Cliff Abbott

About Cliff Abbott: Cliff Abbott is an experienced commercial vehicle driver and owner-operator who still holds a CDL in his home state of Alabama. In nearly 40 years in trucking, he’s been an instructor and trainer and has managed safety and recruiting operations for several carriers. Having never lost his love of the road, Cliff has written a book and hundreds of songs and has been writing for The Trucker for more than a decade.

Posts by Cliff Abbott

Mexico-based carriers can still operate in United States under USMCA

By Cliff Abbott - July 7, 2020

For years after the North American Free Trade Agreement (NAFTA) went into effect on Jan. 1, 1994, the trucking industry in the U.S. worried about one particular provision. The agreement called for the lifting of restrictions prohibiting Mexican carriers to operate in the U.S. Canadian carriers were already allowed to deliver loads originating in Canada to points within the U.S and pick up loads returning to Canada. Mexican carriers, on the other hand, were allowed to operate in clearly defined “commercial zones” near U.S.-Mexico border crossings. Freight from Mexico that was bound for destinations outside of the commercial zones had to be transferred to a U.S.-based carrier for delivery, a process that is cumbersome and expensive. Since NAFTA was designed to lift trade barriers between the participating countries, it was a given that Mexican trucks would soon be granted the same privileges in the U.S. as Canadian trucks. The treaty provided time, specifying access to Mexican trucks by the year 2000. It didn’t happen. For Mexican carriers to move goods inside the U.S., they needed to meet the same requirements as U.S. carriers. This included things like obtaining authority, meeting insurance requirements, a driver-licensing system comparable to the CDL system in the U.S., adequate drug-testing and accident-reporting programs, environmental standards and more. Canadian laws governing these areas were already similar to those in the U.S. Since Mexico is a primary destination for older used trucks when traded by U.S. carriers, there were also concerns about vehicle safety. Critics pointed to the absence of an inspection and grading system in Mexico that was similar to U.S. programs. Then there was the language barrier. Most Canadians speak English and would have no difficulty reading U.S. road signs or understanding instructions from an enforcement official. A smaller percentage of Mexican drivers speak English fluently, potentially in conflict with a federal regulation requiring a degree of fluency with the language. Reciprocation was also a possible issue. If Mexican trucks could make deliveries in the U.S., could U.S. carriers make deliveries in Mexico? The problem wasn’t having the authority to do so; the trucking infrastructure in Mexico is simply inadequate for U.S. carriers to operate there. The network of fueling, parking and repair facilities in the country is inconsistent with such services in the U.S. There was opposition from trucking groups, too, such as the Teamsters Union and the Owner- Operator Independent Drivers Association (OOIDA), which were concerned about loss of U.S. driving jobs. Environmental groups such as the Sierra Club and safety advocates like Public Citizen also opposed allowing Mexican trucks on U.S. highways, resulting in an odd confederation of enemies on the same side of the issue. Meanwhile, the U.S. Department of Transportation (USDOT) and Federal Motor Carrier Safety Administration (FMCSA) struggled to comply with the provisions of NAFTA while ensuring that Mexican carriers met the same safety standards as U.S. carriers. Data was inconsistent, as record-keeping requirements in Mexico did not provide adequate information to guarantee authority approval. One year after NAFTA went into effect, the U.S. refused to lift restrictions on Mexican trucks, angering Mexico’s government and threatening the NAFTA agreement. Despite this point of friction between the countries, NAFTA remained in effect while the dispute was argued. In 2001, a NAFTA dispute settlement panel found the U.S. to be in violation of the NAFTA agreement. The following year, the FMCSA put in place an interim final rule allowing cross-border operation. Opponents took to the courts to have the FMCSA rule set aside. Lower courts upheld the rule, but upon appeal the rule was set aside by the U.S. Court of Appeals for the Ninth Circuit; then U.S. Supreme Court overturned the Circuit court, and the rule was back in effect. The issue moved to Congress, which required in 2007 that a pilot program be implemented to ascertain safety and compliance levels of Mexican carriers before they were permitted to conduct long-haul operations in the U.S. However, two years later Congress voted to remove funding for the pilot program, effectively ending it. Mexico retaliated by placing tariffs on more than $2 billion in U.S. goods. In 2011, with a new Congress and president in place, another pilot program began, prompting Mexico to suspend its tariffs on American goods. Finally, in 2015, the data accumulated through the pilot program was reported to Congress, which gave the go-ahead for FMCSA to begin issuing operating authority to Mexican carriers. The U.S. Inspector General reported that the program results were invalid due to the low number of participating carriers, but the carriers that did participate had safety records comparable to U.S. carriers. The numbers were underwhelming, with only a few dozen Mexico-based carriers receiving authority to operate in the U.S. Finally, after two-and-a-half decades and the involvement of five U.S. presidents, NAFTA was replaced by the new United States-Mexico-Canada Agreement (USMCA), which has been characterized as “NAFTA 2.0.” The USMCA fulfills a campaign promise by President Donald Trump to reform NAFTA and is the result of a renegotiation of the original agreement that took place in 2017 and 2018. It was signed on Nov. 30, 2018, by leaders of all three participating countries, and the final ratification took place in Canada on March 13, 2020. The USMCA continues the NAFTA provision to allow Mexican carriers to obtain operating authority in the U.S. but allows the U.S. to cap the number of Mexican carriers that are given authority and to halt granting of such authority if it is determined the practice is causing material harm to U.S. interests. As it stands, the issue of Mexico-based drivers sharing the highways with U.S. drivers has quietly subsided from public discussion. The drivers are still here in small numbers. Cabotage rules prohibit hauling loads between points in the U.S. Predictions of a Mexican force of drivers putting Americans out of work have not come to pass, while the removal of Mexican tariffs on U.S. goods has had a positive effect on U.S. workers. Safety concerns have proven to be largely unfounded, as well, although close monitoring will continue. Like the trade agreements that authorized cross-border trucking, the rules under which Mexican truckers can operate within the U.S. will change over time. For now, more pressing issues are getting public attention.

Mayday, mayday! A tale of two sides of a dispute over spot rates

By Cliff Abbott - June 30, 2020

Frustration over spot freight rates bottoming out due to the COVID-19 pandemic drew more than 100 small-business owner-operators to Washington, D.C., for a “May Day” protest that lasted for three weeks. The protest group, comprised mostly of members of various Facebook groups, began the protest without a clear objective, other than to draw attention to low freight rates. Proposed solutions to the problem ranged from investigating brokers for price gouging to permanent suspension of hours of service rules, elimination of the requirement for electronic logging devices, and even the abolishment of the Federal Motor Carrier Safety Administration (FMCSA). As the protest evolved, a demand for a White House meeting moved to the forefront. President Donald Trump helped encourage the protesters with supportive tweets and comments. Trump appeared to side with the protesters, tweeting, “I’m with the TRUCKERS all the way” after sending an administration official to greet the group with a bag of hats bearing the messages “USA Strong” and “Keep America Great.” The following morning, during a call-in interview on the popular “FOX and Friends” television show, Trump answered a question from host Ainsley Earhardt by saying, “Oh, they are price gouged.” He continued, “All they want is to be treated fairly.” The frustration caused by low freight rates was real, and has been felt by many carriers who depend on the spot market, some of them TCA members. Unfortunately, many of the protesters attempted to deal with the issue by assigning blame for the ups and downs of a free market. Spot freight rates rose in the first half of March in response to increased demand for food and household products spurred by sales to a public preparing for shelter-at-home orders. It didn’t take long, however, for rates to plummet as manufacturers and distributors shut down or restricted operations. With less freight to haul, rates were bound to drop, but then it got worse. “A lot of carriers who normally haul contract freight are forced to come to the spot market when their customers aren’t providing as many loads,” said DAT Solutions Senior Analyst Ken Adamo. “That’s a double-whammy to owner-operators who depend on the spot market. Rates are already down, and suddenly they’re competing with carriers that aren’t normally in the spot market.” Brokers were an easy target for protesters, who accused them of lowering rates paid to carriers, retaining a larger percentage of payments from shippers. Some were convinced that brokers were colluding to keep rates low, demanding investigation from the U.S. Department of Justice (DOJ). While many of the truck drivers were voicing accusations on various social media websites, others were taking a more reasoned approach. Discussions were often heated as some voiced the opinion that the way to raise spot rates was to refuse to haul cheap freight. That was the message from Robert Voltmann, president and CEO of Transportation Intermediaries Association (TIA), an industry group representing brokers. “3PLs and transportation brokers are not price gouging,” said Voltmann, who has announced he is leaving TIA at the end of September after 23 years leading the association. “There is simply not enough freight to support all of the carriers. In this case, we simply aren’t shipping much of anything and there are too many trucks chasing too little freight.” Voltmann added that suspension of hours of service (HOS) regulations due to the COVID-19 pandemic “created more artificial capacity in the marketplace.” He added, “To blame 3PLs for this situation is not only irresponsible but also reckless.” The protest escalated on May 13, when the DOJ announced it found no grounds to investigate brokers for price gouging. That same day, hundreds of buses rolled into the capital, carrying out a protest by members of the American Bus Association and the United Motorcoach Association. Trucking protesters temporarily blocked Constitution Avenue, forcing the bus caravan to reroute. Two days later, blaring air horns were the backdrop to a Trump press conference in the Rose Garden where he outlined the nation’s steps to combat COVID-19. The president raised eyebrows, and attracted the national media to the trucker protest, when he said “They’re protesting in favor of President Trump” and claimed the horns were sounding as “a sign of love.” On May 20, the protesters achieved their primary goal of obtaining a White House meeting. Although the president was not in attendance, protester representatives said they were told that he was listening in via live audio feed. After much discussion and dissent, the group decided to go with broker transparency as their main issue, followed by further HOS revisions and better representation of small trucking businesses in government. The transparency issue stems from 49 CFR 371.3, which requires brokers to disclose full rate information to any party to a transaction upon request. In many cases, brokers instead demand that carriers waive their right to see the information in the contracts they are presented. When rights aren’t waived, there are claims that brokers refuse to do business with carriers that request the records. When access to the records is given, brokers often require carrier representatives to view the records in-person at the broker’s place of business during normal working hours, requirements that effectively prevent carriers from seeing them. The Owner-Operator Independent Driver Association (OOIDA) sent a letter to congressional members on May 6, asking for a revision to the regulation that requires brokers to submit electronic copies of the records to carriers within 48 hours of completion of the load. Protesters, however, demanded access prior to acceptance of the load. Many feel that the ability to see what the shipper is paying, and how much the broker is keeping, will help reveal if the carrier is being treated fairly in negotiations. The TIA responded to the OOIDA letter with a letter to its members that placed the blame for the waiver on confidentiality requirements from shippers. While the letter instructed members to comply with 49 CFR 371.3 and be courteous to carriers, it also reminded them of the legality of requiring in-person access at their offices. Since the White House meeting and breakup of the Washington protest the following day, OOIDA and TIA have repeatedly lashed out at one another. There has been no word of a revision at FMCSA, however, the DOJ has reopened its investigation into broker dealings. Representatives of the protesters claim they are communicating with both agencies and progress is being made. Perhaps the best solution came from Ken Adamo. “I think returning back to normal will assuage a lot of this conflict,” he said. The desire for a return to normal is something carriers of all sizes, brokers and government agencies can agree on.

