Author Archives - Zachary Deck

Unraveling TQL’s Overdue Overtime: Exploring Updates & Industry Impacts

The ever-evolving logistics and trucking industry occasionally confronts unexpected turns. Today, we turn the spotlight on a recent courtroom revelation involving Total Quality Logistics (TQL), a leading U.S. freight brokerage. This ruling sheds light on longstanding missteps, possible ripple effects throughout the sector, and the delicate interplay of employee rights with corporate interests. For industry professionals, this article unveils vital facets of the legal and ethical realm of logistics. A Verdict is Reached In a landmark decision, a federal judge has ruled that TQL, one of the largest freight brokerages in the U.S., failed to provide overtime pay to thousands of its former employees, thereby breaching federal laws. Judge Michael Barrett delivered this verdict on Sept. 26, highlighting that not only does TQL owe back pay to these employees, but they’re also liable to pay an additional amount equivalent to the original damages. Root of the Problem The case’s roots date back to September 2008 through April 2016, over 4,500 logistics account executive trainees and their senior counterparts worked with TQL. Alarmingly, transitioning from a salaried to a commission-based pay, these trainees often clocked in over 60 hours weekly, with a mere 5% making the successful transition. Top Brass Under the Scanner While the company is in the limelight, Ken Oaks, TQL’s chief executive and co-founder, hasn’t escaped scrutiny. He has been personally deemed liable for this oversight. Oaks had previously defended the company’s decision to classify LAETs and junior LAEs as salaried, citing advice from the Transportation Intermediaries Association (TIA). However, the association’s stance is one of disappointment, hinting that such decisions could hinder hiring and innovation. The Legal Tussle The complexities of this lawsuit are far-reaching, with implications not just for TQL but potentially other brokerages too. Matthew Leffler, an industry observer, hinted that this ruling might prompt a significant shift in the brokerage business model. TQL had justified its actions by arguing the administrative nature of LAETs and junior LAEs tasks. Yet, the court didn’t find this argument convincing, indicating that their primary responsibilities weren’t directly related to TQL’s management or general business operations. Impending Repercussions TQL, an industry giant with revenues hovering around $8.8 billion in 2022, now faces a murky road ahead. Ken Oaks, once celebrated as Cincinnati’s richest person, may also see his net worth, previously estimated at $980 million by Forbes, simultaneously impacted. As legal procedures progress, the anticipated discussions regarding damages, attorney fees, and other associated costs are sure to follow. The Long Road Ahead Despite the verdict, many elements of this case remain unresolved. It’s already been 13 long years since the initiation of this lawsuit, and there’s no clear end in sight. Bruce H. Meizlish, the leading attorney against TQL, expressed sympathy for the affected employees, pointing out that for many, this experience with TQL was their inaugural venture into the employment world, and the memories aren’t particularly pleasant. Before You Go… As always, we value the insights and perspectives of our community of commercial drivers, logistics personnel, and industry professionals. Please share your thoughts on this critical development in the comments section below. How do you perceive this ruling’s broader implications? And don’t forget to check back Friday for Optimum Logistic’s weekly news recap to stay updated and engaged. Your input drives the conversation forward. Safe journeys to all! If you made it to this part of the article, we’d just like to take a moment to thank you for taking the time to read this weekly recap. Be safe out there and as always, If you’re in search of CDL A, B, or warehouse positions, check out our open positions. And if you need staffing solutions for commercial driving or industrial positions, be sure to explore our offerings.

