Author Archives: eyesvc

Etihad Cargo Integrates Direct Book-Booting Connectivity with Kuehne+Nagel

Etihad Cargo and global logistics provider Kuehne+Nagel have established a direct eBooking Integration.

The collaboration is part of Etihad Cargo’s digitalisation journey, which already includes industry leaders like cargo.one, WebCargo and CargoWise.

Kuehne+Nagel’s seamless access to Etihad Cargo network capacity and pricing is made possible by the direct integration between Etihad Cargo and Kuehne+Nagel.

This move aims to provide greater transparency, flexibility, and efficiency in the booking process. It will also ensure faster and more reliable services.

Stanislas B. Brun, Vice President Cargo of Etihad Cargo, said: “Etihad Cargo’s integration with Kuehne+Nagel marks another milestone in the carrier’s commitment to digital innovations and operational excellence.

Etihad introduces Cool Dollies for Cool Chains

This integration improved Kuehne+Nagel’s ability to make informed decisions, streamline operations and deliver superior service.

Kuehne+Nagel’s reservation team now has real-time access the Etihad Cargo network. This will allow them to book cargo space quickly and easily.

Kuehne+Nagel can now make quick and accurate bookings using the Instant Offer Rate (IOR), a tool developed by Etihad Cargo.

Kuehne+Nagel’s integration with Etihad Cargo can improve their speed to market, operational efficiency and overall service level by reducing the booking time and improving the overall service.

This new integration between Etihad Cargo, Kuehne+Nagel and Kuehne+Nagel brings together the two companies in an impressive way. It ensures that the logistics provider can fully utilize Etihad Cargo’s cargo capabilities.

“By launching direct eBooking with Etihad, Kuehne+Nagel is able to offer its customers access to real-time capacity and pricing,” stated Holger Ketz Global Head of Air Logistics Network.

The FMCSA has finalized the UCR fee increase

Trucking News and Briefs for Friday, June 14th 2024:

FMCSA addresses small-carrier concerns by finalizing a 25% increase in UCR fees

On Monday, June 17, the Federal Motor Carrier Safety Administration published a final rule which will increase fees for the Unified Carrier Registration Plan and Agreement (UCR) for the registration year 2025 and beyond.

In January , the agency proposed to increase registration fees by 25% for the 2025 year. This means that a single truck owner-operator with authority will have to spend an extra $9 per year. Fleets with over 1,000 trucks will have to pay $9,000 more in 2024 than they did.

FMCSA noted that the increase comes after a decrease in fees of 37.3% on average over the past two years.

The FMCSA will increase UCR Plan fees by 25% in 2025 to compensate for the revenue shortfall after two years of decreasing fees.

The board of the plan makes recommendations to the Secretary for Transportation regarding fee adjustments when revenue collections are insufficient or exceed the amount authorized by law. Federal law requires fee adjustments. The fee increases will generate revenues of $13 millions that will allow the UCR Plan, FMCSA said, to cover the shortfalls resulting from the decreases in fees in the two previous registration years.

The agency noted that several commenters on its January proposal asked for clarifications about the fees, while others called the adjustment “unwarranted or unexpected.”

The FMCSA said that the fees are used for motor carrier safety enforcement and programs by participating states. It added that it believes this upward adjustment, the first since 2010, “is within a range of reasonableness.”

“Any amount less than these adjustments would hinder the proper operation of motor carrier safety program, enforcement or administration of the UCR Plan, and UCR Agreement,” FMCSA stated.

The agency also addressed concerns regarding the impact of fee increases on small business.

The agency stated that even for small carriers the fee increase would amount to a minimal portion of their income. Operators in the smallest bracket, with 1-2 trucks, will pay $9 more, while those in the next bracket, with 3-5 trucks, will pay $27. The FMCSA said that the fee increase would be a small percentage of revenue and will not impact the viability or longevity of motor carrier operations.

The trucking conditions improved significantly in April

According to the latest report by FTR , the conditions for trucking companies were much better in April than in March.

