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LOS ANGELES — Hundreds of independent truck drivers stopped work and took to the streets Wednesday to protest a California law that makes it more difficult for them to be considered independent contractors. At the ports of Los Angeles and Long Beach, a group of about 100 truck drivers stopped work in protest as other drivers blocked highways in the area; however, port spokespeople said that the facilities remained open. Drivers in Oakland are reportedly planning their own protest for Monday. On June 30, the U.S. Supreme Court decided against hearing the California Trucking Association’s (CTA) case against the law, known as Assembly Bill 5, or AB5. This means that the U.S. Court of Appeals for the Ninth Circuit’s ruling stands, thus eliminating the preliminary injunction preventing AB5 from being enforced on motor carriers. Popularly known as the “gig worker bill,” the legislation requires companies that hire independent contractors to reclassify them as employees, with some exceptions. This has many in the California trucking industry concerned about the future of the owner-operator. John Wiggins, an owner-operator who regularly drives to California’s ports, told The Trucker that the new law amounts to government overreach. “They just don’t want us little guys to make it,” he said. “That is why I am out here protesting. It’s a damn shame.” AB5 was passed into law in 2019, but the lawsuit had prevented it from affecting the trucking industry. “Gasoline has been poured on the fire that is our ongoing supply chain crisis,” the CTA said in a statement. “In addition to the direct impact on California’s 70,000 owner-operators who have seven days to cease long-standing independent businesses, the impact of taking tens of thousands of truck drivers off the road will have devastating repercussions on an already fragile supply chain, increasing costs and worsening runaway inflation.” Trucking company owner Gordy Reimer told Reuters that he normally has 50 to 75 independent drivers working at Los Angeles’ ports. All of them declined loads on Wednesday to participate in the protests on port properties and nearby roadways, said Reimer, who counted his immediate losses at around $50,000. The Owner-Operator Independent Drivers Association (OOIDA), which filed an amicus brief in support of the CTA’s petition, said it was disappointed in the high court’s decision. “With AB5 now set to go into effect, thousands of owner-operators driving in California face an uncertain future,” OOIDA President Todd Spencer said. “California has provided no guidance to owner-operators about how they can work as independent contractors under this new scheme, and truckers will be at the mercy of the courts to interpret how the law will be applied. “For truckers that have invested their blood, sweat and treasure to create their own businesses, it is dismaying that lawmakers and the courts are forging ahead with this radical policy that dismisses a beneficial business model that has been in place for decades. At the same time, we know this will not be the last word on the legality of AB5 and expect to participate in future challenges to the law.” Meanwhile, the California Attorney’s General Office heralded the decision. “We’re pleased with the court’s decision to reject this challenge to AB 5’s application to the motor carrier industry,” a spokesperson said, according to OOIDA’s publication Land Line. “At the California Department of Justice, we’ll continue to do our part to defend laws that are designed to protect workers and ensure fair labor and business practices.” CTA officials said they believe that AB5 violates the constitution and could force the end of the trucking industry’s owner-operator model. But the U.S. solicitor general recently advised the court to deny the CTA’s petition, saying that AB5 would not have a significant impact on prices, routes or services  

DETROIT — Professional drivers, working both in mass transit and in trucking, are now able to access a 30-second CDL health check that focuses on the dangers of hypertension and type-2 diabetes by utilizing a new smartphone app from Health in Transportation and NuraLogix. This app, called the CDL Health Scanner, allows drivers to quickly scan key vitals using either an iPhone or Android device. “It is a unique, driver-centric system that relies on the revolutionary Anura technology to measure Blood Pressure (BP) using transdermal optical imaging delivered via a smartphone camera,” a news release stated. “When combined with the user’s Body Mass Index (BMI) data, the risk-factors for hypertension, type-2 diabetes, and even obstructive sleep apnea (OSA), the bane of over-the-road truckers, come into clear focus.” Bob Perry, president of Health in Transportation, is also known as the “Trucker Trainer” and has been working on the app’s development for years. “In a situation in which the industry is experiencing a shortage of close to 100,000 drivers — and when putting a new driver behind the wheel involves five-figure expense for the carrier — reducing the number of medical disqualifications that result from a Department of Transportation physical is the top priority,” Perry said. “Close to 80% of those disqualifications are caused by high blood pressure, dangerous blood-sugar levels and OSA, and this app not only warns drivers that they are in dangerous territory, it also links them to specialty health coaches who can guide lifestyle changes that will transform their health situation.” Perry said that the principles of Health in Transportation “have a proven track record, over several decades, of finding realistic ways for drivers to improve their health, despite the massive difficulties that life on the road creates.” He added: “The CDL Health Scanner is the culmination of that work and their greatest achievement. It promises to protect the lives and livelihoods of hundreds of thousands of professional drivers whose life-expectancies are years less than their contemporaries. Fleets benefit too by reducing driver-replacement costs, while providing savings in their self-financed health insurance programs.” For more information, click here.  

