydrogen fueling stations in Wilmington, which is 7 miles from the port, and Ontario, which is 60 miles inland. The vehicles’ duty cycles will consist of local pickup and delivery and drayage near the port and short regional haul applications in the Inland Empire.
“Transporting goods between our port and the Inland Empire is the first leg of this next journey toward a zero-emissions future,” said Port of L.A. Executive Director Gene Seroka during a demonstration in June. “This project is a model for developing and commercializing the next generation of clean trucks and cargo-handling equipment for the region and beyond. Just as the air we breathe extends beyond the port’s footprint, so should the clean air and economic benefits we believe this project will yield.”
Further expansion of the project will include five more hydrogen-fueled heavy-duty trucks, two battery-electric yard tractors and two battery-electric forklifts, whose feasibility under the rigorous demands of the Southern California market will be studied by the partnership. They will also measure the reduction of nitrogen oxide, particulate matter, greenhouse gas emissions and other pollutants.
“Shell believes hydrogen offers a promising solution to achieving net-zero emissions both in terms of immediate improvements of local air quality as well as meeting long-term climate goals, especially for heavy-duty vehicles and for long-distance travel,” says Paul Bogers, Shell’s vice president, Hydrogen. “That’s why we are working with truck manufacturers, fleets, governments and others to coordinate hydrogen infrastructure investments in high-traffic freight areas like the Port of Los Angeles, Port of Long Beach, the Los Angeles basin and the Inland Empire.”
Paramount Transportation Logistics Services (PTLS), which is part of the R+L Global Logistics family of companies, provides comprehensive logistics and transportation management services, including warehousing, distribution, asset-based truckload and LTL services in North America as well as freight forwarding globally. Having embarked on a strategic technology initiative to enhance broker efficiency, improve carrier engagement and expand the provision of real-time shipment information for customers, Paramount performed a detailed examination of companies to consider as a platform partner. Trucker Tools won the pony.
“Trucker Tools checks three principal capability boxes for us,” explains Mark Funk, Paramount’s director of Capacity Procurement. “The first is automated, real-time, GPS-based location tracking, which gives us reliable shipment updates every 15 minutes. Second is predictive freight matching, which automates finding available trucks, and makes it easier for truckers to book with us. By digitizing this process, we also cut the time and cost to cover a load by over 50 percent, increasing the number of loads our team can secure.”
Trucker Tools’ multi-functional, multi-party mobile driver app and its wide adoption among the truckload community also factored into Paramount’s decision, Funk added. “Carriers are our customers, too,” he noted. “Importantly, we can leverage a common mobile app, familiar to thousands of independent truckload operators and small fleets, to access a much deeper pool of capacity and improve how we do business with them.”
The Trucker Tools mobile app, which is available for both Android- and Apple-powered smartphones, is provided free of charge to independent truckers and small fleets with 10 or fewer vehicles, which together account for 90 percent of truckload market carriers, according to the company.
“We are excited to welcome Paramount to our growing community of over 300 brokers and 3PLs adopting Trucker Tools as their strategic partner for digital freight management,” says Prasad Gollapalli, founder and chief executive of Trucker Tools. “We truly see ourselves as an integral partner in our customers’ continuous journey to leverage emerging technology, improve how they engage with carriers and provide ever more sophisticated and valuable services to their customers.”
Challenge: Improving job safety, comfort and the pool of potential warehouse workers
Problem Solver: Phantom Auto of Mountain View, California
Solution: Remotely operated forklift
It takes a lot of thinking to be a multi-dimensional supply chain operations with a direct presence in 67 countries, a global network spanning 120 countries and business rankings of No. 1 in France, No. 6 in Europe and No. 7 worldwide. And so, it was a thinker at GEODIS who came up the idea of operating warehouse forklifts remotely.
