Overtime regulations have taken $4.8 trillion from truck drivers
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Good morning, happy Wednesday. ☀️
America's trucking industry has always been an integral part of our economy, though it wasn’t until recently that the problems that have plagued it for decades have become mainstream knowledge. Consisting of 72% of all freight transported through the country, keeping the trucking profession healthy and rewarding should be a priority, according to most industry experts. However, the Fair Labor Standards Act (FLSA), which was signed into law in 1938, has subsidized transportation costs at the expense of truck drivers’ paychecks.
Check out today’s featured article from CCJ Digital for an opinion piece about why truck drivers have been robbed through over-regulation. ☕️
Pay Me Principal Skinner GIF via GIPHY
Featured Article:
“Throughout our lives we rely on a multitude of goods and services to prosper as individuals and collectively as a nation, and no industry is more central to that story than trucking.”
Water Cooler Topics
💸 Wholesale prices used to be a “good deal”, until now. Over the past year, wholesale prices have risen 10.8%, leading retailers to raise prices to the consumer to make up for the losses. The Bureau of Labor Statistics shared the numbers this week, indicating the heightened prices were matching the Dow Jones estimates and doubling the growing pace set previously in April. The Federal Reserve is probably pacing nervously right about now.
🏢 Amazon is rapidly investing in real estate across the country, building its land portfolio. The land is primarily being bought up in Southern California, Texas, Illinois, Florida, and the Bay Area, indicating that the Seattle-based titan of industry is expanding its North American industrial space. So far, between 2020 and 2022, the company has tripled its property ownership.
⛈ Hurricane season is here: it’s time to fortify your supply chain. The World Meteorological Organization is warning of some large storms predicted to make landfall on the Atlantic and Gulf coasts this year. Hurricane season is from June 1 through November 30 and companies are preparing for the worst. Supply chain disruptions are already a’plenty - the last thing anyone needs to a tropical storm taking out a transportation hub.
Electric vehicle manufacturers are lobbying Congress to increase tax credits available to EV-owners
On June 13th, the Senate and House of Representatives received a letter from the chief executives of automakers Ford, Toyota, GM, and Stellantis. The letter asked Congress to consider increasing tax credits to any individual looking to purchase an electric vehicle. Currently, the maximum of tax credits allowed is capped at 200,000, per company. General Motors and Tesla have already reached their cap, and the others are following suit shortly.
The companies argue that until the electric vehicle market is more mature, Congress should extend tax breaks to those looking to change their mode of transportation, as an incentive. No time frame for the maturation has yet been proposed.
Congress aims to fortify SBA loans from fraudsters by passing 7 new bills
The US House of Representatives has passed 7 bills for small businesses to pay close attention to - two regarding PPP loans and another regarding COVID-19 Economic Injury Disaster Loan (EIDL) fraud.
These bills are meant to fortify these Small Business loans and protect them from fraudsters taking advantage of the programs.
Regulations ⚖️
Mandated Speed Limiters: Going Nowhere Fast [Commentary] - Drivers - Trucking Info
“Back in 2016, the Federal Motor Carrier Safety Administration, along with the National Highway Traffic Safety Administration, floated a proposal to mandate speed limiters on trucks.”
“ATA says legislation makes well-paying careers in the trucking industry more accessible for qualified drivers who are otherwise deterred by financial and/or logistical barriers.”
Congressional Transportation Leaders Review Trucking Policies | Transport Topics (ttnews.com)
“Efforts to enhance the trucking industry’s workforce and provide additional parking to those currently operating trucks nationwide recently captured the spotlight on Capitol Hill.”
“The House on Monday passed the Ocean Shipping Reform Act of 2022, sending it to President Biden for his signature.”
Fuel Tech ♻️
Shippers With Pollution-Curbing Equipment See Huge Fuel Savings | SupplyChainBrain
“Ship-owners that invested in pollution-reducing equipment to let them burn dirtier fuel are enjoying massive discounts due to a supply glut.”
Leadership 🏆
2022 FleetOwner 500 Private Fleets of the Year | FleetOwner
“Three different kinds of fleets were honored this year by FleetOwner editors for excelling in providing their companies with in-house transportation services.”
