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US auto industry could be collateral damage in Trump’s trade wars

The Associated Press - March 2, 2025

DETROIT (AP) — President Donald Trump’s trade wars threaten to claim a casualty on the home front: the American auto industry. If the president goes ahead with 25% taxes on imports from Canada and Mexico on Tuesday, he will disrupt more than $300 billion in annual U.S. automotive trade with its two neighbors, wreck supply chains that have been operating for decades and likely push up the already-forbidding price of new cars. The tariffs pose an “existential’’ threat to North American auto production, said David Gantz, a fellow at Rice University’s Baker Institute for Public Policy. They will push up “the cost of everything that’s imported from Mexico or Canada that goes into a car assembled in the U.S.’’ Kelley Blue Book says Trump’s tariffs could raise the U.S. price of the average new car – already approaching $49,000 – by $3,000 or more. The price of some full-size pickup trucks could shoot up by $10,000. The economic pain would intensify if Canada and Mexico counterpunched with tariffs on American exports. “The economic impact of a sustained 25% tariff on Canada and Mexico would be severe, with full tit-for-tat retaliation likely to push Canada and Mexico into a recession and the U.S. to a point of stagnant growth,’’ Andrew Foran of TD Economics wrote. Foran estimates that 25% tariffs would push down auto sales by 13.6% a year in Canada and 10.6% in the United States. Trump’s tariffs would upend North American auto supply chains Since 1965 — when the U.S. and Canada eliminated tariffs on each other’s autos and auto parts — North America has turned into an integrated auto manufacturing powerhouse. Mexico was brought into the fold by a 1994 regional trade pact and another one negotiated by Trump himself in 2020. “The fact that you can tap relatively cheap steel and aluminum from Canada, that you can use the relatively low-cost labor in Mexico to assemble cars, and that you can leverage the high tech expertise and technology of the United States together, makes North America an incredibly competitive place to build automobiles,” said Brett House, a professor at Columbia University’s business school. Much of the production has moved to Mexico. Ford, for example, manufactures the small Bronco Sport SUV and Maverick pickup in Sonora in northwestern Mexico. Stellantis makes the Jeep Compass and Wagoneer S at a plant in Toluca, west of Mexico City, which has been in operation since 1968. General Motors turns out GMC and Chevrolet pickups at a plant in Silao in central Mexico. Just over half the 8 million cars and light trucks the United States imported last year came from Mexico (No. 1 at almost 3 million) and Canada (No. 4 at 1.1 million). Canada and Mexico are also the top two foreign markets for U.S.-built cars and light trucks, accounting for 53% of America’s auto exports. By taxing Canadian and Mexican imports, most of which has been entering the U.S. duty free, Trump would be lobbing an explosive into that elaborate manufacturing network. The costs and red tape would pile up A White House official, who spoke on condition of anonymity to discuss details of the tariff plan, said the taxes would apply each time goods cross the border from Mexico or Canada. That means the costs would pile up as auto components traveled from factories in the United States to Mexico or Canada and back again. So would the red tape: “It’s an administrative and bureaucratic nightmare to keep track of things,’’ Gantz said. What’s more, the 25% tariffs on Canada and Mexico would come atop higher taxes Trump intends to impose on foreign steel and aluminum starting March 12. Trump is removing exemptions on the metals tariffs he imposed in his first term — 25% on steel and 10% on aluminum — and raising the levy on aluminum to 25%. That means U.S. importers, including auto companies, would pay 50% duties on steel and aluminum from Canada and Mexico, big sources of the metals. “You’re talking about the material costs going up every time (a part) goes into one market and comes back,’’ said K. Venkatesh Prasad, senior vice president of research at the Center for Automotive Research. The higher costs would take a toll. A decade ago, Prasad said, the lowest-earning 20% of American consumers couldn’t afford a new car. Already, he said, “the bottom 40% of the population is not able to afford a new vehicle.” Ford CEO Jim Farley has complained that “so far what we’re seeing is a lot of cost and a lot of chaos.’’ General Motors CEO Mary Barra said last month at the Wolfe Research auto industry conference that GM has been “doing scenario planning and look at what at the different things we can change, we can move, we can respond.’’ She expressed confidence that company can find ways to “mitigate’’ the effect of the tariffs. Stellantis chairman John Elkann recently said he thinks the administration’s policies will boost American jobs and manufacturing. Trump’s trade war comes at an awkward time for automakers. They’re trying to shift from gasoline-powered to electric vehicles, using revenue generated from selling conventional cars to finance EV investments, Prasad said, so the tariffs could hurt sales and limit the money available for the EV transition. Why is Trump doing this? Trump insists that the hefty hit to imports from Canada and Mexico aren’t about trade; they’re about slowing the flow of undocumented immigrants and fentanyl across U.S. borders. “We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled,” Trump wrote Thursday in a post on his social media platform Truth Social. Canada wouldn’t seem to be an especially important source of fentanyl: U.S. customs agents seized just 43 pounds of fentanyl at the Canadian border last year, versus the 21,100 pounds at Mexico’s. Many analysts suspect that Trump has another goal: The 2020 U.S.-Mexico-Canada Agreement he negotiated in his first term comes up for renewal next year. Although the president characterized the USMCA as a victory and a big improvement over the 1994 pact it replaced, it failed to reduce America’s trade deficits with Canada and Mexico. In fact, they’ve gotten bigger. (In Canada’s case, that’s largely because of surging energy exports that the American Midwest and Northeast rely on.) So he is likely to seek revisions meant to ensure that more production — specifically auto production — is done in the United States, not just North America. The tariffs could give him leverage to pressure Canada and Mexico into accepting the USMCA changes he wants. In the meantime, writes TD Economics’ Foran, “the North American auto industry should still prepare itself for a prolonged period of elevated trade uncertainty and potential trade disruptions.’’

From Alaska to Maine, communities that border Canada worry US tariffs come at a personal cost

