News

A Final Rule issued today by the Federal Maritime Commission establishes new requirements for how common carriers and marine terminal operators (MTOs) must bill for demurrage and detention charges, providing clarity on who can be billed, within what timeframe, and the process for disputing bills.

A key provision of this rule determines that demurrage or detention invoices can only be issued to either: (1) the person for whose account the billing party provide ocean transportation or storage of cargo and who contracted with the billing party for the ocean transportation or storage of cargo; or (2) the “consignee,” defined as “the ultimate recipient of the cargo; the person to whom final delivery of the cargo is to be made”. Demurrage and detention bills cannot be issued to multiple parties simultaneously.

The rule also requires vessel-operating-common carriers (VOCCs) and MTOs to issue detention and demurrage invoices within 30 calendar days from when charges were last incurred. Non-vessel-operating common carriers must issue demurrage and detention invoices within 30 calendar days from the issuance date of the invoice they received.

Billed parties have at least 30 calendar days to make fee mitigation, refund, or waiver requests. If a timely filed request is made, the billing party must attempt to resolve the matter within 30 calendar days, unless both parties agree to a longer timeframe.

The new rule will advance the Commission’s goal of promoting supply chain fluidity by ensuring a clear connection between the failure to pick-up cargo or return equipment in a timely manner and the appropriate fee. The rule ensures that billed parties understand the demurrage or detention invoices they receive by requiring certain identifiable information be included by the billing party on the invoice. Failing to include any of the required information in a detention or demurrage invoice eliminates any obligation of the billed party to pay the applicable charge. Of course, if an invoice does comply, a charged party does have an obligation to pay charges billed. The new rule will provide relief to parties who should never have received a bill for detention or demurrage.

Most of the rule takes effect on May 26, 2024. The “Contents of Invoice” section 541.6 involves information collection and must be approved by the Office of Management and Budget. The Commission will announce the effective date of section 541.6 once approved.

Today, American Trucking Associations’ Intermodal Motor Carriers Conference hailed the Federal Maritime Commission decision upholding a previous ruling that ocean carriers violated federal law by requiring trucking companies to use specific intermodal chassis providers when moving containers.

“The FMC has now confirmed that the actions of these ocean carriers are a clear violation of federal law and must stop,” said IMCC Executive Director Jonathan Eisen. “IMCC and ATA have been fighting this conduct by foreign-owned ocean carriers for more than a decade, so this ruling has been a long time coming.”

IMCC filed its complaint against the Ocean Carrier Equipment Management Association, Consolidated Chassis Management and the world’s largest ocean carriers with the FMC in 2020, alleging, among other things, that they have denied motor carriers the ability to choose their provider when obtaining this essential equipment, leading to unjust and unreasonable prices for trucking companies. Yesterday’s action by the full FMC upholds the 2023 decision of an FMC administrative law judge that this conduct violated the Shipping Act. 

“With details to be finalized by the ALJ, hard-working American trucking companies will now be able to choose their chassis providers, rather than being taken advantage of by a cartel of overseas shipping lines,” Eisen said. “By affirming motor carriers’ right to chassis choice, the FMC has taken action to reduce supply chain delays and cut costs for motor carriers and consumers.”

Extreme winter weather has caused the Port Authority of NY/NJ ("PANYNJ") to close ALL five container terminals* for the entire day today. As a result, TRAC Intermodal will waive today's chassis rental fees, provided the chassis is returned to a TRAC Start/Stop location in the NY/NJ Metro area the first day any of the terminals reopens. 

There is no need to submit any documentation. The waiver of the daily rental fee will be applied as a credit to your invoice, subject to the following:

• The chassis must have been out-gated from a TRAC Start/Stop location in the NY/NJ Metro area at least one business day prior to the day the terminals are closed;
• The credit will be applied only with respect to each business day that PANYNJ closes all five terminals for the entire day (i.e., not a partial day);
• The credit will be for the day all five terminals are closed and will be in the amount of the daily rental charge that would otherwise accrue with respect to the day of closure;
• The credit will not accrue with respect to holidays or weekends; and
• The credit does not apply to chassis on-hire under term lease agreements.

*PANYNJ container terminals: Port Newark Container Terminal; Maher Terminals; APM Terminals; and Port Liberty New York & Bayonne Terminals. 

Thank you for your continued support of the TRAC Metro Pool.

