Author: NHUMPHREY

The Department of Labor (DOL) released a draft poster that employers will be required to distribute to their employees, which outlines the requirements of the new family medical leave act and sick leave provisions.

As TIA continues to monitor the situation surrounding COVID-19 and it’s impact on the 3PL and transportation industries, here is your Morning Update for March 26. As a reminder, you can find all the latest information, resources, guidance, and news from TIA’s COVID-19 Response Center.

GENERAL UPDATE:
During these unprecedented times, TIA continues to serve you and build toward the future. Just today, we released a contract consideration resource to guide your contracts with shippers. We reminded you of all the model contract resources available to TIA Members.

We have also created guidance on applying for an SBA loan, even before the Senate and House take action on the new loans and grants.

Our Government Affairs team is also calling members to identify Chief Financial Officers, Chief Marketing Officers, and Chief Technology/Information Officers so that we can build communities of these folks. We all know the power of interacting as TIA Members. As we come through the COVID-19 crisis, we want to be able to expand upon our interconnections.

CONGRESSIONAL UPDATE:
On March 25, the U.S. Senate passed S. 3548, the Coronavirus Aid, Relief & Economic Security Act (CARES Act) in a 96-0 vote. The bill has now been transmitted to the U.S. House of Representatives, where they are expected to vote to approve the package on a voice vote on Friday, March 27.

TIA has produced a detailed overview of Phase III of the CARES Act. TIA will provide additional information and updates on the CARES Act as they become available.

INSURANCE UPDATE:
We’re hearing the following from the insurance industry: Those 3PLs who specialize in freight servicing flatbed and specialized are feeling the early pinch, which could impact broker bond claims in the near future. Those who premium finance their insurance policies will start experiencing the finance company wanting to change payment terms as they are experiencing increased defaults already and the flexible terms from the past will likely change with the renewal.

Members should expect premiums to increase as underwriters have been consolidating over the past year or two for Contingent AL and since they have struggled to see any underwriting profit, the impact on the economy and stock market for investment income returns have disappeared for the time being.

With the underwriting challenges above, expect the policy forms being offered for Contingent AL and Cargo as well as E&O will tighten as well in coverage.

MISCELLANEOUS:
DAT is also putting out information regarding COVID-19 on a regular basis, which can be found here.
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Today should be Opening Day, so here’s Frank Sinatra and Gene Kelly singing “Take Me Out to the Ballgame” from 1949. Soon, we’ll be back in the park watching the great American pastime. Go Nats!

Just before midnight last night, the Senate approved unanimously the CARES Act or phase 3 of the coronavirus relief efforts. Linked is a summary of the pertinent issues for our members. The House is expected to take this up on Friday by voice vote, unless a Member objects, which would cause House Members to travel back to Washington for a roll call. I don’t anticipate that happening, but this is Washington, DC…

As TIA continues to monitor the situation surrounding COVID-19 and it’s impact on the 3PL and transportation industries, here is your Afternoon Update for March 25. As a reminder, you can find all the latest information, resources, guidance, and news from TIA’s COVID-19 Response Center.

CONGRESSIONAL UPDATE:
The Senate agreed on a stimulus package (Phase III of relief efforts) early this morning and will likely pass it this afternoon. It remains to see when the House will take it up.

They could do it by unanimous consent (UC), but rumors are circling that the New York delegation could oppose a UC. Setting up a situation where House Members would have to come back to Washington and take a roll call vote on the package. Stay tuned for more details.

DHS UPDATE:
On a call with the U.S. Cybersecurity and Infrastructure Security Agency (CISA) Director Chris Krebs, it was reported that they have notified as many political and police entities as possible about the essential nature of trucking.
They want to know about problems by emailing to [email protected].

CISA Director Krebs also suggests that people carry letters indicating that they are part of an essential industry.

AMERICAN LOGISTICS AID NETWORK UPDATE:
On a call with the American Logistics Aid Network (ALAN) this morning, it was reported that some warehouse operators are experiencing problems with people coming to work. It was also reported that some local law enforcement was harassing truckers.

If you’re experiencing any challenges, please let us know by emailing [email protected] or [email protected].

It was reported to us that some retailers are refusing the delivery of containers of goods they ordered. This could lead to excessive demurrage charges. Again, if you’re experiencing this please let us know.

DEPARTMENT OF LABOR UPDATE:
The Department of Labor (DOL) has released guidance documents and resources for employees, employers, and FAQs, on the Families First Coronavirus Response Act (FFCRA), which the agency has been tasked with implementing.

