Cliff Abbott

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

Posts by Cliff Abbott

Truck sales facing myriad of uncertainties

By Cliff Abbott - March 7, 2025

U.S. sales of new, Class 8 trucks fell sharply in January, according to data received from Wards Intelligence. Manufacturers reported sales of 16,175 trucks, down 27.7% from December sales and down 13.0% from January 2024. It’s not uncommon for January sales to lag behind December, since December is typically a strong month. The month ends the fiscal year and calendar fourth quarter for most companies, and truck purchases can help offset taxes. The year-over-year comparison comparing January results with the same month of the prior year, the sales decline indicates that the market has slowed. The entire year of 2024 saw U.S. Class 8 sales down 9.7% from 2023. January results show that the decline continues. Overcapacity remains an issue for the trucking industry. While the supply of available trucks exceeds available freight, rates will remain low. There are, however, some positive signs One such sign is the number of vocational trucks included in Class 8 sales. The Infrastructure Investment and Jobs Act, commonly known as the “Bipartisan Infrastructure Bill,” earmarks tons of government cash for building roads and bridges, improving water systems and more. Companies who expect to be involved in the building are purchasing dump, concrete and other vocational trucks in preparation. Trucks that are sold for vocational needs won’t be hauling system freight. According to ACT Research, President and Senior Analyst Kenny Vieth, “Vocational build per day rose to a level not seen since 2006, at 513 units per day in November, and blew past that level to 537 units per day in December.” Inventory of new Class 8 trucks is another issue that could impact the rate new ones are manufactured. Dealer lots are awash in new equipment and body manufacturing businesses are limited in how many dump, concrete and trash bodies they can produce. There may be a slowdown on the regulatory side as well. Environmental Protection Agency’s Clean Truck regulations, scheduled to take effect with model year 2027, are expected to be challenged by the Trump administration and may be scrapped entirely. The same for 2028 Greenhouse Gas regulations (GH3) that push buyers to Zero Emissions Vehicles. The president’s Department of Government Efficiency (DOGE) has announced large staff reductions at the agency, predicting a 65% reduction in spending. It remains to be seen how deep cuts in budget and staff will ultimately be, and whether regulations currently on the books will be downsized or gutted completely. While actual sales of Class 8 trucks slowed, so too did incoming orders for more. North American preliminary orders for new trucks totaled 24,000, according to FTR Transportation Intelligence. Senior Analyst for Commercial Vehicles Dan Moyer pointed out that tariffs imposed by the Trump administration could have a significant impact on pricing. “ With roughly 40% of U.S. Class 8 trucks built in Mexico and around 65% of Canada’s Class 8 trucks built in the U.S., tariffs and likely counter-tariffs threaten to disrupt supply chains and drive up vehicle prices,” he said in a recent press release. Moyer pointed out that manufacturers and suppliers may shift some production to avoid crossing borders and incurring tariffs, but such moves “are complex and will take some time to implement.” In the meantime, negotiations with both nations continue. Tariffs and counter-tariffs with China threaten parts supply for both manufacturing of new and maintenance of existing trucks. If the tariffs are fully implemented and truck costs rise appreciably, orders for new equipment could drop quickly. However, while fewer trucks hauling freight could push rates upward, tariffs could also reduce the amount of available loads, especially imports, which would have the opposite effect on rates. Retail sales of used Class 8 trucks saw a strong January, increasing 16% over December sales, according to ACT Research. Typically, January used truck sales decline about 11% from December. Trucks sold by auction, however, declined by 59%. Auction sales often indicate dealers stocking up on inventory in preparation for the coming market, so a decline can indicate a lack of confidence in the coming market. Compared with January of 2024, used truck sales rose a whopping 56%, with both the average age and average odometer reading declining. The cost of credit remains a sticking point, as does economic uncertainty. Freight carriers need trailers to haul product, and January was a strong month for trailer orders, too. ACT reported preliminary trailer orders of 21,300, up more than 51% from January 2024 order numbers. The good times aren’t expected to last, however. Jennifer McNealy, director of commercial vehicle market research and publications at ACT Research, explained, “Notwithstanding the improvement thus far in the 2025 order cycle, ACT’s expectation for weak trailer demand relative to recent performance remain, as continuing weak for-hire truck market fundamentals, low used equipment valuations, relatively full dealer inventories, and high interest rates impede stronger activity in the near term.” If the scheduled EPA regulations remain in effect, carriers may choose to invest in more tractors, pre-buying to avoid emissions and fuel efficiency mandates. Trailers generally require less maintenance and can be kept in service far longer. But a bill that would drastically reduce the requirements of EPA actions for both passenger vehicles and trucks of all sizes, the Transportation Freedom Act, was recently introduced in the U.S. Senate with support from trucking industry groups. Like tractors, trailer sales could be impacted by tariffs, especially those on steel and aluminum products. FTR’s Dan Moyer said, “Tariffs will affect not only fully assembled trailers imported into the U.S. but also domestically produced trailers, which depend on imported materials and components. Expect market volatility as OEMs try to adapt to uncertainty over scope and timing of tariff impacts.” Analysts are predicting slow growth in freight rates and gradually improving trucking conditions for 2025, with many looking for better days in the second quarter or even the second half of the year. Uncertainties over tariffs, upcoming EPA mandates, reduced government spending and more will undoubtedly add difficulty to equipment investment decisions, especially if interest rates remain stubbornly high. The road ahead could be bumpy.

‘Excruciatingly slow’ growth predicted for freight rates and volumes

By Cliff Abbott - February 28, 2025

If the predicted freight increase in 2025 is coming, its progress seems excruciatingly slow. In January, the Cass Freight Index for Shipments fell by 5.3% from December 2024 levels and were 8.2% lower than January 2024. Shipment numbers reached their lowest level since July 2020, according to the Cass report. The Cass Index for Shipments fell 5.5% in 2023 and another 4.1% in 2024, so beginning the year with another decline isn’t good news. In fact, outside of the low levels during the COVID pandemic, the last time the shipment Index fell this low was during the 2008-09 Great Recession. Expenditures for spending dropped as well, according to the Cass report, but mostly as a function of lower shipment numbers. Cass reported that freight rates actually rose about 0.5% in January, the fourth consecutive month in which they have done so. However, the increased rates weren’t enough to offset the decline in shipments, resulting in lower overall shipping expenditures. How do we get the numbers? The Cass information is compiled from processed invoices from Cass customers and includes freight moved by truck, rail, air, pipeline and other modes, with the majority moved by truck. “While feeling like a bit of a broken record, we still think private fleet capacity additions are likely the main reason for-hire freight volumes continue to decline,” said Tim Denoyer, vice president and senior analyst at ACT Research and author of the Cass report. Manufacturers and distributors who depend on for-hire trucking took a beating in 2020 through 2022 as global pandemic shutdowns pushed freight rates to record highs. In response, some increased the size of their private fleets or even started new ones in order to keep as much of their shipping as possible in-house. Denoyer stated that the trend away from private fleets will return. “As cost economics reassert their influence, the long-term trend toward outsourcing will eventually return, but the extended 2023 and 2024 downcycle was characterized by an extraordinary post-pandemic insourcing,” he said. In other words, as the cost of hauling their own freight increases, more companies will be looking for other carriers to pick up some — or all — of the volume. Unloading freight to other carriers? That’s already happened with one major retailer. In late January, Walmart Canada announced the sale of their fleet business to Canada Cartage, who will assume deliveries to more than 400 stores located in Canada. The American Trucking Associations (ATA) reported that shipment volumes reported by its membership were unchanged in January from December levels. The ATA report, compiled from member surveys, primarily deals with contract freight. “After declines in November and December totaling 1.7%, tonnage was unchanged in January” said Bob Costello, ATA’s chief economist. “This outcome is impressive considering the massive winter storm that brought cold temperatures and significant snowfalls to large parts of the country, including those that rarely see such storms. Furthermore, the terrible wildfires in California likely also caused freight disruptions.” In addition, he noted, “softness in manufacturing and retail sales continue to be a drag on truck freight volumes as well, so the fact tonnage was flat is a positive sign.” FTR Transportation Intelligence reported that retail sales took “a steep dive” in January in the largest monthly decline since March 2023. “The seasonally adjusted 0.9% drop reflects broader economic shifts, with motor vehicle and parts sales being the primary drag,” Avery Vise, FTR’s vice president of trucking, in a recent podcast. “This decline has significant implications not just for retail, but also for freight demand and supply chain dynamics.” What else is manipulating the market? Like Costello, Vise noted that inclement January weather was disruptive to shipping, but he also cited a “pull-forward” effect on vehicle purchases as consumers bought new vehicles out of concern for threatened coming tariffs. Another factor potentially impacting freight movements is business inventories. Vise says that wholesale inventory ratios have fallen to their lowest level since June 2022, “indicating a tightening of supply chains amid shifting demand patterns.” Potential tariffs on goods manufactured in Canada and Mexico could roil the markets in coming months, since all of the major automotive builders have assembly facilities in both countries. While some manufacturing could be transferred to U.S. locations, the impact of tariffs on the automotive industry could be huge. Additionally, tariffs on lumber and other forest products produced in Canada could significantly impact the home improvement market. Spot freight rates got a small bump in January, according to DAT Freight and Analytics. National average dry van spot rates rose 0.5% over December to remain about even with January 2024 rates. Flatbed spot rates didn’t rise from December levels but were 1.2% higher than they were in January 2024. Refrigerated rates rose about six cents per mile on average and were 2.1% higher than a year ago. January’s winter storms and California wildfires probably impacted spot rates as truckers were shut down or delayed, reducing available capacity. February results aren’t yet complete, but both dry van and refrigerated spot rates appear to be falling from January levels. Tariffs are likely to be the biggest factor in freight volumes and pricing for the next few months. Some suppliers are already raising prices in anticipation of tariffs being implemented. China has already imposed retaliatory tariffs on U.S. coal, farm equipment and liquified natural gas exports, and has already restricted exports of rare earth minerals needed by U.S. manufacturing. China is responsible for 30% of ocean imports to the U.S. and 40% of rare earth imports. As deadlines loom for tariffs threatened by the Trump administration, actions by other countries could result in reduction or elimination of tariffs. Both Canada and Mexico have stepped up efforts to curtail fentanyl shipments into the U.S., for example, and Columbia changed its policy on repatriation of citizens who immigrated illegally to the U.S. As negotiations continue, the true impact of tariffs on freight volumes and rates won’t be known for months. Another potential issue is capacity. As EPA mandates for 2027 get closer, more carriers will seek to pre-buy equipment, increasing the number of trucks available to haul freight. In short, while there should be some rate relief in 2025, it’ll arrive too slowly to get excited about.

