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Who is responsible for what in shipping?

Free on Board (FOB), a shipment term, defines the point at which a buyer or a seller is responsible for the goods being transported. Purchase orders between buyers, sellers, and other parties set FOB terms. They also help determine ownership, transportation costs, and risk.

This centuries-old term for shipping has evolved into an important concept to determine the reliability and ownership. This is due to the internationalization of markets, technological advancements in logistics, communication, and distribution.

By specifying if goods are shipped FOB Origin, or FOB Destination (Facility Originated at), companies clearly define when and where they will bear the cost and risk associated with transportation. This has a significant impact on not only the price and how and when goods will be transported, but also on insurance, customs duties and legal disputes.

Takeaways

Free on Board (FOB), also known as free on board, is the term used to indicate when ownership of goods passes from the buyer to the seller. It also indicates who is responsible for any goods damaged or destroyed in transit.
FOB Origin means that the buyer assumes the risk as soon as the seller ships the item.
FOB Destination is the term used to describe the risk that the seller assumes until the goods are delivered to the buyer.
FOB terms affect inventory, shipping and insurance costs.

Xiaojie Liu / Investopedia

Understanding FOB Shipping

FOB is an internationally used shipping term. It can be applied to both domestic and foreign transactions. It is an agreement between buyer and seller that specifies the date when ownership and liability of the goods are transferred from the seller to buyer. FOB terms are usually included in shipping contracts and orders. They detail the time and place for delivery, payment methods, and who is responsible for freight costs and insurance.

The vendor and client agree on FOB conditions in the Purchase Order. While FOB status does not determine ownership (which is determined by the bill of sales or separate agreement), the status does indicate which party assumes responsibility at different points along the journey. The two main types are:

FOB Origin : The buyer is responsible for the goods once they leave the seller’s location. The buyer is responsible for all costs and risks incurred in the transportation process.
FOB Destination The seller retains responsibility until the goods reach the buyer’s location. The seller is responsible for all costs and risks incurred up to this point.

FOB conditions can affect inventory management, shipping rates, and insurance requirements, whether the transaction is domestically or internationally. It is important that shippers keep an eye on this, as costs have been rising and falling sharply in the last few years.

FOB Origin and FOB Destination

The International Chamber of Commerce (ICC) publishes Incoterms as the most common international trade terms. However, firms that ship goods to the U.S. are required to adhere the Uniform Commercial Code.

There are different legal definitions and rules for FOB that may vary from country to country. Therefore, parties to a contract should specify which laws will be used to govern a shipment.

Characteristics	FOB Origin	FOB Destination
Transportation costs	The buyer is responsible for transportation costs between the seller’s location and the final destination.	The seller is responsible for all transportation costs up to the point where the goods are delivered to the buyer.
Risks of Loss or Damage	Once the goods leave seller’s premises, the risk of loss or damages to the goods is transferred to the buyer.	The seller is responsible for any loss or damage until the goods are delivered to the buyer.
Shipping Arrangements	The buyer is responsible for shipping and handling, from the seller’s place of business to the final destination.	The seller is responsible for arranging shipping until the goods arrive at the buyer’s location.
Insurance	Typically, the buyer arranges and pays insurance.	In most cases, the seller pays and arranges for insurance.
Customs and import duties (International)	The buyer is responsible to pay import duties and taxes and for clearing customs.	The seller is responsible to pay import duties and taxes, and for clearing customs.
Price	The price is usually lower because it does not include the cost of transportation beyond the seller’s locality.	The price of the product is usually higher because it includes the cost of transportation up to the buyer’s location.
When is it Typically Used	Used for domestic shipments, or when the buyer is in control of shipping preferences.	Often used when shipping internationally or when the seller wishes to offer a more inclusive package.

FOB Advantages & Disadvantages

Benefits from FOB Origin

FOB Origin is more cost-effective for buyers because they can select their freight forwarder, and manage freight costs better. Buyers also have greater control over the shipping process, which allows them to better manage logistics and mitigate problems. Here are some additional benefits for both the seller and buyer:

Benefits	Buyers	Sellers
Cost Control	Control shipping, select carriers/routes that meet budget and timeline and potentially reduce costs.	Transfer the shipping costs and responsibilities of the buyer to them, simplify pricing and focus on your core business.
Risk Management	Choose insurance providers and coverage levels. Assume the risk of loss or damages from the origin.	Limiting liability for goods in transit will reduce claims and disputes over damaged or missing goods.
	Can streamline supply chain and coordinate directly with carriers to ensure timely deliveries.	Reduced complexity of shipping logistics and faster turnaround times. Focus on production.
Flexibility	Negotiate shipping costs and terms with the carriers directly.	Transfer goods directly at the origin point without having to navigate international shipping regulations.

Disadvantages FOB Origin

FOB Origin is more cost-effective for buyers because they can select their freight forwarder, and manage freight costs better. Buyers also have greater control over the shipping and logistics process, allowing them to better manage logistics and mitigate problems.

FOB Origin means that the buyer is responsible for all risks relating to damage, destruction and loss during transit, once the goods have been loaded onto the chosen transport mode at the origin point. This arrangement may be more expensive, especially if the shipment is large and travels a great distance. Solving any problems that may arise during transport can also take a lot of time for the buyer.

FOB Origin has another disadvantage: the buyer is responsible for all aspects of transportation. This includes finding a suitable carrier and negotiating rates. It also includes handling export documents and covering additional costs like insurance, customs clearing, and other logistical service.

FOB origin also poses risks to sellers. The quoted price excludes insurance and transportation costs. Therefore, the final cost to the buyer is often higher than FOB Destination. This can make a seller’s offer appear less competitive and impact sales volume.

Before agreeing to FOB Origin, buyers should carefully assess their ability to manage costs and transportation. Both parties must have a clear idea of their responsibilities, and maintain open communication during the shipping process.

