Backorder management is more than just keeping parts flowing
I recently attended MHEDA’s Parts and Service Management Conference, and as is often the case with these industry events, I came away inspired with content for this month’s edition. One of the presenters was an industry colleague who gave an insightful presentation on backorder management and building processes for unforeseen delays. As she noted, a phrase that is all too common for parts and service managers is, “We’re just waiting on parts…” Let’s take a closer look at this topic and explore how you can strategically minimize the negative impacts of backorders. Your customers have grown accustomed to same-day delivery and rapid fulfillment, and the pressure to meet high expectations is greater than ever. Backorders are not a matter of if but when, and when they occur, they can create significant disruption throughout the supply chain. The key to handling these challenges effectively is preparation — building processes and teams that can respond proactively rather than reactively. When a backorder occurs, it affects more than just inventory levels. The impact ripples through your entire organization. A low parts fill rate can cause service work-in-progress (WIP) to back up, technicians may become idle, and customer satisfaction can suffer. Uptime is crucial to your customer’s operation, so even minor delays can lead to significant financial loss for your customers, resulting in frustration and potentially damaged relationships. Strategies to reduce the impact of backorders The first step in managing backorders effectively is to have strategies in place that minimize their impact on daily operations and customer experience. Several key approaches to consider are prioritizing communication, optimizing inventory, being flexible in sourcing, and leveraging technology. Clear communication with suppliers and customers is essential. Build strong relationships with your suppliers and maintain open communication to anticipate delays and adjust as needed. Be transparent about delays and expected timelines to maintain customer trust and loyalty. Optimizing inventory is also crucial. Analyze historical data to identify back ordered parts and adjust stock levels accordingly frequently. Use predictive analytics to forecast demand and implement a dynamic safety stock strategy that adjusts based on lead times and demand variability, ensuring sufficient inventory without overstocking. Diversify your supplier base to reduce dependency on a single source. Establish multiple supplier relationships or alternative sources to create backup options and increase flexibility during supply chain disruptions with primary suppliers. Invest in technology that enhances supply chain visibility. Real-time data analytics can help identify potential issues before they escalate, while automated ordering systems keep you informed about orders and priorities. Discuss API services with your ERP provider and suppliers to enable real-time access to pricing, availability, order submissions, and shipment notifications. Developing adaptable team members Beyond strategy and technology, the people managing the backorder process in your organization are critical to its success. A well-prepared team can make all the difference in minimizing the negative effects of backorders. Regular training sessions can empower your team members to handle backorder situations with confidence and agility. Equip your staff with the knowledge and tools they need to make quick decisions, understand alternative options, and find creative solutions to supply chain issues. Cross-training is equally essential. When team members understand multiple roles, they can step in where needed, maintaining workflow continuity. For instance, a parts manager should understand service scheduling well, and a service coordinator should be familiar with the parts ordering process. This flexibility ensures that operations run smoothly, even when key personnel are unavailable. Create an environment where collaboration is encouraged and problem-solving is celebrated. Regular team meetings to discuss backorder challenges and share ideas can foster a culture of continuous improvement. Recognize and reward innovative solutions that improve backorder management processes, reinforcing a proactive approach. When team members feel empowered to contribute ideas and solve problems, they are more likely to take ownership of the issues at hand, leading to quicker and more effective resolutions. Standardizing backorder processes Consistency is key in any operational process, and backorder management is no exception. Standardized processes help ensure that every team member understands their role in managing backorders, which leads to more predictable outcomes and better customer satisfaction. Start by developing and documenting clear procedures for managing backorders. These procedures should cover every process step, from identifying a potential delay to communicating with the customer. Standardized workflows help reduce confusion, minimize errors, and provide a framework for continuous improvement. As mentioned earlier, technology can play a significant role in standardizing processes. Use software tools that provide real-time updates on inventory levels, track supplier performance, and automatically generate alerts for potential delays. Automated communication tools can streamline the process of informing customers about backorders, providing consistent and accurate information without the need for manual intervention. Establish key performance indicators (KPIs) that track important metrics such as backorder duration, parts fill rate, customer satisfaction scores, and service WIP levels to ensure your backorder management processes are effective. Regularly review these KPIs to identify areas for improvement and adjust your strategies accordingly. Creating stability for your customers Backorder management is about more than just keeping parts flowing; it’s about creating a sense of reliability and stability for your customers. When customers trust that you manage unforeseen delays professionally and transparently, they are more likely to remain loyal, even when challenges arise. Focus on building a reputation for dependability. By implementing effective backorder strategies, developing adaptable team members, and standardizing processes, you create an environment where backorders become less of a disruption and more of an opportunity to demonstrate your commitment to customer satisfaction. Remember, backorders are inevitable, but with the right strategies and processes in place, you can ensure they are just a temporary bump in the road, not a detour. About the Author: Chris Aiello is the Business Development Manager at TVH Parts Co. He has been in the equipment business for 17-plus years as a service manager, quality assurance manager, and business development manager. Chris now manages a national outside sales team that sells replacement parts and accessories in various equipment markets, such as material handling, equipment
The secret formula for personal achievement is YOURS
“Going for the gold” is wrong. Being the best you can be in order to earn the gold, or get the gold is a surer path to success. What path are you on? Are you the best at what you do? Everyone wants success, but very few achieve the success they dream about. I’m on my journey just like you. While studying, I realized the importance of personal achievement. Last week and this, I’m sharing a personal achievement (secret) formula I accidentally uncovered. Discovering the formula was an accident, but very few people are accidentally fulfilled. Success, achievement, and fulfillment are on purpose. The principles successful people execute and live by are the basis (foundation) for their success. I’m presenting the elements I discovered so that you may compare them to the ones you execute on your own journey. It’s most interesting to me that people who have “big money” as their ultimate goal rarely attain it. Those who have “being the best at what they do” or “love what they do” almost always attain financial security. Why? They execute the elements of personal achievement. The six elements are: Vision Love Best Attitude Personal Student Last week, I discussed having a personal vision, loving what you do, and striving to be your best, but then I ran out of room. Striving to be the best was revealed as the most powerful element, but unless you couple it with a personal vision to see the big picture and a love of what you do, you will never achieve your best. The rest of the elements are: Many people cheat themselves out of achievement and success by having the wrong attitude (element four). Have you ever heard anyone say, “They don’t pay me enough to…” Have you ever thought about it or said it yourself? Those are six words that will keep you mediocre. Don’t make the mistake of failing to be your best or do your best because someone isn’t paying you. Who are you cheating? Achievement is not about money; achievement is about the best. Ask yourself what you’re worth if you don’t think they pay you enough. Having the right attitude about money will make it happen faster than wanting lots of it. So much has been written about goals that it has caused those dedicated to personal achievement to moan at the thought of another seminar on “Goal Setting and Achievement.” It’s not a matter of goals or no goals. Goals are a prerequisite for success. The question is, what kind of goals? The secret of goals is to make them personal (element five), not material. Make goals about you, not about it. Which is a more powerful driving force to make your monthly quota or be the best at sales? The quota will automatically be achieved if you aim to be the best. The other aspect of personal is athletic based. Athletes are always striving to achieve their personal best. Not to beat everyone else (although that’s a great accomplishment), just to beat their previous personal best. That keeps them going. It can keep you going, too. I got a clear vision from a Jim Rohn seminar. He said, “Whatever you want, study it first. If you want to be a doctor, study medicine, if you want to be a success, hang around successful people and study success.” Rohn says, “Be a student (element six) first. And always be a student. Not just a father but a student father. Not a teacher, a student teacher.” Wow, what a powerful piece of advice. From the day I learned my first sales technique (January 1972), I wanted to be the best at sales. I’ve been studying sales for 25 years. That’s why it’s working for me. I’m not saying that’s how it works. I am saying that’s how it works for me. Follow the advice of Jim Rohn to be a student first. With all my heart, that’s how I believe it will work for you. In my seminars, the best audience comment I get is, “Jeffrey loves what he does, and it shows.” If you love what you do, people will say it’s in your blood. And that blood of toil begins to manifest itself in your bank account. Last week, I watched the musician Kenny G. being interviewed on CNN. They asked him what drove him to his phenomenal success. He said, “I never wished for fame and fortune. When I found out I liked to play the saxophone, I just wanted to be the best. The rest just showed up.” Cool. And the real cool part is, if you think that being your best and doing your best is just a bunch of baloney, don’t worry. This information doesn’t apply to you. It only applies to those who will pass you. About the Author: Jeffrey Gitomer is the author of twelve best-selling books, including The Sales Bible, The Little Red Book of Selling, and The Little Gold Book of Yes! Attitude. His real-world ideas and content are also available as online courses at www.GitomerLearningAcademy.com. For information about training and seminars, visit www.Gitomer.com , email Jeffrey at salesman@gitomer.com, or call him at 704 333-1112.
