Blog

ADVOCATING FOR OUR INDUSTRY IN THE CAPITAL

By Mark Fiorini, President of Westgate Global Logistics

 

Congressional site visits are a highly effective advocacy tool by helping to establish vital relationships while raising awareness of 3PL issues we face. I was privileged to represent Westgate and other TIA members as we gathered in Washington, D.C. at the TIA 2025 Policy Forum this month. We participated in an important day of meetings where we met with PA state representatives and their staff to ask for support with ongoing issues and concerns, while offering suggestions for improvement.

It was a successful effort in bringing attention to three major issues we face – freight fraud, modernizing outdated regulations and promoting safety by establishing a uniform standard for carrier selection.

 

Fighting Fraud In The Supply Chain

Being bipartisan, the freight fraud topic received a lot of attention and support because everyone can agree on preventing fraud and theft. There has been a 1,500% increase in fraud since 2021 and an estimated $35 billion in losses each year.

H.R. 880 / S. 337 also known as the “Household Goods Bill” aims to combat fraud and theft in the household goods moving industry by enhancing the Federal Motor Carrier Safety Administration’s (FMCSA) authority and providing tools to increase accountability.

Key provisions are:

  • Reinstate the FMCSA’s authority to administer civil penalties for violations of unauthorized brokerage activities.
  • Establish a principal place of business requirement.
  • Identify fraud commonalities to strengthen enforcement.

 

Modernizing Outdated Regulations & Promoting Safety

The Surface Transportation Reauthorization is a congressional bill to fund and set the rules for freight safety and supply chain policy. We asked for support on the inclusion of these provisions in the bill text.

Broker Modernization Act

  • Repeal 371.3(c) which was an antiquated regulation on broker rate transparency prior to deregulation, and no longer needed.
  • Finalize MAP-21 broker certification which has not been enforced after being put in place nearly a dozen years ago.
  • Clarify ‘Dispatch Services’ which in many cases today are being operated very similar to brokerages, but without the proper authority or insurance.

 

Motor Carrier Safety Selection Standard Act (MCSSSA)

  • Establish a uniform federal standard for carrier selection: regulatory clarity, reduces legal risks, and strengthens safety.

 

Ways to Advocate For Our Industry

Being an active member of Transportation Intermediaries Association (TIA) has been a vital way to advocate for my business and our industry. If we aren’t the ones lobbying for the 3PL industry, who is?  All of us work hard every day to provide great service to our customers, while attempting to build new customer relationships with the goal of establishing a reputation that will provide success for years to come. TIA sets the ethical standards for the 3PL industry, represents our interests before government bodies, and advocates for regulations that promote fair competition, safety, and efficiency in the transportation sector. I would highly recommend joining the TIA if you haven’t already or contributing to their PAC that raises funds to help build relationships with Members of Congress who can support our goals and initiatives.

A recent Senate subcommittee hearing, “Shifting Gears: Issues Impacting the Trucking and Commercial Bus Industries in the U.S.,” indicates an effort to do just that. The hearing, which will help shape the next major highway bill, laid bare a list of industry concerns that have long been at the top of the agenda.

 

Here are the themes that resonated throughout the meeting.

 

    • Safety Enhancements: The discussion emphasized the need for enhancing safety, including the use of advanced safety technologies, post-crash drug and substance testing, and ensuring driver compliance with safety regulations. There was also a call for modernizing the safety measurement system for buses.

 

    • Reduce Regulatory Burden: There was a strong emphasis on examining and potentially eliminating outdated or unnecessary federal regulations that do not contribute to safety but impose significant costs on the industry. An example given was the rule requiring manual placement of safety triangles during emergency stops.

 

    • Workforce Challenges: The discussion delved into issues related to driver retention, high turnover rates, and the need for fair wages and benefits to support the long-term health of the workforce.

 

    • Infrastructure Needs: There was a consensus on the need for infrastructure improvements, particularly the chronic shortage of safe truck parking and public access to federally funded facilities for commercial buses.

 

    • Technology and Automation: The role of new technology, especially autonomous vehicles, was a significant topic. Lawmakers and industry leaders discussed the need for a clear federal framework for regulation while also addressing labor concerns about potential job displacement.

