Transportation Roundup: Railroad union rejects proposal

SSGA staff has compiled a roundup of current news in the container transportation industry. Click the links below to view the original stories.

A rail strike could again be looming after the third-largest railroad union rejected a proposal with employers Monday. The Brotherhood of Maintenance of Way Employes Division rejected the proposed five-year contract that included a 24% pay increase by 2024 but provided only one paid sick day. Both sides have agreed to resume negotiations until at least Nov. 19. Until then, railroad operations are expected to continue as normal. Read more here.

The U.S. Department of Labor (DOL) released a proposal that could raise costs for companies that rely on independent contractors such as trucking companies. The proposal released Tuesday would modify regulations for determining employee or independent contractor classification. The proposed text is similar to the guidance used by the Obama administration to classify workers as independent contractors. Comments can be submitted for 45 days on the rule after it is published in the Federal Register. Learn more about the proposal here.

Reports continue to predict lower import numbers, with October 9.4% lower year over year. November imports are expected to be down 4.8% and December imports down 6.1% from 2021, the lowest since February 2021. Retailers shipped merchandise earlier in the year to avoid inflation and prepare for supply chain disruptions, so they already have plenty of merchandise on hand for the holiday season. The lower import numbers are starting to improve backlog in intermodal yards. For example, as of Sept. 28, BNSF’s Dallas-Fort Worth intermodal terminal was storing about stacked 3,000 containers, a 25% drop from Sept. 12. The terminal is also having greater chassis availability and improved yard operations. Read more here.

The Federal Maritime Commission’s 58-page proposed rule on demurrage and detention billing requirements seeks to tighten container billing standards, including 30-day deadlines for invoices and limits on who can be billed, subjecting  ocean carriers and marine terminals “to stricter – and potentially costlier – billing requirements when they charge shippers for late containers,” according to American Shipper. The proposed rule is scheduled to be posted in the Federal Register this week. Read more here.