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.
A key part of the federal government's rules governing commercial truck driver operations will impact only a small
percentage of the driver workforce while preventing 1,400 crashes, 560 injuries, and 19 deaths annually, the Federal
Motor Carrier Safety Administration (FMCSA) said yesterday in releasing a study on the impact of the so-called restart
provisions of its driver hours-of-service (HOS) regulations.
The study, jointly conducted by Washington State University's Sleep and Performance Research Center and Philadelphia-based
Pulsar Informatics Inc., was mandated by Congress under the transportation funding bill signed into law by President Obama in
July 2012. The study examined the real-world effect of the "restart" language requiring drivers to take at least 34 hours off
once every seven days and to include within that off-duty time two rest periods between 1 a.m. and 5 a.m. over two consecutive
days.
Congress, which originally set a Sept. 30 deadline for having the report completed, is not required to take any action upon
receiving the document.
From January to July of last year, the researchers studied 106 drivers hauling various trailer types and driving different
lengths of haul. They found that drivers who began their workweeks with one nighttime rest period instead of two exhibited more
nighttime attention lapses, were sleepier towards the end of their shifts, and exhibited a greater propensity to drift from their
lanes regardless of the time of day. FMCSA said the report adds to the body of scientific evidence that the current rules, which
replaced regulations issued in 2004, are more effective at combatting driver fatigue than the prior version.
FMCSA said the restart provisions would mostly impact drivers who work, on average, 70 hours a week, the maximum allowed under
the rules. Those drivers comprise about 15 percent of the total driver workforce, according to the agency. "For the small
percentage of truckers that average 70 hours of work a week, two nights of rest is better for their safety and the safety of
everyone on the road," FMCSA Administrator Anne S. Ferro said in a statement.
The Hours-of-Service rules are arguably the most controversial federal truck safety policies ever implemented. Shippers,
carriers, owner-operators, organized labor, and public utility commissions opposed the regulations for one reason or another.
The rules, which also reduced the maximum workweek to 70 from 82, have resulted in a 3- to 5-percent reduction in truck
productivity, shippers and carriers contend. Drafted in December 2011 to be enforced 18 months later, the rules survived
a major legal challenge in August when a federal appeals court in Washington upheld virtually all of the FMCSA policy.
The American Trucking Associations (ATA), which opposed the rules from the start, said the report falls short in several key
areas. For example, the report doesn't address the safety impact or the effectiveness of the once-a-week restart provision, even
though the language has never been part of federal driver safety rules before, the group said. Though the study acknowledges that
the two late-night rest periods might result in more drivers on the road during the day, it fails to discuss the safety or
congestion impacts of that scenario, ATA said. The report also does not evaluate the driver health benefits of the restart
provisions even though that was the main reason FMCSA wanted to change the language in the first place, the association said.
The "incomplete nature of the analysis and the lack of justification for the once-weekly use restriction is consistent with the
flawed analyses that led the agency to make these changes in the first place," said Dave Osiecki, ATA's executive vice president
and chief of national advocacy."
The Owner-Operators Independent Drivers Association (OOIDA) criticized the study as a poor representation of the commercial
driver universe, noting that only 106 drivers were canvassed and, of those, only 36 were over-the-road drivers, the types of
drivers most affected by the new restart provisions. "Unfortunately, this was a study that was sort of thrown together," said
Todd Spencer, OOIDA's executive vice president.
Rep. Richard L. Hanna, R-N.Y., who has introduced legislation to rescind the restart provisions, was quoted in trucker
magazine Landline as calling the study "worthless" and too narrow in scope. "FMCSA is telling millions of truckers
they are tired, but the study only examined 100 [drivers] from three companies," Hanna said. Hanna also criticized the
findings for ignoring the issue of forcing truckers on the road during morning rush hours when roads are most congested
and dangerous. The lawmaker has called for a delay in the provision's implementation so the Government Accountability Office
(GAO) can conduct an independent study of its impact on all stakeholders.
Thomas E. Bray, an HOS expert at J.J. Keller & Associates Inc., a Neenah, Wis.-based consultancy that has worked with carriers
to prepare for the rules, said he wasn't surprised by the study's findings. Bray said it's hardly a secret that more driver rest
results in better performance. In addition, because FMCSA already has studies that support the rules, conclusions to the contrary
would have forced it back to the drawing board and would have drawn the wrath of lawmakers, he added.
However, Bray said he was taken aback that the study failed to address the once-a-week restart requirement that is so
important to long-haul drivers. "Without a safety study to back up the ... provision, it will remain open for debate as to
whether the cost and effects are worth the loss of hours," he said.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."
Global trade will see a moderate rebound in 2025, likely growing by 3.6% in volume terms, helped by companies restocking and households renewing purchases of durable goods while reducing spending on services, according to a forecast from trade credit insurer Allianz Trade.
The end of the year for 2024 will also likely be supported by companies rushing to ship goods in anticipation of the higher tariffs likely to be imposed by the coming Trump administration, and other potential disruptions in the coming quarters, the report said.
However, that tailwind for global trade will likely shift to a headwind once the effects of a renewed but contained trade war are felt from the second half of 2025 and in full in 2026. As a result, Allianz Trade has throttled back its predictions, saying that global trade in volume will grow by 2.8% in 2025 (reduced by 0.2 percentage points vs. its previous forecast) and 2.3% in 2026 (reduced by 0.5 percentage points).
The same logic applies to Allianz Trade’s forecast for export prices in U.S. dollars, which the firm has now revised downward to predict growth reaching 2.3% in 2025 (reduced by 1.7 percentage points) and 4.1% in 2026 (reduced by 0.8 percentage points).
In the meantime, the rush to frontload imports into the U.S. is giving freight carriers an early Christmas present. According to Allianz Trade, data released last week showed Chinese exports rising by a robust 6.7% y/y in November. And imports of some consumer goods that have been threatened with a likely 25% tariff under the new Trump administration have outperformed even more, growing by nearly 20% y/y on average between July and September.