Trucking Industry Continues Fight Against Nuclear Verdicts

December 10, 2020 by Levinson and Stefani Leave a Comment

Members of the trucking industry are continuing to battle against the rising numbers of nuclear verdicts that have been made against motor carriers–a fight that is far from over, experts say.

Chris Spear, President of American Trucking Associations recently stated that the industry itself was working more diligently than ever to fight these verdicts taking place in trucking accident litigation.

“We’re growing very tired as an industry being picked on by the plaintiff’s bar,” said Spear last year during an ATA conference. “We’re growing very tired of padding the pockets of trial lawyers at the expense of trucking jobs, and we’re just not going to stand for it anymore. It’s an all-out assault against the industry, and we need to be in a position to fight back.”

The Omnibus Tort Reform bill in Louisiana brought an end to the law banning trucking attorneys from presenting any evidence of victims of trucking-related accidents not wearing seat belts. The bill also limits inclusion of some medical bills from jury awards.

“The war rages on, but I think we are winning some battles, particularly at the state level,” said Spear. “A key part of our strategy is to expose this profession and the adverse impact it is having on our industry, on the hardworking men and women in trucking, but also directly on the economy itself.”

An 80-page study by the American Transportation Research Institute about increases in nuclear verdicts was released earlier this year, detailing the logic among juries deciding these particular verdicts against the trucking industry. ATRI concluded, after researching 600 different big rig-involved crashes with verdicts of $10 million or more, that these nuclear verdicts have risen exponentially over the last 10 years.

According to the study, between 2010 and 2018, an average verdict in a trucking-related trial jumped from $2.3 million to $22.2 million.

“When I started practicing 26 years ago, it was a very different landscape than now,” said Mike Langford, a litigator at Scopelitis, Garving, Light, Hanson & Feary. “There are better plaintiff attorneys handling trucking cases now than were handling the cases 25 years ago, or even 15 years ago.”

The reason attorneys have boosted their abilities, though, is because trucking incidents have increased steeply, as have the amount of injuries and deaths which occur as a result.

Founder of the Academy of Truck Accident Attorneys, Michael Leizerman, noted an incident involving a 27-year-old victim who became quadriplegic following a trucking-related accident. The client required $20 million to cover his medical costs, which would be necessary throughout the course of his life.

“The dispute may be, is it $17 million or $22 million?” said Leizerman. “In that case, even the trucking attorneys are saying, ‘Yeah, let’s take care of this guy.’”

ATA also has often handpicked specific cases to cite in order to bring attention to particular instances in which victims of truck crashes receive large rewards–an effort to incite pushback against these lawsuits.

In a recent interview, Spear referenced a particular 2014 case involving a tractor-trailer and a pickup truck, in which the latter had crossed a Texas interstate median and collided with the trailer. A child in the pickup truck died upon impact, another was paralyzed and two others were injured. In court, the family of these passengers argued that the tractor-trailer driver was behaving recklessly in severe weather and that he should have pulled over. The jury ruled in their favor, and awarded the family $90 million.

Although court documents from this case showed that the trucking company, Werner Enterprises, had stayed quiet regarding its disregard for having any clear safety policies, Spear made it known he believed the driver was not at fault.

Werner is still working to appeal the verdict.

If tort reform continues being regarded as a high-priority issue, recovery amounts given to victims and victims’ families of low levels of trucking safety would fall. ATA has made it clear that it views saving money in these verdicts as being much more important than the safety of those on the road and the financial help that can be given to those who have become hurt as a result of low safety standards.

70 Projects Across Country to be Funded Through $1 Billion in BUILD Grants

December 2, 2020 by Levinson and Stefani Leave a Comment

The Better Utilizing Investments to Leverage Development program has received $1 billion in funding for its countrywide infrastructure projects.

Transportation Secretary Elaine Chao recently announced that the funding, through the BUILD program, will support 70 different infrastructure improvement projects across 44 states. BUILD works to fund transportation projects on roads, bridges, transit and rail systems, and ports, and is an effort to replace the previous Transportation Investment Generating Economic Recovery program.