Benefits to FOB Destination

FOB Destination is a way for sellers to improve customer service, as they are responsible for the goods up until delivery. This improves customer satisfaction and loyalty. Buyers do not assume ownership of goods until they are delivered. This allows them to inspect them before accepting them. Here are some additional benefits:

Benefits	Buyers	Sellers
Cost Control	Shipping costs are included in your purchase price.	Controlling shipping costs allows for possible bulk rate negotiations with carriers.
Risk Management	The seller is responsible for any loss or damage until the goods reach their destination. This reduces the buyer’s risks.	Maintain responsibility for goods while in transit.
Operation	Reduced administrative tasks for the buyer as the seller will handle shipping arrangements.	Streamlining shipping and delivery could lead to a quicker resolution of transit problems.
Convenience	The purchasing process is simplified with fewer logistical concerns. Goods are delivered directly to a buyer’s location.	Could improve customer satisfaction through end-to-end services.
Customer Service	Sellers are often better at customer service and support, and can handle any problems that may arise during shipping.	Increase the number of services you offer to buyers and build stronger relationships with them.

The Risks and Disadvantages Of FOB Destination

In this arrangement, the seller retains responsibility for the goods until the goods are delivered to the purchaser. The seller is responsible for any loss, damage or destruction that occurs during transit. This can have a negative impact on their reputation and profitability. The seller is responsible for resolving any issues that may arise during shipping. They may be required to replace or refund damaged goods.

The seller is also responsible for the freight costs, which are added to their total cost. In order to cover these costs, sellers may have to increase the price of the final product for the buyer. This can impact the seller’s ability to compete in the market as buyers may choose lower-priced options.

A seller may not be able record the sale until after the goods have been delivered to the buyer. This can have an impact on their accounting and cash flow, as there may be a time delay between the shipping of goods and receiving payment.

The seller may also face delays in transit if the goods have left the port of origin. This can raise concerns about their ability meet delivery deadlines, and is a major risk for FOB destination transactions. Sellers need to have contingency plans in place to deal with potential delays, and communicate effectively with buyers.

Before agreeing to FOB destination terms, sellers should assess their ability to absorb losses and manage shipping expenses. Both parties must understand their responsibilities, and keep open communication during the shipping process.

Accounting for FOB and Company

In FOB origin, the seller records the sales after the goods have been placed with the carrier for transport. For FOB destination, the seller completes its records of the sale once the goods reach their final destination. The buyer records an increase in inventory at this time.

Free on board Example

Imagine that the manager of Dara Inc., in New York City, orders 1000 electronic components from ABC Co. of Shanghai, China. The contract specifies FOB origin for the shipment. Dara Inc. wants to know the difference if they chose FOB Destination. Let’s go through them:

FOB Origin Examples

Seller’s Responsibilities:

ABC Co. prepares electronic components for shipment.
It loads the goods on a shipping vessel in the port of origin, Shanghai.
When the goods are delivered to the carrier, the seller’s responsibility is over.

Buyer’s Responsibilities:

Dara Inc. becomes the owner of the goods once they are loaded on the vessel.
It is responsible for ensuring that the goods reach their destination in New York City.
Dara Inc. covers all shipping costs, including freight, insurance and customs clearance.

FOB Destination Examples

Seller’s Responsibilities:

ABC Co. prepares electronic components for shipment.
It loads the goods on a shipping vessel in the port of origin, Shanghai.
The seller retains ownership of the goods until the goods reach the buyer in New York City.

Buyer’s Responsibilities:

Dara Inc. does not assume ownership of the goods until they are delivered to its warehouse in New York City.
It inspects the goods on arrival and reports any damage or issues.
Dara Inc. covers all shipping costs including freight, insurance and customs.

The specific needs of each party will determine the choice between FOB origin and FOB destination. Dara Inc. chose FOB Origin because they have experience in international shipping and want to save money on transport costs. FOB Destination is a better choice if the seller wishes to minimize risks and provide a complete service, including delivery.

Additional Shipping Conditions

You’ll also see the following terms when reviewing shipping obligations:

Term	Acronym		Mode(s)
Bill of Lading	B/L	A legal document between a shipper and a carrier that details the type, quantity and destination of goods.	All modes
Carriage and Insurance paid to	CIP	The seller pays for the carriage and insurance up to the designated destination. The risk is transferred to the buyer once the goods are handed over to a carrier.	All modes
Paying Carriage To	CPT	The seller pays the carriage to the designated destination. The risk is transferred to the buyer once the goods are handed over to a carrier.	All modes
Cost and Freight	CFR	The seller pays the freight and cost to deliver the goods to the port of destination. Once the goods are on board the ship, the risk is transferred to the buyer.	Sea and inland waters
Cost, Insurance, Freight	CIF	The seller pays for the freight, insurance and cost of bringing the goods to their destination port. Once the goods are loaded on the vessel, the buyer assumes the risk.	Sea and inland waters
Frontier Delivered	DAF	Requires that a seller deliver goods to an area near the border. The seller is responsible for the cost of transporting goods to the drop off point for the buyer. The person picking up the goods is usually importing and traveling through customs.	All modes
Delivered to Place	DAP	The seller delivers the goods at a specified place (usually to the buyer’s premises) and the buyer is responsible for import duties and taxes. Risk transfers when goods are available for unloading.	All modes
Terminal Delivered	DAT	The seller delivers goods to a terminal in the port or place of destination, while the buyer is responsible for import duties, taxes and further transportation. Risk transfer occurs when the goods are unloaded from the terminal.	All modes
Delivered Duty Payed	DDP	The seller will cover all costs including duties and transport the goods to the specified place in the buyer’s home country.	All modes
Ex Work	EXW	The seller makes the goods available on their premises. From that point, the buyer is responsible for all transport and risk.	All modes
Free Alongside Ship	FAS	The seller must deliver the goods to an airport or shipping port where the buyer is established and takes delivery.	Sea and inland waters
Free Carrier	FCA	The seller must deliver the goods to an airport or shipping port where the buyer is established and takes delivery.	All but typically used in land, sea/inland waters, and air transport
Freight on Board	FOB	Same as Free on Board	Sea and inland waters
Full Truckload	FTL	A shipment that is large enough to fill an entire truck.	Road
Less than Truckload	LTL	A shipment that does not fill a truck.	Road

What is FOB pricing?

FOB costs can include transporting goods to the port for shipment, loading them onto the shipping vessel and freight transport. Insurance is also included.

Who pays for freight originating at FOB?

If the terms include “FOB Origin, Freight Collect”, the buyer is responsible for freight charges. If the terms include the phrase “FOB origin, freight prepaid”, the buyer is responsible for the goods at the point-of-origin, but the seller is responsible for the cost of shipping.

