Welcome to the WHAT THE TRUCK?!? Newsletter presented by Truckstop. In this issue, challenge issued to ATA and OOIDA; Tesla Semi scam; has the market bottomed?; and more.
Heavyweight matchup
The Great Debate 2? — The American Trucking Associations and the Owner-Owner Independent Drivers Association are at each other’s throats again, this time over President Joe Biden’s independent contractor law.
The brouhaha is over Julie Su, California’s secretary of labor, and her hostility toward independent owner-operators under the AB5 law. The ATA feels that Su’s words are empty regarding a driver being able to keep independent contractor status and sees it as similar to how health care regulations were implemented.
“It’s laughable to think that these folks give a hoot about small business truckers. They’ve been on the wrong side of every issue for the last 40 years.” – OOIDA President Todd Spencer
John Kingston reports, “[OOIDA Executive Vice President Lewie] Pugh made a point that many other observers have made: that the Biden IC rule is not significantly different from the Trump administration rule and less stringent than what was first proposed.”
“If you’re truly an independent contractor, subleased or whatever to another motor carrier, you shouldn’t be controlled as an employee, meaning speed limiters and driver fleet management tools like that must be put into your truck.” – Pugh
Now, FreightWaves CEO and founder Craig Fuller has offered a forum for the two to debate at FreightWaves’ F3 conference this November. There’s $25,000 on the line for each participant that would go to the charity of their choice? Heck, they both get $50,000 if they wear sumo outfits!
Will OOIDA and the ATA step up the plate?
Tesla Semi scam
North American Council for Freight Efficiency
Nontransferable — A new scam has been uncovered in Southern California, and this one is targeting zero-emission fleets that have unused Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) vouchers. CCJ reports that the suspected scammer is “attempting to sell non-existent reservations at a premium for the soon-to-be-released truck.” He was looking to receive $5,000 per Tesla Semi reservation that he’d transfer.
“Why are you ghosting me? I thought we were super close?” – Alleged Tesla Semi scammer to Talon Logistics Inc.’s Mike Bush
Talon Logistics Inc.’s Mike Bush was one of the potential victims of the scam, but he was able to smoke out the ruse fairly quickly. For one thing, Tesla Semis have been notoriously hard to get. Only Pepsi has been able to obtain them, and Tesla says large-scale production won’t begin until 2025.
In addition, the scammer used a Gmail address, and Bush was aware that Tesla Semi reservations are not transferable.
Bush says the scammer eventually got very aggressive but ultimately his fraud failed. Now he’s upset that Bush ghosted him. I recommend every fleet do the same.
Have you been hit by this scam? Email me.
Bottom of the cycle?
Cass report – Cass Information Systems showed year-over-year declines at their lowest in 17 months. Todd Maiden reports, “The Wednesday report said pressure on the for-hire truckload market is easing as demand for goods slowly improves and private fleets rein in capacity additions.”
SONAR
At the ports – FreightWaves’ Stuart Chirls reports, “The Port of Los Angeles handled a record-breaking 939,600 twenty-foot equivalent units in July, up 37% over the previous year. It was the busiest month in more than two years and the best July in the port’s 116-year history.”
Two weeks ago I was at the Port of Long Beach, where officials were very excited about their record-breaking volumes in June and said the forward-looking vessel schedule looked good.
The momentum looks to continue as volumes keep growing at ports of origin bound for the U.S.
The No. 1 word I’ve heard from logistics leaders over the past two months is uncertainty. Businesses hate it and right now they’re worried about the health of the market, the economy, potential for delays, the election and global conflicts.
Do you think we’re just seeing a pull forward that will recede in coming months, or do you think this momentum starts to build? Sound off in my email.
Storrowed PSA
The green monster – With moving season picking up in Boston, MassDOT has released its latest warning about The Hub’s most notorious roadway, Storrow Drive.
WAGA
Big bust – A farmer’s market just outside of Atlanta now has the dubious distinction of being the location of the biggest drug seizure of its kind ever in the U.S. Drug Enforcement Administration agents confiscated more than 2,300 pounds of meth concealed in a shipment of celery at Atlanta State Farmers Market in Forest Park.
“It was hiding in the celery. Obviously, we threw away the celery. That didn’t make it to the store.” – DEA Special Agent in Charge Robert Murphy
DEA Special Agent Murphy says the agency was tipped off about that tractor trailer in advance. AP reports, “A Mexican citizen was arrested.”
WTT USA! USA! USA! – Head on over to WTTGear.com to get your WTT USA T-shirt and show your patriotic pride! They’re $30 and made from some of the softest Bella & Canvas cotton around. Readers of this newsletter can take 10% off with code WTTFans. Get yours today right here.
WTT Friday
How the Red Sea conflict is reshaping freight and the need for U.S. shipbuilding — Friday live at 12 p.m. Eastern, we’re joined by GCaptain’s John Konrad to talk all about the Red Sea conflict, America’s need for shipbuilding; and the decimation of the U.S. merchant marine.
What happens when a driver dies on the road? It can be incredibly challenging for surviving family members. That’s why Robert Palm started Truckers Final Mile, a charity dedicated to helping trucking families when the worst happens.
Plus, headlines, weirdness and more.
Catch new shows live at noon EDT Mondays, Wednesdays and Fridays on FreightWaves LinkedIn, Facebook, X or YouTube, or on demand by looking up WHAT THE TRUCK?!? on your favorite podcast player and at 5 p.m. Eastern on SiriusXM’s Road Dog Trucking Channel 146.
Now on demand
OOIDA urges DOT to proceed with caution on AI, autonomous trucks
What inventory levels are telling us about holiday peak season
The rest of the noise
- Bill aims to strip foreign shipowners’ liability protections
- Dick’s Sporting Goods planning regional distribution hub in Texas
- Pride Group closing could affect freight rates, driver market
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Don’t be a stranger,
Dooner