Latest Industry News Briefs Courtesy of PMTA
Wolf Administration Seeks Private-Sector Input for Commercial Truck Parking Public-Private Partnership
Harrisburg, PA… As part of continued efforts to
analyze and prepare for current and projected freight-industry growth in the
state, the Pennsylvania Department of Transportation's Public-Private
Partnership (P3) Office has issued a Request for Information (RFI) seeking
private-sector feedback on development, design, construction, implementation,
maintenance, operation and commercialization of truck parking facilities and
facilities impacting how information is conveyed to those impacted by such
parking.
The
RFI, which is open to any member of the public, is accessible at www.P3.pa.gov and input is being
accepted through 1:00 PM on December 12. The information gathered through the
RFI could help develop a potential future statewide or regional P3 project
addressing innovative and efficient solutions related to commercial truck
parking.
"Pennsylvania's
status as a critical freight connection and distribution point is growing every
day and we expect exponential freight growth in the future," PennDOT
Secretary and P3 Board Chair Leslie S. Richards said. "Truck volumes need
to be considered from a traffic perspective, and this process to hear from the
public and explore innovative delivery options works toward our goal to ensure
safe operations and options for the people moving all of these goods on our
roadways."
Examples
of questions and themes included in the RFI are:
•What is the private sector's role in
solving the truck parking problem, including issues related to public
awareness?
•How can the commonwealth best
encourage partnerships within the freight industry to supply truck parking
solutions?
•What are truck parking technology
solutions doing well or how are they underperforming?
•What are the primary elements needed
in a successful truck parking area and how can truck drivers be attracted to
privately owned/operated parking facilities?
The
RFI also aims to collect input on how the commonwealth can assist local
governments with considering truck parking in their plans and zoning
regulations, any strategies or technologies being used elsewhere that could be
successful in Pennsylvania, and how the private sector can be encouraged to
participate in any potential truck parking P3 project.
In
2011, trucks moved more than 867 million tons of goods on Pennsylvania
highways. According to Pennsylvania's Comprehensive Freight Movement Plan (PDF),
by 2040, that number is projected to increase to nearly 1.5 billion tons of
freight being hauled by trucks.
The
RFI is the latest in a series of steps PennDOT has taken to plan for and invest
in freight:
In late 2016, implemented PennDOT Connects, a project-planning
initiative that prompts earlier consideration of freight issues in project
planning;
•Released the new Comprehensive Freight
Movement Plan in 2016;
•Organized a Freight Work Group
including department staff, the Federal Highway Administration and regional
planning partners that meets quarterly to advance freight planning in the
state;
•With Governor Tom Wolf, increased
investments in roadway paving and reconstruction through the Road Maintenance
and Preservation, and Resurface PA initiatives; and
•Putting roughly $2.5
billion annually into construction statewide in addition to work by department
forces. The P3 Office was established after the Public-Private Transportation
Partnerships Act was signed into law in September 2012 and authorized P3
projects in Pennsylvania. This law allows PennDOT and other transportation
authorities and commissions to partner with private companies to participate in
delivering, maintaining and financing transportation-related projects.
Truck
Driver Shortage Fuels Rising Grocery Store Prices
St. Petersburg, FL…Major food giants Mondelez, Hershey Co., Nestle SA, Unilever, and Coca-Cola have recently announced they will need to raise prices in 2019 to offset higher freight and ingredient costs.1 “They don’t really have any choice,” says John Kearney, CEO, Advanced Training Systems LLC. “The cost of shipping just keeps going up.” Kearney, whose company is a leading designer and manufacturer of virtual simulators for driver training, among other applications, adds, “A major factor in this is the driver shortage. There just aren’t enough people in the long-haul trucking workforce to get all these loads delivered.”
