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Workers at Mack Trucks go on strike after rejecting tentative contract deal

DETROIT — Union workers at Mack Trucks went on strike Monday, Oct. 9, after voting down a tentative five-year contract agreement that negotiators had reached with the company. The United Auto Workers said 4,000 unionized workers walked out at 7 a.m., adding to labor turmoil in the industry that has ensnared all three big Detroit automakers. With those workers joining picket lines, the total number of UAW members that are on strike now exceeds 30,000 across 22 states, the union said Monday. Union President Shawn Fain said in a letter to Mack parent company Volvo Trucks that 73% of workers voted against the deal in results counted on Sunday. The UAW represents Mack workers in Pennsylvania, Maryland and Florida. Union leaders had reached a tentative agreement on the deal on Oct. 1. UAW Locals 171, 677, 1247, 2301, and 2420 in UAW Region 8 and Region 9 represent workers at Mack Trucks in Macungie and Middletown, Pennsylvania; Hagerstown and Baltimore, Maryland; and Jacksonville, Florida. The deal negotiators had reached with Mack just over a week ago included a 19% pay raise over the life of the contract with 10% upon ratification. There also was a $3,500 ratification bonus, no increase in weekly health care contributions, increased annual lump sum payments for retirees and a $1,000 annual 401(k) lump sum to offset health care costs for employees who don’t get health insurance after retirement. Fain said in his letter to Volvo Trucks’ head of labor relations that employees working early Monday would exit the factories after performing tasks needed to prevent damage to company equipment. Fain wrote that UAW members and workers across the country are seeking their fair share in wages and benefits. The company and union are still apart on work schedules, health and safety, pensions, health care, prescription drug coverage, overtime and other issues, he wrote. The contract may have been sunk by high expectations Fain has set in bargaining with Detroit’s three automakers. In those talks, the UAW has asked for 36% raises over four years, while Ford has offered 23% and the other two firms are at 20%. “I’m inspired to see UAW members at Mack Trucks holding out for a better deal, and ready to stand up and walk off the job to win it,” Fain said in a prepared statement. “The members have the final say, and it’s their solidarity and organization that will win a fair contract at Mack.” Mack Trucks President Stephen Roy said in a statement Sunday night that the company is “surprised and disappointed” that the union chose to strike. The union, he wrote, called the tentative agreement a record for the heavy truck industry. “We trust that other stakeholders also appreciate that our market, business and competitive set are very different from those of the passenger car makers,” the statement said. Mack, he wrote, is part of the only heavy truck manufacturing group that assembles all of its vehicles and engines for North America in the U.S., competing against trucks built in lower-cost countries. The company is committed to collective bargaining and is confident both sides will reach a deal that delivers competitive wages and benefits while safeguarding the company’s future, the statement said. The UAW went on strike at selected factories run by automakers General Motors, Ford and Jeep maker Stellantis on Sept. 15. It started with one assembly plant for each company, then spread to 38 GM and Stellantis parts warehouses. Two additional assembly plants at Ford and GM were added later. On Friday, the union decided not to expand the strikes to any more plants for the time being after GM agreed to bring its electric vehicle battery factories into the UAW’s national contract, assuring that they’ll be unionized. The union also reported progress with all three automakers.

US transportation unemployment on the rise

WASHINGTON — The unemployment rate in the U.S. transportation sector was 4.9% (not seasonally adjusted) in September 2023, according to Bureau of Labor Statistics (BLS). In September 2023, the transportation sector unemployment rate rose 0.6 percentage points from 4.3% in September 2022 and was above the pre-pandemic September 2019 level of 3.3%. Unemployment in the transportation sector reached its highest level during the COVID-19 pandemic (15.7%) in May 2020 and July 2020. Unemployment in the transportation sector was higher than overall unemployment. BLS reports that the U.S. unemployment rate, not seasonally adjusted, in September 2023 was 3.6% or 1.3 percentage points below the transportation sector rate. Seasonally adjusted, the U.S. unemployment rate in September 2023 was 3.8%. Seasonally adjusted, employment in the transportation and warehousing sector rose to 6,702,400 in September 2023 — up 0.1% from the previous month but down 0.3% from September 2022. Employment in transportation and warehousing grew 17.4% in September 2023 from the pre-pandemic September 2019 level of 5,709,200. By mode, the seasonally adjusted numbers are: Air transportation rose to 552,200 in September 2023 — up 0.9% from the previous month and up 7.6% from September 2022. Truck transportation rose to 1,584,500 in September 2023 — up 0.6% from the previous month but down 0.9% from September 2022. Transit and ground passenger transportation fell to 433,800 in September 2023 — down 1.2% from the previous month but up 4.2% from September 2022. Rail transportation rose to 150,400 in September 2023 — up 0.1% from the previous month and up 2.2% from September 2022. Water transportation fell to 68,700 in September 2023 — down 0.1% from the previous month but up 4.2% from September 2022. Pipeline transportation rose to 48,500 in September 2023 — up 0.8% from the previous month and up 0.6% from September 2022. Warehousing and storage fell to 1,884,100 in September 2023 — down 0.2% from the previous month and down 3.3% from September 2022.

Safety organizations announce support of proposed Truck Parking Safety Improvement Act

WASHINGTON — Two safety organizations have written a letter of support to Congress regarding the Truck Parking Safety Improvement Act. The Institute for Safer Trucking and Road Safe America sent a joint letter on Oct. 2 in favor of the proposed legislation. “As organizations committed to promoting truck safety, we are writing to express our strong support for the Truck Parking Safety Improvement Act,” the letter states. “We believe that this legislation is an important step toward improving the safety and well-being of commercial truck drivers, as well as other road users.” On Tuesday, May 23, the House Committee on Transportation and Infrastructure passed an amended version of the act by a vote of 60-4. Known officially as HR2367, the parking act would provide $755 million over three years to expand truck parking capacity. The next step will be markup hearings before a bill moves to the full House for a vote. “The shortage of safe and accessible truck parking spaces is a significant problem that affects drivers across the country,” according to the letter. “The lack of available parking spaces can force drivers to park in unsafe and illegal locations, such as highway shoulders and off-ramps. This creates a dangerous situation for both the truck drivers themselves and other road users.” The Truckload Carrier’s Association (TCA) said it applauds the proposed act. “This positive outcome represents a significant step forward in enhancing driver safety, ensuring compliance with federal regulations and improving the operational efficiency of the trucking industry,” according to a TCA statement. Currently, the trucking industry is facing a critical shortage of parking spaces, with a ratio of just one parking spot for every 11 drivers, according to the TCA. “This legislation highlights the Committee’s dedication to resolving the persistent challenge of truck parking shortages, which have long posed safety risks and hindered the productivity of supply chains,” the TCA said in its statement. “Adequate truck parking facilities allow drivers to take necessary rest breaks, comply with federal Hours of Service regulations, and effectively manage their schedules, leading to increased efficiency and improved road safety for all.” Independent Owner-Operator Independent Drivers Association President and CEO Todd Spencer also lauded the committee’s approval of the parking act. “OOIDA and our 150,000 members thank lawmakers from both parties who came together to advance this critical bill through the committee, and we encourage the U.S. Senate to follow their lead by stepping up to address American truckers’ top safety concern,” Spencer said. Over at the American Trucking Associations (ATA), President and CEO Chris Spear pointed to the parking act and several other pieces of legislation as positive measures for the trucking industry. “The comprehensive and bipartisan bills that advanced today would address some of the root causes of ongoing supply chain challenges and improve the overall safety, efficiency and resiliency of freight transportation,” Spear said. “ATA has repeatedly engaged with Congress to discuss persistent challenges facing our industry, and we thank Chairman Graves for his attention to these issues and for his leadership of today’s markup. We also commend the bill sponsors who worked with us and other key stakeholders to craft solutions that would benefit our industry, the economy, and American consumers.” The Institute for Safer Trucking and Road Safe America letter concluded by saying, “If we are truly going to improve safety throughout the trucking industry, it is essential to prioritize the safety and wellbeing of commercial truck drivers. By providing safe and accessible truck parking facilities, we can help ensure that drivers can rest and recharge. This will not only improve safety in the short term by reducing crashes, but it will also improve it in the long term. By improving truck drivers’ experiences on the road, the industry can improve retention of safe, experienced drivers.”  

