The Trucker News Staff

LONDON — OPEC and allied oil-producing countries decided Thursday to gradually increase the flows they send to the world, even as Europe’s plan to sanction Russian oil threatens to yank millions of barrels off a global market already thirsty for crude. U.S. oil prices rose Thursday, up 1.2% after the meeting to $109.01 per barrel, or 43% higher since the start of the year. International benchmark Brent crude rose 1.7%, to $111.81 per barrel. The price of crude oil accounts for about 60% of the price at the pump in the United States. Average U.S. gasoline prices stood at $4.19 per gallon Wednesday, up $1.29 from a year ago. Diesel for trucks and farm equipment has risen even more over a year ago, by $2.34, to $5.43 per gallon. By Thursday, it had gone even higher to an average of $5.50 per gallon, according to the U.S. Energy Information Administration. This news comes among concerns that some areas of the U.S. are experiencing shortages of diesel fuel. Last week, East coast inventories of diesel plunged to the lowest seasonal level since government records started more than 30 years ago, according to a report from Bloomberg. The shortage caused a crisis in the diesel market, sending wholesale and retail diesel prices to an all-time high. Diesel is today more expensive in America that it was in 2008, when the price of crude oil surged to nearly $150 a barrel compared with little more than $100 currently. The problem is even worse than those numbers suggest because several refineries are operating well below their typical capacity, Bloomberg reported. For example, the Paulsboro refinery near Philadelphia isn’t running several units that could make diesel. Its owner, PBF Energy Inc., last week said that even if it wanted to operate them, it would probably struggle to do so at worthwhile capacity because it can’t import the semi-refined oil feedstock it once did from Russia. The cautious approach from the OPEC+ alliance — which includes non-member Russia — will exacerbate a global energy crunch, with prices expected to rise further for oil and the gasoline, diesel and aviation fuel made from it. Those higher prices will worsen global inflation, eating away at people’s ability to spend money that would otherwise support the economic recovery. At an online meeting, OPEC+ stuck with its road map to gradually open the oil taps, agreeing to add 432,000 barrels per day in June. The plan is to make those regular increases to restore cuts made in 2020 during the worst of the pandemic recession. Oil prices have risen — more than 40% this year — as the boost in production remains smaller than what the U.S. and other oil-consuming countries are pressing for to ease high prices at the pump.     Bigger surges in oil prices have been held back by COVID-19 lockdowns in China cutting demand and the U.S. and other member countries of the International Energy Agency releasing oil from strategic reserves. Still, analysts from Rystad Energy foresee the global market potentially losing up to 2 million barrels within six months if the 27 European Union countries approve a proposal to sanction Russian oil. Moscow is expected to see production fall after losing its biggest oil customer — Europe. OPEC has made it clear to European officials that the oil cartel is not going to increase production to compensate for lost Russian oil. Some OPEC members already can’t meet their oil production quotas. Russia is the world’s largest oil exporter with some 12% of global supply, and fears its oil and natural gas could be cut off have kept energy prices high. Before the invasion of Ukraine, Russian sent around 3.8 million barrels of oil per day to the European Union, where refineries turn it into gasoline and diesel fuel. If the EU carries through on its plans to phase out crude imports in six months, Russia could try to sell those barrels to countries in Asia that are not participating in the boycott. But it might not be able to find customers for all of the oil displaced from Europe, even at tempting knockdown prices. For one reason, there is limited pipeline and rail capacity to Asia. While some oil could be redirected by sea, that will depend on the availability of oil tankers willing to deal with Russian crude, given the risk of sanctions. Banks and companies that insure tanker fleets may be reluctant to facilitate the sale of Russian oil. “Higher prices could be around the corner,” said Bjornar Tonhaugen, head of oil markets research at Rystad Energy. “The oil market has not fully priced in the potential of an EU oil embargo, so higher crude prices are to be expected in the summer months if it’s voted into law.” The Associated Press contributed to this report.    