The Associated Press - March 2, 2025

DETROIT (AP) — At the U.S. Embassy in Ottawa, a quote from former President Ronald Reagan is engraved on one wall. “Let the 5,000-mile border between Canada and the United States stand as a symbol for the future,” Reagan said upon signing a 1988 free trade pact with America’s northern neighbor. “Let it forever be not a point of division but a meeting place between our great and true friends.” But a point of division is here. On Tuesday, President Donald Trump plans to impose a 25% tariff on most imported Canadian goods and a 10% tariff on Canadian oil and gas. Canada has said it will retaliate with a 25% import tax on a multitude of American products, including wine, cigarettes and shotguns. The tariffs have touched off a range of emotions along the world’s longest international border, where residents and industries are closely intertwined. Ranchers in Canada rely on American companies for farm equipment, and export cattle and hogs to U.S. meat processors. U.S. consumers enjoy thousands of gallons of Canadian maple syrup each year. Canadian dogs and cats dine on U.S.-made pet food. The trade dispute will have far-reaching spillover effects, from price increases and paperwork backlogs to longer wait times at the U.S.-Canada border for both people and products, said Laurie Trautman, director of the Border Policy Research Institute at Western Washington University. “These industries on both sides are built up out of a cross-border relationship, and disruptions will play out on both sides,” Trautman said. Even the threat of tariffs may have already caused irreparable harm, she said. Canadian Prime Minister Justin Trudeau has urged Canadians to buy Canadian products and vacation at home. The Associated Press wanted to know what residents and businesses were thinking along the border that Reagan vowed would remain unburdened by an “invisible barrier of economic suspicion and fear.” Here’s what they said: Skagway, Alaska-Whitehorse, Yukon People flocked from the boomtown of Skagway, Alaska, to Canada’s Yukon in search of riches during the Klondike gold rush of the late 1890s, following routes that Indigenous tribes long used for trade. Today, Skagway trades on its past, drawing more than 1 million cruise ship passengers a year to a historic downtown that features Klondike-themed museums. But the municipality with a population of about 1,100 still holds deep ties to the Yukon. Skagway residents frequently travel to Whitehorse, the territory’s capital, for a wider selection of groceries and shopping, dental care, veterinary services and swimming lessons. The Alaskan city’s port, meanwhile, still supports Yukon mining and is a critical hub for fuel and other essentials both communities need. “It’s a special connection,” Orion Hanson, a contractor and Skagway Assembly member, said of Whitehorse, which sits 110 miles (177 kilometers) north and has 30,000 people. “It’s really our most accessible neighbor.” Hanson is concerned about what tariffs might mean for the price of building supplies, such as lumber, concrete and steel. The cost of living in small, remote places already is high. People in Whitehorse and Skagway worry about the potential impact on community relations as well as prices. Norman Holler, who lives in Whitehorse, said the months the tariffs have loomed created “an uncomfortable feeling and resentment.” If the threat becomes reality, Holler said he would probably still visit Alaska border towns but not other parts of the United States. ““Is it rational? I don’t know, but it satisfies an emotional need not to go,” he said. – Becky Bohrer in Juneau, Alaska Point Roberts, Washington-Delta, British Columbia At the border of Washington state and British Columbia, the tension over tariffs is evident in a waterfront community that is hoping for Canadian mercy. Point Roberts is a 5-square-mile (13-square kilometer) U.S. exclave whose only land connection lies in Canada, which supplies the unincorporated nub of American soil its water and electricity. It’s a geographic oddity that requires a 20-mile drive around Canada to reach mainland Washington state. Local real estate agent Wayne Lyle, who like many of his neighbors has dual U.S.-Canadian citizenship, said some of Point Roberts’ roughly 1,000 residents are signing a petition pleading with British Columbia’s premier for an exemption to whatever retaliatory tariffs Canada may institute. “We’re basically connected to Canada. We’re about as Canadian as an American city can be,” Lyle said. “We’re unique enough that maybe we can get a break.” Lyle, who serves as the president of the Point Roberts Chamber of Commerce, said it’s too early to identify measurable effects, but he fears Canadians won’t visit the popular summer getaway destination out of spite. “We don’t want Canada to think we’re the bad guys,” Lyle said. “Please don’t take it out on us.” – Sally Ho in Seattle Billings, Montana-Alberta The 545-mile (877-kilometer) stretch of land that separates Montana from Canada includes some of the sleepiest checkpoints on the binational border. Several of the state’s border posts had fewer than 50 crossings a day on average last year. But unseen, in underground pipelines that cut through vast fields of barley, flows about $5 billion annually worth of Canadian crude oil and natural gas, most of it from Alberta. The lines traverse a continental pivot point — Montana is the only state with rivers that drain into the Pacific Ocean, Gulf of Mexico and Canada’s Hudson Bay – and deliver to refineries around Billings. “Canada is one of our major supply sources for oil across the United States,” said Dallas Scholes, the government affairs director of Houston-based refinery company Par Pacific, which runs a processing facility along the Yellowstone River. “If tariffs are imposed on the oil and gas industry, … it’s not going to be good for consumers.” People in Montana drive long distances given its sprawling size and burn lots of natural gas through harsh winters, making its residents the highest energy consumers per capita in the U.S., according to federal data. That means a 10% tax on Canadian energy resources would be felt broadly. The state’s farmers would be among those hit more severely, given the large volumes of gasoline needed to run tractors and other equipment, according to Jeffrey Michael, director of the University of Montana’s Bureau of Business and Economic Research. “It will be painful, but there are larger concerns if I were an agricultural producer in Montana,” Michael said. “I’d be worried about the trade war escalating to where my products start to get hit with reciprocal tariffs.” – Matthew Brown in Billings, Mont. Detroit-Windsor, Ontario The Detroit River is all that separates Windsor, Ontario, from Detroit. The cities are so close that Detroiters can smell the drying grain at Windsor’s Hiram Walker distillery and Windsor can hear the music drifting from Detroit’s outdoor concert venues. Manufacturing muscle makes the Ambassador Bridge, the 1.4-mile-long span connecting the two cities, the busiest international crossing in North America. According to the Michigan company that owns the bridge, $323 million worth of goods travel each day between Windsor and Detroit, the automotive capitals of their countries. The U.S., Canada and Mexico have long operated as one nation when it comes to auto manufacturing, noted Pat D’Eramo, CEO of Vaughan, Ontario-based automotive suppler Martinrea. Tariffs will cause confusion and disruption, he said. Right now, steel coils arrive at a plant in Michigan and get stamped into parts that are shipped to Martinrea in Canada. Martinrea uses the parts to build vehicle sub-assemblies that get shipped back to an automaker in Detroit. It’s unclear if parts would be taxed twice if they crossed the border multiple times, and if suppliers or their customers will have to pay for the tariffs. Also unclear is how a separate 25% levy on steel and aluminum that Trump said would take effect starting March 12 factors into the mix. D’Eramo understands the impulse to strengthen U.S. manufacturing but says the U.S. doesn’t have the capacity to make all the tooling Martinrea would need if it were to shift production there. At the end of the day, he thinks it’s sad tariffs will take up so much time, energy and resources, and only make vehicles even more expensive. “We need to be spending our time and money to get more efficient and reduce our costs so customers can reduce their costs,” he said. -Dee-Ann Durbin in Detroit Buffalo, New York-Ontario Buffalo, New York is, decidedly, a beer town. It’s also a border town. That makes for a complementary relationship. Western New York’s dozens of craft breweries rely on Canada for aluminum cans and much of the malted grain that goes into their brews. Canadians regularly cross one of the four international bridges into the region to shop, go to sporting events and sip Buffalo’s beers. Brewers and other businesses fear there may be less of that, though, if the tariffs on Canada and aluminum go into effect. Trump’s repeated comments about making the neighboring nation the 51st U.S. state already offended its citizens – so much so that Buffalo’s tourism agency paused a campaign running in Canada because of negative comments. “Obviously, having a bad taste in their mouth and booing the national anthem at sporting events is not a great thing for them coming down here and drinking our beer and hanging out in our city,” said Jeff Ware, president of Resurgence Brewing Co. The historic factory building housing Ware’s business in Buffalo is about 4 miles from the Peace Bridge border crossing, where 1.8 million cars and buses and 518,000 commercial trucks entered Buffalo from Ontario last year. It’s a terrible time to alienate customers, Canadian or American. The snowy first months of the year are hard enough for Buffalo’s breweries, Ware said. Higher prices from 25% tariffs would be yet another obstacle. Ware gets about 80% of the base malt be uses to make his specialty beers from Canada. “Labor is more expensive, energy is more expensive, all of our raw ingredients are more expensive,” he said. “It’s death by a thousand cuts.” – Carolyn Thompson in Buffalo, N.Y. Cutler, Maine-New Brunswick Commercial lobsterman John Drouin has fished for Maine’s signature seafood for more than 45 years, often in disputed waters known as the “grey zone” that straddle the U.S.-Canada border. The relationship between American and Canadian fishermen can sometimes be fraught, but harvesters on both side of the border know they depend on each other, Drouin said. Maine fishermen catch millions of pounds of lobsters every year, but much of the processing capacity for the valuable crustaceans is in Canada. If Trump follows through with the threatened tariffs next week, lobsters sent to Canada for processing would be subject to customs duties when they return to the U.S. to go to market. Drouin fears what will happen to the lobster industry if the trade dispute persists and Canada enacts a retaliatory tariff on lobsters. “As the price goes up to the consumer, there comes a point where it just doesn’t become palatable for them to purchase it,” Drouin said. Drouin, 60, fishes out of Cutler, Maine, and sees Grand Manan Island, an island in the Bay of Fundy that is part of the province of New Brunswick, when he takes his boat out. He described his business as “right smack on the Canadian border” in terms of both economics and geography. He described himself as a fan of Trump’s first term who is “not overly thrilled with what he’s been doing here.” And he said he’s concerned his home state could ultimately be hurt by the tariffs if the president isn’t mindful of border industries such as his. “The rhetoric is a bit much, what’s taking place,” Drouin said. – Patrick Whittle in Scarborough, Maine

CVSA’s International Roadcheck to focus on hours of regulation, tire inspections

Dana Guthrie - February 28, 2025

The Commercial Vehicle Safety Alliance’s (CVSA) International Roadcheck is set for May 13-15 and will focus on both driver and vehicle regulations. The International Roadcheck is a high-visibility, high-volume commercial motor vehicle and driver inspection and regulatory compliance enforcement initiative will place over three days in Canada, Mexico and the United States. “Law enforcement personnel will inspect commercial motor vehicles and drivers at weigh/inspection stations, temporary sites and mobile patrols to verify regulatory compliance,” the CVSA said in a press release. “Data from the 72 hours of International Roadcheck will be collected and the results will be released this summer.” Each year, International Roadcheck places special emphasis on a driver violation category and a vehicle violation category. During International Roadcheck, inspectors will primarily conduct the North American Standard Level I Inspection The check is a 37-step procedure that includes an examination of driver operating requirements and vehicle mechanical fitness. While all 37 steps will be completed, inspectors will also pay close attention to the driver’s record of duty status (RODS) and the vehicle’s tires. Driver Focus Area “Hours-of-service (HOS) regulations are in place to safeguard transportation safety by limiting driving hours and mandating adequate rest breaks to ensure commercial motor vehicle drivers have the opportunity to get the rest they need, thereby preventing crashes and incidents caused by fatigue,” the CVSA said. To ensure compliance with HOS regulations, drivers must accurately reflect their times and duty statuses in their RODS. RODS is a log that a commercial motor vehicle driver must maintain to record their driving activity. Failure to record, complete or retain the log, or knowingly falsifying logs or other related reports, is not only a driver out-of-service violation, it also makes the driver and/or carrier liable to prosecution. During the driver portion of an inspection, inspectors check the driver’s documents, license or commercial driver’s license, medical examiner’s certificate and skill performance certificate (if applicable), record of duty status, Drug and Alcohol Clearinghouse status (in the U.S.), seat belt usage, and alcohol and/or drug impairment. If an inspector identifies driver out-of-service violations, they place the driver out of service, restricting that driver from operating their vehicle. Vehicle Focus Area “The importance of proper tire maintenance cannot be overstated,” the CVSA said. “Tire failure while in transit is a hazard to all motorists. It is also far more expensive and time consuming for motor carriers to repair an in-transit tire failure versus proactively maintaining tire health and addressing tire issues before the vehicle is on the road.” Inspectors will check tires’ tread depth and proper inflation. They will also be on the lookout for tire damage, such as air leaks, tread separation, cuts, bulges, sidewall damage and improper repairs. During the vehicle portion of the Level I Inspection, inspectors ensure the vehicle’s brake systems, cargo securement, coupling devices, driveline/driveshaft components, driver’s seat, fuel and exhaust systems, frames, lighting devices, steering mechanisms, suspensions, tires, wheels, rims, hubs and windshield wipers are compliant with applicable regulations. Inspections of motorcoaches, passenger vans and other passenger-carrying vehicles also include the examination of emergency exits, seating, and electrical cables and systems in the engine and battery compartments. CVSA Decals A vehicle that successfully passes a Level I or V Inspection without any critical vehicle inspection item violations may receive a CVSA decal, which is valid for up to three months. If out-of-service violations are found during an inspection, as outlined in the North American Standard Out-of-Service Criteria, the vehicle is restricted from operating until all out-of-service violations have been properly addressed. Help from Inspectors As part of International Roadcheck, inspectors may also be available to answer questions about tire health and violations, and to help drivers navigate the HOS regulations in their jurisdictions. In case of inclement weather or other limiting circumstances during the three days of International Roadcheck, a jurisdiction or an inspector may opt to conduct a limited Level II Walk-Around Driver/Vehicle Inspection or Level III Driver/Credential/Administrative Inspection, instead of a Level I Inspection. Level II and III Inspections are not eligible for a CVSA decal.

