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.
In the nation's capital, legislation is what lawmakers do. As one veteran and somewhat jaded Washington lobbyist once remarked, "To a politician, introducing legislation is like breathing."
If industry comments greeting the House Transportation and Infrastructure Committee's five-year, $260 billion bill to fund the federal highway, transit, and safety programs is any indication, someone on Capitol Hill has taken a very deep breath.
The legislation, unveiled late Tuesday, has been trumpeted by Rep. John L. Mica (R-Fla.), the committee chairman, as the largest transportation reform bill since Congress created the Interstate Highway System mid-way through the presidency of Dwight D. Eisenhower. For freight interests that have clamored for more congressional recognition of freight's role in driving the U.S. and global economies, the bill goes a long way toward meeting that objective.
The bill, the American Energy and Infrastructure Jobs Act, proposes the first major federal change to truck size and weight limits since the early 1980s. It also restores to the states the authority to regulate truck sizes and weights, which was stripped from them in 1991.
The bill gives states the power to allow single-trailer trucks with gross vehicle weights of up to 97,000 pounds to operate on their portion of the nation's interstate highway system. The current federal weight limit is set at 80,000 pounds, though six states—Maine, New Hampshire, New York, Vermont, Massachusetts, and Rhode Island—allow six-axle trucks weighing up to 97,000 pounds to travel on their interstate highways. About 40 states allow vehicles weighing more than 80,000 pounds to operate on state roads.
The legislation would require the heavier trucks to be equipped with a sixth axle to maintain braking and handling characteristics at the higher weights. In addition, participating states would have the authority to exclude heavier trucks from operating on any route or bridge.
The bill also permits 33-foot trailers to be operated in doubles formation, up from the current maximum of 28 feet per trailer operating as a tandem. In addition, it would allow truckers to operate nationwide with triple-trailers up to 120 feet long.
Hurdles ahead
There are potential roadblocks to moving the House bill forward. The bill will be debated on Thursday, with possible amendments to be introduced and addressed. It then must be reconciled with the version that emerges from the Senate, a process expected to be politically bruising. The traditional funding mechanism, the fuel tax on cars and trucks, will not be sufficient to pay for the entire program. What is expected to be a $50 billion shortfall will likely need to be made up from funds transferred from the general treasury.
Still, advocates say there is hope that after eight short-term extensions since the last transport law expired in September 2009, a multiyear reauthorization bill could go to President Obama's desk for signature during 2012. However, it is unlikely that the process could move swiftly enough to avoid a ninth extension after the current one expires on March 31.
A focus on freight
Many shipper and carrier interests have long believed the increased use of longer and heavier vehicles will be the primary, if not the only, solution to a looming capacity crunch, escalating fuel prices, and greenhouse gas emissions. For them, the bill was manna from heaven.
The Coalition for Transportation Productivity, a group of 200 shippers and associations, said the measure will help truckers meet the demands of the supply chain while reducing the number of truckloads, amount of diesel fuel, and number of vehicle miles necessary to do the job.
"Truck capacity has dropped by 16 percent since the recession started, and the 30-year-old federal vehicle weight limit compounds the problem by forcing many trucks to travel when they are only partially full," said John Runyan, CTP's executive director, in a statement.
CleanerSaferTrucking Inc., a coalition of truckers, shippers, and equipment manufacturers, said in a statement that the bill will increase truck productivity and lead to a "safer, more viable trucking industry, utilizing better equipment and providing better, more sustainable jobs, while reducing highway congestion."
The American Trucking Associations and the American Association of Port Authorities also endorsed the legislation.
The U.S. Chamber of Commerce, which, with 3 million members, is seen as an accurate barometer of multi-industry consensus, applauded the bill's introduction. "It reflects the recognition of the federal role in the transportation system," said Janet Kavinoky, who heads the chamber's transportation infrastructure practice.
Kavinoky added that the bill underscores the need to focus on freight and its importance in keeping the U.S. economy competitive.
Critics take aim
Not all of the reaction was positive. The Association of American Railroads (AAR), the Teamsters union, and the Owner-Operator Independent Drivers Association (OOIDA) attacked the bill, saying it will create undue safety risk, further damage the nation's deteriorating infrastructure, and put additional financial burdens on taxpayers, and will not create jobs as the bill's sponsors contend.
The AAR, which has for years fought federal efforts to raise truck size and weight limits, said the operator of a typical 97,000-pound, six-axle truck pays only half of the cost of repairing road damage caused by its use. Taxpayers pick up the rest of the tab, the AAR said.
"Americans don't want 97,000 pounds or huge multi-trailers up to 120 feet long on our nation's highways," said Edward R. Hamberger, AAR's president and CEO, in a statement.
OOIDA, which represent mostly fleets of one to five trucks, argued that longer and heavier vehicles are harder to maneuver and will put additional stress on roads and bridges that are designed to accommodate weights no greater than 80,000 pounds. OOIDA said an increase in size and weight limits has never resulted in a reduction in truck traffic.
OOIDA warned the legislation would lead to tax increases and new toll levies because the cost of potentially massive road and bridge damage would far exceed the inflow of user fees paid by the companies that would benefit from the proposed increase in size and weight limits.
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.”
As the hours tick down toward a “seemingly imminent” strike by East Coast and Gulf Coast dockworkers, experts are warning that the impacts of that move would mushroom well-beyond the actual strike locations, causing prevalent shipping delays, container ship congestion, port congestion on West coast ports, and stranded freight.
However, a strike now seems “nearly unavoidable,” as no bargaining sessions are scheduled prior to the September 30 contract expiration between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) in their negotiations over wages and automation, according to the transportation law firm Scopelitis, Garvin, Light, Hanson & Feary.
The facilities affected would include some 45,000 port workers at 36 locations, including high-volume U.S. ports from Boston, New York / New Jersey, and Norfolk, to Savannah and Charleston, and down to New Orleans and Houston. With such widespread geography, a strike would likely lead to congestion from diverted traffic, as well as knock-on effects include the potential risk of increased freight rates and costly charges such as demurrage, detention, per diem, and dwell time fees on containers that may be slowed due to the congestion, according to an analysis by another transportation and logistics sector law firm, Benesch.
The weight of those combined blows means that many companies are already planning ways to minimize damage and recover quickly from the event. According to Scopelitis’ advice, mitigation measures could include: preparing for congestion on West coast ports, taking advantage of intermodal ground transportation where possible, looking for alternatives including air transport when necessary for urgent delivery, delaying shipping from East and Gulf coast ports until after the strike, and budgeting for increased freight and container fees.
Additional advice on softening the blow of a potential coastwide strike came from John Donigian, senior director of supply chain strategy at Moody’s. In a statement, he named six supply chain strategies for companies to consider: expedite certain shipments, reallocate existing inventory strategically, lock in alternative capacity with trucking and rail providers , communicate transparently with stakeholders to set realistic expectations for delivery timelines, shift sourcing to regional suppliers if possible, and utilize drop shipping to maintain sales.