A long-awaited rule governing truck drivers' hours of service was issued by the federal Department of Transportation in late April. Though truckers generally expressed relief at what they saw, safety groups charged that the government had placed truckers' economic interests ahead of public safety.
The new rule allows drivers to operate vehicles for 11 hours within a 14-hour period after at least 10 consecutive hours off duty. That's a relatively minor variation from the current rule, which allows 10 hours of driving within a 15-hour on-duty period after eight hours of off-duty time. The new rule - like the old - prohibits driving after 60 hours on duty in a seven-consecutive-day period or 70 hours in an eight-consecutive-day period. The on-duty cycle can begin again after a driver takes at least 34 consecutive hours off duty.
Short-haul truck drivers like route drivers—drivers who routinely return to their place of dispatch at the end of the work day and then are released from duty—are allowed an on-duty period of 16 hours once during any seven-consecutive-day period. The DOT says the 16-hour excepti on takes into consideration legitimate business needs without jeopardizing safety. According to the Federal Motor Carrier Safety Administration, which drafted the rule, without those extra hours, the industry would be required to hire at least 48,000 new drivers.
Though the new rule's provisions may not look terribly different from the old ones, they contain some new restrictions. An analysis by the National Industrial Transportation League (NITL) warns that mid-day breaks will no longer extend an on-duty period. "Thus, a driver who begins his shift at 12 noon, for example, must go off-duty at 2 a.m. (and cannot return to duty for at least 10 hours) even if he took a three-hour break in the afternoon. Under the old rules, this driver would have been able to stay on duty for 15+3 hours - until 6 a.m.," the league told members in its weekly bulletin.
The new rule, which takes effect next Jan. 4, governs interstate truck drivers operating vehicles with a gross vehicle weight rating of 10,001 pounds or more, and operating vehicles transporting hazardous materials in quantities requiring vehicle placards. The FMCSA estimates the new rule will save up to 75 lives and prevent as many as 1,326 fatiguerelated crashes annually. There were an estimated 4,902 truck-related fatalities in 2002, the agency reports.
The FMCA says that delaying enforcement of the rule until January gives the agency and states time to modify computer systems to reflect the regulatory changes, train more than 8,000 state and federal personnel, and educa te the industry. In addition, the agency adds, the implementation plan gives carriers and drivers time to become familiar with the new regulation and make any procedural changes necessary for compliance.
To the trucking industry's relief, provisions requiring drivers to keep a daily log remain unchanged. A controversial draft of the rule three years ago would have required carriers to install electronic on boa rd recorders in their vehicles, a proposal criticized for being intrusive and expensive. But that doesn't mean the idea's been dropped. The FMCSA says it will expand its research on the recorders and similar technologies and will consider offering carriers incentives to install recorders, which the agency says would ensure compliance with record-keeping and hours-of-service rules.
Some like it not The proposed rule was endorsed by the American Trucking Associations, the major trade organization representing the trucking industry. "This is a package that our members can work with," said Bill Graves, ATA president and CEO, in a prepared statement. "We have worked hard all along for a rule that is a good mixture of common sense and sound science. It will allow us to meet the real world operational needs of the trucking industry and most importantly, do so safely." Adds Gerald Detter, president and CEO of Con-Way Transportation Services, "We meant it when we asked for real hours-of-service reform to improve the safety of our workplace—the nation's highways. We're now on target."
The ATA says it's pleased to see that the new rule incorporates provisions of an ATA proposal to increase the amount of rest time for professiona l truck drivers. It says the new rule promotes the body 's natural 24-hour rhythm, in contrast to the current rule, which is based on an 18-hour day.
But not everyone is happy with the announcement. The new rule was condemned by a group called the Truck Safety Coalition, which includes Citizens for Reliable and Safe Highways (CRASH) and Parents Against Tired Truckers, or P.A.T.T.
In its statement, CRASH contends that the new rule will not reduce fatigue. It argues that on-board recording devices are necessary to ensure enforcement of any rule. "In 2000, the FMCSA admitted that commercial driver paper logbooks were widely falsified and that a high percentage of drivers routinely violated the maximum number of driving hours permitted. Drivers themselves have admitted this fact in independent surveys, such as the survey published by the Insurance Institute for Highway Safety," the CRASH statement reads. CRASH argues that the rule favors trucking economic interests over improved safety, which it says conflicts with the 1999 law requiring new hours-of-service rules.
CRASH did applaud the 11-hour limit as an improvement over a 12-hour on-duty cycle proposed in 2000.
