AI, digital twin technologies can help streamline supply chains, expert says

The global supply chain is undergoing a significant transformation, marked by tariffs, rising trade restrictions and evolving technologies. 

An emerging method for trade stakeholders to improve efficiency and respond to almost any disruption is through combining AI computer vision and digital twin technologies, Erez Agmoni, co-founder and general partner at Interwoven Ventures, said.

A digital twin is a virtual model that can replicate a supply chain. AI computer vision is a field of artificial intelligence that enables computers to “see” and interpret images and videos, mimicking human vision. 

“AI, digital twins, computer vision, I would say the intersection between those three is quite amazing,” Agmoni told FreightWaves in an interview. “Let me find new routes, new supply chain sources, new ideas. The more data you put into that, you’ll be able to create new scenarios on how to solve those types of things. So one day the scenario is a war, another day is tariffs, another day is Covid.”

New York-based Interwoven Ventures is an early-stage venture capital firm investing in technologies such as robotics and AI to transform the healthcare, manufacturing, logistics and transportation sectors. 

Before co-founding Interwoven Ventures, Agmoni’s career included being the global head of innovation at shipping giant Maersk, where he spearheaded using technologies to improve efficiency across the company’s supply chain ecosystem. 

Agmoni said his time at Maersk taught him the importance of first identifying what type of problems that need be solved.

“You have to do all this by saying, “what is my problem?” You’re not just bringing a digital twin for the sake of saying, ‘let me create a digital twin here,” Agmoni said. “You build it to solve this and these problems. You have to declare what your problems are first, so then you can actually measure them.”

The digital twin market in the U.S. is experiencing expanding growth, projected to increase from $3 billion in 2023 to $36 billion by 2028, according to MarketsandMarkets.

The AI computer vision market could see even more explosive growth, with an increase from $23.42 billion in 2025 to $63.48 billion by 2030, according to research from MarketsandMarkets

One of the first projects Agmoni used AI computer vision technology to solve at Maersk was how to efficiently unload containers at a cross-dock operation.

“They came to me and said, “hey, we want to be able to unload those containers, manually, unload them in a faster fashion,” Agmoni said. “I asked how long it takes you to unload this container? The first supervisor jumped in and said six hours. The other supervisor came and said it’s 11 hours. The third guy came and said nine hours. I said, “guys, you don’t even know how long it takes you.”

Streamlining a cross-dock operation is complicated because operators have to know how many containers need to be split or deconsolidated for separate destinations, or how many cartons and stock keeping units each one has, or the weight of each box, Agmoni said.

To help make the cross-dock operation more efficient, Maersk started with using AI computer vision by setting up smart cameras at the facility.

“We gave them eight months to learn the behavior of people, what things happen,” Agmoni said. “At the end of the eight months, when we started to kind of grow it and deploy it, we figured out that we can do 82% accuracy down to the minute prediction, which was amazing for cost. You can start measuring people, you can start incentivizing people, you can start giving tools to the supervisor to go and understand what goes wrong.”

Later, Maersk began using digital twin technology to help make its drayage operation more operational and cost efficient. 

“Every drayage operation you have to deal with multiple ports, multiple terminals, multiple warehouses, where you send it, multiple trucks, drivers, internal, external,” Agmoni said. “So they had to go to 13 different systems, get information, combine it all together, and decide on the dispatch of the day. It brought them to about 1.8 turns a day in terms of throughput of the capacity, which is very bad.”

Agmoni helped create a digital twin of the company’s drayage operation that would give them total visibility. 

“That by itself already saved millions of dollars,” Agmoni said. “Now that you have all the information sitting in one system, let’s optimize it. Now that computers have all the information, let me give all the different criteria of how I want to dispatch things and let the system come up with the best dispatch for the day.”

Digital twins greatest asset is its ability to create simulations, or what-if scenarios, Agmoni said.

“Whatever your new elements that you want to introduce, you throw it into the current real life scenario and you let the system simulate it and give you an output and it says, ‘if you want to give this price to the customer, you’re going to lose money,” Agmoni said. 

