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US diesel prices fall slightly as nation deals with outage rumors, supply challenges

LITTLE ROCK, Ark. — The average price for a gallon of diesel fuel across the United States fell on Nov. 14 to $5.313, down from $5.333 on Nov. 7, according to the Energy Information Administration (EIA). The price is more than $1.50 higher than this time last year, EIA statistics show. Prices are highest in New England and California, where, on average, a gallon costs $6.060 and $6.180, respectively. The lowest prices are along the Gulf Coast at $4.886 per gallon on average. Meanwhile, energy officials in the U.S. are still battling the online rumor mill about possible mass outages across the nation. While current data from the EIA shows that the U.S. has about a 26-day supply of diesel, the country will not actually run out of fuel soon, energy experts continue to stress. This figure doesn’t account for ongoing diesel production. The U.S. had 25.8 days’ worth in its stores in late October — a lower supply than in previous weeks, according to the EIA. That figure, paired with still-high fuel prices domestically and a looming energy crisis in Europe, has some social media users suggesting that in less than a month, no diesel fuel will be available. Patrick De Haan, a fuel analyst for the fuel price-tracker GasBuddy, said some regions, such as the Northeast and Mid-Atlantic, could be “extremely tight,” but that outages in individual stations aren’t indicative of broader shortages. Diesel inventories are particularly low on the east coast, with the Northeast experiencing the highest diesel prices, according to Georgia-based major fuel supply and logistics company Mansfield Energy. The Southeast is reporting the worst supply outages. And some truck stops, including major chains, have reported that they are temporarily out of fuel. “A lot of the time … it’s for a very brief period of time, 12 to 18 hours,” De Haan said. Still, rumors of mass shortages of diesel continue to fly online. “Diesel is going to run out in weeks,” reads text in a TikTok video posted recently, as a large truck spewing exhaust from its hood drives past the camera. “US sending another $400 million to Ukraine… By the way, we are about out of diesel fuel,” read a tweet posted Nov.4, receiving more than 4,000 shares. But this is a misunderstanding of the EIA data, according to agency spokesperson Jeff Barron. He explained that it accounts for current consumption without factoring in the oil that’s imported or produced by refineries, which refill supply. University of Houston energy lecturer Ed Hirs likened this statistic to a grocery store that carries a week of milk, saying that supply is always being replenished. “When the inventory was in 35 days last year we didn’t run out of diesel. In 25 days, we’re not running out of diesel,” he said. The U.S. could run out of diesel if there were no more diesel production, “but of course more diesel is produced every day,” said Carey King, an energy researcher at the University of Texas at Austin, in an email. De Haan said the 25-day figure isn’t a day-by-day countdown to zero; it changes only fractions of a percentage point each week. “It’s gotten to uncomfortable territory, but as recently as 2019, that number did drop to 26.0 days, so basically just fractions from where it is now,” he said. “But again, that does not mean we’re going to run out.” The supply is “low by historical standards,” Barron said, but it typically averages only around 30 days or so. De Haan attributed that crunch to several factors: seasonal maintenance, the lingering effects of the COVID-19 pandemic and the U.S.’ competition with Europe for energy, as Western countries wean themselves off of Russian gas amid the war in Ukraine. Purporting to show proof of the coming supply chain collapse, some Twitter users have been reposting a photo of a highway sign in Pennsylvania warning of “no diesel” at the Allentown Plaza fuel station. The Pennsylvania Turnpike’s official Twitter account flagged an outage at the station Saturday afternoon, attributing it to a “computer issue,” not a shortage. Diesel service had been restored by that night, the account tweeted. The Trucker Staff contributed to this report.

New survey shows uptick in number of truck drivers seeking new jobs in industry

BRENTWOOD, Tenn. — Results from a new Conversion Interactive Agency (CIA) and People. Data. Analytics. (PDA) show that 40.2% of truck drivers are looking for new jobs in the industry, up 3% from the spring when 37% said they were actively searching. This was the highest percentage of drivers who claimed they were looking for a new job since CIA and PDA began asking this question in the spring of 2021. In addition, drivers shared they highly value online driver reviews when it comes to making the decision to drive for a new carrier. When asked if they read the online reviews of carriers or just look at the star rating, 58.4% said they do both, making online driver reviews a crucial component of a carrier’s online reputation management strategy. “As we move further into the digital age, it’s becoming increasingly clear that carriers need to adopt innovative technologies or risk falling behind in recruiting and retention,” Kelley Walkup, president and CEO of CIA, said. “Truck drivers are creating online communities and basing their next career move on the reviews of other drivers. They are using social and digital media to look for new driving jobs, and the technology is constantly advancing.” While online driver reviews are a determining factor in how professional drivers select a carrier, 54.6% said that they are more likely to accept a position if there is an offer of a sign-on bonus, making this a topic to discuss when navigating your recruiting strategy. The driver survey data download includes information on a variety of topics impacting drivers today, including not only driver communication topics, but also other challenges facing the industry. Given the recent softening of freight volumes within the last few months, 27.2% of drivers said that their miles have fluctuated, while 24.8% said they haven’t noticed a change. “Almost 50% of drivers stated that their miles have either decreased or fluctuated within the last 6-12 months,” Scott Dismuke, vice president of operations for PDA, said.  “One thing to keep in mind is that drivers who are new to the industry have not experienced a “typical” freight market, so these numbers are magnified with drivers who have entered the industry within the last two years. The next couple of months will be crucial in keeping an eye on freight volume, and carriers should keep communicating these shifts with their drivers as a top priority in their retention efforts.” In the survey, drivers also weighed in on whether shipper/consignee issues and delays would cause them to leave a job. An overwhelming 72.3% answered no, as it is uncommon for drivers to blame their carrier. However, when asked if they expect their carrier to fix these issues, 75.7% said yes. “While the data tells us that drivers are not blaming their carrier for issues with and delays with shippers/consignees, it is crucial for carriers to work with their shippers/consignees to improve any issues before they affect retention goals,” Dismuke said. “It is of utmost importance for carriers to have a way for drivers to report these issues with the expectation that you will report back with how you are handling the situation. Often, drivers do not understand that there isn’t always a quick fix, so communication is key in these situations.” Dismuke said as the economy continues to evolve, retaining drivers will remain a challenge for trucking companies. It’s not easy to keep drivers,” “There are a lot of individual factors that come into play,” Dismuke said. “Carriers need to have a good handle on their data, what their drivers are saying – and more importantly, who is saying it. The carriers that can quickly identify and address driver concerns will be at an advantage.” To access the full driver survey report, click here.  

Voters approve 88% of transportation improvement projects on ballot 

WASHINGTON — Voters in 18 states on Nov. 8 approved 88% of 380 state and local ballot initiatives that are expected to generate $19.6 billion in one-time and recurring revenue for transportation improvement projects, according to initial results compiled by the American Road & Transportation Builders Association (ARTBA). The results of 23 measures are pending.  The approval rate was higher than the historical average tracked by ARTBA’s Transportation Advocacy Center. Since 2010, voters in 44 states have approved an average 85% of nearly 3,000 state and local ballot measures, raising an estimated $342 billion in new and renewed revenue.   “A key takeaway is that voters remain committed to investing their tax dollars in better streets, roads, bridges, and transit systems even in the face of record inflation and high gasoline prices that are straining household budgets,” TIAC Director Carolyn Kramer Simons said.  Voter endorsement comes a year after passage of the federal Infrastructure Investment and Jobs Act. The revenue generated by the Nov. 8 results will help local governments compete for IIJA-related discretionary grants from the U.S. Department of Transportation.  Among the key outcomes:  Texas voters approved a combined $12.9 billion in spending from 114 measures, the most revenue of any state. Texans in 29 localities approved 27 measures—primarily local sales taxes and bonds—to generate $1.5 billion for city, town, and county transportation improvements.  San Francisco voters approved (69-31%) continuing an existing sales tax of 0.5% for an additional 30 years and authorized the Transportation Authority to issue up to $1.91 billion in bonds, to be repaid with the proceeds of the tax. It’s expected to generate up to $236 million annually.  El Paso County, Colorado, voters approved (80-20%) a one-cent sales tax to fund local transportation projects, generating an estimated $1 billion over the next 10 years. Of the approved revenue, 55% is allocated to capital projects, 35% to maintenance, and 10% to transit. Voters last renewed the measure with 79.5% of the vote in 2014.  The full ballot report is available on the Center’s website. 