New York

​**** ALL Commercial Travel restrictions cleared***

·      I-87 between exit 24 (Albany - Montreal - I-90 East - I-87 North) and the New York City Line - Major Deegan Expressway (I-87)

·      Berkshire Connector from the Thruway (I-87) mainline to the Massachusetts State Line (I-90)

·      New England Thruway (I-95) from the Bruckner Expressway (I-95) to the Connecticut State Line

·      Cross Westchester Expressway (I-287) from the Thruway (I-87) to the New England Thruway (I-95)

·     I-84 from Connecticut State Line and Pennsylvania State Line 

Pennsylvania 

​**** ALL Commercial Travel restrictions cleared***

**ACTIVE**

 

Connecticut

A travel ban for all tandem tractor trailers and empty tractor trailers is in effect on all limited access highways in Connecticut

ConnDOT: Crash (Jackknifed) on I-91 Southbound between Exits 23 and 22S. The right and center lanes are closed.

New Jersey

The commercial vehicle travel restriction active or the following highways in both directions: 

 

• I-78 (entire length) 

• I-80 (entire length)

• I-280 (entire length)

• I-287 (entire length)

• Route 440 (between I-287 to the Outer Bridge Crossing) 

• I-195 (entire length)

• I-295 (Pennsylvania border/Scudder Falls Bridge to Exit 60 at I-195) 

The commercial vehicle travel restriction applies to: • All tractor trailers (exceptions as listed in the Administrative Order) • Empty straight CDL-weighted trucks • Passenger vehicles pulling trailers • Recreational vehicles • Motorcycles.

Washington, D.C. – The American Transportation Research Institute today released its 13th annual list highlighting the most congested bottlenecks for trucks in America. The 2024 Top Truck Bottleneck List measures the level of truck-involved congestion at over 325 locations on the national highway system.  The analysis, based on an extensive database of freight truck GPS data, uses several customized software applications and analysis methods, along with terabytes of data from trucking operations to produce a congestion impact ranking for each location.  ATRI’s truck GPS data is also used to support numerous state and federal freight mobility initiatives.  The bottleneck locations detailed in this latest ATRI list represent the top 100 congested locations, although ATRI continuously monitors more than 325 freight-critical locations. For the sixth year in a row, the intersection of I-95 and SR 4 in Fort Lee, New Jersey is once again the Number One freight bottleneck in the country.  The remaining Top 10 bottlenecks include:

2. Chicago: I-294 at I-290/I-88 3. Chicago: I-55 4. Houston: I-45 at I-69/US 59 5. Atlanta: I-285 at I-85 (North) 6. Atlanta: I-20 at I-285 (West)

7. Los Angeles: SR 60 at SR 57 8. Houston: I-10 at I-45 9. Atlanta: I-285 at SR 400 10. Nashville: I-24/I-40 at I-440 (East)

“Traffic congestion on our National Highway System inflicts an enormous cost on the supply chain and environment, adding $95 billion to the cost of freight transportation and generating 69 million metric tons of excess carbon emissions every year,” said ATA President and CEO Chris Spear. “The freight bottlenecks identified in this report provide an actionable blueprint for state and federal transportation officials on where to invest infrastructure funding most cost-effectively. Increasing freight efficiency should be a top priority for the U.S. DOT, and alleviating these bottlenecks would improve highway safety, protect the environment and support interstate commerce.” For access to the full report, including detailed information on each of the 100 top congested locations, please visit ATRI’s website here.  ATRI is also providing animations created with truck GPS data for select bottleneck locations, all available on the website.

New Jersey DOT Restrictions for Tuesday, February 13th

NJ DOT considering a commercial vehicle ban due to the forecasted weather. Be prepared for the ban.

NJMTA will notify members as soon as we are informed of any restrictions.

Visit nj511 for additional updates. NJMTA will also post NJ travel restrictions on our Facebook page.

Pennsylvania DOT Restrictions for

Tuesday, February 13th

In response to the forecasted winter weather, the Pennsylvania Department of Transportation (PennDOT) is planning to implement temporary commercial vehicle restrictions tomorrow, February 13th, across Pennsylvania. Please see the below listing of planned restrictions and visit 511pa.com for the most up-to-date information.