Maersk stops Haifa service prior to Iran missile attacks

The world’s second-largest container line suspended services to Israel’s busiest port just prior to Iranian missile attacks.

In an advisory Friday, Maersk (OTC: AMKBY) said, “After carefully analyzing threat risk reports regarding the ongoing conflict between Israel and Iran, particularly the potential risks of calling specific Israeli ports and their implications for the safety of our crews, Maersk has made the decision to temporarily suspend vessel calls at the Port of Haifa, Israel and also suspend cargo acceptance for Haifa.”

The carrier did not specify how long the suspension was expected to last.

The region erupted in fresh conflict June 13 when Israel initiated aerial assaults on military and nuclear targets in Iran. The United States launched its own bombing missions on Saturday, also striking nuclear facilities. 

Tehran retaliated on Monday with direct missile attacks against several locations in Israel, with at least one missile striking Haifa, as well as a U.S. military base in Qatar. 

The increased tensions helped push up some container rates.

SONAR data showed Drewry’s World Container Index rates from Shanghai to Rotterdam increased from $2,825 on June 12 to $3,171 on June 19. 

Find more articles by Stuart Chirls here.

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Samsara introduces 2025 North America Customer Advisory Board

SAN DIEGO – Samsara announced its 2025 North America Customer Advisory Board on Monday as the company kicks off its Samsara Beyond event. 

The 2025 North America Customer Advisory Board includes leaders from over 30 major organizations across various industries, such as Republic Services, Performance Food Group, Pike, DHL Supply Chain, and XPO. Members provide direct feedback that helps shape Samsara’s product roadmap, including innovations like Recognition, which uses AI insights to celebrate safe driving, and Asset Tag, which helps customers track equipment.

“Being on Samsara’s Customer Advisory Board has been incredibly valuable because we get to collaborate with other industry leaders and quickly see the results of our product feedback,” said James Banner, Senior Vice President of Administration and Safety at Pike. “It’s a unique opportunity to shape products that transform the way we operate.”

Banner listed the Asset Tag as a prime example. Pike advised Samsara on use cases and the product has now reduced theft and improved efficiency for Pike and many others.

“With all the changes AI is bringing to physical operations, the partnership between industry leaders and technology innovators has never been more important,” said Kiren Sekar, Chief Product Officer at Samsara. “Our advisory board isn’t just about adapting to change, but actively shaping the future of this industry and making a lasting impact, together.”

Connected Operations Awards Showcase Customer ROI

Samsara’s 2025 North America Advisory Board news comes on the heels of its Connected Operations Awards announcement, which highlights stories of its AI-powered platform enabling transformative results with customers across safety, efficiency, and sustainability. Samsara attributes the results its platform supports to its strong customer feedback loop and focus on customer success.

This year’s awards program saw a notable increase in applications, with enterprise submissions rising by 73% in the United States, 250% in Canada, 133% in Mexico, and 183% in Europe. Winners demonstrated measurable operational transformations across industries, from transportation and logistics to government and education. Several reported substantial financial and operational gains.

Maxim Crane Works, which won the Most Innovative Workforce award, saved over $13 million in maintenance costs by shifting to proactive maintenance strategies. Maxim Crane Works is a leading crane rental company in the U.S. with over 2,000 vehicles spread across over 50 locations, serving construction industries like petrochemical, oil and gas, commercial high rise, and freeway expansion. The company reduced its insurance premiums by exonerating drivers from not-at-fault accidents and false claims with dash cam footage.

Mohawk Industries, winner of the Excellence in Systems Efficiency award, closed gaps in planned versus actual routing, saving over $7.75 million annually by reducing wasted mileage by 25%. Mohawk Industries is the largest flooring manufacturer in the world, with 800+ tractors and 2,500+ trailers in its fleet. Use of the Samsara AI Dash Cams also led to a 13% reduction in accidents.

