Transportation Providers Focus on Their Needs, Express Concern as Relief Bill Heads to Senate

July 24, 2020 by Levinson and Stefani Leave a Comment

Democrats in the House have released guidelines regarding the $3 trillion pandemic relief package. In the Senate, there have been several appropriations bills senators have said may be considered this month. Congress will consider the 12 appropriations bills by the end of September. If funding measures are not enacted by the end of the fiscal year, or a continuing funding resolution plan is not approved, aspects of the federal apparatus will be shut down.

In the fiscal year of 2021, the White House has requested $21.6 billion in discretionary spending for the Department of Transportation, which would be a decrease of 13 percent from the previous year’s level. Mandatory contract authority and obligation limitations would receive $66.2 billion, which would be an increase of 8 percent. The Federal Motor Carrier Safety Administration would receive an increase of almost 4 percent.

According to Transportation Secretary Elaine Chao, this request would also bring $1 billion in infrastructure and freight grants.

“These programs provide federal assistance for critical projects that will spur progress in both rural and urban communities across all modes of surface transportation infrastructure: highways, transit, rail, and ports,” she said.

Still, industry groups are concerned that they are not receiving enough to recover.

Transit has asked for an additional $23.8 billion. It has only had a nod of $15.57 billion within the House bill, which also included $15 billion for highways from the general fund.

The motorcoach industry, which includes passenger buses, private transit, and charter buses, asked for $15 billion to help survive the time of the pandemic. The House bill gave $750 million in grants for intercity bus providers instead.

According to Peter Pantuso, American Bus Association President and CEO, this allocation is “a great start, but it’s not enough to save jobs and an industry that provides essential and diverse services to every walk of life in America.”

For the American Association of State Highway And Transportation, officials asked for $50 billion for direct emergency assistance to state transportation departments, a request which had support from 137 House members from both parties. The House instead gave state departments of transportation $15 billion. Executive director of AASHTO, Jim Tymon, said this is good news, although it isn’t what they asked for.

According to Tymon, many states have seen gas tax revenues drop significantly during the stay-at-home order implemented across the country. Because of this, state highway departments have had to pull back on proposed projects and furlough employees.

However, Tymon is hopeful that the House bill means more money will continue to come in. “We know we’ll still see states pull back on projects,” he said. Although they didn’t receive the $50 billion they originally asked for, the number of projects they’ll need to scale back “is a lot fewer than if the $15 billion wasn’t there.”

House Transportation Infrastructure Committee member, Rodney Davis, isn’t as convinced.

“$10 billion in a $3 trillion package for infrastructure?” he asked. “Seriously?”

Rep. David E. Price, chairman of the House Transportation-HUD Appropriations Subcommittee, defended the legislation. “A big part of the state and local aid goes [to] transportation,” he said. “That far outstrips any specific provisions.”

The American Trucking Associations is currently arguing for liability overhaul and tax relief, while the Owner-Operator Independent Drivers Association is pushing for measures such as driver compensation and hazard pay, as well as improved assistance for Small Business Administration. The group has also asked Congress for a suspension of heavy vehicle use tax and unified carrier registration fees.

Groups within the trucking industry that previously benefited from coronavirus spending bills are having to wait on asking for more.

According to John Bozzella, president and CEO at the Alliance for Automotive Innovation, the industry is not making a request, although a group of lawmakers from automaker states Ohio and Michigan have asked the House to focus on the U.S. auto industry for aid in the next bill.

He also said the $2 trillion coronavirus law brought liquidity for the industry that was needed, even though the current sales environment within trucking is in question.

A statement was released last month by the industry expressing concerns for the latest package, saying: “We are disheartened to see yet another massive aid package that is again lacking in assistance for our larger members and does not provide immediate liquidity relief for an industry in dire need. “

According to Fast Park’s Rob Chavez, the industry “has been decimated” and is unable to access help at the federal level. “It’s a month-to-month situation here,” Chavez said of his business, which is currently doing the work of 20 employees with just two. “It sounds almost ridiculous to say it, but companies weren’t built for no revenue.”

Haul Lengths and Congestion Have Dropped Significantly, According to New ATRI Survey

July 23, 2020 by Levinson and Stefani Leave a Comment

As the coronavirus pandemic continues on, it is also completely reshaping the transportation industry. Short-hauls are becoming the norm as freight demand becomes less long-haul-oriented.

The American Transportation Research Institute and the Owner-Operator Independent Drivers Association Foundation have collaborated on a survey regarding COVID-19’s impact on the trucking business.

