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Cheaper fuel, food provide some relief from US inflation

WASHINGTON — U.S. consumer inflation eased in March, with less expensive gas, diesel fuel and food providing some relief to households that have struggled under the weight of surging prices but likely still keeping the Federal Reserve on track to further raise interest rates. The government said Wednesday, April 12, that consumer prices rose just 0.1% from February to March, down from 0.4% from January to February and the smallest increase since December. Measured from a year earlier, prices were up just 5% in March, down sharply from February’s 6% year-over-year increase and the smallest rise in nearly two years. Much of the drop resulted from price declines for such goods as gas, used cars and furniture, which had soared a year ago after Russia’s invasion of Ukraine. Excluding volatile food and energy costs, though, so-called core inflation remains stubbornly high. Core prices rose 0.4% from February to March and 5.6% from a year earlier. The Fed and many private economists regard core prices as a better measure of underlying inflation. The year-over-year figure edged up in March for the first time in six months. Price increases in the economy’s vast service sector — ranging from rents and restaurant meals to haircuts and auto insurance — are keeping core inflation high, at least for now. That trend is widely expected to lead the Fed to raise its benchmark interest rate for a 10th straight time when it meets in May. Still, there were positive signs in Wednesday’s report that suggested that inflation pressures are cooling. Rental costs rose 0.5% from February to March, still high but the smallest increase in a year. Grocery prices fell 0.3%. That was the first such drop in 2 1/2 years and was a welcome respite for Americans suffering from painfully elevated food costs. Used car prices, which were an early driver of high inflation, fell 0.9%, the ninth straight monthly decline. Gas prices, which dropped 4.6% just from February to March, have tumbled 17% over the past year. Diesel fuel has also seen a week-over-week decline for the past 10 weeks. Fed officials have projected that after one additional quarter-point hike next month — which would raise their benchmark rate to about 5.1%, its highest point in 16 years — they will pause their hikes but leave their key rate elevated through 2023. But officials have cautioned that they could raise rates further if they deem it necessary to curb inflation. When the Fed tightens credit with the goal of cooling the economy and inflation, it typically leads to higher rates on mortgages, auto loans, credit card borrowing and many business loans. The risk is that ever-higher borrowing rates can weaken the economy so much as to cause a recession. On Tuesday, the International Monetary Fund, a 190-nation lending organization, warned that persistently high inflation around the world — and efforts by central banks, including the Fed, to fight it — would likely slow global growth this year and next. Even so, there are signs that inflation pressures will ease in the months ahead. One unfortunate reason inflation could decline is that economists expect growth to slow in the United States later this year, in part because turmoil in the banking sector may cause banks to restrict lending. The Fed’s year-long streak of rate hikes are also starting to cool a hot labor market, with recent data showing that companies are advertising fewer openings and that wage growth has been slowing from historically elevated levels. And rental cost increases, the biggest driver of core inflation, are likely to continue to slow in the months ahead. According to the government’s measures, rents have risen by about 9% in the past year. Still, Apartment List, which tracks real-time changes in new leases, shows rents rising at a 2.6% pace compared with a year ago. As more apartments reset with those smaller increases, the government’s inflation data should show milder increases in coming months. The Fed is also laser-focused on the cost of services, which are rising at historically rapid rates. Officials at the central bank have said they believe that raising wages, while good for workers, are contributing to those price increases. Last week’s March jobs report, though, showed that wage growth has slowed steadily in the past year. Businesses are posting fewer open positions, and the number of Americans quitting their jobs to take new, mostly higher-paying work — a driver of higher pay — is falling. A more worrisome trend is the possibility that banks will pull sharply back on lending to conserve funds, after two large banks collapsed last month, igniting turmoil in the United States and overseas. Many smaller banks have lost customer deposits to huge global banks that are perceived to be too big to fail. The loss of those deposits will likely mean that those banks will extend fewer loans to companies and individuals. Some small businesses say they are already having trouble getting loans, according to a survey by the National Federation for Independent Business. The IMF said Tuesday that pullbacks in lending could slow growth by nearly a half-percentage point over the next 12 months. A slowdown in the economy could cool inflation and as a result could help the Fed achieve its objectives. But the blow to the economy might prove larger than expected. Under the worst-case scenario, it could mean a full-blown recession with the loss of millions of jobs.

A perfect 10: Average diesel fuel prices down for 10th straight week

LITTLE ROCK, Ark. — Truck drivers are feeling more relief at the pump in many areas of the nation than they have seen in a year’s time. Average diesel prices continue to slide downward — albeit at a snail’s pace — marking the 10th week in a row as of April 10, according to the Energy Information Administration (EIA). The average price currently sits at $4.098, down from $4.105 on April 3 and $4.128 on March 27. The main reason for the price decline is that Russia’s oil output has finally reached levels not seen since the nation invaded Ukraine in February 2022, according to economists.  

White House reviewing proposal to require automatic emergency braking on big rigs

WASHINGTON — The White House is now reviewing a National Highway Traffic Safety Administration (NHTSA) proposal to require automatic emergency braking (AEB) systems on heavy trucks. The president’s office has to approve the proposal before it can be published in the Federal Register, where it will receive public comment before regulators decide whether it should become law. “This joint rulemaking of the NHTSA and Federal Motor Carrier administration will be seeking comments on a proposal to require and/or standardize equipment performance for AEB systems on heavy trucks (2127-AM36),” a federal report filed with the Office of Information and Regulatory Affairs notes. “The rulemaking is expected to propose performance standards and motor carrier maintenance requirements for AEB systems on heavy trucks and accompanying test procedures for measuring the performance of the AEB systems in NHTSA compliance testing.” The Insurance Institute for Highway Safety (IIHS), a research group supported by auto insurers, found in a 2020 study that automatic emergency braking and forward collision warnings could prevent more than 40% of crashes in which semis rear-end other vehicles. A study by the group found that when rear crashes happened, the systems cut speeds by more than half, reducing damage and injuries. NHTSA had proposed a regulation on automatic emergency braking in 2015, but it languished in the regulatory process. In 2016, NHTSA brokered a deal with 20 automakers representing 99% of U.S. new passenger vehicle sales to voluntarily make automatic emergency braking standard on all models by Sept. 1, 2022. But that deal did not apply to big rigs. The Owner-Operator Independent Drivers Association, in its publication LandLine, recently quoted OOIDA’s director of federal affairs Jay Grimes on the issue. “We certainly have concerns about AEB technology and how it will work in certain driving conditions, most notably at night,” Grimes said. “We want to make sure these systems are not giving off false alarms and false detections that distract drivers and take the control out of their hands.” IIHS STUDY Equipping large trucks with forward collision warning and AEB systems could eliminate more than two out of five crashes in which a large truck rear-ends another vehicle, according to the IIHS study. Eric Teoh, director of statistical services for IIHS, examined data on crashes per vehicle mile traveled from 62 carriers operating tractor-trailers and other trucks weighing at least 33,000 pounds. He found that trucks equipped with forward collision warning had 22% fewer crashes, while trucks with AEB had 12% fewer crashes than those without either technology. Forward collision warning and AEB reduced rear-end crashes, the specific type of collision they’re designed to prevent, by 44% and 41%, respectively. Although drivers of large trucks crash less often per mile traveled, these trucks can be especially deadly because they can weigh 20 to 30 times as much as passenger vehicles. U.S. crashes involving large trucks have risen by nearly a third since hitting an all-time low in 2009, with 4,136 people killed in 2018. Among those fatalities, 119 deaths resulted from large trucks rear-ending passenger vehicles. Overall, Teoh’s study covered about 2,000 crashes that occurred over more than 2 billion vehicle miles traveled during 2017-2019. The analysis excluded incidents that weren’t serious enough to result in injury or significant property damage. “This study provides evidence that forward collision warning and AEB greatly reduce crash risk for tractor-trailers and other large trucks,” Teoh said. “That’s important information for trucking companies and drivers who are weighing the costs and benefits of these options on their next vehicles.” Front crash prevention systems use cameras, radar or other sensors to monitor the roadway ahead. Some include only forward collision warning, which alerts the driver to obstacles in the roadway. AEB systems go further, automatically applying the brakes to prevent the collision or reduce its severity. The European Union has required AEB with forward collision warning on most new heavy trucks since November 2013. The number of large trucks equipped with AEB is increasing, but there have been few studies of its effect on crash rates. In the large-truck study, Teoh compared trucks from the same carriers that were equipped with forward collision warning alone, AEB and no front crash prevention at all (AEB systems generally include forward collision warning too). For the first time, the IIHS drew on data compiled by SmartDrive Systems, a video-based safety program for commercial fleets. SmartDrive was able to determine which trucks were equipped with forward collision warning and AEB and collect detailed information about crashes. Using data collected by a third party helped to minimize data differences among carriers that might have influenced the results. The similar benefits of forward collision warning and AEB that Teoh observed for rear-end crashes were unexpected, since studies of passenger vehicles have shown AEB to be much more effective than systems that only issue warnings. These findings could reflect differences in how and by whom trucks and passenger vehicles are driven; or the differences could be connected to variations among the specific systems used by each carrier. The study indicated that AEB and forward collision warning are both likely to have benefits beyond the reduction in crashes. Some crashes that aren’t prevented by the systems are made less severe, thanks to a reduction in impact speed. This is true whether it’s the automated system applying the brakes or a human driver who has more time to react because of a warning. In reviewing the trucks that rear-ended other vehicles, Teoh found that either system resulted in speed reductions of more than 50% between the warning or automatic braking and the impact. “The potential benefits are great enough that these crash avoidance systems should be standard equipment on all new large trucks,” said IIHS President David Harkey.