 

    • Freight Theft and Security: The hearing addressed the growing problem of cargo theft and fraud, with calls for greater federal coordination to address the issue.

 

The goal of the hearing was to help inform and guide upcoming legislation. The hearing was specifically held “in the context of the next surface transportation reauthorization,” which is a major, multi-year bill that authorizes funding and policy for the nation’s surface transportation systems.

 

How to Advocate For Our Industry

The Transportation Intermediaries Association (TIA) has been a vital way to advocate for our industry and they help to get issues in front of members of Congress. Attending the TIA’s Annual Policy Forum in Washington, D.C. is a great way to actively advocate for your business and the needs of our industry. Learn more about the TIA’s Policy Forum here: https://tianet.org/policyforum

The U.S. Department of Transportation (DOT) has introduced a proposal to eliminate or revise approximately two dozen federal trucking regulations, aiming to modernize the rulebook and ease what it describes as unnecessary burdens on drivers and the transportation industry.

Announced on May 29, the initiative is framed as a move toward government efficiency and practical regulatory reform. Transportation Secretary Sean Duffy stated that the changes target outdated, duplicative, or ineffective rules that fail to deliver measurable safety improvements, adding that the department’s goal is to create a more effective and responsive regulatory framework.

While some of the proposed changes might seem technical or minor at first glance, they could significantly reduce the administrative workload for drivers and motor carriers, DOT said. One notable example is the elimination of the requirement that trucks display certification markings on rear-impact guards from the manufacturer—a regulation that industry groups have long criticized as redundant.

 

Other proposals involve:

  • Removing the rule that requires commercial driver’s license (CDL) holders to self-report traffic violations to their home state.
  • Revising lighting requirements so that truck tractors towing trailers are exempt from having license plate lamps if they aren’t clearly visible while towing.
  • Updating tire standards to eliminate the need for load restriction markings on sidewalls, as these are no longer considered necessary for safety compliance.
  • Removing certain obsolete safety regulations under several Federal Motor Vehicle Safety Standards (FMVSS), including those related to seat structure, side impact protection, and roof crush resistance.

 

Another proposed change would eliminate the requirement for semitrailers and trailers to be equipped with retroreflective sheeting. DOT explained that since most modern trailers already feature these safety materials, the mandate has become unnecessary.

 

In addition, the agency plans to:

  • Rescind the regulation that requires trucks to carry operator manuals for their electronic logging devices (ELDs) and maintain a list of self-certified vendors.
  • Update the definition of “medical treatment” in the context of accident reporting, aligning it with the latest regulatory guidance that clarifies when treatment must be provided away from the accident scene.
  • Modify roadside inspection procedures so that motor carriers and intermodal equipment providers are no longer required to sign and return completed inspection forms to state agencies.

 

While these adjustments are technical, collectively they aim to streamline compliance efforts for drivers and carriers without compromising safety, according to DOT. The department emphasized that this deregulation effort could eliminate over 73,000 words from the Federal Register — a substantial reduction in federal code complexity.

This package of reforms also builds upon a broader federal initiative to reevaluate existing rules across industries. As part of that effort, DOT has been consulting with independent truckers, trade associations, and small businesses to determine which regulations are helpful and which have become unnecessary obstacles.

The department’s outreach and ongoing review process reflects a growing emphasis on ensuring that federal oversight remains both effective and practical. By focusing on what works and eliminating what doesn’t, the DOT hopes to support a regulatory environment that enhances industry performance while preserving the safety of the nation’s highways.

The transportation sector is watching closely to see how these changes unfold, and whether this streamlined regulatory approach will have the intended benefits for drivers and the supply chain at large.

Inflation continues to impact the transportation industry in 2025, though the picture is nuanced and evolving. The broader economy is showing signs of moderation, with consumer spending cooling and industrial production facing headwinds. While overall transportation CPI has seen some moderation or even declines in recent months due to factors like falling gasoline prices and airline fares, several key areas continue to experience significant inflationary pressure.

 

Producer Price Index Signals Industry Pressure

On June 12, the Bureau of Transportation Statistics (BTS) released a key update on transportation industry cost pressures. It revealed that the Producer Price Index (PPI)—a measure of inflation from the perspective of producers of goods and services—showed an overall rise in freight transportation and equipment costs.

