Driver overtime pay likely isn’t enough to overcome shortage and turnover issues
Good morning! MERRY CHRISTMAS EVE! 🎄Celebrate in whichever way you feel is best for you and your family!
Whether it’s the American Trucking Association (ATA) reporting that the trucking industry is short 80,000 drivers or the Owner-Operator Independent Driver Association highlighting the industry’s 90% turnover rate… it’s clear that there’s a massive problem. Congress has taken to the Guaranteeing Overtime for Truckers Act, discussing the possibility of ending the overtime exemption for trucking that was originally put in place by the Fair Labor Standards Act of 1938. But some industry experts are weighing in… claiming overtime pay won’t be enough to fill the gaping hole.
Check out today’s featured article from Inbound Logistics to read about the possibility of overtime pay changing the outlook of the trucking industry’s labor shortage issues… and how the industry can take it a step further. ☕️
Featured Article:
We Need More Than Overtime Pay to Fix the Driver Shortage | Inbound Logistics
“Transportation logistics faces a conundrum. The U.S. commercial trucking industry is the foundation of our economy, yet it consistently struggles to recruit and retain drivers.”
Ports & Compliance 🚢
Federal Maritime Commission asks carriers to provide compliance plans to the Ocean Shipping Reform Act of 2022
The Federal Maritime Commission (FMC) is an independent U.S. government agency that regulates ocean-borne transportation in the foreign commerce of the United States. The FMC's main functions are to ensure that the shipping industry operates in a fair, efficient, and reliable manner, and to protect the interests of consumers. Being responsible for regulating the activities of ocean common carriers, marine terminal operators, and ocean transportation intermediaries, the FMC is asking the top twenty shipping lines that interact with United States ports to explain their plans to adhere to the latest wave of regulations.
The regulations in question are laid out in the recently passed Ocean Reform Act of 2022. Shipping lines will now be required to prohibit retaliatory and discriminatory behavior, and employees will be held accountable to the law. As explained by FMC Chairman Daniel B. Maffei, a shipper that logs a complaint against an ocean carrier cannot be discriminated against: no excuses.
Sales & Customer Relations 📦
Sending a package? Rate increases, incoming!
Some of the largest parcel-delivery carriers in the country are raising their prices higher than in their entire history. FedEx is leading the charge, announcing more than 20 surcharges that are sending rate increases into double digits. This will be on top of the almost 7% general rate hike - and will almost certainly be passed along to the consumer.
Shippers are looking ahead on how to combat the inflated prices. John Haber, chief strategy officer at Transportation Insight is speaking out, encouraging companies to plan now for how to offset these cost inflations as they are likely to continue to increase.
Ports & Compliance 🚢
U.S. Supply Chains underwent White House intervention in 2022
The Biden Administration has many supporters and many critics - for that we can be certain. But various governmental actions occurred over the past twelve months that directly affected the American supply chains - including legislation that will hold ocean carriers accountable and bolster the electric vehicle battery supply stateside.
From preventing a potentially brutal blow to the economy during the holiday season with a railroad worker strike to providing funding for projects that focus on clean energy initiatives… the supply chain was one of the hottest topics in Congress this year.
Trucker’s Lounge 🧢
Supply chain community remembers former head of CSCMP, George Gecowets | DC Velocity
DC Velocity shares an article celebrating the late George Gecowets, former executive vice president and chief operating officer of the Council of Supply Chain Management Professionals (CSCMP). He sadly passed away on December 6th, 2022.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 28, 2024, from iLevel Logistics Inc.