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Future of Trucking Looks Bright Following 2021’s Wins, Industry Leaders Say

December 31, 2021 by Levinson and Stefani Leave a Comment

“We’re now seeing the government wake up and understand the implications not just on an industry that hauls 72% of the domestic freight tonnage in this county, but on the larger-scale economy and supply chain itself,” said president of American Trucking Associations, Chris Spear in a look back on the accomplishments of the trucking industry throughout 2021.

Truckers have stepped up to the front lines during this coronavirus era to keep the nation’s economy steady while also helping consumers receive the goods they need in such an unprecedented time of high demand. Workforce development and infrastructure boosts also saw major positive changes, according to ATA leaders,

“In five years in this role, we have never witnessed a better year for advocacy than 2021,” noted Spear. “You take two tier-one victories–infrastructure and the DRIVE Safe Act–and you begin to understand the impact that five years of work has finally delivered for our members and industry.”

Spear noted that along with a group of other industry leaders, he has testified over two dozen times before Congress regarding new infrastructure legislation, which came into effect this year through President Joe Biden’s $1 trillion Infrastructure Investment and Jobs Act. This new law will offer highway and road improvement funding as well as bridge rebuilding funding over the next five years through the $100 billion dedicated specifically to efforts meant to update bridges and roads throughout the nation. The bipartisan bill will also bring about overall improved transportation options and congestion reduction for all drivers.

“It’s a very exciting announcement by the administration, and a recognition that this problem exists and that we’re actually going to take tangible steps to address this,” Spear explained, noting that this bill shows that both trucking and passenger vehicles will be able to lower carbon emissions, and that the industry is working toward improved business development and job opportunities.

“If you’re pro-job growth, this is a tremendous step forward,” Spear said. “If you’re pro-highway safety, if you’re pro-environment, this bill delivers on every single interest there is.”

Particularly, the legislation’s DRIVE Safe Act will bring significant industry-wide job growth, as it will offer opportunities for commercial driving candidates under the age of 21 to enroll in a training and apprenticeship program, allowing them to become able to operate CMVs within interstate commerce.

This initiative comes as the industry continues to face the largest truck driver shortage to date, which has been further exacerbated by the e-commerce demands brought about by the pandemic.

“You can make good wages–especially for all those that live in, say, the South or the Midwest–with excellent benefits,” saide Bob Costello, Chief Economist of ATA. “These folks are getting 401(k) [plans], paid time off, [and] health insurance. We’ve got good benefits. We have good blue-collar jobs”

Regarding further upcoming changes, independent contractors are also likely to become more commonly reclassified as employees through California’s Assembly Bill 5–which ATA claims would diminish driver freedom, disallowing drivers to create their own schedules and operate business as they’d like through the current owner-operator business layout as it stands.

“This is our tier-one effort to stand up our legal capabilities to not just fight in the halls of Congress or a regulatory agency, but in every state and every courthouse in the country,” said Spear. “And I think that is exactly what our members expect of this association–to leverage every opportunity to represent their needs and interests.”

An additional collaborative effort between the transportation industry and the White House will work to boost trucking recruiting efforts through initiatives that will focus on bringing in former military members and on guiding candidates through apprenticeship programs. Further recruitment incentives include driver pay and benefit boosts, which will likely continue far into 2022 as demand is expected to stay high, and the need for qualified drivers remains severe.

“Households continue to spend money,” said Costello. “They’re spending it more on goods than they traditionally have, versus services. We have a growing economy.”

Supply Chain Demand Made Worse by Holiday Shopping; Safety Must Still be Top Priority

December 30, 2021 by Levinson and Stefani Leave a Comment

Online shopping during Black Friday and Cyber Monday are still prevalent, but the rush to get those online deals is fading in significance as the major e-commerce boom rages on—one of many impacts brought about by the coronavirus pandemic.

For example, between November 1st and November 28th of this year, online spending throughout the United States rose by nearly 14% as compared to the same time period in 2020–reaching a total of $99.1 billion for that month, with November and December’s combined spending expected to reach around $207 billion–a 10% boost from the end of 2020. However, Cyber Monday and Black Friday sales incentives have been dwindling due to supply chain strains.

