Trucking groups press Congress for end to redundant background checks


Trucking news and briefs for Wednesday, July 13, 2022:

Trucking, supply chain groups press for end to redundant background checks

A number of trucking groups are among a coalition of supply chain and transportation organizations urging Congress to pass legislation that would do away with what the coalition calls “redundant background checks and duplicative fees” to obtain certain security credentials.

The American Trucking Associations, Truckload Carriers Association, Owner-Operator Independent Drivers Association, National Tank Truck Carriers and the National Private Truck Council are among the groups who penned a letter to U.S. House and Senate members Monday.

The letter calls on Congress to pass the Transportation Security Administration Security Threat Assessment Application Modernization Act, which would allow truck drivers and other transportation workers to use one valid TSA background check to enroll in multiple TSA programs, including the Transportation Worker Identification Credential (TWIC) and the hazmat endorsement. The bill has been introduced in both the House and the Senate.

The act “is a long overdue solution for essential workers like truck drivers, pipeline operators, longshore workers and warehouse managers, among many others, who must obtain these credentials as a condition of employment,” the coalition said.

The coalition added that truckers and others in the supply chain “deserve a federal credentialing process that respects their time and money,” noting that the legislation “directs the implementation of a streamlined system that supports America’s workers.”

XPO announces branding for new brokerage spin-off

XPO Logistics (CCJ Top 250, No. 6) announced Tuesday that a new company identity has been created in connection with the planned spin-off of its tech-enabled brokerage platform.

The spin-off is named RXO to reflect the company’s commitment to provide reliability multiplied by outperformance. RXO will go to market with the tagline “Massive capacity. Cutting-edge technology.” XPO unveiled the new company’s identity on a landing page, RXO.com, where visitors can register to receive news about the spin-off’s upcoming milestones and leadership appointments.

“Our spin-off now has a name — RXO — bringing it one step closer to becoming a standalone industry leader,” said Brad Jacobs, chairman and CEO of XPO Logistics. “Our best-in-class truck brokerage business will be the keystone of RXO’s asset-light platform, poised to continue to take share of a growing market.” Drew Wilkerson, XPO’s president, North American transportation, has been named to become chief executive officer of RXO.

“The new brand embodies our competitive positioning of reliable outperformance, propelled by multiple tailwinds,” Wilkerson said. “RXO will launch with a widely adopted digital platform that gives shippers and carriers the automation they demand. I’m excited to lead our team to even greater achievements as a tech-enabled pure-play.”

As previously announced, XPO intends to separate its asset-based less-than-truckload business from its asset-light brokered transportation platform, creating two independent, publicly traded companies with vast growth prospects in North America. The spin-off’s largest component will be truck brokerage, with complementary brokered services for managed transportation, last mile logistics and global forwarding.

Usage of the RXO name, logo and other brand components will become effective upon the spin-off of RXO, Inc., which XPO expects to complete in the fourth quarter of 2022.

3PL DC Logistics acquired by investment group

Bonsai Capital announced Tuesday the acquisition of DC Logistics, a third-party logistics (3PL) business based in California’s Inland Empire and focused less-than-truckload, warehousing and inventory management. Terms of the deal were not disclosed.

With a search that began in March 2020, Bonsai Capital specifically sought out a stable, profitable company with potential for operational efficiencies and institutionalization targeting the growing transportation, warehouse and logistics industry before selecting DC Logistics.

Founded by Robert, Andrew and Edward Pier in 2006 and headquartered in Jurupa Valley, California, DC Logistics has an extensive profile of services readily available that include warehousing and distribution, full truckload, less-than-truckload, custom invoicing and auditing, optimization and engineering solutions, as well as packaging and shipping supplies.

The company has more than 200 employees, including 84 drivers, a fleet of 130 trucks, five rail spurs, and 10 distribution facilities that currently occupy 600,000 square feet with the ability to flex up to 1,000,000 square feet of space available for warehousing, distribution, and supply chain management needs.

DC Logistics currently operates in California, Oregon, Nevada, Arizona, Colorado and Louisiana, and the new management team sees immediate expansion opportunities in Texas and Florida, and, later, in Utah and New Mexico. The team anticipates uninterrupted business continuity for employees, vendors and suppliers as a result of the acquisition, as it looks to enhance existing services capabilities while fulfilling identified opportunities for organic and inorganic growth.



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