2025 freight outlook: Slow economic growth expected, but hazards remain

By Cliff Abbott - March 6, 2025

The U.S. economy remained strong into the first quarter of 2025, but most economists are predicting growth to slow for the remainder of the year and through 2026. However, opinions vary regarding the new administration in Washington: It may enact policies that could either dampen growth in the Real Gross Domestic Product (RGDP) or spur further growth, depending on the information source. Even U.S. government agencies disagree on predictions, with the Congressional Budget Office forecasting RGDP growth of 1.9% by the end of 2025 and the Federal Reserve Board predicting 2.1%. In contrast, Deloitte calls for 2.4%, Goldman Sachs forecasts 2.5% and the International Monetary Fund anticipates 2.7%. All of these sources predict further slowing in 2026. Inflation is still a key concern for the Federal Reserve, which made its third cut of 2024 to the federal funds rate in December. The interest rate range is now 4.25% to 4.5%. The Federal Open Market Committee (FOMC), which sets the rates, is expected to consider another adjustment in March. What about trucking? Whether anticipated economic growth will translate to more freight — or higher rates — for the trucking industry is even harder to predict. Analysts at ACT Research predict modest growth in freight demand for 2025, at a pace of 1.8% over 2024 levels. In a January 9 webinar, analysts at FTR Transportation Intelligence forecast similar growth. Jason Miller, professor of Supply Chain Management at Michigan State University’s Eli Broad College of Business, is concerned about manufacturing startups. In a recent LinkedIn posting, Miller noted that the number of new manufacturing plants opening in the U.S. has declined; in 1988 there were more than 30,000, and in 2022 that number dropped to about 15,000. “There is little reason to think we will see a huge increase in manufacturing plants over the next few years,” Miller wrote. “Despite all the talk of reshoring over the last decade, we haven’t seen new plant openings get back to pre-GFC (Global Financial Crisis of 2007-2008) levels, let alone 1990s levels.” An increased demand for shipping would serve to push freight rates higher, but it doesn’t appear that demand will come from increased manufacturing. The other side of the supply-demand equation is capacity — and that side is problematic too. U.S. sales of new Class 8 trucks remained strong in December 2024, despite declining from the previous December. Throughout North America, more than 22,000 trucks were bought, and another 36,800 were ordered, according to ACT Research. The number of carriers has been shrinking. The Federal Motor Carrier Safety Administration has reported more authority revocations than new carrier registrations for most of the past two years. That number is nearing equilibrium. Both contract and spot rates are beginning to see upward movement, but weak manufacturing numbers combined with strong truck sales create a considerable headwind. Carriers should see some rate relief this year, but it will be a slow process. Impact of a new administration If there’s good news for the coming year, it’s in the Energy Information Administration’s (EIA’s) Short-Term Energy Outlook. The agency expects global oil production to grow faster than demand, increasing stocks. The agency forecasts U.S. crude oil production to grow to a new record of 13.5 million barrels per day, with prices for both diesel fuel and gasoline dropping. These EIA predictions were compiled prior to President Donald Trump’s inauguration on January 20. Part of Trump’s campaign platform was to increase production and achieve energy independence, and he signed executive orders that open up drilling and fracking within hours of his inauguration. Those actions won’t increase production immediately, but the news can impact market prices. Another Trump promise, to impose tariffs on U.S. trading partners, has the potential to severely disrupt the trucking industry if enacted. Threatened tariffs increases on Canada and Mexico could curtail trade, especially if those countries enact retaliatory measures. The supply of trucks, as well as their pricing, could also be impacted. All of the major Class 8 manufacturers have manufacturing facilities in Mexico, with the Volvo plant in Monterrey not yet completed. Since the OEMs sell in Canada, Mexico and South America, production for most might be shifted to ensure that trucks sold in the U.S. are manufactured here — but changes to production could add cost and delay delivery, even if tariffs are avoided. The tariffs could also impact products hauled by trucking. According to a Brookings article by Douglas A. Rediker published in December, “The consequences of Trump’s tariff threats,” the auto industry would be severely impacted. Tariffs would violate the United States-Mexico-Canada Agreement (USMCA), Rediker wrote, and greatly increase vehicle prices. “Each vehicle produced under the USMCA framework crosses the border an average of eight times during production, meaning the tariffs would be compounded at each stage,” Rediker wrote. Truck parts manufactured in China would also become more expensive, pushing up the price of new trucks and aftermarket parts for repairs. Another possible consequence of tariffs is a trade war, which would deny products to American consumers as well as decrease import freight volumes. “If we have tit-for-tat retaliation, whether it’s 25% tariff (or) 60% and we go to where we were in the 1930s, we’re going to see double-digit global GDP losses. That’s catastrophic. Everyone will pay,” Ngozi Okonjo-Iweala, director general of the World Trade Organization, said during the World Economic Forum annual meeting in Davos, Switzerland. Some of Trump’s threatened tariffs that were to have gone into effect in February were temporarily placed on hold, with both Mexico and Canada taking steps to improve border security and reviewing trade agreements. However, on February 24, Trump announced plans to forge ahead with enacting tariffs against these nations in March. Other Trump actions, such as deporting illegal immigrants, halting incentives for electric vehicles and prohibiting leases for windmill farms are among those that could impact freight markets. Most of the trucking industry was looking forward to an improving freight market in 2025. Unfortunately, with all of the factors in play, the road to recovery could well be bumpy.

Don’t do it: FMCSA Task Force says lease purchases should be banned

By Cliff Abbott - March 7, 2025

It sounds so great. You can own your own truck. You don’t need a good credit rating or even a credit card. All you need to do is run enough miles to cover the cost of the monthly (or weekly) payment and take good care of the truck. Comply with the terms of the lease, and the truck will be yours. After that, who knows? Carriers with fleets in the thousands started with a hard-working entrepreneur and a single truck. Don’t do it. That’s the advice from the Federal Motor Carrier Safety Administration’s (FMCSA’s) Truck Leasing Task Force (TLTF or Task Force). Mandated by the Infrastructure and Jobs Act signed into law in November, 2021, the TLTF reviewed thousands of documents, court documents and hard-luck stories from drivers who participated in lease-purchase agreements with carriers. The TLTF officially ended on January 17, 2025. Their recommendation was as harsh as it was simple: lease-purchase agreements should be banned. If not banned, the recommendation was strict government oversight. What does “lease” mean? Before proceeding, it will be helpful to understand the trucking industry’s confusing use of the word “lease.” The Department of Transportation requires that a motor carrier be granted authority to operate in interstate commerce. To obtain authority, proof must be provided that the carrier can meet financial obligations and other standards. Truck owners who don’t have this authority can enter agreements to become Independent Contractors (ICs), running under a carrier’s authority. This arrangement is called a “lease” because the owner is granting the carrier permission to add the truck to their fleet. The contract that specifies the responsibilities of both parties is a “lease agreement.” Rather than paying a rental fee for the truck, the carrier agrees to pay the Contractor a percentage of the income the truck brings in or a flat per-mile fee. Other obligations, such as the I/C providing a driver for the truck, are included in the lease agreement. Rather than buying a truck, some drivers rent, or lease equipment from third-party suppliers. For this article, that arrangement is treated the same as truck ownership. A “lease-purchase” is another matter. Carriers offer drivers who want to become independent contractors but don’t have the money or credit to purchase a truck an opportunity to lease (rent) one from the carrier. The driver agrees to pay a monthly (or weekly) amount, to be deducted from settlements, until a certain amount has been paid. There’s often a final payment, after which ownership of the truck is transferred to the IC. Until that final payment is made and ownership transfers, however, the would-be owner is simply renting the truck from the carrier. So, in a bewildering twist, the driver leases a truck from the carrier and then enters into a lease agreement to become an IC for that carrier. two agreements are needed, a lease-purchase agreement to define truck ownership and then a lease agreement that determines the working relationship between the truck “owner” and the carrier. What is the harm in a lease-purchase agreement? While many drivers have had long, successful careers as ICs, the track record of those who entered Lease-Purchase Agreements is not a good one. The Task Force collected data that suggests that less than one in every hundred drivers who participate in a Lease-Purchase end up owning the truck. The TLTF conclusion was, “The Task Force agrees unanimously that the costs and harms of lease-purchase programs are so great that these programs should not be permitted.” They added, “Lease-purchase programs are regularly established to enrich motor carriers at the expense of drivers.” Carriers often use lease-purchase as a method of getting a larger return for used equipment than they could realize by trading it in. They can set their own price, rather than accepting a dealer’s offer. Since the agreement is a rental until the contract is completed, the driver builds no equity and can’t sell the truck to get out from under debt. It belongs to the carrier and can be leased to driver after driver, and the carrier determines how many miles or loads the driver gets. The demands of the carrier Maintenance costs on a truck increase as they age, especially after warranties run out. Lease-purchases transfer the responsibility for maintenance to the driver at a point when maintenance costs are expected to rise. Further, since the carrier still retains ownership, they often dictate where repairs must be made or place other requirements, sometimes even performing maintenance in carrier facilities and charging the cost to the driver. Carriers have other demands, too. Some mandate where the driver buys fuel or obtains other services. Drivers can’t negotiate fuel surcharge agreements, accessorial pay such as detention and layover. Extra costs such as trailer washouts, loading or unloading fees and extra stops may be the driver’s responsibility. The driver may be required to purchase insurance through the carrier at greater cost. Carriers may require escrow accounts to cover maintenance, cargo claims, insurance deductibles or other costs. These thousands of dollars are often difficult for the driver to get back. Many drivers don’t fully understand the costs of operating as an I/C. The carrier no longer pays health or retirement benefits. The I/C purchases their own Worker’s Compensation or Occupational Accident insurance and tax liability changes. IC’s are required to pay the 15.3% self-employment tax, on top of federal and state income taxes. For employees, the carrier pays half the Social Security and Medicare taxes owed, but ICs must foot the entire bill themselves. The Task Force highlighted another problem with lease-purchases. In cases where the carrier doesn’t keep their part of the bargain, the driver must use an arbitration process instead of seeking legal recourse. The terms of arbitration often mean appearing for hearings in locations far from the driver’s home, with travel and lodging costs the responsibility of the driver. Another issue is that the arbitration proceedings are private. There is no public record, as there would be in a lawsuit. Anyone considering a lease-purchase offer from any carrier would do well to read the 51-page final report from the Task Force. It’s available at www.fmcsa.dot.gov Then, read the lease purchase agreement carefully, and decide wisely.

CVSA is an important ‘member’ of a trucking company’s safety team

By Cliff Abbott - February 13, 2025

This year, the Commercial Vehicle Safety Alliance (CVSA) will once again be working to make the roads safer for everyone this year. However, because the CVSA members that drivers come in contact with are usually law-enforcement officers, many drivers have misconceptions about the organization, its purpose and its membership. The CVSA website describes the alliance this way: “a nonprofit organization comprised of local, state, provincial, territorial and federal commercial motor vehicle safety officials and industry representatives.” Those “industry representatives” include carriers, manufacturers, educators, suppliers, vendors, schools, insurers, trucking associations and more. More than inspections Although vehicle inspections are only part of what CVSA does, they are involved from beginning to end. Long before an inspector crawls under a truck, the CVSA has defined what should be inspected, how the inspection is done and what criteria are used to determine if a defect exists. That’s why an inspector on the plains of Saskatchewan performs the same inspection as the one at the scale house in Grovetown, Georgia, Ellsworth, Maine or even on the side of the road in Samalayuca, Chihuahua Provence, Mexico. Local and regional laws may specify additional items to be checked, but the CVSA checklist ensures that specified items are checked in the same way. The CVSA conducts workshops and conferences throughout the year that bring together experts from across transportation to review inspection lists and procedures, modifying current processes and creating new ones when the need arises. Training is provided for technicians and inspectors, and an annual North American Inspectors Championship pits the best against their peers. CVSA also develops standards and conducts training for Hazardous Materials hauling, storing and tracking crash investigation information, and development of instructors in the process. The CVSA events that most drivers are interested in, however, are those that focus on truck and driver inspections that are likely to result in being selected for inspection. Many drivers dread events like International Roadcheck, an annual 72-hour inspection blitz across North America in which thousands of vehicles are inspected. During the 2024 event, nearly 49,000 inspections were conducted in which 23% of vehicles and 4.8% of drivers were placed Out of Service (OOS). The odds of being delayed for an inspection or placed OOS for a failure are enough to cause many drivers to simply shut down during that week. Some schedule vacations or time off, while some simply park their trucks until the event is over. So many trucks are removed from the road that freight spot rates are impacted, rising in response to the increased competition for trucks to move shipments. But removing unsafe vehicles and drivers isn’t the only benefit provided by the Roadcheck event. In preparation for being inspected, carriers and drivers pay closer attention to the condition of their vehicles. More annual and pre-trip inspections are performed and repairs made prior to the CVSA event. Everyone becomes more aware of truck safety and the need to be diligent about keeping equipment in top condition. The publicity helps educate the general public about trucking and efforts to make the industry safer. What is in store for 2025 The 2025 International Roadcheck is scheduled for May 13-15. For each year’s event, focus areas are specified, but they have not yet been released for this year’s event. Another annual CVSA event, Operation Airbrake is scheduled for August 24-30, 2025. Additionally, an unannounced, one-day initiative will be conducted on an unspecified date. This event focuses on an area of truck inspections that is frequently cited for violations. During the 2024 event, nearly 17,000 vehicles were inspected with 12.8% of them placed OOS for brake or other violations. Operation Safe Driver is another annual CVSA initiative, one that focuses on drivers of passenger vehicles as well as trucks. The program addresses the high number of traffic crashes that are caused by driver actions, estimated to be about 94% of all crashes. Education of drivers is a primary goal of the event, which helps make drivers of smaller vehicles more aware of techniques for sharing the road with trucks. Public service announcements (PSAs) in the form of short videos are distributed to media outlets to help educate the public and other materials are given to educators of teens and new or inexperienced drivers. During the 2023 event, officers issued 2,634 citations (plus 4,592 warnings) to commercial vehicle drivers and 1,860 tickets (1,164 warnings) to passenger vehicle drivers. Results of the 2024 event have not yet been published. Drivers can help eradicate a critical issue While these CVSA events help focus attention on common inspection and traffic issues, they certainly aren’t the only contact drivers have with CVSA. Any official inspection, whether referred to as a DOT/FMCSA or other inspection, is most likely performed using the CVSA checklist, recorded on a CVSA form and submitted through a CVSA process. One CVSA campaign that drivers may not be aware of is its annual five-day Human Trafficking Awareness Initiative. The Alliance teamed up with TAT (formerly Truckers Against Trafficking) to distribute educational materials to carriers, drivers and other interested parties. The two groups worked together to produce human trafficking videos to be aired on Pluto TV, Paramount+ and other streaming services. While many drivers are aware of prostitution around truck stops and other areas where trucks gather, they may not understand that many of those who participate are coerced into the trade by traffickers. Drivers who suspect human trafficking is occurring are encouraged to call 911 for intervention by local police. The U.S. National Human Trafficking Hotline is available 24/7 at 888-373-7888 for reporting, however, another call would need to be made to alert local authorities. When it comes to inspections and dealing with law enforcement, each driver’s attitude is different. But knowing that CVSA membership lists may include your hometown police, the carrier you drive for, the people that built your truck and an organization or two that you support might help change the “us vs. them” narrative. After all, we’re all on the same team — and that’s a point worth driving home.

