Transportation industry groups say priorities in Biden presidency should be infrastructure, pandemic. | 2020-11-09 | DC Velocity | The Supply Chain Xchange
Transportation industry groups say priorities in Biden presidency should be infrastructure, pandemic.
Incoming administration proposes $1.3 trillion investment over 10 years in the Highway Trust Fund, transportation sector competitive grant programs, U.S. Army Corps of Engineers projects.
Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
Transportation industry leaders are pointing to two priorities for their goals in a Biden presidency beginning in 2021, urging the new administration to seek solutions to long-delayed infrastructure improvements and to stopping the deadly coronavirus pandemic.
The groups issued their statements following the news on Saturday that President-elect Joe Biden was projected to have won both the popular vote and the electoral college count, and is scheduled to be inaugurated as president on January 20, slightly more than 10 weeks from now.
“On behalf of the entire industry, congratulations to President-elect Biden on his victory,” Ian Jeffries, president and CEO of the Association of American Railroads, said in an emailed statement. “The President-elect is no stranger to America’s railroads, and the freight rail industry looks forward to working with his new administration to advance our shared goals including getting Americans back to work, strengthening the economy and reducing greenhouse gas emissions. The challenges his new Administration and our nation face are great, but the freight railroads want to be – and must be – part of the solution.”
One of the crucial groups responsible for creating new freight policies at the federal level is the U.S. House of Representative’s Committee on Transportation and Infrastructure. Following the election results, the chairman of that committee will continue to be Rep. Peter DeFazio (D-OR), who on Sunday said the group would renew its focus on Infrastructure Week, the annual collection of legislative initiatives and press events intended to draw attention to the nation’s need for improvements to roads and bridges.
“The President-elect has made it clear he is ready to work with Congress to deliver results for all Americans with bold investments in infrastructure that help everyone, from large metro areas dealing with unreliable transit and soon to be jam-packed highways, to rural communities that suffer from bridges in poor condition and deteriorating roads,” DeFazio said in a statement. “President-elect Biden plans to ‘Build Back Better,’ and that’s exactly what our Nation needs to move our infrastructure into the 21st century while creating millions of family wage jobs, supporting U.S. manufacturing, and harnessing American engineering and ingenuity.”
Details of proposed infrastructure improvements on Biden’s campaign website say that the new administration calls for investing $1.3 trillion over 10 years on projects such as stabilizing the Highway Trust Fund to build roads and bridges, creating electric-vehicle charging networks, a national high-speed rail system, the development of low-carbon aviation and shipping technology, and infrastructure fortifications to withstand the effects of climate change.
More specific to the logistics sector, that plan also seeks to invest in freight infrastructure, including inland waterways, freight corridors, freight rail, transfer facilities, and ports. That focus would also roughly double funding, from $1.8 billion to $3.5 billion a year, for competitive grant programs like the Better Utilizing Investments to Leverage Development (BUILD) Transportation Discretionary Grants program (formerly known as Transportation Investment Generating Economic Recovery, or TIGER) and Infrastructure For Rebuilding America (INFRA).
Additional freight sector improvements would “prioritize investments that will improve supply chains and distribution, reduce shipping costs, and boost U.S. exports,” the Biden website says. That would occur by increasing funding for the U.S. Army Corps of Engineers by $2.5 billion per year, supporting infrastructure projects to keep goods moving quickly through our ports and waterways, as well as providing federal funding for lock modernization projects on inland waterways.
Groups seek plan to control the pandemic
Any plans to focus federal policies and investments on freight transportation in 2021 will also have to include a strategy to support economic activity during a prolonged coronavirus pandemic. Facing that challenge, industry groups also called on Biden today to renew the federal response to fighting Covid-19.
"We applaud Mr. Biden for making Covid-19 management and relief priority number one, and commend his efforts to build a Covid-19 Task Force focused on science, the health and well-being of all Americans, and the strengthening of the U.S. economy. We look forward to working with the Biden administration on these priorities in 2021,” Steve Lamar, the president and CEO of the American Apparel & Footwear Association (AAFA) said in a release. "Until a reliable vaccine is widely available, and the economy can regain the strength necessary to sustain itself, fighting Covid-19 using all our health and economic tools must be our top priority – both for the rest of 2020 and into 2021.”
