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5 KEY STATES WITH INTERMODAL TRANSIT HUBS OFFERING SIZABLE ECONOMIC AND ENVIRONMENTAL ADVANTAGES

intermodal transport
Archives, Global Trade Daily, Site Selection

5 KEY STATES WITH INTERMODAL TRANSIT HUBS OFFERING SIZABLE ECONOMIC AND ENVIRONMENTAL ADVANTAGES

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In today’s hyper-globalized world, the ease at which goods are moved from A to B in many ways defines how we live and work. 

If you were to take a straw poll of your household or office, the chances of somebody not wearing, carrying or using an item made from components that were produced or assembled hundreds if not thousands of miles away is almost zero. The ease at which we can acquire everything, from food and clothing to tech gadgets and furniture is, largely, taken for granted. 

However, without the non-stop functioning of transportation networks at the local, national and international level, none of this would be possible. And the way in which these networks operate continues to evolve in sophistication, both in terms of routing efficiency, technology leveraged and coordination between players on land, at sea and in the air. 

Indeed, the latter refers to the concept of intermodal transportation. 

In the simplest of terms, intermodal transportation is the use of two or more modes, or carriers, to transport goods from shipper to consignee, without any handling of the freight itself when changing modes. 

A TEU container, for example, could conceivably leave a Chinese factory on a haulage truck to a nearby rail depot, travel by freight train to the nearest seaport, be ferried by container vessel to the U.S. coast, transferred onto a railway line and moved to another depot, before being unloaded onto a truck and driven to its final destination–all without a single hand touching the goods inside. 

Despite the disruption caused by the coronavirus pandemic, the value of such activity is estimated to have hit $25 billion in 2020. As the world’s economy starts to recover, the global intermodal freight transportation industry is forecast to grow at around 15 percent year-on-year between now and 2027, when it is set to be worth $67 billion. 

North America holds a significant share of the global market. The U.S. alone is expected to register at around $6.8 billion for 2020, a figure which should steadily rise given how increasingly dependent intermodal transport activity is on the consumer economy’s demand. 

The region’s rail industry is concentrating on creating new intermodal services that can successfully rival over the road options. 

For instance, in August 2019, Canadian National Railway (CN) and CSX Transportation announced a new intermodal service offering between CN’s greater Montreal and Southern Ontario areas, and the CSX-served ports of New York, New Jersey, Philadelphia and the New York City metropolitan area. 

This intermodal offering is expected to convert long-haul trucks to interline various rail services. Trains will be able to run directly into the center of Toronto and Montreal’s urban markets via CN intermodal yards, making this partnership a natural opportunity for both railroads. 

Meanwhile, there are signs that intermodal activity in the U.S. is bouncing back from the initial COVID-19 slump. 

According to the Association of American Railroads, during the first week of August 2020, 277,054 intermodal shipments were made by U.S. railways, the highest level seen since December 2019 and 30 percent up on the 2020 low in April. 

Around the States: 5 key Intermodal Transit Hubs

The signs are indeed healthy, and many cities and regions across the U.S. are ready to help the country bounce back by increasing throughput of goods once more. 

Critical intermodal transport conduits exist all over the States, from east to west and north to south–without them, supply chains would be far costlier and more difficult to operate seamlessly. Here, we take a look at just five key nodes which provide leading intermodal infrastructure, starting in the Midwest. 

ILLINOIS 

For well over a century, Chicago has acted as a key artery in America’s commercial transport network. Around a quarter of all rail freight calls into the city, either as a final destination or stop on a journey elsewhere, while O’Hare International Airport processes around 2 million metric tons of cargo at a value of approximately $200 billion every year. 

Illinois is also extremely well served by what is North America’s largest inland port in the form of CentrePoint Intermodal Center. Located in the Joliet and Elwood area, around 40 miles southwest of Chicago, it is a 6,400-acre master-planned intermodal development that sees 3 million TEUs pass through it every year. 

It includes a 785-acre Union Pacific Railroad complex just south of Joliet and a 770-acre BNSF railway complex farther to the southwest. Furthermore, it is built with heavyweight roads able to withstand massive pressure and contains a number of other useful features such as water and utility systems, public bus service connections, no restrictions on trailer parking ratios and 24/7 on-site fire and police protection. 

The site constitutes something of an intermodal fortress, and it is currently home to more than 30 tenant companies who between them occupy more than 14 million square feet of space.

TEXAS 

Dallas strategically sits at a crossroads of numerous railroad lines, four major interstate roads and one of the world’s busiest airports, making it among the country’s most important intermodal transport hubs. 

The Dallas-Fort Worth Metroplex is a 9,000-square-mile urban center located near the geographic heart of the United States and equally accessible to the East and West coasts. Its location means that around 80 markets can be reached overnight either by road or rail, with major regional business heartlands such as New York, Los Angeles, Toronto and Mexico City all within easy reach, an advantage that few other intermodal nodes can offer. 

Dallas-Fort Worth International Airport considers itself “the nexus of Latin America-Asia transit freight,” and for good reason. In 2019, it saw almost 985,000 tons of international and domestic cargo move through its site and, despite the impact of COVID-19, still recorded more than 870,000 tons of goods in 2020, a drop of around 11.5 percent.

Another important facility is the Wylie Intermodal Terminal. A fairly recent addition to Dallas’ intermodal transport infrastructure (opening in 2015), it is a $64 million development owned by Kansas City Southern Railway (KCS), and it is set to capitalize on significant opportunities in cross-border activity with Mexico. 

Wylie is a city and northeastern suburb of Dallas, with the KCS terminal spanning 500 acres and servicing 12 gulf ports and one Pacific Ocean port, as well as more than 140 transload centers and 11 intermodal ramps. KCS also provides 181 interchange points with other railroads, including all U.S. and Mexico class 1 railroads.

VIRGINIA

Norfolk, Virginia, is home to a vibrant intermodal transport scene thanks to its ability to serve rail, sea and air freight seamlessly. It is built on a formidable maritime history, centered around the enormous naval base on the Chesapeake Bay, a tradition that has very much expanded into the sea freight domain. 

