Truckload Authority

During the Truckload Carriers Association’s (TCA) annual convention, slated for March 15-18 in Phoenix, chairman John Culp will pass the torch to incoming chair Karen Smerchek, president of Veriha Trucking Inc. As he prepares to transition to the role of immediate past chair, Culp took time to reflect on his tenure as chairman and share his thoughts on the state of the trucking industry. “I’ve loved my time as TCA chairman. I love our industry. I love to talk about it,” he said during a visit with Linda Garner-Bunch, managing editor of Truckload Authority and The Trucker Media Group, one February afternoon. Anyone who’s spent more than five minutes conversing with Culp would agree that not only does he love trucking; he is also an expert on the many aspects of the industry. As his year as chairman comes to an end, the Truckload Authority and Trucker Media Group teams extend a word of thanks to John Culp for making this a year to remember.   Linda: Good afternoon, Mr. Chairman, and thank you for joining us today. It’s hard to believe it’s been a year since our first visit and that this is your last Chat with the Chairman! What have been some of the highlights of the past year for you? John: The highlight for me has been working with the team at TCA. It’s been a great year. It’s been challenging, it’s been fun, and it’s been rewarding. Working with TCA is always a great experience altogether, not just the past year, but every year. When I first became chairman, someone asked me, “Well John, what are you going to do? What do you want to accomplish as chairman?” My answer was that I want to do keep doing the same thing I’ve been doing with TCA over the years. I want to continue what we’re doing as an organization, and I want to work to make it even better — I’ll just be sitting in a different chair. And that’s exactly what we’ve done. Note that I said “we.” It’s not just me; it’s the entire organization, from the staff to the officers and members. Our officers this year have been awesome, and our TCA staff is stronger than it’s ever been. We’re well aligned with the objectives we’re trying to reach, and we’ve got a lot of momentum. Having the opportunity to work closely with these people has been amazing. I have been truly blessed with the relationships I’ve developed and the friends I’ve made — and it’s been extremely rewarding to be a part of TCA’s leadership and to continue the efforts to amplify the “voice of truckload” on Capitol Hill. Our membership has grown stronger, and together we have worked through the challenges and uncertainties of the past 12 months. We continue to grow stronger. It has been an honor to be a part of this team effort. To sum it up, it’s been a great year to be part of TCA.   Linda: What would you say has been your greatest challenge in the past 12 months, and what accomplishment are you most proud of? John: The biggest challenge is pretty universal: Time. There’s just never enough of it. But that’s where teamwork comes in, and the TCA staff and officers really stepped up to help make sure all the wonderful educational offerings and meetings provided the added value our members have come to appreciate and expect.   Linda: Earlier you mentioned amplifying the voice of truckload on Capitol Hill. During his first few weeks in office, President Trump has already signed countless executive orders, some of which relate to the trucking industry. How do you believe the new Trump administration will impact TCA’s efforts to enact legislation that will benefit trucking and the supply chain? John: Executive orders are great, and they serve an important purpose — but issues really need to be addressed at the congressional level through legislation. That’s one of the key benefits of TCA membership. We allow the stakeholders to actually have input on what is presented in Washington. If you haven’t already, check out the story on Page 6; TCA’s Dave Heller does a great job of explaining how the association works to make sure our members have the ear of the nation’s decision-makers. Any time you have an administration change at the federal level, it’s going to have an effect on every industry in every sector. TCA’s leadership has a history of working closely with whoever’s in the Oval Office, or whatever party has control of the House and Senate, to help promote legislation that benefits our industry. We work to bring about changes that will benefit our members as well as the rest of the nation. To that end, it doesn’t matter which party is in power — our goal remains the same: To educate the lawmakers about how different issues, such as emissions mandates and a lack of truck parking, impact the transportation industry as a whole, especially the hundreds of thousands of truck drivers that make sure products are delivered safely every single day.   