Truck Driving Job News Archives

Worst impacts of COVID-19 in ‘rearview mirror’ for commercial vehicle engine demand but regulations continue to affect industry, report says

The Trucker News Staff - September 8, 2020

COLUMBUS, Ind. — According to the North American Commercial Vehicle On-Highway Engine OUTLOOK, published by ACT Research and Rhein Associates in early September, economic indicators in recent months suggest the worst of the COVID-19 impact is in the rearview mirror. The report also explains the impact regulations will play on future commercial vehicle engine/powertrain demand. “With COVID-related shutdowns and supply chain disruptions still unraveling, a meaningful spike in cases could impact supply chains and by extension, new vehicle production — at least on a short-term basis,” noted Kenny Vieth, president and senior analyst of ACT. The Engine OUTLOOK highlights power-source activity for Class 5-8 commercial vehicles, including five-year forecasts of engines volumes and product trends. The report is tied to the detailed North American Commercial vehicle forecasts that are published monthly by ACT. The report benefits businesses and manufacturers in the commercial vehicle engine production supply chain, as well as any company following the investment value of engine OEMs and their suppliers. “While the Advanced Clean Truck Rule currently is pushing to all but eliminate the diesel engine in new trucks for at least 15 states by 2050, internal combustion engine efficiency improvements will continue to be important,” said Andrew Wrobel, senior powertrain analyst for Rhein Associates. When asked about alternative fuels, Wrobel said he expects limited market share growth for natural gas-powered Class 8 vehicles, adding that development of electric vehicles continues despite the COVID-19 pandemic. “That said, each alternative fuel has its place,” Wrobel said. “Truck fleets remain the primary users of natural gas engines, with refuse the leading vocational application, while medium-duty applications are identified as a primary adopting group of electric commercial vehicles because of their urban applications, with limited daily mileage and most returning to base overnight for easier recharge. School buses are also good candidates for alternative fuels, from propane to natural gas to electric.”

Slowly rising freight rates, increases in shipments show continuing economic recovery during pandemic

Cliff Abbott - September 7, 2020

The number of shipments available increased in July, pushing freight rates higher while diesel prices remained 20% lower than last year. Despite these positive factors, freight volumes remain well below last year’s levels. The American Trucking Associations’ (ATA) For-Hire Truck Tonnage Index, compiled from data submitted by ATA members, decreased 5.1% in July after an 8.9% leap in June. The ATA index measured 109.6 in July, down from 115.5 in June. ATA’s index compares current freight levels to the average in the year 2015, so an index of 109.6 indicates freight levels were 9.6% higher than in 2015. The index reached its low point in May this year and appeared to be recovering in June before the July decline. Compared to July 2019, the index declined 8.3%. It was the fourth consecutive year in which the index showed a decline. Bob Costello, chief economist for the ATA, said the market was impacted by carriers operating fewer trucks. “After a very strong June, for-hire contract freight tonnage, which dominates ATA’s index, slipped in July for a couple of reasons,” he said. “It is likely that tonnage was down because many fleets didn’t have the capacity to take advantage of stronger retail freight volumes. Therefore, much of that overflow freight moved to the spot market, which did increase in July.” Act Research’s For-Hire Trucking Index for Volume fell by 6 points to 64.3. The ACT index measures against a baseline of 50, with anything above 50 representing positive movement and lower numbers indicating contraction. ACT’s indexes for capacity and for driver availability both fell into negative territory at 48.1 and 39.3, respectively. Tim Denoyer, vice president and senior analyst for ACT, blamed a driver shortage for at least part of the declining volume of freight hauled. “The sharp drop in driver availability as freight volumes are recovering explains the need for higher rates that we’re seeing in the spot market,” he said. “Consistent with industry estimates that CDL issuance this year is tracking about 40% below normal levels, the Driver Index has tightened sharply. We see this as the primary capacity constraint presently, as equipment remains available at this point.” The Cass Freight Index, which measures shipments by air, rail, ship and pipeline in addition to trucking, reported that its raw index reading for July grew 4.8% over June numbers but is still 13.1% lower than July 2019 levels. DAT, which regularly reports spot rate data and recently acquired the Freight Market Intelligence Consortium (FMIC), has stepped up its reporting game and provided some useful information about shipping volumes. The FMIC data is based on analysis of more than $50 billion in actual annual freight transactions supplied by a variety of consortium members, including major retailers, wholesalers, manufacturers, brokers and other organizations. The DAT Truckload Volume Index reported that the number of dry van, refrigerated and flatbed loads in July rose 2.1% over June levels. In a departure from reports from other sources, DAT reported that those shipment levels were 3.7% higher than July 2019 levels. On the rate side, DAT Trendlines reported that spot freight rates for van hit record highs in August after a substantial increase in July. For July, van rates averaged $2.04 per mile, while average refrigerated rates hit $2.30 and flatbed rates rose to $2.29 per mile. DAT also provided some newer measurements to help clarify the rate situation. The FMIC reports a spot premium ratio (SPR) that compares average spot rates to average contract rates. Contract rates tend to change much more slowly than spot rates, so the SPR can indicate which direction the entire market is going. A positive SPR signals a tightening market with higher rates. The July SPR was 23.5%, the highest level in two years. Because contract rate changes typically lag 12 to 18 months behind spot rates, the 23.5% SPR is an indicator that higher overall rates are coming. Another new FMIC measurement is aimed directly at contract rates. The new rate differential (NRD) measures changes in rates when new contracts replace older ones. In July, the NRD was 3.7%, an indication that contract rates are rising. Dr. Chris Caplice, chief scientist at DAT and FMIC, offered an explanation of why spot rates are rising so much more quickly than contract rates. “First, carriers are honoring their committed volumes but not necessarily providing customers with additional surge capacity,” he said. This assessment matches statements from other analysts about capacity restraints and driver shortages. “Second, the volatility of shipper networks is creating new lanes to be covered, which are falling predominantly to the spot market,” he continued. That’s a way of explaining that shipments may not be lower, but they are different. For example, the soft drink industry has had to change its distribution plan due to COVID-19 restrictions. People are drinking fewer soft drinks at restaurants, ballparks and other public venues and consuming more soft drink products at home. Because of this, fewer shipments are destined for public venues and more are going to distribution centers for grocery outlets. One carrier’s loss of freight can be a windfall for another — if they have the trucks to handle it. “Third, it’s a reflection that carrier networks are still unbalanced, and while there are enough trucks out there, they are not necessarily in the right places for shippers,” Caplice concluded. As for future freight volumes and rates, growth in both should continue, barring further shutdowns due to the pandemic. One result of the shipment turmoil is that some shippers will be looking for shorter contract periods, providing them flexibility to change with the market. Whatever the source of the data, it appears shipments are increasing — and so are the rates paid to haul them. Optimism should be tempered by the continuing pandemic and the upcoming election, but the market is moving in the right direction.

ACT’s For-Hire Trucking Index for July highlights driver shortage

The Trucker News Staff - September 1, 2020

COLUMBUS, Ind. — The latest release of ACT Research’s For-Hire Trucking Index, which includes data for July, showed an across-the-board downtick in the diffusion indexes after a record surge in June, although most measures remained well above the neutral mark of 50. July’s seasonally adjusted volume index fell six points to 64.3, while pricing and productivity were at 60.3 and 61.5, respectively. Capacity and driver availability indexes both contracted, coming in at 48.1 and 39.3, respectively — highlighting that driver capacity is tighter than equipment capacity. “The sharp drop in driver availability as freight volumes are recovering explains the need for higher rates that we’re seeing in the spot market,” said Tim Denoyer, vice president and senior analyst for ACT Research. “Consistent with industry estimates that CDL issuance this year is tracking about 40% below normal levels, the driver index has tightened sharply. We see this as the primary capacity constraint presently, as equipment remains available at this point,” he continued. “Even before Hurricane Laura, which is adding further stress to the trucking markets, this driver shortage has significantly tightened the market balance.” ACT Research’s monthly For-Hire Trucking index is a survey of trucking-service providers. Responses are converted into diffusion indexes, where the neutral, or “flat,” activity level is 50. For-hire executives who want to participate in the survey can send queries to trucks@atcresearch.net. Survey participants receive a detailed monthly analysis of the survey data, including volumes, freight rates, capacity and productivity and purchasing intentions, plus a complimentary copy of ACT’s Transportation Digest report.

