Legislation introduced in the Senate late yesterday would give governors with marine terminal operations in their states the right to invoke federal law to prevent a waterfront labor-management dispute from disrupting the flow of commerce within their borders.
The legislation, cosponsored by Sens. Cory Gardner (R-Colo.) and Lamar Alexander (R-Tenn.) would amend the Taft-Hartley Act, the 1947 labor law that governs most labor-management relations in the United States, to grant the nation's governors sweeping new authority to stop maritime labor conflicts. The bill has been dubbed the "Protecting Orderly and Responsible Transit of Shipments (PORTS) Act."
Under the legislation, a governor in an affected state could request that the president form a special board of inquiry, which would set in motion the legal process leading to the declaration of a national emergency and the implementation of Taft-Hartley. If the president doesn't act within 10 days, the governor could appoint a board of inquiry on his or her own. The panel would have 30 days to produce a report on the situation. Once the report is submitted, the affected governor or governors could petition the federal courts to enjoin strikes, slowdowns, and management lockouts at the ports in their respective states, under the bill.
Under the legislation, only the president could seek an injunction to stop a coastwide slowdown or stoppage; governors can only enjoin work stoppages occurring in their own states. President George W. Bush invoked Taft-Hartley in October 2002 to stop a 10-day management lockout of International Longshore & Warehouse Union (ILWU) workers at 29 West Coast ports.
The bill comes as ports along the West Coast return to normal operations following an 11-month contract fight between ILWU and the Pacific Maritime Association (PMA) that resulted in significant vessel delays and shipment backlogs. During the dispute, management accused the union of engaging in deliberate work slowdowns at key ports like Los Angeles, Long Beach, and Seattle. The Gardner-Alexander bill would include work slowdowns as a trigger for governors invoking Taft-Hartley powers.
On Feb. 20, both sides tentatively agreed to a new five-year contract; the pact was ratified late last month.
Gardner said in a statement on his web site that the bill would give state governments additional tools to help end disputes that can inflict severe damage on state and local economies. Gardner also had harsh words for organized labor's alleged actions during the most recent dispute. "Labor union bosses should not be allowed to hold the economy hostage, nor should they be allowed to use the livelihoods and jobs of millions of Americans as bargaining chips," he said.
Organized labor has never been fond of Taft-Hartley; when it became law on June 23, 1947, labor leaders at the time referred to it as the "slave-labor bill." Congress overrode the veto of President Harry S. Truman, who nonetheless would invoke Taft-Hartley authority 12 times during his presidency.
The ILWU had nothing positive to say about the Gardner-Alexander bill. "The proposed bill is outrageous, extremist, antiworker legislation," said Craig Merrilees, a union spokesman.
Not surprisingly, business groups were pleased with the introduction of a bill to strengthen Taft-Hartley's powers by extending authority to the states. More than 100 groups signed a letter to Gardner applauding him for the legislation. "We believe this approach correctly reforms the Taft-Hartley process to align political incentives and promote government action in the face of great harm to our national economy," the Retail Industry Leaders Association (RILA) said in a separate statement. "Most importantly, the bill clearly defines and expands situations in which Taft-Hartley can be invoked, preventing legal ambiguity from causing further inaction that exacerbates these detrimental port disruptions."
The Agriculture Transportation Coalition, which represents U.S. exporters whose businesses were severely affected by the recent standoff, said the bill will prompt governors to quickly intervene in a labor dispute if the federal government moves too slowly; President Obama did not invoke Taft-Hartley in the most recent dispute, choosing instead to dispatch Labor Secretary Thomas E. Perez in mid-February to facilitate negotiations.
The third-party logistics service provider (3PL) Total Distribution Inc. (TDI) is continuing to grow through acquisitions, announcing today that it has bought REO Processing & REO Logistics.
Terms of the deal were not disclosed, but REO Processing & REO Logistics is headquartered in West Virginia with 10 facilities across West Virginia in Parkersburg, Vienna, Huntington, Kenova, and Nitro as well as in Atlanta, GA.
Headquartered in Canton, Ohio, TDI is a wholly owned subsidiary of Peoples Services Inc. (PSI). The combined TDI and PSI businesses operate over 12 million square feet of contract and public warehouse space located in 65 facilities in eight states including Michigan, Ohio, West Virginia, New Jersey, Virginia, North Carolina, South Carolina, and Florida.
As an asset-based 3PL, the PSI network offers a range of specialized material handling and storage services including many value-added activities such as drumming, milling, tolling, packaging, kitting, inventory management, transloading, cross docking, transportation, and brokerage services.
This latest move follows a series of other acquisitions, as TDI bought D+S Distribution, Inc. and Integrated Logistics Services Inc. in May, and Swafford Trucking, Inc., Swafford Warehousing, Inc., and Swafford Transportation, Inc. in February. The company also bought Presidential Express Trucking, Inc. and Presidential Express Warehousing & Distribution, Inc. in 2023.
The freight equipment original equipment manufacturer (OEM) Wabash will use a federal grant to launch a project with the University of Delaware that will save electricity by incorporating lightweight solar panels into refrigerated trailers and truck bodies, the Indiana company said today.
The three-year project, set to begin next year in partnership with the University of Delaware’s Center for Composite Materials, is intended to play a pivotal role in making zero-emission mid-mile transportation a commercially viable option, Wabash said.
Those materials are important because batteries powering heavy trucks can weigh between 5,000 to 10,000 pounds, often limiting the payload capacity and drawing significant energy from the electrical grid when charging, the partners said.