The Port of Virginia, which is situated around two and half hours from the open sea, handled 2,327 vessel calls and departures in 2019, equating to around 3 million TEUs and 55 million tons of cargo worth almost $75 billion. Thanks to the port’s two on-dock class 1 railroads, more than a third of the cargo managed here arrives or departs by rail–this is a higher proportion than any port on the East Coast. 

Logistics firms using Norfolk can also rely on its international airport. It is one of the most efficient cargo operations in Virginia and moves around 30,000 tons of air cargo every year, with the likes of FedEx, Mountain Air and UPS all regular customers. 

CALIFORNIA

Around 2,700 miles due west of Norfolk, you will find Los Angeles, arguably the West Coast’s most important intermodal transport hub. 

Its beating heart is undoubtedly the Port of Los Angeles, a massive seaport covering 7,500 acres of land and water along 43 miles of waterfront that brands itself as America’s Port. Indeed, it is the nation’s No. 1 container port and prides itself on providing a global model for sustainability, security and social responsibility. 

Founded in 1907 as a far smaller operation, today it holds 82 ship-to-shore container cranes spread across 15 marinas with 3,376 recreational vessel slips and dry docks, facilities that enabled it to move 9.2 million TEUs in 2020.   

It adjoins the Port of Long Beach, itself one of the busiest seaports in the world. The operation here houses 68 gantry cranes, which between them move around 7.5 million TEUs every year, all valued at close to $200 billion. 

This is not to forget the contribution of Los Angeles International Airport, the world’s fourth busiest, which handled almost 2.5 million tons of cargo in 2018, FedEx alone is responsible for carrying 16 percent of the freight that moves in and out of the site. 

TENNESSEE 

It is also important to consider the significance of intermodal transport infrastructure away from the coast. Memphis, unlike our other four locations, is situated in a landlocked state (Tennessee) and is home to one of the country’s most active intermodal freight systems.  

Its focal point is Memphis International Airport which, thanks to its heavy use by FedEx, is the top U.S. gateway in terms of cargo weight and the second busiest cargo airport in the world. 

FedEx employs more than 11,000 staff at its Memphis hub and has more than 34 million square feet of space under lease on airport property. The company operates around 400 flights daily and handles over 180,000 packages and 245,000 documents per hour.

In striking distance of Memphis International Airport is America’s fifth-largest inland port–the Port of Memphis. It serves more than 150 industries and moves a rich variety of goods, from petroleum and cement to grain and steel, and can connect to sea, rail, road and air via the Mississippi River, five class 1 railroads, major north-south and east-west interstate highways, and the nearby airport. 

Such is its vital role in facilitating economic activity, it claims to carry an annual economic impact of more than $9.2 billion. Indeed, it refers to itself as “the Mid-South’s best kept industrial and economic secret,” even though it has been operational since the 1950s. 

Exploiting the Intermodal Advantages

These are just five examples of cities and regions enabling supply chain and logistics firms to exploit the numerous advantages offered by intermodal transit hubs. 

Economically, they help to minimize truck movements, which reduces fuel consumption, driver costs and the need to invest in road-based vehicles. Lower fuel consumption also results in fewer carbon dioxide and nitrogen oxide emissions, vital if the country is to drive future development along a sustainable path. 

From an operational perspective, businesses can benefit from more reliable transit times (due to reduced road reliance), elimination of border documentation and hold-ups, reduced impacts from adverse weather and fewer accidents and damage to cargo. Meanwhile, hauliers can benefit from working within their own country and avoid making long trips across borders. 

Intermodal transportation is, above all else, designed to create an even more fluid supply chain from which all commercial enterprises and consumers can benefit. By taking advantage of the numerous modes of transport via critical junctures and hubs along long-distance routes, freight need not rely on a single truck to make it from destination A to destination B. 

Rather, intermodal relies on input from a variety of stakeholders along the way, spreading the wealth generated by commercial and consumer-based purchases more widely than it otherwise would. Hubs such as those seen in Chicago, Dallas, Norfolk, Los Angeles, Memphis, and many others not cited, help to realize this.   

And as the country recovers from the enormous health, social and financial impacts of the coronavirus pandemic, intermodal transport will no doubt play its part in remobilizing the U.S. economy for the betterment of all American businesses. 

oversized loads
Archives, Global Logistics, Global Trade Daily, Trucking

6 Safety Tips for Transporting Oversized Loads

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Stepping behind the wheel of a transport vehicle is dangerous enough, but when oversized loads are added to the mix, the risks are exponentially increased. Hauling these, whether across long or short distances, is no joke. It’s difficult and stressful, and there are many elements to consider, including traffic, road hazards and weather conditions.

That’s why it’s important that every driver understands, and is armed with, some safety tips to improve the experience. Here’s what every truck operator should know before hitting the highway with an oversized load.

1. Plan the Route Ahead of Time

Planning the route is a no-brainer, and modern technologies can be used to do it smarter and better. Logistics and route-planning tools can be used to research traffic, hazards, weather conditions, construction and any other encounters one might come across on the open road. Most importantly, drivers should always have a set of contingencies handy that allows them to choose alternate routes or roadways because there’s no telling what may happen.

Whether it’s the primary choice or an alternative, every route plan should include information about travel times, delays, fueling locations, and break spots. It’s important to think about every possible factor when planning the route. Not having a stringent refueling plan in place can balloon transportation costs, as drivers are forced to go out of their way or choose fueling stations that are less than ideal or overpriced.

2. Know the Weather

It doesn’t matter whether drivers use their smartphones or listen to the radio — they should always have a beat on the local weather and any upcoming changes. The entire forecast should be referenced and recorded before the drive. Any updates or changes should also be monitored throughout the journey. Some loads cannot be exposed to inclement weather, so it’s vital to avoid rainy, overcast or muggy areas.

Hauling oversized loads should never happen in extreme weather conditions, except in rare circumstances, such as a major emergency. If possible, find a rest stop to wait out the storm and hit the road when it’s safe to travel again.

