Tag Archives: trending updates

Trending Transportation Updates: June 2020

There were many new transportation updates in the shipping industry last month. Check out some of the top stories and transportation updates in June 2020!

Trending Transportation Updates: June 2020

May Truck Tonnage Drops 9.6% Year-Over-Year

According to the ATA report, the May truck tonnage index dropped 9.6% compared to the previous years. This is the largest year-over-year drop in a decade. However, it is an improvement from the April sequential result of a 10.4% fall. Bob Costello, the chief economist in ATA, isn’t too worried: “While tonnage fell in May, even though other economic indicators like retail sales and housing starts rose, I’m not overly concerned”. Read more here.

FMCSA extends HOS emergency once again

With President Trump issuing the national emergency declaration in response to coronavirus, FMCSA has reformed HOS rules to align with the current industry conditions. Last month, a HOS emergency was extended until June 14 but was extended for one more month with an estimated expiration date on July 14. “This extension addresses national emergency conditions that create a need for immediate transportation of essential supplies and provides necessary relief from the FMCSR’s (Federal Motor Carrier Safety Regulations) for motor carriers and drivers,” said FMCSA. Read more here.

The first electric truck sales mandate approved in California

In a long-awaited vote, California Air Resources Board (CARB) approved an electric truck mandate that will require medium- and heavy-duty truck manufacturers to sell a growing percentage of electric vehicles starting in 2024. This is the first rule of its kind in the world. The mandate is called the Advanced Clean Truck rule. According to the new rule, by 2035, about 75% of Class 8 big rigs sold will need to be zero-emission. “Fundamentally, the point of this regulation is not to simply require things, it is to push the market more quickly, transitioning away from fossil fuels as fast and effectively as we can,” – said Andy Schwarz, one of the Tesla executives. Read more here.

Earthquakes shake the Southern states

On June 24, the Southern California area was rattled by a 5.8 magnitude earthquake. The epicenter of an earthquake was in Cartoga, Owens Valley region. Earlier this month, a much stronger 7.4 magnitude quake hit Southern Mexico, causing at least 6 fatalities and material damage. It is yet unknown if the wave of earthquakes will continue in the region, but some seismologists expect more rattles. Read more here.

Trending Transportation Updates: May 2020

There were many new transportation updates in the shipping industry last month. Check out some of the top stories and transportation updates in May 2020!

Trending Transportation Updates: May 2020

FMCSA presents the final HOS rule update

Over the recent months, the Federal Motor Carrier Safety Administration had updated the HOS rules several times before publishing its final version on May 14. The main purpose of the update is to increase flexibility for truck drivers. To finalize the rules, FMCSA reviewed more than 8,000 comments online and during offline meetings. Here are some key outtakes from the update:

  • The final rule requires having a break after 8 non-stop driving hours, provides more flexibility for the 30-minute break. Now, the break can be completed by any status mark, whether it’s on duty, not driving, off duty, or berth.
  • The drivers are now allowed to adjust their sleeper berth exception by choosing how to split it: 8/2 or 7/3 hours of driving and rest respectively. None of these periods count against the driver’s 14-hour driving window.
  • The maximum driving hours for short-haul exceptions can now be extended from 12 to 14 hours, and the distance limit can be increased from 100 air miles to 150.

Read more about the final HOS rule update here.

April truck tonnage down 11.3%, the largest year-over-year drop since 2009

According to the report by the American Trucking Association, the truck tonnage volumes are down by 11.3% in April, showing the biggest year-by-year decline since 2009. The tonnage is calculated on surveys of ATA members. Obviously, such a substantial decline is caused by the COVID-19 pandemic. Bob Costello, ATA Chief Economist, commented: “April’s monthly decline was the largest in 26 years when there was a labor strike in April 1994. Considering that April factory output and retail sales plummeted, the large drop in truck freight is not surprising.” Read more here.

Meat supply chains disrupted by the coronavirus

The coronavirus pandemic has disrupted almost every industry, and the meat industry in the U.S. appeared to be one of the hardest hit in recent times. Due to the outbreak of the virus, numerous meat processing plants had to close across the U.S. and Canada. The sequence of closings was caused by 940 workers testing positive for the COVID-19 in just one Cargill beef plant in Alberta, Canada. Since the factory is a major meat exporter in the U.S., the whole meat supply chain and distribution was halted. Combined with a 40% spike in demand for meat products across the consumers in April, this leaves farmers and distributors in a challenging situation. Generally, more than 10,000 cases were reported across the industry workers. Read more here.

Trending Transportation Updates: April 2020

There were many new transportation updates in the shipping industry last month. Check out some of the top stories and transportation updates in April 2020!