The tax man cometh: Don’t be caught unaware on April 15

By Cliff Abbott - February 11, 2025

Federal Income tax payments for 2024 aren’t due until April 15, but it’s not too late to make changes that could reduce your tax liability for what you’ll pay NEXT year. The venerable Benjamin Franklin might have said, “Nothing is certain except death and taxes” — but neither the day you’ll die nor the amount of taxes you’ll pay are set in stone. There are things you can do to help reduce the amount of taxes owed. One big decision is the structure your business will take. For instance, a Sole Proprietorship combines your personal finances with that of your business. You file one return, generally with an extra form on which you list business income or loss. You pay taxes on whatever is left after subtracting business expenses and personal deductions. This is likely the simplest type of business structure, but there are drawbacks. First of all, the taxes you pay on your income include Self-Employment tax. This tax combines the employee and employer contributions of both Social Security and Medicare taxes, totaling 15.3% of your net income in addition to any income tax owed. Another drawback of Sole Proprietorship is personal liability. If your business can’t pay its bills, including fines or court judgements, your personal property such as your home can be taken to satisfy the debt. Partnerships are also liable for Self-Employment tax and personal liability. A Limited Liability Company (LLC) gets you out of personal liability for business debts but is still subject to self-employment tax. C-corporations and S-corporations relieve you of personal liability, but they’re taxed differently. The structure you choose determines how complicated and expensive setting it all up will be, but it also impacts your liability and your tax rate. Vanessa Gant, founder and “money architect” at ProVision Accounting Solutions, recommends utilizing both legal and accounting advisors to guide you to the right decisions for your business. “If you’re working with a quality financial advisor, you should be getting guidance on how to optimize your business structure,” she said during a Feb. 6 video presentation. In the presentation, Gant covered other ideas that could work with trucking businesses to reduce tax liability. One strategy is self-rentals. For example, by keeping a truck in your name and renting it to your trucking business, you can claim the depreciation of the vehicle’s value and maintenance costs from your personal taxes while deducting the rental expense from the business. Rental payments aren’t subject to the Self-Employment tax, so your tax bill goes down. Understand the ins and outs of depreciation. Depreciation is a write-off that allows you to deduct the expense of property over an extended period, but it can be complicated to administer. For example, real estate is typically depreciated over 39 years, while a truck could be depreciated over seven years. There are, however, exceptions, such as improvements made to your property (like a new roof on the garage, or new gravel or concrete for a parking pad). Those can be depreciated on different schedules. A tax advisor can help you determine what works best for your business, but the general idea is to claim depreciation when it benefits you most. For instance, if your business lost money in 2024, claiming depreciation to lower your tax bill won’t help. Claiming as much depreciation as you can in your profitable years is preferable. Don’t forget per diem. In a Dec. 30, 2024, blog post, ATBS reminded truckers that the per diem rate for the transportation industry has increased to $80 per full day ($60 per partial day) as of Oct. 1, 2024. Before this increase, per diem rates were $69 for a full day and $51.75 for a partial day. Because the new rate went into effect partway through the calendar year, drivers claiming the per diem on their 2024 returns will need to use the two different rates in their calculations, remembering that the IRS allows for an 80% deduction of the amount used. For truckers who live in Alabama, Florida, Georgia, North Carolina, South Carolina and parts of Tennessee or Virginia, the filing date for 2024 taxes (as well as 2023, if an extension was filed) has been moved to May 1, 2025. It’s only two weeks after the main filing date, but some may find the change helpful. Know which losses can be claimed. Additionally, uninsured or unreimbursed disaster-related losses can be claimed on income tax returns, while any disaster-relief payments received from FEMA or other government agencies are generally not counted as taxable income. Consult your tax professional to be sure. If you bought a truck or trailer in 2024, you’re allowed to take a larger-than-normal deduction of its value from your taxes: The “bonus depreciation” in 2024 was 60%. Since last year wasn’t a high-profit year for many trucking businesses, taking the bonus depreciation may be unnecessary and better saved for 2025 or later tax years — but each business is different. A tax preparation specialist can help with the details. Double check tax forms. Watch out for the 1099-K. The form is used by platforms such as eBay, Venmo and other vendors if the reported payment(s) exceed $5,000. Unfortunately, services like Venmo are used for much more than business payments, and amounts reported as income to the IRS could actually be payments for other purposes. If you receive an incorrect 1099-K, contact the sender. Start early. Finally, ATBS recommends that you gather tax documents as early as possible. You’ll need all income statements, including any 1099s from the health marketplace, interest income, dividends, taxable pensions, Social Security and others. You’ll also need receipts for your business expenses including registration, taxes, fuel and maintenance, miscellaneous items purchased for the truck, and more. The more data you can supply your tax preparation specialist, the more you can save on taxes.

Impending tariffs, expected cost increases may push prices for new trucks higher

By Cliff Abbott - January 30, 2025

U.S. sales of new Class 8 trucks finished 2024 right about where they’d been all year — lower that 2022 and 2023 totals but still about 3% higher than the average for the past decade. For the month of December 2024, manufacturers reported sales of 22,383 new trucks, according to data received from Wards Intelligence. That number is up 13.9% from November sales but 4.3% lower (and nearly 1,000 trucks lower) than December 2023, when 23,390 trucks were reported sold. Declines (mostly) across the board for 2024 During 2024, only Western Star and tiny Hino sold more Class 8 trucks than in 2023. All other major manufacturers saw declines in sales. As a whole, the industry reported sales of 240,349. That’s down 9.7% from the 2023 total of 266,271. Pre-buys impacted December 2024 numbers Buyers are ordering new trucks for future delivery, too. A report from FTR Transportation Intelligence noted new Class 8 preliminary orders on the North American market at 31,900 for December, up 23% from December 2023 orders. For the full year of 2024, FTR reported truck orders were up 11% over the prior year. “Most OEMs performed above seasonal expectations as net orders maintained relatively high levels for what is typically a softer order month,” said Dan Moyer, FTR’s senior analyst/commercial vehicles. “There also wasn’t any notable difference in vocational segment month-over-month order movement performance versus how on-highway performed this month.” ACT Research’s final report on December orders was even stronger at 36,800 units, according to the firm’s monthly “State of the Industry, NA Classes 5-8” report. Variances between analysts is partly due to which manufactures report sales numbers to the different agencies, as well as the timing of those reports. “Despite generationally weak profits in for-hire, large fleets still need to replenish existing/aging equipment,” said Kenny Vieth, ACT’s president and senior analyst. “With the defensive assumption that EPA’s Clean Truck regulation will go ahead as is at the start of 2027, private fleets, who crucially have the budget, are likely continuing to focus on fleet age ahead of the large price increase expected for tractors.” Vieth also commented on the large numbers of orders for vocational trucks — dump, trash, concrete, etc. “We remain firm in our belief that 2025 will be the best year for vocational truck demand since 2006,” he said, citing late 2024 production and higher interest rates this year. Used Class 8 market saw late surge The used Class 8 market finished strong with a surge of 23% in units sold in December, according to ACT Research. The price of the average used Class 8 truck rose by 4% for the month of December, but for the full year 2024 prices declined 4%. “Looking back on 2024, measured progress seems like an appropriate description,” said Steve Tam, ACT vice president. “The used market undoubtedly outperformed typical seasonality, which called for an increase of 8% month over month.” Why the 23% sales increase instead of the expected 8%? “One theory is that better-than-expected sales is (due to) buyers trying to time their purchases ahead of impending value increases,” Tam said, noting that used truck prices tend to follow new truck prices. Anticipated price increases spur buying Prices for new trucks are expected to rise by $30,000 per unit or more for the 2027 model year, when government mandates for longer warrantees and new fuel mileage and emissions requirements hit. For now, President Donald Trump’s administration has called a halt to some of those mandates. Still, 2025 and 2026 models are more in demand by buyers who want to stock up on less expensive equipment. New truck deals will become increasingly hard to find, and many buyers will turn to the used market. OEM reports Individual manufacturers fared differently in comparison to the market in both December and for the full year 2024. Freightliner, for example, saw a 9.3% decline in sales for December, while the total of all manufacturers rose 13.9%. For the year, Freightliner’s sales decline of 10.5% was a little worse than the industry average of 9.7%. Still, the company was far and away the biggest seller, reporting sales of 86,544, good for 36% of all new Class 8 trucks sold in the U.S. in 2024. Western Star showed the largest percentage of sales growth for the year with sales of 1,391 in December bringing its 2024 total to 11,638. The annual number represents a 39.6% increase over 2023 sales, taking the company’s share of the market from 3.1% to 4.8% in 2024. Two other truck builders that increased their market share in 2024 were PACCAR siblings Kenworth and Peterbilt. Both OEMs beat the industry average decline in 2024. Kenworth’s December sales of 3,308 brought the annual total to 36,621, good for 15.2% of sales among manufacturers. Peterbilt did even better, selling 3,469 in December to bring its 2024 total to 37,829. While down 4.8% from 2023 sales numbers, Peterbilt still increased its market share by 0.8% to 15.7% of new trucks sold in the U.S. International (formerly Navistar) ended 2024 with 26,550 trucks sold in the U.S., a whopping 28.6% lower than the 2023 total. The company saw its share of the U.S. Class 8 market slide by 2.9% to just 11% of trucks sold. Volvo, part of Daimler Trucks North America, picked up a tenth of a percent in market share with 24,399 sold for the year, good for 10.2% of the market. Daimler sibling Mack sold 16,567 — down 8.6% from 2023 but good for 6.8% of the market, up 0.1%. Threat of increased tariffs One issue looming large on the horizon is the possibility of tariffs proposed by Trump. “Moyer commented, “We continue to watch the ongoing discussions and developments related to President Trump’s plans to impose immediate tariffs on imports from Mexico, Canada and China, as more than 40% of Class 8 trucks sold in the U.S. are built in Mexico,” said FTR’s Moyer. “Tariffs could significantly disrupt supply chains and raise production costs, compounding disruptions already anticipated due to EPA 2027 NOx regulations.” Tariffs could also impact parts manufactured in China, driving up costs for both new trucks and repair parts for those already on the road. As carriers welcome the possibility of moderately rising freight rates, they’re hoping the rising cost of equipment won’t erase any profitability.

HHS to put fentanyl on its list for DOT testing

By Cliff Abbott - January 27, 2025

In a January 16, 2025 notice published in the U.S. Federal Register, the Department of Health and Human Services (HHS) announced that Fentanyl and Norfentanyl have been added to the list of Schedule I and II drugs authorized for testing in Federal workplace drug testing programs. The change is effective July 7, 2025. Norfentanyl is a component of Fentanyl and its detection in specimens indicates Fentanyl use. In a study considered by HHS for the ruling, including Norfentanyl in the testing increased the number of positive specimens by 42% over testing for Fentanyl alone. The HHS list is the source for drug testing programs administered by the DOT, including the FMCSA program used in trucking. The drugs will be added to the panel tested by urinalysis and by oral fluid testing. Oral fluid testing is still on hold until the lab certification process is completed, which is expected to occur by the July 7 effective date of the HHS announcement. In the Controlled Substances Act of 1970, Fentanyl was specified to be added to the list of controlled substances. The January 16 action by HHS adds the drug to Federal testing programs. The SUPPORT Act, signed into law by President Donald J. Trump on October 24, 2018, required the Secretary of HHS to determine if revised Mandatory Guidelines for Federal Workplace Drug Testing Programs to include testing for Fentanyl were justified. Included in the HHS announcement was the removal of Methylenedioxyamphetamine (MDA) and Methylenedioxymethamphetamine (MDMA) from the Schedule. The notice said these drugs were removed from testing because the low number of positive specimens by laboratories did not support continued testing for them. Other changes include revised abbreviations for marijuana test analytes to bring them in line with current scientific nomenclature. In one example, the department has been using “THC” to note the substance ∆-9-tetrahydrocannabinol, which will now be identified with the abbreviation “∆9THC.” While items such as abbreviations might seem like minutiae to the average person being tested, it’s important for testing forms and procedures to be standard for all. The changes to drug Schedules were proposed by the Drug Testing Advisory Board (DTAB) and published in the Federal Register on November 17, 2023. 176 comments were submitted for consideration before the recent announcement. The notice includes recommended initial and confirmatory cutoff levels for each listed drug. Fentanyl is a synthetic opioid that, according to the Centers for Disease Control (CDC), is 50 to 100 times more potent than morphine. It is prescribed legally for treating severe pain. Illegally made Fentanyl is of questionable potency and is often added to heroin, cocaine and other street drugs. According to the CDC, nearly 74,000 drug overdose deaths in 2022 involved synthetic opioids other than methadone, an increase of 5% over the previous year. Even when legally prescribed, use by anyone performing safety sensitive functions is prohibited by regulations. Soon, testing will help identify abusers. Fentanyl test strips that help identify the presence of the drug are available at Amazon and other retailers, local health departments, syringe-exchange programs and elsewhere. More information about the Federal drug testing program including assistance for substance abuse disorders is available at samhsa.gov/. A free, confidential treatment referral and information line is available 24/7, 365 days a year at 1-800-662-HELP (4357).

