Hurricane Milton Shakes Global Supply Chains

Hurricane Milton has brought significant disruptions to Florida’s logistics networks, affecting everything from port operations to road and rail transportation. With logistics at the heart of global supply chains, the storm has created ripple effects that are likely to be felt across industries for weeks, if not months. Understanding the recovery process from Milton requires looking at the logistical systems in place, how they have responded to past disruptions, and what steps are necessary for a full recovery.

Port Closures and Supply Chain Disruptions

Florida’s ports are critical nodes in the global logistics network, particularly for imports of petroleum, construction materials, and consumer goods. Hurricane Milton forced the closure of key ports like Tampa Bay, Jacksonville, and Manatee, halting the flow of essential goods. This has led to immediate shortages, particularly in fuel, and delays in construction projects as materials like steel and cement are stuck offshore or rerouted through less efficient ports.

Port closures are especially disruptive to logistics because they act as choke points in supply chains. When one or several ports shut down, the entire flow of goods is interrupted. In this case, goods bound for the southeastern U.S. and even broader markets across the country are facing significant delays. The global shipping industry, already under strain from other disruptions, now faces rerouting challenges and extended lead times as ports in Georgia, South Carolina, and Alabama handle diverted shipments.

While smaller ports like Port Miami and Port Everglades are expected to resume normal operations within 1-2 weeks, larger ports like Tampa Bay may take 4-6 weeks to fully reopen for large cargo ships. This timeline is consistent with past recoveries, such as after Hurricane Irma, when it took weeks for normal port activity to resume.

Fuel Supply Chain Issues

Logistics within the fuel industry has been particularly affected by Hurricane Milton. With Florida ports closed to large tankers, the distribution of fuel to gas stations and other consumers has been delayed. This creates a bottleneck not only for the energy sector but also for road transportation, which depends on fuel for trucks to deliver goods across the region.

Restoring the fuel supply chain is critical for the broader logistics sector. Without fuel, trucking companies cannot meet delivery schedules, and supply chains for essential goods like food, medicine, and consumer products face even greater delays. Past hurricanes, such as Hurricane Michael and Hurricane Harvey, showed that fuel shortages can persist for weeks after the storm passes, especially when large ports remain closed.

Given that many gas stations are already running low on supplies, it is expected that fuel distribution will gradually improve over the next 2-3 weeks. However, full restoration of the fuel supply chain may take up to six weeks, as the largest tankers are only allowed to dock once safety inspections and infrastructure repairs are completed at major ports.

Transportation and Inland Logistics Challenges

The inland transportation network—comprising highways, railroads, and distribution hubs—is facing significant disruptions due to Hurricane Milton. Flooded roads and damaged rail lines have created delays in moving goods from ports to warehouses, factories, and retail locations. Trucking companies are reporting major delays, with some routes completely blocked due to flooding, which mirrors the disruptions seen after past storms like Hurricane Florence.

Road Flooding

Logistics companies are responding by rerouting shipments to neighboring states or by using alternate transportation modes, but this comes with increased costs and longer delivery times. The rail network, crucial for moving bulk goods like steel, chemicals, and agricultural products, is also facing delays as assessments of track damage are carried out.

The recovery of Florida’s transportation network is expected to follow a staged approach. Road repairs and rail line assessments are already underway, but it could take 2-4 weeks for most major routes to reopen. Full restoration, particularly for more remote or heavily damaged areas, could take up to 6 weeks.

Global Supply Chain Disruptions

Florida’s ports are integral to global trade, particularly in connecting the U.S. with Latin America and parts of Asia. The closure of these ports due to Hurricane Milton has already created significant delays in the global supply chain. Companies that rely on just-in-time delivery of goods, such as retailers and manufacturers, are particularly vulnerable to these delays, which are expected to ripple through the global supply chain for up to three months.

International companies are rerouting shipments to other ports along the Gulf and East coasts, but this is straining those ports’ capacities and leading to higher costs for freight handling. The automotive, electronics, and consumer goods industries, which depend on the seamless flow of components and finished products, are likely to experience delays in both production and distribution. Similar supply chain disruptions were seen after Hurricane Katrina, when global supply chains took months to fully recover from the impact on Gulf Coast ports.

