August Transportation News Update

Every month, we’ll be sharing some of the top stories in logistics and transportation right here on our blog. Here’s a look at some of the top industry stories making headlines in August.

1. Phased-In Approach to ELD Mandate Announced

The Commercial Vehicle Safety Alliance (CVSA) is holding firm to the December 2017 roll-out for ELD but says they will delay the implementation of out-of-service criteria for ELDs until April 1, 2018.

On Aug. 28, the CVSA announced roadside enforcement personnel will begin documenting violations on inspection reports beginning Dec. 18. Drivers without a compliant ELD will be issued a citation, at the jurisdiction’s discretion.

Beginning April 1, 2018, inspectors will begin placing vehicles out of service if they are not compliant with the ELD mandate.

The CVSA says delaying the out-of-service portion of the mandate will give the industry and inspectors the chance to adjust to the new requirement. Read more about the latest on the ELD mandate, here.

2. CVSA Releases Results from Roadcheck 2017

The CVSA says violations for brake systems, cargo securement, and tire/wheels were the top reasons vehicles were placed out of service during this year’s Roadcheck inspection blitz.

Overall in the United States and Canada, 62,013 vehicle safety inspections were conducted. Of those inspections held June 6 to 8, 23 percent of vehicles and 4.2 percent of drivers who were given Level I inspections were placed out of service.

Read more about the results here.

3. Revenue and Income for Major Carriers Continues to Slip

Some of the United States’ largest carriers have reported slipping revenue and profits for the first half of 2017 compared to the first half of 2016.

Carriers reported spending more on hiring owner-operators or smaller carriers to move shipments.

To read more about some of the carrier’s reported earnings for the first half of 2017, click here.

4. EPA Intends to Re-evaluate Tractor-Trailer Emissions Regulations

In a brief announcement Aug. 23, the Environmental Protection Agency said it will “revisit” the Phase 2 emissions standards enacted by the Obama Administration.

Phase 2 was finalized last year. It required truck, engine and trailer manufacturers to make major changed to fuel economy in order to cut emissions of greenhouse gases.

The agency said they will revisit the portions of the rule geared toward trailer and glider provisions to implement a rulemaking process.

To read more on their proposed changes, click here.

5.Look out Amazon, Iceland’s AHA is Delivering with Drones

Drone company Flytrex is working with Iceland’s largest online marketplace AHA to launch an urban drone delivery service. Flytrex and AHA have received approval to use their drones to deliver food and products from stores and restaurants to an empty field drop off location.

There is still some manual work that needs to be done. A person will meet the drone, and either walk or drive the goods to the final destination within a neighborhood.

Amazon is well known for the development of a drone-based delivery service that could deliver packages right to customers’ doorsteps. This idea is still in the works and it could be years before it becomes a reality.

Read more about Flytrex’s high tech delivery service here.

6. Largest Capacity vessel to visit Panama Canal to Date

The 365.9 meter-long CMA CGM Theodore Roosevelt containership set a record as the largest capacity vessel to ever travel the Panama Canal. The ship departed from Asia and will be making stops along the U.S. East Coast.

The vessel has a Total TEU Allowance of 14,855. To help paint the picture of the size of the Theodore Roosevelt, its length is the equivalent of laying two Great Pyramids of Giza, four Big Bens, or eight Statues of Liberty end to end.

To read more about this historic voyage and what it means for the Panama Canal, read here.

7. Ford’s Self-Driving Vehicle Goal Expands to Include Commercial Delivery Services

New Ford CEO Jim Hackett is including autonomous commercial delivery services in the carmaker’s plan to roll out a self-driving vehicle by the year 2021.

Ford’s Vice President for autonomous and electric vehicles told Forbes the company is planning to create both commercial operation and ride-hauling services.

Find out more about Ford’s 2021 plan here.

8. More Kmart Stores to Close Amongst Fierce E-Commerce Competition

Sears announced it will close 28 more Kmart stores after another bleak earnings report. The company reported losing $251 million in its second quarter.

Sears previously announced that another 150 stores will close by the third quarter. These latest announcements combined with previous closures will bring the total number of Sears and Kmart stores closed this year to more than 250.

The company is facing fierce competition from Amazon and Walmart, both major giants in the e-commerce world. Macy’s, Kohl’s, JCPenney, and other department stores are feeling the same impacts.

Read more about the store closures here.

Thank you for reading our August News Update!

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