Harvey Continues to Disrupt Supply Chain 

Harvey is now progressing across the southeastern portion of the United States, bringing flash flood watches and warnings to Mississippi, Tennessee and Kentucky. The Port of Houston reopened today while the city's two major airports resumed limited operations on Wednesday, August 30. Over-the-road and rail transportation continue to be impacted due to infrastructure damage and flooded throughfares. Please note that supply chain delays are expected to linger in the coming weeks with capacity and pricing to be impacted. If you have shipment-specific questions or need to expedite a shipment, please contact your local Ascent Global Logistics representative. 

ELD Update 

State law enforcement agencies have agreed to grant drivers a grace period if found to be noncompliant with the Electronic Logging Device (ELD) mandate as of December 18, 2017. While inspectors will not be able to force drivers out-of-service for noncompliance during the grace period, they will be able to assess citations and penalties. The grace period will expire on April 1, 2018 granting inspectors the authority to place commercial drivers out-of-service if the vehicle is not equipped with ELDs. Click here to read more.

One Month In: New Retail Delivery Requirements

The new delivery requirements for Walmart suppliers have officially been active for one month now. The new delivery requirements are dependent on the mode of transportation (TL or LTL), with suppliers being charged three percent of the COGS (cost of goods sold) for cases outside of the compliance minimum. Delivery requirements now cover an additional element, cases ordered versus cases shipped, in addition to the arrival time. Please be aware that the compliance threshold will once again tighten in February 2018. If you have questions about OTIF, please contact our retail consolidation experts. 

Top 50 LTL Carriers Announced

According to the JOC (Journal of Commerce), 25 percent of the 50 largest U.S. and Canadian LTL trucking companies reported increased revenue during 2016. The 25 largest carriers captured over 90 percent of total revenue which topped $32.6 billion. Acquisitions continued to fuel mid-size and smaller carriers, helping them capture additional revenue. The top ten carriers in order of revenue include: FedEx Freight, XPO Logistics, Old Dominion Freight Line, YRC Freight, UPS Freight, Estes Express Lines, ABF Freight Systems, R&L Carriers, Saia Motor Freight Line and Holland. 

BRICS Summit & Golden Week to Increase Peak Season Congestion

Please note the upcoming BRICS Summit (September 3-5 in Xiamen, China) and the Golden Week holiday (October 1-8 across China) are expected to impact transportation networks over the coming weeks. In addition to these events, increased import and export volumes consistent with peak shipping season is causing congestion at major U.S. ports. As volumes continue to build in the months leading up to the holidays, space will continue to tighten. To alleviate space challenges, ocean and air cargo bookings should be secured as early as possible. Bookings should be placed at least three weeks in advance of the departure date, however, more than a month of lead time is suggested.

All-Electric Truck Debuted

Cummins became the latest company to unveil an all-electric tractor this week. The battery-powered truck has a range of 100 miles on a single charge, making it ideal for the drayage sub-sector of the industry. The trucks are expected to enter the market sometime in 2019. Click here to read more. 

TPEB Trade Updates

Q4 Fuel Surcharges

The Trans-Pacific Stabilization Agreement announced its 4th quarter 2017 fuel surcharge amounts for the TPEB (Trans-Pacific Eastbound) Trade, effective October 1, 2017. The amounts are as follows:

BAF (USWC): $6/CBM; 6/MT; 281/20'; 312/40'; 351/40'HQ; 395/45' ($-1/-1/-19/-21/-24/-23 from Q3)
BAF (IPI): $10/CBM; 10/MT; 442/20'; 471/40'; 552/40'HQ; 623/45' ($0/0/-24/-27-31/-33 from Q3)
BAF (USEC): $12/CBM; 12/MT; 537/20'; 597/40'; 672/40'HQ; 756/45' ($0/0/0/0/0/0 from Q3)
IFS: $179/container ($+6 from Q3)
Local IFS: $52/container ($-1 from Q3)

Please note that Low Sulfur Fuel amounts are included in the numbers above. 

October 1 GRI 

Please note that Trans-Pacific Eastbound Trade carriers have announced a General Rate Increase (GRI) in the amount of $20/CBM, $40/MT, $900/20', $1,000/40', $1,000/40'HQ and $1,265/45', to become effective October 1, 2017. Ascent Global Logistics will continue to work diligently with carriers to mitigate this GRI in support of our clients.