Tag Archives: trucking

Chaos at port of Felixstowe – carriers refuse return of empty boxes

Posted on September 20, 2020 by | 1 comment

It’s typical of IT projects to ber late or never get finished. Here we seem to have an example that is severely impacting everyone else in the supply chain.

Here at Felixstowe, you can’t return empty containers. You have to return them inland, at considerable extra cost and expense. It’s England, so the truckers are companies, and they can pass their costs along.

If this were the US, the individual owner-operators would have to take the expense, because they get a piece rate for a trip, regardless of where they have to return the container. they would have no way to pass on the cost. We see similar debacles occasionally at US ports.

By Gavin van Marle 18/09/2020

Link: https://theloadstar.com/chaos-at-port-of-felixstowe-worsens-as-carriers-refuse-return-of-empty-boxes/

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Posted in Logistics, Ports, Supply Chains, Trucking

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Challenge HOS final rule in federal court

Posted on September 17, 2020 by | 1 comment

Teamsters and several safety organizations have challenged the new HOS rules. It won’t keep them from going into effect; but it will point out that the new rules directly contradict previous findings of the FMCSA.

I’ve been waiting for such challenges. The HOS rules were negotiated with lots of deliberation a couple of years ago, and they represent losses of rights for employee truckers. Independent Owner-Operators may have a different view, since they are playing with their own money and time, and might prefer longer hours even if it is less safe.

Like not wearing a mask.

Link: https://www.freightwaves.com/news/breaking-news-safety-groups-teamsters-challenge-hos-rule-in-federal-court

By John Gallagher, Washington Correspondent Wednesday, September 16, 2020

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Posted in Labor Economics, Logistics, Trucking

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Mexico trucking capacity crunch

Posted on September 16, 2020 by | 1 comment

The USMCA replacement for NAFTA has not improved anything regarding trucking between the US and Mexico. COVID-19, movement of production from the Far East to Mexico, and no change in regulations, has put demands on trucking firms and on drivers that they cannot meet without large cost increases.

This is another fine example of the law of unintended consequences. A crisis is emerging, and it is borne on the backs of the truckers themselves. Equipment shortages, payment for deadhead runs, and a change to transloading at the border replaces the vision of through-traffic by Mexican or US trucking firms serving both countries in a seamless manner.

And it is a good example of how logistics is central to the value proposition of any product. The costs of logistics must be figured in, and accurately, and any system must be built to withstand severe shocks.

Scenario analysis may be the only way. The days of Just-In-Time are almost over.

By Ian Putzger, Americas correspondent 16/09/2020

Link: https://theloadstar.com/capacity-crunch-gives-shippers-a-pain-as-us-mexico-trucking-rates-soar/

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Posted in Logistics, Supply Chains, Trucking

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