A new 63-month contract representing 8,200 Teamsters union members employed at less-than-truckload (LTL) carrier ABF Freight System will take effect this Sunday after the ABF rank-and-file ratified all local and regional agreements known as "supplementals," the union and ArcBest, ABF's parent, said today.
The national or "master" contract is retroactive to April 1 and runs through June 30, 2023. The company and Teamster union leaders reached a tentative contract agreement in March. The rank-and-file ratified the national contract in mid-May. The master contract could not go into effect without all supplementals being ratified.
Under the agreement, ABF Teamsters will receive annual wage increases totaling $2.00 an hour over the contract's life; the wage increases are retroactive to July 1. One week of vacation time that was conceded by the members in the 2013 contract has been restored. Each full-time employee will receive a $1,000 ratification bonus, while each so-called casual employee, or a worker given work when it's needed with no guarantee of future labor, will receive a $500 bonus.
Contributions to multiemployer pension plans, a bone of contention during the negotiation process, are to remain at current rates for each ABF pension fund. A wide pension contribution gap exists between ABF and its main unionized rival, YRC Worldwide, Inc. ABF executives have said the differential presents a cost headwind in competing against YRC.
The agreement makes changes to language covering the use of purchased transportation, or transportation services outsourced to non-ABF drivers. The company said in a statement announcing the agreement that the language provides "certain protections" for ABF's drivers. It did not elaborate.
The contract calls for profit-sharing bonuses to kick in whenever ABF achieves an operating ratio of 96 percent or below for a full calendar year. An operating ratio is the ratio of revenues over expenses. In 2017, ABF posted an operating ratio of 97.2 percent.
In the statement, Judy R. McReynolds, Fort Smith, Ark.-based ArcBest's chairman, president and CEO, called the agreement a "positive step forward" for the company. "Our goal was to achieve a contract that was fair to employees and affordable for the company," McReynolds said. The Teamsters issued a brief statement announcing the news. The statement did not offer up any comments from union officials.
Teamster Local 25, the Boston-based local whose president, Sean M. O'Brien, was an outspoken opponent of the agreement, made no mention of the most recent developments on its website. The dissident group Teamsters for a Democratic Union (TDU), which also had a dim view of some of the contract's proposed language, did not post any comment on its website.
Though the rhetoric became heated at times, the process of negotiation and ratification was a far cry from 2013 when about 1,800 workers in the Midwest refused to sign off on their local supplements. The main contract had been ratified in June, but all supplements weren't ratified until that October.
At the time, the members threatened to authorize a strike vote, which union leaders warned could cause such a disruptive ripple effect that ABF might be forced to shut down. The members refused to do so, however, clearing the way for the supplements to be ratified and the contract to take effect.
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.