Railroad operator Norfolk Southern Corp. is defending itself against a federal report finding that its decision to vent and burn the toxic chemicals in smoldering hazmat tank cars after a derailment near East Palestine, Ohio, was “unnecessary.”
The report also found that the decision by the local incident commander three days later to conduct a “vent and burn” of the contents of the tank cars carrying vinyl chloride monomer was based on incomplete and misleading information provided by Norfolk Southern officials and contractors, and was not necessary to prevent a tank car failure, NTSB investigators said.
In addition, the original wreck became more severe in part because of Norfolk Southern’s continued use of DOT-111 tank cars to transport flammable liquids and other hazardous materials. The NTSB said that three DOT-111 cars were mechanically breached during the derailment, releasing flammable and combustible liquids that ignited. That fire led to the decision to conduct vent-and-burn action on five tank cars carrying vinyl chloride.
In response, the NTSB is calling for an accelerated phaseout of DOT-111 tank cars in hazmat service because of that model’s “unacceptable safety record.” Specifically, the DOT-111 tank car is being phased out of flammable liquids service because of its long record of inadequate mechanical and thermal crashworthiness and propensity to release lading in a derailment, the report found.
In additional safety recommendations, the report recommended changes to address:
Failure of wayside monitoring systems to diagnose a hot wheel bearing in time for mitigation to prevent a derailment.
Inadequate emergency response training for volunteer first responders.
Hazardous materials placards that burned away, preventing emergency responders from immediately identifying hazards.
A lack of accurate, timely and comprehensive information passed to local incident commanders and state officials.
In response, Atlanta-based Norfolk Southern said it had already taken action to enable the immediate availability of “train consist information” to first responders and encourage contractors to share information to make emergency response decisions. The company has also “substantially addressed” the Federal Railroad Administration (FRA) recommendations from its 2023 Safety Culture Assessment, and has since seen its mainline accident rate decline 38% last year to industry leading levels, the company said. In regard to the new findings, the railroad said, “We will move quickly to compare the NTSB's recommendations to our current protocols and will implement those that advance our safety culture.”
Likewise, rail industry group The Association of American Railroads (AAR) said it was investigating the NTSB’s new safety standards. “Among the recommendations, many of the NTSB findings align with positions the industry has long maintained, including the need to aggressively phase out DOT-111 tank cars from hazmat service and other tank car improvements. Following today’s hearing, railroads are reviewing the complete findings and recommendations to identify the potential need for additional research surrounding bearing performance or other joint industry efforts,” the AAR said in a release.
However, railroad workers union laid more responsibility at the feet of Norfolk Southern, saying, “The key point is last year’s tragic derailment wasn’t a case of error by a train crew, it was a series of errors made by railroad management.” More specifically, a key trigger of the derailment was precision scheduled railroading (PSR), an operating model that has encouraged railroads to boost profits by cutting their workforce by nearly a third over the past seven years, according to the Brotherhood of Locomotive Engineers and Trainmen (BLET). Under PSR, the largest railroads have also lengthened trains to as long as three miles from end-to-end, while reducing the number of thorough inspections of rail cars, the union said.
To correct those conditions, the union called for stricter safety regulations. “This report was about so much more than an overheated bearing,” BLET National President Eddie Hall said in an email. “Congress, federal regulators and state legislators can lessen the risk by passing long overdue rail safety reforms, including the Railway Safety Act. Further delay is not acceptable to locomotive engineers and other railroaders, and it shouldn’t be tolerated by the residents of the communities served by these railroads.”
Just 29% of supply chain organizations have the competitive characteristics they’ll need for future readiness, according to a Gartner survey released Tuesday. The survey focused on how organizations are preparing for future challenges and to keep their supply chains competitive.
Gartner surveyed 579 supply chain practitioners to determine the capabilities needed to manage the “future drivers of influence” on supply chains, which include artificial intelligence (AI) achievement and the ability to navigate new trade policies. According to the survey, the five competitive characteristics are: agility, resilience, regionalization, integrated ecosystems, and integrated enterprise strategy.
The survey analysis identified “leaders” among the respondents as supply chain organizations that have already developed at least three of the five competitive characteristics necessary to address the top five drivers of supply chain’s future.
Less than a third have met that threshold.
“Leaders shared a commitment to preparation through long-term, deliberate strategies, while non-leaders were more often focused on short-term priorities,” Pierfrancesco Manenti, vice president analyst in Gartner’s Supply Chain practice, said in a statement announcing the survey results.
“Most leaders have yet to invest in the most advanced technologies (e.g. real-time visibility, digital supply chain twin), but plan to do so in the next three-to-five years,” Manenti also said in the statement. “Leaders see technology as an enabler to their overall business strategies, while non-leaders more often invest in technology first, without having fully established their foundational capabilities.”
As part of the survey, respondents were asked to identify the future drivers of influence on supply chain performance over the next three to five years. The top five drivers are: achievement capability of AI (74%); the amount of new ESG regulations and trade policies being released (67%); geopolitical fight/transition for power (65%); control over data (62%); and talent scarcity (59%).
The analysis also identified four unique profiles of supply chain organizations, based on what their leaders deem as the most crucial capabilities for empowering their organizations over the next three to five years.
