They both represent the interests of truck owners and managers. But when it comes to policy issues, two prominent trucking groups find common ground elusive.
Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.
Just because two organizations work in the same field doesn't mean they have to get along. Few seem to embrace that concept with more gusto than the American Trucking Associations and the Owner-Operator Independent Drivers Association.
Both groups, better known by their respective acronyms of ATA and OOIDA, are in the trucking business. Both represent the interests of owners and managers, though ATA's membership rolls include the largest companies, while OOIDA's members tend to be one-man operators who predominantly work under contract for larger trucking companies. But the two have repeatedly clashed over key public policy issues, and their disdain for each other's positions is hardly a private matter.
The latest set-to occurred in late January after G. Tommy Hodges, ATA's first vice chairman, asked Congress to enact a national speed limit of 65 miles per hour and to require that truck limiters be set at that speed for vehicles manufactured after 1992—both elements of what he termed the trucking industry's "environmental initiative." Hodges also called on lawmakers to raise to 97,000 pounds from 80,000 pounds the maximum gross vehicle weight limit for single-trailer units, and to authorize states to permit the operation of 33-foot twin trailers, which today are only in limited use in the Upper Great Plains region. (Virtually every state caps the length of twin trailers at 28 feet per trailer, limits that have been in place since 1991.)
Hodges had barely finished his testimony when OOIDA issued a statement accusing the ATA of "greenwashing" by cloaking proposals that would increase costs, eliminate competition, jeopardize safety, and line the pockets of big corporations in the mantle of environmentalism.
"Upping truck weights and mandating speed limiters in the name of sustainability is irresponsible and ridiculous," said Todd Spencer, OOIDA's blunt-spoken executive vice president, in the statement. Spencer said the industry would be better served by reducing the number of empty miles truckers have to drive, as well as the time and fuel spent waiting to load and unload their cargo. Combined, both cost truckers and consumers about $5.7 billion a year, he said.
In an interview, Spencer called the federal experience with speed limiters "disastrous," and said states should be responsible for establishing speed limits that are uniform for all vehicles and based on factors like weather patterns, infrastructure conditions, and driver behavior. He warned that ATA's call for widespread use of longer, heavier equipment would result in higher taxes and insurance costs, inflict further damage on an already highway system, and create safety problems as drivers struggle with rigs and trailers that are more challenging to operate.
ATA spokesman Clayton Boyce reiterated the group's position that longer and heavier truck-trailer combinations would make trucking operations more efficient and productive, thus reducing fuel usage and benefiting the environment. By removing thousands of trucks from the road, the industry would save more than 20 billion gallons of diesel fuel over 10 years and cut carbon emissions by more than 227 million tons over that time, ATA says.
Boyce said the equipment's use would be consistent with accepted highway and bridge design and meet the most stringent safety standards. He rejected as "specious" OOIDA's opposition to a nationwide speed limit and speed limiter setting, saying "speed limiting saves fuel no matter who is driving. It doesn't matter who the company is or who is behind the wheel."
You say yes, I say no
The fight over speed limits and bigger equipment represents just one area of disagreement between the two groups. There are plenty of others as well. For example, ATA backs a DOT proposal that requires truckers to equip their vehicles with electronic recorders if they are found to have a 10 percent or higher violation rate of the hours-of-service rule during each of two government compliance reviews conducted over two years. By contrast, OOIDA opposes the use of electronic recorders of any type to replace paper logs. The National Transportation Safety Board, for its part, believes on-board recorders should be mandated for the entire industry. (The DOT is expected to publish a rule on the issue by mid-year.)
In California, the ATA is aggressively fighting a plan by the Port of Los Angeles to phase out, over the next five years, owner-operators who provide drayage service at the port's terminals, shuttling goods between ports, intermodal rail ramps, and shipping docks. The port's so-called Clean Truck program requires a phased-in implementation of new or retrofitted low-emission tractors by Jan. 1, 2012, and mandates that by that time, all drivers be employees of port-approved carriers that own the tractors. The plan's critics argue it will force owner-operators and smaller truckers away from the port and create an acute shortage of draymen because most can ill afford to buy new tractors or retrofit existing ones.
