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Industry AV Plans Should be Top Priority, According to ATA

January 14, 2022 by Levinson and Stefani Leave a Comment

American Trucking Associations is once again urging the U.S. Department of Transportation to adopt new, nationwide policies in regards to autonomous technology deployment for the transportation industry.

This call comes as USDOT begins efforts to renew its near-term strategic plan to further facilitate AV tech deployment within the trucking sector. The department has been seeking industry expert and stakeholder comments on the matter.

“Stakeholder engagement must be central to the department’s strategic plan,” ATA said. “Especially as DOT implements the programs and requirements of the [$1 trillion] Infrastructure Investment and Jobs Act, we note that partnerships and collaboration with [the] industry will be crucial to [advancing] productivity-boosting and lifesaving AV technologies.”

Other federal initiatives, like the National Highway Traffic Safety Administration’s industry feedback-reliant voluntary safety self-assessment, will provide a variety of benefits to these efforts, ATA explained.

“Automated trucks present the next transformative opportunity to promote safety, improve the efficiency of freight movement and the U.S. logistics system, and maintain U.S. competitiveness in innovative automotive and mobility technologies,” said ATA in its recent letter to USDOT.

The implementation of these modern technologies should be regular and steady in order for the industry to stay on top of the latest methods of increasing productivity and safety, as well as to continuously meet constantly-changing federal standards, ATA continued.

“The trucking industry relies on interstate highways to facilitate the free flow of goods between states,“ the group explained. “Accordingly, it is important that state and local laws do not create disparities that slow the adoption of these safety and productivity-boosting technologies.”

To remain a competitive industry, regulators must stay ahead of the curve with these changes, as well.

“A clear process and standards-setting role for the federal government that precludes state efforts to regulate vehicle design is a key component of this pathway to commercialization,” said ATA.

Additionally, the department should begin working with agencies across the country to find methods of creating efficiency through performance-centric standards, according to ATA.

“Industry best practices can provide a vital technical basis to assist DOT in [the] evolution of a regulator framework,” ATA explained. “Requiring [AV] to meet a certain level of safety, rather than use any specific technology, can focus regulations on managing risk within specific operating environments.”

DOT should also invest in programs to solve congestion-related issues, ATA said, pointing to rulemakings such as NHTSA’s ‘Framework for Automated Driving Systems Safety,’ and the Federal Motor Carrier Safety Administration’s ‘Safe Integration of ADS-Equipped CMVs.’ Congestion-solving investments would allow the industry to focus on major freight corridors in order to boost the flow efficiency of the nation’s goods, as the modernization and maintenance of critical connectivity points along the supply chain is currently of the utmost importance.

“We advise against federal policies that are likely to prevent or hamstring state and local agencies’ efforts to expand highway capacity,” said ATA. “This includes conditioning the expenditure of federal funds for new capacity on a showing that alternatives, such as operational strategies or investment in alternative transportation modes, are definitely ruled out.”

Currently, ATA is also calling for further interaction between DOT and the transportation industry itself in regards to next steps in implementing further low-carbon-emission tech in a manner providing proper fueling infrastructure, sufficient testing, and consideration for the needs of truckers.

ATA is also requesting that President Biden find methods of offering state and city guidance for the deployment of electric vehicles as well as overarching standards for charging stations across the country. A stakeholder group aiming to move forward electric vehicle policies should also be set forth by the administration, ATA claims.

USDOT notes that it will continue to work on objectives to “strengthen our world-class organization” through projects improving safety, equity, sustainability, and economic growth, and that it is always working toward advancing “the department’s mission by establishing policies, processes, and an inclusive and innovative culture to effectively serve communities and responsibly steward the public’s resources.”

Stakeholder and public input is requested by the USDOT regarding these plans to “invest in our transportation system to provide American workers and businesses reliable and efficient access to good-paying jobs, resources, and markets.”

2022 Set to See Similar–If Not Worse–Trucker Shortage, Experts Say

January 13, 2022 by Levinson and Stefani Leave a Comment

“I wish I had a crystal ball to be able to see the future,” said CPC Logistics vice president of operations and safety, Daniel Most, of the trucker shortage continuing into 2022. “I think there’s still going to be a shortage that’s significant because of the supply and demand. There is still going to be a lot of freight to move next year and the same [amount] or fewer drivers.”

