The Nation

WASHINGTON — With the COVID-19 pandemic, there is concern throughout the trucking industry regarding DOT drug-and-alcohol testing. The Department of Transportation has offered a set of guidelines for DOT-regulated employers, employees and service agents regarding testing. Below is the guidance offered by the DOT regarding compliance with the DOT and modal drug-and-alcohol testing programs during this period of national emergency. For DOT-Regulated Employers: As a DOT-regulated employer, you must comply with applicable DOT training and testing requirements. However, DOT recognizes that compliance may not be possible in certain areas due to the unavailability of program resources, such as collection sites, breath-alcohol technicians, medical-review officers and substance abuse professionals. You should make a reasonable effort to locate the necessary resources. As a best practice at this time, employers should consider mobile collection services for required testing if the fixed-site collection facilities are not available. If you are unable to conduct DOT drug or alcohol training or testing due to COVID-19-related supply shortages, facility closures, state or locally imposed quarantine requirements, or other impediments, you are to continue to comply with existing applicable DOT Agency requirements to document why a test was not completed. If training or testing can be conducted later, you are to do so in accordance with applicable modal regulations. Links to the modal regulations and their respective web pages can be found here. If employers are unable to conduct DOT drug-and-alcohol testing due to the unavailability of testing resources, the underlying modal regulations continue to apply. For example, without a “negative” pre-employment drug test result, an employer may not permit a prospective or current employee to perform any DOT safety-sensitive functions. Additionally, DOT is aware that some employees have expressed concern about potential public-health risks associated with the collection and testing process in the current environment. Employers should review the applicable DOT Agency requirements for testing to determine whether flexibilities allow for collection and testing at a later date. As a reminder, it is the employer’s responsibility to evaluate the circumstances of the employee’s refusal to test and determine whether the employee’s actions should be considered a refusal. However, as the COVID-19 outbreak poses a novel public health risk, DOT asks employers to be sensitive to employees who indicate they are not comfortable or are afraid to go to clinics or collection sites. DOT asks employers to verify with the clinic or collection site that it has taken the necessary precautions to minimize the risk of exposure to COVID-19. Employers should revisit back-up plans to ensure the plans are current and effective for the current outbreak conditions. For example, these plans should include availability of collectors and collection sites and BAT, and alternate/back-up MRO, as these may have changed as a result of the national emergency. Employers should also have regular communications with service agents regarding the service agent’s availability and capability to support your DOT drug-and-alcohol testing program. For DOT-Regulated Employees: If you are experiencing COVID-19-related symptoms, you should contact your medical provider and, if necessary, let your employer know about your availability to perform work. If you have COVID-19-related concerns about testing, you should discuss them with your employer. As a reminder, it is the employer’s responsibility to evaluate the circumstances of an employee’s refusal to test and determine whether the employee’s actions should be considered a refusal. For Service Agents: As a collector, BAT, laboratory, MRO or SAP, you should continue to provide services to DOT-regulated employers if it is possible to do so in accordance with state or local mandates related to COVID-19. Should you have concerns about COVID-19 when testing or interacting with employees, follow your company policy, directions from state and local officials, and guidance from the Centers for Disease Control and Prevention.

