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Logistics is an industry that doesn’t get attention until there’s a problem. Unfortunately, the pandemic has caused one problem after another, with non-stop delays and bottlenecks around the world.

As logistics professionals come out from underwater, they’re dealing with the fact that they cannot resume business as usual. Fortunately, these challenges present a new reality and opportunities in remote collaboration. This includes using technology to achieve greater visibility into their organizations, and developing end-to-end, collaborative business processes that involve all the players in the supply chain.

Remote Collaboration in Logistics

Remote collaboration is the use of technology to bring together people from different locations for a common purpose. It’s driven by advancements in cloud computing, real-time videoconferencing, and other forms of telecommunications that have made it easier to collaborate with people across distances. Leaders in logistics can benefit from remote collaboration because it allows them to tap into a wider range of industry experts and connect more easily to their end customers.

One of the biggest challenges in logistics is gaining a true sense of a facility or area that an employee can’t physically visit. This helps with planning and operations, but it’s also important from a security perspective because it allows leaders to understand what areas present risks for their workers and what areas might be hiding dangers. Advances in 360° technology, such as real-time 360° collaboration, allow leaders, customers, and experts to see any area from a remote location.

For example, during the heat of the pandemic, DB Schenker, a global logistics leader, leveraged 360° technology to conduct virtual warehouse tours. During these tours, DB Schenker brings potential customers on site to view their facility and explore their offerings without the time, cost, and environmental impact of physical travel, which in turn helps drive sustainability goals. They estimate saving millions in travel costs.

Below are 5 key benefits of remote collaboration for logistics leaders.

#1 Massive Cost-Saving Potential

Swapping site visits with virtual inspections/tours saves on average $2k per person, per visit. This money can be reinvested into other scalable projects. Remote collaboration is meant to augment an existing collaboration protocol. With the right tools at their disposal, logistics leaders can select which visits they can conduct remotely and how they can reallocate funds to other areas of business growth.

#2 Sustainable Solution

Business travel is a leading culprit in carbon emissions. For example, a relatively short return trip from London to Rome carries a carbon footprint of 234kg of CO2 per passenger.

Reducing reliance on travel allows businesses to reduce greenhouse gas emissions over time, thereby helping organizations meet carbon reduction targets without major disruptions to their business.

#3 Minimize In-Person Disruptions

With 360° remote collaboration, leaders and onsite personnel can get their time back. Instead of spending travel time and several hours on site, leaders can see what’s happening and discuss all the details in a single meeting.

Typical on-site visits disrupt routine workflows. For example, visits such as facility tours or audits may involve schedule changes for on-site personnel. This might only take a few hours out of the day but could significantly disrupt workflow. Leaders that use remote collaboration can reduce or eliminate these disruptions, allowing them to get work done.

For attendees, the average business trip involves 6.9 hours lost that could otherwise be spent productively and often involves a physical and mental drain on the travelers.

#4 Conduct More Frequent Visits

By avoiding logistical challenges with travel, leaders in the logistics space can reimagine how often they want their team or customers to be on site.

With remote tools at their disposal, they can increase the frequency of routine audits or bring customers/stakeholders on site more often for updates and decisions. Having more site visits virtually will only help on the efficiency side and improve quality control.

#5 Maintain Safety of Sites and Personnel

Remote collaboration also provides logistics leaders with another security benefit – personal safety – by allowing them to conduct more business from their homes or offices, away from any danger that might be present at a particular location. Having a remote protocol in effect helps leaders overcome travel challenges or COVID related shutdowns.

At the end of the day, logistics leaders should consider how remote collaboration tools can add value across the entire organization. Creating measurable goals, reallocating funds based on current needs, conducting more frequent visits for customers or employees, reducing in-person disruptions, and increasing access to decision makers are just some of the benefits that come from selecting remote collaboration tools built for site visits.

Technology is not a replacement for all physical interactions. In certain cases, logistics leaders might want their team or customers/stakeholders to visit their locations as opposed to meeting online. Having the option to have meetings with multiple people from different time zones in one space is already our future.

Source: www.inboundlogistics.com

Author: Devon Copley, Founder and CEO, Avatour

Image: www.pexels.com

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Houston-based Industrial Service Solutions (ISS) announced Thursday it is seeking bids from U.S. shipyards to build up to four hulls for what will become North America’s first fully-electric towboats.

