According to the American Trucking Associations (ATA), it is estimated that the there is a shortage of 30,000 truck drivers in the U.S. There are many factors contributing to the loss of drivers including retirement of former drivers, small owner/operator trucking companies being forced out of business, increased monitoring and reporting, stricter regulations for CSA (Compliance, Safety, Accountability), and the lifestyle in general.
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On March 19, 2015, Senators John Thune and Senator Bill Nelson have introduced the S. 808, known as the Surface Transportation Board Reauthorization Act of 2015. Previously in 2014 a similar bill was introduced to Congress by Jay Rockefeller and John Thune. Due to its late introduction to Congress, the bill did not move further than being approved by the Committee of Commerce, Science and Transportation.
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Now that the labor dispute on the West Coast has been resolved, how will import and export shipments be handled moving forward? Is your company one that is considering making changes? It appears that many are weighing their options in hopes of preventing the same scenario happening in the future.
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Railroad profits have steadily risen over the last decade in part because rates have been increasing, often in excess of the inflation rate or the actual cost increase of moving cars. And every time rates go up or change in any way, there is an elevated likelihood of incorrect billing.
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The National Industrial Transportation League held a Webinar in response to the BNSF’s statement that they were eliminating their fuel surcharge program for carload traffic. The change was set to take affect this month, and Sandra Dearden, President and CEO of Highroad Consulting, Ltd. offered suggestions for shippers when negotiating new rates. Also interesting is the CSXT’s announcement that they were going to re-baseline their mileage based fuel effective January 1, 2015. Genesse and Wyoming reset their mileage base with a strike price of $3.70 HDF, also effective the first of this year. What do these changes mean?
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What is the Surface Transportation Reauthorization Act of 2014, and why is it important to shippers? This bipartisan legislation was introduced on September 7, 2014 to improve the operation and effectiveness of the Surface Transportation Board. It asks to remove the STB from the Department of Transportation to establish it as an independent US agency.
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An article at US News and World Report outlines the latest ruling by the Supreme Court, allowing Alabama to apply a fuel sales tax to rail but not to truck or barge.
Shippers are likely to see an increase in rates for movements through Alabama to make up for the new state sales tax on diesel fuel. Any time rates are changed is an opportunity for billing errors. AMTR monitors these changes to make sure every shipment has been paid correctly, small rate changes can lead to big overcharges across volume shipments!
Look in any contract or rules tariff and you will probably see this phrase defined. It is a French term literally translated as “greater force”. When invoked, it frees both parties from liability or obligation when an extraordinary event prevents one or both parties from fulfilling their obligations under the contract. Some scenarios included in many rules tariffs describe: Acts of God, war, insurrection, strikes, embargoes, and derailments. Still others may go further and site fire, explosion, and acts of terrorism. Union Pacific railroad gives a description of how to amend your volume commitments during this time. Included also are events which do NOT constitute a force majeure such as economic downturns or market conditions.
Due to the severe port congestion and labor disputes on the West Coast, over 70 Southern California truckers have notified the Uniform Intermodal Interchange Agreement (UIIA) and a number of shipping lines that they have declared “force majeure” and will not be held responsible for the payment of carrier-imposed charges for late equipment return. These harbor truckers are unable to operate normally, and many are being billed for these delays and service issues. Recent news also reports that although the CP Rail strike has ended after only one day, they still have numerous issues on the table. Both parties have agreed to go before an arbitration board to find resolution.
Shippers would be wise to examine all their agreements during this time of labor negotiations in both the US West coast as well as Canada. It would also be wise to have all your freight examined by a third party audit firm who is well versed in the language and law of contract and rules tariffs.
Further information may be found:
http://www.cbc.ca/news/politics/cp-rail-teamsters-union-agree-to-arbitration-1.2958917
There’s not just one thing you can do to save on your transportation costs – but in this article from Inbound Logistics, there are suggestions on how to tighten up on a few things that may be costing your company.
Specifically #7 could be one of your biggest sources of savings. Ultimately, it is common that there is neither the time nor the man power to have a trained transportation auditor available at your company that can determine the correct classification.
Let AMTR provide your with a knowledgeable team that has the time and experience to review your freight invoices and ensure that your classifications are correct and your being billed correctly.
The U.S. Business Coalition for the Trans Pacific Partnership posts a great infographic regarding Agriculture trade.
Many of these products are still regulated by the Federal Government. Rules regarding rail shipments and federal statutes may affect how shippers are invoiced for freight. At AMTR all our auditors have passed courses in Transportation Law.
Knowledge makes the difference in getting the most for your freight spend.
