OOIDA leads backlash against SCOTUS AB5 decision
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Good morning! Its International Kissing Day. Interesting - that’s a thing?
Last week, the Supreme Court shot down The California Trucking Association’s request to review AB5, the California law requiring owner-operators to be classified as employees when hauling loads. The backlash has been swift. The Owner-Operator Independent Drivers Association has announced that they plan to participate in future challenges to the law in California and claim that it sends a bad precedent for owner-operators in the state.
Check out today’s featured article from Transport Dive for the details on the trucking group’s opinions on SCOTUS’ decision regarding AB5. ☕️
Optimus Prime Peace GIF By Four Rest Films via GIPHY
Featured Article:
“The Supreme Court on Thursday declined to hear arguments in a challenge to a California law requiring owner-operators to be classified as employees of the carriers for which they haul loads.”
Water Cooler Topics
🛋 The furniture company La-Z-Boy is moving to improve its structural supply chain strategy after a backlog of orders threatens profits. President and CEO Melinda Whittington announced the mission on a Q4 earnings call and laid out plans to expand factories to Mexico and shift procurement strategies in their global supplier network. The move comes as customized La-Z-Boy products that once took 4-6 weeks to deliver were now taking up to 7 months.
🚢 West Coast representatives for the ports fear the worst and are asking the Biden Administration to intervene. The current dock worker contract is set to expire. Until an agreement can be reached between the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU), leaders of the U.S. trade associations are asking for a contract extension. Supply chain congestion’s expected to worsen if a port stoppage is implemented without an agreement.
🌾 July is the prime time of year to begin harvesting wheat, but the strained wheat market is tired. Wheat’s key producer Ukraine has been strained to the brink by the invasion from Russia and this season’s wheat crops are likely to struggle. Logistical and financial constraints in the country leave a giant question mark regarding how much of the product can be exported.
In today’s fuel market, maintaining tire pressure is more important than ever
According to the U.S. Department of Energy, under-inflated tires can lessen fuel economy for every drop in psi. Fuel prices being at historically high levels have fleets paying attention to all facets of their trucks - including tire inflation.
Tire management technology is becoming more available to fleets - however, smaller fleets without the means to invest in this technology should be paying attention to these details in order to make the best of the tough situation.
Truck drivers with sleep disorders struggle with safety
Obstructive sleep apnea (OSA) is the most undiagnosed and prevalent sleep disorder that plagues the transportation logistics industry. Rough estimates claim that 26%-30% of commercial drivers suffer from OSA, yet less than 15% of those individuals are being treated for the disorder.
Sleep disorders can cause dangerous situations, such as falling asleep at the wheel, impaired driver performance, or increased health implications such as diabetes and hypertension.
Fuel Tech ♻️
Data exchange at ports could cut emissions and costs, model shows | DC Velocity
“Clean fuel and electrification alone are not enough to decarbonize the freight sector, but digitalization could bridge the gap, Coalition for Reimagined Mobility says.”
Snam, on green energy supply chain digital transformation | Supply Chain Digital
“In April 2022, Procurement Magazine, Supply Chain Digital and Bizclik Media Group returned to London's Tobacco Dock to host our second Procurement & Supply Chain LIVE.”
Trade & Border Issues 🗺
Shippers still willing to touch Russian crude oil are cashing in | AJOT
“A handful of shipowners still willing to transport Russian crude are reaping big rewards on at least one route as others shun the trade.”
Finalising TNT integration means FedEx 'can now compete in Europe' | The Loadstar
“The completion of the integration of TNT this spring was “a truly capstone moment” for FedEx in Europe, where it has traditionally lagged behind major rivals DHL and UPS, according to a senior executive.”
70% of Companies Planning Reshoring or Nearshoring Projects | MHL News”
“‘Business leaders are responding to unprecedented supply chain disruptions by putting into place measures to make operations more resilient and adaptable,’ Sami Atiya, president of ABB’s Robotics & Discrete Automation Business.”