Podcast: How AI is Revolutionising Transport & Logistics

In this episode of Logistics Business Conversations, host Peter Macleod is joined by two experts from Aptean—Manog Tseung, Senior VP of Product Strategy, and Martin Parker, Director of Transportation Solutions—to discuss the game-changing role of AI in transport and logistics. They delve into how artificial intelligence is being applied to streamline operations, from advanced route optimization and predictive maintenance to automating warehouses and enhancing supply chain visibility.

With AI driving efficiency, reducing costs, and improving sustainability, this conversation uncovers how businesses can leverage these innovations to stay ahead in the fast-evolving logistics landscape. Whether you’re involved in logistics or just interested in the future of transport, this episode provides practical insights and a look at how AI is shaping the next era of the industry.

Join us for an engaging conversation that explores the cutting-edge trends revolutionizing logistics!

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DSV Acquires DB Schenker Amid Industry Consolidation

In a major industry shake-up, DSV has acquired DB Schenker, positioning itself as a major player in global logistics. This acquisition enhances DSV’s capabilities in European land transport and rail freight, aligning with the industry’s shift towards multimodal solutions and sustainability. The deal reflects a trend of consolidation, with logistics companies like CMA CGM and Kuehne+Nagel expanding their operations. As DSV integrates DB Schenker, it will face challenges in streamlining operations, but the combined entity will offer more competitive, efficient supply chain solutions globally.

In a major industry shake-up, DSV has acquired DB Schenker for a transaction valued at EUR 14.3 billion at enterprise value, positioning itself as a leading global logistics provider. This acquisition significantly enhances DSV’s capabilities, particularly in European land transport and rail freight, aligning with the industry’s shift towards multimodal solutions and sustainability. The combined entity is projected to have pro forma revenue of EUR 39.3 billion (based on 2023 figures) and a workforce of approximately 147,000 employees across more than 90 countries. This deal reflects a trend of consolidation, as logistics giants like CMA CGM and Kuehne+Nagel expand their global operations. As DSV integrates DB Schenker, it faces operational challenges, but the merged company is poised to offer more competitive and efficient supply chain solutions globally.

Strategic Importance

This acquisition strengthens DSV’s market position by adding DB Schenker’s extensive European network to its global operations. DB Schenker is a leader in land and rail transport, making DSV more competitive in Europe and enhancing its multimodal offerings at a time when sustainability and efficient transport are in high demand. With the logistics industry focusing more on green logistics, DSV can leverage DB Schenker’s rail freight expertise to offer environmentally friendly solutions across Europe. According to Jens H. Lund, Group CEO, DSV, the acquisition is a “transformative event” that will create a “world-leading transport and logistics powerhouse” and improve competitiveness across DSV’s divisions—Air & Sea, Road, and Solutions.

Competitive Landscape

The acquisition highlights the growing consolidation in logistics as major players like DSV seek to scale their operations. The deal follows similar moves by competitors such as CMA CGM’s acquisition of Bolloré Logistics and Kuehne+Nagel’s digital expansions. With customers increasingly demanding integrated, end-to-end supply chain services, DSV’s expanded footprint and service capabilities position it well to compete with rivals like DHL and Kuehne+Nagel in offering seamless logistics solutions across regions and transport modes.

Challenges and Integration

Despite the opportunities, DSV faces significant integration challenges, particularly with DB Schenker’s vast operations. Successfully merging technology, workforce, and operational standards will be key to realizing the full benefits of the acquisition. However, DSV has demonstrated its ability to handle such integrations, as seen with the Panalpina merger in 2019. The company is expected to focus on optimizing its services, reducing operational costs, and enhancing efficiency to improve competitiveness in an increasingly digital logistics environment.

Future Outlook

This acquisition will likely accelerate consolidation in the logistics industry as companies seek to expand their reach and enhance service offerings. The global logistics market is increasingly focusing on sustainability, operational efficiency, and innovation. DSV’s acquisition of DB Schenker positions the company to lead in this evolving landscape, offering comprehensive and sustainable supply chain solutions. As DSV integrates DB Schenker’s resources and expertise, it will play a pivotal role in shaping the future of global logistics, driving higher standards of service and operational efficiency.

