Latest Industry News Briefs Courtesy of PMTA

Truckstop and Bloomberg Intelligence Survey Reveals Improved Carrier Outlook Despite Ongoing Challenges

 This article was originally published on PR Newswire.

 BOISE, ID…  According to the latest Bloomberg | Truckstop survey, which polled owner-operators and small fleets, carriers who have faced challenges with weak demand and low rates are now seeing signs of improvement ahead, though some are still considering a shift in their careers.

 “Despite greater optimism over the outlook, more carriers expressed an intent to leave the business than in our prior survey,” said Lee Klaskow, senior freight transportation and logistics analyst at Bloomberg Intelligence. “An acceleration in carrier exits could speed up the market’s return to equilibrium and provide a better backdrop for rates next year.”

 The Bloomberg | Truckstop 3Q24 Truckload Survey shows:

 * Rates may bounce back soon: Spot rates remained suppressed in 3Q, falling 17% on average excluding fuel, according to respondents, but more see the view brightening. An increase over the next 3-6 months was expected by 29% of carriers, 6 percentage points higher than the survey three months ago. There are indications that the market is moving closer to equilibrium. Truckstop’s Market Demand Index for the North American trucking market increased 13% on average in 3Q from last year, the third consecutive quarter of year-over-year gains.

* Demand may gradually increase: Sentiment going forward appears to be more optimistic, even though carriers continued to see lower volume in 3Q, with 56% of respondents noting weaker demand compared with last year. Higher volume over the next 3-6 months is expected by 40%, 7 percentage points better than our 2Q survey. An improved demand outlook could also lead to more carriers buying equipment, with 24% saying they might make a purchase in the next 3-6 months, 3 percentage points better than the 2Q responses. Weak demand was cited by 34% as the main reason for not buying.

* Carriers face uncertainty about their futures: More carriers see themselves exiting the industry, with 15% saying they believe they’ll be out of trucking in six months, 6 percentage points higher than the 2Q survey. Excess capacity has been slow to leave the market, and any acceleration could help spot rates move higher, setting up for a better 2025.

 “Carriers are optimistic that the toughest times are now behind them,” said Kendra Tucker, chief executive officer, Truckstop. “Truckstop continues to be a trusted partner, empowering carriers to thrive in a dynamic market with innovative solutions designed to help them to manage, safeguard and expand their businesses.”

 The Bloomberg | Truckstop survey of owner-operators and small fleets provides timely channel checks into the health of the spot market. The sample size was 171, consisting of dry-van, flatbed, temperature-controlled and specialized/diversified, hot-shot and step-deck carriers. Of the respondents, 53% operate just one tractor.

 The complete survey is available to Bloomberg Terminal subscribers via BI.

 Truckstop is a trusted partner for carriers, brokers, and shippers, empowering the freight community through a platform of innovative solutions for the entire freight lifecycle to increase efficiency, automate processes, and accelerate growth. As one of the industry’s largest neutral freight marketplaces, Truckstop provides the customer service as well as scale of quality loads and trucks to give customers of all sizes, whether on the road or in the office, the transparency and freedom to build lasting relationships and grow their businesses. To learn how Truckstop is helping move the freight community forward, visit https://truckstop.com.

Trucking Industry Reacts to Tariffs

Washington, DC… American Trucking Associations President & CEO Chris Spear released this statement in response to new tariffs imposed on the United States' largest trading partners:

“As the trucking industry recovers from a years-long freight recession marked by low freight volumes, depressed rates, and rising operational costs, we have concern that tariffs could decrease freight volumes and increase costs for motor carriers at a time when the industry is just beginning to recover. A 25% tariff levied on Mexico could see the price of a new tractor increase by as much as $35,000. That is cost-prohibitive for many small carriers, and for larger fleets, it would add tens of millions of dollars in annual operating costs.

 “Trucks move 85% of goods that cross our southern border and 67% of goods that cross our northern border, supporting hundreds of thousands of trucking jobs in the U.S. The trucking industry understands the crises motivating these tariff proposals, which is why we have been a leader in efforts to fight drug and human trafficking. We firmly support policies that will secure our borders and protect legitimate trade, but we also recognize the unintended consequences that substantial tariffs could have over the long-term, including higher consumer costs on the wide range of goods that cross our borders by truck, including food, automobiles, televisions, computers, furniture, and other key manufacturing inputs.

 “The United States-Mexico-Canada Agreement was a major achievement of President Trump’s first administration. The American Trucking Associations worked hand in glove with all three countries to reach this historic deal, and we look forward to doing so again during the USMCA review.”

