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Industry looks forward to a positive freight outlook for 2025 but uncertainties remain

November saw declines in truckload volumes, according to information received from DAT Freight and Analytics — but with sound reason. “Shippers moved so much freight into the U.S. earlier this year, ahead of potential tariffs and port strikes, that we didn’t see the volumes we might expect in November,” said Ken Adamo, DAT’s chief of analytics. President-elect Donald J. Trump has threatened tariffs on goods from several countries, including Canada and Mexico, but actual implementation won’t happen until after the Jan. 20 presidential inauguration. Both Canada and Mexico are attempting to comply with Trump’s demands to tighten border security, which could cause Trump to relent on tariff threats. The port strikes Adamo refers to were settled, at least temporarily. Earlier in the fall, ports along the U.S. East and Gulf coasts that are administered by the U.S. Maritime Alliance (USMX), were under threat of a strike by the International Longshoremen’s Association (ILA), the largest maritime worker’s union in North America. Many businesses ordered extra inventory in August and September in anticipation of the strikes, which were expected to cause massive disruptions in the U.S. economy. The two sides came to a tentative agreement after just three days and the ports reopened, but the settlement is effective only until Jan. 15, 2025 — when another strike looms. Freight rates saw some improvement. Freight rates were, overall, slightly better in November, according to DAT. Dry van spot rates, on average, remained at $2.02 per mile, identical to October rates, but have since climbed in December. Refrigerated rates were up by six cents to $2.45 in November, while flatbed rates dropped by four cents to $2.42 per mile. The $2.45 refrigerated spot rate was the highest average since January. Overall, rates are up about 5% compared to November of 2023. On the contract side, rates didn’t change much from October. Contract van rates were down eleven cents from November 2023, refrigerated rates were down by eighteen cents and flatbed down eleven cents. However, DAT’s New Rate Differential (NRD), which measures changes in the contract market, was positive for the third consecutive month. That means that new contracts being entered are better than old contracts that are expiring. Private fleets have impacted the freight market. ACT Research’s For-Hire Trucking Index for Volumes was in positive territory for the second consecutive month in November. “The U.S. economy remains resilient, and freight volumes are growing,” the release noted. ACT’s Capacity Index came in at 50, indicating a balance between the supply of available trucks and the demand for them. The release also pointed to the expansion of private fleets as a key factor in slowing freight rate recovery. Private fleets have been in the news for most of 2024 as product manufacturers continue to buy trucks. Proctor & Gamble, for example, had no private fleet when it began purchasing trucks in 2019. Today, the fleet accounts for over 800 drivers. The freight handled by those 800 drivers is no longer available to for-hire carriers — and P&G certainly isn’t the only private fleet. The Cass Freight Index for Shipments showed a 2.8% seasonally adjusted gain in November, while the index for expenditures grew by 3.1%. More freight, and more income for hauling it, are positive signs for the trucking industry. The Cass report also focuses on the increase in private fleets as a drag on the for-hire market. The release predicts that the total Freight Index decline for 2024 will be about 4%, while private fleets have grown roughly 5%. These factors could impact freight volumes and rates. While rates are generally predicted to grow slowly in 2025, there are several factors that could impact freight volumes and rates. One is inflation, which typically grows when a new administration takes over the U.S. government. The Federal Reserve board on Dec. 18 announced another .25 point cut to its key interest rate, an indication that inflation is slowing. The group also announced it expects to cut rates twice more in 2025, rather than the four cuts previously expected. If the rate cuts aren’t enough to curb inflation, as some analysts predict, the economy could suffer. A second factor that could drive inflation and reduce freight volumes is the threat of tariffs. If Trump imposes tariffs on China, Canada and Mexico, as he has threatened, imports could be slowed and the cost of products will rise. Trump has used threats of tariffs in the past as a tool to gain concessions from other countries, which may be a component of his current threats. The threat of a port strike looms once again. The largest near-term headwind to the freight market may be the looming threat of Jan. 15 port strikes. More than half of the nation’s imports flow through the East and Gulf coast ports. The ILA and USMX settled some issues during the three-day October stoppage when the USMX agreed to pay and benefits increases, but other issues remain. One of those issues is modernization. U.S. ports have been classified as “inefficient” compared with ports in other parts of the world. The World Bank Group claims that ports in other countries are 40% more productive than U.S. ports; in fact, no U.S. ports are listed among the world’s Top 50. Increased use of automation would help them become more efficient, but at the cost of jobs. The ILA is insisting that plans to modernize U.S. ports be eliminated, claiming that U.S. port efficiency ratings are skewed by customs clearance and extensive safety and security protocols mandated by U.S. law. On December 12, president-elect Trump met with ILA Executive Vice Presidents Harold J. and Dennis A. Daggett at Trump’s Mar-a-Lago resort. After the meeting, Trump posted to Truth Social, “There has been a lot of discussion having to do with ‘automation’ on United States docks. I’ve studied automation and know just about everything there is to know about it. The amount of money saved is nowhere near the distress, hurt and harm it causes for American Workers, in this case, our Longshoremen.” In September, JP Morgan Chase estimated that an ILA strike would cost the economy $3.8 to $4.5 billion per day. That cost will be even higher in January. With a determined ILA and a sympathetic incoming U.S. president, it’s looking like a strike will occur, and it likely won’t be resolved quickly. Meanwhile, the trucking industry does what it always does: Transport cargo across the continent as quickly and safely as possible.

Jimmy Carter made historical impact on trucking industry by signing Motor Carrier Act of 1980

From peanut farmer to Georgia state politician, to President, Jimmy Carter was known as more of a humanitarian than a politician, even though he made his life as a politician beginning in the 1960’s where he lost his first try for Georgia’s Governor’s seat. He won that seat in his second try before running for president in 1976. His impact on the trucking industry? Historical. President Carter signed the Motor Carrier Act in 1980. The legislation removed federal entry controls in interstate trucking and made it easier for carriers to reduce rates. President Carter’s signing statement predicted gains for consumers, shippers, and the trucking industry. “I have today signed into law S. 2245, the Motor Carrier Act of 1980,” Carter wrote. “This is historic legislation. It will remove 45 years of excessive and inflationary Government restrictions and redtape. It will have a powerful anti-inflationary effect, reducing consumer costs by as much as $8 billion each year. And by ending wasteful practices, it will conserve annually hundreds of millions of gallons of precious fuel.” “The Motor Carrier Act of 1980 will bring the trucking industry into the free enterprise system, where it belongs,” Carter added. “It will phase out most of the antitrust immunity that has allowed rate bureaus to fix prices. It will eliminate redtape and encourage price competition by allowing trucking companies to price their goods within a zone of reasonableness not subject to ICC review, and it immediately ends antitrust immunity for all rates set through that zone,” Carter wrote. “The premise of the rate-zone provision is that increased competition between truckers will prevent abuses of this pricing freedom. I expect the ICC to implement this legislation effectively and promptly to ensure the vigorous competition needed to make greater pricing freedom work in the interest of shippers and consumers.” Carter was the spearhead of the Panama Canal Treaty that turned control of the canal over the the Republic of Panama by 2000. According to the Associated Press, Carter partially deregulated the airline, railroad and trucking industries and established the departments of Education and Energy, and the Federal Emergency Management Agency. He designated millions of acres of Alaska as national parks or wildlife refuges. He appointed a then-record number of women and nonwhite people to federal posts. He never had a Supreme Court nomination, but he elevated civil rights attorney Ruth Bader Ginsburg to the nation’s second highest court, positioning her for a promotion in 1993. He appointed Paul Volker, the Federal Reserve chairman whose policies would help the economy boom in the 1980s — after Carter left office. He built on Nixon’s opening with China, and though he tolerated autocrats in Asia, pushed Latin America from dictatorships to democracy.

UPDATE: Sinkhole in New Jersey keeps I-80 closed after a section collapses into an abandoned mine

WHARTON, N.J. (AP) — Road crews were repairing a short stretch of Interstate 80 in northern New Jersey on Friday where a sinkhole forced the eastbound lanes to shut down, but it was still unknown when they will reopen. The highway’s guardrail still hung suspended in the air across the gaping 40-foot-wide (12-meter) hole, which opened up when an abandoned mine collapsed under the highway’s right shoulder Thursday morning, according to the New Jersey Department of Transportation. The sinkhole has forced motorists to take a short detour near Wharton, which is about 40 miles (64 kilometers) west of New York City. Crews have stabilized the area and started excavating. They will work around the clock to the repair the roadway, the highway department said Friday. The timing of when the eastbound lanes will upon depends on how extensive the repairs will be and the upcoming weather, the department said. Drivers should continue to expect delays and use alternate routes.