Jeremy Van Puffelen grew up in a family-owned contract warehousing business and is now president of that firm, Prism Logistics. As a third-party logistics service provider (3PL), Prism operates a network of more than 2 million square feet of warehouse space in Northern California, serving clients in the consumer packaged goods (CPG), food and beverage, retail, and manufacturing sectors.
During his 21 years working at the family firm, Van Puffelen has taken on many of the jobs that are part of running a warehousing business, including custodial functions, operations, facilities management, business development, customer service, executive leadership, and team building. Since 2021, he has also served on the board of directors of the International Warehouse Logistics Association (IWLA), a trade organization for contract warehousing and logistics service providers.
Q: How would you describe the current state of the contract warehouse industry?
A: I think the current state of the industry is strong. For those that have been focused on building good client relationships over the years, I think it’s a really exciting time. Coming out of all the challenges of the past few years, I think there’s a lot of opportunity for growth and deeper partnerships. It’s fun to see the automation and AI (artificial intelligence) integration starting to evolve [in a way that’s] similar to what we saw with WMS (warehouse management systems) in the early 2000s.
Q: You are now president of your family firm. Is it an advantage having grown up in the business as opposed to working elsewhere?
A: I definitely believe it was an advantage growing up in the business. Whether it’s working with family or someone else in the industry, there’s always an advantage when you have mentors[to guide] you. I’ve been blessed to have several mentors, some in the industry, others just in life, and I’m thankful that they were willing to mentor me and that I was willing to listen to them.
Q: What are the biggest challenges currently facing 3PLs, and how are you addressing them?
A: Labor and legislation are both tough right now. The two seem to have a lot to do with each other, and it can make it tough to find and retain people. So I think we’ll see more and more automation of processes industrywide.
Q: Third-party service providers often must handle a wide variety of products for a lot of different clients. Does this variety make it difficult to invest in automation and other new technologies?
A: It can make things more difficult when looking at certain automation, but it’s in the “difficult” that a lot of opportunities lie. It would be tough to find a single solution that fits every client’s needs, but there are always opportunities to improve in certain areas. It just takes a bit of vision and commitment, and a willingness to invest in your own long-term success.
Q: As a 3PL, what do you look for when selecting the clients you work with?
A: Quality relationships that will last a long time. When both parties are happy and working together in the same direction, everyone wins.
Q: You’ve been a board member of the International Warehouse Logistics Association since 2021. Why is your involvement with this organization important to you?
A: I think it’s important to understand what’s happening in the industry. IWLA is a great resource for staying up to date and getting a solid education when it comes to the latest logistics trends. I also think it’s important to give back and pass along what we’ve learned to those just getting started in the business. As important as it is to have a mentor, it’s just as important to mentor and help others.
“While there have been some signs of tightening in consumer spending, September’s numbers show consumers are willing to spend where they see value,” NRF Chief Economist Jack Kleinhenz said in a release. “September sales come amid the recent trend of payroll gains and other positive economic signs. Clearly, consumers continue to carry the economy, and conditions for the retail sector remain favorable as we move into the holiday season.”
The Census Bureau said overall retail sales in September were up 0.4% seasonally adjusted month over month and up 1.7% unadjusted year over year. That compared with increases of 0.1% month over month and 2.2% year over year in August.
Likewise, September’s core retail sales as defined by NRF — based on the Census data but excluding automobile dealers, gasoline stations and restaurants — were up 0.7% seasonally adjusted month over month and up 2.4% unadjusted year over year. NRF is now forecasting that 2024 holiday sales will increase between 2.5% and 3.5% over the same time last year.
Despite those upward trends, consumer resilience isn’t a free pass for retailers to underinvest in their stores by overlooking labor, customer experience tech, or digital transformation, several analysts warned.
"The 2024 holiday season offers more ‘normalcy’ for retailers with inflation cooling. Still, there is no doubt that consumers continue to seek value. Promotions in general will play a larger role in the 2024 holiday season. Retailers are dealing with shrinking shopper loyalties, a larger number of competitors across more channels – and, of course, a more dynamic landscape where prices are shifting more frequently to win over consumers who are looking for great deals,” Matt Pavich, senior director of strategy & innovation at pricing optimization solutions provider Revionics, said in an email.
Nikki Baird, VP of strategy & product at retail technology company Aptos, likewise said that retailers need to keep their focus on improving their value proposition and customer experience. “Retailers aren’t just competing with other retailers when it comes to consumers’ discretionary spending. If consumers feel like the shopping experience isn’t worth their time and effort, they are going to spend their money elsewhere. A trip to Italy, a dinner out, catching the latest Blake Lively and Ryan Reynolds films — there is no shortage of ways that consumers can spend their discretionary dollars,” she said.
