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.
The court, with one exception, upheld the Federal Motor Carrier Safety Administration's (FMCSA) 2011 rules for drivers'
hours of service, known in the trade as HOS. The court overturned a FMCSA provision requiring a 30-minute break for short-haul
drivers, defined in this instance as local delivery drivers such as those working for companies like FedEx Corp. and UPS Inc.
The ruling is a blow to the American Trucking Associations (ATA), which sued the FMCSA in an effort to overturn the rules.
Enforcement of the new rules went into effect July 1, 18 months after the policy was proposed.
In its December 2011 rules, FMCSA reduced a driver's seven-day workweek to 70 hours from 82 hours, a 15-percent cut. For
the first time ever, drivers also have limits placed on their traditional 34-hour minimum restart period, requiring it to occur
once every seven days and to include two rest periods between 1 am and 5 am over two consecutive days. The 2011 rule bars truckers
from driving more than eight hours without first taking at least a 30-minute off-duty break.
In its revisions, the agency left unchanged a key provision allowing 11 hours of continuous drive time after a driver has
spent 10 consecutive hours off duty, instead of reducing the number of continuous driving hours to 10. That sparked opposition
from safety advocacy groups, notably Public Citizen, which said the language would continue to jeopardize the public on the roads.
THIRD TIME'S A CHARM?
Today's decision marks the third time in 10 years that the appeals court has ruled on the issue of driver hours.
At the end of its 22-page decision, the court, perhaps tongue in cheek, said, "the third time's a charm." In an
effort to add historical context, the court said its action "brings to an end much of the permanent warfare
surrounding the HOS rules."
Still, the court couldn't resist chiding the FMCSA, saying the Department of Transportation's truck safety subagency
prevailed "not on the strengths of its rulemaking prowess, but through an artless war of attrition." Those following the
battle for years have said the FMCSA has not done a stellar job in the past of defending its position in court.
While the court ruling was not a ringing endorsement of the merits of the FMCSA policy, it found that the agency did not
behave "arbitrarily and capriciously" in weighing the merits of the restart provisions. The judges added that FMCSA "acted
reasonably, if incrementally, in tailoring the restart to promote driver health and safety."
In its statement,
ATA chose to focus on the court's decision denying the rest provision for the local delivery drivers. The group also noted that
although the court found various flaws with FMCSA's rationale, it declined to second-guess the agency's methodologies and
interpretations and instead deferred to its technical expertise in the issue.
Dave Osiecki, ATA's senior vice president of policy and regulatory affairs, said in the statement that the ruling should "serve
as a warning to FMCSA not to rely on similarly unsubstantiated rulemakings in the future."
Osiecki said the evidence presented in the rulemaking process made clear that driver fatigue is a minor factor in the cause of
crashes involving a truck. "ATA hopes FMCSA will work with the trucking industry to address more pressing safety and driver
behavior issues, including those than can be directly affected through proven traffic enforcement activities aimed at unsafe
operating behaviors," he said.
Thomas E. Bray, an HOS expert at J.J. Keller & Associates Inc., a Neenah, Wis.-based consultancy that has been working with
carriers to prepare for the changes, said today he was surprised by the decision because of FMCSA's past inabilities to sway the
courts. Bray said the court essentially found that the FMCSA finally has enough valid data points to support its policy.
The 2011 rules have become some of the most publicly reviled policy changes in transportation history. Carriers say the rules
cut into their productivity and require them to deploy more resources to move the same amount of freight they handle now. Shippers
say the new rules have led to a 3- to 5-percent decrease in vehicle miles driven, forcing them to reconfigure their manufacturing
and distribution networks if they want to get their goods to market in a timely fashion. Drivers claim the rules curtail their
ability to earn a living and force rest upon them when they don't need it.
State regulators worry that carriers will put more trucks on the road to offset the productivity losses, straining their
enforcement capabilities. Some in Congress have argued the rule creates a safety hazard by forcing commercial drivers onto the
highways at the same time as millions of morning rush-hour commuters.
North American manufacturers have begun stockpiling goods to buffer against the impact of potential tariffs threatened by incoming Trump Administration, building up safety stocks to guard against higher imported costs, according to a report from New Jersey business software firm GEP.
That surge in orders has sparked a jump in production, shrinking the level of spare capacity in global supply chains to its lowest level since June, the firm said in its “GEP Global Supply Chain Volatility Index.” By the numbers, that index rose to -0.20 in November, from -0.39 the month before, based on GEP’s measurement of demand conditions, shortages, transportation costs, inventories, and backlogs from its monthly survey of 27,000 businesses.
Another impact of the trend has been to trigger a surge in procurement activity by manufacturers in Asia—especially China—as new orders rebounded sharply. Only India reported a greater rise in raw material purchases than China in November. And preparations to ramp up production even further were evidenced data showing factory procurement activity across Asia rising at its fastest pace for three-and-a-half years, GEP said.
In sharp contrast, Europe's industrial recession worsened in November, in large part due to Germany's deepening manufacturing downturn. Factories in that region went deeper into retrenchment mode, as demand for inputs from manufacturers in Europe was its weakest since December 2023.
"In November, U.S. manufacturers, particularly in the consumer goods sector, increased their safety stocks to help blunt any immediate tariff increases," John Piatek, vice president, GEP, said in a release. "In contrast, Chinese manufacturers are getting busier as a result of government stimulus and growth in exports, led by automotives and technology products. Strategically, many global companies have a wait-and-hope approach, while simultaneously planning to remake their global supply chains to respond to a tariff and trade war in 2025 and beyond."
In response to booming e-commerce volumes, investors are currently building $9 billion worth of warehousing and distribution projects under construction in the U.S., with nearly 25% of the activity attributed to one company alone—Amazon.
