March 20, 2024 - Norfleet Transportation

trucking

Truck Transportation Employment Remains Stable, Warehouse Jobs Continue to Decline

The latest monthly report from the Bureau of Labor Statistics (BLS) shows a mixed picture for the transportation industry. While trucking employment was relatively flat in February, warehousing employment also fell significantly. Truck Transportation Sector The trucking sector lost 300 jobs in February, the smallest single-month change since August 2022. Total industry employment is now 1,551,200. However, the number of employees in January of 1,551,500 was revised downward by 4,200 after seasonal adjustment. The December value was also revised downward by 1,500 positions, bringing the total to 1,551,800 positions. Despite these downward revisions, February’s total employment of 1,551,200 is still 3,000 more than October. Warehouse Sector In contrast to the trucking sector, employment in the warehousing sector has been steadily declining. The sector lost 6,800 jobs in February, bringing the total number of jobs to 1,758,700. This is 183,500 fewer than the peak of 1,942,200 reached in May 2022. Other key findings Weekly truckload employment hours for non-managerial workers decreased to 40.3 hours in January, the lowest level since April 2020. Monthly truckload employment data is on the decline, with January employment reaching its lowest level of 544,300. The highest level since May 2022. Railway employment in February decreased slightly to 152,800, but was still higher than the previous year’s 151,400. Industry Insights David Spencer of Arrive Logistics attributes the stability in truck transportation employment to the relative stability in truckload demand. “Strong consumer spending and a rundown of inventories have retailers returning to just-in-time ordering patterns,” he said. Mazen Danaf of Uber Freight highlights the decline in hours worked by truck drivers, suggesting a potential shortage of drivers. “The weekly figure for January fell ‘sharply’ in the past year to 40.3 hours, which was close to the level of April 2020, the depth of the pandemic,” he said. Conclusion The latest employment report released by the BLS paints a mixed picture for the transportation industry. Employment in trucking is relatively stable, but employment in warehousing continues to decline. Industry experts attribute these trends to factors such as consumer spending, inventory levels and driver availability.

March 20, 2024 No Comments

trucking

Trucking Industry Faces Prolonged Downturn | Insights from Leading Providers

Explore the latest insights from major trucking industry players, revealing a prolonged downturn expected until mid-2024. Discover the factors contributing to this trend and how trucking companies are adapting to navigate the challenges. Trucking Heads Kick Can Further into 2024 The trucking industry is facing a prolonged downturn, with little change in demand expected until at least mid-2024. This is according to comments made by heads of some of the largest publicly traded truckload (TL) providers at the Stephens 25th Annual Investment Conference in Nashville, Tennessee. The sentiment aligns with a recent report from freight payments platform Cass Information Systems (NASDAQ: CASS), which said October produced a cycle low for shipments. Landstar System (NASDAQ: LSTR) Freight broker Landstar System said the market is a little softer than it was at the end of October when it reported third-quarter earnings and provided fourth-quarter guidance. The company said it doesn’t expect a peak season this year. “There’s no excitement out there — whether it’s the parcel carriers, the shippers — or anybody who thinks this thing is going to turn anytime soon,” said Jim Gattoni, Landstar president and CEO. He said sequential seasonal patterns have been lower than normal in every month of 2023. He reiterated the company’s fourth-quarter outlook but now expects results to shake out closer to the middle or the lower end of the range. He doesn’t see spot rates stepping materially higher until next year and said that it usually takes better demand versus capacity attrition to move the market. Turnover among Landstar’s business capacity owners, a proxy for truck capacity, is 39% this year, which is in line with the 36% rate recorded during the 2019 downturn. “We’re continuing to pull down,” Gattoni said about spot rates. “But I think by the time we get into 2024, maybe midsummer, we’ll start seeing regular seasonal patterns again.” Werner Enterprises (NASDAQ: WERN) Management from TL carrier Werner Enterprises noted a “fairly muted” peak season. It said volumes have been steady to slightly better than last year’s peak but pricing has been weaker, resulting in lower revenue year over year (y/y). The company has seen “no surprises to the negative” since its Nov. 1 earnings report. However, it noted the next four weeks are very important to the fourth-quarter result. Werner didn’t provide a pricing outlook for next year but said that its contract rates have already fully reset lower and an elevated cost structure means “there isn’t much to give” even as inflation moderates. Werner’s fourth-quarter outlook calls for revenue per total mile in its one-way segment to be flat to slightly down from the third quarter but off 7% to 9% y/y. Revenue per truck per week in its dedicated unit is expected to finish 2023 flat to up 3% y/y. Werner said it will continue to focus on cost control but didn’t provide a time frame for an eventual turnaround. “History has indicated that it won’t take much of a blip in demand along with the ongoing decrease in supply … . The ‘when’ is hard to say,” said Craig Callahan, Werner’s chief commercial officer. J.B. Hunt Transport Services (NASDAQ: JBHT) Multimodal provider J.B. Hunt Transport Services provided a more upbeat tone, at least for its intermodal segment. The company said it expects intermodal volumes to grow in the fourth quarter and that it has seen some improvement in pricing. However, J.B. Hunt also noted that the trucking market is “still soft” and that it is “not seeing a lot of demand growth.” The company said it is “cautiously optimistic” about the future but that it is “not expecting a V-shaped recovery.” Conclusion The trucking industry is facing a prolonged downturn, with little change in demand expected until at least mid-2024. This is due to a number of factors, including the ongoing war in Ukraine, the Federal Reserve’s interest rate hikes, and the global economic slowdown. As a result, trucking companies are being forced to cut costs and reduce capacity. This is leading to lower spot rates and contract rates. It is also making it more difficult for trucking companies to find and retain drivers. The trucking industry is expected to eventually recover, but it is unclear when this will happen. In the meantime, trucking companies are being forced to adapt to the new market conditions.