What is the difference between FOB and CIF?

CIF and FOB (Free On Board) are commonly used Incotermagreements. CIF agreements require the seller to pay costs and assume liability until the goods arrive at the port of destination selected by the buyer.

The Bottom Line

Understanding Free on Board is essential for businesses involved in domestic and international commerce. FOB Destination and FOB Origin each have their own set responsibilities, costs and risks for both buyers and sellers. By clearly defining the terms in their contracts, parties can ensure a smoother transfer of goods while minimizing the possibility of disputes.

The choice between FOB origin and FOB destination depends on a number of factors, such as the nature of the goods and the distance that they must travel. It also depends on the ability of both the buyer and seller to manage the risks associated with transportation. Businesses should carefully evaluate their options and negotiate the terms that best suit their needs.

Why road freight rates will change significantly in Q2 of 2024

The analysis shows that transport costs are not decreasing, but demand is slowly increasing as the economy begins to recover. Toll increases in other nations are also a factor.

According to a quarterly study conducted by IRU & Transport Intelligence, both the spot rates and contract rates index declined in the first quarter 2024. The spot rates index for Europe dropped to 123.9 points. This is 1.1 points less than the previous quarter and 8.2 points less than the same period last year.

In terms of contract rates, this index was also lower during the first quarter of the year compared to previous periods. It scored 127.6 which was 2.6 lower than the last quarter of 2023, and 1 point less than exactly one year ago.

The latest IRU analysis highlights that despite continuing declines, they have clearly slowed down. This could indicate a rise in demand for transport services. Rates could then normalize in the second half of this year or even more towards the end.

According to IRU analysts, McKinsey’s data shows that in March, the inflation rate in Europe was at its lowest level in 33 months and consumer sentiment has finally improved after a long decline.

While the situation in France and Germany, the two largest economies of the Eurozone, is far from ideal at the moment, many countries in the eurozone are slowly recovering from the slowdown. In Spain and the Netherlands, the PMI index indicating industrial activity is positive. In France and Germany, the PMI index showed a significant improvement during May, signaling the awakening of manufacturing in these countries.

Transport Intelligence experts predict that the volume of European road transport in 2024 will increase by 0.4% per year. This is still a significant improvement over the 1.1% decline in 2023. This slight rebound will be the result of a decline in prices, an increase in real income, and the previously mentioned improvement in consumer sentiment.

Transport services are in demand as a result of increased consumption. This leads to an increase of rates.

Calendar of Price Increases

The second factor which should increase rates is the increase of tolls in countries other than Germany due to the inclusion in these road tolls of additional environmental fees. In Germany, a series price increases were introduced by the EU in December last year. The “tax” on emission has increased road tolls by over 80% in this country. Austria, the Czech Republic and Hungary also added environmental fees to their tolls. The increase in road transport costs in these countries was not as dramatic as in Germany but still higher.

In Hungary, the road tolls have increased by 7%. In the Czech Republic, they’ve increased by 13%. Around Lake Balaton, they’ve increased by 40%.

IRU experts write that road toll increases are a financial burden for carriers who already face high operating costs. This affects the overall freight rate.

Sweden added environmental fees to its tolls in May. Denmark will follow next. In 2026, the Netherlands, Romania, and Belgium will join them. Polish carriers that operate on international routes are sure to see price increases in Benelux. Our truckers are responsible for a large share of the transport from these ports. They also have a significant share in the cross-trade transport between Germany, France, Belgium and The Netherlands.

Costs refuses to decrease

Also, it is important to note the very high operating costs. These costs dampened the rate decline despite low demand. As demand slowly increases, costs will increase the price of transport services.

This is particularly true, as the costs of operating a business in Europe do not decrease. Fuel prices, which were predicted to drop in 2023, have started to rise this year. In Europe, the average retail price at the end Q1 was 3% more than it was at the start of the year. Fuel accounts for about 50% of carrier costs. It is therefore expected that spot rates will increase in the next quarters.

Contract rates may also experience slight declines. This would be due to the relatively low level demand expected for the next year. Analysts assume that shippers won’t feel the need to reserve large volumes for the coming quarters.

Trucking co. owner accused of purchasing stolen diesel at a deep discount

Two men, including a California trucking company owner, are facing a slew of charges related to an ongoing diesel fuel theft scheme targeting South Bay Safeway locations.

On July 2, the Santa Clara District Attorney’s Office announced charges against trucking company owner Henrry Umana, 44, and Yuniel Cordero, 40.

Umana was charged with organized retail theft, receiving stolen property, and conspiracy.

Cordero was charged with organized retail theft, identity theft, conspiracy, 61 counts of grand theft, and 14 counts of petty theft.

Officials say that the two men participated in a scheme involving the use of stolen credit card information to obtain thousands of gallons of diesel fuel from South Bay Safeway locations. The purloined diesel fuel was pumped into a makeshift bladder on the back of a truck.

After Cordero obtained the diesel, he allegedly sold the fuel to Umana for use in his fleet’s vehicles for about $3.50 — $3.75 a gallon, well below the current $5 cost per gallon in California.

The total estimated loss is $90,000.

The scheme was discovered after a person reported being charged for a purchase a Safeway when they had not shopped there. The Safeway contacted authorities, and investigators say that they soon learned that Cordero had stolen hundreds of gallons of fuel from a San Jose Safeway over the course of months.

Investigators also reported finding card skimming devices when they searched Cordero’s house following his June 20 arrest.

On June 27, DA investigators, Santa Clara County Sheriff’s deputies, and the California Highway Patrol Organized Retail Theft Task Force searched Umana’s trucking company and found thousands of gallons of stolen fuel, officials say.

“These defendants were criminally filling up their fuel tanks and their pockets, using the stolen property of others,” District Attorney Jeff Rosen said. “Our high-octane investigator along with the Sheriff’s Office made sure this scheme is out of gas and out of business.”

Could Cheap Chinese EVs Reach US From Mexico?

Sales staff stand near the Seagull electric vehicle from Chinese automaker BYD at a showroom in Beijing. (Ng Han Guan/Associated Press)

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WASHINGTON — It’s a scenario that terrifies America’s auto industry.

Chinese carmakers set up shop in Mexico to exploit North American trade rules. Once in place, they send ultra-low-priced electric vehicles streaming into the United States.

