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.
On the eve of its six-week summer recess, Congress on July 30 agreed to extend until Sept. 30 programs funding the Federal Aviation Administration (FAA), leaving in limbo a controversial provision that would change the labor law governing FedEx Corp.'s air express unit.
The legislation, passed by the House on Thursday and the Senate on Friday, is considered a less comprehensive version than many lawmakers originally hoped for. The legislation raises minimum experience and training requirements for new airline pilots. It also brings commuter airlines under tighter scrutiny both within the FAA and from their larger airline partners.
The provisions addressing the safety of commuter airline operations came out of an investigation into the February 2009 crash of Colgan Air flight 3407, operating for Continental Airlines Inc., which killed 50 people, including all 49 on board.
The legislation, however, did not address funding for the FAA's conversion to a satellite-based air traffic control system. And it left unresolved the issue of whether FedEx Express, which since its founding nearly 40 years ago has operated under the Railway Labor Act (RLA), a statute reserved for airlines and railroads, should be subject to the National Labor Relations Act (NLRA), which governs labor relations in all other industries, including trucking.
The FedEx provision was included in the House version of FAA funding legislation. However, it is not included in the Senate version, and Sen. Jay Rockefeller (D-W.Va.), chairman of the Senate Commerce Committee, said he lacks the votes to pass a comprehensive FAA funding bill that includes the FedEx measure.
Fight may not be over
Rep. James L. Oberstar (D-Minn.), chairman of the House Transportation & Infrastructure Committee, is the main supporter of the FedEx provision. He is expected to continue to press for its inclusion when Congress returns from recess. However, some lawmakers have chafed at the idea that a provision not directly related to airline safety could hold up progress on FAA reauthorization. For that reason, some have sought to remove the FedEx language from the FAA bill.
The provision would require all of the unit's employees, except for pilots and aircraft mechanics, to be subject to the NLRA. The NLRA is considered an easier path to unionization because it permits organizing on a local basis. By contrast, the RLA allows a company to be organized only as one nationwide bargaining unit.
FedEx bitterly opposes the provision, saying any localized work stoppage could disrupt its highly synchronized delivery network. It maintains the unit's air and ground delivery functions are part of an interwoven airline operation and should remain under the RLA's auspices. FedEx Corp. Chairman Frederick W. Smith has said the company will cancel orders on 15 Boeing 777 freighters and options on 15 more if it is required to make the change.
The Teamsters union, which has long sought to organize FedEx workers, supports the change. In addition, UPS Inc., FedEx's chief rival, has called for the language to pass, saying it would put the two companies on a level playing field. UPS's operations are governed by the NLRA.
The July 30 action marks the 15th consecutive temporary extension for FAA funding. The last multi-year reauthorization of the agency was in 2007.
Motion Industries Inc., a Birmingham, Alabama, distributor of maintenance, repair and operation (MRO) replacement parts and industrial technology solutions, has agreed to acquire International Conveyor and Rubber (ICR) for its seventh acquisition of the year, the firms said today.
ICR is a Blairsville, Pennsylvania-based company with 150 employees that offers sales, installation, repair, and maintenance of conveyor belts, as well as engineering and design services for custom solutions.
From its seven locations, ICR serves customers in the sectors of mining and aggregates, power generation, oil and gas, construction, steel, building materials manufacturing, package handling and distribution, wood/pulp/paper, cement and asphalt, recycling and marine terminals. In a statement, Kory Krinock, one of ICR’s owner-operators, said the deal would enhance the company’s services and customer value proposition while also contributing to Motion’s growth.
“ICR is highly complementary to Motion, adding seven strategic locations that expand our reach,” James Howe, president of Motion Industries, said in a release. “ICR introduces new customers and end markets, allowing us to broaden our offerings. We are thrilled to welcome the highly talented ICR employees to the Motion team, including Kory and the other owner-operators, who will continue to play an integral role in the business.”
Terms of the agreement were not disclosed. But the deal marks the latest expansion by Motion Industries, which has been on an acquisition roll during 2024, buying up: hydraulic provider Stoney Creek Hydraulics, industrial products distributor LSI Supply Inc., electrical and automation firm Allied Circuits, automotive supplier Motor Parts & Equipment Corporation (MPEC), and both Perfetto Manufacturing and SER Hydraulics.
The move delivers on its August announcement of a fleet renewal plan that will allow the company to proceed on its path to decarbonization, according to a statement from Anda Cristescu, Head of Chartering & Newbuilding at Maersk.
The first vessels will be delivered in 2028, and the last delivery will take place in 2030, enabling a total capacity to haul 300,000 twenty foot equivalent units (TEU) using lower emissions fuel. The new vessels will be built in sizes from 9,000 to 17,000 TEU each, allowing them to fill various roles and functions within the company’s future network.
In the meantime, the company will also proceed with its plan to charter a range of methanol and liquified gas dual-fuel vessels totaling 500,000 TEU capacity, replacing existing capacity. Maersk has now finalized these charter contracts across several tonnage providers, the company said.
The shipyards now contracted to build the vessels are: Yangzijiang Shipbuilding and New Times Shipbuilding—both in China—and Hanwha Ocean in South Korea.
Specifically, 48% of respondents identified rising tariffs and trade barriers as their top concern, followed by supply chain disruptions at 45% and geopolitical instability at 41%. Moreover, tariffs and trade barriers ranked as the priority issue regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501-1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing.
“Evolving tariffs and trade policies are one of a number of complex issues requiring organizations to build more resilience into their supply chains through compliance, technology and strategic planning,” Jackson Wood, Director, Industry Strategy at Descartes, said in a release. “With the potential for the incoming U.S. administration to impose new and additional tariffs on a wide variety of goods and countries of origin, U.S. importers may need to significantly re-engineer their sourcing strategies to mitigate potentially higher costs.”
The New Hampshire-based cargo terminal orchestration technology vendor Lynxis LLC today said it has acquired Tedivo LLC, a provider of software to visualize and streamline vessel operations at marine terminals.
According to Lynxis, the deal strengthens its digitalization offerings for the global maritime industry, empowering shipping lines and terminal operators to drastically reduce vessel departure delays, mis-stowed containers and unsafe stowage conditions aboard cargo ships.
Terms of the deal were not disclosed.
More specifically, the move will enable key stakeholders to simplify stowage planning, improve data visualization, and optimize vessel operations to reduce costly delays, Lynxis CEO Larry Cuddy Jr. said in a release.
Cowan is a dedicated contract carrier that also provides brokerage, drayage, and warehousing services. The company operates approximately 1,800 trucks and 7,500 trailers across more than 40 locations throughout the Eastern and Mid-Atlantic regions, serving the retail and consumer goods, food and beverage products, industrials, and building materials sectors.
After the deal, Schneider will operate over 8,400 tractors in its dedicated arm – approximately 70% of its total Truckload fleet – cementing its place as one of the largest dedicated providers in the transportation industry, Green Bay, Wisconsin-based Schneider said.
The latest move follows earlier acquisitions by Schneider of the dedicated contract carriers Midwest Logistics Systems and M&M Transport Services LLC in 2023.