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.
In 1994, President Bill Clinton signed legislation pre-empting state economic regulation of the interstate trucking industry. In 1995, the federal pre-emption statute was extended to the freight brokerage segment, completing an extraordinary 17-year arc that took U.S. freight transportation from a regulated utility to a mostly free-market creature.
However, to hear some trucking companies—mostly large ones—tell it, there are those who either missed the pre-emption memo, or have ignored it. Those purported outliers are appellate court judges in the 9th Circuit who ruled in 2014 that California's regulations governing meal and rest times for truckers were not subject to pre-emption because the policies did not bind motor carriers to specific prices, routes, or services, and didn't interfere with the competitive market forces in the industry.
The court's ruling came despite claims that California's break laws do impact a carrier's ability to compete because the carrier must integrate driver rest times into a myriad of decisions that determine a truck's delivery time and speed, and prices that are set to meet the customer's requirements.
Big trucking companies and their advocates petitioned the U.S. Supreme Court to take up the case, but the High Court declined. Frustrated, they went to Capitol Hill for a solution. They lobbied Rep. Jeff Denham, R-Calif., to include an amendment to last year's transport-spending bill to block 22 states with driver meal and rest times on their books from imposing laws or regulations on drivers operating in interstate commerce. But the provision was dropped from the final version, known as the FAST Act, which became law in December.
Undeterred, pre-emption supporters got language embedded in the recently introduced "Aviation Innovation, Reform, and Reauthorization Act of 2016" that, similar to the Denham amendment, would grant federal power over state and local trucking laws. The House Transportation and Infrastructure Committee is scheduled to vote today on the bill, whose primary function is to authorize six years of funding for the Federal Aviation Administration (FAA). It would also establish a nonprofit corporation outside of the federal government tasked with modernizing air-traffic control services, a provision that drew strong criticism from Democrats on the Committee at Capitol Hill hearings yesterday.
The truck pre-emption provision, which appears in the bill as "Section 611," has drawn the wrath of those who would typically oppose such language: Namely the Teamsters union and the Owner-Operator Independent Drivers Association (OOIDA), which lobbies for small fleets, many of which are single-driver operations.
The Teamsters, which suffered one of its worst legislative defeats in years when the 1994 pre-emption bill became law, have vowed to defeat any effort to override the powers of the 22 states to set driver meal- and rest-break rules. The Section 611 provision jeopardizes highway safety by forcing drivers to spend as much time as possible behind the wheel, limits how drivers can be paid, and fails to compensate them for time spent performing such procedures as pre-trip inspections that don't involve driving time, the union said in a statement late last week. The provision "overrules the fundamental principle that all workers should be paid for the time they work," said James P. Hoffa, the union's general president.
OOIDA echoed the Teamsters concerns, saying the provision would do away with driver compensation for any type of work that didn't involve driving. But in articulating what could be opponents' bigger concern, OOIDA said the provision could effectively gut the states' future roles in dealing with these types of issues. Todd Spencer, the group's executive vice president and point man on Capitol Hill, said although the provision is "intended as a response to the California meal- and rest-break law, its implications go well beyond that state."
Sean McNally, a spokesman for the American Trucking Associations (ATA), which represents big truckers, said the provision "clarifies that Congress intended the trucking industry to be governed by a single set of federal rules and break requirements" created by the Federal Motor Carrier Safety Administration (FMCSA), the unit of the Department of Transportation that oversees truck safety. Lawmakers said Congress "did not intend carriers who pay drivers by the mile, or by the load, to have to change those practices depending on what state they're in," McNally said.
FMCSA already requires drivers to pull off for at least 30 minutes in their first eight hours of driving.
There is no language in Section 611 that eliminates breaks for truckers, McNally said, noting that federal law authorizes drivers to pull off the road if they are fatigued. The provision also doesn't compel carriers to short-change drivers, he said. "On (the) contrary, it expressly requires that carriers paying drivers by the mile or by the load ensure that drivers receive as much [as] or more than they would have been entitled to had they been paid by the hour," he said.
Jim Mullen, executive vice president and general counsel of Omaha-based truckload and logistics giant Werner Enterprises Inc., said he was surprised by OOIDA's comments, believing that the group supported the provision. Mullen added that the language only applies to driver employees, not owner-operators. When asked if OOIDA was aware of the distinction, Mullen replied, "We tried to tell them that. All we were met with was blank stares."
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.”