The scope of the
problem has been apparent for more than a year. In early January, moving a
truckload of refrigerated food from Washington State to New York was priced at about
$8,450. Two weeks later, the same truck driving the same route was priced at
close to $10,000, an 18% increase. And according to the U.S. Department of
Agriculture, during the same period the cost of shipping food eastward from
California had increased nearly 25% over the previous year.2
To some extent, notes
Kearney, the U.S. transportation infrastructure is wrestling with a
self-created problem. As U.S. economic growth has revved up in recent years,
railroads and truck fleets have not expanded capacity to keep pace—a decision
applauded by Wall Street. Between early 2017 and 2018, shares of CSX Corp.,
Norfolk Southern, and Union Pacific rose an average of 22% as they cut
headcount, locomotives, and rail cars and lengthened trains to lower expenses and
raise margins.3
Meanwhile, food
manufacturers including Dean Foods, Tyson Foods, Hormel Foods, Kellogg, and US
Foods cited rising transportation costs this year as a drain on earnings. At
the beginning of 2018, according to online truck freight marketplace and
industry analyst DAT Solutions, only one truck was available for every 12 loads
that needed to be moved. By August, spot truck rates had increased 20% from a
year previous to an average of $2.14 per mile, the highest average on record
for the month. And in the second quarter, there was a record 296,311 driver
vacancies.4
In its annual survey,
the American Transportation Research Institute found that the number-one
concern for motor carriers and the trucking industry in general is the lack of
qualified drivers to carry the nation’s freight. According to the ATRI study,
the industry needs to focus its efforts on two areas, retaining experienced
drivers and—most important of all—attracting a steady stream of younger ones.5
A key element in
attracting younger candidates, notes Kearney, is the growing use of simulator
training as an adjunct to traditional behind-the-wheel (BTW) instruction. Just
as in military and airline pilot training, the use of a simulator can teach the
proper response to events too rare or too dangerous to be part of BTW
instruction—in the case of a truck driver, a blowout of the steering tire or an
unexpected patch of black ice.
“Trucking,” says
Kearney, “is a well-paid occupation in urgent need of a new generation of well-trained
and motivated drivers. Our mission at ATS is to bring together an opportunity
and a rising workforce and, through technology and in partnership with our
fleet and driving-school clients, help ensure a safe and prosperous future for
American commerce and the drivers that serve it.”
Advanced Training
Systems (ATS) is a high-tech simulator technology and engineering firm that has
revolutionized the design and manufacture of advanced training systems to
improve training and create safer drivers. ATS, the holder of multiple
patents in high-tech training simulation, has as its mission to provide this
cutting edge adaptive training to all involved in the transportation industry
at an affordable cost, resulting in safer drivers/operators. For more information,
visit www.atstrainingsystems.com
Scipioni, Jade, “Food prices are going up next
year,” Fox Business, October 31, 2018.
1. Hawkes,
Logan, “Escalating transport rates could trouble farmers, increase consumer
food prices,” southwest
FarmPress, January 18, 2018.
2. Johnson,
Eric M., and Prentice, Chris, “Corporate America’s new dilemma: raising prices
to cover higher transport costs,” Reuters, February 26, 2018.
3. Sterk,
Ron, “Freight costs cause hiccups for food companies,” Meat & Poultry, October 12,
2018.
4. Adler, Alan, “Growing Shortage of Drivers Remains Top Trucking Industry Concern,” Trucks, October 29, 2018.
Rules To Change For Commercial Drivers With Diabetes
CDL holders who pass their medical examination
after Nov. 19, 2018, will no longer need a federal exemption or state waiver.
Instead, they will use a glucometer device that measures their blood sugar
level daily and stores the results for the medical provider who manages their
diabetes.
Each driver’s current waiver or exemption will
remain valid until its expiration date, but after Nov. 19 CDL holders can
switch anytime to the new process by getting a new medical examiner’s
certificate. A copy of the new medical certificate still must be filed with DMV
anytime one is issued.
Once a CDL holder with a waiver or exemption gets
a new medical certificate under the new rules, it is important for the driver
to inform DMV when filing their new certificate.
Drivers need to send their new certificate to DMV
in one of two ways:
* Email a photo of the new certificate with
“Waiver Clerk” in the subject line, name and license number
to [email protected].
