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Cliff Abbott

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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

Impending EPA mandates for Class 8 trucks could be spurring pre-buys

By Cliff Abbott -

Sales of new Class 8 trucks fell further behind last year’s pace in March, according to data received from Wards Intelligence, just as analysts expected. Manufacturers reported sales of 19,658 trucks in March — 11.6% better than February’s 17,619 but 20.9% behind sales in March 2023. For the first quarter of 2024, reports show 55,871 total Class 8 trucks sold, a pace that is now 13.9% behind the same three months of 2023. While analysts have predicted a slowdown in truck sales, especially in the second half of 2024, March sales might be considered defiantly strong. If the problem of persistent low freight rates is caused by too many trucks (indicating an overcapacity for available loads), and the answer is fewer trucks, then why is the industry stubbornly buying more trucks? Kenny Vieth, president and senior analyst at ACT Research says private fleets are driving the buying. “Our answer over the past year has been private fleets, who have reclaimed freight from load boards and taken market share from for-hire markets,” he said. Companies that haul their own products aren’t as susceptible to market variations as for-hire fleets, and they can better estimate their costs for moving their products to market. Unfortunately, that means there are fewer loads posted for carriers to haul — resulting in increased competition for the loads that remain. Additionally, private fleets that seek backhauls are a part of the competition. The U.S. Environmental Protection Agency (EPA) is another factor — specifically, the next round of EPA mandates that will go into effect with the 2027 model year. New technology will be used to further reduce emissions of pollutants and greenhouse gases and to increase fuel mileage. When new technology was introduced with the 2007 models, a massive pre-buy of 2005 and 2006 models occurred as carriers, were worried about the costs and reliability of 2007 trucks, stocked their fleets with earlier-year models. To help alleviate similar concerns with the 2027 models, the government mandated that manufacturers provide more warranty coverage for problems that may arise. In doing this, however, another incentive to pre-buy was created — cost. “Current estimates are putting the Day 1 cost of the mandate, inclusive of taxes, at around $30k per Class 8 unit,” Vieth said. “Most of that added cost is tied to the warranty and useful life extensions.” Pre-buying is undoubtedly responsible, in part, for the stubbornly strong orders for new trucks, too. On the North American market, 18,200 orders were placed for new Class 8 equipment in March, according to FTR Transportation Intelligence. That’s down 34% from February order numbers but only 4% lower than March 2023 numbers. Seasonally, orders usually fall off in March, so the decline was not unexpected. “Order levels in March were below the historical average but remained in line with seasonal trends,” said Eric Starks, FTR’s chairman of the board. “Demand is not declining rapidly, but neither is the market doing significantly better than replacement level demand.” North American order numbers for Class 8 trucks are also impacted by the “nearshoring” happening in Mexico. Companies are moving manufacturing and warehousing operations from Asia and other points to take advantage of low-cost labor and reduce shipping cost and delays to U.S. markets. Portions of Northern Mexico are booming with construction of these new facilities. On the used truck market, sales remained strong in March, according to ACT’s latest State of the Industry: U.S. Classes 3-8 Used Trucks. The report indicates the number of units moved in March increased by 4% over February numbers, even as sales were 4% lower than in March 2023. The better news for potential buyers is that trucks sold in March were, on average, 20% cheaper than they were a year ago, with fewer miles on the odometer and less age. Those in the industry that rely on used equipment will find better deals these days, but those that must borrow to finance those deals will find that interest rates are higher and lenders are much more selective about approving loans. A recent release from Commercial Truck Trader revealed interesting information about today’s truck buyer. The company lists nearly 300,000 trucks and trailers for sale daily; about 30,000 of those are Class 8 vehicles. According to the release, today’s commercial vehicle buyer is younger, with 68% of the reported demographic being from Generation X and Millennials (1965-1980). Additionally, 32.5% are women. A breakdown of Class 8 buyers compared with other classes wasn’t available, but Charles Bowles, director of commercial truck OEM and strategic Initiatives, indicated a similar trend in that group. “In other words, the average truck buyer and driver is becoming younger and more diverse. “This is really a reflection of how the industry has had to respond to driver shortages by appealing to a broader base,” Bowles said. Of the new Class 8 trucks sold on the U.S. market in March, Freightliner led the way, reporting sales of 7,214, followed by Kenworth at 3,142, Peterbilt at 3,140, Volvo at 2,016, International at 1,945, Mack at 1,388 and Western Star at 806. Hino reported sales of 7 Class 8 units, all day cabs. Although all manufacturers together reported 20.9% lower sales in March than in February, the two PACCAR companies had the smallest declines, while Western Star actually gained sales. For the year to date, Freightliner’s 21,576 sold was good for 38.6% of new, Class 8 sales on the U.S. market. Peterbilt’s 8,750 claimed 15.7% while Kenworth’s 8,419 was good for 15.1% of the market. International reported first quarter sales of 5,654 to take 10.1%, followed by Volvo with 5,581 at an even 10%. Mack was responsible for 3,348 trucks or 6.0%, while Western Star’s 2,521 held 4.5% of sales. Kenworth and Peterbilt have increased their market shares from last year by 1.5% and 2.2%, respectively, perhaps due to more private fleet buying. Volvo and Western Star have also gained market share. Freight rates are expected to begin rising slowly in the second half of the year as truck buying slows, but as pre-buying increases, the reduction in capacity will be slowed.

Safety Series: Are you ready for International Roadcheck 2024?

By Cliff Abbott -

Let’s face it: No driver enjoys being stopped and going through a Department of Transportation (DOT) inspection. However, those inspections help ensure that truck owners and drivers stay on top of equipment maintenance and repair that could very well save lives. In addition to the mechanical aspects of an inspection, drivers must be prepared to present required documents and records, such as their commercial driver’s license (CDL), ELDs, medical evaluation certificates and more. While some in the industry may question the reasoning behind inspection blitzes like the Commercial Vehicle Training Alliance’s (CVSA) yearly International Roadcheck — which is scheduled for May 14-16 this year — the results of the inspections would appear to justify the need for the event. During the 2023 Roadcheck, a total of 59,429 vehicles were inspected. Of those, 19% were placed out of service (OOS) because of a critical defect. That means that, on average, nearly 1 out of every 5 commercial motor vehicles (CMVs) was taken off the road because of safety violations. On top of that, 3,256 drivers were placed OOS for having at least one qualifying violation. Be aware of Roadcheck dates, focus areas It’s important to note that the International Roadcheck is never a surprise for drivers or fleet operators; the CVSA publicizes the dates well ahead of time, and the focus areas of the event are released at least a month before the inspection dates. Trucking publications across North America, including The Trucker, work to get the word out to those in the industry. While the International Roadcheck is a useful tool to help keep drivers safe on the road, keep in mind that the violation stats released following the event don’t accurately reflect the trucking industry as a whole. That’s because different jurisdictions use different methods of selecting which trucks and drivers to inspect. Some look for older equipment that’s messy or appears not to be well cared for. Some target certain types of trucking, such as log or waste haulers. In addition, the numbers include buses and straight trucks in addition with Class 8 tractors and trailers. The selection process isn’t purely random, but the numbers are often reported as if they represent all of trucking. Be prepared If you’ll be on the road during this year’s Roadcheck, there’s a chance you’ll be one of the “lucky” drivers who gets selected for some personal attention. It’s a good idea to be prepared. As far as your vehicle goes, if you’re performing proper pre- and post-trip inspections, there should be few surprises. If you can hear air leaking from a line, the inspector will hear it, too. Oil and other fluid leaks will be seen. Tire tread will be measured, and that rust streaming from lug nuts will get a closer look. Anything that’s obvious to your eye will most likely be found by an inspector. If you haven’t routinely checked springs and air bags, along with their mounting components or steering linkage, it’s a good idea to give them a look before Roadcheck. Obviously, lights, belts, hoses and other items that can show wear need checking. Tires should be thoroughly inspected for tread depth and sidewall damage, and any dual tires that are mismatched changed out. Brakes that aren’t adjusted properly are a popular item on the inspection tour. If a slack adjuster is out of adjustment, you can actually receive two violations — one for a brake out of adjustment and another for having an automatic adjuster that isn’t working properly. If your truck is due for service or needs to go into the shop for any reason, it’s a good idea to have brake adjustment checked. The inspector will also check brake shoe or pad depth and the condition of drums or discs. What to expect While there are eight levels of inspection, most inspections during International Roadcheck will be of the Level I variety — the full inspection of both vehicle and driver. Both Level I and Level III inspections include a check of the driver’s credentials. While it sounds simple — just make sure your CDL is up to date and close at hand — there are other considerations. In many states, a driver’s CDL can be suspended for failure to pay child support or other court-ordered fees. CDLs can be downgraded by states if current medical information isn’t on file. Hazardous materials endorsements may be rescinded if TWIC cards expire, or if renewal testing isn’t completed. Often, states mail notices of these actions to the driver’s address on record, and it’s possible the driver isn’t aware the CDL is no longer valid. If there’s any reason to suspect your license may be impacted, go ahead and check. Most states let drivers request a motor vehicle report (MVR). It may cost a few dollars, but it’s a good way to make sure your CDL is good to go — before you hand it to an inspector. Each driver’s Medical Examiner’s Certificate should be on file with the state that issued the CDL. However, it never hurts to have a copy in the truck, just in case. The Skill Performance Evaluation Certificate is another document drivers frequently don’t have in their possession. Of course, your record-of-duty status needs to be up to date, along with any vehicle inspection reports you’ve used to write up deficiencies. Permit books may be inspected, too. Registration and IFTA (International Fuel Tax Agreement) documents, plus permits for any specific states must be up to date. Finally … don’t forget your seat belt. Just making sure you have it on when you speak to an inspector may not be enough. Weigh stations and inspection facilities have cameras that catch a lot of details. In fact, not wearing your seat belt could be the reason you are selected for inspection. 2024 focus areas This year’s Roadcheck is scheduled for May 14-16, and the focus areas are drug and alcohol possession and use and tractor and trailer protection valves. For the drug and alcohol part, you’ll be observed for signs of being under the influence, and your truck and trailer may be checked. A query will be conducted with the Drug and Alcohol Clearinghouse. If you have not registered with the Clearinghouse, it’s a good idea to get that done now. If you’ve failed a drug or alcohol test in the past four years, it’s likely that the record of the test and your return-to-duty (RTD) program will be in the files. If you tested positive and did not go through the RTD process, that will show up, too. During the vehicle inspection, you may be asked to disconnect the gladhands from the trailer, allowing air to escape until the tractor and trailer protection valves pop out. Air lines from the tractor and gladhand seals will be given particular attention. Carry extra seals, just in case. If everything goes well, you’ll win a new CVSA inspection decal, as more than 14,000 vehicles and drivers did in last year’s inspection.