3. Reference the Laws

There are rules and regulations about hauling oversized loads or items. Drivers and their sponsors must abide by those laws at all times. Nearly every state, province, and country has custom and defined dimensions for what constitutes an oversized load. Most describe it as anything wider than 8.5 feet, which takes up a substantial portion of the driving or travel lanes on roadways. Weight and height limitations may also apply, and it’s up to the drivers to know them.

Furthermore, hauling oversized loads requires a permit, which details the origin of the shipment and its destination. Driving without one can result in severe fines and sometimes other penalties and may even come with a license suspension for the driver. It’s important to keep all documentation updated before, during and after a haul.

4. Use the Right Securement

When hauling loads of any size, it’s critical to keep the pieces, items or components locked down and secured. There are many different types of fastening devices, from ropes and straps to friction mats and binders. They’re not always interchangeable, and sometimes those devices are not ideal for certain loads or gear. It’s up to the drivers to know which securement tools are best for a particular load. Using the wrong devices can have major repercussions and may or may not lead to the heavy load falling off the trailer or transport.

What’s more, those devices should be inspected regularly to ensure they’re in proper working order and have not been damaged in any way. This should be done before and after a haul, and any broken or failing items should be replaced right away.

5. Drive Defensively

It’s important to drive defensively and safely when hauling oversized loads. This is not to be confused with going slowly. It can seem safer to maintain slower speeds, but that’s a misconception, more so on highways and major roadways. It’s best to drive at the recommended speed limit and to remain in lanes that are expressly labeled for trucks — sometimes, there are dedicated lanes you must stay in with an oversized haul.

Drivers should make a habit of checking their speed regularly during a trip. They should also maintain a safe stopping distance that’s far enough away from vehicles and other cars nearby.

6. Proactive Maintenance

The last thing anyone wants during an oversized haul is for the truck to malfunction or break down. It’s important to carry out proactive maintenance on a vehicle or fleet before a big trip to prevent that from happening. Fluids should be topped up and monitored, the tires should be checked, spare parts and gear should be added to the truck, and basic maintenance should be handled.

Another facet of this is to have a service plan at the ready if and when something does happen. Drivers should always know who to call and where to go to get their vehicles serviced or where the much-needed support is going to come from. That can be something researched when building the initial route plan, or it can be information that’s gathered and recorded over time. Either way, every driver should know what to do if their truck breaks down.

Be Safe When Hauling Oversized Loads

Proper planning is crucial to a successful trip. It’s vital to plan the route and situational factors, research local weather conditions and work around them, drive defensively, and use the correct securements. It’s also important to know and understand the laws and keep all permits and documentation up to date. Proactive maintenance should be followed to keep the trucks or fleet in tip-top shape. Every driver should have a plan of action if and when their vehicle breaks down or malfunctions.

By knowing and adhering to these safety guidelines, drivers can secure their health and success while hauling oversized loads. That assurance alone is worth its weight in gold.

__________________________________________________________________

Emily Newton is an industrial journalist. As Editor-in-Chief of Revolutionized, she regularly covers how technology is changing the industry.

qatar
Air Cargo, Archives

Qatar Airways Cargo Announces Approval of Envirotainer New Technology Innovating Science and Health Transportation

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Qatar Airways Cargo announces the approval of Envirotainer’s latest innovation – The Releye® RLP container. With the newest addition to its range of temperature-controlled containers, the airline now offers 16 temperature-controlled container leasing options for life science and health care products to maintain a secure and seamless cool chain. It has been already offering customers Envirotainer’s RAP and RKN active pharma containers since 2014.

Guillaume Halleux, Chief Officer Cargo at Qatar Airways said, “We are committed to providing our customers the best solutions. A seamless cool chain is paramount to maintain the efficacy of pharmaceuticals and we are pleased to offer our customers a technologically advanced container- Releye® RLP with live monitoring and intelligent cargo protection to transport their critical life science and health care shipments at the required temperature across our global network. Such an innovation is the need of the hour, especially in these uncertain times of the pandemic.”

The Releye® RLP sets a new standard for secure cold chain solutions – maintaining the customers’ pharma cargo longer, without the need of recharging and is enough to cover transit times and delays, if any. With live monitoring, the airline’s customers will be able to track and monitor the product condition, location, temperature, humidity, battery levels, door openings, if their cargo is loaded or not, and the progress of their shipments. Customized alert notifications offer full visibility to customers for proactive and reactive measures.

Fredrik Linnér, Chief Business Development Officer at Envirotainer said, “We are happy to welcome Qatar Airways Cargo as a carrier of our latest innovation, the Envirotainer Releye® RLP container. With the new Releye® RLP, Qatar Airways Cargo can offer their customers the latest active fully connected solution to protect the integrity and quality of air freight medicine products throughout the supply chain.”

Its unique airflow technology provides maximum temperature stability in the cargo bay. These containers also deliver up to a 90 percent reduction in CO2 emissions, in perfect alignment with the airline’s sustainability goals.

With considerable investments in quality handling, infrastructure, reefer trucks, and facilities like the airside Climate Control Centre at the Doha hub, people and procedures at each of its 85+ pharma stations, the cargo carrier provides high operating standards for the transportation of pharmaceuticals and healthcare products globally. The airline is committed to ensuring the enhancement of service quality and constant innovation of the QR Pharma service for the benefit of its customers.

About Qatar Airways Cargo:

Qatar Airways Cargo, one of the world’s leading international air cargo carriers, serves more than 60 freighter destinations worldwide via its world-class Doha hub and also delivers freight on the belly-hold deck of passenger aircraft to an extensive network. The Qatar Airways Cargo fleet includes two Boeing 747-8 freighters, 26 Boeing 777 freighters and six B777-300ER mini freighters.

fleets management
Archives, Global Logistics, Global Trade Daily, Trucking

Not All Equipment Leases Are Created Equal: How Transportation Fleets Can Become More Flexible and Cost Effective with Proper Leasing Strategy

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The broader economy has rebounded quite well from the severe market turbulence of 2020. In fact, seven countries, including the U.S. and China, have already reached their per capita GDPs return to pre-pandemic standing, according to the latest report from the Organization for Economic Co-operation and Development (OECD). According to the group, global economic output will rise by 5.8% in 2021, up significantly from 20201. 