Autonomous Alliances, Gender Hurdles & Union Issues: This Week in Trucking

In the ever and rapidly evolving logistics landscape, emerging technologies and pressing industry challenges are shaping the future of trucking and transportation. As drivers, logistics professionals, and all other impacted industry personnel navigate these shifts, it’s essential to stay informed of the latest happenings. From groundbreaking alliances leveraging autonomous technologies to pressing social issues around gender and labor relations, the following is a quick and curated summary of some of the biggest headlines shaping the trucking world this week. Maersk and Kodiak’s Autonomous Alliance Maersk, a renowned global logistics titan, in collaboration with Kodiak Robotics, has recently embarked on a groundbreaking initiative: introducing a commercial autonomous trucking lane connecting Houston and Oklahoma City. Since August, the collaborative venture has utilized autonomous trucks that boast 53-foot trailers, with a designated safety driver poised at the helm. Impressively, these state-of-the-art vehicles operate ceaselessly, four days a week, covering both day and night, ensuring the timely transportation of consumer goods between pivotal facilities in Houston and distribution hubs in Oklahoma City. Revolutionizing Logistics with AI Trucks The inception of this collaboration stems from November when Maersk and Kodiak spearheaded their inaugural autonomous freight deliveries, aligning with Maersk’s Global Innovation Center Program. The overarching vision of this partnership is to seamlessly embed autonomous technology into the intricacies of the supply chain, fostering improved efficiency, safety, and overall performance in the logistics domain. Autonomous trucking, as the press release reveals, stands as a beacon of hope for the trucking industry, which currently grapples with a staggering driver deficit, anticipated to escalate drastically within the forthcoming decade. Moreover, the automation of trucking seeks to mitigate the overwhelming 94% of trucking mishaps attributed to human oversight. Kodiak’s autonomous trucks are not just sophisticated but also hyper-vigilant, equipped with 18 sensors and perpetually assessing over 1,000 safety-centric processes. With an ambitious gaze set on the horizon, both Maersk and Kodiak remain committed to delving into more innovative collaborations within Maersk’s rapidly burgeoning North American logistics nexus. 🔗 Read the full article on Maersk and Kodiak’s autonomous trucking venture here Hitting the Brakes: Trucking’s Gender Roadblock For years, the trucking sector has seen headlines regarding the driver shortage. However, many women assert that trucking companies have erected barriers that keep them from these driving roles. There’s an industry-wide practice that requires all female candidates be trained specifically by other women. The practice continues despite a 2014 federal court ruling that deemed same-sex training requirements unlawful. Ashli Streeter from Texas, after investing $7,000 in truck driving education, faced this particular roadblock when she was rejected by multiple carriers, including Stevens Transport, due to their lack of female trainers. Legal Speed Bumps and the Road Ahead In response to the same-sex training policy, Streeter, along with two other women, have gone forth and lodged an official complaint against Stevens Transport with the Equal Employment Opportunity Commission. Critics of these rules argue that while there is merit in the industry’s focus on preventing potential sexual harassment issues during mixed-gender training, it does so at the cost of equal employment opportunities for women. With women accounting for only 4.8% of the US trucking workforce, leaving a greatly untapped market, especially with trucking making headline offering competitive salaries that appeal to many women. The ongoing debate suggests a need for more inclusive training policies, coupled with effective harassment prevention measures. The broader question remains: How can the trucking industry evolve to be both safe and equitable for all aspiring drivers? 🔗 Dive deeper into the challenges faced by women in the trucking industry here Yellow Freight’s Downfall and the Union Impact In a shocking turn for the trucking industry, Nashville-based Yellow Freight, one of the largest trucking companies in the US, declared bankruptcy and ceased operations. This decision rendered over 30,000 individuals unemployed. Unlike most trucking firms, a significant portion of these job positions were unionized. Tracy Cullen, a long-time driver for Yellow, shared that tensions had escalated with the Teamsters union in the run-up to the company’s collapse. Lapses in health benefit payments and looming strike threats marked the final days. While the company was able to momentarily assuage the situation by paying up, it soon after announced its shutdown, attributing the Teamsters union as the root cause of its problems. Job Struggles in a Right-to-Work State Following Yellow’s closure, thousands of truck drivers, like Cullen, find themselves navigating the challenging job market. In states like Tennessee, which is among the 28 states with right-to-work laws, finding a union job can be especially daunting. These laws can dilute the power of unions, potentially hindering collective bargaining efforts. While the current trucking job landscape should theoretically favor drivers due to the prevalent driver shortage, ex-Yellow employees face unexpected hurdles. Some believe there’s an underlying hesitancy among companies to hire former union-affiliated drivers. Chris Dowdy, another former Yellow driver, recounts being blatantly denied opportunities because of his prior affiliation with Yellow. Though he eventually found a position with Kroger, many of his peers continue their job hunt. 🔗 Discover more about the challenges faced by former Yellow Freight drivers here Before You Hit The Road… The recent developments in the logistics and trucking sector emphasize the importance of adaptability, inclusiveness, and innovation. Whether it’s embracing autonomous trucking to bridge the gap of driver shortages or addressing gender disparities and labor relations in the industry, the path forward requires collaboration and forward-thinking. As always, we invite our valued readers to share your thoughts and insights in the comments section below. What implications do these news stories have for the future of trucking? How can the industry tackle these challenges head-on? Your insights are invaluable. And don’t forget to join us next week for another edition of Optimum Logistic’s weekly news recap, where we aim to keep you updated with the pulse of the industry. Safe travels and stay informed! If you made it to this part of the article, we’d just like to take a moment to thank you for taking the time to read…

