AskWaves explains how the gap between air and ocean freight transport has narrowed during the pandemic. From the report: The air rate from China to the U.S. West Coast during the first week of November was about $14 per kilogram, double what it was a year ago, according to the Freightos Air Index. Shipping by air to the East Coast cost about $13, also twice as much as in 2020. [...] Air is usually the mode of last resort, limited to perishables and high-value goods with margins that can cover the extra expense. Incredibly, airfreight has become a bargain relative to ocean shipping for many companies, especially when measured against the cost of stockouts and lost sales. That's what happens when supply chains are turned upside down by constant chaos.

Ocean shipping demand to North America is up more than 20% compared to 2019. Carriers and ports have been overwhelmed, resulting in huge delays and port backlogs demonstrated most clearly by the 80 container vessels waiting last week for a berth at the ports of Los Angeles and Long Beach. Glitches in the system -- from COVID outbreaks to accidents -- created more havoc because the system is so stretched. Spot tariffs -- for immediate transactions not subject to more favorable long-term contracts -- can cost upwards of $20,000 for a forty-foot equivalent unit from China to the West Coast when a host of premiums and surcharges are included. That's 10 times greater than pre-pandemic rates and doesn't even include domestic transportation to move a shipment across the country.

Many companies, especially retailers worried about product shortages for big holiday shopping events, are trying to make up for lost time by shifting goods that normally move by ocean to air. The decision to convert ocean freight to air is easier for shippers because air transport is much more cost-competitive than it has ever been. Pre-pandemic, the average price to move air cargo was about 13 to 15 times higher than ocean, but now it is only three to five times more expensive, according to the International Air Transport Association and industry experts.

An anonymous reader quotes a report from Vox: Lemonade, the fast-growing, machine learning-powered insurance app, put out a real lemon of a Twitter thread on Monday with a proud declaration that its AI analyzes videos of customers when determining if their claims are fraudulent. The company has been trying to explain itself and its business model -- and fend off serious accusations of bias, discrimination, and general creepiness -- ever since. [...] Over a series of seven tweets, Lemonade claimed that it gathers more than 1,600 "data points" about its users -- "100X more data than traditional insurance carriers," the company claimed. The thread didn't say what those data points are or how and when they're collected, simply that they produce "nuanced profiles" and "remarkably predictive insights" which help Lemonade determine, in apparently granular detail, its customers' "level of risk." Lemonade then provided an example of how its AI "carefully analyzes" videos that it asks customers making claims to send in "for signs of fraud," including "non-verbal cues." Traditional insurers are unable to use video this way, Lemonade said, crediting its AI for helping it improve its loss ratios: that is, taking in more in premiums than it had to pay out in claims. Lemonade used to pay out a lot more than it took in, which the company said was "friggin terrible." Now, the thread said, it takes in more than it pays out.

The Twitter thread made the rounds to a horrified and growing audience, drawing the requisite comparisons to the dystopian tech television series Black Mirror and prompting people to ask if their claims would be denied because of the color of their skin, or if Lemonade's claims bot, "AI Jim," decided that they looked like they were lying. What, many wondered, did Lemonade mean by "non-verbal cues?" Threats to cancel policies (and screenshot evidence from people who did cancel) mounted. By Wednesday, the company walked back its claims, deleting the thread and replacing it with a new Twitter thread and blog post. You know you've really messed up when your company's apology Twitter thread includes the word "phrenology." "The Twitter thread was poorly worded, and as you note, it alarmed people on Twitter and sparked a debate spreading falsehoods," a spokesperson for Lemonade told Recode. "Our users aren't treated differently based on their appearance, disability, or any other personal characteristic, and AI has not been and will not be used to auto-reject claims."