Trucking industry’s November economic forecast shows slight uptick

COLUMBUS, Ind. — Relaxed supply chain constraints are making November’s trucking industry economic forecast look slightly better than October, according to ACT Research’s latest release of the North American Commercial Vehicle OUTLOOK, 2022. ACT Research stated that if inflation remains elevated, the Fed will continue its aggressive response, increasing the chance of a sharper decline in economic activity. Looking to 2023, Class 8 forecasts are unchanged, while Classes 5-7 reflect more of a pull forward in demand, according to ACT “Our 2023 forecasts belie current economic activity,” Kenny Vieth, ACT president and senior analyst, said. “Using Class 8 as an example, record orders in September followed by robust preliminary orders in October, large backlogs, a string of record-low cancellation months, and easing supply-chain constraints, all point to continued strength into 2023.” Vieth said the maxim to adhere to is “don’t fight the Fed,” adding that the longer inflation remains elevated, the more aggressively the Fed will respond with higher interest rates. “This, in turn, increases the chances of a sharper decline in economic activity, and results in fewer commercial vehicles required to facilitate this lower level of activity, and will likely exacerbate downward pressure on spot and contract rates, adversely impacting carrier profitability,” Vieth said. Vieth said that ACT is not yet willing to chase volumes all the way up the ladder in 2023. “The critical factor in forecasting 2023 is when do lower freight volumes and higher borrowing costs compress carrier profits sufficiently to kill the cycle?” Vieth said. “Our current thinking is the negatives begin to weigh on orders as soon as 1H’23 and more meaningfully by the second half of 2023; however, with prebuying ahead of the California Air Resources Board mandates that start in 2024 and considering carrier profitability strength, there is a compelling case to be made for production volumes to be sustained at 2022 levels through the end of 2023.”

1st winter storm of season rolls through Montana, Dakotas

FARGO, N.D. — The first winter storm of the season to blast off from the Rockies was unloading its energy Thursday primarily in North Dakota, where it could dump up to 18 inches of snow and kick up winds as high as 50 mph the National Weather Service said. The system started with a round of freezing drizzle that made driving tricky in the Dakotas. It led to a chain reaction crash that totaled a state trooper’s vehicle and closed Interstate 94 in eastern North Dakota for several hours Wednesday night and shut down I-29 in eastern North Dakota for a few hours on Thursday morning. Travel was hazardous throughout southern North Dakota by Thursday afternoon, when I-94 was closed from Dickinson in the west to Jamestown in the east, a distance of about 200 miles. The move was due to zero visibility, blowing snow and icy conditions. Officials also warned of impassable secondary roads. “Vehicles may become stranded and emergency responders may not be able to reach you safely,” the North Dakota Department of Transportation said in a release. The state’s capital city, Bismarck, was at a standstill with numerous closings and cancellations. A scheduled appearance by comedian Bert Kreischer was postponed to March and Kreischer’s tour bus got stuck in the snow before reaching the city. About a dozen people responded to a rescue plea by Kreischer on social media, The Bismarck Tribune reported. Storm warnings were issued Thursday for western Montana, for southwestern through northeastern South Dakota and for northwestern Minnesota, but meteorologist Carl Jones said North Dakota was getting the worst of it. “It’s mainly driven by heavy snow amounts,” said Jones, who works out of the weather service’s eastern North Dakota office in Grand Forks. “We are talking 1- to 2-inch per hour rates over a pretty wide swath.” A blizzard was hammering central North Dakota. Jacqueline Swiftbird, a cashier at the Flying J truck stop in Mandan, Bismarck’s neighboring city, said a semi-trailer that had been hauling other vehicles was stuck outside her window. She said she was the only cashier who could make it into work and that she picked up employees for restaurants and other shops in the travel center. “It is extremely, extremely hazardous out there,” Swiftbird said. “I am really busy being the only cashier but I would rather not have any other employees try to make it here in these conditions.” Snow totals by late afternoon Thursday included about 13 inches in Bismarck, 16 inches in New Salem, 14 inches in Steele, 10 inches in Harvey and 9 inches in Williston. The crash involving the North Dakota trooper’s vehicle happened about 6:30 p.m. Wednesday on I-94 near Jamestown, the state Highway Patrol said. The officer had gotten out of a vehicle after seeing a semi jackknife on the road and the patrol car was struck by a passenger car. The trooper was not injured. There were seven additional crashes at the same location, all in quick succession. Several people were transported to a Jamestown hospital with injuries, including one person with a broken leg, the patrol said. Jones, the meteorologist, said the first storm is always a learning or relearning experience. “We kind of lean on that. That first storm, if you will, of the season, we really try to get the message out to be extra cautious,” Jones said. “We’re really trying to remind people to practice good safe driving habits and get their winter survival kits into their vehicles.”

Potential railroad strike delayed until early December

OMAHA, Neb. — The possibility of an economically devastating railroad strike has been pushed back into early December to allow time for engineers and conductors to vote on their agreements with the freight railroads and give more opportunity for the industry to renegotiate with two unions that rejected their deals last month. Previously, a Nov. 19 strike deadline hung over the talks, but the Brotherhood of Maintenance of Way Employes Division union that represents track maintenance workers agreed Wednesday to delay any action at least until Dec. 4. So for now the trains operated by BNSF, Union Pacific, Norfolk Southern, CSX, Kansas City Southern and other railroads will continue delivering the raw materials and finished products that so many businesses in all industries need. The railroads are offering the biggest raises workers have seen in more than four decades, but railroads have resisted union demands to add paid sick time, and the new contracts won’t resolve all the workers’ quality of life concerns. All 12 rail unions must approve their deals to prevent a strike. Seven unions have ratified their five-year contracts with 24% raises and $5,000 in bonuses so far, but the BMWED and Brotherhood of Railroad Signalmen unions rejected their agreements. Three other unions are voting this month, and the two biggest unions that represent conductors and engineers aren’t set to announce their results until two days after the previous Nov. 19 deadline. “This agreement to extend the cooling off period affords all unionized employees the opportunity to vote on their agreements free of a looming strike threat,” said Ian Jefferies, president and CEO of the Association of American Railroads trade group. The outcome of the votes by the Brotherhood of Locomotive Engineers and Trainmen and the Transportation Division of the International Association of Sheet Metal, Air, Rail and Transportation Workers unions will play a major role in determining how this contract dispute is resolved because those workers that operate the trains have the most quality-of-life concerns about demanding schedules that keep them on call 24-7. And the renewed talks with the BMWED and BRS unions have stalled over the issue of paid sick time because the railroads don’t want to offer much more than what a panel of arbitrators President Joe Biden appointed recommended this summer. And the industry argues that the unions have agreed to forego paid sick time over the years in favor of higher wages and strong short-term disability benefits. The unions argue that the pandemic highlighted the need for the basic benefit of paid sick time that is taken for granted in most industries because the railroads temporarily offered some paid time off for COVID-related absences. The economic stakes of this contract dispute are so high that Congress is expected to step in and block a strike if the two sides can’t agree. Hundreds of business groups have urged lawmakers and Biden to be ready to intervene if necessary. The unions say they believe the railroads are banking on the idea that Congress won’t order them to offer more than the Presidential Emergency Board of arbitrators recommended. The BMWED said it plans to use the delay to talk more with members of Congress “about the railroad workers’ state of despair that management has created and the railroad workers’ need for paid sick time off.” That way if Congress does have to impose terms, the union hopes lawmakers will order the railroads to offer sick time along with the substantial raises.

