The Daily: April 12, 2022

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Good morning, and happy Tuesday.

The Department of Transportation is in a bit of a pickle. More and more states are legalizing recreational marijuana and most current drug testing still reflects a zero-tolerance policy. On-duty intoxication cannot be specified - so the DOT is looking to review its regulations and make some changes.

Make sure to read the featured article from Reason to get the low-down on what’s next for the DOT and drug testing. ☕️

Three semi-trucks lined up in a row, parked in a parking lot.

“I never dreamed about success. I worked for it.”

– Estée Lauder


Today’s Featured Article:

As more states legalize marijuana, the Department of Transportation looks to change drug-testing policies - Reason Foundation

“Drug tests for marijuana use continue to reflect a bygone zero-tolerance approach and fail to reliably detect on-duty use and intoxication.”

READ COMPLETE REASON FOUNDATION ARTICLE HERE

The Latest On…

Trucker’s Lounge 🧢

Five Transportation Charts That Explain (Mostly) Everything — iLevel Logistics

“In the March jobs report, the economy appears to be heading in the right direction: Americans are increasingly back to work. The U.S. added 431,000 jobs in March. Hourly wages jumped as well, rising at nearly the fastest pace in 40 years.”

Faulty Police Field Tests Said This Trucker Was Carrying 700 Gallons of Meth. It Was Diesel. (reason.com)

“Juan Guzman spent nearly six weeks in jail based on unreliable field tests that have resulted in hundreds of other wrongful arrests.”


Regulations ⚖️

Growing agreement that government regulations are driving up the costs of vital infrastructure - Reason Foundation

“With all the recent focus on infrastructure, the past year has seen numerous articles in the media along the lines of this Vox article, “Why Does It Cost So Much to Build Things in America?” The better-researched articles, including that one by Vox’s Jerusalem Demsas, focused attention on environmental litigation.”

Dray Alliance: Shippers paid more than $114m in demurrage fees in Feb and March 2022 | AJOT.COM

“Dray Alliance released an outlook for April based on the activity within its container trucking platform from Feb-March 2022. Dray Alliance findings reflect the impact of the continued port disruptions and demurrage fees being incurred by shippers with containers sitting at the ports.”


Trade & Border Issues 🗺

Food prices soar to record levels on Ukraine war disruptions | AP News

“Prices for food commodities like grains and vegetable oils reached their highest levels ever last month largely because of Russia’s war in Ukraine and the “massive supply disruptions” it is causing, threatening millions of people in Africa, the Middle East, and elsewhere with hunger and malnourishment, the United Nations said Friday.”

Amid Shanghai Supply Chain Crunch, U.S. East Coast Sees New Delays (morethanshipping.com)

“The Port of Virginia has already reported significant delays, and New York’s port is expected to be next.”

War To Slash Ukraine's GDP Output By Over 45% (gcaptain.com)

“Ukraine’s economic output will likely contract by a staggering 45.1% this year as Russia’s invasion has shuttered businesses, slashed exports, and rendered economic activity impossible in large swaths of the country, the World Bank said on Sunday.”

Soaring food and fuel prices are destabilizing countries on the brink | CNN Business

“When people took to the streets in Egypt in 2011, protesters chanted about freedom and social justice — but also bread.”


Fuel ⛽️

Rates down, fuel up: Is a 'trucking bloodbath' on the way? | Overdrive (overdriveonline.com)

“Coming out of the pandemic, spot freight markets presented drivers with some of the best conditions in trucking's century-old and turbulent history, but as spot rates have softened for vans and reefers and diesel prices remain very high in recent weeks, some in trucking media are predicting a "trucking bloodbath" and a wave of bankruptcies to hit smaller newer trucking companies.”

Fuel tax relief approved in five states Land Line State

“Action taken this week in New York will add the state to the list of states to approve a fuel tax holiday for at least certain drivers.”


Retail 🛍

Report: Consumer sentiment mixed on retail delivery performance | DC Velocity

“Delivery tracking, ease of online ordering earn high marks, but 73% of consumers say they’ve experienced delivery problems in the past three months, tech firm survey shows.”

Once a retail giant, Kmart down to 3 stores after NJ closing | AP News

“The familiar sights and sounds are still there: the scuffed and faded floor tiles, the relentless beige-on-beige color scheme, the toddlers’ clothes and refrigerators and pretty much everything in between.”


Business Strategy 💡

Supply chains facing perfect storm: International Chamber of Shipping (cnbc.com)

“Esben Poulsson of the shipping organization discusses how the Ukraine war and Covid lockdowns in China are affecting supply chains.”


Driver’s Issues 🚛

What do drivers really want? Ask them. | FleetOwner

“Some top private fleet executives share their secrets to recruiting, retaining, and making drivers happy.”


Electric Vehicles 🔋

Musk Says Tesla Semi Coming Next Year | Transport Topics (ttnews.com)

“Tesla Inc. will start production next year of three products that have fallen well behind Elon Musk’s original schedule, the CEO said at the opening of the carmaker’s newest factory.”

