As residents of Hawaii brace for the potential landfall of Hurricane Lane, the American Logistics Aid Network (ALAN) today asked supply chain professionals who are not located in the path of the storm to be ready to help by donating transportation, space, services, and equipment.
Map from the U.S. National Oceanic and Atmospheric Administration showing probable path of Hurricane Lane as of 3 p.m. Aug. 23. The map does not show storm size. View most recent map on NOAA site.
Heavy rain began falling Wednesday on the state's southernmost region, the Big Island, causing flooding and landslides and prompting officials to close highways. The storm is moving slowly through the Pacific and is forecast to pass close to land by Friday and Saturday, triggering torrential rain, high winds, and heavy surf conditions, according to the U.S. National Weather Service.
Hurricanes rarely strike Hawaii, but the impact on the state's transportation and logistics infrastructure could be extensive. Twelve months ago, hurricanes Maria, Irma, and Harvey tore through a half-dozen U.S. Southeast states and Caribbean islands, causing billions of dollars of damage and destruction.
As a powerful, Class Four storm, Hurricane Lane also has the potential to be a powerful and damaging event, according to Kathy Fulton, ALAN's executive director. In response, the group has created a Hurricane Lane web page that acts as a single hub where organizations can view and offer support for urgent logistics needs, monitor the path of the storm, and get updates about road, port, and other area conditions, Fulton said.
Recovery workers won't know exactly what kinds of logistics support will be needed until after Lane hits, but ALAN says logistics professionals can begin to help now by pre-offering equipment, space or services and by sharing the website link with other logistics professionals and businesses that might be interested in helping.
"This site will help us relay important safety messages and get the word out about Lane-related needs more quickly," Fulton said in a statement. "Few things are more challenging than figuring out how to get critical items like food, water, medicine and temporary shelter to impacted areas immediately after disasters strike—which is exactly what ALAN and its members are here to do."
Emergency officials in the state have not yet made any requests for support, according to ALAN, which is in touch with groups such as the Hawai'i Voluntary Organizations Active in Disaster and the Hawai'i Emergency Management Agency. However, that pattern is typical in disaster response and does not imply that the storm will be weak, ALAN warned. In previous years, most of the group's requests have come several days or weeks after hurricanes have hit.
In the meantime, businesses in the path of the storm that handle critical commodities such as food, pharmaceuticals, or hydration should stay in close touch with authorities and participate in ALAN's supply chain situational awareness calls, the group said.
"Information on supply chain disruption is often essential for emergency management decision-makers to have as they put recovery plans in place," Fulton said in a statement. "So if any of your area facilities or delivery services could be closed as a result of the storm, contact us at ops@ALANAid.org to discuss how and where that information can be securely communicated."
Supply chain managers and business leaders can also prepare by applying lessons learned from last year's hurricanes, according to PLS Logistics Services, a logistics management service provider in Cranberry Township, Pa.
To provide the best chance of a quick recovery in case of disaster, companies should implement business continuity plans with a weather-related risk management approach, PLS said in a recent blog post. Effective plans should include worst-case and what-if scenarios for high-risk areas, an emergency plan that includes alternative routes and production plans outside affected facilities, and coordination between supply chain partners both inside and outside your organization, the firm said.
Companies can also prepare for natural disasters by developing a list of additional suppliers, transportation providers, and warehousing options to implement as a back up plan, according to PLS.
Ideally, the storm will pass the islands far enough away to mitigate serious damage, and these plans will never be deployed, Fulton said. But it's always best to be prepared. "Over the years we've seen some potentially catastrophic hurricanes that have turned into relatively minor events while others have morphed into far more major events than originally anticipated," she said. "Obviously, we hope Lane will turn out to be the former. However if it isn't, we want people to remember that we are here to help—and that when it comes to these storms, there's no such thing as too ready."
Companies in every sector are converting assets from fossil fuel to electric power in their push to reach net-zero energy targets and to reduce costs along the way, but to truly accelerate those efforts, they also need to improve electric energy efficiency, according to a study from technology consulting firm ABI Research.