CVSA’s International Roadcheck fast approaching

WASHINGTON — The Commercial Vehicle Safety Alliance (CVSA) has announced May 16-18 as this year’s International Roadcheck. International Roadcheck is a high-visibility, high-volume 72-hour inspection and enforcement event where CVSA-certified inspectors in Canada, Mexico and the U.S. will conduct inspections of commercial motor vehicles and drivers at weigh/inspection stations, designated inspection areas and along roadways. This year, inspectors will focus on anti-lock braking systems (ABS) and cargo securement to highlight the importance of those aspects of vehicle safety, according to a news release. The CVSA notes that although ABS violations are not out-of-service violations, “ABS play a critical role in reducing the risk of collisions by preventing the wheels from locking up or skidding, allowing a driver to maintain control of the vehicle while braking. In addition, improper cargo securement poses a serious risk to drivers and other motorists by adversely affecting the vehicle’s maneuverability, or worse, causing unsecured loads to fall, resulting in traffic hazards and vehicle collisions.” During International Roadcheck, inspectors will conduct their usual roadside safety inspections of commercial motor vehicles and drivers. Data will be gathered from those three days and shared later this year, as a snapshot of the state of commercial motor vehicle and driver safety. International Roadcheck also provides an opportunity to educate the motor carrier industry and general public about the importance of safe commercial motor vehicle operations and the North American Standard Inspection Program. During a routine North American Standard Level I Inspection, inspectors focus on two areas – driver and vehicle safety compliance. Vehicle safety — Inspectors will ensure the vehicle’s brake systems, cargo securement, coupling devices, driveline/driveshaft components, driver’s seat, fuel and exhaust systems, frames, lighting devices, steering mechanisms, suspensions, tires, wheels, rims, hubs and windshield wipers are compliant with regulations. Inspections of motorcoaches, passenger vans and other passenger-carrying vehicles also include emergency exits, seating, and electrical cables and systems in the engine and battery compartments. Driver safety — Inspectors will check the driver’s operating credentials, hours-of-service documentation, status in the drug and alcohol clearinghouse, seat belt usage, and for alcohol and/or drug impairment. Vehicles that successfully pass a Level I or Level V Inspection without any critical vehicle inspection item violations may receive a CVSA decal, which is valid for three months. If the inspector does identify critical vehicle inspection item violations, as outlined in the North American Standard Out-of-Service Criteria, the vehicle will be restricted from operating until the identified out-of-service conditions have been corrected. Inspectors may also restrict the driver from operating if the driver is found to have driver out-of-service violations, such as not possessing a valid or necessary operating license or exhibiting signs of impairment.

Hydrogen trucks: Long-haul’s future?

WASHINGTON — The North American Council for Freight Efficiency (NACFE) and RMI have released a new report focusing on hydrogen-powered trucks. The report focuses on using hydrogen-based powertrains for heavy-duty Class 8 long-haul freight routes pulling van trailers. These powertrains include a range of fuel cell battery electric types and internal combustion engines (ICE) based on the diesel cycle. This report is based on two previous NACFE reports — Viable Class 7/8 Electric, Hybrid and Alternative Fuel Tractors and Making Sense of Heavy-Duty Hydrogen Fuel Cell Tractors — which compared a range of alternative fuel heavy-duty truck technologies, including hydrogen. The report looks at what NACFE got right in its original reports, as well as what it got wrong. The report also provides insight on what has changed since NACFE first reported on hydrogen in 2020. It explores changes in the molecular fuel industry as well as providing information on various agreements and regulations that are spurring the development of hydrogen as a fuel source in heavy-duty trucking. “Think of hydrogen as a ‘gaseous battery.’ The key factor in going hydrogen fuel cell is a fleet’s need for availability of the vehicle for multi-shift, multi-route, operations,” said Mike Russell, P.E., senior project lead -zero emissions powertrain at PACCAR Inc. The report also presents information on technology and infrastructure changes, including the emergence of hydrogen internal combustion engines and explores the basics of hydrogen internal combustion engines. There is also a section on the state of hydrogen today, which looks at the cost realities of hydrogen for trucking applications. The report found that hydrogen may be the harbinger of a new green industrial revolution, or just the progression from one fossil fuel-based energy carrier to another with greater emphasis on reducing emissions. Either way, hydrogen will be a factor in future long-distance freight hauling in combination with battery electric vehicles for shorter range operations. The study team determined that hydrogen is a complex topic and hydrogen for use in freight transportation is just in its infancy. The report contains four conclusions: Hydrogen and battery electric are not an “either/or” but an “and” for the zero-emission freight future. Hydrogen fuel cell tractors are the only zero-emission solution for many duty cycles for heavy-duty tractors. Alternative fuels like RNG, renewable diesel, and hydrogen used in internal combustion engines will be required to support the transition in the next two decades to help make progress toward zero-emission goals, while in parallel ramping up the hydrogen and battery electric infrastructure and manufacturing base. Industry agreement is needed on whether hydrogen long-haul fuel cell tractors and the transport of the hydrogen fuel itself, will be based on gaseous or liquid hydrogen. “As we move to the zero-emissions freight future, in the long run, there are only two choices of power: Battery electric and hydrogen fuel cell,” said Rick Mihelic, report author and director of emerging technologies at NACFE.

As diesel costs continue downward trend, oil producers’ cuts could soon boost prices

