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 truck brokers sued over their alleged negligent hiring of a trucker involved in a serious or fatal accident would need only show the carrier held proper federal operating authority and met minimum insurance requirements to likely prevail in court, according to critics of a Senate bill passed last week reauthorizing federal transport spending for the next six years.
The provision, contained in legislation approved by the Senate Commerce Committee, makes it significantly easier for shippers and brokers to insulate themselves from the legal consequences of failing to vet a carrier's safety record before hiring the carrier, highway-safety advocates said today in a conference call with reporters. Henry Jasny, vice president of Advocates for Highway and Auto Safety, an advocacy group, said the bill requires shippers and brokers to meet just the bare-minimum standards for carrier hiring and still successfully defend themselves in court if they are sued for damages after the carrier was in an accident.
Personal-injury lawyers have brought a number of successful cases in state courts against brokers on grounds that they were negligent in reviewing a carrier's safety history before hiring them to move a shipper's load. Plaintiffs' attorneys have also persuaded juries that carriers were in the brokers' employ at the time of an accident.
Brokers have maintained that they only engage truckers on a transactional basis, that drivers are not on brokers' payrolls, and that they do a thorough job of vetting a carrier's safety fitness beforehand. The Transportation Intermediaries Association (TIA), the lead broker trade group, has lobbied Congress for a nationwide hiring standard for carriers that would set specific criteria for choosing a safe motor carrier. Robert A. Voltmann, TIA's president and CEO, was unavailable to comment.
The alleged broker-friendly language was just one item on a laundry list of concerns voiced by safety advocates over the bill, the "Comprehensive Transportation and Consumer Protection Act of 2015." The bill was approved last Wednesday by a 13-11 margin, with no Democrat voting for its passage. It will be consolidated with legislation passed by the Senate Environment and Public Works Committee to form the Senate's version of what has been commonly known as the "Highway Bill." The consolidated bill is expected to reach the Senate floor as early as this week.
Sens. Richard Blumenthal (D-Conn.) and Edward Markey (D-Mass.), appearing on the conference call, said they would pull out all the stops to prevent passage of a bill they said is anti-safety. "This is a devastating missed opportunity" to reduce accidents and deaths on the road, Blumenthal said during the call.
Sen. Dianne Feinstein (D-Calif.), is expected to introduce an amendment to prevent the rollout of 33-foot twin trailers on all federal-aid highways until the Department of Transportation conducts a study on their safety. The current federal limit is 28 feet per trailer, though 18 states allow the larger equipment on their portions of federal-aid roads. Supporters of the provision, which has been included in House and Senate versions of the Department of Transportation's fiscal year 2016 appropriations, said the longer trailers come with equally long wheelbases that improve stability and performance. They added that the longer trailers would enable shippers to load more cargo into the same number of vehicles, thus cutting the number of trips by the thousands. Safety groups said the nation's highways, in particular merge lanes and on-off ramps, were not designed or built to accommodate tractor-trailers 10 feet longer than the current threshold.
Advocates for Highway and Auto Safety attacked a provision to remove from public view the carrier safety scores developed under the Federal Motor Carrier Safety Administration's "Compliance, Safety, and Accountability" program, better known as CSA. The scores would not be made public until the Transportation Research Board, required under the Commerce Committee's bill to study the controversial CSA program, publishes its report, and recommendations from a corrective action plan have been implemented. The American Trucking Associations (ATA) has long urged FMCSA to withdraw the carrier grades, saying the methodology doesn't effectively identify high-risk carriers and relies on a limited amount of data. Safety groups said the measure shields unsafe carriers from necessary public scrutiny.
Safety advocates also said they would oppose language in the bill that would authorize the DOT secretary to launch a six-year pilot program to allow states to enter into reciprocal agreements authorizing licensed truck drivers between 18 and 21 to operate on interstate highways. Under current law, drivers cannot operate a commercial motor vehicle in interstate commerce until they turn 21. However, licensed drivers between 18 and 21 can operate within the borders of the states where they are licensed.
Jackie Gillan, head of the group, said accident rates in states that allow 19- and 20-year-old drivers to operate in intrastate commerce are 4 to 6 times higher than in states that don't. Gillan said lawmakers should be working toward limiting the ability of drivers under the age of 21 to operate heavy-duty trucks, not expanding their opportunities. Trucking interests that face a worsening driver shortage said it is absurd that a driver can, for example, operate 500 miles within California but not be allowed to drive 50 miles to and from any of the states that border it.
The Senate is racing to beat a deadline of July 31, when the most recent extension of federal transport-funding authorization is set to expire. The House voted last week to extend the program until the end of the year so it could work on a long-term plan to fund it. The Senate has yet to vote on an extension. The White House has said it will support an extension until the end of the year, but sources in Washington said President Obama has no intention of going beyond that.
Federal projects are financed through excise taxes on diesel fuel and gasoline. The proceeds are deposited in a trust fund that disburses the money. Those taxes have not been raised since 1993, and federal spending on transportation has been falling in inflation-adjusted terms as vehicle-miles traveled have declined and more fuel-efficient vehicles require fewer fill-ups at gas stations.
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
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.
Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).
While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.
In addition to its human toll, the storm could exert serious business impacts, according to the supply chain mapping and monitoring firm Resilinc. Those will be largely triggered by significant flooding, which could halt oil operations, force mandatory evacuations, restrict ports, and disrupt air traffic.
While the storm’s track is currently forecast to miss the critical ports of Miami and New Orleans, it could still hurt operations throughout the Southeast agricultural belt, which produces products like soybeans, cotton, peanuts, corn, and tobacco, according to Everstream Analytics.
That widespread footprint could also hinder supply chain and logistics flows along stretches of interstate highways I-10 and I-75 and on regional rail lines operated by Norfolk Southern and CSX. And Hurricane Helene could also likely impact business operations by unleashing power outages, deep flooding, and wind damage in northern Florida portions of Georgia, Everstream Analytics said.
Before the storm had even touched Florida soil, recovery efforts were already being launched by humanitarian aid group the American Logistics Aid Network (ALAN). In a statement on Wednesday, the group said it is urging residents in the storm's path across the Southeast to heed evacuation notices and safety advisories, and reminding members of the logistics community that their post-storm help could be needed soon. The group will continue to update its Disaster Micro-Site with Hurricane Helene resources and with requests for donated logistics assistance, most of which will start arriving within 24 to 72 hours after the storm’s initial landfall, ALAN said.