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Staying ahead of unpredictable weather

Weather is an unpredictable force that can wreak havoc on logistics in Europe, but there are strategies to mitigate its impact. As we navigate through the continent’s diverse and often harsh climates, it’s clear that we need a proactive approach to ensure our supply chains remain reliable and efficient.

Advanced Weather Forecasting and Planning

Investing in advanced weather forecasting tools is not just a smart move; it’s a necessity. Companies like DHL have shown the way by using sophisticated weather forecasting software to re-route deliveries and adjust schedules during severe weather. This proactive approach minimizes delays and ensures that packages still arrive on time, even when Mother Nature throws a curveball. It’s high time more logistics companies embrace this technology to stay one step ahead of the weather.

Infrastructure Improvements

We can’t control the weather, but we can control our infrastructure. Regular road maintenance, especially in areas prone to snow and ice, is crucial. Sweden’s investment in winter road maintenance, including regular snow plowing and de-icing, is a prime example of how to keep transport running smoothly during harsh winters. Germany’s post-2021 flood improvements in flood defenses and drainage systems show that learning from past weather events can lead to better preparedness. If more European countries followed suit, we’d see fewer disruptions and more resilient logistics networks.

Flexible Supply Chain Strategies

Flexibility in supply chain management is another key to weathering the storm. Diversifying suppliers and maintaining buffer stock can significantly reduce the risk of supply chain disruptions. During the 2018 “Beast from the East,” many European retailers avoided stockouts by having diversified suppliers and buffer stock in regional warehouses. This kind of forward-thinking approach should be the norm, not the exception, in the logistics industry.

Technology and Automation

Technology is our ally in the fight against weather-related disruptions. IoT devices that provide real-time tracking and automated warehousing systems can make a huge difference. Maersk’s use of IoT devices for real-time tracking helped them minimize delays during severe weather by enabling quick re-routing decisions. Amazon’s automated warehouses in Europe continued processing orders efficiently even during storms, thanks to their advanced systems. These examples show that investing in technology is a game-changer for logistics companies facing unpredictable weather.

Collaboration and Communication

Effective communication and collaboration between stakeholders are crucial for improving weather resilience. Cross-sector collaboration and keeping customers informed about potential delays help manage expectations and maintain trust. During severe winter storms in 2019, UK logistics companies collaborated with the government to clear highways, ensuring the continued flow of goods. In Spain, courier companies used SMS and email notifications to keep customers updated during storms, maintaining customer satisfaction despite delays. This level of transparency and cooperation should be standard practice in the logistics industry.

Sustainable Practices

Sustainable practices are not just good for the environment; they also help mitigate the impact of weather on logistics. Climate-resilient infrastructure and using electric vehicles improve reliability and reduce environmental impact. The Netherlands’ climate-resilient infrastructure has maintained logistics operations during severe weather. In Paris, logistics companies’ switch to electric delivery vans ensured efficient operations during fuel shortages caused by a snowstorm, as these vehicles were less affected by disruptions in fuel supply. Embracing sustainability is a win-win for logistics companies and the planet.

Conclusion

Mitigating the impact of weather on logistics in Europe requires a multifaceted approach. By investing in advanced forecasting, resilient infrastructure, flexible supply chains, technology, and effective communication, we can enhance our resilience to weather-related disruptions. As Europe faces more extreme weather, these strategies are essential for maintaining the smooth flow of goods, benefiting businesses and consumers alike. It’s time for the logistics industry to take weather seriously and implement these proactive measures to keep our supply chains running smoothly, no matter what the forecast says.

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Digital twins help postal and logistics companies plan for the future

Outside of fantasy novels, nobody has a crystal ball to see into the future. However, postal services and logistics companies are building digital twins to achieve just that. Powered by data-driven virtual models that can simulate real-world operations, digital twins are allowing the sector to predict the future and plan for it.

Alexandra Ballestrem, Key Account Director, and Roosmarijn Schopman, Proposition Manager at Prime Vision, explore how digital twins are providing unparallelled foresight in logistics operations.

Reducing uncertainty

Postal and logistics processes are beholden to a multitude of factors, many of which are outside the control of a business. With customer expectations regarding speed of delivery at an all-time high, maintaining service levels during operational shocks is a constant challenge, as nobody knows what’s coming next. Consequently, companies are looking for tools to mitigate uncertainty and assist in contingency planning.