Finally flexible: Carriers, drivers applaud HOS revisions

By Cliff Abbott - June 30, 2020

Long-awaited revisions to the hours of service (HOS) regulations were released on May 14 to mixed reviews. The changes, published in the Federal Register on June 1, will become effective on Sept. 29. The 120-day period before the ruling becomes effective allows time for training of enforcement agencies and updating of ELD equipment. In announcing the ruling, Federal Motor Carrier Safety Administration (FMCSA) Acting Administrator Jim Mullen said: “The Department of Transportation and the Trump administration listened directly to the concerns of truckers seeking rules that are safer and have more flexibility—and we have acted. These updated hours of service rules are based on the thousands of comments we received from the American people. These reforms will improve safety on America’s roadways and strengthen the nation’s motor carrier industry.” “America’s truckers are doing a heroic job keeping our supply chain open during this unprecedented time and this rule provides greater flexibility,” said U.S. Transportation Secretary Elaine C. Chao. “The DOT listened directly to the concerns of truckers seeking rules that are safer and more flexible and we have acted.” The revisions having the greatest impact on most over-the-road drivers were a change to the required 30-minute break and a change to the method of splitting the 10-hour rest period into two segments. Also, the on-duty period for short-haul drivers was increased, as was the miles limit that defines “short-haul,” along with a change to the two-hour “adverse conditions” allowance. The 30-minute break, which is required after being on duty for eight hours, will only be required after driving for eight hours. Further, the break can be logged as any activity other than “driving.” With the change, the driver can spend the break fueling, completing paperwork or on other “on-duty” activities. The change to the rest period split is also larger than it may at first appear. Currently, the driver can split the rest period into two parts, one of which must be at least two hours long. The remaining hours must be spent in the sleeper berth. The two-hour period counts against the 14-hour day. Under the revised rule, the number of hours the driver is required to spend in the sleeper is reduced to seven. The shorter rest period, up to three hours, does NOT count against the 14-hour window. This will give the driver greater freedom in choosing when to rest, without penalizing driving time. Another revision is the adverse driving conditions exemption. Currently, if adverse conditions, usually weather-related, occur that the driver didn’t know about when dispatched, he or she can continue driving for up to two additional hours to get to their destination or to a place of safety. Those extra two hours, however, had to be driven within the 14-hour window. Since the 14-hour window wasn’t extended, drivers often couldn’t take advantage of the extra driving hours. Under the revised rules, the 14-hour period is extended, up to 16-hours, if the two additional hours of driving are needed. Finally, the short-haul exemption, excusing drivers from logging (ELD or paper) if they return to their home terminal and don’t exceed the area of a 100-air-mile radius, is changed to make the radius 150 miles. Further, the 12-hour work period is extended to 14 hours, matching their over-the-road counterparts. This exemption may benefit drivers of local routes that are home each night. The 232-page FMCSA release contained the statement, “The flexibilities in this final rule are intended to allow drivers to shift their drive and work time to mitigate the impacts of certain variables (e.g., weather, traffic, detention times, etc.) and to take breaks without penalty when they need to rest.” The announced changes were welcome news to those who had long fought for the revisions. TCA Vice President of Government Affairs David Heller commented, “TCA applauds the work of the FMCSA regarding the new hours of service regulations that will be effective this fall. This rule is a product of our industry’s dedication to data-driven decisions used to revise a regulation in order to provide our professional truck drivers an opportunity to be more flexible with their time in relation to how their day shapes up.” Heller continued, “Communicating our industry’s need to incorporate greater flexibility into the rule, TCA is viewing the final rule as a positive start to a conversation that will continue to improve upon our industry’s safety record and demonstrate that data, derived from newly implemented technology, will continue to play a major role in how this rule evolves in the future.” The Owner-Operator Independent Driver Association (OOIDA), whose petition to the FMCSA was credited in the final ruling with initiating the revision process, said in a May 15 letter to its membership, “Do we think the provisions are great? No. Do we think they are a step in the right direction? Absolutely.” Kevin Steichen, president and co-founder of United States Trucking Alliance (USTA), thought it best to withhold judgment until fully reading the 232-page FMCSA release. “It’s a good start,” he said. “It does allow for a little more flexibility in how drivers use their hours. It’s a little early for anyone to be picking it apart. Knee-jerk reactions don’t get us anywhere.” Any or all of the revisions could be held up or eliminated if legal action threatened by safety advocacy groups actually takes place. Since the 2003 HOS revision that included the 14-hour period and 34-hour restart, “final” rulings have been changed or overturned by the courts three times, due to litigation initiated by safety advocacy groups. During the comment period, multiple organizations submitted comments opposing the revisions. Among them were the National Transportation Safety Board (NTSB), the National Safety Council (NSC), the American Academy of Sleep Medicine (AASM), Advocates for Highway and Auto Safety (AHASP), RoadSafe America, the International Brotherhood of Teamsters (IBT), and the Truck Safety Coalition (TSC). Two members of Congress, Sen. Patty Murray (D-WA) and Representative Peter DeFazio (D-OR-4), also submitted opposing comments. After the final ruling, opponents expressed their displeasure. In a Teamsters press release, General President Jimmy Hoffa said, “In an effort to increase so-called ‘flexibility’ for trucking companies, the FMCSA is abandoning safety and allowing drivers to push themselves to the limit even further.” AHASP President Cathy Chase said, “Any regulatory changes should be focused on reducing this preventable death and injury toll. Extending truck drivers’ already highly demanding workdays and reducing opportunity for rest will endanger the public. The rule issued today contradicts the FMCSA’s statutory duty to reduce crashes, injuries and fatalities.” Joan Claybrook, chair of Citizens for Reliable and Safe Highways (CRASH) had this to say; “It’s no coincidence that this latest effort to expand hours of service began once truck companies and drivers were required in 2017 to objectively verify their driving time by using [ELDs] to ensure compliance with federal rules. We know that in the past, skirting the rules or falsifying hours of service records was common and widespread. Now that it is harder to do, segments of the industry have been clamoring to eviscerate hours of service limits and pushing dangerous changes like the ones issued today.” No matter how the revisions are received, one thing is for certain – trucking regulations will continue to evolve along with the industry and the world it serves.