* Mail a copy to: DMV – DSU Waiver Clerk,
1905 Lana Ave. NE, Salem OR 97314.
To switch to the new method, a medical provider
must fill out an assessment form from the Federal Motor Carrier Safety
Administration. Form 5870 will be available at the FMCSA medical site
here: https://www.fmcsa.dot.gov/regulations/medical
The driver’s medical provider who manages their
diabetes will need 90 days of test results to complete the assessment. CDL
holders are encouraged to start working with their medical provider before
their current waiver expires because of the 90-day period.
A 90-day medical examination certificate may be
issued if the driver is unable to start the new method in time to provide 90
days of test results and otherwise meets CDL medical requirements. A CDL holder
who uses insulin for diabetes can then accumulate the needed test results to
qualify for the one-year certificate.
Drivers who wish to change their driving type to
non-excepted interstate after they get a new medical examination certificate
can do so by visiting their local DMV office.
If you have questions about the federal medical
requirements, contact a Certified Medical Examiner listed on the FMCSA National
Registry or FMCSA Medical Programs:
*
Website: www.fmcsa.dot.gov/regulations/medical
* Email: [email protected]
* FMCSA Medical
Programs: https://www.fmcsa.dot.gov/regulations/medical
* Commercial Drivers who have questions about the
status of a current diabetes state waiver:
* Visit OregonDMV.com, call a local DMV
office, or call 503-945-5000.
* News media: David House, 503-945-5270
or [email protected]
Qualified Ex-Military Truckers Offered Streamlined Path to Civilian Employment
St.
Petersburg, FL… According to the U.S. Department of Commerce Federal Motor Carrier
Safety Administration (FMCSA), a military skills test waiver for veterans with
appropriate service experience is now being offered in all 50 states. The
waiver, a provision of FMSCA’s Learner’s Permit rules, allows veterans to
substitute two years of safely operating military trucks or buses for the
skills test portion of the commercial drivers license test.1 John
Kearney, CEO and President of Advanced Training Systems, says, “We totally understand
the need to provide employment opportunities for returning veterans, as well as
to help alleviate the nation’s current—and severe—shortage of long-haul truck
drivers.”
Kearney, whose
company is a leading designer and manufacturer of virtual simulators and
training for student and experienced driver training, among other applications,
adds, “At the same time, as experts in the driver training field, we understand
peoples’ concerns about safety. What we need is a solution that addresses both
issues.”
There is no question,
Kearney notes, about the seriousness of the national driver shortage. There are
some 50,000 fewer truckers than are needed right now, and the U.S. trucking
industry will need to hire almost 900,000 new operators over the next decade
simply to maintain the current workforce.2 As a partial
response to this situation, legislation was introduced earlier this year to
reduce the legal age for interstate cargo transport from 21 to 18—an age range
that would include many of the veterans covered by the FMSCA’s test-waiver
proposal.3
The legislation has
generated a certain amount of opposition. Myron Shevell, Chairman of the
Shevell Group, which operates New England Motor Freight and Eastern
Freightways, characterized it as “a horrible idea. With the situation with auto
accidents, you are just adding to the problem. Anything can happen.” Todd
Spencer, president of the Owner-Operator Independent Driver Association, called
the legislation “absurd.”4
Others in the
industry, however, are more receptive to the idea. In a poll of ten supply
chain and transportation executives, a leading industry trade publication
received seven unqualified yes votes for lowering the minimum driver age, two
responses supporting both sides of the question, and one apparent no.5
As to the driving
test waiver for returning veterans, Kearney notes that the application
requirements are designed to screen out unsuitable candidates: a minimum of two
years of military driving experience and a clean and stable civilian driving
record: no suspended, revoked, or cancelled licenses, no citations for the use
of alcohol or drugs, and no serious traffic violations.7
“There’s no question
that our nation’s roadways are crowded and potentially dangerous,” says
Kearney. “The best approach to licensing qualified veterans would be to allow
them to partly bypass costly conventional training programs but require a short
simulator course to assure they are fully prepared and U.S. highway-ready. Just
as in military and airline pilot training, the use of a simulator can teach the
proper response to events too rare or too dangerous to be part of
behind-the-wheel instruction—in the case of a truck driver, a blowout of the
steering tire, a patch of black ice, sudden high wind, or a similar serious and
unexpected problem.”
