Pandemic-Related Supply Chain Challenges Anticipated by Food Transportation Experts

February 14, 2021 by Levinson and Stefani Leave a Comment

Food transportation industry leaders are collaborating in efforts to learn from their experiences during the era of the coronavirus pandemic and its effects on the sector and the country as a whole.

Now, these groups have formed their own formal working group aiming to address food supply chain difficulties that have arisen during this time. The group members discuss issues and potential solutions that will prevent any further disruptions of this kind.

“What I found during the different conversations with each sector was they were all doing something, but it was segmented within their own sector,” said Agricultural and Food Transporters Conference executive director, Jon Samson. “There weren’t a lot of conversations, and there were gaps within that food supply chain. The goal of the group was to share information.”

The Conference is part of the American Trucking Associations and was the source of the beginning of the working group.

At the start of the pandemic and the stay-at-home orders that came with it, food waste became a major focus of the working group as many food and beverages, like milk and beans, were being dumped.

“I reached out to a handful of folks within the supply chain, like the dairy side and livestock side, then also food production, food manufacturing, and food shipping,” Samson continued. “That smaller group turned into a larger group pretty quickly.”

The working group “started as a response to the perishables problem, when there was a visible oversupply of certain commodities bound for food service,” said FMI senior director of supply chain and sustainability, Marjorie DePuy.

She also explained that the Food Industry Association had begun working on forming links between retail groups and food service distributors in order to make communication easier and solve any supply shortages. This helped to create member forums for participants to further discuss solutions.

“It was helpful to share information with others on the calls so we could be aware of the situation in various sectors of the industry and learn about resources where they existed,” said DePuy.

When the working group was able to connect producers, trucking industry members, the government, and food-distributing charities, the U.S. Department of Agriculture and the Federal Emergency Management Agency began to find ways to get involved and help food be hauled to areas in which it was needed most.

“We worked with the USDA on their Farmers to Families Food Box program to get them linked up with people and get them started,” explained Samson. “We worked with FEMA, [which] was working on getting food assistance to needy families.”

Then, many other groups found interest in the working group’s efforts after noticing federal government involvement.

“We participated in the working group calls to get a better understanding of partnership opportunities across the supply chain,” said vice president of packaging and sustainability for the Consumer Brands Association, Meghan Stasz. “Collaboration and information sharing was critical in the early stages of the pandemic, as different organizations and stakeholders worked to find quick solutions to immediate supply chain challenges.”

Soon, the Consumer Brands Association was able to involve blockchain organization Connecting Food, a group that provides supply chain anomaly identification through its digital auditing capabilities. CBA also brought in members of its Food Waste Reduction Alliance to collaborate with the working group.

“The initial step last spring was to just stop the bleeding,” sais Samson. “Longer term, there has been a fair amount of academic and private work that is being done.”

When academic consultant Dan Holladay joined the group’s efforts, he was collaborating on an agriculture industry technology roadmap with the University of California. He is now helping to find methods of lasting supply chain improvements.

“COVID hit, so I backed up and said, ‘We probably need to reorganize this and focus on the biggest crisis area right now,’ and that was the food supply chain disruptions,” Holladay explained. “That’s when I shifted it over to that.”

Now, Holladay is working to gather the information that has been discussed and deemed beneficial for future efficiency efforts.

“It started evolving to where we want to hold a formal workshop,” he said. “The goal is to make it very formal. In fact, we want to make it into a document that U.S. industries and ecosystems are aligned with.”

COVID Vaccine Nears Readiness, DOTs Prepare for Transport

February 13, 2021 by Levinson and Stefani Leave a Comment

The emergency order allowing hours-of-service regulation relief to truckers during the time of high demand brought on by the pandemic has been extended by the Federal Motor Carrier Safety Administration. The expansion of the declaration is an effort to loosen rules and allow for easier transport of long-awaited COVID-19 vaccines.

This extension will last until February 28th, 2021 for truckers participating in direct support of coronavirus emergency efforts–especially those working to transport these vaccines.

“FMCSA is helping lead the way to allow for an efficient and effective distribution of the first COVID-19 vaccines,” said Wiley Deck, FMCSA Deputy Administrator. “The agency is continuing to provide additional regulatory relief to our nation’s truckers to get critically important medical supplies, food, and household goods to Americans in need.”