“This administration is making significant investments in infrastructure, and this $1 billion in BUILD grants will repair, rebuild, and revitalize transportation systems across America,” said Chao.

None of the grants have exceeded $25 million, and no states have been awarded more than $100 million overall. To continue the current focus on rural infrastructure improvements, at least half of the BUILD program funding will be dedicated to rural projects.

The BUILD program has allocated $4 billion to various infrastructure improvement projects over the last few years, with grant selection focusing on projects aiming toward improved safety, innovation, industry partnerships, economic competitiveness, and environmental sustainability.

$22 million of the grant will be dedicated to Georgia’s state Route 96 improvements, and Georgia’s Department of Transportation will direct the funding toward efforts to expand that east-west route to four lanes. The improvements will also implement wildlife crossing areas and will aim to help safely navigate traffic around heavy trucks and farm equipment. The overarching goal of the state’s efforts will be to largely reduce the number of crashes involving wildlife.

North Dakota also received $22 million from the grant, and will begin reducing seasonal water accumulation-caused road closures by raising roadway grades at 13 different locations. When rural roads experience closures, freight movement is often forced to take to routes not fit for heavy machinery.

Another $21 million will be given to the Pennsylvania Department of Transportation for the state’s Erie Bayfront Parkway Mobility and Freight Improvement Program. In order to bring easier connection between Erie’s business and the area’s waterfront, the project will work to reconstruct intersections as well as to build a multimodal bridge in order to help relieve congestion in the growing area.

Wichita, Kansas was specifically awarded $21 million for its collector-distribution system construction which will connect interstates 135 and 235 with Route 96. The funds will also be allocated for the replacement of outdated ramps and the resurfacing of bridges. These updates will work toward reducing accident risks regarding hazardous material-carrying trucks that often travel from industrial facilities around the city.

Additionally, Colorado received two grants. One brought the state $13 million to upgrade the Roaring Fork Transportation Authority’s regional transit hub, and the second brought $.4 million to help with acquisition and pre-construction efforts around Castle Rock’s Crystal Valley Parkway Interchange project.

“Castle Rock has seen significant growth in recent years, and this BUILD grant will help advance the project,” said Colorado Senator, Cory Gardner. “With Colorado’s population growing at one of the fastest rates in the country, I will continue to work with communities across our state to support their infrastructure priorities to ensure safety and efficiency for Coloradans.”

Additional awards for 2020 grants through this program include other rural projects such as the Tuscaloosa Landing Area Project of Alabama, The I-55 at IL 59 Access Project in Illinois, the I-70 Rehabilitation and Modernization project of Indiana, the Interchange Improvements in Coralville, Iowa and Iowa’s Building Safety, Access, and Capacity project, Michigan’s Statewide Central Signal Control System Expansion, and Minnesota’s US 14: New Ulm to Nicollet Mobility and Safety Improvement Project.

Illinois and Missouri will also receive nearly $21 million for its urban St. Louis Bi-State Regional Ports Improvement Project, and Indiana will receive $5 million for its urban US 36 Safety and Capacity Project–Connecting Avon.

The St. Louis Bi-State Regional Ports Improvement Project is sponsored by America’s Central Port District, and will aim to improve multimodal infrastructure at America’s Central Port in Granite City, Illinois with over 2,000 feet of new railroad track, as well as a new terminal access roadway, belt system, and barge loading system. At St. Louis Port Authority in Missouri, the project will bring over 7,000 feet of new railroad track, barge loading equipment, conveyor replacement, loading shed improvements, and flood mitigation work. There will also be loading shed and electrical system upgrades, along with hoist system and barge loading improvements, at Illinois’ Southwest Regional Port District.

Pandemic Uproots Fleet Replacement Cycles, Although Industry Stays Optimistic

December 1, 2020 by Levinson and Stefani Leave a Comment

When the pandemic first hit the United States, fleets across North America expected purchase delays for a short time, but never expected how long equipment replacements would actually be stalled.