Mexicana Logistics, winner of the Excellence in Physical Security award, saw an 80% reduction in emergency detection times and a 97% reduction in saddle thefts. The Baja California-based company transports over 150,000 Class 8 trucks and 225,000 light vehicles annually. Notably, it successfully recovered 12 units and three drivers without damage from a single trip.

Republic Services, recipient of the Digital Transformation of the Year award, integrated 11 concurrent IT workstreams with Samsara after rolling out AI Dash Cams and Fleet Telematics fleet-wide for the first time in company history. Republic Services is one of the largest environmental service companies in North America, with over 42,000 employees and 18,000 trucks.

“Samsara has been a game-changer for our operations,” said Brett Rogers, VP Operations Technology at Republic Services. “Their platform has enabled us to make significant strides in safety and efficiency, and transformed the way we manage our assets and workforce.”

Other North American honorees included Alto Experience (Most Sustainable Operations) and Quality Custom Distribution (Safest Operator), among others. European winners included companies like Delifresh (Excellence in Driver Engagement), RubanBleu (Most Sustainable Operations), Vp Brandon Hire Station (Safest Operator), and OCU Group Limited (Industry Innovator). 

The North America Customer Advisory Board is scheduled to meet today, Monday, June 23, at Samsara Beyond. The company will celebrate its Connected Operations Award winners during a ceremony on Wednesday, June 25.

Samsara is also set to introduce several new product innovations during the keynote address on Tuesday, June 24, at 9 AM PT. Virtual registration for the Beyond keynote is currently open. The event runs from today, Monday, June 23, through Thursday, June 26.

BackOps AI raises $6M to solve warehouse inefficiencies

San Francisco-based AI operations platform BackOps has raised $6 million to solve what its CEO has called a “$100 billion inefficiency” in manual logistics labor.

The latest round led by Construct Capital, along with existing investors Gradient and 10VC, brings the company’s total funding to $8 million in under a year. 

According to a BackOps news release emailed to FreightWaves, the company aims to eliminate manual work and reduce error-prone processes through AI automation. BackOps is able to automatically handle routine order updates as well as complex, multi-system workflows like claims resolution and cross-platform coordination.

“Logistics operations are the heartbeat of every product-driven business, yet they remain shockingly manual,” said Sean McCarthy, co-founder and CEO of BackOps, in the release. “We started BackOps to change that. For the first time, the decades-long integration problem in supply chain can be leapfrogged using tools as simple as email and Slack, to drive real automation without heavy IT lifts. With this new capital, we’re doubling down on product innovation and expanding Relay, our AI-powered automation platform, to reach even more customers.”

McCarthy identified a number of logistics inefficiencies while previously working for e-commerce giant Amazon alongside its warehouse operations teams. That’s where AI comes to the rescue.

“What I saw was a staggering amount of manual effort workers toggling between spreadsheets, portals, and emails just to track a shipment, file a claim, or respond to a customer,” he told FreightWaves in an emailed statement. “That is a $100 [billion] inefficiency and one that AI is finally ready to solve.”

McCarthy told FreightWaves that since its founding last year, BackOps is already saving frontline teams three to five hours daily. In one warehouse, he said the company now automates over 80% of inbound customer inquiries.

“A leading 3PL cut its manual workload by 60%, saving the equivalent of three full-time employees while maintaining 98.3% task accuracy,” McCarthy said. “An industrials manufacturer slashed order inquiry times from 30 minutes to under 2 and improved [service level agreements] by 14 points.”

BackOps’ flagship automation product named “Relay” is designed to lightly integrate with existing tools like enterprise resource planning and warehouse management system platforms – all while being easy to adopt and scale over time.

The company aims to launch additional products to expand Relay’s capabilities from reactive to proactive automation.

“BackOps has an incredibly clear vision and a team that understands the pain points of logistics from the inside out,” said Rachel Holt, co-founder and general partner at Construct Capital, in the release. “The opportunity to bring intelligent automation to such a massive and underserved industry is enormous and BackOps is already delivering tangible [return on investment] to customers.”

