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.
In the nation's capital, legislation is what lawmakers do. As one veteran and somewhat jaded Washington lobbyist once remarked, "To a politician, introducing legislation is like breathing."
If industry comments greeting the House Transportation and Infrastructure Committee's five-year, $260 billion bill to fund the federal highway, transit, and safety programs is any indication, someone on Capitol Hill has taken a very deep breath.
The legislation, unveiled late Tuesday, has been trumpeted by Rep. John L. Mica (R-Fla.), the committee chairman, as the largest transportation reform bill since Congress created the Interstate Highway System mid-way through the presidency of Dwight D. Eisenhower. For freight interests that have clamored for more congressional recognition of freight's role in driving the U.S. and global economies, the bill goes a long way toward meeting that objective.
The bill, the American Energy and Infrastructure Jobs Act, proposes the first major federal change to truck size and weight limits since the early 1980s. It also restores to the states the authority to regulate truck sizes and weights, which was stripped from them in 1991.
The bill gives states the power to allow single-trailer trucks with gross vehicle weights of up to 97,000 pounds to operate on their portion of the nation's interstate highway system. The current federal weight limit is set at 80,000 pounds, though six states—Maine, New Hampshire, New York, Vermont, Massachusetts, and Rhode Island—allow six-axle trucks weighing up to 97,000 pounds to travel on their interstate highways. About 40 states allow vehicles weighing more than 80,000 pounds to operate on state roads.
The legislation would require the heavier trucks to be equipped with a sixth axle to maintain braking and handling characteristics at the higher weights. In addition, participating states would have the authority to exclude heavier trucks from operating on any route or bridge.
The bill also permits 33-foot trailers to be operated in doubles formation, up from the current maximum of 28 feet per trailer operating as a tandem. In addition, it would allow truckers to operate nationwide with triple-trailers up to 120 feet long.
Hurdles ahead
There are potential roadblocks to moving the House bill forward. The bill will be debated on Thursday, with possible amendments to be introduced and addressed. It then must be reconciled with the version that emerges from the Senate, a process expected to be politically bruising. The traditional funding mechanism, the fuel tax on cars and trucks, will not be sufficient to pay for the entire program. What is expected to be a $50 billion shortfall will likely need to be made up from funds transferred from the general treasury.
Still, advocates say there is hope that after eight short-term extensions since the last transport law expired in September 2009, a multiyear reauthorization bill could go to President Obama's desk for signature during 2012. However, it is unlikely that the process could move swiftly enough to avoid a ninth extension after the current one expires on March 31.
A focus on freight
Many shipper and carrier interests have long believed the increased use of longer and heavier vehicles will be the primary, if not the only, solution to a looming capacity crunch, escalating fuel prices, and greenhouse gas emissions. For them, the bill was manna from heaven.
The Coalition for Transportation Productivity, a group of 200 shippers and associations, said the measure will help truckers meet the demands of the supply chain while reducing the number of truckloads, amount of diesel fuel, and number of vehicle miles necessary to do the job.
"Truck capacity has dropped by 16 percent since the recession started, and the 30-year-old federal vehicle weight limit compounds the problem by forcing many trucks to travel when they are only partially full," said John Runyan, CTP's executive director, in a statement.
CleanerSaferTrucking Inc., a coalition of truckers, shippers, and equipment manufacturers, said in a statement that the bill will increase truck productivity and lead to a "safer, more viable trucking industry, utilizing better equipment and providing better, more sustainable jobs, while reducing highway congestion."
The American Trucking Associations and the American Association of Port Authorities also endorsed the legislation.
The U.S. Chamber of Commerce, which, with 3 million members, is seen as an accurate barometer of multi-industry consensus, applauded the bill's introduction. "It reflects the recognition of the federal role in the transportation system," said Janet Kavinoky, who heads the chamber's transportation infrastructure practice.
Kavinoky added that the bill underscores the need to focus on freight and its importance in keeping the U.S. economy competitive.
Critics take aim
Not all of the reaction was positive. The Association of American Railroads (AAR), the Teamsters union, and the Owner-Operator Independent Drivers Association (OOIDA) attacked the bill, saying it will create undue safety risk, further damage the nation's deteriorating infrastructure, and put additional financial burdens on taxpayers, and will not create jobs as the bill's sponsors contend.
The AAR, which has for years fought federal efforts to raise truck size and weight limits, said the operator of a typical 97,000-pound, six-axle truck pays only half of the cost of repairing road damage caused by its use. Taxpayers pick up the rest of the tab, the AAR said.