U.S. Rail Traffic Report for the week ending October 12, 2024
The Association of American Railroads (AAR) has reported U.S. rail traffic for the week ending October 12, 2024. For this week, total U.S. weekly rail traffic was 505,033 carloads and intermodal units, up 2.6 percent compared with the same week last year. Total carloads for the week ending October 12 were 222,003 carloads, down 1.3 percent compared with the same week in 2023, while U.S. weekly intermodal volume was 283,030 containers and trailers, up 5.9 percent compared to 2023. Seven of the 10 carload commodity groups posted an increase compared with the same week in 2023. They included grain, up 1,346 carloads, to 23,523; metallic ores and metals, up 1,164 carloads, to 19,277; and farm products excl. grain, and food, up 891 carloads, to 17,894. Commodity groups that posted decreases compared with the same week in 2023 were coal, down 3,412 carloads, to 58,233; nonmetallic minerals, down 2,473 carloads, to 30,465; and motor vehicles and parts, down 1,301 carloads, to 14,412. For the first 41 weeks of 2024, U.S. railroads reported a cumulative volume of 8,919,323 carloads, down 3.2 percent from the same point last year; and 10,755,542 intermodal units, up 9.1 percent from last year. Total combined U.S. traffic for the first 41 weeks of 2024 was 19,674,865 carloads and intermodal units, an increase of 3.1 percent compared to last year. North American rail volume for the week ending October 12, 2024, on 9 reporting U.S., Canadian and Mexican railroads totaled 332,200 carloads, down 1.2 percent compared with the same week last year, and 364,671 intermodal units, up 4.5 percent compared with last year. Total combined weekly rail traffic in North America was 696,871 carloads and intermodal units, up 1.7 percent. North American rail volume for the first 41 weeks of 2024 was 27,375,648 carloads and intermodal units, up 2.4 percent compared with 2023. Canadian railroads reported 98,096 carloads for the week, up 3.5 percent, and 70,155 intermodal units, up 1.6 percent compared with the same week in 2023. For the first 41 weeks of 2024, Canadian railroads reported cumulative rail traffic volume of 6,514,669 carloads, containers and trailers, up 0.1 percent. Mexican railroads reported 12,101 carloads for the week, down 27.2 percent compared with the same week last year, and 11,486 intermodal units, down 9.2 percent. Cumulative volume on Mexican railroads for the first 41 weeks of 2024 was 1,186,114 carloads and intermodal containers and trailers, up 3.0 percent from the same point last year.
Women In Trucking Association announces finalists for 2024 Influential Woman in Trucking Award
Today, the Women In Trucking Association (WIT) announced three finalists for the 2024 Influential Woman in Trucking award, sponsored by Daimler Truck North America (DTNA), a manufacturer of Class 6-8 commercial vehicles in North America. This award was developed in 2010 to recognize female leaders and to attract and advance women in the trucking industry. The award highlights the achievements of female role models and trailblazers in the trucking industry. The 2024 Influential Woman in Trucking Award finalists are: Lisa Gonnerman, Vice President of Enterprise Services, TA Dedicated Sheri Aaberg, Chief Operating Officer, Transport Enterprise Leasing Tracy Rushing, Executive Director of Safety, RE Garrison Trucking, Inc. Lisa Gonnerman is a seasoned professional with over 32 years of experience in trucking, leading safety and operations and playing an instrumental role in shaping safety practices and policies nationwide. Currently serving as Vice President of Enterprise Services with TA Dedicated, Gonnerman excels in safety leadership and mentorship. She has held influential positions throughout her career, including serving as the National Chair of the American Trucking Association (ATA) Safety Management Council from 2019 to 2021 and being named ATA National Safety Director of the Year in 2016. Beyond ATA, Gonnerman is the current chair of the Minnesota Safety Council leadership team and past safety conference chair. Her participation in key industry bodies, like the Commercial Vehicle Safety Alliance (CVSA) and the FMCSA’s CSA subcommittee, further emphasizes her leadership. Gonnerman advocates for a culture of safety and is passionate about mentoring future leaders, especially women in trucking. An active member of Women in Trucking, she continues to inspire others while positively impacting her community through her involvement with organizations like Make-A-Wish. Sheri Aaberg excels at creating organizations where people matter, where they are challenged, and where they have the opportunity to grow. The culture Aaberg has created while leading companies in the trucking industry for the past 24 years is one of excellence in performance, customer service, and team development. As the Chief Operating Officer of Transport Enterprise Leasing, LLC (“TEL”), Aaberg and her vision have been instrumental in the company’s growth and operating excellence since she joined TEL in 2014. She has overseen the development of processes and organizational structures that have been key to the firm’s success. Under her guidance, TEL’s lease portfolio has grown from 1,200 truck and trailer assets on lease to more than 9,300 vehicles. Employee headcount has grown exponentially, and TEL has expanded from its Chattanooga headquarters to a second location, an equipment reconditioning and remarketing facility in Indianapolis, Indiana. Aaberg has served on the board of the Used Truck Association and is a Heavy Truck Blue Book Advisory Committee member. Her speaking presentations have included engagements with the Truckload Carriers Association, Used Truck Association Conventions, TruckPaper forums, and Blue Book seminars. Through her leadership and executive sponsorship, Transport Enterprise Leasing has joined and become active in national and state-level trucking associations. Tracy Rushing began her career nearly 30 years ago in Forest, Mississippi, weighing trucks and calculating driver timesheets. Since then, she has advanced through various roles in the transportation industry, learning safety management, FMCSA Regulations, and driver relations. In 2022, she joined RE Garrison Trucking as the Executive Director of Safety, overseeing the safety, recruiting, and orientation teams. Rushing is an active member of the Society of Human Resources Management (SHRM), Truckload Carriers Associations (TCA) and the Safety & Maintenance Management Council of the Alabama Trucking Association (SMMC). She serves on the Risk Management Advisory Committee of the ATA Comp Fund (RMAC), the Women in Trucking Membership Committee (WIT) and as the chair of the Truckload Carriers Association’s (TCA) Safety, Recruiting and Retention Committee. Rushing has earned certifications from the North American Transportation Management Institute (NATMI) as a Certified Director of Safety (CDS) and as a NATMI Instructor. In 2023, she was honored as the Alabama Safety Director of the Year Runner-Up. Faith and family have been her strength and motivation throughout her career. She is enthusiastic about mentoring and supporting women in trucking, believing strongly in their contributions to this vital industry. The award finalists will participate in a panel discussion at the WIT Accelerate! Conference & Expo held in Dallas, Texas, November 10 – 13, 2024. The winner will give a HERstory speech following the panel discussion.