CVSA’s Operation Safe Driver Week nets thousands of violations

WASHINGTON — Law enforcement officers in Canada and the U.S. initiated 11,448 traffic stops of commercial motor vehicle drivers and passenger vehicle drivers who were engaging in unsafe driving behaviors during the Commercial Vehicle Safety Alliance’s (CVSA) Operation Safe Driver Week traffic-enforcement and safe-driving awareness and educational initiative. From July 10-16, officers issued 4,494 tickets/citations and 5,756 warnings to drivers — commercial motor vehicle and passenger vehicle drivers combined, according to a news release. A total of 4,592 warnings and 2,634 tickets/citations were given to commercial motor vehicle drivers, and officers issued 1,164 warnings and 1,860 tickets/citations to passenger vehicle drivers. Speeding, the focus area for this year’s Operation Safe Driver Week, was a top infraction for commercial motor vehicle drivers and passenger vehicle drivers. Commercial motor vehicle drivers received 1,594 warnings and 731 tickets/citations, and passenger vehicle drivers received 625 warnings and 1,293 citations/tickets for speed-related infractions. Combined, a total of 2,219 warnings and 2,024 citations/tickets were issued for speeding. Speeding accounts for nearly one-third of all fatalities on roadways. According to the U.S. National Highway Traffic Safety Administration (NHTSA), speeding-related fatalities increased 8% from 2020 to 2021, with 12,330 people killed in 2021 in speeding-related crashes, representing 29% of all traffic fatalities in 2021. And Transport Canada states that speeding/driving too fast accounted for 25.3% of all fatal roadway crashes in Canada in 2020. Drivers were given warnings or issued tickets/citations for “other state/local driver violations,” which was the No. 1 reason for tickets/citations for commercial motor vehicle drivers and No. 2 for passenger vehicle drivers during this year’s Operation Safe Driver Week. “Other state/local driver violations” include such violations as no registration certificate, no proof of insurance, size and weight violations, defective equipment, etc., which are violations officers usually discover after they have pulled over a driver for another infraction. A total of 1,634 warnings and 1,119 tickets/citations were issued for other state/local driver violations. By driver type, 1,357 warnings and 859 tickets/citations were given to commercial motor vehicle drivers. Passenger vehicle drivers were given 277 warnings and 260 tickets/citations. Another top unsafe driving behavior identified during Operation Safe Driver Week was failure to wear a seat belt. A total of 512 warnings and 553 tickets/citations were issued. Commercial motor vehicle drivers received 455 warnings and 467 tickets/citations for not wearing their seat belt. According to the U.S. Federal Motor Carrier Safety Administration, an estimated 14% of commercial motor vehicle drivers do not wear their seat belt. In 2020 alone, nearly half of all large truck occupants not wearing a seat belt in crashes died. Passenger vehicle drivers received 87 warnings and 130 tickets/citations for texting/using a handheld device while behind the wheel. NHTSA’s 2023 report states that 3,522 people were killed and an estimated 362,415 people were injured in crashes involving distracted drivers in the U.S. A total of 5% of all drivers involved in fatal traffic crashes in 2021 were reported as distracted at the time of their crash. In Canada, in 2020, 21% of road fatalities involved distraction. Drivers talking on mobile devices increased from 2.3% in 2012-2013 to 2.9% in 2016-2017, and texting increased from 1.6% to 2.2% during the same period. Commercial motor vehicle drivers received 156 warnings and 132 tickets/citations for texting/using a handheld device while operating a commercial motor vehicle. The U.S. Department of Transportation restricts the use of all hand-held mobile devices by commercial motor vehicle drivers. Research shows that the odds of being involved in a safety-critical event (e.g., crash, near-crash, unintentional lane deviation) are six times greater for commercial motor vehicle drivers who engage in dialing a mobile phone while driving than for those who do not. Using a mobile device while driving is not only dangerous because it risks lives, it also may result in fines, penalties or driver disqualification and may impact the motor carrier’s Safety Measurement System results. Failure to obey a traffic-control device was a top five warning and ticket/citation for both driver types. A total of 715 warnings and 320 tickets/citations were given to commercial motor vehicle and passenger vehicle drivers combined. Thirty warnings and 24 tickets citations were given to passenger vehicle (PV) drivers for not obeying a traffic-control device; commercial motor vehicle (CMV) drivers received 685 warnings and 296 tickets/citations. Thirty-eight U.S. states and Canadian provinces participated in this year’s Operation Safe Driver Week, a voluntary jurisdictional traffic-enforcement and educational campaign that aims to reduce crashes on our roadways by improving the driving behaviors of all drivers – commercial motor vehicle and passenger vehicle – through interactions with law enforcement via traffic stops and scheduled educational opportunities. Officers in Canada issued 101 warnings and 357 tickets/citations to passenger vehicle drivers, and 263 warnings and 376 citations/tickets to commercial motor vehicle drivers.

Class 8 truck order season kicks off with more than 36k units, ACT reports

COLUMBUS, Ind. — September preliminary North American Class 8 net orders were 36,800 units, up 67% month-over-month, reflecting the strongest order month in the past year, according to ACT Research. Classes 5-7 net orders were more trend-like, rising 13% month-over-month to 23,100 units. Complete industry data for September, including final order numbers, will be published by ACT Research in mid-October. “Between reports of falling carrier income and margins, still sloshy load-to-truck ratios, weak spot rates reported by DAT, and a sense over the past six weeks or so that the US economy’s year-to-date outperformance was starting to lose some momentum, we were unsure how the market would respond when the 2024 orderboards officially opened,” said Kenny Vieth, ACT’s president and senior analyst. “One thing we did know was that nearly all the August-ending Class 8 backlog was scheduled for build in 2023, so strong orders are imperative for the industry to maintain current strong production rates very far into 2024.” Vieth added that “while it is too early to infer much from September orders, data from the OEMs confirm the ‘season’ started on the right foot.”

Diesel prices continue upward trend around much of US

LITTLE ROCK, Ark. — Diesel fuel prices are on the rise once again this week — at least in most areas of the nation. According to the Energy Information Administration (EIA), the average price for a gallon of diesel fuel around the U.S. sits at $4.593 as of Oct. 2. That’s up from $4.586 on Sept. 25. There were some areas of the nation that saw declines in prices, however. In the Central Atlantic region, prices fell from $4.764 on Sept. 25 to $4.759 on Oct. 2, according the EIA. The Gulf Coast region also saw a slight decrease as well, with the price falling from $4.281 on Sept. 25 to $4.279 on Oct. 2. The Rocky Mountain region saw prices drop from $4.801 on Sept. 25 to $4.778 on Oct. 2, and the West Coast (minus California) saw prices decline from $5.229 on Sept. 25 to $5.190 on Oct. 2. Oil prices have risen, meaning drivers are paying more for gasoline and truckers and farmers more for diesel. Above all, Saudi Arabia’s decision to cut back how much oil it sends to global markets has pushed prices higher. The world’s second-largest oil supplier has slashed production by 1 million barrels a day since July and decided this month to extend the cut through the end of the year. Russia, Saudi Arabia’s ally in the OPEC+ oil producers’ coalition, also extended its own cut of 300,000 barrels a month through 2023. Simply, tighter supply means higher prices. International benchmark Brent oil traded at just under $94 per barrel Monday, up from $90 before the extension on Sept. 5 and from $74 before the Saudi cut was first announced. U.S. oil traded at around $90.50, up from $68 before the Saudi cut. Some analysts think oil could hit $100 a barrel based on robust demand and limited supply. But that’s far from the only view. Oil prices can be volatile, and while they might briefly top $100 in the coming months, they’re unlikely to stay there, said Jorge Leon, senior vice president for oil markets at Rystad Energy. He foresees prices in the low $90s on average in the last three months of the year. That’s still high historically, he said, supported by “resilient” demand for fuel to drive and fly. The Saudi cuts were a unilateral move outside the framework of the OPEC+ alliance, meaning the kingdom can make changes as needed to quickly respond to shifting market conditions. Leon said the Saudis will review the cuts each month — and could add barrels back if prices spike to levels that could seriously worsen inflation in countries buying oil. Excessive price increases could mean central banks worldwide hike interest rates further or keep them higher for longer. “I don’t think it will be clever for the Saudis to push that hard,” Leon said. “The last thing you want to do is fuel inflation again with much higher oil prices. That’s going to kill economic growth, and lower growth is going to mean lower oil demand at the end of the day.” The Associated Press contributed to this report.