Job Resources: Defensive driving skills are critical for professional truckers

By Cliff Abbott -

While it may seem strange to find a story about defensive driving under the heading of “Job Resources,” it actually makes complete sense when you think about it. After all, a driver’s safety record is a critical item on most motor carriers’ list of qualifications. The best drivers count their driving skills as one of their most important resources — and it’s a resource that individuals can control. This is one area where you can work to improve your skills at little to no cost — and you don’t have to be actively driving to do so. You can find time to research and study best practices while waiting to load or unload, for your vehicle to be repaired or for your next dispatch. The most important factor in driving defensively is your mindset, in particular, your system of values. Plenty of drivers can repeat all the safety cliches and rattle off the Five Keys of the Smith System, but it takes commitment to put those things into action every mile. It’s easy to let safety take a back seat to another priority, such as trying to make up time when you’re behind schedule. The safest drivers don’t allow themselves to get in a hurry when things aren’t going well. Those anxious customers and authoritarian fleet managers are not in your truck, and they don’t have the knowledge of your current situation that you do. Drivers who are under stress might find it tempting to drive faster or make frequent lane changes, or even to follow another vehicle too closely in an effort to arrive on time. By setting boundaries for yourself and not allowing others to dictate the way you drive, you can keep your risk of an accident as low as possible — and you’ll enjoy your workday more, too. Every truck driver knows that many accidents involving small vehicles and trucks are caused by the driver of the smaller vehicle. While this is not always the case, you’ll often hear trucks talk about “those pesky four-wheelers.” The reality, however, is that those four-wheelers are driven by people. It might be your spouse/partner, your parents, your kids — someone you know and love drives a four-wheeler. Another reality is that some of the people behind the wheels of those four-wheelers (and even some other truckers) don’t have your level of driving skill or your commitment to safety. By watching out for them and making decisions that keep you and your vehicle out of accidents, you can help protect everyone. Defensive driving must be about more than defending yourself; the goal is to help other motorists get home safely too. Here’s an example. Changing lanes often has a ripple effect. Vehicles behind you may also change lanes, trying to get to the fastest lane or to set themselves up for an upcoming exit. When you change lanes, others do too — and some may not be as careful as you are. Your lane change may not be the direct cause of an accident that occurs behind you, but your actions may have contributed to the chain effect. Some lane changes are necessary, of course. Frequent lane changes, however, add to the risk of accidents and usually don’t save much time in the long run. Turning in front of other vehicles, assuming they’ll see you and slow down or stop is another action that often results in an accident. Sometimes, they DON’T see you. Maybe it’s their fault; perhaps they were looking at a phone or yelling at the kids or whatever — but that doesn’t matter much when the ambulance arrives. The amount of travel time you saved by not waiting for a safer opportunity to make that turn won’t matter, either. By thinking of what other motorists might do, right or wrong, you can make safer driving decisions. Many drivers have been exposed to safety training at various points in their careers. Some receive training in CDL schools or during an orientation class when joining a new carrier. For some, it’s an orientation or two every year, going back a long time. Some drivers receive regular safety training during monthly or quarterly meetings. But drivers who don’t work for a carrier or work for one with a poor or nonexistent training program can still receive at least some training. An internet search for “commercial vehicle safety training” or “defensive driving” returns an assortment of providers of online video training. There are a host of free training videos available on YouTube, some put out by well-known and reputable industry sources such as J.J. Keller. The National Safety Council, the originator of defensive driving courses, offers online training at a reasonable cost. One company, Safety as a Service, offers free training videos to carriers that employ five or fewer drivers. The videos aren’t lengthy and cover multiple safety topics. Other training providers market subscription services to larger carriers, but it’s worth a phone call or email to find out if their products are available to owner-operators or solo drivers. The best courses offer a certificate of completion for your records. If you paid for the training, a receipt also helps show your participation. Even without proof, however, a simple log of videos you’ve reviewed, including the date, time and URL (internet address) of the video is better than no record at all. Having a record of safety training, even if you’re running a one-truck outfit, can provide benefits. A record of training might provide an assist in negotiations with your insurance company. If you’re called into court to argue a citation or defend yourself in a civil action, that record of training helps show you make a conscious effort to keep your safety and defensive driving skills well-honed. Some shippers and brokers check CSA scores and safety records when selecting a carrier, so safety training can be beneficial here as well. But even if you don’t gain any of those benefits, you’ll still benefit. By taking advantage of opportunities to increase your safety knowledge — or just refresh training you’ve already received — you’ll help make sure your driving skills are as good as they can be. And that’s a benefit to everyone you share the road with.

Key provision of Biden’s emission reduction plan knocked down by courts

By Cliff Abbott -

WASHINGTON — A significant portion of President Joe Biden’s plan to reduce U.S. greenhouse gas emissions was dealt a blow in separate federal court rulings recently. The Federal Highway Administration’s (FHWA) final rule, “National Performance Management Measures; Assessing Performance of the National Highway System, Greenhouse Gas Emissions Measure”, was published on Dec. 7, 2023. It required state departments of transportation and metropolitan planning organizations (MPOs) to establish declining carbon dioxide (CO2) targets and report on progress towards the achievement of those targets. The penalty for non-compliance would be the loss of federal highway funding. On March 27, District Judge James Wesley Hendrix of the U.S. District Court of the Northern District of Texas ruled that the FHWA does not have the authority to order states and MPOs to keep the required records and set them aside. In the 49-page judgement, Hendrix wrote, “If the people, through Congress, believe that the states should spend the time and money necessary to measure and report GHG (greenhouse gas) emissions and set declining emission targets, they may do so by amending Section 150 or passing a new law. But an agency cannot make this decision for the people.” Hendrix was appointed in 2019 by President Donald Trump. Section 150 is the portion of the Federal Register that deals with the authority granted to federal agencies and their limitations. The U.S. District Court of the Western District of Kentucky’s Paducah Division issued its own ruling on April 1, providing a summary judgement. In the 26-page ruling, District Judge Benjamin Beaton, a 2020 appointee under Trump, wrote, “The Court declares that the Final Rule exceeds the Federal Highway Administration’s statutory authority and is arbitrary and capricious.” A total of 22 states, all with Republican attorneys general, joined in the Kentucky lawsuit, and the court ruling vacates the FHWA ruling in each one. Filing in court is just one way opponents of the FHWA ruling fought to get it reversed. A joint resolution was entered into both the US House of Representatives and the Senate shortly after the FHWA ruling by 48 senators and representatives. It was quickly sent to committee for further discussion, with argument for and against largely dependent on party affiliation. In the resolution, the listing of co-sponsors required more space than the resolution itself, which simply stated, “That Congress disapproves the rule submitted by the Federal Highway Administration relating to ‘National Performance Management Measures; Assessing Performance of the National Highway System, Greenhouse Gas Emissions Measure’ (88 Fed. Reg. 85364 (December 7, 2023), and such rule shall have no force or effect.” Reps Sam Graves, R-Mo., House Transportation and Infrastructure Committee chairman, and Rick Crawford, R-Ark., chairman of the Highways and Transit Subcommittee, issued a joint statement following the Texas ruling that said, “This was a clear case of blatant overreach by the Biden Administration from the beginning, and we commend the Court for its ruling that a ‘federal administrative agency cannot act without congressional authorization,’” The representatives explained that the GHG performance measure was included in Biden’s Infrastructure Bill and was rejected by Congress, only to reappear as a FHWA ruling. They called the FHWA ruling “an unlawful attempt to circumvent Congress.” While the FHWA proposal was still seeking comments before the final ruling, Sen. Kevin Cramer, R-N.D., who is ranking member of the Senate Transportation and Infrastructure Committee, said in a statement that “The committee specifically debated whether to grant (the Department of Transportation) this authority, and the Committee’s unanimously-passed bill chose not to include this poison pill.” In the wake of the Kentucky ruling, Arkansas Attorney General Tim Griffin, one of the 21 attorneys general to file the action, issued a statement that said, “The Federal Highway Administration should be helping states maintain and update our highways, not pushing President Biden’s climate activism. Unfortunately, it took a multistate lawsuit and a federal court order to remind them of that.” The now-defunct FHWA ruling was a part of the Biden administrations goal of reducing carbon emissions by 2030. The FHWA will review the court decisions and determine next steps. For the trucking industry, the court rulings won’t make much of a difference, as the goals for adoption of electric vehicles and mandates for reduced emissions from diesel engines have not changed. Some states and MPOs will undoubtedly put emissions measurement and other requirements in place, but those that are enacted will be approved and enforced locally and not under mandate from the federal government.

Be prepared: CVSA’s International Roadcheck is especially important for truck owners

By Cliff Abbott -

The Commercial Vehicle Safety Alliance’s (CVSA) 2024 International Roadcheck is coming soon to an inspection location near you. This year’s inspection blitz is set for May 14-16. While it’s important for every driver to be prepared for inspection, it could be critical if you’re the owner-operator of a single truck or a small fleet. There’s no question that being pulled around behind the scale or getting stopped at another location for an inspection is an inconvenience. In fact, some truck owners avoid any possibility of getting inspected during the CVSA’s annual inspection event by scheduling a vacation during the Roadcheck dates. After all, during an event when 14 trucks and buses are inspected every minute of the day, the chances that your vehicle will be one of them is higher than usual. Whether you’ll be on the road or not, however, it pays to prepare for Roadcheck. To help truck owners and drivers avoid unpleasant surprises during inspection, the CVSA announces the Roadcheck dates well in advance, along with the focus areas for each year’s campaign. This gives you an opportunity for you to check your own operation and equipment, focusing on areas that inspectors have on their list. Of course, in reality, inspectors are out every day — and it pays to be ready for inspection at any time of the year. During this year’s Roadcheck, the CVSA is focusing on drug and alcohol possession, along with tractor protection and anti-bleedback systems. While the first would seem to be easy to comply with — don’t have controlled substances or alcoholic beverages in the truck, and don’t operate under the influence of them — there are additional steps to take. For example, if you have prescription medications, make sure they’re in the original container with a label showing they are legally prescribed for your use. Also, make sure that you’re taking the medications as prescribed, and that you’re not driving if you aren’t supposed to be. Another part of the drug and alcohol inspection focus will be a check of your record with the Federal Motor Carrier Safety Administration’s (FMCSA) Drug and Alcohol Clearinghouse. As an owner-operator, if you are not leased to a carrier and subject to the FMCSA’s controlled substances program, you’ll need to be enrolled in a consortium for random testing. If you haven’t changed jobs or leases in the past few years, it’s possible you aren’t registered with the Clearinghouse at all — and it’s time to find out. If you’re not registered, visit the Clearinghouse website and do so. This can save delays during an inspection. In addition, you’ll already be in the system should you decide to seek new employment or another lease situation. The Roadcheck’s other focus area is mechanical in nature and covers an area of your equipment that you should be checking anyway. Inspectors will be paying particular attention to air lines, looking and listening for leaks and other issues. If you’re driving, you’ll be asked to disconnect the gladhands to test the tractor’s protection valve. Gladhands are notorious for leaking because seals deteriorate with age and exposure to air. It’s a good idea to have a couple of extra seals on hand, especially if you drop and hook different trailers often. If a gladhand leak is found, you may need to replace a set on the spot. Regular in-cab checks of the air system should be part of your pre-trip routine anyway, but it’s especially important to perform them before an official inspection. Always chock the wheels before beginning. Test for leaks by letting the air pressure build until the compressor cuts out; then shut off the engine, push in the tractor and trailer protection valves and apply pressure to the brake pedal. Listen for air leakage and watch the gauge. The system should not lose more than 4 pounds of pressure in one minute. Your next test involves turning the key to the “on” position without starting the truck; then dump the air pressure from the system by depressing and releasing the brake pedal repeatedly. Before the system drops below 60 psi, the warning devices, including a light and a buzzer, should activate. Continue dumping air from the system until the tractor and trailer protection valves pop out. This should happen when pressure reaches 40 psi or less. If a leak is detected, if warning lights or buzzers don’t activate, or if protection valves don’t engage, repairs are needed. Whether you perform maintenance on the truck or trust it to a vendor, perform the same checks again after the maintenance has been done. Of course, CVSA focus areas aren’t the only things that will be inspected, so make sure everything is in good working order and that your records are well-maintained. Keep in mind that each jurisdiction has its own method of choosing which trucks to inspect. Some use a specific number and inspect every fifth truck, regardless of who owns it. Others may target a specific type of truck, such as logging trailers or flatbeds. Still others might look for obvious issues, such as a smoking wheel or an audible air leak. Some look for signs of neglect, such as trash strewn over the dashboard or dirty windows, under the premise that a driver who doesn’t keep the vehicle clean and organized may not pay much attention to maintenance, either. Regardless of the reason for a truck and driver’s selection for inspection, a violation can cost you thousands of dollars for repairs, especially if you can’t move the truck and the service must come to you. The loss of time can also impact your next pickup or delivery and cost you a load — or even a customer. Also remember that CSA scores for both your business and the driver can be impacted by inspection results. Some shippers, as well as brokers, look at CSA scores when selecting a carrier. Violations for maintenance issues could cost you revenue if your ability to procure loads is impacted by inspection violations. It’s a rare driver that actually looks forward to being instructed to pull around behind the scale for inspection. However, if you’re prepared, your chances of getting through with flying colors (and maybe a shiny new CVSA sticker for your windshield) are greater, and everyone is just a little bit safer.

