Latest news with #AmericanTruckingAssociations
Yahoo
16-05-2025
- Automotive
- Yahoo
Trucking gives DOT an earful on unshackling freight market
WASHINGTON — When the U.S. Department of Transportation solicited comments in April on what it could do to remove burdensome and costly regulations, the trucking sector didn't hold back. Of the close to 900 recommendations for deregulatory actions filed with DOT – part of the department's implementation of executive orders issued by President Donald Trump aimed at cutting through the federal bureaucracy and controlling costs for industry – roughly 30% were related to regulations affecting truck drivers and motor carriers. Many called for removing or modifying the electronic logging device mandate, with critics arguing that ELDs are expensive and inflexible, and can lead to unsafe driving practices as truckers race against the clock. Some suggested that ELDs be optional or only required for drivers with poor safety records. Critics of the mandate are at odds with the American Trucking Associations, however, which contends that the devices have made the roads safer and are a more effective way of keeping track of a driver's work hours. Several respondents, including the Owner-Operator Independent Drivers Association, requested changes to truck driver hours-of-service rules, including: Reducing the mandatory 10-hour reset to eight hours. Eliminating or modifying the 70-hour rule. Allowing more flexibility in sleeper berth splits. Reconsidering the 30-minute break requirement. Multiple commenters stated they were frustrated with emissions regulations and diesel exhaust fluid systems, citing increased costs, reduced reliability and questionable environmental benefits. Other areas garnering multiple comments from the trucking industry: Transparency in broker transactions: Calls for greater transparency in broker-carrier relationships, with some suggesting regulations to cap broker fees or mandate disclosure of amounts charged to shippers. ATA and the Transportation Intermediaries Association pushed back on these suggestions, warning that such changes would undermine freight market competition and expose broker and shipper trade secrets. Insurance and safety scoring: Comments addressed issues with insurance costs and the Federal Motor Carrier Safety Administration's Compliance, Safety and Accountability scoring system. Some argued that personal driving records should not affect commercial insurance rates, while others called for reforms to how accidents are recorded and impact safety scores. Size and weight restrictions: Some commenters, particularly those in specialized segments like hotshot trucking, requested revisions to length restrictions that they feel are outdated or unnecessarily limiting. The Autonomous Vehicle Industry Association wants truck-width restrictions loosened to allow more room for cameras and other driverless technology installed on the sides of the truck. Language requirements: Roughly a third of the comments filed by the trucking sector called for tighter – not looser – enforcement of English language proficiency requirements for CDL holders, citing safety concerns. Trump has already answered that concern, issuing an executive order last month to place out of service drivers who are not able to adequately speak or read in English. Tolling and taxation: There were complaints about perceived double taxation through both fuel taxes and tolls, particularly in the Northeast. Other issues raised included concerns about privacy related to ELDs and tracking apps, calls for reforms to CDL and MC number issuance processes, and requests for more support in financing options for aspiring owner-operators. CPAC wants Trump to overhaul FMCSA's waiver regime DOT: 'Confounding factors' hindering safety analysis of ELD mandate Project 2025 pushes automated trucks, pumps brakes on EVs Click for more FreightWaves articles by John Gallagher. The post Trucking gives DOT an earful on unshackling freight market appeared first on FreightWaves.