Think about it, the thinker, who is a GEODIS manager, thought: Such an operation would: (1) reduce injuries and increase overall safety in warehouses; (2) lower the number of people physically inside warehouses to enhance worker comfort; (3) create new future-proof remote operator jobs that can be carried out within an office environment; (4) allow the hiring of individuals who may have physical disabilities restricting their use of traditional forklifts, as well as individuals from other historically underrepresented demographics; and (5) allow for recruitment from regions outside of where warehouses are located, including areas of higher unemployment.
Call that a win-win—with a win-win-win on top!
To make this happen, the GEODIS thinker took his idea to a GEODIS think tank that concluded . . . We need help. La première étape (“step one;” finally, my seventh-grade French class pays off) was to find a worthy forklift maker. Deuxième étape (step two; oui-oui!) was to locate the technological know-how to make the contraption work remotely.
For the forklift, GEODIS did not have to look far. Germany’s Linde Material Handling GmbH, a KION Group company that manufactures forklift trucks and warehouse trucks globally, has a French subsidiary called Fenwick-Linde. But for the tech, GEODIS had to look west—waaaaaay west to the U.S. West Coast, where one finds Silicon Valley and Phantom Auto.
The Fenwick forklift combined with Phantom’s secure, network-agnostic and interoperable remote operation software now enables remote workers to “drive” the vehicle, unlocking efficiency and equipment utilization gains. For example, one remote worker can operate multiple forklifts at a number of warehouses at different times of the day, all from one secure, central location. Keep in mind that giant GEODIS has warehouses all over the world.
“Phantom Auto’s technology enables dynamic balancing of workforce allocation, safer warehouses, enhanced worker well-being, and employment opportunities to those who otherwise could not physically drive forklifts,” says Stéphanie Hervé, GEODIS’ chief operating officer, Western Europe, Middle East & Africa. “This innovation will be of benefit to the wider community and indicates the future of logistics operations. We believe that technology should serve people, and that is what this partnership with Phantom Auto illustrates.”
We began this story with market research, so let us conclude with StartUs Insights’ recent report that was based on an analysis of nearly 800 startup businesses and identified a number of Industry 4.0 technological trends. The top 10 are:
artificial intelligence, 16 percent; human augmentation and enhanced reality, 13 percent; edge, fog and cloud computing, 11 percent; network and connectivity, 11 percent; advanced robotics, 10 percent; Internet of Everything, 10 percent; big data and analytics, 9 percent; 3D printing, 8 percent; security, transparency and privacy, 7 percent; and digital twin, 5 percent.
Considering that report for The International Air Cargo Association, TIACA Director General Glyn Hughes noted that each trend StartUs Insights identified affects his members. While an email he recently sent to members is strictly tailored to his industry, his words actually apply to all the companies and problem-solvers cited in this article and beyond.
“We have all moved on and technology has been leading the way forward and will continue to do so,” Hughes writes. “Future success will be determined by those who identify, embrace and capitalize on new opportunities.
“In that regard, the air cargo industry will also need to embrace these new opportunities. Many of these are already heavily influencing air cargo operational efficiency and a number of new solutions and industry best practices have resulted. When it comes to innovation, digitalization and technological implementation . . . it is very true to say that standing still is actually moving backwards.”
For part two of our tech-focused feature, Global Trade identified industry players who confronted challenges with the help of technological partners. Our case studies are arranged by the categories Global Trade covers on the regular, from 3PLs and e-commerce to intermodal and air cargo logistics.
Please be aware that each category could have had many multiple case studies. Therefore, we do not want to leave the impression that only the best of the best are represented. We felt it better to spread the coverage around to different types of tech challenges and solutions. Do you have your own special story that could have been reported here? Please continue sharing it with us. Read part one here.
Problem Solver: SEW-Eurodrive Canada of Brampton, Ontario, Canada
Solution: Industry 4.0 Laboratory
SEW-Eurodrive, which specializes in geared motors, frequency inverters, controls and software to individual drive solutions, has been headquartered in Bruchsal, Germany, since its founding in 1931 as Süddeutsche Elektromotorenwerke(SEW).