What is the ERG and why do drivers need it?

By Cliff Abbott -

While a commercial driver’s license (CDL) is required for all operators of commercial trucks, not every professional driver undergoes the certification and training required to haul hazardous materials (hazmat). Hazmat haulers must meet additional requirements and standards for safety. However, the hazmat certification is not always required, and any driver may be called upon to transport hazardous materials at some point. This is when the Emergency Response Guidebook (ERG) is needed. If you went through driver orientation with a motor carrier, you likely received a stack of guidebooks during training. Remember the one with the bright orange cover? That’s the ERG — and you want to make sure you know where it is. The most important thing to understand about the emergency regulations belong with the bill of lading and other shipping documents whenever a load is placarded for hazardous materials. Federal regulations require that shipping paperwork must include emergency information. In other words, it’s the shipper’s responsibility. If emergency responders, such as law enforcement or fire department personnel, are required to attend your vehicle for any reason — like an accident, a fire or a hazmat leak — they’ll need to know what substances they’re dealing with and the proper way to handle the situation. That information is included in the ERG. It’s the driver’s job to make sure the ERG gets to those responders. Of course, most drivers know that affixing hazmat placards to the trailer greatly increase the likelihood of being selected for a DOT (Department of Transportation) inspection. And, even though it’s the shipper’s responsibility to provide paperwork specific to the material being transported, when a roadside inspection reveals a discrepancy, it’s the driver who stands to get cited. If the shipper fails to include emergency response information, the ERG fills the requirement, potentially preventing you from having a ticket and fine on your record. If you’re one of those drivers who wants to know as much as possible about their cargo and maintain the highest levels of safety, you’ll want to know more about the ERG. It’s important to understand that the little orange ERG book is far different than the pocket-sized copy of the Federal Motor Carrier Safety Regulations (FMCSRs) that many carriers hand out. The FMCSR book has two main functions. First, since drivers are responsible for following the regulations that pertain to them, it’s good to have a copy for reference. Some drivers frequently look up various rules to make sure they understand them. The second reason is that carriers have a defense if they’re accused of not educating their drivers about the regulations. By providing those regulations to each driver, they strengthen their defense in any actions involving the rules. The ERG, on the other hand, is provided as a safeguard, just in case a shipper doesn’t include emergency response information along with the bill of lading, as they are required to do. Drivers are supposed to make sure that information is included when signing the paperwork. Unfortunately, when the shipper hands the driver an inch-high stack of paper, it can be difficult to figure out what’s in the stack. Most drivers simply sign where they’re told and get on with the load. Keeping the ERG close at hand is insurance for the driver, in case the required information isn’t included or isn’t complete. When hauling a placarded load, drivers are required to leave the load paperwork on the driver’s seat or in a door pouch when they’re out of the truck. That’s where the ERG goes, too. The idea is that if there’s a problem while the driver is gone, the police or fire department know where to find the information they need. That information includes these items: The correct name and description of the hazardous material. Any immediate health hazards, such as inhalation hazard. Will it burn? Will it explode? Can water be used to put it out? First aid procedures for anyone exposed to the substance. Evacuation guidance. Is it necessary? How large an area to evacuate? Other hazards, such as harm to fish or wildlife if it gets into a stream. All this information is available in the ERG. The guide isn’t difficult to use, and the different sections are color-coded. Here are the basics: The blue section is simply a list of hazardous substances in alphabetical order. The yellow section is another list of hazardous substances, listed by their UN or NA identification numbers. This is helpful for quick identification of a substance based on the number on the placards or on the shipment manifest. The orange section contains the guides for each substance. Listings for each material in the blue or yellow sections provide a guide number, making it easy to look the correct guide. Green pages contain evacuation information about each substance, whether evacuation of the public is necessary and, if so, what area needs to be evacuated. Although there are apps that contain emergency response information — including an app version of the ERG itself — electronic versions are not lawful for inclusion with the load paperwork. The information MUST be printed. While the information in the ERG is primarily for the use of first responders, as the driver, your own response to an accident, fire or other threat can be more effective if you know about the substances you’re carrying. If, for example, there’s an inhalation hazard, you can direct people away from your vehicle before emergency responders even get there. The ERG can help you decide if you should remain with the vehicle or get everyone far away. Some drivers go as far as to put a bookmark in the ERG at the correct page, saving emergency responders valuable seconds when dealing with an issue. Knowing what’s in that trailer can help you make better decisions about your route, parking and more. If you’re like most drivers, you stashed those books you received in orientation somewhere in the truck and haven’t thought about them since. Understandably, not every driver enjoys recreational reading — and government regulations aren’t the most riveting stories, anyway. The ERG, however, packs a lot of useful information and just might save you the cost of a citation, or even save a life.

CVSA’s 2024 inspection blitz to include DACH queries

By Cliff Abbott -

Each year, the Commercial Vehicle Safety Alliance (CVSA) announces the focus areas for its annual International Roadcheck inspection event. This year, one of those focus areas will be checking drivers and vehicles for controlled substances and alcohol. In a first for CVSA, part of that check will be conducting a query in the Federal Motor Carrier Safety Administration’s  Drug and Alcohol Clearinghouse (DACH) database. The 2024 International Roadcheck will be conducted over a three-day period, Tuesday-Thursday, May 14-16. While it may seem the best way to survive the annual event is to avoid using or possessing prohibited substances during the event, it’s actually the DACH query that will be problematic for some drivers. The DACH was created to better track and enforce the U.S. Department of Transportation’s (DOT) drug and alcohol testing regulations. In the “old days,” a driver who tested positive for controlled substances had a few options. Back then, the people involved in the testing process didn’t communicate with state licensing agencies, so CDL suspensions that were supposed to happen often did not. Provisions for treatment and follow-up testing — required before the driver could get behind the wheel again — were often ignored. Drivers who wanted to remain in trucking simply found another job, hopefully with a carrier that was lax in checking with former employers. Owner-operators who were part of a drug and alcohol consortium could simply switch to a new one that had no record of a positive test. The rules were not terribly difficult to circumnavigate. The DACH was created to tighten up enforcement of the rules. Carriers and consortiums are required to report positive results to the DACH and to query the database for every new driver they hire. Drivers are required to give their permission for the DACH to give out their results. Individual states are required to suspend CDLs for drivers who have positive results, at least until they complete a return-to-duty (RTD) process. It became much more difficult to simply find another job and bypass the process. Then, a funny thing happened. Instead of going through the required RTD process, many drivers who tested positive for drugs and alcohol chose to stop driving instead. In the four years since the DACH went live, 226,598 drivers have had at least one drug or alcohol-related violation. Of those drivers, 120,676 (53%) did not even start the RTD process. Others started the process but dropped out before completing it. As of Dec. 31, 2023, a total of 158,330 (70%) of drivers with a positive drug or alcohol test are prohibited from performing safety-sensitive functions. These are the drivers the inspectors for the 2024 CVSA International Roadcheck will be looking for, along with any drivers who are currently under the influence of or in possession of prohibited substances. The CVSA’s guidance for the event specifies that inspectors will be observing drivers for signs of alcohol or controlled substance use and/or impairment and that they will examine the cab and trailer for alcohol or controlled substances. Whether this examination includes a search of sleeper areas or the opening of trailers will likely depend on the jurisdiction in which the inspection is performed (and possibly the cooperation of the driver). The inspection will include a query of the DACH database to determine if the driver is in a prohibited status. If the driver is found to be in a prohibited status, he or she will be placed out of service. Drivers do not need to be registered with the DACH inspectors to look for information in the database. Registering in the database does provide the driver with some advantages, however. One advantage is that drivers can view information in their own files. Another is that the driver will be notified by email of any changes to the file, such as a positive drug screen. Registering in the DACH also gives the driver more access to the information in the database. It’s a good idea for every driver to check their DACH record annually; in the month before an event like the International Roadcheck, it’s even more important. To register, simply go to the DACH website and click on the “register” button. A checklist of what is needed to complete registration can be found here. In many cases, a “limited” query will be sufficient to make sure a driver is not in a prohibited status. Information about negative testing is not entered into the database, so if a driver has no infractions, their DACH file will be empty. If the driver changes employers or joins a new consortium, or if the limited query returns information in the driver’s file, a full query will be conducted to obtain full details. For an employer to conduct a full query, the driver must give consent electronically through the DACH itself; drivers must be registered in order to do so. CVSA information for drivers for the upcoming International Roadcheck specifies some common-sense guidance. They should not possess or be under the influence of alcohol or controlled substances while on duty, and they should not consume alcohol within four hours of coming on duty. Drivers who have had a positive test for alcohol or controlled substances will benefit from making sure they know exactly what is in their file before the inspection. Drivers who have tested positive and have not undergone the RTD process have an opportunity to get the process started before being placed out of service during an inspection. Drivers who would like more information about the 2024 Internation Roadcheck can download a brochure here.

Business ‘cents’: Knowing your cost per mile is vital for owner-ops

By Cliff Abbott -

Do you know the cost-per-mile to operate your truck? If you don’t, then every decision you make about which loads to accept is suspect. In today’s market, not knowing what it costs to operate is nearly a guarantee of failure. One of the largest areas where owners fail to understand their operational costs is fuel. Many drivers rely on information provided in the driver interface in the truck. Most of these can provide information such as miles traveled, average speed, average miles per gallon and other statistics. It’s great if you regularly review the numbers, but many drivers depend on the “current mpg” information shown on the display — without understanding that the number shown may not be close to the long-term average. A fuel log is an important part of tracking not only expense, but also vehicle performance. Whether on paper or in a digital spreadsheet, you should make an entry in your fuel log every time fuel is purchased. The entry should include, at a minimum, the odometer reading, gallons purchased, miles traveled since the last fuel purchase, and the price paid for the fuel. A space for recording engine idle hours is helpful, especially if you idle the engine while sleeping. Another bit of information that can be very helpful is a column for recording conditions. By recording this information, you’ll be able to identify trends for certain conditions that you can factor into your load decisions. For example, let’s say you’re taking a 1,000-mile load from Denver to Chicago. Denver’s elevation of 5,280 feet above sea level is the reason it’s called “the mile-high city.” Chicago’s elevation is a little less than 600 feet. Your trip will include uphill and downhill portions, and you may not even notice the nearly a mile of altitude you’ll descend — but it makes a difference. If the origin and destination were reversed, you’d be climbing that mile. Wind is a huge factor in fuel mileage. Jet airliners often change altitude to take advantage of tailwinds, but that’s not an option for trucks. However, if you keep track of whether you were moving with or against the prevailing winds, you’ll soon see a difference in fuel mileage. That difference can be meaningful when you’re deciding whether to take a load. Whether you use statistics provided by the truck’s system or calculate your own, you should know exactly how many mpg your truck averages, as well as the average fuel price you paid (including discounts). If you idle your engine a lot, keep track of that separately. But there’s a lot more to overall cost per mile than just your truck’s mpg. Another factor in your cost-per-mile calculations is insurance premiums, both for your truck and for you as a driver. If you lease your truck to a carrier, don’t forget to include any deductions taken from your settlements for liability, workers compensation or other forms of insurance. In addition, maintenance is a large part of your annual budget. It’s important to keep track of all expenses for maintenance, whether for recurring services, such as oil changes, or major repairs, like engine or transmission work. If you financed your truck, all payments and fees count, too. Other credit fees might be charges or interest on the use of a fuel card or a credit card you use for business expenses. As an owner-operator or the owner of a small business, your salary, including benefits, is another expense. If you’re assuming that any settlement money left over after you pay the bills is personal cash, you’re setting yourself up for failure. As a business owner, calculate a salary to pay yourself each week. Remember that you are responsible for self-employment tax of 15.3% of your profit. If you own your own truck, you may also be able to claim per diem at the end of the year and you can adjust your pay rate to reflect the savings. Often, personal savings and especially a retirement account are overlooked by those who are self-employed. Those things are a part of your pay, too, as is health insurance, if you do not have it through a spouse or other source. A good accountant or tax preparer can save you much more than the cost of their services. They can also help you avoid legal issues that stem from incorrectly reporting income and taxes. Their fees are business expenses and tax-deductible as well. Other expenses, such as food, clothing, footwear and personal toiletries are costs you may not be able to claim as business expenses, depending on the item and whether you were away from your home when it was purchased. However, they ARE expenses you’ll need to factor in. If you typically purchase three meals per day while on the road, the cost of them should be included in the rate you receive for a load. Finally, accounting for deadhead, bobtail and personal conveyance miles is important, too. When considering whether to accept a load, be sure to factor in how many miles you’ll need to drive to the pickup location. If your trip includes a stop at home, you’ll have expenses for the extra miles you’ll travel to and from your residence. If your delivery is to a region where finding a return load is difficult, you should factor in the miles you’ll need to drive to another area to pick up your next load. At the end of the year, if you have recorded your costs properly, you (or your accountant) will be able to calculate total expenses for the year. That number, divided by your total miles travelled, will give you an average cost per mile (CPM). You may need to adjust this number if, for example, you know you’ll have expenses next year that you didn’t have this year. For example, if you know you’ll need a brake job or a new set of tires in the coming year, you’ll want to add to your CPM to make sure you can cover those costs.

