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The two companies known for their collection and analysis of trucking industry information reported a drop in Class 8 orders. FTR reported preliminary North American Class 8 orders for November at a “disappointing 17,300 units, down 21% from October.” It was the lowest November total since 2015 and was 39% lower than the same month a year ago, FTR said. ACT Research noted that North American Class 8 orders failed to sustain momentum created in October. ACT Research Preliminary North America Class 8 net order data show the industry booked 17,500 units in November, down 20% from October, FTR said fleets remained extremely cautious heading into 2020, placing small orders and not extending orders much beyond the first quarter.  A couple OEMs reported decent order activity, but total orders fell below expectations. Class 8 orders for the past 12 months have now totaled 180,000 units. “The fall order season has gotten off to a slow start. Freight growth has stalled from the high rates of last year,” said Don Ake, vice president commercial vehicles. “This is causing fleets to be much more measured in their ordering for 2020. There still will be plenty of freight to haul, so we expect fleets will continue to be profitable and to replace older equipment. However, there won’t be a need for much additional equipment on the roads.” Ake said there was still a great deal of uncertainty in the environment which is creating apprehension in the trucking industry. Manufacturing has receded for four straight months, slowing economic growth. The trade war and tariffs are destabilizing prices and supply chains. And the tumultuous political climate just adds to an uneasy mix. The industry thrives on stability, but we are now on a rocky road.” Tim Denoyer, ACT’s vice president and senior analyst, said the freight market downturn worsened in the past month and uncertainty surrounding trade and tariffs continue to weigh on truck buyers’ psyches. “With rising pressure on carrier profits from the combined impact of lower rates and the recent, rather sudden jump in insurance premia, recent events have not developed in the industry’s favor,” Denoyer said. “While private fleets continue to add capacity on the retail end, the market is increasingly heeding for-hire price signals and the stage is being set to right-size the fleet, bringing it closer to equilibrium with the work to be done.” For more information on FTR, visit www.ftrintel.com. For more information on ACT Research visit www.actresearch.net.

COLUMBUS, Ind. — The latest release of ACT’s For-Hire Trucking Index, with October data, showed a modest Volume Index, at 52.0 (SA). October’s slower growth followed a sharply stronger 59.6 in September. The Pricing Index returned to negative territory in October, at 45.8 (SA), after recovering with volumes in September, at 52.5. The ACT For-Hire Trucking Index is a monthly survey of for-hire trucking service providers. ACT Research converts responses into diffusion indexes, where the neutral or flat level is 50. Please contact us at [email protected] if you are a for-hire executive interested in participating. In return, participants receive a detailed monthly analysis of the survey data, including volumes, freight rates, capacity, productivity and purchasing intentions, plus a complimentary copy of our Transportation Digest report. “The freight industry improvement has not been broad-based in the past few months, and we continue to see plenty of evidence that points to inventory building ahead of tariffs as a key driver of recent performance, though strong consumer trends are also helping,” said Kenny Vieth, ACT Research’s president and senior analyst. “With still-aggressive private fleet growth and a weak US manufacturing sector, choppy results will likely continue, but the past few months suggest a bottoming process is underway.” In a reflection of the imbalance between demand for freight services and the supply of Class 8 trucks competing for freight, the pricing index shows the path to rising profitability is not yet apparent. Regarding the rate index, Vieth said, “After collapsing in the second quarter, the pricing environment stabilized in the past few months. October’s lowest-since-June print suggests that pressure from capacity growth persists in the near to mid-term. That said, spikes in freight volumes, akin to what occurred in September, could perhaps lift rates on a one-off basis again, ahead of threatened tariffs in December.” The ACT Freight Forecast provides forecasts for the direction of volumes and contract rates quarterly through 2020 with three years of annual forecasts for the truckload, less-than-truckload and intermodal segments of the transportation industry. For the truckload spot market, the report provides forecasts for the next twelve months. The ACT Research Freight Forecast uses equipment capacity modeling and the firm’s economics expertise to provide unprecedented visibility for the future of freight rates, helping businesses in transportation and logistics management plan for the future with confidence. For more information, visit www.actresearch.net.