Yahoo
30-04-2025
- Business
- Yahoo
Trucking, rail implore Washington to help fight cargo theft
WASHINGTON — As monetary costs and safety risks rise in proportion to the increase in cargo theft, freight carriers are upping the pressure on lawmakers for a more coordinated government response to combat the problem. For the second time in two months, representatives from the trucking and railroad industries participated in hearings on Capitol Hill focused on the problem, which shows no signs of going away. 'Trucking companies are either victims of cargo theft or they're spending so much money to avoid being a victim that they're also a victim,' said Bob Costello, chief economist of the American Trucking Associations, at a roundtable discussion on Tuesday hosted by the House Transportation and Infrastructure Committee. 'We have issues with [the Federal Motor Carrier Safety Administration's] registration system, so when we go into it my members can't tell if it's a legitimate carrier or not. When they become victims, they contact local, state or federal law enforcement, and the answer is typically, 'Turn it into your insurance company.' Only the federal government has the authority, the resources, the technical abilities to mount an effective response.'Several bipartisan bills have been introduced this year to improve the response to cargo theft and to prosecute thieves. Earlier this month, the Combating Organized Retail Crime Act of 2025 was introduced in both the House and Senate. It would establish a coordinated multiagency response to organized cargo and retail theft. The bill also makes it easier to prosecute organized retail and supply chain crime groups using the internet to commit crimes. In January, Congresswoman Eleanor Holmes Norton, Washington's nonvoting delegate in the House, introduced legislation to give the FMCSA more power over fake companies attempting to register with the agency and to assess civil penalties. Such crime went from being conducted primarily by small groups of up to 10 people committing theft at truck stops and parking lots to organized, sophisticated, international crime Cornell, who heads the Inland Marine Crime and Theft Specialist Office at Travelers Insurance, told lawmakers at the roundtable that cargo theft fundamentally changed between 2020 and 2022. 'They don't have to physically be on-site risking themselves getting caught stealing the freight when they can actually impersonate a freight broker, hire a legitimate trucking company to pick up the freight for them, and have them move it. It allows them to be anywhere and steal freight from anywhere,' Cornell said. Such 'strategic cargo theft' has increased 1,475% since 2022, moving from 3% to 33% of all cargo theft, and continues to climb, he said. The current top 10 states for cargo theft, according to Cornell, are, in descending order: California Texas Illinois Arizona New Jersey Georgia Pennsylvania Tennessee Ohio Florida Cities in these states provide 'the perfect storm' for cargo theft, he said. 'They're either port cities or have large rail areas. They have strong economies, high population densities, arterial highways – you have the freight, the money and the people. That's where most cargo theft has been concentrated,' he said. However, with the stepped-up activity by organized, sophisticated crime rings, 'we're seeing cargo theft spread into nontraditional areas.' Providing a perspective from rail labor, Eddie Strom, president of a Brotherhood of Locomotive Engineers and Trainmen local, asked for feedback from train engineers at Union Pacific and BNSF reported back that over four working days, 104 container doors had been left open, 'with many that never get closed until something bad happens,' he said. 'This kind of stuff rarely happened in my past 20 years of my railroad career, but now, because of precision scheduled railroading, we are seeing a lot of things that were considered safety concerns before, that the railroads are turning a blind eye to.' Labor has been critical of railroads' use of precision scheduled railroading (PSR) to improve asset utilization and boost operating efficiency. 'PSR has directly caused this problem to get way worse as railroads have cut staff, including railroad police, and all trains are now double and triple in length,' Strom said. 'Both factors make it way more likely for the robbers to target these trains.' Ian Jeffries, president of the Association of American Railroads, disputed Strom's take on the issue. 'It won't surprise you that we might not necessarily see eye to eye on a couple of things,' Jeffries said. 'I don't think there's any data showing a correlation between train length and cargo theft. But what we are talking about is employees being put into dangerous situations, so when there's no deterrent from the prosecution side, it does nothing to keep [criminals] from coming back. 'When there's no teeth on the back end when it comes to enforcement and prosecution, and hitting people hard so they don't come back, then there's nothing keeping them from getting bolder and bolder and putting rail employees in a risky situation.' : Lawmakers look at expanding FMCSA's power to rein in cargo theft Los Angeles police recover over $3.9M in stolen cargo Data behind cargo and rail theft epidemic Click for more FreightWaves articles by John Gallagher. The post Trucking, rail implore Washington to help fight cargo theft appeared first on FreightWaves.