Diesel prices rise as concerns about supply linger

LITTLE ROCK, Ark. — Prices at the pump are inching higher as the nation’s diesel supply is seeing some hiccups. According to the Energy Information Administration (EIA), the average price for a gallon of diesel sits at $5.33 per gallon, up from $5.31 last week and up nearly $2 a gallon over November last year. The war in Ukraine, Hurricane Ian, a Pennsylvania refinery fire and COVID-19-related shutdowns have all contributed to the supply constraints, industry insiders say. Patrick De Haan, head of petroleum analysis at GasBuddy, said that while national diesel supply remains tight, they have edged up over the past few weeks. The EIA reported a 400,000-barrel increase in U.S. distillate inventories for the week ended Oct. 28. “The majority of stations, especially away from the East Coast and Northeast, should have very few issues with diesel supply, though some stations in those regions could see diesel delivery times slip,” De Haan noted. “Brief outages at a limited number of stations are possible, but with refineries continuing to churn out product and maintenance wrapping up, I’m optimistic the situation will improve,” he said.

California voters weigh new tax on rich to boost electric big rig, passenger car adoption

SACRAMENTO, Calif. — Should California’s richest residents pay higher taxes to help put more electric vehicles on the road? That’s a question the state’s voters are weighing in the election that concludes Tuesday. Proposition 30 would place a new 1.75% tax on incomes above $2 million, which is estimated to be fewer than 43,000 taxpayers. It would raise billions annually, with most going to help subsidize the purchase of electric vehicles and construction of charging stations. Twenty percent of the money would go toward boosting resources to fight wildfires. The money won’t go exclusively to passenger cars; the state could also tap it to put cleaner delivery trucks, buses and even e-bikes on the roads. A portion of the money must go to help people in low-income or disadvantaged communities buy or access electric cars. Parts of Southern California and the Central Valley have some of the worst air quality in the country. Cleaning up pollution from cars, diesel trucks and public transit is essential to help the state meet its climate goals and protect public health, said Eli Lipmen, executive director for Move LA, one of the organization’s behind the measure. The measure provides an opportunity “to ensure that Californians who deserve the best air quality in the country actually get that,” he said. The ballot fight comes as California races to reduce emissions from transportation — by far the largest source — and meet its ambitious climate goals. Wildfires, meanwhile, are spewing more carbon into the air as they become larger and more destructive, threatening to set back the state’s progress. Though Democratic Gov. Gavin Newsom pushed for a policy that bans the sale of most new gas-powered cars in the state in 2035, he does not support Proposition 30. That’s pit him against the state Democratic Party and a number of environmental and public health organizations. Newsom has called it a taxpayer-funded giveaway to rideshare companies, which under California regulations must ensure nearly all trips booked through their services are zero-emission by 2030. Lyft supplied most of the “yes” campaign’s funding; competitor Uber has not taken a position. Backers of the measure, including most major environmental groups, say the state needs a dedicated, robust source of funding to set up infrastructure that can handle more plug-in cars and to help Californians of all income levels to buy them. This year, about 18% of new car sales have been for fully electric or hybrid cars, according to Newsom’s office. That will have to double by 2026 to meet new state mandates for car sales. Newsom has dedicated $10 billion over six years for various electric transportation programs, and the Biden administration has set aside $5 billion over five years to build a network of highway charging stations in every state. Rideshare companies like Lyft do not own the vehicles their drivers use, but they are still on the hook to ensure that trips booked through their app will be zero-emission. Proposition 30 does not include any provisions that exclusively benefit Lyft. But Newsom and other opponents say the measure would allow Lyft to rely on taxpayer dollars, not company money, to help its drivers transition to electric cars. “Put simply, Prop 30 is a Trojan Horse that puts corporate welfare above the fiscal welfare of our entire state,” Newsom says in a television ad against the measure. Supporters of the measure, though, say an effort to raise taxes on the rich to boost electric vehicle adoption was in the works before Lyft got involved. Other opponents included the California Chamber of Commerce and the California Teachers Association. Logging companies and numerous wealthy individuals also contributed money to the “no” campaign. It’s not the first time California voters have been asked to raise taxes on millionaires to pay for special programs. In 2004, they approved a ballot measure that raised taxes by 1% on incomes above $1 million to fund mental health services.

Though constrained, nation’s diesel fuel supply isn’t in danger of drying up, experts say

LITTLE ROCK, Ark. — After a large U.S. fuel distributor warned in late October of diesel fuel supply constraints in some areas of the country, rumors began circulating that a nationwide shortage was imminent. It’s not. Although some regional shortages may occur, there is enough diesel on hand and on the way to avoid a national crisis. In a news release issued on Monday, Oct. 31, Mansfield Energy reported that East Coast fuel markets are facing diesel supply issues due to market economics and tight inventories. “Poor pipeline shipping economics and historically low diesel inventories are combining to cause shortages in various markets throughout the Southeast,” the news release stated. “These have been occurring sporadically, with areas like Tennessee seeing particularly acute challenges.” Energy market experts have said that although the supply of diesel fuel is tight right now, it’s no cause for alarm. The U.S. isn’t about to run out of the vital fuel needed to run a majority of the big trucks that carry the goods the nation needs for survival. Last week, headlines indicating that the U.S. is down to a 25-day supply of diesel swarmed the Internet. The war in Ukraine, Hurricane Ian, a Pennsylvania refinery fire and COVID-19-related shutdowns have all contributed to the issue, industry insiders say. “Inventories of diesel and gasoline are down below five-year averages, and if the entire world were to stop, we would have 25 days worth of diesel. But the world doesn’t stop. We’re not counting on it stopping,” Ed Hirs, a professor of energy economics at the University of Houston, told CBS MoneyWatch. He likened the situation to a grocery store’s supply of milk at any given time. “Your grocery store may have an inventory of three days of milk. That’s because they only have three days’ worth at any given point. But the cow keeps milking, the farmer keeps sending milk, the dairy keeps delivering,” Hirs told CBS. Patrick De Haan of GasBuddy said: “What a lot of people are taking is that number means we’re going to run out in 25 days from whenever. That is not the case. That is a number that changes by fractions every week. It is representative of, if refineries across the country completely shut down, we would have 25 days of coverage.” In Georgia, Gov. Brian P. Kemp last week signed two executive orders extending the temporary suspension of the state motor fuel and locomotive fuel tax, as well as the supply chain state of emergency. Other states have taken similar measures. “As another holiday season and diesel (supply constraints loom), Georgians are still facing record high inflation, growing costs at the grocery store just before Thanksgiving and high prices at the pump as they prepare to travel to see family, all due to a complete failure of leadership in Washington,” Kemp said. “While we can’t fix everything politicians have broken, our responsible approach to reopening our economy while prioritizing both lives and livelihoods allows us to deliver needed relief by continuing to suspend our state’s gas tax. Alongside our partners in the legislature, we will continue working to ease the burden felt by Georgia’s families who deserve to have safe, warm, and prosperous holidays.” Iowa’s governor has issued a proclamation allowing vehicles transporting motor fuels to be overweight (not exceeding 90,000 pounds gross weight) without a permit. The proclamation also temporarily suspends regulatory provisions of Iowa law pertaining to hours of service for crews and drivers hauling motor fuels. In South Dakota, Gov. Kristi Noem has signed an executive order granting an hours of service waiver for certain liquid products being transported through South Dakota. The 30-day order declares a state of emergency and exempts delivery of gasoline, diesel, jet fuel, propane, ethyl alcohol, natural gasoline, diesel exhaust fluid and anhydrous ammonia from federal motor carrier regulations regarding drivers’ hours of service. The waiver will address supply shortages being reported in the state by businesses and residents, in part due to the needs of harvest and preparation for winter. Nebraska Gov. Pete Ricketts also issued an executive order to provide emergency relief for what his office dubbed “regional fuel shortages.” The order temporarily allows drivers to work extended hours to haul gasoline or gasoline blends, diesel, fuel oil, ethanol, propane and biodiesel. “By facilitating increased fuel transportation, the governor’s order will help reduce delays at petroleum product terminals in order to make fuels more readily available to consumers,” according to a news release.