From May 2024 to May 2025, the transportation services PPI changed, by mode:

  • Air: +1.9%
  • Rail: +2.1%
  • Truck: +1.8%
  • Water: -2.9%
  • Arrangement of freight and cargo: -0.1%

Air transportation services saw a 1.9% rise in producer prices over the year, while rail transport led with a 2.1% increase. Truck transportation followed closely with a 1.8% uptick. In contrast, water transportation recorded a significant drop of 2.9%, and arrangement of freight and cargo dipped slightly by 0.1%. Taken together, these changes reveal rising costs across most shipping modes, particularly in high-demand sectors such as air, rail, and truck, foreshadowing elevated prices throughout logistics chains.

 

On the equipment side, rising PPIs translate to higher capital outlays for carriers. In a period of supply chain realignment, driven by reshoring, just-in-time rebalancing, and decarbonization investments, such cost pressures compound operational stress. Fleets upgrading to meet sustainability mandates or replacing aging assets now face steeper price increases for vehicles, locomotives, containers, and aircraft parts. In an industry already grappling with port strain, and demand volatility, higher input costs squeeze margins and risk passing inflation onto consumers.

 

Fuel Instability

While diesel fuel prices were notably low at the start of June, a recent geopolitical flare-up in the Middle East may reverse that trend. On June 3, the Department of Energy reported retail diesel at just $3.451 per gallon, the lowest weekly average since September 2021, marking an 18.8¢ drop from early April levels. However, tensions between Israel and Iran since mid‑June have triggered a sharp reversal. U.S. ultra‑low‑sulfur diesel futures surged 8% on June 13, hitting their highest mark since February, as markets priced in the risk of supply disruptions and strain on refining capacity. European diesel prices rose nearly 15%, outpacing crude, underscoring the sensitivity of diesel markets to Middle East instability. While U.S. diesel inventories remain 15% below the five‑year average, fresh geopolitical risks could drive further rallying, forcing transport providers to prepare for renewed fuel volatility.

 

About Westgate

You can always count on Westgate Global Logistics to keep you up-to-date on industry news. Our passion for delivering exceptional logistics services continues to be at our core and is why we have thrived in this constantly changing industry. CONTACT US today to experience how we can improve your shipping efficiencies.

 

 

Welcome to Industry Insights Q3 — your go-to source for the latest developments shaping the transportation and trade landscape. In this edition, we’re tracking major tariff shifts shaking global markets and unpacking the proposed 2026 DOT budget, with key impacts on infrastructure, air travel, and the future of green transportation. Let’s dive in.

This summer, the National Motor Freight Classification (NMFC) system will undergo a major update, set to take effect in July 2025. These changes are poised to significantly impact carriers, third-party logistics providers (3PLs), and shippers, especially concerning the cost of shipments based on their density.

 

Key Changes in the NMFC System

The updates to the NMFC will primarily concern the density of shipments. As density becomes a more central factor in determining LTL shipping costs, freight will be classified based on its space and weight combination. This shift is meant to reward denser shipments, which are more space-efficient, and charge more for low-density freight that takes up excessive trailer space without contributing much weight.

 

What Will Cost More?

The shipments most affected by price hikes will be those with low density. Shipments with densities under four pounds per cubic foot are expected to see significant price increases. For example, low-density items like certain footwear and clothing will experience higher shipping costs under the new classification system. These goods occupy more space on a truck without contributing enough weight to justify the cost, leading to higher fees.

 

What Will Cost Less?

On the flip side, denser freight will benefit from reduced rates. Items with densities between four and six pounds per cubic foot—and those heavier than eight pounds per cubic foot—are expected to see cost reductions. Industrial products or heavy machinery, which typically fall into these denser categories, will see lower costs as a result of the classification changes. This shift rewards businesses that ship heavier, denser freight.

 

What Will Stay the Same?

Some shipments will remain unaffected by the changes, particularly those with a density between six and eight pounds per cubic foot. These shipments should retain their current shipping rates, as they fall into the category that remains unchanged under the new system.