As the Chinese EVs go on sale across the country, America’s homegrown EVs — costing an average of $55,000, roughly double the price of their Chinese counterparts — struggle to compete. Factories close. Workers lose jobs across America’s industrial heartland.

Ultimately, it could all become a painful replay of how government-subsidized Chinese competition devastated American industries from steel to solar equipment over the past quarter-century. This time, it would be electric vehicles, which America’s automakers envision as the core of their business in the coming decades.

“Time and again, we have seen the Chinese government dump highly subsidized goods into markets for the purpose of undermining domestic manufacturing,’’ Sen. Sherrod Brown, (D-Ohio) wrote in an April letter to President Joe Biden that called for an outright ban on Chinese electric vehicles in the U.S. “We cannot let the same occur when it comes to EVs.’’

I’m calling for a complete ban on Chinese electric vehicles in America.

We cannot allow China to bring its government-backed cheating to the American auto industry. pic.twitter.com/cekCo5Rt1K

— Sherrod Brown (@SenSherrodBrown) April 11, 2024

Low-priced Chinese EVs pose a potentially “extinction-level event’’ for America’s auto industry, the Alliance for American Manufacturing has warned.

The trade deal that Beijing could potentially exploit — the U.S.-Mexico-Canada Agreement — was negotiated by the Trump administration and enacted in 2020. Its rules could let Chinese autos assembled in Mexico enter the United States, either duty-free or at a nominal 2.5% tariff rate. Either way, China could sell its EVs well below typical U.S. prices.

To defuse the threat, the U.S. does have options. Customs officials could rule that Chinese EVs don’t qualify for the low-duty or duty-free benefits of being assembled in Mexico. U.S. policymakers could also pressure Mexico to keep Chinese vehicles out of that country. Or they could bar Chinese EVs from the U.S. on the grounds that they would threaten America’s national security.

For his part, Donald Trump told Time magazine in April: “I will tariff them at 100%. Because I’m not going to allow them to steal the rest of our business.’’

Whatever steps the U.S. government might take, though, would likely face legal challenges from companies that want to import the Chinese EVs.

The threat from Beijing is emerging just as U.S. automakers face slowing EV sales even while investing billions to produce them in a high-priced bet that Americans will embrace battery-powered autos in the coming decades. Comparatively high prices, despite federal tax incentives for buyers, have weakened EV sales in the United States. So has public anxiety about a scarcity of charging stations, potentially made worse by rising thefts of cables at charging stations.

Optimists suggest that an influx of ultra-low-priced Chinese EVs could accelerate U.S. electric vehicle purchases, speed up investment in charging stations and force down prices.

“It would be cheaper just to let the Chinese cars come in, forget all the tariffs and subsidies, let the market figure it out,’’ said Christine McDaniel, a senior research fellow at George Mason University’s Mercatus Center who was a trade official in the George W. Bush administration. “Yes, it would be disruptive. But EVs would get on the road in the U.S. a lot faster.”

We’ve said it once, we’ll say it again: Allowing cheap Made in China autos into the U.S. market will lead to an extinction-level event for U.S. automakers.https://t.co/u9KpxNObZy

— AAM (@KeepitMadeinUSA) June 27, 2024

At stake is an enormously consequential question: Who stands to dominate the manufacture and sale of zero-emission electric vehicles?

China has so far taken a daunting lead. It accounted for nearly 62% of the 10.4 million battery-powered EVs that were produced worldwide last year. The United States, at No. 2, made about 1 million — less than 10% of the total, according to the consulting and analysis firm GlobalData.

In achieving technological breakthroughs while holding down costs, Chinese automakers have made remarkable strides. China’s BYD last year introduced a small EV called the Seagull that sells for just $12,000 in China ($21,000 for a version sold in some Latin American countries). Considered a marvel of engineering efficiency, its lightweight design allows the Seagull to go farther per charge on a smaller battery. BYD has said it’s considering building a factory in Mexico — but only for the Mexican market.

U.S. policymakers and auto companies are less than reassured.

“Just look at China — look at how big their market share is in EVs,’’ John Lawler, Ford Motor’s chief financial officer, said at this month’s Deutsche Bank Global Auto Industry Conference. “Those are significant competitive threats we need to deal with. They have a development process that is much faster — 24 months.’’ (By contrast, U.S. vehicles have typically undergone development for four to five years, though that has been reduced to three years or less for EVs.)

Critics note that BYD and other Chinese EV makers have achieved their cost efficiencies thanks to heavy government subsidies. Beijing spent 953 billion Chinese renminbi (more than $130 billion at current exchange rates) on EVs and other green vehicles from 2009 through 2021, according to researchers at the Center for Strategic and International Studies.

“It’s not competition,’’ Biden asserted last month. “It’s cheating.’’

Last month, Biden drastically raised the tariff on Chinese EVs, from the 27.5% established under Trump to 102.5%. It’s meant to price even the bargain-priced BYD Seagull out of the U.S. market. (Europeans are worried, too: The European Union says it plans to impose tariffs of up to 38.1% on Chinese EVs for four months starting in July.)

The U.S.-Mexico-Canada Agreement, though, potentially lets vehicles assembled in Mexico — even if made by European or Asian automakers — enter the U.S. at a much lower tariff or none at all. If made-in-Mexico cars met the USMCA’s requirements, they could enter the United States duty free. At least 75% of a car and its parts would have to come from North America. And at least 40% of it must originate in places where workers earn at least $16 an hour.

Still, for a Chinese EV maker like BYD, qualifying for duty-free treatment under the USMCA might be difficult even if it tried to source parts in North America.

“Even North American automakers have a challenging time reaching those thresholds,” said Daniel Ujczo, senior counsel at the Thompson Hine law firm in Columbus, Ohio.

But there’s an easier way that Chinese EV makers could use Mexico to try to dodge Biden’s killer 102.5% import tax: They would have to pay only 2.5% — the tax imposed on most cars imported to the United States — if they could show that assembling their EVs in Mexico involved a “substantial transformation’’ that essentially turned them from Chinese into Mexican cars.

U.S. officials could reject the notion that a substantial transformation occurred during the assembly process. But the U.S. would struggle to prevail if that decision were challenged in the U.S. Court of International Trade, “given the substantial changes that typically take place in automotive assembly factories,’’ David Gantz, a trade lawyer and a fellow at Rice University’s Baker Institute for Public Policy, has written.