FTR’s Trucking Conditions Index showed a more hospitable atmosphere for carriers in April. However, it remained negative at a reading -1.95. This is up from -7.25. This is the best reading for the TCI since January when it was at -1.41.

The firm noted that both freight rates and financing cost were less negative in April and that freight volume improved throughout the month.

Avery Vise is FTR’s Vice President of Trucking. “Better days for trucking companies are in sight, but the market must still work through the difficult combination of too much freight capacity and sluggish demand,” he said. “The May trucking payroll jobs figures offered some encouragement that the transition is underway. However, a healthier situation will require continued rightsizing capacity and stronger volumes. We do not expect carriers to experience consistently favorable market conditions until early next year.

The index hasn’t been positive since early 2022, and it will likely be mostly mildly positive for the rest of this year. However, FTR says that it could see some positive readings as the index moves closer to neutral.

Vise noted that the trucking industry employment in May was contrary to the overall economic trend. The Bureau of Labor Statistics monthly report shows that trucking lost approximately 5,400 jobs in May, while the economy as a whole gained 272,000. Despite the decline in trucking employment, the entire transportation industry gained nearly 11,000 new jobs in May.

According to Motive’s Monthly Economic Report June 1,229 trucking firms left the market in May. This represents a slight rise from March, but is 67% less than January. The firm reported that May was the third consecutive month where fewer than 2,001 trucking companies left the market. This indicates that the market is stabilizing and moving towards positive growth. Motive also noted that 8,466 new carriers registered in May, marking the fourth consecutive month of more than 8,000 new entries.

Idaho asks drivers in construction zones to slow down

Due to recent unsafe driving behavior, the Idaho Transportation Department (ITD), is asking drivers to slow-down and be on the lookout for construction crews along State Highway55 south of Horseshoe Bend.

“There have also been a few close calls where drivers ignored the flagging crews or the posted speed limit in the work zone,” said Project Manager J.D. Lewelling said. “Safety is the highest priority for us, so we need drivers to pay attention.”

The ongoing work includes milling the road and resurfacing it for a more comfortable driving experience. As part of the safety improvements, guardrails will be replaced as necessary throughout the project area.

Construction is primarily focused on the highway, which runs approximately four miles north from Avimor and ends just south of Payette River Bridge at Horseshoe Bend. The project includes the construction of a bridge that will carry both vehicle and pedestrian traffic over SH-55, at the north end Avimor. Avimor is funding this work.

Construction is expected to be completed by this fall.

Venture Highway is acquired by General Catalyst, a US-based VC Fund.

Representative AI Image (Credit: Lexica)

MUMBAI – US-based venture capitalist (VC) General Catalyst acquired local investment company Venture Highway in order to take advantage of the growing India market and expand its bets on the region. Investments worth $500 million to $1 billion are planned for the Indian market over the next few years.

“India’s economic and political agency in the world is increasing ….with India’s agency growing and shifting geo-political backdrop, the need for a very strong and deep Indo US collaboration becomes imperative today,” said the Silicon Valley-based firm that has backed Indian startups such as Cred and Spinny.

Venture Highway, co-founded in 2014 by Neeraj arora, the former chief business officer at WhatsApp, has been a pioneer in backing unicorns such as Meesho and Moglix. The firm will lead General Catalyst initiatives in India, which has the world’s third largest startup ecosystem after the US and China. The firm stated that “General Catalyst & Venture Highway aim to combine deep India localisation with global networks and capital to reimagine the venture investing to suit India’s unique opportunities and problems.”

In recent months, VCs and PEs (private equity) have raised funds. A significant portion of these funds has been allocated to the India market. The large consumer base in India and the rising disposable incomes provide startups with opportunities to innovate and build. Startup funding, which had been tepid due to a global tech downturn, is now picking up speed with several late-stage deals.