LITTLE ROCK, Ark. — It’s a broken record on repeat, but the song is sweet. As The Trucker has been reporting over the past nine weeks, the average price for a gallon of diesel fuel across the nation is in slow decline. According to the latest data from the Energy Information Administration (EIA), the current nationwide average price sits at $4.105 as of April 3. That’s down from $4.128 on March 27 and $4.185 on March 20. But how long can the slide downward last? Major oil-producing countries led by Saudi Arabia said they’re cutting supplies of crude — again. This time, the decision was a surprise and is underlining worries about where the global economy might be headed. Russia is joining in by extending its own cuts for the rest of the year. In theory, less oil flowing to refineries should mean higher fuel prices for drivers and could boost the inflation hitting the U.S. and Europe. And that may also help Russia weather Western sanctions over its invasion of Ukraine at the expense of the U.S. The decision by oil producers, many of them in the OPEC oil cartel, to cut production by more than 1 million barrels a day comes after prices for international benchmark crude slumped amid a slowing global economy that needs less fuel for travel and industry. It adds to a cut of 2 million barrels per day announced in October. Between the two cuts, that’s about 3% of the world’s oil supply. Here are key things to know about the cutbacks: WHY ARE OIL PRODUCERS CUTTING BACK? Saudi Arabia, OPEC’s dominant member, said Sunday that the move is “precautionary” to avoid a deeper slide in oil prices. Saudi Energy Minister Abdulaziz bin Salman has consistently taken a cautious approach to future demand and favored being proactive in adjusting supply ahead of a possible downturn in oil needs. That stance seemed to be borne out as oil prices fell from highs of over $120 per barrel last summer to $73 last month. Prices jumped after Sunday’s announcement, with international benchmark Brent crude trading at about $85 on Monday, up 6%. With fears of a U.S. recession exacerbated by bank collapses, a lack of European economic growth and China’s rebound from COVID-19 taking longer than many expected, oil producers are wary of a sudden collapse in prices like during the pandemic and the global financial crisis in 2008-2009. Capital markets analyst Mohammed Ali Yasin said most people had been waiting for the June 4 meeting of the OPEC+ alliance of OPEC members and allied producers, most prominently Russia. The decision underlined the urgency felt by producers. “It was a surprise to all, I think, watchers and the market followers,” he said. “The swiftness of the move, the timing of the move and the size of the move were all significant.” The aim now is to ward off “a continuous slide of the oil price” to levels below $70 per barrel, which would be “very negative” for producer economies, Yasin said. Part of the October cut of 2 millions barrels per day was on paper only as some OPEC+ countries aren’t able to produce their share. The new cut of 1.15 million barrels per day is distributed among countries that are hitting their quotas — so it amounts to roughly the same size cut as in October. Governments announced the decision outside the usual OPEC+ framework. The Saudis are taking the lead with 500,000 barrels per day, with the United Arab Emirates, Kuwait, Iraq, Oman, Algeria and Kazakhstan contributing smaller cuts. WILL THE PRODUCTION CUT MAKE INFLATION WORSE? It certainly could. Analysts say supply and demand are relatively well balanced, which means production cuts could push prices higher in coming months. The refineries that turn crude into gasoline, diesel and jet fuel are getting ready for their summer production surge to meet the annual increase in travel demand. In the U.S., gasoline prices are highly dependent on crude, which makes up about half of the price per gallon. Lower oil prices have meant U.S. drivers have seen the average price fall from records of over $5 per gallon in mid-2022 to $3.50 per gallon this week, according to motor club AAA. The cuts, if fully implemented, “would further tighten an already fundamentally tight oil market,” Jorge Leon, senior vice president at Rystad Energy, said in a research note. The cut could boost oil prices by around $10 per barrel and push international Brent to around $110 per barrel by this summer. Those higher prices could fuel global inflation in a cycle that forces central banks to keep hiking interest rates, which crimp economic growth, he said. Given the fears about the overall economy, “the market may interpret the cuts as a vote of no confidence in the recovery of oil demand and could even carry a downside price risk — but that will only be for the very short term,” Leon said. WHAT WILL THIS MEAN FOR RUSSIA? Moscow says it will extend a cut of 500,000 barrels per day through the rest of the year. It needs oil revenue to support its economy and state budget hit by wide-ranging sanctions from the U.S., European Union and other allies of Ukraine. Analysts think, however, that Russia’s cut may simply be putting the best face on reduced demand for its oil. The West shunned Russian barrels even before sanctions were imposed, with Moscow managing to reroute much of its oil to India, China and Turkey. But the Group of Seven major democracies imposed a price cap of $60 per barrel on Russian shipments, enforced by bans on Western companies that dominate shipping or insurance. Russia is selling oil at a discount, with revenue sagging at the start of this year. WHAT DOES THE WHITE HOUSE SAY? President Joe Biden addressed the OPEC+ cut on Monday before returning to the White House from a trip to Minnesota, predicting, “It’s not going to be as bad as you think.” Earlier, White House National Security Council spokesman John Kirby expressed U.S. opposition to the move, saying, “We don’t think that production cuts are advisable at this moment given market uncertainty, and we made that clear.” But he insisted that the oil market is in a different place from last year when prices surged following Russia’s invasion of Ukraine. “We’re focused on prices, we’re not focused on barrels,” he told reporters Monday, adding that the U.S. was given a heads-up before the announcement. The White House response was milder than in October, when cuts came on the eve of U.S. midterm elections in which soaring gas prices were a major issue. Biden vowed at the time that there would be “consequences,” and Democratic lawmakers called for freezing cooperation with the Saudis. The Trucker Staff contributed to this report.

FMCSA launches ‘Operation Protect Your Move’ to crack down on moving scams

WASHINGTON — The Federal Motor Carrier Safety Administration has launched Operation Protect Your Move, a nationwide crackdown on scam movers ahead of the busy summer moving season. According to a news release, the FMCSA is deploying dozens of investigators across the country in an enforcement sweep “to address the significant uptick in complaints of movers holding household possessions hostage to extort exorbitant additional charges from consumers.” The agency will also address complaints against moving companies and brokers that are not in compliance with federal safety and consumer protection regulations and statutes while transporting household goods. The operation covers both movers and the brokers that purport to connect consumers to local movers but instead facilitate fraud by promoting scams. “Moving is stressful enough without having to worry about being scammed by your moving company, so we’re cracking down on moving companies that hold people’s possessions hostage, and the brokers who facilitate that fraud,” U.S. Transportation Secretary Pete Buttigieg said. “If you’re planning a move, we encourage you to visit protectyourmove.gov for more information to help protect yourself from moving scammers.” Frequent complaints have been filed with FMCSA alleging companies of using deceptive business practices that are causing consumers to pay higher fees, experience delays in receiving their household goods, or in some cases not receiving their possessions at all. FMCSA officials say they are making every effort to protect consumers from moving scams. “FMCSA takes its responsibilities very seriously to help protect consumers when moving their household valuables from one state to another,” FMCSA Administrator Robin Hutcheson said. “Consumers should feel confident they can trust the company hired to transport their possessions.” The agency will formally document violations and has the authority to review and revoke the licenses of movers and brokers. Cases involving potential criminal misconduct may be referred to the U.S. Department of Justice for further investigation. Additionally, FMCSA will work directly with consumers to guide them through the process and help get their money and goods back. The operation is the first of many efforts planned over the next several months to address non-compliant household goods moving companies and brokers. In addition to ramped up investigations, FMCSA is taking several actions to crack down on mover scams, including doubling the number of investigators assigned to moving complaints and enhancing partnerships with consumer protection and attorney general offices across the country. FMCSA also provides  information on its website at www.ProtectYourMove.gov for consumers planning an interstate move. Consumers can download a moving checklist, view videos on spotting red flags, confirm a mover or broker’s registration with FMCSA and check the number of complaints against a particular company. Consumers can also file a complaint against a company regulated by FMCSA by visiting the agency’s National Consumer Complaints Database (NCCDB) at https://nccdb.fmcsa.dot.gov.

Distraction, speeding, alcohol drive up 2021 traffic deaths

DETROIT — Nearly 43,000 people died in U.S. traffic crashes in 2021, the highest number in 16 years with deaths due to speeding and impaired or distracted driving on the rise. The 2021 final numbers, released Monday, April 3, by the National Highway Traffic Safety Administration (NHTSA), confirmed earlier estimates by the agency showing a 10.5% increase in deaths over 2020. That’s the highest number since 2005 and the largest percentage increase since 1975. Data shows a 12% rise in fatal crashes involving at least one distracted driver, with 3,522 people killed. That prompted the agency to kick off a $5 million advertising campaign in an effort to keep drivers focused on the road. Agency officials said such cases likely are under-reported by police. Speeding-related deaths increased 7.9%, while crash deaths involving large trucks weighing more than 10,000 pounds were up 17%. The number of pedestrians killed rose 13%, and cyclist fatalities were up 2% for the year. The number of unbelted passengers killed rose 8.1%, while fatalities involving alcohol-impaired driving were up 14%. At a news conference Monday, April 3, in Seattle, NHTSA focused on distracted driving fatalities, which speakers said are entirely preventable if people stop using their cell phones, eating, or doing other things that divert attention from the road. “Remember it only takes a moment to change your life forever,” said Sophie Shulman, NHTSA deputy administrator. Steve Kiefer, a retired General Motors executive whose son, Mitchel, was killed in a 2016 distracted driving crash, said cell phones are a primary cause of distraction. But technology is available to prevent it including “do not disturb” modes, as well as apps and in-car systems that watch drivers to make sure they’re paying attention. “All of this technology is available today, and there’s no reason we can’t use it and roll it out quickly,” Kiefer said. Distracted driving deaths are related to America’s addiction to cell phones, said Kiefer, who started a foundation with the goal of ending distracted driving. He said 90% of people are aware of the danger of distracted driving, yet 80% admit to doing it. In 25 states with laws against hand-held cell phone use, traffic deaths, crashes and insurance rates have dropped, he said. “We believe that legislation will change behavior,” Kiefer said. Mitchel Kiefer was driving from home to Michigan State University on Interstate 96 when traffic slowed and his car was hit from behind by a driver who was distracted by her phone, Kiefer said. His car was knocked across the median and into oncoming traffic, where he was killed instantly. The crash was not reported as involving a distracted driver, illustrating how distracted driving deaths are under-reported, Kiefer said. Part of the increase in crash deaths is due to people driving more as the coronavirus pandemic waned. NHTSA reported that the fatality rate per 100 million vehicle miles traveled increased 2.2% to 1.37 in 2021. NHTSA also estimates that 2.5 million people were injured in crashes during 2021, up 9.4% from 2020. The agency said it will release preliminary 2022 traffic death data in the coming weeks. NHTSA estimates that 31,785 people were killed in crashes from January through September last year, down 0.2% from the same period of 2021.