Still, Gantz said by email: “My takeaway is that using one or more of the available trade and national security mechanisms available to the U.S. government, the U.S. will be successful in excluding Mexican/Chinese EVs.’’

The “most effective and quickest’’ way to keep out Chinese EVs, Gantz argues, would be to block them on national security grounds. Today’s EVs, after all, are loaded with cameras, sensors and other technological gizmos that could collect images from the autos’ surroundings and sensitive personal information from drivers. And China isn’t merely an economic competitor. It’s a geopolitical adversary — and potentially a military one, too.

I just imposed a series of tariffs on goods made in China:

25% on steel and aluminum,
50% on semiconductors,
100% on EVs,
And 50% on solar panels.

China is determined to dominate these industries.

I’m determined to ensure America leads the world in them.

— President Biden (@POTUS) May 14, 2024

“U.S. fears regarding possible use of connected vehicles to spy on military installations or power plants are not irrational,’’ Gantz wrote.

Biden has even warned that the EVs “could be remotely accessed or disabled.’’ In February, he ordered his Commerce Department to investigate the technology in Chinese “smart cars,” a potential prelude to blocking Chinese EVs on national security grounds.

McDaniel of the Mercatus Center argues that the United States has significant leeway to do what it wants — especially given Mexico’s dependence on the U.S., its No. 1 export market.

“You could imagine a scenario where the U.S. tells Mexico: ‘Don’t even think about allowing this [Chinese EV] investment into Mexico,’ ” she said. “ ‘We will not allow those cars into the U.S.’ ”

“What’s stopping the White House,” McDaniel said, “whether it’s right now or the next administration, from just releasing a new document, an executive order, saying, ‘We will no longer recognize products from our USMCA partners if they have more than X percent content from foreign entities of concern, including China’ ” ?

The U.S. has additional leverage because the USMCA comes up for review in 2026. If it seeks to alter the agreement — perhaps adding a provision to ban or limit Chinese EVs from Mexico — but fails to prevail after negotiating with Canada and Mexico, it could let the USMCA expire.

McDaniel noted that the World Trade Organization, which was established to enforce global trade rules, has become largely toothless. The WTO’s Appellate Body — its supreme court — effectively stopped functioning in December 2019 because the U.S. blocked the appointment of new judges to the panel. Trade cases now go unresolved indefinitely.

“We’re not in a WTO world anymore,’’ McDaniel said. “It’s ‘might makes right’ — that’s the sort of world we’re in.’’

AP Auto Writer Tom Krisher in Detroit contributed to this report.

Why AI will be crucial in advancing government cyber security

According to a report, as cyber threats become more sophisticated and data volumes exceed human analytical capabilities, artificial intelligence (AI), is emerging as a game changer in the ongoing battle of federal cybersecurity.

The report “AI-powered Cybersecurity – Why Government Agencies Must Adapt” produced by Scoop News Group, and sponsored by Microsoft, identifies a number of recent developments that have made it urgent for government agencies adopt AI-powered solutions in order to safeguard critical assets with greater precision.

Download the full report

AI-enhanced threat. The integration of AI capabilities into agency cyber solutions has become more urgent due to the ongoing attacks on U.S. government data systems by nation states and criminal adversaries. Microsoft’s Threat intelligence unit, which tracks more than 300 unique threat actors, has found that adversaries are increasingly leveraging AI in order to increase the speed, scale and sophistication of their attack. The report highlights the rising tide of cybercrime-as-a-service attacks, underscoring the escalating nature of a technological arms race.

The data deluge. According to the report the biggest challenge for agencies is the crushing amount and increasing velocity data that cyber specialists have to analyze and act on. Jason Payne, Microsoft Federal Chief Technology officer, said that cybersecurity is increasingly becoming a data-science problem rather than a technology issue. AI-powered solutions provide a scalable solution for data analysis, and in particular security data. This allows agencies to identify patterns, anomalies and potential vulnerabilities, which would otherwise go undetected.

AI powered observability: AI driven solutions also enable agencies to observe threats and respond faster, and have the agility to adapt security postures to address evolving attacks. This is according to Steve Faehl. Microsoft Federal Security Chief Tech Officer. He says that the report shows “a lot of benefits from using threat intelligence and AI” to harvest all this signal coming from zero trust capabilities that agencies have implemented. This is important because most agency security centers “don’t employ many people to perform that [analysis], and being able instead to leverage AI to harvest these insights automatically and surface then is a great force multiplyer for government.”

Shifting Left with AI: AI can also improve cybersecurity by helping software development teams to identify and mitigate vulnerabilities early in the development cycle. By addressing security concerns early in development, agencies are able to significantly improve the resilience of their applications and systems and accelerate software development. Payne says AI tools aren’t just for “net new development”. It’s also valuable for identifying and resolving potential vulnerabilities in legacy code.

AI-enhanced products for security. The report highlights a variety of cybersecurity products that use AI to improve cybersecurity. These include platforms for unifying data and detecting and responding endpoint threats. It also includes tools to manage multi-cloud identities.

The report acknowledges, however, the inevitable demand for “AI as a Service,” which would give agencies access to cutting-edge AI capability without requiring them build and maintain a complex infrastructure.

“The power AI will bring us to a point where we can go beyond just empowering analysts to do what we’ve always done, and start addressing intractable problems by tackling things that we wouldn’t have thought of tackling without those additional abilities,” concludes Faehl.

Download the full report for more information about the increasing role AI plays in cybersecurity.

This article has been produced by Scoop News Group and sponsored by Microsoft.

Updates to the Nikola Tre 2nd generation battery-electric cabover

Trucking News and Briefs for June 24, 2020:

Nikola, a second-generation battery powered walk-through at ACT Expo

The Nikola representatives at the ACT Expo in Las Vegas walked Jay Traugott through the second-gen version Tre battery-electric class 8 of the company.

Clean Trucking

Among

Overdrive

Sister publications. Watch the video to hear from Ryan May, the head of software and controls at the company, as well as Steve Girsky, the CEO of the relatively new company, about the various improvements made to cabover.

Nikola notes that the 2.0 Tre BEV shares significant software similarities with its hydrogen-fuel cell counterpart. This should allow for software updates to be downloaded over the air.