Latest amendment to INVEST Act would strip $2 million liability insurance requirement

By Cliff Abbott - June 30, 2020

Those interested in repairing our country’s infrastructure were dismayed to learn that an amendment to the INVEST in America Act being considered in the House Committee on Transportation and Infrastructure would increase minimum financial responsibility levels from $750,000 to $2 million. The amendment was proposed by Rep. Jesus G. “Chuy” Garcia (D-Illinois) and passed the committee by a vote of 37-27 on June 17. The amendment prompted the Owner-Operator Independent Drivers Association (OOIDA), to pull its support of the bill, saying the amendment was a “poison pill” for its membership. At the same time, American Trucking Associations (ATA), an organization comprised of mostly larger carriers, announced its support. The INVEST Act, including the new amendment, has since been folded into the larger, $1.5 trillion Moving Forward Act that is currently under consideration in the House of Representatives. The act, in its present form, is crafted by Democrats in the House, with zero Republican participation, and faces a large hurdle in the Republican-controlled Senate. More recently, Rep. Mike Bost (R-Illinois) introduced an amendment that would strip the requirement for the increase in financial responsibility levels from the act. Bost is a former trucker himself, and drove for his family’s trucking business before moving into a management position. OOIDA quickly announced its support for this new amendment; however, gaining acceptance through the Democrat-majority committee will be an uphill battle. Whatever form the Moving Forward Act retains when approved by the full House, it faces strong opposition in the Senate. Opponents of the bill complain that only $300 billion of the $1.5 trillion cost of the bill is earmarked for repair of bridges and roads, while huge amounts are slated for increasing the availability of broadband and for “green” initiatives, including $25 billion for the U.S. Postal Service to, among other goals, develop a “zero emissions” fleet of vehicles. Election years typically bode well for infrastructure bills; however, Congress has already spent lavishly to stimulate the economy during the COVID-19 crisis while suffering a sharp decline in tax revenues. The idea of taking on another $1.5 trillion in debt may be unpalatable to conservative members of Congress, and President Trump has not indicated whether he will sign the bill in its current form. For now, the road remains bumpy — both literally and figuratively — for small-business truckers who are trying to cope with rising insurance rates along with the other problems of the year 2020.

Julie Mills achieves success with safety and education skills

By Cliff Abbott - June 30, 2020

If life had turned out differently, Julie Mills might be happily teaching third graders in Cumberland County, New Jersey. As many truck drivers can attest, however, our lives don’t always follow the path we plan. Mills is still using the knowledge and skills she acquired while studying for a teaching career, but instead of teaching school, she’s using those skills to keep drivers safe. Mills serves as the director of safety at Camden, New Jersey-based NFI Transportation. She’s also Women in Trucking’s June Member of the Month. Mills came to trucking like many others do. She graduated with a Master of Education from Fairleigh Dickinson University in Teaneck, New Jersey, but because of cutbacks in the state’s school system, some teaching positions had been eliminated and local schools weren’t hiring. She chose, instead, to look for work in nearby Camden, across the Delaware River from Philadelphia, Pennsylvania. The job hunt led her to a safety analyst position at NFI. “I was completely surprised,” she told The Trucker. “I fell in love with NFI and with safety.” Because Mills was new to the trucking industry, she had a lot to learn. “I knew nothing about the trucking industry or the job of truck drivers,” she said. “I’ve learned so much.” Her work in safety helped her identify issues with the company’s onboarding process; at the time, it took three weeks or more to hire a new driver. She spearheaded a pilot program at NFI that reduced onboarding time by two-thirds, helping the company keep its fleet moving in a market where drivers are hard to come by. Mills continued to progress at NFI, rising to her current position. She says her job keeps her busy. “Honestly, I don’t have a lot of free time, but I’m blessed to be in this career,” she explained. “This is my hobby. I enjoy this every day.” Part of her day at NFI is spend reviewing video recorded by the Lytx DriveCam system used in NFI vehicles. “I’m a huge supporter of the video system,” she said. “I’m reviewing video all the time, and I see what our drivers encounter.” In some cases, the videos reveal training opportunities for drivers. Mills explained, “I really feel like I am using my teaching degree. So much of the safety role involves training and assessment; I’m teaching every day.” A part of Mills’ knowledge comes from the ride-alongs that NFI requires for its safety personnel. “They are required as part of the training,” Mills said. “It was a huge eye-opener. You never know what a driver will encounter day by day.” Another part of her daily activities, which Mills says is just as important as working with drivers, is communicating the safety message to other departments at NFI, such as operations. She makes it clear that everyone in the company plays a part in safety. Mills joined the Women In Trucking organization last fall, after the group selected NFI as a Top Company for Women to Work for in Transportation in October. The company was selected from 150 entrants. “I try to read all the literature and keep up with the issues,” Mills said, adding that she’s familiar with a local group. “We actually have a group, ‘NFI Women In Trucking’ that sends representatives to WIT events. I’m looking forward to going.” Mills also discussed an NFI initiative to increase recruitment of women for the company’s driving fleet. “We had a ‘She Drives’ campaign to provide recognition to our women drivers,” she explained. The marketing campaign, developed with input from NFI women drivers, showcased the abilities of women in their driving fleet with a series of videos that can be found on YouTube. The successful program helped bring more women to drive at NFI. When she isn’t working, Mills enjoys going to the gym near her Marlton, New Jersey, home and spending time with her family. “My family has been extremely supportive of me and my career. I enjoy spending time with them when I can,” she said. She’s a fan of Philadelphia sports, too, and basketball is her favorite. “Go Sixers!” she cheered. Mills also participates in volunteer work sponsored through NFI, such as working food lines for homeless people in the community. “We volunteer at NFI,” she said. “NFI is a great company.” Whatever she’s doing, Mills keeps her focus on safety. “Safety comes in a ‘can,’” she says. “I can, you can, we can be safe. That’s something I try to live every day.”

Verdicts against trucking companies show dramatic increase of 51.7% annually, study shows

By Cliff Abbott - June 24, 2020

In the nine-year period between 2010 and 2018, jury verdict awards against trucking companies grew at a rate of 51.7% per year. That’s a lot, especially when compared to an annual standard inflation-rate growth of 1.7%. That’s just one of the findings in a recent study by the American Transportation Research Institute (ATRI) released on June 23. Using data collected from a trucking-litigation database, ATRI studied detailed information about 600 cases between 2006 and 2019. In the first five years of the study, 2006-2010, there were 26 cases in which jury awards totaled over $1 million. In the most recent five years (2015-2019), there were 300 such awards. In 2019, ATRI’s Research Advisory Committee identified so-called “nuclear verdicts” against the trucking industry as the highest research priority for the group. The results released today are the initial result of a continuing study. In recent protests held by small-business truckers in Washington, D.C., and elsewhere in the country, rising insurance rates were listed by many participants as an issue the government should address. Larger carriers, including the 4,000-employee Celadon, cited high insurance costs as a reason for economic troubles. With freight rates plummeting due to COVID-19 closures and slowdowns, insurance-premium increases have been difficult for many small carriers to bear. The ATRI study sheds some light on the reasons behind premium increases that are harming trucking businesses of every size. As part of the research, ATRI interviewed and surveyed attorneys from both sides of litigation cases, as well as insurance and motor carrier experts. The study contained recommendations for pre-trial strategies and mediation approaches designed to help avoid large post-trial verdicts. “Runaway verdicts are increasing in both size and numbers,” said Clay Porter, partner at Porter Rennie Woodard and Kendall. “This study documents a frequency in excessive awards that, while not surprising, tells us that the trial system has gotten completely off track. Foundational changes are needed in the way we determine noneconomic and punitive damages.” Another attorney, Rob Moseley with Mosely Marcinak Law Group, said, “ATRI’s research on litigation provides important guidance on leveling the playing field between truckers and trial lawyers, both in and outside of the courtroom.” Last week, small carriers were dismayed by an amendment to the proposed “INVEST in America” infrastructure bill presented by Rep. Jesus G. “Chuy” Garcia (D-Ill.) that would increase minimum financial responsibility levels from $750,000 to $2 million. The amendment passed the House Committee on Transportation and Infrastructure and was added to the bill. The bill has since been submitted to the full House of Representatives for a vote, but it may not fare as well in the Republican-controlled Senate. Trucking groups are divided on the issue, with the Owner-Operator Independent Drivers Association (OOIDA) withdrawing support for the bill in response to the amendment while the American Trucking Associations indicated its support in a June 19 press release. The ATRI study breaks down jury verdicts by such criteria as number of deaths, crash type, violations and even whether children were involved. The statistics were used to develop average award amounts for each category, enabling attorneys to better predict jury awards in individual cases. A geographic analysis showed disparity between states in verdicts between plaintiffs and defendants. One example provided showed the defense winning 92.3% of cases in Alabama, while plaintiffs won 97.1% of cases tried in California. While it may be easy to assume that the results clearly show that some states are more favorable for litigation than others, it’s important to remember than the overall numbers of cases in the study are relatively small. Still, attorney’s seeking the most favorable locations for their clients will surely pay attention. The entire 82-page study can be downloaded from the ATRI website, truckingresearch.org.