Advanced Training Systems
(ATS) is a high-tech simulator technology and engineering firm that has
revolutionized the design and manufacture of advanced training systems to
improve training and create safer drivers. ATS, the holder of multiple patents
in high-tech training simulation, has as its mission to provide this
cutting-edge adaptive training to all involved in the transportation industry
at an affordable cost, resulting in safer drivers/operators. For more
information, visit www.atstrainingsystems.com
“Military Skills
Test Waiver Program,” Federal Motor Carrier Safety Administration, November 29,
2017.
1. Raphelson, Samantha, “Trucking Industry Struggles With Growing
Driver Shortage,” NPR, January 9, 2018.
2. “Drive Safe Act Aims to Let CMV Drivers Cross State Lines Before
Age 21,” Go By Truck Global
News, March 23, 2018.
3. Berman, Jeff, “Veteran trucking exec Shevell rips ‘absurd’ plan to
allow teenage truck drivers,” Logistics
Management, October 3, 2018.
4. Arabe, Katrina, “Good Question: To address the truck driver
shortage, should we lower the minimum driver age to 18?”, Inbound Logistics, September 24,
2018.
5. “CDL Skills Test Waiver Requirements,” DMV.org, October
30, 2018.
President Signs into Law Opioids Bill that Contains Hair Testing Reporting Requirements
Arlington, VA… President Trump signed into law
comprehensive legislation aimed at combating the nation’s opioid crisis. The
bill, which cleared the Congress with near-unanimous approval, contains
critical provisions on hair testing which ATA has long advocated for, and worked
closely with Senate Commerce Committee staff to secure in the
legislation.
“Our fleets
need to depend on the most accurate, reliable and failsafe drug testing methods
available today, and this legislation pushes the federal government to
recognize those means of testing,” said Bill Sullivan, ATA’s executive
vice president of advocacy. “We thank our champions in Congress—Senators Thune
and Fischer and Representatives Crawford and Fleischmann—who have played a
pivotal role in advancing this important safety issue.”
The law directs the Substance Abuse and Mental
Health Services Administration to report to Congress on its progress issuing
guidelines for hair testing. In addition, the Secretary of Health and Human
Services is required within 60 days to report to the Senate Commerce and House
Transportation and Infrastructure Committees on the status for hair testing
guidelines, the reasons for delay in issuing guidelines, and a schedule –
including benchmarks and an estimated date of delivery – for completion of the
guidelines.
The bill also contains reporting requirements on
the development of the Drug and Alcohol Clearinghouse and a deadline for
completing work on oral fluids testing.
Federal law requires trucking companies to drug
test new drivers and randomly test existing drivers. Currently, SAMHSA only
recognizes the test method of urinalysis, despite the inherent advantages of
hair testing, which provides employers with a longer detection window, easier
collection and results that are harder to adulterate. The FAST Act required HHS
to issue scientific and technical guidelines for hair testing by December 2016
– a deadline which was missed.
Paws of War Launches Nations First Mobile Veterinary Clinic
Exclusively for Veterans and First Responders
New York, NY… Paws of War’s latest mission is to help veterans and first responders get the veterinary care they need for their pets that they may be having difficulty obtaining. On November 8, 2018, they will roll out the “Vets for Vets” program, which is a custom-designed RV that has been outfitted to be a mobile veterinary clinic. The mobile clinic, staffed by a veterinarian, will be on the move providing care to many veteran pets.
“This is the first
of its kind,” explains Robert Misseri, co-founder of Paws of War. “It’s
exclusively for the pets of our disabled veterans and first responders. They
need the assistance, we heard their call, and are doing all we can to answer
it.”
According to the U.S.
Census Bureau, there are 4 million veterans who have a service-connected
disability. A service-connected disability is one that was a result of a
disease or injury incurred or aggravated during active military service.