 

Trucking Industry Congratulates Zeldin on Confirmation as EPA Administrator

Washington, DC… Following a Senate vote of 56-42 to confirm former Representative Lee Zeldin to serve as Administrator of the U.S. Environmental Protection Agency, American Trucking Associations President & CEO Chris Spear issued this statement:

 “The trucking industry congratulates Administrator Zeldin on his confirmation, and we look forward to the restoration of common sense in our nation’s environmental policies under his leadership of EPA.

 “Over the past several years, the mad dash to zero and a patchwork of unachievable mandates on unrealistic timelines have posed a grave threat to the trucking industry, the supply chain, and our economy.  The enormous price tag of this haphazard transition would have significantly raised costs for American consumers without delivering the promised environmental benefits.  This was deeply regrettable, because our industry and EPA had worked together for decades to promote major advances in engines and emissions control systems that are 99% cleaner.  As a result, 60 trucks today emit the same amount as one truck manufactured in 1988.

 “Administrator Zeldin is a proven, collaborative leader America’s truckers deserve to restore balance at EPA.  By reviving the productive partnership with our industry, he can build on our impressive environmental achievements without disrupting the supply chain.  We look forward to working with Administrator Zeldin to replace electric-truck mandates with national emission standards that are technologically achievable, encourage innovation, and account for the operational realities of our essential industry.”

Trucking Industry Backs Bill To End EVs’ Free Ride - Fair Share Act Would Require Light-Duty Electric Vehicles To Contribute To The Highway Trust Fund

Washington, DC… The American Trucking Associations applauded Senator Deb Fischer (R-Nebraska) and Congressman Dusty Johnson (R-South Dakota) for introducing the Fair Share Act.  The legislation would charge a one-time fee for light-duty electric vehicles to ensure that they are contributing to road maintenance.

“All Americans benefit from a robust and safe transportation system.  When it comes to paying for the maintenance and expansion of our road network, no one should get a free ride,” said ATA Senior Vice President of Legislative Affairs Henry Hanscom.  “The trucking industry makes up just 4% of the vehicles on our nation’s highways, yet we pay nearly half the tab into the federal Highway Trust Fund—all while moving over 70% of the domestic freight tonnage.  Clearly trucks are doing their part to invest in the nation’s infrastructure, and it is reasonable to expect electric vehicles to do the same.  As fuel efficiency rises and adoption rates for alternative fuels accelerate, we must find long-term, sustainable, and equitable sources of revenue for the HTF.  We commend Senator Deb Fischer and Congressman Dusty Johnson for leading this effort to ensure that electric vehicles are paying their fair share.”

 The Highway Trust Fund makes up over 90% of federal funds used for transportation projects and primarily receives its funding through the federal gas tax: 18.3 cents per gallon of gas and 24.3 cents per gallon of diesel.  It faces impending insolvency.  Since 2008, over $275 billion has been shifted from the general fund to sustain the HTF.

Although the previous Administration attempted to force the adoption of electric vehicles, light-duty EVs do not currently pay into the HTF.  

 By contrast, the trucking industry is the leading payer into the HTF, contributing almost half of all revenues while representing just 4% of road users.  Heavy-duty electric trucks also contribute to the HTF through the Heavy Vehicle Use Tax, the tire tax, and the federal excise tax.  The American Trucking Associations has long advocated for a long-term, stable revenue source for the HTF that is paid for equitably by all road users.

 The Fair SHARE Act would require EVs to contribute to the HTF through a two-tier fee structure similar to and modeled after the current federal gas tax and the heavy vehicle use tax. The bill would: 1) Impose a one-time fee of $1,000 on all-electric vehicles at the manufacturer level and 2) Impose a one-time fee of $550 on each battery module with a weight greater than 1,000 pounds at the manufacturer level.

 The legislation was cosponsored by Senators Cynthia Lummis (R-Wyoming) and Pete Ricketts (R-Nebraska).

Truck Freight to Bounce Back in 2025, ATA Projects

Washington, DC… In the latest edition of its annual freight forecast, the American Trucking Associations projects that after two years of declines, truck volumes are expected to grow 1.6% in 2025, and ultimately rise to nearly 14 billion tons by 2035.

The projection comes in ATA Freight Transportation Forecast 2024 to 2035, a joint report by ATA and S&P Global Market Intelligence.

“In this edition of Forecast, the trucking industry continues to dominate the freight transportation industry in terms of both tonnage and revenue, comprising 72.7% of tonnage and 76.9% of revenue in 2024,” said ATA Chief Economist Bob Costello. “We project that market share to hold over the next decade as the country continues to rely on trucking to move the vast majority of freight.”