Used Class 8 truck retail sale price held steady in January

Dana Guthrie - February 28, 2025

COLUMBUS, Ind – According to ACT Research, the used Class 8 average retail sale price was essentially flat m/m in January, at $57,371, or 0.1% higher m/m. “On a y/y basis, prices were 2.9% lower,” said Steve Tam, vice president at ACT Research. “Prices are expected to start transitioning to y/y growth in early 2025.” “Same dealer used Class 8 retail truck sales held reasonably steady to start the new year,” Tam said. “The 1.4% m/m decrease was stronger than the expected 9% seasonal contraction indicated by history. January is typically the weakest sales month of the year, running nearly 9% below average.”

‘Excruciatingly slow’ growth predicted for freight rates and volumes

Cliff Abbott - February 28, 2025

If the predicted freight increase in 2025 is coming, its progress seems excruciatingly slow. In January, the Cass Freight Index for Shipments fell by 5.3% from December 2024 levels and were 8.2% lower than January 2024. Shipment numbers reached their lowest level since July 2020, according to the Cass report. The Cass Index for Shipments fell 5.5% in 2023 and another 4.1% in 2024, so beginning the year with another decline isn’t good news. In fact, outside of the low levels during the COVID pandemic, the last time the shipment Index fell this low was during the 2008-09 Great Recession. Expenditures for spending dropped as well, according to the Cass report, but mostly as a function of lower shipment numbers. Cass reported that freight rates actually rose about 0.5% in January, the fourth consecutive month in which they have done so. However, the increased rates weren’t enough to offset the decline in shipments, resulting in lower overall shipping expenditures. How do we get the numbers? The Cass information is compiled from processed invoices from Cass customers and includes freight moved by truck, rail, air, pipeline and other modes, with the majority moved by truck. “While feeling like a bit of a broken record, we still think private fleet capacity additions are likely the main reason for-hire freight volumes continue to decline,” said Tim Denoyer, vice president and senior analyst at ACT Research and author of the Cass report. Manufacturers and distributors who depend on for-hire trucking took a beating in 2020 through 2022 as global pandemic shutdowns pushed freight rates to record highs. In response, some increased the size of their private fleets or even started new ones in order to keep as much of their shipping as possible in-house. Denoyer stated that the trend away from private fleets will return. “As cost economics reassert their influence, the long-term trend toward outsourcing will eventually return, but the extended 2023 and 2024 downcycle was characterized by an extraordinary post-pandemic insourcing,” he said. In other words, as the cost of hauling their own freight increases, more companies will be looking for other carriers to pick up some — or all — of the volume. Unloading freight to other carriers? That’s already happened with one major retailer. In late January, Walmart Canada announced the sale of their fleet business to Canada Cartage, who will assume deliveries to more than 400 stores located in Canada. The American Trucking Associations (ATA) reported that shipment volumes reported by its membership were unchanged in January from December levels. The ATA report, compiled from member surveys, primarily deals with contract freight. “After declines in November and December totaling 1.7%, tonnage was unchanged in January” said Bob Costello, ATA’s chief economist. “This outcome is impressive considering the massive winter storm that brought cold temperatures and significant snowfalls to large parts of the country, including those that rarely see such storms. Furthermore, the terrible wildfires in California likely also caused freight disruptions.” In addition, he noted, “softness in manufacturing and retail sales continue to be a drag on truck freight volumes as well, so the fact tonnage was flat is a positive sign.” FTR Transportation Intelligence reported that retail sales took “a steep dive” in January in the largest monthly decline since March 2023. “The seasonally adjusted 0.9% drop reflects broader economic shifts, with motor vehicle and parts sales being the primary drag,” Avery Vise, FTR’s vice president of trucking, in a recent podcast. “This decline has significant implications not just for retail, but also for freight demand and supply chain dynamics.” What else is manipulating the market? Like Costello, Vise noted that inclement January weather was disruptive to shipping, but he also cited a “pull-forward” effect on vehicle purchases as consumers bought new vehicles out of concern for threatened coming tariffs. Another factor potentially impacting freight movements is business inventories. Vise says that wholesale inventory ratios have fallen to their lowest level since June 2022, “indicating a tightening of supply chains amid shifting demand patterns.” Potential tariffs on goods manufactured in Canada and Mexico could roil the markets in coming months, since all of the major automotive builders have assembly facilities in both countries. While some manufacturing could be transferred to U.S. locations, the impact of tariffs on the automotive industry could be huge. Additionally, tariffs on lumber and other forest products produced in Canada could significantly impact the home improvement market. Spot freight rates got a small bump in January, according to DAT Freight and Analytics. National average dry van spot rates rose 0.5% over December to remain about even with January 2024 rates. Flatbed spot rates didn’t rise from December levels but were 1.2% higher than they were in January 2024. Refrigerated rates rose about six cents per mile on average and were 2.1% higher than a year ago. January’s winter storms and California wildfires probably impacted spot rates as truckers were shut down or delayed, reducing available capacity. February results aren’t yet complete, but both dry van and refrigerated spot rates appear to be falling from January levels. Tariffs are likely to be the biggest factor in freight volumes and pricing for the next few months. Some suppliers are already raising prices in anticipation of tariffs being implemented. China has already imposed retaliatory tariffs on U.S. coal, farm equipment and liquified natural gas exports, and has already restricted exports of rare earth minerals needed by U.S. manufacturing. China is responsible for 30% of ocean imports to the U.S. and 40% of rare earth imports. As deadlines loom for tariffs threatened by the Trump administration, actions by other countries could result in reduction or elimination of tariffs. Both Canada and Mexico have stepped up efforts to curtail fentanyl shipments into the U.S., for example, and Columbia changed its policy on repatriation of citizens who immigrated illegally to the U.S. As negotiations continue, the true impact of tariffs on freight volumes and rates won’t be known for months. Another potential issue is capacity. As EPA mandates for 2027 get closer, more carriers will seek to pre-buy equipment, increasing the number of trucks available to haul freight. In short, while there should be some rate relief in 2025, it’ll arrive too slowly to get excited about.

US consumers cut spending in January more drastically than at any point in the last four years

The Associated Press - February 28, 2025

WASHINGTON (AP) — U.S. consumers cut back sharply on spending last month, the most since February 2021, even as inflation declined, though stiff tariffs threatened by the White House could disrupt that progress. Americans cut their spending by 0.2% in January from the previous month, the Commerce Department said Friday, likely in part because of unseasonably cold weather. Yet the retreat may be hinting at more caution by consumers amid rising economic uncertainty. Inflation declined to 2.5% in January compared with a year earlier, down from 2.6% in December, the government said. Excluding the volatile food and energy categories, core prices dropped to 2.6%, the lowest since June, from 2.9%. One other bright spot in the report was that incomes jumped 0.9% in January from December, fueled in part by a large annual cost of living adjustment for Social Security beneficiaries. Inflation spiked in 2022 to its highest level in four decades, propelling President Donald Trump to the White House and causing the Federal Reserve to rapidly raise interest rates to tame prices. It has since fallen from a peak of 7.2%. Last month’s decline could reassure Fed officials that inflation is still slowly cooling. The Fed prefers Friday’s measure to the more widely-known consumer price index, which rose for the fourth straight month in January to 3%. Friday’s gauge calculates inflation slightly differently: For example, it puts less weight on the costs of housing and used cars. Even so, the key question preoccupying many American consumers, investors, and business executives is whether Trump’s extensive tariff proposals will push prices higher in the coming months. Trump said Thursday he will double his recently-announced tariffs on Chinese imports to 20%, and will impose 25% import taxes on Canada and Mexico next Tuesday. The three countries are the United States’ top trading partners. Trump is also calling for widespread layoffs of federal workers, which could cause hundreds of thousands of job losses and potentially lift the unemployment rate. “Increased uncertainty surrounding trade, fiscal and regulatory policy is casting a shadow over the outlook,” said Lydia Boussour, a senior economist at accounting and consulting firm EY. Americans also likely cut back on their spending after a healthy winter holiday season that saw a surge in credit card debt in December, economists noted. On a monthly basis, prices rose 0.3% in January from the previous month, matching December’s 0.3% increase. Core prices rose 0.3%, up from 0.2% in December. If sustained, January’s increases would keep inflation running above the Fed’s target. The Fed pays more attention to core prices because they provide a better read of future inflation. A big concern right now is whether tariffs will push up inflation, or slow the economy, or — in a particularly toxic combination — both. A report from the Federal Reserve’s Boston branch this month concluded that 25% tariffs on Canada and Mexico, along with Trump’s initial 10% import taxes on China, could lift core inflation by as much as 0.8 percentage points. The last time Trump imposed tariffs in 2018-19, inflation was largely unaffected — but those tariffs were on a much narrower range of goods. And the economy still slowed, prompting the Fed to cut interest rates. Worries about tariffs pushing prices higher have sent consumer confidence plunging, unwinding the modest gains that had occurred after the election. Americans are also expecting inflation to move higher in the coming months. That’s a risky trend because if consumers and businesses expect higher prices, they may act in ways to lift inflation, such as accelerating their purchases and boosting demand.

