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 property brokers have grown increasingly concerned that personal injury lawyers would capitalize on
the uncertainty surrounding the federal government's truck- grading initiative, known as CSA 2010, to hold them
liable for catastrophic accidents involving truckers hauling their loads.
The plaintiff's bar, always on the lookout for new and lucrative revenue streams, has come to realize this. In
what may be the most extensive tutorial to date, a law firm in Tennessee has prepared a 25-page primer showing plaintiffs'
lawyers how to sue brokers for post-accident damages stemming from an alleged failure to vet a carrier's safety before tendering
a load to its driver.
The primer, called
"Broker Busting B.A.S.I.C.s," was drafted by attorneys at Keith Williams Law Group, a firm with offices
in Nashville and Lebanon, Tenn. The document, which takes the form of a PowerPoint presentation, is divided into five categories:
acquainting lawyers with the many acronyms of the freight world; looking beyond the broker's safety rating of the carrier to
see what actual data was available prior to an accident; identifying the broker's methods of selecting and qualifying carriers;
formulating a plaintiff strategy; and anticipating and countering defense attorney arguments.
The word "B.A.S.I.C.s" is an acronym for "Behavior Analysis and Safety Improvement Categories," a series of safety
categories under which the federal government—through a formula of measurements created by the Federal Motor
Carrier Safety Administration (FMCSA) in the CSA program—grades carrier fitness by analyzing comparative scores.
FMCSA is a subagency of the Department of Transportation (DOT).
CSA, which stands for "Compliance, Safety, Accountability," is aimed at reducing the risk of commercial truck and bus
accidents by identifying carriers that might be at greater risk of crashing. From 2009 to 2012, there were, on average,
125,000 crashes per year involving large trucks and buses, according to the U.S. Government Accountability Office (GAO),
which recently issued a report on the effectiveness of the CSA program. Those accidents resulted in about 78,000 injuries
and 4,100 deaths per year, GAO said.
The firm crafted its presentation near the end of 2013 and has included it in a series of webinars conducted for personal
injury lawyers, according to a person familiar with the matter. While it is not a new practice for plaintiffs lawyers to "go
up the supply chain" to pursue personal injury claims against brokers or shippers, the Williams presentation is the most
detailed effort yet to craft an instructional presentation, the person said. Keith Williams, one of the attorneys in the
two-man firm, did not respond to an e-mail request for comment.
On the cover page, the firm said the document's objective is to help make "our highways safer by taking 'trucking cases'
beyond the driver and motor carrier to the negligent brokers who hire them." Separately, on its website, the firm said the broker
industry has "attempted to push all responsibility onto the feet of others and avoid any liability when they hire unsafe carriers."
According to the firm's website, brokers are being advised by industry leaders to not consider the CSA's safety measurement
formula when evaluating a carrier and should instead just rely on whether a carrier holds government authority to haul freight.
The firm, however, believes that brokers should use the BASIC scores because they are developed through reliable and current data.
By contrast, the safety criteria used by regulators to award operating authority become obsolete almost as soon as the permit is
issued, according to the firm. Because the FMCSA has limited resources and can only re-evaluate a fraction of carriers each year,
many carriers operate over long periods of time with an "extremely outdated assessment," the firm said.
The firm's position conflicts with a key finding of the GAO report, which said that flaws in the grading system's methodology
itself make it difficult to reliably assess the safety risks of most carriers. The report found that most truckers lack sufficient
safety data to ensure that their performance can be properly evaluated and compared to other carriers. About 95 percent of the
nation's fleets operate less than 20 vehicles, and FMCSA lacks the funding to inspect such a broad spectrum frequently enough to
collect even the minimum amount of data needed to generate a reliable safety grade, GAO said.
The GAO report urged FMCSA to revise its methodology to demonstrate its limitations in gathering safety information and for using it to compare carrier performance. Those limitations should also be taken into account when FMCSA determines a carrier's fitness to operate, the report said. More than 500,000 licensed carriers operate on U.S. roads in any given year.
NEGLIGENT HIRING SEEN AS BETTER SHOT
Of the two types of injury claims that can be brought against brokers, the practice of "negligent hiring," where plaintiffs
attorneys allege that brokers either failed to examine or ignored CSA scores before hiring a carrier, shows the most potential,
the attorneys said. That's because advances in technology give brokers visibility into up-to-date carrier information, and a jury
won't look favorably on a broker they believe didn't check the trucker's safety record before it was retained to move a load, they
said.
The claim of "vicarious liability," which aims to show the presence of an employer-employee relationship between brokers and
carriers, is more difficult to prove, the attorneys said. That's because brokers structure their contracts with detailed language
showing that the carrier functions as an independent contractor and that no employment relationship exists between the parties,
they said.
Shipper, trucker, and broker executives, and the attorneys representing them, contend that Congress or DOT must clarify FMCSA's
responsibility as the safety steward of the nation's roads. They argue that FMCSA has abdicated its role as safety arbiter by
leaving it up to shippers and brokers to interpret the CSA methodology to determine if a trucker is fit to operate. Without
specific agency language stating that a carrier is fit or unfit, a broker faces enormous liability if a trucker it selects is
involved in a catastrophic crash, they said. That a nonpartisan agency like the GAO concluded that the methodology is based on
unreliable data only adds to brokers' angst, they said.
In the wake of a crash, plaintiffs' lawyers will generally not pursue a small trucker with relatively few assets and liability
coverage that may not begin to compensate victims of a catastrophic accident, they said. Instead, they will go after deep-pocketed
brokers and, in a growing number of instances, the shippers that hired them, they said.
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.