Key to this economic activity are companies with transportation fleets that provide the movement of goods across America. However, many of these firms must make strategic organizational decisions that can impact their bottom lines when determining the right procurement strategies to upgrade hundreds of aging trucks in their fleets. The costs involved can be significant depending on the type of investment structure (lease versus purchase), and even as more companies shorten their equipment life cycles through leasing, many firms are realizing that not all lease agreements are equal. 

Companies in a Full-Service Lease (FSL) already know it is not a flexible option. But it is also critical to understand the many variables and costs under an FSL program when compared to an Unbundled Lease (UBL) agreement. 

Businesses Need Flexibility for Market Changes 

2020 was a difficult year for virtually every business because of the drastic market changes felt across every industry. Businesses needed flexibility to adapt to the turbulent environment and scale their organizations accordingly. 

Entering 2021, Federal stimulus measures and pent-up consumer demand have resulted in the American economy now heating up, forcing many companies to look for an expansion of operations. Companies with transportation fleets also need to keep an eye on costs as inflationary pressures are increasingly resulting in profit erosion. 

A key inflation indicator rose a faster-than-expected 3.1% in April as price pressures built in the rapidly expanding U.S. economy, the Commerce Department reported recently. The core personal consumption expenditures index was forecast to increase 2.9% after rising 1.9% in March 2. Whether through market contraction or expansion, companies with transportation fleets today need to be as flexible as possible in running their fleet operations. 

Unfortunately, not all lease structures are created equal, and some fleet organizations have suffered from an inability to exercise this flexibility through a full-service lease structure, which binds them in a lease contract over a specified period of time. 

With flexibility at the forefront of the business strategy of operating a fleet, scrutinizing every detail of a fleet’s vehicle lease structure can mean the difference of millions gained or lost toward the bottom line, which can be detrimental when organizations need to preserve every penny for profits today.  

Full-Service Leasing Defined 

Full-Service Lease is a lease in which the lessor provides financing and other transportation services packaged in a single monthly payment. Full-Service transactions are often that, just transactions and the contracts are tenured and strategically designed to avoid high-impact deal breakers.  

In an FSL agreement, fleets essentially hand over all decisions affecting the fuel and maintenance costs to their lease provider and instead focus on a “bundled” monthly payment. 

While on the surface, this may sound like a marriage of convenience, Full-Service leasing eliminates flexibility since it locks the organization into a rigid contract and terms for a set long-term period, wherein the cost for maintenance and finance are combined along with general overhead costs. Unfortunately, limiting the operational flexibility can be disastrous when business conditions change, or industries experience severe shifts overnight. 

Unbundled Leasing: Flexibility & Competitive Costs 

In contrast, UBL agreements are designed for fleets to work with a provider that can help break out costs individually and identify the lowest-possible financial costs involved with operating a fleet, including fuel economy efficiency, and eliminating unnecessary maintenance and repair costs. 

A UBL offers flexible financing options based on actual costs; not what costs were projected at the onset of the decision process. UBL offers vehicle life cycle management for better cost and performance optimization. In a UBL agreement, companies have greater flexibility on these individual costs and the freedom to upgrade and scale the size of their fleet, guaranteeing the lowest-possible financial costs involved with truck acquisition. 

Significant Cost Savings Involved when Unbundling 

The monthly cost savings can be significant. After taking into account the lease payments, warranty and maintenance fees, an organization pays either an average of $1,816.11 per month (unbundled) compared with $2,792.00 per month (FSL). When calculated over a span of 100 trucks, that fleet would experience a first-year savings of approximately $1.2 million toward the bottom line3.   

These monthly costs are further exemplified when finance costs are also taken into account. Finance costs are a significant calculation in any equipment acquisition. Purchase or lease requires a cap cost number and a finance number. The most effective process to reduce the truck cost and finance cost is to have competitive equipment and finance options. Access to multiple Original Equipment Manufacturers (OEMs) and lenders is key to obtaining the lowest equipment and finance cost. These competitive options can be achieved when lease agreements are unbundled, allowing the freedom and flexibility to shop for the most competitive options available. The cumulative per-truck savings over a six-year life cycle amounts to $60,000, or roughly $6 million for a fleet with 100 trucks3.  

The need for organizations to adapt through flexibility is no longer just a buzzword, it’s a competitive strategy. According to McKinsey and Company, businesses that operate with agility in mind will enjoy a powerful impact on their bottom line, as well as other significant benefits to the organization. This level of agility will not only help companies navigate through today’s unpredictable market, but will help position for growth tomorrow.  

___________________________________________________________________

About The Author: Katerina Jones is Vice President, Marketing and Business Development at Fleet Advantage, a leading innovator in truck fleet business analytics, equipment financing and life cycle cost management. For more information visit www.FleetAdvantage.com.  

1: https://www.oecd.org/economic-outlook/  

2: https://www.cnbc.com/2021/05/28/pce-price-index.html  

3: https://www.fleetadvantage.com/press-releases/latest-fleet-advantage-industry-report-illustrates-significant-advantages-of-unbundled-leases-versus-full-service-leases-for-heavy-duty-truck-equipment  

infrastructure
Archives, Global Logistics, Global Trade Daily, Trucking

Is Smart Infrastructure the Key to Vision Zero?

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Vision Zero is one of the newer strategies looking to eliminate deaths and severe injuries due to road traffic and unsafe infrastructure. First successfully implemented in parts of Europe, the strategy has recently gained traction in North American cities in addition to the direction of the new administration.1 

Since the inception of roadways and traffic, most drivers were conditioned to think fatalities on the road were inevitable, but the reality is that there are now many resources that can prevent these tragedies. The key is to take a proactive, preventative approach that prioritizes traffic safety as a public health issue. With more than 40,000 people killed in crashes in the US in 2020, something needs to start changing immediately. The significant loss of life exacts a tragic toll. Moreover, pedestrian deaths in 2020 increased by 21 percent from 2019 – even with fewer vehicles on the road that year.2 Not only is there personal loss, but also deep community impacts including economic costs and emotional trauma as well as increasing taxpayer spending on emergency response and long-term healthcare costs.  

