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April 2020 Class 8 truck sales barely half of those a year ago

April was the worst month for new Class 8 truck sales in the U.S. market in more than three years. To find a worse month, you’d have to go back 37 months to February 2017. A total of 12,986 new Class 8 trucks were sold in April, according to information received from ACT Research (actresearch.net), a decline of 47.6% from the 24,480 sold in the same month of 2019. April sales dropped 23.1% from 16,892 sold in March. Of those trucks sold this April, 8,156 were fifth-wheel-equipped tractors, down 30.1% from March sales of 11,673 and down 25.5% from April 2019 sales of 18,303. The remaining 4,830 trucks, or 37.2%, were vocational units equipped with dump, refuse or other bodies. The percentage of vocational trucks is typically 25% to 30%, so the higher percentage in April indicates that sales of over-the-road trucks are taking a bigger beating than sales of vocational trucks. The April number was 7.5% lower than March sales and 25.5% lower than April 2019 sales. The declining sales were not unexpected, as numbers were already running nearly 28.0% behind last year’s pace. A condition of overcapacity in the freight market and uncertainty over economic conditions had already combined to put a damper on the market. Then came COVID-19. The closing of overseas manufacturers slowed imports; then the shutdown of domestic businesses deemed “nonessential” depressed available freight levels to crisis proportions. May sales aren’t expected to be much better, if at all, despite the gradual relaxing of stay-at-home orders and the reopening of businesses. That’s because of the time it takes to restart an economy that has been virtually shut down. “It takes a lot of people marching at the same speed to turn the manufacturing sector back on,” said Kenny Vieth, president and senior analyst at ACT Research, noting that, even though a plant may reopen, the parts and materials needed to function may not be readily available. “With current inventories and supply chains, we can say that April will probably not be the ‘bottom’ of the economic downturn,” he said. In the used Class 8 truck market, sales volumes declined 8% in April compared to March, according to the latest preliminary release of State of the Industry: U.S. Classes 3-8 Used Trucks published by ACT Research. Average prices for used tractors in dealer-to-dealer sales also fell 8%, while the average used truck sold was 2% older. Compared to April 2019, average prices were down 20%, while the age of the average truck dropped 5% and the odometer miles declined 2%. As for new trucks, the manufacturer that has taken the biggest hit so far in 2020, on a percentage basis, is International, according to information received from Wards Intelligence (wardsintelligence.com). Sales of 7,499 Class 8 trucks on the U.S. market for the first four months of the year lag 41.9% behind the 12,902 units sold at the same point last year. Market share for the period has dropped from 14.8% to 12.5%. International was the only OEM to sell more Class 8 trucks in the U.S. market in April than in March, 1,961 to 1,886 for an increase of 4%. Compared to April 2019, however, sales declined 44.6% from 3,547 sold in that month. Freightliner’s April sales of 4,315 trucks showed a decline of 27.9% from March sales of 5,983 and were 47.4% behind the 8,209 sold in April 2019. For the year to date, Freightliner’s 22,202 Class 8 trucks sold on the U.S. market trails last year’s January to April sales by 11,593 units, or 34.3%. The company’s share of the U.S. Class 8 market has dropped from 38.9% at the end of April 2019 to 36.9% this year, and 34.1% for the month of April. To find the last month that Volvo Trucks sold fewer than 1,000 Class 8 units in the U.S., you’d have to go all the way back to January 2012. The OEM sold 951 trucks in April, a drop of 44.6% from March sales of 1,717. Compared to April 2019, sales dropped more than half (59.6%) from 2,199 trucks sold. For the year to date, Volvo sales are down 31.2%, slightly more than the decline for the entire market. Volvo-owned Mack Trucks outsold Volvo Trucks in the U.S. Class 8 market in April with delivery of 1,063 units, a 24.3% decline from March sales of 1,404 and 44.8% beneath April 2019 sales of 1,924. Mack has actually gained market share in 2020, going from 6.6% of Class 8 trucks sold at the end of April 2019 to 7.8% at the same point this year. April 2020 sales represented 8.4% of the market, which may be attributable to the heavy presence Mack has in the vocational market. Kenworth sold 2,290 Class 8 trucks in April, a 15.7% decline from March sales and 39.0% behind April 2019 sales. For the year to date, the company has sold 9,508 units, 20.5% behind last year’s pace of 11,955. As for market share, the company’s smaller-than-average sales declines have actually increased its share of the market, which climbed from 13.8% at the end of April last year to 15.8% at the same point this year and reached 18.1% for the month of April 2020. Peterbilt sales of 1,553 were 30.9% behind March sales of 2,247 and 59.6% beneath April 2019 sales of 3,842. For the year to date, Peterbilt sales nearly match the industry average, declining 30.3% compared to 30.7 for the entire industry.

Polite protesting truckers get results in Washington

WASHINGTON — Naysayers had been at it since before the start of the May 1 “mayday” protest by small trucking business owner-operators. It seemed that no one, perhaps not even the protesters themselves, thought the protest would result in much change. Many thought that, like the “slow rolls” that happened in Houston, Los Angeles and Phoenix earlier, and even like past trucker demonstrations in the capital, truckers would do their thing and then go home, claiming victory for raising awareness of the truckers’ plight while accomplishing little, if anything. This protest was different. The movement of owner-operator trucks to parking places along Constitution Avenue almost didn’t resemble a protest at all. Horns were blown at specific intervals, but when is Washington ever without the din of traffic noise? In the COVID-19 pandemic environment, traffic was already severely reduced, and the usual throng of tourists was gone. Well-mannered trucking-protest participants made friends of Metro and Park Police and Secret Service agents. Local residents and workers made signs for their cars and vans, mirroring the messages they had seen on protester trucks and blowing their horns, too. Smells wafted from charcoal grills as people gathered under waving American flags to share the dinner sizzling on the coals. When the protest was over after three weeks, the giant piles of litter left after most protests weren’t there. The polite protesters left the area cleaner than it was when they arrived. Still, the criticism continued. Some said the truckers were fighting for the wrong things. Others said they shouldn’t be protesting at all. Names were called. People were banned from social-media sites because of their ugly verbiage. And now that it’s over, some people question what was really accomplished. A grassroots protest, however, isn’t a labor negotiation. It doesn’t end with a signed contract between union and management. And, under the United States’ form of government, there are no royal decrees to instantly settle disputes. There are channels to follow, agencies to involve. Tangible results take time, but they are results, just the same. So, what results did the polite protesters achieve? They got their White House meeting. They didn’t always agree on the issues, but they never wavered from their desire to be heard. Presidential tweets and soundbites favoring their cause were welcomed, but not enough. Even when their cause made national news due to the sound of air horns during a Rose Garden press conference, they weren’t done. They said they were staying until they got their meeting — and they did. The Department of Justice reversed its decision not to investigate brokers for collusion and for price gouging during a time of crisis. In fact, the one time that protesters blocked Constitution Avenue was in response to a DOJ announcement that it was not investigating. That decision changed, quickly. Although some of the protesters’ demands were already being worked on by the Owner-Operator Independent Drivers Association (OOIDA), things were proceeding rather slowly. During, or perhaps because of the protest, OOIDA increased the urgency of its campaign. The organization sent a call to action to its members, sent letters to all members of Congress and then sent another letter to House and Senate Leadership, filed a petition with the Federal Motor Carrier Safety Administration (FMCSA) and issued numerous press releases and articles through its own in-house publication. The protest generated presidential interest in the application and enforcement of 49 CFR 371.3, the regulation that requires brokers to share load information, including the amount paid by the shipper, to all parties involved in the transaction who request it. Encouraged by broker organizations such as Transportation Intermediaries Association (TIA), brokers commonly ignore the requirements of the regulation by forcing carriers to waive their rights of access to the information in order to do business, or by making the information available under conditions that most carriers cannot meet. In the White House meeting, Chief of Staff Mark Meadows was clear that the issue needs to be fixed. The protest woke the public as well as many government officials to the idea that small business trucking carriers are underrepresented when changes to regulations are discussed. As pointed out by United States Transportation Alliance (USTA) CEO Mike Landis, nearly 90% of all registered carriers have 10 or fewer trucks and are too small to join the industry giant American Trucking Associations (ATA). Yet, when changes are discussed, ATA often has a seat at the table — while small trucking business don’t. Brokers now know the spotlight is aimed squarely at them. The protesters acknowledge the free-market system and, except for a scant few, aren’t calling for limits on broker revenues. But the protests shined a light on those shadowy parts of the brokerage business, such as demanding large payments from customers while only spending a small percentage for the actual service performed. There are more arguments and, perhaps, litigation to come, but brokers are on notice that they are being watched and questioned. The protesters earned the admiration of many among the millions of truckers who weren’t at the protest with their display of unity and their perseverance. Many doubted they would get anything done. They were wrong. A group of people who, as Jeremy Johnson, administrator of the Facebook Group The Disrespected Trucker, said “couldn’t agree on a free cup of coffee” stood together with the Eastern European group, the Hispanic contingent, the Sikh business owners and the rest, a diverse group of ethnicities and genders. They weren’t sure who would speak for them, and demands varied from group to group, but they were determined to be heard. So, while concrete results are still to come, the protest has achieved more than anyone expected it to. Wheels are turning at DOJ and FMCSA, under the watchful eye of President Trump and his staff. Voices have been heard. More importantly, the protest has brought together more truckers than any in recent memory. While it’s doubtful that the number of trucks in Washington ever exceeded 200 at one time, many participants rotated in and out, trying to devote time to the cause while dealing with personal and family matters and maintaining at least a partial revenue stream for their businesses. Estimates range from 500 to 1,000 total truckers spending at least some time at the protest. One group, The Disrespected Truckers, had less than 3,000 members prior to the protest. In less than three weeks, that number swelled to more than 9,000. The usual complaints about the business of trucking were replaced by discussion of the protest and its goals. Other Facebook groups have seen similar results. Even as the protest was winding down, some truckers were still on their way to Washington to join in. The protesters know there are remaining issues to resolve, and the fight isn’t over. In trucking, there will always be more issues to resolve. If needed, one strong and growing group of owner-operators is ready to return to Washington to politely resume the fight.