Mature logistics operations are highly automated. Whenever a parcel or letter travels through a sorting centre, it is photographed, scanned and tracked by a wide array of equipment. This generates masses of data, which can be stored and analysed to offer insights into an operation. Increasingly, postal and logistics companies are using these data streams to build digital twins.

A digital twin is a virtual representation of a physical object, or in this case, a process. By feeding real-world data into bespoke mathematic models that accurately reflect operations, owners of a digital twin can simulate how changing parameters can affect their business. With the masses of data required to drive the system already available from existing automation equipment, a digital twin allows almost limitless experimentation with minimal risk. While no crystal ball, it enables businesses to conduct effective contingency planning, and possibly more.

Digital Postage Twins

Take, for example, an increase in parcel or letter volumes. The key question is, are existing processes flexible enough to effectively manage this higher volume between current facilities? If not, is investment in a new sorting centre, equipment or staff required? Using a digital twin, businesses can feed increased parcel and letter volumes into the models, testing operations to get an answer. A new sorting centre will require at least five years to offer return on investment (ROI), so having a data driven system to properly inform the decision is invaluable.

Unforeseen breakdowns are another event that can be modelled and mitigated by a digital twin. With postal services operating 20 to 80 hubs in a country depending on size, what would happen if one were to go down? This can be replicated in the digital twin and the effects observed. More than that, it allows businesses to proactively plan and strategize to keep downtime and delivery delays to a minimum. Using the simulation, operators can find the best way to spread volumes and reduce the impact, rather than carrying out a time-consuming postmortem after the event.

The virtual world exerting physical control

While these scenarios focus on sortation, digital twins have plenty more possibilities. Simulations can be carried out to test how to use available floorspace within a warehouse and discover new efficiencies. Companies using robots can replicate their entire fleet digitally and find ways to optimise movement within a facility. If the data is available, delivery vehicles can be included to predict how goods could travel between different sorting centres for processing.

With coverage over an entire operation, a digital twin can actively influence the physical world and open the door to dynamic sorting and self-organising logistics. By creating a virtual counterpart of letters, parcels and pallets, the digital twin can make automatic decisions to adjust pick-ups, inbound goods, sorting and outbound deliveries to improve the speed, quality and flexibility of logistics processes. As a result, users can improve service while lowering operating and capital expenditure.

A proven partner for digital twins

Accessing the benefits of a digital twin is no easy task. First of all, a business must record as many physical events as possible via equipment in its facility. This helps to build a complete data set and deliver accurate predictions. With data collected and stored, a knowledgeable expert must turn customer process parameters and factors into working mathematical models and software. An analytical dashboard is also required to present results.

 

Digital twins

Prime Vision is an expert in building digital twins from the ground up. Its computer vision systems, analytical software, data storage solutions and robotics are embedded in the sortation process from start to finish, providing customers in its install-base with the data required to build an accurate simulation. Its digital twins are even compatible with products from other vendors, ensuring widespread coverage. The company specialises in seamlessly integrating its automation products with existing customer infrastructure.

In all cases, Prime Vision can flexibly unite sporadic sources of data to build a functional and impactful digital twin. Its research and development engineers are adept at translating physical operations into working software models and providing an accurate digital representation of unique customer processes. This can be hosted within a customer environment or by Prime Vision, either at a premises or on the cloud.

For postal or logistics companies looking to take a proactive approach to contingency planning, a digital twin is essential to make the right predictions and decisions. By partnering with an expert like Prime Vision, these businesses have no need of a fortune teller to secure efficiency and future resilience.

More from Prime Vision:  https://primevision.com/the-letterverse-digital-twins-help-postal-and-logistics-companies-plan-for-the-future/

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IAG Cargo restarts services to Abu Dhabi

IAG Cargo, the cargo division of International Airlines Group (IAG), is announcing the start of its summer schedule which will see an increase in services between its core hubs in London, Madrid, Barcelona and Dublin to key destinations across the world.