The zero-emissions vessels, which will be constructed for New York-based Zeeboat and available for charter from 2025, will run entirely on battery power, without the use of diesel engines—a first for towboats in North America. Vancouver, B.C.-based Shift Clean Energy will deliver the battery energy storage systems.

ISS, which was selected in 2021 to provide general contract, project management and vessel support services for the manufacture and delivery of the first-of-their-kind vessels, said its request for proposal (RFP) will be open form May 15 through June 30, 2022 and is for construction of the first hull, with options for up to three additional hulls.

The fully-electric vessel is based on The Shearer Group, Inc.’s (TSGI). proven 95- by 34-foot  towboat hull design, which is said to increase water flow to the propeller and improve overall efficiency of the barge/towboat combination by more than 10% compared to traditional towboat designs. When coupled with an azimuth thruster pod drive system, the hull design will improve overall efficiency by more than 30% when compared to conventional towboats, the Houston-based naval architecture and marine engineering firm said.

The project partners said their first goal is to enable greener transit with zero-emissions towboats, but they will later work toward a joint development of electrification technologies to further reduce the carbon footprint of ports and harbors.

“Moving carbon-intensive processes, like shipping and port management, to electric power sources is a critical step to meeting net-zero emissions targets,” said Wade Stockstill, ISS CEO. “Our electrification technologies and track record dovetail neatly with innovations from partners like Shift Clean Energy, enabling ISS to deliver turnkey solutions to some of today’s biggest green energy challenges.”

ISS said interested shipbuilders should contact its director of business development, Jessica Lewis, at Jessica.Lewis@iss-na.com for RFP submission information and detailed project specifications.

Source: www.marinelink.com

Image: www.pexels.com

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Software firm Dakosy has urged the air cargo industry to start preparing for the latest phase of the European Union’s (EU) Import Control System (ICS) for security declarations.

ICS2 means that from March 2023 airlines will need to submit shipment information to a new centralised system named the Shared Trader Interface before the goods are loaded onto an aircraft.

Previously, the shipment information needed to be submitted electronically no later than four hours before arrival at the customs authority where the goods first reached the borders of the EU.

In another change, airlines can submit only the basic information and the forwarders and logistics providers can add the more sensitive details to the Shared Trader Interface at a later date.

This provides competitive protection for forwarders as they are not sharing customer details with the carriers.

Simon Lembke, director of customs and forwarding applications at Dakosy, said: “Freight forwarders and logistics providers no longer need to disclose the names of their customers and their related critical data to the shipping companies or airlines in the course of the procedure.”

Dakosy said that participants in the ICS process should prepare for the changeover in good time.

“It must be ensured that sufficiently precise data can be provided,” explained the software firm. “A standardised format called the Entry Summary Declaration (ENS) has been defined for ICS2, which does not permit any deviations.

“The required accuracy of the data is also becoming stricter, for example in the case of the HS code (Harmonised Commodity Description and Coding System). Previously, either the goods description or at least four digits of the HS code  had to be provided for the entry summary declaration; in the future, all six digits of the HS code must be transmitted.”

Lembke added: “For our customers, which include many major airlines and shipping companies, we already work with this format. So for them, by and large, everything remains as it is, and we take care of the new reporting path and, if necessary, an adaptation of the interfaces.

“However, we recommend checking well in advance to find out the extent to which business processes need to be updated and employees need to be trained.”

Source: www.aircargonews.net

Image: www.pexels.com

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Global ports lost more than one-third of their expected capacity to ship containers in 2021, causing economic trouble for some smaller developing nations, among others, finds research commissioned by the Global Shippers Forum (GSF).

The study, which was conducted by MDS Transmodal, identifies the extent of capacity restriction in 2021 that resulted from scheduled port calls being skipped by shipping lines. It measured the number of container ship slots that were expected to be available at the port but never materialized because the lines skipped the port—often because vessels were already fully occupied by containers collected at ports called at earlier on the service.

Skipped ports have become part of how shipping lines are managing their heavily utilized fleets.

“Skipped port calls have multiple effects on shippers,” says James Hookham, director of the GSF. “They create local upward pressure on shipping rates, as shipping line agents ‘auction off’ available slots on the vessels that do call. Shippers also face unexpected surcharges for the handling and storage of delayed containers.

“More pernicious is the wider effect on national economies, especially those of developing nations that lose opportunity to deliver their exports, and hinder the recovery of their economy from the effects of lockdowns and COVID restrictions,” Hookham adds.

