Starting with high stakes legal risks surrounding broker liability, we explore the Supreme Court’s scheduled conference to discuss whether to grant certiorari on two landmark cases, Cox v. TQL and Montgomery v. Caribe II, which hinges on interpreting the safety exception in the Federal Aviation Administration Authorization Act (F4A).
We shift gears to financial risks, where dry van contract rates have remained stalled and fell only a marginal 0.3% year-over-year as of early September. This flat rate environment is extremely stressful because the average cost to operate a truck has increased 33% since 2019, compared to only a 17% rise in contract rates over the same period, leading to massive carrier attrition.
Operational security is also paramount as cargo theft tactics are becoming incredibly sophisticated, with Mexico serving as the epicenter and accounting for 75% of all North American incidents in Q3. Furthermore, we analyze the surprise leadership shift at CSX, where the board named Steve Angel as the new president and CEO, following activist investor pressure over persistent underperformance metrics compared to other Class I carriers.
Finally, we cover the ultimate labor battleground: the fight for driver hours and pay, as the FMCSA proposes pilot programs that could allow for up to 17-hour driving windows. Many drivers argue that the solution is not more hours but mandatory federally-mandated detention pay, suggesting compensation should kick in after just 30 minutes of waiting at docks.
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