There were many new and exciting transportation updates in the shipping industry last month. Check out some of the top stories and transportation updates in October!
Transportation Updates: October 2019
UPS prepares to handle record holiday sales
Online shopping gets serious, and UPS is preparing to handle the record sales period in the 2019 – 2020 shopping season. Postal service will additionally hire 100,000 seasonal workers and build automated facilities. UPS is also planning to add equipment to its fleets to handle more packages. According to the forecast, sales will grow 5 percent since the last year. The service plans to deliver 32 million packages a day and handle 400,000 packages per hour. Read more here.
DOT initiates an audit of FMCSA oversight on driver disqualifications
The U.S. Department of Transportation’s Office of Inspector General has launched an audit of the Federal Motor Carrier Safety Administration’s oversight of truck driver disqualifications. This audit is caused by a lethal commercial vehicle crash involving the driver. The crash resulted in an internal investigation by the Massachusetts Registry of Motor Vehicles (RMV). The purpose of the audit is to make sure driver licensing agencies are in compliance with commercial driver license regulations. Read more here.
ATA’s truck tonnage index increases 3.5% above September 2018
Truck tonnage grew 3.5% in September, matched with last years levels, according to American Trucking Associations’ For-Hire Truck Tonnage Index. In September, the index reached 117.6 and was 117.3 in August. “This was the first month in 2019 that we did not see a significant increase or decrease in tonnage,” stated Bob Costello, chief economist at ATA, referring to the steady rise of 0.2% over August. Read more here.
The U.S. and China settle the first-stage agreement
After the 18-month ongoing trade war, the U.S. and China finally reached an agreement on key points of trade arrangements. On October 11, President Donald Trump said he and Xi Jinping can sign the partial deal starting next month. President Trump also stated China will adjust intellectual property measures and concessions in terms of financial services and currency, as well as increase purchases of U.S. agricultural commodities. On the U.S. side, tariff delay is planned as soon as the agreement is finalized. Read more here.
There were many new and exciting updates in the shipping industry last month. Check out some of the top stories and transportation updates in September!
Transportation updates in September 2019
Amazon to start a logistics business
The e-commerce mogul has announced it’s a plan to start a business in the logistics industry. Amazon wants to develop its own delivery fleet by renting aircrafts and launching an employee support program. The company is offering $10,000 to the workers so they can start their shipping business. “I think Amazon has stated that they’re now a competitor to the transport industry. FedEx has clearly viewed them as an increasing competitor following their recent moves,” – said Ken Hoexter, a research analyst at Bank of America. Read more here.
Holiday season begins: The U.S. ports admit record freight volumes
As the holiday season rolls out, the largest ports are seeing an increase in inbound freight since August. The Port of Oakland states a 3.1 percent increase for imports and 1 percent for export freight. The Port of Los Angeles Executive Director, Gene Seroka, commented, “The final months of 2018 ended with an extraordinary influx of imports to beat expected tariffs on China-origin goods. We don’t expect to see that kind of volume in the months ahead. We need a negotiated settlement of the U.S.-China trade war to restore global trade stability.” Read more here.
IMO 2020: Experts expect oil price volatility and an increase in freight costs
Effective January 1, 2020, the International Maritime Organization’s low-sulfur mandate will become valid. Logistics experts believe it can lead to significant disruptions in the industry, including freight cost increase and price volatility. “The industry is still in a financial tailspin since the financial crisis, but the technology is ready and mandates being enforced by each country will make this a reality,” said Jigar Shah, co-founder, and president of Generate Capital. Read more here.
There were many new and exciting updates in the shipping industry last month. Check out some of the top stories and transportation updates in August!
China & U.S. trade war: President Trump raises tariffs
On August 23, President Trump responded to Beijing’s retaliation with raising tariffs for China. Now, taxes on $250 billion of imports will rise from 25 percent to 30 percent starting October 1. Also, effective September 1, the duties for $300 billion in Chinese imports will increase to 15 percent instead of 10 percent. To read more about the tariffs, click here.
Truckers respond to the new HOS regulations
After the latest tweak in the hours-of-service rules, truckers are suggesting changes for more flexibility. Currently, truck drivers have a ten-hour period for rest with a suggested eight hours of rest and two hours of non-driving time. Also, they have a mandatory 30-minute break. In particular, many drivers wanted to split the 30-minute break into two smaller intervals, and be more flexible with the way they use their time off. To read more, click here.
Truck tonnage to increase by 25.6 percent by 2030
The new report by the American Trucking Association stated truck tonnage to increase by 25.6 percent over the next decade. Responsively, the revenue is expected to go 54 percent up and reach $1.6 trillion. Chris Spear, ATA President, spoke up on the importance of adjusting to market growth: “Freight Forecast clearly lays out why meeting challenges like infrastructure and workforce development are so critical to our industry’s success”. To read more, click here.
Truck wait times at border are increasing
Truck wait times at the United States – Mexico border are beginning to increase. Industry professionals say the longer wait times are a result of slow border inspection routines and truck drivers waiting to load and unload freight at docks and intermodal facilities. To read more about the border congestion, click here.
There were many new and exciting updates in the shipping industry last month. Check out some of the top stories and transportation updates in July!
FMCSA Offers a New Rule on CDL Home State Requirement
The Federal Motor Carrier Safety Administration introduces a new rule that will allow truck drivers to get a commercial driver’s license (CDL) outside of their state of residence. The new proposal was created to reverse the current requirement to register in their birthplace state. This way, FMCSA tries to simplify the application procedure for drivers entering the market. Read more here.
New ATA Report: Driver Shortage is Going to Increase Over the Next Decade
A new report by the American Trucking Association shed light on the current state of truck driver workforce market and highlighted forecasts of shortage growth over the next ten years. The study indicates the industry will need 1.1 million truck drivers hired throughout the next decade, which equals 25 percent of new hires. Read more here.
eBay to Present New ‘Managed Delivery’ Service by 2020
The retail giant eBay announced its plan to launch a new delivery system for high-volume shippers. The main concept suggests that large sellers will be able to store, pack and deliver their products within the network of specifically located facilities and vendors. Managed Delivery is estimated to be live in 2020 and reduce delivery times all over the country. Read more here.
Tensions sharpen in Strait of Hormuz: Two British Ships Seized
Strait of Hormuz, an extremely important economical area between the Persian Gulf and Oman Gulf with $1.2 billion worth oil transported each day is in a tense situation. In particular, Iran is accused of seizing two British tankers and attacking a few more ships, as well as shutting down the U.S. drone. Read more here.
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.
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.“
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.
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.
PLS Logistics Blog
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