Committing to Change with New Strategies and New Technology 

Vision Zero specializes in showing a different approach to traffic safety. It is much different than the traditional approach used today in that it starts with the ethical belief that everyone reserves the right to experience safe use of the roadway, and it is the shared responsibility of policymakers, system designers and technology experts to ensure safer roadways. The traditional approach of traffic pushes responsibility onto an individual, however with system designers working together to create smart infrastructure through the new strategy of Vision Zero, various different aspects of the roads and traffic will ultimately become safer. Vision Zero also differs from the traditional approaches by acknowledging the many factors that go into creating safe mobility in communities.

Collaborations are integral between traffic planners, engineers, and policymakers alike. Committing to Vision Zero means unlearning old ways of the roads and making room for new strategies to better the transportation infrastructure we use every day. This means that system designers and policymakers are expected to improve the roadway environment and policies in addition to other related systems in order to dramatically lessen the severity of crashes. 1  

Advanced technologies including video analytics solutions use artificial intelligence (AI) and machine learning approaches to analyze large quantities of video streams in real-time to then provide actionable insights on complex traffic situations including road hazards, congestion and traffic collisions. For example, companies like Waycare, Derq and Applied Information provide software that analyzes behavioral patterns of vehicles, pedestrians, and traffic flows from existing traffic infrastructure in real-time to identify and predict potential road incidents. These advanced video analytics can then activate a pedestrian blinking sign to alert a distracted driver from colliding with a pedestrian about to cross the road. They can also alert a city operator so emergency responders can be dispatched to the location of the incident if a collision is detected. Furthermore, real-time AI analytics provide additional context in the form of incident identification, near-miss heatmaps and accurate traffic counts to traffic engineers and operators, which ultimately allows them to better understand traffic patterns and proactively improve the safety of roads. 

The U.S. Administrative Plan for Infrastructure  

The Biden administration released a proposal to spend an estimated $1 trillion on infrastructure projects that both lawmakers and the White House will now work to get through Congress.3 The proposed bill was negotiated among a group of bipartisan Senators that includes a large piece of the bill targeting innovations for smart infrastructure. The administration’s transportation infrastructure goes hand in hand with the Vision Zero strategy as they are both working to fix the same problem. Through increased funding for roadway projects, the bipartisan proposal puts roadways on the right track to decrease fatalities, and hopefully lead to zero fatalities over the years.  

It’s estimated that the infrastructure plan will spend $312 billion on surface transportation projects, with $109 billion invested in roads, bridges and other major projects.4 From there, $20 billion is estimated to be put toward improving the safety of all roadway users, with a specific emphasis on bicyclist and pedestrian safety.5 The proposed plan includes increasing funding on existing safety programs, while also creating a new program called “Safe Streets for All.” This new program will provide funding for state and local governments’ Vision Zero plans.  

Preventing roadway incidents is key to Vision Zero, and advanced technologies like real-time video analytics play an integral role in smart infrastructure. While legislation is a good first step, it will not work without new technology to enable better road safety. It’s important that local city and community leaders adopt the mentality of Vision Zero to enable smart infrastructure advances. While access to the data collected through sensors being deployed is a crucial first step, the implementation of technology solutions is necessary to move forward to actually improve road safety and reduce traffic fatalities. 

_____________________________________________________________

About the Author:  

Dr. Georges Aoude is the CEO and Co-Founder of Derq, an MIT spinoff powering the future of connected and autonomous roads, making cities smarter and safer for all road users and enabling the deployment of autonomous vehicles at scale. Derq provides cities and fleets with an award-winning and patented smart infrastructure platform powered by AI that leverages existing traffic cameras and sensors to help them tackle the most challenging road safety and traffic management problems. 

Sources: 

1: https://visionzeronetwork.org/about/what-is-vision-zero/  
2: https://www.nbcnews.com/health/health-news/mind-boggling-pedestrian-deaths-surged-2020-despite-fewer-cars-road-n1267910  
3: https://www.wsj.com/articles/biden-senators-agree-to-roughly-1-trillion-infrastructure-plan-11624553972  
4: https://www.cnbc.com/2021/06/24/infrastructure-deal-talks-biden-invites-bipartisan-senators-to-white-house.html  
5: https://www.atssa.com/Advocacy/ArtMID/2254/ArticleID/423/Biden-proposes-2-trillion-infrastructure-plan 

heavy-duty truck
Archives, Global Trade Daily, News, Trucking

Heavy-Duty Trucks Market: Top Key Trends Fostering the Industry Outlook through 2026

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The heavy-duty trucks market size is poised to expand at substantial CAGR during the forecast period. With the incorporation of advanced technologies including IoT, AI, smart navigation systems, and accident prevention technologies, the heavy-duty trucks industry worldwide is sure to undergo expansion. Focus on emission reduction, environmental sustainability, and efficient engines is expected to drive the demand for these trucks over the forthcoming years.

The following ten major factors have been observed across the heavy-duty trucks industry outlook:

Government investments in infrastructural activities in the Asia Pacific

With the thriving construction and real estate sector of countries such as India, South Korea, and China, heavy-duty trucks are expected to see a greater deployment rate in the next few years. By 2026, the Asia Pacific market share should have gained substantially from the numerous government investments and initiatives toward the promotion of construction activities in the region.

This includes the allotment of a massive government expenditure toward digitalization, integration of artificial intelligence (AI), Internet of Things (IoT), 5G networks, and intercity transportation networks.

Scrappage policy to boost India’s expansion

As part of the focus on economic recovery, the Indian government has been intending to incentivize heavy-duty truck owners to purchase new heavy-duty trucks and other commercial vehicles, discouraging usage of old, polluting ones via its new scrappage policy in Budget 2021.

The move will not only ensure lower pollution rates but also encourage the advancement of the heavy-trucks segment of the commercial vehicle market, which has been witnessing a decline in the past two years across the nation. The Indian market is likely to gain considerable revenue, thanks to the proposal of the Ministry of Road Transport and Highways (MoRTH) to provide new heavy-duty trucks with a discount of road tax as well as a waiver of the registration fee.

