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LogisticsLogistics

Justices Hear Port Case; USPS Safety Risks; Trucking’s New Tech

By Liz Young

 

Shipping containers at the Port Jersey Marine Terminal at the Port of New York and New Jersey. PHOTO: JUSTIN LANE/EPA-EFE/SHUTTERSTOCK

The Supreme Court is weighing whether an anti-racketeering agency at the East Coast’s busiest port has outlived its purpose. Justices on Wednesday heard arguments on whether New Jersey can unilaterally withdraw from a bistate compact with New York that established the Waterfront Commission of New York Harbor. The WSJ’s Jess Bravin and the Logistics Report’s Paul Berger report the case will determine the future of crime-fighting and labor regulations on the docks. New Jersey and shipping industry groups say the agency imposes needless costs and red tape that impairs business at the port. New York counters that the commission is as relevant as ever. The commission has helped bring down dozens of members of organized crime as well as union officials in the International Longshoremen’s Association. Federal law enforcement officials say the commission continues to be helpful in policing organized crime on the docks. A decision is expected before July.

 

Quotable

“If New Jersey prevails, it would effectively hand the keys to the port to the organized crime elements that we have worked so tirelessly to overcome.”

— Walter Arsenault, the retired executive director of the Waterfront Commission of New York Harbor
 
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Government & Regulation

Trucks at a United States Postal Service processing and distribution center in Washington, D.C. PHOTO: MICHAEL REYNOLDS/EPA-EFE/SHUTTERSTOCK

The U.S. Postal Service, under pressure on costs, pushed contractors to meet aggressive delivery schedules with deadly results. A WSJ analysis of government data found trucking companies USPS hired have been involved in at least 68 fatal crashes that killed 79 people in the past three years, according to police crash and inspection records. The WSJ’s Christopher Weaver reports USPS, under pressure from falling revenue, hired companies at cut-rate prices to help it compete with rivals United Parcel Service and FedEx. The Postal Service required contractors to meet aggressive schedules and then looked the other way when they neglected highway safety, including Transportation Department rules limiting how many hours truckers can drive. Nearly 50 contractors that moved mail for USPS were on probation with DOT due to poor safety records. USPS says it plans to revamp its contracting process later this year and begin requiring contractors to meet specific DOT requirements.

 
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Transportation

ArcBest's new Vaux freight-management system. PHOTO: ARCBEST

New technology aims to cut down the time truckers spend waiting to unload freight at warehouses. Trucking company ArcBest has created a freight-management system called Vaux that allows warehouse workers to unload a full trailer or to push freight into a trailer in one movement. The WSJ Logistics Report’s Liz Young writes that the technology has big implications for truck drivers who frequently have to spend more than an hour waiting for other trailers to be unloaded before it is their turn to pick up and drop off freight. ArcBest says the new system can reduce truck loading times to 5 minutes from the usual 45 minutes. That could dramatically reduce dwell time for truckers and help alleviate some supply-chain bottlenecks. One manufacturer that has been testing Vaux says the system has also helped reduce the amount of inventory that breaks during the loading process. ArcBest, a truckload and less-than-truckload carrier, has added more logistics services in recent years in response to customer demand.

 
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Number of the Day

45.2

The Institute for Supply Management index for Supplier Deliveries in February, down 0.4 percentage point since January in a sign that deliveries are speeding up.

 

In Other News

U.S. factory output contracted for the fourth month in a row. (WSJ)

Demand for U.S. workers shows signs of slowing. (WSJ)

Global shipping executives are wrestling with plunging exports​, falling freight rates and mounting suspense over whether the industry is headed for a price war. (WSJ)

Economic activity in China expanded sharply for a second straight month. (WSJ)

Fewer U.S. companies consider China a top investment destination, according to a survey by the American Chamber of Commerce in China. (WSJ)

A group of large European Union countries is threatening to block a plan by Brussels to effectively ban the internal combustion engine. (WSJ)

A passenger train crashed into a freight train in Greece on Tuesday, killing at least 38 people and injuring more than 80. (WSJ)

Ohio senators have proposed legislation to add new federal safety regulations for railroads and increase fines for wrongdoing. (WSJ)

Delta Air Lines pilots ratified a new contract that provides 34% pay increases over a four-year agreement. (WSJ)

General Motors is cutting roughly 500 salaried employees as the auto maker seeks to cut costs and prepares to roll out several new models this year. (WSJ)

Kuehne + Nagel International is targeting double-digit earnings growth as part of its strategic plan until 2026. (Dow Jones Newswires)

Norway’s Höegh Autoliners is buying a leased pure car and truck carrier from Scorpio Group of Monaco for more than $34 million. (Lloyd’s List)

Zim's Gold Star Line is forming a Vietnam shipping venture with Hai An Transport. (Journal of Commerce)

Nestle is closing its factory in Myanmar amid turmoil in the country. (Nikkei Asia)

A fire at a Cleveland warehouse on Wednesday was the third explosion at a Northeast Ohio warehouse in recent weeks. (Cleveland.com)

Regional parcel carrier LaserShip/OnTrac named FleetPride CEO Mike Duffy its new chief executive. (Supply Chain Dive)

Instacart is launching a new delivery offering targeted at small business customers. (The Information)

 

About Us

Paul Page is editor of WSJ Logistics Report. Reach him at paul.page@wsj.com.

Follow the WSJ Logistics Report team: @PaulPage, @bylizyoung and @pdberger. Follow the WSJ Logistics Report on Twitter at @WSJLogistics.

 
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