Additionally, there are many disabled first responders also in need of
assistance. Through the “Vets for Vets” mobile veterinary clinic, both disabled
veterans and first responders will have the ability to obtain care for their
pets. Some of the people may have difficulty getting out of their homes, while
others may find veterinary care to be a financial burden.
Paws of War obtained
the used 2006 26-foot RV and found that it was in some serious need of repair
and renovation in order to meet their mission. That’s when the original
manufacturer, LaBoit Specialty Vehicles, stepped in and offered to completely
refurbish the RV, all free of charge. Now the mobile veterinary clinic has been
completely customized for the Paws of War team and its mission.
“When we first heard
about Paws of War, we did a thorough research of the organization and were very
impressed with what they do, stated Gil Blais, president of La Boit Specialty
Vehicles. “Being a veteran myself, I knew I wanted to help any way I could and
renovating their vehicle was right up our alley. The entire La Boit staff
felt the urge to help and did so by volunteering their time. We also had
vendors donate equipment so it truly was a group effort. We wish Paws of War
all the best for such an innovative program!”
Some of the
veterinary services that will be provided by the Vets for Vets mobile clinic
include: Annual vaccinations, Dental care, Allergy care, Grooming/nail
trimming, Microchipping, Wellness checks, Medication that they may not otherwise
be able to afford, Minor surgeries, Bloodwork/testing
“We are really
excited about this new program and grateful to La Boit for their generosity in
restoring the vehicle,” explained Misseri. “We look forward to hitting the road
and helping out our nation’s heroes.”
Paws of War is
currently seeking sponsors for the “Vets for Vets” mobile clinic. Those
interested in sponsoring the clinic should contact the organization for more
details and information. Paws of War is an all-volunteer organization that
provides assistance to military members and their pets and provides service and
service dogs to veterans suffering from PTSD.
To learn more about Paws of War or make
a donation to support their efforts, visit their site at: http://pawsofwar.org.
OOIDA Awarded $943,725 Grant to Reduce Diesel Emissions in Four-State Region
Lenexa, KS… The U.S.
Environmental Protection Agency (EPA) has awarded a $943,725 grant to the
Owner, Operator and Independent Driver's Association (OOIDA) of Grain Valley,
Mo., to protect public health by reducing diesel emissions from trucks in
Missouri, Kansas, Iowa and Nebraska.
This Diesel Emissions
Reduction Act (DERA) project will aid OOIDA in its efforts to reduce diesel
emissions and exposure in the four-state region. The project will install
420 auxiliary power units in the Association members' trucks.
The grant seeks to reduce
extensive amounts of nitrogen oxides, particulate matter (soot), and carbon
dioxide in the region.
EPA provides grants under
the DERA to protect human health and improve air quality by reducing emissions
from diesel engines. EPA anticipates awarding approximately $40 million in
competitive grant funding for the Clean Diesel Funding Assistance Program. The
program solicited proposals nationwide for projects that achieve significant
reductions in diesel emissions in terms of tons of pollution produced and
reductions in exposure.
For more information about
the Clean Diesel and DERA Funding: https://www.epa.gov/cleandiesel
Learn more about EPA Region
7: https://www.epa.gov/aboutepa/epa-region-7-midwest
Connect with EPA
Region 7 on Facebook: www.facebook.com/eparegion7
Follow us on Twitter:
@EPARegion7
National Survey Finds Nearly 4-In-10 Logistics And Transportation Companies Asked To Pay For Shipping Damage When Not At Fault
HENDERSON, NV… A national survey of logistics and
transportation companies finds that nearly 4-in-10 have been asked to pay for
container/trailer damage when not at fault and nearly one-third paid more than
$500 per incident.
“Shipping damage fees can have a significant
impact on a company and raise levels of frustration when you can’t prove that
you were not responsible for the damage along the delivery chain,” said Tom
Burke, CEO of TCompanies, parent company of PEIRmobile. “Each year within the
U.S., there are approximately 37.5 million containers and trailers transporting
goods through numerous interchange points on each trip. We estimate that
25% of those containers and trailers – or 9.4 million -- are damaged. At
a conservative estimate of just $200 in damages per incident, the annual cost
would exceed $1.8 billion in the US alone.”
