Humanitarian logistics measures to help rebuild the United States' fourth most populous city
and the Texas Gulf Coast are starting to take shape.
In the immediate term, the
American Logistics Aid Network (ALAN), which connects logistics resources with
organizations involved in disaster recovery efforts, is aiding residents of Houston, Texas,
and the state's coastal regions who have been displaced by Hurricane, then tropical storm,
Harvey. Kathy Fulton, ALAN's executive director, put out multiple calls today for 10,000
to 100,000 square feet of warehouse space in Dallas, Austin, and San Antonio, Texas—cities
that will receive tens, if not hundreds, of thousands of refugees in the coming days.
There, relief organizations can store materiel that will be needed for individuals and
families to survive in hastily erected shelters.
Once the floodwaters recede and displaced people are provided with temporary housing,
ALAN's long-term work will begin in earnest. Fulton estimates a network of large warehouses will dot
the region to help provide survivors with whatever is necessary to restore their lives. In
addition, a huge, "pop-up" type warehouse and DC, the location of which has yet to be
determined, will spring up where volunteers will accept donations not designated to a
specific relief group. There, they will repackage and palletize the goods as efficiently
as possible and distribute them. A state agency will head up the operation and contract
out its day-to-day management. Relief organizations can use the warehouse to store and pull
goods as needed, Fulton said. Vehicles ranging from private cars to 53-foot trailers will
be recruited for inbound moves to the warehouse, while trucks hired by relief
organizations will largely handle outbound moves, she said.
Years of work lie ahead in Houston for ALAN, Fulton said. The group still works in
areas of the Northeast devastated by Superstorm Sandy nearly five years ago.
For now, ALAN and everybody else can only wait for Harvey to run its cours By the time Harvey departs sometime Thursday or Friday, it is expected to have dropped 50 inches of rain on greater Houston, or as much as the area gets in a year.
The Port of Houston will remain closed today, and Houston's two main airports, George
W. Bush Intercontinental and William P. Hobby, are closed until further notice. Over 500
roadways in southeast Texas were experiencing flood conditions as of this morning,
according to
a post on the Texas Department of Transportation website. Rail operations
have been hamstrung by high waters and the inability of trucks to pick up and deliver
goods. Union Pacific Corp. (UP), the Omaha, Neb.-based railroad whose network feeds
directly into the area, has suspended operations from Brownsville, Texas, to Lake Charles,
La., due to high water and storm damage. UP said it can't access or inspect tracks and
facilities in the Houston area until the storms move out and the flooding recedes.
UP said the opening of routes through San Antonio will allow it to run north-south trains
between San Antonio and Hearne, Texas, 120 miles northwest of Houston near College Station.
UP's Laredo, Texas, gateway remains open to interchange traffic with the Mexican railroads, it said.
Atlanta-based UPS Inc., the nation's largest transportation company, has not changed its
status since late Monday when it said 728 zip codes in Texas and four in neighboring
Louisiana were experience some form of disruption.
The Chicago-based information technology provider project44 said it will offer
its less-than-truckload (LTL) transit time and visibility products as well as its
truckload visibility product free of charge for the next 30 days so that shippers can
gain visibility into what has become a compromised trucking network and make informed
inventory management decisions. "Real-time visibility can help optimize transportation
routes during natural disasters," the company said in a statement. "Accurate, up-to-date
transit times allow shippers to better forecast inventory availability and deliver
contingency plans for delayed shipments."
Consultancy FTR said that Harvey will "strongly affect" more than 7 percent
of U.S. trucking, with about 10 percent of all trucking operations impaired to some
degree during the first week. A portion of the country's trucking network will be
compromised for as long as two weeks, FTR said. After a month, about 2 percent of
the national network and one-quarter of the regional system—skewed heavily towards
the Gulf—will be impacted. Regional services will absorb most of the dislocation,
FTR said.
ReposiTrak, a global food traceability network operator, will partner with Upshop, a provider of store operations technology for food retailers, to create an end-to-end grocery traceability solution that reaches from the supply chain to the retail store, the firms said today.
The partnership creates a data connection between suppliers and the retail store. It works by integrating Salt Lake City-based ReposiTrak’s network of thousands of suppliers and their traceability shipment data with Austin, Texas-based Upshop’s network of more than 450 retailers and their retail stores.
That accomplishment is important because it will allow food sector trading partners to meet the U.S. FDA’s Food Safety Modernization Act Section 204d (FSMA 204) requirements that they must create and store complete traceability records for certain foods.
And according to ReposiTrak and Upshop, the traceability solution may also unlock potential business benefits. It could do that by creating margin and growth opportunities in stores by connecting supply chain data with store data, thus allowing users to optimize inventory, labor, and customer experience management automation.
"Traceability requires data from the supply chain and – importantly – confirmation at the retail store that the proper and accurate lot code data from each shipment has been captured when the product is received. The missing piece for us has been the supply chain data. ReposiTrak is the leader in capturing and managing supply chain data, starting at the suppliers. Together, we can deliver a single, comprehensive traceability solution," Mark Hawthorne, chief innovation and strategy officer at Upshop, said in a release.
"Once the data is flowing the benefits are compounding. Traceability data can be used to improve food safety, reduce invoice discrepancies, and identify ways to reduce waste and improve efficiencies throughout the store,” Hawthorne said.