PHOENIX — The American Transportation Research Institute (ATRI) board of directors has approved the 2022 Top Research Priorities, as identified by ATRI’s Research Advisory Committee (RAC). ATRI’s RAC selected research topics that are focused on impacts on the industry’s workforce, operational impacts from predatory towing and expanding the driver population through international work permits. The 2022 ATRI top research priorities are: Marijuana — Impacts of Decriminalization on Trucking Industry: As more states move to decriminalize marijuana and other Schedule I drugs, this study would update ATRI’s 2019 report by examining roadway safety and workforce impacts in those states that have changed their controlled substance laws. Quantifying Industry Impacts from Predatory Towing: Predatory towing can take many forms, including tow operators who park near known crash locations, take possession of vehicles and charge exorbitant rates for release of the vehicle and cargo. This research will quantify the extent of the issue and identify best practices from states that have successfully addressed unscrupulous tow operators through legislation. Efficacy of Driver Training on Safety Outcomes and Driver Retention: Driver shortage and driver retention were identified as the Top 2 industry concerns in 2021. Understanding how initial driver training contributes to the successful and safe integration of new entrants into trucking will be the focus of this research, updating an earlier ATRI study from 2008. Utilizing EB-3 Work Permits to Help Mitigate the Driver Shortage: This research will explore the potential for recruiting drivers from outside the U.S. through the employer-sponsored EB-3 Work Permit. SEC Climate Rule Impacts on the Trucking Industry: This research will quantify the potential impacts of new SEC climate rules on the trucking industry and their supply chains, focusing on possible Scope 3 reporting requirements. In particular, it will document entities within the supply chain of publicly traded companies that will have to report carbon outputs.

WASHINGTON — A closely divided House approved legislation Thursday to crack down on alleged price gouging by oil companies and other energy producers as prices at the pump continue to soar. This as diesel fuel currently sits at an average of more than $5.60 per gallon in the U.S. and gasoline is at almost $4.60. A bill backed by House Democrats would give President Joe Biden authority to declare an energy emergency that would make it unlawful to increase gasoline and home energy fuel prices in an “excessive” or exploitative manner. The bill directs the Federal Trade Commission to punish companies that engage in price gouging and adds a new unit at the FTC to monitor fuel markets. “At a time when people across the country are feeling the pinch at the gas pump, Congress needs to be doing all it can to bring down costs for American families,” said Rep. Kim Schrier, D-Wash., who co-sponsored the bill. She called it “infuriating” that spikes in gas prices were “happening at the same time that gas and oil companies are making record profits and taking advantage of international crises to make a profit. This must stop.” The measure was approved, 217-207. Republicans unanimously opposed the bill, along with four Democrats. It now goes to the Senate, where a similar bill faces steep odds amid a 50-50 split between Democrats and Republicans. The focus on price gouging comes as gas prices hit an average of $4.59 per gallon Thursday — 49 cents a gallon higher than a month ago and $1.55 higher than a year ago, according to AAA. ExxonMobil, Chevron and other major oil companies announced surging profits totaling more than $40 billion in the first quarter of the year, a fact Democrats repeatedly cited in floor debate. Many of the companies are spending billions on stock buybacks and dividend payments to investors. “Big Oil is price gouging families because they can,” said Rep. Katie Porter, D-Calif., another co-sponsor. “Enough is enough.” Republicans and industry groups called the bill misguided, saying there is no evidence of price gouging. Oil is a global commodity and prices are set on the global market. Gas prices rose late last year amid supply chain problems and increased demand as the