EPA approves California rules phasing out diesel trucks

SACRAMENTO, Calif. — The Biden administration cleared the way on Friday, March 31, for California’s plan to phase out a wide range of diesel-powered trucks, part of the state’s efforts to drastically cut planet-warming emissions and improve air quality in heavy-traffic areas like ports along the coast. The decision by the U.S. Environmental Protection Agency (EPA) allows California — which has some of the nation’s worst air pollution — to require truck manufacturers to sell an increasing number of zero-emission trucks over the next couple of decades. The rule applies to a wide range of trucks including box trucks, semis and even large passenger pick-ups. “Under the Clean Air Act, California has longstanding authority to address pollution from cars and trucks. Today’s announcement allows the state to take additional steps in reducing their transportation emissions through these new regulatory actions,” said EPA Administrator Michael Regan, in a statement. Gov. Gavin Newsom applauded the state’s role as a leader for setting ambitious vehicle emission standards. “We’re leading the charge to get dirty trucks and buses – the most polluting vehicles – off our streets, and other states and countries are lining up to follow our lead,” the Democrat said in a statement. Reaction among those in the trucking industry, however, wasn’t as pleasant. “This is another example of California approving onerous regulations that increase operating costs for truckers within the state. Whether its CARB emissions requirements or misguided legislation like AB5, it’s no surprise we’re seeing small-business truckers and independent contractors looking for opportunities elsewhere,” Owner-Operator Independent Drivers Association (OOIDA) President Todd Spencer said in a statement. “Vehicle reliability and affordability are top priorities for OOIDA members. We have yet to see proof that electric CMVs are a realistic option for most trucking businesses considering the price tag and lack of charging infrastructure. The bottom line is that the technology they’re trying to mandate does not yet exist.” American Trucking Associations President and CEO Chris Spear said the EPA’s decision to allow California “to move forward with damaging and unrealistic emissions rule” will harm the industry nationwide. “By granting California’s waiver for its so-called ‘advanced clean trucks’ rule, the EPA is handing over the keys as a national regulator,” Spear said. “This isn’t the United States of California, and in order to mollify a never satisfied fringe environmental lobby by allowing the state to proceed with these technologically infeasible rules on unworkable and unrealistic timelines, the EPA is sowing the ground for a future supply chain crisis.” “As we learned since the pandemic, our supply chain is fragile, and even small disruptions can cause huge problems nationally and globally, and by allowing this incredibly disruptive, ill-conceived regime to move forward, EPA is creating a terrible mess for the hard-working men and women of our industry and the country to clean up,” he continued. “We have and will continue to work tirelessly with the EPA on aggressive, achievable timelines for reducing emissions. Over the past 35 years, that collaboration has produced a 98% reduction in truck emissions. We continue to be committed to the path to zero, and we hope EPA will, as it becomes clear that California’s rhetoric is not being matched by technology, reverse course and create a single, achievable national standard.” The EPA typically sets standards for tailpipe emissions from passenger cars, trucks and other vehicles, but California has historically been granted waivers to impose its own, stricter standards. Other states can then follow suit, and eight other states plan to adopt California’s truck standards, Newsom’s office said. In a letter last year, attorneys general from 15 states, Washington, D.C., and New York City urged the EPA to approve the California truck standards. The transportation sector accounts for nearly 40% of California’s greenhouse gas emissions. Newsom has already moved to ban the sale of new cars that run entirely on gasoline by 2035. The EPA has not acted on those rules. The new truck standards are aimed at companies that make trucks and those that own large quantities of them. Companies owning 50 or more trucks will have to report information to the state about how they use these trucks to ship goods and provide shuttle services. Manufacturers will have to sell a higher percentage of zero-emission vehicles starting in 2024. Depending on the class of truck, zero-emission ones will have to make up 40% to 75% of sales by 2035. California has a long legacy of adopting stricter tailpipe emission standards, even before the federal Clean Air Act was signed into law, said Paul Cort, a lawyer with environmental nonprofit Earthjustice. “We have a vehicle problem,” Cort said. “We’re addicted to our cars and trucks, and that’s a big cause of the air pollution that we’re fighting.” But Wayne Winegarden, a senior fellow at the Pacific Research Institute, said it’s too soon to adopt the California standards. “The charging infrastructure is certainly not there,” he said about powering stations for electric vehicles. “And on top of the charging infrastructure, we have the grid issues.” While California was hit this winter by atmospheric rivers that soaked much of the state, it has for years suffered from drought conditions, and in September, a brutal heat wave that put its electricity grid to the test. The announcement came as advocates are pushing for more ambitious tailpipe emissions standards in other states and at the national level. “We don’t just fight for California, we fight for all of the communities,” said Jan Victor Andasan, an activist with East Yard Communities for Environmental Justice. The group advocates for better air quality in and around Los Angeles, the nation’s second-most populous city that is known for its dense traffic and intense smog. Andasan and other environmental activists from across the country who are a part of the Moving Forward Network, a 50-member group based at Occidental College in Los Angeles, met with EPA officials recently to discuss national regulations to limit emissions from trucks and other vehicles. But some in the trucking industry are concerned about how costly and burdensome the transition will be for truck drivers and companies. “The state and federal regulators collaborating on this unrealistic patchwork of regulations have no grasp on the real costs of designing, building, manufacturing and operating the trucks that deliver their groceries, clothes and goods,” said Chris Spear, president of the American Trucking Association, in a statement. “They will certainly feel the pain when these fanciful projections lead to catastrophic disruptions well beyond California’s borders,” he added. Federal pollution standards for heavy trucks are also getting tougher. The EPA released rules that will cut nitrogen oxide pollution, which contributes to the formation of smog, by more than 80% in 2027. The agency will propose greenhouse gas emissions limits this year. The agency expects the new standards and government investment will lead to zero-emissions electric and hydrogen fuel cell trucks carrying most of the nation’s freight. California activists Andasan and Brenda Huerta Soto, an organizer with the People’s Collective for Environmental Justice, are troubled by the impact of pollution from trucks and other vehicles on communities with a large population of residents of color that live near busy ports in Los Angeles, Oakland and other cities as well as warehouse-dense inland areas. Huerta Soto works in Southern California’s Inland Empire, where a high concentration of trucks pass through to transport goods. On top of truck pollution, the many cars, trucks and trains that travel through the area burden residents with noises, odors and pollutants these vehicles emit, she said. “We have the technology, and we have the money” to move toward zero-emission vehicles, she said. The Associated Press contributed to this report.

Georgia lawmakers strike deal on truck weight limits

ATLANTA — Georgia lawmakers reached a last-minute deal early Thursday, March 30, to increase the weight limit for some trucks traveling state highways. The legislature gave final passage to House Bill 189, which would allow a weight limit of 88,000 pounds for trucks hauling agricultural and forest commodities. The current limit on state roads is 80,000 pounds, but trucks are allowed a variance of up to 84,000 pounds. If Gov. Brian Kemp signs the measure into law, the greater weight would be allowed only on local roads and state highways, not interstates. The heavier trucks could only travel within a 150-mile radius of their point of origin and wouldn’t be allowed in 13 core metro Atlanta counties. House and Senate negotiators reached a compromise on the final day of the 2023 legislative session and the Senate cast the final vote at several minutes past midnight. A key part of the deal was that the higher weight limits would expire on July 1, 2025. And while truck weights in Georgia are now enforced only by the state Motor Carrier Compliance Division, lawmakers agreed to allow local police and sheriff’s departments to write tickets for overweight trucks stopped on local roadways. The debate over truck weights pit logging, farming and trucking groups against city and county governments and the state Department of Transportation, which fiercely opposed boosting truck weights. Groups seeking the increase said they could save money by hauling more freight per trip. Loggers argued the change could make the difference between profit and loss in their low-margin industry. But opponents warned that heavier trucks will cause more damage to roads and bridges, requiring expensive repairs, and possibly cause more crashes because of increased stopping distance. Trucks would remain limited to 80,000 pounds on interstate highways. The Senate insisted on an expiration date for the increase, saying Georgia needs to increase funding for its transportation system. Lawmakers have been pushing for a statewide freight and logistics plan, but it would cost another $1 billion a year, at least, to pay for projects including wider highways, improved interchanges and expanded railroads. Kemp had been allowing heavy trucks that get special permits to haul up to 95,000 pounds, under a supply chain emergency order that he repeatedly renewed. But that order finally expired on March 11, reducing the limit to 84,000 pounds.

