Latest Industry News Briefs Courtesy of PMTA
ATA Praises Choice of Eugene Scalia as Labor Secretary Nomine
Arlington, VA… American Trucking Associations President and
CEO Chris Spear praised President Trump’s choice of Eugene Scalia as the
nominee for Secretary of Labor.
“I have had the privilege of knowing Gene
Scalia for nearly two decades, and as former colleagues, know firsthand his
expansive breadth of experience with issues currently facing the 21st century
workforce and our nation’s economy,” Spear said. “Gene also has a deep
knowledge of and appreciation for the Department of Labor’s mission and
responsibilities.
“I have full confidence in Gene’s leadership,
and believe he is an inspired choice for Secretary of Labor by President Trump.
“We encourage the Senate to move quickly on
confirmation, and look forward to working with Gene Scalia as Secretary on
issues of importance to the trucking industry, including the critical issue of
workforce development.”
ATA Truck Tonnage
Index Fell 6.1% in May
“As expected, tonnage corrected in May from
the surprising surge in April,” said ATA Chief Economist Bob Costello.
“The economy is still growing, but the recent volatility in truck tonnage fits
with a broader economy that is showing more mixed signals. The good news is if
you ignore recent highs and lows, tonnage appears to be leveling off, albeit at
a high level.”
April’s reading was revised
down compared with our May press release.
Compared with May 2018, the
SA index increased 0.9%, the smallest year-over-year gain since April
2017.
The not seasonally adjusted
index, which represents the change in tonnage actually hauled by the fleets
before any seasonal adjustment, equaled 119.1 in May, 1.5% above April level
(117.4). 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 5th day of each month. The report includes month-to-month and
year-over-year results, relevant economic comparisons, and key financial
indicators.
ATA Urges Congress
to Move on USMCA - Trucking Congratulates Mexico for Ratifying Important Trade
Agreement
Arlington, VA… American Trucking Associations President and CEO Chris Spear issued the following statement after Mexico’s ratification of the United States-Mexico-Canada Agreement.
"Mexico's action
in ratifying the USMCA is a critical step forward in
putting this important trade agreement in place.
"Ensuring free and
fair trade with our closest neighbors is critical to the trucking industry,
which moves $772.3 billion worth of goods across our borders with Mexico and
Canada.
“Trade with these two countries alone supports
nearly 90,000 Americans in trucking-related jobs and generates $12.62 billion
in revenue for our industry. We encourage Congress to move forward
on ratifying this important agreement so all three nations may continue to
share in the benefits that trade creates.”
CTA: Trucking Highlighted in PC Plan to Address Climate Change, Empty Trailers
The Canadian Trucking Alliance (CTA) is applauding the
direction of the Progressive Conservative Party of Canada for several actions
related to the trucking industry in their document: A Real Plan to Protect Our Environment.
Specifically, the plan calls for the elimination of
US-Canadian rules that do not allow foreign empty trailer repositioning in each
country, thereby improving the energy efficiency of international trucking in
North America, while still maintaining necessary protections for domestic
industries. The party pledges to work with the cross-border community to
address this ongoing challenge to the supply chain.
The
current practice of a driver bobtailing to the next facility is inefficient and
wasteful, resulting in millions of extra miles driven, added driver wait time,
and logistical issues for fleets. Recently, an analysis conducted by CTA and
the American Trucking Association provided a very conservative estimate that
25% of border crossings at the U.S./Canada border would benefit from this
policy change. Based on this study, the trucking industry would save over
67,000 tonnes of greenhouse gas emissions along with $104 million annually in
added fuel and other associated costs.
“This proposal shows there are tremendous
options to reduce the trucking industry’s carbon footprint that also improve
the efficiency of the supply chain, making US-Canada trade even stronger,” said
CTA’s Lak Shoan.
The
proposal also mentions making renewable fuel a better option for fleets, by
looking at cost, the current state of technology, and whether these fuels work
from an operational standpoint. It also mentions that funding towards
compliance and enforcing environmental laws needs to be prioritized. CTA has
been urginggovernment to work with industry to combat
operators who circumvent engine emission rules by tampering with ant-pollution
systems.
