Latest Industry News Briefs Courtesy of PMTA
![](https://www.movinout.com/cms/uploads/thumb/PMTA-20190228095659.jpg)
ATA
Backs President Trump’s Calls for Infrastructure and Trade Action - Trucking
Calls on Congress to Act on USMCA and Highway Trust Fun
Arlington, VA… Following the
recent State of the Union address, American Trucking Associations’ President
and CEO Chris Spear applauded President Donald Trump for his proactive calls to
address the nation’s aging infrastructure and modernize our trade relationships
with our North American neighbors.
"Tonight President
Trump called for a national, bipartisan effort to restore our country's
declining infrastructure -- and America's truckers are answering that call,”
Spear said. “A win on this issue will require real investment, not budgetary gimmicks
as tried in years past. That is why America's truckers, along with a broad
coalition of the business community, have pledged our financial commitment to
making this national priority a reality.
“Decades of failed leadership in Washington
have led us to this point, which is why we commend the President for seizing
this opportunity to bring all sides together to forge a common path forward.
Restoring our national infrastructure to greatness will further ignite our
economy, make us more competitive abroad, and give Americans more time to spend
with family and less time stuck in traffic."
Spear continued to urge
Congress to move quickly on the new United States-Mexico-Canada Agreement.
“Trucking and trade are synonymous. Trucks
move $720 billion worth of goods annually across our borders with Canada and
Mexico, and cross-border trucking activity supports more than 47,000 jobs in
the United States,” he said. “Any significant disruption to those trading
relationships would have serious consequences for trucking and the economy, so
we join President Trump in his call for Congress to quickly ratify the USMCA
trade agreement.”
American Trucking
Associations is the largest national trade association for the trucking
industry. Through a federation of 50 affiliated state trucking associations and
industry-related conferences and councils, ATA is the voice of the industry
America depends on most to move our nation’s freight. Follow ATA
on Twitter or on Facebook.Trucking Moves America Forward.
ATA President Urges Congress to Move Forward on Needed Highway Funding
Arlington, VA… American
Trucking Associations President and CEO Chris Spear testified before the Senate
Commerce, Science and Transportation Committee about the urgent need to address
the nation’s failing infrastructure, pressing the committee to put forward a
real solution that includes new revenues.
“Just last week,
chunks of falling concrete struck cars traveling under bridges in California
and Massachusetts,” Spear said. “We are no longer facing a future highway
maintenance crisis – we’re living it – and every day we fail to invest, we’re
putting more lives at risk.”
The nation’s
crumbling and failing infrastructure is taking a tremendous toll on Americans’
time and their pocketbooks, and has impacted the trucking industry in a
significant way.
“Trucking now loses
$74.5 billion sitting in gridlock. That equates to 1.2 billion lost hours or
425,000 truck drivers sitting idle for an entire year,” he said. “These are the
regressive costs of doing nothing. And they are reflected in the prices we
all pay. These costs to consumers and economy are measurable… and they can
and should serve as offsets for new spending on our nation’s infrastructure.”
To address the
nation’s need to re-invest in its roads and bridges, Spear again pushed forward
the Build America Fund – a 20-cent per gallon fee at the terminal fuel rack
phased in over four years that would generate billions in new revenues for
investment.
“Trucking pays for
nearly half the Highway Trust Fund, and we’re willing to pay more,” he said.
“The Build America Fund would increase the price of fuel 20 cents per gallon at
the fuel rack – just a nickel a year over four years – generating $340 billion
over 10 years. This new revenue is real, not fake funding like P3’s and
asset recycling.
“The Build America
Fund is the most conservative proposal… costing less than .01 cent on the
dollar to administer, versus up to .35 cents a dollar for tolling schemes,”
Spear said.
ATA
Truck Tonnage Index Increased 6.6% in 2018
Arlington, VA… American
Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage
Index increased 6.6% in all of 2018 – the largest annual gain since 1998
(10.1%) and significantly better than the 3.8% increase in 2017.