OMAHA, Neb. — Werner Enterprises, a transportation and logistics provider, has been recognized as the Enterprise Business of the Year at the 2019 AIM Tech Celebration. Werner associate Marina Brown was also named the Tech Champion of the Year. “Werner Logistics continues to show our ability to differentiate the Werner portfolio with creative and innovative solutions,” said President and Chief Executive Officer Derek Leathers. “It is especially important to acknowledge our talent and culture because without them none of these groundbreaking achievements are possible.” Leathers said Werner Logistics was named Enterprise Business of the Year for its outstanding application of technology. Other criteria included innovative product/project deployment, groundbreaking ideas or implementations or an outstanding return on technology investment. The Tech Champion of the Year Award is a special recognition conferred by the Tech Celebration award committee to an individual or group who has contributed their time and talents to AIM and other tech community initiatives to develop tech awareness and skills in others. Brown is an Application Development Manager at Werner. The AIM Institute, headquartered in Omaha, is an innovative not-for-profit that grows, connects and inspires the tech talent community through career development and educational programs. Through these efforts, the AIM Institute improves thousands of lives across the Silicon Prairie. Werner Enterprises was founded in 1956. For more information, visit www.werner.com.      

Bloomington, Ind.– FTR’s Shippers Conditions Index (SCI) for September remained unchanged from August at a 6.4 reading. All measures included in the SCI were positive with less favorable fuel pricing offsetting more favorable freight volume, capacity utilization, and logistics cost factors. FTR projects the Shippers Conditions Index to trend towards neutral through 2020 as freight demand softens and capacity utilization firms. The potential impact of a global reduction in the sulfur content of marine fuel due to IMO 2020 remains a wildcard. Todd Tranausky, vice president of rail and intermodal at FTR, commented, “Shippers’ place in the freight market remains solidly positive as the year moves into its final quarter. We expect shippers’ position in the marketplace to slowly deteriorate in 2020 as capacity tightens and freight demand recovers.” The November issue of FTR’s Shippers Update, published November 7, 2019, details the factors affecting the September Shippers Conditions Index. Also included in November is an analysis of trucking failures, the total number of carriers operating and the effect on overall capacity. The Shippers Conditions Index tracks the changes representing four major conditions in the U.S. full-load freight market. These conditions are: freight demand, freight rates, fleet capacity, and fuel price. The individual metrics are combined into a single index that tracks the market conditions that influence the shippers’ freight transport environment. A positive score represents good, optimistic conditions. A negative score represents bad, pessimistic conditions. The index tells you the industry’s health at a glance. In life, running a fever is an indication of a health problem. It may not tell you exactly what’s wrong, but it alerts you to look deeper. Similarly, a reading well below zero on the FTR Trucking Conditions Index warns you of a problem…and readings high above zero spell opportunity. Readings near zero are consistent with a neutral operating environment. Double digit readings (both up or down) are warning signs for significant operating changes.

KNOXVILLE, Tenn. — Pilot Flying J said Tuesday it was launching the One9 Fuel Network in a “Voice of the Industry” webinar attended by industry and media representatives. The One9 Network includes more than 180 fueling locations that operate under a variety of names, including Mr. Fuel, Pride, Stamart, Speedway and others. These locations have been purchased by or entered a business partnership agreement with Pilot Flying J and will market Pilot products. The One9 Network logo will be prominently displayed on fuel pumps. The One9 Network is designed to serve smaller carriers with services and benefits that are often available only to larger carriers. “We feel that smaller carriers are an underserved area of the market,” said Jimmy Haslam, CEO of Pilot Flying J. “Small carriers are already challenged with HOS changes, rising insurance costs and other industry issues.” One of the benefits the new network will offer is a line of credit to approved carriers. Smaller carriers and owner-operators often use cash or depend on credit cards for funding fuel purchases, which can be inconvenient and can result in higher fees than those paid by larger carriers. The One9 Network offers no transaction or monthly fees to approved users and will provide card and invoice consolidation, helping to streamline the accounting process. One9 Network members will also receive enhanced loyalty card benefits, including an introductory two points per gallon of fuel purchased and free coffee or fountain drink with the purchase of 50 or more gallons of diesel. The current Pilot Flying J app can be used to track loyalty points and for other purposes at One9 Network locations. The One9 Network website is currently up and running at one9fuelnetwork.com. A link is provided for a current list of fueling locations. A link is provided for applying, but currently goes to the provided phone number of 865-292-One9 (6639). A statement on the link offers “flexible credit options available.”      