Linda: I’m glad you mentioned the emissions mandates. One of the first executive orders President Trump signed back in January called for a halt to what he termed as Environmental Protection Agency’s “EV mandate.” Since then, the EPA has announced further changes that could impact the previously-called-for transition to zero-emission Class 8 trucks. What are your thoughts? John: The Advanced Clean Fleet Rule being put to bed, so to speak, is great news. It offers a reprieve for the industry to develop a realistic, commonsense approach to addressing the trucking industry’s environmental responsibilities.   Linda: One thing you and I have discussed in the past is the possibility of using alternative fuels to achieve zero emissions for heavy-duty vehicles. What have you heard lately on this front? John: The industry definitely needs to continue to look at alternative fuel sources. However, much like the charging facilities for electric vehicles, it’s going to take time to develop the infrastructure to produce the alternative fuels, such as renewable diesel, needed to meet the demands of the trucking industry and other sectors. Bruce Guthrie recently wrote a very informative story about the progress of internal combustion engines designed to burn alternative fuel, along with information about the fueling infrastructure. Check it out here. The industry needs to continue to work towards zero emissions and create a realistic path to our objectives — and it WILL happen; it will just take time.   Linda: What other issues do you see facing the trucking industry in the near future? John: Parking is still a huge issue. We’re working with Congress to develop solutions, and I believe we made great progress last year. I believe there will be some real movement on parking this year. Of course, one of the primary goals at TCA is to promote safety on the roads, and that means safe drivers. We want to see well-trained, drug- and alcohol-free drivers on the highways. That brings us to the Drug and Alcohol Clearinghouse and the admission of additional testing methods, including hair follicle and oral fluids testing. Progress is still needed on oral fluids testing, but the process of approving laboratories to conduct the testing needs further development. Hair follicle testing results are proven and accurate — but are still not accepted by the Clearinghouse. The guidelines for this testing were mandated eight and a half years ago, but we are still fighting shameful bureaucratic red tape that is preventing implementation.   Linda: What do you see as some of the top legal issues facing the trucking industry? John: Insurance costs have shot well above the rate of inflation, and high-dollar verdicts — often referred to as “nuclear” verdicts — have been the driving force behind those increases. We need litigation reform to help curtail that, to ensure reasonable verdicts. Without tort reform, many trucking companies will be forced out of business, either because they can’t afford insurance or because of the unreasonably high verdicts themselves. In the end, these skyrocketing costs are passed along to the consumers in the form of higher prices. For perspective, the current minimum insurance level is $750,000. That figure was set back in 1980 — 45 years ago — and it hasn’t changed. Today most carriers carry $1 million policies, but even that isn’t enough to cover a carrier’s financial responsibility. As an industry, we carry insurance because it’s the right thing to do. We’re not trying to shirk any responsibility, but the premiums, as well as payouts to plaintiffs, should be reasonable. On the plus side, I believe we’re going to see some real effort to have trucking accidents involving a certain monetary value being adjudicated in a federal court, regulated at the federal level.   Linda: Let’s talk about the freight recession. Many analysts predict that conditions will slowly improve over the course of 2025 after bouncing along the bottom for the past two to three years. What are your thoughts? John: I would say we’ve been in a recession for about two and a half years now, and it’s been very painful. Many trucking companies are struggling to keep their doors open, and countless others have shut down. The challenges are very real. We’re hoping to move toward a more robust economy, and that we’ll see some relief from inflation. The economy always goes up and down; it’s a cycle, like a pendulum swing. It’s not a question of IF things will change, it’s a question of when. I believe there’s reason for optimism, that the pendulum will swing in our favor this year.   Linda: As your time as chairman of the board comes to an end, it’s tradition to offer a few words of advice to the incoming chair. What wisdom would you like to share with incoming chairperson Karen Smerchek? John: First of all, let me say how pleased I am that Karen will be succeeding me as chair of TCA. She is the first woman to lead the board in the association’s nearly 100-year history. Rather than offering advice, I’d like to express my support. Karen became an officer on TCA’s board at the same time as I did. We’ve worked together, and I know how good she is. She’s a strong leader, a smart trucking industry stakeholder, and she’s going to do a great job leading the association’s board of directors.   Linda: Thank you for your time, Mr. Chairman. It has been an honor working with you over the past year.