Additionally, overall discounts for these once-major-sale dates have been diminishing; Adobe noted that average electronic discounts on these days only reached about 12%, as compared to an average of 27% the year prior. Jams in the supply logs and shipping processes of carriers are further exacerbating the issue. Between November of 2019 and November 2021, company out-of-stock messages increased by 258%.

“This is a make-or-break season for aggregators, and whoever has inventory is going to win,” said Goja CEO Walter Gonzales, whose company sells a variety of goods directly on Amazon.

For other Amazon sellers, getting inventory brought into the states efficiently and quickly is as imperative as ever, with Amazon sales increasing by around 50% as compared to last year (particularly for giftable products that are usually in stock).

“Kitchen products are doing very well,” said Pierre Poignant, co-founder and CEO of Branded Group, which sells various home and personal care goods on Amazon’s platform and is selling nearly 50% more products this year than last. “We made investments to make sure we had sufficient inventory for the holidays.”

Although many stores ramped up efforts for the usual holiday shopping rush, the pandemic has made clear that most people prefer to make their purchases–especially for gifts–conveniently online, a trend that’s likely here to stay.

“Physical Black Friday had this aura of craziness because people fought in stores and camped outside,” said Juozas Kaziukėnas, Marketplace Pulse’s founder and CEO. “Now that so much has shifted online, it’s lost its excitement.”

Many brick-and-mortar stores are now turning to increased online options, deals, and shopping incentives to keep up with these demand changes and trends, hitting cyberspace hard in a search for more customers during the holiday season.

“We’re giving away e-gift cards for $5,000, $1,000, and $500!” said Kohl’s in a holiday season tweet. “Follow @kohls, retweet this post, and include #KohlsCyberMondaySweepstakes for a chance to win.”

With online retailers turning to the trucking industry to bring in their needed inventory on time, as well as to ship and deliver their orders, many safety advocates have pointed to the already-challenging shipping bottlenecks that have been taking place during this new era of e-commerce, on top of a long-running and severe truck driver shortage that is making carriers take drastic measures to meet demands.

For instance, some carriers may be willing to bring in younger, inexperienced drivers with much less training in order to have more hands on deck during the holiday season, and truckers may also be feeling so much added pressure to meet their deadlines that they forgo certain safety protocols or drive longer hours with less sleep.

Keeping drivers behaving as safely as possible and ensuring that they are always well-versed in best practices while on the road is of the utmost importance, especially during high-demand seasons in the midst of an already-heavy trend of online shopping continuing throughout the country.

“It goes back to training,” noted Levinson and Stefani’s Ken Levinson. “Just because everyone’s in a rush to get things done, it’s not an excuse to let safety go to the wayside.”

It’s also unfair of carriers to put the pressures of holiday demands on the shoulders of their truckers, he added.

“Often, unsafe trucking companies have unrealistic expectations based on their truckers’ pay and delivery times that it creates a huge incentive to be unsafe, and we can’t have that,” Levinson added.

Millions in New Grant Funding Finally Given to Highway Safety Initiatives

December 28, 2021 by Levinson and Stefani Leave a Comment

Long-awaited infrastructure boosts throughout highways across the country are finally underway as federal programs working to bring about these safety improvements will, according to the National Highway Traffic Safety Administration, receive ample new funding.

For safety grants across American highways, NHTSA will offer $260 million as part of the $1 trillion Infrastructure Investment and Jobs Act. This funding comes as an effort to bring vast improvements through certain traffic and roadway safety initiatives, and will work to bring financial aid to various U.S. territories, state-level transportation agencies, the Bureau of Indian Affairs, and to Washington, D.C. agencies, as well.

“Traffic crashes take the lives of too many Americans, but these tragedies are not inevitable, and we will not accept them as part of everyday life,” said Pete Buttigieg, Transportation Secretary, in a recent statement. “Bolstered by additional funding from President [Joe] Biden’s bipartisan infrastructure law, these grants will save lives by improving safety on America’s roadways.”

The legislation also depicts the intention to raise overall funding by around 30% for a plethora of safety initiatives, infrastructure programs, and reconstruction efforts.

“The variety of funds available allows each state to target its specific challenges,” said Steven Cliff, Deputy Administrator for NHTSA. “Traffic safety may be a national problem, but the solutions are regional and local.”