That annual gain was
realized despite a decrease of 4.3% in December to 111.9, down from November’s
level of 116.9.
“The good news is that 2018 was a banner year
for truck tonnage, witnessing the largest annual increase we’ve seen in two
decades,” said ATA Chief Economist Bob Costello. “With that said, there is
evidence that the industry and economy is moderating as tonnage fell a combined
total of 5.6% in October and November after hitting an all-time high in
October.”
November’s change over the
previous month was revised down to -1.3% (+0.4% was originally reported in our
press release on December 18).
Compared with December
2017, the SA index increased 1.4%, the smallest year-over-year increase in 2018.
In November, the index was 5.8% above the same month in 2017.
The not seasonally adjusted
index, which represents the change in tonnage actually hauled by the fleets
before any seasonal adjustment, equaled 107.8 in December, which was 7.8% below
the previous month (117). In calculating the index, 100 represents 2015.
Trucking serves as a
barometer of the U.S. economy, representing 70.2% of tonnage carried by all
modes of domestic freight transportation, including manufactured and retail
goods. Trucks hauled 10.77 billion tons of freight in 2017. Motor carriers
collected $700.1 billion, or 79.3% of total revenue earned by all transport
modes.
ATA calculates the tonnage
index based on surveys from its membership and has been doing so since the
1970s. This is a preliminary figure and subject to change in the final report
issued around the 10th day of the month. The report includes month-to-month and
year-over-year results, relevant economic comparisons and key financial
indicators.
Small-Business Truckers Respond To Senate Hearing On Infrastructure
Among the many issues
raised at a hearing held by the U.S. Senate Committee on Commerce, Science and
Transportation, two caught the attention of small-business truckers. One was connected
directly to infrastructure and one was not, but both are closely related to
highway safety.
Truck parking and CDL requirements were
brought up during the “America’s Infrastructure Needs: Keeping Pace with a
Growing Economy” hearing, both of which the Owner-Operator Independent
Drivers Association and its members have an interest.
“We
appreciate some of the witnesses highlighting the truck parking crisis,” said
Todd Spencer, OOIDA President. “For too long, Congress and federal
transportation agencies have done very little to address this issue. Truckers
need more safe places to park, not more studies that do nothing to increase or
preserve capacity. This is a critical highway safety issue that deserves
dedicated federal funding.”
Regarding another issue brought up during the
hearing, OOIDA expressed objection. The American Trucking Associations said
that in order to address a driver “shortage,” that the age requirement to
obtain a commercial driver’s license should be lowered from 21 to 18.
“If safety is the top priority when
considering a change to a regulation, when it comes to age, the number should
be raised, not lowered!” said Spencer. “We also disagree that there is a
driver shortage. There is very high turnover, or churn, but no shortage.”
OOIDA has long opposed efforts to lower the
age for driving a large truck and refers to the claims of a driver shortage as
mainly mythical. OOIDA also contends that any issue with retention could be
mitigated with other solutions that would be safer for all highway users. For
example, compensation has been shown to be tied directly to highway safety, as
revealed in a study by Michael Belzer, an economics professor at Wayne State
University. His study suggests there is a strong correlation between truck pay
and highway safety.
“Most carriers with high turnover do so by
design,” said Spencer. “They could deal with driver turnover by offering better
wages and benefits and improved working conditions. But putting younger drivers
behind the wheel of a truck isn’t the solution because it does nothing to
address the underlying issues that push drivers out of the industry. It merely
exacerbates the churn.”
Oregon DMV Seeks
Qualified Providers For Commercial Driver Testing
SALEM
,OR… Oregon DMV is looking for new skills test providers for commercial driver
licensing across the state.
DMV
encourages businesses and organizations that can provide CDL skills tests to
apply with the Oregon Department of Transportation for the CDL Third Party
Testing Program.
