Corporate News

FDA Releases Final Rule on Sanitary Transportation of Food
Apr 05, 2016

On Tuesday, April 5, 2016, the Food and Drug Administration released the long-awaited final rule for the Sanitary Transportation of Food. The rule, which is 283 pages long, was mandated by the Food Safety Modernization Act, and will establish guidelines for custody of food products at every stage in the supply chain.

TIA filed comments on the proposed rule in 2014, with the goal of improving that proposal to adequately reflect the important role that third-party logistics companies play in the global food supply chain. At first review, the most immediate change from the proposed rule to the final rule is the treatment of brokers as shippers. This change may have a significant impact on TIA members’ responsibilities when managing or moving temperature-controlled food products.

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Lawsuit Filed Against ELD Final Rule
Dec 15, 2015

The Owner-Operator Independent Driver’s Association (OOIDA) has filed initial arguments against the Federal Motor Carrier Safety Administration (FMCSA) final rule mandating Electronic-Logging Device (ELD) use for all commercial motor vehicles (CMV). OOIDA argues in its appeal that ELD use does not advance or improve safety, it’s arbitrary and capricious and violates the Fourth Amendment for unlawful searches and seizures. OOIDA filed the legal brief with the U.S. Court of Appeals for the 7th Circuit, the same court that in 2011 vacated FMCSA’s prior rule related to electronic logs, a limited mandate for certain noncompliant carriers. OOIDA led that challenge as well. OOIDA also listed other arguments in the legal brief requesting the court to vacate the rule:

  • That the mandate fails to comply with a congressional statute requiring ELDs to accurately and automatically record changes in drivers’ duty status. ELDs can only track vehicle movement and must rely on drivers to manually input changes in duty status, making the devices “no more reliable than paper logbooks for recording hours of service compliance,” OOIDA says.
  • That the current mandate continues to fail to ensure that ELDs will not be used to harass drivers — FMCSA’s own failure to provide for this requirement of existing law was the reason the 7th Circuit vacated the prior e-logs rule in 2011. FMCSA responded to such requirements by in part developing the parallel Driver Coercion rule and opening up new whistleblower architecture for driver complaints, and penalties for violating carriers.
MEM Terminal Expansion
May 15, 2015

Olive Branch MS – Furthering the PLC expansion into the Southern Region, this newly purchased terminal and property will serve as the epicenter of Hub & Spoke activities in the Southeast. (View Map) In addition, this becomes the new home of PLCX – - PLC’s over-the-road expedited trucking division! Footwear, retail, and beverage freight volumes continue to grow in this Memphis locale. This 90,000 sq. ft. terminal on nearly 10 acres will be utilized in support of the account business. 

Truck Driver Shortage
Apr 02, 2015

Bob Costello, the American Trucking Associations’ (ATA) chief economist, says driver turnover at truckload fleets remained “very high” in the fourth quarter of 2014.

Turnover at large truckload fleets — which is a barometer of the driver shortage — fell one percentage point to an annualized rate of 96 percent in the fourth quarter, while turnover at smaller truckload carriers — those with less than $30 million in annual revenue — rose one percentage point to a rate of 95 percent in the fourth quarter.

Meanwhile, the ATA spokesman said new information shows the nation is now short more than 35,000 truck drivers.

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Long Beach Port Update
Jan 15, 2015

Hundreds of longshore workers plan to take to the streets on January 22 to protest their employers’ decision to suspend vessel unloading night shifts at the Los Angeles and Long Beach ports. Members of the International Longshore and Warehouse Union are planning a community march down Harbor Boulevard in San Pedro to object to the Pacific Maritime Association’s move to not unload ships at night in order to move containers at congested terminal yards. 
This comes at a time when the ports of Los Angeles and Long Beach, considered the nation’s busiest seaport complex handling 40 percent of U.S. imports, is experiencing epic congestion due to the arrival of bigger ships carrying more cargo, the lack of available chassis, which are trailers that hitch to trucks that are needed to haul containers, the labor talks and other issues. 

3PL Acquisition – Jamesburg NJ
Jan 05, 2015

PLC runs a full-service operation in our Jamesburg NJ terminal. Services include Trucking, Air Freight, Import/Export, and a full menu of 3PL offerings that include Warehousing, Value Add, and Fulfillment on behalf of our shoe, wearing apparel, and retail clients. The Company recently acquired a 3PL operation that provides services to the food industry in the form of dry goods and cold storage. The acquisition enlarges PLC’s footprint in NJ to 210,000 sq. ft. and a total of 49 dock-high doors. Additionally, we have well over 12,000 rack spaces to utilize along with a two-room cold storage capacity of over 20,000 sq. ft. This investment cements PLC’s standing in the logistics marketplace and helps diversify our portfolio along the way.