Truck dealers were “hit pretty hard,” said Rush Enterprises chairman and CEO, Rusty Rush. Rush operates more than 100 commercial vehicle dealerships across the country.

Although retail sales of Class 8 trucks have begun to grow steadily since the drop in early spring, WardsAuto data show these purchases are still well below numbers from 2019. According to Rush, fleets paused equipment replacement cycles at the start of the pandemic, and, because many manufacturing companies had to close their doors during that time, new trucks haven’t been readily available.

Still, major fleets need to return to their regular replacement schedules, and Rush believes although the setback was a challenge, trucking companies will be able to get back to their normal growth cycles. He also doesn’t expect any more huge changes will come to replacement purchasing cycles unless another major outside change occurs.

Additionally, used trucks have had drops in sales during the pandemic, but have had their values begin to regulate once again, making it a smoother process for fleets looking to trade in their trucks. Shippers also saw difficulty in securing both trucks and drivers to meet the onslaught of consumer demand, but the market is finally beginning to stabilize.

“It’s like the story of two different years,” said Rush. “There was January through the first half of March, and then the second half of March is when everything changed.”

Research firm FTR vice president, Don Ake, explained that a majority of fleets have halted their replacement orders due to the uncertainty of the pandemic, but larger fleets have continued on, especially beginning in June and July.

Orders are still behind regular replacement demand, though, and Ake said fleets that are confident that the economy is indeed improving right now have begun resuming their regular orders, and less-profitable fleets will likely continue to wait to begin replacement cycles again until 2021.

Ake also noted that although the consumer market may seem to be gaining strength, it’s still receiving support from supplemental government income programs, which have expired. According to FTR, a bumpy recovery will progress into next year, when the market will likely reset.

For refrigerated and last-mile delivery providers, Kenworth Sales Co. president Kyle Treadway said replacement cycles are steady, while carriers within the energy sector are having more trouble.

Treadway also believes that used truck values dropped 5% to 8% lower than their trough during the first quarter of 2020, and said he thinks used truck values have reached their lowest numbers.

For Kenworth, new truck sales have resumed to match his fleet’s 2019 numbers, while used truck sales numbers have fallen by 30%. Treadway also predicts delayed growth numbers during the spring of 2021, and that smaller fleets will begin returning to the market around that time. Fleets will need to catch up from this year’s pause, and replacement cycles will gain traction in 2021 for that reason.

“The uncertainty is the problem, not the outcome,” Treadway said regarding how the upcoming presidential election will affect quarter-to-quarter sales throughout the rest of 2020, which he expects to remain flat. “Groceries and garbage are still going to move, regardless of who’s in the White House.”

The market will see a major shift, though, explained ACT’s Denoyer, who said replacement cycles could become shorter, as fleets have been noticing more late-model used trucks having better trade-in values due to fuel efficiency.

For Penske Truck Leasing, customers will work with the company to evaluate replacements on a truck-by-truck basis, according to the company’s senior vice president of procurement and fleet planning, Paul Rosa.

“We are always evaluating the entire equation,” Rosa said.

With truck technology advancing and trucks becoming more durable overall, they are able to last longer, even if a truck hasn’t moved much throughout the time of the pandemic. Still, Penske’s customers may opt not to have extended first lives of 5-year-old trucks and may instead prefer a newer model with better comforts, safety suites, and fuel mileage–which often help with driver retention and recruitment.

For P.A.M. Transport, although replacement cycles were paused due the pandemic, the company continued to follow its typical three-year replacement cycle plan by allowing the delivery of everything it had ordered before the pandemic, as well as orders it made more recently for trailers set to arrive in late 2020.

“We’ve still got to rotate our fleet,” said Shane Barnes, P.A.M.’s associate vice president of maintenance. “I mean, this isn’t going to last forever.”

