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Wednesday, January 13, 2021
Logistics Intelligence Brief
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Industry

‘Shipageddon’ averted: It wasn’t a bad holiday delivery season after all

Freight Waves Mark Solomon January 12, 2021

The holiday parcel-delivery season may not have come off perfectly, but the “shipageddon” that many had feared did not materialize. Much of that was due to the performance of the parcel carriers, with their preparation for a nightmare peak-season scenario paying off in solid on-time delivery results under tough circumstances. UPS Inc. (NYSE:UPS) delivered 96.7% of its parcels on time during a five-week cycle tracked by consultancy ShipMatrix. FedEx Corp. (NYSE:FDX) clocked in at 95.1%, while the U.S. Postal Service, beset by understaffing and an avalanche of parcels from FedEx and UPS shippers whose volumes exceeded those carriers’ ceilings, came in at 93.2%, the consultancy said.

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Government/Safety

Drug/Alcohol Clearinghouse fines set at $5,833 per violation

Freight Waves John Gallagher January 12, 2021

Drivers, carriers and medical review officers (MROs) could be fined up to $5,833 for each violation of any provisions within the Drug & Alcohol Clearinghouse, according to the latest directive from the U.S. Department of Transportation (DOT). DOT issued a final rule on Monday that implements the authority of the Federal Motor Carrier Safety Administration (FMCSA) to assess civil penalties for violations of the Clearinghouse, at 49 CFR part 382 subpart G of the code of federal regulations. “Any employer, employee, medical review officer, or service agent who violates any provision of 49 CFR part 382, subpart G … is subject to a civil penalty not to exceed $5,833,” the rule states.

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US Chamber sees major infrastructure spend within grasp

The Journal Of Commerce William B. Cassidy January 12, 2021

The head of the US Chamber of Commerce believes a comprehensive, multi-year infrastructure spending package is in reach after years of false starts, with the Biden administration and a new Congress controlled by Democrats coming into power Jan. 20. “We can stimulate the economy in a major way if we finally do the long overdue and broadly supported work of rebuilding our infrastructure,” CEO Thomas J. Donohue said in his State of American Business address Tuesday. “Our lawmakers should enact a fiscally and environmentally responsible infrastructure package that focuses on emergency needs like highways.” President-elect Joe Biden promised a $2 trillion infrastructure plan, including many climate-related proposals, during his campaign. He is expected to outline infrastructure proposals as early as this week. The federal government hasn’t passed a multi-year infrastructure spending bill into law since the $305 billion Fixing America’s Surface Transportation (FAST) Act of 2015.

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Substantial Investments Needed for Infrastructure, ASCE Report Says

Transport Topics Eugene Mulero January 12, 2021

Failure to invest in long-term infrastructure upgrades will likely result in trillions of dollars in lost business productivity and severely disrupt the movement of people and freight, the American Society of Civil Engineers warned in its new report. A decline in business productivity of about $23 trillion over the next two decades is projected absent sizable funding injections that would remedy roads, bridges, tunnels, ports, power grids and water systems, the group of engineers concluded in “Failure to Act: Economic Impacts of Status Quo Investment Across Infrastructure Systems.” Additionally, allowing subpar infrastructure through 2039 could lead to a loss of $10 trillion in gross domestic product, costing most households more than $3,000 annually. Link: American Society Of Civil Engineers Failure to Act Report

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Workforce

Fleets taking steps to advance time-based driver pay

CCJ Aaron Huff January 12, 2021

Mileage has traditionally been used by truckload carriers as the basis for pricing loads, billing customers and paying drivers. In this low-margin industry, however, time has always been the more important denominator. Increasingly, motor carriers are converting to time-based measurements to create alignment between these critical business processes. As part of this effort many are using their data and information systems to create hourly or salary pay models.

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