Growing demand for diesel heavy-duty trucks

The diesel engine segment of the APAC heavy-duty trucks market is expected to witness a significant expansion through the projected timeline, by credit to the lower fuel consumption alongside the higher efficiency of these engines when compared with gasoline trucks. Integration with compression-ignition of these trucks ensures their fuel efficiency. The lower costs and easy availability of diesel are likely to boost the demand for diesel-powered heavy-duty trucks in the upcoming years across APAC.

Focus on product launches across the Asia Pacific

Several industry leaders in the APAC heavy-duty trucks industry have been seeking to expand their presence through product launches. For instance, in June 2020, Mahindra introduced its Blazo X, a commercial truck with optimized fuel efficiency, across India. Similarly, in January 2021, Daimler India Commercial Vehicles (DICV) launched its new heavy-duty specialized refrigerated truck for safely and efficiently transporting COVID-19 vaccines throughout India.

U.S. auto sector to flesh out higher gains

The heavy-duty trucks market in the U.S. has been exhibiting growth due to higher demand for transportation of cargo and goods, generating more revenue. The American Trucking Association (ATA) findings reveal that over 71% of the freight tonnage across the U.S. is transported using trucks. The thriving cross-border trade between the U.S. and neighboring countries is expected to boost the North American heavy-duty trucks market size.

Integration with ADAS technologies in North America

With technologically advanced heavy-duty trucks being developed by the leading manufacturers across the region, the market in North America is sure to soar. The focus on driver assistance and automation technologies has been a major trend defining the market’s progress. Recently, heavy-duty truck manufacturers have been prioritizing accident prevention and blind-spot monitoring through the adoption of ADAS systems in their product offerings.

Expanding demand for 4×2 axle heavy-duty trucks in Europe

Big trucks with multiple axles offer a better driving experience than single axle trucks. The demand for these vehicles has been spiraling across Europe’s heavy-duty trucks market. There is a growing utilization of 4×2 axle heavy-duty trucks, primarily triggered by the stringent regulatory policies of the European Commission. The EU has enforced permissible weight carriage as per the axle count of heavy-duty trucks.

300-400 horsepower trucks to gain traction across Europe

Owing to the advantages of 300-400 horsepower trucks, the demand for these vehicles has been witnessing an uptick. These trucks feature superior fuel efficiency alongside a lower engine weight. The segment is expected to surge at a high CAGR through the forecast years, due to their comparatively lower costs and enhanced abilities to haul heavy loads.

Hefty penalties for non-compliance with EU standards

Numerous heavy-duty truck manufacturers in Europe have been investing in the integration of innovative technologies aiming at achieving the zero-emission target from 2025 onward, in order to avoid payment of hefty penalties for non-compliance with EU standards. Recently, the EU has announced the adoption of carbon-neutrality targets and standards for heavy-duty trucks.

These include a 15% reduction from 2025, which will augment to 30% by 2030, attaining zero emissions by 2050. The implementation of such regulatory frameworks is certain to flesh out more demand for electrified trucks across the European region.

reverse logistics
Archives, Global Logistics, Global Trade Daily

Reverse Logistics: Turning Costs into Opportunities

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In 2020, lockdown and social distancing will have pushed e-commerce to unprecedented heights. This massive 30% increase in deliveries, further amplified by the Christmas shopping season, is leading to a similar wave of returns – nearly a quarter of all e-orders are returned by customers. Here are a few essential keys to ensure that you are in good working order for returns. 

In psychology, it is said that any “feedback”, even negative, is an opportunity. It is an opportunity to better understand the other person and to improve relationships. The same is true in reverse logistics: returns are an opportunity to transform a constraint into a positive customer relationship, as long as they are processed through all channels, the reasons for them are analyzed and the rate of returns is reduced.

Distancing will have strengthened online shopping

According to TNS Sofres, 89% of French people intended to use e-commerce for their holiday shopping in 2020. This period, as short as it is crucial, was expected to generate more than 22 billion euros in sales. In terms of deliveries, an operator like La Poste will have managed peaks of more than 4 million packages per day during this extraordinary period!

45 %  

Is the proportion of consumers who have returned at least one product purchased online in France within the year. Only Germany and The Netherlands have a higher rate in Europe.1

Reverse logistics, a commercial opportunity.

Before being a backward process, from receiver to sender, returns are an essential selling point. They represent the third decision factor of e-commerce customers, after price and delivery terms!

The consumer, therefore, expects clear information on the retraction periods used (increasing them to one or two months more increases the transformation rate), on the proposed methods (deposit in the mailbox, exchange or refund in the store, transport to the home), on the refund periods (beyond five days, they become an obstacle to the purchase).

Thinking downstream upstream

The return to sender is a channel for customer relations and satisfaction. For this, the keyword is unification. The retailer must be able to access homogeneous and centralized data on each order and its components (financial, logistical, marketing), whether the customer has ordered from a merchant site, in a store, via a market place or a call center.

Reverse logistics is also prepared from the moment of delivery, by simplifying the return procedure through the insertion of pre-addressed labels or by inviting the customer to visit the point of sale. If the products are returned to distribution platforms, the system will have to provide information on these temporary stocks and supervise the correct repackaging of the products, reducing the number of operations in order to optimize both time and costs.

WMS: the control tower

Such a capacity requires, in the background, the latest generation of Warehouse Management Software. This WMS process returns in real-time, regardless of volume and type. They provide an overview of their status, nature and reallocation: back to sales, forwarding to suppliers, destruction or recycling.

The latest generation of WMSs also list all physical and commercial characteristics: terms of sale, order history, via sequential package numbers and the various encodings used (GTIN 128, QR codes, RFID or Datamatrix).

To learn more, please visit our dedicated page.

Multiple benefits

Unified, the backward supply chain reduces the time it takes to put products back on sale, and thus reduces markdowns. Quickly and accurately classified through the WMS, returned products protect the brand’s margins and prices.