What changes will 2025 bring? That question is probably top of mind for anyone in the trucking industry, from the driver’s seat all the way to the C-suite. With a new administration stepping into power at the White House and the fate of key pieces of legislation hanging in the balance, one thing’s for sure. The Truckload Carriers Association (TCA) will continue to amplify the voice of the truckload industry on Capitol Hill. And, according to TCA Chairman John Culp, motor carriers throughout North America will keep doing what they do best — move freight from Point A to Point B (and often Points C, D and E, as well) as efficiently and safely as possible. Read on as Culp shares a few insights about factors impacting the industry.   Good afternoon, Mr. Chairman. It’s good to visit with you again! As we bid farewell to 2024 and embark on a new journey in 2025, what are your thoughts on the state of the freight industry? Most of us would agree that 2024 was a challenging year for the trucking industry as much of the industry has been operating below cost. The cost increases seen in transportation are very real, but keep in mind that depressed rates can only last so long. The economy is bouncing back — and trucking is resilient. Even though consumers were still cautious during the last quarter of 2024, we saw a definite uptick in consumer demand and spending leading up to the Christmas holidays, particularly on Black Friday and Cyber Monday. We are a consumer-driven society, and that will always be a positive thing for trucking. A lot of financial analysts noted that the third quarter of the year wasn’t that great compared to 2023, but we did see some of the first positive year-over-year reports. That’s a start. I believe we’re going to see improvement in most industries, and in trucking in particular, during the first half of 2025. We’ve still got challenges to face, but I think the pendulum is starting to swing in our favor. We have a new administration in Washington, effective with the swearing-in of President Donald Trump this month. According to reports I’ve seen, “Trump 2.0” is going to involve some pretty big policy changes. With Trump’s support of the oil and gas industry, do you see any possibility for changes in the Environmental Protection Agency’s (EPA) zero-emissions regulations and timeline? There’s a lot of attention on that right now. I anticipate that, at a minimum, the EPA’s timeline will be pushed back — and that will give the industry some breathing space.   The general public, as well as many environmentalists, view the trucking industry as being one of the biggest contributors to air pollution and global warming, and even as being indifferent to environmental issues. Can you comment on this perception? First of all, it’s important to note that the trucking industry very much wants to be environmentally responsible; however, we feel strongly that we need a long-term comprehensive strategy that achieves our common objectives in a realistic, economically responsible way. Zero tailpipe emissions are simply not feasible in the truckload business.   Still, we’re seeing a big push for electrification of both passenger and commercial vehicles from environmental groups as well as from vehicle manufacturers. What are some viable options to electric engines? People are beginning to understand that there ARE alternative fueling solutions that need to be explored. We’ve seen a lot of progress with renewable diesel using current internal combustion engines. Options like this can move the emissions needle a lot better than full-scale adoption of electrification — and in a much more affordable and sustainable manner. It’s going to be very interesting to see where it all goes. At TCA’s Fall Business Meetings just a few months ago, we heard from a representative of the EPA. It was a very productive session, and I believe the feedback TCA members gave the EPA about the feasibility of the impending emissions standards were well received. In short, our industry wants to do the right thing as far as the environment is concerned — but we want to do the right thing in the right way. I feel like we’ve got some momentum heading in the right direction.   With the implementation of Phase II of the FMCSA’s Drug and Alcohol Clearinghouse in mid-November, state driver licensing agencies are required to revoke the commercial driving privileges of any drivers in a “prohibited” status. How is this impacting the driver pool? I haven’t seen any specific numbers on drivers who were downgraded, but it’s just common sense to assume that there were quite a few drivers flying under the radar who shouldn’t have been behind the wheel of a truck because of drug and alcohol violations. Now they can’t slip through the system and go to another state and apply for a job, because information from each state is submitting data to the Clearinghouse. The Drug and Alcohol Clearinghouse regulations are a good thing. Making sure we have drug- and alcohol-free professional drivers in commercial vehicles makes the road safer for everyone. For drivers who are prohibited from operating a CMV due to a violation, there is a return-to-duty process for them to pursue if they want to remain in the industry. If you need a refresher, Truckload Authority’s Cliff Abbott provides a good overview of updates to the Clearinghouse.   