Rail union approves deal offering hope of avoiding strike

OMAHA, Neb. — Another one of the 12 railroad unions narrowly approved its deal with the major freight railroads Saturday, offering some hope that the contract dispute might be resolved without a strike even though two other unions rejected their agreements last month. Now that 52% of International Association of Machinists and Aerospace Workers members who voted approved their deal, seven railroad unions have ratified contracts that include 24% raises and $5,000 in bonuses, but all 12 have to approve contracts to prevent a strike. Concerns remain about the possibility of an economically devastating strike because the Brotherhood of Maintenance of Way Employes Division and Brotherhood of Railroad Signalmen unions voted down their contracts, and many workers say these deals just don’t address their quality-of life concerns. No strike is imminent because those unions agreed to return to the bargaining table to try to work out a new deal, but those talks have been deadlocked over the unions’ demands for paid sick time and there is a Nov. 19 deadline. The railroads have rejected union demands for paid sick time because they say the deals they’ve been offering include higher wages that are intended to compensate workers for the lack of sick time and their other quality of life concerns. The railroads want any deal to closely follow the recommendations made this summer by a special panel of arbitrators that President Joe Biden appointed. The railroads have also maintained that the unions have agreed over the years to forego paid sick leave in favor of better wages and strong short-term disability benefits. The group that negotiates on behalf of Norfolk Southern, Union Pacific, BNSF, Kansas City Southern, CSX and other railroads said the deal the Machinists approved includes “the largest wage package in nearly five decades” and implements the recommendations the Presidential Emergency Board made. The deal the Machinists approved this weekend was the second one they voted on after rejecting their first agreement. This one includes all the raises and an additional paid leave day that was in the original deal, but it also included several additional benefits including a cap on health insurance expenses, an agreement that the railroads will study how much overtime employees are being forced to work and a promise that each railroad will negotiate individually over expense reimbursement. The railroads also promised the Machinists that they won’t force workers to share hotel rooms when they’re on the road for work. “Our union recognizes that the agreement wasn’t accepted overwhelmingly, so our team will continue conversing with our members at our rail yards across the nation,” the Machinists union’s District 19 unit said in a statement. “This agreement is the first step in addressing some of the issues in our industry. Our fight was able to shine a light on the work-life balance issues as well as the lack of proper paid sick leave.” Three other unions are scheduled to vote later this month, including the largest ones that represent engineers and conductors. The workers represented by the Machinists union generally have more regular schedules than the engineers and conductors who say the railroads’ strict attendance policies keep them on call 24/7. And the Brotherhood of Locomotive Engineers and Trainmen and the Transportation Division of the International Association of Sheet Metal, Air, Rail and Transportation Workers unions won’t even release the results of their votes until after the current Nov. 19 deadline in the BMWED talks. Because of the fears about a possible strike, business groups have urged Biden and Congress to be ready to intervene if both sides can’t reach an agreement. Biden played an active role in securing these original deals back in September, and Congress has the power to block a strike and impose terms on the workers if there is a walkout.

US infrastructure pitchman Landrieu promotes improvements, hope for future

ELM CITY, N.C.  — The man entrusted with promoting President Joe Biden’s $1 trillion infrastructure plan is Mitch Landrieu, the former mayor of New Orleans. On a recent visit to Elm City, Landrieu kept it simple: He said that it will be vital to work with people on a community level. “All of you are small, medium or large, but none of you has everything you need to do anything on your own,” he said. “So, this is kindergarten stuff. I don’t know if your mama sent you to school with a sandwich and some potato chips, but you wanted somebody’s M&M’s. And you had to learn how to trade and make friends.” Landrieu speaks often with anecdotes and metaphors, the New Orleans accent offering a below the Mason-Dixon Line bonhomie to the audience. He uses the language of chatty simplicity to explain the big ideas that can get lost in a divided country. And he comes bearing gifts, the promise of jobs and dramatic local improvements. For nearly a year, Landrieu has barnstormed a country with that same message of what’s possible when people work together, even in a bitterly polarized era playing out before the midterm elections. What Landrieu has seen is just how much effort it takes to get the money to where it matters — and to get a small measure of credit for the administration for progress that can seem like it’s coming at glacial speed. What’s riding on that $1 trillion? It’s more than just whether Democrats can retain the House and Senate. There’s the survival of thousands of American communities that need some combination of jobs, road improvements, new sewage pipes, high-speed internet and help to fight climate change. Landrieu sees himself playing the role of a bridge. But where he goes from here is an open question. The son of a mayor and the sister of a former U.S. senator, Landrieu is often mentioned as a possible presidential candidate and could benefit from traveling the country to dole out cash for local projects. After multiple hurricanes and a devastating oil spill, Landrieu redeveloped his home city as mayor from 2010 to 2018. He made the controversial decision to remove its Confederate statues, jumpstarting a national conversation on race. Soon came a pair of fateful phone calls that brought him to Washington. Brian Deese, director of the White House National Economic Council, phoned Landrieu about a year ago to ask if he would be willing to talk with Biden about how to implement the biggest infrastructure infusion of cash since the 1950s. “Sure — the president can call me any time he wants,” Landrieu recalled answering. Deese phoned back the next day. “Well, I talked to the president and he would like you to come up and run the thing.” “What thing?” Landrieu said. “The whole infrastructure thing,” said Deese. Nearly a year later in the orange haze of dawn, Landrieu, 62, whistled as he strolled through the wood-beamed terminal of the Raleigh-Durham International Airport. “I love airports because they make me think that we’re going to be OK in America,” Landrieu said last week after climbing into a Ford SUV. “You’ve got to believe that that airport was full of people that thought differently and acted differently, but nobody was yelling and screaming. And everybody had one purpose: to get where the hell we’re going.” Even if they share a destination, though, they may not always agree on the road to get there. Administration officials love to point out how Republicans who voted against the infrastructure bill are nonetheless seeking its cash for local projects, and even taking credit for them. But Republican governors want more flexibility with how to spend the money, saying the rules can increase costs at a time of high inflation. Landrieu said action on long-delayed infrastructure projects can’t foster “political” unity, but it can create a sense of “national” unity — if the American public and its leaders look past divisions on abortion, civil rights and more to focus on shared goals. The challenge is that it’s still early for voters to appreciate projects that are generational in scale. Landrieu explains the dilemma by referencing the French post-impressionist artist Georges Seurat and his painting “A Sunday Afternoon on the Island of La Grade Jatte.” The painting of Parisians on the banks of the Seine is composed entirely of colorful dots of paint that, when viewed at a distance, form a full picture. So far, Landrieu says, the infrastructure effort is just a bunch of dots on the canvas. He’s trying to sell people on how those dots connect. Since February, Landrieu has gone to 37 cities, encouraging government officials and businesses to apply for infrastructure grants and loans. Some 6,000 projects are already under way. He numbers his conversations with governors, mayors and others in the thousands. That suggests he’s reaching much more deeply into Republican territory than Biden, who can be a lightning rod for GOP criticism. Landrieu has gotten roughly $185 billion in infrastructure spending out the door. His trip to North Carolina with Agriculture Secretary Tom Vilsack last week was to announce $759 million to lay broadband fiber for internet in rural counties. That sum is a lifeline for places like Warren County in North Carolina. Census figures show it lost more than 11% of its population between 2010 and 2020. A fast internet connection is a must for businesses and residents to stay. “What I hear often is I cannot find a place in Warren County that gives me the speed that I need,” said Charla Duncan, the county’s community and economic development director. Landrieu listened intently as Duncan spoke during a roundtable with Vilsack and North Carolina officials. When Gov. Roy Cooper said that one million North Carolina residents lack high-speed internet, Landrieu registered that number with his eyes. He would use it later that day in Elm City. Landrieu has been giving voters a deeply political message ahead of the midterm elections, trying to convey that Biden cares about them and is improving the capacity of government to meet their needs. It’s an uphill battle as high inflation weighs on the minds of voters and has left Biden’s approval rating at just 43%. As a scion of a Louisiana political dynasty, Landrieu has spent his life dwelling on the gap between how governments function and how they should operate. He was a state legislator and lieutenant governor before serving as New Orleans mayor. His father, Moon, held the same job when Mitch was a child and teenager. On the day Landrieu was born in 1960, he says, his father was one of two state representatives to vote against segregation, and racial, class and other divides have always been a part of how he thinks. He studied the political divisions after removing New Orleans’ Confederate monuments and starting the nonprofit E Pluribus Unum. He traveled across the South and talked with coal miners in West Virginia who felt abandoned by government leaders. He sees infrastructure as a vehicle for economic opportunity, yet demurred when asked if he planned to stay in his post as he said he serves at “the president’s pleasure.” Landrieu suggested his fate could change after the Nov. 8 elections and the possible ascension of the GOP to House and Senate majorities. “We’ll see what happens in a couple of weeks and then the world changes dramatically around here,” he said. “I don’t really know the answer to that question.”