economy recovered following the COVID-19 pandemic, but prices have spiked ever higher since Russia’s Feb. 24 invasion of Ukraine. The U.S. has banned imports of Russian oil and other countries are seeking alternatives to Russian energy, driving prices up. Biden, aware of the political stakes, has vowed to do all he can to ease “pain at the pump for American families,” including ordering release of record amounts of oil from the nation’s strategic reserve. White House press secretary Karine Jean-Pierre said Biden “welcomes all ideas to protect consumers and to make sure that oil companies aren’t taking advantage of (Russian President Vladimir) Putin’s war and are competing fairly.” Republicans say the answer to higher gas prices is to increase production here in the United States. Louisiana Rep. Steve Scalise, the No. 2 House Republican, called the bill an attempt by Democrats “to distract and shift blame from the administration’s self-inflicted energy and inflation crisis.” Scalise called the bill “a socialist price-fixing scheme that hurts small businesses and consumers the most.” He accused Democrats of “politicizing” the FTC by giving the commission “wide-ranging powers based on undefined parameters that will allow it to usurp market forces and set government-controlled gasoline prices.” Rep. Chris Pappas, D-N.H., said the bill was needed. “The price of crude oil fell last month, yet the prices consumers pay at the pump continued to rise. We have to put an end to this corporate profiteering and give families relief,” he said. The American Exploration and Production Council, a lobbying group that represents independent oil and gas producers, called the bill counter-productive. “Energy prices are determined by supply and demand, not false accusations of ‘price gouging’ motivated by the upcoming election,” said Anne Bradbury, the group’s CEO. The House vote comes as Interior Secretary Deb Haaland said she will release a long-delayed, five-year plan that allows Interior to conduct new offshore oil and gas lease sales. The current plan expires June 30, and administration officials had not said when or if a replacement would be released, even as they canceled three offshore lease sales scheduled in the Gulf of Mexico and off the Alaska coast. Haaland told the Senate Energy Committee the new plan will be made public by June 30. The plan does not issue specific leases or authorize any drilling project. “As we take this next step, we will follow the science and the law, as we always do,” Haaland said Thursday, vowing a “robust and transparent review process that includes input from states, the public and tribes.” The Biden administration has come under pressure to increase U.S. crude production as fuel prices spike because of the pandemic and the war in Ukraine. Biden also faces pressure from Democrats and environmental groups urging him to do more to combat climate change, even as his legislative proposals on climate and clean energy remain stalled in a sharply divided Congress. Sen. Joe Manchin, a West Virginia Democrat who chairs the energy panel and plays an outsized role on energy policy, said Thursday that “even as we see Russia wage a war enabled by energy insecurity in Europe, this administration has made its opposition to domestic oil and gas production crystal clear.” Manchin said he supported a pause on new oil and gas leasing on federal lands and waters announced by Biden soon after taking office in January 2021. By last summer, he told Haaland, “the time for a pause had come and gone.” Now, 16 months after the pause was announced, “we still have no new leases,” Manchin said. “I’m sorry to say it has become crystal clear that the ‘pause’ is in fact a ban.” Interior conducted an offshore lease sale last fall, responding to a court order, but the sale was later vacated by a federal judge. The administration has scheduled onshore lease sales next month in eight mostly Western states. However, officials scaled back the amount of land offered for drilling and raised royalty rates charged to energy companies by 50%. The four Democrats who opposed the House bill are Reps. Lizzie Fletcher of Texas, Jared Golden of Maine, Stephanie Murphy of Florida and Kathleen Rice of New York. The Trucker Staff contributed to this report.

