John D. Schulz, Contributing Editor
Logistics Management November 14, 2006

WASHINGTON—Longer and heavier trucks may be out. Environmental issues may be in, and more physical inspection of air cargo could be in as well. Labor may get a friendly ear in Washington again. And, some might be working for more freight security measures.

The first session of the 110th Congress that convenes on January 3 will be the first since 1994 in which Democrats control both the House of Representatives and Senate. Business, transportation, logistics, and lobbying interests are spending their hours until then dusting off the “D” section of their Rolodexes—renewing old ties with Democrats, who are back in power in Washington.

“The bottom line for the business community on the 2006 elections is this: We will continue to work with and support members of the new Congress from both sides of the aisle who favor pro-business legislation, and we remain optimistic about implementing our members’ agenda,” said Thomas J. Donohue, president of the U.S. Chamber of Commerce and former head of the American Trucking Associations.

The new biggest power broker is a 66-year-old new House Speaker Nancy Pelosi, D-Calif., whose much-publicized “first 100 hours” of action will be a flurry of activity. Those first 100 hours are said to include a proposed $1 an hour increase in the minimum wage, which could have a slight effect on low-level wages in the non-union trucking sector.

Transportation’s bipartisan nature
Lobbyists point to the bipartisan nature of transportation in hopes that wrangling will be kept to a minimum in the new Congress—at least as far as transport measures go.

“Roads are not Republican or Democratic,” said Randy Mullett, vice president of government relations for Con-way Inc., the $4.2 billion trucking and logistics company.

“Economic development is not a Republican or Democratic issue. There will be a different focus, to be sure. But is there going to be a huge sea change? Does the business committee need to get into fetal position? I doubt it. These are responsible people with some old hands taking charge that are very familiar with the importance of transportation.”

Ed Hamberger, president and CEO of the Association of American Railroads, agreed that transportation remains a bipartisan issue and addressing the enormous logistical challenges the nation faces will require a united and concerted effort by Congress, the Administration, industry, shippers, and employees.

Demand for freight transportation is forecasted to triple by 2020: This means more freight traffic on already crowded highways, ports, and railroads.

“If we don’t add capacity soon, we will be faced with overwhelming gridlock that has the potential to paralyze our national economy,” Hamberger warned.

This is a problem that faces Democrats and Republicans alike.

Meet the new boss(es)
Old Democratic hands are now in charge. These new hands include: Rep. James L. Oberstar, D-Minn., who takes over as chairman of the House Transportation and Infrastructure Committee. Lobbyists say the new chairman of the House Transportation and Infrastructure Committee is interested in water quality but has little zeal for increases in truck sizes and weights. His surface transportation subcommittee chairman is Rep. Nick Joe Rahall, D- W. Va., who is a strong supporter of trucking. And, perhaps the most important House members are those in charge of the nation’s pocketbooks. They include incoming House Ways and Means Chairman Charlie Rangel, D-N.Y., and Appropriations Committee Chairman David Obey, D-Wis.

New Senate Majority Leader Harry Reid, D-Nev., is said to also be strongly against triple-trailers and any liberalization in truck size and weights, which have been largely frozen on existing routes since 1991. And, labor should have a friendly ear in Sen. Ted Kennedy, D-Mass., new chairman of the Senate Health, Education, and Labor Committee.

Air cargo: changes ahead?
Perhaps the two most important legislators for transport interests are chairmen of the homeland security committees—Sen. Joe Lieberman, I-Conn., and Rep. Bennie Thompson, D-Miss. Another member, Rep. Ed Markey, D-Mass., may feel emboldened by his party’s ascension to renew calls for more physical inspections of air cargo. Insiders say that industry is one terrorist attack away from seeing fundamental changes that would forever change the sector.

Department of Homeland Security already has announced further layers to its “known shipper program” to allow tougher inspections. If Rep. Markey gets his way, all cargo would be screened physically. That would cause longer lead times for shippers that would change the expedited nature of the industry.

“The industry is swimming upstream on this,” one air cargo veteran said.