PA Tiered Restriction Chart

Tier 2 Vehicle Restriction – No Empty or Loaded Double CMVs will be ACTIVE as of Tuesday, 02/13/2024 at 03:00 AM for the following route(s):

• I-78
• I-80 from I-79 to Exit 173
• I-99, US 22 from I-78 to NJ Line
• PA 33

Tier 4 Vehicle Restriction – Full CMV Restriction will be ACTIVE as of Tuesday, 02/13/2024 at 03:00 AM for the following route(s):

• I-80 from Exit 173 to NJ Line
• I-81 from I-78 to NY Line
• I-84
• I-180
• I-380

The American Trucking Associations announced that 27 trucking industry and law enforcement officials have been named to the ATA Law Enforcement Advisory Board.

“Now in its fourth year, the Law Enforcement Advisory Board continues to deliver results on a whole host of issues impacting highway safety. This group’s engagement with state officials and local, state and national law enforcement organizations has helped secure hundreds of millions of dollars in federal grant funding to expand truck parking capacity across the country,” said ATA President and CEO Chris Spear. “Security, including cargo theft and cybercrime, has now been added to ATA’s strategic priorities, further demonstrating the ATA Federation’s commitment to our partners in law enforcement.”  
 
Formed in 2021, the ATA Law Enforcement Advisory Board advises the ATA Federation on strategies to grow and strengthen relationships between the trucking industry and law enforcement organizations across the country. Comprised of ATA members with previous experience in federal, state or local law enforcement, as well as current and retired law enforcement officials, this year’s LEAB has 27 members with a total of 685 years of law enforcement experience. 
 
For the coming year, the LEAB will be chaired by Mark Savage, director of connected truck solutions at Drivewyze Inc. Steve Dowling, director of enterprise safety training at Covenant Logistics Group Inc., and Steve Keppler, co-director of Scopelitis Transportation Consulting, will serve as the board’s first and second vice chairmen respectively. 
 
“Throughout my career spanning both law enforcement and trucking, I’ve come to appreciate the synergy that exists between these two professional communities. When we combine forces, we have an enormously positive impact on highway safety, and I’m honored to now assume this role to foster that kind of cooperation at the highest levels,” Savage said. 
 
The members of this year’s board are: 

• Andrew Beckett, Amazon
• Christopher Vinson, Midlothian (Texas) Police Department  
• Derek Barrs, HNTB Corp.  
• Fred Fakkema, Zonar Systems Inc.  
• Gary McCarthy, Aurora Innovation Inc.  
• Jake Elovirta, Commercial Vehicle Safety Alliance  
• Janice Mulanix, PrePass Safety Alliance  
• Jeff DeVere, Washington Trucking Associations  
• Jeff Ferber, J.B. Hunt Transport Services Inc.  
• Jeff Tippit, La Porte (Texas) Police Department  
• John Rigney, Pennsylvania Motor Truck Association  
• John Samis, Drivewyze Inc.  
• Jonathan Beshears, J.B. Hunt Transport Services Inc.  
• Keith Eoff, J.B. Hunt Transport Services Inc.  
• Malik A Henderson, PrePass Safety Alliance  
• Marc Nichols, Drivewyze Inc.  
• Mark Savage, Drivewyze Inc.  
• Michael Martin, Old Dominion Freight Line Inc.  
• Parker Harrison, Old Dominion Freight Line Inc.  
• Richard Elliott, Safeway Transportation LLC  
• Rocco Marrari, EBE Technologies  
• Ron Cordova, Zonar Systems Inc.  
• Steve Dowling, Covenant Logistics Group Inc.  
• Steve Keppler, Scopelitis Transportation Consulting  
• Tim Cardwell, High Intensity Drug Trafficking Areas   
• Todd Armstrong, Illinois State Police  
• Will Cole, Montana Trucking Association    

“Our mission is to develop processes that are mutually beneficial to the safety goals that the trucking industry and law enforcement share,” said Dowling. “The incredible breadth and depth of experience represented on this board will serve the entire motoring public well as we partner together to increase safety across our nation’s highways.” 
 
“Safety cannot be advanced by enforcement or industry alone; it takes engagement, collaboration and partnerships,” said Keppler. “The LEAB represents an unbelievably valuable resource to our collective safety goal of reducing crashes on our highways, and I am humbled and honored to be a part of it.” 