Should
it form the next government, the PC Party of Canada also ensures the trucking
industry it will be invited to the table to explore equipment options to reduce
the sectors greenhouse gas emissions:
“There are many options for reducing
emissions in heavy duty vehicle fleets. A Conservative government led by Andrew
Scheer, will consult with our industry partners to find ways that Canadian
trucking companies can replace old and inefficient trucks with new and cleaner
fleets,” it states.
“The Canadian Trucking Alliance appreciates this potential
opportunity to explore such environmentally efficient options,” said CTA
president Stephen Laskowski
In the Fall 2018 economic statement, the
Government of Canada introduced a new class of CCA rates for new truck purchases. CTA believes that such a taxation approach to all
trucking equipment would be an excellent starting point of discussions to
introduce greener trucking equipment beyond tractors.
Federal Government Continues to Move Ahead with New Immigration Pilot
Eleven rural and
northern communities have now been selected as part of the new Rural and
Northern Immigration Pilot, which invites newcomers to make these communities
their new homes.
The Canadian Trucking
Alliance (CTA) had lobbied for the inclusion of commercial vehicle drivers in
the program and is pleased to see the occupation as part of this new
program.
As the Canadian
population ages and the birth rate declines, rural Canada’s workforce has seen
a significant decrease in available workers, including commercial vehicle
drivers. This pilot will help attract people that are needed to drive economic
growth in these communities.
The participating
rural and northern communities will have access to a range of support to test
this new innovative, community-driven model that will help fill labour gaps.
The selected communities are: Thunder Bay (ON), Sault Ste. Marie (ON), Sudbury
(ON), Timmins (ON), North Bay (ON), Gretna-Rhineland-Altona-Plum Coulee (MB),
Brandon (MB), Moose Jaw (SK), Claresholm (AB), West Kootenay (BC),
and Vernon (BC).
“We embrace the announcement of this pilot
supporting West Kootenay communities. We are determined to see our local
businesses succeed and this is a major step for all stakeholders,” said Doug
Sutherland of Sutco Transportation Specialists. “As baby boomers
leave the transportation industry, a gap is being created that our local labour
pool cannot sufficiently fill. For many organizations, filling these
gaps helps grow and create more opportunities for locals looking for other
positions.
For our team
members, we are committed to transporting community products to market as well
as transporting essential product to our communities. This program
will definitely support these commitments for the long term.”
In the past, Sutco
has had success hiring drivers through the Temporary Foreign Worker Program,
says Sutherland. However, he adds, this new Rural Immigration
program is geared towards bringing in workers to remain as long-term employees
and community members.
The federal
government has stated that the participating communities were selected as a
representative sample of the regions across Canada to assist in laying out the
blueprint for the rest of the country.
To complement the
Rural and Northern Pilot, Canada is also working with the territories to
address the unique immigration needs in Canada’s North.
“This program is really driven by partners at
the local level,” said Jonathan Blackham, CTA director, Policy and Public Affairs. “This means, if
there is a need for drivers in one of the selected areas, it will be important
for the local trucking association to work with local carriers and community
support groups to utilize of this new program.”
The government will
begin working with communities this summer to help them identify candidates for
permanent residence as early as this fall. The first newcomers under the pilot
are expected to arrive in 2020.
“It’s our hope
that this program’s success will evolve a permanent program, which will allow
all qualifying Canadian fleets, regardless of location, to attract truck
drivers from overseas to become Canadian citizens employed in the trucking
industry,” said Blackham.
Drivewyze Adds Four New Locations for Weigh Station Bypass in Pennsylvania
DALLAS,
TX… Drivewyze has continued to expand its industry-leading weigh station bypass
service with four new locations in Pennsylvania. The new sites are part of a
12-month pilot program, which will allow data to be gathered to demonstrate the
effectiveness of weigh station bypass, while providing bypass opportunities for
Drivewyze customers.
The
sites, south and northbound on I-83 in Newberry (York County), and south and
northbound on I-79 near Hadley (Mercer County), represent the major arteries
for truck traffic in Pennsylvania. I-83 is a major lane from the south up to
the New England states, while I-79 is a major thoroughfare for truckers coming
down from Ontario to go through Pennsylvania for southern-bound deliveries.