Hemant Taneja, the CEO and managing director of General Catalyst, said in an interview with TOI, last year, that the country’s technology stack will help a lot more Indian businesses enter and grow in areas such as agriculture, climate, health care and semiconductors within the next five to 10 years. “A lot of the work done around Aadhar and UPI sets us up for innovation.” Taneja said that India has a tremendous opportunity in the next 15-years.

Congress Debates FY25 National Defense Authorization Act

In the bill, there is a provision requiring the GAO to examine the programs and procedures related to the U.S. Transportation Command’s GHC. (CatLane/Getty Images)

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A comprehensive defense policy measure approved by the U.S. House of Representatives recently proposes security improvements for trucks at military base and a evaluation of a new moving agreement.

The National Defense Authorization Act was passed by the chamber on February 17th, 217 to 199. In the bill, there is a provision requiring the Government Accountability Office (GAO) to examine the programs and procedures related to the U.S. Transportation Command’s Global Household Goods contract (GHC). The bill would also require that the commander of U.S. Transportation Command provide an update on the program to Congress in this year.

American Trucking Associations have welcomed the moving contract provisions. Sean McNally, ATA’s press secretary and senior communication adviser, said in a statement to Transport Topics that “The ATA Moving & Storage Conference congratulates the House Armed Services Committee on including two important provisions which provide necessary and increased oversight for [Department of Defense] Defense Personal Property Program as well as its Global Household Goods Contract Program.”

McNally said that the provisions, which include an independent GAO assessment, will examine key aspects of the program’s implementation, such as secured industry capacity and the application of the Service Contract Act, which have a direct effect on military readiness and the quality of life. “The ATA/MSC executive committee called for the review of the GHC’s feasibility in the past year. The conference has engaged with leaders from the Armed Services Committee including Readiness Subcommittee Chair [Mike] Waltz.”

“Movers for America,” a coalition of independent owners and professional movers, also praised the GAO’s review. The group has proposed the review, as well as a suspension of the program “until the results are clear.”

In a statement released on June 18, the group said: “On behalf many of the companies, and independent haulers, who are currently moving our military families, thank you to the congressional leaders for asking important questions and urging a credible, impartial evaluation of this untested program — before military families face the significant consequences of failure.” “For months, moving companies have raised serious concerns about the viability of the program as it is currently designed, funding levels, and impacts of replacing a competition system with a monopsony. In the interests of our service families, and American competitiveness, Congress should pause GHC implementation until these questions have been satisfactorily addressed, subject to an in-depth look by the GAO.

According to the report prepared by the House Armed Services Panel that accompanied the bill the GAO review is intended to determine “the extent of the [Defense] Department’s monitoring and utilizing feedback received from across the military service regarding the new processes, systems, and requirements established by the [Global Household Goods Contract], including effects on personnel planning and readiness requirements”, as well as “the extent to the new GHC Technology is functional, user friendly for service members, civilians, and their families and integrated between the Department, individual services,

Garamendi

The U.S. Transportation Command stated that the Defense Personal Property Program GHC goal is to ease the relocation process for military families and personnel. HomeSafe Alliance’s contract required it to manage a network commercial moving companies. Its operations include services related to relocation.

A provision aimed at improving security guidelines for transporters of freight on military bases and installations is also included in the annual Defense Bill. The provision builds upon enacted policies.

Waltz, the chairman of the Readiness Subcommittee promoted the measure. He said that it was important to continue to support service members and their families who have answered the call to duty, and to provide our warfighters training, equipment and support to protect our great country.

“No legislation is perfect. This year’s NDAA is no exception. But I’m pleased to have worked bipartisanly to ensure that this must pass legislation addresses the crucial issues for our military family and national security,” said Rep. John Garamendi, D-Calif., the subcommittee’s ranking member.

The Senate Armed Services Committee approved the NDAA version on June 14, by a vote 22-3. The floor discussion has not yet been scheduled. “Passing the NDAA requires bipartisanship – that means you can’t win it all — and I am grateful that my colleagues have a common understanding that getting this bill on the Senate floor, and ultimately to the president’s desk, is our foremost responsibility,” said Jack Reed (D.R.I.), committee chairman and opponent of the bill. “I look forward working with my Senate and House colleagues to find practical ways of strengthening this year’s defence bill.”