China’s Liu discusses tariffs with Yellen as US looks to ease | AJOT
“China’s Vice Premier Liu He discussed US economic sanctions and tariffs in a call with Treasury Secretary Janet Yellen amid reports the Biden administration is close to rolling back some trade levies.”
Europe Needs More LNG & Coal Ships ASAP | G Captain
“European natural gas prices rose to the highest level in almost four months on persistent supply concerns amid the worst energy crunch in decades.”
Tesla blames China lockdowns & supply disruption for Q2 woes | Supply Chain Digital
“Tesla’s deliveries of new cars for the quarter ending in June were down by almost one fifth on its highest ever quarterly figure, with the company blaming the fall-off on supply chain disruption and China’s ongoing series of Covid-19 lockdowns for the fall-off.”
Industry Forecast 📊
“Mark Manduca of GXO Logistics explains why it thinks supply chain disruptions will persist for at least another nine months.”
“Two-thirds (66%) of large enterprises globally say they are keeping more stock on hand now compared to the pre-pandemic period, with nearly one in five in total (18%) retaining “significantly more” stock.”
A peek look to the peak freight season: congestion, chaos, fewer containers | Logistics Management
“Anyone who thinks he or she has an accurate feel for what the peak shipping season will look like between now until around Halloween clearly has not been paying attention to the wacky ups-and-downs of the past two years.”
Fuel ⛽️
The rEVolution will not be televised (or forced) | CCJ Digital
“I broke a personal record last month.”
Kemp suspends Georgia fuel taxes through mid-August | The Trucker
“Georgia’s governor is extending the suspension of the state’s motor fuel tax through mid-August.”
Gasoline Market Is Starting to Cool Down | TT News
“It’s been a tailwind for oil prices for most of this year, but the previously booming U.S. gasoline market is showing a few signs of cooling off.”
Human Resources 🤝
Let’s Stop Blaming Workers for the Ongoing Shortage of Workers | Forbes
“Cato Institute co-founder Ed Crane always marvels at the simplistic thought processes of economic reporters and commentators.”
TMS 🖥
“ARC has recently completed a study on the transportation management system integration market.”
Driver Issues 🚛
Group releases statement after truck and car convoys block traffic on D.C. area roadways | CDL Life”
“On Monday, a group of protesters took to Washington D.C. roadways, temporarily snarling traffic.”
Florida Seeks to Add Truck Parking Near Miami | TT News
“Florida is exploring project delivery options in an $18 million plan to add 135 truck parking spaces in a new truck travel center near the Golden Glades interchange and close to Miami.”
Why driving big rig trucks is a job fewer Americans dream about doing | CNBC
“In April, Walmart made headlines by announcing that it will pay its private fleet truck drivers as much as $110,000 in their first year with the big-box retailer.”
Regulations ⚖️
NHTSA issues final rule on rear underride protection for semi-trailers | The Trucker
“The U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) has finalized a rule that updates two Federal Motor Vehicle Safety Standards related to underride crashes.”
Company Culture 🎉
Many won’t rely on virtual options after COVID: AP-NORC poll | AP News
“Many Americans don’t expect to rely on the digital services that became commonplace during the pandemic after COVID-19 subsides, according to a new poll, even as many think it’s a good thing if those options remain available in the future.”
Warehousing 📦
“Unless you’ve been living underneath a rock, you’re aware that our world has been hit with a few years of unprecedented challenges – from a global pandemic to supply chain issues and now inflation.”
Warehouse Wait Times | DC Velocity
“The time it takes to do the small things is essential everywhere within a warehouse.”
Manufacturing ⚙️
June manufacturing output falls with growth still intact | Supply Chain Management Review
“The report’s key metric, the PMI, came in at 53.0 (a reading of 50 or higher indicates growth), for a 3.1% decrease compared to May’s 56.1 reading, marking the 25th consecutive month of growth, at a faster rate, as well as the 25th consecutive month of overall economic growth.”