Lapses in Logistics: India’s Data Breach & Its Broader Implications

In today’s digital age, with the logistics and trucking industry increasingly reliant on tech-driven solutions, the security of online portals becomes paramount. When such systems falter, the ripple effect is felt across commercial drivers, logistics personnel, and the broader industrial staff. The major data breach in India’s state-owned logistics portal has stirred concerns. This breach, involving sensitive personal data and crucial trade records, sheds light on the vulnerabilities even the most renowned platforms can possess. Discover the chain of events, from the initial discovery of the breach to the subsequent actions taken. Data Breach Alert The data leak arose out of India’s renowned state-owned logistics portal. Facing a major hiccup, they unwittingly exposed sensitive personal data and crucial trade records. Known as the National Logistics Portal-Marine, this portal fell victim to something seemingly mundane, misconfigured Amazon S3 buckets. This seemingly minor slip up paved the way for quite an exposure. As if that wasn’t enough, one particular JavaScript file on the website even housed login credentials, nestled right there in the public web source code. Spotlight on Vulnerabilities Bob Diachenko, a vigilant security researcher, uncovered these glaring issues utilizing the open-source security tool, TruffleHog. TechCrunch received insights from Diachenko, revealing that the available data compromised personal details like names, passport information, and DOBs. It wasn’t just personal data; the breach also revealed invoices, shipping orders, and other sensitive logistical data. Prompt Response Upon discovering this glaring oversight, Diachenko wasted no time. He swiftly shared a redacted screenshot of the exposed file on X (previously known as Twitter). This act caught the attention of the Indian Computer Emergency Response Team (CERT-In) and AWS’s security arm. After being alerted, CERT-In was quick to confirm that the vulnerability had been promptly patched. Silence from the Top Interestingly, while the data breach garnered significant attention, those at the helm have remained tight-lipped. Neither the ports, shipping and waterways ministry nor Portall – the company overseeing the portal and a subsidiary of India’s JM Baxi conglomerate – have issued a response prior to the news going public. Portal’s Noble Intent The National Logistics Portal-Marine, inaugurated earlier this year, aspires to be the go-to “single window” for all logistics operations. From waterways and airways to roadways, it aims to streamline logistics trade processes. An added feature is its online marketplace, providing holistic logistic services. A Privacy Paradox This incident shines a light on the digital vulnerabilities even as India, a global internet behemoth, recently introduced its much-awaited privacy law, the Digital Personal Data Protection Act, 2023. While this act provides a framework for private companies handling personal data, the government stands exempt. It’s a stark reminder of the need for stringent cybersecurity measures across the board. Before You Go… As the world grows more connected, and as India, along with other nations, pushes for a more digitized logistics sector, the responsibility is on every stakeholder to ensure iron-clad security. This incident serves as a reminder of the delicate balance between innovation and safeguarding data. It emphasizes the importance of constant vigilance and proactive measures to counter such threats. As always, we urge you to share your thoughts, what measures do you see that could be implemented to prevent such occurrences in the future? We encourage you to voice your opinions in the comments section below. And remember, for in-depth analysis and the latest industry news. Stay safe and informed! If you made it to this part of the article, we’d just like to take a moment to thank you for taking the time to read this weekly recap. Be safe out there and as always, If you’re in search of CDL A, B, or warehouse positions, check out our open positions. And if you need staffing solutions for commercial driving or industrial positions, be sure to explore our offerings.

Daimler’s Hydrogen Feat, Tesla’s Electrifying Streak & Pioneering Women: Weekly Trucking Roundup

In the fast-paced world of transportation, shifts in technology, policy, and industry dynamics never cease. Whether it’s the pioneering leap of hydrogen-powered trucks, the electrifying performances of battery-driven semis, or the ever-growing role of women in the trucking sphere, the wheels of progress are always turning. Dive with us into this week’s most riveting updates and get a pulse on where the road of transportation is headed. Daimler’s Hydrogen Leap: Paving Zero-Emission Paths In the pursuit of a sustainable long-haul trucking future, Daimler Truck takes a significant leap with its hydrogen-powered Mercedes-Benz GenH2 truck. This groundbreaking vehicle accomplished a remarkable 1,047-kilometer journey on a single tank of liquid hydrogen, leaving behind only water vapor as an emission. The truck kicked off near the French-German border and triumphantly reached Berlin by Tuesday morning. Hydrogen vs Diesel A Potential Shift Despite the technical and infrastructural challenges hydrogen power confronts, German industry titans like Daimler Truck and Bosch are optimistic about its potential to redefine road transport emissions — possibly even outperforming battery-electric vehicles. Especially for strenuous long-haul routes, a synergistic approach employing hydrogen fuel cells might be the key. Funding the Green Dream The “hydrogen revolution” hinges on green electricity—primarily derived from renewables. To bolster this endeavor, Daimler Truck collaborates with energy behemoths like Shell and Total, aiming to pepper Europe and the US with hydrogen refueling hubs. As costs come down, these hydrogen-powered giants might soon rival battery electric trucks in the price arena. 🔗 Decarbonizing transport – Dive Deeper Tesla Semi’s Electrifying Performance: Setting the Electric Pace Tesla’s Semi took center stage at the “Run on Less EV” trucking event, an intensive three-week exploration into electric trucks’ capabilities. Clocking 1,000 miles in just a day with over 90% of its journey above 50 mph, the Semi elucidates the potential of green long-haul. Data-Driven Proof Culminating the study, the Tesla Semi embarked on a 794-mile journey on day one, surging to an incredible 1,600 miles over the subsequent two days. Wrapping up with a record 1,076 miles on its final day, the Semi’s performance heralds the dawn of a new electric era in trucking. Drawing Insights from the Road The “Run on Less” event did more than just showcase Tesla’s prowess. It shone a light on the holistic benefits and challenges of EV trucking, setting the stage for a deeper understanding of electric long-haul’s future. 🔗 Sustainable Class 8 vehicles – Explore More Empowerment on Wheels: Breaking Barriers in Technical Roles Thanks to the 2023 Women in Trucking Index by the Women in Trucking Association (WIT), it’s evident that women are pioneering new paths in trucking. With National Technician Appreciation Week upon us, the trucking world shines a spotlight on female technicians and their growing prominence in the industry. Unveiling Promising Statistics This year, women drivers constitute a commendable 12% of the trucking force. The WIT Index also boasts that 7% of technicians are now women, up from 4% just a year ago. As roles like dispatchers (44% female) and executives (32% female) demonstrate, gender diversity in trucking is not just growing—it’s thriving. Applauding the Backbone of the Industry WIT’s CEO, Jennifer Hedrick, extolled truck maintenance technicians as the unsung heroes who empower truck drivers to transport America’s cargo safely. The 2023 WIT Index, which reflects insights from 350 trucking companies, signifies the strides being made. In celebration, National Technician Appreciation Week and TMC’s Fall Meeting in Cleveland pay tribute to these pivotal industry contributors. 🔗 Discover more about Women in Trucking Before You Hit The Road… From green innovations to the ever-expanding role of women in the industry, the trucking and transportation sectors are shaping up for transformative times ahead. As pathways of old merge with lanes of new possibilities, it’s imperative for industry stakeholders, enthusiasts, and everyday consumers to stay informed and engaged. Keep your engines revved for more insights and breakthroughs as we continue our journey through the captivating world of trucking. We invite you to join the conversation, share your views, and be part of this exciting ride! If you made it to this part of the article, we’d just like to take a moment to thank you for taking the time to read this weekly recap. Be safe out there and as always, If you’re in search of CDL A, B, or warehouse positions, check out our open positions. And if you need staffing solutions for commercial driving or industrial positions, be sure to explore our offerings.