White House meeting produces ‘sort of a victory’ for jubilant protesters

WASHINGTON — On the 20th day of protest along Constitution Avenue in Washington D.C., more than 100 small business truckers got what they’ve been waiting for — a meeting at the White House. Two representatives of the protesters, Michael Landis, CEO of United States Transportation Alliance and Sergey “C.J.” Karman, CEO of Ezlogz and admin of the Ezlogz Slavic Community group on Facebook, were ushered into the West Wing just before 9:30 a.m. Eastern time on May 20 for the meeting. From the government side, President Trump’s Chief of Staff Mark Meadows, was joined by Acting FMCSA Administrator Jim Mullen and Staff Secretary Derek Lyons. As Landis and Karman exited the White House after the meeting, group spokesperson Janet Sanchez went live with a Facebook video. “Our boys just got out of the White House,” she announced. “They were in there for over an hour, and they came out with smiles.” A crowd of protesters and onlookers quickly gathered as Karman and Landis stepped up to a small public address system. Karman took the microphone first. He thanked the administration for hosting the event and for the opportunity to speak. “We answered a lot of questions,” he said. “We told them about price gouging, collusion, and anti-trust. We told them about the hard-working Americans who are driving and have no money, because the money has already been divided.” Next, Landis spoke. “We were tested, I can promise you that,” he said. He related that Mullen had peppered the pair with questions as the meeting commenced, but they held their ground. “What we can back up with truth and our experience, they can’t touch,” he said. Landis spoke to the administration officials about the lack of representation of the small business truckers. He pointed out that organizations such as the American Trucking Associations (ATA) often have the ear of government agencies despite representing only a small percentage of carriers. “That has to change,” Landis told officials. The previous evening, Landis outlined his position in an exclusive interview with The Trucker. “The ATA (American Trucking Associations) represents trucking to the government, but little guys like us can’t be members,” he said. “The interests of the people with money are overriding the concerns of the little guy.” Landis continued, “If you think that 89.7% of for-hire carriers are little guys, (with) 10 trucks or less, and ATA does the talking, that means that 89.7% of us aren’t represented.” Landis conceded that the percentage he quoted was a year or more old and might have changed, but, he said, the number wouldn’t have changed by much. Preparing for this morning’s White House meeting, he said, “We have a chance to be a true voice of what we’re doing on the road, and the truth behind it. We need to have active truck drivers that can have a say in things,” adding, “I want to use this as a way to create that open line of communication, from now on.” One of the high points of the meeting occurred when the pair explained that brokers were not complying with the requirements of 49 CFR 371.3, which requires disclosure of information for each load hauled to all parties who participated, upon request. Karman related that Meadows then asked Mullen, “Is that a rule?” Mullen responded in the affirmative. “Then why aren’t you enforcing it?” Meadows asked. As Mullen explained issues with authority and jurisdiction, Meadows asked for five “setup” packets from brokerage firms and the names of five brokerage CEOs. Landis and Karman explained how brokers were asking carriers to waive their rights to information in their contracts, refusing to do business with those who refused. “Is that true?” Meadows asked Mullen. When Mullen answered affirmatively, Meadows told him, according to Karman, “You need to fix that.” The topic of the petition filed yesterday by the Owner-Operator Independent Drivers Association (OOIDA) asking the FMCSA to require brokers to provide load information within 48 hours was discussed. Karman made it plain that the protesters don’t think the proposal goes far enough. “We need that information up front, while we are negotiating the load,” he said. Karman further called on truckers to report claims of broker gouging to the Department of Justice, which Meadows said would be investigated. Landis went on to explain how he had discussed his claim that small business truckers are not represented at government agencies and committees, using the same argument he had given to The Trucker the previous evening. “For us, this is a pretty good step in the right direction. I’m not going to call ‘victory,’ but they understand that we have no representation except for ourselves,” Landis said. “It’s a ‘sort of’ victory,” Karman interjected. “They understand the issues and they understand that we, as Americans, want this fixed, that as Americans, for Americans, we want a voice,” Landis continued. Karman added that when the pair asked if President Trump would be joining the meeting, they were told by Lyons that Trump couldn’t attend but was, in fact, listening to the live feed. Karmen related that Meadows had expressed thanks to the protesters for sticking together throughout the protest and that the chief of staff said, “It’s time to go home.” Karmen then recommended the protesters stay one more day, “to see what happens and to celebrate.” Landis concluded, “The president is on our side. He wants us to succeed, and he doesn’t want us to be overrun. We won the battle, but we’re still in a war.” To wild cheering, he said, “Let’s go celebrate.” Satisfied that, after 20 days of protest, they had finally achieved their goal of a White House meeting, the group gathered for a photo with the Washington Monument in the background. The feeling was that their voices, as well as their air horns, had finally been heard. Lisa and Lee Schmitt, co-hosts of the “Trucking With the Schmitts” Internet radio show (www.blogtalkradio.com/truckingwiththeschmitts) that airs every Monday at 7 p.m. Central time, were excited about the meeting results. “We just watched the video,” Lisa Schmitt said, “and we’re going to watch it a few more times to make sure we get it all.” Schmitt, who said the couple had been in Washington at the start of the protest, marveled at the unity shown by the protesters. “People say the brotherhood of truckers is gone,” she said. “But we saw it — the brotherhood is alive. I wish there could have been 1,000 trucks,” she added. Correction: This article originally stated incorrectly that Trump Senior Adviser Jared Kushner was present at the meeting. Kushner was not in attendance. 