Reverse logistics also helps to: identify “serial returners”, know the context of each transaction, record special conditions (made accessible via any channel, at any time).

Another positive aspect is that return statistics influence commercial policy, by decoding consumer habits and customer expectations. The reasons for returns also constitute an alert on the quality of the products: informed in time, the after-sales service can deal with the situation with the suppliers concerned.

Finally, if the customer returns his order to a point of sale, it is an opportunity to offer him a discount coupon, a complementary product or a higher range, to introduce him to a new service. Before being a transaction, commerce is really about relationships.

End-to-end, omnichannel returns monitoring provides valuable insights into the impact of returns on replenishment, product availability and offering relevance. Unified reverse logistics processing creates two strategic advantages for retailers. Commercially, it is a loyalty and growth tool, a key element of a personalized relationship. Financially and logistically, it is an important lever for savings and simplification. It would therefore be a shame, and even harmful, to deprive ourselves of this partner

1 Statista, 2018.

This article originally appeared on GenerixGroup.com. Republished with permission.

old dominion
Archives, Global Trade Daily, News

Old Dominion Freight Line adds Daimler’s 2021 Freightliner Ride of Pride Tractor, Honoring U.S. Military, to its Fleet

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Old Dominion Freight Line, Inc. (Nasdaq: ODFL) took delivery of a specially-wrapped 2022 Freightliner Cascadia tractor as part of manufacturer Daimler Trucks’ 2021 Ride of Pride program. The tractor’s patriotic design honors America’s veterans, some of whom will have the chance to drive the tractor as it crosses the country over the next several years.

The Ride of Pride program launched several months after the 9/11 tragedy, as designers at Daimler’s Cleveland, N.C. plant considered ways to honor past, present and future military veterans, with an emphasis on POW/MIA service members. The first tractor, “Eagle One,” took to the road in 2002, and the unveiling of each year’s Ride of Pride trucks has been a Memorial Day tradition ever since. Daimler has now produced more than 30 Ride of Pride tractors for carriers across the U.S. Old Dominion took delivery of its first Ride of Pride Truck in a presentation at its corporate office in Thomasville.

“Each of these tractors is built with P.R.I.D.E. – passion, respect, integrity, discipline and excellence. Those are the tenets our veterans follow when they’re serving our country, and we want the tractor to represent each one of them,” said Darrell Plonk, logistics manager at Daimler’s Cleveland, N.C. Freightliner plant.

Old Dominion’s Ride of Pride tractor begins its journey this month at the carrier’s Greensboro, N.C. service center, where it will haul freight for the next six months. After that, it will rotate to a different Old Dominion service center biannually and will be driven by veterans at each facility.

“Veterans are a core part of the OD Family, and we’re proud we have the chance to honor our service members in such a unique way,” said Jim Raynor, vice president of maintenance and equipment at Old Dominion Freight Line. “Whether the tractor is at one of our service centers, on the road to its destination, or at a customer’s dock, we hope it will serve as a reminder to those who see it of the debt we owe those who have served our country.”

To learn more about Daimler’s Ride of Pride tractors, visit the program’s Facebook page at https://www.facebook.com/RideofPride. To learn more about Old Dominion Freight Line, visit www.odfl.com.

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About Old Dominion Freight Line, Inc.

Old Dominion Freight Line, Inc. is one of the largest North American less-than-truckload (“LTL”) motor carriers and provides regional, inter-regional and national LTL services through a single integrated, union-free organization. Our service offerings, which include expedited transportation, are provided through an expansive network of service centers located throughout the continental United States. The Company also maintains strategic alliances with other carriers to provide LTL services throughout North America. In addition to its core LTL services, the Company offers a range of value-added services including container drayage, truckload brokerage and supply chain consulting.

material handling
Archives, Global Trade Daily, News

Material Handling Equipment Market Revenue to Hit $200 Billion by 2027

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The global material handling equipment industry is touted to gain massive proceeds over the coming years, owing to the expanding e-commerce sector and a subsequent increase in the automation of warehouses for ensuring on-time shipments and deliveries. The surging popularity of warehouse automation for streamlining the process of material handling is expected to stimulate industry growth.

According to the latest study by Global Market Insights, Inc., the global material handling equipment market size is projected to surpass USD 200 billion by 2027.

This growth is attributed to an increase in the adoption of acquisition and merger strategies by key material handling equipment manufacturers.

For instance, in April 2017, A.T.E. entered into a collaboration with Jost’s Engineering Company Limited for bringing the best material handling equipment to the textile industry across India and Bangladesh. The deal helped in enhancing the penetration of a range of products such as electric forklifts, racking systems, reach trucks, custom-built trucks, hand pallet trucks, scissor lifts, and others in the region.

Moreover, various integration technologies, comprising IoT and RFID, into the equipment will also play a pivotal role in augmenting material handling equipment market revenue through the estimated span.

Some major trends impelling material handling equipment industry expansion comprise:

Globally expanding 3PL industry

The expansion of the 3PL market at the global level is expected to augment the product deployment in distribution centers and warehouses, spurring material handling equipment market share over the coming years. Given that online retailing is in high demand, various companies are leveraging the advantages of third-party logistics providers for catering to an upsurge in the demand from consumers.

This, in turn, is expected to encourage 3PL service providers for the modernization of their storage facilities and warehouses so as to ensure fast and on-time delivery of shipments. Material handling equipment enables people to proceed with the efficient unloading/loading of products from transportation trucks, storing products at large heights in racks, and moving products easily throughout the facility through constrained spaces.

Surging demand for industrial trucks

An escalation in the demand for industrial trucks, that allow the transfer of heavy goods in an efficient and easy manner, is expected to drive material handling equipment market share through 2027. In addition, there is an increase in the demand for automated guided vehicles as they carry loads along the floor of the facility without the requirement of an onboard operator or a driver.

These vehicles are operated by means of an integrated system of hardware and software components. Furthermore, advancements in the sensor industry are set to fuel the research and development associated with AGVs, bolstering business expansion through the assessment period.