Tropical storms stir up spot market activity along Gulf Coast as shippers reposition freight

The Trucker News Staff - August 26, 2020

BEAVERTON, Ore. — Spot truckload freight activity jumped last week, Aug. 17-23, as shippers and logistics companies began to reposition freight ahead of two major storms along the nation’s Gulf Coast. The number of loads posted on the DAT One load board network increased 9% and truck posts ticked up 2% compared to the previous week, pushing national average spot rates to their highest levels since July 2018. Tropical Storm Marco made landfall Monday, Aug. 24, while Laura is expected to impact the Louisiana and Texas coastline as a catastrophic Category 4 hurricane late today (Wednesday, Aug. 26) or early tomorrow. DAT reports the following national average spot truckload rates so far for August: Van: $2.20 per mile, 17 cents above the July average; Flatbed: $2.28 per mile, up 8 cents; and Refrigerated: $2.43 per mile, up 13 cents. These rates are rolling averages for the month through August 23 and include a fuel surcharge. DAT encourages those in the freight industry to keep an eye on these trends: Fuel prices: Hurricane Laura is forecast to reach the northwestern Gulf Coast along “Gasoline Alley,” a 375-mile stretch between Galveston, Texas, and New Orleans. This area is home to the single-largest concentration of oil refineries and chemical plants in the country. In the weeks after Hurricane Harvey hit the Houston area in August 2017 and caused refineries to shut down, the price of both diesel and gasoline rose more than 15 cents a gallon. Repositioned freight: DAT’s seven-day Market Conditions Index shows high demand for truckload van capacity along the Gulf Coast as shippers looked to reposition freight ahead of two major storms the week of Aug. 17-23. The biggest price increase on the Top 100 van lanes by volume last week was the lane from Houston to New Orleans, where the average rate rose 17 cents to $3.19 per mile. Port traffic is curtailed: The ports of Houston and New Orleans anticipate closures through Thursday, Aug. 27, as Hurricane Laura makes landfall. Houston handles nearly 70% of all Gulf Coast container traffic. Volumes tumble on major van lanes: Average spot van rates were higher on 58 of DAT’s Top 100 lanes by volume, but the number of loads moved on those lanes fell 30.4%. Despite declining volumes, spot van rates were up out of several key markets compared to the previous week: Houston: $2.10, up 2 cents Chicago: $2.55 per mile, up 8 cents Memphis: $2.73, up 3 cents Los Angeles: $3.23, up 4 cents Columbus, Ohio: $2.74, up 7 cents Van rates are still high: Spot van rates are at the highest level seen in the past five years for mid-August and currently up 25% year over year. DAT’s Ratecast predictive model expects van rates to plateau in the $2 to $2.05 per mile range over the next four weeks. Reefer rates increase: Average spot reefer rates were higher on 37 of DAT’s top 72 lanes by volume on a 10.7% decline in the number of loads moved on those lanes. Rates were neutral on 26 lanes and lower on seven lanes compared to the previous week. Two notable lanes: Dallas to Columbus rose 23 cents to $2.45 a mile, reflecting shifts in supply chains; and Elizabeth, N.J., to Boston remained at an average of $5.23 a mile for the second week in a row. Harvest shipments are winding down: The U.S. Dept. of Agriculture reported that seasonal truckloads of domestic produce decreased by 3% the week of Aug. 17-23 and 12% for imported truckload shipments, just under 2,500 fewer loads of produce compared to the same week in 2019. Bullish on flatbeds: As strong as spot market demand and rates have been recently for vans and reefers, the longer-term outlook for flatbeds is more bullish. As a weekly average, the national flatbed load-to-truck ratio was 42.2, touching above 40 for the first time since the week of July 21, 2018. That’s on the strength of new home construction, which jumped up 23% in July, according to the U.S. Census Bureau. Building permits also rose by 19% in July, fueled by low interest rates. All of these are positive indicators for future building activity, which will create more demand for flatbeds. FEMA loads: The U.S. Federal Emergency Management Agency (FEMA) approved a preemptive disaster declaration ahead of Laura making landfall. To learn more about FEMA loads and emergency freight on the spot market, click here.

UrgentCare Travel, EROAD work to provide convenient health services for OTR drivers

The Trucker News Staff - August 21, 2020

MIAMI and TUALATIN, Ore. — Thanks to a partnership between UrgentCare Travel (UCT) and EROAD that offers medical services to EROAD customers, more drivers now have access to convenient, affordable health care. UCT is a medical-clinic network focused on providing health care for professional truck drivers and fleets, while EROAD is a global provider of fleet management, electronic tax reporting and ELD compliance solutions. According to UCT, studies show that 48% of professional drivers have a chronic condition, such as diabetes, hypertension or obesity, that restricts their commercial driver’s license (CDL) to one year or less. Due to the lack of convenient medical care on the road — where drivers work — and the high costs of health insurance and medical care, many drivers do not treat their chronic conditions as needed. This only impacts their ability to drive, but it also costs the trucking industry billions of dollars annually in lost productivity. “We applaud EROAD in taking a leadership position in working with their customers to keep drivers healthy and on the road,” said Siva Suresh, UCT’s founder and CEO. “EROAD’s attention to making their solutions easy to use and dependable combined with UCT’s affordable and convenient health services will make drivers and fleets healthier and more productive.” UCT Health is an affordable health membership program that offers no deductible and no co-pay services, including dedicated health coaches, personalized care plans for chronic conditions, DOT physicals and drug screens, primary-care services such as sick visits and annual exams, COVID-19 testing, in-clinic lab services including lipid profiles and A1C testing, and mail-order pharmacy services. Through this new partnership, EROAD customers will be able to access UCT Health services anywhere while on the road via telehealth and UCT’s walk-in medical clinics, which are adjacent to Pilot and Flying J Travel Centers. “We’re pleased to partner with UrgentCare Travel, as its focus on driver health and wellness is a great extension of EROAD’s focus on the driver experience,” said Norm Ellis, president of EROAD North America. “Drivers experience a lot of stress and it can be difficult to keep up a good diet and exercise on the road. Plus, they’re dealing with the challenges of COVID-19. This partnership will help our customers help their drivers stay heathier, which is important to their families and their career.” EROAD customers can register for UCT Health on the EROAD website, or contact customer service for more information.

USDOT awards nearly $80 million in grants to improve commercial motor vehicle safety

The Trucker News Staff - August 19, 2020

WASHINGTON — The U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) has awarded nearly $80 million in grants to states and educational institutions to enhance commercial motor vehicle (CMV) safety, the agency announced Aug. 19. “These awards of nearly $80 million represent the highest funding level for these critical safety grants to enhance commercial motor vehicle and road safety,” said U.S. Transportation Secretary Elaine L. Chao. The grants awarded by FMCSA include: $45 million in High Priority (HP) grants to enhance states’ commercial motor vehicle safety efforts, as well as advance technological capabilities within states. $32.7 million in Commercial Driver’s License Program Implementation (CDLPI) grants to enhance efforts by states to improve the national commercial driver’s license (CDL) program. $2 million in Commercial Motor Vehicle Operator Safety Training (CMVOST) grants to 20 educational institutions to help train veterans for jobs as commercial bus and truck drivers. “This critical funding will support FMCSA’s state and local safety partners, and illustrates the Trump administration’s commitment to reducing crashes and improving safety on America’s roadways. These funds will go directly to where they are needed the most — our states, local communities, and educational institutions,” said Jim Mullen, deputy administrator for FMCSA. FMCSA’s HP grant program consists of HP-Commercial Motor Vehicle (HP-CMV) grants and HP-Innovative Technology Deployment (HP-ITD) grants. HP-CMV grants are designed to provide financial assistance to state commercial vehicle safety efforts, while HP-ITD grants provide financial assistance to advance the technological capability and promote the deployment of intelligent transportation system applications for CMV operations. A full list of this year’s HP grant recipients can be found here. FMCSA’s CDLPI grant program provides financial assistance to states to achieve compliance with FMCSA regulations concerning driver’s license standards and programs. Additionally, the CDLPI grant program provides financial assistance to other entities capable of executing national projects that aid states in their compliance efforts, which will improve the national CDL program. A full listing of this year’s CDLPI grant recipients can be found here. FMCSA’s CMVOST program awards grants to a variety of educational institutions that provide commercial truck and bus driving training, including accredited public or private colleges, universities, vocational-technical schools, post-secondary educational institutions, truck-driver training schools, associations, and state and local governments, including federally recognized Native American tribal governments. A full listing of this year’s grant recipients can be found here. In total, nearly 60% of FMCSA’s funding is provided to states and local communities through grant funding, all intended to enhance commercial vehicle safety. To learn more about FMCSA grants, click here.

