Author Archive for NITL Staff – Page 10

Demand for Trucking Reaches Historic High: How to Combat Covid-19 Induced Capacity Crisis Soaring

September 2nd – 11am EDT

Speaker: Jeff Tucker, Tucker Company Worldwide

Since June 2020, truck capacity has steadily tightened, reaching all-time highs in early August. Freight prices have increased in the spot markets, LTL and intermodal. Contract pricing too, as tender rejections are up. It all adds up to the next great capacity crisis–the third in about 5 years. Yet few shippers plan strategies to anticipate and scale these crises.

Demand is likely to increase–U.S. factory orders rose 6.2% in June, with predicted continued growth; China’s factory output in July was the largest growth it’s had since 2011. It means products will be more expensive and more challenging to ship than ever before. We’ll look at the market data today and discuss some critical mega-trends you need to know for future success.

Reserve your spot!

Supply Chain Risk Management: Handling Disruptions Today and Tomorrow

September 16th – 2pm EDT

Speaker: Richard Sharpe, Competitive Insights

The COVID-19 pandemic has exposed many supply chain related resiliency issues, ranging from shortages in product availability to meeting surges in demand. Because the supply chain issues are  so visible and affecting so many companies adversely, shareholders and stakeholders will require companies and their supply chain executives to demonstrate an active, effective and ongoing  Supply Chain Risk Management (SCRM) program. What will be the next disruptive event? Are you ready?

You are invited to attend a very interactive presentation by Richard Sharpe, CEO of Competitive Insights, and gain key takeaways to make smarter and more targeted SCRM decisions, both reactive and proactive. Learn how effective SCRM analytics enables companies to add measurable resiliency to their operation while, at the same time, protecting profit and shareholder and stakeholder investments.

Reserve your spot!

COVID-19 Response and Resources

NITL is responding to the COVID-19 pandemic and has created a list of important resources and updates on federal and state activity. Click here for more details.

NITL Joins Trade Group Letter on Highway Funding

The National Industrial Transportation League joined dozens of other trade groups to sign on to a letter to the Senate Finance Committee as it considers the surface transportation reauthorization bill. Among the letter’s requests are that the committee consider broad mechanisms for funding the bill, rather than putting the burden on the freight transportation industry. The full letter may be found here.

NITL Files Comment on FMC Proposed Interpretive Rule

The National Industrial Transportation League filed comments on October 31st in response to the proposed interpretive rule on port demurrage and detention practices issued by the Federal Maritime Commission.

In September, the FMC issued final recommendations in its Fact Finding Investigation, which included a Notice of Proposed Rulemaking (NPRM) seeking comment on use of an interpretive rule to address detention and demurrage practices.

 

 

STB Announces Decisions on Demurrage/Accessorial Charges

On October 7th, the Surface Transportation Board announced its highly anticipated proposals on how the agency would address demurrage and accessorial charges.

Over three decisions, the Board has said the STB will continue “its efforts to improve dispute resolution processes, promote transparency, and make the agency more accessible.”

STB Decisions

  1. EP 757: Proposed Policy Statement on Demurrage and Accessorial Rules and Charges: provides information on principles the Board would consider in evaluating the reasonableness of demurrage and accessorial rules and charges. The proposed policy statement addresses a number of key areas of concern raised by stakeholders, including: free time, bunching, overlapping charges, invoicing and dispute resolution, credits, notice of major tariff changes, and warehouseman liability.

The Board expects this policy statement will:

    • Facilitate more effective problem solving between railroads, shippers, and receivers
    • Assist with prevention of unnecessary future issues
    • Enable more efficient and cost-effective resolution of issues when they do arise
  1. EP 759: Notice of Proposed Rulemaking: Demurrage Billing Requirements: the Board is proposing to enhance the transparency and accuracy of demurrage invoices by requiring Class I railroads to include minimum information that would assist shippers and receivers with verifying charges, determining who is responsible for delays, and evaluating whether and how they can expedite their handling of cars. The Board also proposes a requirement that Class I railroads send demurrage invoices directly to the shipper instead of the warehouseman, if so agreed upon by the warehouseman and the shipper.
  1. EP 760: Notice of Proposed Rulemaking: Exclusion of Demurrage Regulation from Certain Class Exemptions: the Board proposes to clarify its regulations governing exemptions for certain miscellaneous commodities, such as paper products and steel scrap, and boxcar transportation to ensure that they clearly reflect longstanding court and agency rulings that these exemptions do not apply to the regulation of demurrage. The Board also proposes to make the exemption for certain agricultural commodities consistent with those exemptions by revoking, in part, the exemption that currently covers certain agricultural commodities so that the exemption does not apply to the regulation of demurrage.

