US FMCSA Proposes Changes to Hours-of-Service Rule
The US Federal Motor Carrier Safety Administration (FMCSA) announced yesterday in a press release that it is proposing several changes to the hours-of-service rule. The intent is to allow more flexibility for drivers getting more rest and finding parking while maintaining appropriate regulation for driver and public safety. In 2018, FMCSA put out a public notice inviting comment regarding this rule and received more than 5,200 comments. The current proposal offers five key revisions involving the 30 minute break rule, the sleeper-berth exception, the adverse driving conditions exception and the short haul exception.
Continued Union Strike Impacts French Ports with Blockades
Public sector strikes in France have been active since early December. The government’s recently planned pension plan was unacceptable to trade unions resulting in a French national port union calling for strike actions leading to the blockade of major ports. There have been industry reports, including AGS, advising to expect shipping delays over the coming days and weeks ahead...
Brexit Aborted UK Exit Date Causes Dramatic Volume Drop
Lloyd’s Loading List reported earlier this month that “One of Europe’s leading full truckload (FTL) operators, Waberer’s International, posted a decline in both revenue and earnings in the second quarter of the year, largely due to lower volumes in the aftermath of the UK’s aborted 29 March Brexit date.” The operator reported turnover down 6.4% even though regional contract logistics is up 7%. While several industry issues were involved, the Brexit abort event caused a dramatic drop in demand for inbound services to the UK which is being termed as “Demand Shock”. The new Brexit date is 31 October.
Santa Fe Announces Divestment of Relocation Business
Santa Fe Group is reporting today on their website that it has “divested its subsidiary Santa Fe Group Limited, which holds the group’s relocation activities, to Santa Fe Intressenter AB, a company controlled by Lazarus Equity Partners with support from Proventus Capital Partners.” The subsidiary handles the location business activities for the group.
Realogy Announces Sale of its Global Cartus Relocation Business to SIRVA
Realogy Holdings Corp. announced today that it has reached an agreement to sell its global Cartus Relocation Business to SIRVA Worldwide, Inc. The sale is projected to be completed in the first half of 2020 and to be valued at $400 million with terms including Realogy to receive “$375 million in cash at closing, subject to certain adjustments, and a $25 million deferred payment.” See Realogy full press release by clicking the link below.
Parsifal Launches New Website
Parsifal Corporation, the leading industry Household Goods audit and procurement technology firm, has announced the launch of its new and updated website today. Parsifal presents a full range of new and existing relocation support services and software products, such as its mainstay auditing program, business process solutions and innovative relocation procurement technologies (RPTs).
Continued Union Strike Impacts French Ports with Blockades
Public sector strikes in France have been active since early December. The government’s recently planned pension plan was unacceptable to trade unions resulting in a French national port union calling for strike actions leading to the blockade of major ports. There have been industry reports, including AGS, advising to expect shipping delays over the coming days and weeks ahead...
Coronavirus Impacting Business in China
We are hearing reports that the Coronavirus is impacting shipments in parts of China. As business operations in many cities in China are returning to work after the Chinese New Year holiday on Monday 3rd February, several cities are now required to delay until at least the 10th of February. A news release by at least one Asian removal supplier indicates they are fully suspending operations in Wuhan...
Coronavirus Impacting US Ports and Shipping
CNBC reported late yesterday (Tuesday) that according to Gene Seroka, executive director of the Port of Los Angeles, the port has already experienced a 25% decline in February shipments with Q1 also trending a 15% decrease in volume. Mr. Seroka goes on to compare the economic impact of the coronavirus to the SARS outbreak in 2003 and the differences involved.
At the end of last week, American Shipper reported that the downturn in US container imports over the past few months through January 2020 was primarily due to the China Tariffs. But now the coronavirus offers new and ongoing impact.
ATA Provides Testimony in Washington on Major Trucking Issues
The U.S. Senate Commerce Subcommittee on Transportation and Safety heard testimony this week from American Trucking Associations (ATA) president, Chris Spear as he expressed priorities and important steps for increasing highway safety and job opportunities, as well as fixing infrastructure in the US. Mr. Spear pointed to general speeding and texting as a major cause for large truck crashes rather than truck driver-related factors. Learn more about his support for the bipartisan DRIVE-Safe Act and the billions of dollars of cost to trucking and other drivers due to aging infrastructure in need of revitalization at...
Trade NOT Impacted By 30-Day Travel Ban to U.S.
