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.
Shippers and freight brokers have dodged a bullet, escaping a burden that could have wreaked havoc with their operations and potentially threatened the livelihood of some small to mid-sized truckers.
In early March, three truck trade associations reached a mediated settlement with the Federal Motor Carrier Safety Administration (FMCSA), the agency overseeing the newly minted CSA 2010 truck safety program, over the CSA methodology used to measure trucker performance. Under the settlement, which went into effect March 25, FMCSA agreed to state on its website that carrier data displayed in the agency's "Safety Measurement System"—the mechanism used to rate carrier performance—should not be used to "draw conclusions about a carrier's overall safety condition."
The agency added that unless a motor carrier in the system has received an "unsatisfactory" rating or has been ordered by FMCSA to discontinue operations, the carrier is "authorized to operate on the nation's roadways." Data collected as part of the CSA (Compliance, Safety, Accountability) program are made public on a monthly basis.
The regulatory legalese has real-world impact, according to attorneys representing shippers, brokers, and truckers. They claim that the FMCSA has clarified that it is the only entity authorized to rule if a trucker is safe to operate on U.S. roads. By extension, the attorneys argue, the agency has acknowledged that shippers or freight brokers should not have to interpret safety data to determine a carrier's fitness, and that a shipper's or broker's responsibility extends only as far as hiring an FMCSA-authorized carrier to move its goods.
Prior to the settlement, CSA had left unclear which party was actually responsible for weighing a carrier's safety record, attorneys argued. Henry E. Seaton, a Vienna, Va.-based attorney representing truckers and brokers, said the FMCSA, by its murky language, had effectively "created a new duty for shippers and brokers to credential carriers" for safety purposes.
Nasty ripple effect
This scenario was bound to create a nasty ripple effect for the industry, Seaton and other attorneys said. Worried about opening themselves up to liability and potential litigation if a carrier they have chosen is involved in an accident, shippers and brokers would shy away from truckers that might have been cited for a single safety infraction, even if they never received an "unsatisfactory" rating under CSA. In turn, small to mid-sized truckers that depend on a handful of shippers or brokers for their livelihood would find themselves effectively "blackballed" and, bereft of revenue, forced out of business.
The only winners, Seaton said, would be plaintiffs' attorneys looking to probe the deep pockets of shippers and brokers, citing the legal concept of "vicarious liability" under which shippers and brokers could be held responsible for the actions of a carrier they have hired, even if the carrier was not on their payroll and had a clean safety record at the time the shipper or broker performed due diligence. C.H. Robinson Worldwide Inc., the nation's largest broker, is embroiled in
a long-running lawsuit that pivots on the "vicarious liability" issue; so far, the case is not progressing well for the broker.
Formally rolled out in late November, CSA as originally constructed became "an early Christmas present for the plaintiffs bar," Seaton told the Transportation and Logistics Council's annual meeting in early April in St. Louis.
FMCSA final authority on safety
Industry executives hailed the agreement, saying the new language from FMCSA reinforces the agency's statutory authority over highway safety and affirms the power of federal law to pre-empt any authority asserted by the states.
"The broker and shipper communities have been concerned that CSA 2010 would be misconstrued by courts, and exploited by the plaintiffs' bar, as setting forth a "vicarious liability' litmus test for shippers and brokers in their carrier selection process," said Matthew J. Jewell, executive vice president and chief legal officer for Forward Air Inc., which provides time-definite surface transportation and related logistics services to the North American air-freight and expedited LTL market. "This settlement reconfirms that the FMCSA is the final and only arbiter of which motor carriers are authorized to operate over our roadways. That duty does not fall to shippers and brokers."
"Prior to this settlement, CSA had confused shippers and brokers over their duties in carrier selection under federal law," said Tom Sanderson, president of Transplace, a Dallas-based third-party logistics service provider. The FMCSA has "affirmed that shippers and brokers fulfill their duty of due diligence by confirming that the carrier is authorized by the agency and has sufficient insurance coverage."
