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Logistics Intelligence Brief
Thursday, January 20, 2022

Trucking

ATA Selects 22 Drivers as New Road Team Class (Three Yellow Drivers Named Captains)

Transport Topics Noel Fletcher January 19, 2022

“I’m proud that they will be representing the industry and ATA as our newest and best ambassadors — educating the country abut trucking’s essential role in keeping America moving safely and efficiently,” said Chris Spear, president of American Trucking Associations, about the incoming group during an induction ceremony Jan. 19. “This industry, like our country, is diverse, hardworking and patriotic, and this new class of America’s Road Team Captains reflects all of that.”
“America’s Road Team is one of the most visible groups of professional truck drivers in the country, and we believe that their hard work to promote the profession and safety pays dividends for our industry. We thank the captains for their strong engagement and being passionate ambassadors of this great profession,” said Peter Voorhoeve, president of Volvo Trucks North America, in a news release.
Attending the introduction was 2013 Captain Herschel Evans, a driver with Yellow, from Georgia. He spoke about the gratification of delivering disaster relief to communities, when trucks can deliver supplies directly to the areas where people need them the most. “After a tornado, we can put 50,000 bottles of water to help people that very day,” he said.
After the December 2021 tornado in western Kentucky, Evans drove his truck four times to the stricken area to deliver emergency supplies including water, diapers and pet food. “When I walked over to the church to have lunch, all the people in the whole church clapped,” he added, reflecting on one relief journey there.
Michael Buck, Yellow, Moore, Okla.
Richard Frazer, Yellow, Rockford, Ill.
Jeff Rose, Yellow, Creston, Ohio

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Spot van rate hits $3 milestone in December

Fleet Owner January 19, 2022

Van rate up 54 cents year-over-year
• At $3 a mile, the national average spot rate for van freight was up 7 cents compared to November and 54 cents higher than in December 2020.
• After increasing 17 cents month-over-month in November, the average spot reefer rate rose 2 cents to $3.47 a mile in December. The spot reefer rate has set a new high for six straight months and is 79 cents higher compared to the same period last year.
• The national average rate for flatbed loads on the spot market increased 2 cents to $3.08 per mile, a 59-cent gain year-over-year.

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Industry

National diesel average heads up for the second straight week, reports EIA

Logistics Management January 19, 2022

The national average price per gallon for diesel gasoline saw its second straight week of strong gains, according to data issued this week by the Department of Energy’s Energy Information Administration (EIA).
With a 6.8-cent increase, the national average, for the week of January 17, came in at $3.725 per gallon, which followed a 4.4-cent increase, to $3.657 per gallon, for the week of January 10.

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Shift in drayage drivers tightening capacity

The Journal Of Commerce William B. Cassidy And Ari Ashe January 19, 2022

Subscription-Based

A significant increase in the number of drayage companies over the past year isn’t creating more drayage capacity. In fact, a rapid increase in the number of small, independent drayage carriers formed by drivers leaving larger carriers to chase high spot market drayage rates may be leading to longer container turn times, making it more difficult to get containerized freight out of some ports.
The shift of truck drivers from larger to smaller drayage companies, which mirrors a similar trend in the over-the-road truckload market, is making it harder for US importers to source dray capacity, with many of their traditional contract providers fully booked amid surging import volumes. That's forcing greater reliance on brokerage and load boards, including the brokerage units contract drayage providers operate alongside their asset-based divisions. And the capacity shift may lead US importers to reevaluate how they procure drayage and other capacity to move freight inland over the next few months as import volumes and available capacity fluctuate.

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Schneider to leave BNSF for Union Pacific in 2023

The Journal Of Commerce Ari Ashe January 19, 2022

Subscription-Based

Schneider National will leave BNSF Railway to partner with Union Pacific Railroad in the western US next year, the third major intermodal marketing company (IMC) to announce a swap of railroad partnerships in the past six months.
Schneider’s move, announced Wednesday, will have a bigger impact because it owns more than 25,000 containers — more than APL Logistics and Swift Intermodal combined. APL and Swift switched to UP this month, although Swift had been gradually moving traffic to UP since last summer, according to a source close to the situation.
Schneider, which also services more than 45 rail ramps in the US, is the third-largest US asset-owning IMC behind J.B. Hunt Transport Services and Hub Group. Schneider will become the largest company-owned dray fleet hauling freight on UP.
Related: Transport Dive Rail velocity hampers JB Hunt as Schneider signs with new rail partner

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Shippers/3PLs

How Walmart GoLocal plans to stand out among delivery businesses

Supply Chain Dive Max Garland January 19, 2022

Walmart is a fresh face in the crowded delivery-as-a-service space, but the retail giant is looking to make its mark with a precise white-label delivery focus and by expanding fulfillment options to categories beyond food.
Since being announced in August, Walmart GoLocal has invited comparisons to companies like DoorDash and Instacart thanks to its same-day delivery focus. Yet there is a key difference between GoLocal and other providers: GoLocal doesn't have its own customer-facing platform. Instead, its focus is to deliver orders made on its clients' websites and apps.
"That's a big differentiator, to be respectful of not disintermediating business-to-consumer relationships," Harsit Patel, general manager of Walmart GoLocal, told Supply Chain Dive.

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Workforce

LA Port Truckers Seek to Unionize in New Gig Work Showdown

Bloomberg Josh Eidelson January 19, 2022

Subscription-Based

Hundreds of truckers who haul goods at Southern California ports and railyards are petitioning to unionize, hoping to convince federal authorities they’re really employees and not contractors as their company claims.
In a Wednesday filing with the National Labor Relations Board, the Teamsters union requested a unionization election be held among around 250 drivers who work for the logistics company XPO Logistics Inc.
Drivers say they want to win workplace benefits, such as healthcare, that they’ve been excluded from as so-called contractors, and address long-running issues like low pay, which the union argues contributes to the worker shortages currently roiling company supply chains.

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Government/Safety/Sustainability

Robin Hutcheson Selected to Head FMCSA

Transport Topics Eric Miller January 19, 2021

In her past role at DOT, Hutcheson led safety policy for DOT and coordinated other critical efforts, including COVID-19 response and recovery. She was instrumental in the development of the bipartisan infrastructure law, especially the new Safe Streets and Roads for All program, according to an FMCSA statement.
Prior to being appointed to the Biden administration, she was the director of public works for the City of Minneapolis overseeing a team of 1,100 people across nine divisions including drinking water, surface waters and sewers, solid waste and recycling, fleet management, and all transportation functions.
Related: CCJ DOT tasks its COVID response and recovery boss to lead FMCSA

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HOS changes promote flexibility without hindering safety, agency says

Land Line Mark Schremmer January 19, 2022

Defending its recent changes to the hours-of-service rules, the Federal Motor Carrier Safety Administration contends that the modifications promote flexibility for drivers without compromising health or safety.
On Tuesday, Jan. 18, FMCSA filed its response brief with the U.S. Court of Appeals for the District of Columbia regarding a lawsuit filed by the International Brotherhood of Teamsters and several safety groups. The lawsuit says FMCSA’s rule changes weakened the hours-of-service regulations and will negatively affect highway safety.
“The incremental changes to the hours-of-service rules challenged here reflect FMCSA’s weighting of scientific evidence and its careful consideration of the potential impacts on driver health and safety,” the agency wrote in its respondent brief. “The current rule does not alter the length of time a driver may drive, and it generally requires a 30-minute break after eight hours of driving.”
FMCSA’s hours-of-service rule changes went into effect in September 2020.

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