  • Restarted services between London and Abu Dhabi for the first time in four years
  • Increased services to the Middle East and Latin America as part of the new summer schedule

As part of the new schedule, services between London Heathrow (LHR) and Abu Dhabi (AUH) will return on the 20th April following a four-year hiatus. This route will benefit from the use of a Boeing 787-9 widebody aircraft and forms part of a 19% increase in weekly rotations to Africa and the Middle East.

Key transatlantic routes will also see a boost in capacity, with a 9% increase in services to Latin America and the Caribbean. This includes an additional three services per week to Buenos Aires (EZE) and up to four services per week to Sao Paulo (GRU) out of Madrid. Furthermore, there will be a doubling of weekly services between London Heathrow and San Diego (SAN), and an extra seven flights per week to Chicago (ORD). IAG Cargo has also launched a new service between Barcelona and Miami (MIA).

Camilo Garcia Cervera, Chief Sales and Marketing Officer at IAG Cargo, said: “The new summer schedule will offer enhanced capacity and greater flexibility for our customers. We are particularly pleased to expand our offering in Africa and the Middle East, including the resumption of operations in Abu Dhabi after a four-year absence from our schedule. Abu Dhabi International Airport is emerging as an increasingly important regional logistics hub with state-of-the-art facilities and we are excited to contribute towards its further growth.

Out of London, IAG Cargo offers capacity to six continents with over 600 weekly wide-body services. Additionally, Dublin serves as a gateway to North America, boasting over 80 weekly wide-body rotations. The business now offers over 240 weekly wide-body services connecting Madrid and Barcelona with destinations across North America, Latin America and the Caribbean.

Other Recent Schedule Changes Include:

  • Barcelona – San Francisco – restarted on 31st March
  • Madrid – San Francisco – restarted on 2nd April
  • Madrid – Washington – Restarted 2nd April
  • Increased capacity from London to Cincinnati, Chicago, Haneda, San Diego and Vancouver
  • Increased capacity from Madrid to Buenos Aires, Boston, Dallas, Los Angeles, Rio de Janeiro and Sao Paulo.

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Tiger Trailers Provide New Vans for Warburtons Fleet

One of Britain’s leading bakery brands, Warburtons, has selected Tiger Trailers to supply 38 rigid box vans to its nationwide fleet of trucks, that transport fresh bread to around 18,500 locations daily, around the nation.

When Warburtons approached Tiger in the winter of 2022, they needed the vehicles to be built to match their specific operational requirements. Expected to become part of a busy retail delivery fleet, they needed a custom, clever, and ergonomic design with robustness and usability as key components.

With regular visits to Tiger’s factory and 3D-model review sessions during the initial design phase, Warburtons was impressed by Tiger Trailers’ thorough build quality, consistency, and attention to detail displayed in their vehicles, as well as an ultra-modern facility and assurance of on-time delivery.

Steve Gray, Head of Transport at Warburtons, comments: “It has been reassuring to have been involved throughout the design and manufacturing process. We have taken delivery of 10 of the vans already and are very impressed with the final product. We are looking forward to a further 28 due joining our fleet in spring this year.”

Transport Truck
Warburtons’ New Rigid Box Van

Building the Fleet

Built on 14-tonne DAF chassis from local firm Lancashire DAF, each rigid is fitted with Warburtons-specification racking along its sides, along with adjustable centre aisle load bars to suit the customer’s loading requirements. The rigids also boast crew doors on each side of the body’s rear, to expedite the loading process, access to which is covered with a hinged alloy floor section, maximising load capacity. The Dhollandia tail lift aids drivers with large loads, and the two Labcraft B3 Banksman reversing lights help in low-light conditions. They are finished in Warburtons’ trademark orange, painted in house at Tiger.

Tom Stott, Technical Sales Manager at Tiger Trailers, comments: “It’s been a pleasure to work closely with Steve and his team at Warburtons. At Tiger we are proud to offer competitive lead times, and guarantee a premium product without compromising on quality. To have done so for one of Britain’s most-recognisable brands is something to be celebrated, and we are hopeful to build on the relationship we have established with Steve and Warburtons in the future.”

Ten of Warburtons’ new Tiger rigids, delivered in late 2023, can already be seen out on the roads, operating out of several of Warburtons’ 22 nationwide depots.