Public Trust Key to Future of Autonomous Delivery Vehicles, Experts Say

November 30, 2020 by Levinson and Stefani Leave a Comment

Public trust in automated vehicle technology is the key to the future of e-commerce, experts say. Especially as stay-at-home orders continue and the pandemic limits in-person shopping capabilities, people who rely more heavily than ever on contactless delivery should begin learning what AV tech has to offer.

Head of policy at Nuro–a robotics company that focuses on autonomous vehicle deployment for last-mile deliveries–Matthew Lipka, explained that this public trust is extremely important, and AV systems could in fact be regularly delivering someone’s pizza sooner than we think.

“I think that’s really, really critical,” said Lipka of public confidence around AV tech. “We need to get out there and talk to people and introduce them to the technology. I think delivery technology is a way of building that public trust.”

Alia Verloes of infrastructure and transportation-focused consulting group Steer said community engagement and outreach will help to address any common concerns and also help progress a conversation about how this tech can help in the midst of the pandemic.

“Let’s involve communities at the local level [and] county level to better understand the specific concerns,” said Verloes. “Outreach means many things, but here, it’s about listening.”

The coronavirus pandemic has also brought about a “greater appetite” for delivery services, Verloes noted. She also explained that e-commerce as an industry has seen huge growth in areas like grocery shopping, but it is hard to tell if this pattern is here to stay.

We recently reported on the revealing of the U.S. Department of Transportation’s National Freight Strategic Plan, which aims to boost infrastructure planning and freight movement efficiency. The plan will work toward improving overall freight system safety, as well as the modernization of infrastructure and the development and implementation of innovative technology.

Building a strong infrastructure network involves strong economic competitiveness, according to Transportation Secretary Elaine Chao, and investment in safer and modernized infrastructure and technology could very well include boosted efforts to support autonomous delivery vehicles.

According to the National Freight Strategic Plan, e-commerce shopping habits were already growing extremely quickly even before the pandemic began. Between the fourth quarters of 2018 and 2019, e-commerce sales grew 16.7%, as shown in U.S. Census Bureau data, and has skyrocketed since. The 118-page plan also identified that e-commerce has become a major issue for current freight movement efficiency, as the industry has contributed greatly to the increase of overall truck traffic and curb space competition.

“The rise of e-commerce has disrupted our supply chains and increased demand for last-mile deliveries in areas that are already heavily congested,” said Chao at the announcement of the plan. “This National Freight Strategic Plan will help us invest strategically in our country’s future and turn these challenges into opportunities.”

Verloes explained that AV technology could not only save customers time, but it could also save lives. Shifting toward more regular AV utilization could help commuters avoid 244,000 injury-causing road crashes between 2025 and 2035. Additionally, if AV deployment is implemented during this time period, around 21 billion hours of driving for errand-related purposes would be saved for road travelers.

Because these particular automated vehicles would not accommodate people, they would not need the same hyper-focus on design as autonomous passenger vehicles have, including designs regarding driver and passenger comfort and safety.

“With no driver or passengers to worry about, our vehicle has been engineered from the ground up to keep what’s outside even safer than what’s inside,” said Nuro on its website.

Nuro’s R2 vehicle is designed strictly to transport goods and has been designated to a pilot grocery delivery program in Scottsdale, Arizona. According to Lipka, because the vehicle won’t hold any occupants, it is able to stop and move abruptly without any safety concerns.

Ground-based AV systems also have the ability to transport and carry a variety of items, whereas other mobile technology, like drones, does not. Drones, Lipka said, can deliver anti-venom for snakebites in an emergency, but can’t drive two gallons of milk to a shopper’s curbside.

Lipka also explained that transitioning to automated delivery vehicles in lieu of traditional fleets will need to be a careful and deliberate move, as this technology must operate at “automotive-grade reliability.”

“[They’re] not like scooters, where you’re just going to wake up one morning, and there’s 1,000 delivery robots on your street,” he said.

Trucking Companies Work to Help Victims of Hurricane Laura

November 29, 2020 by Levinson and Stefani Leave a Comment

Fleets have banded together to bring aid to victims of Hurricane Laura since it first hit land at the end of August.

