FMCSA Seeking Public Comment on Rewriting Hours of Service Rules

The Federal Motor Carrier Safety Administration (FMCSA) is embarking on the process of revising certain hours of service (HOS) provisions based on requests from Congress and the public in the wake of the deployment of electronic logging devices in trucks.To address these requests, FMCSA said it is seeking public input on the situation via an advance notice of public rulemaking in the Federal Register.FCMSA is asking for comment on the short-haul HOS limit; the HOS exception for adverse driving conditions; the 30-minute rest break provision; and the sleeper berth rule to allow drivers to split their required time in the sleeper berth. The request will be published in today's Federal Register with comments due 30 days after that.FMCSA will also hold a public meeting on the situation August 24 in Dallas, Texas.

Washington Insider: Grocers Chasing Amazon

The New York Times is reporting that the complexion of the grocery business changed recently when Amazon bought Whole Foods Market. The $13.4 billion deal set off a frenzy of deals and partnerships that continues to intensify.The Times details some of the shifts – Kroger announced a partnership with Ocado, an online grocery company, to use its robots to pack online orders. Target acquired Shipt, a start-up offering same-day delivery services, for $550 million. Walmart acquired Parcel, a start-up offering same-day delivery, and announced a partnership to use Alert Innovation, a small company that employs automated carts to fulfill grocery pickup orders at stores. It concludes that even greater changes for the sector are on the way.Chieh Huang, the chief executive of Boxed, asked the Times, “are technology folks like us going to figure out retail faster than the retailers figure out technology?” NYT noted that on Tuesday, Boxed announced that it had sold a minority stake to Aeon Group, one of the largest retail chains in Japan. Alongside investors including Alpha Square Group and CDIB Capital, Aeon invested $110 million in Boxed. The deal values the start-up at $600 million, according to a person familiar with the agreement.Food shopping is one of the last major holdouts to online retail. There are reasons: groceries are perishable, fragile and heavy. And, the customers often shop at the last minute, like to see the food they are about to eat and don’t want to pay high delivery fees, the Times says.Even Amazon, with its Amazon Fresh online grocery service, has struggled to gain ground in the business. The company’s Whole Foods deal, paired with Walmart’s 2016 acquisition of Jet.com, underscored that the future of selling food and household items requires cooperation between the digital natives and the old-school retailers.Grocery companies “are realizing that with Walmart and Amazon moving at their pace, you need to pick yours up, too,” said Greg Spragg, a former chief merchant at Sam’s Club, the wholesale retailer owned by Walmart, who now consults at GrowthWise Group. “I wouldn’t call it fear. I would call it a wake-up call.”Global food retailing is a $5 trillion business, with just 3 percent of that online last year—but online grocery sales are expected to double over the next four years, reaching $334 billion by 2022.Phil Lempert, a grocery industry analyst, predicted store closings for chains that do not evolve to meet the changing needs of customers. Stores offering curated selections, specialty items, cooking classes and the option to buy online and pick up in person will thrive, he said.“The bulk of stores — they haven’t been doing exciting things for a long time,” Lempert said.Josh Hix, chief executive of Plated, a meal kit start-up, said the Amazon-Whole Foods deal had immediately changed his discussions with grocery chains. Meal kit companies have a checkered record. But the grocery companies saw an opportunity to use Plated’s data and research on recipes and taste preferences.“The pace of follow-ups went from ‘This is interesting, and we’ll be in New York again in five months’ to ‘This is really interesting, and how’s tomorrow at 9 a.m. look for another call?’” Hix said. After years of not being taken seriously, “it was very cathartic.”Huang also fielded numerous acquisition offers for Boxed, creating a harrowing few months. Most of the big grocers “have wanted to kill us, partner with us, invest in us or buy us — all probably in the course of the same conversation,” he said.Huang, who previously founded a gaming company decided that the opportunity was too good to sell now but he has joined other technology companies in the Aeon Group, one of the largest retail chains in Japan.This ownership structure allows Boxed to license its technology to its retail competitors in the United States as they try to become more digital. The company says it is in talks with 10 or so potential partners for various pieces of its technology. They include mobile app technology, personalization software, a packing algorithm that maximizes space in shipping boxes, software that tracks item expiration dates, order management software and warehouse robotics automation.Boxed, which is based in New York City and has about 250 full-time employees, sells food and other everyday essentials in bulk.Grocery delivery is difficult to do affordably, but tech-driven efficiencies like those developed by Boxed, Amazon and others are forcing change on the industry, the Times says.“Consumers want convenience and will pay more for it,” said Michael Pachter, an equities analyst at Wedbush Securities. “Once they stop going to grocery stores,” he added, “grocery stores are going to have a problem.”So, change is coming rapidly to food retailing, a shift that is especially important because retailers are in a position to observe consumer preferences rapidly — and to make sure that producers and wholesalers comply when markets shift. The retail sector changes are a trend that producers need to follow closely as they intensify, Washington Insider believes. 