Trucking industry image ‘stronger than ever’ according to TMAF poll

WASHINGTON, D.C. — Most Americans believe the trucking industry plays a vital role in the nation’s economy and have a “favorable impression” of trucking, according to a national poll conducted by Trucking Moves America Forward (TMAF). The organization released the results of its latest survey Thursday, Nov. 3. “Our latest polling shows that the image of the trucking industry is stronger than ever,” said Kevin Burch, co-chairman of TMAF and vice president of government affairs and sales for MTS. “The public perception of the trucking (industry) is at an all-time high, with our poll finding that the majority of Americans — 87% of voters — have a favorable impression of trucking, which is the highest public opinion has been since TMAF began tracking industry views in 2014,” he said. The national poll, conducted Sept. 7-14 by Public Opinion Strategies on behalf of TMAF, surveyed 1,000 registered voters. Some key findings of the survey, along with comparisons to the 2019 poll, include the following: 87% of voters have a favorable impression of the trucking industry (up from 67% in the 2019 poll). 97% of Americans believe the trucking industry plays a “very important” role in the country’s economy (unchanged from 2019). Nearly three-fourths — 72% — of respondents rate the industry’s safety record as “excellent” or “good” (up slightly from 70% in 2019). When asked about truck drivers, 96% of Americans stated they are essential to keeping the country’s economy moving; 85% consider truck drivers to be professionals; and 78% believe truck drivers have higher standards for safety than other drivers. Voters have generally heard people say more positive than negative things about the trucking industry, with comments like “keeping stores stocked,” “critical for the success of the country” and “keeping the country moving” as top responses. When voters were asked which group of workers should be considered “essential or critical” to the country in times of crisis, trucking ranked among the top three, along with grocery store workers and health care workers. “More and more Americans continue to realize the essential role that trucking plays in the nation’s economy and in all of our lives, thanks to industry-wide education efforts. TMAF will continue our mission to tell the positive story of trucking to shift public perception even higher,” Burch said. To view the full results and how they compare with previous surveys, click here.

Drought continues to snarl Mississippi River transit

ALONG THE MISSISSIPPI RIVER — Adam Thomas starts harvesting soybeans on his Illinois farm when the dew burns off in the morning. This year, dry weather accelerated the work, allowing him to start early. His problem was getting the soybeans to market. About 60% of the Midwest and northern Great Plain states are in a drought. Nearly the entire stretch of the Mississippi River — from Minnesota to the river’s mouth in Louisiana — has experienced below average rainfall over the past two months. As a result, water levels on the river have dropped to near-record lows, disrupting ship and barge traffic that is critical for moving recently harvested agricultural goods such as soybeans and corn downriver for export. Although scientists say climate change is raising temperatures and making droughts more common and intense, a weather expert says this latest drought affecting the central U.S. is more likely a short-term weather phenomenon. The lack of rain has seriously affected commerce. The river moves more than half of all U.S. grain exports but the drought has reduced the flow of goods by about 45%, according to industry estimates cited by the federal government. Prices for rail shipments, an alternative for sending goods by barge, are also up. “It just means lower income, basically,” said Mike Doherty, a senior economist with the Illinois Farm Bureau. Thomas, who farms at the confluence of the Ohio and Mississippi rivers, says he doesn’t own enough grain storage to wait out the high costs of shipping. “I’ve had to take a price discount,” he said. Climate change is generally driving wetter conditions in the Upper Mississippi River region, but in recent months lower water levels have revealed parts that are usually inaccessible. Thousands of visitors last weekend walked across a portion of typically submerged riverbed to Tower Rock, a protruding formation about 100 miles southeast of St. Louis. It’s the first time since 2012 that tourists could make the trek and stay dry. On the border of Tennessee and Missouri, where the river is a half-mile wide, four-wheeler tracks snake across vast stretches of exposed riverbed. In a badly needed break from the dry weather last week, the region finally received some rain. “It is kind of taking the edge off the pain of the low water, but it is not going to completely alleviate it,” said Kai Roth of the Lower Mississippi River Forecast Center, adding that the river needs several rounds of “good, soaking rain.” Barges are at risk of hitting bottom and getting stuck in the mud. Earlier this month, the U.S. Coast Guard said there had been at least eight such “groundings.” Some barges touch the bottom but don’t get stuck. Others need salvage companies to help them out. Barges are cautioned to lighten their loads to prevent them from sinking too deep in the water, but that means they can carry fewer goods. To ensure that vessels can travel safely, federal officials regularly meet, consider the depth of the river and talk to the shipping industry to determine local closures and traffic restrictions. When a stretch is temporarily closed, hundreds of barges may line up to wait. “It’s very dynamic: Things are changing constantly,” said Eric Carrero, the Coast Guard’s director of western rivers and waterways. “Every day, when we are doing our surveys, we’re finding areas that are shallow and they need to dredge.” After a closed-down section is dredged, officials mark a safe channel and barges can once again pass through. In some places, storage at barge terminals is filling up, preventing more goods from coming in, according to Mike Steenhoek, executive director of the Soy Transportation Coalition. He said the influx of grain into a compromised river transportation system is like “attaching a garden hose to a fire hydrant,” adding that high costs for farmers have led some to wait to ship their goods. For tourists, much of the river is still accessible. Cruise ships are built to withstand the river’s extremes: Big engines fight fast currents in the spring and shallow drafts keep the boats moving in a drought, said Charles Robertson, president and CEO of American Cruise Lines, which operates five cruise ships that can carry 150 to 190 passengers each. Nighttime operations are limited, however, to help ships avoid new obstacles that the drought has exposed. And some landing areas aren’t accessible because of low water — the river is dried out along the edges. In Vicksburg, Mississippi, a cruise ship couldn’t get to a ramp that typically loads passengers, so the city, with help from townspeople, laid gravel and plywood to create a makeshift walkway. For some, it adds to the adventure. “They’re experiencing the headlines that most of the rest of the country is reading,” Robertson said. Drought is a prolonged problem in California, which just recorded its driest three-year stretch on record, a situation that has stressed water supplies and increased wildfire risk. Climate change is raising temperatures and making droughts more common and worse. “The drier areas are going to continue to get drier and the wetter areas are going to continue to get wetter,” said Jen Brady, a data analyst at Climate Central, a nonprofit group of scientists and researchers that reports on climate change. Brad Pugh, a meteorologist with the National Oceanic and Atmospheric Administration, said however, that the current drought in the Midwest is likely “driven by short-term weather patterns” and he wouldn’t link it to climate change. In the Midwest, climate change is increasing the intensity of some rainstorms. Flood severity on the upper Mississippi River is growing faster than any other area of the country, according to NOAA. Some worry that fertilizer and manure have accumulated on farms and could quickly wash off in a hard rain, reducing oxygen levels in rivers and streams and threatening aquatic life. In rare cases, communities are moving to alternate sources of drinking water away from the Mississippi. The drought also is threatening to dry out drinking-water wells in Iowa and Nebraska, NOAA says. It’s unclear how much longer the drought will last. In the near term, there is a chance for rain, but NOAA notes that in November, below average rainfall is more likely in central states such as Missouri, which would extend shipping problems on the river. In some northern states including Michigan, the winter may bring more moisture, but less rain is expected in southern states. “It does take a lot of rainfall to really get the river to rise,” Roth said.