The Ultimate Guide to FMCSA’s June 2025 Rule Rollouts: What Every Fleet Must Know

For nearly a decade, FMCSA’s rules on English proficiency and medical certification have existed in regulatory limbo, passed but rarely enforced. The delays are over. Today, June 23, followed by June 25, 2025, two rule rollouts will go live and change the compliance landscape for fleets and drivers across America.

This shift is both administrative and operational. It affects driver eligibility, roadside inspections and the definition of what makes someone legally fit to operate a commercial motor vehicle. If your state or your fleet isn’t ready, you’re exposed.

The Medical Certification Overhaul

Effective June 23, 2025, drivers can no longer self-submit their medical cards to their state licensing agencies. Instead, certified medical examiners must transmit results electronically through FMCSA’s National Registry system.

Why This Matters:

  • No electronic submission? Your CDL may be downgraded.
  • State IT lag? 14 states still lack the electronic infrastructure. Until they catch up, manual submissions are still required.
  • For fleets, keeping Medical Certificates (MECs) in the driver qualification file is still recommended.
  • Motor Vehicle Record (MVR) monitoring becomes critical. Continuous license monitoring through programs like Samba Safety also becomes even more important for monitoring downgrades to CDLs due to non-compliance with medical requirements. 

Compliance isn’t optional. A bad connection or slow state system could cost a driver their license and cost you a driver.

English Proficiency Enforcement: Out-of-Service Orders Begin

Effective June 25, 2025, FMCSA and CVSA will begin enforcing English Language Proficiency (ELP) rules with roadside inspections. This includes removing a driver from service if they cannot communicate in English or recognize signage consistent with Manual on Uniform Traffic Control Devices (MUTCD) standards.

What the Roadside Test Looks Like:

  • A verbal interview without apps or interpreters.
  • A sign recognition check based on standard U.S. road and safety signs.

CVSA officially added ELP violations to the North American Standard Out-of-Service Criteria. That means it’s not just a citation. It’s a shutdown.

Texas Draws a Line, But Can It Stand?

One state has openly defied the rule historically: Texas.

Under Texas Transportation Code 522.043(b), English proficiency cannot disqualify intrastate CDL drivers. According to recent conversations with Texas DPS leadership, the state has never enforced the federal ELP rule and doesn’t plan to yet, they have no exemption filed. 

But here’s the catch: under 49 CFR 350.305, only specific exemptions can be recognized at the state level under the Motor Carrier Safety Assistance Program (MCSAP) grant program and ELP isn’t one of them.

What’s at Risk:

  • Texas could lose millions of dollars in federal MCSAP funding that supports enforcement.
  • FMCSA could trigger compliance actions against the state.
  • Intrastate Texas drivers may suddenly face disqualification if FMCSA pushes back or if carriers voluntarily comply with federal guidance regardless of state policy.

Texas might not enforce it today, but that doesn’t mean fleets operating there can ignore it tomorrow.

What Fleets Should Do Now

These aren’t changes you can “wait and see” your way through. Here’s how every fleet, from local haulers to national carriers, should respond:

Audit Your Roster

  • Identify whether each driver operates in interstate or intrastate commerce.
  • Review routes, logs and freight origins to validate driver designations.
  • Any CDL driver must meet FMCSA ELP standards.

Monitor Medical Certification Through MVRs

  • Start (or upgrade) your CDLIS/MVR monitoring system now.
  • Validate that your vendors can flag downgraded CDLs due to medical lapse immediately.

Evaluate and Document English Proficiency

  • Integrate ELP checks into hiring processes, including verbal screenings and sign recognition.
  • Provide training resources for non-native English speakers, like Babbel.
    Retain documentation of training or support programs for ADA compliance, where applicable.

If You’re in Texas (or Any State in Dispute)

  • Watch FMCSA guidance and federal funding triggers closely.
  • Consider proactively aligning with federal rules to avoid future disqualifications or audit risks. Consult with legal advisors to navigate conflict-of-law scenarios between state and federal requirements.

What This Means for Fleets and Drivers

These changes raise the bar and the stakes.