Once
ODOT awards providers with a contract in this program, they will be authorized
to administer CDL skills tests on behalf of DMV.
In
the next few months, DMV will post a Request for Proposal (RFP) for these
services on the OregonProcurement Information Network (ORPIN). Any
entities wishing to submit a proposal response must be registered on ORPIN in
order to do so. Registration is free.
If
you are interested and want to find out if you are qualified, the applicable
federal regulations can be found here.
There will be additional qualification requirements, which will be stated in
the forthcoming RFP.
Federal
regulations provide a foundation for what is required of CDL third-party
testing businesses.
If
you are new to Oregon public procurement, or would like training or assistance
with how to successfully compete in the government marketplace, the GovernmentContract Assistance Program has free tools available.
Prior
to the posting of the RFP, if you have questions related to the CDL program,
its regulations, or the process by which you can become a third-party tester,
contact the DMV Third Party Programs Team by phone at (503) 945-5118, or by
email at [email protected]
Once
the RFP has been posted in OPRIN, all questions must be directed to the single
point of contact, Stephanie Lehman. Stephanie can be reached by email at [email protected]
Teamsters Challenge DOT Preemption Of California’s Meal And Rest Break Rules
WASHINGTON… THE International
Brotherhood of Teamsters, Teamsters Local 848 and truck drivers for global
companies have filed suit in the U.S. Court of Appeals for the Ninth Circuit, challenging the
Department of Transportation’s Federal Motor Carrier Safety Administration’s
decision to preempt California’s meal and rest break guarantees for workers.
The petition filed today requests that the court reverse the Department
of Transportation (DOT)’s decision in its entirety due to the adverse impact it
would have on thousands of workers and highway safety in California.
In addition to the International Brotherhood of Teamsters headquartered
in Washington, D.C., and Teamsters Local 848 in Long Beach, Calif., and truck
drivers for Sysco Corporation, NFI Industries, XPO Logistics and Pac 9
Transportation signed on as petitioners.
Teamsters Local 2785 in San Francisco previously filed a petition for
review with the Ninth Circuit, seeking a reversal of the DOT’s ruling.
The DOT decision would preempt California law which provides truck
drivers with a 10-minute rest break after four hours of driving and a 30-minute
meal break after five hours.
“We are standing united in
opposition to this decision. Highway safety for Teamster members and the public
must never be put at risk just so that transportation corporations can eke out
a little more profit,” said Jim Hoffa, Teamsters General President.
Teamsters Local 848 represents about 7,200 workers in Southern
California, many of whom are commercial truck drivers whose meal and rest
breaks could be impacted.
“A safe driver is a driver who
can take 10 minutes off after four hours of driving, and who can have something
to eat during a long work day,” said Eric Tate, Secretary-Treasurer of Local
848. “The industry would rather see drivers never take a break or attempt to
eat while driving; this will cause accidents major and minor. California has
held a higher standard for years and it shouldn’t be taken away.”
“Truck drivers keep our economy
running. I deliver food to hospitals and schools, loading and unloading up to
40,000 pounds in a single run. California's meal and rest break laws protect
drivers like me from drowsy driving and injury, and keep our roads safe. That's
why I am joining other drivers as a petitioner and asking the court to reverse
the DOT's decision,” said Charles “Lucky” Lepins, a member of Local 848 at
Sysco.
Founded in 1903, the International Brotherhood of Teamsters represents
1.4 million hardworking men and women throughout the United States, Canada and
Puerto Rico. Visit www.teamster.org for more information. Follow us on Twitter @Teamsters and “like” us on
Facebook at www.facebook.com/teamsters.
Turnover
Rate at Large Truckload Carriers Falls in Third Quarter - Drop Erases Yearlong
Increase in Churn Rate
Arlington, VA… American
Trucking Associations Chief Economist Bob Costello said the turnover rate at
large truckload carriers fell 11 percentage points in the third quarter,
undoing two quarters worth of increases in the annualized churn rate.