According
to Brian Heath, president and CEO of Drivewyze, the activation of the
Pennsylvania bypass program gives Drivewyze equipped carriers with continuing
service from the bordering states of Maryland, West Virginia and New York.
“With I-83 and I-79 being main passageways, customers with top safety scores
will have the opportunity to get bypass service through several states,” Heath
said. “This then allows law enforcement to concentrate its inspection efforts
on at-risk carriers. We all want unsafe trucks off the road, along with a more
efficient transportation system. By working together with the agencies in
Pennsylvania we can help accomplish this goal.”
With
the Drivewyze PreClear weigh station bypass service on their Drivewyze-enabled
Electronic Logging Devices (ELDs), telematics devices, smartphones and tablets,
customers can now receive bypass opportunities at more than 800
locations, in 45 states and provinces.
The
Drivewyze PreClear weigh station bypass application is available on a number of
Drivewyze partner platforms, including ISAAC Systems, Omnitracs, Orbcomm,
Platform Science, Rand McNally, Switchboard, Transflo, and Trimble. The
application is also available for drivers to download on Android and iOS-based
smartphones or tablets.
Fleets
can request a free weigh station activity report to help them determine how
much time and money they could save by using Drivewyze PreClear.
Drivewyze
comes with a free Weigh Station Heads-Up service for real-time notifications at
more than 1,200 weigh stations and inspection sites nationwide, and Drivewyze
subscribed fleets also receive the valuable Insights Safety Reporting service.
To learn more about Drivewyze, please visit www.drivewyze.com.
In the Fight Against Human Trafficking, Why
Truckers?
By Lyn Leeburg, TAT
Communications Director and Co-Founder
When working on a
strategy to fight human trafficking, one of the first steps should be to
determine which groups of people have the greatest opportunity to spot human
trafficking as it is happening. In other words, who could serve as the primary
surveillance?
When it comes to this
crime, those front-line people include such groups as medical personnel, who
treat victims in medical clinics; service personnel in local neighborhoods
(such as postal workers, and cable, electrical, and water providers), who come
by homes on a regular basis and would notice if something unusual was going on;
restaurant and hotel personnel, who might see trafficking taking place in their
establishments; and members of all segments of the transportation industry,
including airport employees, because traffickers are continually transporting
victims to sell them in a variety of places.
Truckers Against
Trafficking (TAT) began as an initiative of Chapter 61 Ministries in 2009 to
work with the trucking industry, because it’s 7-million strong. Truckers are
trained to be extremely observant. The trucking industry is composed of people
already entrusted with caring for other people’s goods, which speaks to the
character of the industry when it comes to caring for others—especially when the
interest of others might be in trouble. Members of the trucking industry are
everywhere, covering the entire United States. Lastly, traffickers wanting to
make fast money often target truckers at truck stops and rest areas (because
they’re everywhere and easy to reach right along highways) to sell their
victims. This is evidenced by the number of victims rescued from truck stops by
the FBI.
The members of Chapter
61 Ministries believed that if the trucking industry were empowered with
education and equipped with tools to fight human trafficking, they would be
quick to mobilize against this crime. They could do their part to see victims
recovered and perpetrators arrested. Members of the trucking industry could be
everyday heroes in the course of their jobs and make a significant impact
against the criminal activity of human trafficking. Perhaps they might even
have a greater impact than the average person, because of their mobility and
training. They were a critical front-line group to recruit.
Using tools such as an
informational website (www.TruckersAgainstTrafficking.org),
on-demand webinars, a trucking-industry-specific training DVD, wallet cards
with signs to look for and questions to ask, and social media accounts
(Facebook and Twitter), TAT began making contacts throughout the trucking
industry to build relationships and state the case for trucking members to join
the abolitionist movement. TAT also began having a presence at major trucking shows
as well as providing free presentations wherever requested by members of the
trucking industry. The trucking industry began responding positively. By 2011,
TAT had grown so much and was making such an impact in the industry that it
needed to become an independent 501(c)3 non-profit organization in order to
sustain its efforts.
