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.
House and Senate negotiators today passed and sent to their respective chambers a 27-month, approximately $101-billion surface transportation reauthorization bill. The legislation does not raise motor fuel excise taxes to pay for infrastructure improvements, leaves intact the size and weight limits for trucks operating on the nation's interstates, and greatly increases the size of a surety bond that property brokers must set aside to pay legitimate claims by truckers of late payment or nonpayment for their services.
The Senate is expected to vote on the so-called conference report today, and the House vote is expected on Friday. If the bill is passed by the Senate, which appears certain since the final product closely resembles the Senate's original version, it could reach President Obama's desk for signature as early as June 30, the date the most recent short-term extension of highway funding programs—the ninth since 2009—was set to expire.
Several weeks ago, there was little optimism a bill would be enacted at all this year, much less by this time. Momentum gathered after House Speaker John Boehner (R-Ohio), and Senate Majority Leader Harry Reid (D-Nev.) instructed conferees to redouble their efforts to approve legislation and send it to both houses.
The conference report is a victory for Rep. John L. Mica (R-Fla.), chair of the House Transportation and Infrastructure Committee, and Sen. Barbara Boxer (D-Calif.), chair of the Senate Commerce Committee, who set aside their partisan differences to move the bill forward. Mica had sought a six-year reauthorization timetable, but negotiators agreed to the shorter duration sought by Boxer and approved by the Senate.
FUEL TAXES, SIZE AND WEIGHT LIMITS WON'T CHANGE
Conferees declined to raise the federal tax on diesel and gasoline, keeping those taxes at 1993 levels of 24.4 cents a gallon for diesel and 18.4 cents a gallon for gasoline. Taxes will remain at these levels until at least September 30, 2016, according to a summary of the conference report obtained by DC VELOCITY.
Revenue from fuel taxes, which is deposited in the Highway Trust Fund, is the primary source of funding for surface transportation projects. However, in the past few years funding shortfalls have forced Congress to divert about $35 billion from various general treasury accounts to the trust fund. Among the reasons for those shortfalls are increased fuel efficiency and a decline in miles traveled as the recession dampened economic activity.
Mindful that the projected revenue from fuel taxes will not be sufficient to pay for program investments over the next 27 months, the conferees took the extraordinary step of authorizing an $18.8 billion transfer of funds from the general treasury to the trust fund. This "pre-funding" from the general treasury is intended to ensure that all highway programs authorized during the next 27 months will be paid for ahead of time, and that the trust fund will not have to look to Congress for additional funding streams later.
In a blow to shippers and truckers, conferees did not raise the size or weight limits of trucks plying the nation's interstate highways. Rep. Mica wanted to raise the per-vehicle weight limit to 97,000 pounds from 80,000 pounds, with the proviso that heavier trucks be equipped with a sixth axle for better braking and overall stability. That language was tabled by his own committee, however.
The committee had approved language allowing the nationwide use of twin, 33-foot-long trailers and permitting the deployment of triple trailers in states that currently don't allow them. That provision dropped off the table as the legislative process moved forward, however.
BROKERS' SURETY BONDS TO SOAR
Conferees handed freight interests a victory by requiring the federal Department of Transportation to conduct a field study of pending changes to controversial "restart provisions" in the agency's rules governing the number of hours a driver can operate a rig. Under those rules, drivers working the maximum number of weekly hours must take at least two consecutive rest periods—between 1 a.m. and 5 a.m.—during a "restart" period lasting 34 straight hours. Once the 34-hour cycle is over, drivers can restart the clock on their seven-day workweeks, according to the rules.
Critics say the timing of the restart period would actually require drivers to be off-duty for 46 hours, not 34. In addition, they charge, the language effectively forces more drivers and trucks on the road during morning rush hours, when they are sharing the asphalt with millions of commuters.