Elmer Buchta Trucking’s Unexpected Turn: Bankruptcy, Affiliates, and the Future

The trucking and transportation sector is ever-evolving to it’s very core, affecting every commercial driver, logistics expert, and industrial personnel. In this post, we unravel the sudden bankruptcy of Elmer Buchta Trucking, a major player in the logistics realm since 1938. Unearth the nuances of their fleet, ownership changes, affiliate involvements, and looming creditors and everything that led to this point. Each section paints a clearer picture of the firm’s current situation offering our best guess as to what lies ahead. The Curveball: Bankruptcy Details Elmer Buchta Trucking, an iconic Indiana-based company founded in 1938, has unexpectedly sought Chapter 11 bankruptcy protection. This move is startling, particularly as it comes on the heels of its acquisition by Transport Acquisitions merely a year prior. The actual direct cause for this financial move, as of yet, remains shrouded in mystery. Legacy on Wheels: Company Overview Operating a commendable fleet of over 230 power units backed by a dedicated crew of 100 drivers, Elmer Buchta Trucking stands tall in the bulk, dry van, and pneumatic trucking niches. With a history spanning back to the late ’30s, its contribution to logistics and transportation is undeniable. Shifting Gears: Ownership Transitions January saw Elmer Buchta Trucking and its associates being acquired by Transport acquisitions. This baton-pass followed its management under the Wright Family Investment Group since 2008. Intriguingly, recent court disclosures indicate stakes by both Transport Acquisitions and ElenaRose Capital in the bankrupt entities. Beyond the Mainstay: Affiliates Under Scrutiny The bankruptcy petition doesn’t solely concern Elmer Buchta Trucking. A couple other affiliates, namely Buchta Leasing LLC and WBF LLC, also find mention. WBF LLC is notably involved in liquid and gas transportation, boasting a fleet of five power units operated by four drivers. Decoding Decisions: Insights on Management According to official documentation, Louis Capolino of Apollo, Florida, leads as the president and manager of the troubled entities. Financially, the company is encumbered with assets lying between $1 million to $10 million and soaring liabilities ranging from $10 million to a whopping $50 million. Pending Payments: The Creditor Landscape Top-tier secured creditors, including KTB Equity Inc. and Peapack Capital, are awaiting hefty settlements of roughly $22 million for equipment. Buchta Leasing and National Interstate Insurance, among other unsecured creditors, are queued with substantial claims. The IRS too is in the mix, with nearly $36,000 pending in payroll taxes. What’s Next? The Road Ahead With such a thick air of uncertainty, the industry is keenly awaiting the Oct. 10 creditors’ meeting. Once that meeting has taken place, it will likely offer much more clarity on the company’s predicament and its envisioned path forward. Before You Go… It’s undeniable how the changing landscapes of the logistics world can impact even the most historic trucking giants. With surprising turnarounds, acquisitions, and financial strains, Elmer Buchta Trucking’s story is a testament to the challenges faced in this dynamic sector. We urge our dedicated community of commercial drivers, industrial staff, and logistics enthusiasts to share your thoughts and opinions in the comments section. How do you see the future for such companies? And as always, be sure to mark your calendars and check back next week for another edition of Optimum Logistic’s weekly news recap. We value your engagement! If you made it to this part of the article, we’d just like to take a moment to thank you for taking the time to read this weekly recap. Be safe out there and as always, If you’re in search of CDL A, B, or warehouse positions, check out our open positions. And if you need staffing solutions for commercial driving or industrial positions, be sure to explore our offerings.