2025 freight outlook: Slow economic growth expected, but hazards remain

Cliff Abbott - February 28, 2025

The U.S. economy remained strong into the first quarter of 2025, but most economists are predicting growth to slow for the remainder of the year and through 2026. However, opinions vary regarding the new administration in Washington: It may enact policies that could either dampen growth in the Real Gross Domestic Product (RGDP) or spur further growth, depending on the information source. Even U.S. government agencies disagree on predictions, with the Congressional Budget Office forecasting RGDP growth of 1.9% by the end of 2025 and the Federal Reserve Board predicting 2.1%. In contrast, Deloitte calls for 2.4%, Goldman Sachs forecasts 2.5% and the International Monetary Fund anticipates 2.7%. All of these sources predict further slowing in 2026. Inflation is still a key concern for the Federal Reserve, which made its third cut of 2024 to the federal funds rate in December. The interest rate range is now 4.25% to 4.5%. The Federal Open Market Committee (FOMC), which sets the rates, is expected to consider another adjustment in March. What about trucking? Whether anticipated economic growth will translate to more freight — or higher rates — for the trucking industry is even harder to predict. Analysts at ACT Research predict modest growth in freight demand for 2025, at a pace of 1.8% over 2024 levels. In a January 9 webinar, analysts at FTR Transportation Intelligence forecast similar growth. Jason Miller, professor of Supply Chain Management at Michigan State University’s Eli Broad College of Business, is concerned about manufacturing startups. In a recent LinkedIn posting, Miller noted that the number of new manufacturing plants opening in the U.S. has declined; in 1988 there were more than 30,000, and in 2022 that number dropped to about 15,000. “There is little reason to think we will see a huge increase in manufacturing plants over the next few years,” Miller wrote. “Despite all the talk of reshoring over the last decade, we haven’t seen new plant openings get back to pre-GFC (Global Financial Crisis of 2007-2008) levels, let alone 1990s levels.” An increased demand for shipping would serve to push freight rates higher, but it doesn’t appear that demand will come from increased manufacturing. The other side of the supply-demand equation is capacity — and that side is problematic too. U.S. sales of new Class 8 trucks remained strong in December 2024, despite declining from the previous December. Throughout North America, more than 22,000 trucks were bought, and another 36,800 were ordered, according to ACT Research. The number of carriers has been shrinking. The Federal Motor Carrier Safety Administration has reported more authority revocations than new carrier registrations for most of the past two years. That number is nearing equilibrium. Both contract and spot rates are beginning to see upward movement, but weak manufacturing numbers combined with strong truck sales create a considerable headwind. Carriers should see some rate relief this year, but it will be a slow process. Impact of a new administration If there’s good news for the coming year, it’s in the Energy Information Administration’s (EIA’s) Short-Term Energy Outlook. The agency expects global oil production to grow faster than demand, increasing stocks. The agency forecasts U.S. crude oil production to grow to a new record of 13.5 million barrels per day, with prices for both diesel fuel and gasoline dropping. These EIA predictions were compiled prior to President Donald Trump’s inauguration on January 20. Part of Trump’s campaign platform was to increase production and achieve energy independence, and he signed executive orders that open up drilling and fracking within hours of his inauguration. Those actions won’t increase production immediately, but the news can impact market prices. Another Trump promise, to impose tariffs on U.S. trading partners, has the potential to severely disrupt the trucking industry if enacted. Threatened tariffs increases on Canada and Mexico could curtail trade, especially if those countries enact retaliatory measures. The supply of trucks, as well as their pricing, could also be impacted. All of the major Class 8 manufacturers have manufacturing facilities in Mexico, with the Volvo plant in Monterrey not yet completed. Since the OEMs sell in Canada, Mexico and South America, production for most might be shifted to ensure that trucks sold in the U.S. are manufactured here — but changes to production could add cost and delay delivery, even if tariffs are avoided. The tariffs could also impact products hauled by trucking. According to a Brookings article by Douglas A. Rediker published in December, “The consequences of Trump’s tariff threats,” the auto industry would be severely impacted. Tariffs would violate the United States-Mexico-Canada Agreement (USMCA), Rediker wrote, and greatly increase vehicle prices. “Each vehicle produced under the USMCA framework crosses the border an average of eight times during production, meaning the tariffs would be compounded at each stage,” Rediker wrote. Truck parts manufactured in China would also become more expensive, pushing up the price of new trucks and aftermarket parts for repairs. Another possible consequence of tariffs is a trade war, which would deny products to American consumers as well as decrease import freight volumes. “If we have tit-for-tat retaliation, whether it’s 25% tariff (or) 60% and we go to where we were in the 1930s, we’re going to see double-digit global GDP losses. That’s catastrophic. Everyone will pay,” Ngozi Okonjo-Iweala, director general of the World Trade Organization, said during the World Economic Forum annual meeting in Davos, Switzerland. Some of Trump’s threatened tariffs that were to have gone into effect in February were temporarily placed on hold, with both Mexico and Canada taking steps to improve border security and reviewing trade agreements. However, on February 24, Trump announced plans to forge ahead with enacting tariffs against these nations in March. Other Trump actions, such as deporting illegal immigrants, halting incentives for electric vehicles and prohibiting leases for windmill farms are among those that could impact freight markets. Most of the trucking industry was looking forward to an improving freight market in 2025. Unfortunately, with all of the factors in play, the road to recovery could well be bumpy.

Grand theft cargo: Senate subcommittee convenes to tackle freight fraud and other crimes

