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Thursday, April 29, 2021

Logistics Intelligence Brief


Squeezed shippers drive C.H. Robinson’s LTL business (Subscription Based)

The Journal Of Commerce William B Cassidy April 28, 2021

LTL carriers have also noted the spillover from the truckload market, with volume LTL and partial truckload volumes climbing and shipment weights rising. Those carriers are carefully controlling their intake of larger-than-usual shipments, however, to protect service to long-standing LTL customers. That means refusing more shipments and pricing the ones they accept substantially higher. That leaves shippers looking for any available capacity and finding less and less freight space available with their traditional carrier partners. Intermodal rail providers also are limiting shipments to contractual levels, and chassis shortages are reducing capacity on the rails. All this pushes more freight to 3PLs such as C.H. Robinson, which is still able to find LTL capacity in its network.

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Yellow’s Order for 1,222 579s With Paccar Powertrain Is Peterbilt’s Largest

Transport Topics April 28, 2021

Peterbilt Motors Co. announced Yellow Corp. placed an order for 1,222 Peterbilt Model 579s. Working directly with the Peterbilt sales engineering team, Yellow chose multiple configurations of the Model 579 day cab equipped with the Paccar MX engine and Paccar TX-12 transmission — making it the single-largest order of Peterbilt trucks equipped exclusively with a Paccar powertrain, according to the Denton, Texas, company, which is a unit of Paccar Inc. “It’s an honor to work with Yellow as they begin to refresh their fleet,” said Peterbilt General Manager Jason Skoog.

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$70K for part-time driver? Covenant CEO says that could be fine for some

Freight Waves John Kingston April 28, 2021

David Parker is the CEO of Covenant Logistics (NASDAQ: CVLG), and he was blunt with analysts who follow the company on its earnings call Tuesday. “How do we get enough drivers?” he said in response to a question from Stephens analyst Jack Atkins. “I don’t know.” Parker then gave an overview of the situation facing Covenant, and by extension other companies, in trying to recruit drivers. One problem: With rates so high, companies are encountering the fact that a driver doesn’t need to work a full schedule to pull in a decent salary. “We’re finding out that just to get a driver, let’s say the numbers are $85,000 (per year),” Parker said, according to a transcript of the earnings call supplied by SeekingAlpha. (FreightWaves also listened to the call). “But a lot of these drivers are happy at $70,000. Now they’re not coming to work for me, unless it’s in the ($80,000s), because they’re happy making $70,000.”

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Court ruling suggests California truck classification law to stand (Subscription Based)

The Journal of Commerce Bill Mongelluzzo April 29, 2021

A ruling Wednesday by a federal appeals court that an injunction against enforcement of Assembly Bill 5 (AB5), California’s worker classification bill, could be overturned in the coming weeks or months should motivate trucking companies to examine to how they will operate in the state, according to an attorney familiar with the case. The US Ninth Circuit Court of Appeals on Wednesday ruled that the California Trucking Association, which opposes AB5, is unlikely to succeed in its claim that AB5 is preempted by a federal law known as the Federal Aviation Administration Authorization Act. The trucking association last year convinced a US district court in Southern California to issue a preliminary injunction that has barred enforcement of AB5 as it applies to trucking. Trucking companies should view the Ninth Circuit’s ruling as eventually having a significant impact on how their operations are structured, said Greg Feary, a partner in the law firm Garvin Light Hanson & Feary, told JOC.com Wednesday. “Licensed motor carriers (LMCs) must understand how they will do business in and out of California,” Feary said.

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Appeals Court Rules California Can Enforce AB 5

Transport Topics Eric Miller April 28, 2021

A three-judge panel of the 9th U.S. Circuit Court of Appeals has rejected a lower court’s preliminary injunction that blocked the immediate implementation of California’s Assembly Bill 5 law, which motor carriers have claimed would make use of independent contractors next to impossible. Specifically, in a 2-1 decision handed down April 28, the appeals court said that claims by the California Trucking Association were not pre-empted by the Federal Aviation Administration Authorization Act of 1994, and that CTA’s court efforts were “unlikely to proceed on the merits.” The appellate panel said the district court abused its discretion by enjoining the state of California from enforcing AB 5 against motor carriers doing business in California, saying the law is a “generally applicable labor law that affects a motor carrier’s relationship with its workforce and does not bind, compel or otherwise freeze into place the prices, routes or services of motor carriers, and is not pre-empted by the FAAAA.”

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Carriers, Contractors Voice Support for Keeping DOL Rule

Transport Topics Eric Miller April 28, 2021

Motor carriers and independent contractors in written comments expressed objection to a U.S. Department of Labor proposal to withdraw a rule designed to clarify the federal standard for determining if a truck driver is a contractor or employee. The agency in January said the rule — issued that month — was designed to promote “certainty for stakeholders, reduce litigation and encourage innovation in the economy.” The proposal to drop the rule drew more than 1,000 comments. Issued in the waning days of the Trump administration, the federal rule called for elimination of the so-called ABC test used in California to determine whether a truck driver is an employee or independent contractor. The rule was widely viewed as favorable to motor carriers and drew support from groups including American Trucking Associations. Many independent contractors also filed comments to oppose dropping the rule.

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Supply chains are linked up with the White House’s push to reduce GHG emissions

Logistics Management Jeff Berman April 28, 2021

As for steps taken on the climate front early into the Biden presidency, things are moving at a rapid clip, with the U.S. having rejoined the Paris Agreement, as well as renewing the nation’s focus on climate change, issuing an executive order focused on addressing the climate crisis at home and abroad, while creating good-paying union jobs, building sustainable infrastructure, and delivering environmental justice. But that is not all that is happening on the sustainability front. Logistics and freight transportation stakeholders have highlighted various steps shippers, carriers, and 3PLs can take to reduce emissions, including focusing on things like route optimization, delivery process improvements and efforts focused on actively taking miles off of the road, and shortening the last mile of the supply chain and eliminating the need for some of these additional vehicles and additional operations in place.

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