Yahoo
06-03-2025
- Automotive
- Yahoo
Tariffs and trade wars add risks to trucking outlook
The trade wars began on Tuesday when President Donald Trump hit imports from Canada and Mexico with 25% tariffs. By Wednesday, the Trump administration had carved out a 30-day exemption for tariffs on automakers to give them time to shift their supply chains to the U.S. On Thursday, Trump moderated the impact again, with Reuters reporting Mexico won't be required to pay tariffs on any goods that fall under the United States-Mexico-Canada Agreement on trade until April 2. Various trucking groups have weighed in with statements highlighted below. In a statement released Tuesday, American Trucking Associations President and CEO Chris Spear warned that the tariffs will impact over 100,000 truckers, 'hauling 85% of the surface trade in goods with Mexico and 67% of the goods traded with Canada.' In addition to cross-border impacts, operational costs are expected to increase. The ATA estimates the price of a new truck could increase by up to $35,000. The ripple effects are expected to extend downstream of trucking. In an email to FreightWaves, Dean Kaplan, president of the Kaplan Group, said, 'We're likely to see a cascade of impacts, from potential decreases in freight volumes as trade potentially contracts, to increased operational costs for carriers themselves.' The Owner-Operator Independent Drivers Association weighed in but added it's too early to predict specific downstream economic impacts. OOIDA said the tariffs 'have the potential to inhibit the recovery from a freight recession that has been acutely felt by America's small-business truckers.'Trucking companies in Canada also reacted to the news. The Canadian Trucking Alliance urged the Canadian government to implement relief packages for that country's trucking industry. In a release, the CTA noted, 'Carriers have already begun laying off employees. As many as one in three fleets surveyed in Ontario, for example, indicated layoffs – a number which is expected to grow in the aftermath of the tariffs.' Travel along the North Carolina-Tennessee border resumed last weekend, the first time since October when Hurricane Helene hit the region, causing widespread damage to homes and infrastructure. Eastbound and westbound parts of I-40 are now open between Exit 7 in North Carolina through Exit 447 in Tennessee, with only one lane of travel open in each direction between Exits 15 and 20. Both states originally planned limited service in January but faced delays due to further deterioration. While this is a positive sign for truckload carriers moving along the route, there are several restrictions in place. FreightWaves' John Kingston writes, 'Lanes will be narrower than usual, and there will be shoulders that are reduced in size; the speed limit will be 35 mph; there will be a 9-by-9-inch concrete curb separating the two lanes; the eastbound road, which continues to undergo repairs, will have an emergency-only lane; and while a full tractor trailer is able to drive on the highway, no wide loads will be permitted.'Kingston notes the timeline for full restoration is being talked about in terms of years: 'North Carolina's statement touted that the state has entered into a Construction Manager/General Contractor contract for the permanent reconstruction of the highway. Ames Construction was identified as the contractor, RK&K is the designer and HNTB is the project manager.' The February Logistics Managers' Index reported significant inventory changes largely driven by concerns over potential tariffs. The overall LMI increased to 62.8, up 0.8 points from January, marking the highest growth rate since June 2022. The LMI is a diffusion index, with a reading above 50 showing expansion and below 50 contraction. 'The positive movement in the overall index was driven by the continuing expansion of Inventory Levels, which were up (+6.3) to 64.8 in February, which is the fastest rate of expansion for this metric since June of 2022,' the report states. This surge in inventories contrasts sharply with 2024's lean just-in-time practices when the average Inventory Level growth was only 52.7. The report adds that the inventory surge may be part of a larger shift away from just-in-time practices, a popular strategy when transportation costs and capacity were more favorable to shippers. The inventory buildup has led to increased costs, with Inventory Costs rising 7.1 points, to 77.3, and Warehousing Prices up 4 points, to 77. Both metrics saw their fastest rate of expansion in several years as firms increased the volume and velocity of inventory to avoid tariff-associated costs. Transportation metrics saw capacity increase but prices cool. The Transportation Capacity Index increased 2.5 points, to 55.1, a six-month high. The Transportation Prices Index decreased 4.9 points, to 65.5, retreating from recent highs. Despite these changes, the report concludes that 'inflationary pressures on Transportation Prices are still present across the supply chain.' Looking ahead, the future index for transportation prices fell slightly to 76.8. The reading still indicates strong expectations among respondents of higher Transportation Prices in the next 12 months. Summary: A rapid cooling in reefer outbound tender rejection and spot market rates continues, but they are still outperforming the past two years. The past week saw reefer outbound tender rejection rates fall 58 basis points w/w from 10.36% on Feb. 24 to 9.78%. Compared to the past two years, ROTRI is 428 bps higher than 5.5% in 2024 and 611 bps higher than 2023's 3.67%. ROTRI continues to follow seasonal expectations, buoyed by a monthslong decline in reefer outbound tender volumes. Lower volumes beget lower rejection rates: ROTVI is down 114.65 points or 8.31% m/m from 1,379.72 points on Feb. 4 to 1,265.07 points. A small rally in reefer tender volumes observed during the third week of February fizzled, with the past week seeing ROTVI down 8.4 points w/w from 1,273.47 points on Feb. 24 to 1,265.07 tender volumes and rejection rates dragged down reefer spot market rates, which fell 12 cents per mile all in w/w from $2.60 on Feb. 24 to $2.48. Reefer spot rates are now 6 cents per mile lower compared to 2024, when RTI was at $2.54 per mile. Another factor for reefer rate declines comes from excess reefer capacity. A recent U.S. Department of Agriculture fruit and vegetable truck rate report showed adequate truck availability for most of the districts/regions in the U.S., with Mexico crossing through South Texas and Yakima Valley and Wenatchee District in Washington state reporting a surplus of reefer capacity. Trucking lobby warns against Trump's tariffs on Mexico and Canada (FreightWaves) Bison adds barcode tech to give real-time freight updates (Trucking Dive) Preliminary Class 8 Net Orders Stepped Back Further in February (ACT Research) Manufacturing is on the rebound, but tariffs threaten growth: PMI (Trucking Dive) OOIDA asks Congress to restore per diem tax deduction for employee truckers (Land Line)How Sean Duffy's DOT is already reshaping trucking (Fleet Owner) The post Tariffs and trade wars add risks to trucking outlook appeared first on FreightWaves.