CBP inspection reveals 37 migrants hiding in commercial trailer

EL PASO, Texas – Customs and Border Protection reported last week that agents found migrants in a trailer in Texas. According to a release, U.S. Border Patrol El Paso Sector agents assigned to the Las Cruces Station apprehended 37 undocumented migrants concealed inside a tractor-trailer during a routine inspection at the Interstate-25 checkpoint on Sunday, Dec. 22. CBP says during the inspection, agents reported hearing movement near the rear door of the trailer and observed individuals attempting to crouch behind freight. Further investigation revealed 37 migrants hiding inside the cargo trailer without proper documentation. The migrants, who were from various countries, including Guatemala, Mexico, Cuba, El Salvador and Ecuador were taken into custody and transported to the Central Processing Center for further processing under Title 8 authority. CBP says during Fiscal Year 2024 El Paso Sector Agents disrupted 24 tractor trailer smuggling events with 387 migrants found. So far in fiscal year 2025, El Paso Sector Agents have disrupted four significant tractor trailer smuggling operations, resulting in the apprehension of 97 undocumented migrants. The El Paso Sector Border Patrol regularly encounters smuggling tactics used by transnational criminal organizations, including concealing migrants in commercial vehicles. Smuggling large groups in tractor trailers poses extreme dangers due to the lack of proper safety measures. Individuals are often crammed into confined spaces without seat belts, adequate ventilation, or climate control often experiencing dangerously high temperatures in the summer and freezing conditions in the winter. “Smuggling organizations exploit migrants with false promises of safe passage and easy entry, but illegal entry into the United States often involves tactics that not only violate U.S. immigration laws but also endanger lives,” said El Paso Sector Chief Anthony Scott Good. “We remain focused on enforcing immigration laws, holding smugglers accountable, and applying consequences to those who cross the border illegally or attempt to circumvent the legal immigration process.”

Diesel prices fall again after slight spike last week

Diesel prices keep bouncing. After a huge drop two weeks ago, followed by a bounce back upward, the prices per gallon of diesel have dropped again, but not as drastically as the plunge of two weeks ago. The national average price for a gallon of diesel dropped nearly two cents from $3.494 to $3.476. Three regions made the difference in this week’s drop. The West Coast dropped a little more than five cents from $4.130 to $4.079 while the West Coast less California, fell from $3.726 to $3.645, a more than 8-cent drop. The Gulf Coast also fell by nearly four cents per gallon from $3.190 to $3.154. The New England and Central Atlantic regions did rise, but by only by a quarter and a third of a cent. The Midwest dropped by one-hundredth of a cent.

Wildlife Wins: I-5 gets first-ever overpass for animals

ASHLAND, Ore. – A $33,200,100 federal grant award will allow the Oregon Department of Transportation (ODOT) to construct a wildlife crossing over Interstate 5 in southern Oregon in the Cascade Siskiyou National Monument; this will be the first wildlife overcrossing for Oregon and for the entire stretch of I-5 between Mexico and Canada. The Federal Highway Administration (FHWA) grant was announced Friday.   “With this significant investment of federal funding, ODOT can now provide a new connection for wildlife in an ecologically diverse area,” said Kris Strickler., ODOT director. “This will improve safety for drivers on I-5 by reducing wildlife collisions. I want to thank our federal partners for making this project possible by fully funding ODOT’s grant request.”  The grant award will go toward construction of a wildlife overpass on Interstate 5 just north of the Oregon-California border. The location is within the Mariposa Preserve, part of the Cascade-Siskiyou National Monument, according to an ODOT press release. Funding will allow for construction of an overpass spanning the northbound and southbound lanes, directional fencing to funnel wildlife to the structure and associated habitat improvements. The purpose of a wildlife crossing is to prevent wildlife-vehicle collisions, which threaten the safety of both motorists and wildlife, and to reconnect critical wildlife habitat.  “What a huge win for Southern Oregon,” U.S. Senator Jeff Merkley. “This first-ever I-5 wildlife crossing in Oregon will be instrumental in safeguarding all the special species that call the Cascade-Siskiyou National Monument home, while protecting drivers from dangerous wildlife collisions and costly damages to their vehicles. I’ve long championed efforts to strengthen the Cascade-Siskiyou area, and this latest federal investment I pushed to secure will certainly go a long way toward protecting drivers and the diverse wildlife that are entwined with this spectacular landscape that’s unlike anywhere in the world.”  In addition to the $33,200,100 FHWA grant award, ODOT will provide matching funds of $3,799,900 for a total project cost of $37 million. The required match comes from a $7 million allocation to wildlife corridors by the Oregon legislature with the passage of House Bill 5202 in 2022.   There are currently six wildlife undercrossings in the state, including five under U.S. 97 and one under U.S. 20. Their construction has led to an 86% decrease in vehicle-wildlife collisions. Recent data shows the average cost of a vehicle collision with a deer is $9,000, and $24,000 for a collision with an elk. Future sites for wildlife overcrossings on U.S. 20 are under review in Central Oregon.   ODOT has collaborated with the Southern Oregon Wildlife Crossing Coalition, a group of governmental, nonprofit and tribal partners, to develop a plan and support for a wildlife crossing. “We are grateful for all the hard work our partners have put in to help bring the project to fruition,” said Darrin Neavoll, ODOT Region 3 manager. “This project means a lot to a lot of people.”  

BTS: Long-term trend emerging in North American freight trucking

According to the Bureau of Transportation Statistics North American freight data, a long-term trend is emerging between U.S., Canada, and Mexico freight trucking. A Bureau of Transportation Statistics report provides the data behind these trends in North American freight flows, highlighting changes since 2017 in the volume and value of truck traffic between the U.S., Canada, and Mexico. BTS Border Crossing data reveals that, starting in 2017, the trajectory of incoming trucks from Canada and Mexico began to diverge. Since 2000, the number of trucks from Canada have been decreasing while in contrast the number of trucks from Mexico have increased. From 2000 to 2023, the number of trucks from Canada decreased 21.6% from 7,048,128 to 5,526,056 while trucks from Mexico increased 62.6% from 4,525,579 to 7,356,659. Collectively, the data indicate a shift in North American cross-border trucking. The data shows Mexican freight flows are growing faster than Canada. This trend reflects changes in manufacturing, trade patterns, and supply chains in the North American freight market From 2019 to 2023, the number of commercial trucks entering the U.S. from Mexico rose 14.2% from 6,440,255 to 7,356,659 while trucks from Canada fell 2.7% from 5,681,155 to 5,526,056. In terms of dollar value of truck freight, BTS TransBorder data shows a similar trend. Since the pandemic in 2021, the value of freight flows carried by truck with Mexico have increased while simultaneously decreasing with Canada.   From April 2020 to October 2024, the value of U.S. freight flows with Canada by truck increased 86.4% from $17.8 billion to $33.1 billion while the same measure of freight flows with Mexico increased 166.3% from $20.8 billion to $55.3 billion. For a detailed breakdown of the composition of commodities by mode and geographic detail, please see recent BTS data spotlight report titled Transportation Commodity Brief: U.S. Freight Flows with Canada and Mexico in Transportation Commodities.  From a geographic perspective, the land border port at Detroit handled 1,562,531 incoming trucks in 2023, slightly increasing by 1.4% from 1,541,294 trucks in 2019 for the first time since the pandemic. Commercial truck activity along the Southern land border continued to show robust growth. Laredo, which is the largest gateway for trucking in North America, handled nearly 3 million incoming trucks in 2023 that represented a 24.2% growth from 2019.