Source: www.inboundlogistics.com

Image: www.pexel.com

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Industry 4.0 is a revolution in manufacturing and holds promise for improving supply chain efficiency and flexibility. The convergence of technology disruptions—automation, analytics, artificial intelligence, and augmented reality—drives this revolution. Why is digitization important and what key technologies are fueling the shift?

Intelligent supply chains. Intelligent technologies, such as automation, remote fleet management, and cargo tracking, are transforming supply chain technology to provide in-depth, real-time insights into locations and cargo status.

Cloud-based GPS and RFID technology provides instantaneous updates on cargo location, whether in warehouses or in transit, and assessing transportation performance and efficiency.

Digital thread. A digital thread is a communication framework that can share information to data consumers in a continuous feedback loop. A communication framework can ensure the entire supply chain is responsive as shifts in volumes, manufacturing, design, and through-life service occur.

For this to be effective, workflows and people need to be integrated. This marks the evolution from supply chain network to integrated value chain, allowing suppliers and customers to achieve collaboration and efficiency while reducing costs.

Demand-driven supply chain management. In transportation and logistics, decisions need to be made quickly and agility is essential. Demand-driven supply chain management has been part of the industry for some time, but the high volumes of data and deep insights require a step up from traditional methods. In the past, forecasting was based on historical demand, but that may not be enough with the influx of data and current demands.

IoT-embedded sensor technologies enabled with predictive analytics and machine learning can gather, analyze, and report insights from the environment and provide real-time responses to stay agile in the face of increasing demands. Data also offers insights to inform decision-making and build strategies and contingencies to adapt to future obstacles and maintain high levels of customer service, sales, and efficiency.

Cyber threats. Bad actors have more opportunities to exploit vulnerabilities in a digital supply chain, especially with third-party vulnerabilities that grant access to the real target. Conversely, manufacturers can have gaps that provide access to suppliers, destroying brand relationships across the entire ecosystem.

Suppliers and manufacturers need a rigorous protocol and evaluation process to assess risk and create stringent security across organizations and partnerships.

Meeting customer expectations. Customers have become used to fast order processing and deliveries and have little patience for delayed orders. To respond to these demands, some manufacturers are switching to centralized distribution and real-time inventory management.

The increasing demand for hyper-customization is also fueling shifts and linking the customers to the supply chain. Rapid prototyping and additive manufacturing are restructuring supply chains and more manufacturers are choosing on-premises manufacturing capabilities with lower waste.

Digitization holds promise for addressing current challenges in the supply chain environment and creating more opportunities moving forward.

Author: David L. Buss , CEO, DB Schenker

Source: www.inboundlogistics.com

Image:

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Airlines have been ramping up their digital booking offerings over the last few years in response to market volatility.

A survey carried out by booking portal Freightos found that 46% of air cargo carriers now enable instant rate searches for quotes on their websites compared with 10% in 2019.

Meanwhile, 33% offer e-booking with instant confirmation compared to 25% in 2019.

But there is still room for development, with 21% offering instant allotment booking and 4% allowing payments to be made online.

Freightos said that the most widespread digital stride among air carriers was the leveraging of third-party platforms to extend their online reach.

The research shows that 46% of leading air carriers provide instant rate search through third-party platforms and 42% also enable e-booking through these channels.

Shipment tracking is also widely available, with 42%providing this as an option.

Freightos said the adoption of third-party platforms was higher in air than ocean, where just 18% offer e-booking on portals.

“In the fragmented air market – compared to the consolidated ocean market and the growing leverage the pandemic has shifted to ocean carriers – airlines are eager for the low-touch access to new customers, new segments and new geographies that platforms represent, even at the cost of making price and service comparisons easier,” Freightos said.

“And the volatility of air cargo during the last two years served as a catalyst for this trend.”

The overall shift to digital booking was accelerated by the pandemic, the company said.

“The rush on PPE early in the pandemic, just as passenger travel plummeted, was an extreme example of the volatility in the air cargo industry over the last two years.

“The fast pace of air transport only quickened as labour shortages and ever-shifting quarantine requirements led to frequent operational changes.

“This environment accelerated the ongoing search many carriers had already been engaged in for improved internal efficiency and faster ways to communicate and transact with customers.

“Like in ocean freight, the pandemic accelerated the pre-existing trend toward digital connectivity.