However, the company’s facilities around the world include the North American corporate offices, SEW-Eurodrive Inc. in Lyman, South Carolina, and SEW-Eurodrive Canada that is about a half hour from Toronto.
Humber College and SEW-Eurodrive are now at about the mid-point of a five-year partnership to prepare students for Industry 4.0 technologies, a critical aspect of advanced manufacturing, with training, applied research and future career opportunities. The centerpiece of the partnership with the college is the SEW-Eurodrive’s first-ever Industry 4.0 laboratory in North America. Focused on automated guided vehicles (AGVs), mobile worker assistants and connected automation equipment, the SEW-Eurodrive Industry 4.0 Live Laboratory is in Humber’s Barrett Centre for Technology Innovation.
The lab opened in 2018 after a $4 million+ investment in SEW-Eurodrive technology, $125,000 to establish new scholarships and a commitment to have students intern at the company’s Canadian locations and be considered for permanent employment at those facilities after graduation.
“At SEW-Eurodrive, we see great value in investing in Humber students,” says Anthony Peluso, SEW-Eurodrive Canada’s chief operating officer, “and providing the opportunity for students to develop the skills and gain the practical experience that today’s employers demand.”
Challenge: Digitize its rail transport division fleet
Problem Solver: Nexxiot AG of Zurich, Switzerland
Solution: IoT technology
Jaeger Bernburg is actually a group of medium-sized companies that offers a wide range of different services in the construction industry, with a focus on transport infrastructure and civil engineering. They are primarily active in railroad construction and managing a large number of vehicles adapted to deliver related services.
“Our company is pursuing an ambitious digitalization strategy,” explains Christian Koch, Jaeger Bernburg’s local operations manager. “To achieve this, it was important for us to rely on a system that is maintenance-free as well as one that enables precise monitoring of the mileage of our fleet.”
The collaboration with Nexxiot, which began in April 2020, has relied on equipping the rolling assets with IoT technology to make the monitoring of mileage and other real-time data communication possible. The entire Jaeger Bernburg fleet is now equipped with Nexxiot sensor gateways called Globehoppers.
“The technology enables us to ensure that our vehicles are maintained in accordance with European regulations and that we always have an overview of the operating performance,” Koch says. “This allows us to optimize our processes and automate the collection and evaluation of data.
“We can deliver our vehicles to construction sites more efficiently because we know where they are at all times. This prevents unnecessary shunting and saves CO2 emissions. We also improved our support for our own employees, especially with regards to their working processes. We now provide them with critical information for improved transparency and fact-based decision-making in real time.”
Nexxiot, which was founded in 2015, now operates more than 122,000 Globehoppers globally, with connected assets having traveled a combined total of more than 2.5 billion miles.
“Our goal is to achieve a five percent reduction in total global cargo CO2 emissions by shifting freight traffic from road to rail and optimizing routes,” says Nexxiot CEO Stefan Kalmund. “Enabled by our technology, every mile saved contributes towards this goal.”
LAST-MILE
Company: Walmart of Bentonville, Arkansas
Challenge: Expand and improve deliveries between distribution centers and customers
Problem Solver: Flytrex of Tel Aviv-Yafo, Israel
Solution: Drones
Two years after announcing a pilot-less program (get it?) focused on food delivery from a distribution center to a recreational area in North Carolina, Walmart recently revealed an expansion of drones over the Tar Heel State.
Flytrex drones had been soaring along fixed routes over unpopulated areas, but the Israeli company and the giant retailer recently received a Federal Aviation Administration permit to deliver to homes. The service is mainly for detached, single-family homes with front and back yards and within 3.5 miles of the Walmart distribution center in Fayetteville.
Causey Aviation Unmanned actually operates the 6.6-pound drones that were manufactured by Flytrex and will hover about 65 feet up in the air before lowering to the ground with a tethered device.