FedEx to separate FedEx Freight, creating two industry-leading public companies

MEMPHIS, Tenn. — FedEx Corp.’s board of directors has concluded a comprehensive assessment of the role of FedEx Freight as part of its portfolio and has decided to pursue a full separation of FedEx Freight through the capital markets, creating a new publicly traded company. According to a press release, the separation is expected to be achieved in a tax-efficient manner for FedEx stockholders and executed within the next 18 months. “This is the right time to pursue a separation as we respond to the unique dynamics of the LTL market,” said Raj Subramaniam, FedEx Corp. president and chief executive officer. “This announcement is a testament to the strength of the business our team has built, and to our dedication to doing what’s best for our customers, our team members, and our stockholders. Through this process, we will unlock value for our Freight business and position FedEx to create even greater value for stockholders.” According to the release, as two industry-leading public companies, FedEx and FedEx Freight will continue to pursue their growth strategies. The separation will allow for more customized operational execution along with more tailored investment and capital allocation strategies to serve the unique and evolving needs of both the global parcel and LTL markets. They will also maintain the strategic advantages of cooperation on key commercial, operational, and technology initiatives. Customers of both businesses will continue to enjoy the same superior service, speed, and coverage they have come to expect from FedEx. “Over the last 50 years, FedEx has built an unmatched global platform that has produced significant value for our stockholders and opportunities for our team members,” said R. Brad Martin, vice chairman of the board and chairman of the Audit and Finance Committee who led the Board’s oversight of the strategic analysis. “Building upon that powerful foundation, and following a careful assessment of our portfolio, the FedEx Corporation Board is confident that a separation of FedEx Freight will drive continued growth and value creation.” Strategic Rationale In its recently completed assessment, FedEx concluded there are strategic opportunities that arise from separating FedEx Freight into an independent company and substantial benefits from the continuing commercial collaboration of FedEx and FedEx Freight, the release said. Through a separation, both FedEx and FedEx Freight will benefit from: Enhanced Operational Focus and Strategic Execution: Deeper operational focus, accountability, and agility to meet customer needs will better enable both companies to capture profitable growth opportunities and unlock market value. FedEx will continue executing its strategic initiatives, including DRIVE, Network 2.0, and Tricolor. Distinct and Compelling Investment Profiles: Separate public stock listings with distinct stockholder bases will enhance the value proposition for each company. Strong Balance Sheet and Capital Allocation Optionality: Each company will be well-capitalized, with flexibility to invest in profitable growth and return capital to stockholders. Maintained Commercial, Operational, and Technology Synergies: The benefits of the existing FedEx and FedEx Freight relationships will be optimized through commercial agreements between the two entities to maintain operational and service-level continuity. Ongoing collaboration will be designed to improve the value propositions of both companies by accelerating speed, improving coverage, and driving efficiencies that will lower the cost to serve. A Shared Brand: The FedEx brand represents speed, reliability, and trust. These values will extend across both businesses with the new company continuing to operate under the FedEx Freight name. FedEx Value Proposition “FedEx pioneered the express transportation industry more than 50 years ago and remains the industry leader today. In fiscal year 2024, FedEx revenue totaled $78.3 billion across its remaining business segments” the release said. “The company provides a range of rapid, reliable, time- and day-definite delivery and related supply chain technology services to more than 220 countries and territories through an integrated air-ground express network. FedEx is well-positioned to continue to deliver significant value to its stockholders through its transformation and strategic initiatives, focused on reducing the company’s cost to serve while helping customers compete and win with the world’s smartest and most efficient logistics ecosystem. The initiatives underway through DRIVE are expected to create $4 billion in cost savings by the end of fiscal year 2025, while Network 2.0 is targeted to generate savings of $2 billion by the end of fiscal year 2027, supporting enhanced profitability and driving greater flexibility and efficiency across the network. FedEx remains committed to a continued strong balance sheet at both entities while continuing to reduce capital intensity and increase capital returns.” FedEx Freight Value Proposition With revenue of $9.4 billion in fiscal 2024, FedEx Freight is the largest LTL carrier with the broadest network and fastest transit times in its industry, according to the release. The company has deep and long-standing relationships with customers who value choice, simplicity, and reliability. With a focus on safety, facility utilization, revenue quality, and operational efficiency, FedEx Freight has maintained its leading market share position while increasing operating profit by nearly 25 percent on average per year over the last five years. The business has delivered approximately 1,100 basis points of operating margin expansion over the same period. FedEx Freight is expected to benefit from a strong balance sheet that will allow it to maintain and extend its leadership position in the LTL market. Transaction Process The company’s intent is to execute the planned separation through a capital markets transaction, creating two independent publicly listed, industry-leading companies. The transaction is expected to qualify as a tax-free separation for U.S. federal income tax purposes. The company expects to commence the separation process immediately, with the intent to execute the transaction within 18 months, subject to regulatory and certain other conditions, and final approval of the FedEx Board of Directors. Goldman Sachs & Co. LLC is serving as the financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel.

New damage delays I-40 reopening in North Carolina closed by Helene

WAYNESVILLE, N.C. (AP) — The reopening of a section of Interstate 40 in western North Carolina that collapsed during Hurricane Helene’s historic flooding has been delayed after more asphalt from eastbound lanes fell this week, the state Department of Transportation said on Friday, Dec. 20. The primary road connection between North Carolina and eastern Tennessee was severed in late September as flooding in the Pigeon River gorge washed away over 1 mile (1.6 kilometers) of I-40’s eastbound lanes. Transportation crews and contractors had focused initially on reopening the westbound lanes in Haywood County to two-way traffic during the first week of January. Now the new damage will keep it closed until engineers determine the area is safe enough for drivers in such a narrow pattern in the gorge, according to a state DOT news release. “It is an unfortunate situation,” division engineer Wanda Payne said. “It’s a new hurdle that we have to overcome in order to provide a safe facility for the travelling public.” The department attributes the new slide to wet weather and freeze-thaw conditions. Contractors have been working to stabilize one lane in each direction from Harmon Den to the Tennessee line, or about 7 miles (11.3 kilometers). “We would like to open the corridor as soon as it is safe to do so,” Payne said. “We know it is a critical route for folks who live here, visit here and travel through here.” Hurricane Helene and its resulting destruction damaged roads and bridges in more than 6,900 sites, according to a state government damage and needs assessment report. The department, its contractors and partners have reopened more than 1,200 roads that were closed.

A train plowed into a tractor-trailer stopped on the tracks. The NTSB is trying to determine why

PECOS, Texas (AP) — Federal officials investigating the deadly West Texas collision between at Union Pacific train and a tractor-trailer hauling a wind turbine base said Friday they were trying to determine why the tractor-trailer was stopped on the tracks, leading to the crash that derailed the train and propelled the enormous wind turbine base into the air. Two employees of Omaha, Nebraska-based Union Pacific were killed in the collision Wednesday at a railway crossing in Pecos. The National Transportation Safety Board said it hasn’t yet determined how long the tractor-trailer was on the tracks before the collision or if anyone tried to contact the railroad through the emergency number posted at the crossing. The train was traveling at about 68 mph (109 kph) before the crew applied emergency brakes prior to impact, the NTSB said. The collision caused the wind turbine base to fly into a nearby building, NTSB said. The Chamber of Commerce building was damaged in the collision, and a Reeves County official has said that some people in the building were injured. The Pecos police chief has said all of the three injuries from the collision were minor. NTSB said that a data recorder recovered from the wreckage is being transported to its lab.

