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 Teamsters union, looking to rebuild its membership rolls, has expanded its organizing efforts to reach workers at logistics companies outside the union's traditional niches of trucking, parcel, and airlines.
Jeff Farmer, the union's director of organizing, is spearheading the initiative. Farmer, 63, joined the Teamsters in 2002 to build an international department to support the union's traditional grass-roots work. In an interview last month, Farmer said the Teamsters' strategy will be "focused primarily on transportation and the global supply chain." Farmer said that the Teamsters organization plans to leverage its expertise and resources across transport segments to hit companies from the supply chain's first mile to the last.
The Teamsters have long asserted that the supply chain is a logical extension of its organizing domain, according to Kate Bronfenbrenner, director of labor education research at Cornell University's School of Industrial and Labor Relations. The union has "been thinking in a supply chain model for some time," she said yesterday in an interview.
The effort is also designed to beef up the union's membership levels, which have shrunk from about 2.1 million at their peak in 1976 to about 1.4 million today. A large part of the erosion has come from the once-mighty freight division, which prior to motor carrier deregulation in 1980 boasted a membership of about 400,000, but is now at between 30,000 and 75,000, depending on the source of the estimates. The division has been battered for more than 35 years by trucking bankruptcies, consolidations, and the rise of regional non-union carriers.
Thousands of U.S. supply chain workers are unaffiliated with a labor union, and all are free to join one. However, many port drivers and warehouse workers function as independent contractors, and a unit of contractors would not be entitled to the same privileges and protections accorded a regular union bargaining unit under the National Labor Relations Act (NLRA), the 1935 statue that governs labor relations in all industries except railroads and airlines.
For example, an employer is not under the same obligation to collectively bargain with a union over contract terms for an independent contractor that it would be to bargain over issues affecting its regular employees. Also, an independent contractor who goes on strike would not be protected from employer reprisals under the NLRA. In addition, contractors that organize could technically be in violation of federal anti-trust laws because they are legally small businesses.
Farmer acknowledged the difficulties his organizing team faces in overcoming the legal challenges, as well as capturing a worker universe that is as geographically dispersed and market fragmented as supply chain workers. For those reasons, he said, the Teamsters are especially focused on supporting workers who claim they've been misclassified as contractors even though they operate in a de facto manner as employees. Workers allege that companies illegally engage in worker misclassification to avoid paying market wages and benefits, and to push all of the operating costs onto the workers.
Beyond what the Teamsters say is an issue of basic worker fairness, those workers who enter the fold as company employees would gain the protections under labor law that were denied to them as contractors.
In recent years, the courts and the National Labor Relations Board have adopted a labor-friendly interpretation of what constitutes a company employee. In one case, a unit of Memphis-based giant FedEx Corp. agreed to a $228 million settlement with a group of California drivers after the unit was dealt several legal setbacks and considered any further appeals to be counterproductive. The Teamsters are currently fighting XPO Logistics Inc., the Greenwich, Conn.-based transport and logistics behemoth, over allegations that port drivers at XPO Cartage Inc., which had been part of intermodal provider Pacer International before XPO acquired Pacer in 2014, were misclassified as contractors.
The battle over misclassifications is just one front of what is expected to be an all-out organizing war with XPO. The company, under the leadership of Bradley S. Jacobs, its founder, chairman, and CEO, has acquired 17 companies over the past five years, dramatically expanding its footprint to touch virtually all aspects of logistics. Besides being a natural organization target because of its exposure to so many facets of the business, XPO's 2015 acquisition of unionized French trucking and logistics giant Norbert Dentressangle S.A. opens up a "vast arena" of opportunity to collaborate with the 15 labor councils representing ex-Dentressangle workers who are now part of XPO in nine European countries, Farmer said.
In Jacobs, Farmer and the Teamsters are facing an implacable foe. Jacobs told an industry conference earlier this week in Long Beach that he doesn't "believe in the Teamsters," adding that he sees no value in what the union could bring to XPO or its workers. At XPO, "99.5 percent (of the company) is union-free, and will likely remain union-free," he said.
Jacobs' wrath that day appeared to center on the protests by about 100 people outside the convention center where he made the keynote presentation. Jacobs contrasted the Teamsters' raucousness with the "cordial relationship" he said that XPO enjoys with its workers councils in Europe, which he said behave in a respectful manner toward management.
XPO and the Teamsters are likely to see more of each other. XPO's less-than-truckload (LTL) workers, virtually all of whom were former employees of Con-Way Freight, the LTL unit of parent Con-Way Inc. that XPO bought in September 2015, have voted to accept Teamster representation at terminals in Miami; North Haven, Conn.; and Philadelphia. XPO has accepted the election results in those cities, but there are no contracts in place at any of them. The Teamsters also won elections at facilities in Los Angeles; Laredo, Texas; and Aurora, Ill. a Chicago suburb; however, XPO has filed objections, and the results have yet to be certified. The company prevailed in petitions filed for representation in Birmingham, Ala., and West Chester, Pa., about 30 miles west of Philadelphia.
The Teamsters' plans to broaden its industry and geographical reach come at a potentially pivotal time for U.S. and global logistics networks. Nationalist movements in the U.S. and Europe threaten to reshape international trade patterns and disrupt supply chains around the world. The push for automation both on the road, in terms of autonomous vehicles, and in the warehouse and distribution center put workers' jobs in jeopardy. Through all this, the multi-national corporation, while in retreat, is still very much a force. And the model does not encourage union representation.
The Teamsters "are uniquely positioned in the global supply chain" to extend the union's organizing influence, Farmer said. He acknowledged, however, that the current climate represents "a time of real change and challenges."
Note: A question-and-answer interview with Jeff Farmer of the Teamsters union will appear in DC Velocity's April issue.
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.”