The Senate passed the $2 trillion Coronavirus Aid, Relief, and Economic Security, or CARES Act, on March 25 by a vote of 96 to zero. The House of Representatives then passed the act on March 27 by voice vote before it headed to President Trump’s desk, who signed the act almost immediately. Sen. Richard Shelby, R-Ala., noted in a statement that 80% of the total funding provided in CARES Act is going directly to state and local governments. “I am confident that this legislation will pave the way for us to overcome the current economic and public health crisis we are facing, allowing us to emerge stronger on the other side,” he said. Analysis of the emergency funding measure conducted by the American Association of the State Highway and Transportation Officials indicates the U.S. Department of Transportation will receive $31.1 billion in funds to disburse in several directions: The Federal Transit Administration (FTA) will receive $25 billion for transit providers, including states and local governments across the country, for operating and capital expenses. Funding will be distributed using existing FTA formulas, with an estimated $1.8 billion for rural systems funded under Section 5311. Amtrak will receive $1.018 billion for operating assistance to cover revenue losses related to the novel coronavirus. No less than $239 million is provided for state-supported services, with the provision that states are not required to pay more than 80% of fiscal year 2019 costs. The Federal Aviation Administration gets $10 billion for its Airport Improvement Program, distributed by formula, to maintain operations at airports across the nation that are facing a record drop in passengers. Legislative language directs the Federal Highway Administration to clarify that states can issue special permits for overweight vehicles and loads to allow for the free flow of critical relief supplies during the current COVID-19 epidemic for the duration of the current fiscal year. The Essential Air Service gets $56 million to maintain existing air service to rural communities; monies necessary to offset the reduction in overflight fees that help pay for the EAS program. In addition to those USDOT provisions, $32 billion in grants are provided for aviation sector businesses outside the appropriations process, and up to $46 billion in loans and loan guarantees are provided for aviation sector businesses, according to AASHTO’s analysis. In a statement released March 27, the American Trucking Associations praised Congress and President Trump for passing the bill into law, saying the legislation provides critical assistance needed by motor carriers to maintain payrolls, the economy’s supply lines and the movement of essential goods. “Across the country right now, truckers are answering the call during this national emergency, delivering food, medicine, PPE and other critical supplies. It’s important for our nation’s supply chain that trucking has access to liquidity so we can keep our trucks on the road — and not on the sales lot,” said Chris Spear, ATA president and CEO. “Truckers don’t have the option to telework, and they’re not asking for a handout,” Spear continued. “But they are asking for liquidity and the necessary bridge to keep trucks moving as America recovers from this crisis.” The legislation provides $377 billion to help prevent workers from losing their jobs and small businesses from going under due to economic losses caused by COVID-19. The Paycheck Protection Program provides eight weeks of cash-flow assistance through 100% federally guaranteed loans to small employers who maintain their payroll during this emergency. It also expands eligibility for entities suffering economic harm due to COVID-19 to access the Small Business Administration’s (SBA) Economic Injury Disaster Loans (EIDL), while also giving SBA more flexibility to process and disperse small dollar loans. It requires SBA to pay all principal, interest, and fees on all existing SBA loan products for a period of up to six months. “We thank President Trump and leaders in Congress for putting partisan differences aside and taking these necessary steps to keep our economy moving. The trucking industry will continue to do our part to move America through this challenge,” Spear said.

NEW YORK — All eyes have been on New York City as the it has become the epicenter for the United States’ novel coronavirus outbreak. With roughly 8.5 million residents, NYC had nearly 22,000 cases and 281 deaths as of Thursday, March 26, according to a tally by Johns Hopkins University. The Centers for Disease Control and Prevention (CDC) has stated that anyone leaving the greater New York City area should self-quarantine for 14 days following their exit from the city. With that statement, there have been concerns among the trucking industry regarding drivers’ safety in this area. “When we issued the self-quarantining guidance for greater New York City residents leaving this area, it was out of an abundance of caution to help protect U.S. areas with lower levels of COVID-19 spread,” the CDC said in a news release March 26. “In line with our recommendations for other essential critical infrastructure workers, this guidance does not apply to critical transportation and delivery workers who are desperately needed for New York residents to continue their daily lives and respond to the COVID-19 outbreak.” Truck drivers and others who drive into the city are instructed to stay in their vehicles as much as possible as supplies are loaded and unloaded, avoid being within 6 feet of others as much as possible when they exit their vehicles, and move to electronic receipts if possible, the statement continued. “If these drivers need to spend the night in the greater New York City area, they should stay in their hotel rooms or sleeper cab, when available, to the extent possible and continue to practice social distancing,” the release continued. “Drivers who take these precautions should not need to self-quarantine when they leave the greater New York area, unless self-quarantine is recommended by state or local officials for all residents in the areas where they live.” Truck drivers and other workers who live in the greater New York area may continue to work both within and outside of the greater New York area but should stay at home and practice social distancing when they are not working, according to instructions from state and local officials.