Watch for expiration dates, quality when buying DEF, says API

By Cliff Abbott - June 24, 2020

The list of ways in which the COVID-19 pandemic has impacted trucking is a long one, but there’s one impact in particular that drivers should be aware of, according to a release from the American Petroleum Institute (API). The group is advising truck owners to use caution when purchasing and storing diesel exhaust fluid (DEF). The group is reminding DEF users that the product has a useful life that can be shortened by adverse conditions, such as heat. Even under good conditions, the shelf life of DEF is about 12 months, maybe a little longer if storage conditions are optimum. DEF stored at 86 degrees and above will last only six months or so, according to API. Drivers who normally purchase DEF at truck-stop fuel pumps probably won’t need to worry, unless the truck stop has been closed down for a long period of time. It’s the packaged stock that could be a problem. Convenience stores and other retail outlets that have shut their doors for weeks or even months may have product on the shelves that has reached its expiration date. Additionally, DEF that has been stored in an area exposed to heat, such as an outdoor shed or an exposed storage box on a truck, can degrade faster. API recommends drivers make sure they note the manufacturer of the DEF they purchase. Some states require that the manufacturer be listed on the receipt, but not all. Drivers should check for an expiration date on the package, too. If there isn’t one, there may be a traceability code that contains a packaging date. Adding 12 months to this date will provide an approximate expiration date. As for DEF that has already been purchased, drivers should check for dates on their supplies. The package often has recommended storage temperatures printed on it. Side boxes on trucks usually aren’t well insulated and can get much warmer than cab and sleeper areas, while frame- or catwalk-mounted boxes can get very warm. If in doubt, the product should be replaced with fresh DEF. Exposure to direct sunlight can also cause DEF to degrade faster. DEF that has aged past its shelf life or has gone bad due to heat or sunlight exposure can cause problems with components of the selective catalytic reduction (SCR) system, such as the DEF dosing pump or the diesel particulate filter (DPF), leading to downtime and repair expense. Warranty coverage may be denied if bad DEF is identified as the cause of the failure. Diesel engines can also “derate” if bad DEF is detected. This condition will result in loss of power and speed but should allow the engine to run long enough to get to a repair facility. Drivers should responsibly discard DEF that is past its expiration date or that appears cloudy or dirty. More importantly, drivers should be aware that the age of the DEF they use is important and should buy and use only fresh, high-quality DEF. API recommends that drivers inspect packaging for the phrase, “API licensed” or similar wording to ensure high quality. API also cautions drivers that there is no additive that improves the quality of DEF; adding anything to the fluid could reduce its effectiveness or even cause damage.

At the Truck Stop: Quality, integrity are bywords of McKinney family’s 14-truck business

By Cliff Abbott - June 22, 2020

LEXINGTON, Ala. — David McKinney’s 2016 Peterbilt Pride and Class 389, affectionately named “Part Time,” was a white Fitzgerald Glider kit when purchased. “It looked like a company truck,” McKinney said, “but we’ve completely redone it. He added accent stripes and accents inside and out and teamed the tractor with a Reitnouer “Big Bubba” aluminum trailer with matching accents. Choosing Peterbilt was easy for McKinney. “I have driven Peterbilts since I was 21,” he said, “but this was my first brand-new truck.” Getting into trucking was an easy choice, too. “In the area where I live, if you didn’t know somebody, then a good job was very hard to find,” he said. “Driving a truck was a good job, and I could provide well for my family.” McKinney had the paintwork done at Rush Peterbilt and has been tinkering with the design ever since. One of the first changes he made was to replace the mirrors. “I was used to the (model) 379 mirrors and I had a hard time getting used to the 389 ones,” he explained. The mirrors on the 389 were positioned differently to allow better visibility around the exhaust stacks, which changed with the inclusion of EPA-mandated particulate filters. The dark blue of the Pete’s fenders and other parts is a match for an older Peterbilt that was the family’s mainstay for years, before the current business took off. The theme continues with the painted underside of the hood, and even the motor is white with blue accents. The cab interior features white upholstery on the seats, ceiling and door panels, and a Rockwood floor sports the same blue accents as the exterior. “Everything we couldn’t paint, we dyed” McKinney said. “It’s a little over the top, but it’s my truck.” The family has participated in quite a few truck shows, winning multiple awards. In fact, in 2018 McKinney offered his wife, Connie, a choice between a trip to the beach or attending a truck show in Virginia. “I’ve never been to a SuperRigs,” she said. The trip scored the couple a spot on the Rotella SuperRigs 2019 calendar. The whole McKinney family contributes to the 14-truck business. Connie is bookkeeper and administrator for the business, son Dalton is the dispatcher, and youngest son Dill manages the maintenance, for now. Dill is already working on getting his own CDL and will likely be driving one of the Peterbilts in the fleet once he turns 21. “I’ll lose my shop help,” McKinney quipped. Dill will also participate in another family tradition. “We’re working on another truck for my son to show,” McKinney said. The business has changed from the early years, when McKinney had equipment leased to a carrier. “We had several trucks, but we left a carrier after a bad experience and really started over,” McKinney said. That was a low point for the business. “I tried to build a company on things I didn’t like and ended up failing,” he said. “But we succeeded when we went on my own.” Currently, the McKinney operation hauls treated lumber and mulch products out of Central Tennessee, picking up return loads or deadheading, depending on available rates. In season, nursery stock can be found on the flatbeds — larger trees with heavy root balls, tied down and covered with a mesh tarp to protect against wind buffeting. Quality trucks isn’t the only thing McKinney stands for. “I went to a funeral recently and they were talking about the guy, saying, ‘He had integrity. He was honest,’” he related. “That’s what I want to be remembered for. That’s what’s important.” McKinney’s drivers are expected to be good representatives of the business. “We try to be a little better. I expect our guys to keep the trucks clean and keep up a good appearance,” he noted. McKinney insists that the company never deviate from its mission of quality. “Don’t ever act like you’re better than anyone,” he said, “but don’t ever stop trying to be better than everyone.”

A peek into the future: Autonomous trucks are coming, but drivers will still be needed

