The Top 6 Stories in Freight
Here’s what’s happening this week:
- The divide between carriers and shippers grows
- Importers squeezed for warehousing at ports
- Cali Trucking Association files petition with Supreme Court
- FMCSA says there’s no driver shortage but a big retention problem
- Class 1 railroads defend how they’ve handled congestion
- August to be record for retail imports
The hottest stories in freight can be found here, in the Weekly Freight Report:
1. The divide between carriers and shippers grows
Carriers are increasing their outlooks for the year, ports expect to break more records and cargo owners are worried about the impacts. Get the full story.
2. Importers squeezed for warehousing at ports
“It’s time to sound the alarm on the warehouse situation. They’re full, and it’s not just in Southern California,” says an industry executive. And now they’re worried we could see a repeat of last fall’s meltdown at Los Angeles-Long Beach and other major ports. Here’s the situation.
3. Cali Trucking Association files petition with Supreme Court
It may be the final step in this long-winded AB5 fight… The California Trucking Association has filed a petition for a writ of certiorari before the United States Supreme Court. If the Supreme Court chooses to hear the case, the injunction that has allowed independent contractors to continue operating in California will continue. However, if they deny the case, the injunction will be lifted immediately. Get the full story.
4. No driver shortage but a big retention problem
Long haul driving turnover at major carriers is 90%. For smaller carriers, its 72%. The turnover rates in driving are astronomical. And FMCSA’s panel says ‘there is no driver shortage. There’s a retention problem.” And today, carriers are busy playing catch-up to improve working conditions and provide better pay and benefits for drivers. But some drivers say the problem goes beyond what companies can offer. The government needs to step in and remove the overtime exemption. Read the full article.
5. Class 1 railroads defend how they’ve handled congestion
Congestion all along the supply chain isn’t a new story. And Class 1 railroads have been a big part of that ongoing narrative. Now Class 1 CEOs are defending how they’ve handled international intermodal congestion. Their response? Don’t blame us. One went as far as to say “shippers and receivers are responsible for their decisions to overextend their capacity in shipping and receiving, which congests the supply chain. This overextension is beyond our control.” But blame games aside, they are making plans to clear the congestion… read up on those here.
6. August to be record for retail imports
Peak is officially here… and more boxes are on the way. In order to have sufficient inventory through the holidays, retailers are stocking up now. What happens when the boxes get here becomes the next issue. Warehouses are full. Labor shortages continue. Capacity is pinched across modes. Congestion is growing. And August imports are supposed to hit new records. It’s about to be a peak season nightmare. Get the details.
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