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."
Leaders at American ports are cheering the latest round of federal infrastructure funding announced today, which will bring almost $580 million in Port Infrastructure Development Program (PIDP) awards, funding 31 projects in 15 states and one territory.
“Modernizing America’s port infrastructure is essential to strengthening the multimodal network that supports our nation's supply chain,” Maritime Administrator Ann Phillips said in a release. “Approximately 2.3 billion short tons of goods move through U.S. waterways each year, and the benefits of developing port infrastructure extend far beyond the maritime sector. This funding enhances the flow and capacity of goods moved, bolstering supply chain resilience across all transportation modes, and addressing the environmental and health impacts on port communities.”
Even as the new awardees begin the necessary paperwork, industry group the American Association of Port Authorities (AAPA) said it continues to urge Congress to continue funding PIDP at the full authorized amount and get shovels in the ground faster by passing the bipartisan Permitting Optimization for Responsible Transportation (PORT) Act, which slashes red tape, streamlines outdated permitting, and makes the process more efficient and predictable.
"Our nation's ports sincerely thank our bipartisan Congressional leaders, as well as the USDOT for making these critical awards possible," Cary Davis, AAPA President and CEO, said in a release. "Now comes the hard part. AAPA ports will continue working closely with our Federal Government partners to get the money deployed and shovels in the ground as soon as possible so we can complete these port infrastructure upgrades and realize the benefits to our nation's supply chain and people faster."
Supply chains are poised for accelerated adoption of mobile robots and drones as those technologies mature and companies focus on implementing artificial intelligence (AI) and automation across their logistics operations.
That’s according to data from Gartner’s Hype Cycle for Mobile Robots and Drones, released this week. The report shows that several mobile robotics technologies will mature over the next two to five years, and also identifies breakthrough and rising technologies set to have an impact further out.
Gartner’s Hype Cycle is a graphical depiction of a common pattern that arises with each new technology or innovation through five phases of maturity and adoption. Chief supply chain officers can use the research to find robotic solutions that meet their needs, according to Gartner.
Gartner, Inc.
The mobile robotic technologies set to mature over the next two to five years are: collaborative in-aisle picking robots, light-cargo delivery robots, autonomous mobile robots (AMRs) for transport, mobile robotic goods-to-person systems, and robotic cube storage systems.
“As organizations look to further improve logistic operations, support automation and augment humans in various jobs, supply chain leaders have turned to mobile robots to support their strategy,” Dwight Klappich, VP analyst and Gartner fellow with the Gartner Supply Chain practice, said in a statement announcing the findings. “Mobile robots are continuing to evolve, becoming more powerful and practical, thus paving the way for continued technology innovation.”
Technologies that are on the rise include autonomous data collection and inspection technologies, which are expected to deliver benefits over the next five to 10 years. These include solutions like indoor-flying drones, which utilize AI-enabled vision or RFID to help with time-consuming inventory management, inspection, and surveillance tasks. The technology can also alleviate safety concerns that arise in warehouses, such as workers counting inventory in hard-to-reach places.
“Automating labor-intensive tasks can provide notable benefits,” Klappich said. “With AI capabilities increasingly embedded in mobile robots and drones, the potential to function unaided and adapt to environments will make it possible to support a growing number of use cases.”
Humanoid robots—which resemble the human body in shape—are among the technologies in the breakthrough stage, meaning that they are expected to have a transformational effect on supply chains, but their mainstream adoption could take 10 years or more.
“For supply chains with high-volume and predictable processes, humanoid robots have the potential to enhance or supplement the supply chain workforce,” Klappich also said. “However, while the pace of innovation is encouraging, the industry is years away from general-purpose humanoid robots being used in more complex retail and industrial environments.”
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.
The Boston-based enterprise software vendor Board has acquired the California company Prevedere, a provider of predictive planning technology, saying the move will integrate internal performance metrics with external economic intelligence.
According to Board, the combined technologies will integrate millions of external data points—ranging from macroeconomic indicators to AI-driven predictive models—to help companies build predictive models for critical planning needs, cutting costs by reducing inventory excess and optimizing logistics in response to global trade dynamics.
That is particularly valuable in today’s rapidly changing markets, where companies face evolving customer preferences and economic shifts, the company said. “Our customers spend significant time analyzing internal data but often lack visibility into how external factors might impact their planning,” Jeff Casale, CEO of Board, said in a release. “By integrating Prevedere, we eliminate those blind spots, equipping executives with a complete view of their operating environment. This empowers them to respond dynamically to market changes and make informed decisions that drive competitive advantage.”