After several years of financial difficulties and no small number of controversies a hydrogen refueling stations was opened near the Port of Long Beach last month under the Nikola HYLA Brand. The plan is to have 14 sites open by the end this year, all equipped with HYLA fuelers and FirstElement fuel stations.

Nikola continues to work to establish a hydrogen supply network and to expand the HYLA Infrastructure, as demand is expected to grow in the coming years. The company has a 10-year contract with FirstElement Fuels to refuel Nikola Tre trucks. FirstElement Fuels is the largest hydrogen refueling supplier in California, with an 80% share of the market.

The first HYLA Hydrogen Station in Ontario, California, which is only available to Nikola Tre customers, began operating in April.

New online service reservations from Ohio Peterbilt with ongoing calendar submissions

A new booking module allows Ohio Peterbilt dealers to book an appointment at any of their 10 locations in the state.

Ohio Peterbilt stated that it hoped this tool would make scheduling appointments for service easier for owners and operators. The dealer group also announced the new tool and re-emphasized the ongoing entry period to secure a place in the group’s renowned annual calendar featuring trucks in operation.

Ohio Peterbilt is accepting entries until September 9, 2024. The 2025 calendar will feature winning photo entries that will appear throughout the year in a full-page spread. You can submit your entries via this link. Horizontal landscape photos are preferred, with an emphasis on scenic backgrounds or on-the-job photography. The company announced that, in addition to bragging rights, 12 winners will receive a Peterbilt jacket, and one “Grand Prize Cover winner” will receive a prize up to $500.

View previous winners of the calendar to see samples of photos.

W&W Transport, Inc., won the overall prize for 2024, with this image. They received a $500 Visa gift card.

Google awards $1M to University of Arizona Cybersecurity Clinic

<br /> Google Awards $1M to University of Arizona for Cybersecurity Clinic<br />

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Higher Education

The University of Arizona will begin offering free digital security services in January to Southern Arizona businesses, nonprofits, and government agencies. These services include vulnerability assessments, security audits, and compliance checks.

June 14, 2024 *

Sierra Blaser The Arizona Daily Star, Tucson

(TNS) – A new University of Arizona Cybersecurity Clinic offers Southern Arizona businesses and non-profits free cybersecurity services and assistance.

According to a press release, the cybersecurity clinic was established by UA’s College of Applied Science and Technology. The clinic will be located on the Sierra Vista campus of the University and is funded by Google’s Cybersecurity Clinics Fund. It will begin offering free digital security services in January, including vulnerability assessments, security audits, and compliance checks.

In a press release, University of Arizona President Robert C. Robbins said that the clinic would be “instrumental in advancing our communities understanding of cyber-threats and helping develop innovative solutions.” This program reaffirms the University of Arizona’s commitment to producing highly-skilled graduates who will be defenders of the digital age.

The UA clinic would also receive “mentorship by Google employees, scholarships to the Google Career Certificate for Cybersecurity, and Google Titan Security Keys – USB devices that prevent phishing attacks and improve overall cyber security,” according to the release.

Paul Wagner, associate Professor of Practice and Clinic Director, will lead the clinic. However, UA Students will take the reins to educate and improve clients’ cyber security.

Wagner said that the model would initially be a semester-based model. “There are three classes that students can take: an independent study, an internship or a capstone.”

The program aims to reach 900 students over the course of six years. Students from both within and outside of the state will have the opportunity to enroll. Wagner says that he is looking forward to the students getting real-world experience and working with clients.

He said in a press release that “the work we do in the classroom is amazing but there is a lack realism.” “With this clinic we are not only helping students become better future workers — we’re also securing our community.”

The clinic expects to serve 30 businesses in its first two semesters and 150 by the end six years. The clinic will initially focus on small businesses in Southern Arizona, but will eventually serve businesses throughout the state.

Those interested in learning more can call the College of Applied Science and Technology at Sierra Vista, 520-458-8280. Students at the UA can find out more from their advisors. Also, look for a newsletter or information session near the beginning of the Fall semester.

Cybersecurity experts warn against these common password mistakes

ID Agent analyzed the password data collected on the dark internet to determine the most common password errors.

The Arizona Daily Star, Tucson, Ariz. Distributed by Tribune Content Agency, LLC.

European startups head to the US for profits

Prepare yourself for a shock: Europe has a faster growth rate in new startups year-on-year than the US. Many end up moving to the US.

Spotify, founded by Sweden in 2006, began music streaming in Europe, before moving its main operations to the US. Stripe, founded in 2006 by two Irish brothers and headquartered in the US, has become a major player in the payment services industry. Sword Health, a Portuguese company, entered the US market by 2020. By the following year it had reached a unicorn valuation of $1 billion.

It’s a worrying trend for Europe. While Europe is generating an influx of startups, US companies are 40% more likely than European firms to have secured capital funding within their first five years. Many of Europe’s brightest and best are moving across the Atlantic Ocean in order to scale.

Fragmentation is the main problem. The Single Market is plagued by a patchwork of rules, regulations and laws across the EU. For example, tax and stock option regimes vary from country to country. The rules governing how investors or founders can cash out also differ from country to country. Most European startups struggle to navigate the red-tape of doing cross border business.

Cross-border fund-raising remains problematic. The EU’s plan for creating a single capital market, the Capital Markets Union dates back to 2014. It is still not fully realized. In contrast, the US is a large, unified market. Startups scale.

The real problem in Europe is not seed money. In the first quarter 2024, European startups raised $13.7billion, an increase of 5% on last year. In 2023, the continent’s share in global VC was 17%. 60% of European venture funding was raised by just three EU member countries and the United Kingdom.

The second stage of funding is where the biggest challenge lies for minnows who want to become full-fledged Unicorns. The US has a large pool for venture capital that targets later-stage startups.

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For founders and investors, the US is a more attractive place to cash out than Europe. It has a long-established IPO and a large pool potential acquirers. In Europe, however, regulatory divergences as well as different national corporate codes are slowing sales.

Investors are putting money into artificial intelligent. AI accounted for eleven European mega-rounds exceeding $100 million. This month, the French startup Mistral AI raised EUR600,000,000 to compete with ChatGPT’s owner OpenAI. It had already raised EUR400 millions.