"Americans don't want 97,000 pounds or huge multi-trailers up to 120 feet long on our nation's highways," said Edward R. Hamberger, AAR's president and CEO, in a statement.
OOIDA, which represent mostly fleets of one to five trucks, argued that longer and heavier vehicles are harder to maneuver and will put additional stress on roads and bridges that are designed to accommodate weights no greater than 80,000 pounds. OOIDA said an increase in size and weight limits has never resulted in a reduction in truck traffic.
OOIDA warned the legislation would lead to tax increases and new toll levies because the cost of potentially massive road and bridge damage would far exceed the inflow of user fees paid by the companies that would benefit from the proposed increase in size and weight limits.
Container traffic is finally back to typical levels at the port of Montreal, two months after dockworkers returned to work following a strike, port officials said Thursday.
Today that arbitration continues as the two sides work to forge a new contract. And port leaders with the Maritime Employers Association (MEA) are reminding workers represented by the Canadian Union of Public Employees (CUPE) that the CIRB decision “rules out any pressure tactics affecting operations until the next collective agreement expires.”
The Port of Montreal alone said it had to manage a backlog of about 13,350 twenty-foot equivalent units (TEUs) on the ground, as well as 28,000 feet of freight cars headed for export.
Port leaders this week said they had now completed that task. “Two months after operations fully resumed at the Port of Montreal, as directed by the Canada Industrial Relations Board, the Montreal Port Authority (MPA) is pleased to announce that all port activities are now completely back to normal. Both the impact of the labour dispute and the subsequent resumption of activities required concerted efforts on the part of all port partners to get things back to normal as quickly as possible, even over the holiday season,” the port said in a release.
The “2024 Year in Review” report lists the various transportation delays, freight volume restrictions, and infrastructure repair costs of a long string of events. Those disruptions include labor strikes at Canadian ports and postal sites, the U.S. East and Gulf coast port strike; hurricanes Helene, Francine, and Milton; the Francis Scott key Bridge collapse in Baltimore Harbor; the CrowdStrike cyber attack; and Red Sea missile attacks on passing cargo ships.
“While 2024 was characterized by frequent and overlapping disruptions that exposed many supply chain vulnerabilities, it was also a year of resilience,” the Project44 report said. “From labor strikes and natural disasters to geopolitical tensions, each event served as a critical learning opportunity, underscoring the necessity for robust contingency planning, effective labor relations, and durable infrastructure. As supply chains continue to evolve, the lessons learned this past year highlight the increased importance of proactive measures and collaborative efforts. These strategies are essential to fostering stability and adaptability in a world where unpredictability is becoming the norm.”
In addition to tallying the supply chain impact of those events, the report also made four broad predictions for trends in 2025 that may affect logistics operations. In Project44’s analysis, they include:
More technology and automation will be introduced into supply chains, particularly ports. This will help make operations more efficient but also increase the risk of cybersecurity attacks and service interruptions due to glitches and bugs. This could also add tensions among the labor pool and unions, who do not want jobs to be replaced with automation.
The new administration in the United States introduces a lot of uncertainty, with talks of major tariffs for numerous countries as well as talks of US freight getting preferential treatment through the Panama Canal. If these things do come to fruition, expect to see shifts in global trade patterns and sourcing.
Natural disasters will continue to become more frequent and more severe, as exhibited by the wildfires in Los Angeles and the winter storms throughout the southern states in the U.S. As a result, expect companies to invest more heavily in sustainability to mitigate climate change.
The peace treaty announced on Wednesday between Isael and Hamas in the Middle East could support increased freight volumes returning to the Suez Canal as political crisis in the area are resolved.
The French transportation visibility provider Shippeo today said it has raised $30 million in financial backing, saying the money will support its accelerated expansion across North America and APAC, while driving enhancements to its “Real-Time Transportation Visibility Platform” product.
The funding round was led by Woven Capital, Toyota’s growth fund, with participation from existing investors: Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good and Yamaha Motor Ventures. With this round, Shippeo’s total funding exceeds $140 million.
Shippeo says it offers real-time shipment tracking across all transport modes, helping companies create sustainable, resilient supply chains. Its platform enables users to reduce logistics-related carbon emissions by making informed trade-offs between modes and carriers based on carbon footprint data.
"Global supply chains are facing unprecedented complexity, and real-time transport visibility is essential for building resilience” Prashant Bothra, Principal at Woven Capital, who is joining the Shippeo board, said in a release. “Shippeo’s platform empowers businesses to proactively address disruptions by transforming fragmented operations into streamlined, data-driven processes across all transport modes, offering precise tracking and predictive ETAs at scale—capabilities that would be resource-intensive to develop in-house. We are excited to support Shippeo’s journey to accelerate digitization while enhancing cost efficiency, planning accuracy, and customer experience across the supply chain.”