Jan Skouby, director of motor carrier services at the Missouri Department of Transportation, acknowledged that CSA implementation was "a work in progress." But she defended the program as a way to proactively reduce the risk of truck-related accidents and fatalities by weeding out sub-standard carriers and drivers.
Skouby said truckers that are permitted in Missouri tell her they benefit by having the ability to track their performance data each month. Highway fatalities in Missouri are at their lowest levels since 1949, but Skouby said they remain too high to suit her.
Skouby urged shippers, carriers, and brokers to "engage your state and local representatives and make the program really work."
Seaton and other defendants' attorneys claim they support any program that makes roads safer by eliminating the so-called bad actors. However, they argue that a criterion other than a "thumbs-up, thumbs down" vote from the FMCSA is the wrong way to go about it.
Highway safety "must be about equipping the [FMCSA] to efficiently monitor and police interstate motor carriers and certify, on a simple pass-fail basis, that carriers are fit for use unless placed out of service or rated unsatisfactory after due process," Seaton said in a prepared statement.
States across the Southeast woke up today to find that the immediate weather impacts from Hurricane Helene are done, but the impacts to people, businesses, and the supply chain continue to be a major headache, according to Everstream Analytics.
The primary problem is the collection of massive power outages caused by the storm’s punishing winds and rainfall, now affecting some 2 million customers across the Southeast region of the U.S.
One organization working to rush help to affected regions since the storm hit Florida’s western coast on Thursday night is the American Logistics Aid Network (ALAN). As it does after most serious storms, the group continues to marshal donated resources from supply chain service providers in order to store, stage, and deliver help where it’s needed.
Support for recovery efforts is coming from a massive injection of federal aid, since the White House declared states of emergency last week for Alabama, Florida, Georgia, North Carolina, and South Carolina. Affected states are also supporting the rush of materials to needed zones by suspending transportation requirement such as certain licensing agreements, fuel taxes, weight restrictions, and hours of service caps, ALAN said.
E-commerce activity remains robust, but a growing number of consumers are reintegrating physical stores into their shopping journeys in 2024, emphasizing the need for retailers to focus on omnichannel business strategies. That’s according to an e-commerce study from Ryder System, Inc., released this week.
Ryder surveyed more than 1,300 consumers for its 2024 E-Commerce Consumer Study and found that 61% of consumers shop in-store “because they enjoy the experience,” a 21% increase compared to results from Ryder’s 2023 survey on the same subject. The current survey also found that 35% shop in-store because they don’t want to wait for online orders in the mail (up 4% from last year), and 15% say they shop in-store to avoid package theft (up 8% from last year).
“Retail and e-commerce continue to evolve,” Jeff Wolpov, Ryder’s senior vice president of e-commerce, said in a statement announcing the survey’s findings. “The emergence of e-commerce and growth of omnichannel fulfillment, particularly over the past four years, has altered consumer expectations and behavior dramatically and will continue to do so as time and technology allow.
“This latest study demonstrates that, while consumers maintain a robust
appetite for e-commerce, they are simultaneously embracing in-person shopping, presenting an impetus for merchants to refine their omnichannel strategies.”
Other findings include:
• Apparel and cosmetics shoppers show growing attraction to buying in-store. When purchasing apparel and cosmetics, shoppers are more inclined to make purchases in a physical location than they were last year, according to Ryder. Forty-one percent of shoppers who buy cosmetics said they prefer to do so either in a brand’s physical retail location or a department/convenience store (+9%). As for apparel shoppers, 54% said they prefer to buy clothing in those same brick-and-mortar locations (+9%).
• More customers prefer returning online purchases in physical stores. Fifty-five percent of shoppers (+15%) now say they would rather return online purchases in-store–the first time since early 2020 the preference to Buy Online Return In-Store (BORIS) has outweighed returning via mail, according to the survey. Forty percent of shoppers said they often make additional purchases when picking up or returning online purchases in-store (+2%).