The turnover rate fell 11 percentage
points – dropping it to 87%, marking its lowest point since the first quarter
of 2017 when it stood at 74%. The drop also reverses two consecutive quarters
of increases in the turnover rate, which had driven up the churn rate as high
as 98% – 10 points higher than at the end of 2017.
“The drop in turnover can be potentially
explained in a few ways,” Costello said. “First, large pay increases fleets
have been offering appear to be working, and drivers are remaining with their
current carrier. Second, we did see a softening of freight markets in the third
quarter from the incredibly strong pace it had set earlier in the year.
Historically, softer freight volumes lead to lower driver turnover.”
Also in the third quarter,
the turnover rate at small carriers – fleets with less than $30 million in
annual revenue – remained unchanged at 72%, and the churn rate at
less-than-truckload carriers fell four percentage points to 10%.
U.S. Department of Transportation Announces $705.7 Million in Emergency Relief for Road and Bridge Repairs
WASHINGTON, DC… The U.S. Department
of Transportation’s (USDOT) Federal Highway Administration (FHWA) today
announced more than $705.7 million in Emergency Relief (ER) funds to help
34 states, as well as American Samoa, Puerto Rico, and the U.S. Virgin
Islands, make repairs to roads and bridges damaged by storms, floods, and other
unexpected events.
“The Department is pleased to
reimburse states and territories that have made critical repairs to their
transportation infrastructure following natural disasters such as wildfires,
storms, and floods,” said U.S. Secretary of Transportation Elaine L. Chao.
FHWA’s ER program reimburses
states, territories, and federal land management agencies for eligible expenses
associated with damage from natural disasters or other emergency
situations. The funds help to pay for the reconstruction or replacement
of damaged highways and bridges along with the arrangement of detours and
replacement of guardrails or other damaged safety devices.
More than a fifth of the total
amount provided today – about $153 million – will be used to pay for repairs to
damage caused by Hurricanes Harvey, Irma, and Maria. There are also funds
directed towards other severe weather recovery efforts, including the wildfires
in California.
This Emergency Relief funding
includes awards of:
•More than $12.5 million to repair
damage to roads and bridges from wildfires in California in 2018.
•$1.2 million to repair US Highway 550 Red Mountain Pass
in southwest Colorado, after it sustained damaged from a rock slide.
•$19.5 million to repair damage
caused by Hurricane Michael’s heavy winds and significant storm surge flooding
roadways throughout the Panhandle area.
“These funds will help keep our country’s roads and bridges safe and well-maintained in the aftermath of the hurricanes and other severe storms seen in recent years,” said Deputy Federal Highway Administrator Brandye L. Hendrickson.
