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.
Teamsters union General President James P. Hoffa has fired Sean M. O'Brien as head of the union's small-package division and lead contract negotiator at UPS Inc. and its UPS Freight less-than-truckload (LTL) unit.
The move triggered a blistering response from O'Brien, who had been tapped for the high-profile role less than seven months ago. In a letter to Hoffa dated Wednesday, O'Brien said he was never given the latitude to work toward getting good contracts for the 268,000 unionized UPS and UPS Freight employees; the five-year contracts expire next Aug. 31. The small-package contract, which covers about 257,000 UPS workers, is the largest collective-bargaining agreement in North America.
In particular, O'Brien chafed at being "taken to the woodshed" by Hoffa or one of his non-elected "minions" each time he reached out to a UPS local that had opposed Hoffa in last November's Teamster general election.
Hoffa, 76, won re-election for a fifth time, but his margin of victory over challenger Fred Zuckerman, head of Local 89 in Louisville, Ky., was very narrow. Notably, Hoffa did not fare well among UPS Teamsters, by far the largest single member bloc in the 1.3-million-member union.
O'Brien has been replaced by Denis Taylor, the principal officer of Local 355 in Baltimore. Taylor started with the Teamsters as a package car driver for UPS.
In a statement, the Teamsters said the move to replace O'Brien was made "in the best interests of the members at UPS," and that the decision was not politically motivated. Taylor is a "tremendous labor leader" who knows UPS "inside and out," according to the statement.
The removal of O'Brien, who heads the influential Local 25 in Boston and is the union's eastern region vice president, lays bare long-simmering fissures between the Washington-based international union, which Hoffa heads, and Teamster officials located beyond of the international's direct sphere of influence. In his letter, O'Brien said he wanted to include local representatives who had opposed Hoffa in contract negotiating strategy, but that he was blocked from doing so because it was "considered treasonous."
O'Brien said the union is being run by non-elected "full-time political hacks" who have never been Teamsters and whom other Teamster officials have complained about for years. "It is a situation which you tolerate, and I don't have the confidence that you have the will to change," O'Brien wrote.
In perhaps the most damning accusations, O'Brien said certain staff members at the international union have turned the UPS division and the union in general "into their own personal playground" and that the "games they are pursuing come at the expense of the membership." The only name mentioned in the letter was that of Todd Thompson, who serves as an executive assistant to Hoffa.
"Sadly, you have chosen the route of least resistance and continue to allow ... Todd Thompson and others (to) run the union so you don't have to," O'Brien wrote to Hoffa.
Unless the status quo changes, it will be impossible to fashion the best possible contract for members employed at UPS, O'Brien warned.
Ken Paff, national organizer for the dissident Teamsters for a Democratic Union (TDU), and a longtime Hoffa opponent, said O'Brien had begun taking a more aggressive stance toward UPS, and had angered Hoffa by publicly declaring that Zuckerman, the firebrand head of Local 89 in Louisville, be on the union's national negotiating committee for the upcoming UPS contracts. Local 89 represents UPS employees at the company's global sort hub known as "Worldport," and has more UPS members than any Teamster local.
"Hoffa didn't want anyone leading contract negotiations that he couldn't control," said Paff in a statement on TDU's website. With O'Brien out, "UPS and UPS Freight Teamsters need to be ready to fight for themselves," he added.
Paff said many Teamsters believe that Hoffa has become too conciliatory toward UPS management, and that he has not fought hard enough to win good contracts for the rank-and-file. Paff has said O'Brien is positioning himself to succeed Hoffa, and his stature would rise or fall depending on how UPS Teamsters perceived the outcome of the contract negotiations.
Zuckerman said in a statement "I don't care what side of the fence you were on in the last election. This is deplorable when you remove the lead negotiator because he is willing to stand up for the members and against the company."
Editor's note: An earlier version of this story mis-stated James P. Hoffa's age. DC Velocity regrets the error.
A move by federal regulators to reinforce requirements for broker transparency in freight transactions is stirring debate among transportation groups, after the Federal Motor Carrier Safety Administration (FMCSA) published a “notice of proposed rulemaking” this week.
According to FMCSA, its draft rule would strive to make broker transparency more common, requiring greater sharing of the material information necessary for transportation industry parties to make informed business decisions and to support the efficient resolution of disputes.
The proposed rule titled “Transparency in Property Broker Transactions” would address what FMCSA calls the lack of access to information among shippers and motor carriers that can impact the fairness and efficiency of the transportation system, and would reframe broker transparency as a regulatory duty imposed on brokers, with the goal of deterring non-compliance. Specifically, the move would require brokers to keep electronic records, and require brokers to provide transaction records to motor carriers and shippers upon request and within 48 hours of that request.
Under federal regulatory processes, public comments on the move are due by January 21, 2025. However, transportation groups are not waiting on the sidelines to voice their opinions.
According to the Transportation Intermediaries Association (TIA), an industry group representing the third-party logistics (3PL) industry, the potential rule is “misguided overreach” that fails to address the more pressing issue of freight fraud. In TIA’s view, broker transparency regulation is “obsolete and un-American,” and has no place in today’s “highly transparent” marketplace. “This proposal represents a misguided focus on outdated and unnecessary regulations rather than tackling issues that genuinely threaten the safety and efficiency of our nation’s supply chains,” TIA said.
But trucker trade group the Owner-Operator Independent Drivers Association (OOIDA) welcomed the proposed rule, which it said would ensure that brokers finally play by the rules. “We appreciate that FMCSA incorporated input from our petition, including a requirement to make records available electronically and emphasizing that brokers have a duty to comply with regulations. As FMCSA noted, broker transparency is necessary for a fair, efficient transportation system, and is especially important to help carriers defend themselves against alleged claims on a shipment,” OOIDA President Todd Spencer said in a statement.
Additional pushback came from the Small Business in Transportation Coalition (SBTC), a network of transportation professionals in small business, which said the potential rule didn’t go far enough. “This is too little too late and is disappointing. It preserves the status quo, which caters to Big Broker & TIA. There is no question now that FMCSA has been captured by Big Broker. Truckers and carriers must now come out in droves and file comments in full force against this starting tomorrow,” SBTC executive director James Lamb said in a LinkedIn post.
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."