Trucking conditions expected to improve slowly in 2025

By Cliff Abbott - January 21, 2025

Many in the trucking industry was looking forward to better days ahead as 2024 came to an end. Unfortunately, the news from December didn’t look good. The Cass Freight Index for Shipments fell 7.3% in the month, according to the monthly report from Cass Information Systems. Of course, shipment numbers almost always decline in December because most of the Christmas retail rush is delivered in the previous months. In addition, the new year of manufacturing and construction doesn’t kick off until January. But even accounting for seasonal fluctuations, Cass’s Shipments Index was still down 3.1%. When compared to December 2023, shipments declined 6.5%. That’s the largest year-over-year decline since January 2024. The total decline in shipments for 2024 was 4.1%, after falling 5.3% in 2023. Profits are still possible even when shipments are down. Even when shipments are down, however, carriers can profit while hauling less freight — if rates are higher. With a month-to-month comparison, expenditures for shipping dropped 2.6% in December, but when seasonally adjusted, that “drop” actually turned out to be a 0.5% increase. Also, inferred freight rates — the index that Cass calculates from shipment numbers and total expenditures — turned out to be 3.3% higher than the same month in 2023 and 5.1% better than November 2024. That’s positive news for trucking. Still, over all of 2024, shipping expenditures fell 11%. Perhaps the best news in the Cass Indexes came with the Truckload Linehaul index, which doesn’t include non-trucking forms of shipping. “The year-over-year decline narrowed to 04% in December from 1.1% in November,” wrote Tim Denoyer, vice president of Trucking at ACT Research and author of the Cass report. This index is now on the verge of turning positive year-over-year for the first time in two years, possibly in January.” The Cass Freight Truckload Linehaul Index is based on invoice information from Cass clients and represents both spot and contract dry van rates. ATA predicts volume growth. In its latest edition of its annual freight forecast, the American Trucking Associations (ATA) predicted that truck volumes should grow 1.6% in 2025. The projection comes from a joint report by ATA and S&P Global Market Intelligence. The report projects freight growth through 2035. ATA’s advanced seasonally adjusted For-Hire Truck Tonnage Index, released Jan. 21, shows that trucking activity in the United States contracted in December — 111.3 compared to 112.6 in November. “Tonnage fell 1.8% in November, bringing the two-month total decrease to 2.9%, pushing tonnage to its lowest level since January 2024,” said Bob Costello, ATA’s chief economist. “Sluggishness in factory output continues to weigh on freight volumes, but another drag on the index has been fleet growth at private carriers, which is holding back how much freight is flowing to for-hire carriers.” DAT: Spot load postings were up in December. In its Trendline report, DAT Freight and Analytics showed a 17.3% increase in spot load postings for December over November numbers and a 23.3% increase over December 2023 postings. One statistic reported by DAT is the number of available loads compared to the number of available trucks. That ratio rose 59.4% in December for dry van, 40.9% for flatbed and 50.4% for refrigerated. It’s not unusual for the number of posted trucks to decline during the holiday season, but with fewer trucks and more loads, rates should be on the rise. They were. Dry van spot rates rose to a national average of $2.11 per mile in December, up from $2.03 in November. Refrigerated rates grew to $2.48 from $2.45, while flatbed spot rates rose to $2.39 from $2.37. As of mid-January, all three segments are still rising. Winter storms have undoubtedly played a part in that trend: When trucks park to avoid severe weather or are delayed in their routes, fewer trucks are available to haul offered loads, pushing spot rates higher. It may take an additional month to see if expected rate increases are really happening. Will Trump help or harm the industry with threatened tariffs? In the meantime, this month’s events in Washington could impact the trucking industry for years, with the swearing-in of Donald Trump as the 47th U.S. president on Jan. 20. Trump has threatened to impose stiff tariffs on U.S. trading partners Canada, China and Mexico. While some economists have expressed concern about the impact of tariffs on the economy, Trump’s tactic of threatening tariffs to goad governments of other countries into specific actions is well known. Both Canada and Mexico sent leaders to meet with Trump, prior to his inauguration, at his Mar-a-Lago estate in Palm Beach, Florida. Both countries have increased border security measures in response to Trump’s demands. One tariff threat from Trump involved John Deere moving some of its production to Mexico. Trump threatened a 100% tariff on the company’s products in retaliation for the loss of U.S. jobs in the move. Following his Jan. 20 inauguration, Trump vowed to enact 25% tariffs on products from U.S. neighbors Canada and Mexico on Feb. 1. In addition, tariff threats against China remain a strong possibility. Tariffs imposed during Trump’s first term on $360 billion in Chinese goods were retained by the Biden administration. A 100% tariff on Chinese vehicles is still on the books. What do tariffs mean for consumer pricing? Economists worry that new tariffs on foreign products will drive up prices passed along to the American consumer. Others point out that tariffs make conditions more favorable for U.S. businesses, benefitting the economy. If imposed, tariffs would result in a reduction in some imports, possibly causing a reduction in freight volumes. As production is shifted to the U.S. or to other countries not subject to tariffs, volumes should stabilize. For example, in response to Trump tariffs on China, production of some goods was moved to Vietnam. The U.S. Department of Transportation awaits new leadership. The trucking industry is also watching for the changing of the guard at the USDOT. Trump’s nominee for Secretary of Transportation is former Congressman Sean Duffy. On Jan. 15, Duffee breezed through a confirmation hearing before the Senate Committee on Commerce, Science and Transportation. He was introduced by Senator Tammy Baldwin, a Democrat, and flanked by Senator Ron Johnson, a Republican, in a strong indication of bipartisan support. Duffy served nine years as a congressional representative for Wisconsin, resigning during his last term to care for his family of nine children, including the youngest, who suffers from a heart condition. Duffy has been a frequent Fox News contributor and co-hosted “The Bottom Line” on the Fox Business Channel. “No federal agency impacts Americans’ daily lives and loved ones like the Department of Transportation,” he said in his Senate confirmation hearing.

Could the start of a new year be a good time to find a new truck driving job?

By Cliff Abbott - January 9, 2025

With the beginning of a new year, many people are looking to make changes in their lives. One of those changes might involve finding a new job, or even a new career. For current and prospective truck drivers, this might be a great move. As 2025 kicks off, signs indicate that the trucking industry is entering a new — and hopefully profitable — part of the supply-demand cycle. For the past couple of years or so, the industry has been stuck in a downward trajectory because of overcapacity. When the supply of available trucks exceeds the demand for services, freight rates go down as the industry undergoes contraction. When that happens, some carriers, both large and small, go out of business. The carriers that remain often reduce their fleet size and change their load acceptance parameters to avoid the least profitable loads. Right now, most industry analysts agree that trucking is on the verge of a growth cycle. That’s because the supply of trucks has finally shrunk enough to be roughly in equilibrium with the demand by shippers. Rates should begin rising, and carriers will be hiring more drivers to keep their fleets fully seated. That’s good news for those thinking of changing jobs. As competition for drivers heats up, so do carrier recruiting efforts. Drivers who have been struggling to get enough paid miles or who are looking for higher pay per load will be keeping an eye on the barrage of recruitment advertising that is sure to ensue. Before jumping on board with a new carrier, however, there are a few important things to consider. Rate of pay In trucking, pay raises often beget pay raises. In other words, carriers know that they’ll lose some drivers to other carriers who announce pay increases. They watch the market carefully to see who’s raising pay — and then they often raise their own compensation package to keep pace. It’s not uncommon for a driver to switch carriers for more pay only to find out the company they left gave everyone a pay increase. It’s worth asking about before making a decision. Then, as every experienced driver knows, rates per mile don’t mean much if the miles aren’t there. If you’re considering a job change, ask about the average length of haul and average weekly miles per truck. Carriers with competent management track such numbers and use them in staff meetings and elsewhere to make business decisions. Recruiters should be able to answer any questions you might have — and those answers should be specific rather than “ballpark” numbers. At many carriers, bonuses make up a significant part of driver pay. Bonuses are offered for safe performance, on-time deliveries, attainment of fuel mileage goals and other reasons. Bonuses often sound good, but the requirements can make them difficult to achieve. Always ask what percentage of the carrier’s drivers were actually paid the offered bonuses. If you don’t earn the bonus, will the base pay rate be enough to pay your bills? Ask about accessorial pay, too, including the requirements to get it. For example, detention pay of $25 per hour might sound OK, but if they only start paying after you’ve been there for four hours, it’s actually not such a great deal. Often there are other conditions — for example, that the detention must be listed on the load paperwork and signed by the customer, or that detention isn’t paid until paperwork is received at the carrier office. Can you realistically expect to get paid if you are detained? Layover pay is another ask. If the carrier can’t find you a load while you’re on the road, how long must you wait before earning layover pay? Some carriers have a rule that ties layover to the 34-hour reset of your hours of service, withholding layover pay if the hours are used to reset your hours. The theory is that you’ve benefitted from the hours reset and therefore don’t deserve layover pay. Such practices should make you wonder if you really want to work for that carrier. Geographical location Where you live is an important consideration when considering a job change. Just because your residence falls withing the carrier’s hiring area shown on a map, it doesn’t mean the carrier has enough freight to keep you rolling in that particular area. You might ask about how the carrier plans to get you home when you’re not actively hauling. If you typically need to drive for hours from your last delivery to your home — and then more hours to get to your next load — that particular carrier may not be the right one for you. On the other hand, the carrier might have a customer close by where you can drop a trailer and bobtail a short distance to your home. Equipment matters Ask about the age of the carrier’s truck fleet, too. Most keep track of the age of the average tractor in their fleet or can at least tell you their trade cycle (how long they keep tractors before replacing them). During periods of low rates and low profits, carriers often reduce new truck purchases, increasing the age of the average truck in their fleet. If you’re concerned about what you’ll be driving, ask during the recruiting process. Build a record of longevity Staying longer with a carrier almost always looks better on an application, and some carriers put limits on how many jobs an applicant can have during a specified amount of time in order to be considered for hire. There are even statistics showing that drivers who change jobs more often tend to be less safe. That’s something to think about when considering a job change, because every job, even a short-term one, impacts your work record. Do your homework Thoroughly researching a carrier you’re considering should include more than just an application and a conversation with a recruiter. Use the power of the internet to find news and reviews of the carrier — and keep in mind that negative reviews are often posted by employees whose time at a carrier didn’t end well. Complainers never attempt to provide the carrier’s side of the story. Still, large numbers of negative posts with few positive ones may be a sign to stay away from a company. Current drivers may give you a clearer picture than online reviews by past employees. You can also look up accident and inspection information on the carrier’s CSA web page, where you can see how they compare to others. When rates are high and companies are competing to hire drivers it could be a great time to change jobs — but it’s always a good idea to weigh all the options and check out the company before making a switch.