Yahoo
01-03-2025
- Business
- Yahoo
RXO Q1 forecast: 2025 upswing will feel more like 2014 than 2021
RXO recently released its Q1 2025 Truckload Market Forecast, with its Curve Index showing a continuation of rate inflation first observed in Q4 2024. The Curve, formerly the Coyote Curve, is a proprietary index measuring year-over-year changes in truckload linehaul spot rates, excluding fuel. The forecast highlighted how rising spot rates and capacity exiting the market are driving the upswing, though the authors caution that the extreme conditions of the last inflationary market in 2020 and 2021 are not expected. While shippers may not feel dramatic changes yet, RXO warns that conditions are shifting in ways that could lead to tightening later this year. The Q4 2024 Curve Index showed spot rates up 11.6% year over year, a jump from the 5.8% increase in Q3. This rise was driven by continued carrier exits, impacts from hurricanes Helene and Milton, and typical holiday shipping seasonality. Contract rates, while still showing a slight year-over-year decline of 1.5% in Q4, moderated from the 3.4% y/y drop seen in Q3. This aligns with typical market behavior, as contract rates tend to lag spot rates by two to three quarters. 'Over the holidays, we saw market rate and coverage KPIs reach levels we haven't hit since Christmas 2022. While we have seen some of those gains moderate through the first quarter to date, the baseline has reset higher,' said Corey Klujsza, vice president of pricing and procurement at RXO. 'Though the rest of 2025 may not look like the peak in the COVID-era truckload market, we're seeing continued signs that we're past the bottom of the cycle.' Read the full article here. The trucking industry may see an unexpected boost later this year as inflation reshapes consumer spending habits, according to Bob Costello, chief economist of the American Trucking Associations. Costello spoke at the 2025 Recruitment & Retention Conference in Nashville, Tennessee, Transport Topics reported, on how current economic trends could influence freight demand. He says that as consumers face sticker shock from inflated costs of flights and accommodations, they might redirect their spending. 'They might start buying goods again, and that could help trucking,' he added. However, Costello cautioned against overreliance on GDP growth as an indicator of trucking prosperity. 'About 70% of what is embedded in GDP are services, and you are not putting services in a trailer,' he pointed out. On the housing front, Costello painted a mixed picture. While demand for housing remains strong, high interest rates have sidelined many potential buyers, impacting dry van and flatbed carriers that haul residential construction supplies. 'If your company hauls residential construction supplies, it's been tough,' he acknowledged. Adding complexity, Costello noted concerns about the availability of construction labor, partly due to recent immigration policies. In contrast, nonresidential construction has shown promise. 'This is on the rise — it's been quite good,' he said, pointing to infrastructure projects and semiconductor plant construction as bright spots for trucking demand. Costello forecasts modest growth in trucking demand for the year. However, he warns of a potential shakeout in capacity as companies that expanded during the pandemic boom times reassess operations. 'I think people got ahead of themselves and thought the recovery was coming sooner, and it wasn't. … 'Fleets are saying this is the worst downturn they can remember.' ACT Research recently released its seasonally adjusted final January Class 8 order numbers, which showed still-healthy tractor orders despite lower year-over-year comps. Vocational truck demand was also strong. Carter Vieth, research analyst at ACT Research, wrote, 'Tractor orders totaled 18.4k units, down 11% y/y. It remains to be seen whether the decrease in orders this month will continue or was just a reversion after November and December highs. One month does not make a trend.' According to FTR Transportation Intelligence, preliminary North American Class 8 net orders in January totaled 24,000 units, representing a 28% decrease month over month and a 15% drop year over year. This figure fell short of the seven-year January average of 27,950 net orders. FTR notes the on-highway segment primarily drove the softening in order activity, while vocational orders remained relatively stable. Despite the January dip, cumulative net orders from September 2024 through January 2025 for builds in 2025 still show a 3% increase from the previous year. Dan Moyer, senior analyst, commercial vehicles at FTR, said, 'A 25% U.S. tariff on imports from Canada and Mexico – currently paused for trade negotiations through early March – and a 10% tariff on Chinese imports as