By Cliff Abbott - July 19, 2020

When it comes to autonomous vehicles, we’re in Level 3, almost to Level 4. That’s according to the Society of Automotive Engineers (SAE) “J3016 Levels of Driving Automation” table, which defines the steps going from total human control (Level 0) to total machine control (Level 5). Back in the 1990s, when trucks first came out with automated features such as blind-spot warnings, the driver was required to react. All the “system” could do was beep, vibrate or light up a warning light (or all of the above). That was Level 0. At Level 3, drivers have access to devices that steer, brake, accelerate and shift gears for the vehicle. They make the job easier, but the driver must be ready at all times to take over driving duties. Typically, these features are used on the open highway under good driving conditions, with the driver resuming control when leaving the interstate. Currently, testing is being done by multiple manufacturers on Level 4 trucks. These are trucks that can be programmed to drive themselves from point A to point B. Drivers won’t be needed — BUT the vehicles will only drive themselves under limited conditions. These vehicles may eventually still be equipped with steering wheels and floor pedals so they can be driven manually, or they may simply shut down when they can’t operate. At the present, floor pedals, steering wheels and real, human drivers are still present in these automated vehicles, just in case. Level 5 will happen when trucks can drive themselves in any conditions. So, how soon will drivers lose their jobs to robot trucks? “My cousin who’s 24, is a truck driver, and I tell him that he will (be able to) retire as a truck driver if he wants,” said Robert Brown, head of government relations and public affairs at San Diego, California-based Tu Simple. “The technology is truly transformative and exciting, but it isn’t a threat to anyone’s livelihood.” In partnership with United Parcel Service (UPS), Tu Simple is testing 40 autonomous trucks on routes in Arizona, New Mexico and Texas. “We currently run trucks from the UPS Phoenix facility to Tucson, then to El Paso, Houston and Dallas, the Texas triangle,” Brown explained in an exclusive interview with The Trucker. “Depending on the route, some trucks drive all the way to the distribution center; some get close and the driver takes control.” Those trucks are manned by experienced drivers, who are hired for more than their driving ability. “We hire 20- and 30-year veterans to come to Tu Simple,” Brown said. The testing involves learning so that automated systems can react to conditions that could vary every time out. Experienced drivers can point out incidents where the truck didn’t react properly or could have performed better, and the developers can tweak the system. It’s an ongoing process, but it won’t be long before testing gives way to actual use. When will this happen? “We’re looking at a 2024 to 2025 time period when it will get interesting,” Brown said. “That’s when an OEM will build a completely autonomous truck that’s Level 4 capable.” Once autonomous trucks are available for purchase, carriers will begin finding routes where they add value. “Implementation of Level 4 trucks will be regional, route specific and gradual,” Brown added. One reason for that is the quagmire of state and local laws and regulations. Each jurisdiction, in its own time, will issue rules for the use of new technology. Like other major changes in the trucking industry’s past, such as 53-foot trailers and 80,000-pound gross weight limits, acceptance will be piecemeal, and truckers will have to navigate a variety of requirements to stay legal. It’s already a problem. “We can operate in 21 states and test in 18 more. In 11 states we can’t run autonomous trucks,” Brown explained. For the UPS operation, Tu Simple stages its trucks in Arizona. That’s because they can’t be legally run in their home state of California. “The California DMV has been working on revising the rules since 2012, but we’re still waiting,” Brown said. Some jurisdictions will restrict where the trucks can operate, much like the restrictions on use of triple trailers in Indiana, Ohio and other states. Other decisions to use Level 4 autonomous trucks will hinge on factors such as climate, route difficulty, availability of staging areas, and other factors. For example, systems that depend on “seeing” the lines painted on the highway to steer the truck don’t work well when snow or ice obscures those lines, making self-driving vehicles a better fit for states with milder weather. “I-10 is the testing ground; the weather is favorable, and the states are legislatively friendly,” Brown explained. Perhaps the biggest question in the coming of Level 4 autonomous trucks is this: What happens to the driver? Brown believes the driver will still be at the wheel, but that the job will change. “In theory, we’re creating two driver jobs. One will pick up (the load), the autonomous truck will drive to the distribution point, and another driver will deliver,” he said. That means more driving positions that get the driver home daily. Even on long-haul routes, drivers will still be necessary to take control when conditions are unfavorable for autonomous driving. In addition, the driver’s thought process will still be necessary to monitor the performance of the vehicle when it drives itself. Doing this will take a different way of thinking, and training is already available for drivers who will be in command of the autonomous vehicles. Pima Community College in Tucson, Arizona, already offers a certification in autonomous vehicles, and other training centers are following suit. It may sound strange that special training is needed to “drive” a vehicle that does most of the work, but the ability to monitor the truck’s performance and accurately report issues requires a working knowledge of how the technology works. Brown expects that the need for drivers, already in short supply, will increase, and that autonomous trucks will fill some of that increased need rather than take away jobs. Tu Simple isn’t the only company working on this technology. “If you add our 40 trucks and all of the trucks from other technology companies out there, there’s maybe 100 trucks all together,” Brown said. Embark Trucks, based in San Francisco, is hauling freight for multiple companies and claims to have operated in rain and fog. Another San Francisco firm, Starsky Robotics, says it’s working to make trucks that are “remote controlled” by drivers for the first and last mile. Google spinoff Waymo’s Via autonomous truck is in the development stage in California and Arizona. When contacted, Waymo’s press representative declined to contribute to this article. Tesla is developing technology in electrically powered autonomous trucks. Tesla CEO Elon Musk made the news recently with a memo to employees that said it was “time to go all out and bring the Tesla semi to volume production.” The announcement jolted stock buyers, who pushed the price of one Tesla share to near $1,000. Other companies, including several truck manufacturers and engine-manufacturer Cummins, are also working on autonomous vehicles. Nikola is better known for its efforts to pair electric power and hydrogen fuel cells, but the trucks are equipped with Bosch control software and are expected to compete in the autonomous market. The next and final level of autonomous driving is Level 5, when vehicles will be able to drive themselves in any conditions without human intervention. Experts agree that those vehicles will eventually be here, but Tu Simple’s Brown doesn’t see it happening soon. “Level 5 trucks are most likely decades upon decades upon decades away,” he said. By then, autonomous trucks could be powered by nuclear engines, with anti-gravity technology that renders tires obsolete. It’s good to remember, however, that all of the vehicles driven around Orbit City by George Jetson in the famous “The Jetsons” cartoon were equipped with a steering wheel or joystick for manual steering.

INVEST in America Act amendment to increase minimum carrier insurance passes House committee

By Cliff Abbott - June 18, 2020

WASHINGTON — Truckers who applauded the long-overdue infrastructure bill now making its way through Congress were blindsided by a proposed amendment that would increase their costs of doing business. On June 18, Jesus G. “Chuy” Garcia (D-Illinois) submitted a proposed amendment to the bill that would increase the minimum level of financial responsibility for most carriers from the current $750,000 to $2 million. Haulers of hazardous materials are currently required to carry minimum liability insurance of $1 million to $5 million, depending on quantity and hazard class. Some carriers who have ceased operations in the past year cited the high cost of insurance as a factor in the demise of their businesses. The proposed amendment will undoubtedly add significantly to those costs. Garcia sits on the Highways and Transit subcommittee of the House Committee on Transportation and Infrastructure and is a member of the Future of Transportation Caucus. H.R. 2, titled Investing in a New Vision for the Environment and Surface Transportation in America Act (better known by its acronym, INVEST in America), was introduced into the House by Rep. Peter DeFazio (D-Oregon) on June 11. The bill would authorize spending of $494 billion for infrastructure and related projects over the next five years. The act, if approved, will replace the current highway funding act, FAST, which is set to expire Sep. 30. The bill is currently in the House Committee on Transportation and Infrastructure and has not been released to the full House for a vote. Critics of the bill note that the $319 billion earmarked for highway investments falls far short of the amounts estimated by the American Society of Civil Engineers (ASCE) in its 2017 Report Card, in which the group estimated a $543 billion cost just to bring current roads and bridges to an “acceptable” level. The organization estimated another $293 billion will be needed for system expansion and enhancements. The next Report Card from ASCE will be issued in 2021. Others criticize the bill on political grounds, including the exclusion of House Republicans from the drafting process and because of proposed funding of “green” initiatives such as emissions measurement and electric-vehicle charging stations. Garcia’s amendment passed the House Transportation and Infrastructure Committee June 17 by a roll-call vote of 37-27. The Owner-Operator Independent Drivers Association (OOIDA), which had previously issued a press release in support of the INVEST in America Act, sent a letter to committee members June 16 that opposed the Garcia amendment. “Passage of the amendment would be a poison pill for OOIDA and our members, forcing us to vigorously oppose a bill we otherwise support,” Collin Long, OOIDA’s director of government affairs, said in the letter. The letter also stated, “Increasing the minimum insurance requirements from $750,000 to $2 million in the midst of a major economic downturn would be nothing short of disastrous for many small motor carriers and owner-operators, who are currently struggling to stay in business due to historically low freight rates.” Once out of committee, the INVEST in America Act will go to the full House for approval. How it will fare in the Republican-controlled Senate is not known, but Republicans who feel excluded from the drafting of the bill will now have more cause to reject it, due to Rep. Garcia’s amendment.

TIA CEO Robert Voltmann out as of Sept. 30; Doug Clark takes lead as interim CEO

By Cliff Abbott - June 17, 2020

ALEXANDRIA, Va. — Personnel changes are taking place at Transportation Intermediaries Association (TIA) as long-term president and CEO Robert Voltmann announces he is leaving the organization effective Sept. 30. Douglas G. Clark, current chair of TIA’s Legacy Committee and former chair of the board of directors, took the reigns as interim CEO, effective June 10. Voltmann joined TIA as CEO in June 1997. During his 23-year tenure, the organization’s annual budget multiplied by more than 10 times and now stands at $7.5 million. Membership in TIA more than tripled, and the organization now claims to represent nearly 80% of the broker market by value. In addition, Voltmann helped establish the TIA Political Action Committee to further the group’s lobbying efforts, and the TIA Foundation, which provides educational resources to members. The TIA Services Corp. provides insurance as well as legal guidelines, model contracts and best-practices advice. No announcement has been made about Voltmann’s future plans. Voltmann commented, “It is time for me to continue to change and grow myself by taking on a new challenge and for TIA to transition to a new leader.” Voltmann was the subject of much criticism from owner-operators and small business truckers recently as he issued a series of statements, some on video, defending brokers against allegations of price-gouging. Many were angered by his assertion that the carriers are actually to blame for low rates because they accept the rates. Also at issue was brokers’ evasion of the requirements of 49 CFR 371.3, which mandates that brokers disclose information about the load, including how much they were paid by the customer, when requested by any party to the transaction. Brokers have long avoided doing so by requiring carriers to waive their right to review the information in the contract and/or making review of the contract so difficult as to dissuade review. Truckers were incensed when Voltmann issued a letter to TIA’s membership, advising them to continue the practices. New interim CEO Doug Clark takes control as accusations of broker malfeasance continue to fester and investigations continue at the U.S. Department of Justice. In the release announcing Clark’s appointment, he had this to say: “As interim CEO, I am committed to continuing to support policies and strategies that expand our relationships, educate our members and most importantly support, the 3PL industry as a whole.” Clark, an honorary lifetime member of TIA, has served in multiple roles within the organization. He was also vice president of business development for the Allen Lund Co. until 2016, when he became a transportation consultant. Clark will serve as interim CEO while the TIA board searches for a permanent replacement.