 

Impact on Carriers and 3PLs

For carriers, the updated classification system means adjustments to their pricing models and a recalibration of how they assess freight costs. Carriers will need to adapt their systems and training to account for the new density-based classifications. This may involve renegotiating contracts or reworking pricing strategies with shippers and 3PLs.

 

3PLs, in turn, will play a critical role in advising shippers on how these changes will impact their logistics strategies. With their expertise in navigating the complexities of freight classifications, 3PLs can help shippers optimize their shipments, recommend strategies to mitigate cost increases, and assist in ensuring that shipments are classified correctly to avoid costly errors.

 

The Time to Act is Now

As the July 2025 updates approach, shippers must start reviewing their freight classifications and assessing how the changes will impact their shipping costs. It’s essential to begin working with carriers and 3PLs now to ensure a smooth transition to the updated system.

 

At Westgate Global Logistics, we’re here to help. Our team can guide you through the new classification changes and develop strategies to optimize your shipping operations. Don’t wait until the last minute—reach out to Westgate Logistics today to start planning for the upcoming changes and ensure your supply chain remains cost-effective and efficient.

Less than truck load (LTL) shipping can be an extremely efficient way to move shipments when you don’t need to fill an entire trailer. However, if the LTL shipping process is not implemented well, it can have some potential disadvantages, costing the company more time and money than necessary.

Packing pallets correctly for shipment is a serious safety issue as well and could be full of risk if the business isn’t careful. If your pallet isn’t stacked properly, you risk damaging the product, injuries from toppling pallets or workers tripping over the overhang, and time lost trying to fix the improperly packed pallet.

In this guide, we explain how you can avoid injuries, damage, and claims with a few industry proven tips.

It’s important to consider the following:

    • Pallet, skid, or crate?
    • Proper stacking
    • Shrink wrapping technique
    • Thinking you don’t need help

 

 

PLUS!

We included some ways to avoid common LTL shipping mistakes you could be making that hinder productivity and negatively impact the bottom line…

 

DOWNLOAD your free copy now!

 

Reach out to us for a complimentary review of your packaging to see how we can help optimize your freight processes.

 Inflation Rises in January

 

Inflation in the U.S. experienced a notable increase in January, with the Consumer Price Index (CPI) rising by 0.5% from December. This marks the most significant monthly surge since August 2023. The uptick elevated the annual inflation rate to 3%, up from 2.9% in December. Key contributors to this inflationary trend include higher costs for used cars, auto insurance, and eggs. The persistent inflationary pressures have led economists to anticipate that the Federal Reserve may delay any further interest rate cuts. Despite previous reductions that brought the benchmark rate down to a range of 4.25% to 4.5%, the central bank is expected to maintain or potentially increase rates to manage the ongoing inflation concerns. This development comes amidst President Trump’s calls for lower rates and his administration’s mixed signals on economic policies, including tariffs and deregulation.

 

 

Unintended Consequences of Tariffs and Strategic Responses

 

The recent imposition of tariffs by the Trump administration has introduced significant uncertainty into global supply chains. These abrupt policy shifts have led companies to take risk-mitigation actions, such as stockpiling materials and seeking alternative suppliers, to navigate the unpredictable trade environment. While the tariffs aim to bolster domestic manufacturing—evidenced by a reduction in U.S. imports from China from over 21% to less than 14% and a doubling of domestic manufacturing investment to over $220 billion annually—they have also resulted in inefficiencies and increased operational costs for businesses. To address these challenges, companies may consider diversifying their supply bases, mapping multi-tier supply chains to identify vulnerabilities, and engaging in proactive scenario planning to better prepare for potential disruptions.

 

 

Truck Drivers Avoiding Parking Management Apps

 

A recent federal study conducted by the Texas A&M Transportation Institute has revealed that truck drivers are slow to adopt app-based parking management platforms, even in the face of parking shortages along major interstate corridors such as I-80 and I-94 in Iowa and Wisconsin. The reluctance to utilize these apps has resulted in trucks parking in unauthorized areas, including entrances, exits, and rest stops, potentially compromising safety and efficiency. The study aimed to analyze truck parking usage, identify unauthorized parking patterns, and assess the feasibility of deploying parking capacity management platforms to optimize available spaces. Despite the potential benefits of this technology in assisting drivers to comply with hours-of-service regulations and alleviate parking shortages, their low adoption rate suggests a need for increased awareness and user-friendly solutions to encourage widespread use among truck drivers.