BLOOMINGTON, Ind. — FTR’s Trucking Conditions Index (TCI) for September, at -2.94 was the lowest reading since May, reflecting a relatively weak environment for carriers. However, FTR does not forecast any further eroding of the TCI with an expected near-neutral measure through the first half of 2020. Details of the TCI for September are found in the November issue of FTR’s Trucking Update published October 31. The “Notes by the Dashboard Light” section analyzes trucking failures, the total number of carriers operating and the effect on overall capacity. Along with the TCI and “Notes by the Dashboard Light” the Trucking Update includes data and analysis on load volumes, the capacity environment, rates, costs and the truck driver situation. “The near-term outlook for trucking conditions remains stable with little growth expected in freight volume and no growth expected in active capacity,” said Avery Vise, vice president of trucking. “Risks to this outlook appear mostly negative, including the potential for higher diesel prices in the wake of impending changes in global maritime fuel requirements. However, the big questions are whether the industrial sector will improve or weaken further and whether consumer spending will remain a firewall against declines in overall freight volume.” The TCI tracks the changes representing five major conditions in the U.S. truck market. These conditions are: freight volumes, freight rates, fleet capacity, fuel price, and financing. The individual metrics are combined into a single index indicating the industry’s overall health. A positive score represents good, optimistic conditions. Conversely, a negative score represents bad, pessimistic conditions. Readings near zero are consistent with a neutral operating environment, and double-digit readings (up or down) suggest significant operating changes are likely. In addition to the monthly updates on trucking conditions, FTR offers a weekly Trucking Market Update in the State of Freight Podcast. The weekly update, hosted by Avery Vise, covers spot market and economic indicators and major industry developments. To listen to recent episodes and download the indicators that are covered, go to www.FTRintel.com/podcast. For other information, visit www.ftrintel.com.

OKLAHOMA CITY — Love’s Travel Stops & Country Stores has opened new locations in Calhoun, Georgia, and Elgin, South Carolina. The Calhoun location, located off Interstate 75, adds 70 jobs and 93 truck parking spaces to Gordon County. The Elgin location, located off Interstate 20, adds 99 jobs and 103 truck parking spaces to Kershaw County. “Love’s is pleased to bring two more convenient, clean and friendly locations to the southeast,” said Tom Love, founder and executive chairman of Love’s. “We’re proud to add parking spaces to areas where our customers need them, and both of these locations are conveniently located directly off the interstate.” Both locations are open 24/7. Amenities at Calhoun include more than 9,000 square feet of space, Burger King and Subway, 93 three truck parking spaces, 63 car parking spaces, four RV parking spaces, nine diesel bays, seven showers, Speedco location 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 and a dog park. Elgin amenities include more than 9,000 square feet of space, Arby’s, 103 truck parking spaces, 88 car parking spaces, two RV parking spaces, six diesel bays, eight showers, Speedco locations 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 and a dog park. In honor of the grand opening, Love’s will hosted a ribbon cutting ceremony at each location. Love’s will also donate $2,000 to Belwood Elementary School in Calhoun and $2,000 split between Lugoff-Elgin High School and Doby’s Mill Elementary School in Elgin. Love’s Travel Stops & Country Stores has 500 locations in 41 states. is the nation’s industry-leading travel stop network with more than 500 locations in 41 states. To learn more, visit https://www.loves.com/.    

WASHINGTON — The average price of a gallon of on-highway diesel rose one tenth of one cent to $3.074 for the week ending November 18, according to the Energy Information Administration of the Department of Energy. It is the highest price since the week ending September 23 when the price was $3.081. Prices from the various regions of the country were mixed. The largest increase was 2.9 cents a gallon in the Rocky Mountain region (Colorado, Utah, Wyoming, Idaho and Montana). The largest decrease was in California where the price fell 1.1 cents a gallon. The price for the week ending November 18 was 20.8 cents a gallon lower than he same week last year. For a complete list of prices by region for the past three weeks, click here.