"The extraordinary events of 2020 and the Covid-19 pandemic have significantly altered life as we know it. SOCMA welcomes the opportunity to highlight the important role specialty chemical manufacturers play in the U.S. recovery with President-elect Biden and other newly elected leaders,” Abril said. “SOCMA members are creating lifesaving vaccines and pharmaceuticals, as well as consumer and industrial products essential in mitigating the impact of the disruption to American lives. To continue our vital role, SOCMA will advocate for business certainty and relief from regulatory burdens that could impede this goal."
Likewise, the Main Street Alliance, a trade group for small businesses, urged a focus on improved pandemic policies. “Small businesses are looking forward to an administration that will create a rational and effective plan to contain the virus and support small businesses through this pandemic and beyond. We are committed to working with the new Congress to ensure much-needed small business support. That includes a robust, comprehensive plan to deal with the ongoing coronavirus pandemic and economic impact,” the group said in a release.
ReposiTrak, a global food traceability network operator, will partner with Upshop, a provider of store operations technology for food retailers, to create an end-to-end grocery traceability solution that reaches from the supply chain to the retail store, the firms said today.
The partnership creates a data connection between suppliers and the retail store. It works by integrating Salt Lake City-based ReposiTrak’s network of thousands of suppliers and their traceability shipment data with Austin, Texas-based Upshop’s network of more than 450 retailers and their retail stores.
That accomplishment is important because it will allow food sector trading partners to meet the U.S. FDA’s Food Safety Modernization Act Section 204d (FSMA 204) requirements that they must create and store complete traceability records for certain foods.
And according to ReposiTrak and Upshop, the traceability solution may also unlock potential business benefits. It could do that by creating margin and growth opportunities in stores by connecting supply chain data with store data, thus allowing users to optimize inventory, labor, and customer experience management automation.
"Traceability requires data from the supply chain and – importantly – confirmation at the retail store that the proper and accurate lot code data from each shipment has been captured when the product is received. The missing piece for us has been the supply chain data. ReposiTrak is the leader in capturing and managing supply chain data, starting at the suppliers. Together, we can deliver a single, comprehensive traceability solution," Mark Hawthorne, chief innovation and strategy officer at Upshop, said in a release.
"Once the data is flowing the benefits are compounding. Traceability data can be used to improve food safety, reduce invoice discrepancies, and identify ways to reduce waste and improve efficiencies throughout the store,” Hawthorne said.
Under FSMA 204, retailers are required by law to track Key Data Elements (KDEs) to the store-level for every shipment containing high-risk food items from the Food Traceability List (FTL). ReposiTrak and Upshop say that major industry retailers have made public commitments to traceability, announcing programs that require more traceability data for all food product on a faster timeline. The efforts of those retailers have activated the industry, motivating others to institute traceability programs now, ahead of the FDA’s enforcement deadline of January 20, 2026.
Inclusive procurement practices can fuel economic growth and create jobs worldwide through increased partnerships with small and diverse suppliers, according to a study from the Illinois firm Supplier.io.
The firm’s “2024 Supplier Diversity Economic Impact Report” found that $168 billion spent directly with those suppliers generated a total economic impact of $303 billion. That analysis can help supplier diversity managers and chief procurement officers implement programs that grow diversity spend, improve supply chain competitiveness, and increase brand value, the firm said.
The companies featured in Supplier.io’s report collectively supported more than 710,000 direct jobs and contributed $60 billion in direct wages through their investments in small and diverse suppliers. According to the analysis, those purchases created a ripple effect, supporting over 1.4 million jobs and driving $105 billion in total income when factoring in direct, indirect, and induced economic impacts.
“At Supplier.io, we believe that empowering businesses with advanced supplier intelligence not only enhances their operational resilience but also significantly mitigates risks,” Aylin Basom, CEO of Supplier.io, said in a release. “Our platform provides critical insights that drive efficiency and innovation, enabling companies to find and invest in small and diverse suppliers. This approach helps build stronger, more reliable supply chains.”