“While carriers made gains in their website offerings and API connections, the biggest shift was in leveraging third-party platforms to extend their reach.”

Johnny Rubio, chief commercial officer of Silk Way West, said that online booking portals allowed carriers to introduce e-booking without a massive amount of investment in resource and capital and also makes its services more visible to a wider customer base.

IAG Cargo head of distribution Peter Roberts added: “Not only have our e-bookings increased, but the average weight per e-booking has too, suggesting that customer trust is growing.

“In addition to improving both customer satisfaction and our reach, the data unlocked through e-booking enables better business intelligence and a data-driven strategy.”

Source: www.aircargonews.net

Image: www.pexels.com

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The European Union Aviation Safety Agency (EASA) will put a stop to cargo-in-the-cabin flights beyond July 31.

The use of the passenger cabin for cargo, known as cargo-in-the-cabin flights, have been operating since 2020, after the EASA issued approvals and exemptions for the transport of cargo in passenger cabins on a case-by-case basis.

These approvals and exemptions were time-limited and while the EASA extended the rules in August 2021, it will not extend the timeframe again, it said in a statement on April 11.

The decision to allow cargo-in-the-cabin flights followed the grounding of passenger aircraft at the start of the pandemic and the subsequent high demand placed on freighter aircraft. In addition to the use of cargo-in-the-cabin flights (with seats in place and seats removed) the pandemic also saw a number of airfreight stakeholders invest in passenger to freighter aircraft conversions.

However, passenger operations – and therefore the availability of bellyhold capacity – are beginning to ramp up while the need to transport urgent pandemic related cargo such as PPE has eased.

The EASA said it “has concluded that the logistical challenges that arose in 2020 as a result of the Covid-19 crisis no longer exist to the same extent”.

In its Issue 6.0 guidelines for “Transport of cargo in passenger compartment – Exemptions under Article 71(1) of regulation (EU) 2018/1139 (The Basic Regulation), published on April 11, it further explained: “Cargo capacity in the holds of passenger aircraft is expected to increase by summer 2022, thus reducing the pressure on the logistic chain.”

The EASA said that in accordance with the guidelines it has “determined that the exemptions delivered in this context will not be extended beyond the current validity of July 31, 2022. The same applies for existing approvals that have been granted based on the use of the Deviation on transportation of cargo in passengers compartments.

“This Deviation can also not be applied to any certification projects for which the approval is issued after that date.”

The Civil Aviation Administration of China (CAAC) last year ruled that from January 2022 the passenger cabins of China-registered aircraft would only be able to carry pandemic-related cargo.

However, contacts have told Air Cargo News that Chinese carriers have continued with cargo in the cabin flights past the deadline.

European regulator extends temporary-freighter exception into 2022

US extends cargo-in-the-cabin exemption

Chinese airlines to refit seats in response to stricter cabin rules

Source: www.aircargonews.net

Image: www.pixibay.com

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COVID tightened up the supply chain with shortages of medical supplies, computer chips, consumer products, and household goods. Not only has demand increased relative to supply, but employee and customer satisfaction continue to be on the decline.

Many corporations have taken proactive steps toward improving customer and employee satisfaction and have appreciated the rewards of taking this stance. At Legacy, we found that truck drivers truly enjoy and value their job despite recent challenges and there is a good reason for this.

In contrast to an office, drivers spend their days on the open road enjoying the beauty of the countryside or the bustle of the city. They experience the freedom of working on their own and the reward of delivering valuable products to customers every day.

Maintaining a strong driver workforce to meet demand has become increasingly important. Acute shortages of front-line truck drivers have directly impacted the supply chain. It is critical that companies nurture these valuable team members for long-term retention.

Ensuring employees, particularly drivers, are happy is an initiative that every employer should take seriously. Legacy identified the following five key factors that contribute to improving and optimizing truck driver retention rates.

2. Understand the market for quality drivers and build compensation packages accordingly. Wages, as well as bonus structures, are accelerating rapidly as demand increases. You must remain continually competitive to attract and retain good drivers. Creative benefits, like providing streaming services, can help round out your offerings.

3. Stay in communication with drivers. This ensures that they understand the value of their job, can provide powerful feedback, and bring new ideas to management from their on-the-road perspective. Listening often is a valuable way to keep drivers happy and engaged.

4. Recognize high performance. When drivers go above and beyond in terms of safety, service, and productivity, provide incentives and formalized recognition programs to show your appreciation. It also makes sense to establish highly visible key performance indicators so both management and staff are working toward the same goals.