Once, paper logs and self-certifications were enough to stay compliant. Today, the FMCSA enforcement model is driven by real-time data, federal IT systems and CVSA roadside inspections. If you’re not prepared, your trucks won’t roll.

Fleets need to view these rules not as policy noise, but as operational must-haves. This includes:

  • Incorporating ELP evaluation into onboarding
  • Relying on MVRs to validate medical certifications
  • Ensuring you aren’t relying on outdated or unenforceable state exceptions

For years, we heard, “They’re not enforcing that.” That excuse is over. These rollouts aren’t just about paperwork, enforcement, shutdowns and driver eligibility.

If you’re a safety manager, compliance officer or fleet owner, June 2025 is not just another month on the calendar. It’s the start of a new era of accountability.

Either you’re ready, or you’re parked.

2025 Texas Trucking Show: A Reminder That Trucking is Still a People Business

Every industry has its big game, and for trucking, the Mid-America Trucking Show might be the Super Bowl, but the 2025 Texas Trucking Show in Houston felt like one of the championships and a backyard BBQ rolled into one. I say one of the championships because in 16 days, the Walcott Truckers Jamboree at Iowa 81 will kick off. Packed wall-to-wall with custom builds, equipment innovations, and vendors from every corner of the supply chain, these shows aren’t just about rigs, relationships, relevance, and remembering people still make the industry tick.

Bruce Wilson’s Scania America tour in the Scania 770S drew crowds like a rock star. For many U.S. drivers, seeing a European cabover on American soil can be shocking but it makes a statement. With its sleek European design and roaring V8 heart, this truck represented something bigger than cross-continental admiration. It was a reminder that the trucking industry is global, interconnected, and evolving faster than most of us realize. Watching drivers line up just to get a photo with the Scania, or to talk shop with Bruce, made it clear that inspiration still matters. Joe Ethiridge, AKA “Truck Show Joe” and Southern Transport, never disappoints and showed out with his American Peterbilt, a 2004 379 Ultra Day Cab masterpiece with a CAT 550 to represent American power alongside Rex Oilfield Services, who showed up with an entire fleet of impressive artwork on wheels. 

The vendors came in force too FleetPride, 7Fleet Diesel, DTIS Direct, Carrier’s Edge, Utility Trailer Southeast Texas, Tenstreet, and even the Slurpee truck rolled in, passing out brain freezes and branding like pros. The booths are full of swag and conversation. Real conversations. Drivers looking for new financing options stopped at booths like CAG Truck Capital and Apex Capital. Maintenance managers swapped notes with Epika Fleet Services and checked Advanced Fleet Maintenance offerings. From insurance, factoring, parts, tarps, and tech there was something for everyone who earns their living behind the wheel or the scenes.

What stood out was the sheer diversity of solutions on display. Chrome World polished up its latest gear next to The Chrome Stop, while Lube Squad, FASS Diesel, and Fidelity Premier Group pitched in for the performance crowd. Companies like FullBay, OnCallGPS Video, and Right Weigh reminded fleets that tech can streamline everything from compliance to cargo balance.

Then there was the human factor drivers, catching up with old friends, small fleet owners meeting potential partners, and dozens of folks shaking hands with people they’d only ever seen on LinkedIn or YouTube. The show floor became a real-world social media feed, only with less sales speak and more genuine “Where you headed next?” energy.

The media presence grows every year. This show became content from creators filming truck walkarounds to publications gathering insights for national features. Face-to-face storytelling is still undefeated in a world full of AI-generated headlines and Zoom webinars.The Greater Houston Trucking Association wrapped up the show, sponsoring the After Party 2025 at the Kirby Ice House with Stars like Logistics Lounge, Mutha Trucker, and Truck Parking Club. The 2025 Texas Trucking Show was a reminder that trucking is still a people business, and people still need a place to connect. Events still move the needle. Whether you were there for the Scania, the Peterbilt, the Slurpees, the swag, or just the sense of community, it proved trucking still thrives where people connect, not just online but face-to-face, across parking lots, barstools, and booth aisles. Need a major all-encompassing event this year, not just focused on trucks, Freightwaves Future of Freight Festival is coming up October 21-22, 2025.