March 20, 2024 No Comments

trucking

Navigating the Freight Cycle Bottom | November’s Declines and Signs of Stabilization

Explore the latest data from the Cass Freight Index, revealing a continued decline in shipments and expenditures in November. Uncover insights into the ongoing formation of the freight cycle bottom and signs that suggest stabilization in the near future. Freight Cycle Bottom Continues to Form in November The Cass Freight Index, a measure of freight shipments and expenditures, showed further declines in November, indicating that the freight cycle bottom is still forming. Shipments Shipments were down 8.9% year over year (y/y) in November and 1.3% from October (up 0.3% on a seasonally adjusted basis). This brings the Cass shipments index to its lowest level since January 2022. However, the report suggests that the declines are flattening, with December also likely to produce a 9% y/y decline. Expenditures Freight expenditures were off 25.6% y/y and down 1.3% from October (up 0.9% seasonally adjusted). The November reading was the lowest since February 2021. However, excluding the change in shipments, actual rates were roughly flat with October (up 0.6% seasonally adjusted). Truckload Linehaul Index The Cass truckload linehaul index, which excludes fuel and accessorials, fell to a cycle low, down 0.3% sequentially and 7.5% y/y. The index was at its lowest level since February 2021 during the month, but the y/y declines continued to narrow. Compared to two years ago, the index was down 5.9%. Analysis ACT Research’s Tim Denoyer believes that the acceleration in real disposable incomes, supported by disinflation and a strong labor market, suggests that demand fundamentals will improve in 2024. He also expects modest y/y growth in consumer spending this holiday season, driven by the same factors. Denoyer notes that recent private fleet expansions have pulled some freight out of the for-hire trucking market, but that overall, softer rates are pushing “net revocations of operating authorities to a record net pace.” Conclusion The freight cycle bottom continues to form, with shipments and expenditures declining. However, the declines are flattening, and there are signs that demand fundamentals may improve in 2024. This suggests that the freight market is likely to stabilize in the coming months.

March 20, 2024 No Comments

trucking

Logistics Managers’ Index (LMI) Indicates Growth in Transportation Sector

Discover the latest trends in the transportation industry with insights from the Logistics Managers’ Index (LMI). Learn why prices have surged for the first time in 19 months and what it means for the sector’s growth. Transportation Prices Rise for the First Time in 19 Months Recently, the transportation industry has changed a lot. Prices have gone up for the first time in 19 months. The Logistics Managers’ Index (LMI), which checks how well the logistics industry is doing, tells us this. In January, the LMI went up by 5 percentage points to 55.6. All eight parts of the index show growth. This is the fifth time in six months that the LMI has grown. Prices for transportation are higher because retailers have more stuff to sell. After the busy holiday season, stores need more transportation to restock their shelves. There are more trucks and drivers available now, which also pushes up transportation prices. The rise in prices is good for the logistics industry. It means the industry is growing again after a long time of not doing well since 2022. But, there are still problems the transportation industry faces. These include more expensive fuel, not enough truck drivers, and COVID-19 still causing issues. Despite these problems, the transportation industry should keep growing in the next months because the need for transportation stays high. Here are more details from the LMI report: – Transportation use was weaker in the last part of January but still growing. – Prices for transportation are rising faster than the available capacity, which shows things are changing. – Lowering interest rates could help the transportation industry even more. – There’s more stuff in inventory for the first time in three months. – Companies at the end of the supply chain are restocking quickly, but those at the start are reducing their stock. Overall, the LMI report says good things about the transportation industry. It’s growing again, and the need for transportation should stay strong.