WASHINGTON — The interval between inspections of America’s highway bridges is about to get longer following the May 6 issuance of a final ruling by the Federal Highway Administration (FHWA). This new rule will extend inspection requirements for many bridges from two years to four years — and in some cases, six years. FHWA’s new requirements update the National Bridge Inspection Standards (NBIS) program, which maintains a bridge inventory and reports bridge inspection results — particularly critical findings of structural or safety-related deficiencies — to the FHWA. The FHWA said the new rule also repeals two outdated regulations, the Highway Bridge Replacement and Rehabilitation Program and the Discretionary Bridge Candidate Rating Factor. The Moving Ahead for Progress in the 21st Century Act (MAP-21) required the Secretary of Transportation to update the NBIS. Through this final rule, the FHWA updates the NBIS to address MAP-21 requirements, incorporates technological advancements including the use of unmanned aircraft systems, and addresses ambiguities identified since the last update to the regulation in 2009. The regulations prescribe the permissible inspection intervals for bridges, including options for more rigorous, risk-based intervals based on the consideration of certain factors. They also provide options for establishing inspection intervals for each inspection type. An inspection interval tolerance of three months beyond the inspection date is included. Specific criteria have been established to allow for extended routine inspection intervals up to 48 months — and up to 72 months for underwater inspections. Requirements are described to enable the establishment of more rigorous, risk-based intervals in consideration of certain factors associated with bridges for routine, underwater and nonredundant steel tension member inspections that would allow some inspection intervals to be up to 72 months. The FHWA’s final rule goes into effect June 6, 2022. One of the bridges that will be affected by the new law is the Interstate 40 bridge that connects Memphis, Tennessee, and West Memphis, Arkansas. That bridge was closed just last year after crews discovered a major crack in a structural beam on May 11, 2021. Thousands of cars, trucks and tractor-trailers pass over the I-40 bridge every day of the year. When the crack, which was deemed to be a critical danger to the bridge’s structural integrity, was discovered, the bridge was shut down almost immediately. In addition to halting traffic on I-40, barge traffic on the Mississippi River under the bridge was temporarily blocked. The eastbound lanes of the I-40 bridge were reopened July 31, 2021, and the westbound lanes were reopened Aug. 2, 2021. “The Tennessee DOT continues to review the new NBIS rules,” said Ted A. Kniazewycz, director of structures division at TDOT. “There are many changes that will provide long-term benefits to our program. There is also a considerable amount of new work that will be required to update the documentation on our inventory of over 20,000 bridges. We understand that the new rules will be phased in over the next six years, and we are working with our staff and IT teams to update our computer systems and records to meet the new rule requirements.”

WASHINGTON — The White House is releasing a new Permitting Action Plan to accelerate federal permitting and environmental reviews for projects related to the $1.2 trillion Infrastructure Investment and Jobs Act, which President Biden signed into law in November. According to a White House fact sheet, the action plan “outlines the administration’s strategy for ensuring that federal environmental reviews and permitting processes are effective, efficient and transparent, guided by the best available science to promote positive environmental and community outcomes, and shaped by early and meaningful public engagement.” The fact sheet continued: “Taken together, these new steps will help strengthen supply chains, lower costs for families, grow our clean energy economy, revitalize communities across the country, support good-paying jobs, and deliver infrastructure investments on task, on time, and on budget without unnecessary bureaucratic delay.” Key points of the plan include: Leveraging the interagency Federal Permitting Improvement Steering Council’s expanded authorities under the Bipartisan Infrastructure Law to improve coordination among agencies, help avoid and resolve potential conflicts and bottlenecks, identifying and sharing best practices and accelerating information sharing and troubleshooting; Convening sector-specific teams of experts to facilitate interagency coordination on siting, permitting, supply chain, and related issues and promoting efficient and timely reviews; Leveraging the Department of Transportation’s Interagency Infrastructure Permitting Improvement Center to help facilitate environmental review and permitting for Bipartisan Infrastructure Law-funded transportation projects by developing guidance, sharing best practices, coordinating reviews, tracking project milestones and outcomes and exploring innovative approaches; Developing and preparing new approaches to permitting and environmental review that help address common issues, eliminating duplication, and site and design projects in a way that reduces resource conflicts and incorporates a climate-smart approach; and Working to reform outdated permitting laws and regulations, such as the Mining Law of 1872, to establish stronger environmental, sustainability, safety, Tribal consultation and community engagement standards. “Long overdue improvements to our nation’s ports, airports, rail, and roads will help ease inflationary pressures, create conditions for businesses to thrive and strengthen supply chains – which will ultimately lower costs for families,” according to the White House fact sheet. “Building new clean energy generation and transmission projects will improve access to affordable clean energy that powers homes and businesses at lower costs. Responsible and sustainable domestic sourcing of critical minerals and materials will power our clean energy economy and reduce reliance on unreliable foreign supply chains. And delivering clean residential water supplies, high-speed internet, healthy forests and open space to all Americans, especially those historically underserved, is critical to make us stronger.”