Biden signs bill that averts a government shutdown and brings a close to days of Washington upheaval

WASHINGTON (AP) — President Joe Biden signed a bill into law Saturday that averts a government shutdown, bringing a final close to days of upheaval after Congress approved a temporary funding plan just past the deadline and refused President-elect Donald Trump’s core debt demands in the package. The deal funds the government at current levels through March 14 and provides $100 billion in disaster aid and $10 billion in agricultural assistance to farmers. “This agreement represents a compromise, which means neither side got everything it wanted,” Biden said in a statement, adding that “it ensures the government can continue to operate at full capacity. That’s good news for the American people.” House Speaker Mike Johnson, R-La., had insisted lawmakers would “meet our obligations” and not allow federal operations to close. But the outcome at the end of a tumultuous week was uncertain after Trump had insisted the deal include an increase in the government’s borrowing limit. If not, he had said, then let the closures “start now.” Johnson’s revised plan was approved 366-34, and it was passed by the Senate by a 85-11 vote after midnight. By then, the White House said it had ceased shutdown preparations. “There will be no government shutdown,” said Senate Majority Leader Chuck Schumer, D-N.Y. Johnson, who had spoken to Trump after the House vote, said the compromise was “a good outcome for the country” and that the president-elect “was certainly happy about this outcome, as well.” The final product was the third attempt from Johnson, the beleaguered speaker, to achieve one of the basic requirements of the federal government — keeping it open. The difficulties raised questions about whether Johnson will be able to keep his job, in the face of angry Republican colleagues, and work alongside Trump and his billionaire ally Elon Musk, who was calling the legislative plays from afar. The House is scheduled to elect the next speaker on Jan. 3, 2025, when the new Congress convenes. Republicans will have an exceedingly narrow majority, 220-215, leaving Johnson little margin for error as he tries to win the speaker’s gavel. One House Republican, Rep. Andy Harris of Maryland, criticized Republicans for the deficit spending in the bill and said he was now “undecided” about the GOP leadership. Others are signaling unhappiness with Johnson as well. Yet Trump’s last-minute debt limit demand was almost an impossible ask, and Johnson had almost no choice but to work around that pressure. The speaker knew there wouldn’t be enough support within the slim Republican majority alone to pass any funding package because many Republican deficit hawks prefer to cut the federal government and would not allow more debt. Instead, the Republicans, who will have full control of the White House, House and Senate in the new year, with big plans for tax cuts and other priorities, are showing they must routinely rely on Democrats for the votes needed to keep up with the routine operations of governing. The federal debt stands at roughly $36 trillion, and the spike in inflation after the coronavirus pandemic has pushed up the government’s borrowing costs such that debt service next year will exceed spending on national security. The last time lawmakers raised the debt limit was June 2023. Rather than raise the limit by a dollar amount, lawmakers suspended the debt limit through Jan. 1, 2025. There is no need to raise that limit right now because the Treasury Department can begin using what it calls “extraordinary measures” to ensure that America does not default on its debts. Some estimate these accounting maneuvers could push the default deadline to the summer of 2025. But that’s what Trump wanted to avoid because an increase would be needed while he was president. GOP leaders said the debt ceiling would be debated as part of tax and border packages in the new year. Republicans made a so-called handshake agreement to raise the debt limit at that time while also cutting $2.5 trillion in spending over 10 years. It was essentially the same deal that flopped Thursday night — minus Trump’s debt demand. But it’s far smaller than the original deal Johnson struck with Democratic and Republican leaders — a 1,500-page bill that Trump and Musk rejected, forcing him to start over. It was stuffed with a long list of other bills — including much-derided pay raises for lawmakers — but also other measures with broad bipartisan support that now have a tougher path to becoming law. Trump, who has not yet been sworn into office, is showing the power but also the limits of his sway with Congress, as he intervenes and orchestrates affairs from Mar-a-Lago alongside Musk, who is heading up the new Department of Government Efficiency. Associated Press writers Kevin Freking, Stephen Groves, Mary Clare Jalonick, Darlene Superville and Bill Barrow contributed to this report.

US proposes voluntary guidelines for self-driving vehicles in waning days of Biden administration

DETROIT (AP) — In the waning days of President Joe Biden’s administration, the government’s highway safety agency is proposing voluntary safety guidelines for self-driving vehicles. But a rule from the National Highway Traffic Safety Administration putting the plan in place won’t be approved before the end of Biden’s term in January and likely will be left to whoever runs the agency under Republican Donald Trump. Tesla CEO Elon Musk, whom Trump has named to co-lead a “Department of Government Efficiency” to cut costs and regulations, has floated the idea of him helping to develop safety standards for self-driving vehicles — even though the standards would affect Tesla’s automated driving systems. At present there are no federal regulations that specifically govern autonomous vehicles, and any regulation is left to states. However, self-driving vehicles must meet broad federal safety standards that cover all passenger vehicles. Under the agency’s proposal, released on Friday, automakers and autonomous vehicle companies could enroll in a program that would require safety plans and some data reporting for autonomous vehicles operating on public roads. To apply companies would have to have independent assessments of their automated vehicle safety processes, and there would be requirements to report crashes and other problems with the vehicles. Companies would have to give NHTSA information and data on the safety of the design, development and operations of the vehicles. The agency would decide whether to accept companies into the program. But auto safety advocates say the plan falls short of needed regulation for self-driving vehicles. For instance, it doesn’t set specific performance standards set for the vehicles such as numbers and types of of sensors or whether the vehicles can see objects in low-visibility conditions, they said. “This is a big bunch of nothing,” said Missy Cummings, director of the autonomy and robotics center at George Mason University and a former safety adviser to NHTSA. “It’ll be more of a completely useless paperwork drill where the companies swear they’re doing the right thing.” Michael Brooks, executive director of the nonprofit Center for Auto Safety, said one of the few good things about the plan is that companies will have to report data on crashes and other problems. There have been reports that the Trump administration may want to scrap a NHTSA order that now requires autonomous vehicle companies to report crashes to the agency so it can collect data. A message was left Friday seeking comment from the Trump transition team on crash reporting requirements. Brooks said the incoming administration probably will want to put out its own version of the guidelines. NHTSA will seek public comment on the plan for about 60 days, then the plan would have to wind its way through the federal regulatory process, which can take months or even years. The agency said it believes the plan can accelerate learning about autonomous vehicles as well as work toward future regulations. “It is important that ADS (Automated Driving System) technology be deployed in a manner that protects the public from unreasonable safety risk while at the same time allowing for responsible development of this technology, which has the potential to advance safety,” the proposed rule says. The agency concedes that in the future, there may be a need for NHTSA to set minimum standards for self driving vehicle performance that are similar to mandatory safety standards that govern human-driven cars. But the agency says it now doesn’t have data and metrics to support those standards. The voluntary plan would help gather those, the proposal said.

Trump adds Europe to the list of US trade partners he’s threatening with tariffs

WEST PALM BEACH, Fla. (AP) — President-elect Donald Trump on Friday added the 27 countries that make up the European Union to the list of trade partners he’s threatening with tariffs — unless the group takes steps to import more U.S. goods. “I told the European Union that they must make up their tremendous deficit with the United States by the large scale purchase of our oil and gas,” Trump posted shortly after 1 a.m. on social media. “Otherwise, it is TARIFFS all the way!!!” In 2023, the United States’ trade imbalance with the EU on goods was $209 billion, according to the Census Bureau. There were $576 billion in imports from Europe and $367 billion in exports from the United States. Trump’s transition team did not respond to questions seeking greater clarity on the message, which for all its bluntness was unclear on next steps. When Trump threatened Canada and Mexico with 25% tariffs in November, the leaders of both countries spoke with him to try and resolve any tensions. But the European Union lacks a single figure who can make the purchase commitments of natural gas and oil on behalf of its 27 member states that Trump is seeking. EU Commission spokesman Olof Gill said in reaction to Trump’s post that “we are ready to discuss with President-elect Trump how we can further strengthen an already strong relationship, including by discussing our common interests in the energy sector.” Gill noted that the EU is already “committed to phasing out energy imports from Russia and diversifying our sources of supply. We’re not going to go into any details about what that might entail in the future, given that the new administration isn’t even in place yet.” Scott Lincicome, a vice president at the libertarian Cato Institute, said it was difficult to parse what Trump was trying to say relative to European trade, given that natural gas exports to the continent are already up after Russia’s 2022 invasion of Ukraine. “What we really need to chalk all of this up to is Trump laying the groundwork for future negotiations,” Lincicome said. “This is for better or worse a lot of what we’re going to see for the next four years.” While there is a $209 billion trade imbalance, a more complicated relationship lies beneath those numbers. A company such as German automaker BMW can import parts needed to assemble vehicles at its factory in South Carolina, such that the trade totals also reflect the flow of goods within European companies that employ U.S. workers. More than half of the liquified natural gas imported by the EU and the United Kingdom in 2023 came from the United States, according to the U.S. Energy Information Administration. The volume of LNG going to the EU and UK has tripled since 2021. On Tuesday, Energy Secretary Jennifer Granholm issued a statement based off a new study that unfettered exports of LNG could increase prices domestically and increase carbon emissions. Trump ran for president on the idea that increased oil and natural gas production would reduce costs for U.S. voters who were left frustrated by a 2022 inflationary spike that still lingers. Trump’s demands on Europe to buy more oil and natural gas were not especially new. He also made them during his initial term as president and in 2018 reached a deal with Jean-Claude Juncker, then-president of the European Commission, to sell more LNG to Europe. The problem with that agreement, as noted by the University of Pennsylvania’s Kleinman Center for Energy Policy, is that the U.S. “cannot force companies to send products to a specific region or country” and the EU cannot force its members to buy American fossil fuels.