North American freight giant sees shipping slump ahead of holidays

DENVER, Colo. —The DAT Truckload Volume Index (TVI) declined for all three equipment types in September, indicating a muted shipping season ahead of the holidays, according to DAT Freight & Analytics, which operates the DAT One truckload freight marketplace and the DAT iQ data analytics service. The DAT TVI for van freight was 228, down 13.7% compared to an unusually active August but in line with prior years. The van TVI was 2.9% lower versus September 2021 and 1.8% higher than September 2020. The refrigerated (reefer) TVI fell 9.7% to 168, while the flatbed TVI declined 10.5% to 231. Peak season plateau The national average spot van rate fell 7 cents to $2.45 per mile, declining from August to September for the first time since 2015, according to DAT, which operates the largest truckload freight marketplace in North America, The average reefer rate was down 5 cents to $2.84 per mile, and the average flatbed rate dropped 14 cents to $3.64 per mile. Spot truckload rates are negotiated for each load and paid to the carrier by a freight broker. DAT bases its rate analysis on $137 billion in annualized freight transactions. “The usual peak period for van freight looks more like a mesa,” Ken Adamo, DAT chief of analytics, said. “The month-over-month decline in September truckload volume suggests that many retailers already have inventory in position, have tempered their expectations for the holidays, or some combination of the two.” Load-to-truck ratios decline The national average van load-to-truck ratio was 3.5, unchanged from August, meaning there were 3.5 available loads for every van posted to the DAT One load board network. The reefer load-to-truck ratio was 6.3, down from 7.1, and the flatbed ratio fell to 13.3, down from 14.1 in August. Demand for trucks increased ahead of Hurricane Ian making landfall on Sept. 28. The number of loads posted to the DAT One network headed to distribution hubs in the Southeast rose 20% during the week before the storm’s arrival. Contract rates dipped The national average shipper-to-broker contract van rate declined for the fourth consecutive month, falling 3 cents to $3.09 a mile. The average contract reefer rate was $3.40 a mile last month, unchanged from August, while the average contract rate for flatbed freight dropped 5 cents to $3.64 a mile.  

Trucking industry watching closely as rail negotiations drag on

OMAHA, Neb.  — Businesses across the U.S. are increasingly worried about the renewed threat of a railroad strike after two unions rejected their deals, and they want the Biden administration and Congress to be ready to intervene. A coalition of 322 business groups from a variety of industries signed off on a letter to President Joe Biden on Thursday, Oct. 27, urging him to make sure the deals he helped broker last month get approved because a railroad strike would have dire consequences for the economy. All 12 rail unions must approve their agreements to prevent a strike next month. A strike isn’t imminent because the two unions that voted down their deals agreed to retry negotiations before considering a walkout, but the railroads face a Nov. 19 deadline with one of those unions. Six smaller unions have approved their deals while four others are set to vote over the next month, including the two biggest ones and the engineers and conductors in those two unions have the most quality-of-life concerns. “It is paramount that these contracts now be ratified, as a rail shutdown would have a significant impact on the U.S. economy and lead to further inflationary pressure,” wrote the group, which includes nearly every major trade group and quite a few state business associations. Earlier on in the strike, Biden administration officials said they were working to develop a plan to use trucks, ships and planes to try to keep the most crucial chemicals and other goods moving if the railroads stop rolling. “We have made crystal clear to the interested parties the harm that American families, business and farmers and communities would experience if they were not to reach a resolution,” White House press secretary Jean-Pierre said Tuesday. She said a shutdown is “not acceptable.” The American Trucking Associations (ATA) is among the groups calling on Congress to help resolve ongoing labor negotiations. The trucking industry is freight rail’s largest customer, and in a letter sent to Capitol Hill on Sept. 9, ATA is warning of dire consequences for the U.S. supply chain if a strike were to go into effect. “Idling all 7,000 long distance daily freight trains in the U.S. would require more than 460,000 additional long-haul trucks every day, which is not possible based on equipment availability and an existing shortage of 80,000 drivers,” ATA President and CEO Chris Spear said in the letter. “As such, any rail service disruption will create havoc in the supply chain and fuel inflationary pressures across the board.” Biden has been watching the contract dispute closely and appointed a special board of arbitrators this summer to try to help resolve it, but the White House hasn’t said whether he will get personally involved again. The railroads have offered 24% raises and $5,000 in bonuses in the five-year deal, which would be the biggest increases in more than four decades, but the negotiations hinge on quality-of-life concerns. The unions that represent the conductors and engineers who drive the trains want the railroads to ease the punishing schedules that they say keep them on call 24-7, and the other unions want the railroads to add paid sick time. The head of the Brotherhood of Maintenance of Way Employes Division union that rejected its agreement earlier this month said if the railroads won’t consider adding sick time he has no choice but to prepare for a strike next month. Union President Tony Cardwell said railroad executives continue to “bow to Wall Street’s continued desire for more than its fair share” as they report billions in profits. Union Pacific, Norfolk Southern, BNSF, Kansas City Southern, CSX and the other railroads want any deal to closely follow the compromises recommended by arbitrators Biden appointed, so they have rebuffed all pleas for paid sick time. The industry also argues that the unions opted to forego paid sick leave over the years in favor of higher wages and strong short-term disability benefits that kick in as soon as four days into an absence and can continue up to a year. Ian Jefferies, who leads the Association of American Railroads trade group, said Thursday the “BMWED’s recent proposal was not a realistic offer” because the union “simply demanded more — and they did so with full knowledge that the railroads would not agree.” If both sides can’t agree on a deal, Congress may step in and block a strike. The American Fuel and Petrochemical Makers, which endorsed Thursday’s letter, is already lobbying lawmakers to make sure they’re ready to act because refineries rely on railroads to deliver more than 300,000 barrels of crude oil and other chemicals every day. “We’re heavily stressing the need to avoid a strike at all costs — not just for our industry. It’s going to affect every industry” said Rob Benedict, vice president of midstream for the AFPM. The Trucker News Staff contribute to this report.

