All The Supply Chain News You Need To Know 4/1 - 4/5
DSV buys Panalpina for $4.6 billion. DSV A/S’s offer of 180 francs per share was backed by some of Panalpina’s largest investors and will create one of the largest forwarding groups in the world. In combining with Panalpina, DSV will become the world’s third- or fourth-largest freight-forwarder and the No. 2 in air freight, DSV Chief Executive Officer Jens Bjorn Andersen said in a telephone interview on Monday, according to Bloomberg. DSV had previously bid $1.7 billion for CEVA Logistics AG, while Panalpina had been in talks with Agility. The new combined company is looking to change their name to DSV Panalpina A/S.
#ourtimematters campaign renews pressure on carriers to pay truckers for dwell time. On March 21st, The Virginia Port Truckers association sent a letter to over 100 major carriers requesting that drivers receive $60 per hour when port dwell times exceed one hour. The association is also requesting that drivers get paid overtime for work exceeding 40 hours due to congestion. No carriers have responded yet, according to SupplyChainDive.
Freight futures marketplace now open for trading. FreightWaves, Nodal Exchange, and DAT launched the market place last Friday with the opportunity to bid on contracts along several key trucking trade routes. Due to the volatile nature of the spot market, the exchange facilitates trades for parties interested in hedging their bets on escalating or declining cost per mile spot rates. Speculators are also welcome to play the market as there is no physical deal occurring between a carrier and a buyer. Instead, it’s a relationship between the futures buyer and the marketplace. “You’re not buying a future where a truck will show up and physically bump your dock,” says FreightWaves CEO Craig Fuller, according to Wired.
DOT mulling HOS rule changes. The Notice of Proposed Rulemaking was sent to the Office of Management and Budget last week. “I can’t go into the details or the specifics for this proposal, but let me note that the department understands the strong interest in increasing flexibility and is giving it serious consideration.” Transportation Secretary Elaine Chao announced at the Mid-America Trucking Show. The proposal looks at giving drivers more flexibility over mandatory break times, short haul exemptions, and other condition specific allowances.
“Black Smoke Matters” protest in MO happens ahead of April 12 national “Slow Roll.” The protest group is part of a larger, national collection of drivers who organize via Facebook. Last week’s “Slow Roll” ran east on I-44 from Joplin to Strafford, MO. The group wants ELD and other safety regulations to change. "If you're an owner-operator, and you're facing something that held you up, you're facing up to a 500-600 dollar fine now. That's basically your profit on the load. Now you're racing that GPS and you're racing your E-log as well. It's a dangerous situation. It's distracted driving at its finest," said Bill Bogar, a representative of the protestors, according to OzarksFirst.com.
Amazon Air doubles assets with purchase of Atlas and ATSG. “The board believes that the transactions provided for in the company’s various agreements with Amazon and its subsidiaries are of significant value to the company and its stockholders and critical to its long-term plans, and that any termination of the 2018 investment agreement resulting from the failure of the company’s stockholders to approve the share amendment would have materially adverse consequences to the company,” ATSG noted in the filing, according to The Loadstar.
Meanwhile, in this week's, "Where's my freight?!"
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