of February 4 could significantly increase costs for North American Class 8 trucks and parts if fully implemented and enforced indefinitely.' Another challenge is the potential tariff impacts on the interconnected Class 8 OEM truck makers' supply chains. Moyer added, 'With roughly 40% of U.S. Class 8 trucks built in Mexico and around 65% of Canada's Class 8 trucks built in the U.S., tariffs and likely counter-tariffs threaten to disrupt supply chains and drive up vehicle prices.' Summary: Despite ongoing deterioration in the dry van space, spot market and outbound tender rejection rates are outperforming compared to seasonal year-over-year comps. The past week saw the SONAR National Truckload Index 7-Day average rise 2 cents per mile all-in from $2.28 on Feb. 17 to $2.30. Spot rates are down 13 cents per mile m/m from $2.43 on Jan. 25, but when compared to last year, NTI is up 7 cents per mile from $2.23. Spot market linehaul rates saw a smaller increase, up from $1.72 to $1.73 per mile w/w. Fuel costs are based on the average retail price of diesel fuel and fuel efficiency of 6.5 miles per gallon. The formula is NTID – ( Linehaul rates saw a similar decline compared to all-in spot rates, with the NTIL down 13 cents per mile m/m from $1.86 and 13 cents per mile higher y/y from $1.60. Dry van outbound tender rejection rates posted a slight decline, down 15 basis points w/w from 5.18% on Feb. 17 to 5.03%. VOTRI is down 150 bps m/m but 86 bps higher y/y. A challenge for dry van carriers is that despite the higher outbound tender rejection rates on y/y comps, outbound tender volumes are low. ATRI Invites Motor Carriers to Participate in 2025 Operational Costs Data Collection (ATRI) Low pay keeping millions of Americans out of trucking, survey suggests (Land Line) Trump's Threat to EV Trucking Rules Undermines Big-Rig Bets (Bloomberg) Truckstop exec joins Trucking Parking Club to boost ties with enterprise fleets (FreightWaves) BMO's numbers on trucking credit suggest worst may be over (FreightWaves)Werner pilots sideview cameras for safety, legal protection (Trucking Dive) The post RXO Q1 forecast: 2025 upswing will feel more like 2014 than 2021 appeared first on FreightWaves.
Yahoo
20-02-2025
- Automotive
- Yahoo
Trucking bottlenecks cost U.S. billions — and a Nashville freeway is one of the worst
Americans are paying dearly for traffic congestion along U.S. highways — to the tune of a record-high $108.8 billion nationally — and one Nashville interchange landed in the top five on a list of the worst trucking bottlenecks in the country. That's according to the American Transportation Research Institute, a nonprofit focused on the trucking industry's role in a safe and efficient transportation system. Last week, the institute released its annual report of the nation's top 100 truck bottlenecks for 2025, compiled using a database of freight truck GPS data. 'Delays inflicted on truckers by congestion are the equivalent of 436,000 drivers sitting idle for an entire year,' the institute's president and chief operating officer, Rebecca Brewster, said in a news release announcing the report. 'These metrics are getting worse, but the good news is that states do not need to accept the status quo.' In the same release, the president and CEO of the American Trucking Associations, Chris Spear, said these bottlenecks 'choke our supply chains' and add almost $109 billion annually to the cost of transporting goods — on top of impacting the quality of life for other motorists who rely on the national highway system for their daily commute. In Tennessee, former President Joe Biden's Infrastructure and Jobs Act provided a few billion dollars of investment in highway infrastructure after its passage in 2021, but the state's unmet need for the five-year period between June 2023 and June 2028 has ballooned to nearly $38.5 billion according to the Tennessee Advisory Commission on Intergovernmental Relations. The combined Interstate 24/40 heading east in Nashville where it meets I-440 lands at fifth on that list, up five spots from 2024. According to the institute, trucks travel along that roadway at an average speed of just 38.1 miles per hour and 27.2 miles per hour on average during peak traffic. That's not the only Nashville roadway to make the list. The next highest at 16th is where I-40 and I-65, heading east, converge on the west side of downtown. The split of I-65 and I-24 several miles north of downtown clocks in at 53rd. Those Nashville roadways are part of a list of seven truck bottlenecks throughout Tennessee that cracked the top 100. Four other highway interchanges, two each in Chattanooga and Knoxville, made the list between the 28th and 68th spots. This article originally appeared on Nashville Tennessean: Nashville has one of worst truck bottlenecks in the U.S. See where