European leaders are aware that startups face many challenges. In a recent joint op/ed, French president Emmanuel Macron and German Chancellor Olaf Scholz recognized the urgent necessity for reform. They wrote that “too many European savings were being invested overseas rather than in Europe’s most promising start ups and scale-ups.” “We need to be serious about a truly unified European financial market.”

Similar suggestions are made in a report by Enrico Letta, former Italian Prime Minister. Another report from another former Italian prime minister Mario Draghi is due to be released in the next few weeks. It will also focus on increasing EU’s competitiveness.

Recent European Parliamentary Elections and the upcoming appointment a new European Commission offers an opportunity. Calls have increased to provide alternative investment sources via pension funds for startups. Stock option policies must be modernized and streamlined. A passport scheme for the EU could help startups access talent and solve work visa issues. should be to appoint as a Commissioner for Digital Entrepreneurship.

The EU is at a crossroads. The choices made in the coming years will determine if it succeeds and if it can reverse the “crossing of the pond” trend.

Padraig Nolan is Chief Operating Officer at ETPPA, an important EU fintech association. He is also a member of the advisory board for Europe Startup Nations Alliance, based in Lisbon. Padraig has a Bachelor’s Degree in Law and Economics (University of Galway), and a Masters in European Law (Utrecht University ).

Bandwidth, CEPA’s online magazine, is dedicated to advancing the transatlantic cooperation in tech policy. All opinions are the author’s and do not necessarily reflect the views or positions of the institutions or Center for European Policy Analysis.

iTWire – Pure Storage announces major AI and cybersecurity advances

Pure Storage APJ CTO Mark Jobbins told iTWire the two biggest trends he is seeing are the increasing and ongoing concerns about cyber attacks as well as the noise surrounding generative AI. Cyber attacks are a constant concern, but they are even more so when it concerns storage. You’re only one ransomware attack away from disaster if you have a secure, reliable storage system. In the meantime, generative AI has become the hot topic. Jobbins says that the field has settled down and matured as people have begun exploring well-reasoned, proof of concept projects.

Pure Storage has spent a lot of time thinking about how it can best serve organisations of any size and type in advancing their AI ambitions and protecting their investments.

This thought process has resulted in a carefully crafted strategy with four pillars. These new services will be included in existing licensing along with two other add-on services to EverGreen//One’s Pure Storage platform.

These four pillars include expanding innovations in the Pure Storage platform, accelerating AI success in the enterprise, arming enterprises with new cyber resiliency services and capabilities, and delivering plartform flexibility with storage-as-a-service.

Pure Storage’s thinking and strategy, customer feedback, and a keen eye on how the world has changed have all been used to develop these solutions. Data is no longer confined to a single office. It can now be stored anywhere, literally. Modern storage platforms must ensure that endpoints and platforms can grow and evolve over time. This allows data to be seamlessly blended between on-premises systems and the cloud.

Let’s take a look at everything:

Copilot

Copilot, a brand new AI-driven tool, will be available on the Pure Storage platform. It will help administrators manage and protect data using natural language. It has been trained using insights and telemetry gathered from tens or thousands of Pure Storage customers, as well as Pure’s FAQs, documentation and other resources. It can provide actionable steps for addressing concerns or improving benchmark rankings. PureOne is available for enterprise customers and the training model will improve over time.

Examples of questions could be “Can you provide me with a security update on my flash arrays?” or “Can you confirm my billing?”

Administrators can ask any question, get quick access to usage, billing, security, and more. The Copilot will provide answers and recommendations and, most importantly, will link these recommendations to action. Jobbins told iTWire that the Copilot will help Pure Storage customers because it will give them a better view and make their platform easier to manage.

He said, “We are the first storage vendor that provides a GenAI copilot system.”

Next-gen Fusion storage automation

Many organisations have invested heavily in GPU compute layers. Jobbins said that GenAI is a powerful tool, but also requires a large investment.

GenAI is a hungry beast, and it needs data fast. This costs money. “People are worried about how much they should invest in the storage layer on day one and whether or not it will be relevant six, twelve, or even 18 months later when profiles have changed,” said he.

Imagine having to explain to the CFO that the “$ $ million” invested is only being used at 20%. It plays on people’s mind how to drive maximum productivity.

To be future-proof, you will need to make the right investments in security and training, as well as have the right throughput.

Jobbins said that the Pure platform could address all of these issues, “wrapped up with the new Fusion storage automation, a first-of-its kind.”

Fusion next-gen simplifies and improves provisioning for arrays of any size, from one to thousands. It is protocol agnostic, no matter whether you use FC or iSCSI.

It will be available as a simple update for all Purity arrays. It is not a separate license or an external control plan. It is fully backwards-compatible and does not break existing integrations.

Fusion’s strong policy-driven approach is a major part of its new capabilities. Specify service levels and requirements and Fusion will move workloads automatically and non-destructively, as appropriate. This includes performing replications and other autonomous actions in order to comply with your policies. It gives you a cloud-like experience when managing your storage.

Subscription to Evergreen//One

People traditionally choose storage options on the basis of structured block+file or unstructured data. Pure Storage recognizes that while both options are useful for specific purposes, when it comes down to AI, throughput is often more important than capacity.

Jobbins explained that Evergreen//One AI is a subscription type which “flips” the model. “Customers can subscribe for guaranteed performance based upon bandwidth. Storage capacity will be charged a nominal fee.

This gives organisations the option to choose and comfort, while removing the risk of investing too much money in a particular technology. “You can start small and then scale up,” said he. “Once you know your long-term profile, you can change it with time.”

NVIDIA certification

Pure Storage has extended its relationship with NVIDIA by moving into its certification. This is an accelerated AI data center infrastructure platform that delivers agile and scalable performance to the most challenging AI workloads and HPC workloads.

Pure Storage expects that the process will be completed before the end the year.

This will extend Pure Storage’s existing NVIDIA DGX & OGX certifications.

AI clusters to support mission-critical data

Pure Storage will introduce new Application Workspaces, which will allow for fine-grained control of access, ensuring security, independence and control. It allows companies to leverage their mission-critical data for AI applications without worrying about misuse or leakage.

Enhanced Cyber Resilience

Unfortunately, the reality of today is that cyber criminals will impact a company not whether but when. It’s frustrating to see that, while AI helps companies innovate and provide new services, criminals are also using it to increase the sophistication in their attacks.

