Warehouses turn to AI to curb logistics labor shortage
Good morning! Happy Tuesday. Grab your cup of coffee, sit back, and relax. ☕️
The pains of a warehouse labor shortage have been felt throughout the logistics industry since the early days of 2022. Automation has largely been the answer, with many warehouses attempting to fill the labor gap with robots. Putting AI on the floor has invited workers to abandon the usual “mundane” warehouse tasks for more creative positions. But is this business move strategic for long-term planning? Or is it just a band-aid on the problem?
Check out today’s featured article from DC Velocity to read about the future of warehousing and artificial intelligence - should human workers be concerned? Or should they be excited for the new age of warehouse operations?
Amazon Money GIF/CNN via GIPHY
Featured Article:
The robots are here. Now what? | DC Velocity
“There’s more to automating warehouse operations than simply swapping in bots for humans.”
Water Cooler Topics
👷♂️ Transportation and logistics workers are critical to the supply chain running smoothly, and they will use that to their advantage in order to get what they want and need. Strikes and protests have proven to be an effective method for union workers for decades, however - no more than ever - workers in the transportation sector are recognizing the power they have. It’s safe to say that the past few years have created a plethora of tough conditions for workers on the front line of the supply chain, and now in the midst of labor shortages, the workers are demanding change and better support for their industries. Trains, trucks, ports, ships, and air travel are all pockets of the transportation logistics industry facing labor disputes.
🍒 The Chinese love their American cherry imports - so much so, that the top buyer of US cherries has impacted airfreight capacity for other export markets to ensure their shipments get delivered. The strict lockdowns and restrictions imposed on Chinese ports and transportation have not stopped the cherries from making their way from the U.S. to China. The cherry crop is significantly less this year than in years past - recording the lowest harvest since 2013. This smaller supply but high demand has increased the cost of the fruit in Chinese supermarkets.
🍼 Five months after the beginning of a shortage that has had parents of infants across America scrambling for baby formula, President Joe Biden signed legislation to suspend tariffs on imported baby formula. This legislation passed both chambers of Congress unanimously. Domestic production of baby formula came essentially to a screeching halt earlier this year and the delayed effort by congress to reform the regulatory rules around the product has some signaling a need for a change under emergency circumstances.
Biden Administration sidesteps nationwide railroad worker strike with creation of emergency board
The creation of the Presidential Emergency Board (PEB) comes on the heels of approximately 115,000 railroad workers across the nation threatening a full-scale strike. President Biden’s move is meant to better mediate the situation between North America’s oldest railroad union - The Brotherhood of Locomotive Engineers and Trainmen - and the nation’s largest railroad companies. There have been ongoing contract negotiations since 2011 - over a decade - but no resolution.
Pandemic-related issues in the economy have created a highly profitable industry in the railroads. Rail workers were essential operations, and forced to work in the early days of the pandemic when many others were sent home. The workers are now looking for returns on what was demanded of them during the toughest of times.
Business Strategy 💡
Digital Transformations Are Not Just for the Big Guys - Logistics Viewpoints
“When you think about digital transformation, you probably think of multinational giants like McDonald’s or Sephora.”
Watch: Planning in the Face of Chaos - SupplyChainBrain
“Artificial intelligence-based prescriptive analytics enable a network approach to planning in volatile times, says Joe Bellini, executive vice president of product management at OneNetwork.”
Main Pros and Cons of Using the Milk Run in Logistics - All Things Supply Chain
“Ever wondered how you could cut down on transportation costs and at the same time improve customer service? Milk run logistics might be your answer.”
3PL & 4PL providers 'have critical role to play' - Capgemini - Supply Chain Digital
“Capgemini Supply Director Ashley Naughton offers insight into the pivotal role logistics has to play in the future of supply chain.”
Shared goals seal Nashville fleet deals - Fleet Owner
“While Christenson Transportation is set on growing its business by acquiring other trucking companies, the company's president is willing to pass on opportunities that only look good on paper.”
Leadership 🏆
In Person: Joe Colletti of DMW&H | DC Velocity
“In our continuing series of discussions with top supply-chain company executives, Joe Colletti discusses the effect of the e-commerce explosion on DC design and the challenges posed by supply chain bottlenecks.”
Five Questions: Taki Darakos - TT News
“Taki Darakos joined Pitt Ohio in January 2019 as the vice president of vehicle maintenance and fleet services.”
“This is a distinct skill. Something can be dependable without being extraordinary, rare or even a good value.”
Ports 🚢
Overcoming the obstacles at U.S. ports - Supply Chain Management Review
“It’s a task that demands an emphasis on long-term and strategic initiatives. “
Tech 📟
How Technology Improves Last-Mile Delivery - EPS News
“In today’s logistics industry, last-mile delivery matters more than arguably any other stage.”