The original hours-of-service changes, announced in May by Transportation Secretary Elaine Chao and former acting Administrator Jim Mullen, consisted of four major revisions–including the relaxation of rules regarding sleeper berth time splits, 30-minute rest break requirements, adverse driving condition regulations, and maximum on-duty driving times.

The expansion declaration applies to all 50 states and the District of Columbia and extends the Federal Motor Carrier Safety Regulations exemption from Parts 390 to 399. These Parts cover hours of service, longer combination vehicles, and parts and accessories necessary for safe vehicle operation.

Regulation relief mandates are extended for commercial drivers hauling: medical supplies, equipment, vaccines, and vaccine administration kits; testing-related medical supplies, such as those diagnosing COVID-19; COVID-related sanitation, community safety, and community transmission prevention supplies like masks, gloves, soap, hand sanitizer, and disinfectants; livestock and livestock feed; and food, groceries, and paper products meant for restocking stores and distribution centers.

The hours-of-service change extension will not be offered to those hauling routine commercial deliveries and mixed loads “with a nominal quantity of qualifying emergency relief added to obtain the benefits of the emergency declaration, according to FMCSA.

These efforts follow the December 1st announcement of the U.S. Department of Transportation’s measures being taken “for the safe, rapid transportation of the coronavirus disease 2019 vaccine by land and air,” as stated by the DOT. “With the unprecedented pace of vaccine development through Operation Warp Speed, the Department has made preparations to enable the immediate mass shipment of the COVID-19 vaccine.”

Operation Warp Speed officials have worked with the private companies transporting the vaccines from manufacturers to distribution centers. Necessary safety regulations have been put in place regarding any potential difficulties and hazards that could arise from vaccine transport, which include dry ice and lithium battery standards.

“The Department has laid the groundwork for the safe transportation of the COVID-19 vaccine and is proud to support this historic endeavor,” said Chao.

The first vaccine supplies are set to become available during December, and the Centers for Disease Control and Prevention estimated that as supply becomes more available, all American adults are likely to be able to receive the vaccination in 2021.

“Since the onset of the COVID-19 public health emergency, the Department has played an active role in supporting the Administration’s efforts to contain and mitigate the spread of the virus, and ensure continuation of critical infrastructure support and relief for the American people,” the DOT explained. “Response measures implemented by the Department to date have included direct stakeholder outreach and guidance, expanded Federal assistance, and expedited regulatory relief.”

Still, the hours-of-service changes have been a source of concern for many safety advocates, as the new regulations allowing for longer on-duty hours and less-strict rest time regulations will allow more fatigued drivers on the roads for longer periods of time and for more hours in adverse driving conditions.

Driver fatigue has been a top concern for safety advocates across the country, with the National Transportation Safety Board focusing heavily on the issue and naming the reduction of fatigue-related trucking accidents on its ‘Most Wanted List’ of 2019-2020 safety improvements.

“These [hours-of-service changes] are opportunities for drivers to be pushed to their limits further, to drive without resting,” said the Trucking Safety Coalition’s executive director, Harry Adler, when the rule revisions were first announced. “It’s more opportunity for a driver to operate while fatigued, which is really detrimental.”

Levinson to Give Keynote at Auto Negligence Seminar

February 12, 2021 by Levinson and Stefani Leave a Comment

On February 15th, the firm’s own Ken Levinson will serve as the keynote speaker at the Maryland Association for Justice’s 2021 Auto Negligence Virtual Seminar.

This seminar–held virtually this year–aims to provide attendees with examples of the best possible trial-tested practices to win their cases and maximize their verdicts, whether or not they are seasoned attorneys or newcomers in their fields.

Levinson’s keynote is entitled, “Enhance Your Case with Focus Groups,” and will focus on the benefit of utilizing a focus group in preparation for a trial. He plans to detail his highly successful methods in using focus groups to understand what would persuade a jury most easily.

“Focus groups help trial lawyers understand the best way to present their client’s case,” Levinson explained. “They’re a great way to see what would resonate with a jury. Oftentimes, attorneys get so deep in the weeds of the case that we need an objective outsider’s perspective. Focus groups can also reveal how jurors would respond to an insurance defense lawyer’s excuses about how an auto crash occurred. This helps make sure our clients’ cases are presented in the most effective way at trial.”

Because the key to a successful case is to test ways of framing and messaging, Levinson also dedicates time to reading, publishing, and, of course, employing the latest decision-making methods within cognitive science in regards to focus groups and their usefulness in any given case.