March 20, 2024 No Comments

trucking

Insights into February’s Transportation Trends: Prices Climb as Capacity Expands

Discover the latest insights from a recent supply chain report highlighting transportation trends in February. Despite a second consecutive month of price growth, the transportation industry faces a landscape where capacity is expanding at a faster rate, suggesting a transition phase rather than a full recovery. Transportation Prices Rise in February, but Capacity Grows Faster The transportation industry saw a second consecutive month of growth in prices during February, according to a recent supply chain report. However, the rate of growth in transportation capacity was higher, indicating that a meaningful recovery in the freight cycle is not yet underway. Transportation Prices The sub index for transportation prices increased 1.8 percentage points to 57.6 in February, indicating expansion in the sector. This follows a period of contraction that lasted from July 2022 to December 2022. Upstream firms, such as wholesalers and manufacturers, reported stronger price increases than downstream firms, such as retailers. The overall transportation pricing subindex slowed slightly in the latter half of February, registering a 52.4 compared to 62 in the first two weeks of the month. Transportation Capacity Transportation capacity expanded further in February, with the subindex rising 6.4 points to 60.9. Utilization also increased by 1.5 points to 56.5. The report suggests that the growth rate in capacity outpacing the growth rate in pricing indicates that the freight market has not yet entered a true growth period. However, an inflection point may be on the horizon. Outlook Survey respondents expressed a slightly positive outlook for transportation capacity one year from now, with a reading of 50.5. The outlook for prices was more pronounced, with a reading of 77.1. This suggests that respondents expect prices to continue to rise in the coming year. Inventory Levels Inventory levels also increased in February, with the subindex rising 5.7 points to 58.5. This indicates that firms are restocking after running down inventories over the holidays. Upstream companies reported stronger inventory growth than downstream companies. The outlook for inventories one year from now was 60.1, which was slightly lower than in January. Conclusion The transportation industry is experiencing a period of transition, with prices rising but capacity growing at a faster rate. While a meaningful recovery in the freight cycle is not yet underway, the outlook for the coming year is cautiously optimistic. Firms are restocking inventories, and respondents expect prices to continue to rise.

March 20, 2024 No Comments

trucking

The Impact of Nuclear Rulings, Speed Limits, and Noncompete Agreements on Trucking Brokers

Explore the complex landscape of the trucking industry and its challenges for brokers, including nuclear verdicts, speed limit regulations, and noncompete agreements. Learn how brokers can safeguard their businesses and adapt to industry changes effectively. Why Brokers Should Care About Nuclear Verdicts and Speed Limiters The trucking industry has a lot of problems to deal with, like nuclear rules, speed limits, and agreements not to compete. Brokers, who connect trucking companies with clients, must understand these issues and how they impact their work. Nuclear Rulings Sometimes, when there are really bad accidents involving trucks, courts give huge amounts of money to the victims or their families. These are called “nuclear verdicts.” They can make trucking companies go bankrupt. Courts look at how bad the injury or death is, whether the truck company or driver did something wrong, and how much insurance they have. To protect themselves from these huge payments, brokers can: – Make sure the trucking companies they work with have enough insurance. – Choose trucking companies with good safety records. – Teach their clients about the risks of these big payments. Speed Limits Trucks might have devices that keep them from going too fast. The government is thinking about making these devices mandatory for all trucks. Some people think this is good because it saves fuel and cuts pollution. But others worry it will take longer to travel, be harder to pass other vehicles, and cost a lot to install and maintain. Brokers need to think about how these speed limits might change their business. If trucks have to go slower, brokers might need to adjust their plans and prices. Noncompete Agreements When workers leave a company, they might agree not to work for a competitor for a while. These are called noncompete agreements. They’re common in trucking, but people are starting to question if they’re fair. Some say they make it hard for workers to find new jobs and keep wages low. Many states are making laws to limit these agreements. Brokers should know about these laws and how they affect their work. In Conclusion The trucking industry has many challenges, like big court payments, speed limits, and noncompete agreements. Brokers need to understand these challenges to keep their businesses running well. They can do this by protecting themselves and adapting to changes in the industry.