Illinois ammonia truck crash kills 5, forces temporary evacuation

SPRINGFIELD, Ill. — The tanker truck crash in central Illinois that killed five people may have started when another vehicle tried to pass the chemical-laden truck, a federal transportation official said Sunday. The tanker truck was carrying caustic anhydrous ammonia when it jackknifed Friday night, and hit a utility trailer parked just off the highway, according to Tom Chapman, a member of the National Transportation Safety Board. The tank carrying anhydrous ammonia hit the trailer hitch of the other vehicle, which punched a six-inch hole in the chemical container, Chapman said during news conference Sunday. Chapman said the tanker truck’s driver pulled to the right and ran off the road as it traveled west on U.S. 40 in Teutopolis, a small community about 110 miles northeast of St. Louis. “It happened in a relatively short period of time,” Chapman said. “This was a rapid sequence of events.” The accident occurred about 8:40 p.m. local time, Chapman said, revising the 9:25 p.m. time authorities originally gave. The crash spilled roughly half the truck’s 7,500 gallon load. The rest was drained and moved to a “secure location” for the NTSB’s investigation, authorities said late Saturday, as area residents were allowed to return to their homes after being evacuated. Effingham County Coroner Kim Rhodes said the five dead included three from the same family: one adult and two children under 12. The other two were adult motorists from out of state, Rhodes said. Additionally, five people were airlifted to hospitals, their conditions unknown. Names of the victims were not released, nor would authorities discuss causes of death. About 500 residents within a 1-mile  radius of the crash site were evacuated after the accident, including northeastern parts of Teutopolis. Emergency crews worked overnight after the accident on Friday trying to control the plume from the leak and struggled to get near the crash site. Private and federal environmental contractors were summoned to recommend a cleanup procedure in Teutopolis, a town of 1,600 people. The accident caused “a large plume, cloud of anhydrous ammonia on the roadway that caused terribly dangerous air conditions in the northeast area of Teutopolis,” Effiningham County Sheriff Paul Kuhns said. “Because of these conditions, the emergency responders had to wait. They had to mitigate the conditions before they could really get to work on it, and it was a fairly large area.” Although not strong, crews working overnight struggled against shifting wind. “The wind changed three or four different times on us,” said Tim McMahon, chief of the Teutopolis Fire Protection District. “That’s another reason we got crews out in different places, reporting back on which way the wind’s going.” Traffic, including the tanker, was pushed onto U.S. 40, which bisects Teutopolis, earlier Friday because of another truck crash on Interstate 70. Phillip Hartke, 75, who lives in Teutopolis but farms with his son outside of town, said U.S. 40 was jammed after the I-70 closure. Hartke finished harvesting corn about 9:30 p.m. Driving home, as he neared the center of town, he could smell anhydrous ammonia. When he reached U.S. 40, emergency vehicles swarmed the area. “Firefighters advised us right there: ‘Evacuate to the west,’” Hartke said. Hartke estimated 85% of Teutopolis was subject to the evacuation. He and his wife were staying with his son. Such familial ties should serve most evacuees well. “‘T-Town’ is a tight-knit community,” Hartke said. “Many people have sons and daughters, aunts and uncles within five or six miles of town.” Anhydrous ammonia is used by farmers to add nitrogen fertilizer to the soil and as a refrigerant in the cooling systems of large buildings such as warehouses and factories. According to the American Chemical Society, it is carried around the United States by pipeline, trucks and trains. In 2019, dozens of people were sickened in suburban Chicago after the valves were left open on tanks of anhydrous ammonia being transported from a farm in Wisconsin to one in Illinois, creating a toxic gas cloud. Seven people were initially hospitalized in critical condition after a leaking anhydrous ammonia tank pulled by a tractor released the plume over Beach Park. And in 2002, a train derailment released anhydrous ammonia in Minot, North Dakota, killing one man, and hundreds of other people reported injuries including burns and breathing problems. “It’s terrible. It’s bad stuff if you are involved in breathing it, especially because it gets in your airways, in your lungs, and it burns,” Kuhns said. In addition to having a commercial driver’s license, the person behind the wheel of a toxic-substance tanker must study further and successfully complete a test for a hazardous material endorsement, said Don Schaefer, CEO of the Mid-West Truckers Association. “Once you get that endorsement, there are no restrictions — unless otherwise posted — on hauling hazardous materials on a public highway,” Schaefer said. “But you’re subject to higher scrutiny.”

Government shutdown averted with little time to spare 

WASHINGTON — The threat of a federal government shutdown suddenly lifted late Saturday as President Joe Biden signed a temporary funding bill to keep agencies open with little time to spare after Congress rushed to approve the bipartisan deal. The package drops aid to Ukraine, a White House priority opposed by a growing number of GOP lawmakers, but increases federal disaster assistance by $16 billion, meeting Biden’s full request. The bill funds government until Nov. 17. After chaotic days of turmoil in the House, Speaker Kevin McCarthy abruptly abandoned demands for steep spending cuts from his right flank and instead relied on Democrats to pass the bill, at risk to his own job. The Senate followed with final passage closing a whirlwind day at the Capitol. “This is good news for the American people,” Biden said in a statement. He also said the United States “cannot under any circumstances allow American support for Ukraine to be interrupted” and expected McCarthy “will keep his commitment to the people of Ukraine and secure passage of the support needed to help Ukraine at this critical moment.” It’s been a sudden head-spinning turn of events in Congress ahead of the midnight funding deadline after grueling days in the House pushed the government to the brink of a disruptive federal shutdown. The outcome ends, for now, the threat of a shutdown, but the reprieve may be short-lived. Congress will again need to fund the government in coming weeks risking a crisis as views are hardening, particularly among the right-flank lawmakers whose demands were ultimately swept aside this time in favor of a more bipartisan approach. “We’re going to do our job,” McCarthy, R-Calif., said before the House vote. “We’re going to be adults in the room. And we’re going to keep government open.” If no deal was in place before Sunday, federal workers would have faced furloughs, more than 2 million active-duty and reserve military troops would have had to work without pay and programs and services that Americans rely on from coast to coast would have begun to face shutdown disruptions. “It has been a day full of twists and turns, but the American people can breathe a sigh of relief: There will be no government shutdown,” said Senate Majority Leader Chuck Schumer, D-N.Y. The package funds government at current 2023 levels until mid-November, and also extends other provisions, including for the Federal Aviation Administration. The package was approved by the House 335-91, with most Republicans and almost all Democrats supporting. Senate passage came by an 88-9 vote. But the loss of Ukraine aid was devastating for lawmakers of both parties vowing to support President Volodymyr Zelenskyy after his recent Washington visit. The Senate bill included $6 billion for Ukraine, and both chambers came to a standstill Saturday as lawmakers assessed their options. “The American people deserve better,” said House Democratic leader Hakeem Jeffries of New York, warning in a lengthy floor speech that “extreme” Republicans were risking a shutdown. For the House package to be approved, McCarthy was forced to rely on Democrats because the speaker’s hard-right flank has said it will oppose any short-term funding measure, denying him the votes needed from his slim majority. It’s a move that is sure to intensify calls for his ouster. After leaving the conservative holdouts behind, McCarthy is almost certain to be facing a motion to try to remove him from office, though it is not at all certain there would be enough votes to topple the speaker. Most Republicans voted for the package Saturday while 90 opposed. “If somebody wants to remove me because I want to be the adult in the room, go ahead and try,” McCarthy said of the threat to oust him. “But I think this country is too important.” The White House was tracking the developments on Capitol Hill and aides were briefing the president, who was spending the weekend in Washington. Senate Republican leader Mitch McConnell, who has championed Ukraine aid despite resistance from his own ranks, is expected to keep pursuing U.S. support for Kyiv in the fight against Russia. “I have agreed to keep fighting for more economic and security aid for Ukraine,” McConnell, R-Ky., said before the vote. Late at night, the Senate stalled when Sen. Michael Bennet, D-Colo., held up the vote, seeking assurances Ukraine funds would be reconsidered. “I know important moments are like this, for the United States, to lead the rest of the world,” Bennet said, noting his mother was born in Poland in 1938 and survived the Holocaust. “We can’t fail.” The House’s quick pivot comes after the collapse Friday of McCarthy’s earlier plan to pass a Republican-only bill with steep spending cuts up to 30% to most government agencies and strict border provisions that the White House and Democrats rejected as too extreme. A faction of 21 hard-right Republican holdouts opposed it. “Our options are slipping away every minute,” said one senior Republican, Rep. Mario Diaz-Balart of Florida. The federal government had been heading straight into a shutdown that posed grave uncertainty for federal workers in states all across America and the people who depend on them — from troops to border control agents to office workers, scientists and others. Families that rely on Head Start for children, food benefits and countless other programs large and small were confronting potential interruptions or outright closures. At the airports, Transportation Security Administration officers and air traffic controllers had been expected to work without pay, but travelers could have faced delays in updating their U.S. passports or other travel documents. The White House has brushed aside McCarthy’s overtures to meet with Biden after the speaker walked away from the debt deal they brokered earlier this year that set budget levels. Catering to his hard-right flank, McCarthy had made multiple concessions including returning to the spending limits the conservatives demanded back in January as part of the deal-making to help him become the House speaker. But it was not enough as the conservatives insisted the House follow regular rules, and debate and approve each of the 12 separate spending bills needed to fund the government agencies, typically a months-long process. In the Senate, all the no votes against the package came from Republicans. McCarthy’s chief Republican critic, Rep. Matt Gaetz of Florida, has warned he will file a motion calling a vote to oust the speaker. Some of the Republican holdouts, including Gaetz, are allies of former President Donald Trump, who is Biden’s chief rival in the 2024 race. Trump has been encouraging the Republicans to fight hard for their priorities and even to “shut it down.” At an early closed-door meeting at the Capitol, several House Republicans, particularly those facing tough reelections next year, urged their colleagues to find a way to prevent a shutdown. “All of us have a responsibility to lead and to govern,” said Republican Rep. Mike Lawler of New York. The lone House Democrat to vote against the package, Rep. Mike Quigley of Illinois, the co-chair of the Congressional Ukraine Caucus, said, “Protecting Ukraine is in our national interest.”  