Strong February Class 8 sales won’t help overcapacity in the market

By Cliff Abbott -

As Februarys go, the second month of 2024 wasn’t a bad month for U.S. sales of new Class 8 trucks. Manufacturers reported selling 17,619 of them, according to Wards Intelligence. That makes it the third-highest February in the past decade. February was the seventh consecutive month in which sales were down from the same month a year earlier. In February 2023, when sales were still on the upswing, 20,136 new trucks were sold. For the year to date (which includes only two months of reports), sales are running 9.6% behind last year’s pace. Sales of new trucks is often viewed as an indicator of where the freight market is headed. When carriers are confident they’ll be able to earn a profit in the coming months, they buy new trucks. When the market points upward, many company drivers with an entrepreneurial spirit buy trucks and become owner-operators, starting new carriers in hopes that growing business will one day have a “started with a single truck” story as many larger carriers do today. But this time, there’s a catch. The government has issued new fuel mileage and emissions standards for model year 2027. Those new standards include something else — a requirement that warranties be lengthened to help buyers have confidence in vehicles built with new technology. That technology (along with the extended warranties the manufacturers must fund) is expected to drive the price of trucks up by $25,000-$30,000 each. Like they did in 2006 and again in 2009, carriers are considering buying more trucks built before the new standards (and higher pricing) go into effect. The closer the calendar gets to the production of 2027 model-year trucks, the more pre-buying is expected. Some of that will start with the introduction of the 2025 models later this year. The problem is that the industry already has a capacity problem: There are too many available trucks to haul too few available loads, increasing competition for freight and keeping rates at levels that make it difficult to sustain a trucking business. For freight rates to improve, the number of available trucks needs to go down, not up, unless something happens to cause the economy to greatly increase production. Pre-buying trucks now only increases capacity. According to a blog post by ACT Research, February U.S. orders for new Class 8 trucks were at 17,213, a 32% increase over February 2023 orders. A part of that increase is on the vocational side, according to ACT President and Senior Analyst Kenny Vieth. “The vocational market remains strong, particularly in the US, where nearshoring and government programs have spurred investment,” Vieth said. One reason for the vocational increase is nearshoring, a practice that’s creating a boom in the Mexico market as manufacturers and warehousers move operations from Asian locations, particularly China, closer to U.S. markets. Doing so takes advantage of lower-cost labor and more favorable tariffs available in Mexico and saves shipping costs as ships from Asia load and unload in Mexican ports, bypassing the delays and expense of U.S. west coast ports. For the first time in more than 20 years, U.S. imports from Mexico have surpassed those from China. More trucks will be needed to handle the increase in imports. Another stimulant for the vocational side is the $1 trillion infrastructure bill passed in 2021. The government money available for roads, bridges and other construction projects will stimulate sales of trucks to haul building materials such as asphalt and concrete. Vieth also believes private fleets are responsible for a portion of the sales increase. “With February orders underscoring the ongoing above-demand-level trend in an otherwise overcapacitized U.S. market, further corroboration of evidence leads us to believe that prebuying is being driven by private fleets,” he said. The reason, he explained, is that private fleets tend to have longer trade cycles, and because they’re hauling their own products they aren’t as dependent on freight rates. Since those private fleets sometimes obtain backhauls on the freight market, however, those trucks DO have an impact on capacity. Buyers ordered 20,500 trailers in February, preliminary estimates from ACT showed, down 21% from last February but still robust. On the used truck side of the market, retail sales volumes experienced a 15% increase in February compared to January and a 32% increase compared with February of 2023. Because more used trucks are available, the price of the average used truck sold in February was 19% lower than it was a year ago. The average miles on a used truck sold in February was 10% lower than a year ago and its age was 5% newer. “The gain was stronger than expected as sales are typically still emerging from the winter freeze this time of year,” said Steve Tam, ACT vice president and senior analyst. While more used trucks are available and cost less, on average, the increased cost of credit due to higher interest rates plus more restrictive loan policies will keep some potential buyers from taking advantage. The sales performance for individual truck manufacturers varied. Freightliner sold 6,027 Class 8 trucks on the U.S. market in February, down 27.7% from January and down 18.2% from February a year ago. Volvo sales increased by 50.5% over January with sales of 2,142 but were down 9.5% from February 2023. International reported U.S. Class 8 sales of 1,825 for February, down 3.1% from January and down 35.5% from February 2025. The PACCAR companies remained fairly constant for the month. Kenworth reported sales of 2,791, up 12.3% from January but down 1.8% from last February. Peterbilt’s 2,916 sold topped January’s total by 8.2% and was 2.6% better than February 2023 sales. Mack Truck reported sales of 1,104, up 29% from January but down 17.9% from last February. Western Star sold fewer than anyone else at 814 units, down 9.7% from January but 52.4% better than February 2023. For the year to date, 39.7% of new, Class 8 trucks sold on the U.S. market have been Freightliners, followed by Peterbilt at 15.5%, Kenworth at 14.6%, International at 10.2%, Volvo at 9.8%, Mack at 5.4% and Western Star at 4.7%.

Predicted light at the end of the freight rate tunnel still far away

By Cliff Abbott -

The signs indicating a market upturn are there, according to most trucking industry analysts — but the rates haven’t responded yet. Why? The answer is simple: There are still too many trucks available to haul shipment numbers that remain stubbornly low. According to the Federal Motor Carrier Safety Administration, more than 4,000 carriers left the industry in February 2024. At the same time, more than twice that many registered as new carriers. Adding more trucks to a market that’s already oversaturated isn’t likely to push rates upward; there is still too much supply. On the demand side, things may be looking up. According to Motive, a marketer of AI safety and technology products, trucking visits to warehouses for the top 50 retailers increased by 1.2%. The March Motive Economic Report indicated department stores and electronics saw “significant surges” while home-improvement store visits were up 14.6% from February 2023 levels. “Nearshoring” is a word that is increasingly heard around the trucking industry. The term is used to describe companies that move manufacturing or warehousing facilities to another country that’s closer to the country in which they want to sell their products. For the U.S., Mexico is becoming more popular as companies move their facilities from China and other Asian countries to new plants closer to the U.S. According to Motive, the number of vehicles registered for cross-border shipping grew by 14.3% last year, an indication that carriers are gearing up for more freight coming from Mexico. The impact for trucking may be fewer shipments from Asia going to west coast ports, resulting in fewer truckloads from the west coast and more freight from facilities along the U.S.-Mexico border. The Motive report concludes with a prediction that the second half of 2024 will be “a more carrier-friendly environment.” Poor January weather conditions reduced shipment numbers, so gains made in February mostly reclaimed the ground lost a month earlier. The American Trucking Associations (ATA) reported that its For-Hire Truck Tonnage Index increased 4.3% in February after falling 3.2% in January. “February’s level was the highest in a year, yet the index still contracted from a year earlier, suggesting truck freight remains in a recession,” said ATA Chief Economist Bob Costello. The February ATA Index fell 1.4% compared to February 2023. It was the 12th consecutive month that came in lower than the same month a year earlier. The ATA index includes data received from its membership and represents mostly contract freight shipments. Spot rates, on the average, increased by a penny for flatbed freight in February, according to DAT Trendlines published by DAT Freight & Analytics. Average rates for dry van and refrigerated loads, however, fared worse. The inclement weather that reduced shipments in January had a positive effect on rates, rising to an average of $2.15 per mile for dry van and $2.57 per mile for refrigerated. Once the weather improved in February, average spot rates dropped by nine cents for dry van to $2.06, while refrigerated rates dropped 15 cents to an average of $2.42 per mile. The Cass Freight Index for Shipments rose by 2% on a seasonally adjusted basis in February, possibly assisted by the extra day in the month due to it being a leap year. Compared to February 2023, shipments were down 4.5%, an indication that increases haven’t yet made up for recent declines. Tim Denoyer, who authors the Cass report and is vice president and senior analyst at ACT Research, noted the 4.5% decline was the smallest in 10 months. For the entire first quarter of 2024, Denoyer expects the total freight index to rise about 3% from the last quarter of 2023, a positive sign that things are getting better. “With destocking playing out and goods consumption rising, we see this improvement as an encouraging sign that a recovery is beginning,” Denoyer wrote. The Cass Truckload Linehaul Index, comprised of shipment and expenditure numbers from Cass clients, rose a tenth of a percent in February after falling 0.6% in January. Compared to February 2023, the index fell 5.4%. Again, the decline was the smallest of the past year, indicating things are getting better. The index includes both spot and contract freight. Denoyer pointed out that new EPA regulations that go into effect in 2027 will likely harm freight rates in the near term. The reason for this, he says, is that carriers are starting to buy additional equipment now to avoid expected $30,000 price increases that will take effect in 2026. As the mandate gets closer, the pre-buying will accelerate — but for now, it’s difficult to get excess capacity out of the freight market if carriers are increasing the number of trucks they plan on buying. “These capacity additions suggest the long bottom in the freight cycle may lengthen even further,” Denoyer wrote. A Feb. 29, 2024, blog post by ACT Research claimed that rising imports and intermodal trends are key indicators of a recovery in trucking for 2024. “The truckload CEOs we interviewed at ACT’s seminar on Feb. 21 (ACT Market Vitals, February 20-22, Columbus, Indiana) are seeing volumes improve enough to get more selective on freight mix, but this demand is not finding its way into the spot market yet,” Denoyer said. ACT also reported that driver availability improved again in February, likely due to small carrier revocations as owner-operators shut down their businesses and rejoin the driver market. That’s a trend that’s likely to reverse once freight rates begin to increase. The second half of 2024 could see the trucking industry turn the corner. Rising freight rates would be a nice way to help carriers keep up with the inflation that’s raising the cost of everything else.

