b'DECEMBER 19, 2022 - JANUARY 22, 2023NORTH AMERICAS TRANSPORTATION & LOGISTICS NEWSPAPER23(ACCELERATINGcon- their supply chains.(RULEMAKINGcontin- dering,Whatwasthepointexports,creatinganagricul-tinued from page 15) Theneedforeveryued from page 11) ofpassingOSRAintheturetradedeficit,saidthe There was a large influxaspect of the supply chain toThe WSC also objected tofirstplace?thelettersaid.USDA. Imports were forecast of small carriers entering thework in sync is more appar- the NPRMs view of a car- We all witnessed the havocat$199billion,withfruits, marketin2021and2022entthanever,andshippersrier granting special treatmentforeign-flagged ocean carri- vegetables, nuts, beer, wine, duringatimewhenthererecognize that diversificationtoaregularcustomerasers wreaked on our ports inand distilled spirits providing werenotonlyhighspotopportunitieswithinsupplylikelyunreasonable.The2021,pricegougingship- nearly half of the shipments.rates,buthighequipmentchainswillbecomeincreas- Shipping Act, the WSC con- persandleavingAmericanIndeed,FAOsreport costs as well. As spot ratesinglyimportant.Accordingtended,allowsshippersandexportershighanddry.Ifreleased on Nov. 11 said that declined in 2022, these car- to data collected by Schnei- carrierstostructurerelation- thisdefinitionstands,theyglobal food imports could head riers have found themselvesder, more than 40% of orga- ships according to their needscould easily do it again. forarecordhighthisyear. under pressure. nizationsplantotransformin individual service contracts. Food import costs globally are Smaller carriers are align- their supply chains in 2023.OSRA22didnotlimitC ongressIonalI ntent projectedtoreachnearly$2 ingwithlargercarrierstoIt is beneficial for companiesthe Shipping Acts authoriza- Thisproposeddefini- trillion this year or even higher try to mitigate some of thesetoconsiderwhereproductstion to enter into confidentialtion is not in line with con- than previously expected. challenges.Digitalplatformsaremanufactured,howtheycontracts, the group stated, sogressional intent, the letter andsolutionslikeSchneiderchoosetoshipthem,wherethere is no legal basis forcontinued.Itneedstobe FreightPowerenablethisthey are stored, and where thethe language proposed by theremedied for the sake of our(FACEcontinued from kindofserviceandmakeitproduct is sold. Carriers, likeFMC.Thesameprinciplesfarmers, exporters, and man- page 21)easierforindependentandSchneider, that offer multipleoffreedomtocontractcon- ufacturers who already facedinNorthernCaliforniaare smallercarrierstobookservice offerings are able totinue to apply, the WSC con- extreme losses at the handsforcedtotransportexports freightforexistingtrucks.providecustomersolutionscluded, and the commissionof foreign carriers. throughthePortsofLos This also provides benefits tothatgivethemvalueandmust make clear in any finalBut the problem with theAngelesandLongBeachat customersasSchneidercanoptionalitywithinanever- rule that this is the case. representativesprotestofdouble the rate when going to offerresilientcapacityandevolving world. DoleOceanCargothe FMCs failure to upholdOakland:Thiscouldeasily multi-modal shipping options.Next year will also bringExpress,anoceancarrier,congressionalintentisthatdoubletheexistingtrucking advancementsintechnolo- demandedthatlanguageinCongress itself failed to guidecost for exporters that used to o ptImIzInge ffICIenCy Is giessuchasbatteryelectricthe rule be removed requiringthe FMC on how to determinego out of Oakland. I am hope-g ood forb usIness and vehicles(BEV).Schneidera carriers business decisionswhat qualifies as unreasonableful that some services will be tHee nvIronmenthasmovedbeyondthetest- withrespecttoservicecon- behaviorinthelegislationitrestored (to the Port of Oak-Theriseofenvironmen- ingphase,scalingBEVintracts to be applied fairly andpassed. As the NPRM noted,land) but 2023 does not look tally conscious consumers andthecompanysSouthernconsistently. It is the essencekey terms and phrases, includ- good at the moment.thepotentialforgovernmentCalifornia intermodal