Skip to content
Search AI Powered

Latest Stories

fastlane

The long road ahead

The new transportation law addresses a host of important matters. Unfortunately, funding isn't one of them.

Some will say I need to get a life, but I just spent an evening with the long-awaited 1,656-page transportation funding bill, "Moving Ahead for Progress in the 21st Century Act," or "MAP-21." The legislation, as everyone knows by now, was signed into law on July 6, after the previous law was kept alive by no fewer than 11 short-term extensions. It ensures funding, at the current level, of transportation and other projects until Dec. 31, 2014.

While any bill that keeps current projects moving for the next two years and preserves 3 million jobs has much to commend it, there were some disappointments as well. For example, in my opinion, there were several things on which Congress should have taken a firm stand but did not do so.


Take the long-debated driver hours-of-service rule, for example. Though the discussion has dragged on for years, Congress failed to act decisively and either adopt or reject the rule's latest iteration. Instead, it chose to prolong the matter even further by directing the secretary of transportation to complete by March 31, 2013, a "field study on the efficacy of the restart rules published on Dec. 27, 2011." This report will be due back to Congress on Sept. 30, 2013, when, regardless of the conclusions, it is sure to spark another long and protracted discussion.

It was much the same story with the proposal to overhaul the current truck size and weight limits. At one time, Congress was expected to authorize the states to allow larger trucks on their portions of the interstate highway system, but no such provision made it into MAP-21. Instead, Congress mandated yet another study of the impact of larger trucks on safety and infrastructure, with a report due to Congress in two years.

The proposed XL pipeline fared no better. Although many initially thought the new law would contain provisions authorizing the project, that didn't happen. Faced with President Obama's threat to veto the bill if it included any such language, Congress backed off and omitted any mention of the matter.

While all of these would seem to represent missed opportunities, I believe the measure's most glaring omission was its failure to provide for any significant increases in funding. Most conspicuous was the fact that once again, Congress failed to deal with the tax on gasoline and diesel fuel. These taxes have not been increased since 1993; and while none of us wants higher taxes, at some point, the bullet must be bitten.

All this notwithstanding, the bill also had its good points. The legislation adds language to the current National Transportation Policy, outlining goals to invest in infrastructure and operational improvements that will strengthen the freight network.

Another provision resolves the debate over electronic on-board recorders (EOBRs) for motor carriers. The law instructs the secretary of transportation to complete in one year the development of regulations that will require EOBRs for interstate carriers, after which the carriers will have two years to install the units in all tractors operated by drivers subject to the hours-of-service rule.

One of the most important provisions requires brokers and forwarders to post a surety bond of $75,000, up from the current $10,000. This should help weed out the underfunded firms that are at the root of many of the industry's problems, i.e., those that fail to pay carriers or that engage in clandestine rebrokering. There are also provisions controlling certification and operations—all in all, positive changes for the brokerage industry.

The bill deals positively with dozens of other transportation issues as well. Still, without proper funding, one has to wonder how effective our new map will be. Maybe we should try again when it's not an election year.

The Latest

More Stories

Automation delivers results for high-end designer

When you get the chance to automate your distribution center, take it.

That's exactly what leaders at interior design house Thibaut Design did when they relocated operations from two New Jersey distribution centers (DCs) into a single facility in Charlotte, North Carolina, in 2019. Moving to an "empty shell of a building," as Thibaut's Michael Fechter describes it, was the perfect time to switch from a manual picking system to an automated one—in this case, one that would be driven by voice-directed technology.

Keep ReadingShow less

Featured

kion linde tugger truck
Lift Trucks, Personnel & Burden Carriers

Kion Group plans layoffs in cost-cutting plan

In search of the right WMS

IT projects can be daunting, especially when the project involves upgrading a warehouse management system (WMS) to support an expansive network of warehousing and logistics facilities. Global third-party logistics service provider (3PL) CJ Logistics experienced this first-hand recently, embarking on a WMS selection process that would both upgrade performance and enhance security for its U.S. business network.

The company was operating on three different platforms across more than 35 warehouse facilities and wanted to pare that down to help standardize operations, optimize costs, and make it easier to scale the business, according to CIO Sean Moore.

Keep ReadingShow less
screenshots of devices with returns apps

Optoro: 69% of shoppers admit to “wardrobing” fraud

With returns now a routine part of the shopping journey, technology provider Optoro says a recent survey has identified four trends influencing shopper preferences and retailer priorities.

First, 54% of retailers are looking for ways to increase their financial recovery from returns. That’s because the cost to return a purchase averages 27% of the purchase price, which erases as much as 50% of the sales margin. But consumers have their own interests in mind: 76% of shoppers admit they’ve embellished or exaggerated the return reason to avoid a fee, a 39% increase from 2023 to 204.

Keep ReadingShow less
robots carry goods through warehouse

Fortna: rethink your distribution strategy for 2025

Facing an evolving supply chain landscape in 2025, companies are being forced to rethink their distribution strategies to cope with challenges like rising cost pressures, persistent labor shortages, and the complexities of managing SKU proliferation.

But according to the systems integrator Fortna, businesses can remain competitive if they focus on five core areas:

Keep ReadingShow less

In Person: Keith Moore of AutoScheduler.AI

Keith Moore is CEO of AutoScheduler.AI, a warehouse resource planning and optimization platform that integrates with a customer's warehouse management system to orchestrate and optimize all activities at the site. Prior to venturing into the supply chain business, Moore was a director of product management at software startup SparkCognition. He is a graduate of the University of Tennessee, where he earned a Bachelor of Science degree in mechanical engineering.

Q: Autoscheduler provides tools for warehouse orchestration—a term some readers may not be familiar with. Could you explain what warehouse orchestration means?

Keep ReadingShow less