In fact, boosting that efficiency could contribute fully 25% of the emissions reductions needed to reach net zero. And the pursuit of that goal will drive aggregated global investments in energy efficiency technologies to grow from $106 Billion in 2024 to $153 Billion in 2030, ABI said today in a report titled “The Role of Energy Efficiency in Reaching Net Zero Targets for Enterprises and Industries.”
ABI’s report divided the range of energy-efficiency-enhancing technologies and equipment into three industrial categories:
Commercial Buildings – Network Lighting Control (NLC) and occupancy sensing for automated lighting and heating; Artificial Intelligence (AI)-based energy management; heat-pumps and energy-efficient HVAC equipment; insulation technologies
Manufacturing Plants – Energy digital twins, factory automation, manufacturing process design and optimization software (PLM, MES, simulation); Electric Arc Furnaces (EAFs); energy efficient electric motors (compressors, fans, pumps)
“Both the International Energy Agency (IEA) and the United Nations Climate Change Conference (COP) continue to insist on the importance of energy efficiency,” Dominique Bonte, VP of End Markets and Verticals at ABI Research, said in a release. “At COP 29 in Dubai, it was agreed to commit to collectively double the global average annual rate of energy efficiency improvements from around 2% to over 4% every year until 2030, following recommendations from the IEA. This complements the EU’s Energy Efficiency First (EE1) Framework and the U.S. 2022 Inflation Reduction Act in which US$86 billion was earmarked for energy efficiency actions.”
Economic activity in the logistics industry expanded in November, continuing a steady growth pattern that began earlier this year and signaling a return to seasonality after several years of fluctuating conditions, according to the latest Logistics Managers’ Index report (LMI), released today.
The November LMI registered 58.4, down slightly from October’s reading of 58.9, which was the highest level in two years. The LMI is a monthly gauge of business conditions across warehousing and logistics markets; a reading above 50 indicates growth and a reading below 50 indicates contraction.
“The overall index has been very consistent in the past three months, with readings of 58.6, 58.9, and 58.4,” LMI analyst Zac Rogers, associate professor of supply chain management at Colorado State University, wrote in the November LMI report. “This plateau is slightly higher than a similar plateau of consistency earlier in the year when May to August saw four readings between 55.3 and 56.4. Seasonally speaking, it is consistent that this later year run of readings would be the highest all year.”
Separately, Rogers said the end-of-year growth reflects the return to a healthy holiday peak, which started when inventory levels expanded in late summer and early fall as retailers began stocking up to meet consumer demand. Pandemic-driven shifts in consumer buying behavior, inflation, and economic uncertainty contributed to volatile peak season conditions over the past four years, with the LMI swinging from record-high growth in late 2020 and 2021 to slower growth in 2022 and contraction in 2023.
“The LMI contracted at this time a year ago, so basically [there was] no peak season,” Rogers said, citing inflation as a drag on demand. “To have a normal November … [really] for the first time in five years, justifies what we’ve seen all these companies doing—building up inventory in a sustainable, seasonal way.
“Based on what we’re seeing, a lot of supply chains called it right and were ready for healthy holiday season, so far.”
The LMI has remained in the mid to high 50s range since January—with the exception of April, when the index dipped to 52.9—signaling strong and consistent demand for warehousing and transportation services.
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).
"After several years of mitigating inflation, disruption, supply shocks, conflicts, and uncertainty, we are currently in a relative period of calm," John Paitek, vice president, GEP, said in a release. "But it is very much the calm before the coming storm. This report provides procurement and supply chain leaders with a prescriptive guide to weathering the gale force headwinds of protectionism, tariffs, trade wars, regulatory pressures, uncertainty, and the AI revolution that we will face in 2025."
A report from the company released today offers predictions and strategies for the upcoming year, organized into six major predictions in GEP’s “Outlook 2025: Procurement & Supply Chain.”
Advanced AI agents will play a key role in demand forecasting, risk monitoring, and supply chain optimization, shifting procurement's mandate from tactical to strategic. Companies should invest in the technology now to to streamline processes and enhance decision-making.