March 20, 2024 No Comments

trucking

Strong Class 8 Truck Orders Defy Weak Trucking Market Trends in February

Despite prevailing weak trucking market conditions, preliminary reports from FTR Transportation Intelligence and ACT Research reveal robust Class 8 truck orders in February. Learn more about the surprising resilience of the trucking industry amid challenging economic factors. FTR, ACT Report Solid but Not Stellar New Class 8 Truck Build Numbers The weak trucking market is not yet having a significant impact on new truck orders, which remained reasonably strong in February, according to the two firms that most closely track the level of activity. FTR Transportation Intelligence reported that preliminary orders for Class 8 vehicles in February were 25,700 units, down 9% from January but up 11% from February 2023. FTR said the number was “above seasonal expectations.” ACT Research reported that its preliminary not seasonally adjusted figure for Class 8 orders in February was 27,700 units, which came in at 25,600 units after seasonal adjustment. The not seasonally adjusted number was up 5% from January. In a statement, ACT President and Senior Analyst Kenny Vieth said that conditions in the trucking market might suggest that the order book should be trending down, but that is not the case. “Weak freight and carrier profitability fundamentals, and large carriers guiding to lower capex in 2024, would imply pressure in US tractor, the NA Class 8 market’s largest segment,” Vieth said. “While we do not yet have the underlying detail for February order volumes, Class 8 demand continuing at high levels again this month suggests that US buyers continue as strong market participants.” ACT Research said orders for Class 5-7 vehicles in February were 18,800 units, an annual increase of 7%. With seasonal adjustment, the total for the medium-duty class of vehicles was 17,900 units, a drop of 13% from the prior month. ACT Research said that figure is the lowest seasonally adjusted figure in 13 months. FTR, in its statement commenting on the market, saw a balancing taking place at lower numbers than a few months ago. “Concerns of a rapid easing of demand in 2024 are not coming to fruition nor is the market doing significantly better than replacement level orders,” the statement said. “After peaking last November at 36,000 units, orders have stabilized at a level roughly 10,000 units lower over the last three months.” FTR Chairman Eric Starks said FTR projects that build rates will be at replacement rates by the end of the year. But he said that at present, “order levels were above the historical average and above seasonal trends.”

March 20, 2024 No Comments

trucking

The Bullish Outlook on Industrial Real Estate in Borderlands Mexico

Discover how Meor’s groundbreaking $1.7 billion investment in industrial development along the US-Mexico border is reshaping the landscape of nearshoring and trade dynamics. Learn about their strategic plans and key projects in Tijuana, Monterrey, and beyond. Meor Plans $1.7 Billion Industrial Development Portfolio on US-Mexico Border As nearshoring continues to attract manufacturers to prime locations in Mexico, real estate firm Meor is making a significant investment in the development of industrial space along the border. Meor, based in Mexico City, has announced plans to develop a multiphase portfolio of 13 industrial projects totaling over 18 million square feet. The company has engaged Cushman & Wakefield, a global real estate services firm, to assist in securing equity partners for the $1.7 billion project. “The Mexico industrial market has experienced unprecedented growth in recent years driven by both the headlining tailwinds of nearshoring and the exponential growth of e-commerce,” said Ernesto Sanchez, Cushman & Wakefield’s vice president of institutional equity, debt, and structured finance. “This is a robust industrial development portfolio of best-in-class industrial parks that will be strategically positioned in several of Mexico’s strongest industrial markets to service both existing, expanding users, and new entrants alike.” Mexico has emerged as the top overall U.S. trading partner, with bilateral trade reaching $798 billion in 2023. This growth has been fueled by increased exports of gasoline and other fuels, as well as imports of passenger vehicles. According to Meor, the vacancy rate for industrial space in key Mexican locations along the border is hovering around 1%, indicating strong demand and limited availability. Meor is seeking initial investment partners to contribute $300 million towards the development of a 5.7 million-square-foot industrial park in Tijuana, Mexico. The Tijuana industrial park will be a five-phase project constructed on the “last land-site of scale in proper Tijuana,” according to Cushman & Wakefield. The project is expected to have a total capitalization of nearly $700 million upon completion. Tijuana, the largest city in the Mexican state of Baja California, is strategically located across the border from San Diego, California, and has a population of approximately 2.3 million. Foreign companies seeking to diversify their supply chains have increasingly turned to Mexican border states in recent years. The Cali-Baja mega-region, encompassing Southern California and northern Baja California, has emerged as a major beneficiary of these evolving global trade flows. From January through September 2023, Baja California attracted $1.1 billion in foreign direct investment, accounting for 3.6% of the national total. This placed the state ninth among Mexico’s 32 states in terms of foreign direct investment. Baja California is home to over 950 maquiladora factories, of which 621 are located in Tijuana. Maquiladoras are factories in Mexico operated by foreign companies that export their products back to the country of origin. In addition to Tijuana, Meor plans to develop industrial parks in Monterrey, Mexico, approximately 135 miles south of Laredo, Texas. Following the initial phase of developments in Tijuana and Monterrey, the company aims to expand into Ciudad Juarez, Guadalajara, Mexicali, and Torreon. Ciudad Juarez, situated across the border from El Paso, Texas, is expected to host the largest single project, accounting for approximately 37% of the total 18.3 million-square-foot portfolio. “This is a very special opportunity for a U.S. capital partner/investor to establish a long-term, programmatic relationship with Meor, a premier developer with deep ties to the highly competitive and relationship-driven Mexico market,” said Sanchez.