The U.S. Department of Transportation Federal Motor Carrier Safety Administration (FMCSA) today expressed strong support for trucker protections against predatory towing fees in a comment filed on the Federal Trade Commission’s (FTC) proposed rule banning junk fees. FMCSA’s comment outlines concerns with predatory towing junk fee practices that significantly increase costs for commercial motor vehicle owners and operators. The comment also offers support for the proposed ban on hidden and misleading fees and urges the FTC to consider additional restrictions against the types of unnecessary and excessive mandatory junk fees plaguing truckers. FMCSA’s filing is part of President Biden’s whole-of-government approach to lower costs for Americans by banning hidden junk fees. 

“When a truck driver’s vehicle is towed, they can’t earn a living until they get it back — leaving them vulnerable to predatory junk fees from towing companies,” said U.S. Transportation Secretary Pete Buttigieg. “We support FTC’s efforts to stand up for truckers by acting to ban junk fees and prevent predatory towing fees that can cause significant financial harm.”  

“Predatory towing negatively impacts consumers, including commercial motor vehicle drivers and trucking companies. It is detrimental to the overall health of the trucking industry, and it's time to end excessive rates, surcharges and other unfair fees associated with predatory towing,” noted FMCSA Acting Deputy Administrator Sue Lawless.  

Towing can occur at the request of the trucker after a breakdown, or at the request of law enforcement or a property owner if the vehicle has been parked illegally. In either case, towing causes substantial distress for truckers who are unable to earn a livelihood until they can regain access to their vehicle. Once their vehicle has been towed, truckers are in a very vulnerable position and highly susceptible to predation. FMCSA is concerned that predatory towing companies can and do use their possession of the vehicle as leverage to prey upon truckers who are in no position to push back.  

While there are a wide range of predatory tactics associated with towing, a number of them center on the mandatory or otherwise unavoidable fees that towing companies charge. FMCSA’s comment outlines several potentially unfair or deceptive fee practices used by predatory towers. These include hiding fees until the tow is completed, charging for unnecessary or worthless services, and imposing an excessive number of fees for excessive amounts. These predatory fees can add up to thousands of dollars for truckers. 

In October, the FTC proposed a ban on junk fees that would prohibit businesses from charging hidden and bogus junk fees by requiring them to include all mandatory fees when quoting a price. FMCSA believes that predatory towing fee practices fall within the purview of FTC’s proposed rule, which would greatly benefit truckers if finalized. In its comment to the FTC, FMCSA expresses strong support for the important protections and offers suggestions for additional restrictions that would further help protect truckers from predatory towing junk fees. These suggestions include:  

• Ban junk fees for unnecessary goods or services: FMCSA suggests adding a provision that prohibits companies from charging any fee for an ancillary good or service that has no value, costs nothing extra to provide, or that reasonably would be assumed to be included in the upfront price of the good or service. For example, towing companies often charge “equipment fees” for using equipment that they already own and use routinely to provide the towing service.     
• Prohibit or restrict excessive junk fee practices: FMCSA encourages the FTC to consider prohibiting or imposing restrictions on excessive fee practices. These practices include charging an excessive number of fees, charging excessive amounts for a fee, or charging variable fees for fixed costs. The provision on excessive fees could focus on consumers who have little to no ability to avoid, negotiate, decline, anticipate, or limit the number or cost of the fees, or consumers who are vulnerable, in distress, or otherwise limited in choice by their circumstances.   
• Treat each illegal junk fee as a violation: FMCSA suggests that the final rule treat each illegal junk fee as a separate violation and that the rule expressly prohibit companies from charging or collecting mandatory fees that are not appropriately disclosed, are not included in the total price, and/or cannot be fully calculated upfront.  

FMCSA’s comment is available at: https://www.transportation.gov/briefing-room/ftc-fmcsa-comment-nprm-r207011

The filing is part of USDOT’s effort under the Biden-Harris Administration and Secretary Buttigieg to significantly expand consumer rights in transportation, including by limiting and banning hidden junk fees. USDOT is currently pursuing rules that would: 

• Ban family seating junk fees and guarantee that parents can sit with their children for no extra charge when they fly. Before President Biden and Secretary Buttigieg pressed airlines earlier this year, no airline committed to guaranteeing fee-free family seating. Now, four airlines guarantee fee-free family seating, as the Department is working on its family seating junk fee ban proposal. 
• Ensure fee transparency so consumers know the cost for flying with a checked or carry-on bag and for changing or canceling a flight before they buy a ticket and can make informed decisions, save money, and avoid surprises at checkout. 
• Make passenger compensation and amenities mandatory so that travelers are taken care of when airlines cause flight delays or cancellations. 
• Ensure that airlines promptly provide a refund when they cancel or significantly change a flight without rebooking the passenger.  
• Guarantee refunds for passengers for significantly delayed bags and for services they paid for that are not actually provided, such as broken Wi-Fi. 