Roadmaster Drivers School set to open new training center in Columbus, Ohio

The Trucker News Staff - August 13, 2020

PETERSBURG, Fla. — Looking to address Ohio’s high unemployment rate and a shortage of truck drivers, Roadmaster Drivers School is opening a new training facility in Columbus. Columbus’ new custom-built school will open its doors and host its first class Aug. 17. The 10,000-square-foot facility sits on 12 acres in the state capital and will be able to serve approximately 750 students each year. Roadmaster has operated training facilities in Columbus since 1995. Meanwhile, the Ohio State Senate is considering a bill that would increase training opportunities to meet the state’s growing demand for additional truck drivers. House Bill 222, which passed the Ohio House of Representatives with strong bipartisan support, would provide a tax credit for companies that invest in truck-driver training, equal to a total of one-half of the training expenses. “Ohio legislators are to be commended for this timely and forward-looking initiative,” said Brad Ball, president of Florida-based Roadmaster Drivers School. “New truckers are urgently needed in Ohio, and fortunately job-seekers are responding. We are already seeing a significant upsurge of demand for training at our new facility in Columbus.” Ball noted that demand for training has been growing for some time due to pandemic-driven increases in unemployment. The jobless rate in Ohio, for example, which was at 4.1% in January of this year, rose to 17.6% in April. The rate has dropped somewhat since then but is still extremely high — more than 35,000 Ohioans filed new unemployment claims for the week ending July 11, with 429,000 filing claims for continued unemployment during the same period. In this context, not just in Ohio but nationwide, trucking stands out as an island of employment stability and opportunity, he said. The training required to enter the profession is relatively brief — about four weeks, according to Ball. “Every day, nationally and in our new facility in Columbus, we’re hearing from people who want to get off the layoff-and-furlough roller coaster and build a new, secure future for themselves,” he said.

Spot truckload rates rose amid supply-chain imbalances during week ending July 26

The Trucker News Staff - July 31, 2020

BEAVERTON, Ore. — Spot truckload freight rates continued to increase last week, bucking typical trends for late July, according to the DAT Spot Truckload Market Summary for the week ending July 26. The summary is produced by DAT Solutions, which operates DAT One, the industry’s largest load board network. The number of spot dry van, refrigerated, and flatbed loads on DAT One decreased 3% during the week ending July 26 while the number of trucks posted increased 2%. Spot rates, which usually taper off during July, have been elevated as shippers and freight brokers turn to the spot market to help manage imbalances in their supply chains. DAT shows the following national average spot rates for July: Van: $2.03 per mile, up 22 cents compared to June. Flatbed: $2.19 per mile, up 12 cents. Reefer: $2.29 per mile, up 14 cents. These rates are rolling averages for the month through July 26. They include a fuel surcharge. National average month-to-date line-haul rates (excluding a fuel surcharge) increased 1 cent for vans and flatbeds at $1.83 and $1.95 per mile, respectively, compared to the previous week. The average spot reefer line-haul rate was unchanged at $2.07. Trends to Watch Spot line-haul van rates are above 2018 levels. The national average spot line-haul van rate (excluding fuel surcharges) reached $1.88 per mile last week, equal to the same week in 2018 when capacity was considerably tighter. Load posts on DAT One were roughly 30% higher year over year as a result of shippers using the spot market more due to pandemic-related disruptions. DAT’s Ratecast forecasting model expects dry van rates to plateau through the end of August, although there is upward pressure due to continued freight imbalances, uneven surges in demand for certain commodities, and overall supply chain dislocation. Retail lanes are busy. Average spot van rates were higher on 50 of DAT’s top 100 lanes by volume compared to the previous week and pricing increased on several key lanes: Memphis to Atlanta: $3.01 per mile, up 45 cents. Houston to Oklahoma City: $2.55 per mile, up 19 cents. Stockton, California, to Salt Lake City: $3.16 per mile, up 12 cents. DAT’s Market Conditions Index (MCI) shows average rates moving higher in larger retail freight hubs including Ontario, California, a bellwether for truckload activity given its proximity to the ports in Los Angeles. Following a surge in imports in June, spot van loads out of Ontario were up 4% week over week and increased for the fourth week in a row as freight moves to warehouse hubs such as Phoenix, Dallas, and Stockton, California. Produce imports arrive in the East. Volumes increased on half of DAT One’s top 72 reefer lanes. East coast import markets, including Philadelphia and Elizabeth, New Jersey, were up a combined 6% week over week and 29% month over month, as produce from the southern hemisphere arrives by sea. Harrisburg, Pennsylvania, Atlanta, Boston, Lakeland, Florida, and Miami were the top five destinations for reefer freight from Philadelphia and Elizabeth last week and reefer spot rates out of both markets were strongest in the 300-mile length of haul range. DIY and home construction boosts flatbed volume. Flatbed freight volumes are expected to remain high based on data from the U.S. Department of Commerce, which reported a 17% increase in new home construction in June. Expect ongoing demand to haul standard framing dimension softwood lumber as wholesalers and distributors look to stock depleted inventories.

Widespread use of autonomous vehicles at least a decade away, say MIT researchers

The Trucker News Staff - July 22, 2020

CAMBRIDGE, Mass. — Despite recent progress of the vehicle-automation industry, it will be at least a decade before fully automated vehicles, with no driver on board, are deployed on a large scale, according to a new research brief released by the MIT Task Force on the Work of the Future. The brief is part of a series of subject-specific research projects by MIT faculty. “Automated driving technologies have promised to disrupt urban mobility for a long time. Our research explores the impact of autonomous vehicles on jobs and offers policy recommendations that will ease transitions and integration,” said David Mindell, co-chair of the task force, professor of aeronautics and astronautics, Dibner professor of the history of engineering and manufacturing at MIT, founder and CEO of Humatics. Mindell co-authored the brief, Autonomous Vehicles, Mobility, and Employment Policy: The Roads Ahead, with John Leonard, task force member and MIT professor of mechanical and ocean engineering, and Erik Stayton, an MIT doctoral candidate in history, anthropology and science, technology and society. The brief considers the current state of automated driving technology and its potential impact on jobs. Despite substantial recent progress by the industry, fully automated driving systems that have no safety driver onboard will take at least a decade to deploy over large areas, even in regions with favorable weather and infrastructure; winter climates and rural areas will experience still longer transitions. Expansion will likely be gradual and will happen region-by-region in specific categories of transportation, resulting in wide variations in availability across the country. According to the researchers, the rollout time for fully autonomous vehicles provides time for sustained investments in workforce training that can help drivers and other mobility workers transition into new careers that support mobility systems and technologies. Transitioning from current-day driving jobs to these jobs represents potential pathways for employment, as long as job-training resources are available. While many people believe that increased automation will bring greater impacts to the trucking industry than to passenger-carrying vehicles, the impact on truck-driving jobs is not expected to be widespread in the short term, the report notes. Truck drivers do more than simply drive; because of this, the presence of a human driver within even highly automated trucks would remain valuable for other reasons such as loading, unloading and maintenance. The brief’s policy recommendations include strengthening career pathways for professional drivers, increasing labor standards and worker protections, advancing public safety, creating good jobs via human-led truck platooning, and promoting safe and electric trucks. Policymakers can act now to prepare for and minimize disruptions to the millions of jobs in ground transportation and related industries that may come in the future, while also fostering greater economic opportunity and mitigating environmental impacts by building safe, accessible mobility systems. AV operations will benefit from improvements to infrastructure. Investing in local and national infrastructure and forming public-private partnerships will greatly ease integration of automated systems into urban mobility systems. “Human workers will remain essential to the operation of these systems for the foreseeable future, in roles that are both old and new,” Leonard said. “Ensuring a place for human workers in the automated mobility systems of the future is a key challenge for technologists and policy makers as we seek to improve mobility and safety, and thereby opportunity, for all.”