Government shutdown would negatively impact transportation safety, NTSB chief says

WASHINGTON — National Transportation Safety Board (NTSB) Chair Jennifer Homendy is sounding the alarm about how a government shutdown would affect the transportation industry. In a news release issued on Thursday, Sept. 28, Homendy said that she is especially concerned about how a shutdown could impact highway safety. “In just six months, 19,515 people died on U.S. roads,” she said, citing a newly-released federal report on the issue. “It is a cause for outrage, not celebration, even if the numbers are trending in the right direction. We still lost thousands more people than we did in the same period before the pandemic, when the death toll was already unacceptably high. Adding to the heartbreak is that these 19,515 deaths were preventable: eliminating traffic violence starts with implementing NTSB recommendations, which align with the Safe System approach.” She added that a shutdown “would bring to a screeching halt our agency’s ability to advocate for the safety measures needed to achieve zero deaths. Our nation cannot afford to lose the small safety gains we have achieved on our roads, as reflected in the data released today.” Agencies such as the Federal Motor Carrier Safety Administration and NTSB are supposed to remain open in the event of a shutdown. “FMCSA positions are primarily funded by authorized contract authority and paid out of the Highway Trust Fund and liquidated with cash appropriated by annual appropriations,” FMCSA’s shutdown plan states. “Although FMCSA positions are mostly funded from the Highway Trust Fund, FMCSA collects fees under its Licensing and Insurance function and Drug and Alcohol Clearinghouse, which are made available to support the programs.” The NTSB is also funded though the Highway Trust Fund. Officials at TopMark Funding, an agency that trucking industry members with money to help their businesses grow, have outlined some of the effects a government shutdown could have on big rig operators. Projects that are expected to pay dividends over many years may be put on hold until the federal government reaches a resolution, according to TopMark. This would include programs intended to put more truckers on the road and help expand the industry, or provide more parking from the federal government. “To summarize, a trucker working his typical shift will likely notice no change at all, but people who are hoping to enter the industry with the help of the federal government and states that receive funding from the federal government to help support the state departments of transportation may find themselves stumbling for a few days as this all gets sorted,” according to TopMark. In a period where “supply chain shortages” is common nomenclature within the trucking industry, having a partial government shutdown can still throw a wrench in things, but much like with the COVID-19 pandemic, the true economic fallout stemming from it would not be felt until months and years after the event transpires. A possible government shutdown looms large over the entire nation. House Speaker Kevin McCarthy dug in Thursday, vowing he will not take up Senate legislation designed to keep the federal government fully running beyond Sept. 30 despite House Republicans’ struggle to unite around an alternative. Congress is at an impasse just days before a disruptive federal shutdown that would halt paychecks for many of the federal government’s roughly 2 million employees, as well as 2 million active-duty military troops and reservists, furlough many of those workers and curtail government services. But the House and Senate are pursuing different paths to avert those consequences even though time is running out before government funding expires after midnight on Saturday. “I still got time. I’ve got time to do other things,” McCarthy told reporters Thursday evening at the Capitol, adding, “At the end of the day, we’ll get it all done.” The Senate is working toward passage of a bipartisan measure that would fund the government until Nov. 17 as longer-term negotiations continue, while also providing $6 billion for Ukraine and $6 billion for U.S. disaster relief. The House, meanwhile, took up four of the dozen annual spending bills that fund federal agencies. Republicans were heartened as they passed three bills that would fund the Department of Defense, Department of Homeland Security and State Department, though the fourth bill to fund federal agriculture programs failed. In one sign of deepening resistance to assisting Ukraine, more than half the House Republicans voted against providing Ukraine $300 million in military aid, though the money was approved on a bipartisan 311-117 vote. The House’s movement on the appropriations legislation won’t keep the government from shutting down, but leadership hoped the progress would cajole enough Republicans to support a House-crafted continuing resolution that temporarily funds the government and boosts security at the U.S. border with Mexico. It’s a long shot, but McCarthy predicted a deal. Lawmakers, already weary from days of late-night negotiating, showed signs of strain at McCarthy’s closed-door meeting with Republicans Thursday morning. It was marked by a tense exchange between the speaker and Rep. Matt Gaetz, R-Fla., according to those in the room. Gaetz, who has taunted McCarthy for weeks with threats to oust him from his post, confronted the speaker about conservative online influencers being paid to post negative things about him. McCarthy shot back that he wouldn’t waste his time on something like that, Gaetz told reporters as he exited the meeting. McCarthy’s allies left the meeting fuming about Gaetz’s tactics. With his majority splintering, McCarthy is scrambling to come up with a plan for preventing a shutdown and win Republican support. The speaker told Republicans he would reveal a Republican stopgap plan, known as a continuing resolution or CR, on Friday, according to those in the room, while also trying to force Senate Democrats into giving some concessions. But with time running out, many GOP lawmakers were either withholding support for a temporary measure until they had a chance to see it. Others are considering joining Democrats, without McCarthy’s support, to bring forward a bill that would prevent a shutdown. With his ability to align his conference in doubt, McCarthy has little standing to negotiate with Senate Democrats. He has also attempted to draw President Joe Biden into negotiations, but the White House, so far, has shown no interest. Biden sought to apply more pressure on McCarthy, urging him to compromise with Democrats even though that could threaten his job. “I think that the speaker is making a choice between his speakership and American interests,” Biden said. Senate Majority Leader Chuck Schumer, D-N.Y., said Congress and the White House had already worked out top-line spending levels for next year with an agreement this summer that allowed the government to continue borrowing to pay its bills. But McCarthy was deviating from that deal and courting a shutdown by catering to Republicans who say it didn’t do enough to cut spending, he said. “By focusing on the views of the radical few instead of the many, Speaker McCarthy has made a shutdown far more likely,” Schumer said. McCarthy insisted in a CNBC interview that the House will have its say. “Will I accept and surrender to what the Senate decides? The answer is no, we’re our own body.” But later at the Capitol, he openly complained about the difficulty he is having herding Republican lawmakers. “Members say they only want to vote for individual bills, but they hold me up all summer and won’t let me bring individual bills up. Then they say they won’t vote for a stopgap measure that keeps government open,” McCarthy told reporters. “So I don’t know, where do you go in that scenario?” The speaker also hinted he has a backup plan but gave no indication he was ready to work with Democrats to pass something in the House. Meanwhile, the White House, as well as the Department of Homeland Security, notified staff on Thursday to prepare for a shutdown, according to emails obtained by The Associated Press. Employees who are furloughed would have four hours on Monday to prepare their offices for the shutdown. The White House plans to keep on all commissioned officers. That includes chief of staff Jeff Zients, press secretary Karine Jean Pierre, national security adviser Jake Sullivan and other senior-level personnel, by declaring them “excepted” during a shutdown, according to the White House email. Military troops and federal workers, including law enforcement officers, air traffic controllers and Transportation Security Administration officers, will also report to work because they are essential to protecting life and property. They would miss paychecks if the shutdown lasts beyond Oct. 13, the next scheduled payday, though they are slated to receive backpay once any shutdown ends. Social Security payments for seniors, Medicare and Medicaid payments to health care providers, and disability payments to veterans will continue, as much of the government will continue to function. But there will be critical services that do stop. For example, the U.S. Treasury says that, with two-thirds of IRS employees potentially furloughed, taxpayer phone calls to the agency will go unanswered and 363 Taxpayer Assistance Centers across the country will close. Many Republicans have voiced fears they would be blamed for a shutdown — including in the Senate, where many GOP members are aligned with Democrats on a temporary bill. Senate Republican leader Mitch McConnell said he agrees with many of the goals of the House Republicans, but he warned a shutdown will not achieve any of them. “Instead of producing any meaningful policy outcomes, it would actually take the important progress being made on a number of key issues and drag it backward,” McConnell said. Nevertheless, Senate Republicans huddled for much of the day to cobble together a plan that could win support to boost funding for border security. McCarthy’s House allies were also hoping the threat of a shutdown could help conservatives with their push to limit federal spending and combat illegal immigration at the U.S-Mexico border. “Anytime you have a stopgap situation like this, you have an opportunity to leverage,” said Rep. Garret Graves, R-La. “This is another opportunity. America does not want an open Southern border. The polls are crystal clear. It’s having a profound impact on us.”  The Associated Press contributed to this report.