August Manufacturing Technology Orders fall short of 2023; Outlook optimistic for remainder of 2024
Orders of manufacturing technology, measured by the U.S. Manufacturing Technology Orders (USMTO) report published by AMT – The Association For Manufacturing Technology, totaled $360.8 million in August 2024. These orders for metalworking machinery increased 22.7% from July 2024 but fell 12% short of August 2023 orders. Year-to-date orders reached $2.81 billion, a decline of 11.5% compared to the first eight months of 2023. While orders continue to lag behind those placed in 2023, the level of order activity remains above historical levels. August 2024 orders are 3.8% above those placed in a typical August. This trend indicates the industry is still undergoing a period of normalization following the COVID disruptions rather than an actual decline. Historically elevated capacity utilization rates across durable goods manufacturers indicate a genuine need for additional investment in manufacturing technology. Contract machine shops, the largest manufacturing technology customers, increased the number of units ordered and the value of their orders for the first time since March 2024. This growth in a key customer segment is a welcome sign after a sluggish July, which saw the lowest value of orders since May 2020 and the fewest units ordered since July 2010. Since job shops typically absorb elevated capacity needs from OEMs, this buying trend indicates that production could continue to grow. Manufacturers in the aerospace sector increased the value of their orders by 13% from July to August 2024, but the number of units increased by nearly 27% at that same time. This indicates their purchases are for additional capacity, which is confirmed by the sector’s persistently rising capacity utilization rates. While machinery orders from aerospace parts manufacturers have been strong in the past few months, the ongoing strike of Boeing machinists has the potential to dampen this demand. It would be tempting to compare this to the 2023 United Autoworkers strike, which almost had no impact on manufacturing technology orders from the automotive sector. However, the automotive industry had already been pulling back orders at that time after a historically elevated buying cycle over the summer of 2023. Additionally, capacity utilization rates were falling, and inventories were growing leading into the strike. The aerospace sector is in a decidedly different position, with increased orders, a buying cycle on an upswing, and capacity utilization rising for the past three years. Only time will tell how the Boeing strike could impact machinery orders. Although August 2024 orders fell short of those placed in 2023, the outlook for the remainder of the year remains optimistic. The electric atmosphere at September’s IMTS, the largest manufacturing technology trade show in the Western Hemisphere, was a welcome sign that manufacturers need additional capacity as well as solutions to improve quality and efficiency. With the upcoming U.S. presidential election and the Federal Reserve beginning to reduce interest rates and signaling additional reductions, two of the major issues giving pause to further capital investment will be alleviated by year’s end. Given these factors and the coming expiration of bonus depreciation of capital equipment, the momentum of order activity in the last four months of 2024 will likely accelerate. It could carry over into 2025, as forecast by experts at AMT’s annual MTForecast conference. # # # The United States Manufacturing Technology Orders (USMTO) Report is based on the totals of actual data reported by companies participating in the USMTO program. This report, compiled by AMT – The Association For Manufacturing Technology, provides regional and national U.S. orders data of domestic and imported machine tools and related equipment. Analysis of manufacturing technology orders provides a reliable leading economic indicator as manufacturing industries invest in capital metalworking equipment to increase capacity and improve productivity. USMTO.com.
IRS provides Hurricane Milton relief; May 1 deadline now applies to individuals and businesses in all of Florida; many businesses qualify for deposit penalty relief
The Internal Revenue Service today announced relief for individuals and businesses in 51 counties in Florida due to Hurricane Milton. Individuals and businesses in six counties that previously did not qualify for relief under either Hurricane Debby or Hurricane Helene will receive disaster tax relief beginning Oct. 5, 2024, and concluding on May 1, 2025. They are Broward, Indian River, Martin, Miami-Dade, Palm Beach, and St. Lucie. In addition, individuals and businesses in 20 counties previously receiving relief under Debby but not Helene will receive disaster tax relief under Hurricane Milton from Aug. 1, 2024, through May 1, 2025. They are Baker, Brevard, Clay, DeSoto, Duval, Flagler, Glades, Hardee, Hendry, Highlands, Lake, Nassau, Okeechobee, Orange, Osceola, Polk, Putnam, Seminole, St. Johns, and Volusia counties. As a result, affected taxpayers in all of Florida now have until May 1, 2025, to file various federal individual and business tax returns and make tax payments, including 2024 individual and business returns normally due during March and April 2025 and 2023 individual and corporate returns with valid extensions and quarterly estimated tax payments. The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA). Individuals and households that reside or have a business in any one of the localities listed above qualify for tax relief. The current list of eligible localities is always available on IRS.gov’s Tax Relief in Disaster Situations page on IRS.gov. Filing and payment relief Hurricane Milton-related tax relief postpones various tax filing and payment deadlines that occurred beginning on Oct. 5, 2024, and ending on May 1, 2025 (postponement period). As a result, affected individuals and businesses will have until May 1, 2025, to file returns and pay any taxes that were originally due during this period. This means, for example, that the May 1, 2025, deadline now applies to: Any individual or business with a 2024 return is normally due in March or April 2025. Any individual, C corporation, or tax-exempt organization with a valid extension can file their calendar year 2023 federal return. The IRS noted, however, that payments on these returns are not eligible for the extra time because they were due last spring before the hurricane occurred. 2024 quarterly estimated tax payments are normally due on Jan. 15, 2025, and 2025 estimated tax payments are normally due on April 15, 2025. Quarterly payroll and excise tax returns are normally due on Oct. 31, 2024, Jan. 31, 2025, and April 30, 2025. In addition, for localities affected by Hurricane Milton, penalties for failing to make payroll and excise tax deposits due on or after Oct. 5, 2024, and before Oct. 21, 2024, will be abated as long as the deposits are made by Oct. 21, 2024. Localities eligible for this relief are Alachua, Baker, Bradford, Brevard, Broward, Charlotte, Citrus, Clay, Collier, Columbia, DeSoto, Dixie, Duval, Flagler, Gilchrist, Glades, Hamilton, Hardee, Hendry, Hernando, Highlands, Hillsborough, Indian River, Lafayette, Lake, Lee, Levy, Madison, Manatee, Marion, Martin, Miami-Dade, Monroe, Nassau, Okeechobee, Orange, Osceola, Palm Beach, Pasco, Pinellas, Polk, Putman, Sarasota, Seminole, St. Johns, St. Lucie, Sumter, Suwannee, Taylor, Union and Volusia counties. Deposit penalty relief and other relief were previously provided to taxpayers affected by Debby and Helene. For details, see the Florida page on IRS.gov. The Disaster Assistance and Emergency Relief for Individuals and Businesses page also has details and information on other returns, payments, and tax-related actions qualifying for relief during the postponement period. The IRS automatically provides filing and penalty relief to taxpayers with an IRS address of record in the disaster area. These taxpayers do not need to contact the agency to get this relief. It is possible that an affected taxpayer may not have an IRS address of record located in the disaster area because they moved to the disaster area after filing their return. In these unique circumstances, the affected taxpayer could receive a late filing or late payment penalty notice from the IRS for the postponement period. The taxpayer should call the number on the notice to have the penalty abated. In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records are necessary to meet a deadline occurring during the postponement period and are located in the affected area. Taxpayers qualifying for relief living outside the disaster area must contact the IRS at 866-562-5227. This also includes workers affiliated with a recognized government or philanthropic organization who assist in relief efforts. Disaster area tax preparers with clients outside the disaster area can choose to use the Bulk Requests from Practitioners for Disaster Relief option, described on IRS.gov. Additional tax relief Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2024 return normally filed next year) or the return for the prior year (the 2023 return filed this year). Taxpayers have extra time – up to six months after the due date of the taxpayer’s federal income tax return for the disaster year (without regard to any extension of time to file) – to make the election. For individual taxpayers, this means Oct. 15, 2025. Be sure to write the FEMA declaration number – 3622-EM – on any return claiming a loss. See Publication 547, Casualties, Disasters, and Thefts, for details. Qualified disaster relief payments are generally excluded from gross income. In general, this means that affected taxpayers can exclude from their gross income amounts received from a government agency for reasonable and necessary personal, family, living, or funeral expenses, as well as for the repair or rehabilitation of their home or for the repair or replacement of its contents. See Publication 525, Taxable and Nontaxable Income, for details. Additional relief may be available to affected taxpayers participating in a retirement plan or individual retirement arrangement (IRA). For example, a taxpayer may be eligible to take a special disaster distribution that would not be subject to the additional 10% early distribution tax, allowing the taxpayer to spread the income over three