Trending Transportation Updates: April 2020

Economy to reopen due to President Trump state-issued guidelines

On April 16, President Trump announced that lockdown measures will be loosening for businesses. The reopening of the U.S. economy will take place on a patchwork basis, meaning that each state governor will define the pace and timeline to take off restrictions. Governors can start getting the state’s economy back to normal on May 1, or earlier. Read more about the reopening plan here.

Oil prices go negative for the first time in history

Monday, April 21, was probably the worst day the oil market has ever seen. For the first time in history, oil prices went below $0 for barrel and kept falling negative. Such a crash is explained by a huge discrepancy between supply and demand. Due to reduced flights and road traffic, the demand for fuel and other oil products had drastically lowered, causing the market to collapse. Read more about oil prices fall-off here.

Truckload linehaul rates fall 9.2% last month

According to the Cass Freight Index, shipment volumes went down 9.2% since March, becoming the most substantial drop since the financial crisis in 2008. “This ends any chance of 2020 seeing year over year growth in domestic U.S. shipments and freight costs. This has quickly gone from a China production concern to a U.S. (and global) consumer spending problem. No business, no jobs, and no income for many leads to much less freight moving around,” David Ross, Stifel Financial equity research analyst, says. Read more about truckload rates here.

FMCSA expands emergency response further

As a response to the COVID-19 situation, FMCSA has issued an emergency declaration for all states, temporary relieving motor carriers, and drivers from Parts 390 through 399 of the Federal Motor Carrier Safety Regulations (FMCSR). The declaration was first released on March 13 and now was extended till May 15. According to an update that went into effect on April 8, drivers are not allowed to operate while fatigued or impaired and must continue to comply with state regulations regarding traffic violations and speeding. Read more about emergency response extension here.

Trending Transportation Updates: March 2020

There were many new transportation updates in the shipping industry last month. Check out some of the top stories and transportation updates in March 2020!

Trending Transportation Updates: March 2020

Senate approves $2 trillion stimulus bill

To avoid the complete breakdown of the economy, the US Senate and the White House have struck a deal on a $2 trillion stimulus package. After several days of negotiations, Congress has finally reached a risky and one of the most expensive decisions in the financial history of the US. According to legislation, an aid package will cover payments for individuals, families, and cover loans for distressed businesses. Read more here.

FMCSA extends the rule-changing order

On March 13, FMCSA postponed Hours of Service regulations in all states and Washington D.C. The exemption was applicable for drivers who are directly providing essential supplies for the COVID-19 pandemic. The waiver got an expansion on March 18, and now also includes drivers who are hauling paper products, fuel, and items required for the manufacturing of essential materials. Read more here.

USPS will get $10 billion from a newly approved stimulus package

Global posting services, including the USPS, UPS, and FedEx, warned about the severe impact on shipment delivery as the coronavirus outbreak worsens. Despite hopes of getting as much as $25 billion, the U.S. Postal Service (USPS) will get a $10 billion line of credit under the U.S. Senate’s $2.1 trillion coronavirus economic relief legislation approved on March 25. Read more here.

CVSA puts off International Roadcheck from May to an undetermined date

The CVSA International Roadcheck, that was to take place from May 5 – 7, is postponed to an undecided date. The annual testing procedure includes an advanced check of truck and equipment safety and drivers’ compliance with CVSA requirements. CVSA President John Samis commented: “With last year’s federal electronic logging device full-compliance mandate in the U.S., the Alliance decided that this year’s International Roadcheck would be the perfect opportunity to revisit all aspects of roadside inspection driver requirements.” Read more here

Trending Transportation Updates: October 2019

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.

Trending Transportation Updates: August 2019

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.

Trending Transportation Updates: July 2019

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.

Trending Transportation Updates: June 2019

There were many new and exciting updates in the shipping industry last month. Check out some of the top stories and transportation updates in June!

Transportation Updates: June

Roadcheck 2019 Reveals Violations

The International Roadcheck 2019 is the largest inspection on the commercial motor vehicles in North America. This year, a 72-hour truck review took place from June 4th to June 6th. The theme of inspection is steering and suspension systems. According to the recent news, hundreds of drivers and trucks are now out of service due to uncovered violations. Despite the inspection, many drivers were understanding and thankful for safety efforts. Read more here.

US Supreme Court declines to accept the challenge to steel tariffs

After President Trump approved the new steel tariffs, the representatives brought the challenge to the Supreme Court because of the tariffs being ‘unconstitutional’. For now, the Court refused to accept the challenge. “It is rare for the Supreme Court to agree to hear a case before a ruling by the Court of Appeals, and our appeal will now be heard by the U.S. Court of Appeals for Federal Circuit,” Alan Morrison, the counsel of record for the case, told Supply Chain Dive in an email. “We continue to believe that we have a strong legal case that Section 232 is unconstitutional”-, said Tim Meyer, the law professor at Vanderbilt University and counsel for the petitioners. Read more here.