The “Trucking Industry Perspectives: how is the Coronavirus Pandemic Impacting the Industry?” survey received more than 5,000 responses within two weeks.

“The trucking industry has weathered national disasters in the past and is doing so again through the current COVID crisis,” said Rebecca Brewester, ATRI President, when the findings were released last month.

According to the survey, trip lengths have significantly diminished, and respondents also said their number of local trips under 100 miles had risen from 7.8 percent of their total trips pre-pandemic to 18.2 percent during the months of March and April–more than doubling.. Additionally, the number of long-haul trips of over 1,000 miles tropped to 22.7 percent after shelter-in-place was implemented–a decline of 10 percent.

“While the underlying cause cannot be clearly discerned from the survey data, anecdotal evidence is that longhaul movements of international containers decreased at the same time that fleet operations recalibrated to moving essential consumer goods from local and regional warehouses to retail establishments,” the survey explained.

Fleet size also plays a large part in pandemic-related trip length changes, according to the survey.

“While the pandemic decreased trip lengths overall, the impact was most pronounced among smaller fleets. For fleets of fewer than give trucks, 40 percent of respondents reported decreased average trip length,” with almost a quarter of truckers indicating that their average trip lengths had become “much lower.”

97 percent of respondents said they had noticed shorter delays related to traffic congestion. 77 percent of respondents were truckers, and most of them were between the ages of 45 and 64 and had at least 11 years of experience. 13 percent of respondents were identified as personnel and fleet executives specializing in operations or safety. The rest were other industry workers, such as retired drivers, sales managers, and instructors. Responses were collected from across the entire nation and from fleets of all sectors and sizes.

40 percent of respondents operating 5-axle refrigerated trailers said they had experienced a freight volume increase in regards to consumer goods. 5-axle flatbeds, however, saw an opposite effect, saying their freight volumes had become “much lower.” Additionally, with fewer passenger vehicles on the roadways, the amount of petroleum being hauled has also dropped significantly.

“This research puts solid numbers to what we otherwise only suspected,” said OOIDA Foundation research analyst, Andrew King. “While we may be turning the corner on the COVID pandemic, we’re not out of the economic woods yet.”

Nearly half of survey respondents also reported lower overall freight levels, with another 28 percent saying levels have stayed consistent. The remaining 22 percent reported operations being higher than they were before the pandemic, which are likely due to those transporting medical supplies and essential goods.

In terms of consumer demand, 45 percent reported higher numbers during the pandemic, and the 31 percent reporting much lower demand were straight truck operators.

“It’s sort of a leading indicator that what’s going on at home and in the few stores that are open is sort of replicated in the trucking industry,” said Dan Murray, ATRI Senior Vice President. “The one sort of shocker for us was, we were under the impression that all the online shopping that was going on while people were at home would drive straight truck deliveries way up, and yet we saw a decrease in straight truck deliveries.”

Straight truck fleet survey respondents are the providers of services to shut-down businesses during the pandemic, and many straight truck fleets working mostly within the e-commerce sector did not respond to the survey, Murray explained.

In regards to parking and detention time, 44 percent of survey respondents said finding parking for trucks during the pandemic had become harder. 42 percent said parking was the same as it had been, which meant it was still difficult, but not worse than usual. For driver retention, over half of respondents said loading and unloading times had stayed about the same, while 34 percent said the times had increased. Looking to upcoming months, 45 percent of respondents indicated that they think freight volumes will become worse throughout the rest of the pandemic, and 41 percent expect freight volumes to stay as they have been.

“It looks like, essentially, no one is unscathed in the industry at some level in the supply chain by what COVID is doing to folks,” said Murray. “You’re getting hit somewhere along the way by something.”

Fleets Look to Onboard Camera Systems for Lower Insurance Rates

July 22, 2020 by Levinson and Stefani Leave a Comment

Trucking companies have been working to avoid protracted litigation, fight rising insurance costs, and coach their drivers with onboard cameras.

The reasoning behind this development is that having cameras installed on a truckers’ dashboards will potentially lower premiums, especially if a recording exonerates a driver after a dangerous event. Because of this, most insurance companies have expressed their support of these onboard cameras; however, it has long been in question whether or not these in-cab video capabilities will actually bring discounted insurance premiums.

Currently, trucking companies believe that once data and footage are analyzed and can show that fleets are effectively using this technology to train drivers and keep them accountable, the insurance breaks will come. Still, expensive settlements within trucking litigation have seen large increases, which, in turn, boost fleets’ overall insurance costs.

