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.
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 they pass the remaining requirements 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.
Declaring that it is furthering its mission to advance supply chain excellence across the globe, the Council of Supply Chain Management Professionals (CSCMP) today announced the launch of seven new International Roundtables.
The new groups have been established in Mexico City, Monterrey, Guadalajara, Toronto, Panama City, Lisbon, and Sao Paulo. They join CSCMP’s 40 existing roundtables across the U.S. and worldwide, with each one offering a way for members to grow their knowledge and practice professional networking within their state or region. Overall, CSCMP roundtables produce over 200 events per year—such as educational events, networking events, or facility tours—attracting over 6,000 attendees from 3,000 companies worldwide, the group says.
“The launch of these seven Roundtables is a testament to CSCMP’s commitment to advancing supply chain innovation and fostering professional growth globally,” Mark Baxa, President and CEO of CSCMP, said in a release. “By extending our reach into Latin America, Canada and enhancing our European Union presence, and beyond, we’re not just growing our community—we’re strengthening the global supply chain network. This is how we equip the next generation of leaders and continue shaping the future of our industry.”
The new roundtables in Mexico City and Monterrey will be inaugurated in early 2025, following the launch of the Guadalajara Roundtable in 2024, said Javier Zarazua, a leader in CSCMP’s Latin America initiatives.
“As part of our growth strategy, we have signed strategic agreements with The Logistics World, the largest logistics publishing company in Latin America; Tec Monterrey, one of the largest universities in Latin America; and Conalog, the association for Logistics Executives in Mexico,” Zarazua said. “Not only will supply chain and logistics professionals benefit from these strategic agreements, but CSCMP, with our wealth of content, research, and network, will contribute to enhancing the industry not only in Mexico but across Latin America.”
Likewse, the Lisbon Roundtable marks the first such group in Portugal and the 10th in Europe, noted Miguel Serracanta, a CSCMP global ambassador from that nation.