• Consumers are extremely reliant on mobile devices when shopping in-store. This year’s survey reveals that 77% of consumers search for items on their mobile devices while in a store, Ryder said. Sixty-nine percent said they compare prices with items in nearby stores, 58% check availability at other stores, 31% want to learn more about a product, and 17% want to see other items frequently purchased with a product they’re considering.
Ryder said the findings also underscore the importance of investing in technology solutions that allow companies to provide customers with flexible purchasing options.
“Omnichannel strength is not a fad; it is a strategic necessity for e-commerce and retail businesses to stay competitive and achieve sustainable success in 2024 and beyond,” Wolpov also said. “The findings from this year’s study underscore what we know our customers are experiencing, which is the positive impact of integrating supply chain technology solutions across their sales channels, enabling them to provide their customers with flexible, convenient options to personalize their experience and heighten customer satisfaction.”
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
Two European companies are among the most recent firms to put autonomous last-mile delivery to the test with a project in Bern, Switzerland, that debuted this month.
Swiss transportation and logistics company Planzer has teamed up with fellow Swiss firm Loxo, which develops autonomous driving software solutions, for a two-year pilot project in which a Loxo-equipped, Planzer parcel delivery van will handle last-mile logistics in Bern’s city center.
The project coincides with Swiss regulations on autonomous driving that are expected to take effect next spring.
Referred to as “Planzer–Dynamic Micro-Hub w LOXO,” the project aims to address both sustainability issues and traffic congestion in urban areas.
The delivery vehicle, a Volkswagen ID. Buzz battery-electric minivan, will feature Loxo’s Level 4 Digital Driver navigation software, a highly automated solution that allows driverless operation. The van was retrofitted to include space for two swap boxes for parcel storage.
During the two-year pilot phase, Loxo’s Digital Driver will navigate a commercial vehicle several times a day from Planzer’s railway center to various logistics points in Bern's city center. There, the parcels will be reloaded onto small electric vehicles and delivered to end customers by Planzer’s parcel delivery staff.
Following the completion of the pilot phase, Planzer and Loxo will build on the program for rollout in other Swiss cities, the companies said.
The partners said the project addresses the increasing requirements of urban supply chains and aims to ensure the “scalability of their disruptive solution.” With largely emission-free delivery, it contributes to greater levels of sustainability for the city as a living space, they also said.
“The uniqueness of this project lies in the fact that it will have a direct impact on society,” Planzer’s CEO and Chairman Nils Planzer said in a statement announcing the project. “We didn't just want to integrate automated technology into existing systems, we wanted to develop a completely new concept and a new business model.”
National nonprofit Wreaths Across America (WAA) kicked off its 2024 season this week with a call for volunteers. The group, which honors U.S. military veterans through a range of civic outreach programs, is seeking trucking companies and professional drivers to help deliver wreaths to cemeteries across the country for its annual wreath-laying ceremony, December 14.
“Wreaths Across America relies on the transportation industry to move the mission. The Honor Fleet, composed of dedicated carriers, professional drivers, and other transportation partners, guarantees the delivery of millions of sponsored veterans’ wreaths to their destination each year,” Courtney George, WAA’s director of trucking and industry relations, said in a statement Tuesday. “Transportation partners benefit from driver retention and recruitment, employee engagement, positive brand exposure, and the opportunity to give back to their community’s veterans and military families.”
WAA delivers wreaths to more than 4,500 locations nationwide, and as of this week had added more than 20 loads to be delivered this season. The wreaths are donated by sponsors from across the country, delivered by truckers, and laid at the graves of veterans by WAA volunteers.
Wreaths Across America
Transportation companies interested in joining the Honor Fleet can visit the WAA website to find an open lane or contact the WAA transportation team at trucking@wreathsacrossamerica.org for more information.