“These types of settlements are driving our trucking companies out of business, driving insurance rates to levels we’ve never seen in the last decade,” said Jim Angel, video intelligence solutions vice president of Trimble, a company providing Class 8 Fleets with in-cab camera systems.

Fleets can also gain liability protection with onboard video capabilities, though.

“More often than not, the truck driver is exonerated,” said SmartDrive operating officer Jason Palmer. SmartDrive offers fleets a variety of video-based safety programs. “It’s really there to protect the driver, and even if they are at fault, they’d want to know about it right away.”

Angel explained that because fatal car-truck crashes are typically caused by passenger car drivers (70-75% of the time, according to an American Trucking Associations 2013 report), companies can easily get lower insurance deductibles when they win most litigation battles. Therefore, with the help of onboard camera footage, trucking companies will no longer have to pay out as many false claims.

“If you take advantage of the odds of truck drivers only being at fault a small minority of the time, then having the right tools is absolutely key,” explained Angel.

Bob Fuller, AssuredPartners/Fleet Risk Management agency president agrees.

“Paying for claims and damages that are the fault of the truckers is not really the issue,” he said. “No one is trying to dodge legitimate liability, but we’re trying to isolate that legitimate liability as compared to frivolous litigations–claims that have no foundation–and the camera certainly helps us do that.”

Onboard camera system supplier, Lytx, has worked with insurance companies for over 10 years. Eliot Feldstein, Lytx corporate development senior vice president, said this collaboration is to the benefit of everyone involved.

“[Insurance companies] have realized early on that once they write a liability policy for a trucking company, it’s in their best economic interest to make sure the trucking companies have the lowest collisions and the best performance they can,” Feldstein said. “A safer fleet with a better track record gets better insurance pricing. They’re a better risk when they go out and look for insurance, and we are able to formalize that with a variety of insurance companies.”

Feldstein also said that insurers will often take on the load of subsidizing the cost of Lytx systems, because video evidence in a litigation can be crucial. Additionally, he asserted that fleets need to use telematics system data in effective ways in order to deliver better services and settle claims more quickly and easily.

Additionally, maintaining safe driving methods and behaviors is a priority for all sides. These camera systems give more opportunities for trucker coaching than ever, and insurance companies are focusing on this aspect.

“[The technology] makes drivers more conscientious of driving skills when they realize the potential for what they’re doing to be recorded. It can be a great training tool if it is implemented properly,” said Fuller. “The telematics will allow an intervention on an unsafe behavior much earlier, which translates into lower insurance costs and a more efficient operation.

Ensuring truckers are gaining valuable training from video data is particularly important to insurers, said Todd Reiser, vice president at Lockton Cos., a risk management firm.

“That camera footage and data being reviewed and utilized and being part of the training process on an ongoing basis is the most important thing insurance companies want to see,” he explained.

Causing fewer crashes and a decrease in unsafe driving behavior through data review and coaching is the main goal of insurers, said Brandon Krueger, senior director of IT and fleet services at KKW Trucking.

“You’re seeing these events you wouldn’t otherwise see that create coachable events–you’re coaching against risk behavior–that will theoretically result in [fewer] events per miles driven. It’s that claims experience the insurance company is looking for and what they’re basing their premiums on,” he explained.

Levinson and Stefani Lawyers Attend Virtual Convention

July 22, 2020 by Levinson and Stefani Leave a Comment

Ken, Jay, and Dan attended this year’s American Association for Justice’s Annual Convention. Though originally scheduled to be held in Washington, D.C., COVID-19 dictated a change in plans. Instead, the yearly gathering of trial lawyers from across the country went fully virtual.

Spread across nearly a week, approximately 1,200 attorneys gathered in a multitude of Zoom meeting rooms for business meeting, seminars, and virtual networking events. The seminars provided countless hours of learning about changes in the law, along with new strategies, tips, and tactics to better serve individuals and families impacted by careless individuals and companies.

This was Dan’s first AAJ convention, and though it was different than past events, it was certainly worthwhile. “I was excited to attend my first AAJ conference, albeit virtual” commented Dan. “So many great lawyers sharing knowledge and experience to help each other better serve their clients — it really shows the level of camaraderie in the field.”

Ken and Jay have attended numerous AAJ conventions over the years and their commitment to the organization and what it represents really shined as both were elected to leadership positions again this year.

