Executive Commentary |
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“ Potential service failures by transportation intermediaries must be addressed up front to help avoid uncertainty and additional costs .”
Hon . Steven R . Blust
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road instead of by the largely unsubsidized private freight rail network ,” Tax Foundation noted in a recent report . This is only getting worse with dwindling gas tax revenues .
Congress should correct this by transitioning to a system that accounts for the weight and distance traveled by trucks and phasing out the gas tax . Lawmakers took a step in this direction in the last transportation bill , only for the US Department of Transportation ( DOT ) to slow walk a national pilot program . The DOT should advance the program to support further adoption .
Contrary to some policy hurdles , innovative technologies boost safety and efficiency and should be encouraged . Yet in many instances , policies governing rail diverge significantly from trucking frameworks , where technology is seen as an essential tool in reducing accidents . This dichotomy risks perverting the market over time .
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There was a time when railroads and trucks argued over these policy matters . Not so today . Trucking capacity is often strained , and highway congestion is here to stay . Railroads can alleviate these challenges and grow in the process . For the full supply chain to thrive , modal equity can foster a better future .
Containerization and Intermodal Institute ( CII )
Hon . Steven R . Blust
Past President www . containerization . com
One of the greatest challenges facing US surface transportation in 2025 will be agreeing to and upholding
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last- and first-mile transportation arrangements in accordance with service agreements between ocean common carriers and shippers .
As a result of more than a decade of discussions and discontent concerning detention and demurrage ( D & D ), the COVID-19-induced “ Great Congestion ” prompted the US Ocean Shipping Reform Act of 2022 . This included directing the Federal Maritime Commission ( FMC ) to establish regulations to address the issues .
After months of public comments and review , the FMC published the final rule on D & D , which became effective on May 28 , 2024 . The final rule specified that the billing party can only invoice the party for whom ocean transportation or storage was provided or the consignee to whom delivery of the cargo is to be made .
These provisions also specify that services that are performed by vendors , including motor carriers , are to
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