Fuel ⛽️
Fuel prices inching down as oil prices fall - The Trucker
“U.S. fuel prices are seeing moderate declines for the first time in weeks.”
Fuel Tech ♻️
New diesels can cut emissions faster than electric trucks, study says - Land Line
“Converting to modern diesel engines is a quicker and less costly way to lower harmful emissions than adopting of electric vehicles, especially if now-available near-zero-emissions diesels run on renewable biofuels, says a study commissioned by a diesel advocacy group.”
Repair & Maintenance 🧰
Finding and retaining technicians: Understanding the supply and demand - Fleet Maintenance
“In Part 1 of our in-depth guide to recruiting and retaining commercial vehicle technicians, we analyze the supply of and demand for entry-level techs.”
Electric Vehicles 🔋
General Motors wants to fill the ‘EV knowledge gap’ with a free online chat tool for all - CNBC
“GM is launching “EV Live,” a free online platform that connects consumers who have questions about electric vehicles with an expert who can answer them.”
Unions 🪧
To preserve jobs, UAW head says battery plants must be union - AP News
“If the United Auto Workers union can’t organize workers at new electric-vehicle battery factories that will supply Detroit’s three automakers, the union’s future would be in serious doubt.”
Infrastructure ⚙️
Let’s build for the future | DC Velocity
“Road repairs are happening everywhere. Let’s use some of that infrastructure money to invest in smarter roads.”
Industry Forecast 📊
Gloomy outlook for container freight market as rates continue to fall - The Loadstar
“A deteriorating picture of the container freight market outlook is painted by the Maritime Strategies International’s (MSI) July Horizon report.”
Global last-mile delivery market to reach $123 billion by 2030 | DC Velocity
“Market size to triple from 2021, with Asia-Pacific leading the way in growth of last-mile delivery services, report shows.”
FTR Trucking Conditions Index falls back into negative territory - Logistics Managemnet
“For May, the most recent month for which data is available, the TCI came in at -0.3, on the heels of a 3.21 April reading.”
Air, rail, sea and road freight logistics news round-up - Supply Chain Digital
“Maersk withdraws from ICS over net zero progress; Deutsche Bahn to transport trapped Ukrainian grain; Biden forms panel to avert US rail freight strike.”
Trade & Border Issues 🗺
Australia & New Zealand Get Slammed By Container Rates - G Captain
“Long-term rates for shipping containers to New Zealand and Australia have soared in the past few years, and are now at record highs.”
Are Your Exports Affected by Sanctions on Russia? It’s Not Always Easy to Tell - SupplyChainBrain
“Sanctions imposed on Russia for its invasion of Ukraine are having an undeniable impact on global supply chains, but individual companies might have a hard time determining precisely how they’re affected.”
FEATURE: Reuters Tracks Russian Ships Stealing Ukrainian Grain - G Captain
“Late last month, a Russian-flagged cargo ship carrying corn pulled into the Turkish port of Izmir on the Aegean Sea.”
Owner-Operators 🚛
Port of Oakland is feeling the impact of AB5-related protests - Logistics Management
“The ongoing trucker protests in recent days over the implementation of AB5 are taking a toll on operations at the Port of Oakland.”
Port of Oakland scuffle leads to dropped trailer - Back the Truck Up
“Although I fully support the protest movement at the Port of Oakland by the drivers forced to change their job classifications by AB5, I will never condone violence in any form.”
How does the freight market really look right now for owner-operators? - FreightWaves
“If you’re an owner-operator, chances are 2021 felt pretty good to you.”
Driver Issues 🚚
Alabama Sees Success With Trucking Workforce Initiatives - TT News
“Creating a coordinated campaign involving trucking company titans and state education officials to foster workforce development in the trucking industry is paying off for the Alabama Trucking Association.”
Safety 🦺
No steering wheels? No thank you! - Land Line
“Ford and General Motors are asking the National Highway Traffic Safety Administration to allow up to 5,000 Level 4 vehicles without steering wheels to operate on the nation’s interstates.”
Leases & Loans 💰
The 8 best options for small business funding - CNBC
“For many small businesses, access to funding can be a matter of life and death.”
Artificial Intelligence 🤖
A West Coast port worker union is fighting robots. The stakes for the supply chain are high - CNBC
“In 1993, the Dutch port complex in Rotterdam became the first to introduce machine automation and has since become the model for a fully automated terminal, most of which have emerged since the 2010s in Asia and Europe.”
Quote of the Day:
“Life isn’t about finding yourself. Life is about creating yourself.”
― George Bernard Shaw, Irish playwright
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for July 31, 2025, from iLevel Logistics Inc.