WASHINGTON — The Federal Motor Carrier Administration (FMCSA) is now accepting formal comments for its proposal to install speed limiters on commercial vehicles (CMVs) operating across the country. Click here to participate. The notice does not give a specific speed limit to be set; however, it does state that “the agency is considering making the rule only applicable to CMVs manufactured after a certain date, such as 2003, because this is the population of vehicles for which ECUs (electronic engine control units) were routinely installed and may potentially be used to govern the speed of the vehicles.” Additionally, the rule, if adopted, would affect CMVs “in interstate commerce with a gross vehicle weight rating (GVWR) or gross vehicle weight (GVW) of 11,794 kilograms or more (26,001 pounds or more), whichever is greater, that are equipped with ECUs capable of governing the maximum speed be required to limit the CMV to a speed to be determined by the rulemaking and to maintain that ECU setting for the service life of the vehicle.” The move is a follow-up to a 2016 joint proposal between the FMCSA and the National Highway Traffic Safety Administration for CMV speed limiters. The comment period ends June 3.

ALEXANDRIA, Va. — The Truckload Carriers Association (TCA) named on Wednesday its 2022-23 TCA Scholarship Fund recipients. “What makes the TCA Scholarship Fund so special is the fact that it is funded by the proud and generous people of the trucking industry,” Fund Chairman and American Central Transport’s Sr. Vice President Bob Kretsinger said. “Whether it’s through fundraisers, company and/or individual donations, the fund has been awarding scholarships for nearly 50 years. This year we had a record number of applications, yet we were still able to award nearly 25% of all applicants with a scholarship.” Since 1973, the fund has been providing scholarships to students whose families are associated with the trucking industry. Each scholarship recipient must be a student in good standing attending a four-year college or university and must be associated with a TCA member company as an employee, independent contractor, or the child, grandchild or spouse of an employee or independent contractor of a TCA member company. The fund awards its scholarships without regard to race, color, sex, national origin, religion, age, disability or genetic information. Again this year, the Ohio Foundation of Independent Colleges (OFIC) managed the application process. A selection committee, established by OFIC, scored the applicants, taking into considering the applicants’ GPA, major, extracurricular activities, hours worked and more. This school year, 19 high school seniors, 15 college freshman, 11 college sophomores, seven college juniors and three college seniors were awarded scholarships totaling more than $160,000. Recipients span across the United States and Canada, with Wisconsin leading the way with eight recipients. Additionally, TCA is announcing a new, fully-endowed Past Chairmen’s Fund scholarship — the Tom Kretsinger, Jr. Scholarship. Kretsinger served as TCA’s Chairman from 2013-14. For a TCA past chairman to have a fully endowed scholarship in their name, their Past Chairmen’s Fund is required to receive $50,000 in donations. The inaugural recipient of the scholarship, in the amount of $3,250, is Anthony Ciraulo, whose father works at Werner Enterprises based in Omaha, Nebraska. Ciraulo will be a college senior at Saint Ambrose University in Davenport, Iowa, and is majoring in accounting. This year’s scholarship recipients are: Tristan Schelvan H.O. Wolding NAIT Scholarship – $6,250 Rae Ballinger H.O Wolding John Kaburick Scholarship – $4,500 Alexandra Wayne Brown Trucking Company Kai Norris Scholarship – $3,250 Joshua Short Cargo Transporters, Inc. Darrel Clark Wilson III Scholarship – $3,250 Mallory Beamer Dutch Maid Logistics Thomas Welby Scholarship – $3,250 Jared Anderson deBoer Transportation, Inc. Stoney Reese Stubbs Scholarship – $3,250 Cade Walder Nussbaum Transportation Robert Low Scholarship – $3,250 Amy Pitzel Bison Transport Robert D. Penner Scholarship – $3,250 Landry Kirsling H.O. Wolding Thomas R. Schilli Scholarship – $3,250 Connor Gates Prime Inc. Thomas R. Schilli Scholarship – $3,250 Nathan Gariepy Load One, LLC Keith