The truck driver shortage is clearly not being left behind in 2021, many experts say, with American Trucking Associations estimating that at least 80,000 drivers are currently needed in the industry. By 2030, that number could reach higher than 160,000, all thanks to a lack of truck driver retention and recruitment, as well as higher demand than ever brought about by the surge in e-commerce following the pandemic.

Now, many carriers are scrambling to find ways to address the situation, such as offering high pay boosts, sign-on bonuses, and added benefits. Because of this, ATA now believes that trucker incomes are rising at a rate of five times more than they have in the past, and longhaul weekly driver earnings have risen by 25%–at least–since early 2019.

Still, these temporary incentives only come as carriers throughout the industry have to work harder than ever to remain competitive in the midst of an incredibly limited pool of truck drivers seeking new jobs.

“I think as long as the freight market continues to do what it’s been doing and from everything that I’ve been hearing from the folks we work with, I don’t expect that to change, at least through the first two quarters [of the year] and possibly the first three quarters,” said Professional Driver Agency’s director of operations, Scott Dismuke.

A shift in truck driver perception and culture may be the key to solving this ongoing issue, he noted.

“I think it’s just going to be more of the same at this point,” Dismuke said. Unless we can start getting more drivers–newer drivers–attracted to the market, we’re still going to be up against the wall.”

In regards to current truckers being removed from the nation’s roadways due to failing alcohol or drug tests, the Drug and Alcohol Clearinghouse has reported 93,808 such violations since 2020, with a majority of those forgoing any return to the industry once their commercial driver licenses were revoked.

“Only 20,000 of them have done what they needed to do to get their license reinstated,” said CPC Logistics’ Most. “There’s 80,000 right there, and we’ll be on pace to lose another 50,000 to 60,000, potentially, next year. And then there are all the retirements. With the aging driver force, can we get the younger population interested in this type of job?“

Additionally, trucking companies need to begin heavily prioritizing regular communication with drivers while they’re on the road–so that truckers feel connected and supported, especially if any potential obstacles or vehicle troubles occur during a drive, Dismuke added.

“When it comes to the drivers that are in the market right now and new drivers entering the market, I think we’re in for more of the same,” he explained. “Carriers knowing what their drivers are saying right now is probably more important than it’s ever been, because you have to have the ability to identify and intervene in order to retain drivers right now.”

The boom in e-commerce will cause the current demand for freight to remain high, if not grow even more, Dismuke said, and 2022’s shortage severity will depend on just how much worse that demand becomes.

Finally, the ongoing shortage in semiconductor chips has exacerbated the issue as the available supply of equipment has become lower than usual.

“I think, once you get this whole chip thing figured out–a lot of the chips come from Malaysia–I think you could possibly see a pickup in the auto-hauling side of things,” he said. “Then, depending on what happens with the president’s restructure bill, you could see an increase in a lot of the construction…which would be good for flatbed [capability]. I think there are still a couple of issues that we need to wait and see what happens [with] that could actually increase what is already a very heavy freight market.”

A Look Back on 2021’s Top Industry Events

January 12, 2022 by Levinson and Stefani Leave a Comment

2021 was a year like no other for the trucking industry, complete with vaccine mandate debates, higher-than-ever demand from the latest surge in e-commerce, supply chain disruptions, and an ongoing need for major infrastructure improvements.

Here’s a look back at some of the most prominent news the industry saw during the second year of the coronavirus pandemic.

Supply Chain Woes Continue

Truckers and ship workers alike waited for solutions in regards to crowded ports with long pickup and unloading lines, which were often reaching numbers of nearly 100 ships waiting to unload at a time. Now, supply chain disruptions have been a common concern among industry members and the public alike, with folks constantly worried about store shelves staying stocked and members of Congress struggling to find ways to more quickly create solutions.

These issues did urge the White House, along with Congress, to negotiate new legislation aiming to improve vast amounts of American infrastructure, though.

Infrastructure Bill Passes

The $1.2 trillion Infrastructure Investment and Jobs Act was approved, allocating $115 billion for bridge and highway improvement projects across the nation, passed by 215 Democrats and 13 Republicans voting in its favor.

Truck Driver Shortage

The trucker shortage is still one of the most pressing issues to impact the industry, with trucking companies rolling out pay boosts and benefit improvements to incentivize more trucking candidates to come on board.