ATA won a major victory March 20 when the U.S. Court of Appeals for the Ninth Circuit struck down the port's requirement that harbor truckers replace by year's end 20 percent of their owner-operators with employee drivers. The appellate court ruled the port's policy represented state or local regulation of interstate trucking and violated federal law. It remanded the case to the U.S. District Court in Los Angeles "for an appropriate preliminary injunction." ATA said in a statement that it was "extremely pleased" with the ruling.
OOIDA, which has remained silent on the issue even though owner-operators would be most affected by the port policy, was unavailable for comment when DC VELOCITY went to press. But in comments made several weeks prior to the March 20 ruling, Spencer said the ATA's arguments were trumped by the imperative of having a workable drayage model that is in compliance with clean air laws. "What ATA is doing is seeking to maintain the status quo, and that dog don't hunt," he said. OOIDA does not represent truckers who perform drayage at the nation's ports, although its membership includes truckers who operate to and from ports throughout the country, including Los Angeles.
ATA and OOIDA have also been at odds over an initiative to allow Mexico-based truckers to operate in U.S. commerce beyond designated border commercial zones. OOIDA bitterly opposed the initiative, saying such a move would potentially allow thousands of unsafe vehicles and unqualified drivers on U.S. roads. ATA supported the plan, saying it would reduce the time and expense of multiple handoffs of trailers and containers and, in the process, cut carbon emissions. ATA also pointed to government studies showing that the program would have no negative impact on U.S. highway safety. (Debate over the issue was effectively mooted after President Barack Obama signed into law the $410 billion omnibus spending bill, which ended congressional funding of an 18-month pilot program designed to give Mexican truckers full access to U.S. commerce. The Obama administration has said it will explore alternative measures for establishing a new cross-border trucking program with Mexico.)
The two groups are not at loggerheads over everything. Both favor an increase in fuel taxes to pay for infrastructure improvements so long as there are guarantees that the funds will not be diverted for non-highway use. Neither strongly opposed the federal government's new driver hours-of-service regulations prohibiting drivers from spending more than 11 consecutive hours behind the wheel and requiring at least 10 hours' rest between shifts. However, OOIDA was uncomfortable with language mandating that drivers work no more than 14 hours in a day, saying that doesn't give drivers sufficient time to rest between operating their routes and loading and unloading their cargo. ATA did not oppose that measure.
Frequent clashes
The culture gap between the groups can be traced to their roots. ATA is deeply tied to the federal policy apparatus; it has called the Washington, D.C., area home since its founding in 1933 and today sits in new headquarters in Arlington, Va., a Washington suburb. Its president and CEO, Bill Graves, grew up in a trucking family but has spent more than two decades in highprofile public sector posts. Graves joined ATA in 2003 after serving as two-term governor of his home state of Kansas. ATA has 37,000 members, mostly mid-sized to large truckers as well as big shippers like Wal-Mart Stores that operate private fleets.
OOIDA's roots are more hardscrabble. Its president, Jim Johnston, was a driver and an owner-operator until he was named president of the fledgling group in 1973. He is the only person to ever hold the post. OOIDA started life in an office trailer chained to a light pole at a truck stop in Grain Valley, Mo., near Kansas City. Today, OOIDA has 160,000 members, and it still calls Grain Valley home.
The key difference between the groups, according to Boyce, is the makeup of their respective constituencies. "ATA represents trucking companies," he says. "OOIDA represents individual drivers, all of whom choose not to be trucking company employees."
Has the failure to present a united front undermined the two groups' lobbying efforts? Not in Boyce's opinion.He says the many opposing views have little if any bearing on the trucking industry's relationship with Congress. Jim Berard, director of communications for the House Transportation and Infrastructure Committee, agrees, saying the frequent clashes actually benefit the industry's relationship with Congress rather than cause friction. "We get depth and insight into industry positions when different viewpoints are brought to the table," Berard says.
Spencer of OOIDA says ATA reflects the positions of large trucking interests, while OOIDA's stances represent those of small mom-andpop concerns that can't move regulatory and political mountains yet, in aggregate, move a large proportion of the nation's freight. "There is something to be said for having a presence in Washington. We've had an office there for several years," says Spencer. "But I don't know of any trucking companies that are headquartered in Washington, D.C."
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”