Tighter emissions standards will shape the future of trucking

By Cliff Abbott -

Whether you like it or not — and there are many people in both camps — California is leading the way with proposed steps to reduce greenhouse gas (GHG) and other harmful emissions. Other states have adopted mandates from the California Air Resources Board (CARB) for their own use, or at least modeled their emissions reduction programs in a similar fashion. The Biden administration has repeatedly pushed for the entire country to adopt CARB standards, with some success. All the conflicting laws, proposals and statements, both in Washington and individual states, have resulted in general confusion and worry. Would-be truck buyers are understandably squeamish about purchasing equipment that may be barred from operating in certain jurisdictions. There’s also concern that government incentives to purchase zero emissions vehicles (ZEVs) might give buyers a competitive edge over users of equipment powered by internal combustion engines (ICE). On the other hand, some who are considering the purchase of ZEVs are worried the technology — including availability of charging — isn’t yet viable for their operational needs. It’s not hard to buy ZEVs, but then there’s the question of finding certified technicians for maintenance. And what if roadside assistance is needed? And can carriers fit the limited range of ZEVs into their current freight mix? Many truckers can still remember the debacle of 2007, when heavy-duty trucks were equipped with particulate filters to reduce NOx emissions. Stories of stranded trucks, with drivers trying to force a regen were common, as were astronomical bills to tow those trucks to a maintenance facility and repair or replace uncooperative parts. In February, during the ACT Research Market Vitals conference in Columbus, Indiana, Lydia Vieth helped participants sort out what’s coming. Her presentation outlined both CARB and EPA changes that are currently active and those that are to follow. Vieth is a research analyst for electrification and autonomy at ACT. “So many changes are coming that it’s difficult to keep track, and even the announced changes could change further,” she said. So, what’s coming up for heavy-duty trucks? To begin, CARB has mandated further NOx reductions in new trucks beginning with the 2024 model year. That’s right now. Several other states have adopted similar policies. Beginning Jan. 1, 2024, CARB-compliant vehicles must be equipped with a CARB clean-idle sticker to be allowed to idle while parked in the state. To qualify for the sticker, trucks must be equipped with engines specified by CARB’s rule. For example, buyers may need to choose a 13-liter engine rather than a 15-liter engine. The Environmental Protection Agency (EPA) followed the CARB rule with reductions of its own, set to begin with the 2027 model year. In July 2023, CARB agreed to change its NOx requirements to match the lower EPA requirement by 2027. More importantly, CARB allowed manufacturers to use offsets to meet current emissions targets. The EPA’s 2027 rules will require further reductions in NOx emissions. They’ll have another impact on the industry — the cost of new equipment will rise substantially. New engines may be equipped with such technology as cylinder deactivation, multi-stream dual aftertreatment systems involving two or more selective catalytic reduction converters (as opposed to the current single converter) and diesel exhaust fluid (DEF) heaters. Moreover, the EPA mandated that new components must be warranted for periods longer than many current truck warrantees last, up to 435,000 miles. Because of the cost of new technology and warranties, the price of a new Class 8 truck is expected to rise by $20,000 to $30,000 in 2027. However, buyers won’t have to wait until 2027 to see higher prices. Carriers are expected to stock up on 2025 and 2026 models to beat the 2027 price increases. This pre-buying activity, along with the current inflation rate, will push prices higher for 2025-26 models. In addition to new NOx rules, there are new GHG rules on the horizon. CARB’s Advanced Clean Trucks (ACT) and Advanced Clean Fleets (ACF) initiatives aggressively push for incorporation of ZEVs in California-registered trucks. By 2026, 10% of Class 7 and 8 trucks sold in California must be ZEVs — most likely battery-electric vehicles. That percentage doubles two years later and reaches 30% by 2030. At this point, 11 states have adopted the CARB standards, and more are headed that way. Even though the installation of lines and transformers to handle the additional charging requirements of electric rigs is expected to take two years or longer in some jurisdictions, many politicians seem keen to force the adoption of ZEVs. Starting this year, truck owners who work drayage operations at California ports won’t be able to upgrade their trucks with similar diesel-powered units. Instead, replacements that haul from ports must be ZEVs. By 2035, ALL drayage trucks must be ZEVs. In April 2023, the EPA published a notice of proposed rulemaking to set national standards for ZEV adoption. This proposal separates the requirements for heavy-duty (Classes 7 and 8) trucks between vocational, day cab and sleeper cab trucks. By 2030, for example, 30% of vocational trucks must be ZEVs, while 20% of day cab and 10% of sleeper cab tractors must be ZEVs. While the premise that different types of trucks, such as sleeper-equipped tractors, are more likely to be involved in long-haul operations and therefore more difficult to recharge, some industry experts believe vocational trucks may actually require more power. Dump trucks, for example, are typically loaded to maximum levels. Trash trucks require power to run compactors and are also heavy when loaded. In any event, the proposed ZEV percentages haven’t been issued yet. The final rule is expected to be released later in March, but time is getting short. With 2024 being a presidential election year, it remains to be seen if the post-election policy will be one of stricter or looser mandates for new heavy-duty trucks. Regardless of federal policy, California, along with other states that have adopted CARB standards, will undoubtedly continue to push for heavy-duty commercial ZEVs.

Future Driven: Autonomous trucks are closer to reality but safety, economy still in question

By Cliff Abbott -

There is little doubt that the implementation of autonomous trucks will increase the efficiency of freight operations once the technology is widely available and legal to operate in enough areas. According to proponents, autonomous vehicles address too many issues in the trucking industry to be ignored. “I think that the supply chain crisis and the progress on the technology have convinced a lot of the key voices in the trucking industry that this technology is here and more to the point, this technology is really necessary,” said Dan Goff, director of external affairs at Kodiak Robotics. “There’s really nothing else coming down the pike that can solve some of the issues that the trucking industry faces, particularly around driver recruiting and retention.” Ann Rundle, vice president of electrification and autonomy for ACT Research, points to the overall industry efficiency that can be afforded by automation. “You would never have a factory designed to run one shift, right? A Class A tractor is just that,” she explained. “It is a factory, and it’s running one shift. But what if you could have that factory, i.e., that truck, running three shifts?” Carriers and truck makers have partnered with autonomous truck developers to bring the technology to real-world applications, hauling freight in several Southern states under the watchful eye of drivers who, while capable of taking control as needed, also provide valuable feedback about vehicle performance to developers. The past year, however, has seen the falling away of some key players in the race to integrate autonomy in the trucking industry. Pittsburgh-based Locomation laid off its workforce and shuttered operations. San Francisco-based Embark Trucks was acquired by Applied Intuition. Google’s WAYMO ceased its autonomous truck program in July. Also last year, TuSimple announced it was ceasing its U.S. based operations to focus on its China structure. The company is currently under investigation by the FBI and the U.S. Securities and Exchange Commission for its failure to disclose ties with Hydron, a Chinese tech company. However, there are other autonomous truck developers still going strong — Kodiak Robotics, Aurora and its partnership with Continental and Torc Robotics, along with Volvo Autonomous Solutions. “I think 2024 is really gonna be the key year,” Goff said. “I think this year is the first year where we’re going to see some kind of real driverless trucking happening on the road. It’s going to be limited, but I think this is the year that we really show that this is going to happen.” As the technology gets closer to widespread use, legislators are weighing in on the operation of autonomous vehicles, particularly commercial trucks, within the boundaries of their jurisdictions. “People are worried about a heavy truck without a driver, run by a computer,” Rundle said. “They’re more worried about that than about the driver who is distracted or drowsy or whatever. They’re more worried about no driver than a driver that shouldn’t be driving.” In Indiana, Senate Bill 57 would require that a human operator licensed to operate an autonomous vehicle be physically present and able to take control, if necessary. In New York, Senate Bill 7758 would require a “natural person holding a valid license” be present inside an automated commercial vehicle. The California legislature passed Assembly Bill 316, requiring human operators in commercial vehicles, only to see it vetoed at the desk of Gov. Gavin Newsom. While safety is often cited as a reason for demanding the presence of qualified drivers in autonomous trucks, other motives are often in play. The International Brotherhood of Teamsters, for example, has a vested interest in legal mandates for employees they can organize. Some legislators have talked of preserving jobs and saving communities. But, just as safety is currently an argument used against driverless trucks, safety will also be an argument used to make them mainstream. “(The autonomous system is) looking 360, and it’s looking forward,” Rundle explained. “It’s actually able to see better than any good truck driver would and then also, there is no such thing as a blind spot anymore, right?” Even the best of drivers can’t concentrate on the view ahead, behind and along both sides plus gauges all at the same time, she noted. “But a computer CAN do that, because the computer is five different sets of eyes,” she said. The drawback to autonomous technology, according to Goff, has been redundancy. “You basically have a set of computers talking to a set of actuators,” he explained. “Those actuators are pretty reliable — but nothing in life is 100% reliable, and it’s a lot of risk to put responsibility for an 80,000-pound truck on say, a single steering actuator.” Without a driver present to override the system, redundancy provides autonomous equipment with a failsafe that prevents accidents. “Last week, we actually were the first company to unveil a fully redundant driverless ready hardware,” Goff told Truckload Authority in late January. “That’s going to be the platform that we use for our first driverless runs later this year, and that’s really one of the prerequisites to driverless operations at scale.” At ACT Research, Rundle’s team monitors the progress of autonomous trucking technology and has forecasted its acceptance in the trucking industry. “In our forecast, we looked primarily at Class A tractors, we looked a little bit medium duty,” she said. “We see it coming as a very measured deployment, starting in Texas and then moving out where regulations allow.” The ACT team predicts that 10% to 14% of the tractor population will be driverless by the year 2040. Forecasts will change, of course, with further technology development and new regulations put in place, and forecasters will be revising predictions accordingly. Rundle pointed out that some segments of trucking that require driver attendance, such as flatbed and livestock, may never be automated. Goff remains committed to progress. “We need this technology. We do not have enough people to keep our supply chains moving,” he said. “Your readers are well aware that the driver shortage is real — it’s growing. It’s a massive economic threat.” While many newer tractors are equipped with autonomous features, such as lane-departure alerts, automatic emergency braking, and more, the widespread use of completely autonomous rigs remains on the horizon. Photo courtesy of Kodiak Robotics This article originally appeared in the March/April 2024 edition of Truckload Authority, the official publication of the Truckload Carriers Association.

Pursuit of a Dream: Fleet operators striving for lower costs, lower emissions now and in the future

By Cliff Abbott -

The pursuit of a zero-emissions fleet of transport vehicles is relentless. Hardly a day goes by without another government push to further reduce greenhouse gas (GHG) and other pollutants from the exhaust of commercial motor vehicles (CMVs). The “solution” most commonly referenced is electric vehicles (EVs) — but, if truth be told, the technology is a long way from being viable for long-haul trucking operations. With that said, the Truckload Carriers Association (TCA) recognizes the nation’s need for zero-emissions vehicles in general but believes multiple solutions should be explored. “It’s not a question of IF we get to zero emissions, but more so WHEN we get to zero emissions,” explained David Heller, TCA’s senior vice president of safety and government affairs, during a January 10 webinar. “I think our history demonstrates that we are more than willing to do our part in terms of zero-emission vehicles,” he said. “However, it can’t be rolled out tomorrow because of three magical words: Achievability in terms of the rules and technology; Affordability in terms of the equipment; and Reliability of the equipment and the infrastructure.” Allen Schaeffer, executive director of the Engine Technology Forum, believes too little credit is given to the trucking industry for the progress it has made thus far in reducing emissions. What’s more, he thinks it’s possible to achieve even more reductions in harmful emissions through the industry’s current internal combustion engine (ICE) than through moving to an all-electric fleet. “When you look at the level of reduction (compared to pre-2010 models), we’re talking over 98% reduction in allowable levels of particulate from heavy duty truck engines,” Schaeffer said. “And now, in 2010 and later model years, a similar amount of reduction from NOx emissions.” In fact, the forum refers to current models “near-zero emissions vehicles.” Today, the focus is more on reduction of GHG emissions than NOx or particulates. “There are tremendous opportunities for reducing carbon emissions from the existing fleet of internal combustion engines, diesel vehicles,” Schaeffer said. “One way you can do that is to start using biodiesel or renewable diesel fuel that has anywhere from 50% to 85% less carbon emissions than traditional petroleum diesel. And that’s something that any diesel engine can start using today.” Another way carriers can quickly reduce GHG emissions is to accelerate the removal of pre-2007 trucks from their fleets. “The opportunity to accelerate the turnover of the existing fleet and get more new vehicles out there will go a long way,” Schaeffer said. “For owners of old equipment, (investing in newer equipment) is going to make their lives easier in terms of maintenance and safety features.” According to information on the Engine Technology Forum’s website, it would take more than 60 of today’s modern diesel-powered heavy trucks to equal the emissions of one 1988 model. However, only 57% of registered CMVs today are 2010 model-year or newer. “There’s about 65% or so on the road today that have at least a particulate filter on them,” Schaeffer explained. “That means that there’s probably 30% of the commercial trucks out there that are pre-2007.” The Engine Technology Forum performed a study encompassing trucking in the U.S.’s 10 Northeastern states comparing the benefits of changing to an all-electric fleet of trucks to the benefits of removing pre-2007 diesel powered trucks and changing the fleet to biodiesel over a 10-year period. Schaeffer explained the results. “The highlight simply is that (this) study showed we could reduce three times more carbon emissions at 25% of the cost by accelerating the turnover of the fleet and using the low carbon renewable biodiesel fuels as compared to electrification,” he said. Ann Rundle, vice president of electrification and autonomy for ACT Research, isn’t convinced that diesel engines can be viewed as a long-term solution. “There is more renewable diesel sourcing coming into play but the question is, where are all these sources for ‘renewable’ diesel?” she asked. Rundle pointed to the 2027 round of EPA mandated emissions standards that will add additional technology, and cost, to commercial vehicles “It’s in the neighborhood of $25,000 to $30,000, especially on a Class 8 truck, to add after treatment,” she explained. “And, by the way, it will still happen if you’re burning biodiesel.” Rundle thinks ICEs may still be part of the solution — but not diesel. “If you look at renewable natural gas, you’ve even got a better story, because with renewable natural gas you’re eliminating emissions of methane and it doesn’t have to have the same extensive after treatment that biodiesel or diesel or even a hydrogen internal combustion engine would require,” she said. “So, you start to eliminate those costs.” Improved emissions from ICEs, however, may only be a temporary solution. “You’ve got technology for batteries still improving, and energy density is getting better,” she said. “Battery prices are dropping.” There may come a point when battery power is cleaner, cheaper and more reliable than ICEs, but it isn’t here yet. OEMs, however, aren’t betting on diesel for the future. “OEMs have basically said, ‘This is the last diesel engine we’re developing,’” Rundle said. “Traton has the universal, I think, 13-liter, and said that they are not going to do another ground up engine development. Daimler came out last year and said, ‘We’re not doing this either.’” Regardless of equipment age, improving a vehicle’s fuel efficiency still reduces emissions of all types while lowering fuels costs. There are also products on the market that can be used to reduce the aerodynamic drag forces against a tractor-trailer. Jeff Hunter, executive vice president of sales and marketing for FlowBelow, explained how these products can help a fleet’s bottom line. “Paramount would be the improved fuel economy. We do a really good job of controlling costs, so the ROI is pretty rapid,” he said, adding that FlowBelow products are standard on OEM tractor builds, and the company is looking to do the same for trailers. While there are many alternatives in the works for achieving zero emissions in the trucking industry, the final solution remains to be seen. This article originally appeared in the March/April 2024 edition of Truckload Authority, the official publication of the Truckload Carriers Association.