Weather reports are an important part of safe trips

By Cliff Abbott - January 7, 2025

Does your current trip plan include an updated weather report? If it doesn’t, you’re missing out on some crucial information that could impact your safety and the safety of others. While no one would argue that weather predictions are completely reliable, the science of meteorology has come a long way in the last century. Thanks to satellite imagery, Doppler radar and other advances, weather systems can be identified and monitored earlier than ever. The Internet makes communication instantaneous. Widely available weather apps bring the latest information directly to your phone. The National Weather Service, The Weather Channel and AccuWeather all offer apps that can provide current weather information both nationally and locally. AccuWeather offers to provide local weather based on your current GPS location. Other popular apps are Weather Underground, Storm Shield and Highway Weather. Most are free; some offer enhanced features or reduced advertising for an small fee. The available weather information and delivery systems make events such as the 1900 Galveston, Texas, hurricane much easier to prepare for, saving thousands of lives. Back then, there was little warning of the approaching hurricane that destroyed more than 7,000 buildings and killed a number of people estimated to be between 6,000 and 12,000. It’s still the greatest weather disaster in U.S. history. Contrast that storm with the entire 2024 hurricane season in the U.S., which has been called “one of the deadliest in recent memory,” by USA Today. Five named storms made landfall in the U.S., the worst of which was Helene, resulting in more than 250 deaths across six states. No deaths were reported for one hurricane while deaths in the single-digits were reported for two others. Less than 500 deaths were reported for the entire season. While comparing the weather systems you might encounter on your next trip to deadly hurricanes may seem unreasonable, there is a link. The key reason for reduced numbers of fatalities was the ability of the public to prepare. The folks in Galveston in 1900 did not have that luxury. There’s another similarity. Hurricanes are extreme examples of low-pressure weather systems, the same type of systems that bring wind and rain everywhere. When air pressure drops, moisture-laden air is able to rise to altitudes where cooler air forces the water to fall out. Whether it falls as rain, snow, hail or in another form depends on the temperature and other factors, but it all starts with an area of low pressure. In the Northern Hemisphere, low-pressure systems spin counter-clockwise. They typically move from West to East, although the path can be changed by jet stream currents, other weather systems and more. If you’re driving through one, you might notice that the wind hits one side of your truck and then changes to the other side. Or if the low-pressure system is to your south, you may be driving into a headwind if you’re heading east. The point is that you can often predict the wind direction if you know where the center of the system is located. Another important bit of information is how fast the system is traveling. That can help you estimate when bad weather will arrive, but it also impacts how long you’ll be in the bad weather. If the system and you are both traveling in the same direction, it’ll take you longer to drive out of the bad weather. If you’re headed west in an eastbound system, you’ll be out of it quicker. If you’re driving in light rain, it may not matter. If you’re driving in a heavy snowfall, however, you’ll want to make good decisions about how far to proceed and when it’s safer to park and wait it out. Some weather apps provide predictions for each hour of the day, helping you plan when your best hours for driving will be. If you’re like most drivers, your biggest weather interest is severe weather. Storms that bring high winds, tornadoes, heavy snowfall or freezing rain can be deadly. It’s best to avoid them when possible, but the job requires traveling and inclement weather is just a part of it. The problem is determining how bad it will be. That’s difficult without up to the minute information. Each winter, one or more storms results in front-page photos of cars and trucks stranded on a snow-covered highway, often involved in a chain reaction accident. It’s certainly possible to be surprised by the weather, and rain and snowfalls can absolutely be higher than expected. Still, when heavy snows and slippery roads are predicted, one might wonder why so many vehicles were on the road in the first place. Modern meteorology makes it possible to predict when storm systems will arrive in the area you’re in and in the one you’re traveling to. Using available resources to keep track of weather systems is one way to reduce your chances of getting caught up in the worst weather. While it may not be possible to shut down for days at a time to avoid winter storms, sometimes taking an hour for a meal can give snow-clearing crews a chance to plow roads and put down salt or chemicals. Carriers generally monitor the weather and may use the information in their dispatch decisions, but it’s important to remember that the final decision rests with you, the driver. A fleet manager in an office 1,000 miles away doesn’t have the visibility that you do through your truck’s windshield. Shutting down or delaying a departure is a judgement call. Make sure your judgement is considered. Communication is the key. Let your dispatch team know what you’re doing and why, and don’t be intimidated into making an unsafe driving decision. Competent carriers will support your judgement. Today’s drivers have more tools than ever before that can help increase efficiency and safety, but they only work when they’re used. Make a weather report a part of your load acceptance process, include weather in your trip planning and check again periodically during your trip.

Rising freight rates, falling interest rates will impact 2025 sales of new Class 8 trucks

By Cliff Abbott - January 6, 2025

November U.S. sales of new Class 8 tractors declined 5.8% from October, but that’s expected for Thanksgiving month. What was not expected was a gain over November 2023 sales of 3.3% in a market that’s supposed to be weakening. Orders for future delivery of both tractors and trailers also grew in November, as prices for used trucks rose slightly. In November, manufacturers reported sales of 19,658 new Class 8 trucks, according to data received from Wards Intelligence. For the year to date, 217,966 Class 8 trucks have been reported sold in the U.S., down almost 25,000 trucks — that’s 10.3% — from the total for the same period of 2023. North American buyers ordered 37,200 new trucks in November, according to industry analysts at ACT Research. In its latest State of the Industry: NA Classes 5-8 report, Kenny Vieth, ACT’s president and senior analyst, explained that the number was surprising, considering the generally weak profits reported by for-hire carriers. “While some of this month’s strong orders likely came from post-election optimism in for-hire, we suspect that private fleets worried about future supply chain disruptions continued as the larger driver of tractor demand in November,” he said. Once again, orders for vocational trucks (those equipped with bodies for work other than pulling trailers such as dump, trash and so on) were responsible for a large number of orders. “Vocational truck orders totaled 8.6k units, another historically strong number, suggesting the vocational market is jumping in the queue ahead of EPA’27 and GHG-3,” Vieth said. New trailer orders Orders for new trailers were down about 4% in November compared with the same month in 2023, but were up 23% from October, according to ACT. Jennifer McNealy, ACT’s director of commercial vehicle market research and publications, says orders for the year to date are down 34% from the first 11 months of 2023 but are looking to improve. “For the first time in nearly a year, order intake outpaced build, and by about 6,700 units,” she said. Trailer sales have mirrored the Class 8 truck market in that an oversupply of units has plagued the industry — but trailer numbers don’t generally impact rates the way an oversupply of tractors can. Used Class 8 truck sales On the used tractor front, sales volumes dipped in November but only slightly. “Given that typical seasonality called for a decrease of 18%, the small dip was a big win,” said Steve Tam, vice president at ACT research. Tam also noted that post-election optimism may have helped drive November sales. Compared with November 2023, used tractor sales rose 24%. Due to high inventory levels, the average used tractor price declined by 4%, while both the average age and odometer mileage were down slightly. Prices did rise compared with October numbers, potentially an omen that the used truck market could see more attention as new truck prices rise. Positive news for freight rates There was more positive news about the truckload cycle, which has been stalled at a low point for an unusually long time. The boom-to-bust-and-back-again cycle has been in an oversupply status for nearly two years, causing rates to plummet and remain low. Larger carriers have reduced fleet sizes, large numbers of carriers, mostly small, have gone out of business and sales of new trucks have slowed to the point where “balance” may have finally been achieved. With greater demand for trucks to haul freight in the new year and fewer trucks available to haul it, freight rates should finally begin climbing. “The big private fleet expansion of the past two years will likely still leave anyone looking for a boom disappointed, but the for-hire rate recession is finally over,” said Tim Denoyer, vice president and senior analyst at ACT. “The trajectory is quite different than the past two cycles, but after three years in loose territory, the truckload supply-demand balance is set to turn tighter in the coming months.” OEM performance for November Freightliner, produced by Daimler Truck North America, topped the U.S. new Class 8 trucks sales charts in November, reporting sales of 7,550 units in November. For the year, the company has reported sales of 79,699 tractors — 10.3% off its 2023 pace and about even with the total market. The company holds 36.6% of U.S. Class 8 tractor sales. Daimler-owned sibling Western Star continued its recent upswing, topping sales of 1,000 trucks for the fourth consecutive month. With sales of 1,032 for November, the company tallied 4,186 truck sales in the past four months. A decade ago, the manufacturer reported sales of 3,645 for the entire year. This year, Western Star reports U.S. sales of 10,247 with a month of 2024 remaining, good for a 38% sales increase year-over-year. Western Star’s share of the Class 8 market has grown to 4.7%. Kenworth reported selling 2,809 Class 8 trucks in November, down from both October and November 2023. However, as the average year-over-year decline for all manufacturers is 10.3%, Kenworth’s 5.3% decline means they’ve picked up more market share. They own 15.3% of the U.S. Class 8 market this year, up 0.8% from last year’s pace. The other PACCAR company, Peterbilt, reported sales of 2,875 for November, bringing 2024 sales to 34,360. That’s 4.1% off last year’s pace but good enough to gain a full 1% of the U.S. market. Volvo reported sales of 1,535 Class 8 units in November, down 16.5% from October and down 22.4% from November 2023 sales. The company has retained about the same share of the Class 8 market as it did last year, 10%. Mack sales of 1,196 trucks were 12.3% down from October and down 9.5% from November 2023. The OEM has sold 6.6% of Class 8 trucks in the U.S. this year. Finally, International saw a 3.8% sales increase in November, reporting 2,630 trucks sold. Compared with November 2024, International sales are down 31%. For 2024, the company holds 11% of the U.S. Class 8 market, having dropped 3.3% compared with last year. A number of factors will impact the new truck market for 2025. Perhaps the largest will be pre-buying of 2025 and, later in the year, 2026 models to avoid steep price increases for the 2027 models. Increasing freight rates and falling interest rates will further incentivize potential buyers.

Clearinghouse Phase II: Make sure your team understands the latest FMCSA testing requirements

By Cliff Abbott - January 5, 2025

The Federal Motor Carrier Safety Administration’s Drug and Alcohol Clearinghouse has unquestionably achieved much of its intended purpose. The burden of chasing down former employers of drivers in an effort to obtain drug and alcohol testing results has changed drastically. The required information is now just a query away in the Clearinghouse. No more playing the system One key benefit is that drivers who failed drug or alcohol tests are no longer able to apply to carrier after carrier in an attempt to find one that won’t perform background checks before making a hire. Clearinghouse regulations specify that those drivers shouldn’t be eligible to perform safety-sensitive functions until they undergo a return to duty (RTD) program administered by a substance abuse professional (SAP) — but without a sound reporting system, states that issued CDLs to those drivers remained unaware. All of that began to change in January 2017, the effective date of rule that established the Clearinghouse. Carriers are now required to report testing results to a central entity and query the same entity to review the records of prospective drivers. Of course, it took a few years for the Clearinghouse database to build, but carriers could now determine if a driver was in a prohibited status with a few mouse clicks. Phase II now in effect A second final ruling, known as “Clearinghouse II,” took effect on November 18, 2024. Under the provisions of the ruling, state driver’s licensing agencies (SDLAs) are now required to downgrade the licenses of any driver in a “prohibited” status until they’ve completed an RTD program as recorded in the Clearinghouse. Before Phase II went into effect, state agencies had the ability to submit queries; however, the individual computer systems in each state weren’t always able to communicate with the Clearinghouse to receive status changes in a timely manner. Now, all that’s changed. Oral fluid testing is close Another Final Ruling, effective December 5, 2024, clarifies training requirements for Oral Fluid Testing collectors. The ruling may seem irrelevant, given the long wait for the DOT to certify laboratories to test specimens, but it’s an important clarification. The original ruling specified that those who train the collectors have at least a year of experience performing collections, but until the program actually gets underway, no one will have ANY experience. The laboratory issue may be sorted soon as well. “We feel that testing should be able to begin by the end of the 1st quarter in 2025 and should definitely be going by the 2nd quarter,” said Jo McGuire, executive director of the National Drug & Alcohol Screening Association. “All of the labs are in validity testing with the approved device now.” McGuire remarked that it’s important for carriers to be ready when the testing becomes official. “We are continuing to train trainers and are ready to train collectors as of December 6. Devices are now available to order from Abbott.” Abbott Toxicology will be a supplier of testing supplies and a provider of laboratory services. The delay in certification, it appears, occurred because labs didn’t want to invest in supplies and process until testing cut-off levels were established in a Final Rule. Once certain that the levels had not changed from the original proposed rule, progress was made quickly. Benefits of oral fluid testing Besides offering another option for testing, Oral Fluid collection eliminates some of the issues around urine testing. Since the need for observed tests is gone, questions of gender and who is qualified to observe are mute. Oral fluid collection does away with shy bladder incidents as well as dilution or alteration of specimens. Collection facility regulations are reduced as well, since the need for a private bathroom is eliminated, as are requirements to restrict access to water. Impact on carrier policy During the 2024 Accelerate! Conference and Expo hosted by the Women In Trucking Association, a distinguished panel of drug and alcohol policy experts moderated by McGuire discussed the need for each carrier to have a strong policy that is clearly communicated. That policy should include the carrier’s right to use Oral Fluid testing at its discretion. “It needs to be in the policy for pre-employment,” said Mia Hicks, manager of risk and compliance at DISA Global Solutions. “We’re going to do this and if it escalates, we’re going to do that.” Don’t wait to update policies Even with constantly shifting processes, motor carrier policies need to be clear and must be shared with everyone concerned prior to actual testing. Prospective drivers should be informed that they will be subject to any form of testing for drugs and alcohol that the carrier deems appropriate, within the laws and regulations in effect at the time of testing. Still waiting for hair follicle testing A long-awaited ruling about another form of testing still hasn’t happened. The use of Hair Follicle Testing for DOT supervised employees, included in the FAST Act that became effective in December 2015, has still not been approved for use. In fact, the Spring 2024 Unified Agenda published by the Department of Health and Human Services called for a proposed rulemaking by October 2024 to include hair testing in Mandatory Guidelines for Federal Workplace Drug Testing Programs. It didn’t happen. “I recently heard a great quote that summarizes this slow walk in a nutshell,” said David Heller, senior vice president of safety and government affairs for the Truckload Carriers Association. “Innovators will beat regulators every time, which is evidenced by the success stories of motor carriers across the country that have adopted hair follicle testing for their own programs.” While hair follicle testing results are not currently shared in the Clearinghouse, some carriers have been using the technology as a supplement to the USDOT’s testing regimen. Hair follicle testing has proven superior to urine testing for identifying drug use much farther in the past, and it provides many of the benefits of oral fluid testing, such as gender issues and elimination of the need for bathrooms. “TCA has not been quiet on this issue,” Heller said. “This topic has been discussed with both regulators and legislators in DC, and it will continue to be brought up until our industry has guidelines that will allow for this alternative measure.”