<!-- /* Font Definitions */ @font-face {font-family:"Cambria Math"; panose-1:2 4 5 3 5 4 6 3 2 4; mso-font-charset:0; mso-generic-font-family:roman; mso-font-pitch:variable; mso-font-signature:-536870145 1107305727 0 0 415 0;} @font-face {font-family:Calibri; panose-1:2 15 5 2 2 2 4 3 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:-536859905 -1073732485 9 0 511 0;} @font-face {font-family:"ITC Clearface Black"; panose-1:2 11 6 4 2 2 2 2 2 4; mso-font-alt:Calibri; mso-font-charset:0; mso-generic-font-family:auto; mso-font-format:other; mso-font-pitch:variable; mso-font-signature:3 0 0 0 1 0;} @font-face {font-family:"ITC Clearface"; panose-1:2 11 6 4 2 2 2 2 2 4; mso-font-alt:Calibri; mso-font-charset:0; mso-generic-font-family:auto; mso-font-format:other; mso-font-pitch:variable; mso-font-signature:3 0 0 0 1 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-unhide:no; mso-style-qformat:yes; mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Calibri",sans-serif; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:Calibri; mso-fareast-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;} .MsoChpDefault {mso-style-type:export-only; mso-default-props:yes; font-family:"Calibri",sans-serif; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:Calibri; mso-fareast-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;} @page WordSection1 {size:8.5in 11.0in; margin:1.0in 1.0in 1.0in 1.0in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.WordSection1 {page:WordSection1;} --> <!-- /* Font Definitions */ @font-face {font-family:"Cambria Math"; panose-1:2 4 5 3 5 4 6 3 2 4; mso-font-charset:0; mso-generic-font-family:roman; mso-font-pitch:variable; mso-font-signature:-536870145 1107305727 0 0 415 0;} @font-face {font-family:"ITC Clearface Black"; panose-1:2 11 6 4 2 2 2 2 2 4; mso-font-alt:Calibri; mso-font-charset:0; mso-generic-font-family:auto; mso-font-format:other; mso-font-pitch:variable; mso-font-signature:3 0 0 0 1 0;} @font-face {font-family:"ITC Clearface"; panose-1:2 11 6 4 2 2 2 2 2 4; mso-font-alt:Calibri; mso-font-charset:0; mso-generic-font-family:auto; mso-font-format:other; mso-font-pitch:variable; mso-font-signature:3 0 0 0 1 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-unhide:no; mso-style-qformat:yes; mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:none; text-autospace:none; font-size:11.0pt; font-family:"Arial",sans-serif; mso-fareast-font-family:Arial; mso-bidi-language:EN-US;} h1 {mso-style-priority:9; mso-style-unhide:no; mso-style-qformat:yes; mso-style-link:"Heading 1 Char"; margin-top:0in; margin-right:0in; margin-bottom:0in; margin-left:15.0pt; margin-bottom:.0001pt; mso-pagination:none; mso-outline-level:1; text-autospace:none; font-size:12.0pt; font-family:"Arial",sans-serif; mso-fareast-font-family:Arial; mso-font-kerning:0pt; mso-bidi-language:EN-US;} p.MsoBodyText, li.MsoBodyText, div.MsoBodyText {mso-style-priority:1; mso-style-unhide:no; mso-style-qformat:yes; mso-style-link:"Body Text Char"; margin:0in; margin-bottom:.0001pt; mso-pagination:none; text-autospace:none; font-size:11.0pt; font-family:"Arial",sans-serif; mso-fareast-font-family:Arial; mso-bidi-language:EN-US;} span.Heading1Char {mso-style-name:"Heading 1 Char"; mso-style-priority:9; mso-style-unhide:no; mso-style-locked:yes; mso-style-link:"Heading 1"; mso-ansi-font-size:12.0pt; mso-bidi-font-size:12.0pt; font-family:"Arial",sans-serif; mso-ascii-font-family:Arial; mso-fareast-font-family:Arial; mso-hansi-font-family:Arial; mso-bidi-font-family:Arial; mso-bidi-language:EN-US; font-weight:bold;} span.BodyTextChar {mso-style-name:"Body Text Char"; mso-style-priority:1; mso-style-unhide:no; mso-style-locked:yes; mso-style-link:"Body Text"; font-family:"Arial",sans-serif; mso-ascii-font-family:Arial; mso-fareast-font-family:Arial; mso-hansi-font-family:Arial; mso-bidi-font-family:Arial; mso-bidi-language:EN-US;} .MsoChpDefault {mso-style-type:export-only; mso-default-props:yes; font-size:11.0pt; mso-ansi-font-size:11.0pt; mso-bidi-font-size:11.0pt; font-family:"Calibri",sans-serif; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:Calibri; mso-fareast-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;} .MsoPapDefault {mso-style-type:export-only; mso-pagination:none; text-autospace:none;} @page WordSection1 {size:8.5in 11.0in; margin:32.0pt 49.0pt 14.0pt 39.0pt; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.WordSection1 {page:WordSection1;} -->