“Truckers have moved millions of meals, water, tarps, plastic sheeting, generators, fuel, and other items in support of response operations to both Texas and Louisiana,” said a Federal Emergency Management Agency spokesperson. “They have operated day and night to keep critical commodities flowing into the states.”

Louisiana, which suffered the worst damage, has been the focus of trucking companies transporting much-needed emergency supplies.

“I have family and friends who live in the west and southwest side of the state–the Lake Charles area and the DeRidder area,” said Frisard’s Trucking Co. Inc. chief operating officer, Cully Frisard. “Of course, we have drivers that live out in those areas as well that were impacted by the storm. It really did catastrophic damage.”

Frisard, based in Gramercy, Louisiana, began organizing a donation drive, but quickly realized there was much more work to do.

“I was out there, and a bunch of other family members were out there helping,” said Frisard. “I said, ‘We have to do more than this. This is not going to be enough.’ We turned around and partnered with the United Cajun Navy in Baton Rouge. We have since delivered a total of 10 loads.”

Back in the aftermath of Hurricane Katrina, Frisard allocated seven of its trucks to help victims in the area along with the volunteer-based United Cajun Navy. For Hurricane Laura aid, Frisard noted any supplies that are donated should be sent directly to the United Cajun Navy. Frisard is also working with sheriff’s departments around the affected areas to find out what areas of relief need the most support.

“We have been hauling everything that has to do with relief,” said Frisard. “First-aid kits, water, nonperishable food items, tarps, and baby items such as formula, diapers, wipes, and hygiene items for men and women.”

Van Buren, Arkansas-based USA Truck has also been working with relief efforts and is hoping to be of the most help possible during this time.

“We’re teaming up with the United Way to provide a spot for donations,” said USA Truck assistant general counsel, Edwin Anglin. “We’re providing the drop-off location and then we’re providing transportation.”

USA Truck also set up donation collection locations in Fort Smith, Arkansas and in southwest Louisiana.

“Basically, what we’ve been hearing is that they need bottled water, Gatorade, sunscreen, cleaning materials,” said Anglin, also adding that first-aid kits, bug spray, and building materials were of high importance as well.

Anglin, who created United Way to jumpstart Hurricane Laura Relief efforts, said USA Truck is still accepting donations and began transporting supplies to affected areas the week of September 14th.

UPS Inc. has also been transporting supplies for multiple hurricane relief groups, and recently sent two truckloads of supplies to Louisiana for the American Red Cross. UPS’ fleet has also been helping The Salvation Army, ToolBank, and Good360, and has also collaborated with Coca Cola and Coyote Logistics for these efforts, as well.

“The UPS Foundation has moved 20 truckloads of relief materials to impacted areas near the Gulf Coast to help relief and recovery efforts,” said a UPS spokesperson. “Additionally, The UPS Foundation has provided $50,000 in grants for Hurricane Laura response and recovery efforts.”

UPS explained that two recent shipments held 606 rakes, 600 shovels, 600 tarps, 600 trash bags, 600 dust makes, 600 work gloves, 600 flashlights, 595 bottles of hand sanitizer, 584 storage totes, 576 clean-up kits, and 25 signs.

U.S. Xpress Enterprises has also been working with other organizations to get emergency supplies where they’re needed most, as quickly as possible.

“We’ve been working closely with our core strategic partners within our customer base to handle shipments of water, generators, batteries, and other essential relief items across a range of industries,” said U.S. Xpress chief revenue officer, Justin Harness. “With our dedicated accounts, we’re keeping essential shipments moving, helping to ensure shelves are stocked and businesses and families have the goods they need.”

Additionally, Bengal Transportation Services has been transporting food to the Lake Charles areas and has even held a cookout to feed relief workers, first responders, volunteers, and locals.

“We took several trucks from our own fleet to bring all of the supplies that we needed to cook that day, as well as other supplies,” said marketing manager for Bengal, Ashley Baham. “We had a refrigerated truck that housed the ice and chickens that is still down there. And we’re about to start a donation drive here.”