The South-East’s Trucker Push, Waabi’s Robo-Ride, and More: This Week in Trucking

In the ever-evolving world of trucking and logistics, there’s no shortage of developments and innovations that impact commercial drivers, logistics personnel, and industrial staff. From initiatives aimed at increasing the qualified truck driver population to the rapid advancements in autonomous trucking, the industry is in a state of flux. This week, delve into the initiatives undertaken in South Carolina to bolster the trucking workforce, the promising trajectory of Waabi Innovation Inc. in autonomous trucking, and how Compassionate Care Technical Center in Knoxville is meeting the demand for CDL training. Stay informed with these curated updates and get a feel for the industry’s current pulse. Affordable Truck Driver Licensing Event CDL Day at the South Carolina Fairgrounds on Wednesday was a much-needed event that provided a successful way to rapidly increase the qualified truck driver population in the state. Run by the Department of Motor Vehicles, the event taught drivers the skills needed for commercial driver’s licenses and permits on the spot. According to Mike Fitts, a spokesperson for South Carolina DMV, South Carolina, along with the the rest of the nation, has had a continuously growing demand for reliables truckers. Trucking Industry in South Carolina Re-Adjusts USC research economist Dr. Joseph Von Nessen has observed a dramatic change in the South Carolina trucking industry as consumers are returning to pre-pandemic purchasing habits. The trucking industry does not want to lose employees and is facing a labor shortage. To combat this, more people will be moving to the region over the next two decades, signaling a brighter outlook for the future of the trucking industry.  Residence Seek Accessible Licensing Accessibility to commercial driver’s licensing is especially valuable to South Carolinian residents like Renee Lawson and Pshanda Singleton. The duo took part in Wednesday’s event, hoping to get their credentials and gain important opportunities in this high demand industry. If you missed the CDL day event, you can make an appointment at any of the many DMV locations across South Carolina and the rest of the country. 🔗 Learn more about the trucking industry in South Carolina here Autonomous Trucking Developers Making Way for Waabi Waabi Innovation Inc. has stepped into the autonomous trucking field and made a 10-year pact to haul cargo for Uber Freight. The move comes as the contraction of other developers like Aurora Innovation creates an opportunity for the Toronto-based company, which was founded in June 2021 and raised over $80 million over the last year. Waabi’s ‘Waabi Driver’ technology is based on advanced machine learning and generative AI, enabling it to bypass manual code adjustments and train its systems with real-world and virtual data. Waabi Meets Billions of Miles on Freight Network The agreement between Waabi and Uber Freight will see Waabi Driver capacity used for billions of miles on the freight network in the next decade. This capacity will be available with the ease of a push of a button on Uber’s freight app, available to about 2 million US truck drivers. Additionally, the length of the collaboration allows Waabi to deepen its involvement in the Uber Freight network, which includes its hubs and maintenance services. Waabi Leverages Transfer Hubs Alongside Shipper Partnership Waabi will initially operate a few Peterbuilt Model 579 trucks with advanced sensors, aided by safety monitors, replacing some human drivers with robots. It is launching its autonomous capacity with revenue loads on Interstate 45 between Dallas and Houston beginning this week, with no transfer hubs. Thanks to its shipper partnerships with Uber Freight, Waabi avoids steps required of other autonomous trucking developers, and eventually looks to be on track to integrate autonomous capabilities into a scaled freight network.  🔗 Learn more about autonomous trucking here CDL Training in High Demand  Compassionate Care Technical Center in Knoxville, Tennessee recently stepped up to meet the rising need for truck driving training. As reported by the American Trucking Associations, there is currently a need for close to 78,000 truck drivers across the country. Compassionate Care Technical Center provides a 4-week program with a maximum of 8 students to 1 instructor ratio, including training on flatbeds, free CPR and First Aid training for foster families, and more. Financing options and housing assistance are also available to those in need. To learn more, please call or text 865-394-9960 and 865-805-5317 respectively.  Offering Support and Inspiration The Center is also proud to provide general education and assistance to adults and teenagers looking to gain job skills. Founder and registered nurse Isaac Wachira came to the United States from Kenya to attend college at Lincoln Memorial University. Since then, he has made it his mission to empower those in need of support. The Center is currently offering a $1,000 discount on the $5,000 total cost for CDL training and the Center is affiliated with driving companies that are willing to pay for the course in exchange for a work commitment.  🔗 Learn more about the Compassionate Care Technical Center here Before You Hit The Road… This week’s stories present an optimistic panorama for the logistics and trucking industry. As South Carolina takes proactive measures to address the trucker demand and as tech companies like Waabi redefine transportation, it’s evident that the sector is both addressing current challenges and positioning itself for the future. With training centers like Compassionate Care Technical Center stepping up, we witness firsthand the unity and resilience of the community. We’d love to hear your thoughts on these developments. Please share your opinions in the comments section below. And remember, for the latest updates, insights, and news summaries, check back next week for another edition of Optimum Logistic’s weekly news recap. Safe travels on the road ahead! If you made it to this part of the article, we’d just like to take a moment to thank you for taking the time to read this weekly recap. Be safe out there and as always, If you’re in search of CDL A, B, or warehouse positions, check out our open positions. And if you need staffing solutions…