The bill deals a tough hand to property brokers. In language that may have a profound impact on that industry, conferees agreed to raise the surety bond brokers must post to pay legitimate claims by carriers from $10,000 to $75,000. The original Senate version called for an increase to $100,000. Independent broker interests, who warned that such a large jump could force as many as 80 percent of the nation's property brokers out of business, said they could have compromised on a $25,000 bond limit to adjust for inflation.
In addition, sources said that motor carriers will be required to hold separate operating authority if they want to broker freight. The conferee bill also sets strict regulations on surety-bond companies and the way the bonds are administered, the sources said. In addition, the bill levies harsh penalties on companies that conduct brokerage operations without a bond or a license, sources said.
The language is designed to address the grievances of owner-operators, who have long complained that they receive freight from brokers but are not paid in a timely manner, or sometimes are not paid at all, after the goods have been delivered.
Fruit company McDougall & Sons is running a tighter ship these days, thanks to an automated material handling solution from systems integrator RH Brown, now a Bastian Solutions company.
McDougall is a fourth-generation, family-run business based in Wenatchee, Washington, that grows, processes, and distributes cherries, apples, and pears. Company leaders were facing a host of challenges during cherry season, so they turned to the integrator for a solution. As for what problems they were looking to solve with the project, the McDougall leaders had several specific goals in mind: They wanted to increase cherry processing rates, better manage capacity during peak times, balance production between two cherry lines, and improve the accuracy and speed of data collection and reporting on the processed cherries.
RH Brown/Bastian responded with a combination of hardware and software that is delivering on all fronts: The new system handles cartons twice as fast as McDougall’s previous system, with less need for manual labor and with greater accuracy. On top of that, the system’s warehouse control software (WCS) provides precise, efficient management of production lines as well as real-time insights, data analytics, and product traceability.
MAKING THE SWITCH
Cherry producers are faced with a short time window for processing the fruit: Once cherries are ripe, they have to be harvested and processed quickly. McDougall & Sons responds to this tight schedule by running two 10-hour shifts, seven days a week, for about 60 days nonstop during the season. Adding complexity, the fruit industry is shifting away from bulk cartons to smaller consumer packaging, such as small bags and clamshell containers. This has placed a heavier burden on the manual labor required for processing.
Committed to making its machinery and technology run efficiently, McDougall’s leaders decided they needed to replace the company’s simple motorized chain system with an automated material handling system that would speed and streamline its cherry processing operations. With that in mind, RH Brown/Bastian developed a solution that incorporates three key capabilities:
Advanced automation that streamlines carton movement, reducing manual labor. The system includes a combination of conveyors, switches, controls, in-line scales, and barcode imagers.
A WCS that allows the company to manage production lines precisely and efficiently, with real-time insights into processing operations.
Data and analytics capabilities that provide insight into the production process and allow quick decision-making.
BEARING FRUIT
The results of the project speak for themselves: The new system is moving cartons at twice the speed of the previous system, with 99.9% accuracy, according to both RH Brown/Bastian and McDougall & Sons.
But the transformational benefits didn’t end there. The companies also cite a 130% increase in throughput, along with the ability to process an average of 100 cases per minute on each production line.
Artificial intelligence (AI) and the economy were hot topics on the opening day of SMC3 Jump Start 25, a less-than-truckload (LTL)-focused supply chain event taking place in Atlanta this week. The three-day event kicked off Monday morning to record attendance, with more than 700 people registered, according to conference planners.
The event opened with a keynote presentation from AI futurist Zack Kass, former head of go to market for OpenAI. He talked about the evolution of AI as well as real-world applications of the technology, furthering his mission to demystify AI and make it accessible and understandable to people everywhere. Kass is a speaker and consultant who works with businesses and governments around the world.
The opening day also featured a slate of economic presentations, including a global economic outlook from Dr. Jeff Rosensweig, director of the John Robson Program for Business, Public Policy, and Government at Emory University, and a “State of LTL” report from economist Keith Prather, managing director of Armada Corporate Intelligence. Both speakers pointed to a strong economy as 2025 gets underway, emphasizing overall economic optimism and strong momentum in LTL markets.