USDA Expected to Announce Trade Relief Package Friday

The Department of Agriculture is expected to release further details of its trade relief package Friday. The aid package previously announced by Agriculture Secretary Sonny Perdue will provide $12 billion in assistance to farmers hurt by President Trump’s trade agenda. Agri-Pulse reports that sources involved with the process say the payment rate for soybean farmers has been preliminarily proposed at $1.65 per bushel and one cent per bushel for corn farmers. However, further details regarding the plan have not been released officially, or leaked, leaving the industry in a phase of wonder.  USDA would not confirm or deny the proposed payment rates to Agri-Pulse. A USDA spokesperson told Agri-Pulse the department will not confirm the information because “it is based on preliminary information, is incomplete, and lacks context.” The proposed payment rates are subject to change as the plan is under review by the White House Office of Management and Budget.

Mexico, U.S., Expected to Announce NAFTA Agreement Thursday

A handshake between Mexico and the United States is expected today (Thursday) on the North American Free Trade Agreement. Politico reports the Trump administration is planning to formally announce a breakthrough with Mexico on the talks, which could pave the way for Canada to resume negotiations with the United States. The announcement is “on the schedule,” however, plans can, and often do, change in negotiations. The U.S. Trade Representative’s office maintains there “is no deal on NAFTA,” adding “there are major issues outstanding.” But, the White House could announce a “handshake deal,” that would be an effort to move forward with the talks beyond issues only between the U.S. and Mexico. Getting any agreement with Mexico would be positive for U.S. agriculture, as it would offer some market stability and a certain future, much needed as Mexico is a top buyer of U.S. corn. However, NAFTA is just one piece of the Trump trade puzzle that the industry wants solved quickly.

Farm Bill Conference Meeting Date Set

The farm bill conference committee will meet September 5th, according to Senate Agriculture Committee Chairman Pat Roberts. Roberts will chair the farm bill conference. The conference is set for one day after lawmakers return from the Labor Day Recess. Roberts also says committee staff members have made progress on the differences in the two bills on conservation, but not on other issues, according to E&E News. Typical first public meetings, as this one, are simply speech-filled affairs. Much of the work of the committee is expected to take place within closed-door meetings. The conference committee must find a bill that can pass both the House and Senate. But, with the House work requirements included, and with a ratio of Representative and Senators favoring the House, the biggest obstacle will be getting a bill that can pass the Senate. The Senate version of the bill does not include the controversial work requirement for Supplemental Nutrition Assistance Program participants.

Federal Proposal includes Flexibility for Livestock Haulers

A federal proposal regarding motor carrier rules could mean greater flexibility for farmers, ranchers and truckers. The American Farm Bureau Federation says the Federal Motor Carrier Safety Administration offers “an important proposal” that recognizes the difficulties inherent in moving farm commodities and livestock. AFBF’s Andrew Walmsley considers the proposal a “first step” to consider options for flexibility in hours-of-service rules. The federal agency is seeking public comment on revising current Hours of Service regulations, which limit the hours drivers may be on the road. The comment period will be open for 30 days. Walmsley says the agency must address motorist safety along with “the health and welfare of animals being transported.” The National Cattlemen’s Beef Association calls the proposal a “positive step,” but adds that more specific changes that “address the unique realities of the livestock hauling industry” are still needed.

Canada Expecting High-Volume Crop Season

Just as the United States is expected to harvest a bumper crop, according to the latest Department of Agriculture numbers, Canada is expecting a high-volume harvest as well. CNS Canada reports Canadian grain companies are bracing for a high-volume year. Grain companies say this year’s overall crop to be roughly equivalent to those of the past two years, when shipping backlogs were an issue. The Western (Canada) Grain Elevator Association says: “We’re still talking about the new normal here; what is a very large crop in Western Canada.” The U.S. has faced similar rail and shipment issues in the past. Canada has imposed penalties for service failures, but those regulations will not be enacted during the fall shipping season. Grain movement remains” fairly stable,” but the Associations does note that global trade disruptions this year could make the situation less predictable for grain companies trying to assess market risks.