ATA: Truck driver shortage remains at near-record high

WASHINGTON — While the American Trucking Associations (ATA) estimates in 2022 that the truck driver shortage will remain near its historical high at nearly 78,000 drivers, other industry leaders say that there is no shortage at all. According to a new report, the ATA calculates its shortage estimates by determining the difference between the number of drivers currently in the market and the optimal number of drivers based on freight demand, ATA’s 2022 projection is the second highest level on record after 81,258 in 2021. While all sectors in the industry struggle with finding enough qualified drivers, the driver shortage is most acute in the longer-haul (i.e., non-local) for-hire truckload market. ATA contends that there is no single cause of the driver shortage, but some of the primary factors include: High average age of current drivers, which leads to a high number of retirements. Women make up just 8% of all drivers, well below their representation in the total workforce of 47%. Inability of some would-be and current drivers to pass a drug test. Other barriers to entry such as minimum driving age, driving history and criminal background. Lifestyle disadvantages, especially in the longer-haul market with greater time away from home. Infrastructure and other issues, like a lack of truck parking spots, which causes drivers to stop driving earlier than they need to so they can get a spot for the night, and congestion which limits drivers’ ability to safely and efficiently make deliveries. At current trends, the shortage could surpass 160,000 in 2031, according to the ATA. This forecast is based on driver demographic trends, including gender and age, as well as expected freight growth. As part of this study, ATA estimates that over the next 10 years, the industry will have to recruit nearly 1.2 million new drivers into the industry to replace retiring drivers, drivers that leave voluntarily (e.g., lifestyle) or involuntarily (e.g., driving records or failed drug test), as well as additional drivers needed for industry growth. “These trends are notwithstanding the impact of potential regulations or laws in the future, either positive, such as lowering the minimum age of eligibility for a commercial driver’s license, or negative, which could lower productivity per driver resulting in more drivers needed to haul the same amount of freight,” the ATA report stated. “Because there is no single cause of the driver shortage, that means there is no single solution.” The ATA says that one trend is that driver pay and earnings are going up significantly. Data from ATA, which was released earlier this year, showed that the average truckload driver made over $69,000 in 2021, including salaries and bonuses but not benefits. This figure reflects an 18% increase in annual compensation from 2019. This data also showed that over 90% of truckload carriers raised driver pay in 2021. Data from the Department of Labor shows that average annual earnings of production and non-supervisory employees, with the vast majority of those being driver occupations, in the general freight, long-haul for-hire truckload industry increased 7.5% on average per year over the last two and a half years, compared to 2.6% in the 10 years preceding. “While this is good for drivers and those looking to enter this occupation, pay alone will not solve the driver shortage,” according to the APA report. “For example, some drivers may choose to work less when offered a pay increase and be home more often. In fact, almost forty percent of truckload carriers reported to ATA that increases in pay last year resulted in drivers choosing to drive less, make the same amount of money and be home more often.” The ATA noted that the truck driver shortage “probably seems much worse to motor carriers than the current figures suggest because of a quality versus quantity issue. Many carriers have strict hiring criteria based on driving history, experience and other factors. As a result, despite receiving applications for employment, motor carriers are finding few eligible candidates, which is a quality issue. This analysis does not consider the quality of applicants.” The Owner-Operator Independent Drivers Association (OOIDA), which represents professional and small-business truckers, has for years denied that a truck driver shortage exists. “We have been hearing this myth for decades,” Todd Spencer, president of OOIDA, said. “The real problem is high turnover and retention. Compensation has been falling for years and the conditions have not improved. Trucking needs to figure out how to keep drivers instead of burning them out.” Back at the ATA, officials says that the driver shortage is not unique to the U.S. According to a report released earlier this year by the International Road Transport Union (IRU), the world road transport organization based in Geneva, Switzerland, the driver shortage is in many countries throughout the world. While some countries report it in terms of number of jobs open, which will be higher than an actual shortage number as ATA reports1, it is a problem for this occupation in much of the world. For example, according to the IRU report, in 2021, Germany had between 57,000 and 80,000 unfilled truck driver jobs; Italy was up to 20,000 drivers short; Argentina had 45,000 unfilled truck driver jobs; and Mexico reported roughly 54,000 unfilled driver jobs; China had 1.8 million unfilled truck driver positions.

Diesel prices flatline after several weeks of increases; OPEC+ production cuts still a concern

LITTLE ROCK, Ark. — The average price for a gallon of diesel fuel in the U.S. has remained flat since Oct. 17 at $5.34 per gallon. Until now, average diesel prices have risen every week since Sept. 19, the last time a gallon sat below $5. According to the Energy Information Administration (EIA), as of Oct. 24, diesel prices are the highest on the west coast at $5.87 per gallon, slightly down from $5.99 on Oct. 17. The lowest prices can be found along the Gulf Coast at $4.98 cents per gallon on average. Fuel prices rank as the top concern in the trucking industry, according to the American Transportation Research Institute’s (ATRI) 18th annual Top Industry Issues report. At the top of ATRI’s list, fuel prices replaced the driver shortage, which had been the No. 1 industry concern for five consecutive years. On Oct. 19, President Joe Biden announced the release of 15 million barrels of oil from the U.S. strategic reserve as part of a response to recent production cuts announced by OPEC+ nations, and he will say more oil sales are possible this winter, as his administration rushes to be seen as pulling out all the stops ahead of next month’s midterm elections. Major oil-producing countries led by Saudi Arabia and Russia have decided to slash the amount of oil they deliver to the global economy. And the law of supply and demand suggests that can only mean one thing: higher prices are on the way for crude, and for the diesel fuel, gasoline and heating oil that are produced from oil. The decision by the OPEC+ alliance to cut 2 million barrels a day starting next month comes as the Western allies are trying to cap the oil money flowing into Moscow’s war chest after it invaded Ukraine. Here is what to know about the OPEC+ decision and what it could mean for the economy and the oil price cap: WHY IS OPEC+ CUTTING PRODUCTION? Saudi Arabia’s Energy Minister Abdulaziz bin Salman says that the alliance is being proactive in adjusting supply ahead of a possible downturn in demand because a slowing global economy needs less fuel for travel and industry. “We are going through a period of diverse uncertainties which could come our way, it’s a brewing cloud,” he said, and OPEC+ sought to remain “ahead of the curve.” He described the group’s role as “a moderating force, to bring about stability.” Oil prices had fallen after a summer of highs. Now, after the OPEC+ decision, they are heading for their biggest weekly gain since March. Benchmark U.S. crude rose 3.2% on Friday, to $91.31 per barrel. Brent crude, the international standard, rose 2.8% to $97.09, though it’s still down 20% from mid-June, when it traded at over $123 per barrel. One big reason for the slide is fears that large parts of the global economy are slipping into recession as high energy prices — for oil, natural gas and electricity — drive inflation and rob consumers of spending power. Another reason: The summer highs came about because of fears that much of Russia’s oil production would be lost to the market over the war in Ukraine. As Western traders shunned Russian oil even without sanctions, customers in India and China bought those barrels at a steep discount, so the hit to supply wasn’t as bad as expected. Oil producers are wary of a sudden collapse in prices if the global economy goes downhill faster than expected. That’s what happened during the COVID-19 pandemic in 2020 and during the global financial crisis in 2008-2009. HOW IS THE WEST TARGETING RUSSIAN OIL? The U.S. and Britain imposed bans that were mostly symbolic because neither country imported much Russia oil. The White House held off pressing the European Union for an import ban because EU countries got a quarter of their oil from Russia. In the end, the 27-nation bloc decided to cut off Russian oil that comes by ship on Dec. 5, while keeping a small amount of pipeline supplies that some Eastern European countries rely on. Beyond that, the U.S. and other Group of Seven major democracies are working out the details on a price cap on Russian oil. It would target insurers and other service providers that facilitate oil shipments from Russia to other countries. The EU approved a measure along those lines this week. Many of those providers are based in Europe and would be barred from dealing with Russian oil if the price is above the cap. HOW WILL OIL CUTS, PRICE CAPS AND EMBARGOES CLASH? The idea behind the price cap is to keep Russian oil flowing to the global market, just at lower prices. Russia, however, has threatened to simply stop deliveries to a country or companies that observe the cap. That could take more Russian oil off the market and push prices higher. That could push costs at the pump higher, too. U.S. gasoline prices that soared to record highs of $5.02 a gallon in mid-June had been falling recently, but they have been on the rise again, posing political problems for President Joe Biden a month before midterm elections. Biden, facing inflation at near 40-year highs, had touted the falling pump prices. Over the past week, the national average price for a gallon rose 9 cents, to $3.87. That’s 65 cents more than Americans were paying a year ago. “It’s a disappointment, and we’re looking at what alternatives we may have,” he told reporters about the OPEC+ decision. WILL THE OPEC PRODUCTION CUT MAKE INFLATION WORSE? Likely yes. Brent crude should reach $100 per barrel by December, says Jorge Leon, senior vice president at Rystad Energy. That is up from an earlier prediction of $89. Part of the 2 million-barrel-per-day cut is only on paper as some OPEC+ countries aren’t able to produce their quota. So the group can deliver only about 1.2 million barrels a day in actual cuts. That’s still going to have a “significant” effect on prices, Leon said. “Higher oil prices will inevitably add to the inflation headache that global central banks are fighting, and higher oil prices will factor into the calculus of further increasing interest rates to cool down the economy,” he wrote in a note. That would exacerbate an energy crisis in Europe largely tied to Russian cutbacks of natural gas supplies used for heating, electricity and in factories and would send gasoline prices up worldwide. As that fuels inflation, people have less money to spend on other things like food and rent. Other factors also could affect oil prices, including the depth of any possible recession in the U.S. or Europe and the duration of China’s COVID-19 restrictions, which have sapped demand for fuel. WHAT WILL THIS MEAN FOR RUSSIA? Analysts say that Russia, the biggest producer among the non-OPEC members in the alliance, would benefit from higher oil prices ahead of a price cap. If Russia has to sell oil at a discount, at least the reduction starts at a higher price level. High oil prices earlier this year offset much of Russia’s sales lost from Western buyers avoiding its supply. The country also has managed to reroute some two-thirds of its typical Western sales to customers in places like India. But then Moscow saw its take from oil slip from $21 billion in June to $19 billion in July to $17.7 billion in August as prices and sales volumes fell, according to the International Energy Agency. A third of Russia’s state budget comes from oil and gas revenue, so the price caps would further erode a key source of revenue. Meanwhile, the rest of Russia’s economy is shrinking due to sanctions and the withdrawal of foreign businesses and investors. The Associated Press contributed to this report.

