Skip to content
Search AI Powered

Latest Stories

fastlane

turkeys in the straw

It probably shouldn't come as a surprise to anyone that the "strawman" proposals floated by the Bureau of Customs and Border Protection in January were roundly derided as, well, turkeys.

It probably shouldn't come as a surprise to anyone that the "strawman" proposals floated by the Bureau of Customs and Border Protection in January were roundly derided as, well, turkeys. The proposals, aimed at tightening security over imports and exports, intended to accomplish with truck, rail and air operations what Customs did with ocean operations a year earlier. Though it apparently slipped the agency's memory, the ocean rule was derided at the time as "difficult" and "draconian." (That rule, which took effect in December, mandated that importers provide detailed cargo manifests to the agency 24 hours before the freight was loaded on to ships bound for U.S. ports, rather than within two days after the ship's departure as they had in the past.)

It follows that when Customs introduced its strawman proposal for the other modes, the reaction was both swift and harsh, demonstrating how fragile things made of straw can be. Virtually everyone in the import and export community felt the requirements were too broad and threatened to disrupt efficient supply chains. And they didn't hesitate to say so.


Their reaction was understandable. Ocean freight doesn't tend to be time sensitive, but with express air and truck service, for example, minutes count. So it's no surprise that strawman proposals calling for 12 hour' notice in advance of most foreign lading and eight hours in advance of express shipments drew fire. Truckers, for example, pointed out that in the case of just-in-time operations, parts may not even be ordered four hours in advance of when they're needed on the factory floor, let alone 12.Others were quick to lodge complaints about mandates that would force carriers, brokers, importers and exporters to learn unfamiliar automated systems.

Customs did listen and modified its proposals somewhat. Nevertheless, many import and export firms still are not pleased with the new regulations, which would "require advance information in electronic format on cargo being sent to and from the United States by land, air or sea." More than 125 statements were filed, many suggesting that Customs had deliberately underestimated the financial implications in order to keep the impact figure below the $100 million that would trigger a review by the White House Office of Management and Budget. FedEx has been a particularly vocal opponent; the company has publicly stated that its costs alone would be a "significant portion" of the $100 million. Other objectors include the American Trucking Associations, Wal- Mart, General Motors, the Department of Defense and Japan. Grocery manufacturers are particularly concerned because the FDA is proposing similar, but separate, rules.

Still, the flashpoint issue seems to be the requirement that companies submit the data electronically. New technologies will be necessary to accumulate, manage and report shipment information , and many of the affected parties are still struggling with the technology basics.

Homeland Security Secretary Tom Ridge has defended the new rules, saying," These security measures … are important to the protection of America and the American people. Advance cargo information is essential not only to preventing instruments of terrorism from being shipped into this country, but also to speed the flow of legitimate cargo across our borders."

Nobody denies the need for security regulations (though I've often wondered whether someone who's attempting to smuggle weapons and other contraband into the country would really list them on the shipment manifest). The larger question is how disruptive the rules will be. That will depend on exactly what rules finally become law, how much dislocation is needed for compliance and the stringency of enforcement. Stay tuned.

The Latest

More Stories

power outage map after hurricane

Southeast region still hindered by hurricane power outages

States across the Southeast woke up today to find that the immediate weather impacts from Hurricane Helene are done, but the impacts to people, businesses, and the supply chain continue to be a major headache, according to Everstream Analytics.

The primary problem is the collection of massive power outages caused by the storm’s punishing winds and rainfall, now affecting some 2 million customers across the Southeast region of the U.S.

Keep ReadingShow less

Featured

Survey: In-store shopping sentiment up 21%

Survey: In-store shopping sentiment up 21%

E-commerce activity remains robust, but a growing number of consumers are reintegrating physical stores into their shopping journeys in 2024, emphasizing the need for retailers to focus on omnichannel business strategies. That’s according to an e-commerce study from Ryder System, Inc., released this week.

Ryder surveyed more than 1,300 consumers for its 2024 E-Commerce Consumer Study and found that 61% of consumers shop in-store “because they enjoy the experience,” a 21% increase compared to results from Ryder’s 2023 survey on the same subject. The current survey also found that 35% shop in-store because they don’t want to wait for online orders in the mail (up 4% from last year), and 15% say they shop in-store to avoid package theft (up 8% from last year).

Keep ReadingShow less
containers stacked in a yard

Reinke moves from TIA to IANA in top office

Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.

Reinke will take her new job upon the retirement of Joni Casey at the end of the year. Casey had announced in July that she would step down after 27 years at the helm of IANA.

Keep ReadingShow less
Dock strike: Shippers seek ways to minimize the damage

Dock strike: Shippers seek ways to minimize the damage

As the hours tick down toward a “seemingly imminent” strike by East Coast and Gulf Coast dockworkers, experts are warning that the impacts of that move would mushroom well-beyond the actual strike locations, causing prevalent shipping delays, container ship congestion, port congestion on West coast ports, and stranded freight.

However, a strike now seems “nearly unavoidable,” as no bargaining sessions are scheduled prior to the September 30 contract expiration between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) in their negotiations over wages and automation, according to the transportation law firm Scopelitis, Garvin, Light, Hanson & Feary.

Keep ReadingShow less
Wreaths Across America seeks carriers for December mission
Wreaths Across America

Wreaths Across America seeks carriers for December mission

National nonprofit Wreaths Across America (WAA) kicked off its 2024 season this week with a call for volunteers. The group, which honors U.S. military veterans through a range of civic outreach programs, is seeking trucking companies and professional drivers to help deliver wreaths to cemeteries across the country for its annual wreath-laying ceremony, December 14.

“Wreaths Across America relies on the transportation industry to move the mission. The Honor Fleet, composed of dedicated carriers, professional drivers, and other transportation partners, guarantees the delivery of millions of sponsored veterans’ wreaths to their destination each year,” Courtney George, WAA’s director of trucking and industry relations, said in a statement Tuesday. “Transportation partners benefit from driver retention and recruitment, employee engagement, positive brand exposure, and the opportunity to give back to their community’s veterans and military families.”

Keep ReadingShow less