Trucking associtions urge states to defer Advanced Clean Truck rules

In a strongly worded letter to a number of governors and a governor-elect, trucking industry leaders are expressing their concern regarding the Advanced Clean Trucks (ACT) rules. The group’s concern is that many in the industry stand to lose everything if the concerns are not addressed and that if President-elect Trump reverses course, despite being a strong opponent of ACT in his previous term in office, the industry could face catastrophic impacts. The letter was jointly issued and signed by Gregory Fulton, president/CEO, Colorado Motor Carriers Association; Kendra Hems, president, Trucking Association of New York; Kevin Weeks, executive director, Trucking Association of Massachusetts; Jana Jarvis, president/CEO, Oregon Trucking Association; Jennifer Blazovic, interim executive director, New Jersey Motor Truck Association; Christopher Maxwell, president/CEO, Rhode Island Trucking Association; Johnny R. Johnson, managing director, New Mexico Trucking Association and Sheri Call, president/CEO, Washington Trucking Association. The letter in full reads: “Dear Governors Polis, Healey, Murphy, Lujan Grisham, Hochul, Kotek, McKee, Inslee and Governor-Elect Ferguson: “On behalf of the trucking industry in each of your respective states, we are writing to express our collective concerns with the Advanced Clean Trucks (ACT) rules, which are set to take effect at the beginning of 2025 and 2027. “In your letter to the Truck and Engine Manufacturers Association on November 8, 2024, you cite the important role ACT plays in our states’ plans to achieve our greenhouse gas emissions reduction goals and the threat of climate change. “To be clear, we fully support these goals, and the trucking industry has worked collaboratively with government partners across the country for years to reduce the emissions from heavyduty trucks. In fact, 60 trucks today equal the output of one in 1988, and, since the implementation of clean diesel technology in 1974, pollutants have been reduced by 99 percent. These reductions are in part due to the trucking industry’s partnership with the Environmental Protection Agency (EPA) SmartWay program. The SmartWay program is a publicprivate partnership with the shared goal of reducing overall emissions and greenhouse gases, cutting fuel use, and improving freight sustainability. Our associations and many of our members voluntarily became partners in the SmartWay program and have worked closely with the EPA since the program was launched in 2004. The program has been an outstanding success as SmartWay companies have avoided emitting170 million metric tons of CO2, 2.8 million short tons of NOx, and 115,000 short tons of PM, which helps protect the environment and keep Americans healthy. “The damage that our industry will incur by implementing ACT on its current rushed timeline will curtail these critical efforts as clean diesel truck availability will become limited, keeping older, heavier polluting trucks on the road. It will also lead to the inevitable loss in jobs and businesses. Rather, we encourage your states to look at an alternative approach, similar to the SmartWay program, which is a voluntary program with a proven record of success and widely supported by the industry. We are asking that the ACT date for implementation be deferred in order to ensure that our dealers and trucking companies are not unduly harmed, and to provide for an opportunity to work together to find a solution that works toward our state’s environmental goals. “The situation on the ground has changed since ACT was adopted. The extended recovery from the COVID-19 pandemic diminished resources for manufacturers, dealers, and operators alike. The entire supply chain shifted to prioritize essential services and investments. While our industry can adapt and comply with reasonable regulations, ACT has already significantly impacted dealer operations well ahead of the official start date. “From the West Coast to the East Coast, economic and structural limitations severely limit the American trucking industry. By and large, interstate electric infrastructure is completely lacking. Take New York for example, since ACT’s passage in 2021, not a single publicly available charging station has been built for medium and heavy-duty vehicle charging statewide. And while truck operators in Washington, California, and Oregon appreciate the continued attempt to secure federal funding for an EV truck charging corridor along Interstate 5, the reality is that it will take years to complete. We need this infrastructure now. “We are also cognizant of a changing political environment. As ACT rules were initially pursued, they met a strong opponent in President Donald Trump’s administration—which passed a 2019 resolution effectively removing California’s legal authority to set vehicle emissions rules and set zero-emission vehicle mandates. By all indications, with President Trump’s history of comments and regulations regarding emissions and electric vehicles, it is within reason to believe his administration will renew his, since lapsed, 2019 resolution and ultimately pull the Clean Air Act waiver from the Environmental Protection Agency. David Heller, Senior VP of Government Affairs for the Truckload Carriers Association (TCA), has already indicated that national groups are prepared to discuss emissions regulations with a new Trump presidency. “If the Trump administration is only going to reverse course, is it worth the collateral damage of trying to implement these ill-timed and likely fatal regulations? Rather, we stand ready to have meaningful conversations on actions the industry can take today to immediately reduce emissions. “Trucks are the backbone of our nation’s economy. Communities across the country depend largely on trucks to move their goods. A census bureau report found that, in 2017, the latest year with available data, trucks transported 71.6% of all goods in the United States. This equates to $10.4 trillion. In other words, trucking is the largest single mode form of goods transportation by a longshot. When the trucking industry suffers, so to do all the sectors of the economy that rely on it. Access to critical goods, medicines, and care devices are at-risk. Major infrastructure projects and essential municipal services will be delayed. Even clean energy projects—from solar to wind—won’t move forward without trucks. None of this happens without trucks. “Right now, dealers across the country are struggling to find a way to navigate this situation. Many will not survive the economic impact of these rules. Many will shut down after being in business for generations. Many will cut jobs. Many will lose everything. “At our core, the greater American trucking industry supports the goals of ACT. We are not pushing back because we’re opposed to sustainable change. It is possible to work together to develop a commonsense solution which supports each of our states’ business and environmental goals. “Once we ensure “business-as-usual” for truck operators, dealers, and manufacturers and a true commitment to a shared approach to reducing emissions, then we can take meaningful steps towards getting more electric trucks on the road. Collectively, we welcome the opportunity to sit down to discuss this situation, but let us be clear, we are running out of time.”

Is this a good time to buy a truck? Consider these factors before putting money down