Other key findings in ATA’s Freight Transportation Forecast 2024 to 2035 include:

* Total truck tonnage will rise from an estimated 11.27 billion tons in 2024 to 13.99 billion tons in 2035. Over that same period, trucking industry revenues will grow from an estimated $906 billion to $1.46 trillion, accounting for 76.8% of the freight market by the end of the forecast period.

* Looking at other modes of transportation:

* The overall share of freight tonnage moved by railroads will fall from 10.6% in 2024 to 9.9% in 2035, mostly due to declines in coal volume.

* Intermodal rail tonnage will grow by 2.9% through 2030, and then 2.8% between 2031 and 2035.

* Air cargo, domestic waterborne transportation and pipelines will all see increases in tonnage between 2024 and 2035.

“Knowledge is power, and the information in Freight Forecast is an enabler for the leaders who shape our industry,” said ATA President and CEO Chris Spear. “Understanding the trends in our supply chain should be key for policymakers in Washington, in statehouses around the country and wherever decisions are being made that affect trucking and our economy.”

ATA Freight Transportation Forecast 2024 to 2035, done in collaboration with S&P Global Market Intelligence, is available for purchase at www.atabusinesssolutions.com or by calling 866-821-3468.

TCA Statement on ACF Waiver Withdrawal

The California Air Resources Board (CARB) has withdrawn its request for an EPA waiver to enforce its Advanced Clean Fleets (ACF) rule upon our nation’s trucking fleets, a move that can only be viewed as a major victory for our industry. It goes without saying that our messaging during our Call-on-Washington in September was lasting and impactful.

  Of course, the withdrawal of this waiver request arrives less than a week before President-Elect Trump is sworn into office but represents a significant milestone in our industry’s efforts to curb this unattainable regulation. Questions surrounding this rule centered on the achievability, affordability and reliability of the equipment that was required and highlighted issues with our nation’s corresponding power grid and electricity generation.

  TCA, as a founding member of the Clean Freight Coalition, worked endlessly with industry partners to support our message. We endorsed sound research, engaged with renowned consultants to shape our story and advocated for comprehensive public policy with sensible solutions. It is imperative to our nation’s supply chain that trucking leads these conversations to highlight the essential role that our industry has on the economy and the American consumer. 

  While this victory is one that must be celebrated, our work is just beginning. Our industry has long been advocates for equipment that is environmentally friendly to create a better tomorrow, and our history has demonstrated exactly that. Now is the time to begin engaging with our representatives to lay out a strategy with achievable standards with real world possibilities that places our industry in the driver’s seat. 

To our industry, thank you for your continued support and congratulations on a job well done. We will continue to keep you posted on information as it arises. Hope to see you at TCA's Annual Convention this March 15-18 in Phoenix.

PMTA Joins Coalition Urging Lawmakers To Ensure Reliable Energy Supply

By Megan Magensky, PMTA

The Pennsylvania Motor Truck Association joined a coalition of business and industry organizations across PA urging Governor Josh Shapiro and state lawmakers to ensure a robust and reliable energy supply for the state’s businesses and consumers.

The Pennsylvania Motor Truck Association joined a coalition of business and industry organizations across PA urging Governor Josh Shapiro and state lawmakers to ensure a robust and reliable energy supply for the state’s businesses and consumers.

The Stop New Energy Taxes Coalition sent a letter to Governor Shapiro and the General Assembly ahead of the governor’s budget address.

The letter emphasizes the vital role Pennsylvania’s energy sector plays in driving economic growth, creating family-sustaining jobs, and ensuring an affordable and reliable energy supply. It warns that new energy taxes would increase costs for families and businesses, making the state less competitive for investment.  

The coalition calls for bipartisan collaboration to maintain tax stability, streamline permitting, and foster innovation, ensuring Pennsylvania remains a leader in energy production and economic growth. 

The letter also highlights the success of the state’s Impact Fee, which has generated over $2.7 billion in revenue for Pennsylvania communities since 2012.

“Affordable energy is a cornerstone of Pennsylvania’s economic competitiveness,” the letter reads. “New energy taxes could increase costs for families and businesses while making Pennsylvania less attractive compared to states with more competitive, business-friendly environments.”

The coalition is led by the Pennsylvania Chamber of Business and Industry and includes 16 other key industry associations from across the state, including PMTA, the Pennsylvania Manufacturers’ Association, the Pennsylvania Forest Products Association, the Keystone Contractors Association, the Pennsylvania Independent Oil & Gas Association, the Consumer Energy Alliance, and Associated Pennsylvania Constructors, among others.