ALAN HURRICANE MILTON SITUATIONAL REPORT: Thursday, October 10, 2024
American Logistics Aid Network is mobilized for Hurricane Milton. As part of our response efforts, we are committed to providing you with the latest information and updates on supply chain impacts via our periodic Situation Reports, which can be found below in this email and on our website. ALAN has been improving logistics response to disasters for 19 years, and the need is greater now than ever. Please donate today to help us continue our work for many more years to come. ACTIVATION UPDATE As Floridians struggle with the aftermath of Hurricane Milton, the American Logistics Aid Network (ALAN) has begun supporting relief efforts and reminding members of the supply chain community that sharing their logistics know-how, space, equipment, and services is one of the most vital ways they can help. “The devastation Hurricane Milton and its many tornadoes have caused is heartbreaking. We mourn for those who have lost family members, pets, and homes, and we are already working hand-in-hand with various non-profit partners to deliver help,” said Kathy Fulton, ALAN’s Executive Director. ALAN received its first request for Hurricane Milton-related logistics assistance earlier this week. In the coming weeks, Fulton anticipates it could receive dozens more, just as it has since Hurricane Helene struck various parts of the Southeast two weeks ago. “During the first 48 to 72 hours after a hurricane, most of the work on the ground is focused on search and rescue efforts,” Fulton said. “Because of this, ALAN usually doesn’t receive the first substantial wave of donated logistics requests until after that, when humanitarian organizations can get in, conduct their initial assessments, and determine what’s most needed.” “We know that can be frustrating for organizations that want to do something tangible as soon as possible. But we hope they will still be willing to provide their logistics help when the need arises, whether it’s in a few days, a few months – or even beyond that,” Fulton added. ALAN encourages organizations interested in joining its Hurricane Milton relief efforts to visit its Disaster Micro-Site at https://www.alanaid.org/operations/ frequently in the weeks and months ahead. That’s where ALAN will post any unfilled requests and currently features several open needs for Hurricane Helene and other ongoing disaster relief efforts. Those who wish to help ALAN by making a financial contribution instead can do so by going to https://www.alanaid.org/donate/. “Logistics professionals may not be first responders, but ensuring that relief supplies reach those in need is indeed a life-saving activity,” Fulton said. “We’re thankful to be part of a community that can play such a meaningful role under the most challenging of circumstances.” Please read the full news release, along with ALAN’s Ten Post-Hurricane Relief Takeaways, on the Breaking News section of our website. ITEMS OF INTEREST PSEMA Hurricane Milton Coordination Call via Zoom daily at 4 pm EDT Join Zoom Meeting https://us02web.zoom.us/j/86737741797?pwd=hAg1zTWdsbHKYRvnWIbbMAyKuJNWyZ.1 Meeting ID: 867 3774 1797 Passcode: 106474 FEDERAL EMERGENCY DECLARATIONS President Biden approved an Emergency Declaration for the Seminole Tribe of Florida on October 8, 2024, in preparation for Hurricane Milton’s impacts. President Biden approved an Emergency Declaration for Florida on October 7, 2024, in preparation for Hurricane Milton’s impacts. STATE EMERGENCY DECLARATIONS Florida Department of Health Surgeon General issued Emergency Order No. 24-003 on October 8, 2024, suspending statutes, rules, and orders pursuant to Executive Order 24-214 made necessary by Hurricane Milton. Waivers related to procurement, emergency medical licensure requirements, practitioner licensure requirements, prescription drug monitoring reporting, and mobile pharmacies. Florida Governor DeSantis issued Executive Order 24-215 on October 6, 2024, amending Executive Order 24-214. Florida Governor DeSantis issued Executive Order 24-214 on October 5, 2024, in preparation for Tropical Storm Milton’s impact on Florida. ACTIVE TRANSPORTATION WAIVERS Title: Florida Commissioner of Agriculture Simpson issued Executive Order 2024-016, suspending Florida Statutes relating to liquid fuel Effective: 10/08/24 | Expires on: 12/08/24 Description: Pursuant to Executive Order 2024-015, suspension of sections of Florida Statutes 527.0201, 527.021, 527.04, and 527.11, only for persons performing work of Category I Liquified Petroleum Gas Dealers in furtherance of emergency recovery efforts directly related to Hurricane Milton. Title: Florida Commissioner of Agriculture Simpson issued Executive Order 2024-015, suspending Florida Statutes relating to liquid fuel Effective: 10/07/24 | Expires on: 12/07/24 Description: Pursuant to Executive Order 2024-015, suspension of sections of Florida Statutes 526.02, 526.04, 526.05, and 526.07, relating to the sale, offer for sale, delivery, distribution, or storage of liquid fuels; all other provisions of chapter 526, Florida Statutes, shall remain in effect. Title: FMCSA Regional Emergency Declaration No. 2024-008 and Extension of Emergency Declarations Pursuant to 49 CFR 390.23 and 390.24 Effective: 10/04/24 | Expires on: 10/27/24 Description: The United States Department of Transportation (USDOT), Federal Motor Carrier Safety Administration (FMCSA) declares that an emergency exists that warrants the issuance of a Regional Emergency Declaration and extension of emergency declarations issued by State Governors to continue emergency relief granted from certain regulatory requirements in Parts 390-399 of the Federal Motor Carrier Safety Regulations (FMCSRs). This Declaration is in response to Hurricane Helene and its effects on people and property, including immediate threats to human life, public safety, and public welfare from heavy rains, strong winds, storm surge, high surf, and flooding. This declaration addresses the emergency conditions that create a need for immediate transportation relating to the restoration of essential supplies and services and provides necessary relief. Affected States included in this Declaration are Alabama, Florida, Georgia, North Carolina, South Carolina, Tennessee, Virginia, and West Virginia. The Presidential Declarations issued provide regulatory relief for up to 30 days of emergency relief from Federal regulations in 49 CFR 390 through 399. FMCSA issuing this Declaration and granting regulatory relief in accordance with 49 CFR 390.23 and 390.25, as set forth herein. Title: Florida Department of Transportation Secretary Perdue issued Emergency Order 24-12 Effective: 10/06/24 | Expires on: 10/21/24 Description: Pursuant to Executive Order No. 24-213, Secretary Perdue waives and suspends Florida Statutes 316.515(1-3), 316.535(1 and 3), 316.545(2 and 4), and 337.401(1)(a); and Rules 14-28.002(4 and 5), and 14-46.001(2) to allow for alternate size and weight restrictions on any vehicles transporting emergency equipment, services, supplies, or personnel, and agricultural commodities and citrus as recommended by Commissioner of Agriculture. Title: Florida Highway Safety and Motor Vehicle Executive Director issued Emergency Order
American Logistics Aid Network (ALAN) begins Post-Hurricane Milton response
“Right now, The ability for Logistics Professionals to get relief items stored, transported, organized, and delivered to disaster sites can be a game-changer.” As Floridians struggle with the aftermath of Hurricane Milton, the American Logistics Aid Network (ALAN) has begun supporting relief efforts and reminding members of the supply chain community that sharing their logistics know-how, space, equipment, and services is one of the most vital ways they can help. “The devastation Hurricane Milton and its many tornadoes have caused is heartbreaking. We mourn for those who have lost family members, pets, and homes, and we are already working hand-in-hand with various non-profit partners to deliver help,” said Kathy Fulton, ALAN’s Executive Director. ALAN received its first request for Hurricane Milton-related logistics assistance earlier this week. In the coming weeks, Fulton anticipates it could receive dozens more, just as it has since Hurricane Helene struck various parts of the Southeast two weeks ago. “During the first 48 to 72 hours after a hurricane, most of the work on the ground is focused on search and rescue efforts,” Fulton said. “Because of this, ALAN usually doesn’t receive the first substantial wave of donated logistics requests until after that, when humanitarian organizations can get in, conduct their initial assessments, and determine what’s most needed.” “We know that can be frustrating for organizations that want to do something tangible as soon as possible. But we hope they will still be willing to provide their logistics help when the need arises, whether it’s in a few days, a few months – or even beyond that.” ALAN encourages organizations that are interested in joining its Hurricane Milton relief efforts to visit its Disaster Micro-Site at https://www.alanaid.org/operations/ frequently in the weeks and months ahead. That’s where ALAN will post any unfilled requests it has – and where it currently features several open needs for Hurricane Helene and other ongoing disaster relief efforts. Those who wish to help ALAN by making a financial contribution instead can do so by going to https://www.alanaid.org/donate/ “Logistics professionals may not be first responders, but ensuring that relief supplies reach those in need is indeed a life-saving activity,” Fulton said. “We’re thankful to be part of a community that can play such a meaningful role under the most challenging of circumstances.”