FMCSA extends CDL, CLP, medical certification waiver through Sept. 30

By Cliff Abbott - June 16, 2020

In another action related to the national emergency declared by President Donald Trump on March 13, the Federal Motor Carrier Safety Administration (FMCSA) has extended a temporary waiver of enforcement of regulations that deal with expired CDLs and medical certifications. Under the waiver, holders of commercial Driver’s licenses (CDLs), commercial learner’s permits (CLPs) and other operators of commercial vehicles in interstate commerce with expiration dates after March 1, 2020, may continue to operate without renewing their licenses until Sept. 30. Further, drivers with DOT medical certifications of at least 90 days that expire after March 1, 2020, may continue to operate without a new DOT physical exam. The original FMCSA waiver, set to expire June 30, recognized that state licensing facilities and medical offices that perform DOT physicals may be closed or have restricted hours or staffing, making it difficult or impossible for drivers to renew CDLs or physicals. The waiver is now extended until Sept. 30. The June 15 waiver differs from the June 8 extension from FMCSA that dealt with hours of service and other requirements in that it is not restricted to drivers who are hauling products essential to “emergency relief.” In this case, the cargo will have no bearing on whether the waiver applies. The waiver states that FMCSA will not take enforcement action against drivers for operation of a commercial motor vehicle with an expired CDL, CLP or medical card, provided these documents were valid on Feb. 29, 2020. Further, individual states are not required to change the driver’s status to “uncertified” if the medical certificate expires between March 1 and Sept. 30. The FMCSA release notes that the waiver does not apply to drivers whose credentials expired prior to March 1, or whose CDL or CLP has been suspended or withdrawn due to traffic offenses. Drivers who have a medical certificate that expired on or after March 1 are required to carry a paper copy of their expired certificate. A driver who has been diagnosed with a condition that would disqualify the driver from operating a commercial vehicle are not covered by the waiver. As with the June 8 waiver extension, there are special accident-reporting requirements carriers must follow. Carriers are required to report accidents via email to the DOT within five business days. The email address for reporting accidents is [email protected]. FMCSA can revoke rights under the waiver if the driver is involved in an accident or the carrier fails to report it. As the national emergency declared for the COVID-19 pandemic remains in effect, waivers like this one are in compliance with the president’s May 19 executive order to provide regulatory relief to support economic recovery. By helping drivers remain at work after their CDLs, CLPs and medical certificates expire, the Trump administration hopes to remove obstacles to reopening the country and returning its economy to full speed. The full copy of the waiver and other communications from the FMCSA, including the June 8 waiver, is available at fmcsa.dot.gov/COVID-19. The page contains a link to frequently asked questions about the emergency declaration, as well as other related information.

FMCSA eases controlled substance testing for returning drivers

By Cliff Abbott - June 12, 2020

WASHINGTON — In a June 5, 2020 announcement, the Federal Motor Carrier Safety Administration (FMCSA) eased the process of returning to work for drivers who have been furloughed or laid off due to the COVID-19 pandemic. The announcement focuses on 49 CFR 382.301. Subparagraph “A” of that regulation requires pre-employment drug testing for drivers who are newly hired, but also applies to those returning from a furlough, lay off or other period of unemployment. Subparagraph “B” provides an exception to the pre-employment testing requirement. The employer can skip the pre-employment testing if the driver returns to work within 30-days and either participated in the carrier’s random testing program for the prior 12 months or was actually (randomly) tested within in the prior six months. The FMCSA waiver temporarily extends the 30-day time period to 90-days. The carrier isn’t prohibited from drug testing anyway, but the requirements are intended to make it easier and cheaper to put drivers back to work. Carriers are still responsible for requesting the driver’s record from the Drug and Alcohol database. The FMCSA action was a result of an executive order issued by President Donald Trump on May 19. The order, No. 13924, defined U.S. policy to combat the economic consequences of the COVID-19 pandemic with the same energy as the fight against the virus itself. The agency expressed concern that carriers would incur the costs of testing of the furloughed drivers just as they were expanding operations to pre-pandemic levels. The waiver also addresses the issue of trying to arrange drug testing for large numbers of returning drivers in a short time frame. Although not addressed by the announcement, easing of drug testing requirements also eliminates the period of waiting for results of the testing to be reported, which typically takes one or two business days but can take much longer under some circumstances. Drivers who return to work under the waiver can begin driving sooner. The temporary waiver was effective June 5 and expires on September 30, 2020. The waiver also specifies reporting requirements that carriers must follow if any of the drivers who returned under the drug-testing waiver are involved in an accident. Carriers must report accidents to the FMCSA within 5 business days and must specify that the driver was operating under the terms of the waiver. The FMCSA announcement states that the extension will not negatively impact safety because the requirements for prior participation and pre-employment check with the Drug and Alcohol Clearinghouse are still in effect. Overall, carriers who opt to take advantage of the waiver will find it easier and faster to get drivers back to work.

Emergency HOS suspension extended, but modified by FMCSA

By Cliff Abbott - June 25, 2020

WASHINGTON — On June 8, the Federal Motor Carrier Safety Administration (FMCSA) announced that Emergency Declaration No. 2020-02, which suspended parts 390 through 399 of the regulations, which includes hours-of-service requirements, has been extended through July 14 with some modifications. The declaration, issued by President Trump, had already been extended to June 14 from its original expiration date of May 13. The latest extension places additional restrictions on carriers and drivers to qualify for the exemption from regulations. The extension is limited to (1) transportation of livestock and livestock feed; (2) medical supplies and equipment related to testing, diagnosis and treatment of COVID-19; and (3) supplies and equipment necessary for sanitation and safety, such as masks, gloves, hand sanitizer, soap and disinfectants. The FMCSA declaration specifically excludes routine commercial deliveries, even if they contain a small amount of sanitation products. Other categories of freight are not excluded. The agency concluded that there is no longer a need for emergency relief with respect to other categories of freight. Some regulations, such as requirements to obey state and local laws, those that address fatigue or illness, texting and driving and controlled substance testing requirements are specifically excluded from the declaration. The regulations suspension was issued by the FMCSA in response to President Donald Trump’s March 13 declaration of a national emergency for the COVID-19 pandemic and was intended to help expedite movement of supplies and equipment needed to combat the virus. The extension of the emergency declaration will expire sooner if Trump declares an end to the national emergency. The largest effect on drivers was suspension of the hours of service (HOS) requirements of the regulations, including limits on driving time or requirements for rest period lengths. Since the suspension only applied while providing direct assistance, however, confusion resulted as regulations were off and then on again, depending on the load being hauled. Additionally, even though driving limitations were suspended while hauling essential loads, those hours still counted toward the 60- and 70-hour rules once the direct assistance load was delivered and the driver returned to regular freight. Drivers sometimes needed a 34-hour restart to regain hours to continue working after a few days of hard running to deliver essential supplies. Critics of the June 14 extension, including the Owner-Operator Independent Drivers Association (OOIDA), noted that continued suspension of the regulations caused, in effect, an artificial increase in capacity, helping to suppress spot freight rates to their lowest level in years. Since the types of freight that will constitute “emergency relief” have been restricted under the latest extension, any increase in overall capacity should be minimal. Drivers should be cautions when operating under suspended regulations to make sure the loads they are hauling are covered by the declaration and to make sure hours are accounted for once they return to more “regular” freight.

U.S. Class 8 Truck Sales fall to recessionary levels in May

By Cliff Abbott - June 10, 2020

As expected, U.S. sales of Class 8 trucks declined sharply in May, according to data received today (June 10) from Wards Intelligence. According to Wards, manufacturers reported that 9,165 Class 8 trucks were sold on the U.S. market in May. 3,472 fewer than an already down April for a decline of 27.5%. It was the first sub-10,000 sales month for the industry since February 2011. Compared to May 2019, sales plummeted from 24,424 in that month, dropping a whopping 62.5%. For the year-to-date, sales of 69,384 Class 8 trucks are 37.7% behind last year’s pace, when 111,332 trucks were sold in the first five months of the year. As the U.S. economy began to open in the month of May, it’s possible that June truck sales will begin to rise, but still aren’t expected to reach 2019 levels until the later months of the year, if at all. Individual OEMs showed mixed results, with Volvo being the only line to do better in May than in April. Volvo reported 1,084 trucks sold in May, a 14.0% improvement over April sales of 951 units. For the year thus far, Volvo sales lag 38.6% behind last year’s pace, close to the industry average. Kenworth saw a sales drop of 44.2% over April results with May sales of 1,277 trucks compared to 2,290 in the prior month. It was the worst month-over-month loss of the OEMs. Peterbilt was closer to the industry average at a 27.9% decline, 1,119 sold in May compared to 1,553 in April. The company leads the way, however, when compared with May 2019, when 3,855 trucks were sold. The 71.0% decline tops the OEM list for May. On a year-to-date basis, International is the biggest loser. Sales of 8,695 trucks are down 45.9% from 16,070 sold January through May last year. With the largest share of the new Class 8 truck market, Freightliner takes the biggest hit when it comes to sheer numbers. Sales this year are 17,006 behind the 2019 pace, a decline of 40.2%. In May, the company sold 3,104 trucks, a decline of 28.1% from April. Compared with May 2019, sales declined by 5,314 units, dropping 63.6%. Mack Truck has shown the greatest resilience to the sales drop with a decline of 25.7%, best among the OEMs with the exception of Western Star, whose sales declined 4.2%. Both produce a large number of vocational trucks, possibly making the difference in sales. Currently, Freightliner holds 36.5% of all 2020 U.S. Class 8 sales, down 1.5% from last year’s mark. At 8.1% of the market, Mack has climbed from last year’s 6.8%. Tiny-but-mighty Western Star, who achieved a 2.3% market share last year, has climbed to 3.5% this year and 5.5% in May. The good news that the economy has begun to reopen may be offset by the announcement that it is now officially in recession. Those two factors will undoubtedly impact new truck sales in the coming months. The reopening may have started a little late to rescue June sales, and some buyers may wait to determine if the recession will be a short one, as expected, or will last. Whether May turns out to be the worst month of the year, or sales sink even lower in June, it is apparent that full year 2020 sales will not be as robust as they have been in the last few years. It’s unlikely that sales will fall beneath the 94,978 of recession-year 2009, but there’s no doubt that manufacturers and dealers would like to see an increase from current levels.