Truck Parking Improvement Act introduced in Congress

WASHINGTON — Over the past year, federal officials — from President Joe Biden to Transportation Secretary Pete Buttigieg — have promised to do more to help truck drivers. Now, both the House and Senate are pledging their support as well. If passed, the act would allocate $755 million over three years to the construction of parking spots. According to the bill, any project funded by the bill cannot include paid parking. All parking under the bill must be publicly accessible and free of charge. Illinois Republican Rep. Mike Bost reintroduced legislation on Wednesday, March 29, that would provide U.S. Department of Transportation funding on a competitive basis for the construction of new parking spaces for large commercial trucks. Bost was joined in introducing the Truck Parking Safety Improvement Action by Minnesota Democrat Rep. Angie Craig and U.S. Sens. Mark Kelly, D-Ariz, and Cynthia Lummis, R-Wyo. “I grew up in a family trucking business,” Bost said. “I understand how difficult, and oftentimes dangerous, it can be when America’s truckers are forced to push that extra mile in search of a safe place to park. By expanding access to parking options for truckers, we are making our roads safer for all commuters and ensuring that goods and supplies are shipped to market in the most efficient way possible. This is a matter of public safety; and I’m committed to do all I can to drive this legislation over the finish line.” American Trucking Associations President Chris Spear said that the lack of safe and accessible truck parking “places an enormous and costly burden on our nation’s truck drivers as they work to deliver for the American people.” “Given the chronic nature of this issue and its national scope, it is imperative Congress takes action to provide dedicated funding to expand commercial truck parking capacity,” Spear said. “We thank Representatives Bost and Craig for their leadership on this vital piece of legislation, which will strengthen our supply chain and improve highway safety for all motorists,” Todd Spencer, president of the Owner-Operator Independent Drivers Association, said that the majority of Americans don’t realize that 70% of the nation’s freight is transported by truck, yet there is only one parking spot for every 11 trucks on the road. “When truck drivers don’t have a designated place to park, they end up parking on the side of the road, near exit ramps, or elsewhere,” Spear said. “This isn’t safe for the driver and it’s not safe for others on the road. Senator Lummis, Senator Kelly, Representative Bost, and Representative Craig have heard from small business truckers across America and are leading the charge in Congress to improve road safety through expanded truck parking.” Harry Adler, principal of the Institute for Safer Trucking, said his organization fully supports the proposed parking act. “If we are going to improve safety throughout the trucking industry, it is essential to prioritize the safety and well-being of commercial truck drivers,” he said. “By providing safe and accessible truck parking facilities, we can help ensure that drivers are well rested.”

Average US diesel prices down for 8th straight week

LITTLE ROCK — The average price for a gallon of diesel fuel in the U.S. is continuing to drop. According to the latest statistics from the Energy Information Administration (EIA) the current average price sits at $4.128, down from $4.185 on March 20 and $4.247 on March 13. Many refiners have prioritized making diesel over gasoline to meet demand from Europe, where sanctions on Moscow and strikes in France have limited distillate flows into the region, Brayton Tom, regional director for energy at financial services firm StoneX, told Reuters recently. U.S. refineries are operating at 86% of capacity, down from 89% a year ago; however, a major Exxon Mobil Corp refinery expansion could raise output. When fully operating this month, it will be able to process 250,000 additional barrels of crude daily into gasoline and diesel.

For-hire trucking capacity growth seeing sharp slowdown

COLUMBUS, Ind. — Freight volumes and rates declined in February, but the industry is closer to the end than the start of the freight downcycle. According to the latest release of ACT Research’s For-Hire Trucking Index, rate trends should begin to recover as soon as traction on freight volumes is established, and slower capacity growth in March is a hopeful sign that the bottoming process is closer, as fleets begin to respond to softer market conditions. The Trucking Volume Index was in contraction territory for the eighth month of the past 11 in February at 41.3 (seasonally adjusted) from 51.6 in January. Volumes remained soft amidst a market of mixed economic signals. Tim Denoyer, vice president and senior analyst at ACT Research, said, “The soft freight market persists as inflation continues to impact consumers’ purchasing power, and recent bank failures and job cuts make recession more likely.” Pricing Index weakness continues, decreasing 6.3 points, to 39.3 in February (seasonally adjusted) from 45.6 in January. This is only the fourth time in the index’s history that prices have been in the thirties. “The cure for low prices is low prices, and we currently estimate spot rates are 16% below fleet operating costs, which should expedite this bottoming process,” Denoyer said. “Even as freight demand fundamentals will likely remain soft, seasonal increases in TL (truckload) volumes as capacity slows and eventually tightens will build the bottom of the spot rate cycle in the next couple of months.” The Capacity Index declined by 3.7 points month-over-month to 51.0 in February, indicating slower growth. Capacity has improved in terms of both equipment and drivers the past year, with improvements in the supply chain and as drivers have shifted to larger, well-capitalized fleets after the sharp fall in spot rates. After rallying in January, the Supply-Demand Balance reverted looser, falling to 40.1 (seasonally adjusted) in February from 47.0 in January, with the month-over-month declines in both volumes and capacity. “The trucking market has been loose for a full year based on this series,” Denoyer said. “Though the loose environment is expected to persist in the near term, we expect less loosening from here.”

Monster Mississippi tornado kills dozens, tosses big rigs like toys across city

ROLLING FORK, Miss. — Help began pouring into one of the poorest regions of the U.S. after a deadly tornado tore a path of destruction for more than an hour across a long swath of Mississippi, even as furious new storms Sunday, March 26, struck across the Deep South. At least 25 people were killed and dozens of others were injured in Mississippi as the massive storm ripped through more than a half-dozen towns late Friday, March 24. A man was also killed in Alabama after his trailer home flipped over several times. “Everything I can see is in some state of destruction,” said Jarrod Kunze, who drove to the hard-hit Mississippi town of Rolling Fork from his home in Alabama, ready to help “in whatever capacity I’m needed.” Two people were killed when a semi-truck was thrown on top of their home by the twister. Melissa Pierce and her husband L.A. Pierce lived on 7th Street in Rolling Form when the rig was picked up from two houses away by the nearly 200 mph winds. Multiple 18-wheelers were tossed like toys in the storm, though there is no word yet on if drivers were among those killed. Kunze was among volunteers working Sunday, March 26, at a staging area, where bottled water and other supplies were being readied for distribution. Search and recovery crews resumed the daunting task of digging through flattened and battered homes, commercial buildings and municipal offices after hundreds of people were displaced. The storm hit so quickly that the sheriff’s department in Rolling Fork barely had time to set off sirens to warn the community of 2,000 residents, said Mayor Eldridge Walker. “And by the time they initiated the siren, the storm had hit and it tore down the siren that’s located right over here,” Walker said, referring to an area just blocks from downtown. The mayor said his town was devastated. “Sharkey County, Mississippi, is one of the poorest counties in the state of Mississippi, but we’re still resilient,” he said. “We’ve got a long way to go, and we certainly thank everybody for their prayers and for anything they will do or can do for this community.” President Joe Biden issued an emergency declaration for Mississippi early Sunday, March 26, making federal funding available to hardest hit areas. “Help is on the way,” Mississippi Gov. Tate Reeves said at a news conference with local, state and federal leaders. Recovery efforts in Mississippi were underway even as the National Weather Service warned of a new risk of more severe weather Sunday, March 26 — including high winds, large hail and possible tornadoes in Georgia, Louisiana, Mississippi and Alabama. A tornado touched down early Sunday, March 26, in Troup County, Georgia, near the Alabama border, according to the Georgia Mutual Aid Group. Affected areas included the county seat of LaGrange, about 67 miles southwest of Atlanta About 100 buildings were damaged, with at least 30 uninhabitable, and five people suffered minor injuries, officials said. Many roads, including Interstate Highway 85, were blocked by debris. Two tigers briefly escaped from their enclosures at Wild Animal Safari in Pine Mountain, Georgia, after the park sustained extensive tornado damage. “Both have now been found, tranquilized, and safely returned to a secure enclosure,” the park said on Facebook. None of its employees or animals were hurt, it said. Outside of Rolling Fork, a tornado ripped apart the home where Kimberly Berry lived in the Delta flatlands. The twister left only a foundation and a few belongings — a toppled refrigerator, a dresser and nightstand, a bag of Christmas decorations, some clothing. Berry said she and her 12-year-old daughter huddled and prayed inside a nearby church as the storm roared outside. “I didn’t hear nothing but my own self praying and God answering my prayer. I mean, I can get another house, another furniture. But literally saving my life — I’m thankful,” she said. Following Biden’s declaration, federal funding will be available for recovery efforts in Mississippi’s Carroll, Humphreys, Monroe and Sharkey counties, including temporary housing, home repairs, loans covering uninsured property losses and other individual and business programs, the White House said in a statement. The twister flattened entire blocks, obliterated houses, ripped a steeple off a church and toppled a municipal water tower. Based on early data, the tornado received a preliminary EF-4 rating, the National Weather Service office in Jackson said in a tweet. An EF-4 tornado has top wind gusts between 166 mph and 200 mph. A good demonstration of how powerful the Rolling Fork, Mississippi tornado was. The swirling winds lifted up these two 18-wheeler lorries and they landed on top of a neighbouring house. pic.twitter.com/sNwzi6CY3L — Martha Kelner (@marthakelner) March 27, 2023 In Rolling Fork, the tornado reduced homes to piles of rubble and flipped cars on their sides. Other parts of the Deep South were digging out from damage caused by other suspected twisters. The Federal Emergency Management Agency said 25 people were confirmed killed in Mississippi, 55 people were injured and 2,000 homes were damaged or destroyed. High winds, hail and strong storms were expected for parts of Alabama and Georgia on Sunday, March 26, the National Weather Service said. The tornado that slammed into Rolling Fork tore across Mississippi for about 59 miles over a period that lasted more than one hour, the National Weather Service said in a preliminary report Sunday, March 26. The tornado was an estimated three-quarters of a mile wide at some points, according to the preliminary estimate. The supercell that produced the deadly twister also appeared to produce tornadoes causing damage in northwest and north-central Alabama, said Brian Squitieri, a severe storms forecaster with the weather service’s Storm Prediction Center in Norman, Oklahoma. In Georgia, Rachel McMahon awoke Sunday, March 26, to news from her father that the Troup County motel he’d been staying in was destroyed. She said her dad, who is disabled, took shelter in the bathtub when the tornado hit. He was badly shaken up, but not injured. She had to walk the last half-mile to his motel because of downed trees. “SO thankful my dad is ok,” she posted on Facebook, along with photos and videos of the damage: houses with gaping holes in roofs, massive tree trunks snapped in half and powerlines dangling every which way. The Trucker Staff contributed to this report.