End in sight as protesters prepare for White House meeting

WASHINGTON — As protesting truckers wind down Day 19 of their Washington D.C. protest on May 19, they are on the cusp of realizing their biggest protest goal — a meeting at the White House. Selected individuals have been invited to a West Wing meeting on Wednesday, May 20. It has not been confirmed that President Trump will attend; however, the meeting should satisfy trucker demands to meet. Exactly who will represent the truckers is as yet unannounced. United States Transportation Alliance (USTA) CEO Michael Landis will almost certainly be among the participants, but no official announcement has been made. Reports that a representative of the Eastern European trucking group will attend, along with an attorney, are unconfirmed. Another area of speculation is the list of demands the group will bring to the meeting. Broker transparency is a term commonly used by protesters, but many want the government to regulate the percentage of load revenue that brokers can keep. While transparency is already written into the regulations in 49 CFR 371.3, brokers often evade the disclosure requirements by requiring carriers to waive their rights to the information or making access to the information so difficult as to strongly discourage carrier review. Revising the transparency requirements would certainly be easier than forcing a revenue percentage cap on brokers, which some would see as interference with the free market. The Owner-Operator Independent Drivers Association (OOIDA) today filed a petition with the Federal Motor Carrier Safety Administration (FMCSA) asking for a rulemaking that would require brokers to automatically provide a copy of the transaction record within 48 hours of the completion of a load. The proposed rule would prohibit brokers from including any provision in contracts that would waive the carrier’s right to access this information. Yesterday Washington protesters got a huge boost in morale when President Trump made them a part of the agenda at a May 18 roundtable discussion with restaurant industry leaders at the White House. As Eugene Scalia, secretary of labor, delivered comments on reopening the U.S. economy, Trump interrupted with, “And Gene, you have to help the truckers, also.” Scalia assured the president that his department has been talking about the topic, and Trump continued, “And I’ll tell you, they’re, they work hard, and they have brokers that take a lot of their business away. They (brokers) don’t work so hard. They sit in an office someplace, it’s not good. So, I’d like to help the truckers. All right?” There was immediate criticism of the labor secretary for laughing and smiling before responding to the president. Whether the laughter expressed a lack of concern for truckers, as some claimed on social media sites, or a lighthearted acknowledgement of the horn-blowing protesters that have disrupted outdoor events at the White House wasn’t clear. Protest organizers and spokespersons talked nearly continuously throughout the day Tuesday, polling protest participants and solidifying the requests they will make at the meeting.

United States Transportation Alliance joins DC protest; aims to help provide a common voice

The problem with a grass-roots movement is often determining which blade of “grass” will speak for the group. That’s been a visible issue with the small trucking business protest, now in its third week in Washington. A review of the signs posted on the 100 or so parked trucks along Constitution Avenue reveals demands for respect; broker investigation, regulation or transparency; elimination of electronic logging devices (ELDs); repeal of hours-of-service (HOS) regulations; and a few other causes thrown in for good measure. Reading through thousands of social-media comments by protesters and supporters only muddies the water further. One can imagine a make-believe scenario where the proverbial genie appears to the protesters to grant them three wishes … and sets off a weeklong argument about what those wishes should be. Enter the United States Transportation Alliance (ustransportationalliance.org). Conceived in the notion that the organizations with lobbying power in government exist to serve everyone except small business truckers, USTA, a 501c6 nonprofit, gives voice to the “little guy.” The hundreds of “little guys” protesting in Washington have need for such a voice. As Mark Meadows, President Donald Trump’s chief of staff addressed an assembled group of protesters on May 14, he asked, “So, you like Mike?” The crowd erupted in cheering and applause. They were cheering Michael Landis, CEO and founder of USTA. No vote was taken to elect him spokesperson, but the trust he has garnered among the protesters makes him an obvious choice. In an exclusive interview with The Trucker, USTA’s president and co-founder Kevin Steichen, along with Ingrid Brown, chairperson of the organization’s corporate relations and safety education, spoke about the protest, the FMCSA’s recent final ruling on HOS regulations, and the purpose of USTA. The FMCSA ruling wasn’t entirely a surprise. “We’re working hand in hand with the FMCSA,” Steichen said. “We attend meetings with them monthly.” Although USTA has input into FMCSA decisions, the organization must wait for the final outcome, just like everyone else. Steichen advised patience with the new rules. “Third-party ‘interpretation’ sucks,” he said.” That’s why we want to read every work and then read it again, so that when we do comment, we’re commenting on facts and not what someone thinks.” Reading the 232-page ruling takes time and could result in communication with the FMCSA for explanation of some of the provisions included. The latest HOS revision is only one of the things the USTA board has been working on. “We are partners and stakeholders in the ‘Our Roads, Our Safety’ campaign at FMCSA,” Brown said. “They brought us in around April of last year and we’ve been a part of it ever since.” More recently, USTA became concerned about personal protective equipment not being available to most truck drivers. “USTA was instrumental in putting together the $75,000 in PPE that is being distributed to drivers, free,” Brown said. “Now we’re working on the next $50,000.” While progress on individual issues is important, USTA’s primary mission is to represent the driver. There are no products or services, save for a hat or T-shirt, to sell to the organization’s membership. Membership dues and donations don’t come close to covering the costs of travel, lodging, food, parking and other expenses incurred on each trip to Washington to meet with lawmakers or the FMCSA. “Being that they don’t drive (a truck), sometimes they don’t understand what we do. We don’t just throw emails at them; we sit at the table and discuss the issues. That’s who we are,” Brown explained. “It can be frustrating to work with FMCSA, but I’ve been doing it for two years,” Steichen added. “We have a love-hate relationship with those guys, but we make it work. Our role is to bridge the gap between FMCSA and the drivers in our industry.” Persistence has been key to the organization’s success in gaining a seat at the table. Larger organizations such as American Trucking Associations, Truckload Carriers Association and Owner-Operator Independent Drivers Association have more available funding and can hire representatives in Washington to speak for them. USTA members must park their trucks, shutting down their own businesses, in order to be present at those meetings. Patience helps too, since everyone at the table comes from a different place. “With frustration comes irrational action,” Steichen said. “You’ve got to look into the future when you decide what you’re going to do.” Steichen has learned that demanding too much at once can damage the chances of a future win, as well as the relationships needed to gain agreements in the future. “We don’t always agree, but that’s life,” Brown added. Despite living in different areas of the country and spending time on the road, the team makes every attempt to present a united front. “We spend hours on the phone with each other, meeting to decide our position on every issue before we take it to the FMCSA,” Steichen said. “When we do issue a statement of position about something, we validify it with FMCSA so that we can give our membership a solid, confident answer.” Between meetings, the group stays in contact with FMCSA management, including Joseph DeLorenzo, director of the office of enforcement and compliance, and Bill Mahorney, chief of the enforcement division. “They do listen,” Brown said. “I sent an email with a question on Saturday and had a response in 17 minutes. It’s not that I’m important or anything; they are responsive to questions and concerns.” The USTA group was initially undecided about joining the Washington protest, wondering if the action might harm the group’s efforts to communicate directly with the FMCSA and other Washington contacts. It didn’t take long to realize that a common voice was needed if the protest was to be effective, and CEO Landis headed for the nation’s capital. While other groups can be credited with organizing the protest, USTA could well be the organization that provides a key to ending it. Questions about USTA can be addressed to usta.info@ustransportationalliance.org.