Container market on the edge: Election uncertainty and global volatility to persist well into 2025
As we enter October 2024, the U.S. container trading market is experiencing heightened volatility due to several influencing factors. The recent strikes at East Coast ports, which began on October 1 and have since concluded, have left a lasting impact on supply chains while the focus shifts to the U.S. elections scheduled for November 5. ” The recent strikes may have ended, but the storm is far from over. With unresolved issues surrounding automation, we are on the brink of another disruption come January 2025.,” shared Christian Roeloffs, cofounder and CEO of Container xChange. Looking ahead, Roeloffs highlighted potential future challenges: “Given the unresolved issues around automation, I believe there are strong chances of another disruption in January. The unions strongly oppose any form of automation, and this unresolved matter raises the likelihood of another strike in January.” Roeloffs urged U.S. container traders to prepare: “As we approach the peak season and the Chinese New Year, expect another wave of frontloading as importers seek to secure cargo ahead of potential disruptions. Container traders should begin contingency planning now- —this includes securing inventory, diversifying supplier networks, and considering alternative shipping routes to mitigate delays. Proactive steps like these will be crucial for navigating the challenges anticipated in January.” Conversely, China is facing significant domestic challenges, with weak consumer spending and slowing income growth. While exports have shown resilience, broader economic concerns could impact supply chains, including a slowdown in domestic consumption and property investment. Reduced demand for goods within China, coupled with U.S. retailers and wholesalers holding considerable inventory, is creating a more challenging environment for container trading and leasing companies, as lower shipping volumes and excess container capacity put pressure on both demand and leasing rates. The Middle East is contributing to increased volatility in global container shipping, particularly in October 2024. Tensions have escalated between Israel and Iran, with Iran launching missiles at Israel and Hezbollah carrying out rocket attacks from Lebanon. These developments continue to disrupt operations in the Red Sea, where Houthi rebels are actively targeting vessels, intensifying shipping capacity strains with no immediate resolution in view. xCPSI Rises: Increased Expectations for Container Price hikes The Container Price Sentiment Index (xCPSI) for September and October indicates a notable rise in the number of supply chain professionals globally anticipating an increase in container prices. This expectation is driven by limited supply and steady demand. Country-level findings No impact of U.S. East Coast strikes on average container prices In September, average container prices in the U.S. remained relatively stable. However, on a global scale, Asia and Europe experienced the most significant price hikes, while the Middle East and the Indian Subcontinent (ISC) saw a 6% decline. An interesting development is that the Middle East experienced a 7% price surge in early October, indicating market volatility in that region. In China, average prices have consistently decreased, reflecting diminished factory output and reduced U.S. and European exports. Additionally, supply is still coming offline from container factories, contributing to the overall price decline. Region-wise average price development in September 2024 Currently, average container prices are highest in China, followed by the U.S. and then Europe. Prices have consistently fallen in both China and the U.S. while remaining relatively stable in Europe at a considerably lower level. What lies ahead for container traders in the U.S.? Key Factors influencing Q4 (Oct-Dec) 2024 container prices Impact of strikes and elections in November: Although the strikes have concluded, the possibility of renewed labor disputes in January 2025 is a concern. Additionally, the upcoming U.S. elections introduce uncertainty, as trade policies could shift significantly depending on the outcome. Demand-Supply Dynamics: In the short term, demand for U.S. containers appears stable. However, in the mid-to-long term, retailers and wholesalers are managing considerable inventory levels, which diminishes the need for significant imports unless demand significantly bounces. The extent of inventory refilling required for the next cycle—aligned with the Chinese New Year—will primarily depend on the performance of peak season demand in the U.S. Cyclic Nature of Demand in Q4: Traditionally, Q4 sees increased container demand due to the holiday season. While some stabilization in demand is anticipated as retailers work through their inventories, the full effects of peak season demand will likely become evident only in early 2025. Much will depend on how ongoing inventory adjustments unfold. Roeloffs stated, “U.S. retailers are managing significant inventory levels, but the real challenge lies ahead. As we enter the holiday season, the dynamics between demand and supply will shift dramatically, revealing whether these inventories can maintain a healthy market or indicate deeper issues.” Customer Insights Conversations with U.S. container traders reveal cautious optimism regarding improving market conditions should Trump win the elections, potentially leading to policy changes that favor trade growth. Conversely, many container traders express concerns about ongoing global trade uncertainties and the residual effects of labor disputes, particularly as negotiations with the International Longshoremen’s Association (ILA) may resume in January 2025. Will Frontloading Persist into Q4’24? As we near the end of 2024, the U.S. container trading market is characterized by a blend of uncertainties, from post-labor strike adjustments to peak season, hurricane threats, and upcoming elections. While supply remains tight, demand may experience significant fluctuations based on inventory levels, trade policies, and broader economic indicators. Traders and industry stakeholders should remain alert, especially with January 2025 negotiations on the horizon, reintroducing discussions about automation and future labor relations. “With the Chinese New Year as the next key shipping season and fears of another strike looming, we’re entering a critical phase for importers. The rush to secure cargo now could shape the market well into 2025. How we navigate this will define our resilience as an industry.” Concluded Roeloffs. 2025 Outlook Looking ahead to 2025, the U.S. container market will likely be shaped by the resolution of labor disputes and the broader geopolitical landscape. The outcome of the U.S. election will significantly influence trade and domestic fiscal policy, subsequently affecting container prices. The topic of automation will remain prominent,
AAR reports Rail Traffic for the week ending October 05, 2024
Today, the Association of American Railroads (AAR) reported U.S. rail traffic for the week ending October 5, 2024. This week’s total U.S. weekly rail traffic was 486,187 carloads and intermodal units, down 2.5 percent compared with the same week last year. Total carloads for the week ending October 5 were 225,280, down 3.5 percent from the same week in 2023, while the U.S. weekly intermodal volume was 260,907 containers and trailers, down 1.7 percent from 2023. Four of the ten carload commodity groups posted an increase compared with the same week in 2023. They included farm products excl. grain, and food, up 1,553 carloads, to 18,019; chemicals, up 1,140 carloads, to 31,059; and metallic ores and metals, up 828 carloads, to 20,908. Commodity groups that posted decreases compared with the same week in 2023 included coal, down 5,458 carloads, to 61,304; nonmetallic minerals, down 3,937 carloads, to 29,645; and grain, down 1,300 carloads, to 21,933. For the first 40 weeks of 2024, U.S. railroads reported a cumulative volume of 8,697,320 carloads, down 3.3 percent from the same point last year, and 10,472,512 intermodal units, up 9.1 percent from last year. Total combined U.S. traffic for the first 40 weeks of 2024 was 19,169,832 carloads and intermodal units, an increase of 3.1 percent compared to last year. North American rail volume for the week ending October 5, 2024, on nine reporting U.S., Canadian, and Mexican railroads totaled 331,587 carloads, down 4.5 percent compared with the same week last year, and 341,107 intermodal units, down 3.0 percent compared with the previous year. Total weekly rail traffic in North America was 672,694 carloads and intermodal units, down 3.7 percent. North American rail volume for the first 40 weeks of 2024 was 26,678,777 carloads and intermodal units, up 2.4 percent compared with 2023. Canadian railroads reported 94,571 carloads for the week, down 2.0 percent, and 68,805 intermodal units, down 4.7 percent compared with the same week in 2023. For the first 40 weeks of 2024, Canadian railroads reported a cumulative rail traffic volume of 6,346,418 carloads, containers, and trailers, down 0.0 percent. Mexican railroads reported 11,736 carloads for the week, down 31.7 percent compared to last year, and 11,395 intermodal units, down 19.3 percent. Cumulative volume on Mexican railroads for the first 40 weeks of 2024 was 1,162,527 carloads and intermodal containers and trailers, up 3.6 percent from last year. To view the weekly rail charts, click here.