Truck drivers welcome lower diesel prices as California considers punishing oil companies for high prices

LITTLE ROCK, Ark. — Just a few weeks ago, Idaho-based truck driver J. Savage had to spend more than $500 to fill up his big rig. At today’s prices of just around $4 per gallon, it costs him about $480. While not a huge savings, Savage said it means more money in his pocket at a time when the economy is very tight. “Every bit adds up,” he said on Thursday, March 23, at a truck stop in Little Rock. The average price for a gallon of diesel fuel in the U.S. has been trickling down since late January, now sitting at $4.185, according to the Energy Information Administration (EIA). California — which consistently has the highest diesel prices in the nation due to strict regulations — has also seen a drop in the average price. Despite that, state leaders are considering punishing big oil companies for gouging customers. According to the EIA, the current average price for a gallon of diesel in the Golden State sits $5.260. That’s down from around $5.50 per gallon on average in January. “It can mean the difference between paying bills on time or not,” said California trucker Eddie Sanders. “I mean, some people say that it isn’t much of a savings, but to me it really is. I know that I’d like to see it down around $4 a gallon for sure, but I will take what I can get right now.” With rising diesel reserves and easing demand, diesel prices have been in a slow decline for seven straight weeks. Along the Gulf Coast, drivers will find the cheapest prices in the nation at $3.930 per gallon on average. Patrick De Haan, head of petroleum analysis at GasBuddy, said, “While oil prices edged slightly lower on weaker outlooks for economic growth, continued refinery maintenance and the higher cost of seasonal blends of fuel are offsetting oil’s decline. The price of diesel, however, continues to slowly decline as we see consumption for diesel lighten up. The best news for both gasoline and diesel prices is how significant a drop we’ve seen from year-ago levels, with more disinflation to come in the weeks ahead, even as gas prices are likely to inch up.” Meanwhile, a first-in-the-nation bill to punish oil companies for profiting from price spikes at the pump breezed through the California Senate on Thursday at the urging of Democratic Gov. Gavin Newsom, the first major vote in an effort to pass the law by month’s end. The proposal is in response to sales last summer, when the average price of a gallon of gasoline in California soared to a record high $6.48. Drivers in some places paid as much as $8 per gallon, prompting widespread outrage in an election year. Newsom, a Democrat, reacted by attacking the oil industry, specifically the five companies that provide 97% of fuel in the state. He asked the Democratic-controlled state Legislature to pass a new tax on oil company profits, arguing it would protect consumers by preventing price spikes. That idea went nowhere in the Legislature, as lawmakers feared it would create chaos in the petroleum market and cause companies to make less fuel, thus increasing prices. Instead, lawmakers and Newsom settled on a bill that would let the California Energy Commission decide whether to impose civil penalties on oil companies for price gouging. The commission – a five-member panel appointed by the governor with the consent of the Senate – would rely on information from a new state agency that would have the power to monitor the market, including forcing companies to disclose financial information and having the power to subpoena oil executives to testify. In 10 years, the bill requires the state auditor to investigate the program to find out if it is working to reduce fuel prices. If it’s not, the auditor can order the program to shut down – but lawmakers will have six months to review that decision and reverse it if they choose. “It is our role to protect our residents from any practices of any business that may harm them,” said state Sen. Nancy Skinner, a Democrat from Berkeley and the author of the bill. The bill highlights the challenges of balancing the competing pressures of protecting consumers at the pump while at the same time pushing policies to end the state’s reliance on fossil fuels. California’s climate strategy — which includes banning the sale of most new gas-powered vehicles by 2035 — would reduce demand for gasoline by 94% by 2045. “There are consequences for doing what we are doing, and (high gas prices) are one of the consequences,” said state Sen. Kelly Seyarto, a Republican from Murrieta who opposes the bill. California’s gasoline prices are already higher than most other states because of taxes, fees and environmental regulations. California’s gas tax is the second-highest in the country at 54 cents per gallon. And the state requires oil companies make a special blend of gasoline to sell in California that is better for the environment but is more expensive to produce. Still, at one point during the price spike last year the average price of a gallon of gasoline in California was more than $2.60 higher than the national average — a difference regulators say is too large to be explained by taxes, fees and regulations. Much of the oil industry’s complaints about the bill have focused on the new, independent state agency lawmakers would create create to investigate the market. Oil companies would be required to disclose massive amounts of data to this agency, giving regulators a better sense of what could be driving price spikes. And, crucially, the agency would have subpoena power to compel oil company executives to testify. Kevin Slagle, spokesperson for the Western States Petroleum Association, said oil companies would have to report data on 15,000 transactions per day, what he called “a ridiculous level of reporting” that would drive up costs. He said the real problem with California’s gas prices are state laws and regulations that hinder the supply of fuel. He criticized Newsom and lawmakers for rushing the bill through the Legislature with little input from the oil industry. “Why does the governor want to jam this through? Clearly it’s because the details of this are not good for California consumers,” Slagle said. “They don’t address the problem, but it provides him a political win.” Dana Williamson, Newsom’s chief of staff, said she has repeatedly had meetings with representatives from the oil industry to discuss the bill, including meetings with specific companies and two meetings with the Western States Petroleum Association. “It’s a ridiculous over exaggeration that they have been cut out,” Williamson said. The Associated Press contributed to this report.

