Commerce Express Weekly Road Map:
November 8th, 2022
Keeping you informed on the latest news/insights in our industry.
Commerce Express Blog
The standard classification formula for LTL pricing has been around since the mid-1930s. Lou Gehrig was the face of the New York Yankees, Jesse Owens won four gold medals at the Berlin Olympics, and a planned Martian invasion was foiled thanks to Orson Welles’ PSA broadcast of The War of the Worlds.
Trucking Update
The Rhode Island DOT Plans to Appeal the Judge’s Ruling Regarding the Truck Tolling Case
The RIDOT filed their notice on October 19th and the appellate court set December 19th as the date for the RIDOT to file its initial appellant’s brief.
A month ago, a Rhode Island federal judge ruled in favor of a legal challenge by the American Trucking Associations (ATA) and two motor carriers, regarding the state’s tolling plan, Rhode Works.
Hours after the ruling, the toll charge was shut down. You can read more about this plan, here.
The legal battle over this tolling program started four years ago, the Rhode Island starting to collect tolls in mid-2018.
Truck Transportation Jobs See a Rise in October, after a significant decrease in September
The Bureau of Labor Statistics shows 13,200 jobs were added in October, bringing the total trucking employment level in October, to 1.614 million jobs.
This surpasses the previous all-time peak in August by about 2,000 jobs – the Journal of Commerce reports.
Typically, any loss or gain in employment throughout these months is much smaller, showing that the large drop in employment through September and October were not the norm.
Class 8 Orders in North America for the Month of October Soared past October 2021 Volumes
Preliminary orders were at 42,500 in October, compared with net orders of 23,391 in October 2021 – Transport Topics reports. These numbers show that truck makers are feeling more comfortable with pricing and parts and component availability.
Truck makers are now filling build slots well into Q2 and into the beginning of Q3 2023, as October looks to have been a turning point for the Class 8 market.
Did You Know?
A Cyberattack in Late October Disrupts Mexico's Transportation Systems
Until December 31st, Mexico’s transportation ministry has stopped issuing new permits, license plates and driver’s licenses for commercial truck operators because of that cyberattack.
As of now, it has not been reported on what information or data was targeted by that the software attack did not damage the agency’s systems or cause any damage or compromise the personal data of their citizens.
Something to keep an eye on is whether this delay of new permits and licenses will hurt the country’s domestic supply chain or any cross-border trade with the U.S.
Rail Update
Another Rail Union Has Agreed to Ratify the Labor Agreement
The International Association of Machinists (IAM) is the seventh of twelve unions to ratify the labor agreement.
Three unions still have yet to complete the membership ratification process, while two of the twelve unions voted to reject the labor agreement.
One of the two unions who rejected the agreement, BMWED, said they would not strike before November 19th. While the other union, BRS, has set a possible strike date of December 4th.
Agricultural Shippers are Pressing Congress to get Involved if the Potential for a Rail Strike gets Closer
In a letter sent to majority and minority leaders of the U.S. House and Senate, the National Grain and Feed Association, plus over 190 other members of the Agricultural Transportation Working Group, want swift action taken in the event of a rail strike or lockout, Freightwaves details.
Those groups continued to urge Congress that if a potential strike or lockout were to occur, because of the already existing challenges in the rail system, at the ports and trucking, as well as the record low water levels on the Mississippi River, it would have a dire impact on the agricultural and broader U.S. economies.
Total U.S. Weekly Rail Traffic for the Week Ending October 29, 2022
Carloads and Intermodal units for the week ending on October 29th, were at 514,457 – which is up 0.8 percent compared to the same time last year.
Coal, non-metallic minerals, and motor vehicles and parts all posted increases compared to the same time last year.
Chemicals, metallic ores and metals, and forest products all posted decreases compared to the same time last year.
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