Today’s trucking industry is a part of Jimmy Carter’s legacy

By Cliff Abbott - December 30, 2024

Jimmy Carter, the 39th president of the U.S., will long be remembered for actions taken during his presidency that spanned 1977 through 1980. Among his historic actions were the transfer of control of the Panama Canal to the Republic of Panama, the signing of a peace accord between enemies Egypt and Israel and the establishment of normal diplomatic relations with China. Carter’s legacy, however, was marred by historic high inflation, interest and unemployment rates and by the Iranian takeover of the U.S. embassy in Tehran in November 1979 that included the taking of 53 hostages. Exactly one year later, as the hostage crisis remained unsolved, Carter lost his bid for a second term when Ronald Reagan was elected to replace him. Carter was a champion of free-market economics and called for government deregulation of transportation industries to promote competition and reduce rates. One result, the Motor Carrier Act of 1980, changed trucking as we knew it. Carter’s goal of reduced freight rates due to increased competition was achieved, but that competition resulted in the demise of hundreds of motor carriers, many of them unionized. Driver pay plummeted as well, while the current boom and bust freight cycle in the trucking industry was born. Prior to deregulation, trucking companies applied for routes from the Interstate Commerce Commission (ICC) and were required to submit proof that the route was needed. If the applicant could show that the route was new or that the carrier serving the route wasn’t able to handle the demand, authority might be granted, but only for specific products. Before that happened, however, the ICC would notify current carriers, giving them the opportunity to increase service to the area before adding new truckers. Carriers who already serviced a territory could file objections to each application and did so frequently in an effort to quash competition. Even when authority was granted, it was often tightly restricted with the carrier prohibited from adding additional stops, for example. Each carrier was required to file rates with the government 30 days prior to the effective date, and those rates couldn’t be lower than already-established rates. A new carrier could purchase an existing route or territory from another carrier, but the price was often astronomical, and any agreements had to be approved by the ICC. The system was cumbersome, expensive, and corrupt. The Motor Carrier Regulatory Reform and Modernization Act, commonly known as the Motor Carrier Act of 1980, eliminated most of the restrictions on cargoes that could be carried and allowed carriers to publish their own rates. Routes or territories were completely deregulated, so that almost any carrier could serve any territory desired. Entry into the freight marketplace became much easier, and many current carriers can point to an expansion of their fleets after the law was passed. Carter signed the bill into law on July 1, 1980. “The Motor Carrier Act of 1980 will bring the trucking industry into the free enterprise system, where it belongs,” he said at the signing. “It will create a strong presumption in favor of entry by new truckers and expanded service by existing firms.” During his administration, laws were passed deregulating the airline and rail industries as well as trucking. These laws, according to an October 1 article by Phil Gramm published in the Wall Street Journal, “unleashed competition and spawned the invention and innovation that gave America the world’s most efficient transportation and distribution system.” The WSJ article credited the Motor Carrier Act of 1980 with reducing the cost of moving goods, as a share of the U.S. gross domestic product, by 50%. Fred Smith, founder and now-retired CEO of Federal Express (now FedEx) said that Carter was unappreciated for his leadership in these efforts, adding, “These farsighted changes were the great achievement of the Carter presidency.” Unquestionably, there were negative consequences resulting from the Act. As increased competition drove freight rates downward, large carriers, many of them unionized, could not compete with the lower rates. Some familiar carriers of the early 70’s such as Consolidated Freightways (CF), Pacific Intermountain Express (P.I.E.) and Transcon Lines eventually closed their doors. Campbell’s 66 Express, the carrier with camel character “Snortin’ Norton” on each trailer with the company’s motto “humpin’ to please” lasted six years into deregulation. It’s interesting that a president from a political party that is known for being pro-union would support legislation that severely impacted union membership numbers, but Carter was conservative in many of his viewpoints. His determination to reduce government control wouldn’t be popular in his party today. He chose to put the country ahead of political affiliations. Driver pay and benefits were driven downward by regulation, too. An analysis by Business Insider showed that median wages for truck drivers have declined by 21% since 1980, with sharper declines in some areas. An annual truck driver salary of $38,000 in 1980 would be worth nearly $145,500 in today’s dollars, when inflation is factored in. There are few drivers earning that amount today as some carriers struggle to hire enough drivers to keep their trucks running. Carter’s far-sighted goal of increased transportation competition has been transformative in the U.S. economy. More choices in carriers, as well as reduced rates, has been credited with the creation of “big box” stores that are common today, such as Walmart, Home Depot and others. Cheaper freight rates help keep the cost of consumer commodities lower, helping the economy grow while also helping to curb inflation, two goals that Carter mentioned at the bill signing. Today’s trucking industry has undergone many changes in the past 35 years, but none as impactful as the deregulation Carter signed into law in 1980.

Industry looks forward to a positive freight outlook for 2025 but uncertainties remain

By Cliff Abbott - December 30, 2024

November saw declines in truckload volumes, according to information received from DAT Freight and Analytics — but with sound reason. “Shippers moved so much freight into the U.S. earlier this year, ahead of potential tariffs and port strikes, that we didn’t see the volumes we might expect in November,” said Ken Adamo, DAT’s chief of analytics. President-elect Donald J. Trump has threatened tariffs on goods from several countries, including Canada and Mexico, but actual implementation won’t happen until after the Jan. 20 presidential inauguration. Both Canada and Mexico are attempting to comply with Trump’s demands to tighten border security, which could cause Trump to relent on tariff threats. The port strikes Adamo refers to were settled, at least temporarily. Earlier in the fall, ports along the U.S. East and Gulf coasts that are administered by the U.S. Maritime Alliance (USMX), were under threat of a strike by the International Longshoremen’s Association (ILA), the largest maritime worker’s union in North America. Many businesses ordered extra inventory in August and September in anticipation of the strikes, which were expected to cause massive disruptions in the U.S. economy. The two sides came to a tentative agreement after just three days and the ports reopened, but the settlement is effective only until Jan. 15, 2025 — when another strike looms. Freight rates saw some improvement. Freight rates were, overall, slightly better in November, according to DAT. Dry van spot rates, on average, remained at $2.02 per mile, identical to October rates, but have since climbed in December. Refrigerated rates were up by six cents to $2.45 in November, while flatbed rates dropped by four cents to $2.42 per mile. The $2.45 refrigerated spot rate was the highest average since January. Overall, rates are up about 5% compared to November of 2023. On the contract side, rates didn’t change much from October. Contract van rates were down eleven cents from November 2023, refrigerated rates were down by eighteen cents and flatbed down eleven cents. However, DAT’s New Rate Differential (NRD), which measures changes in the contract market, was positive for the third consecutive month. That means that new contracts being entered are better than old contracts that are expiring. Private fleets have impacted the freight market. ACT Research’s For-Hire Trucking Index for Volumes was in positive territory for the second consecutive month in November. “The U.S. economy remains resilient, and freight volumes are growing,” the release noted. ACT’s Capacity Index came in at 50, indicating a balance between the supply of available trucks and the demand for them. The release also pointed to the expansion of private fleets as a key factor in slowing freight rate recovery. Private fleets have been in the news for most of 2024 as product manufacturers continue to buy trucks. Proctor & Gamble, for example, had no private fleet when it began purchasing trucks in 2019. Today, the fleet accounts for over 800 drivers. The freight handled by those 800 drivers is no longer available to for-hire carriers — and P&G certainly isn’t the only private fleet. The Cass Freight Index for Shipments showed a 2.8% seasonally adjusted gain in November, while the index for expenditures grew by 3.1%. More freight, and more income for hauling it, are positive signs for the trucking industry. The Cass report also focuses on the increase in private fleets as a drag on the for-hire market. The release predicts that the total Freight Index decline for 2024 will be about 4%, while private fleets have grown roughly 5%. These factors could impact freight volumes and rates. While rates are generally predicted to grow slowly in 2025, there are several factors that could impact freight volumes and rates. One is inflation, which typically grows when a new administration takes over the U.S. government. The Federal Reserve board on Dec. 18 announced another .25 point cut to its key interest rate, an indication that inflation is slowing. The group also announced it expects to cut rates twice more in 2025, rather than the four cuts previously expected. If the rate cuts aren’t enough to curb inflation, as some analysts predict, the economy could suffer. A second factor that could drive inflation and reduce freight volumes is the threat of tariffs. If Trump imposes tariffs on China, Canada and Mexico, as he has threatened, imports could be slowed and the cost of products will rise. Trump has used threats of tariffs in the past as a tool to gain concessions from other countries, which may be a component of his current threats. The threat of a port strike looms once again. The largest near-term headwind to the freight market may be the looming threat of Jan. 15 port strikes. More than half of the nation’s imports flow through the East and Gulf coast ports. The ILA and USMX settled some issues during the three-day October stoppage when the USMX agreed to pay and benefits increases, but other issues remain. One of those issues is modernization. U.S. ports have been classified as “inefficient” compared with ports in other parts of the world. The World Bank Group claims that ports in other countries are 40% more productive than U.S. ports; in fact, no U.S. ports are listed among the world’s Top 50. Increased use of automation would help them become more efficient, but at the cost of jobs. The ILA is insisting that plans to modernize U.S. ports be eliminated, claiming that U.S. port efficiency ratings are skewed by customs clearance and extensive safety and security protocols mandated by U.S. law. On December 12, president-elect Trump met with ILA Executive Vice Presidents Harold J. and Dennis A. Daggett at Trump’s Mar-a-Lago resort. After the meeting, Trump posted to Truth Social, “There has been a lot of discussion having to do with ‘automation’ on United States docks. I’ve studied automation and know just about everything there is to know about it. The amount of money saved is nowhere near the distress, hurt and harm it causes for American Workers, in this case, our Longshoremen.” In September, JP Morgan Chase estimated that an ILA strike would cost the economy $3.8 to $4.5 billion per day. That cost will be even higher in January. With a determined ILA and a sympathetic incoming U.S. president, it’s looking like a strike will occur, and it likely won’t be resolved quickly. Meanwhile, the trucking industry does what it always does: Transport cargo across the continent as quickly and safely as possible.