Be prepared: Is your fleet ready for International Roadcheck?

By Cliff Abbott -

Even though the Commercial Vehicle Safety Alliance’s (CVSA) International Roadcheck inspection and enforcement initiative is still a couple of months away, it’s not too early to make sure your fleet is prepared to pass. The areas being highlighted for this year’s event are Driver Substance Abuse and Alcohol Possession and Vehicle Tractor Protection and Anti-Bleed Back Systems. During the CVSA’s 2023 Roadcheck, 59,429 commercial motor vehicles (CMVs) were inspected in the U.S., Canada, and Mexico. Vehicles included trucks of all sizes as well as motorcoaches. A total of 116,669 driver or vehicle violations were identified during the 72-hour event. That’s an average of nearly two violations for each vehicle inspected. Inspectors discovered 17,479 out-of-service (OOS) violations in inspected vehicles, removing 11,270 from service until violations were corrected. Nineteen percent of the CMVs inspected had at least one OOS violation; many had multiple violations. Another 5,280 driver OOS violations were discovered, and 3,256 drivers (5.5%) were placed OOS. Hours-of-service violations accounted for 41.1% of driver OOS violations in the 2023 event. Now could be a good time for a refresher course to prevent drivers in your fleet being placed OOS this year. During this year’s Roadcheck, scheduled for May 14-16, drivers will be observed for signs of alcohol or controlled substance use and/or impairment, according to the CVSA. Vehicles will also be examined for evidence of alcohol or controlled substance possession. Additionally, for inspections conducted in the U.S., a query will be made of the driver’s record in the Federal Motor Carrier Safety Administration’s Drug and Alcohol Clearinghouse. Carriers will want to make sure their driver records are accurate and up-to-date, and that current alcohol and controlled substance testing adheres to regulatory requirements. Since CDLs and medical certifications will also be checked, completion of the annual CDL certification process prior to the Roadcheck event might help identify issues that might be violations. On the vehicle side, drivers will be asked to assist in the brake inspection process. One task they may be asked to perform is to remove the gladhands with the system charged to simulate an air pressure failure. Air must stop leaking from the supply line with at least 20 psi remaining. The driver will also assist in the cab by releasing the tractor and trailer protection valves and by applying service brakes as directed by the inspector. The inspector will be looking and listening for air leaks in tractor and trailer, both with brakes released and applied. Although not specified as a focus area, Level I inspections also include testing the air loss rate by requesting the driver hold down the brake pedal and measuring psi over time and testing of low-pressure warnings by pumping the brakes, bringing down air pressure until audio and visual warning devices activate. Brake adjustment is also checked. Driver communications in the two weeks prior to the Roadcheck might include a refresher on how to fully test brakes, or vehicles might be brought in for inspection by a maintenance technician. Since gladhand seals are a focus area, drivers might carry extra seals in for a quick repair if a leak is found prior to or during the inspection, especially if they frequently pick up dropped trailers. Brake systems were responsible for more than 25% of OOS vehicle violations during the 2023 event, with defective service brakes adding another 14%. Tires accounted for another 19.3% of vehicle OOS violations. An important note is that one incident of brakes that are out of adjustment can count for two violations, both of which can impact CSA scores. In addition to a brake being out of adjustment, a violation of an airbrake adjustment system that fails to compensate for wear can be assessed. During the 2023 Roadcheck, 60.6% of the inspections performed (36,021 of 59,429) were Level I, checking the driver’s operating credentials as well as the condition of the vehicle. Another 21.4% (12,741 of 59,429) were Level II inspections that included a walk-around vehicle inspection. Level III inspections, where driver credentials, HOS and DACH records are checked, comprised 15.7% of inspections performed. About 2.2% were vehicle-only Level V inspections. A goal for those who were inspected is receiving the CVSA decals indicating a passed inspection. Vehicles bearing such decals are generally overlooked for further inspections for a period of three months, unless a violation is detected or a special inspection is mandated. Last year, only 1,748 decals were awarded for tractors and another 1,133 for trailers. More information about Roadcheck 2024, including the North American Standard Roadside Inspection Vehicle Cheat Sheet, is available here. Also available is the North American Standard Inspection Program procedures that explains what is checked at each level of inspection, OOS requirements and more. Even though Roadcheck is an international program, each jurisdiction allocates its inspection resources to fit its own agenda. In some states, selection of vehicles might be completely random while other states might choose vehicles based on observation or a particular condition, such as Hazmat placards. Some jurisdictions might concentrate on specific geographic regions or a particular industry. Carriers that keep equipment clean and well maintained and that educate drivers on what to expect can increase their chances of coming through Roadcheck 2024 with fewer violations — and more CVSA decals. This article originally appeared in the March/April 2024 edition of Truckload Authority, the official publication of the Truckload Carriers Association.

Living in interesting times: Changing regulations create unique challenges for equipment manufacturers

By Cliff Abbott -

COLUMBUS, Ind. — One of the forums during ACT Research’s Market Vitals conference last month featured some familiar names. The one-hour discussion, hosted by industry analyst and forecaster ACT Research, featured Dana, Bendix and Eaton. For many years, commercial vehicles have been put together using products manufactured by one or more of these companies. Changes in technology have led to a few changes in focus at each of these firms, which also serve the automotive and off-road vehicle segments. While drivers tend to identify the trucks they drive by the manufacturer’s brand name, most tractors are built using a variety of components manufactured by others. A lot of drivers know who manufactured the engine, and some can tell you the transmission brand, but not everyone can say who supplied their tractor’s drivetrain components, brake systems or other parts. Each component plays an important role in the overall function of the vehicle. Steve Slesinski, director of global product planning at Dana Inc., kicked off the segment with a reminder that Dana invented the modern universal joint. (Note: Although both the concept and the name were in use as early as the 17th century, the patented Spicer joint was manufactured beginning in 1904. The Spicer Manufacturing company was renamed Dana Corp. in 1946.) The company’s original Plainfield, New Jersey, factory has grown into a $10.2 billion corporation, with manufacturing facilities in 31 countries on six continents. Dana has also manufactured driveshafts, axles, transmissions and other components, 20% of which are used in commercial vehicle systems. Today, Dana manufactures electric motors, inverters and chargers, as well as cooling systems for batteries and electronics and system controls, among its thousands of current products. Slesinski discussed an ACT forecast that projects 46% of CMVs will be zero-emissions vehicles (ZEVs) by 2035 — and 53% by 2040. Dana’s electric propulsion systems can be found in more than 51,000 ZEVs currently in use, saving more than 6.9 million metric tons of CO2, he noted. Scott Adams, senior vice president of global products and interim chief technology officer for Eaton, shared details about the range of products his company offers. Traditionally known for vehicle components such as transmissions, engine valve parts, differentials and gears, Eaton has expanded into electric inverters, gearing, and transmissions and power distribution products. Like Dana, Eaton serves manufacturers of light-duty, heavy-duty and off-highway vehicles. Keeping up with the ever-changing government requirements, in addition to customer demand, is a challenge, according to Adams. Calls for reductions in both NOx and CO2 have changed from regulations enacted just two years ago, requiring continuous research and product changes for manufacturers to keep up. Richard Beyer, vice president of sales and vehicle systems at Bendix, touched on the levels of driving automation published by the Society of Automotive Engineers (SAE). Currently, autonomous vehicles are at SAE Level 3, meaning they CAN drive themselves but must have a human being nearby who can take control if any of the automated systems fail. The challenge to getting to Level 4 — where the vehicle performs all functions in certain conditions but can still be overridden by a human operator — is that vehicles must have redundant systems that can take over when another system fails, but still can’t operate during certain conditions, he explained. Level 5 vehicles can operate independently under all conditions. An example of a current fail-safe, Beyer noted, is sensors that activate a warning light or buzzer, alerting the driver that a problem exists. The driver then decides what action to take, including shutting down the vehicle. In cases where continued operation could cause damage to the vehicle, such as overheating due to a coolant leak, the vehicle may even shut itself down. What it DOESN’T do is guide the truck to the shoulder or a safe parking space before the action is taken. Without a human present and ready to make decisions, the results could be catastrophic. According to Beyer, Bendix is working on systems that can interpret warnings and pass operation to secondary systems, which might activate a shutdown or continue to the next stopping point, depending on the problem. When the first autonomous systems appeared, they were adapted to current diesel-powered equipment and had to exert control using current parts and systems. Adaptive cruise control, for example, had to work with the current throttle and fuel systems. Once full autonomy is achieved, however, things will change. Trucks, for example, may no longer be equipped with human-activated controls such as brake or throttle pedals. Steering wheels could become unnecessary. Most systems in development today are designed to work in future electric vehicles, Beyer said. This means parts suppliers won’t have to manufacture dual sets of parts for different applications. That could change in the future as new technology supplants the old but, if it happens it’s a long way away. Slesinski reminded attendees that constantly evolving technology requirements can create unforeseen issues. As an example, he pointed to a company that purchases an electric truck, only to discover the power source for a charger will take 18 months to install. Manufacturers need to consider the full picture when deciding what to produce. In summary, moderator ACT’s vice president of autonomy and electrification Ann Rundle said that predicting which components will be most needed for a constantly changing market is challenging for everyone. For example, she said, suppliers might anticipate tighter NOx emissions standards, only to find regulators pushing CO2 reductions instead. The ability to adjust quickly to such changes is vital, she said. She provided an example of government mandates where suppliers anticipated tighter NOx emissions standards, but regulators pushed reductions in CO2 emissions instead, causing the industry to quickly adjust. As another session during the conference noted, “We live in interesting times.” That’s certainly true for manufacturers of vehicle components that are scrambling stay on top of requirements for vehicles that will be built next year, a decade or further into the future.