The company also maintains that it doesn't profit from denying claims and that it takes a flat fee from customer premiums and uses the rest to pay claims. Anything left over goes to charity (the company says it donated $1.13 million in 2020). But this model assumes that the customer is paying more in premiums than what they're asking for in claims. So, what's really going on here? According to Lemonade, the claim videos customers have to send are merely to let them explain their claims in their own words, and the "non-verbal cues" are facial recognition technology used to make sure one person isn't making claims under multiple identities. Any potential fraud, the company says, is flagged for a human to review and make the decision to accept or deny the claim. AI Jim doesn't deny claims. The blog post also didn't address -- nor did the company answer Recode's questions about -- how Lemonade's AI and its many data points are used in other parts of the insurance process, like determining premiums or if someone is too risky to insure at all.

The CEOs of Uber and Just Eat Takeaway on Wednesday became engaged in a public spat after Uber announced it is planning to launch in Germany -- a market that is currently dominated by Just Eat Takeaway. From a report: Uber Eats will launch in Berlin in the next few weeks and potentially expand into other German cities in the coming months. The news was first reported by The Financial Times and confirmed to CNBC. Just Eat Takeaway CEO Jitse Groen accused Uber CEO Dara Khosrowshahi of trying to "depress" his firm's share price on Twitter on Wednesday. Shares of Just Eat Takeaway closed down almost 3%. Khosrowshahi responded: "Advice: pay a little less attention to your short term stock price and more attention to your Tech and Ops." Shortly thereafter, Groen replied: "If I may ... start paying taxes, minimum wage and social security premiums before giving a founder advice on how he should run his business."

KindMind shares a report from The Register: Toyota has expanded its collaboration with Amazon Web Services in ways that will see many of its models upload performance data into the Amazonian cloud to expand the services the auto-maker offers to drivers and fleet owners. [...] Toyota reckons the data could turn into "new contextual services such as car share, rideshare, full-service lease, and new corporate and consumer services such as proactive vehicle maintenance notifications and driving behavior-based insurance."

The two companies say their joint efforts "will help build a foundation for streamlined and secure data sharing throughout the company and accelerate its move toward CASE (Connected, Autonomous/Automated, Shared and Electric) mobility technologies." Neither party has specified just which bits of the AWS cloud Toyota will take for a spin but it seems sensible to suggest the auto-maker is going to need lots of storage and analytics capabilities, making AWS S3 and Kinesis likely candidates for a test drive. Whatever Toyota uses, prepare for privacy ponderings because while cheaper car insurance sounds lovely, having an insurer source driving data from a manufacturer has plenty of potential pitfalls.

An anonymous reader quotes SFGate: The statewide order to shelter in place that went into effect on March 20 had a beneficial side-effect: Accidents, injuries and fatalities on California roadways were cut in half, saving the state and residents of California $1 billion, according to a UC Davis study.

In the 22 days after the shelter-in-place order (March 21-April 11), there was an average of 450 vehicle collisions per day throughout the state, according to the study conducted by the Road Ecology Center at UC Davis. During the same period in 2019, there were 1,128 collisions per day. In the 22 days prior to sheltering in place, there were 1,056 accidents per day...

"The reduction in numbers of all collisions, injury, and fatal collision was equivalent to a $40 million/day savings in costs and about $1 billion in savings since the Governor's order went into effect," the study concluded. The figures were calculated using Federal Highway Administration data, which includes savings from "property damage, treatment of injuries, lost time at work, emergency responses, insurance claims, and the equivalent cost of a life."
California has ordered some insurance companies to refund premiums paid in March and April for car accidents.

The Entertainment Software Rating Board (ESRB), which is the organization that rates the content of video games, announced a new label today to indicate that a game will offer in-game purchases of loot boxes or similar types of items that provide a player with randomized rewards. The Verge reports: "This new Interactive Element, In-Game Purchases (Includes Random Items), will be assigned to any game that contains in-game offers to purchase digital goods or premiums with real world currency (or with virtual coins or other forms of in-game currency that can be purchased with real world currency) for which the player doesn't know prior to purchase the specific digital goods or premiums they will be receiving (e.g., loot boxes, item packs, mystery awards)," according to the ESRB. The label will be applied to "loot boxes, gacha games, item or card packs, prize wheels, treasure chests, and more," the organization said.