Future of $900B US trucking industry could be decided in California

LOS ANGELES — As California regulators explore new rules to put self-driving semi-trucks on the road, labor unions are rushing to the state Legislature to ask for a new law they say will protect their jobs — the start of a debate that could shape the future of the nation’s nearly $900-billion trucking industry. California already has rules governing self-driving cars and delivery trucks that weigh less than 10,001 pounds. Now, the California Department of Motor Vehicles is gathering information for potential new rules that would let self-driving semi-trucks weighing as much as 80,000 pounds on the road. The rule-making process takes a long time, and is mostly crafted by officials in Democratic Gov. Gavin Newsom’s administration. Labor unions aren’t waiting around for that to happen. Instead, they’ve asked the Legislature — where they have considerably more influence given their prolific campaign contributions — to intervene. More than 100 members of the International Brotherhood of Teamsters joined Assembly member Cecilia Aguiar-Curry, a Democrat from Winters, earlier this year as she announced new legislation to require all self-driving semi-trucks to have a human driver present to oversee them. Labor leaders have focused much of their messaging on public safety — an argument seemingly tailored to appeal to the driving public. Mike Fry, a San Francisco truck driver with 27 years of experience, told a frightening story about a passenger car losing control and getting wedged beneath his trailer. Fry said he knew not to slam on the brakes, so he slowly made his way to the side of the road and drove next to some bushes that dislodged the car, which he said “popped the car out like a Pop-Tart.” “You cannot program instinct into a computer,” Fry told the crowd. “There is no way they can think like that.” But beyond safety issues, labor unions see the technology as a threat to their jobs. Speakers at the rally attacked what they view as corporate greed, name-dropping Elon Musk, the billionaire head of electric vehicle company Tesla. The company has promised to deliver semi-trucks that would be able to follow one another autonomously in a convoy. Teamsters regional Vice President Lindsay Dougherty said California has 500,000 commercial truck drivers on the road, giving it outsized importance in terms of shaping national transportation policy. “So goes California, so goes the rest of the nation,” she said. “If we lose this, we’re never getting them back.” Multiple companies are testing self-driving technology for semi-trucks, and many have eyed California as a place to eventually deploy the technology given its busy ports that require lots of trucks to transport goods to warehouses. The Autonomous Vehicle Industry Assn., an industry trade group that supports self-driving technology, has argued that autonomous trucks would make for safer roadways, asserting that computers make fewer mistakes than humans. Asked about Aguiar-Curry’s bill, the group pointed to a statement from Executive Director Jeff Farrah issued last week in response to a public hearing on potential new state regulations. “It’s important to remember that it will take time for AV [autonomous vehicle] trucks’ full potential to be reached in the Golden State, with deployment taking place gradually over the years to fill in current and future labor shortages,” Farrah said. “Therefore, it is imperative the California DMV begin a rule-making for development of AV trucks so consumers and businesses can realize these opportunities while also preparing the workforce of tomorrow for this shift.” Aguiar-Curry said she isn’t opposed to fully self-driving semi-trucks but believes the technology isn’t ready. “There may be a time, 30 or 40 years from now — and I won’t be around to see it — where hopefully that they might be able to do that,” she said. “This isn’t the time to do it. It’s all about timing.”

ATA’s Truck Tonnage Index increased 1.2% in February

WASHINGTON — American Trucking Associations’ (ATA) advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index rose 1.2% in February after increasing 0.6% in January. In February, the index equaled 118.4 (2015=100) compared with 117 in January. “Tonnage has increased sequentially for the last three months totaling 2.9 percent,” ATA Chief Economist Bob Costello said. “As a result, the index is just 0.3 percent below the recent high in September. The fact that our index is growing sequentially and on a year-over-year basis demonstrates that contract freight continues to hold up at high levels. Compared with February 2022, the SA index increased 2.3%, which was the eighteenth straight year-over-year gain, but the largest since October. In January, the index was up 1.4% from a year earlier. In 2022, compared with the average in 2021, tonnage was up 3.5%. “Looking ahead, we continue to see evidence the inventory cycle is improving, which means bloated stocks will stop being a headwind and eventually help truck freight volumes,” Costello said. “Increased infrastructure spending will also boost volumes heading into the summer months. However, we expect to see continued freight softness related to lower home construction and slowing factory output.” The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 107.6 in February, 4.5% below the January level (112.6). In calculating the index, 100 represents 2015. ATA’s For-Hire Truck Tonnage Index is dominated by contract freight as opposed to spot market freight. Trucking serves as a barometer of the U.S. economy, representing 72.2% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods. Trucks hauled 10.93 billion tons of freight in 2021. Motor carriers collected $875.5 billion, or 80.8% of total revenue earned by all transport modes. ATA calculates the tonnage index based on surveys from its membership and has been doing so since the 1970s. This is a preliminary figure and subject to change in the final report issued around the 5th day of each month. The report includes month-to-month and year-over-year results, relevant economic comparisons and key financial indicators.

White House reportedly fast-tracking California’s plans to phase out diesel engines

WASHINGTON — The Biden administration is reportedly preparing to approve strict new California pollution rules that will phase out diesel-powered trucks beginning with 2024 year models. The Washington Post, which cited “three people briefed on the plans” but did not name them, first reported the news March 20. This prompted the American Trucking Associations (ATA) to quickly release a statement against the measure. “Today, the American Trucking Associations expressed grave concerns about media reports that the Environmental Protection Agency (EPA) may be on the verge of granting the state of California waivers to implement potentially harmful and unrealistic emissions rules,” an ATA news release stated. ATA President and CEO Chris Spear said he hopes the reports aren’t true; The Trucker is working to independently verify the news. “We have worked tirelessly with EPA on aggressive, achievable timelines for emissions reductions over decades,” Spear said. “In fact, a truck in 1988 emitted as much as 60 trucks today — a more than 98% reduction — and we’re committed to the path to zero.” Spear further stated, “If the reports are in fact accurate, let us remind you that this isn’t the United States of California. As we learned in the pandemic, the supply chain can be a fragile thing — and its integrity must be preserved at the national level. This decision has little to do with improving the environment, and everything to do with placating the far left of the environmental lobby without regard for the hard-working men and women of our industry or our country who will be left to implement California’s vision for America.” Spear added that state and federal regulators collaborating “on this unrealistic patchwork of regulations have no grasp on the real costs of designing, building, manufacturing and operating the trucks that deliver their groceries, clothes and goods, but they will certainly feel the pain when these fanciful projections lead to catastrophic disruptions well beyond California’s borders.” The Post reported that the Environmental Protection Agency (EPA) “intends to grant California ‘waivers’ to enforce environmental rules that are significantly tougher than federal requirements and that state regulators have already ap California’s new policies include stricter pollution limits for heavy-duty vehicles — such as delivery vans, garbage trucks and 18-wheelers — that require them to cut emissions of nitrogen oxide and particulate matter.” These rules would apply to vehicles beginning with the 2024 model year, three years ahead of the administration’s latest regulations, which start with the model year 2027.

Mixed signals: Rates continue downward trend as freight volumes decline

The state of the trucking freight market remains murky, as recent reports send mixed messages. During February, the overall outlook spot rates remained suppressed, while contract rates continued a downward trend. Spot rates are notoriously more volatile than contract rates — to the detriment of the smaller carriers who depend on agent freight. The Cass Freight Index for Shipments, compiled using data from Cass Information Systems, declined by 0.3% in February compared to February 2022. The index increased by 3.8% from January, but when seasonally adjusted it declined by the same 0.3%. If that seems confusing, consider that typical February rates are 4.1% higher than January, so the 3.8% gain fell short of expectations. The Cass Freight Index for Expenditures is the larger indicator for February. Cass customers typically spend 1.9% less on shipping in February than in January, a number that grows to 3.9% when seasonally adjusted. Comparing current numbers to February 2022 and February 2021, however, provides a better picture of the market. Shipping expenditures this year were 28.4% higher than in February two years ago, but 9.7% lower than February one year ago. That’s an indication that the market, which showed strong growth coming out of the pandemic, has reversed course. The report, written by Tim Denoyer, vice president and senior analyst for ACT Research, states, “Soft real retail sales trends and ongoing destocking remain the primary headwinds to freight volumes, and sharp import declines suggest this type of environment will persist for several more months.” The Cass reports reflect primarily trucking data but also include other modes of shipping such as rail, pipeline, ship and air. Specific to trucking, however, is the Cass Truckload Linehaul Index, which fell 0.4% in February after a 0.9% drop in January. Compared to 2022, the January index fell 5.6% from January 2022 and the February index fell 5.6%. The index has fallen in each month since May 2022 as spot rates fell, followed by contract rates. “At the risk of stating the obvious, the fundamental reason truckload spot rates are still falling is there are too many drivers chasing too little freight,” Denoyer said. “But the freight market is constantly dynamic, and we expect current loose conditions to first rebalance and then tighten over the course of the next year or so.” A statistic that could help spur spot rates into a climb is a sad one for small carriers. The U.S. Department of Transportation reported nearly 2,000 carrier closings per day during the last quarter of 2022. Many of those were single-truck operations, begun by drivers who purchased trucks to take advantage of record-high spot freight rates, that failed when rates came down. As those trucks are removed from competition for broker freight, capacity tightens. The “rebalance” suggested by Denoyer indicates that when the number of trucks and loads is in balance, rates should rise again. We’re not there yet. A March 13 release from DAT Freight and Analytics reported load-to-truck ratios hitting their lowest point since May 2020 (in the thick of the COVID-19 shutdowns). Simply put, when there are fewer available loads and more trucks competing for them, rates decline. Spot rates for van and refrigerated freight hit two-and-a-half-year lows, according to the report. The average van spot rate on the DAT load board dropped to $2.24 in February, down 85 cents from February 2022 average rates. Refrigerated rates fared worse at $2.59 per mile, down 95 cents from February a year ago. Flatbed rates fell to $2.70 per mile, 51 cents below the average rate in February 2022. The DAT release also noted considerable differences between contract and spot rates. Average van contract rates, for example, were 63 cents per mile higher than average spot rates. Refrigerated contract rates were 57 cents higher, and the difference was 73 cents for flatbed rates. Obviously, truckers stand to increase their revenues if they can secure some rates by dealing directly with shippers. A March 13 Weekly Transportation Update from FTR noted that trucking experienced a sharp decline in employment in February, while the overall economy added 311,000 jobs. Fewer drivers means fewer trucks to haul freight — a factor that could help reverse declining rates. At the same time, the unemployment rate rose to 3.6% in February from a 50-year low of 3.4% in January. The Motive (formerly Keep Truckin) Monthly Economic Report claimed the trucking industry is rebounding, offering as evidence an increase of 10% in miles traveled compared to February of 2022. The report noted, however, that miles are still 15% lower than 2021 figures. The culprit is the Consumer Price Index (CPI) issued by the Bureau of Labor Statistics (BLS). According to the BLS, the CPI rose 0.4% in February after climbing 0.5% in January. That doesn’t seem like much but calculated on an annualized basis it’s well above the Federal Reserve’s target of 2% growth for the year. That could trigger another interest rate hike from the Fed. If there is good news, it’s in the number of new carrier registrations, which rose in February after months of decline. The Motive report states, “The trucking industry has borne the brunt of changing economic tides in 2022, getting punished with high diesel prices, rapidly decreasing volumes, and drastic declines in operating margins. We ended Q4 2022 with historically high out of business rates exceeding what was seen during the 2008-2009 financial crisis and a net contraction in the number of freight companies.” Adding more trucking companies into the mix, however, is only a good thing if there is freight to haul. The Motive report indicates softness in consumer demand: “Retailers aren’t investing in inventory due to softness in consumer demand, and they’re offering steep discounts to unload existing stock.” There is a ton of available information, but determining what it all means can be confusing. The peak profit time has ended but there is still money to be made. It’ll take judicious management, including some belt-tightening, for smaller carriers and owner-operators to be successful.