Riding Out a Digital Storm: ORBCOMM’s Resilience to Ransomware

Swift Response to Cyber Threats Leading trucking and fleet management solutions provider, ORBCOMM, recently fell victim to a ransomware attack. This unfortunate event forced their customers to revert to paper logs, causing significant disruptions. Working in tandem, ORBCOMM and the Federal Motor Carrier Safety Administration (FMCSA) quickly issued a waiver. This article delves into the details of this cyber assault, its implications, and the measures undertaken in response. A Glimpse into ORBCOMM At the forefront of this story is ORBCOMM , a major player in the world of freight management offering top-tier solutions that enable companies to oversee their fleets and monitor cargo. One of their key services includes Electronic Logging Devices (ELDs) – tools designed to help truck drivers comply with federal safety regulations by logging their operational hours. The Cybersecurity Breach Unfolded Starting September 6th, ORBCOMM clients began experiencing service interruptions, rendering them unable to use the ELD system. Given that the use of paper logs is permissible for only eight days per month, there was a pressing need for a workaround. In the face of this time crunch, It was soon revealed that ORBCOMM had suffered a ransomware attack. The revelation later being confirmed with the assistance of renowned external cybersecurity specialists. Collaborative Crisis Management In a bid to provide as much immediate relief as possible, the FMCSA sanctioned the use of paper logs until ORBCOMM’s Blue Tree product line is fully restored – a relief window extending until September 29th at the latest. This measure brought significant respite to ORBCOMM’s clientele, who rely heavily on these tracking systems. The Chain Reaction in the Freight Sector Several major freight transportation entities have been thrown off-balance by this outage, unable to efficiently track their fleets or inventory. This poses a challenge as their operational management hangs in limbo until normalcy is once again reinstated. Before You Go… All in all, this hurdle has proved once again the resilience of our industry and the players who keep the wheels turning. As of the latest reports, Michelle Ferris, VP of ORBCOMM’s Corporate Communications, assuaged concerns by confirming the operational integrity of all other ORBCOMM systems and services. These facets remain untouched by the recent cyber onslaught. As ORBCOMM grapples with the aftermath of a ransomware attack, countless freight transporters find themselves relying on paper logs. Yet, with FMCSA’s timely intervention and the steadfast resilience demonstrated by ORBCOMM, there is a glimmer of hope on the horizon. As we await the full restoration of services, ORBCOMM’s commitment to keeping its clientele informed remains commendable. If you made it to this part of the article, we’d just like to take a moment to thank you for taking the time to read this weekly recap. Be safe out there and as always, If you’re in search of CDL A, B, or warehouse positions, check out our open positions. And if you need staffing solutions for commercial driving or industrial positions, be sure to explore our offerings.