Deadline Extended for Chinese Tech Purge

November 28, 2020 by Levinson and Stefani Leave a Comment

We recently reported the rush for carriers to meet the August 13th deadline to purge all telecommunications equipment manufactured by five particular chinese companies. Luckily, that rush was made slightly less stressful by the Director of National Intelligence’s extension of the deadline to September 30th.

Originally, American Trucking Associations and a coalition led by the U.S. Chamber of Commerce brought anxious attention to the provision nearly hidden within the Defense Authorization Act that required federal government contractors to locate and rid their companies of prohibited Chinese-made equipment components.

These companies were believed to be U.S. intelligence and defense agency information systems hackers, and include Huawei, ZTE Corp., Hytera, Hikvision, and Dahua Technology. The requirement also included any affiliate of these companies, and industry experts said it could be immensely difficult for companies to locate these technologies within a complex modern system.

“Section 889 [of the law] seeks to prevent certain Chinese technology companies from accessing sensitive and classified information by tapping into devices they designed,” said ATA’s Government Freight Conference executive director, Bill Wanamaker. “All federal contractors, including all modes of freight carriers, have electronic systems that facilitate business processes and operate their equipment.”

The extension waiver was granted following a request given by Ellen Lord, undersecretary for acquisition and sustainment for the Department of Defense. Lord said it would be in the country’s national security’s best interest to extend the deadline.

“I am granting a temporary waiver under section 889(d)(2) until 20 September 2020 to allow the Department of Defense to continue its contracting activities that would otherwise be prohibited under section 889(a)(l)(B) and to provide additional information to the Office of the Director of National Intelligence to further assess your waiver request,” said Director of National Intelligence, John Ratcliffe, in a memo to Lord.

The U.S. Chamber of Commerce, ATA, and many other trade organizations have for months been working on a campaign to convince congressional staff to extend that compliance date by one full year.

According to an ATA Government Freight Conference analysis, freight logistics services typically use a variety of information technology systems–especially within the trucking industry.

“This corporate IT inventory is used to order freight, schedule service, provide in-transit visibility to customers, provide proof of delivery, invoice shippers, support electronic shipping documents, and pay by third-party payment systems,” said ATA in its analysis. “Motor carriers also typically use office computers, networks, internet service providers, routers, portable computers and scanners, cell phones, security systems, and video monitoring of terminals and warehouses.”

If a truck is more modern, there are more safety-focused and equipment-managing IT systems onboard, according to the analysis.

“Cameras are used for 360-degree video recording around the truck, and to replace rearview mirrors,” ATA continued. “Electronic monitoring of engines, transmissions, braking systems, tire pressure, speed, sudden braking, driver fatigue–all these things are a part of modern commercial motor vehicles. Commercial motor vehicle maintenance shops use sophisticated diagnostics to service trucks.”

Currently, the law urges federal contractors in all sectors to make their determination on compliance with this requirement by the end of September. If they fail to determine if any of the banned components are present within their systems and remove them, they risk being considered noncompliant and a potential debarment as a contractor.

“The thought that somebody six or seven levels down the supply chain could have on camera in a parking lot that invalidated one of our [contractors] being able to do business with us is cause for a bit of concern,” said Lord. “We are very, very supportive of it, but I do believe we need to extend it in terms of the time for compliance so that we don’t have unintended consequences.”

Other industry members oppose the prohibition of these components entirely, as stated in a letter cosigned by the Chamber, the Motor & Equipment Manufacturers Association, and the Alliance for Automotive Innovation, among others.

“If strictly enforced, the prohibition will effectively preclude the government from contracting with a company that has global supply chain or does business in overseas locations largely serviced by Chinese telecom networks, which includes major U.S. defense contractors,” said a document written by a Chamber coalition partner, the Aerospace Industries Association. “To implement this prohibition as currently drafted, contractors would be required to identify and remove any prohibited equipment or services that are present in their operations–including everything from the facilities they lease, to the networks they use.”