The measure comes from a report by the Texas-based market analyst firm Industrial Info Resources (IIR), which said that Amazon is responsible for $2 billion in warehousing and distribution projects across the U.S., buoyed by the buildout of fulfillment centers--facilities that help process orders and ship products directly to end customers, ensuring deliveries of online goods from retailers to buyers.
That investment is inspired by U.S. Census Bureau data showing $300.1 billion in a preliminary estimate of U.S. retail e-commerce sales for third-quarter 2024, adjusted for seasonal variation but not for price changes, compared to $287.5 million in the first quarter, and an increase of 7.4% compared with third-quarter 2023. In addition, e-commerce sales accounted for 16.2% of total retail sales in the third quarter of this year, the report said.
Private equity firms are continuing to make waves in the logistics sector, as the Atlanta-based cargo payments and scheduling platform CargoSprint today acquired Advent Intermodal Solutions LLC, a New Jersey firm known as Advent eModal that says its cloud-based platform speeds up laden container movement at ports and intermodal hubs.
According to CargoSprint—which is backed by the private equity investment firm Lone View Capital—the move will expand the breadth of global trade that it facilitates and enhance its existing solutions for air, sea and land freight. The acquisition follows Lone View Capital’s deal just last month to buy a majority ownership stake in CargoSprint.
"CargoSprint and Advent eModal have a shared heritage as founder-led enterprises that rose to market leading positions by combining deep industry expertise with a passion for innovation. We look forward to supporting the combined company as it continues to drive efficiency in global trade,” said Doug Ceto, Partner at Lone View Capital.
Terms of the deal were not disclosed, but Parvez Mansuri, founder and former CEO of Advent eModal, will act as Chief Strategy Officer and remain a member of the board of directors of the combined company.
Advent eModal says its cloud-based platform, eModal, connects all parts of the shipping process, making it easier for ports, carriers, logistics providers and other stakeholders to move containers, increase equipment utilization, and optimize payment workflows.
Airbus Ventures, the venture capital arm of French aircraft manufacturer Airbus, on Thursday invested $10.5 million in the Singapore startup Eureka Robotics, which delivers robotic software and systems to automate tasks in precision manufacturing and logistics.
Eureka said it would use the “series A” round to accelerate the development and deployment of its main products, Eureka Controller and Eureka 3D Camera, which enable system integrators and manufacturers to deploy High Accuracy-High Agility (HA-HA) applications in factories and warehouses. Common uses include AI-based inspection, precision handling, 3D picking, assembly, and dispensing.
In addition, Eureka said it planned to scale up the company’s operations in the existing markets of Singapore and Japan, with a plan to launch more widely across Japan, as well as to enter the US market, where the company has already acquired initial customers.
“Eureka Robotics was founded in 2018 with the mission of helping factories worldwide automate dull, dirty, and dangerous work, so that human workers can focus on their creative endeavors,” company CEO and Co-founder Pham Quang Cuong said in a release. “We are proud to reach the next stage of our development, with the support of our investors and the cooperation of our esteemed customers and partners.”
Tire manufacturer Michelin has long used predictive maintenance tools to head off equipment failures, but the company recently upped its game by implementing cutting-edge robotics at its factory in Lexington, South Carolina. Managers there are using Boston Dynamics’ autonomous mobile robot (AMR) “Spot” to speed and streamline the inspection and maintenance processes—a move that is boosting productivity at the Lexington facility and for the company at large.
“Getting ahead of equipment failures is important, because it affects our production output,” Ryan Burns, an associate in the facility’s reliability and methods department, said in a case study describing the project. “If we can predict a failure and we can plan and schedule the work to fix the issue before it becomes an unplanned breakdown, then we’re able to increase our output as a company and a tire producer.”
MORE—AND BETTER—INSPECTIONS
Spot is a versatile quadruped AMR that can automate sensing and inspection tasks, and capture data—all while moving freely throughout a facility. The robot is being used around the world for maintenance-related functions, such as detecting mechanical problems and monitoring equipment for energy efficiency. At the Michelin plant, managers began by assigning Spot to inspect machinery in its tire verification (TV) area—taking over tasks previously done by in-house technicians as well as conducting additional inspections. Spot identifies issues and problems, and then conveys that information through its software program, called Orbit, which managers can access via an on-site server. From there, managers can sort through the data to detect anomalies and set alarm thresholds that will trigger a technician’s response.
“From a technician standpoint, Spot going out and doing these routes eliminates a mundane task that the humans were doing,” said Burns. “By Spot finding these anomalies and these issues, it gives the technicians more time to … [decide] how and when they’re going to fix the problem versus going out, identifying [the issue], then trying to plan and schedule everything.”
FEWER BREAKDOWNS, MORE PRODUCTIVITY
The results have been game-changing, according to Burns and his colleague Wayne Pender, the tech methods and reliability manager at the Lexington plant. As of this past fall, Spot was running seven inspection missions in the TV area, scanning about 350 points across 700 assets to detect anomalies ahead of time. The results helped generate 72 work orders in Michelin’s system—allowing the facility to avoid uncontrolled breakdowns and major production losses, according to Pender. On top of that, Spot had generated 66 air-leak work orders, identifying areas where Michelin can reduce energy consumption.
Looking ahead, the plan is to apply Spot’s talents beyond the TV area to the rest of the facility.
“Spot is a member of our maintenance team,” Burns said. “The future is to have more Spots, so that we can improve on our inspections and improve our overall output as a company here at [Lexington].”
Pender agrees: “We see Spot [as] the future. … [But] we probably need a whole dog pound or multiple Spots … to actually do what we need to do [across all of Michelin’s North American facilities].”