Bids, Bills and Myth Busting: Another Week in Trucking News

This week, Optimum Logistics has curated a collection of summaries from recent news articles related to the trucking and industrial staffing industry. Keep reading to learn more about updates from Estes Express, Yellow Corp, trucking-related legislation from Congress, and the myth of the industry’s driver shortage. For each story, you will get a quick synopsis of the topic, forming the perfect balance between info and entertainment. Be sure to leave your thoughts and experiences in the comments section at the end of this post and check back next week for more updates from the trucking and industrial staffing industry. Estes Express Enhances Stalking Horse Offer Estes Express, a dominant force in American trucking, has outpaced its competitors with a revised stalking horse bid of $1.525 billion in cash, aiming to acquire the shipment centers of the bankruptcy-bound Yellow Corp. This bid, unveiled in a recent bankruptcy court filing, overshadows Old Dominion Freight Line Inc’s $1.5 billion bid from August. Notably, Estes’ bid stands out, significantly surpassing its prior offer of $1.3 billion from last month. The revamped offer boasts a diminished breakup fee coupled with extensive financial terms. Remarkably, 540 potential buyers have shown interest in Yellow, with 307 signing confidentiality pacts to view the firm’s assets. Yellow Corp Seeks Buyer Facing financial turmoil, Yellow Co. suspended its operations on July 30, eventually filing for bankruptcy protection in the subsequent month. With a modest $39 million in liquid assets at the time of filing, the firm acknowledged its financial constraints, deeming it insufficient to support an extended bankruptcy sale, spanning its 12,000 trucks, real estate, and other significant assets. Consequently, Yellow Co. has been on a rigorous hunt for potential buyers to salvage its assets and restore its financial health. A Chance for Yellow Co. Competitive bids emerging from Estes Express and Old Dominion Freight Line Inc. might pave the way for Yellow Corp. to garner a higher valuation for their assets, alongside a reduced bid protection fee. Such a transaction holds the promise of rejuvenating the beleaguered firm while ensuring a mutually advantageous financial arrangement for both parties involved. 🔗 A Closed Look at the Bankruptcy Bidding Bill Passing in Congress is Unlikely The 117th Congress has witnessed an inundation of trucking-focused bills. Proposals vary from advocating raised federal weight limits on interstates, enlarging truck parking facilities, to simplifying the process for CDL issuance. A detailed analysis by GovTrack.us reveals startling statistics: out of 15,055 introduced bills, a mere 11% advanced past committee. Even more telling, only 21% of those reaching the House or Senate floor secured enactment. One Bill Chances for Passage Are Greater Than 50% In a sea of trucking-oriented bills, GovTrack bestows only H.R. 3013 – termed the LICENSE Act – with over a 50% probability of being ratified. This act aspires to update CDL examiner prerequisites and empower states to conduct CDL driving tests for candidates from other states. Notably, post-committee reporting on May 23, 2023, the act was recommended to the Senate Commerce Committee, aligning with its companion bill, S. 1649. Despite Low Chances for Passage While Congress’s track record for bill ratification is modest, trucking-specific bills like H.R. 1435, dubbed the Preserving the Choice in Vehicle Purchases Act, have seen positive movement. Parallel prospects are observed for H.R. 3372 and 3408. As these bills navigate Congress, the odds for their approval seem increasingly promising. 🔗 Learn more about Congress and potential trucking legislation here Shortage Myth Contrary to popular belief stemming from the Covid-19 pandemic, the trucking industry isn’t grappling with a drastic driver shortage. Instead, it’s been an age-old struggle to retain sufficient personnel content with the industry’s modest compensation. Boom & Bust A fleeting growth phase engulfed the trucking industry when a multitude of factors, ranging from plummeting global goods demand, favorable diesel prices, to governmental financial aids, converged. This, however, was a transient surge as businesses over-ordered to meet demand expectations. Fall & Painful Burden This inflated growth was unsustainable, leading to a precipitous crash, particularly impacting newly inducted truckers. Presently, the majority of spot market drivers grapple with economic hardships, with some, like Jacqueline Jolly and her spouse, buried in debt, reverting to their former professions. Long-Term Struggles As freight rates continue their downward trajectory, larger trucking corporations, enduring these trying times, often employ greenhorn drivers, inadvertently posing potential road safety risks. While the trucker shortage discourse might have receded for now, history suggests it’s bound to re-emerge, reigniting the cyclical pattern of boom and bust. 🔗 Read the full article here Before You Hit The Road… The trucking and industrial staffing industry is constantly on the move, with updates and changes occurring day in and day out. This week, we’ve provided a comprehensive collection of recent news articles, giving you a glimpse into the stories making big waves in the industry. As a reader of Optimum Logistics, we want to hear from you! Leave your opinion of the topics discussed in the comments section below and don’t forget to check back next week for another edition of Optimum Logistic’s weekly news recap. If you made it to this part of the article, we’d just like to take a moment to thank you for taking the time to read this weekly recap. Be safe out there and as always, If you’re in search of CDL A, B, or warehouse positions, check out our open positions. And if you need staffing solutions for commercial driving or industrial positions, be sure to explore our offerings.

Driven or Driverless? What California’s New Bill Means for AV Trucks

A Setback for Autonomous Trucks in California California passed a bill on Monday that requires a trained safety operator to be present in autonomous, heavy-duty vehicles anytime they are operated on public roads within the state. The bill, known as AB 316, passed the Senate floor with 36 votes in favor and two against and still needs to be signed by California Governor Gavin Newsom before becoming law. What Will This Mean for Driverless Trucks? The bill would, in essence, ban driverless AV trucks, as Newsom has a reputation for being friendly to the tech industry and is expected to veto AB 316. This has disappointed trucking companies, who hope to drive up the efficiency and safety of the industry by incorporating autonomous technology. Having to keep a safety operator in the front seat defeats the purpose of such vehicles, and opponents of AB 316 believe that it will hinder the advancement of tech which could help save lives. The Data Behind AV Safety In 2021, there were 5,788 truck crash fatalities, a 47% increase from 10 years prior. Conversely, driverless AVs have recorded zero fatalities in the two years they have been operating on public roads, with tens of millions of miles driven. What The State Legislature is Requiring of Autonomous Trucks Because of this bill, the DMV is needed to now provide evidence of safety to policymakers before driverless technology can be implemented in California. By January 1, 2029, or five years after testing begins (whichever is later), the DMV will need to submit a report to the state with data about the performance of AV technology, its impact on public safety and employment in the trucking sector, and a recommendation on the need for human safety operators in autonomous trucks. This means that California may not see AVs being operated without a human safety operator in the front seat until 2030. Reactions From Opposing Sides Advocates of the bill argue that it will protect California road users and ensure job security for truck drivers, while opponents of the bill argue that it defeats the purpose of autonomous technology. Those in favor of the technology point to the high truck crash toll in comparison to the zero fatalities caused by AVs.  Before You Go… The future of autonomous heavy-duty vehicles on California roads hinges on the decision of Governor Gavin Newsom, who is expected to veto AB 316. Nevertheless, California will require an increasing amount of data on the performance of driverless technology before its implementation, and it may not be until 2030 that safety operators are no longer needed in autonomous trucks in California. If you made it to this part of the article, we’d just like to take a moment to thank you for taking the time to read this weekly recap. Be safe out there and as always, If you’re in search of CDL A, B, or warehouse positions, check out our open positions. And if you need staffing solutions for commercial driving or industrial positions, be sure to explore our offerings.

