Tom Schmitt

Commercial driver training using A.I. simulation should be mandatory by FMCSA/FTA for all drivers to train on when it comes to space and speed management!

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At Echo Global Logistics, we're always focused on staying ahead of significant industry changes—like the NMFC Code updates announced by the National Motor Freight Traffic Association (NMFTA). These changes will affect how freight is classified, and they’re set to roll out in 2025. Want to stay in the loop? Check out our latest blog, where we explain everything you need to know: https://gag.gl/C7FpqF

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🚛 The Ongoing Challenge of Recruiting Truck Drivers in the U.S. 🚛 Recruiting qualified truck drivers remains one of the biggest hurdles in the U.S. logistics industry. Despite a recent easing in the driver shortage, the demand for experienced, reliable drivers is still high. Many factors contribute to these challenges, from long hours on the road to evolving industry regulations and the need for competitive pay and benefits. In today’s competitive landscape, recruiters must go beyond traditional methods to attract and retain talent. Embracing technology, offering flexible schedules, and improving working conditions can make a significant difference. But above all, we must reshape how we market this profession to reach younger generations who are vital to the industry’s future. As we work to fill these roles, it’s crucial to understand what drivers value most and to foster a sense of respect and appreciation for their essential work. #recruitment #logistics #trucking #transportation #HR #driverrecruitment

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https://lnkd.in/g8kzUiwV The article highlights how Estes will be taking advantage of the terminals it acquired from the now defunct Yellow Corp. #freightwaves

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U.S. total weekly volume from the Association of American Railroads for the week ending May 25 was 485,232 - an increase of 1.2% over the same week last year. Carload volume was down 6.9%, and intermodal volume was up 8.9% over the same week in 2023.

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Who else has a passion for logistics and sod? Great article discussing how Axle Logistics and Sod Solutions achieve the goal to harvest sod, transport it, and have it installed at a project site within 24 hours. Transporting time-sensitive cargo like sod brings unique challenges. I like how the Axle team has contingency plans ready to execute, such as a bump plan in case of a vehicle breakdown. This article also highlights the importance of a logistics provider fully understanding the unique requirements of each customer. #logistics #transportation #pmp #sod #turfgrass #lawnstripes #contingencyplans

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Capitol Hill news today, LinkedIn peeps. The House Committee on Science, Space, and Technology Subcommittee on Investigations and Oversight had a hearing yesterday afternoon on the California Air Resources Board rule on in-use locomotives. The hearing title offers a hint of the Committee majority's views, "Environmentalism Off the Rails: How CARB will Cripple the National Rail Network." You can watch a hearing recording and read the submitted testimonies here (https://lnkd.in/gcCRw4ST) including that of NAS Long Train Study committee colleague and current fellow Texan, Dr. Tyler Dick (https://lnkd.in/gy7Gzmjw). One of the many issues posed by this California regulation is its inconsistency with a uniform national standard for railroads otherwise provided in economic and safety regulations. National standards are integral in many transportation programs, including uniform standards for interstate highway design, uniform traffic control devices, and uniform interstate highway truck size and weight limits. Other parts of the Biden Administration have recently supported this goal of uniformity. The Solicitor General filed a brief in a case brought by the State of Ohio along with 28 other states to allow states to issue regulations restraining freight railroads to block highway-rail grade crossings (State of Ohio v. CSX Transportation Inc, No. 22-459). The Solicitor General wrote the following: "The cumulative effect of disparate state laws regulating blocked grade crossings could require interstate railroads to substantially modify their operations to comply with a patchwork of varying state and local grade-crossing requirements, thereby impeding the flow of interstate commerce." The Supreme Court failed to grant writ to Ohio, ending the appeal of lower court rulings. In the final rule regarding train crew size safety requirements in 49 CFR Part 218, the Federal Railroad Administration expressed this view: "Without this rule, railroads could be subjected to a different crew staffing law in every State in which they operate, as there would be no assurance that State laws governing crew size would be based on an analysis or determination concerning impacts on railroad safety. The lack of a uniform standard would likely result in additional costs and operational inefficiencies." We'll have to see how the US Environmental Protection Agency (EPA) rules on a CARB petition for a waiver to allow the rule on locomotive emissions to take effect on all railroad operations through the state. #airquality #emissions #railroads #regulation