The new label will sit below the game's content rating, as seen in the photo above. The ESRB originally introduced the "in-game purchases" label in February 2018, but that label was broad enough that it could be applied to any game that offered any sort of buyable digital good, including non-randomized items like subscriptions, season passes, or upgrades to disable ads.

Insurers are supposed to price based on risk, but Allstate's algorithm put a thumb on the scale. From a report: Seven years ago, Allstate Corporation told Maryland regulators it was time to update its auto insurance rates. The insurer said its new, sophisticated risk analysis showed it was charging nearly all of its 93,000 Maryland customers outdated premiums. Some of the old rates were off by miles. One 36-year-old man from Prince George's County, Md., who Allstate said in public records should have been paying $3,750 every six months, was instead being charged twice that, more than $7,500. Other customers were paying hundreds or thousands of dollars less than they should have been, based on Allstate's new calculation of the risk that they would file a claim. Rather than apply the new rates all at once, Allstate asked the Maryland Insurance Administration for permission to run each policy through an advanced algorithm containing dozens of variables that would adjust it in the general direction of the new risk model. Allstate said the goal of this new customer "retention model," which it was rolling out across the country, was to limit policy cancellations from sticker shock.

After questions from regulators, the insurer submitted thousands of pages of documentation on the price changes -- including data showing how they would affect each individual customer, a rare public window into details of its auto insurance pricing that have otherwise been kept behind a wall of privacy, labeled a trade secret. When The Markup and Consumer Reports conducted a statistical analysis of the Maryland documents, we found that, despite the purported complexity of Allstate's price-adjustment algorithm, it was actually simple: It resulted in a suckers list of Maryland customers who were big spenders and would squeeze more money out of them than others. Customers who were already paying the highest premiums, of about $1,900 or more every six months, and were due an increase would have borne price hikes of up to 20 percent. But drivers with cheaper policies, who deserved price jumps that were just as big, would be charged a maximum increase of only 5 percent. Customers in the 20 percent group were more likely to be middle-aged.

schwit1 shared this thought-provoking article from Fast Company: Many Westerners are disturbed by what they read about China's social credit system. But such systems, it turns out, are not unique to China. A parallel system is developing in the United States, in part as the result of Silicon Valley and technology-industry user policies, and in part by surveillance of social media activity by private companies. Here are some of the elements of America's growing social credit system.

- The New York State Department of Financial Services announced earlier this year that life insurance companies can base premiums on what they find in your social media posts...

- Airbnb can disable your account for life for any reason it chooses, and it reserves the right to not tell you the reason...

- You can be banned from communications apps, too. For example, you can be banned on WhatsApp if too many other users block you. You can also get banned for sending spam, threatening messages, trying to hack or reverse-engineer the WhatsApp app, or using the service with an unauthorized app...

The most disturbing attribute of a social credit system is not that it's invasive, but that it's extralegal. Crimes are punished outside the legal system, which means no presumption of innocence, no legal representation, no judge, no jury, and often no appeal. In other words, it's an alternative legal system where the accused have fewer rights. Social credit systems are an end-run around the pesky complications of the legal system. Unlike China's government policy, the social credit system emerging in the U.S. is enforced by private companies. If the public objects to how these laws are enforced, it can't elect new rule-makers...

If current trends hold, it's possible that in the future a majority of misdemeanors and even some felonies will be punished not by Washington, D.C., but by Silicon Valley. It's a slippery slope away from democracy and toward corporatocracy. In other words, in the future, law enforcement may be determined less by the Constitution and legal code, and more by end-user license agreements.

Startups are demonstrating "sensor technology that watches and analyzes drivers, passengers and objects in cars" reports Reuters -- a technology that "will mean enhanced safety in the short-term, and revenue opportunities in the future."