ASSP revises key standard to elevate motor vehicle safety
The American Society of Safety Professionals (ASSP) has revised a national voluntary consensus standard that defines core elements of a fleet safety program to help organizations protect workers on the road. There are 3.5 million fleets in North America, and 32 million commercial vehicles are used. ANSI/ASSP Z15.1-2024 Safe Practices for Motor Vehicle Operations outlines industry best practices for the safe management and use of motor vehicles owned or operated by an organization. The standard provides guidance to fleet managers and safety professionals on creating written programs and policies, enhancing safety through speed management and driver training, addressing impaired and distracted driving, implementing routine vehicle inspections and maintenance, and conducting proper incident reporting. “This safety standard is significant because motor vehicle crashes are the leading cause of work-related fatalities,” said ASSP President Pam Walaski, CSP, FASSP. “These tragic incidents are avoidable. Employers need expert guidance on identifying and managing risks their workers face on the road.” The revised standard strengthens incident reporting and analysis requirements and includes modifications that address today’s vehicles, technologies, and operating environments. “The best way to manage workplace hazards and keep workers safe is to incorporate a structured, proactive approach that assesses risks, identifies system gaps, and implements best practices,” Walaski said. Organizations that make fleet safety a core value also help reduce the economic and reputational costs of crashes involving their workers. That may include medical care, vehicle repair, liability, lost productivity, environmental impacts, and damage to the company’s reputation. The Z15.1 subcommittee that revised the standard comprised 11 safety and health experts from insurance, academia, government, and other fields. The inclusive process took 2½ years. Voluntary consensus standards provide the latest expert guidance and fill gaps where federal standards don’t exist. Companies rely on them to drive improvement, injury prevention, and sustainability. Government regulations are slow to change and often outdated, so federal compliance is insufficient to protect workers. ASSP leads the development of voluntary consensus standards for the workplace. In its last fiscal year, ASSP created, reaffirmed, or revised 15 standards, technical reports, and guidance documents, engaging 1,400 safety experts representing 500 organizations. The Society also distributed more than 14,000 copies of standards. To obtain Z15.1-2024 or other workplace safety standards, visit the online ASSP Store.
ProMat 2025 returns to Chicago March 17-20
When the premier manufacturing and supply chain trade event of 2025, ProMat, returns to Chicago on March 17, it will include over 1,100 exhibits from leading solution providers and a comprehensive Educational Conference of nearly 200 sessions focusing on best-in-class solutions for manufacturing and supply chain operations. ProMat exhibits will represent all material handling, logistics, and transportation segments, from traditional, manual equipment to automated systems and smart, connected supply chain technologies. “ProMat offers manufacturing and supply chain professionals the unique opportunity to witness in person, in action the vast array of technology and innovations impacting this industry,” says John Paxton, CEO of MHI. “We are thrilled to offer the supply chain community this chance to come together and experience all that ProMat has to offer.” “From hands-on demonstrations to unparalleled education experiences, attending ProMat is your best opportunity in 2025 to gain the tools you need to innovate your supply chain operations for the next level of success,” adds Daniel McKinnon, Chief Exhibitions Officer, MHI. “If it’s your job to innovate your manufacturing and supply chain operations, you can’t afford to miss ProMat.” ProMat 2025 Conference In addition to the exhibits, the ProMat Conference will include four keynotes and nearly 200 educational seminars covering leading trends, best practices, and state-of-the-art equipment and technology solutions that can make manufacturing and the entire supply chain work more resiliently, efficiently, and profitably. March 17 Keynote: The Data Effect: The Price of Not Knowing Paul Zikopoulos, VP of Technology Unit Skills & Enablement at IBM March 18 Keynote: The AI Opportunity for Supply Chains Azeem Azhar, host of Bloomberg’s “Exponentially” March 19 Keynote: From Prime Time to Coach Prime A Conversation with Dion Sanders March 19 Keynote Panel: Preview of MHI 2025 Annual Industry Report John Paxton, CEO, MHI, and Wanda Johnson, Deloitte Consulting LLP March 19: MHI Industry Night with Jay Pharoah ProMat will feature the announcement of the 2025 MHI Innovation Award winners during an evening of food, drinks, and entertainment from comedian Jay Pharoah on Wednesday, March 19. Tickets to this event are $50. This event’s door prize will be a lifetime vacation trip. Trip Value: $30,000. See official rules. Women in the Supply Chain Industry Forum on March 17 at ProMat MHI has partnered with the Material Handling Equipment Distributors Association (MHEDA) and the Warehousing, Education, and Research Council (WERC) to bring an afternoon of discussion, education, and networking for women in our industry. The event includes a keynote by Taylor Elyse Morrison. MHI Young Professionals Network Reception on March 17 at ProMat This event provides attendees to network and connect with young professionals in the handling and supply chain industry. ProMat Student Day on March 19 MHI, in partnership with WERC, MHEDA, the College Industry Council on Material Handling Education (CICMHE), and the Material Handling Education Foundation (MHEFI), presents Student Day at ProMat 2025. This event features guided show floor tours to attract future talent to our industry. ProMat is the largest manufacturing and supply chain expo in North and South America. It will be held March 17-20, 2025, at Chicago’s McCormick Place.
American Logistics Aid Network (ALAN) activates for major Hurricane Milton
Less than two weeks after Hurricane Helene made landfall, the American Logistics Aid Network (ALAN) is mobilizing for another major hurricane – reminding supply chain professionals to take the 13th named storm of the season as seriously as they took the first. “In an ideal world, we’d have plenty of time to focus all of our efforts on Hurricane Helene’s clean-up and recovery, especially because the needs are so extensive,” said Kathy Fulton, ALAN’s executive director. “But in the real world, hurricanes don’t always wait for their turn. As a result, we are officially activating for Hurricane Milton. “All signs point to Hurricane Milton being an extremely destructive and dangerous event for the west coast of Florida, including many parts that are still struggling with rescue and recovery efforts from Hurricanes Helene and Debby. As a result, ALAN is consolidating its resources for preparedness and response efforts – and calling upon its network to help.” Late yesterday, ALAN expanded its Disaster Micro-Site (www.alanaid.org/operations/) with a Situation Report that includes specifics about Milton’s projected path and impacts and links to transportation waivers and state business/industry resources. It will continue to provide these reports as circumstances change in the days ahead. “The bad news is, we’ve had to use this site several times already because there have been so many hurricanes this year,” said Fulton. “The good news is it’s allowed us to do a better job of providing the industry with critical hurricane-related information – and helped us connect humanitarian organizations with the logistics help they need more quickly.” ALAN encourages those who want to help with Hurricane Milton relief efforts to visit the “Active Logistics Needs” portion of its Disaster Micro-Site often in the weeks ahead – bearing in mind that the vast majority of its requests tend to arrive after a storm has made landfall and initial assessments have been made – or to consider fulfilling some of the many Hurricane Helene logistics needs that are already showcased there. Organizations that would prefer to support ALAN’s relief efforts by making a financial donation instead can do so by going to https://www.alanaid.org/hurricane-helene/. Meanwhile, ALAN urges businesses with operations in Hurricane Milton’s cone of concern to focus on keeping themselves and their employees safe. This includes allowing plenty of time for their area employees to make preparations and either evacuate or shelter in place. “We hope this will be the last time this year that we have to send out a hurricane APB like this because each one represents terrible circumstances that we wouldn’t wish on anyone,” said Fulton. “However, we’re thankful for the overwhelming response we’ve received from members of the logistics community throughout this hurricane season so far. It is allowing us to make a considerable difference for disaster survivors.”