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Headlines about layoffs rightly cause much concern and consternation in the trucking industry (e.g., https://lnkd.in/g9useTDD). However, it is critical to understand that this tells only half the story because a substantial percentage of trucking layoffs occur because a firm loses a key customer account. What that means is that the firm which won the business will often expand (which tends not to be reported). Below I wanted to document just how prevalent such reallocation of jobs is in trucking using population-level data from administrative records for all employer firms in truck transportation via the Business Dynamics Statistics (BDS) program. Data from https://lnkd.in/gVr6BbRW for all carriers. Thoughts: •The chart shows three series. The job creation rate is the jobs added by the subset of carriers that expanded or started operations in year t relative to t-1 divided by the average employment across all carriers in years t and t-1. Analogously, the job destruction rate is defined as the jobs lost due to carriers that downsized or exited in year t relative to t-1 divided by the average employment across all carriers in years t and t-1. The Net Rate of Job Change is the difference between the series and represents the percent change in employment for a given year. Data cover 1978 – 2021, with each data point representing change for that year relative to the prior year (e.g., 1978’s data point compares March 1978 data with March 1977 data). •What I want to emphasize: even when the net rate of job change is relatively low (e.g., 4.3% for March 2019 vs March 2018), this hides that there is a much higher rate of jobs being reallocated across carriers. For example, that 4.3% March 2019 figure hides a 14.9% job creation rate and a 10.6% job destruction rate. •Consequently, what economists call excessive job reallocation in 2019 was 21.2%, which represents the sum of job creation and destruction rates (14.9 + 10.6) less the absolute value of the net change in jobs (4.3), ergo 25.5 – 4.3 = 21.2. That is a lot of reshuffling of jobs across firms. Implication: Trucking jobs are reshuffled across carriers all the time. Focusing only on layoffs misses that firms which win new contracts are likely to expand. #supplychain #supplychainmanagement #freight #trucking #truckload #logistics #transportation

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🚛 Truckload Prices Set to Rise in 2025: What Shippers Need to Know 📈 As we celebrate National Truck Driver Appreciation Week, it's a good time to acknowledge not just the hard work of drivers but also the evolving economic landscape in freight. 🔍 Key Update: The breakeven truckload cost per mile is now $2.72—a 4.4% increase from 2023. While fuel prices have dipped, rising costs in driver wages, equipment, and maintenance continue to push overall prices higher. 💡 What This Means: Shippers should anticipate steady or increasing spot rates into 2025. Now is the time to revisit logistics strategies, optimize routes, and strengthen carrier relationships to stay competitive. Staying proactive today will help you manage costs tomorrow. #Trucking #Freight #Logistics #SupplyChain #Truckload

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🚨 Section 321 Updates: Prepare for New Rules The U.S. is tightening controls on Section 321 shipments. Proposed changes include: ● Exclusion of goods under Sections 201, 301, and 232 tariffs. ● Mandatory electronic Certificates of Compliance for consumer goods. ● Enhanced data reporting, including detailed HTS classifications and importer information. 💡 Tip: Review your compliance processes now to avoid delays or penalties. What’s your take on these updates? Let’s discuss below! #Section321 #TradeCompliance #ECommerce #GlobalTrade #CBP

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🗣️ Important Update for the Trucking Industry: NMFTA Listening Sessions! The National Motor Freight Traffic Association (NMFTA) is gearing up for significant changes to the National Motor Freight Classification (NMFC) code set to take effect in 2025. To ensure these updates meet industry needs, NMFTA is holding listening sessions to gather feedback from professionals across the field. Don’t miss this opportunity to make your voice heard in shaping the future of freight! Learn more about the upcoming changes and how you can participate! #TruckingIndustry #NMFTA #FreightNews #LogisticsUpdate #IndustryFeedback #ProfessionalInsights

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According to a recent CNBC article, written by Lori Ann LaRocco, cross-border truck transits between Mexico and the United States are at a historic high at a time when tariffs and trade policy are a focal point in the U.S. election. Peter Sand added that the growth in demand for containers shipping imports from China into Mexico in the first half of 2024 has further fuelled suspicions it has become a legal “back door” into the U.S. for trade tariff evasion. This builds on what logistics managers have told CNBC, namely, that "if Trump does win the election, they expect a rush of import orders ahead of his swearing in to mitigate any additional tariffs." And possibly, is a sign of a broader trend in supply chain management. Read more here: https://lnkd.in/gp8atcc8 #tariff #supplychain #USelections

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Journal of Commerce shared “Pricing out of South California favors intermodal rail” on Monday. Amid a small seasonal rise in spot truckload rates this summer, shippers are experiencing significant cost savings on long-haul freight using intermodal rail, particularly in Southern California. The benefits are evident as rail offers a more economical option for one-off shipments compared to earlier this year.   However, the surge in Asian imports into Southern California, in preparation to avoid East Coast port labor issues that may start after Sept 30, are resulting in increased transloading activity putting upward pressure on rail spot rates into September and potentially beyond. With recent disruptions, such as the explosion at Ningbo Port and ongoing congestion at major Asian ports, the full effects of this small surge to West Coast ports have been tempered.     The question remains—how will U.S. West Coast ports handle the anticipated rush once Asian ports clear up? These developments will be crucial in determining the future pricing dynamics for shippers relying on Southern California's intermodal routes.   Ningbo explosion closes port, adds to worsening Asian bottlenecks | Journal of Commerce (joc.com)