### 

The Federal Motor Carrier Safety Administration’s (FMCSA) mission is to prevent crashes, fatalities, and injuries involving commercial trucks and buses. FMCSA develops safety and regulatory standards for commercial driver’s licenses; analyzes data; sponsors research; and promotes enforcement and education. FMCSA partners with nonprofit organizations, local and State governments, and other stakeholders to support innovative commercial driver training, safety inspections, and enhanced compliance and enforcement initiatives. 

In the case before the United States Court of Appeals for the First Circuit, a collective of long-haul truck drivers, led by Juan Carlos Montoya, contended that their employer, CRST Expedited and CRST International (collectively referred to as "CRST"), violated the Fair Labor Standards Act (FLSA) by not compensating them for time spent in a truck's sleeper berth exceeding eight hours within a 24-hour period. CRST operates a "team driving model" where two drivers alternate between driving and resting in the sleeper berth of the truck, allowing the vehicle to be in near-continuous motion. The drivers argued that the time spent in the sleeper berth was "on duty" time, as defined by Department of Labor regulations, and thus should be compensated as work. The district court granted summary judgment for the drivers, determining that such time was indeed compensable work. The Court of Appeals affirmed this decision, holding that the time drivers spend in the sleeper berth that exceeds eight hours per day is compensable work under the FLSA. The Court reasoned that the drivers' confinement to the sleeper berth, the importance of continuous travel to CRST's business model, and the potential burdens placed on the drivers suggest that the time predominantly benefits the employer. Furthermore, the Court interpreted the Department of Labor regulations to allow an employer to exclude a sleeping period of no more than eight hours from hours worked in a 24-hour period.

CLICK HERE for more on the ruling.

CLICK HERE for CCJ article on the issue.

Will this new rule affect your business

Last week, the Biden Administration issued new rules with the intent to crack down on the misclassification of independent contractors. While this is a headline grabbing event, it may just be political posturing.

Most states already have rules in place to combat misclassification. In New York, we have the Freelance isn’t Free Act, The Transportation Fair Play Act, and the Construction Fair Play Act. In California, the rules are so restrictive that ride share companies had to depend on a referendum to order to save their business models. (And it worked as the general public loves ride share).

So why does the federal government make rules that are difficult to enforce? In my opinion, I think they recognize that there are many “bad actors” who are exploiting workers. I have personally represented companies that I know cannot pass any “IC” test. This was many years ago and those companies no longer exist. However, what I have seen lately is new clients who are attempting to follow the rules but simply cannot due to the profit margins and/or the competition being able to operate is a cheaper manner.

It is worth noting that 2024 is an election year and one of the hot topics are workers’ rights and the ability to unionize. So, this new rule is a great campaign pitch for those who depend on the union vote.

What is the economic reality test?

·     Control: Does the employer have significant control over the worker’s work schedule, tasks, and methods?

·     Investment: Who provides the tools and equipment necessary for the work?

·     Opportunity for profit or loss: Does the worker have the ability to control their own income and expenses?

·     Permanency of the relationship: Is the worker part of an ongoing business operation, or are they just hired for a specific project?

·     Skill and initiative: Does the work require specialized skills or does the worker have significant autonomy in how they perform their tasks?

Essentially, if the worker is economically dependent on just one company, they will be considered employees. Contemporaneously, the Feds may look at whether or not the company is dependent on the workers in order to operate or if the company and the contractor are in the “same type of business.”

So how do you mitigate your exposure? First, you need a solid contract. Secondly, you need to adhere to a “Best Practices” that is truly followed. And lastly, you need the support and knowledge from people that have the experience and expertise to help guide your company through the bureaucratic gauntlet.

The biggest question is: Does your business model meet the criteria of the government and the states that your company operates in?

For more information and guidance, go to www.consultechclaims.com or call 518-689-2470 x140