STOCKBRIDGE, Ga. — The Used Truck Association has awarded its Marvin F. Gordon Lifetime Achievement Award to Charles Cathey for a career that has spanned more than 48 years. Just recently retired, Cathey remains an active and vital part of the UTA membership, and he continues to support and mentor the group’s younger members. He received this honor at the association’s annual convention held November 6-9 in Indian Wells, California. Starting his career in 1971 when he joined Nalley Motor Trucks of Atlanta, Cathey admits he had a lot to learn. “I had never driven a truck larger than a half-ton pickup,” he recalled. It was in this early position that Charles first developed his career-long habit of “basically working all the time.” He sold his first truck, a 1970 Chevrolet C65 for $6,900, including tax. “Today a new engine costs more than that,” he said. Over the course of his long career, Cathey also worked for Vanguard Truck Center of Atlanta and sold Mercedes-Benz cars for a time. In the early 1990s, he switched from truck sales to truck leasing, spending 11 years with Lease-Plan before he joined Black Book for the last 14 years of his career. With such a long and varied working career, Cathey admits he’s had a lot of fun and many interesting experiences. Among the most exciting of these was the time he spent working with Universal Studios on the production of their 1976 hit movie “Smokey and the Bandit.” His job was to round up most of the trucks used in the movie. “Hanging out with Burt Reynolds, Sally Field, Jerry Reed, Jackie Gleason and Dom DeLuise was more than a blast,” Cathey said. He also worked with NASCAR and the PGA Tour to provide the trucks they needed for transporting equipment to their various tour locations and races. These opportunities left him with several years of “pit passes” for the Daytona races and the chance to play one of the first rounds of golf at TPC Sawgrass. Cathey has served on the UTA board of directors, and he continues to be active in the organization, serving as a mentor and role model for a younger generation of truck professionals. He looks forward to spending his retirement years devoted to his family and the association he helped to build. The UTA’s Marvin F. Gordon Lifetime Achievement Award, presented annually since 1999, recognizes individuals who have made numerous and significant contributions to the used truck industry. Marvin F. Gordon originally conceived the idea for an organization designed solely to benefit and promote the used truck industry. The Used Truck Association is the largest association of used truck professionals and associated businesses committed to strengthening the used truck industry. For more information visit uta.org.    

HARRISBURG, Pa. — The gift of an X4 Series Model 7300 trailer refrigeration unit from Carrier Transicold is helping the Central Pennsylvania Food Bank fulfill its vision that “No One Should Be Hungry” in the 27-county region it serves. The unit, which refrigerates fruits, vegetables and other food products during transport, was provided through a grant from Carrier Transicold and its parent company, United Technologies Corp., to aid food banks in the Feeding America network. Carrier Transicold is a part of Carrier, a leading global provider of innovative heating, ventilating and air conditioning, refrigeration, fire, security and building automation technologies. “This grant from Carrier Transicold enables the food bank to enhance the flow of refrigerated and frozen foods to our partner agencies,” said Joe Arthur, executive director of the Central Pennsylvania Food Bank. “This investment in our transportation aligns perfectly with our strategies to provide better access to better food for our neighbors in need throughout Central Pennsylvania.” The refrigeration unit was installed on a 53-foot trailer by Carrier Transicold of Pennsylvania, affiliate of Penn Power Group, in Harrisburg. “Our team was very proud to be able to help the Central Pennsylvania Food Bank through this program,” said Tim Shustack, territory manager, Carrier Transicold of Pennsylvania. “The food bank does a tremendous amount of good serving individuals and families throughout a vast portion of the state, and it’s terrific that this unit can help them deliver more food, more cost effectively.” Working with a network of more than 1,000 partner agencies and programs, the Central Pennsylvania Food Bank provides meals to more than 135,000 people each month. Since 2017, the Carrier Transicold program supporting Feeding America has gifted $450,000 worth of truck and trailer refrigeration units, including installation, to various food banks. Beyond the Central Pennsylvania Food Bank, the program is helping food banks serving parts of Arkansas, Arizona, California, Connecticut, Florida, Louisiana, Michigan, Mississippi, Nevada, New York, North Carolina, Ohio, Oklahoma, South Dakota, Texas and Utah. “Carrier’s cold chain technologies help to preserve, protect and deliver nutritious perishable food throughout the global community, including in emerging countries where the demand is great,” said Jon Shaw, director, sustainability, Carrier Transicold & Refrigeration Systems. “However, there are critical needs here in the U.S., and by supporting Feeding America and its network members, we have an opportunity to help transport food to those most in need.” For more information, visit www.transicold.carrier.com. Follow Carrier on Twitter: @SmartColdChain.  8    