Other speakers at the seminar include MAJ President Amy Orsi and her partner, Stephen Markey of Markey and Orsi, who will be explaining the basis of bad faith claims through tutorials and real-life examples, and will demonstrate how they can be used to boost overall case value. Additionally, David Tompkins and Sharon Tompkins of Lewis & Tompkins, PC will discuss insurance coverage in regards to ride-sharing services and the best ways to get a client the compensation they deserve.

Finally, a panel of trial judges will be sharing their perspectives on courtroom damage presentations and what arguments and techniques they find the most effective. Moderating the seminar will be Jon Everett of ChasenBoscolo Injury Lawyers and David A. Muncy of Plaxen Adler Muncy, PA.

Levinson said he is honored to be presenting at this event among “such an outstanding panel of trial lawyers and judges,” noting that they are all “top-notch.” He’s also thrilled to be sharing the passion that drives the work he does for his clients.

“Many people are killed or seriously injured as a result of a car crash,” he explained. “Large insurance companies and their corporate lawyers have unlimited resources to deny survivors the justice they deserve. It is vitally important we trial attorneys help each other combat the unfair insurance tactics so we are able to best represent our clients. Sharing the latest ideas and legal methods to counter corporate maneuvers is what helps us get justice.”

To register for this virtual seminar, click here.

Risk of Cyberattacks Looms for Trucking Companies–What Can be Done?

February 12, 2021 by Levinson and Stefani Leave a Comment

Cyberattacks and ransomware breaches are increasing steadily, according to internet and technology experts. Although they are never completely preventable, fleets can make specific efforts in order to lessen the risk of attack and keep their businesses safe.

A cyberattack takes place when a hacker digitally breaks into a company’s IT system and proceeds to encrypt certain files, documents, or the system as a whole. Then, the attacker will blackmail the company into giving them a ransom by threatening to steal or delete the company’s important data.

Ransomware attacks are becoming more common across all businesses–not just trucking–and have been deemed a top overall security threat. Because many companies end up quietly paying an attacker’s requested ransom without submitting any report of the attack, the exact number of recent cyberattacks is hard to determine.

Global reports of cyberattacks across all industries jumped by 715% between 2019 and 2020, according to Bitdefender, a cybersecurity and antivirus software firm.

Throughout 2019, the transportation industry became one of the most cyberattacked industries in the country, with attacks on 3PLs and fleets becoming particularly dangerous. These attacks are able to compromise all digital information of the targeted fleet, the fleet’s clients and the fleet’s business partners.

Still, too many industry businesses have not implemented necessary precautions or recovery plans.

The trucking industry is going through an era of many technology changes and upgrades, mostly consisting of software meant to boost on-road safety and business practices, rather than any ransomware defense. Luckily, many tech vendors often dive deep into cybersecurity possibilities within their software and can discuss proper protections with the fleets they serve.

“Customers are trying to move freight and get more efficient, so cybersecurity is not in the forefront of their mindset,” said McLeod Software chief security officer, Ben Barnes. “Helping them through the murky waters is part of our strategy. At the end of the day, it affects us all.”

Cybersecurity experts and IT workers say a majority of companies fail to implement any cyberattack prevention strategies whatsoever, and only consider the risk once they’re already a victim.

“My experience is, regardless of industry–whether trucking or shipping or healthcare–once a company is hit with ransomware, they become far more serious about securing their data,” said HudsonAnalytix chief technology officer, William Elkins, whose company is focusing primarily on trucking-related cybersecurity solutions.

“Partnering with proper software vendor companies is key,” said Leonard’s Express director of systems development, Chris DeMillo. “But, ultimately, the responsibility lies with the [fleet] or 3PL.”

Many fleets avoid investing in any cybersecurity insurance due to the rising costs involved, which continue to increase as ransomware attacks grow steadily. On the other hand, some businesses buy this insurance and then believe their fleets are completely safe from cyber attacks, which is not the case, according to experts.

When purchasing cybersecurity insurance, “you really aren’t set, and it can give you a false sense of security that it’s a panacea, when it’s not,” said Leonard’s Express chief marketing officer, Michael Riccio. “What are you doing at the blocking and tackling level to alleviate having to use that insurance?”

Leonard’s Express fell victim to a ransomware attack itself a few years ago, which employees believe occurred from an email phishing scam. The trucking and freight brokerage firm refused to pay the ransom, and the hackers ended up not stealing any important data, luckily. Still, the company used the event as motivation to improve its cybersecurity methods and practices.