“A budget that preserves Pennsylvania’s energy tax structure,” the coalition wrote, “reinforces the commonwealth’s commitment to fostering economic growth and opportunity. Prioritizing stability in this area will help us retain existing businesses, attract new and innovative industries, and secure our commonwealth’s long-term economic success.” 

Near Zero Emission Truck Incentive Program Bill reintroduced with bipartisan support

By Megan Magensky, PMTA

Senator Brown has reintroduced the Near Zero Emission Truck Incentive Program legislation as Senate Bill 147. PMTA worked closely with Senator Brown on this important and bipartisan transportation legislation.

Senator Rosemary Brown (R-40) reintroduced the Near Zero Emission Truck Incentive Program legislation as Senate Bill 147. 

This legislation creates the Near Zero Emission Truck Incentive Program, a grant program administered by the Department of Transportation (PennDOT), in consultation with the Department of Environmental Protection (DEP), to reduce air pollution from heavy duty diesel vehicles in Pennsylvania.

The federal government took steps to tightly regulate heavy duty truck emissions between the model years 2007 and 2010 by requiring the standardization of selective catalytic reduction and diesel particulate filters (40 CFR § 86.007-11 (Emission standards and supplemental requirements for 2007 and later model year diesel heavy-duty engines and vehicles (https://www.ecfr.gov/current/title-40/chapter-I/subchapter-C/part-86/subpart-A/section-86.007-11) As a result, a truck that was sold in 2006 emits roughly 10 times the amount of NOx and particulate matter as a truck sold today.

Due to various market-driven factors, 34% of trucks registered in Pennsylvania are pre-2010 model trucks, which do not contain the latest emissions components. These trucks contribute most of the emissions from the trucking industry in the state. The proposed grant program will lead to the replacement of these trucks with newer, much cleaner trucks, resulting in lower emissions from the trucking industry and cleaner air for all. Moreover, the National Highway Traffic Safety Administration research is clear that the older the truck, the higher the accident fatality rate. The addition of multiple standard safety technologies by original equipment manufacturers in post-2010 will directly save lives in Pennsylvania.

Specifically, it will require PennDOT and DEP to apply for federal funds available for the purpose of reducing pollution. With these funds, PennDOT will provide a grant to incentivize the purchase of model year 2010 or later trucks to be titled and registered in Pennsylvania, if accompanied by a trade-in of a pre-2010 diesel truck that is also titled and registered in Pennsylvania but shall be prohibited from being titled or registered again in this state.

Pennsylvania’s location, demographics, and mix of industries make it the perfect state for this legislation to be successful. The American Lung Association’s 2023 Delivering Healthy Air report identifies nearly $50 billion in associated health costs for the Commonwealth resulting from freight transportation between 2020 and 2050. We cannot afford to wait for solutions decades down the road when the technology exists today to make impactful changes. In the Governor’s recent budget address, he correctly pointed out that one in three Pennsylvanians will be over 60 in 2030, and they are the most susceptible group to air pollution.

At the same time, one in every 15 jobs in the state is in the trucking industry, with almost 70,000 trucking companies in Pennsylvania. Most are small, locally owned businesses, with 96% having ten or fewer trucks. Many of these small businesses, which are more likely to be women- and minority-owned, likely will never be in the market for a new diesel truck, much less a new electric, truck, costing as much as two to three times what a new clean diesel truck does. Therefore, public policy should focus on the small businesses in the freight transportation sector that can benefit the most from upgrading to newer trucks, which are not only cleaner, but are also safer and more efficient.

Near zero emission clean diesel is an excellent technology. Whether it’s a Mack - built right here in Pennsylvania - or another American-manufactured truck, 2024 models are more than 60 times cleaner than a 1988 model. That means a fleet of more than 60 new clean diesel trucks today operates with the same emissions as a single truck 30 years ago. Because well-maintained clean diesel trucks can operate for multiple decades, the environmental and public health benefits will continue beyond the year the grants are awarded. Near zero emission diesel trucks can also utilize cleaner biodiesel and renewable diesel without any modification, paving the way for further benefit as these fuels become more readily available and affordable.

No other single technology transfer can affect Pennsylvania’s air quality and provide immediate health benefits as much as replacing pre-2010 trucks with post 2010 models.

The bill must now be considered by the Senate Transportation Committee. 

Intermodal Closes Fourth Quarter Strong - Domestic and International Containers End Year Ahead

CALVERTON, MD…  Total intermodal volume gained 7.5 percent year-over-year in the fourth quarter of 2024, according to the Intermodal Association of North America. While trailers dropped 6.2 percent, domestic container and international container originations grew 6.5 percent and 9.6 percent, respectively. For the year, total volume rose 8.5 percent.  