Will diesel prices go nuclear; electric vehicle ship fires; ENS sign awareness | WHAT THE TRUCK?!?

On episode 853 of WHAT THE TRUCK?!? Dooner discusses with FreightWaves’ oil expert, John Kingston, the impact of fuel costs following the U.S. bombing of Iran. With saber-rattling around the Strait of Hormuz and a potential prolonged war with Iran, could diesel prices skyrocket?

The recent fire aboard the Morning Midas has OEC Group raising concerns about the risks of shipping cargo on vessels carrying electric vehicles. OEC Group’s Joe Klobus explains how to protect your ocean freight.

If your truck gets stuck on train tracks, what should you do? Call the blue sign! Operation Lifesaver’s Jennifer DeAngelis joins the show to discuss ENS Sign Awareness Day and its importance.

Travelers’ Mark Borchert shares the latest workforce trends.

Plus, long-haul truckers offer advice for long-distance bomber pilots; a tribute to RIP Fred Smith; and more.

Catch new shows live at noon EDT Mondays, Wednesdays and Fridays on FreightWaves LinkedIn, Facebook, X or YouTube, or on demand by looking up WHAT THE TRUCK?!? on your favorite podcast player and at 6 p.m. Eastern on SiriusXM’s Road Dog Trucking Channel 146.

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FedEx names new chairman to replace founder Fred Smith

FedEx founder Fred Smith is pictured on a stairway by the door of a FedEx cargo jet.

The FedEx Corp. board of directors has elected R. Brad Martin as chairman to replace founder and executive chairman Frederick Smith, who died Saturday, and voted to reduce the size of the board to 12 members, the company said in a regulatory filing. 

Martin previously served as vice chairman. He leads the board’s audit and finance committees.

“The board, executive leadership team, and employees of FedEx extend their deepest condolences to Mr. Smith’s family expresses profound gratitude for his vision, leadership, and extraordinary contributions to FedEx, the country, and the world,” the report said.

Smith founded FedEx Express Corp. (NYSE: FDX) fifty-four years ago and revolutionized the parcel delivery business. He is considered a giant of the modern freight transportation industry, along with Malcolm McLean, who invented the ocean shipping container. 

Born in Mississippi and raised in Memphis, Tennessee, Smith entered Yale College in 1962 to pursue a degree in economics. While at Yale, he worked as a charter pilot and conceived the idea for an integrated air-to-ground system that would ensure overnight delivery, a concept that would eventually become Federal Express.

After graduating from Yale in 1966, he served four years in the United States Marine Corps, including two tours of duty in Vietnam where he served as a rifle platoon leader, a company commander, and aerial observer/tactical air controller.  He was decorated with the Silver Star, Bronze Star, and two Purple Hearts for his military service. He left the Marine Corps in 1970 as a captain.

Smith launched Federal Express in 1973 with a fleet of 14 Dassault Falcon jets and a vision to disrupt the transportation and logistics sector. He built the company into a multinational giant with $88 billion in annual revenue today. In 2022, he stepped down as CEO to focus on being executive chairman and global policy issues such as sustainability and trade facilitation.

“Frederick W. Smith pioneered express delivery and connected the world, shaping global commerce as we know it. His legacy of innovation, leadership, and philanthropy will continue to inspire future generations. I will miss not only his visionary leadership, but his trusted friendship and counsel,” CEO Raj Subramaniam said in a company blog post. 

Memorials can be made to the FedEx Founder’s Fund supporting volunteerism, community endeavors, and Veterans and their families, or the Marine Corps Scholarship Foundation providing scholarships for the children of military families attending post-high school, undergraduate, and career and technical education programs in all 50 states. In addition, memorials may be made to Le Bonheur Children’s Hospital and St. Jude Children’s Research Hospital, according to FedEx.

For more details about Smith’s life and career read FreightWaves’s obituary from Sunday morning. 