Reality TV personality, trucking-company owner allegedly used PPP funds to buy jewelry, pay child support

Maurice Fayne, aka “Arkansas Mo,” a reality TV personality who appears in VH1’s “Love & Hip Hop: Atlanta,” has been arrested on federal bank fraud charges arising from a Paycheck Protection Program (PPP) loan that he obtained in the name of Flame Trucking. Fayne, 37, of Dacula, Georgia, was charged with bank fraud and made his initial appearance before U.S. Magistrate Judge Justin S. Anand on May 13. “The defendant allegedly stole money meant to assist hard-hit employees and businesses during these difficult times, and instead greedily used the money to bankroll his lavish purchases of jewelry and other personal items,” said Brian Benczkowski, assistant attorney general of the U.S. Justice Department’s Criminal Division. Benczkowski said the department is “steadfast” in its efforts to prosecute fraud against the Paycheck Protection Program, which is part of the Coronavirus Aid, Relief and Economic Security (CARES) Act. “The defendant allegedly took advantage of the emergency lending provisions of the Paycheck Protection Program that were intended to assist employees and small businesses battered by the coronavirus,” said U.S. Attorney Byung J. “BJay” Pak of the Northern District of Georgia. “We will investigate and charge anyone who inappropriately diverts these critical funds for their own personal gain.” Chris Hacker, special agent in charge of the FBI’s Atlanta field office, concurred. “At a time when small businesses are struggling for survival, we cannot tolerate anyone driven by personal greed, who misdirects federal emergency assistance earmarked for keeping businesses afloat,” Hacker said. “The FBI and our federal partners remain vigilant during this Coronavirus pandemic to make sure funds provided by programs like PPP are used as intended.” According to the charges and other information presented in court, Fayne is the sole owner of a Georgia corporation called Flame Trucking. On April 15, Fayne signed and submitted to United Community Bank (UCB) a PPP loan application in the name of Flame Trucking, stating that the business had 107 employees and an average monthly payroll of $1,490,200. In seeking a loan in the amount of $3,725,500, Fayne certified that the loan proceeds would be used to “retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments, as specified under the Paycheck Protection Program Rule.” UCB ultimately funded a PPP loan for $2,045,800. Within days, Fayne allegedly used more than $1.5 million of the PPP loan proceeds to purchase $85,000 in jewelry, including a Rolex Presidential watch, a diamond bracelet and a 5.73-carat diamond ring for himself, and to pay $40,000 for child support. Such payments are not an authorized use of PPP funds under the CARES Act. On May 6, Fayne was interviewed by federal agents and stated that he submitted a PPP loan application on behalf of Flame Trucking. Fayne claimed that he used all the PPP loan proceeds to pay payroll and other business expenses incurred by Flame Trucking, and denied using any of the PPP loan proceeds to pay his personal debts and expenses. On May 11, agents executed a search at Fayne’s residence in Dacula and seized approximately $80,000 in cash, including $9,400 that Fayne had in his pockets, along with the jewelry he allegedly purchased with the PPP funds. Agents also discovered a 2019 Rolls-Royce Wraith on the premises, which still had a temporary dealer tag on it. Agents executed seizure warrants for three bank accounts that Fayne owned or controlled and seized approximately $503,000 in alleged PPP funds. The case is under investigation by the FBI and the Small Business Association Office of Inspector General.  

Truckers disrupt Trump press conference with air horn symphony on Day 15 of protest

WASHINGTON — Air horns could clearly be heard in the background as President Donald Trump spoke to the nation about the Administration’s latest work on the COVID-19 pandemic today (Friday, May 15). Hours earlier, the president incensed protesters when he claimed in a FOX News interview, “They’re not protesting. They’re there to support me. They love their president.” Trump made similar comments during today’s press conference, which were quickly fact-checked by news outlets. CNN, which has, for the most part, ignored the Washington protest, decided it was newsworthy after all once the truckers’ protest provided an opportunity to criticize Trump. The organization — one that Trump has repeatedly referred to as “fake news” — posted a clip that began with the president saying, “And you hear that outside, that beautiful sound? Those are truckers that are with us all the way. They’re protesting in favor of President Trump as opposed to against. There’s hundreds of trucks out there, and that’s the sign of love, not the sign of your typical protest. So, I want to thank our great truckers. They like me and I like them. We’re working on something together.” CNN co-host Brianna Keilar announced that she wanted to “fact-check” the president’s remarks, saying, “That’s not actually true. Anyone who’s gone down on Constitution Avenue will see that truckers are protesting for a myriad of reasons, but basically they’ve really taken a hit financially.” She went on to explain that truckers have not been recipients of government assistance, saying, “I expect that could change, though, if the president doesn’t want to continue having press events that sound like soccer games.” Janet Sanchez, spokesperson for The Disrespected Trucker Facebook group, posted a live video in which she said, “We’re not here to support anyone.” She urged owner-operators across the nation to come to Washington to join the protest, or to at least shut down their trucks in sympathy. In her video, Sanchez showed trucks “slow rolling” side by side down Constitution Avenue, horns blaring. Other protesters stood in the street or on sidewalks holding signs in protest of “cheap freight” or calling for “broker regulation.” The protest in the capital is noticeably smaller since Trump’s Chief of Staff Mark Meadows addressed the group on Wednesday. After hearing from Meadows, some owner-operators felt the protest had made enough progress to continue without their presence, while others left to return to work after two unpaid weeks of protest. In the photo above, President Donald Trump delivers remarks on the development of a COVID-19 vaccine while air horns can be heard in the background.  

Can the COVID-19 crisis serve as a ‘vaccination’ against nuclear verdicts in trucking?