Donald Trump has been clear that he plans to hit the ground running after his inauguration on January 20, launching ambitious plans that could have significant repercussions for global supply chains.
As Mark Baxa, CSCMP president and CEO, says in the executive forward to the white paper, the incoming Trump Administration and a majority Republican congress are “poised to reshape trade policies, regulatory frameworks, and the very fabric of how we approach global commerce.”
The paper is written by import/export expert Thomas Cook, managing director for Blue Tiger International, a U.S.-based supply chain management consulting company that focuses on international trade. Cook is the former CEO of American River International in New York and Apex Global Logistics Supply Chain Operation in Los Angeles and has written 19 books on global trade.
In the paper, Cook, of course, takes a close look at tariff implications and new trade deals, emphasizing that Trump will seek revisions that will favor U.S. businesses and encourage manufacturing to return to the U.S. The paper, however, also looks beyond global trade to addresses topics such as Trump’s tougher stance on immigration and the possibility of mass deportations, greater support of Israel in the Middle East, proposals for increased energy production and mining, and intent to end the war in the Ukraine.
In general, Cook believes that many of the administration’s new policies will be beneficial to the overall economy. He does warn, however, that some policies will be disruptive and add risk and cost to global supply chains.
In light of those risks and possible disruptions, Cook’s paper offers 14 recommendations. Some of which include:
Create a team responsible for studying the changes Trump will introduce when he takes office;
Attend trade shows and make connections with vendors, suppliers, and service providers who can help you navigate those changes;
Consider becoming C-TPAT (Customs-Trade Partnership Against Terrorism) certified to help mitigate potential import/export issues;
Adopt a risk management mindset and shift from focusing on lowest cost to best value for your spend;
Increase collaboration with internal and external partners;
Expect warehousing costs to rise in the short term as companies look to bring in foreign-made goods ahead of tariffs;
Expect greater scrutiny from U.S. Customs and Border Patrol of origin statements for imports in recognition of attempts by some Chinese manufacturers to evade U.S. import policies;
Reduce dependency on China for sourcing; and
Consider manufacturing and/or sourcing in the United States.
Cook advises readers to expect a loosening up of regulations and a reduction in government under Trump. He warns that while some world leaders will look to work with Trump, others will take more of a defiant stance. As a result, companies should expect to see retaliatory tariffs and duties on exports.
Cook concludes by offering advice to the incoming administration, including being sensitive to the effect retaliatory tariffs can have on American exports, working on federal debt reduction, and considering promoting free trade zones. He also proposes an ambitious water works program through the Army Corps of Engineers.
ReposiTrak, a global food traceability network operator, will partner with Upshop, a provider of store operations technology for food retailers, to create an end-to-end grocery traceability solution that reaches from the supply chain to the retail store, the firms said today.
The partnership creates a data connection between suppliers and the retail store. It works by integrating Salt Lake City-based ReposiTrak’s network of thousands of suppliers and their traceability shipment data with Austin, Texas-based Upshop’s network of more than 450 retailers and their retail stores.
That accomplishment is important because it will allow food sector trading partners to meet the U.S. FDA’s Food Safety Modernization Act Section 204d (FSMA 204) requirements that they must create and store complete traceability records for certain foods.
And according to ReposiTrak and Upshop, the traceability solution may also unlock potential business benefits. It could do that by creating margin and growth opportunities in stores by connecting supply chain data with store data, thus allowing users to optimize inventory, labor, and customer experience management automation.
"Traceability requires data from the supply chain and – importantly – confirmation at the retail store that the proper and accurate lot code data from each shipment has been captured when the product is received. The missing piece for us has been the supply chain data. ReposiTrak is the leader in capturing and managing supply chain data, starting at the suppliers. Together, we can deliver a single, comprehensive traceability solution," Mark Hawthorne, chief innovation and strategy officer at Upshop, said in a release.
"Once the data is flowing the benefits are compounding. Traceability data can be used to improve food safety, reduce invoice discrepancies, and identify ways to reduce waste and improve efficiencies throughout the store,” Hawthorne said.
Under FSMA 204, retailers are required by law to track Key Data Elements (KDEs) to the store-level for every shipment containing high-risk food items from the Food Traceability List (FTL). ReposiTrak and Upshop say that major industry retailers have made public commitments to traceability, announcing programs that require more traceability data for all food product on a faster timeline. The efforts of those retailers have activated the industry, motivating others to institute traceability programs now, ahead of the FDA’s enforcement deadline of January 20, 2026.