Expanding manufacturing sector in Latin America

Latin American material handling equipment industry is poised to register commendable growth through 2027, owing to the expansion of the manufacturing sector in the region. Mexico stood first amongst the trade partners of the U.S. in total trade in 2019 with a value amounting to USD 614.5 billion.

Moreover, the demand for bulk material handling equipment from the expanding processed foods industry is likely to boost the business landscape in the region. In addition, various regulatory bodies are encouraging the expansion of the overall industrial sector, increasing product adoption through 2027.

Source: Global Market Insights, Inc.

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Goodman Group Doubles Down on Sustainability with New Multi-Story Industrial Development on Seine Axis

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Today HAROPA PORT announces the creation of a major river and seaport complex. It is the outcome of a call for logistics projects initiated by the Port of Gennevilliers (French département 92). Goodman has been selected for the development of a 90,000 sqm multimodal logistics platform – unique in Europe. The platform will be constructured over four levels, linked directly to the Seine and targeting the development of river transport and urban distribution for the Greater Paris region. The project is a perfect illustration of the new river and seaport’s positioning and ambitions for the development of decarbonised logistics.

Key features include;

+90,000 sqm of logistics space including 10,000 sqm of offices

+16 units of 5,000 sqm

+Four levels accessible to all vehicle types

+11,000 sqm solar PV

+17,000 sqm rooftop urban farm, of which 7,000 sqm is  greenhouse space

+BREEAM Outstanding certification, BiodiverCity and Low-Carbon labels

+One river transhipment dock

Named GREEN DOCK, this cutting-edge logistics project will be ideally located in the port of Gennevilliers, the leading port facility for the Greater Paris area by size and activity and only five kilometres from Paris and 20 minutes from Roissy – Charles de Gaulle airport. 250 companies from a diverse range of sectors have already chosen the area due to the ports location and multi-modal offerings, which include a combination of river, sea/rail, oil pipeline and road transport modes. GREEN DOCK will allow urban distribution businesses to provide “final-kilometre” delivery and to develop river-based transport deep into the French capital.

The vision for river transport is becoming increasingly important for many operators. STEF, DB SCHENKER and CEVA Logistics have already expressed interest in GREEN DOCK, providing input for its design. GREEN DOCK will be developed, held and managed directly by Goodman.

Goodman’s approach utilized a multi-disciplinary team to conceptualise this prime multimodal site combining modularity and a contemporary eco-design. The modern architectural lines of its façade will be constructed in natural, recycled materials including wood and concrete to integrate the site into its Seine riverbank surroundings. The building’s structure has been conceived for total flexibility and will allow its working areas to evolve in line with the needs of the occupants. Lastly, its roofing will be home to the largest urban farm in Europe, run by Cultivate it will cover 17,000 sqm, including 7,000 sqm of greenhouse space.

GREEN DOCK also sets out to be a model of economic land use and sustainable development, aiming for BREEAM certification at Outstanding level plus the BiodiverCity and low-carbon labels. Covering 90,000 sqm over four levels, supplemented by an access zone and underground parking, the project will have a density four times higher than standard. Energy management on the site will also benefit from innovations unparalleled in terms of scale: a solar PV plant covering 11,000 sqm of roof area intended for the site’s own supply, a heat exchanger connected to the Seine for heating and cooling the building and a geothermal plant. The dock, a key component of the site’s multimodality, fully funded by Goodman, provides a direct link between the project and the river. It will offer users direct, functional access to river transport, both upstream and downstream.

“We are honoured to have been awarded the project initiated by HAROPA PORT for the Gennevilliers flagship site. Green Dock, our multimodal project design is the outcome of a year of studies and discussion and embodies the firm belief that river transport will be central to tomorrow’s urban distribution. Its vertical design is inspired by our completed projects in Asia, but its functional architectural quality and environmental performance make Green Dock unique. It exemplifies the level of excellence we aim for in each of our developments.” says Philippe Arfi, Director of Goodman France.

“It is with pleasure that we sign this commitment to working with Goodman on this highly auspicious day on which HAROPA PORT comes officially into being. This project for a multimodal platform is an innovation for Europe and confirms the role of the new HAROPA PORT in ambitious, decarbonised logistics. This agreement is a perfect illustration of our ability to offer end-to-end logistics solutions right from the maritime terminals of Le Havre and Rouen up to the final kilometre and to pursue alongside our partners projects on a scale and of a quality never before seen in our ports” confirms Stéphane Raison, CEO of HAROPA PORT.

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About HAROPA PORT

Since 1 June 2021, the ports of Le Havre, Rouen and Paris, already united under single banner of HAROPA since 2012, form the “major Seine Axis river and sea port authority”. As the fifth largest north-European port complex, HAROPA PORT has connections to every continent based on an international maritime offering in the very first rank (calling at nearly 700 ports). It serves an extensive hinterland centred on the Seine Valley and the Paris region, together constituting France’s biggest consumer catchment area. From Le Havre to Rouen, the port complex can point to 2.5m sq. m. of logistics warehousing currently in service and over 1m sq. m. of available warehousing space. Today in France, HAROPA PORT provides a transport and logistics system capable of proposing holistic, end-to-end service offerings. It generates annual maritime and river traffic in excess of 130m tonnes and its activities represent approximately 160,000 jobs.

For more information, please contact:

Marie HERON T +33 2 32 74 72 87 – +33 6 79 69 36 09 marie.heron@haropaports.com

Nicolas BOUDET +33 1 40 58 29 81 – +33 6 74 35 22 17 nicolas.boudet@haropaports.com

About Goodman

With assets under management totalling A$52.9 billion and 366 properties under management, Goodman is the largest listed industrial property group in Australia and one of the largest managers of listed specialist funds worldwide. Its market vision and its specialised teams in each country, create solid investment opportunities and develop spaces and working environments that meet the individual needs of each customer.

With over 900 staff and 26 offices in 14 countries, Goodman has the global reach to meet the needs of its clients as their businesses expand or develop. In Europe, Goodman is present in Germany, the Netherlands, Belgium, Luxembourg, France, Spain, Italy, and the United Kingdom.

For more information on Goodman in France, go to: www.goodman.com