Drivers asked to make nominations for 2021 ‘Best Fleets to Drive For’

The Trucker News Staff - July 10, 2020

ALEXANDRIA, Va., and MARKHAM, Ontario — Truckload Carriers Association (TCA) and CarriersEdge are now accepting nominations for the 2021 Best Fleets to Drive For contest. During the nomination period, which began July 6 and continues through Sept. 6, professional drivers and independent contractors are encouraged to nominate their companies for the honor. “The Best Fleets to Drive For program is one with which each and every carrier wishes to align themselves,” said John Lyboldt, president of TCA. “Year after year, we’re honored to showcase these very deserving fleets. Especially this year, we want to recognize those that have provided an excellent workplace for drivers throughout the COVID-19 pandemic.” For the first time in the contest’s 13-year history, the nomination dates are earlier than normal, because TCA’s annual convention, Truckload 2021, will be held in January. This year’s contest is sponsored by EpicVue and TruckRight. Professional drivers can find out more about the Best Fleets to Drive For contest or nominate a company here. When nominating a fleet, the driver highlights things about the company’s culture that he or she likes, such as outstanding compensation, safety practices, benefits, equipment, training, etc. If the company accepts the nomination and agrees to participate, the survey then digs deeper into the fleet’s policies and practices, bringing to light the company’s practices that are innovative and/or successful. To be eligible, a fleet must operate 10 or more tractor-trailers in the U.S. or Canada; TCA membership is not required. Participating fleets will provide information about their current human-resource practices, both electronically and through phone interviews with senior management and a random sampling of drivers. The top 20 finishers will be identified as Best Fleets to Drive For. From this pool, fleets will be divided into “small” and “large” fleet-size categories, and two overall winners will be selected. The Top 20 winners, along with the two overall winners in the small and large fleet categories, will be recognized Jan. 23-26 during TCA’s annual Truckload 2021 convention in Nashville, Tennessee. In late August, fleets that have been nominated (or believe they will be nominated) are invited to learn more about the program requirements through a free, interactive webinar. The webinar will outline the questions that surveyors will ask, data requirements and methods for collecting information more easily. “This program evolves every year to reflect changes in the industry, and this is no different,” said Jane Jazrawy, CEO ofCarriers Edge. “Throughout the pandemic, we’ve seen fleets go above and beyond to support their drivers, and we’re excited to start capturing more of those details through this process.” To view best practices from last year’s program as well as profiles of the overall winners, click here. Drivers and companies can also follow the contest on social media by searching the hashtag #BestFleets21.

Find out how to become an owner-operator through OOIDA’s ‘Truck to Success’ online business series

The Trucker News Staff - July 10, 2020

GRAIN VALLEY, Mo. — Interested in the ins and outs of being an owner-operator? The Owner-Operator Independent Drivers Association (OOIDA) has scheduled an online training series to help those interested in starting a small trucking business. “Truck to Success,” scheduled for Oct. 26-28, offers three days of intensive training classes to help professional drivers take their first steps toward becoming an owner-operator. The live video conferences will feature participant interaction with trucking experts who are dedicated to helping drivers become successful business owners. “For a variety of reasons, many businesses tend to fail within the first year of operating,” a July 8 press release from OOIDA stated. “Let us help you navigate through the change from a company driver to an owner-operator, or simply help with your desire to have a more successful business.” To help improve new owner-operators’ chances for success, the “Truck to Success” series outlines the steps of transitioning from a company driver to an independent contractor. Topics will include: Developing a business plan that works for you; Buying a new or used truck; Equipment financing; Insurance; Pros and cons of running under your own authority or leasing on to a carrier; New-entrant safety audits and compliance reviews; Drug and alcohol testing requirements; Permits and licensing; Taxes and business structures; Brokers and factoring; and Current issues affecting the industry. Registration is open to anyone, and OOIDA membership is not required. The cost is $250 for each participant with the option of adding a guest for $150, but only for those that require an additional, separate login. For more information or to register for the training series, click here.

After April’s ‘worst reading in history,’ ACT’s May For-Hire Trucking Index rebounds to neutral territory

The Trucker News Staff - June 26, 2020

COLUMBUS, Ind. — The latest release of ACT’s For-Hire Trucking Index, with May data, showed significant improvement in all five diffusion index measures tracked. May’s Volume Index rose from 19.3 in April to 50.2, with capacity also at the neutral 50 mark, and pricing and productivity both in the mid-40 range. The ACT For-Hire Trucking Index is a monthly survey of for-hire trucking service providers. ACT Research converts responses into diffusion indexes, where the neutral or flat level is 50. “After the worst reading in survey history in April, the volume index increased 30.9 points in the largest month-over-month increase in survey history in May,” said Tim Denoyer, vice president and senior analyst for ACT Research. “While we’d characterize this as neutral territory, and it may be supported by inventory rebuilding following the draw-down in March and April, it is nonetheless a much more stable volume environment.” May’s uptick in freight rates could signal the beginning of a return to “normal” for the industry. “The record 21.2-point recovery in May, also the largest month-over-month increase in survey history, to 43.0 means that despite effectively recovering all the ground lost in April, the pricing index remains in contraction territory,” Denoyer said. “And while still tentative, the trends of a strong rebound in freight volumes as a capacity tightening cycle has begun shows a bottoming process is well under way.” Denoyer also explored the overall picture for the trucking industry. “It may be difficult to discern from the chart, but the supply-demand equation rebalanced in May, returning to 50.2, from 26.9 in April, as recovering demand overwhelmed the more modest uptick in supply, and shrinking Class 8 retail sales suggest equipment capacity will continue to tighten, but with sidelined drivers likely coming back, and lenders extending loans, it may be a while before the market really tightens,” he said. “In short, given the magnitude of the economic shock from the pandemic, the road back might be a long one.” The ACT Freight Forecast provides forecasts for the direction of truck volumes and contract rates quarterly through 2020 with three years of annual forecasts for the truckload, less-than-truckload and intermodal segments of the transportation industry. For the truckload spot market, the report provides forecasts for the next 12 months. In 2019, the average accuracy of the report’s truckload spot rate forecasts was 98%. The ACT Research Freight Forecast uses equipment capacity modeling and the firm’s economics expertise to provide unprecedented visibility for the future of freight rates, helping businesses in transportation and logistics management plan for the future with confidence.

A peek into the future: Autonomous trucks are coming, but drivers will still be needed

