Brokers beware: you’re on the FMCSA’s 2023 agenda
Good morning!
Happy Halloween from your friends at iLevel Logistics! 💀🎃👻
The Federal Motor Carrier Safety Administration has a lot on its agenda as we enter 2023, including the issue of freight broker financial responsibility. Prompted by 2012’s Moving Ahead for Progress in the 21st Century Act, the FMCSA announced back in 2018 that it would likely be approaching rule-making that revoked the license of brokers when their bonds were under $75,000. It’s expected that official changes will finally be proposed in mid-to-late January of 2023.
Check out today’s featured article from Land Line Media to read about the issues regarding freight brokers that are fresh on the FMCSA’s radar as we enter the new year. ☕️
Featured Article:
Broker issues to heat up in 2023 | Land Line Media
“A pair of issues regarding brokers are on the Federal Motor Carrier Safety Administration’s agenda for early next year.”
Ports & Trade 🚢
Port of NY & NJ takes top spot over LA for the second month in a row
According to recently released September data, the East Coast port of New York and New Jersey has earned the top spot for a second consecutive month. There has been a growing fear of West Coast port disruptions as the negotiations between the labor unions and the port association continues to hang in the balance after several months. Cargo has been diverted from the West Coast to ensure its deliverability, creating an influx.
Rick Cotton, executive director for the Port of New York and New Jersey, indicated that the level of cargo was showing no signs of slowing down and that he expects it to continue throughout peak season. Josh Brazil, vice president of supply chain insights at Project44, says that this shift to the East Coast signals the trend among shippers to diversify in advance of supply chain disruptions they are, by this point, all too familiar with.
Money Matters & Collections 💰
Paper checks should be obsolete, say carriers and shippers
The financial enablement platform Denim surveyed 168 freight brokers and over half had something in common: 60% said they still pay with paper checks and 68% said that eliminating them would improve operations. So, what gives?
In Denim’s inaugural Freight Broker Pulse Report, the freight brokers advised that their operations and accounting departments spend too much time invoicing, collecting, and making payments. Time is critical in the logistics world, and the less time spent on broker operations, the better. The average time spent on these operations amounts to 480 hours per year if one was to work a forty-hour work week.
Let’s Get Global 🌎
The Office Boomer GIF By MOODMAN via GIPHY
🫣 Shipping, globalization, and logistics… is a singular generation to blame? Experts within the United State’s maritime industry say the sector is made up of mostly Baby Boomers, the largest generation in American history. Not only are they the largest, this generation of people is the most educated and best trained for their line of work - but will the ball be passed along? With baby boomers retiring en mass, there is a massive labor shortage looming on the horizon, and global demographics signal that this will have dire international consequences.
🇸🇦 Saudi Arabia invested $2.7 billion into improving its logistics network, but will it pay off? In a move to entice investment firms on a global scale to take a look at the kingdom’s supply chain capabilities, Saudi Arabia’s focus must focus on the digitalization of all supply chain, business, and logistics processes. Saudi Arabia has goals to be on the list of the top 15 economies in the world by the end of the decade.
🇳🇴 Regardless of mysterious explosions, can the Nord Stream pipelines come back online? International welding engineer (IWE), researcher, and senior advisor at SINTEF, Ragnhild Aune, has stated that the damaged gas pipelines could be repaired, but it would be a very demanding project. By utilizing hyperbaric welding and diving boats, a team would theoretically be able to cut out and replace new pipe parts and keep the existing line intact.
iLevel With You
More topics for the average American household to consider…
📲 Elon Musk is finally the “Chief Twit”. After months of back-and-forth with the social media company, the CEO of Tesla and Space X, Elong Musk, has finally taken control of the company after paying out $44 billion. Hours after a Delaware judge threatened Twitter and Elon Musk that she would take the matter to trial if an agreement had not been reached, the deal was settled. Immediately upon finalizing the deal, Musk fired CEO Parag Agrawal, CFO Ned Segal, and Chief Legal Counsel Vijaya Gadde.
⛽️ Diesel reserves have officially reached their lowest levels since 2008. The Biden Administration is working to boost supplies after reports stated that reserves would run out in less than thirty days if they were not replenished. National Economic Council Director Brian Deese admitted that the reserve levels are dangerously low and that they are reviewing a variety of options to address the issue. Meanwhile, the East Coast braces for incoming diesel shortages if changes are not made in short order.
🥊 The United States and Saudi Arabia are battling over oil. While the relationship between the two countries is critical, United States officials are vocalizing angry sentiments at the Saudi-led OPEC decision to cut oil production. This resulted in gas pump prices jumping as midterm election season began in America. Lawmakers in the United States are now hinting at filing a lawsuit against OPEC and banning weapons sales to the kingdom in retaliation. Saudi Arabia has hinted as well that they could dump the United States debt and sell US Treasury bonds.
GET SMART
Ramp up that brain power for these advanced topics…
🎄 During the competitive holiday season, backorder strategies are critical. Gartner Supply Chain's Claudia Clemens has been warning chief supply chain officers (CSCOs) that developing a strategy to deal with items being “out-of-stock” could save their businesses during the onslaught of sales during peak season.
👩🏭 Women only make up 2% of the vehicle repair sector. At the 2022 ASE Instructor Training Conference in Frisco, Texas, Catherine “Cat” Treanor, a U.K. business development manager for Electude, hosted a panel with several female automotive service professionals, students, and instructors. Together, they discussed how the industry can absorb a larger female workforce.
👔 Safer trucking, better pay… Pete Buttigieg. DOT Secretary Pete Buttigieg advocated for safety and better company culture practices at ATA’s Management Conference & Exhibition in San Diego last week. Speaking to the MCE attendees, he referenced the truck drivers lost to traffic accidents over the past years and detailed the Biden Administration’s Trucking Action Plan. The Trucking Action Plan is legislation that includes instructions for better trucker pay and leasing agreements for fleets.
Rail 🚂
Trucking industry watching closely as rail negotiations drag on | The Trucker
In this article, The Associated Press shares an article as a contributor, writing about the growing concern in the trucking sector as worries of a rail strike linger on.
Electric Vehicles 🔋
EU approves ban on new combustion-engine cars from 2035 | AP News
In this article, AP News writes about the European Union’s approval to ban the sale of new gasoline and diesel cars and vans by 2035.
Leadership 🏆
Giving it a second thought | Seth’s Blog
Seth Godin writes about problem-solving as a business owner and how to narrow in on effective solutions.
Fuel ⛽️
The ships full of gas waiting off Europe’s coast | BBC
BBC contributor Chris Baraniuk writes about the massive fuel tankers full of liquid natural gas sitting off the coast of Europe, struggling to port.
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.