WASHINGTON — The Federal Motor Carrier Safety Administration (FMCSA) wants to install speed limiters on commercial vehicles (CMVs) operating across the country, according to a recent notice of intent filing. But before that can happen, the agency has to initiate a public comment session, which will begin after the notice is officially published in the Federal Register. As of this writing, it has not been filed but is expected to appear within the next few days. The agency will use those comments as part of its rulemaking process. 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 National Roadway Safety Strategy identified speed as a major factor in fatal crashes, and speed management as a primary tool to reduce serious injuries and fatalities,” the FMCSA notice states. “FMCSA envisions the rule as a commonsense approach to reducing crashes and saving lives as the agency continues to work with drivers and advocates for the CMV community towards a goal of zero lives lost on our nation’s roadways.” The notice further states that the FMCSA “is moving forward with this rulemaking because of concerns about the number of CMV crashes and fatalities traveling at high speeds. In 2019 alone, there were nearly 900 fatal crashes in areas with posted speed limits over 70 miles per hour.” Reaction from the trucking industry came swiftly. The Owner-Operator Independent Drivers Association (OOIDA) criticized the plan in a news release. An OOIDA statement said policies and devices that limit speeds for large trucks “create unnecessary congestion and dangerous speed differentials among vehicles, which lead to higher accident involvement rates.” “Studies and research have already proven what we were all taught long ago in driver’s ed classes, that traffic is safest when vehicles all travel at the same relative speed,” said OOIDA President Todd Spencer. “Limiting trucks to speeds below the flow of traffic increases interactions between vehicles which can lead to more crashes.”   “This is just too much. You got big Washington people who think they know how to drive these trucks. Hell, they can’t even start one, much less drive one. Yet they are gonna tell us how to run on the highway? It’s crap man. Total crap.” — C. Jenkins, independent owner-operator   Additionally, most crashes involving CMVs occur in areas with speed limits below 55 mph, mitigating the effect of any potential mandate, the OOIDA news release stated. “What the motoring public should know is that when they are stuck behind trucks on long stretches of highway, those trucks are often limited to a speed well under the posted speed limit,” Spencer said. Truckload Carriers Association (TCA) Vice President of Government Affairs David Heller wrote on TCA’s website that TCA staff “will review the notice and consult with our Regulatory Policy Committee in order to submit comments by the deadline…. We look forward to working with our members and FMCSA leadership to help craft a final rule that reflects TCA’s policy on speed limiters.” TCA adopted the following stance on speed limiters in April 2021: “The speed of all electronically governed Class 7 and 8 trucks manufactured after 1992 should be governed by tamperproof devices either limiting the vehicle to a fixed maximum of 65 mph or limiting the vehicle to 70 mph with the use of adaptive cruise control and automatic emergency braking. The Department of Transportation should conduct a recurring five-year review of speed-governing regulations to ensure that the regulations are appropriate and consistent with currently deployed technologies. Although TCA does not have a position on setting speed limiters or engine control modules (ECMs) for passenger vehicles, it recommends states consider setting the speed limiters on the vehicles of drivers with certain driving convictions.” Chris Spear, president of the American Trucking Associations (ATA), said the ATA supports FMCSA’s proposal. “ATA is pleased that the Federal Motor Carrier Safety Administration is pursuing a constructive, data-driven approach to the issue of truck speed limiters in its latest proposal,” Spear wrote in a news release. “We intend to thoroughly review FMCSA’s proposal, and we look forward to working with the agency to shape a final rule that is consistent with our policy supporting the use of speed limiters in conjunction with numerous other safety technologies,” he said. There are some companies that have been using speed limiters on their rigs for years. Walmart, for example, sets the top speed of its rigs at 65 mph. Gary Garrison, president of Allstar Fuel, which operates a dozen 18-wheelers and a handful of bobtail trucks out of fuel outlets in the Texas cities of Plainview, Graham and Wichita Falls, recently told MyPlainView.com that one of the main reasons for speed limiters is safety. “If you are involved in collisions, the slower speed does have a safety element,” he said, adding that