Cliff Abbott - June 22, 2020

When it comes to autonomous vehicles, we’re in Level 3, almost to Level 4. That’s according to the Society of Automotive Engineers (SAE) “J3016 Levels of Driving Automation” table, which defines the steps going from total human control (Level 0) to total machine control (Level 5). Back in the 1990s, when trucks first came out with automated features such as blind-spot warnings, the driver was required to react. All the “system” could do was beep, vibrate or light up a warning light (or all of the above). That was Level 0. At Level 3, drivers have access to devices that steer, brake, accelerate and shift gears for the vehicle. They make the job easier, but the driver must be ready at all times to take over driving duties. Typically, these features are used on the open highway under good driving conditions, with the driver resuming control when leaving the interstate. Currently, testing is being done by multiple manufacturers on Level 4 trucks. These are trucks that can be programmed to drive themselves from point A to point B. Drivers won’t be needed — BUT the vehicles will only drive themselves under limited conditions. These vehicles may eventually still be equipped with steering wheels and floor pedals so they can be driven manually, or they may simply shut down when they can’t operate. At the present, floor pedals, steering wheels and real, human drivers are still present in these automated vehicles, just in case. Level 5 will happen when trucks can drive themselves in any conditions. So, how soon will drivers lose their jobs to robot trucks? “My cousin who’s 24, is a truck driver, and I tell him that he will (be able to) retire as a truck driver if he wants,” said Robert Brown, head of government relations and public affairs at San Diego, California-based Tu Simple. “The technology is truly transformative and exciting, but it isn’t a threat to anyone’s livelihood.” In partnership with United Parcel Service (UPS), Tu Simple is testing 40 autonomous trucks on routes in Arizona, New Mexico and Texas. “We currently run trucks from the UPS Phoenix facility to Tucson, then to El Paso, Houston and Dallas, the Texas triangle,” Brown explained in an exclusive interview with The Trucker. “Depending on the route, some trucks drive all the way to the distribution center; some get close and the driver takes control.” Those trucks are manned by experienced drivers, who are hired for more than their driving ability. “We hire 20- and 30-year veterans to come to Tu Simple,” Brown said. The testing involves learning so that automated systems can react to conditions that could vary every time out. Experienced drivers can point out incidents where the truck didn’t react properly or could have performed better, and the developers can tweak the system. It’s an ongoing process, but it won’t be long before testing gives way to actual use. When will this happen? “We’re looking at a 2024 to 2025 time period when it will get interesting,” Brown said. “That’s when an OEM will build a completely autonomous truck that’s Level 4 capable.” Once autonomous trucks are available for purchase, carriers will begin finding routes where they add value. “Implementation of Level 4 trucks will be regional, route specific and gradual,” Brown added. One reason for that is the quagmire of state and local laws and regulations. Each jurisdiction, in its own time, will issue rules for the use of new technology. Like other major changes in the trucking industry’s past, such as 53-foot trailers and 80,000-pound gross weight limits, acceptance will be piecemeal, and truckers will have to navigate a variety of requirements to stay legal. It’s already a problem. “We can operate in 21 states and test in 18 more. In 11 states we can’t run autonomous trucks,” Brown explained. For the UPS operation, Tu Simple stages its trucks in Arizona. That’s because they can’t be legally run in their home state of California. “The California DMV has been working on revising the rules since 2012, but we’re still waiting,” Brown said. Some jurisdictions will restrict where the trucks can operate, much like the restrictions on use of triple trailers in Indiana, Ohio and other states. Other decisions to use Level 4 autonomous trucks will hinge on factors such as climate, route difficulty, availability of staging areas, and other factors. For example, systems that depend on “seeing” the lines painted on the highway to steer the truck don’t work well when snow or ice obscures those lines, making self-driving vehicles a better fit for states with milder weather. “I-10 is the testing ground; the weather is favorable, and the states are legislatively friendly,” Brown explained. Perhaps the biggest question in the coming of Level 4 autonomous trucks is this: What happens to the driver? Brown believes the driver will still be at the wheel, but that the job will change. “In theory, we’re creating two driver jobs. One will pick up (the load), the autonomous truck will drive to the distribution point, and another driver will deliver,” he said. That means more driving positions that get the driver home daily. Even on long-haul routes, drivers will still be necessary to take control when conditions are unfavorable for autonomous driving. In addition, the driver’s thought process will still be necessary to monitor the performance of the vehicle when it drives itself. Doing this will take a different way of thinking, and training is already available for drivers who will be in command of the autonomous vehicles. Pima Community College in Tucson, Arizona, already offers a certification in autonomous vehicles, and other training centers are following suit. It may sound strange that special training is needed to “drive” a vehicle that does most of the work, but the ability to monitor the truck’s performance and accurately report issues requires a working knowledge of how the technology works. Brown expects that the need for drivers, already in short supply, will increase, and that autonomous trucks will fill some of that increased need rather than take away jobs. Tu Simple isn’t the only company working on this technology. “If you add our 40 trucks and all of the trucks from other technology companies out there, there’s maybe 100 trucks all together,” Brown said. Embark Trucks, based in San Francisco, is hauling freight for multiple companies and claims to have operated in rain and fog. Another San Francisco firm, Starsky Robotics, says it’s working to make trucks that are “remote controlled” by drivers for the first and last mile. Google spinoff Waymo’s Via autonomous truck is in the development stage in California and Arizona. When contacted, Waymo’s press representative declined to contribute to this article. Tesla is developing technology in electrically powered autonomous trucks. Tesla CEO Elon Musk made the news recently with a memo to employees that said it was “time to go all out and bring the Tesla semi to volume production.” The announcement jolted stock buyers, who pushed the price of one Tesla share to near $1,000. Other companies, including several truck manufacturers and engine-manufacturer Cummins, are also working on autonomous vehicles. Nikola is better known for its efforts to pair electric power and hydrogen fuel cells, but the trucks are equipped with Bosch control software and are expected to compete in the autonomous market. The next and final level of autonomous driving is Level 5, when vehicles will be able to drive themselves in any conditions without human intervention. Experts agree that those vehicles will eventually be here, but Tu Simple’s Brown doesn’t see it happening soon. “Level 5 trucks are most likely decades upon decades upon decades away,” he said. By then, autonomous trucks could be powered by nuclear engines, with anti-gravity technology that renders tires obsolete. It’s good to remember, however, that all of the vehicles driven around Orbit City by George Jetson in the famous “The Jetsons” cartoon were equipped with a steering wheel or joystick for manual steering.

Data shows major shift in driver turnover by freight sector before and after health crisis

The Trucker News Staff - June 10, 2020

SOUTH BEND, Ind. — Driver turnover rates spiked early in the first quarter of 2020 before they trended down in March to all-time lows, according to new research by Stay Metrics, a leading provider of driver retention tools for motor carriers. Historically, turnover has aligned with freight market conditions. When freight volumes rise and capacity tightens, drivers leave carriers at higher rates in search of new opportunities. Conversely, drivers tend to stay put during economic downturns. The new report by Stay Metrics’ Research and Analytics team, led by Bradley Fulton, Ph.D., shows a major shift in the turnover paradigm for the first quarter. Turnover spiked for all truckload sectors before the COVID-19 pandemic but not necessarily due to positive economic activity. Freight markets generally were healthy the first two months. The seasonally adjusted For-Hire Truck Tonnage Index from the American Trucking Associations, for example, recorded an increase of 0.1% in January and 1.8% in February. Some freight sectors experienced disruptions before the COVID-19 pandemic that could explain the turnover spike. The new Stay Metrics research report tracks turnover rates on a weekly basis to show how drivers responded to changing market conditions that directly impacted their pay. Key findings in the report are summarized below for each freight sector, where N = the number of carriers in each dataset. Turnover rates are annualized. Tanker (N=8) had comparatively higher turnover than other sectors. Rates spiked in the second week of January to 107.1% before the trendlines split for oil and gas haulers and food-grade haulers. In the third week of January, oil and gas haulers saw a sudden dip from 106.1% to 62.9%. The decline could be explained by the decrease in oil production in the United States which began in January and fell by nearly 7% in February, according the Energy Information Agency. Drivers in this sector may have transitioned to food-grade tankers and other industry sectors. In February, the turnover rate for oil and gas haulers jumped from 78% to 119.1% and stayed elevated during the middle three weeks of March (118%, 106.6% and 112.8%) before returning to 68.6% the last week. By contrast, the turnover rate of food-grade tank haulers increased slightly in early February to 93.6% and fell steadily through March to reach a low of 47.8% before a slight spike at the end of March to 68.6%. Flatbed (N=18) also had comparatively high turnover. This sector saw a substantial spike in the third week of January from 94.6% to 124.3%, followed by a noticeable dip in the fourth week of February from 91.0% to 62.9%. Rates increased in the second week of March from 70.2% to 98.3% and fell through the end of March to reach 57.2%. Reefer (N=9) saw a major spike in mid-February. Shipments of food and produce items were stable throughout the health crisis and may explain why drivers in this sector tended to stay with their carriers. By the end of the quarter, turnover reached a low of 42.6%. Dry van (N=15) also had comparatively low turnover. A substantial spike occurred the third week of February (51.0% to 64.0%) but dropped to 53.0% the next week and held steady through the last week of March. With driver turnover rates are at all-time lows, Stay Metrics’ Co-Founder and Chief Executive Officer Tim Hindes cautions motor carriers about developing a false sense of security. The culture of their companies has changed dramatically because of limited opportunities to interact with drivers in person. “Fleet executives and managers cannot fall asleep at the wheel,” said Hindes. “Now is the time to double down on retention efforts. Let drivers know they belong to a stable organization that is essential to the economy and also use this period to rebuild driver-focused cultures.” Stay Metrics Director of Research and Analytics, Dr. Bradley Fulton, concurs: “It is important to remember that many things can impact turnover, and that not all of them are within a carrier’s control. The impact of the coronavirus pandemic is one such factor. Overall carrier culture, however, is something every carrier has the power to influence. Understanding and acting to improve that culture is the best way to positively improve turnover in the long run.” Stay Metrics recently published their annual Stay Index Report, which utilizes responses from over 15,000 drivers to determine which factors most contribute to their commitment to a carrier, a leading indicator of turnover risk. To download Stay Metrics’ 2020 Stay Index Report, click here.