Finding — and keeping — qualified drivers must be more important than ever for motor carriers. Do you have any advice for hiring managers and company executives? There’s actually a good piece about driver recruiting and retention in this edition of Truckload Authority. If you haven’t already, check it out! In short, though, company culture is the most important factor when it comes to driver retention. Drivers want to be heard and know that they are valuable members of the company. That doesn’t mean you can give them everything they want or that drivers shouldn’t be held accountable for their performance. But even if you can’t give drivers exactly what they want, you can let them know that you truly hear their concerns. Most importantly, you’ve got to be honest with your drivers. They want transparency; they want open communication. Drivers leave a company for many different reasons — pay, routes, benefits — but if your drivers feel that they are valued and that management cares about them and their needs, that’s when you build retention.   The Biden administration’s Bipartisan Infrastructure Law, or BIL, is set to expire in September, and the administration made a flurry of allocations in late 2024 for various projects. While progress has been made in many areas, improvements to truck parking availability around the nation don’t seem to be happening at the rate that’s needed. What are your thoughts? Recently TCA’s Dave Heller noted that the BIL omitted funding for truck parking and that a lack of facilities is reaching epidemic proportions. Truck parking remains an issue for the industry, and like most problems, it’s not going to be solved overnight. This is one of the primary issues TCA is working very hard to make improvements on at the federal level. However, there are some positive things happening in Washington as far as the need for safe parking for our drivers. I’m encouraged. Access to truck parking isn’t just about productivity, even though data shows that each driver spends an average of 56 minutes looking for parking on a daily basis. That’s nearly an hour of lost time every single day! It’s also a matter of safety for our drivers, as well as the general motoring public. TCA will continue to advocate for additional truck parking, and as private businesses work to offer solutions, we will make progress.   Are there other issues you’re hoping will be addressed by Congress in the near future? The attack on the independent contractor model (IC) at both the state and federal levels is very much at the forefront of the trucking industry right now. For so many people, the American dream is to be independent business owner. In the trucking industry, that means owning your own truck and having some control over how you run your business. As with any system, there have been “bad actors” that haven’t done things the way they should, but the IC is most definitely a valid business model; it has been for years. I hope that together we can make sure it remains a viable option and opportunity for drivers. It is vitally important to our industry.   Overall, what do you believe the future of trucking will look like under the new presidential administration? Any time there’s an administration change in Washington there will be some degree of uncertainty. The most important thing for TCA to do is to work with whoever is leading the nation and to continue to advocate and advance the issues that are important to our industry. We will continue to do just that and work for our members to address our business challenges and to work to improve the driving job, and by doing this, to make our industry stronger. You can count on this: TCA will fight and battle every day for the truckload industry and provide value to our members. I’m optimistic that we will see opportunities for some successes in 2025.   On a different topic, TCA’s annual convention is coming up in just a couple of months. Can you share any details about this year’s agenda? Truckload 2025: Phoenix is scheduled for March 15-18 at the Phoenix Convention Center. It’ll be great to see some sunshine and warm temperatures after the winter! A large part of TCA’s value is helping members be financially sustainable. We’ve got some important educational sessions and panel discussions lined up, and there will be great benchmarking opportunities. In short, it’s all about making the trucking industry better. Convention is a wonderful time for trucking industry professionals to gather together, share industry insights and, of course, enjoy a bit of socializing and networking. If you haven’t already registered, don’t waste any more time — visit tcaconvention.com to sign up and see the agenda.   Can you tell me a little about this year’s speakers and entertainment? On Monday morning (March 17), Bob Costello, the American Trucking Associations’ chief economist, will present the 2025 Industry Economic Review. The entire industry is looking forward to better times ahead, and this session will help us make the most of the changes on the horizon. This year’s keynote speaker is Oz Pearlman, a renowned mentalist, magician and athlete. It promises to be very entertaining! And our featured speaker, Jeremy Gutsche, will share insights and tips on how to harness the power of AI in your business. To cap off the event, attendees will be treated to a private performance by the Gin Blossoms after Tuesday night’s closing banquet and awards ceremonies.   As we close, do you have any additional thoughts to share with TCA members? On behalf of TCA’s leadership and staff, I’d like to thank our members for their continued participation and support. As an industry, we continuously work to keep the nation’s supply chain moving, regardless of the economy. Change is always on the horizon, but we will continue to work hard and to do what we do. The nation depends on us. To borrow an old phrase, we will “keep on truckin’.”   Thank you, Mr. Chairman. It has been a pleasure visiting with you.