Both chambers of Congress approve the bipartisan NDAA each year. The NDAA seeks to increase salaries and health benefits for military personnel.

GAO: Commercial Applications of Generative AI

A new report by the Government Accountability Office explores the risks and opportunities associated with generative AI. The technology behind generative Artificial Intelligence is examined, as well as the many possible uses of these systems.

The first of many GAO reports that will explore the world of generative AI is entitled Generative AI Technologies: Their Commercial Applications .

Future reports are expected to establish best practices and examine the social and environmental impacts of using generative AI. They will also look at federal development and adoption and the use of generative AI technology.

This first part provides an overview of generative Artificial Intelligence and how it differs. It also gives examples of its application in various industries such as software engineering and medicine.

The report begins with a question: Why is it important? The report goes on to explain that generative AI has been adopted by over 100 million users due to its enhanced capabilities and increased interest.

A level so high that it has sparked debate about the potential of this growth to revolutionize industries like healthcare and education versus the risks to national security, the environment, and the potential for spreading misinformation.

Key Takeaways from GAO Study:

Generative AI is different from other AI systems because it can create new content, requires large volumes of data for training and has complex models.
Generative AI systems employ several model architectures, or underlying structures. These systems, which are called neural networks, are loosely based on the human brain. They can recognize patterns in data.
Commercial developers have created AI models that generate text, code, images, and videos. They also offer products and services to enhance existing products, or refine models for customers. For many applications, their benefits and risks remain unclear.
The rapid development of generative AI was enabled by a combination of factors. The availability of large datasets and the refinement and enhancement of deep learning algorithms as well as computer capacity were key factors.
Training generative AI models often requires large amounts data. This is usually obtained from freely available information on the Internet, which may include copyrighted material.
Commercial developers use a process known as reinforcement learning based on human feedback to provide more meaningful and purpose-fit responses. Humans evaluate outputs and rank them, and the models then mimic the human preferences.
Training large AI models that generate data can take months and cost several hundred millions of dollars.

Click here to read the full report

Rob is an ambitious and enthusiastic writer with a curious and passionate mind. He has written for a wide range of clients in STEM sectors, including aerospace, aviation, software development, finance, and space. Rob has covered a wide range of topics from AI and cybersecurity, to digital transformation, to sustainability.

Lufthansa Cargo begins freighter service from Munich

Lufthansa Cargo has announced the launch of its first freighter route, connecting Munich with Istanbul Airport.

Flights will begin on July 6, 2020, initially with a A321-200 (P2F) operated Lufthansa CityLine.

“Munich Airport offers the best conditions for fast and reliable air freight transportation, which allows global business to be conducted from another important European Airport.” “With the launch of our cargo operation out of Munich, Lufthansa Cargo CEO Ashwin Bhat said that we are laying a foundation for our network to be aligned even more closely with our customers’ needs in the future. We will continue to manage it flexible.”

Six B777-200Fs operated by a href=”https://www.ch-aviation.com/airlines/AEG”>AeroLogic/a> (3S, a href=”https://www.ch-aviation.com/airports/1457″>Leipzig/Halle/a>), a joint venture with a a href=”https://www.ch-aviation.com/entities/DHLX Six B777-200Fs, operated by AeroLogic (3S and Leipzig/Halle), which is a joint venture between DHL Express are also marketed by Lufthansa Cargo.

Currently, the Lufthansa Group carriers that serve Lufthansa’s freight at Munich Airport are bellyhold carriers. The company maintains a large road feeder service network (RFS) into the Bavarian hub.

Fisker Files for Bankruptcy protection

Fisker Ocean (Fisker Inc.)