Traffic deaths declined 3.3% in the first half of the year, but Fed officials see more work ahead

WASHINGTON — Traffic fatalities dropped 3.3% in the first half of the year compared with the prior-year period, according to the National Highway Traffic Safety Administration. The agency said on Thursday, Sept. 28, that an estimated 19,515 people died in motor vehicle traffic crashes in the first half of 2023. There were 20,190 fatalities in the first half of 2022. Fatalities fell in the first and second quarters of 2023. That marks five straight quarter the figure has declined. The NHTSA estimates a there was a drop in fatalities in 29 states, while 21 states, Puerto Rico and the District of Columbia, are projected to have experienced increases. “While we are encouraged to see traffic fatalities continue to decline from the height of the pandemic, there’s still significantly more work to be done,” NHTSA Acting Administrator Ann Carlson said. “NHTSA is addressing traffic safety in many ways, including new rulemakings for lifesaving vehicle technologies and increased Bipartisan Infrastructure Law funding for state highway safety offices. We will continue to work with our safety partners to meet the collective goal of zero fatalities.” Last year, there were 42,795 people killed on U.S. roadways, which government officials described as a national crisis. Earlier this year, nearly 50 businesses and nonprofits — including rideshare companies Uber and Lyft, industrial giant 3M and automaker Honda — pledged millions of dollars in initiatives to stem road fatalities. The Biden administration in 2022 steered $5 billion in federal aid to cities and localities to address road fatalities by slowing down cars, carving out bike paths and wider sidewalks and nudging commuters to public transit.

ATRI to begin research on challenges facing female truckers

WASHINGTON — The American Transportation Research Institute (ATRI) is initiating research on the challenges facing women truck drivers as well as barriers that discourage women from considering a career as a truck driver. According to a news release, the comprehensive study will also identify strategies for overcoming industry issues faced by women. Previous ATRI research has confirmed that women make up only 8.1 percent of all U.S. truck drivers, and only 2.7% of over-the-road truck drivers. In response, the ATRI Research Advisory Committee prioritized this new women-focused research initiative at its 2023 Annual Meeting. Key components of the research will include: National surveys and focus groups with women who are veteran truck drivers, new entrants, and women who are former truck drivers. In addition, the researchers will engage different groups of women to identify both issues and motivators for women considering careers in trucking. Recognizing that certain fleets have substantially more women drivers than typical fleets, motor carriers will be surveyed and interviewed to identify best practices in recruiting and retaining women truck drivers. Additional outreach will focus on women executives at motor carriers in order to understand issues and opportunities beyond truck driving. Collaborating with truck driver training schools to identify recruitment and training issues unique to women. Research Analyst Abbigail Huffman, who will lead the multi-faceted research for ATRI, invites industry stakeholders who would like to be involved in the research to contact her at [email protected].  

Average US diesel prices decrease for first time in weeks

LITTLE ROCK, Ark. –After nearly 10 weeks, average diesel fuel prices around the nation have dropped. According to the Energy Information Administration, the price sits at $4.586 per gallon, down from $4.633 on Sept. 18. There are three areas in the nation that are seeing prices continuing to rise, however. In New England, the average price rose from $4.587 on Sept. 18 to $4.607 on Sept. 25, and in the Central Atlantic, the average price rose from $4.748 on Sept. 18 to $4.764 on Sept. 25, according to the EIA. In California, which has the highest average price in the nation, diesel rose to $6.208 per gallon on Sept. 25, up from $6.192 on Sept. 18, EIA statistics show. The lowest prices for diesel can be found along the Gulf Coast at $4.281 per gallon. That price is down from $4.352 a gallon on Sept. 18.

During UAW strike, Biden makes history as first sitting US president to visit picket line

VAN BUREN TOWNSHIP, Mich. — President Joe Biden joined United Auto Workers (UAW) strikers on a picket line Tuesday, Sept. 26, as their work stoppage against major carmakers hit day 12, a demonstration of support for organized labor apparently unparalleled in presidential history. “Stick with it,” he told them, exchanging fist bumps with grinning picketers as he walked along the line. “You deserve the significant raise you need,” Biden said through a bullhorn while wearing a union baseball cap after arriving at a General Motors parts distribution warehouse west of Detroit. He encouraged them to continue fighting for better wages despite concerns that a prolonged strike could slow the economy. He said “yes” when asked if UAW members deserved a 40% raise, one of the demands that the union has made. “No deal, no wheels!” workers chanted as Biden arrived. “No pay, no parts!” Biden was joined by UAW President Shawn Fain, who rode with him in the presidential limousine to the picket line. “Thank you, Mr. President, for coming to stand up with us in our generation-defining moment,” said Fain, who described the union as engaged in a “kind of war” against “corporate greed.” “We do the heavy lifting. We do the real work,” Fain said. “Not the CEOs.” Labor historians say they cannot recall an instance when a sitting president has joined an ongoing strike, even during the tenures of the more ardent pro-union presidents such as Franklin Delano Roosevelt and Harry Truman. Theodore Roosevelt invited labor leaders alongside mine operators to the White House amid a historic coal strike in 1902, a decision that was seen at the time as a rare embrace of unions as Roosevelt tried to resolve the dispute. Biden arrived one day before former President Donald Trump, the front-runner for the 2024 Republican nomination, goes to Detroit to hold his own event in an attempt to woo auto workers even though union leaders say he’s no ally. Lawmakers often appear at strikes to show solidarity with unions, and Biden joined picket lines with casino workers in Las Vegas and auto workers in Kansas City while seeking the 2020 Democratic presidential nomination. But sitting presidents, who have to balance the rights of workers with disruptions to the economy, supply chains and other facets of everyday life, have long wanted to stay out of the strike fray — until Biden. “This is absolutely unprecedented. No president has ever walked a picket line before,” said Erik Loomis, a professor at the University of Rhode Island and an expert on U.S. labor history. Presidents historically “avoided direct participation in strikes. They saw themselves more as mediators. They did not see it as their place to directly intervene in a strike or in labor action.” White House press secretary Karine Jean-Pierre told reporters aboard Air Force One en route to Michigan that “Biden is fighting to ensure that the cars of the future will be built in America by unionized American workers in good-paying jobs, instead of being built in China.” Biden’s trip to join a picket line in the suburbs of Detroit is the most significant demonstration of his pro-union bona fides, a record that includes vocal support for unionization efforts at Amazon.com facilities and executive actions that promoted worker organizing. He also earned a joint endorsement of major unions earlier this year and has avoided southern California for high-dollar fundraisers amid the writers’ and actors’ strikes in Hollywood. During the ongoing UAW strike, Biden has argued that the auto companies have not gone far enough, although White House officials have repeatedly declined to say whether the president endorses specific UAW demands such as a 40% hike in wages and full-time pay for a 32-hour work week. “I think the UAW gave up an incredible amount back when the automobile industry was going under. They gave everything from their pensions on, and they saved the automobile industry,” Biden said Monday from the White House. He said workers should benefit from carmakers’ riches “now that the industry is roaring back.” Biden and other Democrats are more aggressively touting the president’s pro-labor credentials at a time when Trump is trying to make inroads in critical swing states where unions remain influential, including Michigan and Pennsylvania. Biden is leaning on his union support at a time when labor enjoys broad support from the public, with 67% of Americans approving of labor unions in an August Gallup poll. The United Farm Workers announced their endorsement of Biden on Tuesday, calling him “an authentic champion for workers and their families, regardless of their race or national origin.” Biden’s campaign manager, Julie Chavez Rodriguez, is the granddaughter of Cesar Chavez, the union’s co-founder. The UAW has not endorsed Biden. Asked about that after landing in Michigan, Biden told reporters, “I’m not worried about that.” Trump is skipping the second Republican primary debate on Wednesday and will meet with striking autoworkers in Michigan, seeking to capitalize on discontent over the state of the economy and anger over the Biden administration’s push for more electric vehicles — a key component of its clean-energy agenda. “If it wasn’t for President Trump, Joe Biden would be giving autoworkers the East Palestine treatment and saying that his schedule was too busy,” said Trump campaign adviser Jason Miller, referring to the small Ohio town that is still grappling with the aftermath of a February train derailment. Biden said he would visit the community but so far has not. White House officials dismissed the notion that Trump forced their hand and noted that Biden was headed to Michigan at the request of UAW President Shawn Fain, who last week invited the sitting president to join the strikers. “He is pro-UAW, he is pro-workers, that is this president,” White House press secretary Karine Jean-Pierre said Monday. “He stands by union workers, and he is going to stand with the men and women of the UAW.” Yet the UAW strike, which expanded into 20 states last week, remains a dilemma for the Biden administration since a part of the workers’ grievances include concerns about a broader transition to electric vehicles. The shift away from gas-powered vehicles has worried some autoworkers because electric versions require fewer people to manufacture and there is no guarantee that factories that produce them will be unionized. Carolyn Nippa, who was walking the picket line Monday at the GM parts warehouse in Van Buren Township, Michigan, was ambivalent about the president’s advocacy for electric vehicles, even as she said Biden was a better president than Trump for workers. She said it was “great that we have a president who wants to support local unions and the working class.” “I know it’s the future. It’s the future of the car industry,” Nippa said of electric vehicles. “I’m hoping it doesn’t affect our jobs.” Still, other pickets remained more skeptical about Biden’s visit Tuesday. Dave Ellis, who stocks parts at the distribution center, said he’s happy Biden wants to show people he’s behind the middle class. But he said the visit is just about getting more votes. “I don’t necessarily believe that it’s really about us,” said Ellis, who argued that Trump would be a better president for the middle class than Biden because Trump is a businessman. The Biden administration has no formal role in the negotiations, and the White House pulled back a decision from the president earlier this month to send two key deputies to Michigan after determining it would be more productive for the advisers, Gene Sperling and acting Labor Secretary Julie Su, to monitor talks from Washington. By Seung Min Kim, Tom Krisher and Chris Megerian, The Associated Press. Krisher reported from Van Buren Township, Michigan. Associated Press writer Jill Colvin in Summerville, South Carolina, contributed to this report.