Additionally, the Biden administration announced its plans to boost retention of current truckers and recruitment of new ones with the 90-day Biden-Harris Trucking Action Plan. In the plan, carriers, drivers, and unions will be invited to listening sessions to find ways of improving trucker work-life balance, pay, and detention and delay issues. Additionally, experts will work to find ways of attracting more military veterans into the industry, supporting pilot program training and licensing for drivers between 18- and 21-years-old to drive within interstate commerce, incentivizing more women to explore careers in trucking, providing assistance to states with CDL process challenges, and creating further apprenticeship opportunities for drivers.

COVID-19 Rages On

The workforce of truck drivers has dwindled further as some catch the disease, and others leave due to health concerns or a refusal to become vaccinated. Mandatory vaccinations and testing are both in the works for the industry, especially for companies with 100 or more employees. The mandate has reached the Supreme Court, which heard oral arguments on the issue last week.

Additionally, both U.S. and Canadian governments will set forth requirements next month mandating that truckers crossing borders be fully vaccinated.

Still, freight demand is at unprecedented highs as more and more people complete most of their shopping online, a culture of e-commerce that skyrocketed at the beginning of stay-at-home orders early on in the pandemic.

Electric Vehicles Take Reign

Various truck and passenger vehicle manufacturers are expanding choices when it comes to electric vehicles, with many states beginning to mandate electric-vehicle-only manufacturing laws that will come into effect in the coming years.

With these technological changes, many truck drivers are having to learn to adapt to a plethora of new in-cab software and phone application usage while on the job–a modern shift that is believed to be causing many older truck drivers to leave the industry early.

Truck Driver Pay Expectations Reach New Heights

Carriers constantly announced pay jumps for their truckers in 2021, with many also boosting driver benefits multiple times over the span of the year. In fact, driver pay ranked third in the American Transportation Research Institute’s annual list of top industry issues.

Fleets, in a bid to retain and recruit as many truckers as needed in the midst of the driver shortage, began offering sign-on bonuses as high as $15,000, with others increasing accessorial pay and health benefits, along with various new compensation programs to give drivers more control in regards to how they’re paid.

Mitigating pay losses during long shipping and receiving wait times continues to be an issue for truckers, but Biden’s Trucking Action Plan will aim to “lay the foundation for a next-generation trucking workforce that will strengthen U.S. competitiveness and support millions of good driving jobs for years to come.”

ATRI Laments Both Small and Large Trucking Injury Verdicts; Ken Levinson Weighs in on Fair Trials

January 5, 2022 by Levinson and Stefani Leave a Comment

Trucking industry complaints against small and large verdicts have been released in a new American Transportation Research Institute report, stating that even verdicts of less than $1 million have a lasting, cumulative effect on the industry, allowing it to experience significant financial strain.

The report also made sure to point out that trials consisting of cases involving deaths or injuries lead to larger awards, although it is unclear why this isn’t a no-brainer.

“The reality is that a jury and a judge hear evidence to value a case, and many times, families are left devastated and people are killed,” explained Ken Levinson of Levinson and Stefani. “Then, the verdict is high because the consequences and damages are so high due to unsafe behavior. I think any complaints against this are all propaganda to make more money for the insurance companies.”

In ATRI’s study, named “The Impact of Small Verdicts and Settlements on the Trucking Industry,” ATRI worked to dive into expensive litigation outcomes and the impacts even smaller awards have on motor carriers.

“While cases of this size are not individually as devastating to motor carriers and thus do not attract the attention of media outlets, in aggregate, they have a significant negative impact on the trucking industry,” the group said in its study.

Levinson noted that pointing to smaller cases that have deeper impact on the industry is tactical, and doesn’t give an accurate outlook of this particular litigation landscape.

“It’s more propaganda for the trucking industry to save money,” he said. “They’re using examples of outliers and distorting the facts to propagate their agenda and scare people.”

ATRI’s study had support from one attorney of Carlisle, Pennsylvania transportation law firm, Marcello & Kivisto LLC.

“This analysis proves a theory that I have always had: there are two markets as to the value of cases–the settlement market and the trial market,” firm attorney Doug Marcello, who worked with ATRI in its report. “There should be one market, and that is what a case is objectively worth.”