When it comes to incorporating technology into the business, Walmart Senior VP, Customer Product, Tom Ward repeats the words of founder Sam Walton, who went to that Big Greeter Stand in the Sky in 1992: “I have always been driven to buck the system, to innovate, to take things beyond where they’ve been.”
Ward claims, “It remains a guiding principle at Walmart to this day. From being an early pioneer of universal bar codes and electronic scanning cash registers to our work on autonomous vehicle delivery, we’re working to understand how these technologies can impact the future of our business and help us better serve our customers.”
Of course, Walmart is not alone in last-mile air space. Kroger has a drone delivery program flying the friendly skies of Centerville, Ohio, UPS has been making unmanned commercial flight deliveries for more than a year, and Amazon has famously been running pilotless pilot programs around the globe for some time.
Despite the near space race, Ward urges caution. “We know that it will be some time before we see millions of packages delivered via drone,” he says. “That still feels like a bit of science fiction, but we’re at a point where we’re learning more and more about the technology that is available and how we can use it to make our customers’ lives easier.”
Somewhere, Sam Walton is smiling.
“At the end of the day,” Ward says, “it’s learnings from pilots such as this that will help shape the potential of drone delivery on a larger scale and, true to the vision of our founder, take Walmart beyond where we’ve been.”
Problem Solver: Seegrid, Corp. of Pittsburgh, Pennsylvania
Solution: Autonomous mobile robots (AMRs)
A Whirlpool manufacturing plant can crank out a new washing machine every 10 seconds. That can present challenges as humans, product materials and automation don’t always get along well with one another. Think heavy machinery whirring, forklifts whizzing by and, oh yeah, a global pandemic racing through your workforce.
Whirlpool managed to better the situation with the introduction years ago of automated guided vehicles (AGVs), which replaced the repetitive movement of items by workers from point A to point B. There are, however, drawbacks with AGVs: they possess minimal on-board intelligence and can only obey simple programming instructions. They are guided by wires, magnetic strips or sensors, which typically require extensive (and expensive) facility upgrades. While they can detect obstacles in front of them on their fixed routes, they cannot navigate around these obstacles, even if that obstacle is living and breathing.
Though AGVs do what people did before them, manufacturing plants still require humans . . . from a labor pool that seems to be getting smaller and smaller. Hoping to get ahead of that challenge, Whirlpool set the spin cycle for “Seegrid,” which specializes in autonomous mobile robots (AMRs) that navigate via maps that their software constructs on-site or via pre-loaded facility drawings.
The AMRs also utilize data from built-in sensors, cameras and laser scanners to detect their surroundings and chose the most efficient route to their destination. Working completely autonomously, an AMR will safely maneuver around forklifts, pallets and ol’ “Sleepy” Pete, choosing the best alternative route to avoid any obstacles. This optimizes productivity by ensuring that material flow stays on schedule.
“We see Seegrid as the evolution in AGVs,” says Jim Keppler, vice president, Integrated Supply Chain for Whirlpool’s North America region. Facilities under Keppler’s watch include a Clive, Iowa, manufacturing plant that now has more than 50 Seegrid units operating during three work shifts. The AMRs have created welcome changes for Clive’s 150 employees.
“For any manufacturer in the United States, there is an overall labor shortage, especially for skilled positions,” Keppler explains. “We have been able to take employees in our facilities that were doing more mundane work and move them to more value-added positions and let the Seegrids do the work.”
With Seegrids, whose technology is protected by more than 100 patents, intellectual property and proprietary know-how, Whirlpool has greatly reduced absenteeism, turnover and occupational injuries while increasing reliability, Keppler says.
“One of the key features of Seegrid is the configurability of the units,” the veep notes. “On one of my visits to Clive last year, they actually had me program one of the Seegrid units. And it’s so easy, even a guy like me can do it.”