WASHINGTON — The Freight Transportation Services Index (TSI), which is based on the amount of freight carried by the for-hire transportation industry, fell 2.5% in September after reaching after reaching a new all-time high in August, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics’ (BTS). From September 2018 to September 2019, the index fell 0.1% compared to a rise of 7.2% from September 2017 to September 2018, the BTS said. The level of for-hire freight shipments in September measured by the Freight TSI (136.6) was 2.5% below the all-time high level of 140.1 in August 2019. BTS’ TSI records begin in 2000. The August index was revised to 140.1 from 140.6 in last month’s release, but still remains an all-time high.  Monthly numbers for January through July were revised up slightly. The Freight TSI measures the month-to-month changes in for-hire freight shipments by mode of transportation in tons and ton-miles, which are combined into one index. The index measures the output of the for-hire freight transportation industry and consists of data from for-hire trucking, rail, inland waterways, pipelines and air freight. The TSI is seasonally-adjusted to remove regular seasons from month-to-month comparisons. The Freight TSI September decrease was broad based, driven by significant declines in water, rail carloads, trucking, pipeline and air freight, while rail intermodal increased modestly. The TSI decline took place against a background of decline in other indicators. The Federal Reserve Board Industrial Production Index declined 0.4% in September reflecting decreases in mining and manufacturing and an increase in utilities. Housing starts, which are important to the trucking industry because trucks transport most of goods used to build homes, declined by 9.4%. The Institute for Supply Management Manufacturing index decreased 1.3 points to 47.8, indicating contraction in manufacturing The September decline from the record high in August, was the largest one month Freight TSI decline since January 2012, and left the index at its lowest level since February 2019. However, it remained above any level it had reached before the high of September 2018 and in all but three months prior to January 2019. In effect, the Freight TSI rose 14% from 120 in March 2016 to a level of 136.8 in September 2018 but has been essentially stable (declining by 0.1 %) since then. The 0.9% decrease in the third quarter of 2019, following two quarters of growth, and a quarter of decline in the fourth quarter of 2018. It was only the third quarterly decline since the second quarter of 2015, but it was the largest quarterly decline since the fourth quarter of 2015. The index has increased in 10 of 12 quarters since the fourth quarter of 2016. The September index was 44.1% above the April 2009 low during the most recent recession. For additional historical data, go to TSI data. Year-to-date for-hire freight shipments measured by the index were up 0.4% in September compared to the end of 2018. As for the long-term trend, for-hire freight shipments are up 12.3% in the five years from September 2014 and are up 37.1% in the 10 years from September 2009.  8