Partnership for Europe-wide Additional Transport

DPD Germany and Berlin-based LogTech company InstaFreight are entering into a strategic transport partnership. The aim is to further digitalise and optimize the purchasing and management of additional capacity in the DPD full truckload network. By using the platform, the transport process becomes more transparent and efficient, enabling DPD customers to use transport capacities in the DPD network even more quickly and flexibly.

The InstaFreight platform bundles freight space from a total of over 25,000 qualified carriers. In partnership with DPD InstaFreight acts as a cost-neutral Fourth Party Logistics Provider (4PL). In doing so, the company makes its platform and operational know-how available to DPD for the purchase and management of additional transport in the full load network. In a pilot project lasting around a year in northern Germany DPD has already multiplied its carrier base with InstaFreight, further increasing both the reliability and flexibility of the DPD network. During the freight space search, the best offer for the desired route is now selected and the transport order is transferred directly to the respective carrier via the platform. In the pilot phase alone several thousand full load transports were awarded in this way. In the meantime, all DPD’s national and Europe-wide additional transports are orchestrated via the platform.

InstaFreight is the leading digital logistics company for land transportation in Europe, operating on a single platform as both a 3PL (Third Party logistics provider) and as a cost-neutral 4PL operator through its Transport Management service. Founded in 2016 and headquartered in Berlin, the company handles several thousand Full Truckload (FTL), Less Than Truckload (LTL), and Less Than Container load (LCL) shipments on a weekly basis. InstaFreight’s business model grants shippers access to freight capacity that would otherwise be challenging to secure at this scale. The technology employed by InstaFreight digitizes and automates the execution of transportation, resulting in efficiency and transparency advantages throughout the transportation process.

Besides noticeable cost reduction, InstaFreight and DPD have jointly digitized the process steps related to partner management. The digital coordination of the haulage companies also simplifies daily work processes and supports resource-saving road freight transport by avoiding empty runs.

“After the successful pilot phase and the Germany-wide rollout we are looking forward to the long-term cooperation with InstaFreight. This will enable us to handle our purchasing and the provision of additional capacity even faster, more transparently and more efficiently in these difficult global economic times,” explains Simon Nissen, Director Network Planning & Optimisation at DPD Germany.

“Being able to offer an experienced organization like DPD a variety of benefits in the purchasing and management of transport capacities fills us with pride. DPD Germany is an important anchor customer for us, with whom we have jointly developed and piloted our solution for spot FTL shipments. This freight cost-neutral 4PL solution will also be available to other shippers in the future,” says Maximilian Schaefer, Managing Director and Co-Founder of InstaFreight.

Data Everywhere: AI in Logistics

Most shippers, carriers and logistics service providers understand the importance of data collection and data-driven decision-making. Data collected over time provides intelligence, enabling companies to enhance long-term decision-making. Meanwhile, real-time data can be used to make smart split-second decisions – like how to correct or replan when problems occur.

Artificial intelligence is a potent tool that helps companies get the most from their data. This takes several forms. “Statistical AI” enables users to analyse huge quantities of information to find hidden patterns and make smart decisions. Meanwhile, companies can use past data to programme “symbolic AI” models, which can be used for “purpose-seeking” applications, such as process optimisation. Jonah Mcintire (pictured), Chief Network Officer at Transporeon, A Trimble Company, explores further.

Automation vs. AI – understanding the difference

Automation and AI are often spoken about in the same breath, as if they are synonymous. However, though they’re interlinked, there’s an important distinction between the two. Automation involves delegating mundane, often administrative, tasks to software. It’s clerical. On the other hand, true AI involves handing over decision-making power. Software is given set parameters, but it will use them to draw unexpected conclusions. Users can give AI varying degrees of freedom. A more cautious approach is to allow software to calculate options and make recommendations for a human to approve. However, it’s also possible for it to reach conclusions and make decisions autonomously, without even informing a human.

So, where can AI in logistics transportation have the most impact? The short answer is ‘everywhere’. In fact, forward-thinking shippers, carriers and logistics service providers are already integrating AI into their tech stacks.

