Skip to content
Search AI Powered

Latest Stories

newsworthy

Court panel upholds government's ELD mandate; rejects driver group's constitutionality argument

Analysts don't foresee much impact on capacity next year.

A federal appeals court has upheld the federal government's mandate that all commercial truck drivers have electronic logging devices (ELDs) in their cabs by Dec. 31, 2017, dealing a severe blow to the nation's largest truck-driver group, which asked the court to strike down the rule as unconstitutional.

A three-judge panel of the U.S. 7th Circuit Court of Appeals ruled late yesterday that the Federal Motor Carrier Safety Administration (FMCSA) had satisfied the concerns raised by opponents about the controversial mandate, which had been blocked by the same court more than five years ago on grounds that it had failed to protect drivers from fleet owners and operators that might use the technology to harass them about their whereabouts. The agency in December 2015 published a modified rule to embed what it termed strict language protecting drivers against any efforts to use the equipment to harass them.


Most important, the appellate court panel rejected claims by the Owner-Operator Independent Drivers Association (OOIDA) that the rule violated 4th Amendment rights against unreasonable searches and seizures by requiring the prolonged use of a warrantless GPS device.

In a statement, OOIDA President Jim Johnston said the group is weighing a response to the ruling. Johnston has previously called the ELD mandate, which would end drivers' decades-long reliance on paper logbooks, the most far-reaching regulation in the trucking industry's history.

The court held oral arguments in mid-September on the issue. In the weeks that followed, a consensus emerged among industry analysts and executives that the constitutional argument would fall short and that the court would uphold the mandate. Such a scenario would likely be too much of a legal hurdle for OOIDA to overcome, according to analysts.

As of late last year, FMCSA estimated that about 3.4 million drivers would be affected by the ELD mandate. Many large truckers have already installed ELDs, but smaller operators and independent drivers have held back, concerned about compliance costs and uncertain about which way the legal winds would blow. About 20 to 40 percent of all trucks now have ELDs, according to industry estimates. Those estimates, though, have much variability to them.

Publicly traded truckload carriers have estimated that ELD compliance could remove between 4 and 8 percent of capacity, as small carriers and solo drivers exit the market due to higher costs and rigorous hours-of-service monitoring. Scott Group, analyst for investment firm Wolfe Research LLC, said in a note late today that the mandate "should make it tougher for small carriers to cheat" on the hours-of-service rules.

The ELD issue should have little impact on truckload supply during 2017, in part because many carriers will wait until year's end to comply, analysts said. A sustainable pickup in demand will have a more material impact on capacity next year than will ELD compliance, they said. In the near term, however, demand doesn't appear to be picking up in a meaningful manner, they added.

The Latest

Artificial Intelligence

AI: Is it the real deal?

More Stories

Logistics economy picked up speed in January

Logistics Managers' Index

Logistics economy picked up speed in January

Economic activity in the logistics industry expanded in January, growing at its fastest clip in more than two years, according to the latest Logistics Managers’ Index (LMI) report, released this week.

The LMI jumped nearly five points from December to a reading of 62, reflecting continued steady growth in the U.S. economy along with faster-than-expected inventory growth across the sector as retailers, wholesalers, and manufacturers attempted to manage the uncertainty of tariffs and a changing regulatory environment. The January reading represented the fastest rate of expansion since June 2022, the LMI researchers said.

Keep ReadingShow less

Featured

Disrupting the furniture supply chain: An interview with Jay Rogers

Disrupting the furniture supply chain: An interview with Jay Rogers

As commodities go, furniture presents its share of manufacturing and distribution challenges. For one thing, it's bulky. Second, its main components—wood and cloth—are easily damaged in transit. Third, much of it is manufactured overseas, making for some very long supply chains with all the associated risks. And finally, completed pieces can sit on the showroom floor for weeks or months, tying up inventory dollars and valuable retail space.

In other words, the furniture market is ripe for disruption. And John "Jay" Rogers wants to be the catalyst. In 2022, he cofounded a company that takes a whole new approach to furniture manufacturing—one that leverages the power of 3D printing and robotics. Rogers serves as CEO of that company, Haddy, which essentially aims to transform how furniture—and all elements of the "built environment"—are designed, manufactured, distributed, and, ultimately, recycled.

Keep ReadingShow less
chart of GenAI effect on workforce

Gartner: GenAI tools create anxiety among employees

Generative AI (GenAI) is being deployed by 72% of supply chain organizations, but most are experiencing just middling results for productivity and ROI, according to a survey by Gartner, Inc.

That’s because productivity gains from the use of GenAI for individual, desk-based workers are not translating to greater team-level productivity. Additionally, the deployment of GenAI tools is increasing anxiety among many employees, providing a dampening effect on their productivity, Gartner found.

Keep ReadingShow less
warehouse worker driving forklift between racks

German 3PL Arvato acquires two U.S. logistics firms

The German third party logistics provider (3PL) Arvato this week acquired the U.S.-headquartered companies Carbel LLC and United Customs Services, saying the move would grow its client base, particularly in the fashion, beauty, and lifestyle segments.

According to Arvato, it made the move in order to better serve the U.S. e-commerce sector, which has experienced high growth rates in recent years and is expected to grow year-on-year by 5% within the next five years.

Keep ReadingShow less
photo collage of warehouse tech

Supply chain pros are wary of inflation and labor woes

The top worries that supply chain leaders hope to address with new innovations this year include inflationary concerns (68%) and labor shortages (50%), according to a survey on innovation from the third-party logistics provider (3PL) Kenco.

And many of them will have a budget to do it, since 51% of supply chain professionals with existing innovation budgets saw an increase earmarked for 2025, suggesting an even greater emphasis on investing in new technologies to meet rising demand, Kenco said in its “2025 Supply Chain Innovation” survey.

Keep ReadingShow less