A company must create a proper cybersecurity plan, complete with assessment of the company’s valuable assets and where they are located within its software. Entry points into the overall system must be well-known, as well.

“[Although] having a plan doesn’t always help prevent [an attack], if something happens, it lays out the playbook for how to deal with the problem,” said McLeod’s Barnes. “You’ve got to identify the crown jewels and figure out how to protect them.”

Then, a company can decide which preventative practices to implement, including the installation of antivirus software, firewalls, or third-party cybersecurity methods.

“When you’ve done this assessment, it’s a lot easier to put up a cyber budget,” said HudsonAnalytix’s Elkins. “Offset that expense with the impact of an outage. You’ll make different decisions if you consider the cost.”

Then, ensure the plan is utilized by everyone in every department–not just the IT department.

“Make the plan ahead of time, print the plan, and have it all over the place,” said Trimble Transportation vice president, Chris Sandberg. “You should test every so often that the steps you have in place for the business haven’t changed and don’t need to be [updated]–at minimum, annually, but preferable quarterly.”

Recent Study Shows Overall Trucking-Related Costs on Decline

February 10, 2021 by Levinson and Stefani Leave a Comment

According to the American Transportation Research Institute’s recent update to its “Analysis of the Operational Costs of Trucking,” overall trucking operations costs have decreased. These findings come from 2019 financial data representing motor carriers across all fleet sizes and sectors.

The new report indicates a freight decline taking place during the last six months of 2019. Because of this, along with fuel prices dropping during the same period, the marginal cost of trucking fell as well.

Per mile, the average motor carrier marginal cost was $1.65 in 2019, a 9.3% decrease from the cost per mile of $1.82 in 2018.

“In 2018, trucking encountered record demand and the highest tonnage in the last 20 years,” said ATRI in its November report. “In the contraction that followed in 2019, a number of independent factors were at play to lower the operational costs of trucking.”

For the report, ATRI split costs into two separate categories–vehicle-based motor carrier costs and driver-based motor carrier costs. Fuel, repair, maintenance, licenses, tolls, insurance premiums, and truck lease and purchase payments made up vehicle-based costs, and wages and benefits made up driver-based costs.

The majority of major line item costs saw an overall decrease from 2018 to 2019, with the biggest drops taking place within truck insurance premiums (which dropped by 19%), and repair and maintenance costs (which dropped by 16%). Fuel costs saw a slightly smaller percentage decrease of 9%.

Additionally, around 15% of fleets took advantage of alternative fuel during 2019, 2% more than in 2018. For these alternative fuel methods, compressed natural gas options had the highest rate of adoptions in both years, and battery/hybrid models had the lowest rates of adoption.

Finally, the industry saw a slight drop in driver wages and benefits, coming to 69.3 cents per mile in 2019 from 77.6 cents per mile the year before. Still, overall benefits and wages are above 2016’s numbers–a year when the trucking industry saw more freight softening. Carriers continue to use higher wages as a way to attract and retain drivers, although the numbers dropping, even slightly, are no help to the current driver shortage.

However, many fleets have found loopholes.

“We’re still mining data to some degree, but it does look like the increase in starting and retention bonuses probably comes close to offsetting any declines we saw in wages,” assured Dan Murray, Senior Vice President of ATRI. “That was just sort of a new approach to compensate the drivers without necessarily raising wages.”

The decline in driver wages, according to Murray, comes from the trend of offering retention and starting bonuses as well as an uptick in entry-level driver on-boarding, as new truckers typically make less than more senior drivers.

Retention bonuses rose by more than 81% between 2018 and 2019, with the average starting bonus also increasing from $1,562 to $1,846 (18%), according to the analysis.

These bonuses are a panic-induced response to the driver shortage continuing on within the entire trucking industry, explained Sean McNally, spokesman for American Trucking Associations. The industry was short 60,800 drivers at the end of 2018, ATA estimates.

“These bonuses showed a recognition of the need to adequately compensate drivers by fleets, and that helped offset some of the economic softening toward the end of the year,” said McNally.

Still, ATRI’s report indicates that driver wages are likely to see a huge boost during 2020 due to increased trucker demand throughout the COVID-19 pandemic. With stay-at-home orders causing many more Americans to shop online, and with the surge in demand for medical equipment, resources, and personal protective gear, truckers have been working harder–and for longer hours–than ever before.