There has been confusion as to whether the 30-day ban on travel from Europe to the U.S. also applies to cargo. It was clarified by a Trump tweet, and also by the Department of Homeland Security, that the travel ban does NOT apply to trade (cargo) or to legal permanent U.S. residents. Learn more about the ban and the major, additional impact on the airlines in today’s report by FreightWaves.
Mixed Bag of Good and Bad News for Shipping
It was reported Wednesday by American Shipper that the Asia to U.S. transport cost for containers has increased by double digits so far this year as compared to same period in 2019. At the same time, however, it was explained that this rate momentum would not continue going forward. {more}
Transport Topics also reported earlier this week that truck tonnage in the U.S. increased by 2.6% in February compared to 2019 year-over-year. In addition, the For-Hire Truck Tonnage Index provided by the ATA rose 1.8% in February over the previous month of January. Learn how ATA Chief Economist Bob Costello explains these numbers and additional outlook.
Price of Diesel Continues to Drop
As the primary fuel for trucking, diesel pricing continued to drop another 7.3 cents yesterday according to Transport Topics News as reported by the U.S. Department of Energy. As expected, the trend of excess global production and falling demand also continues along with a drop in oil by 15%. TTNews explains that diesel prices dropped across all regions (lowest in the Gulf Coast) along with providing current average prices per gallon for fuels and more discussion on current global causes.
Arpin Van Lines Aquired by Wheaton Group
The Indianapolis-based Wheaton Group has announced the acquisition of Arpin Van Lines this week, as Arpin now joins a group of five relocation brands along with Wheaton World Wide Moving, Bekins Van Lines, Stevens Worldwide Van Lines (acquired in February 2019) and Clark & Reid. Inside Indiana Business reported on Monday that this acquisition deal does NOT include Arpin International Group and other Arpin divisions.
Repurposing Passenger Jets for Cargo
Airlines have been repurposing passenger jets over the past few weeks in the wake of the COVID-19 negative impact on passenger travel. American Shipper reports that United airlines has recently operated nearly 300 cargo-only flights between Europe and the U.S. Lufthansa is planning to remove passenger seats on some of their jets to allow more space for cargo, adding 25 cargo-only flights this week, along with 35 more weekly flights next week together with Austrian Airlines to service Europe and Asia. Read more about how other airlines are following this trend in order to deal with the major impact of dramatic losses due to declining passenger revenues.
HMM Naming World's Largest Container Vessel
HMM (rebranded from Hyundai Merchant Marine) held a naming ceremony on Thursday for its first and world’s largest 24,000 twenty-foot equivalent units (TEU) container ship, the ‘HMM Algeciras’. The vessel is longer than the combined length of four football fields. A total of twelve vessels of this class size are scheduled for delivery by September 2020 from DSME and SHI (Samsung Heavy Industries). HMM is planning to augment environmental capabilities with these vessels as they are basically equipped with a scrubber system (per IMO 2020 environmental regulation), as well as improved hull design and highly-efficient engines for energy efficiency and reduced carbon emissions.
US DOD Announces Global Contract Award
DOD awarded a $7.2 billion, multiyear global Household Good contract to American Roll-On Roll-Off Carrier Group (Team ARC) consisting of ARC, UniGroup, Suddath, Atlas World Group, and The Pasha Group. Industry sources indicate that if no delays, the contract is scheduled to begin in May 2020 with an initial nine month transition period and a three-year introductory period with a potential to run through 2028. UPI explains that this agreement displays a new DOD strategy moving away from working with numerous government-managed shipping offices in concert with subcontracting local moving companies to now coordinating relocation efforts with one primary group vendor.
Cancellation Trend Offers Future Demand Indicator
Cancelled sailings by shippers into U.S. ports are at a high in May and June at 19% and 18% as reported yesterday in FreightWaves. However, if the current July schedule holds for a lower 10% “blanking” (canceling) on sailings, this could be a “positive signal on demand” going forward in the third quarter and beyond. Information about July cancellations will become apparent very soon as the notices for blank sailings into U.S. ports for early July will be coming in by the first part of June.
US Ports and Trucking Negatively Impacted in April
It was reported today by the America Trucking Associations (ATA) that compared to 2019, the truck tonnage for April decreased by 12.2%. While a substantial decline was expected, this was the largest monthly decrease since 1994, 26 years ago. Read More
Transport Topics also reported that the ports in the US show continuing declines for 20 foot-equivalent container (TEU) volumes with some well in the double digits. The report offers examples of port monthly year-over-year volume decreases including the Port of Oakland at a 6.5% drop and the Port of Long Beach at a 17.2% decline.