The timing is always right to improve fuel mileage

By Cliff Abbott - January 4, 2024

Fuel prices are down. Way down. That’s good, right? The price war waged by Russia and Saudi Arabia, coupled with worldwide bans on air travel and reduced shipping due to manufacturing shutdowns, has resulted in a steep drop in demand for petroleum products. The resulting glut of crude oil on the market depressed market prices to levels rarely seen since the early 1970s. Since the 1970s, only once, between November 1998 and January 1999, did the barrel price for crude drop below $20. Until COVID-19. When crude prices bottomed out in 1998 and 1999, trucking enjoyed national average diesel fuel prices below $1 per gallon, according to the U.S. Energy Information Administration. This time around, $2.39 was as good as it got nationally, with the lowest recorded price being $2.17 per gallon in the Gulf Coast region. With prices this low, it’s tempting to forget about all those fuel-conservation habits. Going few more miles per hour saves a little time, and idling, where legal, isn’t a problem, either, right? Unfortunately, freight rates have fallen faster than diesel prices. Spot market rates have dropped far enough to spark a three-week protest in Washington, D.C., and other shorter events in cities around the country. Some drivers have parked their trucks, waiting for rates to come back up to a level that permits them to at least break even. Those low diesel prices have another consequence. As fuel prices fall, so do fuel surcharge payments. In some cases, they’ve fallen to zero. For owner-operators who are leased to a carrier at a set rate per mile, low diesel prices can be a windfall they don’t often see, if they aren’t negated by fuel surcharge losses. For those paid by load-revenue percentage and those running under their own authority, cheap fuel is about the only positive news in a negative market. Still, fuel is very likely to be the greatest expense of an owner-operator’s business. A trucker that runs 10,000 miles per month (that’s 120,000 miles per year) and averages 6 miles per gallon of fuel will burn 20,000 gallons in a year’s time. At the current low national average of $2.39 per gallon, that’s still a whopping $47,800 per year in fuel cost. An increase in fuel efficiency of one-half mile per gallon lowers annual fuel consumption to 18,462 gallons. That’s 1,538 gallons of diesel someone doesn’t have to buy, and $3,676 that isn’t spent. That’s a set of tires with some change left over, or maybe a truck payment or two. Another way to look at cost savings is on a per-mile basis. A gallon of diesel fuel, at $2.39 and 6 miles per gallon, yields a fuel cost of $0.398 per mile. Increasing fuel mileage to 6.5 miles per gallon drops the fuel cost per mile to $0.368, saving three cents a mile. Lowering operating cost by three cents a mile provides a little more leeway on loads, and that can that can be profitable — very important when freight rates are at rock bottom. Many drivers can improve fuel mileage by .5 mile per gallon simply by adjusting their driving habits. Driving a little slower, minimizing time spent idling and using cruise control are helpful. Maintaining a proper following distance helps minimize how often the brakes are applied followed using the throttle to gain back speed. There are products on the market that help increase fuel efficiency, too. Wheel covers, flow-through mudflaps, and aerodynamic devices for wheels, according to manufacturers, are enough to provide up to 5% in fuel savings and pay for themselves before the first year of ownership is complete. Wind fairings, whether cab extenders or cab-top, help cut costs. Low-profile tires with reduced rolling resistance help, too. That $3,676 savings? When fuel prices go up — and they will — so do the savings. You’ll keep more of any fuel surcharges, too. It may be difficult to find the cash for aero improvements when rates are down, but improving fuel mileage isn’t a “now-or-never” proposition. Fuel efficiency should be considered in every purchase decision and in many driving decisions. Options that add weight to your truck also increase its fuel consumption. Chrome accessories can increase wind resistance, dropping fuel mileage. So, even though fuel is less expensive right now, it may be a good time to take a look at managing your fuel efficiency. Over time, a little savings can add up to big dollars.

Werner founder steps down after 65 years

By Cliff Abbott - June 9, 2020

OMAHA, Neb. — Many driving entrepreneurs experience the pride in seeing their name on the side of their truck. Imagine seeing it on more than 10,000 trucks. Only a few truckers reach that lofty status, and CL Werner is one of them. The Omaha, Nebraska-based company announced on June 4 that Werner is stepping down as Executive Chairman. The action was effective May 31, 2020. He will continue to serve as Chairman of the board of directors until his current term expires in May 2021. The board of directors appointed current President and CEO of the company, Derek Leathers to the position of Vice Chairman, effective May 31, 2020. Werner recommended that, at the end of his current term, Leathers be named Chairman. Like a few other trucking entrepreneurs, Werner started his company with one truck back in 1956. He replaced that truck with two more and continued to grow the fledgling company through the years. His creation has grown to its current size and also become the largest cross-border carrier with Mexico. “All I ever wanted to do was drive a truck,” said Werner. “As the first driver for our company, I know first-hand that professional drivers are, and have always been, the backbone of our country. America is witnessing that now more than ever. I’ve been proud to have created such a company.” Concerning his decision to step down, he said, “There comes a moment when you know it’s just time to move on. I’m in good health, and Werner has never been in a better position than it is today. So now is the time. I have the utmost confidence in Derek and his leadership team to continue to take Werner to the next level and beyond.” Werner Enterprises is known in the trucking industry for being a pioneer of paperless driver logs, implementing computerized logging for its drivers in the mid-1990s. Among its service offerings are dedicated, regional, expedited van and refrigerated hauling. The company has offices in Canada, Mexico and China, in addition to its U.S. facilities, providing service to every continent except Antarctica. Werner Enterprises’ can be found on the NASDAQ Global Select Market under the symbol “WERN.” For further information, visit the Werner website (werner.com).

