There were many new and exciting updates in the transportation and shipping industry this month. Check out some of the top stories that made headlines during May!
Freight shipping sector to receive $100 billion funding
Congressman Alan Lowenthal has recently announced the new legislation aimed to rebuild the U.S. infrastructure. In particular, a ten-year $100 billion funding plan will serve as an investment in the freight shipping industry. According to the program, each year, more than $10 billion will be assigned to freight-related infrastructure projects. Also, it will focus on resolving freight industry issues and replacing the old infrastructure.
Read more about new legislation here.
FMCSA asks for the public feedback on the driver age pilot
Federal Motor Carrier Safety Association has recently published a proposal to allow drivers ages 18 – 20 to operate commercial motor vehicles within the state. The FMCSA Administrator, Raymond Martinez, commented, “We want input from the public on efforts that offer the potential to create more jobs in the commercial motor vehicle industry while maintaining the highest level of safety.“
Read more about FMCSA driver age pilot here.
DHL launches the first drone delivery service in China
On May 16, DHL was the first logistics company to provide a five-mile route drone delivery in China. The entire transportation took the device 8 minutes to complete, while previously the average shipping time by truck was 40 minutes.
Read more about DHL’s new air route here.
March was packed full of logistics-related news and transportation updates. We’ve summed up the most important events and trends that took place during the month:
Sober Steering Aims to Add Sobriety Tests to Steering Wheels
A Canadian company, Sober Steering, makes alcohol-detecting devices attached to steering wheels. It is striving to expand usage to North American trucking companies. For now, the use of devices spreads on steering wheels of school buses in Canada. It has successfully saved the lives of many from drivers under the influence. Read more about Sober Steering technology.
FMCSA will review HOS regulations and ELD rules
The Federal Motor Carrier Safety Administration (FMCSA) head Ray Martinez stated that the organization will review HOS rules soon with possible future changes. The information was announced at the annual Truckload Carriers Association meeting. The changes will mainly touch on HOS compliance rigidity, including the 100 air-mile “short haul” exemption, the mandatory 30-minute rest break, and more. Click here to read more about the possible HOS rules changes.
Boeing to stop moving freight on 737 MAX 8 aircraft
The company paused the operation and production of more than 4,500 Boeing 737 MAX 8 planes. The main reason for a decision is the second lethal crash of this model since October. Experts estimate these actions will cost Boeing huge amounts of money, considering the needed space to park planes and pay airline companies for a disruption. Read more about the Boeing pause here.
Ocean carriers will need to increase surcharges by 35 – 40 percent to offset IMO 2020 costs
According to a recent study, ocean carriers will have to increase fuel surcharges in 2019 to maintain margins and deal with the low-sulfur regulations costs from the International Maritime Organization (IMO) in 2020. To stay financially stable, carriers on Asia-Europe ways would need to raise surcharges by 40%, while ones routing through Asia-Americas lanes would increase fees by 33%. Read more about ocean carriers surcharge growth here.