H&M will be the first company to test Maersk’s carbon neutral biofuel

Over the recent year, Maersk has been working on the development of the carbon-neutral biofuel to reduce carbon footprint. It was announced that H&M is the first company to participate. The tested biofuel consists of used cooking oil and heavy oil, and according to Maersk, reduces emissions by 85 percent compared to regular bunker fuel. Read more here.

The US declares tariffs on all imports from Mexico effective June 10

According to a statement from President Donald Trump, the U.S. will force tariffs of 5% on all goods imported from Mexico starting June 10. The decision is meant to address an immigrational issue or ‘an emergency at the Southern Border’. President Trump stated that is Mexico will not reduce the number of immigrants entering the States, the tariffs will rise by 25 percent by October. Read more here.

Trending Transportation Updates: April 2019

There were many new and exciting transportation updates the transportation and shipping industry last month. Check out some of the top stories that made headlines during April!

Amazon has bought Canvas robotic systems

Famous for the use of different robotic devices from Google, Toyota and Kiva systems, Amazon acquires Canvas systems. Founded just in 2015, Canvas has already demonstrated robust innovation with its focus on cart fulfillment devices. “We are inspired by Canvas Technology’s innovations, and share a common vision for a future where people work alongside robotics to further improve safety and the workplace experience,” the Amazon spokesperson said. To read more about Canvas systems acquisition, click here.

DOT assigned $900 billion for the transportation grant program

Recently, the United States Department of Transportation (DOT) has launched a Notice of Funding Opportunity (NOFO) for $900 million in elective grant capital through the BUILD program (Better Utilizing Investments to Leverage Development). “These BUILD Transportation grants will provide needed infrastructure investment to better connect rural and urban communities around our nation,” announced the U.S. Secretary of Transportation Elaine L. Chao. To read more about the DOT grant program, click here.

Walmart starts using more than 4,000 robots

In their efforts to give employees more time to serve customers live, Walmart expands

 its robotic device network. The giant retailer has announced to add more than 4 thousands robots to handle the operations. Mostly, devices will be used to check product availability, correct pricing, and supplies location. To read more about Walmart’s new robots, click here.

Companies support Earth Day

On Monday, April 22, the world celebrated its largest environmental movement – Earth Day. Many logistics and retail companies have joined the initiative to push sustainable shipping and production trend forward. For example, Walmart partnered with HSBC to develop a supply chain sustainability program for the suppliers. To read more about the Walmart green initiative, click here.

Trending Transportation Updates: January 2019

There were many new and exciting developments throughout the transportation and shipping industry last month. Check out some of the top stories that made headlines during January!

The UK Prepares Supply Chain as Brexit Nears

The United Kingdom and European Union had 18 months to seamlessly manage the transition, but with roughly 3 months left to an official Brexit deadline, no agreement has been reached between the parties. Due to the undefined outcome, experts forecast ports and highways are in danger of delays and congestion. Sellers, suppliers, and carriers are preparing for a cliff-edge scenario. In particular, DHL claims to be “very well prepared, even for the worst case.” Meanwhile, the UK awarded 3 freight contracts to avoid extreme congestion in the English Channel in case negotiations won’t lead to a deal.

Read more about the Brexit preparation here.

Amazon signs a 7-year contract with the French robotics company and tests delivery robot

Amazon has recently announced a 7-year agreement with French robotics manufacturer, Balyo. The company will supply the retail giant with autonomous forklifts, which can handle from 3,000 to 15,000 pounds. Before Balyo, Amazon has utilized Kiva systems robots since 2012.

Also, the retailer announced it is testing “Scout,” a new delivery robot. The six-wheel device is described as a “fully-electric delivery system.” The robot is following a programmed route and moves with a pace of an average pedestrian, and operates on weekdays during daylight. It is designed to deliver packages to customers’ doors.

Read more about Amazon new delivery robot or Balyo agreement.

Ocean Alliance extends the agreement until 2027

The Ocean Alliance members have recently met in China to extend the “world’s largest operational agreement between shipping companies.” The original agreement was signed in 2017 and was about to expire in 2023, although the CMA CGM, COSCO, Evergreen and OOCL decided to push the expiration date to 2027.

Read more about Ocean Alliance agreement here.

Walmart about to open high-tech consolidation facility

Walmart has announced its plan to open a high-tech consolidation center in Colton, CA. A 340,000 square-foot facility will start its work in July and will mainly sort, receive and ship orders from suppliers before sending it to a distribution center.

Read more about the Walmart consolidation center here.