CargoNet: Cargo thefts rise nearly 60%

JERSEY CITY, N.J. — CargoNet has recorded 582 cargo thefts across the United States and Canada in the second quarter of 2023, a 57% increase when compared to the second quarter of 2022. According to a news release, much of the increase is due to ongoing shipment misdirection attacks, a kind of strategic cargo theft in which actors use stolen motor carrier and logistics broker identities to obtain freight and misdirect it from the intended receiver so they could steal it. In total, thieves stole more than $44 million in shipments in the second quarter of 2023 and the average shipment value per event increased nearly $100,000 to $260,703 per theft as cargo thieves focused on high-value shipments, according to CargoNet. In the second quarter of 2023, theft of a loaded conveyance, such as a full trailer, increased 17% year-over-year. “These kinds of thefts were most common in California, Texas, Florida, and Illinois,” the news release stated. “We also note that regional activity around New York City and Philadelphia was significant. Burglary of a loaded conveyance decreased slightly year-over-year due to the impact of recent law enforcement activity, but still remains a significant threat to shipments especially high-value shipments that are traveling on the I-40 corridor through Arizona, California and New Mexico.” CargoNet is also reporting a significant growth in extortion and theft by conversion schemes, particularly from organized groups in Illinois and California. These groups focus on obtaining shipments from logistics brokers, tacking on extra and often exorbitant fees for various manufactured reasons like overweight tickets or previous rate penalties charged to non-affiliated motor carriers. Criminal enforcement for such cases is complex and rare, which has emboldened organized groups, CargoNet officials noted. Finally, CargoNet recorded 127 more fictitious pickups year-over-year. Fictitious pickups were most common in the Los Angeles area, but fictitious pickups occurred all over the continental United States. Some counties recorded a significant problem due to their local industry like Maricopa County, Arizona, Travis County, Texas, Chambers County, Texas, and DeKalb County, Georgia. Fictitious pickup groups stole shipments from 39 different product categories in the second quarter of 2023, but primarily focused their efforts on a smaller grouping of freight. This includes alcoholic beverages, non-alcoholic beverages, specifically soda and energy drinks, solar power energy generation equipment, along with various kinds of automobile supplies, including auto parts, fluids, oils and tires. “This style of fictitious cargo pickup relies heavily on subcontracting the shipment to a legitimate motor carrier and having the shipment misdirected to another address,” the news release stated. “Logistics brokers and shippers can help prevent fictitious cargo pickups by verifying any bids on shipments with the motor carrier through their contact information on file with the FMCSA and verifying the name of the motor carrier and driver matches who the shipment was tendered to. Motor carriers should be wary of new customers that want them to haul a blind shipment delivering to an address different from the bill of lading, especially if the address is a public warehouse or cross dock in California.”

California truckers ask governor to sign job-saving bill as self-driving big rigs are tested 

SACRAMENTO, Calif. — California lawmakers, union leaders and truck drivers are trying to steer Democratic Gov. Gavin Newsom toward signing into law a proposal that could save jobs as self-driving trucks are tested for their safety on the roads.  The legislation would ban self-driving trucks weighing more than 10,000 pounds (4,536 kilograms) — which would include vehicles from UPS delivery trucks to massive semi-trucks — from operating on public roads unless a human driver is on board. Proponents of the bill say it would help address concerns about safety and losing truck driving jobs to automation in the future. Under the bill, the rules would be in effect until at least 2029.  Republican Assemblymember Tom Lackey, one of the bill’s co-authors, said lawmakers aren’t “against technology,” but they see the bill as a safer way for companies to test self-driving trucks.  “We want balance because we believe in people, and we believe in public safety,” Lackey said. “When surprises happen, physics is not your friend.”  The bill coasted through the Legislature with few lawmakers voting against it. It’s part of ongoing debates about the potential risks of self-driving vehicles and how workforces adapt to a new era as companies deploy technologies to do work traditionally done by humans.  Newsom, who typically enjoys strong support from labor, is facing some pressure from within his administration not to sign it. He has until Oct. 14 to make a decision. His administration’s Department of Finance projected it would cost the state about $1 million annually to implement the bill’s requirements, and his Office of Business and Economic Development says it would push companies making self-driving technologies to move out-of-state.  “Our state is on the cusp of a new era and cannot risk stifling innovation,” Dee Dee Myers, the office’s director and senior adviser to Newsom, said in a letter opposing the bill.  Other opponents of the bill say self-driving truck regulations should be left up to the state’s Department of Motor Vehicles and officials with expertise on keeping the roads safe. They argue self-driving cars that are already on the roads haven’t caused many serious accidents compared to cars driven by people. Businesses say self-driving trucks would help them transport products more efficiently in the future.  The bill comes as the debate over the future of autonomous vehicles heats up. In San Francisco, two robotaxi companies got approval last month from state regulators to operate in the city at all hours, despite concerns about these vehicles making unexpected stops and blocking traffic. In Phoenix, companies have tested self-driving trucks on highways and to deliver mail through a partnership with the U.S. Postal Service.  On Tuesday in Sacramento, hundreds of truck drivers, union leaders and other supporters of the bill rallied at the state Capitol. Drivers wore shirts representing their chapter of the International Brotherhood of Teamsters, a large union backing the bill, and chanted “sign that bill” as semi-trucks lined a street in front of the Capitol. Some chants were laced with profanities as they urged Newsom to support their cause. There are about 200,000 commercial truck drivers in California, according to Teamsters officials.  Mike Di Bene, a commercial truck driver of nearly 30 years and member of the Oakland Teamsters chapter, said human drivers have the “intuition and experience” to quickly adapt to unexpected situations, including when there is black ice on the road or when a tire blows out on the freeway. Self-driving technology that “doesn’t value” life can’t understand what’s at stake when operating massive vehicles at high speeds, he said.  Brian Rice, president of the California Professional Firefighters union, said it’s important for first responders to be able to communicate with commercial truck drivers when emergencies happen — for example if there is a spill of dangerous materials that can become a health hazard.  “Hazardous materials are everywhere,” Rice said. “We don’t need robots driving these materials around.”  Labor was at the heart of several legislative fights this year, including efforts to raise wages for health care workers, make striking workers eligible for unemployment benefits and allow legislative staffers to unionize. The Legislature sent these proposals to Newsom at a time hotel workers, Hollywood writers and actors are on strike.  In 2012, then-Gov. Jerry Brown signed a law mandating that companies get approval from the Department of Motor Vehicles before putting their self-driving vehicles to use on public roads. DMV leaders oppose the bill, saying the authority to regulate such vehicles should remain with their agency.  In August, the DMV sent a letter to Assemblymember Cecilia Aguiar-Curry, who introduced this year’s bill, saying the testing of self-driving vehicles across 18.3 million miles (29.5 million kilometers) since 2014 in the state has not led to any fatalities. Autonomous vehicles were not found to be “clearly at fault” for the few collisions that caused serious injuries, the letter said.  California DMV Director Steve Gordon said in the letter that the department meets with companies that make self-driving vehicles after accidents occur to find out the root cause. If the department finds a vehicle poses an “unreasonable risk to public safety,” it can suspend or revoke the company’s permit to test the vehicle on the roads, Gordon said in the letter.  The bill would require the DMV to submit a report to the Legislature updating lawmakers on the safety of medium- and heavy-duty self-driving trucks. It would require companies to report collisions that caused property damage, injury or death to the department within 10 days. 