ALAN HURRICANE MILTON SITUATIONAL REPORT: Sunday, October 6, 2024
American Logistics Aid Network is mobilized for Hurricane Milton. As part of our response efforts, we are committed to providing you with the latest information and updates on supply chain impacts via our periodic Situation Reports, which can be found below in this email and on our website. ALAN has been improving logistics response to disasters for 19 years, and the need is greater now than ever. Please donate today to help us continue our work for many more years to come. ACTIVATION UPDATE ALAN is monitoring the National Hurricane Center forecast for Hurricane Milton and stands ready to support our members and partners if needed. As of Sunday, October 6, at 5 pm EDT, Hurricane Milton is forecast to quickly intensify while moving eastward to northeastward across the Gulf of Mexico. It will be a major hurricane when it reaches the west coast of the Florida Peninsula mid-week. “In an ideal world, we’d have plenty of time to focus all of our efforts on Hurricane Helene clean-up and recovery,” said Kathy Fulton, ALAN’s Executive Director. “But in the real world, major hurricanes don’t always wait for their turn. As a result, we are officially activating for Hurricane Milton.” While it is too soon to specify the exact magnitude and location of the greatest impacts, portions of the west coast of the Florida Peninsula, beginning Tuesday night or early Wednesday, face an increasing risk of life-threatening storm surge and damaging winds. Areas of heavy rainfall will impact portions of Florida Sunday and Monday ahead of Milton, with heavy rainfall more directly related to the system expected later on Tuesday through Wednesday night. For more information on evacuation zones in Florida, go to Know Your Zone Map. No evacuations have been ordered as of Sunday, October 6, 2024. STATE EMERGENCY DECLARATIONS Florida Governor DeSantis issued Executive Order 24-215 on October 6, 2024, amending Executive Order 24-214. Florida Governor DeSantis issued Executive Order 24-214 on October 5, 2024, in preparation for Tropical Storm Milton’s impact on Florida. ACTIVE TRANSPORTATION WAIVERS Title: FMCSA Regional Emergency Declaration No. 2024-008 and Extension of Emergency Declarations Pursuant to 49 CFR 390.23 and 390.24 Effective: 10/04/24 | Expires on: 10/27/24 Description: The United States Department of Transportation (USDOT), Federal Motor Carrier Safety Administration (FMCSA) declares that an emergency exists that warrants the issuance of a Regional Emergency Declaration and extension of emergency declarations issued by State Governors to continue emergency relief granted from certain regulatory requirements in Parts 390-399 of the Federal Motor Carrier Safety Regulations (FMCSRs). This Declaration is in response to Hurricane Helene and its effects on people and property, including immediate threats to human life, public safety, and public welfare from heavy rains, strong winds, storm surge, high surf, and flooding. This Declaration addresses the emergency conditions creating a need for immediate transportation relating to restoring essential supplies and services and providing necessary relief. Affected States included in this Declaration are Alabama, Florida, Georgia, North Carolina, South Carolina, Tennessee, Virginia, and West Virginia. The Presidential Declarations issued provide regulatory relief for up to 30 days of emergency relief from Federal regulations in 49 CFR 390 through 399. FMCSA issuing this Declaration and granting regulatory relief in accordance with 49 CFR 390.23 and 390.25, as set forth herein. STATE BUSINESS AND INDUSTRY RESOURCES State of Florida Florida Division of Emergency Management Florida ESF 18 Office (Business and Industry) esf18@em.myflorida.com and Private Sector hotline (850) 815-4925 (Daily 7am-7pm EDT). Updates can be found at Florida Disaster Business Florida Public Radio Florida Storms Mobile App Florida 511 for real-time traffic conditions
PLASTICS recognizes Manufacturing Day
The Plastics Industry Association (PLASTICS) recognizes and celebrates Manufacturing Day, the largest annual event to promote manufacturing in the United States. Manufacturing Day works to show the reality of modern manufacturing careers by encouraging thousands of companies and educational institutions around the nation to open their doors to students, parents, teachers, and community leaders. The plastics industry is the eighth largest U.S. manufacturing industry, employs over one million workers and generates $519 billion. “Manufacturing Day is an excellent platform to highlight the exciting career opportunities and innovations throughout the plastics industry,” said PLASTICS’ President and CEO, Matt Seaholm. “Our manufacturing members are continually investing in new technologies and processes to make products more lightweight, durable, and sustainable, and those innovations call for a skilled and forward-thinking workforce. Plastics play a vital role in almost every aspect of daily life, and I encourage job seekers and students to consider the rewarding career paths in this essential industry.”
Registration now open for Women in Industry Conference 2024
MHEDA has announced that the Women in Industry Conference registration is now open! Join MHEDA, MHI, and WERC for the 2024 Women in Industry Conference at the Loews Chicago O’Hare Hotel on November 6-7, 2024, and gain tools to prepare yourself for all the future has in store for YOU! Learn how to increase your status, build your network, connect through life’s pivot points, and uncover the new rules of influence with AI. This interactive conference is designed to inspire you to lead the way in evolving and preparing for the business landscape of tomorrow. Event Highlights: Connect with like-minded peers and expand your professional network. Gain practical skills and insights on leadership, technology, and personal development. Participate in roundtable discussions with others in similar roles. Enjoy several interactive networking activities and engage with fellow attendees. Learn practical AI hacks that will dramatically increase your productivity. And more! For full details and to register, visit https://www.mheda.org/events/wii2024/.
ALAN HURRICANE HELENE SITUATIONAL REPORT for Wednesday, October 2, 2024
American Logistics Aid Network is mobilized for Hurricane Helene. As part of our response efforts, we are committed to providing you with the latest information and updates on supply chain impacts via our periodic Situation Reports. ALAN has been improving logistics response to disasters for 19 years, and the need is greater now than ever. Please donate today to help us continue our work for many more years to come. CRITICAL MESSAGES North Carolina Business Operations Center: Partners moving people, resources or equipment into western North Carolina, MUST coordinate plans and movements through the NCEM-BEOC. Help us keep critical supply lines open. Please do not self-deploy resources or supply logistics without coordinating with the BEOC. There is a high likelihood that your team(s) will be turned away at various checkpoints. We will prioritize movements and provide safe routes with an escort, as needed. You can email your supply logistics or movement requests to: BEOC@ncdps.gov Begin Subject Line with: Logistics Support Please include the following info: What are you moving? Why you need special access. When do you plan to move, and from where? Where are you going? When will they arrive at the “border to Western NC,” and where? In summary, until further notice, roads in Western NC (generally anywhere west of Hickory, NC) are closed to all traffic other than emergency services and pre-approved shipments coordinated through the BEOC. ITEMS OF INTEREST 2:00pm EDT North Carolina BEOC Coordination Call Teams Meeting Meeting ID: 259 218 205 140 Passcode: uyvDTB 4:00 pm EDT PSEMA Tropical Storm Helene Coordination Call via Zoom https://us02web.zoom.us/j/82147633838?pwd=hiay24IsxMe84PbrImyZtSlTdq60Vv.1 Meeting ID: 821 4763 3838 Passcode: PSEMA FEDERAL EMERGENCY DECLARATIONS President Biden approved Major Disaster Declaration for Virginia on October 2, 2024, in response to Hurricane Helene. President Biden approved Major Disaster Declaration for Georigia on October 1, 2024, in response to Hurricane Helene. President Biden approved Major Disaster Declaration for South Carolina on September 29, 2024, in response to Hurricane Helene. President Biden approved Emergency Declaration for Virginia on September 29, 2024, in response to Hurricane Helene. President Biden approved a Major Disaster Declaration for Florida on September 28, 2024, in response to Hurricane Helene. President Biden approved Major Disaster Declaration for North Carolina on September 28, 2024, in response to Hurricane Helene. President Biden approved Emergency Declaration for Tennessee on September 28, 2024, in response to Hurricane Helene. President Biden approved Emergency Declaration for South Carolina on September 26, 2024, in preparation for impacts from Hurricane Helene beginning on September 25, 2024, and continuing. President Biden approved Emergency Declaration for Alabama on September 26, 2024, in preparation for impacts from Hurricane Helene beginning on September 22, 2024, and continuing. President Biden approved Emergency Declaration for North Carolina on September 26, 2024, in preparation for impacts from Hurricane Helene beginning on September 25, 2024, and continuing. President Biden approved Emergency Declaration for Georgia on September 26, 2024, in preparation for impacts from Hurricane Helene beginning on September 24, 2024, and continuing. President Biden approved Emergency Declaration for Florida on September 24, 2024, in preparation for impacts from Tropical Storm Helene beginning on September 23, 2024, and continuing. STATE STATE DECLARATIONS Tennessee Governor Lee issued Executive Order No. 105 on September 27, 2024, in response to Hurricane Helene. West Virginia Governor Justice issued Proclamation declaring a State of Preparedness on September 26, 2024, in response to Hurricane Helene. Virginia Governor Youngkin issued Executive Order No. 37 on September 25, 2024 declaring a state of emergency due to