Just like other industries, the logistics industry is constantly changing. New regulations, policies and projects can impact not only the tools your organization uses to conduct business, but the supply chain as a whole. As a part of this industry, TOC Logistics is constantly tracking policies that supply chain managers and organizations need to be up-to-date on. Here are some of the most impactful policy proposals, investments, and regulations you need to know about going into 2024.
U.S. Port Infrastructure Grants
In November, the U.S. Department of Transportation’s Maritime Administration announced it would award more than $653 million in grants to 41 projects to upgrade ports across the country. The grants, issued through the Port Infrastructure Development Program (PDIP), are part of $1 trillion in infrastructure investments that have been allocated based on a 2021 bipartisan law.
Some of the updates this program is seeking to make include:
- Replacing docks
- Adding additional railroad tracks
- Modernizing infrastructure
- Repairing infrastructure
- Building new facilities
So, what does this mean for supply chain managers? Some of these ports may be key thoroughfares in your organization’s supply chain, and some of the materials required for these updates may impact general supplies. That means supply shortages and delays due to construction may be in the future.
Still, proponents of the program believe modernizing and repairing those ports could help them work more efficiently, which would bolster supply chains in the long run. Better-functioning ports could also help create more built-in resiliency in America’s supply chains.
Germany Toll Law Amendment
In October, the German Government approved the Third Act Amending Toll Law Regulations. Changes went into effect on December 1st, significantly impacting the landscape of road freight transport. The main updates include:
- Toll rates are now charged based on the amount of carbon dioxide (CO2) emitted by a vehicle. The CO2 emission class is now based on an EU-wide regulation.
- The permissible total weight (GVW) is no longer the basis for allocating vehicles to weight classes. Instead, the technically permissible total mass (TPMLM) now determines a vehicle’s weight class. Because of this, vehicles may now fall into higher weight classes and be subject to higher toll charges.
- Vehicles with a particulate reduction class will no longer be assigned to better emission classes, meaning vehicles with toll emission classes “Euro 2 + PRC 1” are now categorized under toll emission class 2, while “Euro 3 + PRC 2” vehicles fall into toll emission class 3.
Other upcoming changes include toll regulations for alternative drives, beginning in January of 2024, and new toll requirements for vehicles with a TPMLM exceeding 3.5 tonnes, beginning in July of 2024. The TOC Logistics team will continue to monitor these changes and make sure to update our customers about anything that may impact their supply chains.
While these two updates may or may not impact your organization’s supply chain, it’s always a good idea to stay updated on industry events. If you’re looking to stay ahead of the curve in 2024, check out this list of our favorite industry publications. In addition to those sources, we recommend staying updated on new regulations coming out of the governments where your organization deals with any imports or exports. Of course, our Market Advisories and blogs are always a great way to stay in the know, too. Be sure to check in regularly for key insights, updates, and more. By staying informed, your organization can take proactive measures and avoid scrambling to adjust to change in the global supply chain.