GM Hummer: how to get truck guys to buy electric vehicles. (slate.com)

“It has the weight of an elephant, can move like a crab, and in a previous life was reviled by environmentalists. “


TMS 💻

What to know about IT system consolidation in trucking | Transport Dive

“In an industry hit hard by pandemic-related disruptions, trucking companies are learning valuable lessons about how to improve operations.”

 

Compliance 📋

The SEC's Climate-Policy Mission Creep | City Journal (city-journal.org)

“Last week, a majority of the commissioners of the Securities and Exchange Commission (SEC) voted to approve a comprehensive package of rule changes that would require public companies to report detailed information on climate-related risks and greenhouse gas emissions.”


Covid-19 😷

Shanghai hospital pays the price for China's COVID response | AP News

“A series of deaths at a hospital for elderly patients in Shanghai is underscoring the dangerous consequences of China’s stubborn pursuit of a zero-COVID approach amid an escalating outbreak in the city of 26 million people.”

Watch: Has the Pandemic Permanently Changed Last-Mile Delivery? | SupplyChainBrain

“Final-mile delivery will not go back to pre-pandemic levels, says Khaled Naim, chief executive officer and co-founder of Onfleet. Shippers need to make adjustments.”

China Covid lockdowns worsening supply chain disruptions: BCG (cnbc.com)

“Ulrik Sanders of Boston Consulting Group says China’s Covid-19 lockdowns will lead to “massive” bottlenecks and another round of supply chain disruptions is coming soon.”


Unions 🪧

Amazon seeks to overturn union win, says vote was tainted | AP News

“Amazon is seeking to overturn the historic Union victory at one of its New York City warehouses, arguing in a legal filing Friday that union organizers and the National Labor Relations Board acted in a way that tainted the results. It now wants to redo the election.”

Unions (Quietly) Agree: The Jones Act Is a Contributor to U.S. Supply Chain Woes | Cato at Liberty Blog

“As reported by Politico earlier this week, the AFL-CIO’s Transportation Trade Department has authored a new statement on U.S. maritime policy that features predictable enthusiasm for protectionist policies such as the Jones Act and cargo preference laws.”

Amazon Plans to Object to Union Win in New York | Transport Topics (ttnews.com)

“Amazon plans to file objections to the union election on Staten Island, N.Y., that resulted in the first successful U.S. organizing effort in the company’s history.”


Leases & Loans 💰

Small businesses don’t need more federal stimulus money | The Hill

“There’s been talk recently in Congress about more small business funding that would target industries hit hardest by the pandemic.”


Ports 🚢

POLA, POLB again push back consideration of container dwell fee to April 15 - Logistics Management (logisticsmgmt.com)

“Going back to when the fee was initially rolled out on October 25, POLA and POLB said that the ports have seen a cumulative 49% decline in the amount of aging cargo on their docks, a tally which has trended up going back to the initial announcement of this fee. “

China Port Congestion Worsens as 477 Ships Wait to Berth | 2022-04-11 | SupplyChainBrain

“Dotting the sea off Chinese ports are 477 bulk cargo ships waiting to deliver resources from metal ore to grain into the country.”

Ports Seeing Brief Slowdown From Last Year But Imports Remain High | Material Handling and Logistics (mhlnews.com)

“‘Congestion at West Coast ports has eased, but congestion at some East Coast ports is growing,’ said Jonathan Gold of NRF.”

Port of Virginia volume up nearly 13% | AJOT.COM

“The Port of Virginia’s cargo operations remained fluid in March having handled more than 314,000 TEUs (twenty-foot equivalent units), nearly 47 percent of which was loaded imports.”

Seeking a Short-Term Solution to the Container Backup | SupplyChainBrain

“Logistics experts are busy considering ways in which their supply chains can be redesigned so as to avoid the kind of congestion that has brought international goods movement to a virtual halt at major ports.”


Leadership 🏆

Expanded List of Top 100 3PLs Reflects Ever-Changing Logistics Landscape | Transport Topics (ttnews.com)

“With supply chain disruptions, labor shortages, and scarce truck capacity impeding the flow of goods in North America and across the globe, third-party logistics companies have had a seemingly endless string of transportation problems to solve for their customers.”


Artificial Intelligence 🤖

U.S. Xpress explores how Kodiak AVs can fit into its fleet | Fleet Maintenance

“Kodiak said this pilot with U.S. Xpress is just the beginning of the two companies’ partnership. They plan to explore new AV lanes, particularly those that drivers find less desirable, so drivers in the future can focus more on routes that work for them.”


Human Resources 🤝

Modern fleet guide to raising retention and recruiting | Bulk Transporter

“At HDAW 2022, recruiting expert Tony Lee spelled out 13 ways to boost retention and recruitment.”


Inflation 💸

Michigan café blindsided by inflation makes plea to lawmakers: ’Think of the little people’ | Fox Business

“Surging inflation and endless supply chain delays are forcing one Michigan café to close its doors indefinitely on Friday, with its owner sharing a crucial message to lawmakers.”




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