Good intentions: Guaranteeing Overtime for Truckers Act would bring unintended consequences

By Cliff Abbott -

The November 9, 2023, introduction of simultaneous bills in the U.S. House and Senate that would repeal the section of the Fair Labor Standards Act of 1938 excluding truck drivers from overtime pay generated considerable noise around the trucking industry. In the ensuing months, however, there hasn’t been much to make noise about. Senate Bill 3273, introduced by Sen. Alex Padilla (D-CA) and called the Guaranteeing Overtime for Truckers (GOT) Act, was referred to the Committee on Health, Education, Labor and Pensions, where it remains at the time of this writing. Its counterpart, House Bill 6359, was referred to the House Committee on Education and the Workforce and has seen no movement since. About the Senate bill, Padilla said, “I think it is pretty simple and straightforward, for the same reason that a lot of other workers and a lot of other industries get paid overtime for their time and their work. Truckers deserve the same, but for reasons I don’t understand, the Fair Labor Standards Act of 1938 exempted many truckers from overtime protections, including overtime compensation.” Those reasons are all too familiar to those familiar with the inner workings of the trucking industry. “The proposed overtime bill would force additional costs on the carrier and hope the carrier finds a way to pass on those costs to the shipper,” said Dave Williams, chairman of the Truckload Carriers Association (TCA) and senior vice president of equipment and government affairs for Knight-Swift Transportation. He calls the legislation, “a case of good intentions with unintended consequences.” Predictably, the International Brotherhood of Teamsters weighed in to support the bill. General President Sean O’Brien said, “Truck drivers have been denied overtime protections for nearly 100 years. The Guaranteeing Overtime for Truckers Act rights this wrong and would end this inexcusable abuse to hundreds of thousands of drivers across the country.” While advocacy groups have made it clear where they stand, what isn’t clear is how such a law — if passed — would be implemented across the trucking industry. TCA Senior Vice President of Safety and Government Affairs David Heller expressed some thoughts on the issue. Like Williams, he is concerned about unintended consequences. “When you start looking at the unintended consequences of such a bill, the reality is going to be in today’s market,” he explained. “Does that put carriers into a situation where maybe they start monitoring those hours and keep them at 40 hours?” A reduction of driver hours would have an adverse impact on the supply chain, Heller said. “Where does the cost come from, especially in today’s freight market?” he asked. George O’Connor, director of communications and government affairs for the Owner-Operator Independent Drivers Association (OOIDA, says it’s a matter of fairness and safety. “In addition to basic fairness and decency, our roads are more dangerous because truckers aren’t guaranteed overtime,” he said. “The system allows shippers and receivers to excessively detain truckers at loading docks.” Changes in drivers’ working hours, driver pay structures, and shipping and receiving procedures would be only the beginning. The dispatch process would change as carrier operations adjust schedules from the Federal Motor Carrier Safety Administration’s Hours-of-Service parameters to fit eight-hour days and 40-hour workweeks. Freight rates would have to be adjusted to reflect overtime pay, and contracts changed to alter transit times. O’Connor thinks safety would be improved if shippers and receivers paid more for detaining drivers. “The delays truckers face when waiting to be loaded or unloaded is proven to increase safety risks,” he explained. “If a truck spends just 15 minutes more than usual at a facility, it increases the accident rate by 6.2%. This results in over 6,500 more crashes per year.” But Heller, along with many in the industry, believes the unintended consequences of the GOT Act would impact safety in other ways. Limiting drivers to a 40-hour workweek would add traffic congestion to already crowded roads, increase the number of drivers looking for scarce parking spaces, and exacerbate the driver shortage, he explained. “More trucks, more drivers, and more parking,” he said. “We already don’t have enough parking spaces.” Unfortunately, the answers to these critical issues are not included in the GOT Act. When asked about the implementation of the legislation he introduced in the Senate, Padilla admitted, “This bill is not prescriptive onto how employers will be paying truckers.” The recent Department of Labor (DOL) announcement of its Final Rule on classification of independent contractors further complicates the matter. In the release announcing the ruling, Acting Secretary of Labor Julie Su said, “Misclassifying employees as independent contractors is a serious issue that deprives workers of basic rights and protections. This rule will help protect workers, especially those facing the greatest risk of exploitation, by making sure they are classified properly and that they receive the wages they’ve earned.” While the trucking industry wrestles with implementation of the new rule, it’s clear that independent contractors now classified as employees would also be subject to a change in overtime law. “The DOL ruling, or even AB5 in and of itself, is a threat to that business model that has been so rewarding, specifically in the truckload segment,” Heller explained. “The majority of our industry started because one person had a dream to own their own business, purchased a truck, and started hauling freight. It’s that American Dream that these misclassification-type rules threatens.” To be clear, those on both sides of the overtime issue want to make sure drivers are compensated fairly. “I think it’s worth noting that nobody wants to see drivers get paid more than the industry itself,” Heller said. “I think you can look at recent history and see that salaries have gone up.” As the GOT bill continues to languish in committee, its future is questionable, especially this year, with the presidential races taking the spotlight. This article originally appeared in the March/April 2024 edition of Truckload Authority, the official publication of the Truckload Carriers Association.

US Class 8 truck sales are slowing, but not enough to impact freight rates

By Cliff Abbott -

LITTLE ROCK, Ark. — As expected, sales of new, Class 8 trucks on the U.S. market declined sharply in January, according to data received from Wards Intelligence. January’s reported 18,594 trucks sold represented a decline of 20.5% from December’s 23,390 — a decline that happens every year. Carriers tend to buy more trucks at the end of each calendar quarter and especially at the end of the year. Of more importance was the year-over-year comparison. January sales fell 6.7% from January 2023 numbers as carriers prepared for more months of near-bottom freight rates. While actual sales fell, orders for new trucks went in the opposite direction. According to industry analyst and forecaster ACT Research, 16,765 new Class 8 trucks were ordered in January, representing a whopping 44% increase over January 2023 order numbers. “Given the state of for-hire truckload rates, we continue to suspect private fleets as the primary driver behind US tractor demand,” explained Kenny Vieth, president and senior analyst at ACT Research. According to information received from FTR Intel, Class 8 orders for North America topped 26,400 units. Orders for the past three months are equal to an annualized rate of 354,000 units. “Fleets continue to be willing to order new equipment despite uncertainty in the freight market. Order levels were above the historical average and above seasonal trends, although we still expect 2024 activity to reflect replacement demand,” remarked Eric Starks, FTR’s chairman of the board. On the used truck side, sales were surprisingly strong. The number of units reported sold in January was up 17% compared with December and up 34% compared with January 2023, according to a news release from ACT Research. At the same time, the average price for a used tractor fell by 21% compared with January a year ago. Average miles dropped 12% and the average age 6%. According to ACT Vice President Steve Tam, “The retail sales gain is uncharacteristic, as sales typically slow in the new year.” He continued, “Robust used truck demand suggests the opportunity for sales to improve moderately in February, as freight is showing nascent signs of growth.” Another indicator of carrier confidence is the number of new trailers ordered each month. In January, indications are that they’re worried about over-investing in equipment for use in a stagnant market. According to ACT, 13,700 new trailers were ordered in January, down 43% from January 2023. In addition, order cancellations climbed to 3.2% as buyers backed out of deals. Jennifer McNealy, director of commercial vehicle market research and publications at ACT, explained, “Healthy economic performance is increasingly favoring freight, but we are roughly balanced between the tail of an 18-month freight recession and the beginning of the next freight cycle.” At the Feb. 21-22 Market Vitals conference hosted by ACT Research in Columbus, Indiana, Kenny Vieth repeated a common phrase: “When truckers are making money, they buy trucks.” Citing information compiled from public carrier quarterly financial statements, Vieth explained that 2023 represented the worst financial performance for those carriers since the great recession of 2008-2009. Vieth predicted that 2024 will see continue rough freight rates for at least the first half of the year, in part due to the excess of trucks available to haul freight. More factors that could impact new Class 8 sales are government mandates for increased mileage and reduced emissions. California standards that go into effect in 2024 could start curtailing sales, and the new Environmental Protection Agency requirements that take effect for the 2027 model year loom large. Frequently, carriers engage in pre-buying, or buying more trucks in the years before new standards go into effect. Doing so reduces the risks of replacing trucks with untested and questionable technology, allowing maintenance and other issues time to get sorted out before investing. Vieth’s message for truckers is that better days are coming with the beginning of a new freight cycle, but it will take longer than most would hope for. It won’t be until 2025 when growth in freight availability overtakes capacity and rates begin to rise significantly. He looks to 2026 for carriers to reach peak revenue levels before the downward cycle begins again. As for sales at the individual OEMs, Freightliner was the only one to report a gain in sales for January. The company reported sales of 8,335 in the month, compared to 7,718 for December, a gain of 8.0%. Sibling Western Star sold 901 trucks, just 8 fewer than December for a decline of 0.9%. The Volvo offerings declined the farthest month over month. Volvo’s 1,423 sold in January was down 1,055 from December sales of 2,478, a decline of 42.6%. Mack reported sales of 856 for January, down 986 or 53.5% from December’s 1,843 sold. The PACCAR brands together declined about a third from December sales. Kenworth dropped from 4,105 in December by 39.4% to January’s 2,486 sold. Peterbilt fell 30.6% from December’s 3,881 to January’s 2,694. International reported sales of 1,884 in January, down 22.9% from December sales of 2,442. Market share is difficult to predict on one month of data, because delivery dates, production rates and other factors can easily influence the numbers. For example, Freightliner took 44.8% of new Class 8 trucks sold on the US market for January. That’s down from 47.2% in January 2023. However, Freightliner’s share of the market for the full year 2023 was 36.3%. International was responsible for 10.1% of the January market but finished 2023 at 14.0%. Factors that could impact truck sales for the remainder of 2024 include the upcoming presidential election, wars in Europe and the Middle East, the Panama Canal and weather occurrences. The Middle East conflict can threaten shipping in the Suez Canal and the Panama Canal, plagued by not enough water to operate locks, has slowed operation considerably. If shipping is impacted, or if conflicts result in fuel price increases, freight could be impacted and, in turn, truck sales. Cost control and good load selection are still hallmarks of a successful 2024 for truckers.  