Sales of new Class 8 trucks strong, used truck prices declining

August was another strong sales month for new Class 8 tractors on the U.S. market, according to data received from Wards Intelligence. Manufacturers reported sales of 23,342 trucks during the month, up 11% from July sales of 21,021. Compared with sales in August 2022, however, U.S. Class 8 sales declined by 239 units (1%). It was the first month of 2023 that did not exceed sales in the same month of 2022. Rather than reflecting any 2023 slowdown, this is a sign of the strength of the market. Freightliner reported sales of 8,158, an increase of 7.2% over July sales of 7,610 but a 16.6% decline from August 2022 sales of 9,783. Freightliner is responsible for 38.1% of U.S. Class 8 sales for the year to date, down from 38.4% at the same time last year. The next largest share of the Class 8 market goes to International with 14.3%. The company reported sales of 3,587 in August, up 18% from July sales of 3,039 — and a whopping 30.5% higher than August 2022 sales of 2,749. For the year to date, International Class 8 sales are up 39.9%. International has gained an additional 2.5% of the market since the same point of 2022. Kenworth sales of 3,689 represented an increase of 21.9% over July sales of 3,026 and an 11.5% increase over August 2022 sales of 3,310. The company’s share of the U.S. Class 8 market stands at 14.1% Peterbilt reported 3,458 Class 8 trucks sold in August, up 4% from 3,325 sold in July and up 4.9% from 3,298 sold in August of last year. Peterbilt’s market share is 14.2% for the year to date. Volvo’s reported sales of 2,130 in August topped July sales of 1,944 by 9.6% but were 5% behind August 2022 sales of 2,243. For the year to date, Volvo has sold 1.9% more Class 8 trucks than at the same point in 2022, the smallest increase of any manufacturer — and well below the 15.2% average growth for the industry. Volvo’s share of the U.S. Class 8 market stands at 9.8%, a decline of 1.3% from last year. Mack Truck’s reported sales of 1,598 was a 17% improvement over the 1,366 sold in July and was a mere four trucks (0.3%) higher than August 2022 sales. The company holds 6.6% of the new Class 8 market, up a tenth of a point from the same point last year. Western Star reported 722 trucks sold in August, up 6% from July’s 681 and up 19.5% from August 2022 sales of 604. Western Star owns about 2.8% of Class 8 trucks sales this year, about the same as at the same point last year. For the first time in 2023, Tesla did not report sales of any Class 8 trucks. Orders for new Class 8 trucks were estimated at 19,000, according to a release from ACT Research. That number represents the North America market rather than just the U.S. but represents the biggest order number since February of this year. The figure is also impacted by the time of year. “As represented by seasonal factors, the industry remains at that time of year when expectations for order activity are low, as most of the current year’s orders have been booked and out-year build plans are only starting to open,” explained Kenny Vieth, ACT’s president and senior analyst. August is typically the month when manufacturers change their orders to the next model year. The backlog of orders already placed will keep the assembly lines busy through the end of the year, and some customers are reluctant to order into 2024 until they know for sure what the economy and freight markets will do. Price increases for 2024 may also play a part in keeping orders down. Most of the OEMs placed surcharges on the price of 2023 models in an attempt to recoup the rising costs of parts and materials. While buyers hoped the surcharges would be temporary, in most cases they have been rolled into next year’s base price. As the new Environmental Protection Agency (EPA) standards that will go into effect in 2027 get closer, 2024 prices may seem like a bargain. Used truck sales figures weren’t published at the time of this writing, but inventories have been growing and average pricing has been steadily declining as fleets take delivery of the new trucks they have ordered. Unfortunately, credit costs are higher and lenders, some still reeling from the number of loan defaults, have generally been tightening loan requirements. Buyers may need larger down payments to secure financing, if they qualify at all. On the horizon is a pre-buy of 2025 and 2026 model trucks in an effort by carriers to avoid the additional cost and unknown reliability of 2027 models. That pre-buy could free up more used equipment, driving average prices downward, but how many trucks will be sold is an unknown. In 2006, sales records were broken as carriers stocked up to avoid the higher fuel and maintenance costs predicted for 2007 models. Some experts think the 2026 pre-buy could break current records. A Sept. 12 release from ACT Research was entitled “Half of all commercial vehicles will be zero emissions by 2040.” That number includes all classes of commercial vehicles, not just Class 8. For perspective, in August, 23,026 vehicles in Classes 4-7 were reported sold by manufacturers. That’s roughly equivalent to the 23,342 Class 8 trucks sold. “We forecast a relatively low adoption rate from 2024 through 2026, reflecting the fact that BEV (battery-electric vehicle) sales of commercial vehicles are still in their early years,” said Ann Rundle, vice president of electrification and autonomy at ACT. Rundle noted that increasing prices for diesel trucks will push more buyers to BEVs, along with ever-tightening government regulations. Smaller trucks running local routes and returning to the same location daily will be quicker to adapt BEVs with operations using larger trucks coming on board as battery capacity improves and charging infrastructure is added. As with most products, government mandates may hurry the adoption process, but the biggest growth will occur when businesses project the new technology to be more cost effective than the old.

Diesel prices still rising

LITTLE ROCK, Ark. — U.S. diesel prices are continuing to climb. According to the Sept. 18 report from the Energy Information Administration (EIA), the average price for a gallon of diesel fuel sits at $4.633 per gallon. That’s up from $4.540 on Sept. 11 and $4.492 on Sept. 4. The nation’s highest prices are in California at $6.192 per gallon, while the lowest prices can be found along the Gulf Coast at $4.352, according to the EIA. Global distillate fuel oil inventories are significantly lower than normal, driving up fuel prices. Stocks in all the major consuming regions were severely depleted in August, despite a prolonged slowdown in manufacturing activity and freight movements over the previous year, according to a Reuters report. Distillate prices are being driven higher by both the extra crude production cuts announced by Saudi Arabia and its OPEC⁺ allies and shortages of refining capacity around the world, according to Reuters. Production cuts by the major exporters in the Middle East have a disproportionate impact on the diesel market because their heavier crudes yield a higher proportion of middle distillates when refined.  