Is this a good time to buy a truck? Consider these factors before putting money down

By Cliff Abbott - December 19, 2024

“Is this a good time to buy a truck?” It’s a question heard often in the industry, and the answer is usually the same: “Maybe … but then again, maybe not.” This is obviously not a very satisfactory answer, but the truth is that whether you’re thinking about adding another truck to a small fleet or buying your first truck and striking out as an owner-operator, there are numerous factors to take into consideration. Consider capacity and rates. When it comes to the freight market, capacity rules. Capacity, or the number of trucks available to haul freight, is the “supply” side of the supply / demand equation. The more freight that needs to be moved, the more demand there is for trucks to haul that freight. For the past couple of years, the supply of available trucks has been too high; this has kept freight rates low. In fact, rates have been so low for so long that thousands of carriers — mostly one- or two-truck outfits, but also some larger ones — to leave the industry. If current signs are correct, however, things are beginning to change. The trucking industry is about to enter a growth period in the next truck-freight cycle. The conditions for buying a truck and starting a trucking business are improving. One indicator that now might be a good time to buy a truck is that spot rates are looking better. According to DAT Freight and Analytics, which hosts the country’s largest load board, November spot rates for dry van loads were up 0.5% from a year ago on the average, while flatbed spot rates were up 2.0% over November 2023 rates. Refrigerated spot rates were down 1.7% compared with a year ago, but analysts believe they should rebound nicely once harvesting commences in the new year. A Dec. 16 report from industry analyst FTR Transportation Intelligence pointed out that consumer prices rose in November, “with food prices notably contributing to producer-level inflation.” Commentary included with the report also pointed out that mortgage rates have been declining, a good sign for the housing market and the flatbed industry. Another interesting statistic mentioned in the FTR release was Applications for New Businesses, which surged by 5.5% in November. That’s the largest increase since April of 2021 — and a good sign that confidence in the economy is growing. Interest rates could drop in the near future. If mortgage rates are falling, then interest rates on loans for trucking equipment can’t be far behind. Those rates may soon have reason to decline further. The Federal Open Market Committee, the branch of the Federal Reserve that sets the interest rate range for money that commercial banks borrow and lend their excess reserves to one another, was scheduled to meet this week, on Dec. 18. Economists predict they will cut interest rates by another .25%. Some economists are urging caution, claiming that a further cut in interest rates could spur inflation. That’s not necessarily a bad thing for trucking, however, if inflation results in more freight to haul — which will increase the demand side of the freight equation. Used truck prices are falling. While freight rates are slowly beginning to rise and there’s a possibility that interest rates might come down, used truck prices are still falling from their previous record highs. According to data received from industry analyst ACT Research, the number of used trucks sold in November increased by 24% from November 2023 levels. The average used truck sold in November was priced 4% lower than a year ago and had 1% fewer miles, PLUS, the average used truck was 2% younger in age. Inventories are still at record high levels, a good sign for potential buyers. The recent presidential election may have impacted both U.S. economic factors and used truck sales, as consumer confidence in the economy has risen. It’s possible that some November sales were made by buyers who waited for the election results before investing, but no one knows for sure. Prices for new trucks will rise. While future prices of used trucks aren’t certain, it IS certain that the prices of new trucks will be going up. That’s because government mandates for both fuel economy and emissions take effect with the 2027 models. The Environmental Protection Agency’s (EPA) new standards make manufacturers responsible for the increased usable life of each truck. OEMs will most likely respond by increasing the length of warranty coverage, charging a higher price upfront for the additional maintenance work. Because buyers are expected to “pre-buy,” stocking up on equipment before the new standards and higher costs go into effect, new truck prices for 2025 and 2026 models are expected to be higher, and some buyers will turn to the used truck market. When that happens, used truck prices should begin climbing again. Numerous factors impact the freight business. So, while freight rates are slowly rising, used truck prices are down and interest rates are improving, the window for starting a new trucking business may be easing open. The caveat, however, is that success isn’t guaranteed. Some good carriers fail in a good market, while some poorly run carriers succeed in a down market. Management, especially decision-making ability, local markets and good, old-fashioned luck are still in the equation. One other factor that will impact the trucking business in 2025 is the cost of diesel fuel. The average U.S. cost per gallon of on-road diesel is $3.49, according to the U.S. Energy Information Administration (EIA). That price is down 53 cents from a year ago and $1.33 from two years ago. The EIA projects that crude oil prices will remain stable throughout 2025, so diesel prices should remain constant. President-elect Trump made energy independence a part of his election message and is expected to increase U.S. oil production, as he did in his first term. However, fuel prices can be impacted by global events, such as the ongoing military conflicts in the Middle East and Ukraine, and by weather events. In other words, there’s no “sure-fire” prediction. It’s important for carriers to have a fuel surcharge policy — a mechanism to pass along higher costs to customers — in case diesel prices rise. An internet search will bring up tables used by other carriers, or a carrier can make their own. Carriers that deal with brokers must understand how fuel prices impact profitability and incorporate that information into load decisions. Depending on the source of information, the long drought in trucking profitability may be entering a new phase that could be very beneficial for potential business owners. As trucking conditions change, the next few months could offer the starting point some entrepreneurs have been waiting for.

Road detectives: Watch for clues that road surfaces are treacherous this winter

By Cliff Abbott - December 17, 2024

Saturday, Dec. 21, will mark the first official day of winter in the northern hemisphere. It’s also the shortest day of the entire year. Dec. 21 is not, however, the first day of winter weather in most parts of North America, and countless truck drivers have already encountered inclement conditions. Not every driver travels routes in areas that are routinely impacted snow, ice, freezing rain and other wintery hazards. Even so, it’s a good idea for every professional driver, regardless of region, to review winter driving hazards and driving techniques to stay safe when the snow flies and surfaces become treacherous. The first rule of thumb is simple: Park your truck, if at all possible. Nearly everyone knows that it’s better to shut down when conditions are too risky to handle. Some jurisdictions make the choice, closing roads when conditions are bad. Be prepared for changing conditions. Often, it’s the changing conditions that cause the biggest safety hazards. For example, the salt or chemicals used to treat the roads can melt ice or keep it from forming. The problem is, however, that the ice doesn’t always stay melted. The water produced from melting snow and ice dilutes the salt or chemicals — along with their effectiveness. The roads may be completely passable at one point in time; however, when temperatures drop — whether caused by a storm front, darkness or whatever — ice can quickly re-form on the road surface. But there’s another factor that can change ice to water and back to ice — altitude. Many drivers have experienced the phenomenon of rain turning into snow as they ascend a mountain. That’s because higher altitudes are usually colder. On road surfaces, it only takes a slight change in temperature to freeze water. In addition, the slopes encountered on mountains help to drain off whatever chemicals were applied to the roads. A wet road can turn into an icy one within a short distance. Beware of black ice. Black ice is the most dangerous hazard of all, because it can be hard to tell if a surface is frozen or merely wet. However, there are some clues you can watch for. The most obvious, of course, is the traffic ahead of you. Be aware of how other vehicles, particularly heavy trucks, are handling the conditions. Another way to determine whether the road is icy or simply wet is to watch for road spray, either from other vehicles or by checking your rear-view mirror. If the road looks wet but there’s no spray coming from the tires, it’s ice. Don’t be overconfident on snowy surfaces. Snow presents a different set of challenges for truckers because it isn’t usually as slippery as ice and can often be driven on (at a reduced speed, of course). Unfortunately, as vehicles pass over snow-covered roads, the snow gets packed down — and there’s often a thin layer of ice atop that snow — so caution is necessary. There are times when a loaded 18-wheeler can get better traction in snow than nearby smaller vehicles, but it’s important to watch other motorists and be prepared if they lose control. Give them plenty of space. Overpasses and bridges can be treacherous. In many areas of the country, the ground stays warm enough to keep the road surface warm, melting off any snow that accumulates. Keep in mind, however, that bridges and overpasses don’t have ground beneath them for insulation. Those signs that warn “bridge freezes before road” are there for a very important reason. In most cases, crossing a portion of bridge or overpass where the water may be frozen requires drivers to do nothing. Literally — as in don’t accelerate, don’t brake and don’t steer. Simply guiding the truck across while making no changes provides the best chance of getting across safely. Don’t let ice build up on your vehicle. Rain and road spray can form ice on vehicles, too. It’s important to check your truck’s lights periodically, since LED lamps and headlights don’t produce enough heat to melt off ice and snow. Ice can quickly accumulate in headlight recesses, and just a thin coating of ice can make taillights invisible. Whenever you can, a quick walk around will help make sure others can see indicator lights. Even without exiting the truck, you can find clues that your lights need attention. Ice and snow and build up on mirror brackets, antennas and other parts of the truck, so keep an eye on those items. One trick often used by “old school” drivers is to watch for the movement of radio or CB antennas while moving. Normally, the antennas are pushed backwards in the vehicles slipstream, sometimes moving backward and forward. If you notice antennas moving from side to side, making circles or other strange movements, it’s likely that ice has formed on them and is changing their aerodynamic properties. Stop and check your vehicle. Always plan ahead. Weather systems typically (but not always) move from West to East across North America. With experience, drivers can either plan their trip to stay ahead of a weather front or take a rest break until it has moved through the area. Keep in mind that the systems that bring rain and snow are often followed by a cold snap, freezing the precipitation that’s dropped. With the widespread availability of weather radar and access to weather information on phones and computers, a check of the weather should be a part of every trip plan. It’s helpful to know what kind of weather to expect and plan accordingly. Trying to make up time while driving in bad conditions is a recipe for disaster. Sometimes, you have to say “no.” Sound trip planning sometimes includes the word “no.” When accepting a dispatch, it’s important to know if conditions may get dangerous. Negotiating a later delivery or declining the load might be safer options. If you’re already under load and encounter inclement weather, it may be safer to shut down and run later, after the roads have been treated or the sun comes up and warms the temperature. Don’t be intimidated by managers or others who are speaking to you from the warmth and safety of their office. You’re the person on the scene, and your judgement counts. Be aware of holiday hazards. A final word of caution: The holiday season is upon us! That means the Clark Griswold’s of the world (“Christmas Vacation,” anyone?) might be hitting the road in search of the perfect Christmas tree. With the kids out of school and the whole family on the way to Grandma’s house, there’ll be extra traffic. Other motorists may be distracted, or they may simply not possess the safety skills that you use on the road every day. Unfortunately, some of those other motorists may have chosen to celebrate with alcohol or other substances that alter their driving abilities. Being observant and staying out of accidents can help get you — and others — safely to a desired destination. That might just be the sweetest Christmas gift of all.

Is your company ready for Clearinghouse Phase II?

By Cliff Abbott - December 16, 2024

The Federal Motor Carrier Safety Administration’s (FMCSA) Drug and Alcohol Clearinghouse has unquestionably achieved much of its intended purpose. The burden of chasing down former employers of drivers in an effort to obtain drug and alcohol testing results has changed drastically. The required information is now just a query away in the Clearinghouse. No more playing the system One key benefit is that drivers who failed drug or alcohol tests are no longer able to apply to carrier after carrier in an attempt to find one that won’t perform background checks before making a hire. Clearinghouse regulations specify that those drivers shouldn’t be eligible to perform safety-sensitive functions until they undergo a return to duty (RTD) program administered by a substance abuse professional (SAP) — but without a sound reporting system, states that issued CDLs to those drivers remained unaware. All of that began to change in January 2017, the effective date of rule that established the Clearinghouse. Carriers are now required to report testing results to a central entity and query the same entity to review the records of prospective drivers. Of course, it took a few years for the Clearinghouse database to build, but carriers could now determine if a driver was in a prohibited status with a few mouse clicks. Phase II now in effect A second final ruling, known as “Clearinghouse II,” took effect on November 18, 2024. Under the provisions of the ruling, state driver’s licensing agencies (SDLAs) are now required to downgrade the licenses of any driver in a “prohibited” status until they’ve completed an RTD program as recorded in the Clearinghouse. Before Phase II went into effect, state agencies had the ability to submit queries; however, the individual computer systems in each state weren’t always able to communicate with the Clearinghouse to receive status changes in a timely manner. Now, all that’s changed. For carriers, the implementation of Phase II is just one more reason a driver’s CDL might be suspended. Carriers are often surprised when drivers receive a suspension due to unreported violations, unpaid tickets and, in some states, unpaid child support payments. Notices of suspension were often mailed to the driver’s home of record and were often unseen by drivers for long periods of time. That’s a problem when the driver gets pulled over and removed from behind the wheel, much to the surprise of the carrier. During the Commercial Vehicle Safety Alliance’s (CVSA) Roadcheck 2024, conducted in May, 688 drivers were placed out of service (OOS) for “No Commercial Driver’s License.” Another 138 were OOS for “Suspended License or CDL.” Altogether, 30.5% of all driver OOS violations were due to CDL issues. Additionally, 63 drivers were identified as being in a “prohibited” status in the Clearinghouse. As of September 2024, 178,360 CDL holders were listed as “prohibited” in the Clearinghouse database. With states now required to suspend or downgrade CDLs, these numbers can only rise. It will be increasingly important to make sure that the carrier is doing all it can to obtain this information, and the process starts with the written policy given to drivers during orientation. It should clearly state the driver’s responsibility to inform the carrier when any change to the CDL status occurs. Such a policy provides one more method of staying informed and failure to comply can be cited as an item in any remedial action taken against the driver. Impact on carrier policy During the 2024 Accelerate! Conference and Expo hosted by the Women In Trucking Association, a distinguished panel of drug and alcohol policy experts discussed the need for a strong policy that is clearly communicated. “It needs to be in the policy for pre-employment,” said Mia Hicks, manager of risk and compliance at DISA Global Solutions. “We’re going to do this and if it escalates, we’re going to do that.” While policies help clear up the process for drivers, other members of the team need to understand the company’s process, too. From the initial hiring process to areas like post-accident testing or employee self-identification as a user, fleet managers, safety personnel and others who have supervisory responsibility over drivers need to know how to react. “Some of those common unintentional violations are, first and foremost, not immediately notifying the supervisor of an accident. Everything ties back to training,” Hicks explained. “Misinterpretation of the regulations, whether that’s the supervisor or the driver, making sure everyone is aware of what the requirements are up front is a huge help on the back end. People can’t say, ‘I didn’t know; I didn’t understand.’” There’s another item that should be included in all drug and alcohol testing policies: The carrier retains the right to utilize oral fluid testing at its discretion. That’s the topic of another final ruling, effective December 5, 2024. This rule clarifies qualification procedures for oral fluid collectors, including the training required. The original ruling specified that those who train the collectors have at least a year of experience performing collections, but until the program actually gets underway, no one will have ANY experience. One issue the newest ruling did not fix is what collectors are to do with oral fluid specimens after collection. That’s because the original rule stated that use of oral fluid testing can’t start until the USDOT certifies two laboratories to test the specimens — something that still hasn’t happened. Still, certification of labs could happen quickly, and carriers should be prepared to start testing as quickly as possible once it happens. It’s best to have policies updated before oral fluid testing actually begins. “Oral fluid is a great resolution for things like shy bladder, and it eliminates the need for a direct observed collector being same sex,” Hicks remarked. Oral fluid testing also eliminates any conflicts with a driver’s gender identification. Hicks advises that carriers provide an authorization form for each driver who’s sent to a collection site. The form should contain clear indications of what type of testing is required, so there are no mix-ups. For carriers that perform both DOT and non-DOT testing, the form should clearly outline what tests are to be done. While the FMCSA testing policy will undoubtedly see more changes in the future, a process for adapting policies and training everyone involved will be advantageous.