Truck OEMs retool to keep employees on the job, fight COVID-19 pandemic

Kris Rutherford - June 10, 2020

When COVID-19 rose to the forefront of the nation’s news early this year, the trucking industry found itself in high demand. Carriers, company drivers and owner-operators alike worked around the clock to deliver essential goods to all corners of the country. Consumers grabbed most of those goods before another delivery arrived. While the COVID-19 crisis put most available drivers and trucks on the road, at least for a while, the same didn’t hold true for operations at America’s largest truck-manufacturing plants. Demand for new Class 8 equipment had been trending downward since late 2018, and the pandemic erased industry executives’ hopes that the new decade would spur an increase in truck orders. However, the trucking industry employs some of the brightest engineers and technicians in the country. Likewise, they have the latest technologies at their disposal. It didn’t take long for several of top truck manufacturers to rethink their strategies and start working to help fight COVID-19. Over the past few months, numerous truck manufacturers have shifted priorities. International Truck, Volvo North America, Mack Trucks, Navistar and PACCAR Inc. took steps to retool and focus on battling the coronavirus. The companies worked to minimize layoffs, provided personal protective equipment (PPE) for truck drivers in need, and produced personal protective equipment for those high-risk workers outside the trucking industry. The ability of the nation’s major truck manufacturers to change gears on almost a moment’s notice is a testament to American ingenuity, company pride and corporate responsibility. First-quarter indicators PACCAR, parent to Kenworth Truck Co., Peterbilt Motors and DAF trucks, was the first major truck manufacturer to report first-quarter earnings. The impact of COVID-19 on revenue and profits was clear. While PACCAR’s companies claimed 38% of new Class 8 truck orders in March, inventories began to grow after the delivery of trucks ordered in 2019, suggesting a downturn in the market for new trucking equipment. On the other hand, PACCAR set a record for parts sales in the first quarter of 2020, an achievement likely caused by heavy use of older trucks in the early stages of the pandemic. Preston Feight, CEO of PACCAR, said the company’s primary concern is employee health. “Once we take care of that, we’ll ramp back up our production,” he said. PACCAR suspended operations at plants worldwide in late March, and three major U.S. facilities still remain closed. As these plants gradually reopen, PACCAR plans to take special precautions. All workers will be screened before entering PACCAR facilities and will be provided with personal protective equipment. PACCAR is also working to ensure its workplaces will allow for proper social distancing. Putting drivers first It is vital to deliver essential items such as food, paper products and health care supplies during any crisis. Still, carriers realize that unhealthy drivers will only delay deliveries. The first task for International Truck was to equip drivers with personal protective equipment to shield themselves from exposure to the virus. If exposed, the company hoped drivers would be healthy enough to self-quarantine and fight off COVID-19’s potentially deadly effects. International Truck joined forces with business partners Triumph Business Capital and TriumphPay to purchase and distribute $75,000 worth of personal protective equipment to International dealerships in the U.S. and Canada. The three companies realized the need for protecting drivers after hearing from truckers like Ingrid Brown, an owner-operator and company driver in Illinois. Brown has been a driver for more than 40 years. Throughout her career, she has been an advocate for the needs of drivers. “While large fleets have a solid distribution network to provide protection to their drivers, many drivers for smaller fleets and independent drivers, like myself, are on our own,” she said. Brown said that personal protective equipment, ranging from hand sanitizer to disinfectant wipes and masks, is hard to come by. International is doing an excellent service to drivers by helping them access essential safety items, she added. International Trucks also launched “International Cares,” a program that allows buyers to delay payments for six months on new purchases and offers free access to “International 360,” a tool to help carriers safely manage fleets. International has also provided its worry-free truck-maintenance program at no charge for up to nine months or 100,000 miles. In April, before launching “International Cares,” company service centers provided 10,000 meals to drivers who were working long hours to deliver COVID-19 relief supplies. Michael Cancelliere, president, Truck, Navistar, said his company’s efforts are just a few of many initiatives to help drivers whether the country is in crisis or not. “[PPE is] still sparse at stores,” he said. “This is just another way we can show that International cares, and we’re with you for the long haul.” Retooling to defeat an invisible enemy Companies such as the Volvo Group and its subsidiary, Mack Trucks, are using the slowdown in truck manufacturing to design, test and produce personal protective equipment to help medical facilities and workers in other high-risk occupations. “Our employees and communities are extremely important to Volvo Trucks,” said Peter Voorhoeve, president of Volvo Trucks North America. “We want to do what we can to help during the current situation.” Volvo has taken steps using engineers and assembly-line employees to design and manufacture personal protective equipment. The company has also provided financial and in-kind donations to nonprofits that are battling the crisis. Volvo’s facilities in Greensboro, North Carolina; Dublin, Virginia; and Hagerstown, Maryland, have taken the lead in the company’s efforts to use its ingenuity and technology to meet new challenges posed by COVID-19. In one plant, employees from various departments teamed to design prototype face shields in cooperation with medical professionals. The face shield, team leaders said, is one of the most challenging pieces of equipment to find in the area. With the help of 3-D printers, Volvo is now producing face shield headbands and ear guards. Employees working from home have access to 3-D printers and provide them for delivery to area hospitals and nursing homes. Likewise, Volvo is donating healthy snacks to childcare providers. “The ingenuity of employees at the Hagerstown facility has never been more evident than during COVID-19,” said the facility’s vice president of powertrain production, Marcus Minkkinen. Using the same 3-D printing technology, employees at other Volvo locations are also manufacturing personal protective equipment. In addition, Volvo recently donated $68,000 to nonprofits serving the area of its North Carolina facility. “It’s great to see the drive and commitment from our employees at several Volvo facilities,” Voorhoeve said. Like Volvo Trucks North America, Mack Trucks has been manufacturing personal protective equipment at its Lehigh Valley Operation (LVO) plant in Pennsylvania. “The Mack Team is committed to doing what we can to help the communities in which we live and work,” said Rickard Lundberg, vice president and general manager at LVO. He noted that producing PPE is just another example of the company rising to the challenges of fulfilling vital needs — problems it has accepted for over 120 years. Going beyond delivering freight The steps major truck manufacturers have taken in recent months may have taken their employees out of their comfort zones. Still, the trucking industry employs some of the brightest and most qualified professionals in the country, and they regularly adapt to changing government regulations for equipment and shifting market forces. Using the best of the best allows truck manufacturers to rise up and become a driving force when many carriers are sidelined. Independent truckers like Ingrid Brown not only inspire manufacturers to reach new heights but also support their efforts. With personal protective equipment hard to come by, Brown said knowing that truck manufacturers are assisting in taking care of drivers offers comfort. “I can protect myself, assist in slowing the spread of this virus and still do my job,” she said.