Levinson explained that this belief has little basis in the reality of the legal process.

“That’s absolutely absurd,” he said. “There is no objective value of a case—that’s why we have juries. This isn’t like a breach of contract, where the contract was made to provide a good or service for a million dollars and someone made a breach in contract. We’re talking about human lives—there is no objective value. That’s why we have a jury of unbiased citizens in the community hearing the evidence and assessing what they think the value is.”

In its report, ATRI claimed that cases involving severe injury have high average verdicts of around $368,237, and that cases involving deaths have the highest average verdicts of around $607,532. It also lamented findings that settlements typically lead to larger verdicts than jury cases.

“All sides present their case in a fair courtroom, and the jury, based on the evidence and facts, decides what they believe is fair and reasonable,” Levinson explained. “The other premise is that there’s a difference between settlement value and trial value—of course there is. Because there’s no objective value of a case, all sides of the equation evaluate the facts and the evidence and assess what they think a jury would do and they settle a case based on their best estimate and the assessment of risk. That’s why it’s different.”

Of course, cases involving any severe injury or fatality are deserving of large verdicts to mitigate those medical costs as well as the trauma endured.

“That’s why we have a jury of unbiased citizens in the community hearing the evidence and assessing what they think the value is,” said Levinson. “If there was an objective value, we could just plug it into a computer and it would spit out a number. There is no such thing; that’s like saying there is an objective value as to who should have won the last ten presidential elections. That’s why human beings make decisions. When you’re evaluating the death of a spouse or a child or a loved one, there’s no one objective value. That’s not how life works.”

A Look Into CVSA’s New Fatigue Management Program

January 5, 2022 by Levinson and Stefani Leave a Comment

The North American Fatigue Management Program is now in place within the Commercial Vehicle Safety Alliance in an effort to reduce driver fatigue and the dangerous incidents that can come along with it.

The Federal Motor Carrier Safety Administration initially urged CVSA to create and manage the program, which would operate as a training initiative to educate and prevent overall risks in relation to driver fatigue. FMCSA and Transport Canada are now collaborating with CVSA to bring the program to full force.

Throughout a four-phase, years-long process, medical scientists and sleep analysts within the United States and Canada have worked to implement the North American Fatigue Management Program, which has a variety of methods in place to help finally bring an end to driver fatigue and fatigue-involved crash incidents.

These methods include techniques to identify and treat various sleep disorders, ways to utilize driver fatigue management technology innovations, and support in easily-accessible fatigue prevention training taking place online. Additionally, it includes fatigue prevention education for everyone involved in the transportation process–everyone from driver managers, driver families and spouses, safety managers, and the commercial motor vehicle drivers themselves, to motor carrier executives, motor carrier managers, driver managers, and freight shippers and receivers.

“For the past several years, Canadian and American regulators, carriers, and researchers have worked on the development of a comprehensive approach for managing fatigue,” said NAFMP on its website. “This work has been led by a consortium of government and industry agencies with an interest in developing a more effective means of dealing with professional driver fatigue. The NAFMP Steering Committee agreed to develop a comprehensive FMP that would enhance a carrier’s ability to effectively deal with the challenge of fatigue in a highly competitive, widely dispersed, and rapidly changing industry.”

Additionally, CVSA will work to boost the program and its outreach by offering program information sessions at CVSA conferences and events, hosting steering committee and program meetings to relay program initiatives and improvements, hosting live and pre-recorded question and answer sessions, moderating forums allowing users to ask questions and offer feedback, hosting fatigue management-related webinars and discussions, and offering English, Spanish, and French content to make this information as accessible as possible.

“The multi-year collaborative research to develop, test, and evaluate components of a fatigue management program for commercial vehicle operators has resulted in a thorough understanding of the issues, opportunities, and challenges inherent in managing operator fatigue in a 24/7 motor carrier environment,” explained NAFMP. “The NAFMP was developed through four distinct research, development, and testing phases.”

During phase one, focus groups and motor carriers worked to help in the design of the initiative, with researchers identifying specific fatigue management requirements and creating an effective method of reaching drivers, managers, and dispatchers, with six drivers undergoing initial beta testing.

During phase two, field testing allowed for training and educational materials to be easily assessed and developed, with treatment and screening for sleep apnea being implemented in the program. Six fleets and 38 drivers in Canada began evaluation, followed by eight additional Texas drivers.