accident avoidance is increased as slower speeds as well. But “maybe the bigger reason is fuel conservation,” Baker added of Walmart’s 65 mph max. According to the U.S. Department of Energy website, gas mileage usually decreases rapidly at speeds above 60 mph. “You can assume that each 5 mph you drive over 60 mph is like paying an additional $0.29 per gallon for gas,” the website states. Fleet driver Sandy Griffin, who works for a company she preferred not to name, has been dealing with speed limiters for the past several years. “It took some getting used to, for sure,” Griffin said. “Ours are set to 65, so it does make it harder to pass vehicles when you need to. It takes a little extra planning. Overall, I don’t mind it, though.” Other drivers scoffed at the thought of speed limiters. “I’d quit,” said truck driver Ray Simmons, who lives in Arkansas and works for a company that does not have speed limiters in its rigs. “Nobody should tell me how to drive this rig. If I am driving a rig for you, I am a professional driver. Let me do my own thing,” he continued. “They ain’t out there on the road with me. I am out there, and I don’t need anybody telling me how to drive.” Independent owner-operator C. Jenkins, who lives in Tennessee and has a small fleet of dry vans, said the government is overreaching. “This is just too much,” Jenkins said. “You got big Washington people who think they know how to drive these trucks. Hell, they can’t even start one, much less drive one. Yet they are gonna tell us how to run on the highway? It’s crap man. Total crap.” HOW FMCSA RULES ARE SET First, an advanced notice of proposed rulemaking is issued. This is an optional step in which the FMCSA publishes any data it has on the issue at hand and asks for public opinion and comments. The FMCSA may also create a board of affected parties to help the agency craft rules that are agreeable to all parties. Second, the agency publishes the full proposed rule in the Federal Register, which is essentially a government newsletter. In the posting, the FMCSA also includes the reasoning behind the new rule and instructions on how the public can respond with their opinions. Next comes the public comment period, during which private individuals, corporations and trade associations may post input concerning the proposed rule. After that comes the final rule. The FMCSA usually makes minor changes to the proposed rule before it is added to the federal code. The Department of Transportation is then tasked with enforcing it.  

COLUMBUS, Ind. — ACT Research is responding to a recent op-ed piece that ran in a transportation trade publication proclaiming that “the sky is falling” in the transportation industry. According to ACT officials, their staff has received many questions surrounding the issue. “To be fair, for the first time since Q2’20 transportation metrics stopped moving ‘up and to the right’ in Q1,” said ACT President and Senior Analyst Kenny Vieth. “While a mid-2022 deceleration in freight activity and rates has long been anticipated in ACT’s freight market research and the timing of the turn was as anticipated, the magnitude of the correction was considerably larger than expected,” he continued. When asked why he doesn’t think the sky is falling, Vieth explained, “Recognizing the uptick in caution flags, there is still much to like about the current situation. As a result, our forecasts for 2022 and 2023 are virtually unchanged: Carrier profitability, pent-up demand and prebuying remain large forces that should propel the industry into the end of 2023. And, while the risk of stagflation has grown, part of the ‘-flation’ are hot U.S. and Canadian job markets. As well, consumer debt service as a percentage of disposable income is near trough levels and corporate profits are at all-time highs, so there is greater capacity economy-wide to absorb shocks.” Vieth said that on the freight front, there are two points to make. “First, carrier profits were at all-time record levels in 2021, and TL fleet contract rates are still expected to rise double digits this year,” he said. “The second point is used vehicle prices,” he continued. “We are likely near the top, and valuations are likely to fall as freight market constraints ease, but currently used inventories are half their year-ago levels, which will cushion that decline. And, when freight volumes do roll-off, there is considerable high-priced capacity that is likely to exit the market, thereby putting a pretty high floor under freight rates.” The Trucker recently published an article sounding some concerns about the coming months in the trucking industry; however, in that article, Vieth also sought to tamp down the “doom and gloom.” Whether the coming months will be a “bloodbath” or a “shallow correction,” the consensus is that conditions in trucking may get a lot tougher. How bad it gets and how long it lasts will play out in coming months.    