The timing is always right to improve fuel mileage

Cliff Abbott - June 10, 2020

Fuel prices are down. Way down. That’s good, right? The price war waged by Russia and Saudi Arabia, coupled with worldwide bans on air travel and reduced shipping due to manufacturing shutdowns, has resulted in a steep drop in demand for petroleum products. The resulting glut of crude oil on the market depressed market prices to levels rarely seen since the early 1970s. Since the 1970s, only once, between November 1998 and January 1999, did the barrel price for crude drop below $20. Until COVID-19. When crude prices bottomed out in 1998 and 1999, trucking enjoyed national average diesel fuel prices below $1 per gallon, according to the U.S. Energy Information Administration. This time around, $2.39 was as good as it got nationally, with the lowest recorded price being $2.17 per gallon in the Gulf Coast region. With prices this low, it’s tempting to forget about all those fuel-conservation habits. Going few more miles per hour saves a little time, and idling, where legal, isn’t a problem, either, right? Unfortunately, freight rates have fallen faster than diesel prices. Spot market rates have dropped far enough to spark a three-week protest in Washington, D.C., and other shorter events in cities around the country. Some drivers have parked their trucks, waiting for rates to come back up to a level that permits them to at least break even. Those low diesel prices have another consequence. As fuel prices fall, so do fuel surcharge payments. In some cases, they’ve fallen to zero. For owner-operators who are leased to a carrier at a set rate per mile, low diesel prices can be a windfall they don’t often see, if they aren’t negated by fuel surcharge losses. For those paid by load-revenue percentage and those running under their own authority, cheap fuel is about the only positive news in a negative market. Still, fuel is very likely to be the greatest expense of an owner-operator’s business. A trucker that runs 10,000 miles per month (that’s 120,000 miles per year) and averages 6 miles per gallon of fuel will burn 20,000 gallons in a year’s time. At the current low national average of $2.39 per gallon, that’s still a whopping $47,800 per year in fuel cost. An increase in fuel efficiency of one-half mile per gallon lowers annual fuel consumption to 18,462 gallons. That’s 1,538 gallons of diesel someone doesn’t have to buy, and $3,676 that isn’t spent. That’s a set of tires with some change left over, or maybe a truck payment or two. Another way to look at cost savings is on a per-mile basis. A gallon of diesel fuel, at $2.39 and 6 miles per gallon, yields a fuel cost of $0.398 per mile. Increasing fuel mileage to 6.5 miles per gallon drops the fuel cost per mile to $0.368, saving three cents a mile. Lowering operating cost by three cents a mile provides a little more leeway on loads, and that can that can be profitable — very important when freight rates are at rock bottom. Many drivers can improve fuel mileage by .5 mile per gallon simply by adjusting their driving habits. Driving a little slower, minimizing time spent idling and using cruise control are helpful. Maintaining a proper following distance helps minimize how often the brakes are applied followed using the throttle to gain back speed. There are products on the market that help increase fuel efficiency, too. Wheel covers, flow-through mudflaps, and aerodynamic devices for wheels, according to manufacturers, are enough to provide up to 5% in fuel savings and pay for themselves before the first year of ownership is complete. Wind fairings, whether cab extenders or cab-top, help cut costs. Low-profile tires with reduced rolling resistance help, too. That $3,676 savings? When fuel prices go up — and they will — so do the savings. You’ll keep more of any fuel surcharges, too. It may be difficult to find the cash for aero improvements when rates are down, but improving fuel mileage isn’t a “now-or-never” proposition. Fuel efficiency should be considered in every purchase decision and in many driving decisions. Options that add weight to your truck also increase its fuel consumption. Chrome accessories can increase wind resistance, dropping fuel mileage. So, even though fuel is less expensive right now, it may be a good time to take a look at managing your fuel efficiency. Over time, a little savings can add up to big dollars.

Trucking through COVID-19: Driver sees a good change coming out of a bad time

The Trucker News Staff - May 28, 2020

GREELEY, Colo. — “The worst of times can bring about the best of changes.” That may sound like a line from a Charles Dickens book, but it’s actually an observation from longtime driver Mark Salcedo. Delivering food in a time of crisis, he has witnessed an attitude change for the better toward truckers as the nation realizes just how essential they are. “It reminds me of the old days,” said Salcedo. “My grandpa started a truck line in the ’60s, and growing up, I spent a lot of summers on the road with my dad. Back then, people had enormous respect for drivers, but much of that’s been lost. These days, people see us as more of an annoyance, but this situation has helped open their eyes.” Salcedo described the outpouring of support he’s seen through acts of kindness coming from complete strangers, such as those giving out care packages at rest stops. However, even more support has come from the people Salcedo regularly interacts with — those at truck stops and restaurants, docks and receiving departments, and especially, his own company, JBS Carriers. “JBS is great. I originally planned to work here just one year. Now, I’m about to start my fifth, and I even mentor trainees,” he laughed. “This company takes care of its own — always, but even more right now,” Salcedo continued. “They’re paying for cleaning supplies, providing masks and gloves, and doing lots of things that make their jobs harder, but keep us safer.” That’s not to say that driving during a pandemic has been a cruise down Easy Street. Along with extra health precautions and risks, there have been logistical challenges. “Traffic is down on the road, but up at distribution centers,” Salcedo said. “They’re working hard, but some are pretty jammed.” Basic things such as parking, getting meals and taking a shower have also been harder as closures or restrictions reduce access. But the most difficult part for Salcedo has been the isolation. “I usually stop at home on every trip to visit my dad and son, but I’ve had to keep my distance. Not getting to be with them has been tough,” he said. That’s why the support Salcedo has received on the road is so critical, and why he’s hopeful it’ll be a turning point in how drivers are viewed and treated. “Our work automatically puts us at social distance from family and friends, but that’s what it takes to provide for them and for everyone,” he said. “I think that’s a good lesson that’s come out of a bad time. One that will be remembered long after this is past.” Story by Dave Ballew.

ATA study shows company drivers’ average pay increased by $6,000 between 2017-2019

The Trucker News Staff - May 26, 2020

ARLINGTON, Va. — The American Trucking Associations (ATA) on May 21 released the latest version of the association’s Driver Compensation Study, which showed average driver pay, including bonuses, rose nearly $6,000 in 2019 since the last study in 2017. “These results show that fleets did exactly what we would expect them to in the face of a tightening market for drivers. They raised pay and increased benefits in order to attract talent,” said Bob Costello, chief economist for ATA. According to the survey, which was based on data from 2019, the average pay for truckload national, irregular route solo van drivers was roughly $58,000, up $6,000 from 2017. “We saw large carriers hire more entry-level drivers in 2019, including drivers directly from driver-training school, which lowered the average pay for these carriers, but they did not reduce pay rates. It was just a different driver-experience pool,” Costello said. Fleets that responded to the survey also reported offering significant benefit packages, which included paid leave, insurance, meals and other incidentals, and retirement plans, to attract drivers. For example, more than 90% of truckload carriers, less-than-truckload carriers and private fleets surveyed said they offered drivers paid leave and health insurance. “What these figures show is that being a truck driver can be a path to a middle-class lifestyle for millions of Americans,” Costello said. “With the long-term impacts of the COVID-19 pandemic and subsequent economic crisis not yet fully clear, we can say that a career in trucking could be a well-paying solution for some of the millions of Americans who have lost their jobs so far this year.”

Freight rates, volumes slip, according to latest For-Hire Trucking Index

The Trucker News Staff - April 28, 2020

COLUMBUS, Ind. – Last week ACT Research released the latest For-Hire Trucking Index, which included March data. The index showed contraction in both volumes and freight rates, now at 42.4 and 43.2, respectively. Productivity, while neutral at 50.0, was likely supported by the temporary pantry-stocking phenomenon. “Because of the talk surrounding a surge in freight driven by pantry stocking, the volume index decline was somewhat surprising, but likely reflects the start of shutdowns late in March,” said Tim Denoyer, vice president and senior analyst for ACT. “COVID-19 is adding a new level of pricing pressure due to the sharp decline in load volumes into an already overcapacitized market,” he said regarding the drop in freight rates. “Our for-hire carriers continue to show better capacity discipline than the industry at large, which we see as a good leading indicator of tighter capacity down the road.” Denoyer noted that, in looking at the overall picture, the drop in the supply-demand balance reading accelerated in March at 44.9 after a “modestly negative” seasonally adjusted reading of 48.8 in February. “The cyclical bottom that was being built prior to COVID-19 has been laid low by the health crisis,” he said. “Fleets are taking aggressive actions to protect their people, including following CDC (Centers for Disease Control and Prevention) guidelines, implementing virtual meetings and orientations, limiting the use of cash, and finding creative ways to procure sanitizer.” In other market-research news, ACT’s Alternative Fuels Quarterly shows that retail sales of Class 8 natural gas trucks in U.S. and Canada showed gains for January and February 2020. “Sales of natural gas-powered vehicles as reported by the six major truck OEMs, who account for approximately 60% of the heavy-duty natural-gas market, were mixed in the December 2019 through February 2020 time period,” said Steve Tam, vice president of ACT Research. “Through the first two months of 2020, reporting manufacturers of natural gas-powered Class 8 units rose 29% year to date compared to the first two months of sales in 2019. For comparison, total U.S. Class 8 sales were down 23% for the same period.” Tam continued, noting that researchers had expected the 2020 natural-gas market to drop on a unit basis but increase in penetration because of the shrinking of the Class 8 market. “However, COVID-19 is wreaking havoc on both the economy and the commercial vehicle market, leading ACT to cut not only the total Class 8 forecast, but also the Class 8 natural-gas unit sales as well,” he said.