Logistics industry growth slowed in December due to a seasonal wind-down of inventory and following one of the busiest holiday shopping seasons on record, according to the latest Logistics Managers’ Index (LMI) report, released this week.
The monthly LMI was 57.3 in December, down more than a percentage point from November’s reading of 58.4. Despite the slowdown, economic activity across the industry continued to expand, as an LMI reading above 50 indicates growth and a reading below 50 indicates contraction.
The LMI researchers said the monthly conditions were largely due to seasonal drawdowns in inventory levels—and the associated costs of holding them—at the retail level. The LMI’s Inventory Levels index registered 50, falling from 56.1 in November. That reduction also affected warehousing capacity, which slowed but remained in expansion mode: The LMI’s warehousing capacity index fell 7 points to a reading of 61.6.
December’s results reflect a continued trend toward more typical industry growth patterns following recent years of volatility—and they point to a successful peak holiday season as well.
“Retailers were clearly correct in their bet to stock [up] on goods ahead of the holiday season,” the LMI researchers wrote in their monthly report. “Holiday sales from November until Christmas Eve were up 3.8% year-over-year according to Mastercard. This was largely driven by a 6.7% increase in e-commerce sales, although in-person spending was up 2.9% as well.”
And those results came during a compressed peak shopping cycle.
“The increase in spending came despite the shorter holiday season due to the late Thanksgiving,” the researchers also wrote, citing National Retail Federation (NRF) estimates that U.S. shoppers spent just short of a trillion dollars in November and December, making it the busiest holiday season of all time.
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
As U.S. small and medium-sized enterprises (SMEs) face an uncertain business landscape in 2025, a substantial majority (67%) expect positive growth in the new year compared to 2024, according to a survey from DHL.
However, the survey also showed that businesses could face a rocky road to reach that goal, as they navigate a complex environment of regulatory/policy shifts and global market volatility. Both those issues were cited as top challenges by 36% of respondents, followed by staffing/talent retention (11%) and digital threats and cyber attacks (2%).
Against that backdrop, SMEs said that the biggest opportunity for growth in 2025 lies in expanding into new markets (40%), followed by economic improvements (31%) and implementing new technologies (14%).
As the U.S. prepares for a broad shift in political leadership in Washington after a contentious election, the SMEs in DHL’s survey were likely split evenly on their opinion about the impact of regulatory and policy changes. A plurality of 40% were on the fence (uncertain, still evaluating), followed by 24% who believe regulatory changes could negatively impact growth, 20% who see these changes as having a positive impact, and 16% predicting no impact on growth at all.
That uncertainty also triggered a split when respondents were asked how they planned to adjust their strategy in 2025 in response to changes in the policy or regulatory landscape. The largest portion (38%) of SMEs said they remained uncertain or still evaluating, followed by 30% who will make minor adjustments, 19% will maintain their current approach, and 13% who were willing to significantly adjust their approach.
Specifically, the two sides remain at odds over provisions related to the deployment of semi-automated technologies like rail-mounted gantry cranes, according to an analysis by the Kansas-based 3PL Noatum Logistics. The ILA has strongly opposed further automation, arguing it threatens dockworker protections, while the USMX contends that automation enhances productivity and can create long-term opportunities for labor.
In fact, U.S. importers are already taking action to prevent the impact of such a strike, “pulling forward” their container shipments by rushing imports to earlier dates on the calendar, according to analysis by supply chain visibility provider Project44. That strategy can help companies to build enough safety stock to dampen the damage of events like the strike and like the steep tariffs being threatened by the incoming Trump administration.
Likewise, some ocean carriers have already instituted January surcharges in pre-emption of possible labor action, which could support inbound ocean rates if a strike occurs, according to freight market analysts with TD Cowen. In the meantime, the outcome of the new negotiations are seen with “significant uncertainty,” due to the contentious history of the discussion and to the timing of the talks that overlap with a transition between two White House regimes, analysts said.