The Federal Motor Carrier Safety Administration (FMCSA) said Friday it plans to change its formula for assessing the safety of motor carriers by replacing its three-tier rating with a single fitness determination. The action will result in an exponential increase in the number of carriers FMCSA can evaluate per year, it said.
FMCSA, a subagency of the Department of Transportation, said it will integrate on-road inspection data with the results of its carrier investigations to more effectively target its limited resources at carriers that demonstrate higher crash risks. Carriers found to be unfit to operate will be given that classification, at which time they will be ordered out of service and not reinstated until they've shown improvement, FMCSA said.
The agency plans to publish a notice of proposed rulemaking ont Thursday. Parties will have 60 days from the publication date to file comments, and will have an additional 30 days for responses.
FMCSA said a streamlined approach to safety grading will ramp up its productivity, allowing it to determine the fitness of about 75,000 carriers a month. Today, FMCSA investigates only 15,000 carriers a year, with less than half of those even receiving a safety rating, it said. There are an estimated 530,000 registered motor carriers in the U.S., according to FMCSA data.
The agency's proposal is its latest effort to remove as many unfit truckers from the road as possible with a relatively modest number of inspectors. In 2010, FMCSA rolled out "Compliance, Safety, and Accountability" program (CSA), which grades carriers based on roadside performance data collected in seven categories and then assigns performance scores under what is known as a "Safety Measurement System," or SMS. Industry has argued for the past six years that the scores are based on flawed methodology that tars safe carriers with the same broad brush as unsafe ones.
The five-year federal transport-spending bill signed into law last month directed FMCSA to commission a three-year study by the Transportation Research Board (TRB) of the CSA program. The bill also required FMCSA to remove SMS scores and analysis from public view, but allowed the raw data used to compile the scores to remain.
FMCSA said Friday that, under its proposal, a carrier's fitness would be based on its performance under five of the seven categories, along with the results of carrier investigations and crash reports. The proposed rule would require written proof of a "significant pattern of noncompliance" for a carrier to fail in one of the categories. For example, the agency would require a minimum of 11 inspections with violations in a single "Behavior Analysis and Safety Improvement Category" (BASIC) within a 24-month period before a motor carrier could be eligible to be identified as "unfit." If a carrier's performance meets or exceeds the failure standards in the rule, it would then fail that BASIC, FMCSA said.
In a nod to industry claims that carriers are graded on a curve that includes others, FMCSA said a carrier's status would not be affected by the performance of other truckers.
The Alliance for Safe, Efficient, and Competitive Truck Transportation (ASECTT), a group of shippers, carriers, and freight brokers that has fought the FMCSA's safety-rating process for years, said in a statement Friday that the agency proposed a "quickie rule" in an attempt to get around Congressional directives. FMCSA is also thwarting Congressional intent by improperly using data generated in the SMS, the group alleged. The group said it is likely on firm legal grounds to challenge the FMCSA measure, but said it would withhold more concrete judgment until after a full review.
ASECTT said FMCSA is allowing parties only two months to respond to a 267-page proposal that has been in the works since the agency first proposed revamping the fitness determination process in 2007.
The group added that FMCSA is putting the "cart before the horse" by issuing its proposal more than two years before the TRB's deadline for completing its analysis of the CSA methodology. Forcing all parties to wait for TRB's report will be a waste of public and private resources if the board does the expected and fails to validate the CSA methodology, ASECTT said.
The “series B” funding round was financed by an unnamed “strategic customer” as well as Teradyne Robotics Ventures, Toyota Ventures, Ranpak, Third Kind Venture Capital, One Madison Group, Hyperplane, Catapult Ventures, and others.
The fresh backing comes as Massachusetts-based Pickle reported a spate of third quarter orders, saying that six customers placed orders for over 30 production robots to deploy in the first half of 2025. The new orders include pilot conversions, existing customer expansions, and new customer adoption.
“Pickle is hitting its strides delivering innovation, development, commercial traction, and customer satisfaction. The company is building groundbreaking technology while executing on essential recurring parts of a successful business like field service and manufacturing management,” Omar Asali, Pickle board member and CEO of investor Ranpak, said in a release.
According to Pickle, its truck-unloading robot applies “Physical AI” technology to one of the most labor-intensive, physically demanding, and highest turnover work areas in logistics operations. The platform combines a powerful vision system with generative AI foundation models trained on millions of data points from real logistics and warehouse operations that enable Pickle’s robotic hardware platform to perform physical work at human-scale or better, the company says.
Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.
Those negative numbers are nothing new—the TCI has been positive only twice – in May and June of this year – since April 2022, but the group’s current forecast still envisions consistently positive readings through at least a two-year forecast horizon.
“Aside from a near-term boost mostly related to falling diesel prices, we have not changed our Trucking Conditions Index forecast significantly in the wake of the election,” Avery Vise, FTR’s vice president of trucking, said in a release. “The outlook continues to be more favorable for carriers than what they have experienced for well over two years. Our analysis indicates gradual but steadily rising capacity utilization leading to stronger freight rates in 2025.”
But FTR said its forecast remains unchanged. “Just like everyone else, we’ll be watching closely to see exactly what trade and other economic policies are implemented and over what time frame. Some freight disruptions are likely due to tariffs and other factors, but it is not yet clear that those actions will do more than shift the timing of activity,” Vise said.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index indicating the industry’s overall health, a positive score represents good, optimistic conditions while a negative score shows the inverse.
Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.
Broken into geographical regions, the European Union has a robot density of 219 units per 10,000 employees, an increase of 5.2%, with Germany, Sweden, Denmark and Slovenia in the global top ten. Next, North America’s robot density is 197 units per 10,000 employees – up 4.2%. And Asia has a robot density of 182 units per 10,000 persons employed in manufacturing - an increase of 7.6%. The economies of Korea, Singapore, mainland China and Japan are among the top ten most automated countries.
Broken into individual countries, the U.S. ranked in 10th place in 2023, with a robot density of 295 units. Higher up on the list, the top five are:
The Republic of Korea, with 1,012 robot units, showing a 5% increase on average each year since 2018 thanks to its strong electronics and automotive industries.
Singapore had 770 robot units, in part because it is a small country with a very low number of employees in the manufacturing industry, so it can reach a high robot density with a relatively small operational stock.
China took third place in 2023, surpassing Germany and Japan with a mark of 470 robot units as the nation has managed to double its robot density within four years.
Germany ranks fourth with 429 robot units for a 5% CAGR since 2018.
Japan is in fifth place with 419 robot units, showing growth of 7% on average each year from 2018 to 2023.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.