The COVID-19 crisis isn’t the type of tunnel a nation enters with expectations of an ever-brightening light ahead. After all, an enemy with the ability to kill millions and destroy the global economy isn’t something a nation can look beyond. But in terms of the trucking industry and its executives, drivers and support personnel, history may view the current crisis as a turning point. 2020 could go down as the year truck drivers attained a status similar to what first responders received after 9/11 — heroes, or at least doers of heroic deeds. The shift in public opinion has been a long time coming. Not since the 1970s, when public opinion of truckers was based more on myth than reality, have truck drivers been as popular as they are today. Crisis situations tend to pull the veil from decades of misconceptions and negative publicity. Public-opinion surveys as recent as last October deemed tractor-trailers and their drivers as menaces of highways. But as the COVID-19 crisis spread, anecdotal evidence sprung up signaling a change of opinion. The vital role the trucking industry plays in the nation’s economy shone brightly, and Americans have recognized it. Billboards offering thanks to truckers have popped up along interstates and highways, and testaments of drivers being personally thanked by strangers are numerous. Small businesses are even making special efforts to ensure drivers have what they need to keep them safe as they make the deliveries that will help save the economy. An early April White House ceremony sang the praises of truck drivers. President Trump stated that “America’s truck drivers are the foot soldiers carrying us to victory,” a reference to the many drivers working seven days a week to complete deliveries of essential freight. Ultimately, if the trucking industry is truly to be thanked for its efforts, the evidence may first be seen in the legal system, where juries have increasingly returned “nuclear” verdicts against the industry. Americans aren’t known for their sympathies for insurance companies. After all, dealing with an insurance company can bring 10 times the aggravation of being involved in a car accident. When the insurer does meet its obligations, it frequently sends its “thank you” in the form of a skyrocketing premium or outright cancellation of a policy. Insurance companies are not blameless in the high costs of driving a vehicle, and they share the blame for the crippling premiums truck drivers and carriers pay to fulfill their “heroic” roles. Still, insurance companies increase premiums to remain viable, cover costs and turn a profit. Maintaining the benefits insurers once provided for their customers became more difficult when personal-injury lawyers factored into the equation. Their ability to convince juries to return “nuclear” verdicts against the trucking industry played no small role in building the negative public opinion of the trucking industry in recent decades. The hundreds of personal-injury lawyer billboards lining the roadways of any large American city are hard to miss. For every billboard thanking truck drivers, a hundred continue to encourage motorists to speed to the nearest law firm if they have even a minor run-in with a tractor-trailer. The personal-injury attorneys specializing in incidents involving trucks on the highways are masters at twisting information and statistics to convince motorists and juries that trucks are the bane of highway traffic. Take for instance the statistics involving rear-end collisions. When a rear-end collision happens, fault is seldom placed on the leading vehicle or its driver. After all, it’s a matter of following distance. If the proper distance is maintained, the trailing vehicle’s driver will be able to stop before hitting the lead vehicle. The basic safety measure is as sure as the law of gravity, and every state has traffic laws against “following too close.” A personal-injury attorney is skilled at convincing a jury that a traffic law that’s almost as sure as the law of gravity does not apply in the case of a rear-end collision involving injury or death. The attorney’s arguments deem basic traffic laws insignificant; in fact, any actions of the lead vehicle’s driver are immaterial. And the arguments can result in the type of nuclear verdicts that juries are returning with increasing frequency. The tactics an attorney uses to reverse fault in the case of a rear-end collision are simple. One law firm, known to motorists for its countless billboards vilifying tractor-trailers, openly explains the approach on its website. Fault in such an accident, according to what is posted on the firm’s site as of April 17, 2020, does not rest with either driver; instead, the vehicle itself is at fault. For instance, if the tractor-trailer was equipped with “truck under ride guards” (TUG), shields intended to prevent vehicles from becoming trapped beneath a trailer, the number of accidents involving injuries or fatalities would plummet. Currently, the website claims that federal safety standards require TUGs on trucks weighing over 10,000 pounds. But it also states that the FMCSA is considering strengthening requirements to include TUGs on the front, rear and sides of all trucks. In other words, the attorney’s argument is that the law does not necessarily require TUGs in all situations, but it should. That’s enough for juries to return large judgments in favor of the plaintiffs. While insurance companies are busy defending lawsuits against freight carriers, the seemingly improved public image of truck drivers on jury verdicts remains to be seen. In July 2019, Rep. Matt Cartwright (D-Penn.) introduced a bill that would increase the minimum liability insurance a trucking company must carry from $750,000 to $4.5 million, an increase of 500%. If passed, the bill would force many small carriers to cease operations under the weight of increasing insurance premiums. To date, Rep. Cartwright’s bill has not gained traction, possibly in part to Rep. Cartwright history as an attorney with a reputation for suing freight carriers. His family still operates a law firm, so in debate, the question of conflict of interest would weigh heavily on the bill’s chances of advancing. For many, Rep. Cartwright’s bill will be viewed as a means of providing “reptile” attorneys access to the riches held in every tractor-trailer on the road — rolling ATM machines, if you will. Then again, the public already has negative perceptions of personal-injury lawyers, yet jurors still return nuclear verdicts rewarding their efforts. Secretary of Transportation Elaine Chao said at the White House event honoring truck drivers, “Truckers are playing a heroic role in helping America cope during this crisis and will play a critical role in economic recovery.” It is too soon to determine the impact of the public’s sudden and dramatic positive view of truck drivers in the past several weeks. But with government officials and business owners lauding them as heroes, will juries continue to view the industry a rolling ATM machine? For the time being, those monitoring the tractor-trailer versus personal-injury-attorney battle may find counting billboards to be the most accurate barometer. [Photo Credit: AP Photo: Matt York]

Protesters jubilant as Trump says truckers are price gouged

Social-media websites lit up this morning (May 8) with the news that President Donald Trump had discussed the protest in a call-in appearance on the FOX News network’s “Fox and Friends” show. During a discussion about COVID-19 and other topics with the president, co-host Ainsley Earhardt prompted the comments by asking, “Everything in front of us, our paper, our water bottles, our pencils, our phones, delivered on a truck, and you tweeted about American truckers being price gouged. What are you going to do about that?” The president responded “Oh, they are price gouged.” He then acknowledging the protest near the White House, saying, “it looked like a thousand trucks.” Trump continued, “All they want is to be treated fairly, and we’re going to treat them fairly. You know, what they’re asking is almost nothing in many cases.” After claiming that the truckers are “great, great people,” the president concluded his answer by saying, “We’re going to take care of them.” While the protesters gathered in Washington haven’t given up on their demand for a meeting with Trump or at least administration officials, there was plenty of discussion on social-media platforms. Many feel the president’s comments are a sign that the protest is having an effect. Others cautioned that positive comments are no guarantee of action and that Trump’s statements could simply be lip service. A number of commenters speculated on what Trump might have meant when he said the protesters would be taken care of. The protesters moved their trucks from Constitution Avenue yesterday (Thursday, May 7) in response to a request by the National Park Service; parking was prohibited for 24 hours in the protest area due to a planned “special event.” While the nature of the event wasn’t specified, the president appeared at nearby the World War II memorial to place a wreath this morning, commemorating the end of World War II. With the parking restriction to be lifted at noon, protesters wondered if the park police would honor their promise to allow the protest trucks to return. Tensions were heightened when dozens of orange-painted dump trucks were parked in the former protest area. At noon, however, a police escort was provided for the returning protesters, who paraded back to the Constitution Avenue parking area with American flags waving from most of the vehicles. The protest, originally scheduled to last three days, is now in its eighth day. Protesters vow to remain until a meeting with the president or his administration is granted. Rick Santiago, one of the original protest organizers, posted a Facebook video in which he said the protest had accomplished its purpose and the trucks should leave Washington and pursue broker reform through filing complaints. Truck driver and protester Janet Sanchez, however, posted a video of her own, vowing that the protesters are staying. A few trucks have left the capital for various reasons, but others are on the way to Washington, and the ranks of the protest are expected to grow. The coming days will determine what actions the president will take and how the protesters will respond. Photo of Washington protesters courtesy of Rebecca Doty.

Love’s Travel Stops open in Alabama and Mississippi adding total of 109 truck parking spaces

OKLAHOMA CITY —  Love’s Travel Stops & Country Stores is now serving customers in Smiths Station, Alabama, and Walnut, Mississippi, thanks to two travel stops that opened Thursday, May 7. The Smiths Station store, located off U.S. Highway 280, adds 50 jobs and 51 truck parking spaces to Lee County. The Walnut store, located off U.S. Highway 72, adds 32 jobs and 58 truck parking spaces to Tippah County. Both locations are open 24/7 and offer many amenities, including: Smiths Station, Alabama More than 11,000 square feet. Chester’s Chicken and Godfather’s Pizza. 51 truck parking spaces. 60 car parking spaces. Three RV parking spaces. Six diesel bays. Six showers. Laundry facilities. Bean-to-cup gourmet coffee. Brand-name snacks. Fresh Kitchen concept. Mobile to Go Zone with the latest electronics. CAT scale. Dog park. Walnut, Mississippi More than 7,300 square feet. Godfather’s Pizza. 58 truck parking spaces. 55 car parking spaces. Two RV parking spaces. Five diesel bays. Four showers. Laundry facilities. Bean-to-cup gourmet coffee. Brand-name snacks. Fresh Kitchen concept. Mobile to Go Zone with the latest electronics. CAT scale. Dog park. “Love’s is proud to open two new locations for our customers in the south,” said Tom Love, founder and executive chairman of Love’s. “Opening our 15th and 16th locations in Alabama and Mississippi, respectively, means giving more customers the products and amenities they love to help get them back on the road quicker.” In honor of the grand opening, Love’s will host a ribbon-cutting ceremony at each location and donate $2,000 split between the Phenix City and Lee County Board of Education in Smiths Station and $2,000 to an organization that will be named soon in Walnut. Visit https://loves.com/covid19 for updates regarding temporary changes to the company’s operations.