USDOT sending $50M to Florida for infrastructure repair after Hurricane Ian

WASHINGTON — The U.S. Department of Transportation’s Federal Highway Administration (FHWA) has announced the immediate availability of $50 million in quick release emergency relief (ER) funds for use by the Florida Department of Transportation (FDOT) as a down payment to offset costs of repair work for damage caused by Hurricane Ian in late September. U.S. Transportation Secretary Pete Buttigieg said the funds will help Florida repair roads and bridges that were damaged during the storm. “This important step is only part of a larger federal commitment: as President Biden said, we will be with the people of Florida for as long as it takes to recover and rebuild stronger,” Buttigieg said. Acting Federal Highway Administrator Stephanie Pollack said the FHWA is working closely with FDOT to repair the damage. “The quick release funding we are providing will help get those repairs done as soon as possible and better prepare this area for future storms in Florida,” she said. Hurricane Ian hit southwest Florida Sept. 28 as a strong Category 4 hurricane with storm surges in excess of 10 feet in many places, followed by heavy rainfall for several days. The subsequent flooding damaged, washed out and/or destroyed roadways, causeways, intersections and bridges throughout several regions in the state. Quick-release funds will be used to pay for repairs on the Sanibel Island and Pine Island Causeways to restore essential traffic to the islands and protect the remaining facilities, a news release stated. FDOT has also identified 20 critical intersections in which they indicate a need to perform emergency repairs in order to restore essential traffic. FHWA’s emergency relief program provides funding to states, territories, tribes and Federal Land Management Agencies for highways and bridges damaged by natural disasters or catastrophic events. Federal officials said the quick release funds are an initial installment of funds toward restoring this essential transportation link.

Fuel costs top list of trucking industry concerns in new ATRI report

SAN DIEGO, Calif. — Fuel prices rank as the top concern in the trucking industry as diesel once again exceeds $5 per gallon on average across the nation. This is according to the American Transportation Research Institute’s (ATRI) 18th annual Top Industry Issues report. According to the latest statistics from the Energy Information Administration, the average price for a gallon of diesel fuel is currently $5.339 per gallon, up from $5.224 on Oct. 10 and $4.836 on Oct. 3. Diesel prices have fluctuated at or below $5 a gallon since early August, when average prices dipped below $5 for the first time since March. Fuel price concerns replaced the driver shortage, which had been the number one industry concern for five consecutive years, at the top of ATRI’s list. This year, the driver shortage was the second-ranked issue, followed by the lack of available truck parking. “ATRI’s list is a true reflection of what it was like to be a trucker this year,” ATA Chairman Harold A. Sumerford Jr. said. “High fuel prices and finding drivers were two of our industry’s biggest challenges – challenges made more difficult by the economy and the continued lack of truck parking. Thankfully, ATRI doesn’t just tell us what the issues are, it provides a number of possible solutions that decision makers can use to address them.” Rounding out the top five this year were driver compensation and the economy. With the release earlier this year of the Federal Motor Carrier Safety Administration’s (FMCSA) Notice of Intent to enter into a speed limiter rulemaking in 2023, speed limiters ranked in the top 10 this year for the first time, coming in ninth overall and fifth among commercial driver respondents. FMCSA officials announced recently that they plan to have the final proposal on the speed limiter issue ready by June 2023. More than 47% of the survey respondents were professional truck drivers, while 39% were motor carrier executives. Among driver respondents, truck parking, fuel prices and driver compensation were the top three concerns, while motor carriers ranked the driver shortage, driver retention and fuel prices as their top three concerns. More than 4,200 trucking industry stakeholders participated in this year’s survey, including motor carriers, truck drivers, industry suppliers, driver trainers, law enforcement and others. “This year’s survey had the highest number of responses to date, showing how committed our industry is to identifying the most critical concerns and more importantly, figuring out how we collectively deal with each issue,” ATRI President and COO Rebecca Brewster said. The full report can be found at ATRI’s website by clicking here.

FMCSA aims to get better at identifying, removing dangerous motor carriers from service

WASHINGTON — Officials at the Federal Motor Carrier Safety Administration (FMCSA) say they want to be more effective at getting miscreant motor carriers off of America’s highways. “FMCSA is seeking information on how the agency might use data and resources more effectively to identify unfit motor carriers and to remove them from the nation’s roadways,” according to a statement published in the U.S. Department of Transportation’s latest Significant Rulemaking Report. “FMCSA would seek public comment about the use of available safety data, including inspection data, in determining carrier fitness to operate.” The FMCSA said it plans to publish an advance notice of proposed rulemaking on the issue in January, and a notice on safety fitness procedures is expected on Jan. 30, 2023. The public will have a chance to make comments once the rulemaking draft is published on the Federal Register. FMCSA officials also want public input on possible changes to the current three-tier safety fitness rating structure of satisfactory, conditional and unsatisfactory. The Federal Motor Carrier Safety Regulations that FMCSA uses in its safety fitness rating methodology are also expected to receive a thorough review. The FMCSA may place an interstate commercial motor carrier out of service for the following reasons: Imminent Hazard Whenever it is determined that a violation of 49 USC 31502 or the Motor Carrier Safety Act of 1984, as amended, or the Commercial Motor Vehicle Safety Act of 1986, as amended, or a regulation issued under such section or Acts, or a combination of such violations, poses an imminent hazard to safety. Failure to pay civil penalty Whenever a commercial motor vehicle (CMV) owner or operator fails to pay a civil penalty in full within 90 days of the date specified for payment by the FMCSA final agency order. Unsatisfactory rated motor carriers Generally, a motor carrier rated ‘unsatisfactory’ is prohibited from operating a commercial motor vehicle. Since December 2021, the FMCSA has declared eight carriers to be imminent hazards to public safety.