“This project has the potential to revolutionize refrigerated transport by reducing reliance on the electrical grid and minimizing overall emissions,” Michael Bodey, director of technology discovery and innovation at Wabash, said in a release. “While many of today’s zero-emission products focus on tailpipe emissions, they still draw power from energy grids, which often rely on non-renewable sources. Our goal is to offer a truly green solution—a well-to-wheel approach—that accounts for the full life cycle of energy consumption, from production to usage.”
Pharmaceutical groups are breathing a sigh of relief today after federal regulators granted many of them more time to come into compliance with strict track and trace rules required by the Drug Supply Chain Security Act (DSCSA).
The regulation was initially scheduled to be required by 2023, but that has been delayed due to the steep logistics and IT challenges of managing the reams of data that must be generated, stored, and retrieved. The most recent target update was November 27, but industry experts say many businesses would probably have missed that date, too.
Facing that reality, the FDA yesterday again delayed that deadline until next year, setting new deadlines for various trading partners: Manufacturers and Repackagers have until May 27, 2025; Wholesale Distributors have until August 27, 2025; and Dispensers with 26 or more full-time employees have until November 27, 2025.
Pharmaceutical businesses quickly cheered the move. “HDA and our pharmaceutical distributor members applaud the FDA’s decision to grant an exemption for the DSCSA’s enhanced drug distribution security (EDDS) requirements for eligible trading partners,” said Chester “Chip” Davis, Jr., president and CEO of the Healthcare Distribution Alliance (HDA), which is an industry group representing primary pharmaceutical distributors, who connect the nation’s pharmaceutical manufacturers with pharmacies, hospitals, long-term care facilities, and clinics.
“While many in the supply chain have made significant progress throughout the stabilization period, some are still struggling to establish data connections. Given the interdependency of the pharmaceutical supply chain, FDA’s phased-in approach will allow supply chain partners to better align their data exchange processes to ultimately achieve full implementation and also acknowledges the progress made thus far,” Davis said.
“As we continue to make progress toward full DSCSA implementation, HDA and our distributor members will remain engaged with our public- and private-sector partners to share information and education, as we move toward our shared goal: helping patients and providers safely access the medicines they need.”
For example, millions of residents and workers in the Tampa region have now left their homes and jobs, heeding increasingly dire evacuation warnings from state officials. They’re fleeing the estimated 10 to 20 feet of storm surge that is forecast to swamp the area, due to Hurricane Milton’s status as the strongest hurricane in the Gulf since Rita in 2005, the fifth-strongest Atlantic hurricane based on pressure, and the sixth-strongest Atlantic hurricane based on its peak winds, according to market data provider Industrial Info Resources.
Between that mass migration and the storm’s effect on buildings and infrastructure, supply chain impacts could hit the energy logistics and agriculture sectors particularly hard, according to a report from Everstream Analytics.
The Tampa Bay metro area is the most vulnerable area, with the potential for storm surge to halt port operations, roads, rails, air travel, and business operations – possibly for an extended period of time. In contrast to those “severe to potentially catastrophic” effects, key supply chain hubs outside of the core zone of impact—including the Miami metro area along with Jacksonville, FL and Savannah, GA—could also be impacted but to a more moderate level, such as slowdowns in port operations and air cargo, Everstream Analytics’ Chief Meteorologist Jon Davis said in a report.
Although it was recently downgraded from a Category 5 to Category 4 storm, Milton is anticipated to have major disruptions for transportation, in large part because it will strike an “already fragile supply chain environment” that is still reeling from the fury of Hurricane Helene less than two weeks ago and the ILA port strike that ended just five days ago and crippled ports along the East and Gulf Coasts, a report from Project44 said.
The storm will also affect supply chain operations at sea, since approximately 74 container vessels are located near the storm and may experience delays as they await safe entry into major ports. Vessels already at the ports may face delays departing as they wait for storm conditions to clear, Project44 said.
On land, Florida will likely also face impacts in the Last Mile delivery industry as roads become difficult to navigate and workers evacuate for safety.
Likewise, freight rail networks are also shifting engines, cars, and shipments out of the path of the storm as the industry continues “adapting to a world shaped by climate change,” the Association of American Railroads (AAR) said. Before floods arrive, railroads may relocate locomotives, elevate track infrastructure, and remove sensitive electronic equipment such as sensors, signals and switches. However, forceful water can move a bridge from its support beams or destabilize it by unearthing the supporting soil, so in certain conditions, railroads may park rail cars full of heavy materials — like rocks and ballast — on a bridge before a flood to weigh it down, AAR said.
Seagull Software, which makes “BarTender” label management software, today said it has combined with Mojix, a provider of item-level inventory management and traceability.
As a single company, the combined firms will offer new capabilities in end-to-end supply chain management, leveraging BarTender’s global customer base and value-added channel partner network with more than 250,000 customers across 175 countries.
“We believe that labeling is the key to addressing the traceability challenge,” Dan Doles, now acting CEO and Director of Seagull, said in a release. “BarTender’s labeling software is ubiquitous at the front end of the supply chain, enabling the printing of more than 100 billion labels each year. By combining with Mojix, we will capture and track that data through the supply chain, providing unparalleled item-level traceability and visibility.”
That approach will allow the partners to provide their customers with value-added solutions for compliance, sustainability, serialization, and inventory and asset management requirements across the supply chain ecosystem, according to Chris Cassidy, the newly appointed Chief Revenue Officer of Seagull.