Going down? Analysts debate how long freight rates will remain low

Those who were hoping that freight rates might begin to rebound in August were disappointed — and the disappointment is likely to continue for a few more months. Average dry van spot rates increased slightly in August, up just 0.7% from July numbers, according to DAT Trendlines. Compared with August of 2022, however, dry van rates fell a more dramatic 17.7%. The number of available trucks has continued to grow while the number of loads has not, resulting in a decline of 19.9% in DAT’s load-to-truck ratio. More trucks competing for fewer loads drives rates downward. The average spot rate for dry van was $2.08 per mile in August, according to DAT. On the temperature-controlled side, rates increased 2.6% from July but were down 13.9% from August 2022, as the load-to-truck ratio dropped by 37.8%. Spot rates averaged $2.50 for refrigerated trailers in August. The flatbed load-to-truck ratio was even worse, declining by 57.2% compared with August 2022. Flatbed spot rates fell 1.1% from July rates and 17.6% from August 2022 rates. The average spot rate for flatbed freight in August was $2.50, according to DAT. Fuel costs rose by 12.6% during August but are still 12.8% lower than in August 2022. Loads posted on the Truckstop.com board in August followed a similar trajectory, as reported by FTR Transportation Intelligence. The board reported some rate increases due to the Labor Day holiday but reported that average rates were still 21% lower than the five-year average for that holiday week. According to the Motive Monthly Economic Report, key metrics in retail visits improved in August. Motive’s data points differ from other analysts in that its data is compiled using GPS information collected from trucks that utilize their equipment, counting actual truck visits to retailers and other statistically valuable locations. Motive reported that retail visits were higher in August compared with August 2022, a good sign that the economy is beginning to show signs of growth. At the same time, the number of new carrier registrations with the Federal Motor Carrier Safety Administration grew in August, while carrier exits declined sharply. This means more trucks are engaging in the hunt for freight, helping keep rates low. The Motive report also indicates that rising diesel prices and increasing costs for credit will add difficulty for smaller trucking operations. The report states that Motive expects the overall contraction (the removal of trucks from the marketplace) to continue into early 2024, and truck owners are advised to prioritize operational efficiency. Conserving cash is the best defense a small business has against difficult business periods. “Destocking” is a work that has been frequently used during the freight downturn. Simply put, it means retail establishments and manufacturers have been ordering less product to restock their shelves in response to slowed sales. By measuring the number of truck visits to distribution centers for the top 50 retailers, Motive can create its “Big Box Retail Index.” The index for August didn’t quite make it to July levels, primarily because of the July 4 holiday; however, the index rose 8.1% from the June level. Motive sees the increasing number of visits as a sign that retailer inventories are “normalizing.” Orders slowed while they were reducing their stock of product, but they are now ordering enough to maintain the lower inventory numbers. At a recent industry conference hosted by ACT Research, the firm’s vice president and senior analyst Tim Denoyer claimed that the freight market is “getting close to finding supply and demand balance.” In the trucking industry, “supply” indicates the availability of trucks and “demand” is the number of loads available to fill them. Denoyer predicted that freight rates will begin rising in the fourth quarter of 2023, which begins the date of this issue of The Trucker. If this happens, it will be welcome news to the thousands upon thousands of small trucking companies that are currently competing for freight. The industry could receive another boost if efforts by the Federal Reserve to curtail inflation are successful in reducing inflation without stifling production. In the meantime, a recent study released by ATRI (the American Trucking Research Institute) pegged the cost of operating a truck at $2.25 per mile, a figure that’s higher than many spot loads are currently paying. Successful truck and small fleet owners will pay close attention to the rates they accept, planning ahead for the next load or two as well. It pays to avoid taking loads into regions where outbound rates are hard to come by and priced on the low end of the spectrum when found. Some truck owners may have to adjust their home time expectations in order to take advantage of higher freight rates. The upcoming holidays can present another opportunity for good rates as many drivers shut down for days during holiday weeks, resulting in fewer trucks on the road and rates that may be temporarily higher. If there’s any good news, it’s that the recession that many economists expected has fizzled and may not happen at all. The tricky part will be staying above water on business expenses until freight rates begin climbing again.

Yellow receives OK to sell its truck fleet

NEW YORK — A U.S. bankruptcy court has approved Yellow Corp’s request to sell its fleet of trucks by October while continuing to market their real estate assets. Those assets have already received a $1.525 million bid by Estes Express Lines. Yellow filed for bankruptcy in August after a labor dispute. The company owns around 12,000 trucks and 35,000 trailers, according to court documents. Yellow intends to conduct an auction for its vehicles by Oct 18 and seek court approval for the vehicle sale on Oct. 27. Yellow blamed its collapse on a labor dispute with the International Brotherhood of Teamsters union, and it terminated about 22,000 union-represented drivers when it went bankrupt. The union has said the Nashville, Tennessee-based company “mismanaged” its way to bankruptcy.

Diesel, gas prices pushing up nation’s inflation

WASHINGTON — Inflation jumped last month largely because of a spike in fuel prices but other costs rose more slowly, suggesting price pressures are easing at a gradual pace.  In a set of conflicting data released on Wednesday, Sept. 13, the Labor Department said the consumer price index rose 3.7% in August from a year ago, up from a 3.2% annual pace in July. Yet excluding the volatile food and energy categories, so-called core prices rose 4.3%, a step back from 4.7% in July and the smallest increase in nearly two years. That is still far from the Federal Reserve’s 2% target.  The big rise in gas and diesel prices accounted for more than half of the monthly inflation increase, the government said.  According to the Energy Information Administration (EIA), the average price of a gallon of diesel fuel in the U.S. sits at $4.540. That’s up from $4.492 on Sept. 4 and $4.475 on Aug. 28. Despite the seemingly divergent figures, the decline in the core measure points to inflation coming under control, but at a much more gradual pace than earlier this year. The Federal Reserve closely tracks core prices because they are seen as a better indicator of future inflation trends.  The Fed is widely expected to skip an interest rate hike at its meeting next week. Wednesday’s figures keep the prospect of another rate increase later this year on the table, however, perhaps at its November or December meetings, economists said, because core prices ticked up a bit faster in August than in July.  Wednesday’s report suggested that after inflation faded quickly over the spring and the summer, future declines will be much more gradual. Inflation dropped to 3% in June, down from a 9.1% peak in June 2022. Some of the forces that pulled down prices earlier this year — such as lower gas prices and improving supply chains, which reduced the cost of goods like furniture — have largely played out, economists say.  “We’re getting to the stage where we’ve basically had all the low hanging fruit in terms of disinflation,” said Blerina Uruci, an economist at T. Rowe Price. “The progress on core inflation over the coming months is going to be slow and it’s going to be uneven.”  On a monthly basis, consumer prices jumped 0.6% in August, the biggest increase in more than a year. Gas prices spiked nearly 11%, though they have since leveled off: According to AAA, the average nationwide price at the pump was $3.85 on Wednesday, unchanged from a month ago.  Excluding food and energy, core prices increased just 0.3% in August from July, though that is up from 0.2% in the two previous months.  Energy costs rose 5.6% just in August, the biggest monthly increase since June 2022. Auto insurance prices also soared, rising 2.4% last month and 19.1% compared with a year ago. The sharp increase in new car prices in the past two years has also made them more expensive to insure and repair.  Airfares soared 4.9% in August from July, though after two months of sharp declines. At the same time, used car costs dropped 1.2%, the third straight decrease, while hotel prices fell 3%, also the third consecutive fall.  Grocery prices moved up 0.2%, a trend that has strained many household’s finances. But food cost increases are cooling: They rose 3% compared with a year ago, down from double-digit increases last year.  Prices increase are slowing yet, as any American can attest, food, rent, automobiles, appliances, all cost considerably more than they did two years ago.  While filling up her car with gas Tuesday night in Falls Church, Virginia, Francesca, who declined to give her last name, said she still notices how much higher her grocery bill has gotten.  “We’re not buying crazy things, like caviar, just the basics,” she said, referring to her weekly food shopping. “And it’s like $150,” compared to a tab of closer to $100 before the pandemic.  Still, Federal Reserve officials are becoming more open to the idea that inflation is coming under control, though chair Jerome Powell warned last month it was still “too high.”  In his high-profile speech at Jackson Hole, Wyoming, Powell said the Fed would proceed “carefully” with any further rate hikes, which many economists saw as an opening for the Fed to skip a rate increase at its September 19-20 meeting. When the Fed increases its key rate, it typically raises the cost of mortgages, auto loans, and business borrowing.  The Fed has lifted its benchmark interest rate 11 times in the past 12 meetings to about 5.4%, the highest level in 22 years. It increased the rate a quarter-point in July after leaving it unchanged in June.  Lorie Logan, president of the Federal Reserve’s Dallas branch, said last week that “another skip could be appropriate” at its next meeting September 19-20, “but skipping does not imply stopping.”  Wall Street traders see only a 3% chance of a rate hike next week, according to CME’s FedWatch. But they have priced in a 40% chance for an increase at the Fed’s subsequent meeting in November.  Wednesday’s report shows prices are sticky enough “to have another rate hike this year,” said Tim Duy, chief U.S. economist at SGH Macro.  Duy said that the economy is expanding at a healthy pace, confounding long-standing fears that a recession is imminent. Americans boosted their spending at restaurants and retailers in July, and hiring has remained solid. Yet Duy added that one risk posed by the steady growth is that it could keep inflation pressures high. Companies are boosting pay to find and keep employees, which is great for workers, but can lead businesses to raise prices to offset the higher labor costs.  Strikes and labor disputes this year could lead to more healthy pay gains. The Teamsters won robust wage increases in recent negotiations with UPS, while American Airline pilots also secured higher pay in a new contract. The United Auto Workers is also seeking higher pay from the three major U.S. automakers.  The push for higher pay, however, comes after incomes for most Americans trailed inflation for much of the past two years. A report from the Census Bureau Tuesday showed that the inflation-adjusted income for a typical household dropped 2.3% last year. Economists expect workers to keep pushing to make up for lost ground.  The European Central Bank is also contemplating lifting its key interest rate at its next meeting Thursday, though officials could choose to also skip an increase. The European economy is nearing recession as it struggles with high inflation and rising borrowing costs.  The 20 countries that use the euro currency are expected to grow just 0.8% this year, according to a gloomy forecast issued Monday by the European Commission, the European Union’s executive arm. Germany’s economy, the EU’s largest, is projected to shrink 0.4%. Inflation in the EU is higher than in the U.S. — it was 5.3% in July — though that is half of the 10.6% peak reached in October.  The Trucker Staff contributed to this report.