Under FSMA 204, retailers are required by law to track Key Data Elements (KDEs) to the store-level for every shipment containing high-risk food items from the Food Traceability List (FTL). ReposiTrak and Upshop say that major industry retailers have made public commitments to traceability, announcing programs that require more traceability data for all food product on a faster timeline. The efforts of those retailers have activated the industry, motivating others to institute traceability programs now, ahead of the FDA’s enforcement deadline of January 20, 2026.
Inclusive procurement practices can fuel economic growth and create jobs worldwide through increased partnerships with small and diverse suppliers, according to a study from the Illinois firm Supplier.io.
The firm’s “2024 Supplier Diversity Economic Impact Report” found that $168 billion spent directly with those suppliers generated a total economic impact of $303 billion. That analysis can help supplier diversity managers and chief procurement officers implement programs that grow diversity spend, improve supply chain competitiveness, and increase brand value, the firm said.
The companies featured in Supplier.io’s report collectively supported more than 710,000 direct jobs and contributed $60 billion in direct wages through their investments in small and diverse suppliers. According to the analysis, those purchases created a ripple effect, supporting over 1.4 million jobs and driving $105 billion in total income when factoring in direct, indirect, and induced economic impacts.
“At Supplier.io, we believe that empowering businesses with advanced supplier intelligence not only enhances their operational resilience but also significantly mitigates risks,” Aylin Basom, CEO of Supplier.io, said in a release. “Our platform provides critical insights that drive efficiency and innovation, enabling companies to find and invest in small and diverse suppliers. This approach helps build stronger, more reliable supply chains.”
Logistics industry growth slowed in December due to a seasonal wind-down of inventory and following one of the busiest holiday shopping seasons on record, according to the latest Logistics Managers’ Index (LMI) report, released this week.
The monthly LMI was 57.3 in December, down more than a percentage point from November’s reading of 58.4. Despite the slowdown, economic activity across the industry continued to expand, as an LMI reading above 50 indicates growth and a reading below 50 indicates contraction.
The LMI researchers said the monthly conditions were largely due to seasonal drawdowns in inventory levels—and the associated costs of holding them—at the retail level. The LMI’s Inventory Levels index registered 50, falling from 56.1 in November. That reduction also affected warehousing capacity, which slowed but remained in expansion mode: The LMI’s warehousing capacity index fell 7 points to a reading of 61.6.
December’s results reflect a continued trend toward more typical industry growth patterns following recent years of volatility—and they point to a successful peak holiday season as well.
“Retailers were clearly correct in their bet to stock [up] on goods ahead of the holiday season,” the LMI researchers wrote in their monthly report. “Holiday sales from November until Christmas Eve were up 3.8% year-over-year according to Mastercard. This was largely driven by a 6.7% increase in e-commerce sales, although in-person spending was up 2.9% as well.”
And those results came during a compressed peak shopping cycle.
“The increase in spending came despite the shorter holiday season due to the late Thanksgiving,” the researchers also wrote, citing National Retail Federation (NRF) estimates that U.S. shoppers spent just short of a trillion dollars in November and December, making it the busiest holiday season of all time.
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
Specifically, the two sides remain at odds over provisions related to the deployment of semi-automated technologies like rail-mounted gantry cranes, according to an analysis by the Kansas-based 3PL Noatum Logistics. The ILA has strongly opposed further automation, arguing it threatens dockworker protections, while the USMX contends that automation enhances productivity and can create long-term opportunities for labor.
In fact, U.S. importers are already taking action to prevent the impact of such a strike, “pulling forward” their container shipments by rushing imports to earlier dates on the calendar, according to analysis by supply chain visibility provider Project44. That strategy can help companies to build enough safety stock to dampen the damage of events like the strike and like the steep tariffs being threatened by the incoming Trump administration.
Likewise, some ocean carriers have already instituted January surcharges in pre-emption of possible labor action, which could support inbound ocean rates if a strike occurs, according to freight market analysts with TD Cowen. In the meantime, the outcome of the new negotiations are seen with “significant uncertainty,” due to the contentious history of the discussion and to the timing of the talks that overlap with a transition between two White House regimes, analysts said.
That percentage is even greater than the 13.21% of total retail sales that were returned. Measured in dollars, returns (including both legitimate and fraudulent) last year reached $685 billion out of the $5.19 trillion in total retail sales.
“It’s clear why retailers want to limit bad actors that exhibit fraudulent and abusive returns behavior, but the reality is that they are finding stricter returns policies are not reducing the returns fraud they face,” Michael Osborne, CEO of Appriss Retail, said in a release.
Specifically, the report lists the leading types of returns fraud and abuse reported by retailers in 2024, including findings that:
60% of retailers surveyed reported incidents of “wardrobing,” or the act of consumers buying an item, using the merchandise, and then returning it.
55% cited cases of returning an item obtained through fraudulent or stolen tender, such as stolen credit cards, counterfeit bills, gift cards obtained through fraudulent means or fraudulent checks.
48% of retailers faced occurrences of returning stolen merchandise.
Together, those statistics show that the problem remains prevalent despite growing efforts by retailers to curb retail returns fraud through stricter returns policies, while still offering a sufficiently open returns policy to keep customers loyal, they said.
“Returns are a significant cost for retailers, and the rise of online shopping could increase this trend,” Kevin Mahoney, managing director, retail, Deloitte Consulting LLP, said. “As retailers implement policies to address this issue, they should avoid negatively affecting customer loyalty and retention. Effective policies should reduce losses for the retailer while minimally impacting the customer experience. This approach can be crucial for long-term success.”