BOISE, Idaho – Carriers are optimistic about growth in volume and rates this year, despite rising fuel and equipment costs that are squeezing profitability, according to the latest Bloomberg | Truckstop.com survey, which polled owner-operators and small fleets. “Bullishness has stayed at a historical high for carriers despite recent spot-market volatility,” Lee Klaskow, senior freight transportation and logistics analyst at Bloomberg Intelligence, said. “The past three months have been a tale of the haves and have-nots when it comes to volume growth. Load growth could trend higher sequentially into May, providing some support to spot rates.” The survey shows: Owner-operators remain optimistic about demand: About 72% of respondents expect load growth over the next six months vs. 71% in 4Q and 1Q a year ago. Temperature-controlled carriers were most optimistic with 77% expecting higher volume, followed by 74% of flatbed carriers who are benefiting from a strong housing market. Fewer carriers are optimistic when looking at rates: About 55% of respondents expect spot rates (ex-fuel surcharges) to rise in the next six months vs. 59% in 4Q. About 14% of carriers expect rates to decline over the next 3-6 six months, in-line with historical averages. Only 2% of truckers polled expect rates to drop quickly this year and another 32% expect them to slowly moderate. More carriers are hauling fewer loads: Truckload spot demand rose 4.3% year-over-year in 1Q, based on the Bloomberg | Truckstop.com survey, a seventh straight quarterly gain after dropping 16% in 2Q20 as the pandemic began. Median volume growth was closer to flat, given the wide divide between those carriers experiencing growth and those not moving as many loads. About 37% of respondents hauled more loads vs. 1Q21. About 32% recorded a drop vs. 25% in 4Q21 as the number of carriers who experienced flat volume decreased to 31% sequentially from 38%. Rising fuel costs are a concern for carriers: About 56% of carriers said that higher fuel costs are the industry’s biggest challenge. Lower rates are the second-biggest concern in 2022 at 21% of the sample, followed by the weakening economy (16%). Despite these concerns, about 69% of those surveyed anticipate the truckload market will remain tight this year. “Carriers polled for this survey remain relatively positive despite the headwinds facing the industry from rising fuel and equipment costs,” Kendra Tucker, chief executive officer at Truckstop.com, said. “We keep carriers’ businesses moving and their bottom line growing by providing them with the technology solutions they need to navigate these industry fluctuations, which is especially crucial during times when the market changes so drastically. The Bloomberg | Truckstop.com survey of owner-operators and small fleets provides timely channel checks into the health of the spot market. The sample size was 126, consisting of dry-van, flatbed, temperature-controlled and specialized/diversified carriers. Of the respondents, 60% operate just one tractor. The complete survey is available to Bloomberg Terminal subscribers via BI.  

CAMDEN, Ark. — Jimmy Quarels has driven a log truck through the winding dirt roads in the thick pinewoods of southern Arkansas for 20 years. During that time, he has mostly had to foot the bill for fuel all on his own. Lately, that bill has been getting higher and higher — by the hundreds of dollars each week. “For the little man like me, it’s bad,” Quarels said. “It’s like everything else right now, there seems to be no send in sight. And what people don’t realize is that this trickles down. Your lumber prices affect your toilet paper, paper plates, pulp — so many things are going to go up because of this.” The average price for a gallon of diesel across the U.S. sat at $5.16 per gallon on Tuesday, with the highest in California at $6.223 a gallon, according to the Energy Information Administration. In March 2020 the national average price for diesel fuel was $2.85 per gallon, and it fell to less than $2.40 as COVID-19 restrictions reduced demand. By March 2021, the average gallon had risen to $3.07. In March 2022 it had risen to $5.25, an increase of more than 71%. Benchmark U.S. crude oil for June delivery rose $3.16 to $101.70 a barrel Tuesday. Brent crude for June delivery rose $2.67 to $104.99 a barrel. Crude oil is down more than $20 a barrel, or a decline of almost 20%, from its March peak. But prices at the pumps still remain high. The reasons are a complicated mix of global politics.  