Dana Guthrie - February 28, 2025

WASHINGTON — The Senate Commerce Committee’s Subcommittee on Surface Transportation, Freight, Pipelines and Safety held a hearing on Thursday, Feb. 27. to address the rise of cargo theft and other crimes in the trucking industry. The hearing was convened by committee chair Senator Todd Young (R-Ind.) and focused on the rise in cargo theft, specifically on crimes within the supply chain like brokering scams, fraudulent trucking companies and train robberies by highly organized gangs. The hearing aimed to examine potential solutions, including increased coordination and enforcement by federal agencies like the Federal Motor Carrier Safety Administration (FMSCA) and the Department of Homeland Security to stop theft and fraud. “We are addressing an urgent and growing concern of cargo theft,” Young said. According to Young, in the fall, PFL Logistics, a third-party logistics provider in Indiana, lost a $60,000 shipment when its cargo was stolen by a previously trusted carrier. “For a small company, a loss like this absolutely devastating,” Young said. “One that employees and customers ultimately bear. It drives inflation at a time when inflation is top of mind of our constituents.” Young noted that PFL is just one of many companies that have fallen victim to cargo theft across the county and that the trucking industry is asking congress to take action. “They want us to to work together with their industry to address this threat and come up with some concrete solutions,” Young said. Young noted that the rise in e-commerce has brought additional threats and challenges. He also pointed out that the FMCSA does not have adequate protections in place to identify fraudulent actors or remove them from its system. “Nor does it have the authority to assess civil penalties for violations of its safety or commercial regulations,” Young said. Young emphasized the need to modernize safeguards. “I’m hopeful that, together, we can begin the process of establishing and implementing those safeguard reforms today,” Young said. Trump Administration Setting Freight Safety Back Sen. Gary Peters also emphasized the need for greater safety and the prevention of cargo theft, but believes that the Trump Administration is taking steps to eliminate safety regulations that are already in place. “Since taking office, instead of increasing federal law enforcement capacity and effectiveness, which I believe is the first step we need to take to address this criminal trend like cargo theft, and fraud,” Peters said. “President Trump has prioritized politicizing and gutting federal law enforcement.” Peters noted that Trump fired much of the Federal Bureau of Investigation senior leadership including the head of the criminal, cyber, response and services branch which is responsible for criminal and cyber investigations world wide. He also fired the heads of multiple critical FBI officers and dozens of prosecutors across the country for working on Jan. 6 cases. Trump also implemented a hiring freeze preventing agencies from recruiting new talent. “You are asking for more law enforcement, but there is a freeze on new talent coming into law enforcement,” Peters said. The subcommittee heard from a variety of witnesses at the hearing including, chief Will Johnson, chief special agent, BNSF Railway Police Department and second vice president of International Association of Chiefs of Police of Fort Worth, Texas; Robert Howell, chief supply chain officer, Academy Sports and Outdoors of Katy, Texas and Adam Blanchard, principal and CEO, Tanager Logistics and Double Diamond Transport of San Antonio, Texas. Owner-Operator Independent Drivers Association OOIDA executive vice president Lewie Pugh also testified during the hearing. “OOIDA’s mission is to promote and protect the interests of our members and any issues that impact their safety and success which increasing includes freight fraud,” Pugh said. Freight Fraud Easy to Commit “Cargo theft and freight fraud are so incredibly easy to commit it doesn’t even take a savvy or experienced criminal to pull it off,” Pugh said. “Everyone from shippers, receivers, motor carriers and brokers are vulnerable targets. Often, the perpetrators of these crimes are based internationally far beyond the reach of American enforcement agencies. While there are certainly cases of physical theft occurring within our industry, most of the problems small business truckers face involves being scammed by fraudsters or swindled by unscrupulous brokers.” According to Pugh, these illegal activities exploded in recent years, increasing by 600% over the course of just 5 months between 2022 and 20231. Estimates indicate these crimes costs the industry roughly $1 billion annually. Factors Contributing to Freight Fraud “There are several factors contributing this recent explosion in freight fraud,” Pugh said. “Weak freight rates, overcapacity, increased competition, leading to greater susceptibility to fraud among small trucking businesses. Advanced technology, coupled with a lack of federal oversight and enforcement of regulated entities has also created an environment where fraudulent actors can thrive.” Most small-business truckers – who are not contracted with a larger motor carrier – acquire loads from brokers on platforms called load boards. As shippers have become less likely to work directly with small carriers, reliance on load boards has increased dramatically over the years among owner-operators. “Unfortunately, small trucking businesses are both the most vulnerable to fraud and least likely to be able to recover from it,” Pugh said. “Most commonly, motor carriers are held responsible for the loss of the cargo due to fraud. With costs ranging from tens of thousands to hundreds of thousands of dollar per incident.” According to Pugh, several OOIDA members have lost their businesses after falling prey to a single case of freight fraud. One Scam to Lose it All “This is not hyperbole,” Pugh said. “It only takes one scam to completely ruin a small trucking business. “Fraudulent activities include double brokering, criminals posing as legitimate brokers, rerouting schemes, identity theft, purchase of authority by fraudsters and more. Double Brokering Double Brokering is when criminals pose as motor carriers to acquire loads from brokers, then pose as brokers looking for truckers to complete hauls. When the freight is delivered, the legitimate broker issues a payment to the fraudulent actor, and the trucker who actually hauled the cargo is left high and dry. It is entirely possible brokers are unaware any fraudulent activity has occurred in these cases, but there are instances of fake motor carriers working closely with unscrupulous brokers to take advantage of small trucking businesses via double brokering. Another scam involves the theft of a broker’s identity to arrange the shipment of a load with a motor carrier. The trucker delivers the load and submits the appropriate paperwork to the fake broker, who then forwards the documents to the real broker, collects the payment and disappears. Making matters worse, small trucking businesses are also forced to absorb all the additional costs associated with moving the freight, including fuel, tolls maintenance and other expenses. Reroute Schemes Some motor carriers have also fallen victim to reroute schemes. While hauling a fraudulently brokered load, the scammers contact the unknowing trucker with a new delivery address, often offering extra payment for covering the additional miles. Once delivered, the load is transferred to another truck and stolen, leaving the carrier responsible for the lost freight. Identity Theft In other cases, a motor carrier’s identity is stolen and used to secure a load from a broker. The fraudster then delivers the load to a warehouse, where it is transferred and stolen. The legitimate motor carrier, whose authority was compromised, is ultimately held liable for the value of the stolen load. It is not particularly difficult to accomplish this type of scam. Every motor carrier is assigned a USDOT Number, which, along with addresses and phone numbers, can be easily viewed on FMCSA’s website. As a result, it is incredibly easy to take that information, hijack the authority of a legitimate motor carrier, acquire loads, and receive payments. Fraudsters can also assess the safety records of motor carriers to choose victims that are most likely to be selected by brokers. No Help for the Victims “Truckers are doing everything they can to protect themselves, but they are limited in their capabilities,” Pugh said. “For example, an OOIDA member doesn’t have the resources to identify the sophisticated scammers. They lack the authority to ensure brokers are complying with existing transparency regulations. While there are systems in place that can combat fraud, the federal government is struggling to provide support to shippers, motor carriers and brokers as needed.” What Should the Government Do? Pugh said the first step that should be taken is legislation by congress. “Passing Senate Bill 337 which is bipartisan legislation introduced by Senators Fischer and Duckworth,” Pugh said. “This bill, which is supported by a wide variety of industry stake holders gives the Federal Motor Carrier Safety Administration the authority to level civil penalties against fraudsters. It also requires brokers to register with a physical address. This is something carriers have had to do for years. It’s a minor change that can have a major impact in protecting motor carriers.” Pugh said that congress should also use its oversight to ensure existing programs can help prevent fraud. “This includes improving FMCSA’s National Consumer Complaint Database (NCCDB), which OOIDA has advocated for for years,” Pugh said. Regulatory Efforts Pugh noted that congress must also support regulatory efforts that are currently underway, such as insurance compliance, broker bond requirements and by creating a new registration system. “Additionally, if FMCSA fails to produce a final rule that ensure compliance with existing broker transparency regulations, congress must compel the agency to do so,” Pugh said. How Quickly Fraud Can Happen At this point in the hearing, Pugh had been speaking for approximately 5 minutes. “Since I began my testimony, a small business trucker has likely fallen prey to fraud that could jeopardize their entire business,” Pugh said. “That’s how commonplace freight fraud is becoming in trucking. We believe we have identified several critical steps congress and FMCSA must take to weed out fraudulent actors.” Young thanked Pugh for his testimony and perspective on the issues of fraud in trucking. Primary Target for Fraud Young noted that truckload freight is the primary target for fraud. “98% of respondents identified truckload freight as the most vulnerable mode,” Young said. “This subcommittee oversees the FMCSA and I’d like to better understand how bad actors are acquiring USDOT numbers, MC numbers and other business identifiers to carry out their illicit schemes under the guise of legitimacy.” FMCSA Lacking Earlier in the meeting Blanchard testified that a bad actor had posed as his own company, Tanager Logistics, to steal shipments. Young inquired as to how this could happen so easily. “They are able to do this now through a whole multitude of ways,” Blanchard said. “We have experienced everything…from spoofing our emails and otherwise representing themselves on behalf of out company. There are instances out there now where individuals are out there purchasing MC and DOT numbers on the black market. That is a major issue that we have to address and the FMCSA must do a more efficient job, in our opinion, of ensuring that they go through those companies that are authorized to transport freight in the United States and remove those that are illegitimate.” Chief Johnson noted that their have been instances of companies that are going out of business that have auctioned off their numbers just as they do pieces of equipment. “Individuals could buy this numbers through a business liquidation process and then already have an established footprint and assume illicit operations under a previous legitimate (business),” Johnson said. When Blanchard informed FMCSA about the illicit use of his company, he was told that unless a third party was out these using their MC or DOT number, that FMCSA did not have the ability to investigate this other company that was representing us. “We provided them with the information we knew at the time,” Blanchard said. “The individual that was behind the other Tanager Logistics, from our investigation, turned out to be somebody from Africa. We also did some investigation internally and through our attorneys that determined that the address that was listed in the SAFER website provided by the FMCSA was an address in Ohio of a woman that had no affiliation to logistics whatsoever.” What Should Congress do to Equip FMCSA? Blanchard said that FMCSA should be better equipped regarding its cyber capabilities. “They are falling further and further behind these criminal organizations,” Blanchard said. “We had an instance where our profile with FMCSA was hacked and somebody changed our address and phone number in an attempt to engage in another fraud…the FMCSA needs to be the group that quarterbacks a unified federal group of agencies and law enforcement groups in order to address these issues, in order to create a database and a repository of data so that it can be coordinated appropriately amongst not only federal law enforcement, but state law enforcement and increase the cyber security that they have to prevent these kinds of things from happening.” To watch the entire hearing click here.

Trump sets March 21 deadline for NYC to end congestion pricing; Hochul responds, ‘We will not be steamrolled’

The Associated Press - February 27, 2025

NEW YORK (AP) — President Donald Trump’s administration has given New York until next month to comply with its order to halt Manhattan’s new congestion pricing system, but state officials on Wednesday vowed to continue the tolling program, which is meant to thin traffic and pump new revenue into the nation’s busiest transit system. The Federal Highway Administration said the $9 toll on most vehicles entering Manhattan neighborhoods south of Central Park must end by March 21, according to a letter provided to The Associated Press by the U.S. Department of Transportation on Wednesday. The letter was sent to New York officials on Feb. 20, the day after Transportation Secretary Sean Duffy announced he’d rescinded federal approval of the toll, calling it a “slap in the face to working class Americans and small business owners.” Gov. Kathy Hochul on Wednesday promised an “orderly resistance” to the federal decree, which called for an “orderly termination” to congestion pricing. Similar toll programs have long existed in other cities, including London, Stockholm, Milan and Singapore, but have never been tried before in the U.S. “We will not be steamrolled here in New York,” the Democratic governor vowed at a board meeting of the Metropolitan Transportation Authority, the state agency that’s overseeing the new toll. “We’re in this fight together, and I’m in this as long as it takes.” Hochul met privately with Trump at the White House on Friday, presenting him a booklet her press secretary, Avi Small, said showed the early success of congestion pricing. The MTA has filed suit in Manhattan federal court, arguing the Trump administration lacks legal authority to revoke approval for the program, which was granted under Democratic President Joe Biden’s administration. “The federal government cannot unilaterally terminate the program,” Janno Lieber, chair and CEO of the MTA, said on an appearance on NY1 last week. “Once it’s begun, there’s all kinds of case law in federal courts about the procedures that the federal government has to use to take away an approval to reverse a decision. None of this complies with that, and that’s why we are so comfortable that this is a strong case, and we’re going to win.” Lieber argued Wednesday that the tolling plan, which launched on Jan. 5, is working as intended. He said there are 60,000 fewer vehicles a day driving into the tolling zone — a 10% reduction — while travel times are noticeably faster on tunnels and bridges into Manhattan as well as its busy cross streets. Pedestrian traffic is up around 4% and economic activity appears to be up, with Broadway theater attendance, restaurant reservations and retail sales in the tolling zone seeing increases over a similar period in 2024, Lieber said. He said the MTA is on track to generate roughly $500 million from the toll program by the end of the year, allowing it to move forward with planned subway, bus and transit improvements. The MTA earned nearly $50 million in roughly the first month of the toll’s operation, according to a report the agency released Monday. “We’re not going back, no matter what the rhetoric from other parts of the East Coast is,” Lieber said. “We tried gridlock for 50 years, and it was bad for our economy, it was bad for our health and it was bad for New Yorkers’ quality of life.” Associated Press writer Anthony Izaguirre in Albany contributed to this story.