TIA understands that these documents will not be the final guidance on the issues, as we await rulemakings from the DOL in the coming days. Stay tuned for more updates on this issue.

• FFCRA Employee Guide
• FFCRA Employer Guide
• FFCRA Frequently Asked Questions

NÖEL PERRY’S DAILY COVID-19 UPDATE:
Yesterday was had modestly hopeful results with improvements in several Western European countries. Note there are five countries whose numbers yesterday fell, but who also gained the previous two days (highlighted in yellow). That could be an early sign of inflection.

The yellow cells in the Days to Inflection column have had a promising trend across at least three days. The big negatives were Spain and, especially, Iran. Iran is now 30 days in with a still increasing count.

As expected, the US had the biggest increase in cases. We are still clearly in the upward trend stage and should not slow down for four or five more days.

You can see the effects of the length of contagion in the comparisons by region. Western Europe continues to lead the tragic parade. However, its new case percentage has fallen dramatically while North America’s has risen. This is an expected result.

A week from now Europe should be even lower and North American substantially lower. That is a good benchmark to watch. If that number does not lower, then the pandemic may be headed for the scale discussed in worst-case scenarios. There is little yet to suggest that, besides Iran’s data. Still, these numbers will tell us the outcome relatively soon.

MISCELLANEOUS:
DAT is also putting out information regarding COVID-19 on a regular basis, which can be found here.

Finally, thanks to Scott Marks, TIA’s new Government Affairs Manager, for his work putting together guidance for SBA loans.

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We’ll be back tomorrow with the Morning Edition featuring COVID-19 updates and information that came through overnight.

Hoping that Noel is on the right path, here’s Duke Ellington & Ella Fitzgerald’s “I’m Beginning to See the Light.”

Below are new resources and guidance documents that the Department of Labor has placed online for the new laws that have been enacted during phase 2 of the coronavirus relief efforts.

• Employee Guide
• Employer Guide
• Q&A

The Commercial Vehicle Saftey Alliance (CVSA) just announced that they will be delaying the International Road Check until a later date due to concerns over COVID-19. Thank you, Kenny Lund, for starting this movement!

Secondly, early this morning, the Senate agreed on a package that will likely pass this afternoon, remaining on if the House will take it up. The House could do it by unanimous consent (UC), but rumors are circling that the New York delegation could oppose a UC. Then setting up a situation in which House Members would have to come back to Washington and take a roll call vote on the package. Stay tuned for more details.

As TIA continues to monitor the situation surrounding COVID-19 and it’s impact on the 3PL and transportation industries, here is your Morning Update for March 25. As a reminder, you can find all the latest information, resources, guidance, and news from TIA’s COVID-19 Response Center.

OPERATIONAL NEEDS SURVEY RESULTS:
We had 126 members respond to the quick survey. Here’s what you reported:

Regarding employees, 17% of respondents said they were continuing to hire quality staff, 55% reported that they’re delaying hiring new staff or contractors, and only 25% said they would be reducing staff.

Regarding your business, 43% of respondents said they would seek financial guidance, 26sai% said they would seek legal advice, 21% said they would seek to reassess their insurance policies, and 53% said they would be adjusting their business plan.

60% of respondents said they were communicating more frequently with your customers and 43% said they were looking to provide their customers with specific resources to help them deal with issues surrounding COVID.

29% of respondents said they would utilize their TIA membership more, and 24% said they would assist TIA’s Advocacy efforts more. That must mean that the rest of you are already maxing out with TIA. Remember, you can re-purpose any TIA material for your customers!

CONGRESSIONAL UPDATES:
The Senate and White House reached agreement on a business support bill last night. We’ll have the details in the afternoon edition.

INDUSTRY UPDATE:
A former employee of Grizella, who has her Certified Transportation Broker (CTB) designation and is now part of the hospitality industry, announced several hotels open for truckers.

• Clarion Williston – $89.00 / Night + Tax
• El Rancho Williston – $89.00 / Night + Tax
• Minot Microtel Inn & Suites by Wyndham – $49.00 / Night + Tax
• Sleep Inn & Suites Minot – $79.00 / Night + Tax

Amenities Available for Truckers:

• Conveniently Located Close to Truck Stops
• 2-for-1 Drinks at Hotels with Bar & Grills
• A Drink Waiting for Them Upon Arrival
• Curbside Take-Out
• Newly Updated Rooms
• Complimentary Breakfast
• Fitness Room
• 24 Hr. Front Desk Assistance

As India begins to shut down its almost 1.5 billion people, enjoy Tommy Dorsey’s “Song of India.”

