Skip to content
Search AI Powered

Latest Stories

outbound

A house divided

Trucking interests find legislative and regulatory goals thwarted by their own fragmented coalition.

Impending retirement can have an interesting effect on a person. Take Jack Holmes, a UPS Inc. lifer who retires June 30 as head of its less-than-truckload (LTL) division. At this year's NASSTRAC shipper conference in Orlando, Fla., Holmes took the stage for the first keynote in a smart blazer, sharp slacks, spit-shined black shoes, and no socks. Was it just the Florida look, or was Holmes symbolically breaking free from the binds of a traditionally buttoned-down corporation?

Then there was Holmes' candor, which in years past might have been kept under wraps. Congress's failure to pass legislation adding 10 feet to the allowable length of twin 28-foot trailers was caused by Swift Transportation Co. and Knight Transportation Inc., two big truckload carriers that went around the industry's major trade group, which supported the measure, to persuade lawmakers to reject it, Holmes said. The railroads, the trucking industry's long-time lobbying nemesis, did not oppose the language, Holmes said. Neither, he added, did two truckload biggies, Werner Enterprises Inc. and U.S. Xpress Enterprises, even though the measure would have hurt their business by enabling LTL carriers (whom the language was designed to benefit) to handle more of their own freight, thereby reducing their need to send their overflow to the truckload guys.


All surprising stuff. Though they may be large and politically connected, it's hard to conceive of Swift and Knight literally, in Holmes' words, following right behind the American Trucking Associations' (ATA) lobbyists to undermine a proposal their own trade association had just endorsed.

During the milling-around break at the conference, some said they thought Holmes' points were a bit exaggerated. In their memory, rail interests cared less for the longer-truck measure than Holmes seemed to convey. Yet the railroads decided not to burn political capital on a battle whose outcome will have only a marginal effect on their business. They are storing up their volleys in case the truckers make another run at raising the federal gross vehicle—tractor, trailer, and cargo—weight limit from 80,000 pounds, where it has remained for 34 years.

Clarence Gooden, the president of CSX Transportation who joined Holmes on stage for the initial conference session, sat agreeably as his counterpart described his industry's decision not to fight the truck-length measure. But when asked if the railroads would give way on raising the truck-weight threshold, Gooden stated that they would not.

One couldn't help thinking that Gooden was speaking for his industry. And he may very well have been. The railroads tend to lobby with one voice, and this time it was Gooden's. The trucking industry, by contrast, has a cacophony going on, and it is proving problematic.

For truckers, part of the issue is the nature of the two beasts. ATA is an amalgamation of 50 state trucking associations, a structure that by definition makes it tough to build a unified national coalition around policy issues. The Association of American Railroads (AAR) is not beholden to state railroad groups, and its small fraternity makes it easier to achieve consensus. The railroads may scrap and claw for market share in the real world, but they seem able to subordinate their differences when they head to the Hill.

Yet it's hard to understate the significance of Holmes' comments about Knight and Swift killing the truck-length measure, especially since he was so blunt about their roles. Ironically, the provision looked like a slam-dunk to pass. LTL carriers and shipper groups lent their usual support. And this time around, the measure was backed by a former chair of the National Transportation Safety Board and a former head of the Sierra Club, both powerful endorsements of the proposal's potential environmental and safety impact.

Yet the measure died. And if Holmes is to be believed, it died at the hands of two carriers who took a different path than the association they pay to represent them. Stuff like this does not a harmonious legislative voice make.

The Latest

More Stories

autonomous tugger vehicle

Cyngn delivers autonomous tuggers to wheel maker COATS

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.

The deal was announced the same week that California-based Cyngn said it had raised $33 million in funding through a stock sale.

Keep ReadingShow less

Featured

Study: Industry workers bypass essential processes amid mounting stress

Study: Industry workers bypass essential processes amid mounting stress

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.

Keep ReadingShow less
photo of a cargo ship cruising

Project44 tallies supply chain impacts of a turbulent 2024

Following a year in which global logistics networks were buffeted by labor strikes, natural disasters, regional political violence, and economic turbulence, the supply chain visibility provider Project44 has compiled the impact of each of those events in a new study.

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.

Keep ReadingShow less
diagram of transportation modes

Shippeo gains $30 million backing for its transportation visibility platform

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.

Keep ReadingShow less
Cover image for the white paper, "The threat of resiliency and sustainability in global supply chain management: expectations for 2025."

CSCMP releases new white paper looking at potential supply chain impact of incoming Trump administration

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.

With a new white paper—"The threat of resiliency and sustainability in global supply chain management: Expectations for 2025”—the Council of Supply Chain Management Professionals (CSCMP) seeks to provide some guidance on what companies can expect for the first year of the second Trump Administration.

Keep ReadingShow less