All but one of the seven highest-density trade corridors, which collectively handled more than 60 percent of total volume, were up in the fourth quarter. The Southeast-Southwest jumped 23.5 percent, the Midwest-Southwest increased 19.4 percent, and the South Central-Southwest gained 18.8 percent. The Midwest-Northwest rose 9.9 percent, the Trans-Canada delivered 4.9 percent more volume, and the intra-Southeast added 2.3 percent. The Northeast-Midwest recorded the only loss, 1.6 percent.

Total IMC volume rose 4.8 percent year-over-year in Q4, with intermodal up 12.2 percent and highway traffic down 4.9 percent.

Members of the press may request the 2024 Fourth Quarter Intermodal Quarterly report from Hope Kabik at [email protected]

FHWA Announces Updates to Buy America Requirements to Promote Domestic Manufacturing in Transportation Projects

WASHINGTON, DC…  The U.S. Department of Transportation’s Federal Highway Administration (FHWA) announced a new final rule to end FHWA’s longstanding waiver that allows manufactured products used in federal-aid highway projects not to comply with FHWA’s Buy America requirements on January 14. 2025 as one of the final rules of the Biden administration.

The new federal rule changes outdated policy and boosts American manufacturing. The rule is a result of the FHWA’s review of its Manufactured Products General Waiver, required by President Biden’s Bipartisan Infrastructure Law Build America, Buy America (BABA) Act.

The Buy America Requirements for Manufactured Products Final Rule ends the previous Manufactured Products General Waiver, a general applicability waiver in existence for more than four decades that waived FHWA’s Buy America requirement for manufactured products. The new rule aims to maximize the use of domestically produced manufactured products permanently incorporated in federal-aid highway and bridge projects. 

The rule will be rolled out in two phases.

* For projects obligated on or after October 1, 2025, final assembly of all manufactured projects must occur in the U.S. 

* For projects obligated on or after October 1, 2026, in addition to the final assembly requirement, the cost of components of products that are mined, produced, or manufactured in the U.S. must be greater than 55 percent of the total cost of all components of the manufactured product.

FHWA’s Buy America statute was enacted in 1983. At that time, FHWA determined that manufactured products were used in insufficient quantity on highway construction projects to incentivize domestic manufacturing, so there would be little benefit to applying the protections afforded under Buy America. With the enactment of the Build America, Buy America (BABA) Act provisions in the Bipartisan Infrastructure Law, FHWA is aligning the Federal-aid Highway Program with the broader governmentwide standards.

By placing greater value on domestic manufacturing for highway construction, the new rule will encourage investment in this sector, protect and expand domestic manufacturing, increase reliance on U.S.-made products, and ensure that Federal-aid highway projects benefit from the broader domestic manufacturing base created by BABA for all Federal government programs.

The new rule does not change the Buy America requirements that currently apply to iron or steel products. For clarity, the new rule does provide definitions of iron or steel products and manufactured products to differentiate between products that must comply with FHWA’s existing Buy America requirements for iron and steel and products that must comply with FHWA’s new Buy America requirements for manufactured products. 

More information is available the new rule is available here: Buy America web page.

ATA Truck Tonnage Index Contracted 1.1% in December

Washington, DC… Trucking activity in the United States contracted in December, according to the American Trucking Associations’ advanced seasonally adjusted For-Hire Truck Tonnage Index, the second decrease in as many months.

“For the first time since March and April truck tonnage contracted for two consecutive months,” said ATA Chief Economist Bob Costello. “Tonnage fell 1.8% in November, bringing the two-month total decrease to 2.9%, pushing tonnage to its lowest level since January 2024. Sluggishness in factory output continues to weigh on freight volumes, but another drag on the index has been fleet growth at private carriers, which is holding back how much freight is flowing to for-hire carriers.”

In December, the ATA advanced seasonally adjusted For-Hire Truck Tonnage Index equaled 111.3 compared with 112.6 in November. The index, which is based on 2015 as 100, was down 3.2% from the same month last year.

The not seasonally adjusted index, which calculates raw changes in tonnage hauled, equaled 108.8 in December, 0.9% below November.

The seasonally adjusted decrease follows a sequential 1.8% drop in November, which was revised up from the December 24 press release.

Trucking serves as a barometer of the U.S. economy, representing 72.7% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods. Trucks hauled 11.27 billion tons of freight in 20241. Motor carriers collected $906 billion, or 76.9% of total revenue earned by all transport modes.

Both indices are dominated by contract freight, as opposed to traditional spot market freight. The tonnage index is calculated 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.