CEO Pacific Logistics Corp receives Above and Beyond and Patriotic Employer Award
Sep 02, 2014

California Employer Support of the Guard and Reserve provided belated recognition, in the form of the Employer Support of the Guard and Reserve “Above and Beyond” award to Doug Hockersmith, CEO of Pacific Logistics Corp, for his personal and financial support for the 2013 family/holiday Day event of the US Army Reserve’s 349th Combat Support Hospital.

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Long Beach Port Update
Jul 01, 2014

The current contract between the International Longshore and Warehouse Union and employers is due to expire tomorrow, July 1, but nearly all observers are expecting talks to continue. The contract actually expires at 5:00 p.m.,  but observers say they don’t expect a deal will be reached until the middle of July and that ports will continue to operate while the labor negotiations continue.

Diesel Rises to $3.951; Price Is Highest Since September
Feb 04, 2014

Diesel rose for a second straight week, gaining 4.7 cents to $3.951 a gallon, led by big spikes in the Northeast, the Department of Energy reported.

The national increase, which followed a 3.1-cent upturn last week, left trucking’s main fuel at its highest level since September. The gain also was the biggest since then.

Oil prices topped $98 last week, the highest level this year.

Study: New rest-time rules may drive up trucking costs
Jan 12, 2014

KNOXVILLE, Tenn. — Nearly three out of five companies responding to a survey by the University of Tennessee’s Global Supply Chain Institute think new federal regulations mandating rest time for truckers could lead to greater transportation costs.
The new hours-of-service rules from the U.S. Department of Transportation’s Federal Motor Carrier Safety Administration, which went into place July 1, are designed to improve driver safety by reducing truck driver fatigue.
The rules, which reduce the maximum number of weekly driving hours to 70 from 82 and mandate a 30-minute rest break prior to the eighth hour on duty, also could slow the transportation of products or force companies to add more truckers to the road, the researchers said.
The study surveyed 417 companies and found that 58% of expected an increase in their carrier rates. They anticipated passing on the costs to their customers in the long term.
This is not a realistic solution, said Mary Holcomb, an associate professor and the study’s author.
“In this economy, companies won’t want to damage the relationships with their customers by raising prices,” Holcomb said. “Carriers may be unable to absorb these increased costs, so companies will have to improve their operations in order to minimize their impact.”
Holcomb is the Niedert Supply Chain Fellow in the University of Tennessee’s Department of Marketing and Supply Chain Management, which is based in the College of Business Administration.
Holcomb’s study identifies ways companies could mitigate those costs. She noted that some of those businesses are incorporating new initiatives.
“Many of them also will be a doubling down on efforts already underway,” she said.
Efforts to transport products more efficiently and control costs include the following:
* Extending lead time for some customers.
* Increasing customer delivery windows.
* Improving shipment consolidation.
* Increasing the use of “drop and hook,” which involves dropping a loaded trailer at a customer’s facility and hooking up and leaving with another loaded trailer.
The research also uncovered actions that many companies have yet to consider. Fewer than 5% of the polled companies planned to reduce costs by consolidating shipments with other companies.
“The logistics of coordinating shipping across companies is often too complex to sustain,” said Dean Vavalides, logistics analyst for Pilot Flying J who collaborated on the study. “It just requires too much synchronization.”
Holcomb added she was surprised to discover that so few companies plan on shifting transportation methods from truck to rail although research showed that long-haul moves have been the most impacted by the hours-of-service rule change.
Switching the long-haul moves from truck to rail could reduce the arrival time, she said.
The university’s Global Supply Chain Institute will conduct a follow-up study in mid-2014 on the long-term impact of the hours-of-service rules.
Holcomb’s concerns about the new regulations were shared by Duane Long, chairman of the Raleigh, N.C.-based Longistics.
Long called on Congress to support the TRUE Safety Act, a bill introduced by Reps. Richard Hanna, R-N.Y.; Tom Rice, R-S.C.; and Michael Michaud, D-Maine; to stay the new rules until an independent review can be completed.
“Drivers, motor carriers and researchers have identified and documented a clear and wide disparity from FMCSA’s rhetoric and trucking’s new, more costly operating reality,” Long said.
“Congress should postpone the effective date of these new provisions until the Government Accountability Office can objectively evaluate the data and methodology used by FMCSA,” he said.