The survey was conducted during the month of
October 2018 and asked:
1. On average, how many times per month are
you moving a container/trailer to an interchange point?
None - 22.3%
1-10 - 18.2%
11-25 - 9.5%
26-50 - 9.5%
51+ - 40.5%
2. In the past year, have you
been asked to pay for container/trailer damage that you were not responsible
for?
Yes - 38.8%
No - 61.2%
3. On average, how many times per month have
you been asked to pay for container/trailer damage that you were not
responsible
for:
less than once a month - 76.6%
2-5 times a month - 15.2%
6-10 times a month - 4.8%
more than ten times a month - 3.4%
4. On average for each occurrence, how
much did you have to pay for damages (even when not at
fault)?
$0-100 - 47.9%
$100-250 - 9.0%
$250-500 - 11.8%
$500-750 - 4.9%
$750-1000 - 10.4%
$1000-1500 - 6.2%
$1500-2000 - 2.1%
Greater than $2000 - 7.6%
5. Did you have to pay
because:
You don’t have any documentation to prove you
didn’t do it - 61.0%
Can’t find the documentation - 2.9%
The document is incomplete - 18.4%
The document is hard to interpret/understand -
17.6%
The PEIR (Photographic Equipment Interchange
Receipt) app documents the condition of containers and trailers at each
interchange point. Being able to prove what state a container or trailer was in
at a given time and place makes it easy to show who caused damage, and protect
companies from paying for damage they didn’t cause.
“The idea for PEIR came to me shortly after
selling the intermodal trucking company that we owned for ten years,” said
Burke. “For that entire time, I felt the monetary pain associated with being
forced to pay for the repair of equipment that we received in interchange and
did not damage, but we couldn’t prove it. At one point, it took 2 ? full time
employees to research and handle all these damage claims, which was another
cost that ate away at our bottom line.”
For
more information, go to www.peirmobile.com.
Guidebook Explains New Commercial Vehicle Training Regulations - PTDI helps organizations understand and address new Federal requirements
The Professional Truck Driver Institute (PTDI) has
released a new publication that addresses entry level driver training (ELDT)
requirements for commercial motor vehicles (CMVs). PTDI’s E-Z Guide
to the Entry-Level Driver Regulation is intended for any and all
organizations who offer this type of training and must now comply with the new
Federal rule.
The Guide provides details for all CMV
driver training, including CDL Class A, Class B, Passenger, School Bus and
Hazardous Materials endorsements. For those assessing where to start with
the new ELDT regulation, this publication is a comprehensive primer that guides
your focus. The Guide is a must for trainers, safety directors,
administration and instructors.
As part of the new regulation, all Driver
Trainees must complete a prescribed program of instruction provided by an
entity that is listed on FMCSA’s Training Provider Registry (TPR).
The E-Z Guide to the Entry-Level Driver Regulation is a
go-to-resource for schools to earn and maintain their registration.
Authored by Chris Antonik, M. Ed., CDL-A, current
PTDI Certification Commission Chair, the Guide brings years of hands-on
expertise from the commercial transportation industry. Antonik retired as
the Director of Delaware Technical Community College’s Truck Driver Training
and is currently a driver with Eagle Transport.
The Guide, a first of its kind, continues
PTDI’s efforts as the gold standard for truck driver training quality, safety
and professionalism. PTDI’s well-known certification program exceeds many
of the ELDT requirements and supports the development of training program
excellence. For more information about the Guidebook and to purchase a
copy visit: http://www.ptdi.org/Materials.
Fuels Industry
Expert to Provide Forward-Looking Analysis of Diesel Markets at NATSO Connect
The session will include the first
public presentation of The Fuels Institute's Fuel Quality Council research
into diesel fuel standards and specifications. The Council includes 50
stakeholders – including NATSO and several NATSO members – that identified best
practices for maintaining fuel quality throughout the supply chain and
quantified the impact of diesel fuel quality on vehicle operations.