There are a few considerations to keep in mind. AI is best used for decisions with concrete financial values that are easy to score and have discrete, well-known variables. Fast decision-making cycles are also important. Like humans, AI learns from experimentation. So, if a decision is only made annually, it will take decades for the software to gather enough data to get feedback. Realistically, you want AI models to analyse thousands of decisions per day. Ideally, players would use models trained not just with their own data, but with data gathered from across the industry. This collaborative (also known as “platform”) approach enables everyone to get ahead.

So, how AI can transform how companies utilise their data through autonomous procurement, real-time ETA tools and decarbonisation?

Real-time ETA tools

The disconnect between shippers and carriers has long been a challenge in the logistics transportation industry. To enhance visibility, transparency and efficiency, we need to connect load receivers and load givers. For example, predicting arrival times for loads has traditionally been a pain point for both shippers and carriers. Common causes of delay – like strikes, traffic jams and mechanical difficulties – can seem completely random to the human eye. But when an AI model analyses years’ worth of this data, hidden patterns do emerge. Typically – unless circumstances are truly unprecedented – AI is much better at predicting ETAs and with the help of an AI-assisted real-time ETA tool, companies can ensure they’re prepared to receive loads whenever they arrive.

Automating procurement and quotation

Spot buying is a perfect use case for symbolic AI, as companies have a set budget and clear constraints around lead times and carrier types. Beyond this, the structure of negotiations is relatively simple – participants can make an offer, wait for a response, make a counteroffer, accept an offer, or end a negotiation. This makes it easy for software to pursue its goals independently, saving thousands of manual administrative hours.

This is just one example. In the procurement space, statistical AI can also revolutionise tendering by using huge quantities of data to predict pricing. For example, instead of asking carriers to bid on a load tender, AI can present said tender – and a pricing offer – to a select number of carriers. If no carrier accepts the tendered load at the offered price, the AI can initiate additional tendering rounds as needed.

AI can also have a transformative effect for sellers of logistics services, enabling them to automatically serve customers with instant, accurate pricing for spot transports based on predicted market rates. With this ability, load takers can increase the volume of opportunities they quote for and ultimately win more new business.

Decarbonisation

The logistics transportation sector is under pressure to slash its carbon emissions. End-user customers are leaning on shippers to decarbonise. Meanwhile, shippers are putting the same pressure on carriers by contracting them based on their sustainability practices, offering longer freight contracts to environmentally responsible carriers, and even paying a premium for lower carbon transport.

With sustainability now affecting the bottom line, it’s no surprise that decarbonisation is rising to the top of the agenda for both shippers and carriers. So, how can AI help with all this? The first thing to emphasise is that – unlike procurement – there’s often no single ‘right’ answer when it comes to sustainability. Companies may have differing ideas of the optimum strategy, carefully balancing ‘cost vs. emissions’ or ‘certainty vs. emissions’. However, once shippers, carriers and logistics service providers have decided on their risk appetite, AI can play a crucial role in helping them stick to their goals.

Companies typically adopt one of two mentalities. The first is a cap-and-trade strategy, where the company decides that it won’t tolerate more than X emissions. The second is a carbon tax, where a company decides to offset its emissions. For both of these strategies, shippers and carriers can factor ‘price per ton of emissions’ into procurement events. Statistical AI can be a helpful decision-making tool. For example, when deciding which mode of transportation should be used for each shipment.

The future of AI in logistics transportation is collaborative

We’re at an important inflection point in the use of AI in logistics transportation. It’s poised to slash administrative work and help companies become more efficient and sustainable. But achieving this depends on effective data gathering and sharing. This is where cooperation between industry players comes in. To maximise positive outcomes for everyone, shippers, carriers and logistics service providers need collaborative digital platforms to share data to feed AI models. Looking ahead with this approach, we can significantly accelerate our progress towards reaching the industry’s digitalisation and decarbonisation goals.

The Benefits of Sustainable Transportation

Whether you agree that there is a climate change crisis or otherwise, it’s indisputable that sustainability has become an important aspect for businesses. Consumers want to buy from companies that operate in an eco-friendly way.

That’s a real challenge in an industry in which the use of transport and machinery to help prepare goods and get them from one destination to another, which could be a large distance, is so heavy. Wouter Satijn, Sales Director, Joloda Hydraroll, outlines the importance of sustainable transportation, what it means for businesses, and how to take steps towards operating a sustainable transportation company.