“Is this a good time to buy a truck?” It’s a question heard often in the industry, and the answer is usually the same: “Maybe … but then again, maybe not.” This is obviously not a very satisfactory answer, but the truth is that whether you’re thinking about adding another truck to a small fleet or buying your first truck and striking out as an owner-operator, there are numerous factors to take into consideration. Consider capacity and rates. When it comes to the freight market, capacity rules. Capacity, or the number of trucks available to haul freight, is the “supply” side of the supply / demand equation. The more freight that needs to be moved, the more demand there is for trucks to haul that freight. For the past couple of years, the supply of available trucks has been too high; this has kept freight rates low. In fact, rates have been so low for so long that thousands of carriers — mostly one- or two-truck outfits, but also some larger ones — to leave the industry. If current signs are correct, however, things are beginning to change. The trucking industry is about to enter a growth period in the next truck-freight cycle. The conditions for buying a truck and starting a trucking business are improving. One indicator that now might be a good time to buy a truck is that spot rates are looking better. According to DAT Freight and Analytics, which hosts the country’s largest load board, November spot rates for dry van loads were up 0.5% from a year ago on the average, while flatbed spot rates were up 2.0% over November 2023 rates. Refrigerated spot rates were down 1.7% compared with a year ago, but analysts believe they should rebound nicely once harvesting commences in the new year. A Dec. 16 report from industry analyst FTR Transportation Intelligence pointed out that consumer prices rose in November, “with food prices notably contributing to producer-level inflation.” Commentary included with the report also pointed out that mortgage rates have been declining, a good sign for the housing market and the flatbed industry. Another interesting statistic mentioned in the FTR release was Applications for New Businesses, which surged by 5.5% in November. That’s the largest increase since April of 2021 — and a good sign that confidence in the economy is growing. Interest rates could drop in the near future. If mortgage rates are falling, then interest rates on loans for trucking equipment can’t be far behind. Those rates may soon have reason to decline further. The Federal Open Market Committee, the branch of the Federal Reserve that sets the interest rate range for money that commercial banks borrow and lend their excess reserves to one another, was scheduled to meet this week, on Dec. 18. Economists predict they will cut interest rates by another .25%. Some economists are urging caution, claiming that a further cut in interest rates could spur inflation. That’s not necessarily a bad thing for trucking, however, if inflation results in more freight to haul — which will increase the demand side of the freight equation. Used truck prices are falling. While freight rates are slowly beginning to rise and there’s a possibility that interest rates might come down, used truck prices are still falling from their previous record highs. According to data received from industry analyst ACT Research, the number of used trucks sold in November increased by 24% from November 2023 levels. The average used truck sold in November was priced 4% lower than a year ago and had 1% fewer miles, PLUS, the average used truck was 2% younger in age. Inventories are still at record high levels, a good sign for potential buyers. The recent presidential election may have impacted both U.S. economic factors and used truck sales, as consumer confidence in the economy has risen. It’s possible that some November sales were made by buyers who waited for the election results before investing, but no one knows for sure. Prices for new trucks will rise. While future prices of used trucks aren’t certain, it IS certain that the prices of new trucks will be going up. That’s because government mandates for both fuel economy and emissions take effect with the 2027 models. The Environmental Protection Agency’s (EPA) new standards make manufacturers responsible for the increased usable life of each truck. OEMs will most likely respond by increasing the length of warranty coverage, charging a higher price upfront for the additional maintenance work. Because buyers are expected to “pre-buy,” stocking up on equipment before the new standards and higher costs go into effect, new truck prices for 2025 and 2026 models are expected to be higher, and some buyers will turn to the used truck market. When that happens, used truck prices should begin climbing again. Numerous factors impact the freight business. So, while freight rates are slowly rising, used truck prices are down and interest rates are improving, the window for starting a new trucking business may be easing open. The caveat, however, is that success isn’t guaranteed. Some good carriers fail in a good market, while some poorly run carriers succeed in a down market. Management, especially decision-making ability, local markets and good, old-fashioned luck are still in the equation. One other factor that will impact the trucking business in 2025 is the cost of diesel fuel. The average U.S. cost per gallon of on-road diesel is $3.49, according to the U.S. Energy Information Administration (EIA). That price is down 53 cents from a year ago and $1.33 from two years ago. The EIA projects that crude oil prices will remain stable throughout 2025, so diesel prices should remain constant. President-elect Trump made energy independence a part of his election message and is expected to increase U.S. oil production, as he did in his first term. However, fuel prices can be impacted by global events, such as the ongoing military conflicts in the Middle East and Ukraine, and by weather events. In other words, there’s no “sure-fire” prediction. It’s important for carriers to have a fuel surcharge policy — a mechanism to pass along higher costs to customers — in case diesel prices rise. An internet search will bring up tables used by other carriers, or a carrier can make their own. Carriers that deal with brokers must understand how fuel prices impact profitability and incorporate that information into load decisions. Depending on the source of information, the long drought in trucking profitability may be entering a new phase that could be very beneficial for potential business owners. As trucking conditions change, the next few months could offer the starting point some entrepreneurs have been waiting for.

House rejects Trump-backed plan on government shutdown, leaving next steps uncertain

WASHINGTON (AP) — A day before a potential government shutdown, the House resoundingly rejected President-elect Donald Trump’s new plan Thursday to fund operations and suspend the debt ceiling, as Democrats and dozens of Republicans refused to accommodate his sudden demands. In a hastily convened evening vote punctuated by angry outbursts over the self-made crisis, the lawmakers failed to reach the two-thirds threshold needed for passage — but House Speaker Mike Johnson appeared determined to reassess, before Friday’s midnight deadline. “We’re going to regroup and we will come up with another solution, so stay tuned,” Johnson said after the vote. The cobbled-together plan didn’t even get a majority, with the bill failing 174-235. The outcome proved a massive setback for Trump and his billionaire ally, Elon Musk, who rampaged against Johnson’s bipartisan compromise, which Republicans and Democrats had reached earlier to prevent a Christmastime government shutdown. It provides a preview of the turbulence ahead when Trump returns to the White House with Republican control of the House and Senate. During his first term, Trump led Republicans into the longest government shutdown in history during the 2018 Christmas season, and interrupted the holidays in 2020 by tanking a bipartisan COVID-relief bill and forcing a do-over. Hours earlier Thursday, Trump announced “SUCCESS in Washington!” in coming up with the new package which would keep government running for three more months, add $100.4 billion in disaster assistance including for hurricane-hit states, and allow more borrowing through Jan. 30, 2027. “Speaker Mike Johnson and the House have come to a very good Deal,” Trump posted. But Republicans, who had spent 24 hours largely negotiating with themselves to cut out the extras conservatives opposed and come up with the new plan, ran into a wall of resistance from Democrats, who were in no hurry to appease demands from Trump — or Musk. House Democratic Leader Hakeem Jeffries said Democrats were sticking with the original deal with Johnson and called the new one “laughable.” “It’s not a serious proposal,” Jeffries said as he walked to Democrats’ own closed-door caucus meeting. Inside, Democrats were chanting, “Hell, no!” All day, Johnson had been fighting to figure out how to meet Trump’s almost impossible demands — and keep his own job — while federal offices are being told to prepare to shutter operations. The new proposal whittled the 1,500-page bill to 116 pages and dropped a number of add-ons — notably the first pay raise for lawmakers in more than a decade, which could have allowed as much as a 3.8% bump. That drew particular scorn as Musk turned his social media army against the bill. Trump said early Thursday that Johnson will “easily remain speaker” for the next Congress if he “acts decisively and tough” in coming up with a new plan to also raise the debt limit, a stunning request just before the Christmas holidays that has put the beleaguered speaker in a bind. And if not, the president-elect warned of trouble ahead for Johnson and Republicans in Congress. “Anybody that supports a bill that doesn’t take care of the Democrat quicksand known as the debt ceiling should be primaried and disposed of as quickly as possible,” Trump told Fox News Digital. The tumultuous turn of events, coming as lawmakers were preparing to head home for the holidays, sparks a familiar reminder of what it’s like in Trump-run Washington. For Johnson, who faces his own problems ahead of a Jan. 3 House vote to remain speaker, Trump’s demands left him severely weakened, forced to abandon his word with Democrats and work into the night to broker the new approach. Trump’s allies even floated the far-fetched idea of giving Musk the speaker’s gavel, since the speaker is not required to be a member of the Congress. Rep. Marjorie Taylor Greene, R-Ga., posted she was “open” to the idea. Democrats were beside themselves, seeing this as a fitting coda after one of the most unproductive congressional sessions in modern times. “Here we are once again in chaos,” said House Democratic Whip Katherine Clark, who detailed the harm a government shutdown would cause Americans. “And what for? Because Elon Musk, an unelected man, said, ‘We’re not doing this deal, and Donald Trump followed along.’” As he left the Capitol, Senate Majority Leader Chuck Schumer said, “Now it’s time to go back to the bipartisan agreement.” The debate in the House chamber grew heated as lawmakers blamed each other for the mess. At one point, Rep. Marc Molinaro, who was presiding, slammed the speaker’s gavel with such force that it broke. The stakes couldn’t be higher. Trump was publicly turning on those who opposed him. One hardline Republican, Rep. Chip Roy of Texas, drew Trump’s ire for refusing to along with the plan. Roy in turn told his own GOP colleagues they had no self-respect for piling onto the nation’s debt. “It’s shameful!” Roy thundered, standing on the Democratic side of the aisle and pointing at his fellow Republicans. The slimmed-down package does include federal funds to rebuild Baltimore’s collapsed Key Bridge, but dropped a separate land transfer that could have paved the way for a new Washington Commanders football stadium. It abandons a long list of other bipartisan bills that had support as lawmakers in both parties try to wrap work for the year. It extends government funds through March 14. Adding an increase in the debt ceiling to what had been a bipartisan package is a show-stopper for Republicans who want to slash government and routinely vote against more borrowing. Almost three dozen Republicans voted against it. While Democrats have floated their own ideas in the past for lifting or even doing away with the debt limit caps — Sen. Elizabeth Warren had suggested as much — they appear to be in no bargaining mood to save Johnson from Trump — even before the president-elect is sworn into office. The current debt limit expires Jan. 1, 2025, and Trump wants the problem off the table before he joins the White House. Musk, in his new foray into politics, led the charge. The wealthiest man in the world used his social media platform X to amplify the unrest, and GOP lawmakers were besieged with phone calls to their offices telling them to oppose the plan. Rep. Steve Womack, an Arkansas Republican and senior appropriator, said the bipartisan bill’s collapse signaled what’s ahead in the new year, “probably be a good trailer right now for the 119th Congress.” The White House’s Office of Management and Budget had provided initial communication to agencies about possible shutdown planning last week, according to an official at the agency. Associated Press writers Jill Colvin, Stephen Groves, Farnoush Amiri and Matt Brown contributed to this story.