March 20, 2024 No Comments

trucking

Navigating the Impact of AT&T Outage on Trucking Technology

Learn how the recent AT&T outage is affecting transportation technology platforms and electronic logging devices (ELDs) in the trucking industry. Truck Tech Impacted by AT&T Outage: What’s Happening On Thursday morning, AT&T experienced widespread outages of its cellular networks across the United States. While there have been no mass reports of driver connectivity issues, back-end TMS and visibility systems are experiencing outages. Transportation tech platforms such as Motive, Samsara, and Trimble have reported issues, warning customers of potential problems. These systems rely on cellular data to track drivers’ locations, send messages, and dispatch information, so an AT&T outage can disrupt these communications. As of press time, Omnitracs and Verizon Connect were among the platforms not affected. Why is a Cell Outage a Big Deal for Trucking? ELDs (electronic logging devices) rely on cellular providers through the device itself or by connecting to a driver’s cell phone, according to Thomas Wasson, FreightWaves’ enterprise trucking expert. An outage at a large nationwide provider like AT&T affects both ELD devices and drivers whose cell phones are connected to the AT&T network, resulting in outages and potential log errors. For fleets and safety departments, log errors or omissions of hours of service can lead to what appear to be falsified logs if a driver’s impacted logs are inspected and fail to account for missing time. Workarounds and Challenges For carriers affected by the outage, one workaround is to have drivers revert to manual paper logs until service is restored. However, this adds the challenge of securing paper logbooks, which can result in extra costs and out-of-route miles. Afterward, drivers will need to account for the missing time in the ELD once functionality is restored. Another challenge is the gaps in driver position and location history, which may impact automated tracking and cause disruptions to service. Customers and freight brokers may note inaccurate location updates when determining an ETA. Drivers themselves may not always notice these outages since their ELDs will display the correct time, but back-office staff may be concerned if a driver shows a certain distance out for several hours without updating. Outlook It is likely that some platforms will come back online throughout the day, but the impact for drivers will be felt later on. AT&T has issued a statement about the widespread outage, but the cause has not yet been identified. An industry source told CNN that it could be related to how cellular services hand off calls from one network to another.

March 20, 2024 No Comments

trucking

The Grey Area of Trucking | Are Truckers in the Business of Baking or Trucking?