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

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CPKC says service is on the mend in former KCS territory

Canadian Pacific Kansas City expects service to return to normal by late July in former Kansas City Southern territory that has experienced congestion, delays, and missed customer switches since a May 3 computer cutover.

“CPKC’s level of service performance on the legacy-KCS network since May 3, 2025 — as reflected in part in the [first mile/last mile] and manifest [on-time performance] metrics — does not measure up to CPKC’s standards for the quality of service it provides customers or the efficient operation of its network,” the railway said in a June 20 letter that was posted to the Surface Transportation Board website Monday.

The letter was filed in response to STB Chairman Patrick Fuchs’ request for information about the service problems, including their causes and how and when CPKC (NYSE: CP) intends to fix them.

“While it is too early to offer firm predictions about the timing of a full return to the high level of service performance that CPKC strives to provide customers, CPKC anticipates that service levels for the vast majority of legacy-KCS customers will be in the normal range in the second half of July,” the Calgary-based railway said.

Congestion-related performance metrics — including terminal dwell, average train speeds, and number of cars online — began trending in the right direction in late May and now show that operations have “turned the corner,” CPKC told the STB.

Service metrics, including manifest on-time performance and local switching, have shown steady improvement in recent weeks, CPKC said.

“CPKC anticipates that improvements for some customers may take somewhat more time, and that many customers will need additional time to work through backlogs of delayed inbound or outbound shipments, but CPKC’s progress to date suggests that the legacy-KCS network will be functioning well by late July and sooner in many areas,” the railway said.

The problems began immediately after CPKC shut down the KCS information technology system on May 3 and began using the legacy Canadian Pacific system in former KCS territory.

Among the problems:

  • Interchange information didn’t support processing of the cars without manual reworking of the data
  • The system had trouble maintaining accurate railcar inventories for cars placed or requested for pickup at customer facilities, particularly those with complex track layouts
  • Because of the car inventory issues, customers had trouble placing orders for empties or directing the movement of loaded cars

The data problems quickly snowballed into congestion and operational challenges.

“These issues in turn led to congestion at customer facilities, local serving yards, and classification yards across the legacy-KCS network as inbound railcars accumulated and outbound railcars could not be processed as efficiently as usual,” CPKC said. “That congestion was reflected in increased yard inventories, increased dwell times, reduced train speeds, and an increase in the locomotive and crew resources needed to move traffic over the legacy-KCS network.”

CPKC said it has taken “extraordinary efforts” to address and fix its service problems, including sending cross-functional “SWAT-like” teams to Beaumont and Port Arthur, Texas; Mossville/Lake Charles and Shreveport, La.; Jackson, Miss.; and Wylie, Texas.

“For example, CPKC’s Chief Operating Officer has been on location almost continuously at key points across the legacy-KCS network (including Shreveport Yard, legacy-KCS’s major switching facility; Jackson Yard, legacy-KCS’s second major switching facility; and Wylie Yard, KCS’s largest intermodal ramp). Two operating senior vice presidents similarly have spent several weeks as boots on the ground in the Southern Region supporting customers and front-line operating leaders,” CPKC said.

The teams worked with interchange partners to fix data issues for cars bound to the former KCS network, restored car data through an in-the-field census of cars located in yard, sidings, and customer facilities, and helped customers rebill cars and solve individual service problems.

They also helped local operating personnel understand how to use the new system to build work orders and assignments.

CPKC also adjusted its operations to ease the burden on congested terminals. Its yards at Nuevo Laredo, Mexico, and Davenport, Iowa, for example, built blocks that could bypass Shreveport Yard, the busiest on the former KCS system and a key hub for north-south and east-west traffic.

CPKC told the STB that it did not have underlying service problems before the computer system cutover, and emphasized that its legacy CP operations in the U.S. have continued to run smoothly. Separately, CPKC officials have said at recent investor conferences that operations remain normal in Canada and Mexico, as well.

The railway has not yet done a similar computer system cutover on former KCS de Mexico territory south of the border.