Kenworth names council members for 2025

Dana Guthrie - February 27, 2025

KIRKLAND, Wash.— Kenworth Truck Company is naming the members appointed to its 2025 Dealer, Parts and Service Councils. 2025 Kenworth Dealer Council “The Kenworth Dealer Council features executives representing 490 Kenworth dealerships in the United States and Canada from eight different dealer groups who work in partnership with Kenworth to provide leading-edge customer support and strive to maximize uptime for fleets and truck operators,” Kenworth said in a media release. The 2025 Kenworth Dealer Council members include: Chairman – Mike Levering, Truckworx Kenworth (Birmingham, Ala.) Bill Kozek, CSM Companies (Madison, Wis.) Kyle Treadway, Kenworth Sales Company (Salt Lake City, Utah) Jared White, MHC Kenworth (Leawood, Kan/) Andrew Johnston, Inland Kenworth (Burnaby, B.C.) Carl Herzog, CIT Trucks (Normal, Ill.) Scott Nichols, Palmer Group (Indianapolis, Ind.) Additionally, Jodie Teuton of Kenworth of Louisiana (Gray, Louisiana) serves as the Kenworth line representative for the American Truck Dealers (ATD). 2025 Kenworth Parts Council “The 2025 Kenworth Parts Council is comprised of leading parts directors and managers from Kenworth dealerships in the United States and Canada focused on further enhancing parts quality and customer support for truck operators and fleets,” Kenworth said. “PACCAR Parts supports Kenworth dealerships in efforts to expedite repairs and increase customer uptime by helping to maintain industry-leading parts availability throughout the Kenworth dealer network, and by providing access to parts in 24 hours or less through its network of distribution centers strategically located throughout North America.” The 2025 Kenworth Parts Council members include: National Chair – Eric Bontrager, CSM Companies (Windsor, Wis.) Barry Collens, Inland Kenworth (Tolleson, Ariz.) Jacob Herzog, CIT Trucks (Mokena, Ill.) Scott Lockhart, MHC Kenworth (Denver, Colo.) Jeff Weaver, Truckworx Kenworth (Birmingham, Ala.) Teague Miller, Kenworth of Pennsylvania (Carlisle, Penn.) Jason Wheeler, Inland Kenworth (Burnaby, B.C) Sébastien Letendre, Kenworth Maska (La Présentation, Quebec) Carl Herzog, CIT Trucks (Normal, Ill.) “Kenworth dealers offer genuine Kenworth proprietary parts and provide all-makes parts and service (partsandservice.kenworth.com) through 490 locations in the United States and Canada,” the company said. “Kenworth dealers also offer TRP parts, which are reliable aftermarket products designed and tested to exceed customers’ expectations for quality and value. Regardless of the age, make or application of the vehicle, TRP is the all-makes answer.” For more information, visit www.TRPParts.com. 2025 Kenworth Service Council “The 2025 Kenworth Service Council is led by Kenworth service managers in the United States and Canada who serve on the council and help promote service and product enhancements for The World’s Best trucks,” Kenworth said. Members of the 2025 Kenworth Service Council include: Chair – Jeff Minter, CSM Companies (Windsor, Wis.) Brett Duarte, Papé Kenworth (Federal Way, Washington) Dan Mills, Sioux Falls Kenworth (Sioux Falls, S.D.) Dan Ray, Kenworth Northeast (Rochester, N.Y) Jerome Wasilieff, Inland Kenworth (Burnaby, British Columbia) Jude Becnel, Kenworth of Louisiana (Gray, La.) Jason Welborn CIT Kenworth (Normal, Ill.) Zach Newton, MHC Kenworth (Leawood, Kan.) Richard Williamson, Truckworx Kenworth (Birmingham, Ala.) Ryan Dicken, GreatWest Kenworth (Calgary, Alberta) Sean Warren, Kenworth Truck Centres (Toronto, Ontario) Tony Wiser, Kenworth of Pennsylvania (Carlisle, Penn.) Kenworth Dealer Council representatives Levering and Kozek also serve on this council. “The council works in partnership with Kenworth to support The World’s Best customer experience throughout the Kenworth dealer network in the United States and Canada, primarily through the Kenworth PremierCare program,” Kenworth said.

Truckstop and Bloomberg survey reveals surprising shift in carrier sentiment

Dana Guthrie - February 27, 2025

BOISE, Idaho — According to the latest Bloomberg | Truckstop survey, there is increased optimism for carriers driven by the less challenging conditions in Q4 of last year. “While many carriers feel that rates and demand have yet to reach optimal levels, there is growing optimism about the outlook,” said Lee Klaskow, senior freight transportation and logistics analyst at Bloomberg Intelligence. “We believe the trucking cycle has turned, which should drive better spot and contractual rates, as well as robust earnings for carriers this year.” Owner-Operators and Fleets Polled The Bloomberg | Truckstop Q4 2024 Truckload survey shows: Demand outlook showing signs of improvement: Owner-operators are increasingly optimistic about the future following improved spot market conditions in Q4. Among respondents, 55% expect volume to increase over the next 3-6 months, marking a 15-point rise from Q3. Many carriers experienced a less challenging spot truckload market in Q4. Spot rates seeing some reprieve: Sentiment around rates has improved over the past three months, according to our Q4 survey, with 51% of respondents expecting an increase in the next 3-6 months—a 22-point jump. This optimism is fueled by better market conditions. Truckstop data shows spot rates rose 1.5% in Q4 and 7.8% year-over-year. Additionally, 13% of respondents reported rate growth compared to the previous year, a five-point increase from the Q3 survey. Carriers still unclear about the path ahead: Trucker sentiment about the economy has improved, with 59% of respondents believing the U.S. is in or near a recession—down from 80% in Q3 2024. Despite this more optimistic outlook, uncertainty remains. 44% of respondents are unsure about their professional future in the next six months. That is a 9-point increase from the previous quarter. Further market tightening could help boost spot rates and encourage truckers to stay in the industry. Truckstop’s Market Demand Index increased 28% on average in 4Q24 from 4Q23, the fourth consecutive quarter of year-over-year gains. Demand Stabilizing “Our latest survey results indicate that demand is stabilizing, and conditions are becoming less challenging, leading to increased optimism among carriers,” said Kendra Tucker, CEO, Truckstop. “Truckstop is dedicated to equipping carriers with the tools they need to operate more efficiently and profitably, offering innovative solutions that helps their businesses grow and adapt to industry changes.” The survey of owner-operators and small fleets provides timely channel checks into the health of the spot market. The sample size was 176, consisting of dry-van, flatbed, temperature-controlled and specialized/diversified, hot-shot and step-deck carriers. Of the respondents, 53% operate just one tractor.

The voice of truckload: TCA looks ahead to legislative goals under Trump 2.0

Dwain Hebda - February 27, 2025

The return of former President Donald Trump to office in January touched off a flurry of executive orders on everything from government spending to the military to securing the U.S. southern border. Recently we had a chance to visit with David Heller, senior vice president of safety and government affairs for the Truckload Carriers Association (TCA) about what Trump’s second term in the White House could mean for trucking. While Trump’s actions so far, at least at the time of this writing, are not directly aimed at the freight industry, Heller says he looks forward to a good working relationship with the White House — and Congress in general — over the next four years. ‘A friend to trucking’ The previous Trump administration was often viewed as favorable toward the industry. “It’s no surprise that President Trump is friendly to trucking. He understands the business, and he’s involved in the business,” Heller said. “Quite frankly, his personal business outside of being president of the United States has relied on trucking for all of its existence, just as any business in this country does. “Judging by his presence in his last administration, I think we can expect an ear,” he continued. “That doesn’t necessarily mean it’s going to be a good ear or a bad ear, but he has control over the House, and he has control of the Senate through the Republican Party.” Even though most of the executive orders signed during Trump’s first couple of weeks in the Oval Office don’t specifically address the priorities of the trucking industry, Heller believes some do apply to trucking by extension. The meatier issues that will directly affect trucking will likely come later, he says. “I think you’ll see it as a ‘next wave,’” he said of the trucking industry’s legislative agenda. “When you start looking at some of the infrastructure aspects of what President Trump has signed, there have been side impacts.” Environmental issues One executive order that will ultimately benefit trucking is Trump’s cancellation of environmental mandates requiring vehicle manufacturers to phase out the use of diesel engines for electric motors in both passenger and commercial vehicles, Heller noted. “We, as an industry, were faced with rules coming out of the Environmental Protection Agency that we had to start adopting electric vehicles for our fleets by as soon as 2030,” he said. That short of a timeline is unrealistic, according to Heller. “Right now, the equipment just doesn’t work for us. It doesn’t hold water to its diesel-powered counterpart,” he said. “How are we supposed to effectively deliver freight productively in a manner which we do today with equipment that doesn’t work as well as the equipment that we’re using? “I think everybody wants to improve upon the environment, but we have to do so in a way in which we can accomplish it, not ways that are pipe dreams and unicorns,” he continued. “Let’s really have some common-sense discussions on what really makes the most sense for our industry so that we can keep America in toilet paper.” Infrastructure improvements As for other industry priorities, Heller says that continuing the work on the nation’s infrastructure is of primary importance. Over the four years of the Biden administration, $1.2 trillion was spent on the effort. While this was a good start, Heller says, the work must continue. “Not enough has been done,” he said. “For instance, the one thing that was left out of the last infrastructure bill was truck parking.” The availability of safe, secure parking for commercial drivers has long been near the top of most lists of trucking industry issues for years. “We as an industry desperately need more spaces for our drivers to park while they’re out on the roads, specifically in the truckload segment of the industry,” Heller said. “This is not a secret,” he said. “The fact that there is one parking spot for every 11 trucks on the road today shows a tremendous need. These drivers should have an adequate amount of safe, secure places to park their vehicles so that they can get the rest that they need as required by hours-of-service regulations.” The Biden administration’s Bipartisan Infrastructure Law is set to expire in September 2026. “That means it’s going to be within this Congress’ purview to start laying the groundwork for what the next infrastructure bill,” Heller noted. Rolling back regulations Heller views Trump’s continued rollback of regulations as a good sign of things to come that will help American industry in general — and the trucking industry specifically. “We can’t forget the regulatory ‘noise’ the Trump administration is going be responsible for overseeing, things like speed limiters, automatic emergency braking,” he said. “These are issues that are kind of hanging, waiting to see what comes down the pike. “At the very least, we want to see what could effectively come in on the future of rulemaking on the testing of autonomous vehicles,” he continued. In effect, Heller says, the previous Trump administration removed the regulatory burden of two regulations for every one issued — a trend he expects will continue in version 2.0 of the Trump administration. “Certainly not all regulations are bad,” he said. “There are some good and needed regulations out there. But our expectation is that (the administration) will indeed take up the mantle on some of these things.” Protecting the independent contractor model Heller also expects the federal government to become more involved with protecting the process by which many Americans enter the trucking industry — a proposition that has become more complicated as various state laws call into question the definition of independent contractors. Certain laws in states like California, as well as rules and regulations that came from the Department of Labor during the Biden administration effectively instituted an economic realities test for determining whether an independent contractor is an independent contractor or not. “We expect the president to support that American Dream of becoming your own business owner. That’s what the (independent contractor) business model represents. It’s been around for as long as trucking has,” Heller said. “Most of your major truckload carriers that operate today were founded based on that independent contractor business model: Go buy one truck, start hauling freight and grow your fleet from that point,” he noted. “That’s ‘Business 101,’ and we certainly expect the president to ease that burden in bringing the independent contractor model back into the fold.” No matter what Trump 2.0 brings to the table, TCA will continue to be the “voice of truckload” on Capitol Hill, working to ensure the success of its members and the trucking industry as a whole. This story was published in the March/April 2025 edition of Truckload Authority magazine, the official publication of the Truckload Carriers Association (TCA).