Next, 77 commercial vehicle drivers in California, Quebec, and Alberta participated in operational field testing during phase three with findings including positive correlations between reduced critical events and sleep duration and sleep efficiency.

These trends included less fatigue reported in drivers, with improved reported sleep quality on duty days, longer sleep on duty days, a reduction in the proportion of drivers reporting critical events, a significant reduction in critical events per kilometers driven, and duty day improvement regarding sleep duration and sleep efficiency on those days as compared to duration and efficiency in sleep during rest days.

The reduction in drivers reporting critical events had dropped from 46% to 29% during this period, with a 40% overall reduction in critical incidents per kilometer driven.

Finally, phase four involved the creation of the Implementation Manual, training materials, NAFMP website development, and recommended guideline implementation based on all findings from the previous three phases.

Consumerism Rages On Despite Pandemic Setbacks, New Statistics Show

January 1, 2022 by Levinson and Stefani Leave a Comment

2021 has been a year of consumer demand unlike any other–the coronavirus pandemic brought with it stay-at-home orders and folks rushing to online shops to have their home and personal care goods delivered quickly, a culture of modern shopping habits that is likely here to stay.

America’s truck drivers stepped up to the plate to keep the economy moving forward and to get products to store shelves and front doors efficiently, working harder than ever to keep customers happy and shops stocked. Because of this, the country’s shopping methods have changed drastically, with online purchases becoming a part of daily life for most people.

Now, American consumer confidence has risen significantly even as prices continue to rise and the virus’ latest variant makes its way across the world. In fact, although U.S. consumers admit their perception of overall conditions has dropped, their outlook into 2022 is a positive one–a perspective that is suprising consumerism experts.

Last week, business research organization, the Conference Board, noted that its consumer confidence index rose from 111.9 in November to 115.8 in December–it’s highest index number since July of this year. The consumer confidence index factors in current consumer perspectives regarding the present consumer conditions at hand, as well as public outlook for consumerism in the near future.

Apparently, although prices have been increasing lately at the fastest year-over-year rate since 1982, consumer inflation expectations are looking much more positive in December 2o21. Experts attribute these assessments to the falling gasoline prices that have been seen at gas stations across the country over the last month or so.

“Despite high inflation and the rising omicron wave, consumers are bullish on 2022,” said Navy Federal Credit Union economist, Robert Frick. “This reflects growing economic momentum, as job openings remain high and prices are dropping at the pump.”

These outlooks show overall positive changes on the horizon for consumerism in the coming months, and for this aspect of the economy in general, Frick noted.

“This is further evidence that consumer spending will keep rising and be the main factor fueling the expansion,” he said.

In regards to the alleviation of ongoing port bottlenecks and other factors in relation to price hikes and product shortages, President Joe Biden recently met with his supply chain disruptions task force to discuss the group’s ongoing, progressive efforts to bring lasting solutions to these issues. He noted that product availability on store shelves across the country has reached 91%–near its pre-pandemic numbers, and that inventory within various retailers has risen 3% from 2020.

This is a particularly positive sign, as most will remember the shock of seeing so many empty shelves in stores nationwide at the height of the pandemic, when opportunities to purchase sanitizing and clearing products, toilet paper, and even many kinds of foods were few and far-between.

“Packages are moving,” said Biden during his late-December task force meeting. “Gifts are being delivered. Shelves are not empty.”

These latest consumer numbers, collected for the first time since the coronavirus’ omicron variant appeared, shows a strong recovery in the country’s overall economy following the challenges of the recession brought about by the pandemic in 2020. Still, this latest variant may indeed threaten this newly-obtained economic strength, experts say.

Additionally, a recent Commerce Department report shows that American consumer spending decreased between October and November of this year, although holiday season shopping ramped these numbers back up quickly–regardless of any significant product shortages or higher-than-normal prices.

The sales report from November has not yet shown any consumer impact in relation to the omicron variant, however, and the additional uncertainty may bring about further consumer behavior changes.

Still, after making it through 2020 and 2021, these kinds of challenges are now to be expected.

“Looking ahead to 2022, both confidence and consumer spending will continue to face headwinds from rising prices and an expected winter surge of the pandemic,” said the Conference Board’s senior director of economic indicators, Lynn Franco.