3 Minute Update: Key Transportation News

February 12, 2024

FMCSA announces the departure of Administrator Robin Hutcheson:

Portrait of Robin Hutcheson, administrator for FMCSA in front of blue background and American Flag Robin Hutcheson ended her three-year tenure at The Federal Motor Carrier Safety Administration (FMCSA) on Jan. 26. Hutcheson first served as the Deputy Assistant Secretary for Safety Policy within the Office of the Secretary, and then as the Administrator of the FMCSA.

Her milestone achievements include combatting the COVID-19 pandemic on air and ground transportation, leading the development of the National Roadway Safety Strategy, developing key components of the Bipartisan Infrastructure Law, and helping to secure billions in funding – including for the Safe Streets for All program. As FMCSA Administrator, Hutcheson focused on the safety of commercial motor vehicle drivers to improve safety outcomes and strengthen the supply chain.[i]

Industry Snapshot:

Fuel Prices: The gasoline index increased 0.2% in December 2023, following a 6.0% increase in the previous month. (Before seasonal adjustment, gasoline prices fell 5.8% in December.)[ii] The U.S. regular gasoline retail prices averaged $3.095 per gallon on 1/29/24 which is $-0.394 down from the average a year ago. And the retail diesel prices were $3.867 per gallon on average, $-0.755 down from one year ago.[iii]

Tonnage: The for-hire truck tonnage index increased 2.1% in December after falling 1.4% in November. “While 2023 ended on a better note, truck tonnage remained in a recession as it continued to fall on a year-over-year basis,” said ATA Chief Economist Bob Costello. “With that said, for-hire contract freight, which is what comprises our index, in December was 2.6% above the trough in April. For the entire year, tonnage contracted 1.7% from 2022 levels. This makes 2023 the worst annual reading since 2020 when the index fell 4% from 2019, and the only year since 2020 that tonnage contracted.”[iv]

Economy: The Consumer Price Index (CPI) increased 3.4% over the last 12 months according to the U.S. Bureau of Labor Statistics. The CPI rose 0.3% in December 2023 after only rising 0.1% in November. The index for shelter continued to rise in December, contributing over half of the monthly all-items increase. The energy index rose 0.4% over the month as increases in the electricity index and the gasoline index more than offset a decrease in the natural gas index. The food index increased 0.2% in December, as it did in November. The index for food at home increased 0.1% over the month and the index for food away from home rose 0.3%.[v]

Red semi truck parked at the docks waiting to get loaded

Compliance, Fraud and Claims Oh My!

In the logistics industry over the past year, we have seen a rising amount of fraud wreaking havoc. Whether it is Identity fraud or just plain old theft, it is on the rise.

At Simple Logistics, we take this very seriously. So much so that we have been taking the most extreme precautions to make sure we only use the best carriers in the industry to move our client’s freight. We created an extensive process with 44 checkpoints to validate and verify that our carriers are who they say they are, and that they pass our Safety, Identity, and Compliance Standards, which we call SIMPLE VERIFIED. This process is ongoing throughout their time as a carrier partner.

We take this seriously because our clients need to trust that we have their backs when it comes to Fraud and preventing claims. We’ve implemented these extra steps to ensure we keep the bad people out! If you would like to know more about our process for vetting, and all the other amazing things we do as a trusted logistics provider, please give us a call or email your Logistics Consultant at Simple Logistics today!