WASHINGTON — The Coronavirus Aid, Relief and Economic Security (CARES) Act was released late Wednesday night and was unanimously approved by the Senate. This $2.2 trillion piece of bipartisan legislation would deliver critical relief to Americans and small businesses reeling from the impact of COVID-19. American Trucking Associations President and CEO Chris Spear said the bill will provide critical assistance that small and midsize motor carriers need to maintain payrolls, the economy’s supply lines and the movement of essential goods on which all Americans rely. “At its core, trucking is an industry of small business,” Spear said. “More than 90% of motor carriers in this country have fewer than six trucks, and it is critically important for the health of our nation’s supply chain that small and midsize carriers have accesses to liquidity so they can keep their drivers paid, trucks running, stores restocked and hospitals supplied.” The bill would provide $377 billion to help prevent workers from losing their jobs and small businesses from closing due to economic losses caused by COVID-19. The Paycheck Protection Program would provide eight weeks of cash-flow assistance through 100% federally guaranteed loans to small employers who maintain their payroll during this emergency. The bill would expand eligibility for entities suffering economic harm due to COVID-19 to access the Small Business Administration’s (SBA) Economic Injury Disaster Loans (EIDL), while also giving SBA more flexibility to process and disperse small dollar loans. It would also require SBA to pay all principal, interest, and fees on all existing SBA loan products for a period of up to six months. “Americans across the country have renewed focus right now on what it is truckers do every single day: provide the essential goods — food, water, fuel, medicine — that we all rely in our daily lives,” Spear said. “Truckers don’t have the option to telework, and they’re not asking for a handout. But they are asking for liquidity and the necessary bridge to keep their trucks moving as America recovers from this crisis.”

ATLANTA — Data released today (Tuesday, March 24) by the American Transportation Research Institute (ATRI) shows that the nation’s trucks are continuing to move — in many cases faster than usual — to respond to the demands placed on the industry by the COVID-19 pandemic. “ATRI’s real-time GPS data comes from more than a million trucks, allowing us to analyze freight flows. So far in March, what we are seeing is an unprecedented level of truck movement,” said Rebecca Brewster, ATRI’s president and COO. “Not only are trucks continuing to move, but they are doing so at speeds well in excess of normal traffic patterns.” For example, according to ATRI’s data, at the intersection of interstates 85 and 285 in Atlanta, known locally as “Spaghetti Junction,” afternoon rush hour truck speeds are typically less than 15 mph due to congestion. Last week truck speeds averaged 53 mph. “Spaghetti Junction is typical of what we’ve seen across the country, especially in areas hit hard by the virus and subject to quarantines and lockdowns,” Brewster said. “As other traffic dissipates, trucks continue to move, delivering much-needed relief supplies to markets, hospitals, gas stations and other essential businesses.” Among the hardest-hit states — New York, California and Illinois — the data shows similar changes. In New York, along Interstate 495 in Queens, the afternoon rush hour typically sees average truck speeds of 16 mph. Speeds have now more than doubled, averaging 38 mph, still below the posted speed limit but certainly an improvement. In Los Angeles, at the intersection of interstates 710 and 105, truck traffic speeds during highly congested morning rush hours between 6 and 8 a.m. are normally less than 25 mph. Truck speeds are now averaging 53 mph as Californians stay home but truck deliveries increase. At the Byrne Interchange in Chicago, where Interstate 290 intersects with interstates 90 and 94, morning truck speeds are now averaging 43 mph, more than twice the typical morning rush-hour speed of 20 mph. According to ATRI’s analysis, these changes can be explained by several COVID-19-related factors. First is the dramatic reduction in commuter traffic, allowing trucks to operate at higher speeds, traditionally during traditional rush hours. Second is the continuous 24/7 truck operations that generate higher average truck speeds across nearly all hours of the day. ATRI’s analysis used truck GPS data from more than a million heavy-duty trucks, and the locations examined included some of the nation’s top truck-choke points. “Normally, ATRI’s bottleneck data is used to show us where the problems are on our highway system,” said Chris Spear, president and CEO of American Trucking Associations (ATA). “But during this period of extreme uncertainty, the data is showing us where the solution is — in the back of America’s trucks as professional drivers continue to quickly and safely deliver life-sustaining medical supplies, food, fuel and other essentials to Americans when they need it most.”