$133.3 million of the total funding will be allocated strictly to data-driven traffic programs at the state level for highway safety; some of these programs, according to the United States Department of Transportation, involve programs centering around the enforcement of seat belt laws and safety law education, awareness boosting in regards to dangerous driving risks, and campaigns for high-visibility enforcement.

Funds will also be dedicated to improving parent and caregiver inspection stations to determine whether or not child safety seats have been properly and safely installed, as well as to boosting overall efficiency of traffic records themselves.

“This historic legislation increases NHTSA’s budget by 50%,” said Cliff in front of a U.S. Senate committee during his nomination hearing, noting that this budget makes it “the largest investment in motor vehicle and highway safety since NHTSA was established more than 50 years ago.” Cliff, who was nominated by President Biden to lead NHTSA, made a point to explain the new legislation’s likely positive effects on the overarching safety of American roadways.

The Infrastructure Investment and Jobs Act was set forth by President Biden in mid-November of this year, with supporters of the new $1 trillion infrastructure legislation ensuring that the coming road improvements and overall safety benefits will far outweigh the costs.

“This funding will improve our understanding of where and how crashes happen by improving data quality,” NHTSA’s Cliff continued.

In the first half of this year, the number of deaths in roadway crashes rose by 18.4% as compared to the same period in 2020–the highest number of roadway deaths since 2006, according to an NHTSA report from October.

“This is a crisis,” said Buttigieg following the release of the report. “More than 20,000 people died on U.S. roads in the first six months of 2021, leaving countless loved ones behind. We cannot and should not accept these fatalities as simply a part of everyday life in America.”

Although NHTSA’s report did not specifically point to the number of deaths as a result of truck-related roadway crashes, the statistics are still staggering–around 20,160 died on U.S. roadways in the first six months of 2021, compared to 17,020 in the first half of 2020. For safety advocates, these numbers are a clear indication that many safety-focused changes, projects, and investments need to make their way throughout the country’s infrastructure as soon as possible.

“The report is sobering,” added Cliff in October. “It’s also a reminder of what hundreds of millions of people can do every day, right now, to combat this: slow down, wear seat belts, drive sober, and avoid distractions behind the wheel.”

What Issue Best Encapsulates Industry Problems of 2021? The Trucker Shortage, Experts Say

December 22, 2021 by Levinson and Stefani Leave a Comment

“This year definitely feels different than driver shortages in the past,” said CPC Logistics vice president of operations and safety, Daniel Most. “It seems that no matter what you’re throwing at different markets, you’re just not getting responses.”

Most’s comments come as the trucking industry has come to an agreement that the overarching challenge of 2021, which will likely continue in 2022, is that of the professional driver shortage prevailing across North America.

As older drivers leave the industry–some retiring early due to the pandemic and some due to other factors–and as consumer demands grow exponentially, the current shortage of at least 80,000 drivers–according to American Trucking Associations–will only get much worse over the next few years if major industry-wide improvements are not made.

“I think that you can’t really talk about driver turnover, looking at the last two years, and not talk about COVID,” said Professional Driver Agency‘s director of operations, Scott Dismuke.

Of course, he’s right–the long-lasting shortage has been worsened by the pandemic era, as the shortage prior to 2020 had reached about 61,500. With longer work hours requiring drivers to be away from home for days at a time, on top of mask and vaccine mandates, driver turnover has reached new heights and companies throughout the industry are scrambling to incentivize qualified drivers to join their fleets–turning to pay boosts, new benefits, and sign-on bonuses.

Still, the pool of adequate commercial drivers is limited, and trucking companies are competing heavily to bring those truckers on board quickly in order to meet demands.

“I think what was interesting is…the shift from 2020 to 2021,” Dismuke continued. “I think in 2020, COVID actually kept drivers from jumping [ship] a whole lot. With the economy shutting down, everything froze.”

Because of the confusion regarding where the industry would go at the time, many drivers stayed put, hoping things would restart as usual. Because of this, trucking companies were not looking for many new drivers until the boom of e-commerce brought higher-than-ever freight demand.

“Once the economy really started opening back up at the end of 2020–and really through the first three quarters of the year–I think COVID had a different effect on turnover, because you saw companies really raising pay…you saw a lot of active recruiting,” explained Dismuke.

These efforts came directly after a period where fleets weren’t expecting to have to incentivize drivers, because so many people were worried about losing their jobs.