$25,000 hazardous duty pay for truckers. What are your thoughts?

The Trucker News Staff - April 8, 2020

Our friends at the Trucking Review Channel discuss the idea that is being floated in Congress regarding hazardous pay for essential workers. Please let us know your thoughts in the comments below! Courtesy: Trucking Review Channel Trucking Review Channel: Okay guys, I was just reading the news and I seen this. Senate Democrats propose a $25,000 Corona virus hazard pay for essential workers. I’ll tell you how I feel about this after I read it and I might have to pause it and go into a little debt. I don’t know. Okay. Senate Democrats are proposing giving hazard pay for up to $25,000 to essential workers including grocers, store employees, transit workers, and truck drivers on the front lines of the coronavirus pandemic. The bonus pay, which would equate to $13 an hour raise for recipients, I don’t know where they get that number they’re doing averages, but go towards workers who are in the line of fire day in and day out. Senate minority leader Chuck Schumer, said during a Tuesday conference call with reporters, it would extend from the beginning of the virus outbreak through the end of the year. Trucking Review Channel: “It’s the right thing to do. It’s the moral thing to do”, Schumer said. “When America has a crisis, we all pull together. No one has pulled together more than these essential workers who desire hazard pay. We are asking these workers to take a great risk. They should be compensated for it”. The Democrats proposal, the so called pandemic premium pay would offer at $25,000 for workers earning less than $200,000 a year and up to $5,000 for those earning more than $200,000. It would also offer an essential work recruitment incentive of up to $15,000 for medical workers. Schumer did not provide a total cost estimate for the proposal. Many hospital workers and medical providers have expressed concern about the high risk of exposure to the virus, particularly given the inadequate access to personal protective equipment like masks, gowns and gloves that could help to protect them. What is hazard pay? Trucking Review Channel: You was in the army. You know what it was. The Trump administration might be open to a fourth stimulus package, which may include, hazard pay for frontline workers who earn too much to qualify for the one time payment of $1,200 set aside in the CARES Act. We’ll skip that. President Trump also said he’s considering hazard pay for healthcare workers like doctors, nurses, and others grappling with the outbreak of COVID-19 respiratory illness caused by the novel coronavirus. It’s something we’re discussing in terms of bonuses are bonus pay. Trump said last week during a white house briefing. They’re like warriors. They’re like soldiers. Well, that’s true. The existing $2 trillion relief bill is paying people $1,200 who earn less than $75,000 and $2,400 to couples who earn less than $150,000. Children receive $500. Trucking Review Channel: The payments are tapered for high earners and are phased out completely for individuals earn more than $99,000, or couples who are more than 198,000. You know I’m going to give you my opinion on this also, right? There’s a big fear in my head that as this continues to escalate, a lot of people are going to start going home. I think that I read that about 40% of the workforce in our niche, our trucking niche has already accepted layoffs and went home. Trucking Review Channel: It’s a very big possibility and I’ve talked to you guys about the fact that two weeks ago when this started up, started ramping up, rates were really high, right? And we were socking it to them and I understand that even if I don’t agree with it. But now times have caught up and enough truck drivers have went home that the ones that have switched over from other services have filled the niche rather nicely. Matter of fact to the max capacity. So rates have fallen on that same load that you was hauling two weeks ago, the stimulus load. The rates have fallen substantially, okay? Now we are, we are all of us. It’s not just truck drivers, okay. This is a problem that faces our country and if everyone goes home, the nation’s going to be over. We can’t all go home. That’s why I’ve talked about bravery and some people put their life in the line and they just keep on doing it because there are people that run to fires and people that run from fires. Trucking Review Channel: I’m not going to judge you if you go home. I am sitting at home. In two weeks if the girl isn’t better, I’m going back out. I’m going to go out regardless. It’s not a matter of money for me. It’s a matter of patriotism and I got to do my part to help the country along in this effort to preserve our way of life. Preserving our way of life, it’s a tangible dream. Really, it is. A tangible dream for the next generation. It may not be here for the next generation. If we don’t do something today. The government’s going to get the freight moved one way or the other. Which side would you be on? Will you be on the money grubbing side? Give me a dollar. Give me a dollar. I want my $3. You guys know that movie? All right. Trucking Review Channel: Or, are you going to be on the side that stands up and just does what’s right? Because if we don’t deliver freight, people are going to die. Right now, it’s really great, right? Have you noticed that there’s been a trend in the grocery stores and people aren’t buying the amount of stuff that they was buying because they’re starting to stock in their goods in the stores. You’re going to see in the coming week another glut, and when I say a glut, I mean the DCs are going to be filled up and then you’re going to find another drop in freight rates once these DCs are filled up. And then more truck drivers will go home because you don’t want to sit at a truck stop. I’ll go out and work and I’ll haul freight for practically free. But I’ll tell you, I’m not going to sit at a truck stop all week. If I’ve got to sit, I’ll go home. Trucking Review Channel: I’m not needed, right? And I know you feel the same way. If you’re needed, then that give me a load. There’s no pretty picture to this. There’s no pretty outcome. It’s doom and gloom with a better hope for tomorrow. I hope you guys can stand up where you’re needed to stand up and function. And function as a whole. I know that we’re going to be little disjointed revolutionaries out there, but something’s got to bring this together. I’ve been following OOIDA, oh I just touched my face guys, don’t worry about it I’ve been inside. I’ve been following OOIDA really closely because they’re really staying on top of this really good. If you guys aren’t a member to OOIDA you guys probably should join because they are looking out for your best interest. Trucking Review Channel: But anyway, we’re still at home. I know you guys think that we’re on the road because I had some videos that I needed to put up and I thought, this is a time of doom and gloom. Our videos, I try to make lighthearted and airy and happy, right? So those videos that I’ve had in reserve, I went ahead and started releasing. Trucking Review Channel: The girl won’t be going back to the doctor until the 14th and we’re going to find out what’s going on with her eyes at that point. I don’t know if she’s going to be coming back out anytime soon. I really don’t. If she can’t drive, then what can she do, right? We can think of something, but you know what I’m saying, right? I mean, it’s a matter of work. But I can do it by myself. I’ve done it by myself my whole life mostly so I can do it again. Keep the faith guys. Keep strong. Keep your CBs on, communicate with each other. You’ve got to help bolster your fellow trucker up, okay? If someone needs to talk, please talk to them, and don’t be the negative Nancy that’s out there sowing seeds of descent and disaster, all right? Put a positive face on it. Trucking Review Channel: This is not America’s first disaster. It will not be our last disaster. There will be a brighter tomorrow and we will come through this whole. Hopefully we’ll come through it whole with our integrity intact. You guys have a spectacular day. Be safe out there on the front lines of corona central and be safe wear you mask, wash your hands. Stay in the woods. Stay out of the truck stop as much as you can. I know that truck stops are still giving everybody trouble. Some of them are doing good and some of them are doing bad. It’s a very stressful time on them too. They don’t think very highly of us for reasons that … They got good reasons to not think very highly of us. Trucking Review Channel: So think about that when you’re wanting to choke them out at the truck stop. I mean, Daniel was telling me about an experience he had today and I was like, I know, you just want to choke them, but we can’t do that. We’re better than that. We’re more informed. We’re better educated. We don’t get the props that we desired for the education that we received out here. But anyway, have a spectacular day. Be safe. We’ll see you on the other side.