Biden pledges to cut US greenhouse gases by more than 60% as he exits the world stage

WASHINGTON — President Joe Biden is pledging to cut U.S. greenhouse gas emissions by more than 60% by 2035 as he fights to ensure his legacy on slowing global warming, even as President-elect Donald Trump vows to undo much of Biden’s climate work when he takes office next month. Biden said the new goal — which supersedes a previous plan to cut carbon emissions at least in half by 2030 — keeps the United States on track to achieve net-zero greenhouse gas emissions economy-wide by 2050. The U.S. is making a formal submission of the new target, known as a Nationally Determined Contribution, to the United Nations under terms of the 2015 Paris climate agreement, Biden said Thursday, Dec. 19. The new goal calls for reducing net emissions by 61% to 66% below 2005 levels in 2035. “I’m proud that my administration is carrying out the boldest climate agenda in American history,’’ Biden said in a videotaped statement. “We’re doing it by setting ambitious goals’’ such as deploying 30 gigawatts of offshore wind and conserving at least 30% of U.S. lands and waters by 2030, Biden said. His administration also has set strict new standards to cut air pollution from cars, trucks and power plants and signed into law the most significant investments in climate and clean energy in U.S. history, he said. The action by the Democratic president comes just over a month before he is set to leave office. Trump has already promised to unleash a series of executive actions that will seek to undo most or all of Biden’s climate agenda as the Republican president-elect pushes for “energy dominance” around the globe. Trump no longer dismisses climate change as a “hoax” but has pledged to dismantle what he calls Democrats’ “green new scam” in favor of boosting production of fossil fuels such as oil, natural gas and coal, the main causes of climate change. Trump is expected to withdraw the United States from the Paris climate accord, as he did during his first term, and will likely move to repeal parts of the landmark Inflation Reduction Act, especially subsidies that benefit electric vehicles and offshore wind. Biden aides tried to downplay the impact of Trump’s return to the White House, insisting that states and local governments can continue to lead on clean energy. “American climate leadership is determined by so much more than whoever sits in the Oval Office,’’ said John Podesta, Biden’s senior adviser for international climate policy. Climate leadership “happens on the ground in our cities and states, from Phoenix to Pittsburgh, from Boise to Baltimore,’’ Podesta told reporters Wednesday. “And I believe that with this new 2035 target as their North Star, leaders across America can show the world that we are still in this fight for a better future.” The U.S. Climate Alliance, a bipartisan coalition of governors that support climate action, applauded the new target and pledged to work toward it, with or without help from the White House. New York Gov. Kathy Hochul, the alliance’s co-chair, said climate-conscious governors “will carry the torch forward’’ after Biden leaves office. Hochul, a Democrat, said governors will use the new U.S. goal to “keep America on track toward a cleaner, safer future.” “By continuing to stamp out climate pollution together, we’re safeguarding public health, protecting the environment, growing the economy and creating good jobs across the U.S,” said New Mexico Gov. Michelle Lujan Grisham, another alliance co-chair. Biden, in his remarks, called the new goal “ambitious” and said it would lead to thousands of well-paying jobs, more affordable energy, cleaner air, cleaner water and a healthier environment for all Americans. “It is also creating real momentum because we’re unleashing American ingenuity and innovation. And together, we will turn this existential threat into a once-in-a-generation opportunity to transform our nation’’ for decades to come, Biden said. “I know we can do this.’’ The proposal would require sustained changes across the economy, from power generation to transportation, buildings, agriculture and industry, including significant increases in renewable energy such as wind and solar power and steep cuts in emissions from fossil fuels such as oil and coal. The U.S. pledge includes methane reductions of at least 35% from 2005 levels by 2035, Biden said. Cutting methane emissions is among the fastest ways to reduce near-term warming and is crucial to reducing greenhouse gas emissions. Debbie Weyl, U.S. acting director of the World Resources Institute, a global research organization, said the new emissions target is “at the lower bound of what the science demands,” but said it was “close to the upper bound of what is realistic if nearly every available policy lever were pulled” in the next decade. “Assertive action by states and cities will be essential to achieving this goal,’’ she said, adding that the United States needs to swiftly expand renewable energy and electric vehicles, modernize the electric grid and decarbonize heavy industry. The nonbinding but symbolically important pledge is a key part of the Paris agreement, which calls for countries to submit so-called Nationally Determined Contributions every five years. A country’s NDC, or climate goal, outlines how it plans to reduce greenhouse gas emissions to help meet the global goal of limiting temperature rise to 1.5 degrees Celsius since pre-industrial times. The Paris Agreement requires that NDCs are updated every five years with increasingly higher ambition, taking into consideration each country’s capacity. The next deadline is February 2025, although Brazil, the United Kingdom and the United Arab Emirates have already submitted their proposed NDCs. “As the world’s largest producer of oil, the largest producer and exporter of fossil gas — and the largest historical climate polluter — the United States has an outsized responsibility to press forward in the climate fight no matter the political headwinds,’’ said Manish Bapna, president and CEO of the Natural Resources Defense Council, a leading environmental group. He called the new climate goal a clear signal for governors, mayors and CEOs who support climate action to “step up” and defend climate progress. “While the incoming administration has vowed to turn its back on the world — again — the majority of Americans want climate action, and the clean energy boom is unstoppable,” Bapna said. By Matthew Daly, The Associated Press. Associated Press writer Seth Borenstein contributed to this report.

Teamsters say Amazon workers will strike at multiple facilities as union seeks labor contract

The International Brotherhood of Teamsters said workers at seven Amazon facilities will begin a strike on Thursday morning, an effort by the union to pressure the e-commerce company for a labor agreement during a key shopping period. The Teamsters say the workers, who authorized strikes in the past few days, are joining the picket line after Amazon ignored a Dec. 15 deadline the union set for contract negotiations. Amazon says it doesn’t expect an impact on its operations during what the union calls the largest strike against the company in U.S. history. The Teamsters say they represent nearly 10,000 workers at 10 Amazon facilities, a small portion of the 1.5 million people Amazon employs in its warehouses and corporate offices. At one warehouse, located in New York City’s Staten Island borough, thousands of workers who voted for the Amazon Labor Union in 2022 and have since affiliated with the Teamsters. At the other facilities, employees – including many delivery drivers – have unionized with them by demonstrating majority support but without holding government-administered elections. The strikes happening Thursday are taking place at one Amazon warehouse in San Francisco, California, and six delivery stations in southern California, New York City; Atlanta, Georgia, and Skokie, Illinois, according to the union’s announcement. Amazon workers at the other facilities are “prepared to join,” the union said. “Amazon is pushing its workers closer to the picket line by failing to show them the respect they have earned,” Teamsters General President Sean M. O’Brien said in a statement. The Seattle-based online retailer has been seeking to re-do the election that led to the union victory at the warehouse on Staten Island, which the Teamsters now represent. In the process, the company has filed a lawsuit challenging the constitutionality of the National Labor Relations Board. Meanwhile, Amazon says the delivery drivers, which the Teamsters have organized for more than a year, are not its employees. Under its business model, the drivers work for third-party business, called Delivery Service Partners, who drop off millions of packages to customers everyday. “For more than a year now, the Teamsters have continued to intentionally mislead the public – claiming that they represent ‘thousands of Amazon employees and drivers’. They don’t, and this is another attempt to push a false narrative,” Amazon spokesperson Kelly Nantel said in a statement. The Teamsters have argued Amazon essentially controls everything the drivers do and should be classified as an employer. Some U.S. labor regulators have sided with the union in filings made before the NLRB. In September, Amazon boosted pay for the drivers amid the growing pressure.