“I think we saw the other side of the COVID effect with drivers starting to jump [ship],” added Dismuke.

Now, drivers may be looking for more than boosted pay–although many carriers have raised income levels more than once throughout the pandemic.

“Many carriers raised driver pay in 2021,” said Conversion Interactive Agency vice president of marketing and training, Priscilla Peters. “However, in most cases, that didn’t move the needle as expected for driver recruiting. Quality of life for the driver and home time have become the piece of the driver recruiting puzzle where carriers are making adjustments that have impact.”

The bipartisan DRIVE-Safe Act is working as a boosted effort to bring incentives, training, and job opportunities for younger truckers, and to allow drivers under the age of 21 to be trained thoroughly and become able to operate commercial vehicles in interstate hauls.

“I think the two options [for a solution] are creating a program where individuals can move into this field at a younger age, where we’re not forced to try and peel them away as a second career option after they’ve already been doing something [else], or [targeting] more of those other similar-type positions,” said Most. Additionally, recruitment should focus more upon bringing in more military, female, and minority drivers into the industry, he added.

“Everything that you see is talking about what drivers are looking for,” he said. “It’s the home time built in with good pay…built in with the schedules that they’re looking for. A lot of the jobs that we hire for require unloading freight–that makes it even more challenging, and so it just seems like you have to really adjust the type of work that you’re hiring for in order to get the candidates to start to pile in.”

New Custom Chassis in the Works for Autonomous Driving Vehicles

December 17, 2021 by Levinson and Stefani Leave a Comment

Autonomous driving is dominating headlines in the trucking world, as more and more fleets turn to the innovative technology to boost potential safety numbers and mitigate traditional trucking challenges.

Some of the latest efforts in autonomous trucking come from Daimler Trucks North America, which is working to create a custom Class 8 chassis that will integrate SAE Level 4 driving support. This innovation is a collaboration with Waymo, a major autonomous technology company.

SAE Level 4 tech is a system of automated driving allowing a truck to self-drive without a driver needed in the cab as backup. Typically, automated driving systems allow for a truck to follow strict, specific safety protocol to avoid critical incidents and risks, without any input from a human.

More than 1,500 updates from Waymo Via (Waymo’s autonomous goods delivery unit) will be integrated into the Freightliner Cascadia Model, which will also obtain back up systems for its low-voltage power net, communication network, steering, and braking.

Daimler’s efforts come as a continuation of ideas discussed years ago, according to Bishop Consulting’s principal, Richard Bishop.

“While the specifics of Daimler’s announcement will surprise no one developing automated trucks, the timing shows the continuing momentum of this market,” he said. “Across the board, automated vehicle system developers agree that redundancy of key elements in the host truck platform are essential for safe deployment of automated trucking.”

This innovation also comes after Volvo Autonomous Solutions’ announcement regarding efforts being made around the North America autonomous Volvo VNL model–a collaboration with Aurora Innovation Inc. Aurora Driver autonomous technology was implemented into a Volvo Trucks long haul VNL model prototype.

A truck like this “can significantly contribute to enhancing safety in traffic, thanks to its redundancy of systems and a multitude of sensors,” said head of Daimler’s autonomous technology group, Peter Vaughan Schmidt. “It brings us much closer to our vision of accident-free driving.”

Daimler has also set forth an Autonomous Technology Group as an international organization for automated driving, a group that will work toward an overarching automated driving strategy and set of guidelines. To do so in a timely manner, the group will dive into operations network and infrastructure implementation, as well as the testing, research, development, and manufacturing of all necessary operations and technology needed to progress the AV movement forward.

The Freightliner chassis will include systems such as an additional, cybersecurity-protected communication network for certain devices; two electronic control units in both a primary and secondary system that will allow for peak brake performance in addition to system minimal risk maneuver execution abilities; and two servo motors within the steering system to allow for the backup servo motor to obtain the needed steering angle from the AV software and take action as necessary in the case of a hydraulic or electronic failure.

Additionally, the autonomous truck will require a low-voltage power net fit to meet the demands of ECU and sensor power usage–the power net developed at DTNA allows for regular critical system energy flow. Daimler will work also with Torc Robotics, a subsidiary of the company, in addition to Waymo, in order to allow for commercialization of this tech to be utilized along multiple routes.