SonicSpike shares their report: Whether by generating alerts about drowsiness, unfastened seat belts or wallets left in the backseat, the emerging technology aims not only to cut back on distracted driving and other undesirable behavior, but eventually help automakers and ride-hailing companies make money from data generated inside the vehicle... Data from the cameras is analyzed with image recognition software to determine whether a driver is looking at his cellphone or the dashboard, turned away, or getting sleepy, to cite a few examples... European car safety rating program Euro NCAP has proposed that cars with driver monitoring for 2020 should earn higher ratings...

But automakers are more excited by the revenue possibilities when vehicle-generated data creates a more customized experience for riders, generating higher premiums, and lucrative tie-ins with third parties, such as retailers. "The reason (the camera) is going to sweep across the cabin is not because of distraction ... but because of all the side benefits," said Mike Ramsey, Gartner's automotive research director. "I promise you that companies that are trying to monetize data from the connected car are investigating ways to use eye-tracking technology...." Carmakers could gather anonymized data and sell it. A billboard advertiser might be eager to know how many commuters look at his sign, Ramsey said. Tracking the gaze of a passenger toward a store or restaurant could, fused with mapping and other software, result in a discount offered to that person.
The Cadillac CT6 already has interior-facing cameras, Reuters reports, while Audi and Tesla "have developed systems but they are not currently activated." And this year Mazda, Subaru and Byton plan to introduce cameras that watch for inattentive drivers.

But where will it end? One company's product combines five 2D cameras with AI technology to provide "in-vehicle scene understanding" which includes each passenger's height, weight, gender and posture. And while low on specifics, Reuters reports that several companies that sell driver-watching technologies "have already signed undisclosed deals for production year 2020 and beyond."

An anonymous reader quotes a report from VentureBeat: John Hancock, one of the oldest and largest North American life insurers, will stop underwriting traditional life insurance and instead sell only interactive policies that track fitness and health data through wearable devices and smartphones, the company said on Wednesday. The move by the 156-year-old insurer, owned by Canada's Manulife Financial, marks a major shift for the company, which unveiled its first interactive life insurance policy in 2015. It is now applying the model across all of its life coverage. Policyholders score premium discounts for hitting exercise targets tracked on wearable devices such as a Fitbit or Apple Watch and get gift cards for retail stores and other perks by logging their workouts and healthy food purchases in an app. In theory, everybody wins, as policyholders are incentivized to adopt healthy habits and insurance companies collect more premiums and pay less in claims if customers live longer.

"Android phone makers are 'rushing' to implement fingerprint sensors under the display for upcoming handsets," reports 9to5Mac, citing a new report from Digitimes. "Android manufacturers have decided that recreating the 3D facial recognition used by iPhone X is simply too costly to include, and are instead focusing on implementing Qualcomm's ultrasonic fingerprint scanners." From the report: The report says that including an Infrared depth-sensing facial recognition system like the iPhone X is simply too expensive for Android smartphones to offer, which cannot command the same price premiums as Apple's iPhones. This is a combination of hardware and software development costs. Digitimes claims the cost of the TrueDepth 3D sensors in iPhone X peaked at $60 per unit, an incredibly high proportion of the overall phone cost if accurate. Android makers are also worried about possible patent infringement from adopting Infrared dot projector systems. Instead, they have turned to in-display fingerprint sensors as their next-generation of device authentication. This depends on using Qualcomm technology for ultrasonic-based fingerprint scanners, which can sit below the cover glass and work even if fingers are wet or greasy.

The Entertainment Software Rating Board will begin labeling video games that contain in-game purchases, a response to lawmakers who have noticed the outcry over so-called loot crate systems and have signaled a willingness to legislate them. From a report: The labeling will "be applied to games with in-game offers to purchase digital goods or premiums with real world currency," the ESRB said in a news release this morning, "including but not limited to bonus levels, skins, surprise items (such as item packs, loot boxes, mystery awards), music, virtual coins and other forms of in-game currency, subscriptions, season passes and upgrades (e.g., to disable ads)." The label will appear separate from the familiar ESRB rating label (T-for-Teen, M-for-Mature, etc.) and not inside it. Additionally, the ESRB has begun an awareness campaign meant to highlight the controls available to parents whose households have a video game console.