Exclusive interview with D.C. protesters reveals group’s desire to present case, avoid ‘three-ring circus’

Day 5 of the owner-operator protest dawned in Washington on May 5, with rain on the way. That won’t be enough to deter protesters, who have resolved to remain in place on Constitution Avenue until they get their meeting at the White House. “I’m full of energy and ready to keep going,” said protester Janet Sanchez in an exclusive interview with The Trucker. “I came here to get a job done, and I’m staying until it’s finished.” In another interview, Jeremy Johnson, another member of the protest, said, “We’re standing strong.” Both Johnson and Sanchez are administrators and members of The Disrespected Trucker group on Facebook. The group, started in late July 2019, currently boasts more than 7,000 members. Many of those members joined the group in the past two weeks as the current protest unfolded. The protest continues to grow. “We had another six or seven more trucks join us today, and there are more on the way,” Sanchez said. “We’re not leaving until we get our meeting.” Protests involving large numbers of trucks are often at odds with the local population and government. That isn’t happening here, and protesters say they are surprised at the local support they have received. “Right here, where we are, the police, the Secret Service, the park police — they’ve all been nothing short of supportive,” Johnson said. “At noon they come in with 15 pizzas and another 20 at suppertime. We ask who is sending them, and it’s always ‘concerned citizens of Washington D.C.’” Sanchez agreed. “They’re great! We have police officers that come by and have dinner with us,” she explained, adding that even some of the local motorists are getting involved. “Some of the motorists are making ‘#MakeTruckingGreat’ signs and putting them on their cars; then they honk as they go by.” Protest participants are working hard to keep relations good, Johnson said. “You walk up and down the street past all of these trucks, and you don’t see a piece of trash anywhere,” he said.” We’re doing our best to protest peacefully, within the law.” The protest has achieved results. So far, the White House has acknowledged the group’s presence with the gift of a bag full of hats. Names have been recorded for the process of security clearance for a potential meeting. And President Trump himself thrilled participants with a Saturday-night tweet that began, “I’m with the TRUCKERS all the way.” However, the demonstrators are looking for more than attention from government or media. Being noticed is a first step, but action must follow. They want a meeting with the president, or at least with members of his administration who will hear their complaints. One of the first questions that must be answered if a meeting is granted is who will go to the meeting. “I’m on the list, but obviously, all of us can’t go to the White House,” Sanchez said. Johnson was a little more specific. “Janet Sanchez will definitely go,” he said. “Either me or Shawn (McIntosh, another member of The Disrespected Trucker), if we get the chance. And Mike Landis, CEO of the U.S. Transportation Alliance.” Johnson understands that the size of the delegation is important, too. “We have to be careful who goes,” he said. “Everyone has to pass a background check, and we don’t want the meeting to turn into a three-ring circus.” Once it is determined who will attend the meeting, if it happens, the question of what issues will be presented is critical to the cause. It’s also where Sanchez and Johnson differ — for now. “You can’t just walk in and demand regulation of brokers. What happens when someone else wants to regulate how much truckers are paid?” said Johnson, adding that that hours-of-service (HOS) reform is No. 1 on his list. “They lifted the HOS restrictions because we (truckers) were deemed ‘essential’ during the COVID-19 crisis,” he explained. “News flash: We’re essential 365 days of the year.” Johnson also thinks too many regulations are put in place without considering the input of drivers and small-business owner-operators. “We want immediate suspension of all HOS regulations until we get a seat at the table,” he said, explaining that the 14-hour rule is the first target. Sanchez, on the other hand, wants to target income. “The big issue is money,” she said. “I’d like to see the broker percentage (of load revenue) brought down to 10 to 20%, with at least 80% to the trucker. Trucking is a high-risk job, away from home, and the trucker bears all the expense.” Her reasoning looks to volume. A brokerage has multiple employees, and each one might book 10 to 15 loads a day, while the trucker can only book one, she explained. She also wants more transparency in broker-trucker dealings. “A lot of truckers would like to see the full amount the broker is paid before the load is accepted,” she said. “That way, everything is transparent, and the trucker knows if the broker is keeping too much.” Sanchez listed hours of service as the next item to be addressed, followed by the treatment of drivers. “We also want to see drivers protected,” Johnson said. “Too often, detention isn’t paid. Our time should be paid, too.” He listed access to restroom facilities at shipper and receiver locations as another issue. “It always seems everyone is protected except the trucker,” he concluded. While the protest continues, the group’s de facto leadership plans to continue polling the participants to make sure everyone is on the same page. “We’re trying to take opinions from the drivers, then the more experienced drivers are working to narrow it to the two or three main points,” Sanchez said. Keeping the demonstration peaceful is an important goal, too. “Janet, me and Shawn, wherever we can keep things calm and moving forward, we want to be there,” Johnson said, adding that it’s important that the group is together. “My message is one of unity between all of us,” Sanchez said. “Really, we can accomplish a lot of things if we’re all together.” Both Johnson and Sanchez are confident that persistence and unity are keys to achieving their objectives, and they’re asking for public support. “Truckers move America,” Sanchez said. “America needs to stand up for its truckers.” [Photo courtesy of Rebecca Doty via Facebook]

‘Mayday’ protesters garner presidential attention but end result of truckers’ efforts remains to be seen

On a news-filled day when protests erupted across the country to protest COVID-19 “shelter in place” restrictions, about 100 independent owner-operators accomplished something that other protesters routinely fail to do. They got the direct attention of a sitting U.S. president. At 9:42 p.m. on Sunday, May 3, President Donald Trump tweeted, “I’m with the TRUCKERS all the way. Thanks for the meeting at the White House with my representatives from the Administration. It is all going to work out well!” Earlier in the day, White House representatives showed up at the demonstration site bearing gifts — a cloth bag emblazoned with the presidential seal and filled with hats bearing the messages “USA Strong” and “Keep America Great.” The Trump tweet was the first official public acknowledgement from the government of awareness of the “mayday” protest that began May 1. The ruckus attracted the attention of 160,000-member OOIDA (Owner-Operator Independent Drivers Association), which weighed in on Saturday with an informational letter from Lewie Pugh, the association’s executive vice president, to its membership that acknowledged historically low freight rates and provided a link to report broker abuse. Social media erupted with responses to the protest. Some people were jubilant at the movement’s success in attracting the attention of The Washington Post and other media outlets, culminating with a tweet from Trump himself. Others cautioned that the attention was only a first step and that the issue that could take more time, and more protest, to resolve. Still others cautioned participants to be careful what they wish for. Mark Rasmussen commented on The Trucker’s website, “I want to be an owner-operator and own my own business, but I want the government to take care of me. You can’t have it both ways.” A common sentiment expressed was that owner-operators who haul cheap freight are helping keep rates low for everyone. Brandon Montgomery, who posted that he’s been parked for seven weeks now, said, “If you haul cheap freight YOU are the problem. PARK THOSE RIGS.” The issue facing protest organizers and participants now is what they’ll do with the newfound attention, especially if, as expected, the result is a meeting with Trump himself — or at least with administration officials. The protest has been centered around low freight rates, but opinions diverge quickly from there. Should organizers ask for federal regulation of brokers with, perhaps, a mandated percentage of revenue brokers are allowed to keep? And, if so, what is a reasonable percentage? Another potential avenue is increased transparency. Brokers are already required to provide rate information to every party that participates in each load. Truckers are entitled to know how much the broker was paid by the shipper, any additional services the broker provided and more. All that is required is that the owner-operator ask for the information. The majority of owner-operators believe, however, that asking for this information will result in being “blacklisted” by that broker and being unable to conduct further business. A federal mandate that brokers must provide this information at the time of settlement with the trucker wouldn’t necessarily increase the percentage of revenue to the carrier, but it would increase broker transparency by eliminating the trucker’s responsibility to request it. Broker retribution would also be greatly reduced, since they would be providing the information to every carrier they contract with. OOIDA expressed support for this position April 28 when Norita Taylor, media spokesperson for the group, told The Trucker that OOIDA would like to require brokers to provide electronic records as soon as a haul is complete. A meeting with the Trump administration might be an opportune time to discuss financial assistance for owner-operators, too. As self-employed business owners, most don’t qualify for unemployment benefits in their home states. The U.S. Small Business Administration has been instructed to make an additional $50 million available for low-interest loans to small businesses. The funds, however, are distributed to the states, which then work with financial institutions to provide funding to small businesses. The process for obtaining the cash isn’t clear, and there’s a question of whether small trucking businesses would qualify for the loans since they aren’t officially “shut down” by government mandate. Suspending operation due to unprofitable freight rates may not be looked upon in the same light as a mandated closing. Some owner-operators may not be able to put together an application package to satisfy lenders, which depend heavily on business plans, profit-and-loss statements, and creditworthiness to decide who gets the money. Other complaints that have been made include elimination of the requirement for electronic logging devices (ELDs), regulations addressing detention conditions and pay, access to restrooms and break areas at shippers’ and receivers’ facilities, and even a ruling by the FMCSA that would allow interstate truckers to carry loaded firearms in all jurisdictions. A video posted on Facebook today (May 4) by one of the protest organizers, Rick Santiago, demands that the FMCSA be “eradicated” and antitrust laws be eliminated, although an explanation of how either action would come about — or how it would benefit owner-operators — was not provided. Hopefully, organizers will remain focused on a small number of key issues as they remain in Washington to continue pursuing their cause. [Photo courtesy of Rebecca Doty via Facebook]