So, you want to be a trucker? Make sure you’re up for the challenge

By Cliff Abbott - December 9, 2024

There’s little doubt that driving a truck professionally can be a rewarding career. Compared to other career choices, the training can be less inexpensive and require much less time. Often, the training is employer-sponsored, meaning that new entrants to the profession can receive training for free. It’s not unusual for a driver to make trucking a second career after retiring from the military, being laid off after a plant closure or simply tiring of his or her current job. Many drivers have transitioned to trucking with great success. Look at the whole picture before jumping in. Unfortunately, too many drivers and their families aren’t provided with the complete picture of what a trucking career can look like: The income can be great — but so can the expenses involved. The difficulty of the job can be multiplied by the stresses it can bring to marriages and other relationships. The psychological toll on drivers can be big, too. If you’re thinking about a career change and think trucking might be right for you, there are a few things you should know before you start. In reality, trucking isn’t just a job, it’s a lifestyle. If you understand how your lifestyle — and that of your family members — can change, you’ll be better prepared for the ups and downs of your new career. Get the right training and learn how to do the job right. Getting started in trucking isn’t difficult for most beginners. First off, you’ll take a course in how to safely operate the vehicle so you can earn a commercial driver’s license (CDL). There are several types of CDL training schools; they’re all designed to teach you to safely navigate the largest vehicles on the road. Private CDL schools typically have shorter training periods — but one reason for that brevity is that they may not cover as much material as training facilities. You’ll receive training in the classroom, low-speed maneuvering on the range, and some actual driving time on the road. In short, the goal of any CDL school is to get you to pass your state CDL exam and earn your license. Some trucking companies, or motor carriers, have their own training or schools that can apply more focus on things the carrier finds important, such as safety or working with a certain type of trailer and cargo. Other carriers hire from outside CDL schools. Some even work with certain schools, setting up deals where a student’s training is paid for by the company in exchange for the driver’s commitment to work for that carrier for a specified length of time. There are publicly funded driving schools, too. Most of these are part of a community college. The tuition can be very reasonable, and because the schools are funded publicly, they can offer courses that last longer and cover more material. Some offer weekend courses for those that need to continue working while training. The National Association of Publicly Funded Truck Driving Schools offers a convenient site map to help prospective students find a training center near them. No matter what type of training school you choose to start with, make sure you thoroughly understand the costs and requirements, especially if you enter into an agreement with a carrier to fund your training. Be prepared for major lifestyle changes. Here are a few things to expect in your new career. You’re going to be separated from your spouse and family for much of the time. Maybe that’s happened to your family before, while you were away on a family visit, vacation or other event — but in trucking, it will be repetitive. If you choose a carrier that promises to get you home every two weeks, that’s how often you’ll see your family. You won’t have time to keep the grass cut, fix the water heater, paint a bedroom and spend time with your wife and kids. A good portion of your time off will be spent washing clothes and packing up for your next two weeks on the road. If your partner or someone else in the family can handle the tasks you normally do at home, you’ll be a step ahead — but not every partner is able (or willing) to take your place while you’re gone. Life as a truck driver also has an emotional impact. For instance, some conversations with loved ones should really be in person and can’t be handled well in a phone call or video chat from the road. Waiting all day (or week or month) for that discussion only gets worse when it devolves into your family complaining about you not being there. Often, drivers change jobs in an effort to find one that gets them home more often or for longer periods, hoping that more time with the family will help alleviate some of the separation issues. Sometimes it works … more often it doesn’t. No matter how great the company’s home-time benefits are, they can’t always accommodate a driver’s desire for special days off. You will miss some birthdays, anniversaries and other occasions. After driving on the road for a year or so, some drivers look for a local alternative that lets them be at home every night. There are local jobs available, such as hauling trash, concrete or petroleum products. Most of these don’t pay as well as over-the-road (OTR) driving, and the hours are often long. Still, they are an option for some drivers and their families. Too often, however, drivers cycle between a local job that gets them home but doesn’t pay the bills and an OTR job that pays well but keeps them away from loved ones. Be sure to budget for life on the road. Pay scale is another area that often causes problems — in fact, pay is regularly among the Top 3 concerns of drivers, according to an annual survey conducted by the American Transportation Research Institute. Personal expenses while driving OTR are certainly a concern. Restaurants are more expensive than ever, and drivers who plan to eat three meals a day at truck stops or restaurants will quickly discover there isn’t much paycheck left over to send home. Fast food is cheaper than the truck stop deli or a diner, but it’s also less healthy. Far too many drivers find that obesity seems to come with the job. If you find yourself short on cash on the road, most carriers allow drivers to draw advances on their pay using their assigned fuel cards. HOWEVER, It’s vital that you keep this in mind: Multiple advances in a week to pay for meals and other items can result in take-home pay that doesn’t cover family expenses back home, leading to other problems. Carrying food along helps minimize the issue. The best practice is to pack food that can be easily prepared on the road. Microwaves and other cooking devices are common fixtures in most trucks these days. Thousands of successful truck drivers thrive on the road and enjoy a satisfying and lucrative career. Before making the move to trucking, stop and have an honest and thorough conversation with your spouse and family. It’s the best way to avoid issues about time and money later.

Alternative fuels: Could they be a good fit for your trucking business?

By Cliff Abbott - December 4, 2024

If you own your own business — and this applies to owner-operators as well as fleets — it’s probably safe to assume you’re concerned about the costs of operating your business. With all the stories in the news about the “fuel of the future,” who could be blamed for wondering about alternatives to the tried-and-true diesel engine for future equipment purchases? The biggest issue with non-traditional powered vehicles in the trucking industry is availability. Natural gas, hydrogen and electricity all have advantages over diesel fuel, but none are as readily available and accessible as diesel. If your business is irregular-route trucking that keeps you on the road for a week or more at a time, taking you to different destinations, diesel fuel is still your only viable option. But that doesn’t mean that there isn’t a place for other types of engines and fuel sources. Changes are being made in certain areas of transportation. Consider passenger vehicles. Households that depend on one vehicle sometimes face the same issue as long-haul truckers when it comes to the availability of fuel. One-car families that use their vehicles for vacations or other long trips as well as for local travel are likely better served with gasoline or diesel power. But those households are in the minority. According to a March 2024 article in Forbes Advisor, “Car Ownership Statistics 2024,” 59.1% of American households owned two or more vehicles in 2022. For these millions of households, it makes perfect sense to use one vehicle for long-distance trips and another for commuting to and from work or school, local shopping and so forth. Vehicles fueled by electricity, natural gas or other fuels could work well — and save the owner some cash in the long run. The same changes are occurring in trucking. Local trucking businesses, such as those that haul trash, beverages or passengers (such as buses, trolley or tram systems) have been experimenting with other forms of power for years, with varying degrees of success. Many metro areas use natural gas to power bus transportation, benefitting from the lower cost and reduced emission levels provided by the fuel. Electric vehicles are also becoming more common. If your trucking business is local or regional in nature — and especially if your vehicle returns to the same location each evening — an alternative fuel could give you a competitive advantage … but only if the details are in your favor. For example, you might need to have an electric charging station or a natural gas fueling station installed where you park your vehicle. The cost of installation, the difficulty of getting supplied by the local power company and the cost of the specific alternative fuel are factors to consider. Charging is a major factor for electric vehicles. Many homes already have the electrical service necessary to charge an electric car. However, charging heavy trucks generally requires more power than is available at a typical home. Businesses may need to upgrade their electrical service, and local grids may not be able to handle the increase without long delays (if at all). Battery electric trucks require chargers that can handle 250-750 Kilowatt-hours (kWh). That’s five to 10 times the electricity required to charge a car. Additionally, truck charging stations are usually designed to charge multiple vehicles at once. Often, installing chargers of that capacity requires additional cables, transformers and other hardware from the local electric company. Even then, the grid in that area may not be capable of handling the extra capacity. The cost of electricity is another issue. According to the Energy Information Administration (EIA), costs per kWh of electricity in 2023 ranged from just over eight cents in North Dakota to just under 25 cents in California. In other words, the cost of electricity in California was more than three times the cost in North Dakota. (The national average cost was 12.68 cents.) Obviously, the cost of electricity in your area can make a huge difference in charging costs, whether you’re looking at powering a passenger vehicle or a Class 8 truck. Natural gas prices vary by state as well. The standard unit used to measure the energy capacity of natural gas is the “therm.” One therm is equal to about 100,000 British thermal units (BTUs), or about 29.3 kilowatt-hours of electricity. It’s the energy of about 100 cubic feet of natural gas at standard temperature and pressure. As with electricity, natural gas prices are high in California and in the Northeast U.S. where they run almost double the cost in the Midwest. As with electric charging stations, it’s important to check with the local service provider to find out costs for both the product and for installation of charging infrastructure. Natural gas fuels do offer other benefits. One benefit of using natural gas to fuel your vehicles is that there is an infrastructure on the road, even if it’s still pretty small. With its 2016 purchase of Trillium CNG, Love’s Travel Centers secured a supplier for natural gas refueling as well as new fueling stations. The chain now offers 65 fueling locations for natural gas. The truck stop stations are mostly in Texas and Oklahoma, but Trillium locations can be found from Florida to California. British Petroleum (BP) last year announced that it had purchased the TravelCenters of America (TA) chain. BP plans to use TA locations to expand and develop new fuel offerings, including electric charging stations and natural gas. Hydrogen is considered an up-and-coming fuel … but unless you live near a facility that makes it available, it’s probably not your fuel of choice. It’s worth noting that the fuels mentioned above are often used to produce other fuels. For example, hydrogen is often manufactured from natural gas — using electricity. Natural gas is burned in some power plants that generate electricity. In areas where the cost of natural gas is high, the price for electricity or hydrogen produced from it is likely to be high as well. So, what’s the answer? That depends on your specific situation and needs. Before you make the decision to move to an alternate fuel, it’s important to find out who will perform maintenance on your vehicle and where maintenance services can be obtained. Some tasks, such as oil changes, won’t change much, but a breakdown without a technician that knows the system could be a major problem. Vehicles using natural gas as fuel and electric vehicles have been around long enough that both are available on the used truck market. If your trucking business can work with limited fueling/charging capabilities, there might be an opportunity to reduce operational expenses and increase profitability by investing in an alternative-fuel vehicle.