One of Britain's biggest car insurers has admitted increasing premiums for drivers who apply using a Hotmail account. From a report: Motorists seeking cover from Admiral could be charged $45 extra if they use certain email addresses. The insurer said some domain names were "associated with more accidents" than others, raising applicants' risk profile. Figures from the Association of British Insurers to be published today show that the cost of car insurance has increased by more than a quarter over the past three years. Admiral said that hundreds of factors were used by underwriters in setting car insurance, with riskier motorists paying more. Issues included the age of a driver and their postcode.

Britain's largest auto insurance company Direct Line is testing out an idea to let Tesla owners receive a 5% discount for switching on the car's autopilot system, seeking to encourage use of a system it hopes will cut down on accidents. Reuters reports: The move - confirmed by company representatives in response to Reuters' questions - is Tesla's only tie-up in the UK and comes at a time when the company is trying to convince insurers that its internet-connected vehicles are statistically safer. Direct Line said it was too early to say whether the use of the autopilot system produced a safety record that justified lower premiums. It said it was charging less to encourage use of the system and aid research.

"Crash rates across all Tesla models have fallen by 40 percent since the introduction of the autopilot system ... However, when owners seek to insure their Tesla vehicles, this is not reflected in the pricing of premiums," Daniel Pearce, Financial Analyst at GlobalData, said. Direct Line, which is enjoying soaring motor insurance prices in Britain, said it sets premiums for Tesla drivers based on the risk they present, including who is driving, their age, driving experience and claim history.

DMJC writes: George Oldziey, the music composer from Wing Commander 3 and 4, is running a Kickstarter campaign to re-orchestrate the music from the venerable series. The Kickstarter is in its final week and has approximately $2000 left to go before it reaches it's goal.
Oldziey shares some history on his web site: In 2014 I launched a Kickstarter campaign to document the music I created for the Wing Commander games in the way I had originally imagined it: for full orchestra and chorus. 588 generous supporters helped me reach my goal! In late 2014 I traveled to Bratislava, Slovakia, where the 95-piece Slovak National Symphony Orchestra and the 40-voice Lucina Chorus recorded this music under my supervision.
But last November -- and again in June -- Oldziey unsuccessfully tried raising funds on Kickstarter to record more of his Wing Commander music with a full orchestra. So this month's campaign sets a more modest goal of raising $15,000 "as a foundation and springboard from which to build with a more open ended crowdfunding campaign." It'll fund the creation of digital MIDI tracks for the new orchestral music plus a recording of the "jazzy bar music" from Wing Commander 3 (which will both be released as digital downloads and on CD). "Future campaign(s) will tackle the goal of getting a live orchestra to record everything..." Oldziey writes, adding this campaign "builds an exciting foundation to build on -- with some cool music to enjoy in the mean time!"

Two people have already pledged $600 to claim one of five high-end premiums in which George composes one minute of unique music just for them, and two more pledged $300 to attend the "jazzy bar music" recording session in Austin, Texas.

An anonymous reader writes: "National insurer AAA is raising its prices for Tesla's Model S and Model X, citing higher-than-average claim rates and repair costs for the two cars," reports The Verge. "According to a report from Automotive News, AAA said it could raise its premiums by as much as 30 percent for the vehicles. Other large insurers including State Farm and Geico told the publication they couldn't say whether or not they would also increase prices, but noted that data about claim frequency is always used to calculate insurance premiums." Musk claims that AAA doesn't know what they are doing, but fails to be specific as to what is incorrect about their data or its usage. [The company says the AAA has made its decision based on faulty information from the Highway Loss Data Institute.]