Ken, who holds leadership roles with AAJ as a member of the Board of Governors, was voted Chair-Elect of the Trucking Litigation Group (TLG) of AAJ. The group provides education and support resources for its members, who represent individuals and families impacted by truck crashes.

Ken was also appointed to the Appointed to Law Schools Committee (LSC) and the AAJ Press Advisory Board (PAB). The LSC helps run the law student trial advocacy competition, which helps mentor law students and awards scholarships. The PAB coordinates publishing Trial Magazine and books for trial lawyers, while providing assistance and peer review services for AAJ authors.

Jay was elected Chair-Elect of AAJ’s Sole Practitioner and Small Firm Section, which provides education and support for solo and small-firm trial lawyers in the areas of firm management and marketing.

Ken and Jay are in line to become Chairs of their respective groups at next summer’s AAJ Annual Convention, which is slated to be held here in Chicago.

Medical Equipment Supply Chain Formed in Northeast

July 21, 2020 by Levinson and Stefani Leave a Comment

Seven states in the northeast are working to form a new consortium for the purchase of $5 billion in medical equipment for a regional supply chain during the COVID-19 pandemic.

Connecticut, Delaware, Massachusetts, New Jersey, New York, Pennsylvania and Rhode Island governors announced the multi-state agreement last month, in which they will assess the region’s needs and demands for personal protective equipment, testing kits, and medical gear in order to bring costs down and create overall stability for the supply chain in the area.

“Our states should never be in a position where we are actively competing against each other for life-saving resources,” said Phil Murphy, Governor of New Jersey. “By working together across the region, we can obtain critical supplies as we begin the process to restart our economies, while also saving money for our taxpayers.”

These states will also be coordinating PPE inventory policies within each state’s health care system so that they are properly prepared in the case of a second wave of coronavirus. States will also look into new policies regarding necessary supplies for first responders and nonprofit organizations.

“We’re doing regional planning now on the reopening because every state is linked to every other state. If we do something in New York, it affects New Jersey, Connecticut, Delaware, etc.” said New York Governor Andrew Cuomo.

In the public briefing, Cuomo discussed via video call–with New Jersey’s Murphy, Ned Lamon (Governor of Connecticut), Tom Wolf (Governor of Pennsylvania), and John Carney (Governor of Delaware)–the difficulties states and private sector groups have been facing in securing medical equipment. Cuomo said the current competitive system in place for doing so is inefficient.

“This is not the way to deal with this situation,” Cuomo explained. “Plus, we just drove up prices by our own competition. That was just a situation that nobody anticipated. You couldn’t get enough gowns; you couldn’t get enough masks.”

States will be identifying local suppliers who can meet the demand of this particular region throughout the next few months. These efforts are meant to decrease the possibility for supply chain disruptions making PPE, ventilators, tests, and sanitizer less available, while also pushing regional economic development forward.

“Our health care workers should never have to worry if we have enough PPE to keep them safe,” said Gina Raimondo, Governor of Rhode Island. “Over the past two months, we’ve been scouring the earth for supplies and have worked hard to meet the demand on the front lines. We know that, in order to safely reopen the economy, we need a long-term supply of PPE for all critical infrastructure workers.”

These northeastern states are also working to implement technology, such as 3D printers, in finding new production methods for making PPE products.

“We can wait for the national stockpile; we can wait for that plane to land from China,” said Lamont. “Let’s see what we can do ourselves. We’re much stronger together.”

New York is also requiring that all hospitals have a 90-supply on hand of personal protective equipment to avoid the shortages that occurred during the peaks of the pandemic. The northeast has been hit particularly hard by COVID-19; there were 316,415 positive cases of the virus reported in early May. According to Cuomo, the key to making this initiative successful is for these states to effectively and consistently work together.

“The word ‘neighbor’ has a different connotation,” Cuomo said. “You don’t normally think of surrounding states as neighbors. You think of the person next door as your neighbor, but [these states] are neighbors. They’ve acted as neighbors.”

“I cannot tell you how supportive Governor Murphy in New Jersey and Governor Lamont in Connecticut and the other governors in our coalition have been,” Cuomo continued. “[It is a relationship], literally, where [I] can pick up the phone and I say, ‘I need help with masks. Do you have any extra masks? Do you have any extra gowns?’ That’s how these states responded. It was a beautiful and generous way of operating that was an inspiration to me.”

Cuomo also says it is important to look at this coalition as beneficial to taxpayers.