Expanded value metrics will drive decisions, as success will be measured by resilience, sustainability, and compliance… not just cost efficiency. Companies should communicate value beyond cost savings to stakeholders, and develop new KPIs.
Increasing regulatory demands will necessitate heightened supply chain transparency and accountability. So companies should strengthen supplier audits, adopt ESG tracking tools, and integrate compliance into strategic procurement decisions.
Widening tariffs and trade restrictions will force companies to reassess total cost of ownership (TCO) metrics to include geopolitical and environmental risks, as nearshoring and friendshoring attempt to balance resilience with cost.
Rising energy costs and regulatory demands will accelerate the shift to sustainable operations, pushing companies to invest in renewable energy and redesign supply chains to align with ESG commitments.
New tariffs could drive prices higher, just as inflation has come under control and interest rates are returning to near-zero levels. That means companies must continue to secure cost savings as their primary responsibility.
Specifically, 48% of respondents identified rising tariffs and trade barriers as their top concern, followed by supply chain disruptions at 45% and geopolitical instability at 41%. Moreover, tariffs and trade barriers ranked as the priority issue regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501-1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing.
“Evolving tariffs and trade policies are one of a number of complex issues requiring organizations to build more resilience into their supply chains through compliance, technology and strategic planning,” Jackson Wood, Director, Industry Strategy at Descartes, said in a release. “With the potential for the incoming U.S. administration to impose new and additional tariffs on a wide variety of goods and countries of origin, U.S. importers may need to significantly re-engineer their sourcing strategies to mitigate potentially higher costs.”
Freight transportation providers and maritime port operators are bracing for rough business impacts if the incoming Trump Administration follows through on its pledge to impose a 25% tariff on Mexico and Canada and an additional 10% tariff on China, analysts say.
Industry contacts say they fear that such heavy fees could prompt importers to “pull forward” a massive surge of goods before the new administration is seated on January 20, and then quickly cut back again once the hefty new fees are instituted, according to a report from TD Cowen.
As a measure of the potential economic impact of that uncertain scenario, transport company stocks were mostly trading down yesterday following Donald Trump’s social media post on Monday night announcing the proposed new policy, TD Cowen said in a note to investors.
But an alternative impact of the tariff jump could be that it doesn’t happen at all, but is merely a threat intended to force other nations to the table to strike new deals on trade, immigration, or drug smuggling. “Trump is perfectly comfortable being a policy paradox and pushing competing policies (and people); this ‘chaos premium’ only increases his leverage in negotiations,” the firm said.
However, if that truly is the new administration’s strategy, it could backfire by sparking a tit-for-tat trade war that includes retaliatory tariffs by other countries on U.S. exports, other analysts said. “The additional tariffs on China that the incoming US administration plans to impose will add to restrictions on China-made products, driving up their prices and fueling an already-under-way surge in efforts to beat the tariffs by importing products before the inauguration,” Andrei Quinn-Barabanov, Senior Director – Supplier Risk Management solutions at Moody’s, said in a statement. “The Mexico and Canada tariffs may be an invitation to negotiations with the U.S. on immigration and other issues. If implemented, they would also be challenging to maintain, because the two nations can threaten the U.S. with significant retaliation and because of a likely pressure from the American business community that would be greatly affected by the costs and supply chain obstacles resulting from the tariffs.”
New tariffs could also damage sensitive supply chains by triggering unintended consequences, according to a report by Matt Lekstutis, Director at Efficio, a global procurement and supply chain procurement consultancy. “While ultimate tariff policy will likely be implemented to achieve specific US re-industrialization and other political objectives, the responses of various nations, companies and trading partners is not easily predicted and companies that even have little or no exposure to Mexico, China or Canada could be impacted. New tariffs may disrupt supply chains dependent on just in time deliveries as they adjust to new trade flows. This could affect all industries dependent on distribution and logistics providers and result in supply shortages,” Lekstutis said.