Unraveling the complexities of truck driver employment status, pivotal in legal battles like California’s AB5 and the U.S. Department of Labor’s regulations, took center stage at the U.S. Supreme Court. Explore the Bissonnette vs. LePage Bakeries case, shedding light on arbitration agreements and the reach of the Federal Arbitration Act, with implications for transportation workers and independent contractors alike. If truckers haul bread and cakes, is their business baking or trucking? The never-ending question of defining the employment status of a truck driver, key to battles over California’s AB5 and the U.S. Department of Labor’s recent independent contractor status regulation, was on display this week at the U.S Supreme Court. The issue at hand wasn’t specifically whether a driver should be considered an employee or an independent contractor, but the question of the reach of the Federal Arbitration Act and its treatment of transportation workers came very close to that contentious subject. The court on Tuesday heard arguments in the case of Bissonnette et al. vs. LePage Bakeries et al. The “et al” with Neal Bissonnette is Tyler Wojnarowski. Both were truck drivers who had purchased distribution rights for Flowers Foods. The three defendants are Flowers Foods (NYSE: FLO), its subsidiary LePage Bakeries and CK Sales, a subsidiary of LePage. Bissonnette and Wojnarowski distributed products made by Flowers, such as Wonder Bread. Court documents describe the men as “franchisees that each entered into a ‘Distribution Agreement’ with CK Sales, through which they acquired certain distribution rights in exchange for monetary consideration.” The initial lawsuit filed by Bissonnette and Wojnarowski, according to a document in the appeal of the lower court ruling, was over a claim against Flowers of “unpaid or withheld wages, unpaid overtime wages and unjust enrichment pursuant to the Fair Labor Standards Act and Connecticut wage laws.” A key issue: Arbitration agreements were signed There is no dispute over one fact in the case: Bissonnette and Wojnarowski did sign arbitration agreements with Flowers. But the argument of the two men is that the agreements are unenforceable under a loophole in the Federal Arbitration Act, which was adopted in 1925. Flowers argued at the lower court level that arbitration should be pursued given the agreements signed by the two drivers. The loophole is a provision in the act given to “seamen, railroad employees or any other class of workers engaged in foreign or interstate commerce.” That definition over the years has come to be defined as including other transportation workers. Those workers could take their disputes to court because of the loophole, whereas other workers who had signed arbitration agreements would need to settle disputes through that process. In the request for Supreme Court review, attorneys for Bissonnette and Wojnarowski summed up the initial dispute, which touches on the question of defining an independent contractor. “Having characterized its truck drivers as independent contractors, Flowers decided it could withdraw its own operating expenses from its drivers’ paychecks, charge them for the privilege of working for the company, and decline to pay them overtime — none of which, the plaintiffs allege, is legal,” the request states. The plaintiffs’ arguments also were that the interstate commerce workers’ inclusion in the language meant that they should be able to take advantage of the loophole given that at the very least some of the products they were delivering originated outside Connecticut, hence they were interstate workers. In May 2020, the U.S. District Court for the District of Connecticut came down on the side of Flowers and its subsidiaries. In a decision that turned partly on the definition of worker status, the court concluded that Bissonnette and Wojnarowski were not employees. The two men had “a much broader scope of responsibility that belies the claim that they are only or even principally truck drivers,” Judge Kari Dooley wrote. “Rather, because the Plaintiffs purchase and own the territories comprising their routes, their distribution efforts are the means by which they realize and increase sales and profits”

March 20, 2024 No Comments

trucking

The Impact of Truck Driver Rest Break Waivers on FedEx and the Industry

Discover the implications for driver fatigue, safety regulations, and the broader trucking industry as the debate continues. Stay informed on how FMCSA’s decisions could shape the future of trucking regulations and operational practices. FedEx warns of higher costs under trucker rest break waivers Recent developments have raised concerns about the potential approval of FedEx Corp. meal and break exemptions for truck drivers in California and Washington. The company anticipates that the granting of these exemptions by the Federal Motor Carrier Safety Administration (FMCSA) could result in increased costs and operational challenges for FedEx and other airlines operating in these states. doing. In a statement filed with FMCSA, FedEx emphasized the economic impact of following the government’s stricter meal and break rules. Clement Klank, FedEx’s Corporate Vice President, emphasized that the additional break time required by California and Washington laws could result in significant operational costs, impacting route planning, compensation plans, and overall policies. This, in turn, would lead to increased labor costs amounting to millions of dollars annually. Additionally, Crank noted that these mandated breaks not only extend drivers’ work hours, but also reduce their time at home, which can impact driver fatigue and morale. California and Washington state regulations require specific meal and break intervals for truck drivers, with California requiring a 30-minute meal break after a five-hour shift and a second meal break for shifts exceeding 10 hours. Requires breaks. Drivers in both states are entitled to breaks based on their working hours. In contrast, federal regulations provide for his 30-minute break after eight hours of driving, but work hours or driving time can be flexibly defined as part of the required break. The FMCSA’s consideration of waivers follows pressure to address safety concerns and reduce accidents involving heavy trucks. The waivers under review stem from previous decisions in 2018 and 2020 that ruled federal hours-of-service rules preempted meal and rest break laws in California and Washington for interstate trucking. These decisions were based on the assumption that state laws were stricter than federal regulations, justifying federal preemption. FMCSA recommended that applicants seeking exemptions focus on the relative safety of intrastate and interstate drivers, as well as the potential impact on truck parking shortages and domestic supply chains. Late last year, various interest groups, including the Teamsters union, truck safety advocates, and the state of California, filed requests for exemptions. FedEx has expressed concern about the potential impact of these waiver approvals, citing challenges such as a lack of truck parking and the impact of California-mandated break intervals on drivers’ routes and schedules. For FedEx, ensuring compliance with various government regulations presents logistical and financial challenges that can impact operational efficiency. The outcome of FMCSA’s decisions regarding these exemptions will have far-reaching implications for the trucking industry, interstate carriers, and the broader supply chain. As the debate continues, it is important that stakeholders consider the balance between safety regulations, operational efficiency, and the overall impact on drivers and the transportation industry as a whole. Solving these issues will shape the future landscape of trucking regulations and practices and how companies like FedEx will navigate a complex regulatory environment while prioritizing safety and efficiency will affect.