Editor's note:This article was revised on October 18 to correct the attribution for a quote to Matt Pavich instead of Nikki Baird.
The market for environmentally friendly logistics services is expected to grow by nearly 8% between now and 2033, reaching a value of $2.8 billion, according to research from Custom Market Insights (CMI), released earlier this year.
The “green logistics services market” encompasses environmentally sustainable logistics practices aimed at reducing carbon emissions, minimizing waste, and improving energy efficiency throughout the supply chain, according to CMI. The market involves the use of eco-friendly transportation methods—such as electric and hybrid vehicles—as well as renewable energy-powered warehouses, and advanced technologies such as the Internet of Things (IoT) and artificial intelligence (AI) for optimizing logistics operations.
“Key components include transportation, warehousing, freight management, and supply chain solutions designed to meet regulatory standards and consumer demand for sustainability,” according to the report. “The market is driven by corporate social responsibility, technological advancements, and the increasing emphasis on achieving carbon neutrality in logistics operations.”
Major industry players include DHL Supply Chain, UPS, FedEx Corp., CEVA Logistics, XPO Logistics, Inc., and others focused on developing more sustainable logistics operations, according to the report.
The research measures the current market value of green logistics services at $1.4 billion, which is projected to rise at a compound annual growth rate (CAGR) of 7.8% through 2033.
The report highlights six underlying factors driving growth:
Regulatory Compliance: Governments worldwide are enforcing stricter environmental regulations, compelling companies to adopt green logistics practices to reduce carbon emissions and meet legal requirements.
Technological Advancements: Innovations in technology, such as IoT, AI, and blockchain, enhance the efficiency and sustainability of logistics operations. These technologies enable better tracking, optimization, and reduced energy consumption.
Consumer Demand for Sustainability: Increasing consumer awareness and preference for eco-friendly products drive companies to implement green logistics to align with market expectations and enhance their brand image.
Corporate Social Responsibility (CSR): Companies are prioritizing sustainability in their CSR strategies, leading to investments in green logistics solutions to reduce environmental impact and fulfill stakeholder expectations.
Expansion into Emerging Markets: There is significant potential for growth in emerging markets where the adoption of green logistics practices is still developing. Companies can capitalize on this by introducing sustainable solutions and technologies.
Development of Renewable Energy Solutions: Investing in renewable energy sources, such as solar-powered warehouses and electric vehicle fleets, presents an opportunity for companies to reduce operational costs and enhance sustainability, driving further market growth.
A real-time business is one that uses trusted, real-time data to enable people and systems to make real-time decisions, Peter Weill, the chairman of MIT’s Center for Information Systems Research (CISR), said at the “IFS Unleashed” show in Orlando.
By adopting that strategy, they gain three major capabilities, he said in a session titled “Becoming a Real-Time Business: Unlocking the Transformative Power of Digital, Data, and AI.” They are:
business model agility without needing a change management program to implement it
seamless digital customer journeys via self-service, automated, or assisted multi-product, multichannel experiences
thoughtful employee experiences enabled by technology empowered teams
And according to Weill, MIT’s studies show that adopting that real-time data stance is not restricted just to digital or tech-native businesses. Rather, it can produce successful results for companies in any sector that are able to apply the approach better than their immediate competitors.
“ExxonMobil is uniquely placed to understand the biggest opportunities in improving energy supply chains, from more accurate sales and operations planning, increased agility in field operations, effective management of enormous transportation networks and adapting quickly to complex regulatory environments,” John Sicard, Kinaxis CEO, said in a release.
Specifically, Kinaxis and ExxonMobil said they will focus on a supply and demand planning solution for the complicated fuel commodities market which has no industry-wide standard and which relies heavily on spreadsheets and other manual methods. The solution will enable integrated refinery-to-customer planning with timely data for the most accurate supply/demand planning, balancing and signaling.
The benefits of that approach could include automated data visibility, improved inventory management and terminal replenishment, and enhanced supply scenario planning that are expected to enable arbitrage opportunities and decrease supply costs.
And in the chemicals and lubricants space, the companies are developing an advanced planning solution that provides manufacturing and logistics constraints management coupled with scenario modelling and evaluation.
“Last year, we brought together all ExxonMobil supply chain activities and expertise into one centralized organization, creating one of the largest supply chain operations in the world, and through this identified critical solution gaps to enable our businesses to capture additional value,” said Staale Gjervik, supply chain president, ExxonMobil Global Services Company. “Collaborating with Kinaxis, a leading supply chain technology provider, is instrumental in providing solutions for a large and complex business like ours.”