With the exception of temporary price hikes around major holidays, summer usually isn’t a time to worry about diesel fuel. Unlike wintertime, in warmer weather, no truck owner needs to worry whether the fuel is blended or contains anti-gel additives. The product may differ slightly between vendors, depending on detergents or other additives included, but in general, any quality brand will work. Aside from unforeseen problems with availability and price spikes, there’s little to be concerned about when it comes to summer fuel. This year, if there’s a danger in the diesel-fuel outlook, it’s that prices might get so low as to impact the economy. There is more than one reason. First, Saudi Arabia and Russia are currently engaged in a price war, with neither side planning any cuts in reduction soon. This global version of the old fashioned “gas wars” waged by stations on opposing corners of an intersection adds to the “supply” side of the crude-oil supply-and-demand equation, driving prices downward. As their revenues decline, the warring parties often increase production in an attempt to keep income steady. Usually, such actions drive pricing down even further. To this confusion, add one COVID-19 pandemic. The virus has already resulted in closed factories in China, resulting in declining U.S. imports. Travel restrictions have curtailed air travel severely, pushing some airlines close to bankruptcy. Since many airlines operate as close to full capacity as possible, they may not have the ability to rebound by hauling more passengers when the pandemic is over. But wait, there’s more. To all of this, add the virus-fighting strategy of “social distancing,” whereby people stay home rather than going to sporting events, bars, restaurants and the like. Many churches have canceled all activities, including Sunday services, instead connecting with their flocks via online steaming. People aren’t driving as much and — except for a temporary run on hand sanitizer and toilet tissue — they aren’t buying many of the products hauled by truck. According to the U.S. Energy Information Administration, the first quarter of 2020 will record the “largest quarterly decline in petroleum liquids consumption since 2003.” The end result is that while the supply has increased to a point the analysts are calling it a “glut,” the demand has fallen off sharply, quickly driving prices down. How far down? The U.S. benchmark price of crude oil reached a four-year low in mid-March, dipping below $30 per barrel. Just a few years ago, experts predicted that the days of $50 per barrel oil were gone forever. Indeed, 2019 crude oil prices bounced between $50 and $60 per barrel for most of the year. In a March 15 speech outlining measures the country would take to address the COVID-19 pandemic, President Donald Trump announced that the U.S. would purchase oil to “completely fill” the country’s Strategic Petroleum Reserve (SPR). This “emergency supply” of oil holds about 727 million barrels of crude and was at a level of 635 million barrels during the first week of March. According to the EIA, crude-oil prices comprised 46% of the price of a gallon of diesel fuel in 2019. Distribution and marketing consumed another 21%; federal and state taxes another 18%; and refining costs and profits made up the remaining 15%. The price of crude oil is perhaps the biggest variable and has the most impact on the final gallon price of diesel. The EIA reports U.S. fuel prices every Monday, and the trend for both gasoline and diesel fuel has been downward. As of this writing, the U.S. national average price for a gallon of diesel was $2.73.3, down 8.1 cents per gallon from a week earlier and 33.7 cents per gallon less than a year ago. Across the country, prices ranged from a low of $2.50.4 per gallon in the Gulf Coast region to $3.62.5 in California. Prices are expected to continue dropping in the short term, rebounding later in the year when the economy returns to something resembling normal. Truckers who depend on fuel surcharges collected from their customers will see revenue declines, perhaps to the bottom of the fuel surcharge table they have in place. How much they are harmed will depend on their fuel efficiency capabilities, but no loss of revenue is good. While no one in trucking will be caught complaining about lower fuel prices, there is some downside to the equation. With fewer products moving, there will be less freight to haul. The law of supply and demand works here, too, so expect rates to fall as the supply of available trucks grows while the amount of freight (the “demand” for trucks) remains low. A significant long-term consequence of low crude pricing is the reduction in oil drilling and fracking operations, as these operations become less profitable. It’s a double whammy for the trucking industry, since drilling operations are dependent on trucking for pipe and materials as well as fracking agents and wastewater hauling. At some point the trends are expected to reverse. In the meantime, lower diesel-fuel prices are a little good news for an industry, and a world, that could use some.