Tonnage indexes show that April was dismal month for freight and manufacturing

By Cliff Abbott - June 7, 2020

Nobody expected April to be a good month for freight volumes, and it wasn’t. Almost all the economic indicators, from industrial production to retail sales, housing starts to unemployment claims, were headed in the wrong direction in April. The amount of tonnage hauled dropped significantly, along with spot freight rates. In Arlington, Virginia, American Trucking Associations (ATA) reported a 12.2% drop in its seasonally adjusted For-Hire Truck Tonnage Index. The index came in at 119.5 in March, meaning that March freight levels were 19.5% higher than the 2015 average of 100 that forms the base of the index. In April, that tonnage index fell to 104.9. That’s 11.3% lower than April of 2019. “April’s monthly decline was the largest in 26 years, said Bob Costello, ATA chief economist. “Considering that April factory output and retail sales plummeted, the large drop in truck freight is not surprising.” Costello pointed out that fleets hauling groceries and those hauling for online retailers generally did better than average, while others were hit harder. “Some fleets witnessed very large declines in freight last month,” he said. The ATA index is comprised of data reported by ATA member carriers and generally reflects contract freight hauled by medium to large carriers. The Cass Freight Index, which encompasses freight data from rail, ship, pipeline and other shipping modes as well as trucking, fell 15.1% in April from March tonnage, and 22.7% from April 2019. The Cass Trucking Index wasn’t quite as bad, declining 7.0% compared to April 2019. The Cass report wasn’t bullish on the coming months. “Consumer confidence remains very poor into May, as there is uncertainty over what happens next,” the report read. “We’ve never seen anything like this, so it is impossible to predict exactly what it will mean for freight as we move through the year,” was the conclusion. ACT Research released a report showing that orders for commercial vehicles and the engines that power them have plummeted. “Freight demand has fallen, global supply chains have been severely disrupted, and even before COVID-19, the world was shifting toward increased e-commerce,” noted Kenny Vieth, ACT president and senior analyst. “The pandemic’s impact has only hastened that trend. In March, e-commerce recorded a 50% increase in home goods sales, and a more than 200% jump in online food deliveries.” The news wasn’t any better at FTR, another industry analyst and advisor. In a May 18 “Monday Morning Blog,” writer Steve Graham said, “April was an awful month for the economy.” He noted that U.S. industrial production fell 11.2% in April and manufacturing fell even further, 13.7%. At the same time, retail sales fell 16.4% in the month, following an 8.3% decline in March. The two hardest-hit areas, the blog reported, were furniture sales, which declined 58.7%, and electronics and appliances, which dropped 60.6%. Graham’s blog also pointed to the high unemployment numbers as a further depressor of sales, saying, “Millions of Americans will be cautious about big purchases for some time.” Indeed, more than 38 million Americans have filed for unemployment since February. The unemployment rolls should begin shrinking as the economy opens. However, many retail businesses that are opening face occupancy restrictions, and customer numbers may not return to normal for quite some time. As freight volumes fell, freight rates followed suit and, like volumes, may have reached bottom in April. DAT’s “Trendlines” report showed a 79.6% increase in loads posted on the company’s load board in May. Despite being 8.5% lower than May 2019, the April-to-May increase not only reflects more available loads but will also drive rates higher. The same report showed an 11.8% decline in the number of trucks posted, possibly a reflection of small carriers parking their equipment in response to low freight rates. None of the trailer types (van, flat and reefer) have come anywhere near March rates. Spot freight rates for dry van and flatbed were lower than April rates, 2.4% and 1.7% respectively; however, rates began climbing in the second half of May. Refrigerated (reefer) rates climbed 4.6% compared to April, probably due more to seasonal crop harvests than economic activity. On June 3, the U.S. Census Bureau’s Report on Manufacturer’s Shipments, Inventories and Orders began with the words, “Due to recent events surrounding COVID-19, many businesses are operating on a limited capacity or have ceased operations completely.” The numbers that followed weren’t any rosier. After falling 11.0% in March, new orders for manufactured goods fell another 13.0% in April. Durable goods, those that generally remain in use for three years or more, fell 17.7%. The biggest loss in the durable goods category came from transportation equipment, which fell 48.3%. New orders for nondurable goods fell 9.0%, an indication that consumers are spending more on day-to-day items but aren’t investing in vehicles or appliances. Commodities such as petroleum and coal are also considered nondurable items, and helped pull the overall numbers down. According to the report, the number of shipments of durable goods dropped $42.4 billion, or 18.2%. April was the fourth consecutive month of declining shipments and, just as in the orders category, vehicle equipment lead the way. Shipments of nondurable goods fared better but still declined, dropping by $21.2 billion or 9.0%. Petroleum and coal products produced some of the heaviest declines. If there was any good news, it was that the unfilled orders-to-shipments ratio rose, from 6.7 in March to 7.62 in April. At the same time, inventories fell 0.4%, or $2.6 billion. Unfilled orders and low inventories can be an indicator of higher manufacturing and shipping activity to come as the economy reopens. That’s assuming businesses return to the same inventory levels as before the pandemic began. Some may choose to maintain lower inventories on the premise that the economy, and their sales, will not return to previous levels for a while. As the calendar turned to June and sales began to pick up, demonstrations that began in Minneapolis to protest the death of George Floyd while in police custody have spread to cities across the nation, some with violent results. Curfews, closures of interstate highways by protesters, and fear of crowd violence have caused some businesses that were reopening to close down until the violence ceases. Even when businesses and distribution centers are open, some drivers have refused to enter metropolitan areas because of safety concerns. Whether the protests, and the nation’s reaction to them, will be enough to dampen the economic recovery begun in May remains to be seen. “As the nation starts taking small steps toward reopening, we should see some modest improvements in the freight market, but the size of April’s decline gives us an idea of how long the road back may be,” Costello said.

Teaming up: Wes and Cindy Ward appreciate trucking fellowship

By Cliff Abbott - June 8, 2020

When the word “team” is used in trucking, it usually denotes two drivers taking turns at the wheel of one truck. In the case of Wes and Cindy Ward, it means traveling and serving together. “I do the driving,” Wes told The Trucker. “Cindy keeps me fed and taken care of. Whether it’s cooking, trip planning or preparing for the next truck show, Cindy stays busy.” The Maynardville, Tennessee-based couple owns a 2004 Peterbilt 379, christened “Prayerbilt,” that has an extended hood. “We named it ‘Prayerbilt’ because, really, everyone’s life is built on prayer,” Wes explained. The truck, equipped with a 1999 Caterpillar 3406E engine and a 13-speed transmission, is paired with a 2014 Mac 48-foot, 102-inch-wide flatbed trailer. The truck’s transmission is a recent upgrade. “It came with a 10-speed transmission, but this past Christmas we replaced it with a 13-speed,“ Wes explained. “It’s a lot easier going up hills now.” The couple leases the truck to CRST Malone, headquartered in Birmingham, Alabama. We run pretty much all over,” Wes said, “but we run the Atlanta to Phoenix lane as much as possible. That’s kind of our go-to route.” The couple hauls spools of cable on their preferred run, often returning a load of empty reels to the shipper. The empties don’t pay as well, but at least there are no deadhead miles involved. “If we find something that pays better going back that way, we’ll haul that,” Wes said. The Wards have options in their relationship with CRST. “CRST will help you manage your truck if you want,” Wes said, “but you’ll be dispatched on freight in their system, and that’s primarily east of the Mississippi (river). You can also take (brokered) loads from an approved carrier list if you want more control over your business.” Like most trucking businesses, the Wards have been impacted by the COVID-19 pandemic. “It’s been kind of slow all year, but we expected it to be slow,” Wes said. “With the COVID-19, where we used to maybe wait a day to reload, now we might be sitting for several days. It’s off and on.” The Wards brought their truck to last year’s Shell SuperRigs contest and have entered it in other shows as well. “We really enjoy all the fellowship and opportunity to share the gospel at the truck shows,” he explained. The couple was disappointed when the SuperRigs competition was moved online this year, due to safety considerations for the pandemic. “We’d still like to do a couple of shows yet this year if we could,” he said. While Wes controls the driving and maintenance on the truck, the bunk area belongs to Cindy. “I’ve almost got enough room to turn around in our 63-inch bunk,” Wes explained. “I’ve been working to expand the storage.” Some of that storage is used for the Ward’s charitable projects. “Cindy works with charity food banks,” said Wes. “She’s always helping somebody.” This year, that help extended to other drivers who are working through the COVID-19 pandemic. “We found some folks in Knoxville (Tennessee) giving away masks, and we bought some Lysol and some hand sanitizer,” Wes explained. “We gave those things out to whoever we ran across that needed them.” When they aren’t trucking, the Wards are active in their church in Knoxville. When they can’t get home for services, they like to stop at the truck-stop chapels they come across. They have four children between them, each bringing two to their marriage in 2016. There’s little time for hobbies, but Wes does what he can. “I collect H.O. model trains,” he said, “and every now and then, I pick a little (guitar).” The majority of their time, however, is spent on the road in the Prayerbilt Peterbilt, keeping the family business trucking along.

Werner Enterprises goes live on Trucker Tools platform

By Cliff Abbott - June 8, 2020

RESTON, Va., and OMAHA, Neb. – Trucker Tools has announced that Werner Enterprises is now live on the Trucker Tools platform. Werner joins Beemac, Schneider and other logistics services in using the app to match truckers with available loads. The Trucker Tools app provides a variety of services to drivers, including routing and fuel optimization, truck stop guide, and food and services lookup. Drivers can also use the “Book it Now” features of the app to find and book loads from participating brokers, now including Werner. The carrier must be approved by the broker before the ability to see loads from that broker is activated, but once that’s done, no phone calls are necessary to book loads. Additionally, the driver can access loads from multiple brokers to find the best fit and rate. Check-in calls are eliminated, too, since the app reports truck location to the broker (and customer) every five minutes. The Trucker Tools app provides many of the same services offered by expensive satellite tracking subscriptions, at zero cost to the driver. Using the app, drivers can check parking availability on the route ahead, compare fuel pricing and even read reviews of truck stops, restaurants and other businesses. More than 130,000 owner operators and small carriers are active on the Trucker Tools app, according to the company’s website. That number includes a total of more than 750,000 participating drivers. Werner-approved carriers will now be able to access loads, and can also make their trucks visible in the Werner system so they can be matched with loads available in the area. At the same time, Werner’s logistics operation will have access to more independent owner-operators and truckers, expanding the company’s base of carriers. Although many small carriers prefer to access Trucker Tools through smartphones, the system does integrate with transportation-management system (TMS) software used by some carriers for dispatching and communication. Several TMS vendors are listed as partners on the Trucker Tools website. The number of apps available for truckers can be overwhelming. Many drivers and carriers have multiple apps downloaded and must go through each of them to obtain different information. The Trucker Tools app is designed to provide enough information that other apps aren’t needed. That’s something that isn’t lost on Andy Damkroger, Werner’s associate vice president of logistics. “We are very conscious of app-fatigue, it’s a common complaint from truckers,” he said. “So, while people are tired of constantly getting asked to download another app, they’re not tired of great apps. We are taking advantage of Trucker Tools leadership in the market in that regard.” Finding that next load, and the one after that, can be a confusing and time-consuming chore for a small carrier or owner-operator. Multiple phone calls are often necessary to find the right load; even then, it’s possible to miss out on a better load listed elsewhere. With Trucker Tools, drivers can have exposure to more loads by offered by more brokers. Free to download, Trucker Tolls is another tool in the small business trucking arsenal.