“Companies participating in the incubator program will work directly with SC&L and business leaders at The Home Depot and Georgia Tech as they build.”
Industry Forecast 📊
Are we running into a freight recession? - Supply Chain Management Review (scmr.com)
“Rumors of the death of the freight market have been greatly overstated, but we may run into a slowdown.”
American businesses are coming home. Innovators in logistics will reap massive rewards | Fortune
“In March 2020, the onset of the COVID-19 pandemic delivered global supply chains a rude awakening.”
Sales 🧾
Container prices jumped in May for first time in 2022 | DC Velocity
“Few empty containers are available, as China begins to reopen from covid shutdown and peak season restocking season looms, Container xChange says.”
Hot California real estate market drove Heartland Express terminal sale | Transport Dive
“Heartland Express has executed a sale-leaseback deal for its Rancho Cucamonga, California, trucking terminal to take advantage of a red-hot Inland Empire real estate market, CFO Chris Strain said in an interview.”
Human Resources 📝
Logistics Labor: Bringing over talent - Logistics Management (logisticsmgmt.com)
“With a smaller labor pool to pull from and e-commerce sales continuing to escalate, logistics managers need solid tactics for winning the race for talent.”
Truckers Lounge 🧢
VIDEO: Which driver is more in the wrong here? (cdllife.com)
“A dash cam video shows a questionable passing situation between the filming driver and a driver hauling doubles.”
Leases & Loans 💰
How to Get the Best Loans for Truck Repair | Nav
“Owning and driving a semi-truck can be an expensive endeavor.”
Trade & Border Issues 🗺
Latest Shanghai quarantines add more pressure to global supply chain (cnbc.com)
“The mass quarantine measures imposed this past weekend in Shanghai, including highway closures, severely affected trucks carrying exports bound for the city’s port.”
China Forced Labor Law Deadline Looms | Material Handling and Logistics (mhlnews.com)
“Importers need to get ahead of the June 21 ban of products from Xinjiang.”
“With the gradual reopening of the Chinese economy, following a months-long shutdown in Shanghai, which underwent a full lockdown to quell the rising number of positive Covid cases there, the impact on global supply chains remains open-ended, with some industry stakeholders maintaining it will have a significant downstream impact on United States-bound import patterns and others thinking the impact will not be as bad as some expect.”
Marketing Approach 🤳
Consumers Want Greener Delivery Options — But Retailers Have to Explain Them | SupplyChainBrain
“Despite a growing public awareness of the many supply chain crises spurred by COVID-19, there remains a limited understanding of how delivery networks really run — and how to navigate eco-conscious options.”
Business Strategy 💡
Why Procurement Is the Key to Preparing for the Next Supply Chain Crisis - Inbound Logistics
“There is no clear sign when the global supply chain crisis will end.”
Supply Chain News: Amazon Putting some Fulfillment Center Openings on Hold | SC Digest
“After two years of adding fulfillment centers and other logistics facilities, Amazon is now moving in the other direction.”
Symcor's Malhotra shares procurement negotiations insight | Supply Chain Digital
“Symcor Procurement & Vendor Management Director Deepti Malhotra shares insights into sourcing negotiations at the Risk & Resilience Conference.”
Customer Relations 🤝
“Transitioning to a direct-to-customer business model requires a new supply chain mindset that focuses on creating more happy and loyal customers.”
Ports 🚢
“This follows previous joint announcements by POLA and POLB, whom collectively account for roughly 40% of United States-bound import volumes, indicating that consideration of the fee would be pushed back each week going back to the week of November 22, 2021.”
“The protagonists are familiar: On one side, the International Longshore and Warehouse Union (ILWU), representing more than 22,000 West Coast dock workers.”
Safety 🦺
Staying safe out there is harder than ever - Truck News
“I was touring a big distribution center recently and saw something that made me question whether I’d ever feel safe getting back on the highway.”
Inflation 💸
Tips to help fleets manage costs amid inflationary pressures | Fleet Maintenance
“Brian Antonellis, SVP of fleet operations for Fleet Advantage, recommends breaking down fleet expenses into four major buckets and planning out equipment procurement three to five years in advance.”
