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.
It's doubtful that Justices Janice Rogers Brown, Thomas B. Griffith, and A. Raymond Randolph have anything
in common with rock musician Tom Petty. But in ruling Friday to uphold virtually all of the federal government's
rules governing truck drivers' operations, the judges sent a message that could have been pulled from the title
of a popular Petty song: "Don't Come Around Here No More!"
The opinion technically does not end the matter. Aggrieved parties can petition the court to rethink its decision
within 45 days of the Aug. 2 ruling date. But Sean McNally, a spokesman for the American Trucking Associations (ATA),
which led the fight to overturn the rules, said it's unlikely the group will appeal the decision.
Congress could intervene and incorporate driver rules into federal statute, which would supercede the agency's rules.
However, that scenario is unlikely since lawmakers have not acted before in spite of numerous opportunities to do so. In last
year's law that re-authorized the nation's transport funding programs, for example, Congress only ordered the FMCSA to conduct
a cost-benefit analysis of the rules. The analysis has not been completed, but no one expects its findings to profoundly change
the game.
An amendment to the HOS rules was also attached to a recently introduced $44 billion bill to fund the nation's transportation
and housing agencies. But that bill has gone nowhere. The House tabled consideration of the bill, titled the "Transportation,
Housing and Urban Development Appropriations Act of 2014," or T-HUD, at least until lawmakers return next month from a
five-week summer recess. The amendment in the House bill would cut off FMCSA funding to enforce provisions requiring drivers to
restart their 34-hour rest clocks once a week and include in that cycle two consecutive rest days between 1 a.m. and 5 a.m. It
would also effectively eliminate language requiring long-haul drivers to stop driving after eight hours if they haven't taken a
30-minute rest break.
What does seem to have come to an end is the court's patience with the 10-year saga. In issuing the opinion, Justice Brown
wrote, "It is often said the third time's a charm. That may well be true in this case, the third of its kind to be considered
[by the appeals court]."
The justices strongly implied that their ruling marks the end of the road. "With one small exception
(overturning the 30-minute break for short-haul drivers), our decision today brings to an end much of the
permanent warfare surrounding the HOS rules," Justice Brown wrote.
TIME TO TAKE STOCK
Those who've been fighting the HOS battle spent much of the day taking stock. Dave Osiecki, ATA's senior
vice president of policy and regulatory affairs, said the agency should now spend less time rulemaking and
more time fostering a safer driving environment by utilizing proven methods that focus on unsafe road behaviors.
Osiecki cited the court's own language that FMCSA prevailed "not on the strengths of its rulemaking prowess,
but through an artless war of attrition." The court's opinion should "serve as a warning to FMCSA not to rely on
similarly unsubstantiated rulemakings in the future," Osiecki said.
Todd Spencer, executive vice president of the Owner-Operator Independent Drivers Association (OOIDA), said the industry
must put the HOS squabbles behind it and now focus on strengthening training standards for new drivers. Although all new
drivers must pass a test to obtain a Commercial Driver's License, the test only covers basic operations and doesn't prepare
drivers either for the real world behind the wheel or for the growing number of regulations they must comply with, Spencer said.
OOIDA said it has launched a program called "Truckers for Safety" designed to train the next generation of drivers. The program
is aimed in part at offsetting the disruptions caused by rapid turnover and by older experienced drivers leaving the field and
being replaced by younger, less-seasoned recruits, Spencer said.
FMCSA issued a brief statement
praising the decision. "The ruling recognizes the sensible data-driven approach that was taken in crafting this important
regulation to increase safety and reduce driver fatigue—a leading factor in truck crashes," it said. FMCSA continued to say
that the ruling "provides added certainty for all affected, moving forward."
FMCSA's statement, however, is drastically at odds with the sentiments of much of the industry. In a letter to lawmakers last
week, Bruce Carlton, president of the shipper group National Industrial Transportation League, recommended that the HOS study
mandated under last year's transport funding bill be completed before the provisions "adversely affect our economy."
The American Transportation Research Institute (ATRI), ATA's research arm, said in June that the rules would cost the industry
$374 million annually by reducing driver flexibility and productivity. Trucking firms have estimated a 2- to 10-percent
productivity hit due to reduced truck miles driven. Fleets may have to raise the pay of their existing drivers to compensate
them for the lost hours or hire more drivers to fill the void. Either scenario would result in rising costs that would be
passed on down the line.
MUCH ADO ABOUT NOTHING?
Because enforcement of the rules only began July 1, it is too early to determine its impact on supply chains. Most
over-the-road trucking occurs east of the Mississippi, in densely populated regions where the typical truck length of
haul is less than 400 miles—run lengths that are easier to schedule around the new rules. Longer lengths of haul, which
might run afoul of the rules, are becoming less prevalent as a growing number of those movements are shifting to lower-cost
rail intermodal service.
Some experts believe shippers will need to improve their scheduling if drivers are to make their normal runs without violating
the law or harming supply chain productivity. According to Michael P. Regan, president and CEO of TranzAct Technologies Inc., an
Elmhurst Village, Ill.-based consulting company, the key is for shippers to eliminate any slack in their schedules. Because of
the mandatory clock-stopping period, shippers can no longer afford to delay drivers at the loading dock and expect them to
deliver a long-haul shipment without bumping up against the new guidelines.
"The issue with shipper scheduling is going to be a huge factor," Regan said. He suggests shippers and their carriers allow drivers to take their mandatory 30-minute break at the dock instead of on the road
while en route with a load.
If nothing else, the court's ruling affirms that FMCSA's clout has grown beyond highway safety and into the trucking industry's
business operations. Most expect an emboldened FMCSA to push for even tougher safety rules in the future. Highway safety advocates
are not expected to rest either. The FMCSA maintained the 11-hour maximum driving time per day, even though safety advocates had
aggressively lobbied to reduce drive times to 10. Safety groups are likely to continue pushing the agency to shorten the driving
hours to 10, something the FMCSA seriously considered before sticking with the status quo.
John G. Larkin, lead transportation analyst for investment firm Stifel, Nicolaus & Co., said safety advocates will not be
satisfied until fatalities associated with big truck operations are significantly reduced, despite industry data showing most
accidents involving big rigs are actually caused by motorists or light truck operators.
"There is no stopping the highway safety ideologues," Larkin wrote in an e-mail. "Logic and economics don't legitimately
enter the discussion, or so it seems."
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.”