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 chief executives of 15 leading truckload carriers have asked the Senate to oppose language in fiscal-year 2016 appropriations legislation requiring states to permit the use of longer twin trailers on all of the nation's highways.
In a letter sent late last week to Sens. Susan Collins (R-Maine), who chairs the Senate Appropriations Committee's transportation, housing, and urban development subcommittee, and Jack Reed (D-R.I.), the subcommittee's ranking member, the CEOs said that legislation forcing states to accept 33-foot twin trailers would impair highway safety and accelerate wear and tear on the nation's roads. Federal law in place since 1982 limits the length of twin trailers to 28 feet each, though 18 states permit longer trailers on their portions of the interstate highway system.
In the letter, the CEOs said the proposal would "make it very difficult for small trucking companies, which are at the heart of our industry, to compete." They advised Congress to move deliberately, saying there "has not been sufficient dialogue around this measure to truly understand the unintended consequences it would have."
The signers include the CEOs of J.B. Hunt Transport Services Inc., Heartland Express Inc., Celadon Group Inc., KLLM Transport Services, Knight Transportation Inc., and Swift Transportation Corp., among others. CEOs of 16 trucking firms signed the letter, including Charles Hammel, the president of Pitt Ohio, a carrier involved in truckload, less-than-truckload (LTL), and parcel delivery operations.
The letter comes as the Senate considers whether to include the language in the FY 2016 appropriations for the Department of Transportation, Housing, and Urban Development and related agencies. The House has approved its version of so-called "THUD" appropriations legislation that incorporates the measure. The full Senate Appropriations Committee is scheduled to mark up the THUD spending bill today, with Sen. Richard Shelby (R-Ala.) expected to offer an amendment adding the language, according to a statement issued late yesterday by opponents of the measure, which include the Teamsters union, the rail industry, and various highway-safety advocates.
The truckload CEOs said the industry is "deeply divided" over the issue, which may be an understatement. A group of nine LTL carriers calling itself the "Coalition for Efficient and Responsible Trucking" (CERT) is lobbying for the language to be signed into law. The group also lists 21 business and shipper groups, as well as individual companies like Amazon.com as supporters of the measure; among those is the American Trucking Associations (ATA), which counts the truckload carriers opposing the provision as some of its most influential members.
Opponents maintain that the nation's highway system, especially its merge lanes and on-off ramps, were not configured to handle tractor-trailer combinations 10 feet longer than current law. They contend that the measure would allow longer vehicles on 200,000 miles of "national network" that handle commercial truck traffic, of which the 44,000-mile interstate system is a part. The longer equipment would travel on local access roads where the 28-foot trailers are allowed to operate. The national network and the local access roads that are considered lower-class structures handle large amounts of motorist traffic each day, according to those fighting the measure.
Supporters of the measure contend that the longer trailers have similarly longer wheelbases, which improve stability and performance. They add that the longer trailers would not add any more weight to a tractor-trailer, since they would keep to the 80,000-pound limit on the maximum gross vehicle weight—tractor, trailer, and freight—allowed by federal law on the national network. The longer trailers would lead to a 16- to 18-percent increase in fleet productivity by allowing shippers to load more lighter-weighted, high-cube goods in each trailer, supporters said.
Adding five feet to the length of each trailer would reduce the number of trucks needed on the road, cutting 6.6 million truck trips, preventing 912 crashes, and reducing fuel consumption by 204 million gallons annually, supporters said. As it now stands, the explosive growth of digital commerce over the next 10 years will result in a 40-percent increase in LTL shipments that will move in 28-foot twin trailers, backers contend. About 1.2 million more trucks will be needed to meet that demand, they argue. Most goods ordered online are lightweight shipments that often cube out before they weigh out.
Earlier this week, Mark V. Rosenker, who chaired the National Transportation Safety Board from August 2006 to August 2008 and served on the Board for seven years, urged Sens. Thad Cochran (R-Miss.), chairman of the Senate Appropriations Committee, and Barbara Mikulski (D-Md.), to support the measure, calling it "sound public policy" that will result in "less wear and tear on our infrastructure, fewer trucks on the road to move the same amount of freight, and reductions in greenhouse-gas emissions."