Number of Americans filing for unemployment benefits rises to highest level in 3 months

The Associated Press - February 27, 2025

Applications for U.S. jobless benefits rose to a three-month high last week but remained within the same healthy range of the past three years. The number of Americans filing for jobless benefits rose by 22,000 to 242,000 for the week ending Feb. 22, the Labor Department said Thursday. Analysts projected that 220,000 new applications would be filed. Weekly applications for jobless benefits are considered a proxy for layoffs. The four-week average, which evens out some of the week-to-week volatility, climbed by 8,500 to 224,000. The total number of Americans receiving unemployment benefits for the week of Feb. 15 fell by 5,000 to 1.86 million.

Mack Trucks introduces MD Electric Bucket Truck

Dana Guthrie - February 27, 2025

GREENSBORO, N.C. — Mack Trucks is announcing its entry into the specialized utility segment with a Mack MD Electric and Terex Utilities fully-electric bucket truck. The truck marks a significant milestone in the company’s battery electric vehicle (BEV) portfolio, according to a company press release. The truck will be showcased at NTEA Work Truck Week, March 4-7 at the Indiana Convention Center, Ind. in Mack booth No. 3123. “This electric bucket truck represents the next natural step in our commitment to sustainable transportation solutions,” said George Fotopoulos, vice president of E-mobility at Mack Trucks. “Our lightweight electric chassis provides the capability to handle more demanding applications, and when combined with Terex’s expertise in utility equipment, we’re delivering a solution that pushes the boundaries of what’s possible in zero tailpipe emissions utility vehicles.” Mack and Terex Join Forces The new offering pairs Mack’s electric Mack MD7 chassis with Terex’s Optima HR55 aerial device. The collaboration combined Mack’s most capable EV chassis with Terex’s expertise in aerial booms to provide the most efficient transportation solution to the industry, according to the release. According to Terex, the Mack MD Electric chassis enables up to 1.5 times greater range compared with other Class 6/7 medium-duty electric bucket trucks, while providing double the rear axle payload capacity. This advancement directly addresses previous challenges in the utility sector, where the combined weight of aerial equipment and battery systems often presented operational limitations. Collaboration and Innovation “Our collaboration with Mack Trucks represents continued movement forward in zero tailpipe emissions utility vehicles,” said Tyler Schwingler, product marketing manager at Terex Utilities. “By combining our industry-leading Optima HR55 aerial device with Mack’s innovative MDe7 chassis, we’re providing utility companies with a solution that doesn’t compromise on performance or capability while meeting their sustainability goals.” The Terex aerial device is powered by the HyPower SmartPTO by Viatec, operating independently from the truck’s power system. This configuration ensures utility crews can complete a normal workday with the boom and outriggers without impacting the truck’s driving range. “Electric utilities now have an EV truck with the apparatuses they need to service poles and lines, and it’s fueled by what they produce – electricity,” Fotopoulos said. “As we continue to work with body builders to progress the MD Electric across various Class 6 and 7 commercial truck applications, this collaboration demonstrates Mack’s commitment to delivering sustainable solutions that meet our customers’ specific needs.” The electric bucket truck will be available in limited quantities in 2025. For more information about Mack’s zero emissions vehicles and complete product lineup, visit www.macktrucks.com.

EG America and AtoB unveil Alloy Fleet+ Card

Dana Guthrie - February 27, 2025

WESTBOROUGH, Mass. — EG America (EGA) is announcing a new-to-industry business fleet card, the Alloy Fleet+ card, in partnership with AtoB. “The Alloy Fleet+ card is uniquely suited to meet the needs of our fleet customers, providing the security and reporting they require to support all of their vehicles—from light and medium duty to over-the-road trucks and EVs,” said Craig Byerlee, head of commercial fuel sales at EG America. “In addition to generous fuel discounts, cardholders will have the flexibility to use this card to purchase business-related products and services anywhere that MasterCard is accepted, and earn cash back on those purchases. AtoB shares our vision of creating a payment product that challenges the current boundaries of the industry and creates a distinctive value proposition for cardholders.” Meeting the Needs of Fleet Customers The Alloy Fleet+ Card, tailored to support the unique needs of fleet customers, will provide industry-leading discounts at EG America’s family of brands, best-in-class technology tools, fraud prevention tools and robust credit and credit-building options, according to a company media release. The card offers competitive fuel discounts at more than 1,400 EG America stores and provides purchase ability at more than 150,000 fueling locations. Alloy Fleet+ cardholders will receive a 20-cent-per-gallon discount for the first 90 days, with discounts up to eight cents-per-gallon afterward. Cardholders will have access to exclusive non-fuel perks, Mastercard Easy Savings benefits, and 1% cash back on non-fuel expenses for those who qualify. Discounts are applicable across EG America’s network of convenience stores and gas stations, including: Certified Oil. Cumberland Farms. Fastrac. Kwik Shop. Loaf N’ Jug. Minit Mart. Quik Stop. Sprint Food Stores. Tom Thumb. Turkey Hill. Modern Tools for Fleets “Our goal at AtoB is to ensure that small businesses are empowered with modern tools to fight fraud, provide cost savings, deliver superior technology solutions, and democratize access to credit and credit-building solutions to an industry that has gone too long without them,” said Vignan Velivela, CEO of AtoB. “The Alloy Fleet+ Card will be another important offering that leverages the best of AtoB’s technology solutions with EG America’s strong network and offerings.” With the launch of the card, EG America seeks to incentivize continued fuel purchases while offering exclusive perks and deep value to a growing B2B customer base. “This product is the first of many steps we’re taking to support the needs of our business customers while delivering transformational industry innovation that differentiates us from competitors and drives continued growth,” said John Carey, president and CEO of EG America. “These businesses deserve the same customer support, spending insights, cost savings, and technology solutions as larger enterprises, and AtoB is the ideal partner to deliver this given its proven track record of modern technology solutions tailored to fleet businesses.” The Alloy Fleet+ Card will launch in Q1 2025.

Dot Transportation’s Orange EV truck hits 30,000 hours

Dana Guthrie - February 27, 2025

MOUNT STERLING, Ill. — Dot Transportation Inc. is celebrating a significant step in its journey toward sustainability: 30,000 hours of usage with its first-deployed Orange EV electric terminal truck. “We’re proud to reach this incredible milestone with our electric terminal trucks,” said Kevin Buss, director of fleet maintenance. “These trucks have consistently supported our operations, and the 30,000-hour mark proves the durability and reliability of Orange EV’s electric terminal trucks in our high-demand environments. After more than 6 years and 30,000 hours, the Orange EV trucks are still going strong creating a safer, healthier environment for our drivers and providing benefits that extend far beyond environmental impact.” Seeking Sustainability According to a DTI media release, since first integrating zero-emission trucks, DTI has seen substantial operational and environmental benefits, reducing its carbon footprint while enhancing efficiency and reducing costs at its distribution centers. “DTI chose Orange EV to assist in their transition away from diesel-powered terminal trucks to a cleaner, more sustainable option,” DTI said “After logging 30,000 hours on its first truck – deployed in 2018 – the results speak for themselves: just this one truck in DTI’s Orange EV electric terminal truck fleet has eliminated the need for an estimated 45,000 gallons of diesel fuel, reduced CO₂ emissions by more than 500 tons, and decreased operating costs through reduced maintenance, repair, and energy use.” Charging Infrastructure Alongside the trucks, DTI utilizes strategically-paired charging stations that ensure the trucks maintain high uptime and can operate continuously across multiple shifts without interruption. This charging infrastructure has been crucial in keeping the trucks ready for constant use, resulting in a more dependable fleet that aligns with DTI’s efficiency and environmental objectives. “Dot Transportation has demonstrated what’s possible when a company prioritizes innovation in its fleet operations,” said Kurt Neutgens, president, CTO of Orange EV. “Now deployed for more than six years, DTI’s 30,000-hour truck is operating on its original battery pack as are all of the more than 1,300 trucks in Orange EV’s commercially deployed fleet. Built in Kansas City, Orange EV trucks have been proven to be the best terminal trucks out there – electric or diesel – and we’re proud to support DTI in setting a new standard in fleet operations.” DTI added three more Orange EV electric trucks to their fleet, leading to significant reductions in greenhouse gas emissions and making DTI a model for companies seeking to minimize environmental impact without sacrificing productivity, according to the release. DTI plans to add four more Orange EV trucks in 2025 and expand this successful partnership with Orange EV.