March 20, 2024 No Comments

trucking

The Impact of Presidential Elections on U.S. Supply Chains

Understanding the Impact of Presidential Elections on U.S. Supply Chains. Discover how presidential elections affect supply chains and logistics. Learn about key factors and historical insights. Disclaimer: The views expressed in this article belong solely to the author and do not necessarily represent the views of Norfleet or its affiliates. The first two months of 2024 have been challenging for U.S. supply chains due to global disruptions. As we find ourselves in a presidential election year, many people wonder how this will affect the U.S. economy. This year’s election, the 60th quadrennial presidential election, is scheduled for Tuesday, November 5. Understanding the Impact: Predicting how presidential elections affect supply chains and logistics is tricky because of the uncertainty of future events and the many factors at play. However, one thing is certain: elections introduce additional risks and disruptions to supply chains. The actual impact of the 2024 election on supply chains will depend on several key factors: Candidate Platforms and Policies: The specific plans and policies proposed by the candidates can influence supply chains. For example, changes in trade policies may affect businesses’ decisions. Economic Climate: The overall health of the economy during an election year matters. Economic stability or instability can impact supply chain operations. Political Polarization and Gridlock: The level of political division and cooperation can also play a role. Gridlock or bipartisan cooperation affects policy decisions that impact businesses. Historical Insights: Looking back at previous election years, we can identify some trends: 2020: The COVID-19 pandemic overshadowed any election-related effects on supply chains. Other factors took precedence. 2016: The election of Donald Trump led to uncertainty in trade policies, causing businesses to delay investments and stockpile inventory temporarily. 2012: No significant disruptions were directly attributed to the election, but existing economic issues (like the eurozone crisis) still affected supply chains. 2008: The global financial crisis significantly impacted supply chains, making it challenging to isolate election effects. In summary, while presidential elections introduce uncertainties, understanding candidate policies, economic conditions, and political dynamics helps us gauge their impact on supply chains.

March 20, 2024 No Comments

News

Truck Transportation Employment Remains Stable, Warehouse Jobs Continue to Decline

Trucking Industry Faces Prolonged Downturn | Insights from Leading Providers

Navigating the Freight Cycle Bottom | November’s Declines and Signs of Stabilization

Logistics Managers’ Index (LMI) Indicates Growth in Transportation Sector

Insights into February’s Transportation Trends: Prices Climb as Capacity Expands

The Impact of Nuclear Rulings, Speed Limits, and Noncompete Agreements on Trucking Brokers

Strong Class 8 Truck Orders Defy Weak Trucking Market Trends in February

The Bullish Outlook on Industrial Real Estate in Borderlands Mexico

Navigating the Impact of AT&T Outage on Trucking Technology

The Grey Area of Trucking | Are Truckers in the Business of Baking or Trucking?

The Impact of Truck Driver Rest Break Waivers on FedEx and the Industry

The Impact of Presidential Elections on U.S. Supply Chains

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Truck Transportation Employment Remains Stable, Warehouse Jobs Continue to Decline

Trucking Industry Faces Prolonged Downturn | Insights from Leading Providers

Navigating the Freight Cycle Bottom | November’s Declines and Signs of Stabilization

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