5. Use technology more effectively. Technology is a powerful tool that can help drivers find routes, use safer roads, and minimize traffic jam situations. Fleet tracking devices and transportation management systems can be used to optimize their drive. AI-powered dashcam programs that proactively help protect drivers from potential accidents can drive safety and compliance improvements.

The individuals on the road ensure customers’ products make it to their destination safely and on time. This is vital to our economy’s livelihood.

Manufacturers, consumer goods companies, and retailers must get creative, smart, and strategically savvy when it comes to overcoming the challenges of supply chain demand through transportation effectiveness, and that includes a major consideration of how they attract and retain quality drivers.

While it’s becoming a balancing act between higher costs and meeting demands, one fact is certain—without a strong transportation system, backed by happy drivers, customers would not receive their products on time.

Author: Mike Glodziak, President & CEO, Legacy Supply Chain

Source: www.inboundlogistics.com

Image: www.pexels.com

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Looking at the market trends and possible challenges of 2022, industry experts have made various assumptions, but no one could have predicted that the industry would have to deal with something that Europe has not experienced for decades: active warfare.

For more than a month, the Ukrainian army has been resisting Russian occupation in a bloody battle. Although the people of Ukraine and Russia suffer most directly from the war, the rest of the world has also indirectly fallen victim to Putin’s decisions. I have already explained the impact the war in Ukraine has had on the freight sector as a whole, but I would now like to highlight the ongoing air transport sector. It is currently suffering not only from soaring fuel prices, but also from a lack of capacity, which is also having an irreversible effect on consumer wallets around the world.

Capacity is affected not only by ban but also by destruction

In early March, two weeks after Russia’s invasion of Ukraine, Northeast Asia-Europe’s transport capacity had fallen to 22% since the pre-war period. Now, almost a month later, it is even lower. The capacity of air carriers is most affected by the sanctions imposed on Russia. As a result, the delivery of goods to Europe is banned for the largest Russian cargo airline operator Volga-Dnepr, whose subsidiary AirBridgeCargo has more than 800 different cargo aircrafts. However, this is not the only aspect that affects the capacity of hauliers. Aircrafts destroyed as a result of war, which rubs salt into the wound of the industry, also play an important role. For example, in the battle against Hostomel Airport, the industry lost a historically unique specimen – the world’s largest cargo plane, the Mriya. Although the Ukrainian government has announced that every effort will be made to rebuild the plane, it will take time and at least $ 3 billion. It has also recently been confirmed that AN-26 and AN-74 aircrafts have been destroyed as a result of the Russian invasion.

To Asia around Russia

Due to the war, many air carriers have decided not to cross the airspace of Russia, Ukraine and also Belarus, citing the safety factor of employees as the main reason. This position has been publicly confirmed by industry giants such as UPS, DHL and FedEx, which own about 1,000 cargo planes. I believe that not only the issue of security, but also the image and political pressure of the company played a major role in making this decision. Now that most companies in various sectors are leaving Russian territory, thus clearly expressing their political position, the big logistics and freight companies must not lag behind either. It is clear to them, as to any other business expert, that the image of a company is easy to tarnish but hard to polish, and the smartest way to avoid becoming a black sheep right now is to turn your back on Russia.

Consumers become the victims

A series of all the above decisions and events will inevitably increase the costs for air cargo carriers, which will not only hurt market players but also consumers. There are already companies in the industry that are increasing the additional costs for international freight. One of them is FedEx, which took such a step in March. Although the company is one of the first to change its pricing policy as a result of events, it will certainly not be the last.

The most logical solution – more cargo planes

Once again, as in the Covid-19 outbreak, when the industry was struggling with a lack of capacity, the most effective solution is to transform passenger planes into freight transport. Such restructuring of airlines would significantly increase the capacity of air cargo carriers. Moreover, according to Insider, it is more profitable than buying new cargo planes. According to the media, such a move could save companies hundreds of millions of dollars. Airlines such as Qatar Airways and the Emirates Group, known to the general public as passenger airlines, took this step in early 2020. At the end of March, Alaska Airlines joined them, adapting five different passenger planes for cargo transportation.

Whatever the future decisions of air carriers, one thing is clear: only by working together in a crisis situation will it be possible to meet the needs of both the industry and the customer.

Author: Roland Peterson, logistics expert

Image: www.pexels.com

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