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Update: What’s in the indictment? Charges against Texas trucking company owner quickly sealed

trucks on the highway

(The original article has been updated to include additional information. John Kingston contributed to the revised article).

WASHINGTON – A Texas trucking company owner was indicted by a federal grand jury earlier this month, with the indictment being almost immediately sealed and only a broad outline of the charges described in a Department of Justice press release.

The indictment against Shaquan Jermaine Jelks was entered into the docket for the federal district court for the Southern District of Texas on June 12, five days before Jelks was arrested. 

On the same day the indictment was handed down by a federal grand jury, the U.S. Attorney’s office asked that the indictment be sealed. That motion was granted the same day.

A press release issued Friday said the indictment was “unsealed” that day. However, the indictment sheet as of Monday afternoon, which could have greater details of what Jelks is charged with, could still not be accessed through the PACER federal court document system.

The press release does lay out a broad description of some of the charges in the indictment, without specifying the specific statutes that Jelks is charged with violating. A similar overview of the charges can be found in a decision Monday by a federal magistrate ordering that Jelks be held in detention. 

According to the Justice Department’s statement, Jelks “managed and controlled multiple commercial trucking companies after being ordered not to do so by a federal court and (FMCSA).”

Jelks, according to the Justice Department statement, “repeatedly lied to and obstructed FMCSA,” particularly in the wake of a crash that killed one of his company’s drivers in February 2022. 

And in what is a common theme in indictments involving trucking companies, Jelks is charged with diverting Paycheck Protection Program funds away from his companies and “relying on fraud to finance his illegal trucking companies.”

Violating Out of Service orders

According to the decision of federal magistrate Christina Bryan citing evidence in earlier hearings connected to the case, Jelks violated a court injunction and two Out of Service orders from FMCSA.

Jelks had been president of Adversity Transport Inc., according to a February 2022 imminent hazard operation out of service order issued by FMCSA against an affiliated trucking company, 4 Life Transport Corp.

“FMCSA contacted Adversity numerous times in late October and early November 2021 to conduct an investigation of its motor carrier operations,” the agency’s order states, and the carrier was subsequently placed out-of-service for failure to comply.

FMCSA noted in the order that between mid-November 2021 and early December 2021 at least six drivers for Adversity Transport began operating for 4 Life Transport, “a reincarnate or affiliate of Adversity operated to avoid FMCSA orders, statutory and regulatory requirements, enforcement actions, and/or negative compliance history.”

The order, which listed several safety violations against 4 Life Transport, stated that Adversity was served with an imminent hazard operations out-of-service order in January 2022 due to hours-of-service and vehicle maintenance violations.

It also noted that the truck and trailer involved in the February 2022 fatal crash cited in Jelks’ indictment had been operated by Adversity in December 2021.

A request Monday to keep Jelks in detention revealed more details on his interactions with FMCSA that were part of the reason he was indicted.

According to the Bryan order, Jelks “(continued) to operate commercial motor vehicles after his operations had been declared an imminent hazard.”

Judge Bryan said Jelks submitted false documents to various government agencies “on multiple occasions.”

“Mr. Jelks’ own conduct–the flagrant violation of an injunction from this Court and of two Imminent Hazard Operations from the DOT–demonstrates that there are no conditions this Court can set to address the danger to the community with any expectation that Mr. Jelks will follow those conditions,” Judge Bryan wrote.

The government’s request for the indictment to be sealed was based on the interim period between the grand jury action and Jelks’ actual request, which took place June 17.

Prior murder conviction

The request reveals that Jelks already has been convicted of murder in 1997. It also cited concerns that he would intimidate his wife, as Jelks had indicated to her that he was concerned she was cooperating with the ongoing grand jury investigation that was also cited by the government as a reason for the sealing of the indictment. Joseph Harris, special agent-in-charge of the U.S. Department of Transportation’s Office of Inspector General’s Southern Region, added that “people have every right to expect that trucking companies follow the highest safety standards when using our public roads. Today’s announcement shows our continued commitment to holding commercial operators accountable – especially those who put profits ahead of public safety by disregarding key DOT regulations.”

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