Hurricane Helene. South Carolina Governor McMaster issued Executive Order 2024-24 on September 25, 2024, in preparation for impacts from Hurricane Helene. North Carolina Governor Cooper issued Executive Order No. 315 on September 25, 2024, declaring a statewide state of emergency and temporary waiver and suspension of motor vehicle regulations. Georgia Governor Kemp issued Executive Order on September 24, 2024, declaring a State of Emergency for Tropical Storm Helene. Florida Governor DeSantis issued Executive Order 24-209 on September 24, 2024, amending Executive Order 24-208. Florida Governor DeSantis issued Executive Order 24-208 on September 23, 2024, in preparation for impacts from potential tropical cyclone nine. ACTIVE TRANSPORTATION WAIVERS Title: Virginia Department of Transportation Secretary issued Transportation Waiver on September 26, 2024 (extension signed 10/01/24) Effective: 09/26/24| Expires on: 10/25/24 Description: The Virginia Department of Transportation Commissioner issued a transportation waiver granting temporary overweight, over width, registration, license, or hours of service exemptions to all carriers transporting essential emergency relief supplies to, through, and from any area of the Commonwealth. Authorization applies also applies to water, food, heating oil, motor fuels or propane, or agricultural products, agricultural supplies, livestock and poultry, forest products and salvaged wood, waste, and trees cut in preparation for the storm, or providing restoration of utilities. Title: Tennessee Governor Lee issued Executive Order No. 105 for Hurricane Helene Effective: 09/27/24| Expires on: 10/11/24 Description: Tennessee Executive Order No. 105 provides exemption to Tennessee Code Annotated Sections: 55-4-401 through Section 55-4-413; Section 55-7-201 through Section 55-8-209, and Tenn. Comp. R. & Regs. 1680-07-01 through 1680-07-01-.25 that set forth maximum weight, height, length, and width limitations are suspended in the case of vehicles providing relief efforts in response to severe weather. In accordance with 49 CFR 390.23, provide a temporary exemption from 49 CFR Part 395 limiting the hours of service for the operator of a commercial vehicle providing supplies, equipment, personnel, and other provisions to assist persons affected by severe weather. Title: Alabama Department of Revenue Commissioner issued Executive Order Effective: 09/27/24| Expires on: 10/27/24 Description: Alabama Department of Revenue Commissioner issued executive order providing temporary suspension of the motor fuel exporter, importer, and transporter licensing requirements associated with the Alabama Terminal Excise Tax for those supporting disaster relief efforts by engaging in the export of motor fuel from Alabama to areas in other states impacted by Hurricane Helene. Title: Alabama Department of Revenue Commissioner issued Executive Order Effective: 09/27/24| Expires on: 10/27/24 Description: Alabama Department of Revenue Commissioner issued executive order providing temporary suspension of the requirements associated with the International Registration Plan and International Fuel Tax Agreement for any motor vehicle engaged in interstate disaster relief which will be traveling through the State of Alabama as part of the disaster relief. Title: Virginia Department of Transportation Secretary issued Transportation Waiver on September 26, 2024 Effective: 09/26/24| Expires on: 10/02/24 Description: Virginia Department of Transportation Commissioner issued a transportation waiver granting temporary overweight, over width, registration, license, or hours of service exemptions to all carriers transporting
MHI offers support for the victims of Hurricane Helene
The sights of Hurricane Helene’s flooding, debris, and destruction are incredibly saddening, particularly when we consider the lives lost and those who are still missing or awaiting help. The road to recovery will be long and arduous, with overwhelming work ahead. The American Logistics Aid Network (ALAN) is actively responding to these needs, as it has done for over 19 years. To help support the relief efforts, the MHI Board of Governors has approved a resolution to donate $200,000 to ALAN. “It is hard to know where to even begin in the face of such massive devastation,” said John Paxton, MHI CEO. “We are confident that the donation to ALAN will get relief to those who need it as swiftly as possible.” MHI encourages you to check in frequently for ALAN’s latest updates and needs. If you’d prefer, you can also make a donation to support our ongoing humanitarian efforts. Every dollar truly helps. You can also provide support by providing the specifically requested material handling equipment. Please be on the lookout for additional material handling equipment donation needs from the ALAN network. In addition to ALAN, these organizations also assist Helene victims. American Red Cross World Central Kitchen United Way The Salvation Army
Plastics: The global nature of an indispensable industry
Each year, the Plastics Industry Association releases one of our flagship publications, the Global Trends Report. Written from the U.S. plastics industry perspective, the report provides a detailed assessment of the plastics trade during the previous year and the first six months of the current year. Last year’s report highlighted a $1.0 billion U.S. plastic trade surplus for the first six months. It also projected that the U.S. would return to a plastics trade surplus in 2023, which appears to be confirmed in this year’s forthcoming Global Trends Report. However, trade challenges can arise at any point, and unlike any global industry, the plastics industry’s supply chain is no exception. For instance, the dockworkers’ strike along the East and Gulf Coasts, which began on October 1, could create significant supply chain disruptions if not resolved promptly, and its overall impact on the macroeconomy could be inflationary. During a roundtable discussion this week, led by U.S. Department of Commerce Assistant Secretary Grant Harris, the Plastics Industry Association expressed concerns about the state of trade. It noted that plastics imports totaled $38.7 billion in the first half of 2024, while exports reached $38.6 billion. Given the wide range of industries plastics serve, plastic trade has far-reaching implications for the U.S. economy. Perc Pineda, PhD, Chief Economist of PLASTICS, shared his concerns during the discussion: “From a broader supply chain perspective, we hope the issue is resolved soon,” Pineda said, adding that “in the meantime, the U.S. plastics industry, by and large, can address potential supply gaps in manufacturing inputs due to the ports strike, just as it did during the COVID-19 pandemic – to keep the U.S. economy moving.” Although the U.S.’s free trade partners, Mexico and Canada, accounted for 45.1% of total U.S. plastics industry exports and 30.3% of imports year-to-date through July 2024, with trade primarily moving by rail or truck, trade with other countries also plays a significant role. As of July 2024, the estimated total exports of plastics materials and products, excluding plastics machinery and molds for plastics, originating from The East and Gulf ports were $17.9 billion, while imports were $17.0 billion. Since PLASTICS began tracking global plastic players in its annual Global Plastics Rank®, the U.S. has consistently ranked second to China, surpassing Germany, which holds the third position, as a key global player in plastics trade. This year’s annual Global Trends Report edition will be released on October 16, 2024, at the inaugural National Plastics Conference in Houston, TX. For more information on the event, visit: https://nationalplasticsconference.org/
TAPPI’s Corrugated Packaging Council elects two new members
Danny Lopez, VP of New Machinery Sales at The Haire Group, and Tom Staal, Director of Management Systems at Coastal Containers, have been elected to TAPPI’s Corrugated Packaging Council (CPC). The CPC acts as the governing body of TAPPI’s Corrugated Packaging Division, developing strategic plans, press products, and events. Lopez collaborates with Haire’s global customers to develop new products, which is part of his responsibility. He has worked his entire career in the corrugated packaging industry, beginning in 2006 as an application engineer for Alliance Machine Systems International, where he designed corrugated plant layouts in North, Central, and South America before switching to sales, management, and product support for all Alliance customers in the western U.S. and Canada. Staal used his experience as a plant floor supervisor, quality management professional, and now member of the organization’s management team to help Coastal transition from a sheet plant start-up to a full-line corrugated plant. A 30-year TAPPI member, he has long been a member of the Corrugated Board Technical Service Committee (CORBOTEC) and the Fiberboard Shipping Container Testing Committee (FISCOTEC). Staal served as Chair of FISCOTEC and is currently the Vice Chair of CORBOTEC. He previously served as an elected member of the CPC as well as an appointed member. He has served as working group chair on numerous TAPPI Test Methods and TIPs and the Standards Advisory Review Group (SARG). Staal was awarded the Division Technical Award in 2019. The CPC includes appointed members from International Paper, The Haire Group, Menasha Packaging, WestRock, Packaging Corporation of America, Pratt Industries, Arvco Container, Advance Packaging, SMC Packaging, and Greif. The elected positions include BW Papersystems, Kohler Coating, Niagara Sheets, and Fosber members. The Chairs of the Corrugated Division Technical Committees, the YP Division Liaison to Corrugated, and the Supplier Advisory Committee Chair complete the council. Each position is for a three-year term. Lopez and Staal will serve as Member-at-Large. TAPPI’s Corrugated Packaging Division focuses on manufacturing and using corrugated containers and associated packaging materials and products and serves as a forum for knowledge sharing in the industry. The Division comprises members who work for converters, suppliers, consulting companies, and others in the converting industry.