PUTTING THE CART BEFORE THE HORSE

Northern California has a long road ahead to recover from the devastating fires that hit Napa, Sonoma and Lake counties.  It is has been a disastrous fall for many around the country and our thoughts are with you all.

 

It is time for an uplifting story.  Lauren Mesaros was fleeing the fires but had a dilemma.  She had a horse trailer for two and a car but three horses.  Her solution? Put the pony, Stardust, in the car.  

 

Logistics at work, even in the face of adversity.

RICE FIELDS ARE FOR THE BIRDS

Northern California’s rice fields not only produce world-class rice, they are home to millions of birds and other wildlife.

 

Click on the photo above for a short video of just a sampling of what the fields house.

FROM THE DRIVER’S SEAT

ELD’S SHRINK CAPACITY, EXACERBATE DRIVER SHORTAGE AND INCREASE RATES

We have covered the disrupting effects of electronic logging devices (ELD’s) in our newsletter over the past few months.  The requirement will decrease capacity in an already tight market, which is resulting in price hikes.  Rather than have us rehash the issue, read below just a few of the recent headlines on the subject:

Conditions for shippers worsen as rates rise, capacity shrinks
FreightWaves, October 31, 2017

Under pressure, US transport rates keep rising
JOC, October 27, 2017

America’s shortage of truck drivers could affect prices and cause delivery delays
CBS News, October 26,  2017

Shippers ready to “bear the brunt” of higher trucking rates as ELD implementation set to begin Dec
Logistics Management, October 23, 2017

Driver shortage could hit all time high this year
Truckinginfo, October 22, 2017

Freight rates poised for big surge
American Trucker, October 18, 2017

Truckload carriers pitch to hike rates driven by ELDs, driver pay, hot market
Transport Topics, October 16, 2017

NAME THAT PART

Do you know what this part is? It is something used in truck or container transportation.

 

Play “Name That Part” by liking us on Facebook.  Click here to be directed to our Facebook page and place your guess.

 

Good luck!  

FROM NORTHERN NEVADA

WILD HORSES COULDN’T DRAG US AWAY

Wild horses are common place in Northern Nevada, especially out in the industrial area of the Tahoe-Reno Industry Center (TRIC).

Paul Enos, CEO Nevada Trucking Association, recently captured them in suburban South Reno.  Click on the picture above for a short video.

FROM NORTHERN NEVADA

USA PARKWAY EXTENSION OPENS

Reno/Sparks is growing!  New businesses, new warehouses, new technologies, and new people are flooding into the area.  The Tahoe Reno Industrial Center (TRIC), about 15 miles east of Reno, is home to quite a bit of this new growth.

To support their prosperity, the State of Nevada fast-tracked a road construction project extending TRIC’s USA Parkway from I-80 through to Highway 50.  This important link connects people to additional job and housing opportunities.

Well done Nevada!  Watch the video clip above to put an exclamation point on the importance of this roadway.

CALL ON WASHINGTON

Bennie Gamble, VP Nevada, pictured back row, second from left.

Devine is active in our communities, in our states and at the national level. Recently, as part of a delegation representing Nevada, Bennie Gamble (VP, Nevada) made a call on lawmakers in Washington DC.

We are doing everything we can to instill the importance of logistics to our legislators.

THE DEFINITION OF HUBRIS

Hubris [hyoo-bris], noun, excessive pride or self-confidence, arrogance, see southern California ports.  (Okay, we added that last part.)

Last month, we highlighted the ports of Los Angeles and Long Beach Clean Air Action Plan (CAAP) requiring zero-emission trucks and terminal equipment, but it warrants further discussion.

The cost of this program is wildly underestimated by the ports.  They are betting on equipment that is yet to be tested and viable.  They are also betting the cargo owners so love a Southern California Gateway they are willing to absorb the lion’s share of the burden.

Weigh that thinking with the fact that just last week, the Panama Canal celebrated its 2,000th neopanamax crossing since the opening of the new, larger locks just 15 months ago.

Wake up California!  Cargo, like water, will find the course of least resistance.

FROM THE DRIVER’S SEAT

ELD’S BRING SIZABLE RATE INCREASES

Electronic Logging Devices (ELD) will be mandatory on December 18, 2017, and there is no doubt this change will impact your supply chain.  The use of ELD’s will constrict truck capacity and lead to rate increases. It is estimated truck rates will increase by 10% or more.

No matter the mode…full truckload, LTL, drayage…all commercial truck drivers are allowed to be on-duty for a total of 14 hours in a day, with maximum drive time of 11 hours in a day.  Should the driver get hung up in traffic, at a marine terminal, at a loading or unloading location, or anywhere else on his journey and not be able to complete the delivery within the allowable hours of service (HOS), he will have to pull over and rest for 10 hours.  Yes, even if he is minutes away from his destination.  It is a hard, inflexible stop.  No exceptions.

There was a last ditch effort by some in the trucking community to delay the implementation of the ELD mandate.  However, the appeal fell on deaf ears with our federal legislators.
While Devine invests heavily in our safety program and closely monitors drivers’ HOS to ensure compliance, it is estimated 30% of the nation’s drivers apply “flexibility” with their paper logs.  As a result, it could take longer to move your cargo, and, as an industry, it will take more drivers to move the same amount cargo.

The ever-present driver shortage is going to make it even more complicated.

Be prepared!  Start a dialogue with your provider now.

ILWU ORGANIZING EFFORTS

The International Longshore & Warehouse Union (ILWU) has been focusing on organizing the superintendent role at marine terminals. This position has traditionally been a management function, but the union has been successful in bringing those responsibilities under their umbrella at two terminals in Southern California, APL’s Global Gateway South and Pasha Stevedoring. Additionally, the ILWU is in negotiations at two other terminals, ITS and Everport.  

As contract negotiations bogged down for the work at APL’s terminal, the ILWU established picket lines and shut down operations.  The terminal was closed from last Thursday until Saturday morning when an agreement was reached.

Please be prepared for vessel delays coast-wide as this terminal works through the backlogged created by the closure.

NAME THAT PART

Do you know what this part is? It is something used in truck or container transportation.

 

Play “Name That Part” by liking us on Facebook.  Click here to be directed to our Facebook page and place your guess.

 

Good luck!