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Fisker, a maker of electric vehicles, filed for Chapter 11 bankruptcy. It is the second startup to do so within the last year. Even industry leaders are struggling to attract more buyers than the early adopters.

Fisker Group Inc. stated in a filing to the U.S. Bankruptcy Court of Delaware that it estimated assets between $500 million and one billion dollars. It estimated liabilities between $100 million and 500 million, with 200 to 999 creditors.

“Like many other companies in the electric car industry, we’ve faced various market and macroeconomic challenges that have affected our ability to operate efficiently,” said the company in a prepared announcement late June 17. “After evaluating our options, we determined that selling our assets under Chapter 11 was the best option for the company.”

Henrik Fisker founded the electric car company in 2007, and he is its Chairman and CEO. He designed the company’s 2022 Ocean, an all-electric SUV, as well as its luxury plug-in hybrid Karma launched in 2011. Fisker was also responsible for the development of BMW Z8 sports cars. Fisker-Bankruptcy

Fisker, located in Manhattan Beach, Calif. and other startups, such as Lordstown Motors Corp. sought to compete with industry leaders, like Tesla, and the big automakers from Detroit, who have entered the market aggressively.

EVs sales have slowed, as manufacturers try to push electric cars into the mainstream. These sales have been curtailed by both a lack in infrastructure and rising inflation, which has made car loans more costly.

According to J.D. Power, the number of electric vehicles sold in the first three quarters of this year grew by only 3.3%, to almost 270,000. This is far below the 47.6% growth that drove record sales last year and a 7.6% share of the market. Power. The slowdown, largely due to Tesla, confirms the automakers’ concerns that they acted too quickly in pursuing EV buyers. The EV share in total U.S. retail sales dropped to 7.15% during the first quarter.

This has led to massive price cuts and job reductions at leading companies such as Tesla.

Rivian is another electric startup that has announced this year it will be pausing the construction of its $5 Billion manufacturing plant in Georgia, to speed up production and save money.

Lordstown filed for bankruptcy protection last summer due to funding problems.

Fisker was warned by the New York Stock Exchange in early this year after its stock fell below $1. Fisker’s shares weren’t immediately delisted, and the company said at the time it planned to stay listed on the NYSE.

Fisker Inc., and other U.S.-based subsidiaries, as well as subsidiaries outside of the U.S. are not included in the bankruptcy filing. Fisker has said that it is in advanced discussions with financial stakeholders regarding debtor-in possession financing and selling assets.

Understanding the spike in spot sea freight rates

In recent months the spot rate market has seen a significant increase. Drewry, a leading advisory firm, has provided insights into how this change occurred and how businesses should react in its latest market updates.

Red Sea diversions and slower port

According Drewry, disruptions to key shipping lanes in the Red Sea have caused significant delays. This has caused congestion in alternative ports, which has further exacerbated delays and increased costs.

In addition, slow port operations due labour shortages and infrastructure issues have compounded this issue, leading to a smaller supply of available shipping capacities and skyrocketing rates.

What’s driving spot rates to surge?

Philip Damas has identified four factors that have caused a sudden increase in rates.

First, Damas claims that the congestion at major ports caused by increased cargo volumes, labour disputes and other factors has reduced the efficiency of shipping operations globally. Ports in Asia such as Singapore and Colombo have seen significant year-to date increases in throughput. This has contributed to longer wait times, and higher costs.

Supply chain disruptions such as diversions to the Red Sea, and slower port operations have also led to rerouted ships and alternative port congestion. This has led to a reduction in shipping capacity, and increased rates.

The market is also volatile due to the uncertainty of geopolitical events such as potential conflicts and their resolutions. Spot rates have been affected as companies rush to secure their shipping capacity.

Damas concludes that despite the new shipping routes, the constant disruptions and blanked sails indicate a market that is still struggling to balance supply and demand. This has led to planned rate increases in order to manage the constrained capacities effectively.

Looking forward

Will this trend continue? Speaking on the latest podcast of the Freight Loop, Damas stated that rates between Asia and Europe would begin to reverse. Trans-Pacific rates will also stabilise or be softened.