"If you're an employee under the heel of a giant corporation you should probably be terrified by the vision of the future of connected gadgets that Microsoft just revealed at its Build developer conference here in Seattle," warns Gizmodo. Slashdot reader dryriver writes: Gizmodo reports on a Microsoft Workplace Monitoring demo where CCTV cameras watch a workplace -- like a construction site -- on 24/7 basis, and AI algorithms constantly oversee and evaluate what is happening in that workplace. The system can track where employees are, where physical equipment and tools are at what time, who does what at what time in this workplace and apparently use Cloud-based AI of some sort to evaluate what is happening in the workplace being monitored. Spotting employees misbehaving, breaking workplace rules or putting themselves and expensive equipment at risk may be the intended "value proposition" this system brings to the workplace. Another aspect may be reducing insurance premiums employers pay by creating a strict, highly monitored work environment. But the system is also very Big Brother -- an AI is monitoring people and equipment in a workplace in realtime at all times, and all the data ends up being processed in the Microsoft Cloud.
Gizmodo gave their article the title, "Microsoft's Latest Workplace Tech Demos Creep Me Out."

Many Slashdot readers know Bryan Lunduke as the creator of the humorous "Linux Sucks" presentations at the annual Southern California Linux Exposition. He's now also a member of the OpenSUSE project board and an all-around open source guy. (In September, he released every one of his books, videos and comics under a Creative Commons license, while his Patreon page offers a tip jar and premiums for monthly patrons). But now he's also got a new "daily computing/nerd show" on YouTube, and last week -- using nothing but free software -- he interviewed the 64-year-old founder of the Free Software Foundation, Richard Stallman. "We talk about everything from the W3C's stance on DRM to opinions on the movie Galaxy Quest," Lunduke explains in the show's notes.

Click through to read some of the highlights.

tedlistens quotes a report from Fast Company: Insurance startup Lemonade won itself headlines in January with the boast that it had successfully approved a claim in just three seconds. In that time, Lemonade's software had run 18 anti-fraud algorithms and sent a payment to the lucky customer's bank account -- a process that would have taken a traditional property and casualty insurer days, if not weeks. But it's what happened before Lemonade's artificial intelligence kicked into gear that makes the renegade insurer so potentially disruptive to this trillion-dollar industry, for which premiums alone comprise 7% of U.S. GDP. The customer, Brooklyn educator Brandon Pham, opened Lemonade's mobile app, signed an "honesty pledge" to attest to the truth of his claim, and then recorded a short video explaining that his Canada Goose parka, worth nearly $1,000, had been stolen. That deceptively simple claims process is the byproduct of academic research on psychology and behavioral economics conducted by Dan Arielyblog, one of the field's most prominent voices and Lemonade's chief behavioral officer. "There's a lot of science about when people behave and misbehave that has not been put to use," says Lemonade cofounder and CEO Daniel Schreiber. Lemonade is even applying behavioral science to itself, publishing unusually transparent blog posts that include data on customer growth, bank account balances, and more.

Solar power is now cheaper than coal in some parts of the world. In less than a decade, it's likely to be the lowest-cost option almost everywhere, reports Bloomberg. From the article: In 2016, countries from Chile to the United Arab Emirates broke records with deals to generate electricity from sunshine for less than 3 cents a kilowatt-hour, half the average global cost of coal power. Now, Saudi Arabia, Jordan and Mexico are planning auctions and tenders for this year, aiming to drop prices even further. Taking advantage: Companies such as Italy's Enel SpA and Dublin's Mainstream Renewable Power, who gained experienced in Europe and now seek new markets abroad as subsidies dry up at home. Since 2009, solar prices are down 62 percent, with every part of the supply chain trimming costs. That's help cut risk premiums on bank loans, and pushed manufacturing capacity to record levels. By 2025, solar may be cheaper than using coal on average globally, according to Bloomberg New Energy Finance. The solar supply chain is experiencing "a Wal-Mart effect" from higher volumes and lower margins, according to Sami Khoreibi, founder and chief executive officer of Enviromena Power Systems. The speed at which the price of solar will drop below coal varies in each country. Places that import coal or tax polluters with a carbon price, such as Europe and Brazil, will see a crossover in the 2020s, if not before. Countries with large domestic coal reserves such as India and China will probably take longer.