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DOTCSA Presents- Time for a Painful to Watch Comedy BRAKE! Concerning Medical Issues- Good time for DOT 101 on Driver Medical Cards. Tips from a Former USDOT FMCSA Investigator on getting DOT Smart about Driver's Medical Examiner's Certificates (MEC)> In my former FMCSA career, I fortunately observed the Launch of the National Registry of Medical Examiners, even helping my Director comment on Rulemaking as it developed. For a basic foundation, an MEC is NOT only for CDL Truck Drivers. Yes it "can or may" be for an Pickup Truck Towing a Trailer or a Cargo Van. Lesson #1- A Person (regardless of BEING HIRED as Driver or Employee) even JUST operating an F-250 pulling a trailer requires an MEC.... "IF" that Vehicle or Combination (Towing) meets the Definition of a Commercial Motor Vehicle (CMV) per 49 CFR 390.5. Find 390.5, if your CMV meets the Definition and no DOT exceptions or State Intrastate Exemptions apply, then an MEC is required. View 49 CFR 390.5 Definition of a CMV at- https://lnkd.in/gW92u6jb 2. Medical or Illicit Marijuana Use- There are ZERO Federal DOT Regulations that say you CANNOT use Marijuana...whether ILLEGALLY or Prescribed....> HOWEVER, it's the DOT's Medical Examiner's Certificate Regulations that prevent the ISSUANCE of an MEC per the Following Regulation- 49 CFR 391.41(b)(12)- "Does not use any drug or substance identified in 21 CFR 1308.11 Schedule I, an amphetamine, a narcotic, or other habit-forming drug;" View 49 CFR 391.41(b)(12)(i) at- https://lnkd.in/gXd9tyVz) Lesson #3- For Your CDL Drivers... My work with DOT Compliance Safety Association 100% recomends the following- NEVER ABANDON requiring your CDL Drivers to have a Paper Based Medical Examiner's Certificate on their person, even though its not technically required anymore per Regulations. I belive the FMCSA did a Phenomenal Job at bringing on the National Registry and it's amazing to see the program improve as time goes on. However- The Entire Task Nationwide is a Behemoth undertaking requiring many things to work together for a CDL Driver's MEC to be tied to their License and MVR Records. 1. Driver's may get things wrong, may not update their information, so administrative issues occur & DMVs may not have the necessary data to keep a Driver's MEC on their CDL, thus resulting in a CDL downgrade & DOT Inspection Violations. 2. State Driver's License Agencies (SDLA) may have their own administrative issues like backlogs or mistakes in processing, even differing IT infrastructure in communication has caused problems, thereby MEC data not being updated, resulting with CDL Drivers having Roadside DOT Inspection Violations for lack of an MEC or downgraded CDL. 3. Help Out DOT Inspectors- I've worked with many State DOT Inspectors who need to make split decisions when coming upon MEC Issues, they have a ton of discretion so a Paper MEC may help them decide on handling potential problems. They often understand things may happen beyond your control.

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https://lnkd.in/gQ7karQD Promoting Resilient Supply Chains Act of 2023 This bill requires the Industry and Analysis office of the International Trade Administration of the Department of Commerce to monitor and respond to disruptions in critical industries and supply chains. Specifically, the office must establish a supply chain resiliency program to (1) map, monitor, and model critical supply chains; (2) identify high-priority supply chain gaps and vulnerabilities in critical industries; (3) identify and evaluate the effect of potential supply chain disruptions on U.S. economic security; and (4) collaborate with other governmental bodies and key international partners to identify opportunities to reduce supply chain gaps and vulnerabilities. The office also must establish a unified coordination group to oversee the interagency response to supply chain shocks and the office must designate critical industries, critical supply chains, and critical goods. Additionally, the office must develop voluntary standards and best practices to reduce the risk of critical supply chain disruption. The bill includes various program evaluation and reporting requirements.

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Shippers ICYMI: On January 27, 2025, UPS will change the definition of the 40 lb minimum overlength penalty. Although UPS announced this change on October 21st, details regarding the dimensional calculations have yet to surface. For many shippers, if you are not getting hit with this cost today, it will be difficult to identify the impact this will have on your business based on the way UPS passes over information. Typically, UPS will only pass over information on length, width and height if it triggers a cost event.   FedEx typically provides this information 90% of the time, even if it doesn't trigger a cost event. With UPS it isn't as clear.   If you don't have a technology provider or a BI partner who can easily access this data, please make sure you are looking into the new rules around this change, so you don't get hit with penalties in January.

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