Members
of the trucking industry, who had witnessed the prostitution of women and
minors at various places throughout the United States for years but who had not
known what it was – forced prostitution and modern-day slavery – began calling
the National Human Trafficking Hotline to report what they were seeing. Since
Dec. 7th, 2007, when the hotline began, the national hotline has received 2200+
calls from truckers, which have opened 612 likely cases of human trafficking
involving 1133 people.
Major
travel plaza and truck stop organizations joined TAT by making a commitment to
train their employees with TAT materials and to make those materials available
for trucking customers across the United States. Truck-driving schools,
national and state trucking organizations, trucking companies – both large and
small –individual truckers, trucking organizations of all types, and trucking
media have also joined forces with TAT.
TAT works to create
relationships between state and federal law enforcement and members of the
trucking industry through half-day events called coalition builds. These events
provide a more effective localized response to
human trafficking by gathering law enforcement agencies (state, federal and
local) and local anti-trafficking resources (task forces and local
non-governmental organizations) in the same room with key industry
stakeholders, including general managers of truck stops and representatives of
state trucking associations and carriers.
Using
TAT materials, the Motor Vehicle Enforcement division of the Iowa Department of
Transportation has created a model for other states to follow in working with
the trucking industry. They place TAT materials in their state scale sites,
state rest areas, and state truck stops. They are also working with major
carriers in the state to train their employees with TAT materials.
Why
truckers? Watching the TAT training DVD readily answers that question. With
one phone call, a trucker who saw some under-aged girls working a truck stop
not only facilitated the recovery of those girls, but also that of seven
other minors. Thirty-one offenders were arrested and a 13-state prostitution
ring was broken.
Training
and working with front-line responders in the United States in the fight
against human trafficking is a strategy that can and does yield big results …
and members of the trucking industry are some of the leading front-line
responders.
Legislation Introduced To Fix FHWA Interpretation Of Auto Transporter Definition
Grain Valley, MO… The
Owner-Operator Independent Drivers Association is ecstatic that U.S.
Representative Blaine Luetkemeyer (MO-03) introduced HR 3474, legislation that
would statutorily correct an issue important to the auto transporter
community.
“We use the term
‘ecstatic’ because it’s truly the way we feel about this bill,” said Mike
Matousek, OOIDA Manager of Government Affairs. “When it’s enacted, it will
ensure that traditional auto transporters can use the applicable front and rear
overhang that they’ve been using since the mid-1980s.”
In 2004, the Federal
Highway Administration unnecessarily revised its interpretation of longstanding
regulations that govern the auto transporter industry. In effect, at that
time the agency decided that to be considered an automobile transporter, the
power unit (i.e. the truck) must be capable of carrying cargo.
OOIDA maintains that such
an interpretation is wrong and pressed FHWA to fix it in 2015. However,
it wasn’t until 2017 that this issue received the attention it deserves when
FHWA decided to docket it and request comments from interested
stakeholders.
“Across the federal bureaucracy, unnecessary
regulatory guidance creates vast uncertainty in what should be simple
regulations,” said Congressman Luetkemeyer. “A perfect example is the
confusion surrounding the FHWA definition of an ‘auto-transporter,’ deeming
virtually indistinguishable differences between auto transporters acceptable or
unacceptable according to federal regulators. My bill will ensure our
hardworking Missouri drivers can stay on the road by clarifying the definition
and codifying this fix into law.”
While OOIDA is optimistic
FHWA will soon address this issue in a positive way, the association also
believes a permanent fix is necessary.
“This issue was changed in 2004 using
regulatory guidance, which is a much less formal regulatory process.
Regardless of what the current administration does, we’re still going to seek a
statutory fix so future administrations don’t mess it up again. This is
one reason why Congressman Luetkemeyer’s bill is so important and we appreciate
his leadership and commitment to getting it done,” said Matousek.
The Owner-Operator Independent Drivers Association is the largest national trade association representing the interests of small-business trucking professionals and professional truck drivers. The Association currently has more than 160,000 members nationwide. OOIDA was established in 1973 and is headquartered in the greater Kansas City, Mo. area.
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.
Request for Proposal
730-33646-19 is now available to be downloaded on the Oregon Procurement
Information Network (ORPIN) system. The solicitation includes details such as
requirements, scope of the work, closing dates, the vendor selection process,
and information on the mandatory pre-proposal conference.