Analysts report ‘light at the end of the tunnel’ for freight rates 

By Cliff Abbott -

LITTLE ROCK, Ark. — According to most analysts, freight rates are due for a rebound. The problem is that nobody can agree on when it will happen. In the meantime, January happened. It’s typically a slow month after the rush of the holiday season, but this year the spot market received a boost from a spell of unusually cold weather. As retailers were restocking shelves and dealing with returns, cold weather closed some roads, creating a short-term shortage of available trucks and driving spot rates upward. Unfortunately, the effect was only temporary. The freight market is poised to get better, according to industry experts. DAT Freight and Analytics reported that rates rose for dry van, flatbed and refrigerated freight. The average rate for dry van loads reached just shy of $1.72 during the third week of January but by mid-February had declined to $1.60 per mile. Refrigerated rates rose as high as $2.13 on the average but dropped by 12 cents per mile a month later. Flatbed rates also fell, reaching $1.97 in January’s third week and falling to $1.60 in February. Truckstop.com reported that spot rates declined for all equipment types in the final week of January, ending up about where they were just before the Christmas rush last year. Total load activity declined 5.7% in the final week of the month, while total volume was down 10% compared with the same week of 2023. The cold January weather impacted some key economic indicators, according to Truckstop.com and FTR Intel. The Federal Reserve cited weather as a factor in declining industrial production. Housing starts fell 14.8% in January, the lowest level they have been at since August. Compared with December 2023 starts were down 0.7%. Multiple family starts suffered the most. The Cass Freight report summarize the market conditions perfectly with a headline of “Frozen Freight.” Compared to December, the January Cass Freight Index for Shipments declined 3.5%, about normal for the first month of the year. Compared with January 2023 however, the Index declined 7.6%. The Cass Freight Index for Expenditures fell even further, down 24.3% from January 2023 and down 4% from December. Over the full year of 2023, the Cass Shipments index fell 5.5% after rising 0.6% in 2022. Tim Denoyer, vice president and senior analyst at ACT Research, who writes the Cass report, said things could be improving soon. “It’s been over two years since the first year-over-year decline of this freight recession and with destocking playing out and goods consumption rising, the downturn is likely nearing its end,” he said. Denoyer pointed to increases in real disposable incomes and a strong labor market as positive signs indicating freight demand could improve in 2024. Cass reported that overall spending for shipping fell 19% in 2023 from 2022 levels. That’s a huge drop, but it’s important to note that spending rose 38% in 2021 and another 23% in 2022. FTR predicts that freight spending will decline another 16% in the first half of 2024, if normal seasonal patterns hold. As many trucking business owners can attest, operating costs have grown substantially in the past year. The U.S. Department of Labor reported that inflation rose by 7% in 2021 and another 6.5% in 2022. In 2023, while rates were falling inflation grew another 3.4%. Currently, freight rates sit about where they were in March 2020, before the impact of the COVID-19 pandemic began. Unfortunately, operating costs have not returned to 2020 levels and aren’t likely to ever do so. The federal funds rate that stood at 0.25% through 2021 has been raised to its current 5.5%. The cost of credit has risen dramatically for truckers. Financing costs for new or used equipment have risen, and credit card interest has gone up dramatically. More of each payment is going to satisfy interest charges and less to reducing the principal. Cass reports on multiple modes of shipping, including trucking, rail, pipeline, ship and air, using billing statistics compiled from its customer base. Trucking comprises about 75% of the shipping they report. The news at the fuel pump wasn’t good either, as average U.S. diesel prices began rising near the end of January, topping $4 per gallon the first week of February. The monthly Motive Economic Report is compiled using GPS data from in-truck devices and shows how often trucks equipped with Motive equipment visit retail warehouse locations for the top 50 retailers in the U.S. Motive reports that grocery and superstore retailers saw a 14.8% increase in visits in January compared to January 2023. Home improvement retailers experienced a 14% increase for the same period. The Motive report attributes the additional visits to “the return of more steady re-stocking patterns” compared with 2023, when many retailers were “destocking” to bring inventories in line with consumer demand. Motive also commented on the number of carrier registrations and revocations at the Department of Transportation. 3,707 carriers left the market in January, 20% fewer than in December. One reason for the decline might be that business owners who planned to close up shop may have wanted to do so before year end to avoid 2024 tax reporting requirements. New carrier registrations were up 22% in January over December 2023 numbers. Again, this may have been due to the changing of the year with owners waiting for the new year to start before registering. At any rate, the decline in carriers is good news for freight rates. As carriers exit the market, the supply of available trucks decreases. With the demand for trucks expected to grow, rates will begin rising again as trucking enters the positive side of the cycle. It’s looking like 2024 will be a better year for trucking, although conditions aren’t expected to improve quickly or by a large margin. Controlling costs and being selective about loads is still very much the tactic for survival.

Sleep apnea, COPD are treatable safety hazards for truckers

By Cliff Abbott -

LITTLE ROCK, Ark. — The typical truck driver is getting older. Unfortunately, a majority of drivers smoke, and it’s common for them to be overweight, too. All of those things can contribute to health issues, such as high blood pressure, heart failure, stroke and, increasingly common, pulmonary issues. These include obstructive sleep apnea and chronic obstructive pulmonary disease (COPD). Sleep apnea and COPD are names for different conditions, although they often occur together. Sleep apnea is a condition where you stop breathing while you’re sleeping. The stops are temporary, and you’ll eventually start breathing again. However, these episodes often occur with a sudden jerking or body movement that keeps you from falling into a state of restful, deep sleep. COPD refers to a whole group of conditions that can range from emphysema to bronchitis. These conditions can make breathing difficult even when you’re awake. Both conditions can prevent you from being rested and alert during your driving and working periods. In 2008, the Federal Motor Carrier Safety Administration published the Large Truck Crash Causation Study indicating that fatigue was a factor in 13% of crashes involving large trucks. The crashes resulted in at least one fatality over the test period. The evidence for this conclusion often came from sources such as log books that couldn’t prove adequate rest. However, even adequate rest periods may not provide enough rest when sleep apnea or COPD are factors. Like other health issues, sleep apnea and COPD can develop gradually, making it more difficult to notice that something is wrong and to seek treatment. Since many drivers are away from home for days or weeks at a time, scheduling doctor visits for evaluation or treatment can be difficult. Time away from the road means loss of income for many, and who wants to spend their home time at medical facilities? Unfortunately, putting off diagnosis and treatment comes with increased risk of an event you might not recover from. Some people, for example, have multiple heart attacks, while others only get one. A fact of pulmonary issues is that your body can’t rest and rejuvenate itself without enough oxygen. Sleep apnea and COPD both deprive the lungs of oxygen, causing levels to fall in the bloodstream so that muscles, nerves and brain cells can’t be nourished properly. The result is that neither brain nor body function properly during waking hours. It’s more than a health issue. When your reaction and response times are slowed due to fatigue, the safety of others is at risk, too. You may have carefully planned your rest period and gotten plenty of sleep, but if you weren’t breathing properly, you most likely did not get enough rest. It’s important that you recognize the warning signs of sleep apnea and COPD so that you can get tested and, if necessary, treated before disaster happens. But it’s easy to put off for one more week on the road or whatever reason seems good. After all, nothing happened today. Diagnosis of sleep apnea and COPD often requires some testing. Common testing includes overnight oximetry, a test that measures blood oxygen levels while you sleep, arterial blood gas testing and sleep apnea testing, the “gold standard” used to detect apnea. Sleep apnea testing (polysomnography) usually occurs in a medical facility and measures breathing patterns, blood oxygen, body positions and stages of sleep, including periods of rapid-eye movement sleep, the deep restful period you need to be fully alert the next day. A home version of this test is sometimes used, depending on doctor requirements and patient condition. When sleep apnea or COPD is diagnosed, it can be treated in different ways. For COPD, bronchodilator inhalers are often prescribed along with other medications. For sleep apnea and often for COPD, machines that maintain positive airway pressure are often prescribed. Continuous Positive Airway Pressure or Bilevel Positive Airway Pressure machines are commonly prescribed and are effective at reducing episodes of waking or gasping for breath during sleep. In more severe cases of COPD, oxygen therapy may be prescribed. In cases where sleep apnea and COPD overlap, your doctor will decide if supplemental oxygen is necessary. In many cases, sleep apnea and COPD can’t be cured, but treatments can make a big difference in how much energy you’ll have during waking hours. More rest can result in greater alertness and faster response times while driving, increasing safety for everyone. If you fit in any of the categories commonly associated with sleep apnea and COPD (age, overweight, smoker), look for signs that you may need treatment. One of the first is complaints of frequent snoring from a spouse or someone else. If you have difficulty staying asleep or if you’re frequently sleepy during the daytime, it’s reasonable to suspect sleep apnea or COPD. Increased coughing is another symptom you may notice. There are actions that you can take to alleviate the symptoms of sleep apnea even before you see your doctor. If you smoke, stop. Your heart and lungs will thank you. You’ll sleep better and have more energy. If you can lose weight it will also help. Eating sensibly on the road can be difficult and making time to exercise nearly impossible, but both can help you get to a more reasonable weight. It can be done if you’re serious about your health. Of course, sleeping well doesn’t help if you don’t schedule enough time for rest. If the work you’re doing prevents you from getting enough sleep, a change is in order. It may mean getting a different route or assignment from your company, or even changing companies. It’s like going downhill, if you do nothing, you’ll continue your descent. To change direction will take effort on you part. If you’re successful, you’ll improve your chances of living longer and you’ll be a safer driver, too.  

Managing tax liability helps avoid unpleasant surprises when filing

By Cliff Abbott -

Most folks know that the amount of income tax you owe for a given year depends on how much you earned. What a lot of folks don’t know is that there’s another tax that’s dependent on your income — the Self-Employed-Contributions Act (SECA) — and for most owner-operators, there is only one bracket. As an owner-operator, you’re most likely to be in the 15.3% bracket. Unfortunately, this tax catches many trucking business owners by surprise when they file. “One key piece of advice for new truck business owners is to stay proactive about their taxes,” said Vanessa Gant, founder of proVision Accounting Solutions. “This means not only keeping meticulous records of expenses, mileage and income but also understanding how different business decisions can impact their tax situation.” Gant has worked with hundreds of small trucking businesses, helping them preserve the information necessary to comply with the maze of tax requirements while keeping tax liability as low as possible. To understand SECA, it’s necessary to go back to 1935, when Congress passed the Federal Insurance Contributions Act (FICA) to collect funds to support the Social Security and Medicare programs. Under the terms of the act, employers paid half the tax amount and employees the other half. Those who worked for themselves were overlooked. In 1954, Congress passed SECA. Under that law, if you’re self-employed you’ll pay both the employee and employer shares of the taxes. For Social Security, that’s a total of 12.4% of your net income. For Medicare, it’s another 2.9%. It’s important to understand that if you’re an employee and you decide to buy a truck and go into business, your Social Security and Medicare taxes are going to double. Keep in mind that the deductions you take for your Federal Income Tax do not apply to the Self-Employment tax. You (or your accountant) will complete an IRS 1040 Schedule C to determine how much profit your business made; then Schedule SE is used to calculate the tax you owe. That amount is added to your form 1040 and calculated into your payment or refund. When it comes to deductions, it’s common to hear someone say about an expense, “I just write it off on my taxes.” Unfortunately, too many business owners assume that “writing it off” means it’s FREE. That’s not how it works. If the expenditure is for your business, you’ll save the 15.3% self-employment tax and the amount of income tax you would have paid on that amount. The remainder is an expense you won’t get back. In other words, calculating tax savings into your purchase decisions can make the price of whatever you’re buying much more attractive — but it’s still an expense. Now, let’s talk about profit. Profit, in its simplest form, is whatever’s left over after your business expenses. Successful business owners know that profit must be managed. Everyone wants to make more money, but no one wants to pay the higher taxes associated with higher profits. The timing of purchases can make all the difference when you sit down to do taxes. For example, 2023 was a difficult year for most trucking businesses. Freight rates were (and still are) hovering near the bottom of the scale, while the cost of equipment, parts, tolls, interest on loans and more has risen. It’s quite possible your business may show only a small profit — or even a loss — for the year. On the other hand, most analysts are predicting freight rates will start rising by the second half of 2024 and continue rising into 2025. It’s early yet, but if your business lost money in 2023, conditions likely won’t be a lot better in 2024. Returning to the topic of tax write-offs: If you strongly suspect you’re not going to make a profit for this year, or only make a small one, ask yourself this: Does it make sense to make a large purchase this year, or should I hold it over for 2025? On the other hand, if you’re confident 2024 will be a good year for you, spending cash on your business before the year is out can help reduce your tax liability. Be sure to consider depreciation, too. For example, the value of your truck declines each year after it was made until it reaches a minimum. If you were to sell the truck for its current value, you’d lose money. Since your business has lost value because your truck is worth less, the IRS allows you to claim that lost value as depreciation. The IRS has depreciation tables to help you calculate how much to deduct and how many years you’ll be allowed to take the deduction. When you’re self-employed, the IRS expects you to make estimated quarterly payments on the tax you might owe at the end of the year. You won’t need to file a return with each payment. Since the payments are estimates, you’ll resolve all the numbers when you file your annual return. Remember, the IRS can impose penalties if you don’t make quarterly payments or if you underestimate the amounts. Finally, a good accountant or tax advisor is invaluable to your business. Even if you’re good at calculating the numbers, accounting is only a sideline to your main business of hauling freight. For your accountant, it’s a full-time job they’ve been specially trained for. A professional will help you identify all the deductions you’re entitled to and help determine the best way to claim them. If there’s an issue with the IRS, your adviser knows your history and can help you resolve it. You can help your accountant by keeping good records and communicating promptly. “It’s vital for new owners to familiarize themselves with the specific tax benefits and obligations for the trucking industry, such as deductions for overnight travel expenses and the heavy vehicle use tax, Gant said. “Understanding these nuances can significantly affect the bottom line.” Of course, another benefit of using accounting professionals is that their services are tax deductible.