Government funding plan collapses as Trump makes new demands days before shutdown

WASHINGTON (AP) — President-elect Donald Trump abruptly rejected a bipartisan plan Wednesday to prevent a Christmastime government shutdown, instead telling House Speaker Mike Johnson and Republicans to essentially renegotiate — days before a deadline when federal funding runs out. Trump’s sudden entrance into the debate and new demands sent Congress spiraling as lawmakers are trying to wrap up work and head home for the holidays. It leaves Johnson scrambling to engineer a new plan before Friday’s deadline to keep government open. “Republicans must GET SMART and TOUGH,” Trump and Vice President-elect JD Vance said in a statement. The president-elect made an almost unrealistic proposal that combined some continuation of government funds along with a much more controversial provision to raise the nation’s debt limit — something his own party routinely rejects. “Anything else is a betrayal of our country,” they wrote. Democrats decried the GOP revolt over the stopgap measure, which would have also provided some $100 billion in disaster aid to states hammered by Hurricanes Helene and Milton and other natural disasters. “House Republicans have been ordered to shut down the government,” said House Democratic Leader Hakeem Jeffries. “And hurt the working class Americans they claim to support. You break the bipartisan agreement, you own the consequences that follow.” Already, the massive 1,500-page bill was on the verge of collapse, as hard right conservatives rejected the increased spending, egged on by Trump’s billionaire ally Elon Musk who rejected the plan almost as soon as it was released late Tuesday night. Rank-and-file lawmakers complained about the extra spending — which includes their first pay-raises in more than a decade — a shock after one of the most unproductive chaotic session in modern times. A number of Republicans were waiting for Trump to signal whether they should vote yes or no. Even the addition of much-needed disaster aid, some $100.4 billion in the aftermath of hurricanes and other natural calamities that ravaged states this year, plus $10 billion in economic assistance for farmers failed to win over the budget-slashing GOP. “This should not pass,” Musk posted on his social media site X in the wee hours of Wednesday morning. The outcome comes as no surprise for Johnson, who like other Republican House speakers before him, has been unable to convince his majority to go along with the routine needs of federal government operations, which they would prefer to slash. It all shows just how hard it will be for Republicans next year, as they seize control of the House, Senate and White House, to unify and lead the nation. And it underscores how much Johnson and the GOP leaders must depend on Trump’s blessing to see any legislative package over the finish line. “What does President Trump want Republicans to do: vote for the CR or shut down government? Absent direction, confusion reigns,” said retiring Sen. Mitt Romney, R-Utah, in a post on X. Musk, who is heading the new Department of Government Efficiency was leading the charge against it, warned that “Any member of the House or Senate who votes for this outrageous spending bill deserves to be voted out in 2 years!” It’s not an idle threat coming from Musk, the world’s richest man, who helped bankroll Trump’s victory and can easily use his America PAC to make or break political careers. Democratic Rep. Jamie Raskin of Maryland said this is the problem with “an oligarchy a handful of wealthy people run everything and everyone is supposed to live in fear of them; and their wealth becomes an instrument of coercive power over everything.” Democrats, who negotiated the final product with Johnson and Senate GOP leadership, will be expected to provide enough support to help Johnson ensure passage, as is often the case on big bills. Federal government funding runs out at midnight Friday. “The sooner Congress acts, the better,” Senate Majority Leader Chuck Schumer said. The final package extends existing government programs and services at their current operating levels for a few more months, through March 14, 2025. The stopgap measure is needed because Congress has failed to pass its annual appropriations bills to fund all the various agencies in the federal government, from the Pentagon and national security apparats, to the health, welfare, transportation and other routine domestic services. When the fiscal year ended on Sept. 30, Congress simply punted the problem by passing a temporary funding bill that expires Friday. But the inches-thick bill goes beyond routine funding and tacks on several other measures that lawmakers are trying to push through to passage before the end of this congressional session, especially as some elected officials will not be returning in the new year. Rep. Anna Paulina Luna, R-Fla., a called it essentially a junk sandwich, using a swear word. The chairman of the Freedom Caucus, Rep. Andy Harris, R-Md., said a lot of lawmakers “are a little disappointed at how this last week has worked out.” And then there’s the pay-raise. Some lawmakers expressed concern that the bill turns off a pay freeze provision that was included in the previous short-term spending measure. That change could allow a maximum pay adjustment of 3.8% or $6,600 in 2025, bringing their annual pay to $180,600, according to a Congressional Research Service report. Members of Congress last got a raise in 2009, when the salary was increased 2.8% to $174,000 annually. If member pay had not been frozen since 2009, salaries would be about $217,900. When adjusted for inflation, salaries have decreased about 31% from 2009, the research report said. “By what measure do we deserve a pay increase?” said Rep. Ralph Norman, R-S.C. Among other provisions in the package, there’s full federal funding to rebuild Baltimore’s Francis Scott Key Bridge, which collapsed when struck by a cargo ship that reported losing power just before the crash. Federal taxpayers will be reimbursed through proceeds from insurance payments and litigation. And there’s also a provision to transfer the land that is the site of the old RFK Stadium from the federal government to the District of Columbia, which could potentially lead to a new stadium for the Washington Commanders. On the health care front, the legislation seeks to extend coverage of telehealth appointments for Medicare enrollees and rein in how much money pharmacy benefits managers — the companies that negotiate how and what drugs are covered by insurance plans — make off those deals. The bill also includes provisions focused on countering China, including expanding on President Joe Biden’s executive order that seeks to restrict investments into countries that pose a national security threat to the United States. Blocking China’s high-tech ambitions is one of the few issues that enjoys broad support in Washington from both Republicans and Democrats. Associated Press writers Mary Clare Jalonick and Farnoush Amiri contributed to this report.

OOIDA reacts to EPA granting 2 CARB waiver requests

WASHINGTON — After the Environmental Protection Agency (EPA) made the announcement on Wednesday that it is granting two requests from the California Air Resources Board (CARB) for waivers to implement and enforce its Advanced Clean Cars II (ACC II) regulations for light-duty vehicles, and its “Omnibus” low-NOx regulation for heavy-duty highway and off-road vehicles and engines. Owner-Operator Independent Drivers Association President Todd Spencer was critical of the announcement by the EPA. “The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration’s EPA,” Spencer said. “Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals. EPA’s credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration’s EPA in good faith towards achievable environmental outcomes.” Under the Clean Air Act, California is afforded the ability to adopt emissions requirements independent from EPA’s regulations to meet its significant air quality challenges. The state must seek a waiver from EPA for new motor vehicle emission standards, the release stated. After reviewing the information provided by California, reviewing comments submitted by the public, and applying the limited criteria for waiver review under the Clean Air Act, EPA determined in each case that it would be appropriate to grant both waiver requests. The records, included in the waiver decisions, contain public comments on the programs’ feasibility, including costs to manufacturers and the lead time provided. EPA’s review found that opponents of the waivers did not meet their burden to show how either program is inconsistent with the Clean Air Act. “California has longstanding authority to request waivers from EPA to protect its residents from dangerous air pollution coming from mobile sources like cars and trucks,” said EPA Administrator Michael S. Regan. “Today’s actions follow through on EPA’s commitment to partner with states to reduce emissions and act on the threat of climate change.” The ACC II program is a single coordinated package of requirements for model year 2026 through 2035 and beyond for on-road light- and medium-duty engines and vehicles. The ACC II regulations include revisions to both California’s Low Emission Vehicle (LEV) and Zero Emission Vehicle (ZEV) regulations. CARB projects that the ACC II program will reduce smog and soot-causing pollutants – including fine particulate matter (PM2.5) as well as oxides of nitrogen (NOx) and hydrocarbons (HC), which are precursors of ground-level ozone – as well as reduce greenhouse gases and toxic air pollutants. CARB projects that its Low-NOx standards will protect communities from dangerous NOx pollution that mixes in the atmosphere to form ground-level ozone, commonly called “smog,” which can lead to costly and harmful health impacts such as increased illnesses, asthma attacks, lost days of work or school, and hospitalizations. EPA has taken public comment on both the ACC II and Low-NOx regulation waiver requests from state and local governments, health and environmental organizations, industry, and other stakeholders. These final decisions are based on those comments, as well as EPA’s evaluation of CARB’s requests according to Clean Air Act requirements and other information in the record, including that submitted by California. EPA maintains a webpage for information on California waivers and authorizations that sets out EPA’s administrative process for California waivers and authorization. EPA continues reviewing additional waiver requests from California and is working to ensure its decisions are durable and grounded by law.