“It is the only collaborative industry effort
trying to help identify the best path forward for improving the performance of
diesel engines with diesel fuel,” Eichberger said.
During the session, Eichberger will provide
greater context into the conversation surrounding electric vehicles. Eichberger
also will discuss the The Fuels Institute's three reports titled
"Tomorrow's Vehicles,” which provide an overview of vehicle sales and fuel
consumption in the United States and Canada as well as a projection of heavy
and medium-duty fleet sales through 2025. The Institute reported that while
alternative fuel drivetrains will gain market share, traditional
petroleum-powered internal combustion engines will continue to dominate.
“The headlines don’t tell the story,” Eichberger
said. “You have to peel the onion. You have to go deeper,” he said, adding that
it is easy for those within the fuel industry to get concerned when they see
the headlines touting all-electric vehicles. “These things are all manipulated
to get you to click, but it is a lot more nuanced than they want you to
think.”
Eichberger also plans to address the fuel
corrosion that some in the industry experienced when sulfur levels were reduced
in diesel fuel.
David Fialkov, NATSO's vice president of government affairs, said the session will help operators with their short- and long-term planning. “We are thrilled to have John Eichberger share his insights into the fuel industry,” he said. “He has more than 20 years of experience, and the Fuels Institute’s research and industry collaboration provide concrete facts that help NATSO members prepare for the future.” Several industry experts will share their knowledge during NATSO Connect 2019, Feb. 10-13, in Orlando, Florida. Hundreds of innovative, senior-level truckstop operators and industry partners will come together to gain new insights and uncover best practices. Learn more at www.natsoconnect.com.
CTA: Christmas Comes Early as Canadian Truckers Receives
Accelerated CCA Rates for Equipment
Toronto, CANADA… Fall Economic Fall Statement delivered an early Christmas present for the Canadian trucking industry in the form of significant accelerated cost allowances for tractor/truck capital; an emphasis on further harmonizing trucking regulations; enhancements to major western trade corridors to the United States as well as intermodal connectivity improvements.
Accelerated
Investment Incentive
Under the
newly created Accelerated Investment Initiative (AII), capital investments will
generally be eligible for a first-year deduction for depreciation equal to up
to three times the amount that would otherwise apply in the year an asset is
put in use. The typical asset deduction for the first year for trucks is 20 per
cent, which will now increase to 60 per cent under this proposed measure.
“Tripling the current first-year rate will
provide trucking companies in Canada a true incentive to make capital
investments in newer equipment, which will in turn make the supply chain more
productive and reduce its carbon footprint,” said Stephen Laskowski, president
of the Canadian Trucking Alliance. “Minister Morneau should be applauded for
showing this leadership and recognizing the economic importance of our sector
by creating greater re-investing opportunities for small and large operators
alike.”
The Fall
Economic Statement outlined the impact to the trucking industry: When a fleet
purchases five trucks for a total of $1 million, under the current deduction
system only $200,000 could be written off in the first year compared to
$600,000 under the AII system. As outlined in the Fall Statement, this change
represents about $105,000 in federal-provincial tax savings for a fleet making
such a purchase.
It is
important to note that the AII will apply to qualifying assets acquired after
November 20, 2018. Further clarification was provided to CTA by Finance
officials. For the carrier to qualify for the AII deduction, the tractor would
have to be legally theirs on or after November 20, 2018. The AII will be
gradually phased out starting in 2024, and no longer in effect for investments
put in use after 2027.
Removing Barriers to Trade Within Canada
Recognizing
the opportunity that internal trade represents, the Fall Economic Statement
reaffirms the federal government’s commitment to strengthening freer trade
within Canada and proposes the federal government work with provincial and
territorial partners to accelerate action to remove regulatory and other
barriers in four areas, including within the trucking industry.
The Fall
Economic Statement says:
There is a patchwork of regulations and
allowances that has resulted in several barriers for the trucking industry,
including wide-base single tires, spring weights and other restrictions…
addressing these inconsistencies across Canada would improve
transportation systems.