Rosenker is president of consultancy Transportation Safety Group LLC and is a senior adviser to CERT.
As of this writing, Cochran is undecided about the language. However, his state, which doesn't allow the longer trailers, seems to want to keep it that way. The Mississippi Transportation Commission yesterday adopted a resolution opposing the language, saying it jeopardizes highway safety and overrides state legislative decisions designed to protect the travelling public.
Earlier this month, DOT, which had been tasked by Congress with studying the affect of proposed changes in truck size and weight limits, told lawmakers that no change should be made to the status quo because the agency lacks the necessary data to make accurate assessments of the national impact of any adjustments.
The DOT findings were cited by the truckload industry CEOs as another reason Congress should oppose the measure on longer twin trailers. Supporters of the proposal said the conclusions simply rubber-stamp the Obama administration's long-standing opposition to sensible measures that would improve fleet and shipper productivity.
Autonomous forklift maker Cyngn is deploying its DriveMod Tugger model at COATS Company, the largest full-line wheel service equipment manufacturer in North America, the companies said today.
By delivering the self-driving tuggers to COATS’ 150,000+ square foot manufacturing facility in La Vergne, Tennessee, Cyngn said it would enable COATS to enhance efficiency by automating the delivery of wheel service components from its production lines.
“Cyngn’s self-driving tugger was the perfect solution to support our strategy of advancing automation and incorporating scalable technology seamlessly into our operations,” Steve Bergmeyer, Continuous Improvement and Quality Manager at COATS, said in a release. “With its high load capacity, we can concentrate on increasing our ability to manage heavier components and bulk orders, driving greater efficiency, reducing costs, and accelerating delivery timelines.”
Terms of the deal were not disclosed, but it follows another deployment of DriveMod Tuggers with electric automaker Rivian earlier this year.
Manufacturing and logistics workers are raising a red flag over workplace quality issues according to industry research released this week.
A comparative study of more than 4,000 workers from the United States, the United Kingdom, and Australia found that manufacturing and logistics workers say they have seen colleagues reduce the quality of their work and not follow processes in the workplace over the past year, with rates exceeding the overall average by 11% and 8%, respectively.
The study—the Resilience Nation report—was commissioned by UK-based regulatory and compliance software company Ideagen, and it polled workers in industries such as energy, aviation, healthcare, and financial services. The results “explore the major threats and macroeconomic factors affecting people today, providing perspectives on resilience across global landscapes,” according to the authors.
According to the study, 41% of manufacturing and logistics workers said they’d witnessed their peers hiding mistakes, and 45% said they’ve observed coworkers cutting corners due to apathy—9% above the average. The results also showed that workers are seeing colleagues take safety risks: More than a third of respondents said they’ve seen people putting themselves in physical danger at work.
The authors said growing pressure inside and outside of the workplace are to blame for the lack of diligence and resiliency on the job. Internally, workers say they are under pressure to deliver more despite reduced capacity. Among the external pressures, respondents cited the rising cost of living as the biggest problem (39%), closely followed by inflation rates, supply chain challenges, and energy prices.
“People are being asked to deliver more at work when their resilience is being challenged by economic and political headwinds,” Ideagen’s CEO Ben Dorks said in a statement announcing the findings. “Ultimately, this is having a determinantal impact on business productivity, workplace health and safety, and the quality of work produced, as well as further reducing the resilience of the nation at large.”
Respondents said they believe technology will eventually alleviate some of the stress occurring in manufacturing and logistics, however.
“People are optimistic that emerging tech and AI will ultimately lighten the load, but they’re not yet feeling the benefits,” Dorks added. “It’s a gap that now, more than ever, business leaders must look to close and support their workforce to ensure their staff remain safe and compliance needs are met across the business.”
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.