Tuttle Scholarship – $3,250 Anthony Ciraulo Werner Enterprises Tom Kretsinger, Jr. Scholarship – $3,250 The following have been awarded $2,725 for the 2022-23 school year: Elizabeth Wilhelm — Hirschbach Motor Lines Toby Plattner — Nussbaum Transportation Parker Litterick — Warren Transport, Inc. Jack Thompson — Cheema Freightlines, LLC Jocelyn Calderon — Whiteline Express, Ltd. Isabella Makowske – Dart Transit Company Olivia Thompson — Cheema Freightlines, LLC Keylan Newton — Covenant Transport Services Megan Rogers — Don Hummer Trucking Corp. Martina Tolhurst — Bison Transport Isabella McDaniel — Buchanan Hauling & Rigging Emily Dudaitis — E and V Services, Inc. Annika Waltenberg — H.O. Wolding Chase Forwerck — Keller Logistics, LLC Nicholas Farrell — Load One, LLC Jack Rogers — Don Hummer Trucking Corp. Chloe Smith — Barber Trucking, Inc. Courtney Street — Wilson Logistics Tanner Nelson — Bay & Bay Skyler Seybold — Prime Inc. Kylie Woods — Woods Transportation LLC Alyssa Kirsling — H.O. Wolding Nathan Stice — CFI Rylee Deckard — Prime Inc. Natalie Houser — Daseke – Boyd Bros Transportation Inc. Mason Jenkins — Doug Andrus Distributing LLC Andrew Goble — DMC Insurance Victoria Freeman — U.S. Xpress, Inc. Jacob Moore — Covenant Logistics Molly Nugent — R.E. Garrison Trucking James Floyd — KLLM Transport Services Kaden Buatte — Prime Inc. Genesis Drake — Cargo Transporters, Inc. Kelsey Fullenkamp — Whiteline Express, Ltd. Eva Whang — Veriha Trucking Ariel Swerlein — Classic Carriers, Inc. Kylie Wenger — Wilson Logistics Jaida Ndungu — USA Truck, Inc. Seth Bose — K & J Trucking Theresa Stephens — McLeod Software Kelsey McGaughey — PGT Trucking, Inc. Jackson Smith — Arctic Express Benay Taylor — Prime Inc. TCA officials said they congratulate this year’s recipients. To learn more about the TCA Scholarship Fund, or for information on how you can donate to the Past Chairmen’s Fund, visit www.truckload.org/scholarships.

ARLINGTON, Va. — The American Transportation Research Institute (ATRI) has released a new report that analyzes the environmental impacts of zero-emission trucks (ZET). This analysis, a 2021 top priority of ATRI’s Research Advisory Committee, utilized federal and industry-sourced data to identify and compare full life-cycle CO2 emissions for a range of truck types, including a baseline diesel truck, battery electric trucks and hydrogen fuel cell trucks, according to a news release from ATRI. The study found that while electric trucks have no direct tailpipe emissions, CO2 production associated with vehicle, battery and electricity production would only result in a 30 percent decrease in CO2 emissions when compared to a standard diesel truck. The marginal environmental benefits of electric trucks are due, in large part, to lithium-ion battery production – which generates more than six times the carbon of diesel truck production. The research, which utilized outputs from the Argonne National Lab’s GREET Model, also incorporates CO2 emissions that generate from the U.S. electrical grid – which still relies primarily on fossil fuels. ATRI ’s research concludes that hydrogen fuel cell trucks are ultimately the most environmentally friendly truck type, although the technology is not presently feasible for long-haul operations. “The U.S. trucking industry is strongly committed to carbon-reduction efforts, and electric motors and drive trains offer many additional performance and maintenance benefits,” said Hugh Ekberg, President and CEO of CRST. “But ATRI’s research highlights that several of the leading zero-emission approaches being advocated today still need additional research to fully understand how the different technologies can be best developed and utilized to maximize carbon reduction.” The report concludes by identifying additional strategies that can reduce CO2 truck emissions for all three energy sources – diesel, electricity and hydrogen. For example, renewable diesel could decrease CO2 emissions to only 32.7 percent of a standard diesel engine without requiring new infrastructure or truck equipment. Finally, hydrogen sourced from solar-power electricity could enable hydrogen fuel cell trucks to emit only 8.8 percent of the baseline diesel CO2. A copy of the full report is available through ATRI’s website by clicking here.