Trucking industry supports Transportation Freedom Act

Dana Guthrie - February 26, 2025

WASHINGTON — U.S. Sen. Bernie Moreno, a former auto dealer turned politician, is introducing legislation that would repeal emissions rules and give tax breaks to car manufacturers. The Transportation Freedom Act “The Transportation Freedom Act would roll back costly electric truck mandates, eliminate arbitrary state emissions waivers and restore a balanced regulatory framework for the trucking industry,” the American Trucking Associations (ATA) said. According to the bill one-sheet, “the act provides a bold, pro-America, pro-worker solution to revitalize auto manufacturing and restore fairness in emissions regulations.” Key Provisions: Support for American Auto Manufacturing Provides a 200% tax deduction for American auto workers and supports and encourages job creation in the U.S. It will ensure that the U.S. remains a global leader in vehicle innovation, design and manufacture centered here at home. Common-Sense Emissions Standards Repeals the EPA’s extreme ‘Tailpipe Rule,’ which would mandate that 67% of all new cars be electric by 2032, regardless of consumer demand or affordability. Eliminates burdensome emissions rules for heavy-duty trucks, protecting supply chains and working-class industries. Ends arbitrary CAFE fuel economy standards that require manufacturers to build vehicles the consumers simply do not want. Provides a 180-day window for Cafe Standards and Greenhouse Gas Emissions to be replaced with tough but achievable standards reflecting market ready technology and industry consultation. Current regulatory improvements assume technologies that don’t even exist. One National Standard – No More California and other State-by-State Waivers Prevents California and other states from dictating national emissions policy and forcing costly regulations which increase the cost of cars for all American drivers. Revokes California’s zero-emission vehicle mandate, ensuring all Americans— not just California politicians—have a say in our country’s transportation future. Ensuring Predictability in Regulations Mandates stable emissions and fuel economy standards from 2027-2035, providing a 10-year regulatory roadmap for automakers. For perspective, the average time from conception to certification for a car takes 7 years. Ensures standards are based on real-world feasibility and affordability, not government mandates disconnected from consumer demand. Requires input from manufacturers, energy producers, and consumers, instead of bureaucrats pushing a political agenda. The Transportation Freedom Act puts American workers, consumers and innovation first by strengthening domestic auto manufacturing and ensuring Americans—not Washington—decide what they drive, according to the bill one sheet. “By restoring regulatory stability, this bill promotes real competition and investment, bringing back the golden age of American automobiles,” the bill one sheet said. “This bill puts American workers and consumers first by restoring fairness, boosting investment, and ensuring the U.S. leads the world in auto innovation.” Fair Share Earlier this month, other legislators put forth the Fair SHARE Act which would impose one-time fees on electric vehicles (EVs) to ensure EVs contribute to the Highway Trust Fund (HTF) as internal combustion vehicles do. Trucking Industry Support According to the ATA the legislation includes key provisions that it has actively supported. It includes the repealing of the Phase 3 greenhouse gas standards, which mandate the sale of electric trucks, and the elimination of California’s ability to set de facto national emissions policy. These changes represent a critical step towards ensuring that future regulations are achievable, technology-neutral, and do not jeopardize the stability of America’s supply chain. “Sixty trucks today emit the same amount as one truck manufactured in 1988,” said Chris Spear,ATA president, CEO. “The trucking industry has proven our commitment to reducing our environmental footprint, but in recent years, some regulators have turned their backs on the collaborative model that made this monumental progress possible. “The trucking industry commends Senator Bernie Moreno for introducing the Transportation Freedom Act, which would restore commonsense at EPA and put an end to states like California creating a patchwork of unachievable timelines and targets. His legislation will prevent price hikes for consumers, allow innovation to flourish, and foster achievable national standards that put us back on the path to lowering emissions without causing supply chain disruptions.” Trucks of Today Trucks today produce 99% fewer nitrogen oxide and particulate matter emissions than those on the road decades ago, and new trucks cut carbon emissions by over 40 percent compared to a truck manufactured in 2010, according to the ATA. As a result, 60 of today’s trucks emit what just one truck did in 1988. The trucking industry supported the Environmental Protection Agency’s Phase 1 and Phase 2 greenhouse gas regulations and worked collaboratively with the agency to set aggressive but achievable emission reduction goals on reasonable timelines. EPA’s Phase 3 rule marked a sharp departure from this successful partnership, setting unrealistic adoption rates for battery-electric trucks. Waivers EPA granted to California for its onerous Advanced Clean Trucks and Omnibus NOx rules added further complexity and set the trucking industry up for failure, according to the ATA. According to a study commissioned by the Clean Freight Coalition, full electrification of the U.S. commercial truck fleet would require nearly $1 trillion in infrastructure investment alone. A report by the American Transportation Research Institute identified the many challenges related to U.S. electricity supply and demand, electric vehicle production and truck charging requirements. Read a one-pager on the Transportation Freedom Act HERE. Read the text of the bill HERE.

Fueling Education: Application period for the Art Fisher Memorial Scholarship open

Dana Guthrie - February 26, 2025

STAUNTON, Va. — Applications for the Art Fisher Memorial Scholarships are now being accepted at AutomotiveScholarships.com. “It brings immense pride to everyone at Federated to provide these scholarships to exceptional applicants each year,” said Bo Fisher, chairman of Federated Auto Parts. “Awarding the Art Fisher Memorial Scholarships is a way to give back, help deserving young students and honor my father’s memory.” Honoring Late Founder Art Fisher founded Federated Auto Parts Distributors in 1985. Federated grew to more than 3,800 Federated Auto Parts Stores and 3,000 Federated Car Care Centers today nationwide. Fisher served on the board of governors of AWDA and served as chairman in 2001. Thirteen scholarships for the 2025-26 academic year, in memory of Fisher, will be awarded to students preparing for automotive aftermarket careers. The Art Fisher Memorial Scholarships are administered by the University of the Aftermarket Foundation (UAF). They are awarded to students attending a two- or four-year accredited college, an ASE certified post-secondary automotive, heavy-duty or collision technician training program or any licensed and accredited vocational school. Students graduating from high school in 2024 and heading to any of these post-secondary programs are also eligible. Federated is one of more than 30 organizations that award scholarships on the UAF Automotive Aftermarket Scholarship Central website. For students who apply at AutomotiveScholarships.com, each application will be considered for every scholarship opportunity where the candidate meets the qualifications. To learn more and apply by the March 31 deadline, visit AutomotiveScholarships.com.

US dockworkers approve 6-year contract, averting a strike

The Associated Press - February 26, 2025

WASHINGTON (AP) — Dockworkers on the U.S. East and Gulf coasts overwhelmingly approved a six-year contract Tuesday, averting the threat of a strike that could have crippled the economy. The yes vote was expected after the leadership of the International Longshoremen’s Association union reached a tentative contract agreement in January with the U.S. Maritime Alliance of ports and shipping companies. The alliance approved the contract last month, and on Tuesday rank-and-file members voted for it with nearly 99 percent in favor, the union said in a statement. The contract calls for a 62% pay hike over six years that would lift hourly wages at the top of the union pay scale from $39 an hour to $63 an hour. ILA President Harold Daggett, who served as the union’s chief negotiator, was quoted in the statement as saying the agreement is “the ‘gold standard’ for dockworker unions globally.” He remarked that it was a difficult contract to negotiate and even required a three-day strike last fall, but “We now have labor peace for the next six years.” The union and the alliance also reached a truce on the most contentious labor issue on America’s docks: automation. The union worries that machines — especially semi-automated cranes — will replace human workers. Port operators and shipping companies argue that U.S. ports are falling behind more automated ones such as those in Rotterdam, Dubai and Singapore. The new contract gives ports more leeway to introduce modernizing technology. But they have to hire new workers when they do, and full automation is off the table. “The pending contract opens the door a little more for advanced technology and automation,” Brian Lynch, leader of the transportation sector at the consulting firm EY Americas, said before the vote. “The door’s cracked a bit.” The union went on the three-day strike in October but suspended it to allow for more talks. A prolonged shutdown at 14 ports stretching from Boston to Houston could have delayed shipments to American factories and retailers and driven up costs. The two sides are expected to meet the week of March 10 to sign the agreement, after which it would go into effect. Before his inauguration, President Donald Trump voiced support for the union. Claiming to “know just about everything there is to know” about automation, Trump wrote on social media, “The amount of money saved is nowhere near the distress, hurt, and harm it causes for American Workers, in this case, our Longshoremen.”

Kapsch TrafficCom’s Martika Johanson-Murray to lead Atlanta program supporting women, students in transportation

Dana Guthrie - February 26, 2025

DULUTH, Ga.— Kapsch TrafficCom is announcing the appointment of Martika Johanson-Murray, traffic systems engineer, as chair of the Transportation YOU Program within the WTS Atlanta Chapter. “I’m thrilled and honored to support and inspire women in transportation, just as I was inspired as a student,” Johanson-Murray said. “Mentoring and championing the next generation of female leaders is a cause close to my heart, and I believe it’s essential for a brighter, more inclusive future.” WTS – Advancing Women in Transportation WTS is an international organization dedicated to advancing women in transportation, according to a media release. With over 9,000 members in 70 chapters worldwide, WTS provides professional programs, networking opportunities and access to industry and government leaders. Supporting Women in the Next Generation of Transportation In this role, Johanson-Murray will lead initiatives over the next two years focused on high school career outreach, professional mentorship and scholarship opportunities to cultivate the next generation of transportation talent. As chair, Johanson-Murray will lead monthly school visits, engaging with a partnered high school to provide students with transformative experiences and exposure to transportation careers. Johanson-Murray will also mentor a six-day immersive Washington D.C. Summit. guiding high school students through educational tour. This includies visits to a local university, the US Department of Transportation, an airport and Metro trains. Research shows that career information significantly influences students’ success after graduation, helping them make informed educational and career decisions. Transportation YOU The Transportation YOU committee partners high school students with professionals to explore STEM career opportunities, seek mentorship, hear from industry guest speakers, and participate in site tours such as Traffic Management Centers. “When we uplift and empower women, we open doors to new ideas and innovative solutions that can transform our world,” said JB Kendrick, president of Kapsch TrafficCom North America. “It’s about more than just equity—it’s about creating a future where everyone has the opportunity to thrive and make a difference. Martika’s appointment aligns perfectly with our mission to empower women and promote gender equity in the transportation industry. I look forward to supporting her and celebrating her achievements in the coming years.” Kapsch TrafficCom is committed to fostering a diverse, inclusive and equitable workplace. It believes in the power of mentorship and the importance of supporting women in STEM fields. Kapsch TrafficCom North America is a proud Diamond sponsor the WTS organization chapter in Atlanta. The WTS Atlanta Chapter, with nearly 300 members from various transportation sectors, has been contributing to the region for 42 years. The chapter remains dedicated to equity, access, and advancement for women in transportation, offering quality opportunities to attract, sustain, connect, and advance women’s careers.