The Russian invasion of Ukraine hasn’t helped the global price of petroleum. Russia supplies roughly 11% of the world’s supply, competing with Saudi Arabia for second place (the U.S. is first). Sanctions designed to deter Russian aggression have pushed diesel prices higher. The machines of war, including tanks, planes and ships, use incredible amounts of petroleum, further tightening world supply. Additionally, demand has been growing faster than supply. It takes time to get drilling rigs out in the field, and it takes time to get the oil flowing. For now, everyone, including truck drivers and trucking companies, are left biting the proverbial bullet. And if fuel prices remain high for an extended period of time, expect consumer prices to increase even more, industry insiders say. “Look around your house or your office. Everything in it, from the food in your fridge to the chair you are sitting in, to the phone or tablet on which you may be reading this article, was brought by a trucker,” wrote Ron Faulkner, president of Faulkner Trucking and the 2022 president of the California Trucking Association, in a Tuesday opinion piece in the Sacramento Bee. “More than 80% of all goods consumed by Californians are delivered exclusively by trucks. If you got it, a truck brought it. And despite much progress on alternative fuels, diesel still fuels 97% of the big rigs on the road today.” Faulkner suggested that California temporarily halt the state’s fuel tax and use money from the general fund to help bolster programs funded by fuel taxes. Several states have already suspended their fuel taxes in an effort to help prices at the pump. “If truckers cannot afford to drive, then goods do not move,” Faulkner wrote. “We have seen what that looks like — shelves empty of paper products and stores running short of needed supplies and groceries.” Back in Arkansas, where Quarles has lived all of his 53 years, Governor Asa Hutchinson has suggested he isn’t in favor of pausing the state’s fuel taxes. He said he’d rather cut checks to all residents out of a tax surplus fund. “Someone’s gotta do something,” Quarles said. “This can’t last the way it is.”

BRENTWOOD, Tenn. — The latest poll taken by the Professional Driver Agency (PDA) shows that the top two most mentioned concerns among truck drivers are equipment and pay. PDA released the data, compiled from thousands of phone calls with professional truck drivers during the first quarter of 2022, on Friday. It was gathered “as part of PDA’s efforts to help trucking companies curb turnover while providing accurate and actionable data to address their drivers’ concerns,” according to a news release. The first quarter of 2022 started off as 2021 ended with the two most mentioned concerns being equipment and compensation issues, according to PDA. “As we saw at the end of 2021, the equipment supply chain issues continue to cause headaches for both carriers and drivers,” said Scott Dismuke, PDA’s vice president of operations. “The new tractor output, supply chain delays for parts and the diesel technician shortage are putting pressure on maintenance departments. Fleets will be aging; drivers will be keeping trucks longer which will likely mean an increase in breakdowns and mechanical issues.” Dismuke noted that PDA data continues to show a correlation between equipment breakdowns and drivers complaining about pay. “PDA data has shown that equipment issues often lead to compensation frustrations for drivers,” Dismuke said. “Drivers that are logging miles while their truck is in the shop is the best way to keep today’s equipment problem from turning into next week’s compensation problem.  Loaners are better than breakdown pay, so if carriers have available trucks, offer them to drivers who are stuck in the shop so they can continue to log miles.” Overall compensation issues remained steady in Q1 at 21%, nearly matching 2021 Q4 totals; however, drivers complaining about their pay rate was up 6% quarter over quarter. Dismuke noted again that the rise in driver feedback regarding pay rate has coincided with the increase in equipment issues. “Industry-wide pay raises continue, but as we’ve noted drivers are spending more time in the shop and they aren’t making what they’ve been promised,” Dismuke said. “If a driver isn’t making what was promised, they have multiple options to go elsewhere in this driver market.” Operations issues were the third top issue for the seventh straight quarter, remaining steady at 13%, equal to where it was in Q4 of 2021. Driver feedback about operations continues to center on driver manager communication issues which rose 4% from 2021 Q4 to 53% in Q1. “Communication issues accounted for more than half of the driver feedback regarding operations in Q1,” Dismuke said. “We’ve continued to see the communication issue on the rise the last several quarters.” Dismuke said. “Drivers view communication and respect as the same thing, and respect is about company culture.  Proactive and timely communication and keeping drivers in the loop not only reduces communication issues, but it makes the drivers feel respected while relieving driver frustration.” Finally, in Q1 COVID-19 issues continued to be a concern for drivers, up 9% from totals in Q4 of 2021. Dismuke noted though that most of the COVID concerns came relatively early in Q1 and dropped off significantly near the end of the quarter. “COVID-19 concerns dropped by 26% from January to March as the cases of the Omicron variant also began to drop nationwide,” Dismuke said. To see PDA’s full Q1 Data Download, click here..