The Fall Statement
went on to say that trucking regulations will be a key part of the Regulatory
Reconciliation and Cooperation Table as well as focusing attention on the CCMTA
process.
“CTA
welcomes the attention and focus on our sector to improve efficiency of truck
movements and public safety,” said Laskowski.
Moving Goods To Market Efficiently in
Saskatchewan and British Columbia
Two
transport infrastructure announcements were contained in the Fall Economic
Statement:
•$167 million for
port and rail infrastructure in Vancouver to increase efficiency and capacity
for trade;
•$53.3 million to
upgrade Highways 6 and 39 between Regina and Estevan, near the United States
border.
CTA welcomes
investment into our major trucking-trade touch points. The Saskatchewan
project, specifically, was identified by the Saskatchewan Trucking Association
in CTA’s 2018 Infrastructure Prioritydocument released earlier this year and shared with the federal
government.
ATA Truck Tonnage Index Jumped 6.3% in October Tonnage Index 9.5% Higher than October 2017
“After
slowing at the end of the third quarter, truck freight surged in October,”
said ATA Chief Economist Bob Costello. “Last month’s strength was due, at
least in part, to strong import numbers, especially on the West Coast. This is
likely a pull ahead of imports as shippers try to take delivery of goods before
January 1 when tariffs on a large list of goods China increases from 10% to
25%.”
September’s change over the previous month was
revised up to +0.1% (-0.8% was originally reported in our press release on
October 23).
Compared with October 2017, the SA index increased
9.5%, up from September’s 3.8% year-over-year increase. Year-to-date, compared
with the same period last year, tonnage increased 7.3%.
The not seasonally adjusted index, which
represents the change in tonnage actually hauled by the fleets before any
seasonal adjustment, equaled 124.4 in October, which was 11.8% above the
previous month (111.2). In calculating the index, 100 represents 2015.
Trucking serves as a barometer of the U.S.
economy, representing 70.2% of tonnage carried by all modes of domestic freight
transportation, including manufactured and retail goods. Trucks hauled 10.77
billion tons of freight in 2017. Motor carriers collected $700.1 billion, or
79.3% of total revenue earned by all transport modes.
ATA calculates the tonnage index based on surveys
from its membership and has been doing so since the 1970s. This is a
preliminary figure and subject to change in the final report issued around the
10th day of the month. The report includes month-to-month and year-over-year
results, relevant economic comparisons and key financial indicators.
ATA Applauds EPA for First Step in NOx Rulemaking Effort
Arlington, VA… The American Trucking Associations
commended the Environmental Protection Agency for taking the first step in
reviewing and implementing new standards for NOx emissions from heavy trucks.
“As an
industry engaged in interstate commerce, ATA strongly favors a single national
emission pathway as opposed to a patchwork of state standards,” said ATA
Executive Vice President of Advocacy Bill Sullivan. “Clean air and a healthy
environment are important to all of us, and the trucking industry has
repeatedly demonstrated that it can work proactively and in partnership with
the federal government in achieving these aims. We look forward to working with
the EPA in developing a standard that achieves nationwide air quality
improvements across the country while maintaining a strong and robust
economy.”
ATA and EPA have a long history of successful,
collaborative efforts to improve air quality, including the EPA SmartWay
Transport Partnership, and the association said it looked forward to continuing
that relationship.
“Clean air
is an issue that affects all of us,” said ATA Vice President, Energy &
Environmental Affairs Counsel Glen Kedzie. “ATA has worked with EPA in the past
to make sure emissions standards – like the current NOx rule and Phase II of
the greenhouse gas emissions rules for heavy-duty vehicles – are not just
achievable, but that they are indeed achieved. ATA and its members are
constantly purchasing newer, cleaner, more efficient vehicles, and as a result
we have achieved historic reductions in emissions of all kinds. That is a track
record we are not only proud of but that we look forward to continuing into the
future.”
As part of this effort, ATA is convening a task force to weigh solutions and principles to address the issue of NOx emissions