 

 

About Westgate

You can always count on Westgate Global Logistics to keep you up-to-date on industry news. Our passion for delivering exceptional logistics services continues to be at our core and is why we have thrived in this constantly changing industry. CONTACT US today to experience how we can improve your shipping efficiencies.

 

 

 

Sources:

https://www.ttnews.com/articles/truck-parking-app-resistance?utm_source=chatgpt.com

Artificial Intelligence (AI) has been a hot topic for the last few years and will continue to be a buzz word in logistics in 2025. And while automating tasks and optimizing processes has a lot of potential to improve efficiency and save costs, blanket use of AI may not be the best approach in all areas.

 

Pro: Shipping Optimization

Route optimization, inventory management, and carrier selection can all be boosted by the use of AI. Algorithms can analyze everything from real-time traffic and road conditions while also monitoring inventory based on demand predictions and real-time sales data. AI could also be used to evaluate carriers to determine their reliability based on past data.

 

Pro: Predictive Analytics

It can also be a powerful tool in analyzing historical data and market trends to predict future demand. AI could help with mitigating risks as it identifies potential disruptions in the supply chain due to economic fluctuations or natural disasters. This foresight helps companies stay ahead of the curve and adapt to changing circumstances.

 

Con: AI Customer Service

Have you ever tried to use a chatbot and found yourself spending more time trying to explain the question or problem than you would like? While AI-powered chatbots can be helpful for simple inquiries, they often fall short when it comes to complex issues or personalized support. Relying too heavily on AI for customer service can lead to frustration and a poor customer experience. Human interaction and expertise are still crucial for building relationships and resolving complex situations effectively. The technology becomes useless if the shipper doesn’t have time to use it. Since the shipper is short on time, the broker’s ability to monitor and manage the technology is key to a successful process. Westgate has a reputation for offering high levels of service by offering direct communication from our excellent staff. These folks work hard every day to leverage the efficiency of the tools we have in place, while preserving our core focus of providing the best customer experience possible.

 

The Human Element Remains Essential

Westgate will continue to follow the latest technological improvements and capabilities available in the logistics industry, as well as implement AI in areas that increase visibility for our customers and productivity for our staff. However, our primary objective is to maintain the human interaction element that our customers have always expected of us. As AI technology continues to evolve, it’s crucial to strike the right balance between automation and the human touch.

 

Reach out to us to experience our boutique approach to streamlining logistics through an extensive network of resources, trained brokerage experts and unique personal service.

On November 20, 2024, the Federal Motor Carrier Safety Administration (FMCSA) published a notice of proposed rulemaking (NPRM) entitled “Transparency in Property Broker Transactions.” The Transportation Intermediaries Association (TIA) notes that the proposed rule is continued overreach from this federal agency, who continues to be derelict in their duties of assigning safety ratings to motor carriers and addressing the rampant freight fraud. During the COVID-19 pandemic there were no complaints registered to the National Consumer Compliant Database. But there were more than 80,000 complaints related to freight fraud.

The Transportation Intermediaries Association (TIA) argues that current broker transparency regulations are outdated and irrelevant in today’s market. These regulations, established in the 1980s, no longer apply to the modern freight industry.

The TIA has stated:

 “TIA has consistently maintained that the broker transparency regulation, rooted in the 1980s, is obsolete and un-American. Originally implemented in an era following trucking deregulation when brokers acted as commissioned sales agents for motor carriers, this rule has no place in today’s highly transparent marketplace. Any attempts to expand or enhance these outdated provisions should be shelved, and the FMCSA should redirect its attention to fulfilling its primary mission—ensuring safety on our highways and addressing rampant freight fraud.”

The TIA is encouraging everyone to comment on this NPRM in the next 60 days! TIA has made it easy for you to post a comment here: https://www.votervoice.net/Transportation/campaigns/119122/respond

 

Sources:

https://www.thetrucker.com/trucking-news/business/reactions-mostly-negative-flow-in-regarding-fmcsas-nprm-rulemaking-proposal

https://www.votervoice.net/Transportation/campaigns/119122/respond