Chris Burroughs | Vice President of Government Affairs

MARCH 25, 2020 – ALEXANDRIA, VIRGINIA – The press is awash in stories of different industry segments stepping up to the plate in support of one another during the coronavirus disease (COVID-19) crisis. The media is highlighting the work of several professions, including doctors and nurses and their amazing work; volunteers throughout the country who are contributing a myriad of services within their communities; and truck drivers for keeping freight moving on our highways. These folks are doing amazing work during this tumultuous time. To this end, I want to highlight a group that’s also doing amazing work during this crisis and that’s you – America’s 3PLs.

Thank you for the incredible work you are doing to continue moving freight during this period of extreme disruption and uncertainty. While the reality is that with most freight, it’s the truck driver who physically hauls and delivers freight to its destination; but without YOU, that freight would still be sitting at distribution centers across the country. YOU are among the unsung heroes of the COVID-19 crisis who – without missing a beat – are keeping America moving.

My colleagues and I have spoken with several TIA Members over the last week and have heard some truly amazing and inspirational stories of community leadership and humanitarian efforts.

Bob Biesterfeld, President & CEO of C. H. Robinson, reported that in addition to contributions they made to Give2Asia during the initial COVID-19 outbreak in Wuhan Province, they are donating an additional $250,000 to support those impacted by COVID-19. Specifically, they have donated to St. Christopher’s Truckers Relief Fund to provide financial assistance to truck drivers during these increased times of need; the World Food Programme, Feeding America and Second Harvest Heartland to support hunger relief efforts; and a number of local nonprofits.

I also spoke with John Miller, Owner of Plains Dedicated, LLC, who stated, “at Plains Dedicated, we are working tirelessly to ensure that our customer’s products are being delivered to our country’s grocery stores. We have seen this across the 3PL industry, with all logistics companies stepping up in support of the increasing demands. Our industry works with the medium to smaller truck lines that don’t typically work directly with shippers; and with 90% of carriers being less than ten trucks, our industry is essential to ensuring that food, medical supplies, and emergency products are getting in the hands of the people that need them. If the product is on the shelves in the store, a logistics company made sure it made it there.”

Omar Singh, President & CEO of Surge Transportation, works with a large Fortune 500 household food shipper who is inundated with calls from motor carriers and cannot handle the volume due to the tedious onboarding process and EDI integration. This food shipper is funneling these calls to Surge Transportation to manage their transportation needs.

“3PLs are more essential – now more than ever – as our shipper customers continue to lean even more on us to be their transportation management resource,” said Singh. “At Surge, we are handling more volumes for our customers, we have hired additional employees to handle the increased capacity, and we are working around-the-clock to make sure that products are being delivered to their end destination – as quickly and safely as possible. We are also launching our new dynamic pricing tool, which will allow us to quote a lane within seconds. I am proud of the response our industry and my peers have made throughout the supply-chain in this time of need.”

We don’t know how long this crisis is going to last, but one thing is for sure: TIA Members and 3PLs throughout the country will continue to be a leader on moving freight, ensuring shelves are stocked, hospitals are receiving the supplies that they need, and Americans are getting what they need in a timely fashion.

On behalf of the TIA Staff, I want to extend a sincere thank you to our members who are our heroes throughout the year for the hard work for, and dedication to, this great nation.

As a reminder, you can visit TIA’s COVID-19 Response Center for the latest information, resources, guidance, and news on the crisis.

As TIA continues to monitor the situation surrounding COVID-19 and it’s impact on the 3PL and transportation industries, here is your Afternoon Update for March 24. As a reminder, you can find all the latest information, resources, guidance, and news from TIA’s COVID-19 Response Center.

ESSENTIAL BUSINESS FORM LETTER:
TIA has prepared a form letter for our members to utilize when their shipper and motor carrier customers ask questions about logistics companies being deemed “essential” businesses.

The form letter references the federal Department of Homeland Security (DHS) guidance, that clearly promulgates that 3PLs are considered “essential” businesses during the COVID-19 pandemic.

This is obviously a very fluid situation with the landscaping changing rapidly, and we want to make sure you have the necessary guidance and information you need to continue your business.