First, 54% of retailers are looking for ways to increase their financial recovery from returns. That’s because the cost to return a purchase averages 27% of the purchase price, which erases as much as 50% of the sales margin. But consumers have their own interests in mind: 76% of shoppers admit they’ve embellished or exaggerated the return reason to avoid a fee, a 39% increase from 2023 to 204.
Second, return experiences matter to consumers. A whopping 80% of shoppers stopped shopping at a retailer because of changes to the return policy—a 34% increase YoY.
Third, returns fraud and abuse is top-of-mind-for retailers, with wardrobing rising 38% in 2024. In fact, over two thirds (69%) of shoppers admit to wardrobing, which is the practice of buying an item for a specific reason or event and returning it after use. Shoppers also practice bracketing, or purchasing an item in a variety of colors or sizes and then returning all the unwanted options.
Fourth, returns come with a steep cost in terms of sustainability, with returns amounting to 8.4 billion pounds of landfill waste in 2023 alone.
“As returns have become an integral part of the shopper experience, retailers must balance meeting sky-high expectations with rising costs, environmental impact, and fraudulent behaviors,” Amena Ali, CEO of Optoro, said in the firm’s “2024 Returns Unwrapped” report. “By understanding shoppers’ behaviors and preferences around returns, retailers can create returns experiences that embrace their needs while driving deeper loyalty and protecting their bottom line.”
Facing an evolving supply chain landscape in 2025, companies are being forced to rethink their distribution strategies to cope with challenges like rising cost pressures, persistent labor shortages, and the complexities of managing SKU proliferation.
1. Optimize labor productivity and costs. Forward-thinking businesses are leveraging technology to get more done with fewer resources through approaches like slotting optimization, automation and robotics, and inventory visibility.
2. Maximize capacity with smart solutions. With e-commerce volumes rising, facilities need to handle more SKUs and orders without expanding their physical footprint. That can be achieved through high-density storage and dynamic throughput.
3. Streamline returns management. Returns are a growing challenge, thanks to the continued growth of e-commerce and the consumer practice of bracketing. Businesses can handle that with smarter reverse logistics processes like automated returns processing and reverse logistics visibility.
4. Accelerate order fulfillment with robotics. Robotic solutions are transforming the way orders are fulfilled, helping businesses meet customer expectations faster and more accurately than ever before by using autonomous mobile robots (AMRs and robotic picking.
5. Enhance end-of-line packaging. The final step in the supply chain is often the most visible to customers. So optimizing packaging processes can reduce costs, improve efficiency, and support sustainability goals through automated packaging systems and sustainability initiatives.
Geopolitical rivalries, alliances, and aspirations are rewiring the global economy—and the imposition of new tariffs on foreign imports by the U.S. will accelerate that process, according to an analysis by Boston Consulting Group (BCG).
Without a broad increase in tariffs, world trade in goods will keep growing at an average of 2.9% annually for the next eight years, the firm forecasts in its report, “Great Powers, Geopolitics, and the Future of Trade.” But the routes goods travel will change markedly as North America reduces its dependence on China and China builds up its links with the Global South, which is cementing its power in the global trade map.
“Global trade is set to top $29 trillion by 2033, but the routes these goods will travel is changing at a remarkable pace,” Aparna Bharadwaj, managing director and partner at BCG, said in a release. “Trade lanes were already shifting from historical patterns and looming US tariffs will accelerate this. Navigating these new dynamics will be critical for any global business.”
To understand those changes, BCG modeled the direct impact of the 60/25/20 scenario (60% tariff on Chinese goods, a 25% on goods from Canada and Mexico, and a 20% on imports from all other countries). The results show that the tariffs would add $640 billion to the cost of importing goods from the top ten U.S. import nations, based on 2023 levels, unless alternative sources or suppliers are found.
In terms of product categories imported by the U.S., the greatest impact would be on imported auto parts and automotive vehicles, which would primarily affect trade with Mexico, the EU, and Japan. Consumer electronics, electrical machinery, and fashion goods would be most affected by higher tariffs on Chinese goods. Specifically, the report forecasts that a 60% tariff rate would add $61 billion to cost of importing consumer electronics products from China into the U.S.
That strategy is described by RILA President Brian Dodge in a document titled “2025 Retail Public Policy Agenda,” which begins by describing leading retailers as “dynamic and multifaceted businesses that begin on Main Street and stretch across the world to bring high value and affordable consumer goods to American families.”
RILA says its policy priorities support that membership in four ways:
Investing in people. Retail is for everyone; the place for a first job, 2nd chance, third act, or a side hustle – the retail workforce represents the American workforce.
Ensuring a safe, sustainable future. RILA is working with lawmakers to help shape policies that protect our customers and meet expectations regarding environmental concerns.
Leading in the community. Retail is more than a store; we are an integral part of the fabric of our communities.
“As Congress and the Trump administration move forward to adopt policies that reduce regulatory burdens, create economic growth, and bring value to American families, understanding how such policies will impact retailers and the communities we serve is imperative,” Dodge said. “RILA and its member companies look forward to collaborating with policymakers to provide industry-specific insights and data to help shape any policies under consideration.”