COLUMBUS, Ind. — The heavy duty truck market should anticipate an accelerating pullback in build rates, ACT Research said Tuesday, and just how much could depend on two factors: the trade war with China and the U.S. consumer. The latest release of the ACT North American Commercial Vehicle Outlook shows freight market conditions remaining at a low ebb. “They say a picture is worth a thousand words, and one of our favorites is an overlay of the 12-month moving average of Class 8 net orders and actual production data,” said Steve Tam, ACT’s vice president. “As 20 years of history show, where the order trend goes, build follows, and positively, a turn in the 12-month moving order average can be seen as starting in December, meaning Class 8 orders in 2020 should handily outperform 2019.” Tam said on the downside, ACT was noting that every trough in the order average in the past 20 years has been met with a corresponding drop in builds.” “Despite a high-side production surprise in September, large new inventories and deteriorating freight and rate conditions keep us cautious into the end of 2019,” he said. There is always a risk in forecasting the truck market and the U.S. economy broadly, in either direction, that risk remains the trade war with China, Tam said. With U.S. manufacturers and farmers struggling to compete on the tilted global playing field, the key driver of growth in the mid-term outlook is the U.S. consumer, who remains well positioned to keep the economy out of the ditch, Tam said. “With around 80% of North America’s Class 8 market and about 90% of the Classes 5-7 and trailer markets beholden to the U.S. economy, it is little wonder that ACT’s forecasts focus heavily on the North American, and primarily the U.S., economy,” Tam said. “We are seeing weaker-than-expected activity in the economies of Canada and Mexico and our US growth expectations, at 2.2%, are now below start-of-the-year levels. Looking to 2020, GDP growth in all three North American economies is anticipated to fall below 2%, with the US and Canada at 1.7% and Mexico rebounding to 1.4%.” Regarding the trade war and risk of a recession, Tam said if President Donald J. Trump doubles down from this point, a greater global downturn could ensue, with the worst outcomes spreading beyond the impact of tariffs and into a global currency war. “If Schedule D tariffs are put in place in December, the likelihood of recession rises,” he said. ACT’s North American Commercial Vehicle Outlook is a report that forecasts the future of the industry, looking at the next one to five, with the objective of giving OEMs, Tier 1 and Tier 2 suppliers, and investment firms the information needed to plan accordingly for what is to come. The report provides a complete overview of the North American markets, as well as takes a deep dive into relevant, current market activity to highlight orders, production, and backlogs, shedding light on the forecast. Information included in this report covers forecasts and current market conditions for medium and heavy-duty trucks, tractors, and trailers, the macroeconomies of the US, Canada, and Mexico, publicly-traded carrier information, oil and fuel price impacts, freight and intermodal considerations and regulatory environment impacts. ACT Research is a publisher of commercial vehicle truck, trailer and bus industry data, market analysis and forecasts for the North America and China markets. More information can be found at www.actresearch.net.

The long-forecast damper on Class 8 trucks sales hit home in October with the number of units sold dropping 18.6% as compared to September, according to Wards Intelligence. Sales in October totaled 23,001 compared to 28,258 in September. The 18.6% decline was the largest month-over-month drop since July 2016 (excluding January sales which always result in a rather huge decline from December of the previous year when carriers typically increase the purchase of new tractor for tax purposes). October’s sales were 8% down year-over-year, the largest year-over-year decline since April 2017, including January’s. Year-to-date sales are of 234,721, 15.5% higher than at the same time in 2018, but year-to-date percentages have steadily declined from the 28.6% figure in February (again, January figures are usually an anomaly). Two OEMs posted gains in October and both were significant. The International nameplate had a 28.4% increase with sales of 4,609 in October compared with 3,590 in September and Volvo had a 15.2% increase with sales of 2,248 in October compared with 1,951 in September. Month-over-month changes in retail sales are influenced by many variables,” said Steve Gilligan, vice president product marketing, Navistar, which manufactures the International brand. “OEMs, including Navistar, may see significant changes in month-over-month percentages due to the industry size, major fleet transactions which occurred, seasonal dealer retail sales activity, and even fiscal year end timing.: As an example, Gilligan said year-to-date industry volume through September was up compared to the same period last year and while Navistar’s September share was down,  Navistar year to date share remained up over the same period last year. “In October, while industry volume was down, Navistar volume and share increased and more importantly YTD share increased,” he said. “We take the overall year-to-date share growth as a positive sign.” According to Wards data, International’s year to date market share after 10 months in 2018 was 13.6%. After 10 months in 2019, International market share is 14.8%. Here is our response, attributed to Magnus Koeck, Vice President, Marketing and Brand Management, Volvo Trucks North America: For Volvo Trucks North America, the registrations month over month are more related to a timing issue when trucks are registered in the market, according to Magnus Koeck, vice president, marketing and brand management, Volvo Trucks North America. “We came from a low September to more average October,” he said. “There are trucks within our dealer network waiting to be delivered to customers and we believe we will see two strong months in November and December. December is normally the strongest retail month of the year when you see lots of registrations coming in as it’s a close-out for the year.” As would be expected with such a sharp drop from September to October, all but one nameplate showed a drop in sales as compared with the same month last year. Only Volvo with October 2019 sales of 2,248 compared with 2,215 in October 2018 showed a year-over-year increase of 1.5% As for Class 8 orders, the two companies that track and analyze the large truck market both reported North American Class 8 October orders at 22,100 units. FTR said the order level was the highest since November of 2018, but still far below a year ago.  October 2019 order activity was the weakest performance for an October since 2016.                      

