Logistics Viewpoints

A complete analysis of logistics trends, technologies, and services

This Week in Logistics News (March 22 – 28)

Global Trade | By •

exxon

March 24 marked the 25th anniversary of the Exxon Valdez oil spill in Prince William Sound in Alaska. The impact of the oil spill is still being felt today. While the majority of species affected by the spill have recovered to pre-spill levels, and the commercial fishing industry has mostly recovered, federal scientists estimate that between 16,000 and 21,000 gallons of oil remains on beaches in Prince William Sound and up to 450 miles away. That is a not so subtle reminder of the fragility of our environment.

And now,  on to the news.

Houston ship channel partially reopens after oil spill

Williams-Sonoma Focuses $220M CapEx on Supply Chain, Global Expansion

Photos, video: Peterbilt, Great Dane concept truck for Walmart unveiled

Love Mack? How about a free tattoo?

This week’s top story comes in the wake of another oil spill, this time off the coast of Texas. The Coast Guard has partially reopened the Houston Ship Channel, just days after a collision between a barge and a ship spilled up to 170,000 gallons of tar-like oil to spill into the waters south of Houston. Cleanup efforts these days tend to be quicker and more thorough, as it is a major planning component of any waterway that allows the transport of oil. This waterway is one of the nation’s busiest seaports to ship traffic. The re-opening helps to alleviate shipping concerns, as more than 100 ships on both sides of the channel were awaiting the reopening.

“The cleanup operations progress is to the point that there is minimal danger of contamination to the commercial maritime traffic and allowing limited transit during daylight hours,” said Coast Guard Capt. Brian Penoyer. “This is an important accomplishment for every person working this response.”

Retailers are looking at how to evolve their omni-channel efforts. Williams-Sonoma is putting the supply chain at the forefront of their efforts. By increasing their supply chain technology spend, this retailer can enable an “anytime, anywhere” retail environment, which is really at the heart of omni-channel.

“We invest in technology to support our multi-channel business,” noted Alber. “Our technology investments are fundamental to support our topline momentum and create shareholder value for the long-term. The power of our brands in conjunction with our multi-channel excellence provides us with a competitive advantage.”

Walmart’s new fleet of trucks could be the Walmart Advanced Vehicle Experience. While this is only a concept truck, the focus is on aerodynamics. The truck’s cab has been placed over the engine, shortening its wheelbase and reducing weight. It’s also closed up the gap between the trailer and truck. With so much discussion over fuel efficiency and carbon footprints, could Walmart be making a move to be the leader in eco-friendly trucking?

And finally, on a more lighthearted story, Mack  is giving away free tattoos of their new bulldog logo. Miami Ink tattoo artists Ami James and Chris Garver will tattoo the new Mack®Bulldog logo or the American Flag on Friday, March 28, and Saturday, March 29, during the Mid-America Trucking Show. Appointments must be made ahead of time.

MackTattoo_2014MATS

Have a great weekend, and enjoy the song of the week: “Black Gold” by Soul Asylum.

Oversight Failures Increase Supply Chain Risks

Supply Chain Risk Management | By •

Supply chain managers often bemoan increasing regulation, and how new regulations or overly stringent oversight increases supply chain costs and makes their day-to-day jobs more complex. But as we have seen in the news recently, failures in government oversight can increase our supply chain risks. 

The oil spill in the Gulf of Mexico is currently not affecting the Port of New Orleans or traffic on the Mississippi river, but the Coast Guard is monitoring the situation closely. As reported in a Boston Globe article, the Coast Guard must prepare for “a sudden course shift that could push the thick gunk into the shipping channel of the Mississippi River.”

According to a Wall Street Journal article, the oil rig that caught fire and sank didn’t have a remote-control shut-off switch used in two other major oil producing nations as last resort protection against spills. Legislators are now asking how the Minerals Management Service, the federal agency charged with regulating off-shore drilling, could have given British Petroleum a permit.

Meanwhile, USA Today reported on a different oversight failure:

The U.S. Transportation Department never conducted required safety checks on 20,000 to 30,000 companies that got special permits to move risky shipments of hazardous materials by road, rail, water and air, records show.

Some companies using the permits have had serious hazardous materials accidents or safety violations, according to data compiled by DOT’s inspector general. This year, for example, a company got a special permit to haul a poisonous and flammable ammonia solution despite having 14 hazardous material spills in the last four years, including four “serious” incidents that caused evacuations, major injuries, highway closures or other significant consequences. The firm also had 11 violations of hazardous materials rules.

Shortly after that article was published, an 18-wheeler being loaded with fuel at a San Antonio refinery exploded, setting off a chain reaction of smaller explosions.

This prompted firefighters to create a half-mile evacuation zone around the fire. The explosion occurred at the intersection of a four lane divided highway. It is not yet clear who or what is at fault: the trucking company, poor terminal automation equipment, or both.

Clearly, regulations serve a useful purpose in many cases. From a supply chain perspective, good regulation and oversight can help supply chains run smoother, but only if they are enforced.

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