Other highlights included interviews with industry leaders Chris Jamroz and Rick DiMaio. Jamroz is executive chairman of the board and CEO of Roadrunner Transportation Systems, and DiMaio is executive vice president of supply chain for Ace Hardware.
Jump Start 25 runs through Wednesday, January 29, at the Renaissance Atlanta Waverly Hotel & Convention Center.
A lithium refinery that broke ground this week on construction of a $1.2 billion plant in Oklahoma will soon become one of the nation’s largest factories for producing materials for batteries, according to officials with Connecticut-based Stardust Power Inc.
In December 2024, the company said it had acquired the 66-acre site for the refinery in Muskogee, Oklahoma, as well as the right of first refusal for future expansion on an adjacent 40-acre parcel of land. In choosing those plots, it cited the location’s proximity to the country’s largest inland waterway system, robust road and rail networks, and a skilled workforce rooted in the oil and gas sector.
Up next, the project will be developed in two phases, with the first phase focused on constructing a production line capable of producing up to 25,000 metric tons per annum. The second phase will add a second production line, bringing the total capacity to 50,000 metric tons per annum.
As it moves into the construction stage of the project, the company said it would follow sustainable standards, including responsible corporate practices, climate action, and the energy transition. “Our lithium refinery will be crucial for addressing U.S. national security and supply chain risks. By onshoring critical mineral manufacturing, we are helping to sustain America’s energy leadership,” Stardust Power Founder and CEO, Roshan Pujari, said in a release. “At a time when foreign entities of concern are attempting to consolidate critical minerals, Stardust Power is proud to play a key role in safeguarding American interests and supporting Oklahoma’s local economy,” Pujari said.
Local officials cheered the project for the hundreds of jobs it is projected to create once fully operational, and for its role in helping strengthen the U.S. supply chain for critical minerals by reducing the nation’s reliance on China for the production of critical rare earth elements.
The new cranes are part of the latest upgrades to the Port of Savannah’s Ocean Terminal, which is currently in a renovation phase, although freight operations have continued throughout the work. Another one of those upgrades is a $29 million exit ramp running from the terminal directly to local highways, allowing trucks direct highway transit to Atlanta without any traffic lights until entering Atlanta. The ramp project is 60% complete and is designed with the local community in mind to keep container trucks off local neighborhood roads.
"The completion of this project in 2028 will enable Ocean Terminal to accommodate the largest vessels serving the U.S. East Coast," Ed McCarthy, Chief Operating Officer of Georgia Ports, said in a release. "Our goal is to ensure customers have the future berth capacity for their larger vessels’ first port of calls with the fastest U.S. inland connectivity to compete in world markets."
"We want our ocean carrier customers to see us as the port they can bring their ships and make up valuable time in their sailing schedule using our big ship berths. Our crane productivity and 24-hour rail transit to inland markets is industry-leading," Susan Gardner, Vice President of Operations at Georgia Ports, said.
It appears to have found that buyer in Aptean, a deep-pocketed firm that is backed by the private equity firms TA Associates, Insight Partners, Charlesbank Capital Partners, and Clearlake Capital Group.
Through the purchase, Aptean will gain Logility’s customer catalog of over 500 clients in 80 countries, spanning the consumer durable goods, apparel/accessories, food and beverage, industrial manufacturing, fast moving consumer goods, wholesale distribution, and chemicals verticals.
Aptean will also now own the firm’s technology, which Logility says includes demand planning, inventory and supply optimization, manufacturing operations, network design, and vendor and sourcing management.
“Logility possesses years of experience helping global organizations design, build, and manage their supply chains” Aptean CEO TVN Reddy said in a release. “The Logility platform delivers a mission-critical suite of AI-powered supply chain planning solutions designed to address even the most complex requirements. We look forward to welcoming Logility’s loyal customers and experienced team to Aptean.”