Major Automakers are Bringing EV Production to the U.S. + Other Trucking Topics

Welcome to Optimum Logistic’s weekly news recap! This week we are discussing the push behind electric vehicle production, the opportunity to rise up the occupational ladder with Trucker Tennessee, and how Stack AV’s autonomous trucking business seeks to revolutionize the trucking and freight industry. Through partnerships and government incentives, EV focus is gaining ground, exposing individuals to the potential for career growth, and ensuring goods can be transported safely and efficiently worldwide. If you’re an industrial or logistics professional interested in staying abreast of transport trends, this post is for you! Read on for a taste of the latest in the world of trucking, EVs, and more. Joint Venture Formed to Promote Electric Vehicle Production Three major automakers have formed a joint venture to produce electric vehicle batteries in the U.S. Daimler Truck, Paccar Inc. and Cummins Inc. each have a 30% stake in the venture, with EVE Energy, a Chinese battery manufacturer, making up the remaining 10%. Overwhelming Investment The total estimated investment in the joint venture is between $2-3 billion, making it one of the largest investments related to electric vehicles (EVs) to date. Several other automakers, including General Motors Corporation, Ford, and Stellantis are investing heavily in similar ventures. Ford, for example, has already announced an $890 million investment in battery production partners SK On and EcoProBM this past August. Growing Incentives Government incentives such as the Inflation Reduction Act and CHIPS and Science Act are designed to promote zero-emission EVs and boost production of related technologies in the U.S. As a result of these incentives, more than $150 billion in EV-related manufacturing plant projects have already been proposed across 16 U.S. states. The stakes are particularly high in California, which is banning new internal combustion-powered trucks from its roads by 2035.  Government Approval The newly formed venture has been subject to review by the Committee on Foreign Investment in the U.S. (CFIUS), a government body responsible for protecting the country’s best interests in the face of major foreign investment and merger activities.  Whether you are a trucking company provisioning for future requirements, or a logistics and industrial staffing company looking to prepare your workforce for the energy transition in trucking and EV production, this joint venture is a monumental step in the right direction concerning EV production.  🔗 Learn more about U.S. EV production leaps. Time to Climb the Occupational Ladder? The Tennessee Board of Regents (TBR) recently began a new initiative called Trucking Tennessee to increase awareness of the 70,000 truck driver jobs available across the country and address the shortage of drivers in Tennessee. Jason York from Frontier Transportation in Knoxville acknowledges the challenge of convincing people to look into these jobs, requiring long hours away from home. But, the need for driver hiring will continue to grow proportionately to the country’s population over the next decade. In East Tennessee, Tennessee Truck Driving School is the place to learn the necessary skills and have an opportunity to break into the trucking industry with job placements.  What the Road Ahead May Look Like Although the job may be difficult to navigate, it leads to potential personal growth and mobility in the trucking industry. It’s estimated that by 2030, the truck driving industry will have seen a 20 percent jump in available positions. Companies such as Frontier Transportation are on board with the TBR’s initiative to bridge the gap in available drivers. Trucker Tennessee is the perfect place for people to learn more about this career and take their first steps into the field.  🔗 Explore TBR’s Tennessee Trucking Transformation here. Redefining the Way Goods are Transported Stack AV has launched its autonomous trucking business with the mission to revolutionize the trucking and freight industries! Leveraging its self-driving technology, Stack AV designs solutions to alleviate shortages, enhance safety and efficiency, and reduce operating costs and emission levels. Backed by SoftBank Group Corp., Stack AV is led by experienced leaders in the development of autonomy-enabled systems to optimize and improve the current supply chain.  Ethics, Efficacy, and Automation Led by Chief Executive Officer Bryan Salesky, President Peter Rander, and Chief Technology Officer Brett Browning, Stack AV is headquartered in Pittsburgh, Pennsylvania with over 150 employees across the country. Stack AV’s advanced AI-powered autonomous driving system can change the transportation of goods and supply chains for its partners, allowing them to deliver goods to their consumers faster and more safely. Weakened by driver shortages, long-term safety concerns, and high operating costs, the trucking industry needs an upgrade to become more efficient and reliable. Stack AV is the answer and is ready to take trucking and freight into a new era with its self-driving technology and AI-driven solutions.  🔗 Discover how Stack AV is revolutionizing the trucking industry here. Before You Hit The Road… That about ties up another exciting week in the world of trucking and EV production. From joint ventures looking to increase EV accessibility, the need for new drivers across the nation, to Stack AV’s autonomous trucking business, there is a great deal of potential for success in the industry. As a trucker, logistics professional, or even just an individual interested in the EV industry, these stories are worth taking note of. That being said, we’d love to hear from you! Which story do you find the most intriguing? How will it affect the industry? Share your opinions in the comments section below and don’t forget to check back next week for another edition of Optimum Logistic’s weekly news recap! If you made it to this part of the article, we’d just like to take a moment to thank you for taking the time to read this weekly recap. Be safe out there and as always, If you’re in search of CDL A, B, or warehouse positions, check out our open positions. And if you need staffing solutions for commercial driving or industrial positions, be sure to explore our offerings.

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