Drivers, other industry insiders weigh in on issue of dropping freight rates

The stories from owner-operators about low freight rates abound. Tony Filla commented on The Trucker’s Facebook page, “The bottom dropped out. They’re (carrier customers) not shipping, so there went 60% of my long-distance freight out the window.” Filla usually hauls rebar and other fabricated products on a flatbed trailer. Due to the reduction in loads, he’s now working in his carrier’s local fleet making shorter regional runs. Under normal operating conditions, he would use load boards to pick up a return load from a broker, but the rates are so low that he is deadheading back, adding that he is “surviving for now” and has no desire to haul freight for “free.” Kevin Kocmich is doing a little better. “I’m not going backwards,” he said. “Times are tough now, but my income hasn’t dropped too much.” In March, Kocmich was named the 2019 Owner-Operator of the Year by the Truckload Carriers Association. He is leased to Diamond Transportation System (DTS), which assigns oversize loads received from its contract customers. Kocmich depends on brokers to supplement the loads he receives from DTS. “Rates are down, but so is fuel, at least 25%,” Kocmich said. His advice to struggling owner-operators is to know their costs of doing business. “You gotta know the numbers of your business,” he said. “How can you protest when you don’t even know your own numbers?” Kocmich isn’t planning to join any organized protests. “I stay kind of neutral,” he said. “I agree on some stuff and disagree on some.” He was clear about how protests should be conducted, however. “I don’t think they should be slowing traffic and getting the police involved,” he stated. Norita Taylor, media spokesperson for OOIDA, talked numbers, too. “Know your cost of operations. Know your customers,” she said. “And, always, safety first.” While Taylor did not express support for any particular protest, she was supportive of the rights of the participants. “Our general take on any protest is that everybody has the right to legally protest,” she explained. “We wouldn’t support blocking roads and that sort of activity, but we support their right to protest so long as they do it legally and safely.” OOIDA, Taylor explained, doesn’t take an official position on broker rates paid to carriers, but the organization does support brokers providing electronic records to owner-operators as soon as the haul is completed. The group also supports waiving both Heavy Vehicle Use Tax (HVUT) and Unified Carrier Registration (UCR) fees for 2020. Jeff Hopper, vice president and chief marketing officer at DAT, recommended that owner-operators pay particular attention to rates. “Rates are negotiated between broker or shipper and the carrier,” he said. “The best time to address rates is in the negotiation process.” Hopper vehemently denied recent publicity that claimed DAT sets broker rates. “DAT does not set rates. All rates are negotiated between the parties involved,” he said. “We believe the DAT load board is the largest public marketplace for loads in the country.” That status as “the largest public marketplace” provides lots of data that can be useful. “We use anonymized data to identify trends in rates, regional activity and other factors,” Hopper continued. “We use past data to report on what’s happening in the market currently and also to forecast what we think will happen in the future.” Owner-operators and brokers who are subscribers to DAT can use the information found there, including summary reports produced by DAT, to determine average rates that they can then apply to their own loads. Hopper was clear, however. “We do not take a percentage of revenue and we certainly don’t set rates,” he said. Responding to suggestions that owner-operators cancel their subscriptions to DAT, Hopper said, “It’s everyone’s right to do so, but they’ll lose access to a lot of loads as well as information that helps them make good business decisions.” Good business decisions are especially critical when freight rates are down. “We should remember that we’ve never really seen an event with such an economic impact,” Hopper said. “There’s just not enough loads. After an initial surge for groceries, shippers aren’t shipping.” The general malaise that has impacted the trucking industry is worldwide, and other industries are also feeling the pain. On April 29, the U.S. Department of Commerce Bureau of Economic Analysis (BEA) announced an adjustment in the First Quarter 2020 U.S. Gross Domestic Product (GDP) to -4.8%. Most economists define a recession as two or more consecutive quarters of negative growth. Considering that major business closures didn’t take place until April, the beginning of the second quarter, it’s very likely that second-quarter GDP statistics will fit solidly into negative territory. Personal income has also declined, according to BEA, falling 3.1% in March alone. With skyrocketing unemployment, the April numbers aren’t expected to improve. FTR’s “Monday Morning Coffee” blog for April 27 presented some dire numbers. Orders for Advance Durable Goods such as cars, computers and other products dropped 14.4% in March and are expected to fall again in April. Total shipments fell 4.5%. FTR predicted that business investment will likely be weak for the rest of 2020, harming productivity. There’s little doubt in anyone’s mind that it is difficult to do business in the current economy. Companies of all sizes are struggling to stay in operation. A sad reality is that recessionary conditions can cause weaker players to drop out of the market. Most carriers, including owner-operators, benefited from the plentiful freight and higher rates of 2018 and the first half of 2019. The market is tougher now. Some trucking businesses, especially smaller ones, will not survive this economy. Claims of broker malfeasance — and plans to physically protest it — can be debated. Are economic problems faced by independent owner-operators caused, at least in part, by broker profiteering, as protest organizers claim? Are current conditions, the supply and demand that governs trucking and every other market, entirely to blame? What share of the blame, if any, do the small-business owners who chose to invest in trucking deserve? And, what can be done to increase each carrier’s chances to survive what is now generally accepted to be an economic recession? We’ll address some of those questions in tomorrow’s series wrap-up. Editor’s note: This story is the second installment of a series. Check TheTrucker.com tomorrow for another installment about the owner-operators’ issues and upcoming protests.

Great America Trucking Show canceled for 2020

DALLAS – The 2020 Great America Trucking Show, which was scheduled for Aug. 27-29 and presented by Randall-Reilly, has been canceled according to a release on the show’s website. “The same fears and uncertainties that have led entities as diverse as Facebook and Major League Baseball to cancel or severely curtail in-person events have informed a very difficult decision: Randall-Reilly is canceling the Great American Trucking Show, scheduled for Aug. 27-29, 2020. This decision has been made with the health and well-being of all participants first and foremost in mind,” the release said. The release continued to say that the show’s presenters “will use the coming months to determine what form future events take and assess the safeguards needed to ensure your health.” “This pandemic has underscored how critical the industry and drivers are to the well-being of America. The fleets, owner-operators and drivers are what’s kept the flow of food and other goods in stores and homes. We are thankful to you, proud of you and will keep you posted on what’s next for GATS so we can celebrate you at a future event,” according to the website.