“When you put all those hospitals together, all that public health capacity together–which will make us more competitive in the international marketplace–I believe it will save taxpayers money,” he said. “I also believe it will help us actually get the equipment because we have trouble still getting the equipment…because these vendors on the other side, they’re dealing with countries, they’re dealing with the federal government–why should they do business with one state when they can do business with an entire country?”

FMCSA Gives Truckers One Million Masks During Pandemic

July 20, 2020 by Levinson and Stefani Leave a Comment

The Federal Motor Carrier Safety Administration is helping in the distribution of one million protective face masks to truckers throughout the country.

“We have all seen the incredible efforts that the nation’s commercial drivers are making each day to deliver goods and supplies to homes, businesses, and hospitals throughout America. With the help of our state partners and the motor carrier industry, these protected masks will help truckers remain safe and healthy while they continue to maintain our nation’s supply chain,“ said Jim Mullen, Acting Administrator for FMCSA.

The agency announced this initiative as a partnership with other industry groups, state representatives, and motor carriers. Masks have been provided by the Federal Emergency Management Agency.

“Under Secretary Chao’s leadership, the Department of Transportation has been supporting America’s truckers during this challenging time.” Mullen explained.

The FMCSA and its collaborators on this effort have planned to distribute 800,000 masks to truckers in: Arkansas, California, Georgia, Illinois, Indiana, Nebraska, New York, and Texas. The remaining 200,000 masks will be sent directly to motor carrier companies to give to their drivers.

“[American Trucking Associations] is pleased to be working with FMCSA and our state associations to help distribute masks to professional drivers,” said Sean McNally, ATA spokesman. “Access to [personal protective equipment] is an important part of keeping our supply chain and economy running, and we would like to thank Acting Administrator Mullen, Secretary Chao, and President Trump for their efforts to keep our drivers safe and healthy.”

FMCSA distributed 50,000 masks through the month of April in Illinois by working with the Illinois State Police and the Illinois Trucking Association. Distribution for these masks was set at travel center Lincoln Oasis (located at an overlap of interstates 80 and 294).

“Face masks have been difficult for many drivers to find, especially with Illinois’ new requirement for face coverings in public,” said Matt Hart, Illinois Trucking Association executive director. “These masks will provide truck drivers with additional protection during the coronavirus pandemic while they safely deliver the groceries and medical supplies that Americans need each day.

Mask distribution is also taking place in New York within heavily virus-stricken areas, such as the Bronx, Staten Island, and Sloatsburg Rest Area. In California, mask distribution is located at eight California Highway Patrol Field Divisions and at two additional points outside of Los Angeles.

“We thank the FMCSA for helping to protect the health of our nation’s truck drivers as they continue to deliver essential goods,” said Shawn Yadon, California Trucking Association CEO.

Additional areas of mask distribution include: the Social Hills Rest Area at Interstate 30 East/West and mile marker 93 in Arkansas, Interstate 75 Southbound at mile marker 179 in Georgia, rest areas at Interstate 70 Westbound (mile marker 107) and Eastbound (miler marker 65), Interstate 65 Southbound (mile maker 150) and Northbound (mile marker 72), and Interstate 94 Westbound (mile maker 43) in Indiana, Goehner Truck Parking Area Interstate 80 at mile marker 375 Westbound and Melia Hills Rest Area Interstate 80 at miler marker 431 Westbound in Nebraska, and Interstate 35 Northbound at mile marker 362A, along with multiple inspection facilities, in Texas.

In addition to these efforts, the FMCSA says it has taken further action in response to the COVID-19 pandemic to help support the country’s trucking industry and supply chain by releasing guidance regarding restrictions on movement–including shelter-in-place orders, as well as a guide regarding essential workers.

The guidance explains that essential workers include “employees supporting or enabling transportation functions,” including truckers, bus drivers, dispatchers, repair technicians, warehouse workers, truck stop workers, and rest stop workers, as well as DMV employees, towing services, roadside assistance workers, railroad employees, and maintenance crew. These workers, according to the guidance, should keep in mind that “truck drivers delivering needed supplies should stay in their vehicles as much as possible as supplies are loaded and unloaded,” as well as avoid being within six feet of others, and to use electronic receipts when possible. If truckers must stay in restricted areas to rest, “they should wash their hands frequently and practice social distancing to the extent possible.”

Click here for a full list of mask distribution areas, and here for more information on this guidance and what else FMCSA is doing to help trucking efforts in the pandemic.