The importance of sustainable transportation

According to the World Bank, transport is the fastest-growing source of energy-related carbon emissions. Depending on where you live, transport contributes between 12 and 70% of urban air pollution. Indeed, the World Health Organisation’s (WHO) data suggests around 2.4 billion people are exposed to dangerous levels of household air pollution, and that such pollution kills 13 people per minute.

So, how can industry make transport more sustainable?

First, let’s consider what sustainable transportation actually is. Sustainable, or ‘green transportation’, is a broad term that describes the way an organisation might work to make its transportation practices and vehicles more environmentally friendly. Sustainable transport can also mean a variety of things, depending on the location in which it’s being implemented. It could create scope for a better quality of life for the citizens. It could mean working towards a more functional but green city. It could even mean bridging an inequality gap. Within a business context, examples of sustainable transportation measures may include using an electric vehicle fleet or reducing the number of miles between stops on routes that have more than one stop.

Within any setting though, there are three guiding elements – or Sustainable Development Goals (SDG) – that sit at the core of sustainable transport:

  • Social: the development of safe, secure, and accessible mobility choices
  • Environmental: creating solutions that decrease emissions and pollution, and protect the environment
  • Economic: making the cost of transportation more affordable

Successful achievement of these elements of sustainable development also requires clear governance and management from the highest level within any organisation.

The cost-saving benefits of sustainable transportation for businesses

Being sustainably responsible generates a host of benefits for businesses. One of the main ones is savings on costs because the business can lower its usage of fuel and energy, and potentially lower its insurance costs. Government schemes that encourage businesses to transition to more environmentally friendly modes of transport can reduce costs further by supporting the business when it’s buying new vehicles.

Of course, being socially and environmentally responsible brings more benefits than just cutting costs and financial support. A clear commitment to the environment enhances brand reputation and has clients and consumers more willing to work with you and buy from you. These aren’t the only stakeholders to have an opinion: employees will also form a better opinion of the business, with better working relationships. All of this will be happening while the business enjoys greater long-term profitability.

Driving cost savings and environmental responsibility in business transportation

For businesses in particular, there are a range of practices that minimise the impact the network and delivery have on the environment. Making efforts to make transportation and other operations more sustainable can help a business to lower its emissions and reduce its carbon footprint, while driving cost savings.

These practices might include:

  • Route optimisation – the use of dynamic route allocation and optimisation software to cut fuel costs, promote business transportation efficiency and create a more eco-friendly transport solution.
  • Cargo consolidation and load optimisation – the practice of combining more than one shipment into a single load and / or coordinating items (in warehouses and distribution centres) that have a similar estimated time of arrival (ETA) or destination. Today’s volumes make this task just about impossible to do manually, but the use of smart supply chain solutions can identify and automate vehicle loading.
  • Solutions in sustainable transportation

The World Bank suggests two evidence-based things: a mass transition to a more efficient, electrical fleet, which, to do in cities worldwide, would call for a total incremental investment of US$8.6 trillion. However, the World Bank also highlights that making transport more sustainable won’t necessarily reduce congestion, but merely electrify it. To substantially contribute to decreased carbon emissions, in addition to the best practices outlined above, we must embrace a modal shift to mass transit.

Such mass transit, of course, comes with considerations around the combined weight of goods that need to be transported. This is where automated loading systems, for example, can support businesses with operational logistics, enabling them to load and unload heavier vehicles safely and efficiently.

Not only that, though, but they offer several sustainability benefits. These can include:

  • Lowering fuel consumption by reducing the quantity of trucks and eliminating the need for forklift trucks.
  • Reducing waste by minimising product damage.
  • Reduction in the size of the fleet necessary to transport the same number of pallets.
  • Reducing waiting times for loading and unloading.
  • Enhancing control of energy usage in factories and warehouses by moving the loading operation indoors.
  • Increasing safety in the workplace through less need to use forklift trucks in loading and unloading.

Conclusion

Sustainable transportation is, today, key to a business’s profitability and reputation. And there are myriad ways to take steps toward greener, more sustainable transportation practices. It is, therefore, important to embrace a holistic approach to sustainability solutions and work collaboratively with a logistics solutions partner who can help identify the right approach to take.

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