GREENSBORO, N.C. — With toilet paper still flying off the shelves across the nation, a North Carolina truck driver caused a stir when he was pulled over while hauling 18,000 pounds of bathroom products — all loaded in a stolen trailer. The Guilford County Sheriff’s Office issued a news release saying that deputies on Wednesday, March 18, spotted the driver of an 18-wheeler and determined the trailer was stolen. Deputies followed the driver to a warehouse off the interstate and discovered that the driver was hauling 18,000 pounds of commercial bathroom paper products, according to the release. Capt. Daryl Loftis said by phone that the cargo included a mixture of paper towels, toilet paper and other commercial products. Loftis said that the cargo was actually part of a shipment that was otherwise lawful — only the trailer was stolen. He described it as “legitimate cargo going to a legitimate place.” He said the business that was the final destination is in Greensboro, and that deputies helped get the shipment where it was supposed to go. The driver is a suspect in the theft of the trailer, but no arrests have been made, Loftis said, adding that the department is taking its time to investigate and isn’t releasing the name of the driver because the issue of toilet paper is “fairly sensitive right now.”  

TOPEKA, Kan. — Kansas legislators on Thursday, March 19, approved a new 10-year transportation program that many lawmakers see as a much-needed $10 billion stimulus to counter the economic damage from the coronavirus pandemic. The Republican-controlled Legislature made funding highway, road and bridge improvements a priority as it tackled measures for addressing the new coronavirus and finished a $19.9 billion annual budget to keep state government operating after June. Lawmakers finished what they considered their most pressing work before an early — and unusually long — spring break. The transportation legislation was approved 112-3 in the House and 37-2 in the Senate. Democratic Gov. Laura Kelly is expected to sign it because it contains her proposals to use existing funds to pay for $1 billion a year in new projects and to pick projects every two years, rather than all 10 years’ worth at the start. The measure also ensures that $300 million worth of projects can be expedited with a fast-track, designing-while-building process to get a few big ones moving. “We’ve always known that infrastructure projects do help the economy,” said Senate Vice President Jeff Longbine, an Emporia Republican. It would be the fourth eight- or 10-year transportation program Kansas has launched since 1989, using a combination of bonds, gasoline tax, sales tax and vehicle registration fee revenues. Legislators and governors have regularly raided highway funds to patch holes elsewhere in the state budget, and there’s no guarantee they won’t do it again with the new program. But House Transportation Committee Richard Proehl, a Parsons Republican, said even if the state has no transportation funds, a program gives it “shovel-ready” projects that can be financed with federal dollars. Meanwhile, the budget would boost the state’s overall spending by $1.2 billion, or 6.4%. Some big spending issues, such as a pay raise for state workers, are left until later, but the budget sets aside $50 million for responding to the coronavirus. The House passed it 99-16, and the Senate approved it, 28-10. Lawmakers also passed a resolution extending a state of emergency due to the coronavirus pandemic, which Kelly declared last week, until at least May 1, while requiring legislative leaders to review all Kelly’s coronavirus orders. The state has had more than 30 COVID-19 cases. The vast majority of people infected recover, though older adults and people with underlying medical problems can develop a severe illness. The Legislature had been scheduled to stay in session through April 3 before taking its spring break, but its leaders decided to expedite key measures so lawmakers could get away from Statehouse gatherings. Lawmakers planned to return April 27 to wrap up the year’s business. The two biggest issues were not resolved ahead of the break. Republican leaders gave up for now on their top priority, a proposed anti-abortion amendment to the state constitution, and a bipartisan plan to expand the state’s Medicaid program was stalled. GOP lawmakers also temporarily abandoned a push for income tax cuts. While the transportation program had broad support, conservative state Republican Sen. Dennis Pyle, of Hiawatha, was skeptical that projects would be spread around evenly and voted no. “I want to see more hitting the pavement in my district,” Pyle said. The new program commits $85 million over 10 years for improving the infrastructure for broadband service, and it allows the state to build three toll roads, though it is likely to add toll lanes to existing congested highways. The program is named the Eisenhower Legacy Transportation Program after President Dwight Eisenhower, the Kansan who pushed for construction of the U.S. interstate highway system. The building that houses the Kansas Department of Transportation’s headquarters in Topeka is named for him. “This program couldn’t come at a better time,” said Transportation Secretary Julie Lorenz. “As we come out of this pandemic, it’s going to be important to have jobs, so we need to get work in the pipeline.”