Daimler believes that these innovations could not be coming at a more pressing time as the trucking industry continues to face a record-breaking truck driver shortage, worsened by so many drivers deciding to leave the industry due to poor work-life balance and a lack of benefits, comfort, and ease. The hope here is that automated technology will allow for a more intuitive commercial truck driving experience for operators, possibly incentivizing more–and younger–drivers to enter the industry.

The need for trucks in general is also on a steep incline, as the U.S. Bureau of Transportation Statistics recently reported that the consumer demand for goods hauled by commercial trucks rose by 56% over the last 10 years–a number likely to double over the next two or three decades.

Driver Shortage Affects Winter Road Safety as States Search for Snowplow Drivers

December 16, 2021 by Levinson and Stefani Leave a Comment

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“We want the traveling public to understand why it could take longer this season to clear highways during winter storms,” said Montana Department of Transportation maintenance administrator Jon Swartz.

MDOT is currently short of around 90 drivers able and willing to work as snowplow drivers–an issue affecting states across the country. In particular, Montana, Wyoming, Washington, and Pennsylvania are struggling to find snow plow drivers amidst the current ongoing driver shortage. Finding drivers for these positions is especially difficult as the jobs involve working in hazardous conditions, inclement weather, and strange shifts on top of the requirement for a commercial driver license.

Because of this, industry experts predict that many passenger drivers across the United States will wind up stuck or delayed on snowy roadways.

“Knowing [what’s really happening] helps motorists plan ahead and adjust–or even delay–travel plans,” noted Swartz.

This issue has become more prominent as winter storms have begun bringing in heavy amounts of snow to the Upper Great Lakes, with more snow likely to hit Colorado, Utah, Nebraska, Nevada, Iowa, and New Mexico–especially in higher elevations.

The shortage of snowplow operators has been made worse by so many drivers aging out or leaving the industry, a low unemployment rate, and boosted need for trucker and diesel mechanics throughout many different industries. Because of this, private companies have been working to offer incentives like bonuses and increased pay to remain competitive, whereas state agencies aren’t able to be quite so flexible when it comes to salaries and benefits.

“Everyone’s sort of competing for the same group of workers, and private companies can often offer higher salaries than the state government,” explained Washington State Department of Transportation spokeswoman, Barbara LaBoe.

Apparently, state COVID-19 vaccine mandates have exacerbated the issue, as more than 150 winter operations workers left the industry due to compliance opposition, LaBoe added.

Because the trucking industry is facing the largest shortage on record (of more than 80,000 drivers), any state looking for CDL-holding workers are competing with private trucking companies boosting incentives around pay, as well, in a scrambling effort to be able to meet the demands of consumers.

Because of this, many states are offering to pay for the CDL training of snowplow drivers, although new hires with a CDL in hand may still not be available to work as soon as this winter season. Many snowplow operators often work throughout the year in various highway maintenance gigs, with some seasonal drivers coming in to fill the winter shifts.

Various roads needing service in Washington after undergoing major snow storms–particularly, around mountain passes–are likely to be closed for significant amounts of time, LaBoe explained. However, as long as a storm is isolated or doesn’t last long, weather forecasts can help drivers work through them efficiently.

“If we have a series of storms over several days, or if it hits the whole state at once, [the shortage] is going to become more evident because we don’t have as deep a bench,” she said.

American Association of State Highway and Transportation Officials’ director of the winter maintenance technical service program, Rick Nelson, noted that luckily, snowplow drivers have a strong sense of dedication to their work as they know how important it is to passenger driver, emergency responder, and commercial driver safety.

Bringing in new drivers “to be out there in the worst conditions” is still tricky, though, he added. “You try to recruit, get out there and beat the bushes and convince folks that jumping in a plow in the middle of the night at Christmastime is a good career choice.”

Some states are experiencing the snowplow driver shortage more than others, such as Pennsylvania, which is currently short of around 830 workers. However, state transportation workers are confident the drivers on hand will be able to keep the roads as clear as possible.

“Our goal is to keep roads safe and passable rather than completely free of ice and snow,” said Pennsylvania Department of Transportation spokeswoman, Alexis Campbell, who added that roads are routinely cleared as soon as there’s a break in snowfall.

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