Any entities wishing
to submit a proposal response must be registered on ORPIN in order to do so.
Registration is free. More information on ORPIN, including how to register as a
supplier, is available at http://orpin.oregon.gov/open.dll/welcome.
If you are new to
Oregon public procurement, or would like training or assistance with how to
successfully compete in the government marketplace, the Government Contract
Assistance Program has free tools available at www.gcap.org.
All questions related
to this program and the RFP must be directed to the single point of contact,
Stephanie Lehman. Stephanie can be reached by email at [email protected].
OTA: National
Review of Commercial Facility Association Insurance Set to Begin
CANADA…
The Facility Association (FA) has met with the Ontario
Trucking Association (OTA) as part of the FA’s national strategy to
review the underwriting characteristics
of Commercial Residual Market insurance.
In
the 1970s governments across Canada made it mandatory for drivers to carry auto
insurance. However, upon creating this requirement, they realized that clients
who were rejected by the traditional market would need another avenue for
insurance. Consequently, the Facility Association (FA) was also created through
legislation. The FA operates in nine
jurisdictions: Alberta, New Brunswick, Newfoundland and Labrador,
Northwest Territories, Nova Scotia, Nunavut, Ontario, Prince Edward Islands,
and Yukon.
FA’s
mandate is to ensure that anyone who is required by law to have auto insurance
and can’t find it in the ‘regular’ market can get it from the FAs – but at a
price that makes sure FA remains the last choice.
In
2018, the OTA joined forces with the insurance industry to review
the problem of the growing number of commercial trucking fleets being
insured with the FA. Following a series of meetings, the OTA, along with a
coalition made up primarily of insurers, sent a letter to the FA calling
for a review of Commercial Residual Market insurance to ensure
it is delivering on its intended mandate. As a result of this involvement,
OTA recently learned that the Facility Association will be forming a national
working group to examine Commercial Residual Market insurance.
“When applied for and issued properly, insurance with Facility
Association has a legitimate and important role in supporting the trucking
industry,” said Stephen Laskowski, president of OTA. “Our goal in partnering
with the Facility Association is not to eliminate these legitimate uses, but
rather to review with insurance regulators the existing Commercial
Residual Market insurance policy framework and ensure the proper rating of
carriers that reflects road safety and fleet responsibility in this market. We
are grateful for the opportunity to work with Facility Association and
insurance regulators to address such matters.”
During
its work with members in the insurance industry and brokerage
sector, OTA learned of potential concerns with the policies being
submitted to the Facility Association – notably, the
misrepresentation of fleet information by some
fleet managers and brokers to receive coverage not
matching their actual fleet performance or operating
practices. This behaviour not only gives the industry a poor image, but it
means other fleet owners end up paying higher insurance prices to cover the
shortfall.
The
Facility Association has expressed shared interest and support for OTA’s goals.
“The trucking industry looks forward to working with the Facility Association
Insurance Working Group to ensure all fleets are properly assessed and rated
from a road safety perspective and that a level playing field is maintained in
the commercial insurance industry,” said OTA Chair David Carruth.
Turnover Rate at Large Truckload Carriers Jumped
in First Quarter - The Churn Rate at Smaller Fleets Dipped in First Three
Months of 2019
Arlington, VA… American Trucking Associations Chief Economist
Bob Costello said the turnover rate in the first quarter of the year
demonstrated a muddled picture of the labor market for drivers, as the turnover
rate at large truckload fleets rose five percentage points, but the rate at
smaller fleets dipped four points.
“While the market for drivers in certain
segments continues to be tight, we’re seeing the impacts of a softer freight
environment,” Costello said. “Despite weaker freight growth, it is clear that
there is still strong demand for quality drivers industry wide, which will
continue to put carriers under pressure to recruit and keep good ones.”
In the first quarter of the year, the turnover
rate at truckload fleets with more than $30 million revenue rose to 83% - lower
than 2018’s average rate of 89% and 11 points below a year earlier. At smaller
truckload carriers, the rate fell to 73% - exactly where it was in the first
quarter of 2018.
Turnover at less-than-truckload fleets ticked up eight points and now stands at 18%, the highest level in fifteen years, but well below truckload driver turnover.