Archive for category: News

From Transport Topics.

With a Dec. 9 deadline looming to reach an agreement on a nationwide freight rail contract, President Joe Biden is asking Congress to intervene in the dispute, which threatens to severely damage the U.S. economy.

“As a proud pro-labor president, I am reluctant to override the ratification procedures and the views of those who voted against the agreement,” the White House said in a statement. “But in this case — where the economic impact of a shutdown would hurt millions of other working people and families — I believe Congress must use its powers to adopt this deal.”

It is estimated that a strike would shut down 30% of the nation’s freight capacity.

Moments after Biden’s statement, House Speaker Nancy Pelosi (D-Calif.) announced that legislation would be taken up in an attempt to settle the dispute this week between 115,000 union workers and the management bargaining team. Affected carriers include CSX, Union Pacific, BNSF, Norfolk Southern and Kansas City Southern.

See the complete article from Transport Topics online.

Webinar: The Good, the Bad and the Ugly of the Future of Connecticut Medium and Heavy Duty Trucks and their Fuels.

From Greater New Haven Clean Cities.

New technologies, policies, and incentives are poised to upend life for the owners and managers of Connecticut’s 145,000 MD and HD trucks. The US just committed to only sell and produce zero-emissions MD and HD vehicles by 2040!

Join us on Zoom on Tuesday, Dec. 6 at 2 p.m. to find out about the carrots and sticks in truckers’ future, how to influence the State’s approach to this transition, what some early adopters are doing, and resources that can help you keep driving forward.

Register for the webinar online.

From Associated Press via Transport Topics.

The nation’s major shipping companies are in the best shape to get holiday shoppers’ packages delivered on time since the start of the pandemic, suggesting a return to normalcy.

Carriers like the U.S. Postal Service, FedEx and UPS project to have enough capacity after struggling under the holiday crush for the past two years, when many people hunkered down at home and turned to online shopping.

The system is already being put to the test ahead of big shopping days on Black Friday and Cyber Monday, when retailers entice shoppers with bargains. Amazon held a second Prime Day in October to jump-start early holiday sales, but some shoppers are still holding out for deals in the coming days.

Brie Carere, chief customer care officer at FedEx, told the Associated Press she’s not worried: “The network is running the best that it has since COVID. We’re confident and ready.”

There are several factors at play: Consumers have gotten an early start, done more shopping in stores and moderated spending because of inflationary pressures, thus reducing shipping volume and spreading out shipments over a longer period. An extra shipping day between Thanksgiving and Christmas helps, too.

See the complete article from Associated Press via Transport Topics online.

Legal Alert from the Scopelitis Law Firm.

On November 16, 2022, FMCSA will issue guidance regarding the definition of what constitutes a “broker” and a “bona fide agent” of a broker. The guidance is not a rulemaking and will be effective immediately. However, FMCSA has nevertheless requested comment on the guidance and may issue updated guidance based on comments received. The comment period will be open for 60 days.

The guidance is issued pursuant to a mandate of the Infrastructure Investment and Jobs Act (“IIJA”), which directed FMCSA to consider the role of so-called “dispatch services” in transportation and whether such services, which often purport to “represent” multiple motor carriers, can be considered a “bona fide agent” of a motor carrier. The question of whether a dispatch service can be a bona fide agent of a motor carrier is important because bona fide agents of motor carriers are not required to hold broker authority when acting in the capacity of an agent of the motor carrier.

Under existing regulations, a bona fide agent of a motor carrier is defined as “persons who are part of the normal organization of a motor carrier and perform duties under the carrier’s directions pursuant to a preexisting agreement which provides for a continuing relationship, precluding the exercise of discretion on the part of the agent in allocating traffic between the carrier and others.” 49 C.F.R. 371.2(b).

Moving to the actual guidance proffered by the FMCSA, one issue that was apparently raised by numerous commenters, with comment on both sides, was whether and to what extent handling of monies paid by shippers for motor carrier transportation is determinative of whether one acts as a broker. According to FMCSA, “handling money exchanged between shippers and motor carriers is a factor that strongly suggests the need for broker authority, but it is not an absolute requirement for one to be considered a broker.” Electronic load boards that do more than match loads may want to assess their status.

See the complete text of the alert from the Scopelitis firm online.

From Transport Topics.

Unprecedented diesel prices mean that demand destruction for the fuel is probable, the International Energy Agency said.

Both the outright price of the fuel and its trading level relative to crude oil rose to records in October, jumping 70% and 425% respectively year-on-year, the Paris-based adviser said in its monthly report on the state of the oil market.

With economic growth showing signs of weakening in the face of high inflation and energy costs, those high prices could well prove self-defeating, the agency said.

“This increasingly ominous global outlook, along with very high prices, is set to significantly curtail diesel demand in 2023,” the IEA said.

The IEA forecast that global growth in diesel and gasoil will ease from 1.5 million barrels a day in 2021, to 400,000 in this year. In 2023, consumption will post a small decline “under the weight of persistently high prices, a slowing economy and despite increased gas-to-oil switching.”

See the complete article from Transport Topics online.