The Weekly Freight Report for March 18th, 2021

The Top 7 Stories in Freight

Here’s what’s happening this week:

  1. Owner-operator model under assault in CA and Congress
  2. Produce season to come at a hefty price for shippers
  3. Reduced 2020 traffic gave back drivers billions of hours
  4. 2021 sees massive gains for intermodal demand
  5. Congress gives under 21-drivers a second look
  6. FMCSA reports on the impact of HOS rules & ELDs
  7. The Fed and insurance companies talk autonomous truck liability

The hottest stories in freight can be found here, in the Weekly Freight Report:

1. Owner-operator model under assault in CA and Congress

The California freight market is a mess. Now the owner-operator model is under assault again. That’s right, 1 million owner-operators are nervous about the future of their livelihoods due to laws like California’s AB5 and the proposed PRO Act that’s currently on the Senate’s desk. These laws would classify workers as an “employee” of the company unless that worker performs a service “outside the usual course of the business of the employer.” In short… if passed, it will kill the owner-operator model that has been a lifeline of the freight business for decades and add enormous pressure to the current capacity crisis. Get the full details here.

2. Produce season to come at a hefty price for shippers

The freight markets have re-entered “chaos as usual” territory. Tender rejections remain elevated since last month’s blizzard disruptions. Another round of stimulus has passed, inventories remain decimated and economies are recovering as states reopen. As such – the freight market continues to boom. And as produce season creeps in, shippers in major regions including Cali, North Carolina, and Florida find themselves in a major reefer capacity shortage. This means produce season is going to come with a hefty price tag for shippers this year… Get the full update here.

 

3. Reduced 2020 traffic gave back drivers billions of hours

If 2020 was good for anything, it was good for reducing city traffic. According to an Inrix study, Congestion fell almost 50% across major U.S. cities. And this reduction spared drivers nearly 3.4 billion hours – valued at $51B in time saved. The question now is… will reduced congestion last as the economy turns back on? Get the details here.

 

4. 2021 sees massive gains for intermodal demand

With dry van rates nearing $3.00 per mile and rejections at 27%… Could 2021 be intermodal’s year to shine? It’s looking that way. Between port confessions, capacity shortages, and increasing truck and air transit costs… intermodal is gaining some popularity among shippers. And it comes after a brutal 2020 where a lack of container capacity plagued the mode. Today, volumes are up 11% since last year and The National Retail Federation is predicting a 23.3% increase in imports in the first half of 2021. Get the details.

 

5. Congress gives under 21-drivers a second look

Congress has reintroduced a bill that would allow CDL holders under the age of 21 to cross state lines. The young drivers would undergo a probationary period that requires the completion of 400 on-duty hours and 240 driving hours. Not to mention, all under 21 drivers must be accompanied by an experienced driver during that period. It’s one effort that could potentially help the driver shortage and while trucking groups support the bill, opposers fear it could raise safety concerns. Get the full details right here.

 

6. FMCSA reports on the impact of HOS rules & ELDs

The FMCSA provided and update on a variety of its trucking regulation initiatives at last week’s Analysis, Research, and Technology Forum. The two biggest revelations were around false log violations and the percentage of investigations with ELD violations. False log violations have trended up steadily since hard enforcement began in 2018, but are only 1.3% of investigations. And the percentage of violations to inspections now hovers between 12 and 14%. Separately, total HOS violations were down. As noted by the FMCSA’s head of enforcement. “It’s a bit of a non-story right now”. Overall, ELD regulation has been a good thing for the industry and enforcement numbers largely indicate compliance. Get the latest on FMCSA regulation updates here.

 

7. FMCSA reports on the impact of HOS rules & ELDs

The FMCSA provided and update on a variety of its trucking regulation initiatives at last week’s Analysis, Research, and Technology Forum. The two biggest revelations were around false log violations and the percentage of investigations with ELD violations. False log violations have trended up steadily since hard enforcement began in 2018, but are only 1.3% of investigations. And the percentage of violations to inspections now hovers between 12 and 14%. Separately, total HOS violations were down. As noted by the FMCSA’s head of enforcement. “It’s a bit of a non-story right now”. Overall, ELD regulation has been a good thing for the industry and enforcement numbers largely indicate compliance. Get the latest on FMCSA regulation updates here.

 

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