“While weather conditions will not always be so bad we expect lead times to remain long as we agree with Maersk that the Suez Canal won’t return to full use before the end this year. If demand continues to exceed expectations, pressure on liner network and container availability may remain high. We forecast that, despite these caveats and the current spot rate rally along the Asia Europe route, the trend will reverse in June. The Trans Pacific market is expected to stabilize or soften by the second half 2024 due to the record amount of additional capacity.

DHL: Strategic approaches can strengthen supply chains amid rising spot prices

Many companies will naturally consider what steps they can take to reduce the impact of rising logistics costs.

DHL’s latest trend report, ” supply chain diversification,” suggests strategies companies can use to strengthen their supply chains in the face of rising spot rates.

In its report, DHL stresses the importance of multisourcing, multi-shoring and diverse transportation modes.

Multi-shoring is a way to reduce risk, and for those who are unfamiliar with these first two factors, it involves diversifying the manufacturing and supplier locations in different regions or countries. This includes duplicating manufacturing capability and using the same supplier at multiple locations. Multi-sourcing expands the network by incorporating redundant suppliers and manufacturing capabilities, addressing financial risks and operational risks.

DHL says that adding logistics functions such as hubs, distribution centres and warehouses can help improve operations.

DHL claims that by pursuing these strategies business can reduce risks associated with geopolitical crisis, natural disasters and market fluctuations. DHL argues that shippers can maintain continuity and better manage disruptions by diversifying their supply chains.

DHL encourages business to stay informed of market trends and conditions at ports, which can assist in making timely, informed decisions.

The AI market: UBS provides a bottom-up view By Investing.com

In a recent client note, the bank’s strategy team stressed that, while AI adoption is still in its early stages of development, its investment potential remains substantial.

Investors should focus on vertically-integrated players along the AI value chain in the early stages of the AI era. They also highlighted businesses that have a clear monetization path and a strong competitive position.

The AI market has a huge potential. Estimates range from McKinsey $4.4 trillion to Bloomberg $1.3 trillion. UBS estimates that AI-related revenues will exceed $1 trillion annually over the next decade.

AI tools will be expected to drive this growth, as they will improve productivity for knowledge workers who currently number 1 billion worldwide. AI tools such as GitHub Copilot, for example, can help developers code up to 55% quicker, and customer service operations can become 30-50% more effective with generative AI.

UBS has outlined an investment framework that includes three layers of the AI Value Chain: enabling, Intelligence, and Application layers.

The enabling layer includes the physical infrastructure, like AI data centers, that is required for training and running generative AI algorithms. UBS estimates that annual capital expenditures in this layer will reach $331 billion between 2027 and 2028, driven by investments made in AI servers.

UBS notes that AI servers are likely to capture the majority of the value from the enabling layer.

Due to the size of AI computing, the majority of companies will likely consume cloud services. We expect to generate $185 billion of value creation by 2027.

The intelligence layer consists of generative AI algorithms, large language models (LLMs), and computing resources that are derived from the enabling layers. This layer, which is still in its early stages of monetization but plays a foundational role in AI, will continue to grow despite being in its early stages.

UBS stated that “we expect this layer to grow the most into 2027, given its small base.”

UBS strategists have said that the most monetization potential is in the application layer. This includes software applications and services powered by AI. The opportunity is hard to quantify, however, at this stage.

This layer includes tools such as AI co-pilots and personal assistants that have already shown significant productivity gains. Microsoft’s GitHub co-pilot, for instance, generated $100 million in revenue by 2023, and grew by 40% year-overyear with 1.3 millions users.

Strategists wrote: “With developer productivity increases of 50-60%, it is expected that the creation of software code will accelerate.”

UBS believes that the enabling layer is where the biggest opportunities lie in the near-term. The bank continues to expect that the ratio of application layers to the enabling layer and intelligence layer will result in limited bottom-line profits for the application layers during the initial stages.