“I think e-commerce is growing stably, but in 2020 it will see huge leaps,” Murray predicts. “The million-dollar question is, ‘Is it temporary, or have we made a permanent change to eating, sleeping, [and] breathing on the internet?’ We don’t know at this stage.”

Regardless, transportation and logistics group CliftonLarsonAllen’s Brandon Knight said fleets need to be keeping as close an eye as possible on their current expenses.

“Given the chaos and volatility of freight markets these days, it is more critical than ever that trucking fleets closely monitor their cost centers,” he said. “ATRI’s Operational Costs report is an important benchmarking tool for fleets of all sizes and sectors.”

As COVID Vaccine Becomes Available, Truckers Could be Among First to Receive It

February 9, 2021 by Levinson and Stefani Leave a Comment

Right now, many major pharmaceutical companies are cooperating with transportation firms in order to deliver the first rounds of COVID-19 vaccinations. Among the first people to receive such vaccines are those working in essential and critical jobs–which could include truck drivers.

Operation Warp Speed–the name for these early distribution efforts–have been slated to begin in mid-December. By the end of 2020, the country could see at least 40 million doses having been delivered, according to the Centers for Disease Control and Prevention.

The Advisory Committee on Immunization Practices held a virtual open meeting in an emergency webcast on December 1st in order to vote on a temporary recommendation as to who will receive the vaccine first.

The committee decided, in a 13-to-1 vote, that health care personnel and residents of long-term care facilities should be the first to get the vaccine during its Phase 1A release. They also voted that essential workers–potentially including truckers–would comprise the entirety of Phase 1B’s deployment.

Phase 1C will include adults over the age of 65 and adults with high-risk medical conditions.

Now, the advisory committee’s interim recommendation will go to Robert Redfield, CDC Director, for its final approval.

On the day of the webcast, American Trucking Associations sent letters to the White House, President-elect Joe Biden, the CDC’s Advisory Committee on Immunization Practices, and the National Governors Association in an effort to convince them to take into account the essential status of the trucking industry while the national vaccine distribution strategy is decided upon within the government. In the letters, ATA claimed that truckers must be considered critical infrastructure workers and be among the first vaccinated.

“As the trucking industry is called upon to deliver vaccines across the country, it is imperative that truck drivers have prioritized access to the vaccine to minimize the potential for supply chain delays and disruptions,” said Bill Sullivan, ATA Executive Vice President for Advocacy, in the letter. “Our nation’s efforts to successfully confront the COVID-19 pandemic depend on the resilience and integrity of the transportation network. As we saw at the outset of the pandemic, when supply chains are disrupted, consequences are fast to follow.”

The U.S. Department of Transportation has been meticulously preparing for the safe and efficient transportation of the vaccine, once it is approved by the Food and Drug Administration, in order to avoid said consequences.

“The Department has laid the groundwork for the safe transportation of the COVID-19 vaccine and is proud to support this historic endeavor,” said Elaine Chao, U.S. Transportation Secretary.

UPS Inc., DHL, and FedEx Corp. have also said that they are already establishing their distribution plans, as are many other major transportation providers. Logistics companies that will need to transport the vaccine have been building new cold storage facilities where possible in order to have enough space for the vaccine.

Former truck driver, current trucking industry expert, and University of Minnesota-Morris economist and professor, Stephen Burks, who is also a recent COVID-19 survivor, maintains that it is imperative for truck drivers to be among the first to receive the vaccine.

“Medical personnel taking care of COVID patients would be the first in line, and that would make perfectly good sense,” he said. ”And there are essential workers, such as truck drivers and grocery store workers, who have to be interacting with people to make the basics of the economy go on, even when we have a lockdown. Truck drivers count in this group of essential workers.”

Burks explained that he feels positively in regards to the trucking industry and logistics industry’s plans that will hopefully allow for the speedy and efficient transportation of the vaccine to wherever it is needed.

“I am expecting some glitches, but I would expect [that] overall, it will mostly work,” he said. “It’s going to be tricky, especially for the Pfizer vaccine. The problem is to get through the next six months or eight months. After that, we’ll be in a world that will be relatively plentiful with vaccines. We’ve got to get through the summer. Will we substantially get the job done? I am hopeful.”

In regard to these truckers receiving the vaccine early, the panel is holding meetings this month while the vaccines go through the federal approval process in order to make its final decisions.