FMCSA GRANTS CDL/CLP WAIVER:
FMCSA has granted a waiver to CDL and CLP holders who have experienced issues with obtaining access to DMV offices and to medical examiners, many of whom are refusing to take appointments for DOT physicals due to contamination concerns. The waiver extends the date of expiration – until June 30 – of applicable CDLs, CLPs, and non-CDL licenses of commercial drivers, as well as medical certificates that would otherwise expire between March 1 and June 30. Please let us know if you have any questions.

ROLE OF 3PLS IN FOOD & GROCERY MANAGEMENT:
Text Kathy Fulton, Executive Director of the American Logistics Aid Network, is doing an outstanding job – as always – helping the allied industry serve through a crisis. She needed information for a presentation and Evan Armstrong, President of Armstrong & Associates, was able to provide assistance.

We thought you would be interested in the information as well. Kathy wanted to know the amount of food and groceries managed by 3PLs. Evan reported that last year, gross 3PL revenue from food and related groceries was 10.8% of the total Domestic Transportation Management 3PL Segment for all truckload modes. This includes gross revenues from customers in the following industry subsegments: beverages, food consumer products, food production, food services, and wholesale food and groceries.

Thanks, Evan! Keep going Kathy!

GLOBAL IMPACT OF COVID-19:
Ever the data scientist, TIA’s Economist Noel Perry has put together the following charts on the spread of COVID. For your convenience, I have summarized the latest COVID-19 stats in two tables. I’ll send out the data and a quick summary daily.

The first gives country breakdown and status for the major countries hit so far in Asia, Europe, North America. The stats suggest the following: it takes two to four weeks to get from the beginning of significant numbers of new cases to the inflection point where the numbers turn down. Italy, which has apparently finally reached that point has been the longest with South Korea the shortest.

There are five countries in Western Europe whose latest numbers are, down, indicating inflection. We will know with more confidence about that in a few days. Using that data, one would expect the U.S. to reach inflection within the next ten days. That means more days of rising numbers and worry for us. The numbers tentatively suggest that the highly infectious periods last from 25 days (South Korea) to 50 days (Italy). For the U.S., that would mean stability and the relaxation of economic constraints in three to four weeks. For safety, think May 1.

One good note. So far, the U.S. has low fatality rates. Perhaps the worst is to come, but we are off to a promising start. Same for Germany and the UK. It is important to note that record-keeping for this crisis is rudimentary at best. The death numbers are probably the most reliable. However, the case numbers are speculative at best. They are probably much higher.

That said, this is the data we have. I trust it more than the ‘model’ projections used by some commentators. Some of those projections showcase and death estimates orders of magnitude higher than these numbers. For that to be true, either we are missing most of the cases or we are in for multiple waves of infection. In that regard, China and South Korea, the earliest examples, have had no second wave after a month of stability.

The regional numbers crudely summarized here show that geography matters. I have not included the many other countries that gave made little news so far. They total another third of cases. There is something about Western Europe that has made it most vulnerable. One wonders what will happen if the virus attacks large, less-developed populations in Asia and Africa. This data, however, represents much of the developed world and its dominant share of economic activity.

One good statistic, at least so far: even in Western Europe (the worst-hit region), only 1-in-2,300 people have gotten sick and 1-in-38,000 has died. In Italy, the numbers are 1-in-1,000 and 1-in-10,000 (respectively). This is nowhere near the terrifying black-death type pandemic that some people fear.

Although this bug spreads far more quickly and easily compared to more common flus, we think it will almost certainly kill fewer people in the developed world than a normal annual flue cycle. In 2018, for instance, a bad flu season killed 80,000 in the U.S. We currently sit at less than one percent of that sad number.

With employees working from home for the foreseeable future, turn that time that they used to spend around the water cooler taking a TIA distance learning course…

We’ll be back tomorrow with the Morning Edition, featuring COVID-19 updates and information that came in overnight.

Until then, enjoy Benny Goodman and “Sing, Sing, Sing.”

Due to the COVID-19 pandemic, the Transportation Intermediaries Association (TIA) and the Owner-Operator Independent Driver Association (OOIDA) sent a letter to the Commercial Vehicle Saftey Alliance (CVSA) asking them to postpone the International Road check scheduled for May 5-7, 2020. We continue to update the interactive Freight Disruptions Map with several states that have issued a shelter-in-place order, and the map is turning red pretty quickly. We also developed a sample letter that is available for use with your motor carrier or shipper customers if questions arise about being classified as “essential.”