SACRAMENTO — The California Trucking Association (CTA) and two California independent owner-operator truck drivers Tuesday filed an amended complaint with the U.S. Southern District Court seeking declaratory and injunctive relief against the employment test set forth in the Dynamex Operations West, Inc. v. Superior Court (Dynamex) decision, which was subsequently codified by the California Legislature in the form of Assembly Bill 5 (AB 5). AB 5 was passed by the California Legislature and signed into law on September 11 by Gov. Gavin Newsom. “AB 5 threatens the livelihood of more than 70,000 independent truckers,” said CTA CEO Shawn Yadon. “The bill wrongfully restricts their ability to provide services as owner-operators and, therefore, runs afoul of federal law.” In the suit, plaintiffs argue that the classification test in the Dynamex decision and codified by AB 5 is preempted by the supremacy and commerce clauses in the U.S. Constitution and is in direct conflict with the Federal Motor Carrier Safety Act (FMCSA) and the Federal Aviation Administration Authorization Act of 1994 (FAAAA). The CTA said the new test denies a significant segment of the trucking industry the ability to continue operating as independent owner-operators in California, forcing them to abandon $150,000 investments in clean trucks and the right to set their own schedule and become their own boss. AB 5, rather than addressing the issue of employee misclassification for all California workers, replaced a longstanding multi-factor test for determining independent contractor status with a one-size-fits-all method, consisting of highly restrictive criteria, riddled with carve-outs and exemptions for specific businesses and industries. Under the new test, independent truckers will be forced to work as employees. Meanwhile, the International Brotherhood of Teamsters reiterated its support for AB5. “For decades, companies like Lowe’s, Rio Tinto Mines and Target have enjoyed unprecedented profitability and shareholder value off the backs of the hardworking truck drivers who haul their imported cargo from our nation’s seaports to their warehouses,” said Fred Potter, vice president at large of the Teamsters, who is director of the union’s port division. “It’s no surprise that their trucking contractors are going to court to perpetuate a scheme – deemed illegal by multiple regulatory agencies and courts long before Assembly Bill 5 was introduced in the California Legislature – that has robbed the typical driver of tens of thousands of dollars a year due to their misclassification as independent contractors. The gig is up and it’s time for the drayage industry to comply with local, state, and federal laws or risk being kicked out of the ports altogether, and it’s time for the cargo owners  — America’s largest retailers  to stop doing business with recidivist lawbreakers.” Robert R. Roginson, an attorney for the CTA, said AB 5 has implications that go beyond employment classification in California. “With more than 350,000 independent owner-operators registered in the United States, the new test imposes an impermissible burden on interstate commerce under the U.S. Constitution’s commerce clause and infringes upon decades-old congressional intent to prevent states from regulating the rates, routes and services of the trucking industry,” he said. The CTA said for decades in California, more than 70,000 predominantly minority-owned truckers have built their businesses as independent owner-operators. These truckers have just recently invested hundreds of thousands of dollars in their vehicles to meet the nation’s strictest air quality laws. “Independent truckers are typically experienced drivers who have previously worked as employees and have, by choice, struck out on their own. We should not deprive them of that choice. Some of the country’s most successful trucking companies were started by entrepreneurial independent truckers,” Yadon said. “We can protect workers from misclassification without infringing upon independent truckers’ right to make a living in California.”