When choosing a carrier, keep these tips in mind

It is easy to see the increased revenue that comes from switching carriers, but it is often overlooked how much money is involved. When you factor in the time spent searching for a new lease, attending orientation and other interruptions to your routine, the cost can be thousands.

If you compare revenue and costs, rather than just paying per mile, your net income may not be better with a different carrier. Search for carriers who haul the type of freight you want and operate in the area you are interested in. List as many carriers as you can.

Choose a name from the list and find a reason to not choose it. You might not be qualified for the job because of your lack of experience or if you don’t have a tractor that is newer.

Put it on your list of carriers you cannot eliminate. Follow these steps when you reach five:

Contact carriers directly. Request copies of their lease agreements. Make notes after reading each lease. List what you like, don’t like, and don’t know. If a fleet cannot or will not send an agreement, cross it off the list.

Call the carriers to ask about their lease. Make sure you fully understand and are satisfied with how cooperative they are. If you don’t get clear answers about the lease, you may run into the same problems later.

Visit the headquarters of each company if there are several. You may find it time-consuming and expensive, but you want to eliminate unnecessary risks when you design your business.

Interview key personnel. Request to visit each department that you would be dealing with as a lease owner-operator. Before your visit, prepare questions for each department – dispatch, safety, compliance, operations, and settlement. Do you think that they will still have time after you sign your lease to discuss these matters?

[ Related: Your rights under the trucking law]

Questions to ask prospective carriers

Compensation. Find out if fuel surcharges exist and if they’re included in the base pay or paid separately. Check if the fuel surcharges are nationwide or regional, and what miles per gallon rate is used to calculate the surcharge — 6 or 7 MPG is common. Confirm that the entire surcharge is passed on to the owner-operators.

Ask the carrier if it offers compensation for empty miles, pay for loading and unloading or reimbursement of lumper charges. Do they reimburse tolls? Do they pay fuel taxes or do they charge you back? When are settlements paid out?

Does the carrier impose a chargeback? Ask about the cost of liability insurance and fleet management systems, such as electronic tracking devices or logging devices.

The use of hourly pay for detention (the time spent waiting in the shipper’s and receiver’s locations) is becoming more common. Does the carrier pay detention? Is it guaranteed, regardless of whether the money is collected from the shipper/receiver or not?

Some carriers still use old practices, but many have moved to hourly pay plans with detention-pay systems. These are often billed at the end of one or two free-time hours.

This link will allow you to download the PIB book.
Independent owner-operators operating under their own carrier authority can charge direct shippers up to $100 per hour for excessive detention.

Overdrive

Examining the average income plus fixed costs

ATBS

Clients in 2023

Detention rates were found to be $82.20 per hr

It would be appropriate to compensate wasted time on the docks.

Home Time. When assessing routes, miles and loads, ask if there are any routes or regions that could accommodate your desired home time. Ask about specialized jobs, such as heavy hauls or loads with high touch. Ask the carriers about routes and miles available, and ask their operators how many miles they are getting.

Culture. Some carriers want to control what you do and others will let you have plenty of freedom. Some companies offer limited benefits to owner operators, such as fuel networks or insurance assistance. Don’t ignore the possibilities of small carriers, especially if you want more operational freedom.

Business philosophy. Does your carrier’s business philosophy match yours? Ask if company drivers are dispatched ahead of owner-operators or if company drivers receive better loads. Even owner-operators working for the same company may receive significantly different pay. The difference can be up to 30 cents per kilometer. Would you be in the top tier of the carrier — or in the bottom tier?

It’s hard, but you can usually survive one switch per year. You could lose your business if you switch twice in a single year. If you enjoy the company culture, have a good working relationship with your manager and are able to get the pay and miles you need, you’re not going to be better off anywhere else.

The 2024 edition of “Partners in Business”, a coproduction between Overdrive/ATBS, offers more advice on many topics related to owner-operator businesses. Download it here.