Funds now available for national EV charging infrastructure; regulations for big rig charging on hold

WASHINGTON — President Joe Biden is quickly moving forward to fulfill his administration’s promise to develop the nation’s electric vehicle (EV) charging infrastructure, as well as infrastructure for other alternative energy sources. The U.S. Department of Transportation (USDOT) just opened applications for a new multi-billion-dollar program to fund EV charging and alternative-fueling infrastructure in communities across the country and along designated highways, interstates and major roadways. According to a news release from the Federal Highway Administration (FHWA), “This is a key step towards the president’s goals of building a national network of 500,000 public EV charging stations and reducing national greenhouse gas emissions by 50–52% by 2030.” This news comes on the heels of the finalization of national minimum standards and requirements for EV charging stations set forth by the FHWA; however, these rules do not include electric big rigs — at least for now. FHWA officials said they “decided not to broaden the applicability of this final rule to include minimum standards for MD/HD (medium duty and heavy duty) EV charging infrastructure primarily so as not to preempt the pace of the technological innovation.” According to the American Trucking Associations, there are currently 1,215 medium-and heavy-duty electric trucks in operation, with 140,000 on order. That’s compared to 1.45 million battery-electric light-duty vehicles registered in the U.S. Despite acknowledging the unique needs of MD/HD EVs, several commenters on the Federal Register listing identified that the MD/HD EV sector “is less evolved than the light-duty EV charging sector and that, because this portion of the industry is still in its infancy, there may be a need to continue to monitor technological developments before solidifying certain requirements specific to MD/HD EV needs.” In fact, commenters pointed out that MD/HD EV charging technologies are evolving and will be used in a number of ways. While many medium-duty vehicles will likely charge at fleet depots and operate under hub-and-spoke business models where they would not venture significant distances from their base locations, a growing sector of MD/HD vehicles will require on-corridor charging. Some commenters suggested that these requirements be designed so as to consider the future accommodation of power demands and site use/circulation needs of long-haul trucking. Yet other commenters requested that requirements address MD/HD EV charging needs immediately, with some suggesting that a certain number of federally-funded EV charging parking spaces be designed to accommodate MD/HD needs. Many commenters identified an opportunity to coordinate MD/HD charging with required off-duty breaks for long-haul truckers. One commenter noted that the regulation should consider dwell time needs for MD/HD charging and ensure that dwell time fees not penalize MD/HDs for their longer dwell times for charging. A handful of commenters identified a need to modify EV charging signage so as to help longhaul truckers identify MD/HD charging opportunities that can best align with their federal hours of service requirements. As for funding the infrastructure needed to support EVs, the USDOT’s new Charging and Fueling Infrastructure (CFI) Discretionary Grant Program, established by the Bipartisan Infrastructure Law, will provide $2.5 billion over five years to a wide range of applicants, including cities, counties, local governments, and tribes. This round of funding makes up to $700 million from fiscal years 2022 and 2023 funding available to deploy EV charging and other alternative vehicle-fueling infrastructure projects in publicly accessible locations in urban and rural communities, as well as along designated Alternative Fuel Corridors (AFCs). “By helping bring EV charging to communities across the country, this Administration is modernizing our infrastructure and creating good jobs in the process,” U.S. Transportation Secretary Pete Buttigieg said. “With today’s announcement, we are taking another big step forward in creating an EV future that is convenient, affordable, reliable, and accessible to all Americans.” The CFI Discretionary Grant Program builds on the $5 billion National Electric Vehicle Infrastructure (NEVI) Formula Program. EV chargers constructed with CFI funds must adhere to those same standards, a requirement that supports a consistent charging experience for users and ensures that our national charging network is convenient, reliable and Made in America. “Extending EV charging infrastructure into traditionally underserved areas will ensure that equitable and widespread EV adoption takes hold,” said U.S. Secretary of Energy Jennifer M. Granholm. “Ensuring that charging stations are more visible and accessible in our communities addresses the concerns many American drivers have when considering making the switch to electric.” While the NEVI Formula Program sends money to states, Puerto Rico and D.C. to build EV charging infrastructure along designated Interstates, U.S. routes and state highways, the CFI Discretionary Grant Program awards competitive grants to projects serving a range of applicants to fill gaps in the national charging and alternative-fueling network and build out charging in communities. A priority of the CFI program is bringing EV charging into urban and rural communities, downtown areas and local neighborhoods, particularly in underserved and disadvantaged communities, as well as to designated alternative fuel corridors. “Both the NEVI and CFI programs will create good-paying jobs across the country as more workers are needed to install and maintain EV charging stations, and both programs will help put the country on a path to a nationwide network of 500,000 EV chargers by 2030,” the news release noted. The Bipartisan Infrastructure Law divides the CFI program into two distinct grant funding categories and requires that 50% of the funding over five years is made available for each: The Community Program will provide $1.25 billion to deploy publicly accessible EV charging infrastructure, along with hydrogen, propane or natural gas fueling infrastructure in communities. Infrastructure may be located on any public road or in other publicly accessible locations, such as parking facilities at public buildings, public schools, and public parks, or in publicly accessible parking facilities owned or managed by a private entity. The Corridor Program will provide $1.25 billion to deploy publicly accessible EV charging infrastructure and hydrogen, propane and natural gas fueling infrastructure along designated alternative fuel corridors. “FHWA is committed to helping towns and cities, large and small, build modern, sustainable infrastructure that promotes equity and opportunity for their local economies and net-zero emissions for the nation by 2050,” FHWA Administrator Shailen Bhatt said. “By encouraging the adoption and expansion of EV charging and alternative fuels, CFI program investments have the potential to significantly address the transportation sector’s outsized contributions to climate change.” Eligible applicants and projects for both categories are outlined in a Notice of Funding Opportunity. Applications are due by May 30, 2023. “It’s critical that we build a national charging network that provides EV drivers with the right type of charging in the right location — whether that’s high-powered charging on highway corridors and in urban hubs … where EV drivers or riders live, work and play,” Joint Office Executive Director Gabe Klein said. “By working with cities and communities through the CFI program to get this mix right, we can ensure that everyone has convenient and affordable access to riding and driving electric.”