FMCSA’s proposed rules crack down on substance-abuse violations, ask for ‘CMV driving ban’ for offenders

Under new rules proposed by the Federal Motor Carrier Safety Administration (FMCSA), state driver’s licensing agencies (SDLAs) would be prohibited from issuing, renewing, upgrading or transferring a commercial driver’s license (CDL) or learner’s permit (CPL) for drivers who have been barred from operating a commercial motor vehicle (CMV) due to drug or alcohol violations. The proposal is designed to provide real-time information from the Drug & Alcohol Clearinghouse to SDLAs to keep drivers with drug or alcohol offenses off the road until they comply with return-to-duty requirements. The notice of proposed rulemaking (NPRM), posted April 28, calls for SDLAs to check commercial license applicants’ status in the Clearinghouse; if the results show a driver is prohibited from operating a CMV, the agency would be required to deny licensing. Affected drivers could re-apply for licensing after completing return-to-duty requirements. The notice also outlines how state licensing agencies would use Clearinghouse information to help enforce CMV driving prohibitions. As an alternative, FMCSA proposes that SDLAs receive “push” notifications from the Drug & Alcohol Clearinghouse indicating when drivers licensed within the state are prohibited from operating a CMV. “Currently, most states are not aware when a CDL holder licensed in their state is prohibited from driving a CMV due to an alcohol or drug testing violation,” the proposal notes. “Consequently, there is no federal requirement that SDLAs take any action on the license of drivers subject to that prohibition. As a result, a driver can continue to hold a valid CLP or CDL, even while prohibited from operating a CMV under FMCSA’s drug and alcohol regulations.” This alternative proposes a licensing downgrade to align a driver’s licensing status with his or her current CMV driving status, closing a current loophole in regulations. To achieve the mandatory downgrade, SDLAs would change CDL and CLP holders’ commercial status from “licensed” to “eligible.” FMCSA’s proposal also addresses operational questions and legal considerations identified by SDLAs, both individually and through the American Association of Motor Vehicle Administrators. FMCSA will accept public comments through June 29. When submitting comments, refer to Docket No. FMCSA- FMCSA-2017-0330 and indicate the specific section of the document to which each comment applies; also note a reason for each recommendation. Comments may be submitted via fax, mail or hand delivery, or online here.

New Love’s locations in Illinois and Michigan add a total of 201 truck-parking spaces

OKLAHOMA CITY – Love’s Travel Stops & Country Stores is now serving customers in Sauget, Illinois, and Watertown Township, Michigan, with two new travel stops. The Sauget store, located off Interstate 255, adds 55 jobs and 85 truck-parking spaces to St. Clair County. The Watertown Township store, located off Interstates 69 and 96, adds 85 jobs and 116 truck-parking spaces to Clinton County. “Love’s is glad to open two new locations for customers in Illinois and Michigan,” said Tom Love, founder and executive chairman of Love’s. “We are continuing to open new locations in order to help get customers back on the road quickly, especially professional drivers as they continue to deliver vital goods throughout the country.” Both locations are open 24/7 and offer many amenities, including: Sauget, Illinois More than 9,000 square feet. Chester’s Chicken, Godfather’s Pizza and Subway (Chester’s is temporarily closed). Eighty-five truck-parking spaces. Sixty-five car-parking spaces. Three RV-parking spaces. Nine diesel bays. Seven showers. Laundry facilities. Bean-to-cup gourmet coffee. Brand-name snacks. Fresh Kitchen concept (temporarily closed). Mobile to Go Zone with the latest electronics. CAT scale. Watertown Township, Michigan More than 9,000 square feet. Hardee’s and Subway. 116 truck-parking spaces. Eighty-two car-parking spaces. Seven diesel bays. Nine showers. Love’s Truck Care with Speedco on site. Laundry facilities. Bean-to-cup gourmet coffee. Brand-name snacks. Fresh Kitchen concept. Mobile to Go Zone with the latest electronics. CAT scale. In honor of the grand opening, Love’s will host a ribbon-cutting ceremony at each location and donate $2,000, split between Touchette Regional Hospital and Southern Illinois Healthcare Foundation Inc. in Sauget, and $2,000 to Potterville Area Schools in Watertown Township. Visit loves.com/covid19 for updates regarding temporary changes to operations.

2020 Shell Rotella SuperRigs will be digital event due to COVID-19 crisis

FORT WORTH, Texas — The 2020 Shell Rotella SuperRigs will be held as a digital event because of the COVID-19 pandemic, according to event sponsors. The 38th annual event was originally slated for June 4-6 as part of an IndyCar Series and NASCAR Truck Series weekend at the Texas Motor Speedway. “This was a difficult decision to make, but protecting the health and safety of truckers and our community is our highest priority,” organizers said. “Shell Rotella always appreciates hard-working truckers and the essential work they do every day, especially now during this critical time to transport essential goods across North America.” The Shell Rotella SuperRigs competition is a truck beauty contest that allows owner-operator truckers from across the U. S. and Canada to compete for more than $25,000 in cash and prizes. Twelve drivers will be selected to have their trucks featured in the 2021 Shell Rotella SuperRigs calendar. Details about the digital event will be published soon, along with plans for the production of the 2021 Shell Rotella SuperRigs calendar. For more information visit Rotella.com.

Pilot Co. takes steps to protect against COVID-19; donates $100k to St. Christopher Truckers Fund

KNOXVILLE, Tenn. — In an effort to protect both customers and employees during the COVID-19 pandemic, Pilot Co. has implemented enhanced safety measures at the company’s network of 780 Pilot and Flying J travel centers across the country. Starting this week, acrylic sneeze guards will be installed at diesel desks and other payment points at all locations. In addition, store team members will be equipped with reusable and washable cotton masks; all team members have been trained on proper wear and care for the masks, including washing their hands and masks after every use. In addition, Pilot Co. is working to ensure the travel stops’ shelves are stocked with hand sanitizer, and the teams hope to soon have face masks available for purchase. “To all professional drivers working tirelessly to deliver medical supplies, food and other essentials to those across North America: Thank you. Without you, our hospitals, grocery stores, factories and many other businesses would not have what they need to aid in the fight against COVID-19,” said Jimmy Haslam, CEO of Pilot Co. “For the health and safety of our guests and team members, we are taking extra precautions to ensure we continue to have the food, fuel and resources you need to safely do your job and keep the supply chain moving,” he continued. “Our team is here for you, and we will get through this together.” To further support professional drivers during this challenging time, especially those who cannot work due to illness or injury, Pilot Company has contributed $100,000 to the St. Christopher Truckers Development and Relief Fund (SCF) to help professional drivers in times of need, and especially during the COVID-19 crisis. “Our country depends on professional drivers to keep our economy moving every day,” Haslam said. “When professional drivers are in need, we want them to know they can depend on the help provided by the St. Christopher Fund. We must work together as an industry to ensure drivers have the resources they need to safely do their jobs, support their families and keep the supply chain moving,” he said. “Despite these difficult and uncertain times, professional drivers continue to go above and beyond, and we are honored to do our part in supporting them with this donation.” SCF is a nonprofit organization that aids professional drivers and their families who are out of work due to a recent illness or injury, the instances of which could increase as a result of the health and economic effects of the COVID-19 pandemic. Assistance from SCF may be in the form of direct payment to providers for household living expenses, such as rent/mortgage, utilities, vehicle payments and insurance. The fund also provides health and wellness programs for drivers, such as free vaccinations and smoking cessation assistance, with the aim toward preventing some medical illnesses and negative effects. Pilot Co. has partnered with SCF since 2015. “Thank you, Pilot Co., for your generous and continued support of St. Christopher Fund,” said Shannon Currier, SCF director of philanthropy and development. “Professional drivers are facing this virus head-on as they crisscross the country delivering the essential supplies all Americans need, and this donation will help ensure that SCF will be there for our highway heroes when they need us most.” Truckers in need of assistance from SCF can apply at truckersfund.org/application. To donate to SCF’s mission of supporting truckers and their families in financial need, visit truckersfund.org/donate or contact Shannon Currier at shannon@truckersfund.org