These decisions were in response to a May STB hearing where numerous parties, including NITL and many NITL members, shared concerns and challenges related to recent changes implemented by Class I railroads.

Comments to each of the proposals are due by November 6, 2019, and replies are due by December 6, 2019. NITL is reviewing the decisions and weighing how we will respond. We will provide further over the next few weeks.

More Reading:

Proposed Policy Statement on Demurrage and Accessorial Rules and Charges

NPRM Demurrage Billing Requirements

NPRM Exclusion of Demurrage from Certain Class Exemptions

NITL Testimony: May 2019 hearing on demurrage and accessorial charges

NITL Responds to STB Report on Rate Case Reform

National Industrial Transportation League Executive Director Jennifer Hedrick issued the following statement today in response to the Surface Transportation Board’s release of a report on review processes and methodologies:

“The National Industrial Transportation League (NITL) welcomes the release of the report from the STB’s Rate Reform Task Force. We are pleased to see that the report offers recommendations for modifying the current rate review methodologies and processes, including decreasing the costs and complexities of bringing a rate case before the board.

Members of NITL thank the STB staff for their work on the report and Chairman Begeman for her commitment to rate reform. We look forward to analyzing the report and providing further comment upon review.”

League Supports Push for Twin-33 Trailers

The National Industrial Transportation League has joined with 19 other organizations in co-signing a letter to U.S. Transportation Secretary Elaine Chao urging the Transportation Department to include a recommendation to change the national twin trailer standard from 28 feet to 33 feet as part of any infrastructure policy proposals it submits to Congress.

The letter notes that freight traffic has grown exponentially in recent years and is expected to continue doing so—DOT, in fact, is forecasting a 45 percent increase in freight volume by 2045. This increase will further stretch already-thin freight capacity and workforce levels and result in more highway congestion, greater fuel consumption, and higher freight transportation costs.

“The case for a policy change is clear,” states the letter. “Twin 33-foot trailers would immediately improve the efficiency and safety of truck operations across the nation’s congested freight network and benefit taxpayers and travelers. A new national standard for twin 33-foot trailers will add instant capacity while reducing congestion and improving the safety and efficiency of the roadways.”

The letter was submitted by Americans for Modern Transportation, a coalition of freight shippers, carriers, and interest groups that advocates for laws and regulations to streamline the delivery of products and consumer goods. NITL is a coalition member.

League Welcomes FMC Confirmations

The National Industrial Transportation League congratulates Louis Sola and Daniel Maffei on their confirmations to the Federal Maritime Commission, the principal U.S. agency responsible for regulating the international ocean transportation system for the benefit of U.S. exporters, importers, and consumers.

We welcome Commissioner Sola in his new role at the FMC and are pleased to see the return of Commissioner Maffei to the agency. Their confirmations will allow the commission to more broadly consider issues that affect our nation’s shippers, including efficient port operations and reasonable terminal/carrier cargo handling practices.

NITL members look forward to working with Commissioners Sola and Maffei and other members of the FMC to ensure that our nation’s ocean freight transportation system remains efficient and strong.

NITL Thanks Senate for Confirming STB Nominees

This week, NITL joined with more than 75 other associations in sponsoring an ad in Politico thanking the U.S. Senate for confirming Patrick Fuchs and Martin Oberman to long-vacant seats on the Surface Transportation Board.

The STB has been operating for more than a year with just two of its five seats filled, hampering the agency’s ability to address ongoing freight rail issues and advance overdue regulatory reforms. In April 2018, the Senate Commerce, Science and Transportation Committee approved the nomination of Fuchs, a senior staff member of the committee; four months later, the committee also approved Oberman, a former chairman of Chicago’s commuter rail system, Metra. The full Senate approved Fuchs and Oberman on January 2 by voice vote.

The ad thanking the Senate was prepared by the Rail Customer Coalition, a group of associations representing manufacturing, farming, and other sectors of the economy. RCC members (including NITL) are major users of freight rail, accounting for more than half of the total volume of cargo shipped by rail and generating more than three quarters of the revenues collected by the railroads.