Pure Storage has announced a new extension to its cybersecurity offerings. The company announced anomaly identification last year. It is now introducing more support and services to help customers with cyber resilience. This includes helping them focus on events and notifications and providing a clean environment for recovery.

Pure Storage says that this is not limited to ransomware but will be available for all disaster recovery situations. It will also be integrated with the Fusion enhancements, allowing you to further define your data protection policies. Customers will be able tailor policies to fit their individual environments.

These new capabilities offer a holistic approach for protecting your environment.

Cyber resilience advisory services

Pure Storage will also offer new services that will help you determine the best way to protect yourself from an incident and recover after it.

These services allow you to assess your risk and score it. You can also get advice from the Copilot feature described above.

When a Pure Storage customer subscribes to its cyber resilience service, Pure Storage will work with them to determine recovery processes and procedures so that they are prepared and planned before an incident occurs. These will be reviewed on a quarterly basis.

Rebalance

It’s difficult to predict the past. Imagine if you could swap hindsight with foresight. We live in an age of possibilities. “What if AI could be used to alert customers proactively when we believe that there will likely be a change in reserved capacity and avoid on-demand fees?” Jobbins asked. Pure Storage delivered.

You can ask “what if?” questions using the Copilot feature above – “what happens if I change my environment in this way …”?”

Pure Storage now offers rebalancing of storage between sites. Jobbins explained that, for example, “if you are a company with multiple sites, you may allocate reserved capacity in good faith, but at some point you might need to transfer data from site A B. You have a 200TB commitment reserved with 100TB at two sites, but you now want, for example, 150TB at site A and 50TB at site B. ”

Pure Storage will move infrastructure to the appropriate location at no extra charge. Customers can now rebalance storage once a year with the new rebalance feature. Jobbins, Pure Storage’s CEO, says that the company currently believes that 12 months is an appropriate amount of time. However, this will change over time as the company takes into account customer feedback.

New SLAs

Pure Storage announced a comprehensive expansion of its SLAs for Evergreen//One. Customers will see a 50% performance boost in their new high-performance SLA.

Pure Storage has a lot to announce, but it all boils down to a single unified strategy that helps customers accelerate their AI journey, while protecting their environments.

“From Fusion to self-managed environments, a generative copilot to ensure the best practices, flipping Storage-as a Service to mover, from capacity and performance profiles to throughput models, allowing customers to begin at whatever they choose, building our relationship to NVIDIA, providing more insights, delivering resilience …,” Jobbins stated.

“It hits all the areas that customers have been talking to me about,” said he.

“What state are you in?”

I can’t count how many times over my decades trucking I was asked that question. As we all know, things can change on that score rapidly, sometimes several times in a day.

But have you ever woken up one day and just felt physically exhausted from the get-go? Well, that can be the state you’re in, too. Maybe it’s on account of long hours the days and weeks prior, break-down freight, maybe you had to throw tarps. Or maybe that exhaustion is welling up from a deeper source.

I’m here to tell you burnout is real, and can manifest as physical exhaustion brought on simply by repeated or prolonged stress. But it’s mental and/or emotional as well, often related to work, and always stress-related. Difficulties in relationships, romantic or professional, stoke the fires. With the current state of our economy, added days on the road to meet obligations, or trying to do too much at once, boost those stressors rapidly.

Lethargy, depression, cynicism: All are typical manifestations of burnout, when an individual feels out of control of how a job is done, or when the job conflicts with their sense of self. Likewise if you don’t have adequate support on the job or at home, or if personal goals go unmet and you feel undervalued.

You could face burnout if you don’t, or just can’t, fashion responsibilities to equal your calling, or take a break when you truly need one. Unaddressed, it just gets worse on both physical and mental health fronts — fatigue, headaches, heartburn or other gastrointestinal symptoms. Some of us turn to food or drug and alcohol use for comfort.

“When you put yourself out there and help others with no agenda, the benefits you receive can alter your outlook, and the brain chemistry that underlies it.”

All kinds of work can be taxing, that’s sure, but OTR trucking is unique given its sometimes stress-inducing nature — from the moment we hit the road to the search for a parking spot at the end of the day. We get that 10-hour break, but life is such for many of us that we won’t entirely shut off for that time. There’s accounting for costs to be done, planning for the next days and weeks and oh so much more.

If you feel like you are out of fuel before you even start, take steps to ease the adverse effects of burnout and reexamine your work life. Over the years, I have done several things to neutralize the impact. As I’ve suggested before, go off-grid, setting aside communications technology in favor of personal creative projects. Likewise, mindfulness practice and/or meditation can help both physically and mentally. Build new relationships at work or elsewhere in your community at home.

One route toward new interactions that can form the basis for new relationships? Serving others. I cannot fully explain it, but when you put yourself out there and help others with no agenda, the benefits you receive can alter your outlook, and the brain chemistry that underlies it. Having a sense of purpose increases well-being and offers challenges, goal attainment, growth. There is something straightforward about making a difference in the lives of others. It can bring big benefits for your mental outlook on life.

Physical exercise can also help, and if you have been using food or other substances to cope, it will get you back on the right track to healthy living.

Chronic stress doesn’t always come from the job, though. Personal relationships can take a toll, and overwhelming feelings of failure dog us, especially OTR and away from home when anchor relationships begin to spiral out of control. Non-work burnout can then filter into your career and increase the stress you face on the road, particularly if you blame yourself or the job for the relationship challenges.

On top of that, a lot of us OTR aren’t great at asking for help with mental health. But burnout, if left unaddressed, can leave you with a sense of dread about work and increasing irritability or anger. Neither are good to carry with you on the road piloting 80,000 pounds. A diminishing ability to be patient and have compassion or empathy for others generates an uncaring attitude, also known as compassion fatigue.

But you don’t have to feel alone. Data suggests more than half of the working population in the United States has suffered from burnout at one time or another.

Keep an eye out for opportunities to serve, to help others through it, too. Watching someone you care about or work with struggle with burnout can be difficult, but do what you can to be empathic, offer an ear and be an active listener. Encourage self-care, and, if possible, offer to take some of the burden.

If the person you see struggling is looking back at you in the mirror, don’t be hindered by stigma or stereotypes. Burnout can derail careers and relationships — your loved ones and the work family, so to speak, will greatly appreciate your efforts to help yourself.

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