opera- ofservicecontracting,saiding unreasonably, refuse to regulationhasdrivenmoretions,makingSchneiderthecompanyscomment,deal or negotiate, and vesselC HassIss Hortagee asIngconversations around reducingoneofthelargestelectricthat carriers be able to treatspace accommodations, are notThe chassis shortage appears emissions. Atitscore,reduc- truckfleetsinNorth Amer- each customer differently. defined in OSRA 22.to have gotten much better as ingemissionsisincreasingicawithalmost100batteryTheNPRMhasalsoWhenheintroducedthea result of more chassis being efficiency.AtSchneider,weelectricclass8eCascadiasignited the ire of OSRA 22sinitialversionofthebillinavailable and more companies continue to integrate emission- fromDaimlerTruckNorthsponsorsintheU.S.HouseAugust 2021, Garamendi saidmanufacturingmorechassis. friendly business practices suchAmerica.TheintegrationofofRepresentatives,includingthat Congress would defer toThere is also less of a reliance as lightweight tractors to reduceBEV is an essential milestoneRepresentativesJohnGara- the regulators to set the defi- on China. theoverallweight,allowingfor Schneider as we move tomendi(D-CA)andDustynitions of key legislative pro-formorecargotobemovedreduce carbon emissions perJohnson (R-S.D.). In Novem- visions. So, when Garamendiosra (o Ceans HIppIngper shipment and reducing themileby7.5%by2025andber, they wrote a letter to FMCasks, What was the point ofr eforma Ct )number of loads moved for a60% by 2035.chair Daniel Maffei asking thepassing OSRA? if the NPRMAnotherbrightspotis given product. Ultimately, a sense of nor- commissiontoupholdcon- failstoupholdcongressio- thenewOceanShipping Wevealsoinvestedinmalcy is returning to the supplygressional intent. Garamendinal intent or adequately pro- ReformAct(OSRA)which technologiesandequipmentchainandworldoflogistics,andJohnsonobjecttothetectagriculturalexporters,isgoingtobeenforcedby includingintermodalcon- although the challenges of theFMCsdefinitionofunrea- the question is perhaps bettertheFederalMaritimeCom-tainers and chassis to help uspast few years shined a light onsonable as applied to vesseldirectedtohimselfandhismission (FMC): This means not only meet our sustainabil- companies that could acceleratespaceaccommodationandcongressionalcolleagues,that there is going to be a lot itygoals,butalsohelpourinnovation and customize solu- asserted that the NPRM provi- rather than to the Federal Mar- moretransparencyrequired customers meet their Scope 3tions and transparency to meetsion will not protect Americanitime Commission. of the ocean carriers. Issues emission goals. A single railthe needs of their customers. Atshippersandexportersfromlike availability will become container can be shipped 500Schneider, weve survived andunfairbusinesspracticesofcleareranddigitizationwill miles on the equivalent of athrivedthroughmanymarketforeign ocean carriers.(STRESScontinued frombe accompanied by standard-single gallon of fuel. In 2022,cyclesinournearly90-yearThe FMCs current defini- page 12) ization of terminology so that wehavebeenworkingwithhistory, always emerging stron- tion of unreasonable refusalfive years, food and agricul- therewillbelessconfusion utility companies and OEMSger than we entered. is so feckless it has us won- turalimportswouldexceedabout terms and conditions.to design and build the charg-inginfrastructureforour BEV fleet.Shippers began to realize the benefits of working with carriers like Schneider, which createcustomizedshipping plansandadviseonsetting sustainabilitygoals.Schnei-derrecords,measures,and manages this information and makes it available for custom-ersandstakeholdersthrough an annual Corporate Respon-sibility Report. 2023: W Hatsa HeadLeveragingstrongrela-tionships built through the pan-demictoweatherthemarket cycle and furthering advance-ment and incorporation of new technologies are all anticipated for 2023.Theindustrywilllikely experiencecontinuedchal-lenges.Ashighlyleveraged carriers begin to exit the market, shippers that are overly reliant ontransactionalrelationships willexperiencedisruptionsin'