Transforming advanced manufacturing through Industry 4.0 | McKinsey
“Manufacturers in industries such as automotive and electronics, nearing the tipping point of digital adoption, are achieving even faster and more sustainable change through Industry 4.0.”
Circular supply chain 'can ease manufacturing problems' | Supply Chain Digital
“Like many sectors, those in manufacturing have had issues with supply capacity and difficulties responding quickly to changes in demand.”
Leadership 🏆
SC Ports’ Melvin takes the helm as President and CEO | AJOT
“South Carolina Ports’ Barbara Melvin steps into her new role as president and CEO today, marking the first woman to lead a top 10 U.S. operating container port.”
Ohio Champ Woodrome Ramps Up Preparations for Nationals | TT News
“With more than 400 truckers having qualified for the upcoming National Truck Driving Championships, the summer training period is officially underway.”
Two kinds of good cooks | Seth’s Blog
“One is very skilled at following the recipe. Quality control, consistency and diligence.”
Safety 🦺
“A new study looks ranks states by the irresponsibility of their drivers, using National Highway Traffic Safety Administration data to create the list.”
Inflation 💸
Add rent to the rising costs bedeviling small businesses | AP News
“The rent has come due for America’s small businesses and at a very inopportune time.”
French Officials Call on the Shipping Industry to Help Fight Inflation | More Than Shipping
“The annual inflation rate in France was confirmed at 5.2% in May of 2022, and even though it’s lower than the Eurozone average of 8.1%, the French government took a serious step toward controlling significant price increases.”
ACT joins other analysts in seeing odds of recession growing | Fleet Owner
“Analysts at ACT Research see the odds of a recession growing in the face of price pressure on consumers and other factors weighing down the economy and the trucking industry, the research group reported in its latest Commercial Vehicle Dealer Digest.”
Prices don't drop when inflation eases. Why your wallet will be hurting for a while. | MSN
“When it comes to prices during inflation what goes up, doesn't always come down.”
Owner-Operators 🚛
Supreme Court Ruling May Take 70,000 Truckers Off Road, Spur Jams | Supply Chain Brain
“A U.S. Supreme Court decision that could force California’s 70,000 truck owner-operators to stop driving is set to create another choke point in already-stressed West Coast logistics networks, a truckers’ organization said.”
Brokerage 🚚
Brokering in the patchwork: Best practices to avoid liability for negligent selection | CCJ Digital
“United States Supreme Court on June 27 declined review of the Ninth Circuit Court of Appeals’ decision in Miller v. C.H. Robinson – a case that has been of keen interest to the transportation industry, particularly brokers, for quite some time.”
Sales 🧾
Growth of used truck values rival stock market from mid-2020 to mid-2022 | CCJ Digital
“The used truck market in the first half of this year has started to cool off from the white hot levels seen dating back to early 2021, when prices set their sights on six figures for models that were upwards of four years old.”
Electric Vehicles 🔋
TIA launches Electric Vehicle Advisory Council | Fleet Maintenance
“The council will focus on educating and training tire and auto dealers on the proper service techniques and procedures of EVs, establish potential safety protocols when working on them, and deliver best practices for service and maintenance.”
Pacific Gas and Electric Launches EV Charging Pilot Program at Schools | NGT News
“Pacific Gas and Electric Co. (PG&E) has broken ground on the first of up to 130 new electric vehicle (EV) charging ports at 22 schools in its service area.”
Business Strategy 💡
Capacity, labor constraints fuel trucking M&A race | Transport Dive
“‘If you want to grow, the strategic way to do that is to go acquire other companies,’ Heartland Express CFO Chris Strain said.”
“The government cannot properly measure the impact of "hiring freezes" in tech and finance companies, but officials remain bullish that current employment opportunities can mitigate any significant, negative effects.”
