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Trucking Industry

Recruiting Younger Drivers and Transitioning to EVs are Main Focuses of ATRI’s Recent Study

June 19, 2021 by Levinson and Stefani Leave a Comment

Finger pressing an autopilot button in a self driving car. Composite image between a hand photography and a 3D background.

The American Transportation Research Institute’s Research Advisory Committee has determined the research topics to be prioritized by the group–a list that was recently approved by ATRI’s board of directors.

The list of topics was developed and given the stamp of approval at a recent Atlanta meeting, and committee members identifying the top industry priority list components included leaders of labor unions, government officials, academics and experts, as well as trucking company executives.

2021’s top research priority? How to best recruit and retain young truck drivers–between 18 and 20 years old–into the trucking industry.

To determine the best methods of recruiting, training, and retaining young truck drivers in the industry, ATRI plans to utilize an effective case study approach. This kind of focus is aligned with the entire industry’s efforts to ease the challenge of the current truck driver shortage–a top industry issue on ATRI’s list for the fourth consecutive year. 

At the end of 2018, the overall trucker shortage was estimated to reach 60,800 drivers by American Trucking Associations.

However, ATRI’s recent top-ranking focus is not just to bring about additional truck drivers, but to incentivize young workers to join the industry in regards to a “whole host of career options in the trucking industry,” explained President of ATRI, Rebecca Brewster.

“I like that [this priority] is taking a more holistic approach [toward]: How do we just get more young people into this industry and keep them here?” Brewster said. 

However, it doesn’t seem that it will be enough just to drawn younger people into trucking–a method that hasn’t brought much relief to the country’s driver shortage. What needs major focus, Brewster said, are overarching retention efforts.

“It’s not just enough to come up with messaging and understanding how to make this industry appealing to them, but, [rather], how do we effectively train that cohort of individuals and how do we keep them in the industry?” she said.

Environmental topics are also priorities of ATRI, such as the need to better understand the benefits zero-emission trucks and their impact on the environment. The research that will take place around this topic will include a comparative study in regards to the environmental impact and life cycles of diesel Class 8 trucks in comparison to those of electric trucks. The study will also involve analysis of methods of operations, disposal, and manufacturing.

Additionally, as more and more trucks transition to the electric engine, ATRI has prioritized research into how best to create better truck charging infrastructure capabilities. To study this, the group will research overall grid connectivity availability, charging requirements of trucks and other vehicles, and scenarios regarding power demand and supply.

As climate change challenges and other environmental problems gain more attention and focus within both state and federal agencies, according to Brewster, 2021 is the first year that the topics of electric vehicle charging infrastructure and zero-emission truck impacts have become top priorities for ATRI. Also adding to the need for focus on these subjects is the American Jobs Plan proposed by President Biden, which suggests the allocation of $174 billion into the electric vehicle market across the country.

“ATRI’s Research Advisory Committee has identified a number of areas that are having a profound impact on the trucking industry and will continue to for the foreseeable future,” noted Sean McNally, a spokesman for ATA. “ATRI’s research is invaluable to ATA as we advocate for solutions to these challenges, so we are looking forward to the results of their studies.”

Other major areas of focus which made ATRI’s Top Priority List include an update to the group’s report from 2019 which looked into how controlled substance law changes are affecting state workforces and roadway safety. The impacts of decriminalizing drugs such as marijuana on the trucking industry have still yet to be extensively studied.

Finally, the last prioritized item on ATRI’s list is analyzing the effects of driver-facing cameras. The group intends to study their impact in regards to litigation, workforces, and overall safety for both drivers and fleets as a whole.

As National Driver Shortage Continues, Carriers Boost Trucker Wages

June 18, 2021 by Levinson and Stefani Leave a Comment

Female African American courier staring a mini van while going on package delivery.

“Our drivers have worked extremely hard during these unprecedented times of high demand and tight capacity, and we are proud to recognize them with this industry-leading pay package,” said President of Maverick Transportation, John Culp.

These kinds of updates come as trucking companies throughout the industry see the continuing driver shortage carrying on, and as more truck drivers desire boosted wages in order to stay in their positions–(and not worsen the shortage as it stands).

Maverick, specifically, recently announced it would increase pay for its marine, glass, flatbed, and dedicated drivers, with Averitt Express announcing later its promise to boost wages for dock associates, diesel mechanics, local drivers, and shuttle drivers as well.

Earlier in April, WEL Cos. also announced it would be increasing wages by 4 cents a mile for its truckers.

“Our local driving and support associates are the champions of the communities we serve,” said Averitt’s vice president of operations, Barry Blakely, in regards to the company’s boosted wages. “For 50 years, Averitt has been committed to serving our customers and our team, and this increase will ensure that we can continue to provide exceptional service in all areas.”

Beginning May 16th, student drivers at Maverick began to see payments rise to around 60 cents per mile–an average income of about $80,000 per year. Flatbed and glass over-the-road truck drivers at the company are now receiving an increase of 3 to 4 cents a mile, with experienced truckers earning up to 66 cents per mile.

These are not the first times in 2021 trucking companies have made efforts to boost employee wages–Maverick first announced a pay raise for glass, flatbed, and dedicated drivers in early January, with the other two companies following suit–Averitt announced a pay bump for all of its regional flatbed and truckload drivers back in March, and WEL had also increased rates by 3 cents per mile earlier in the year.

Still, though, it has been made clear to many industry professionals that a truck driver shortage of this caliber can not simply be remedied with just pay boosts, explained Bob Costello, Chief Economist for the American Trucking Associations.

“There is so much going on here,” he said. “You can write a whole PhD thesis on this if you really wanted to.”

Costello noted that he believes these current circumstances and motivations to boost wages are just a regular market reaction.

“Things that come to mind include the natural market reaction to any situation where demand outstrips supply as price goes up,” he explained. “And so, I am absolutely not surprised at all that pay is going up for drivers. It should go up, [and] it will continue to go up. But it’s also sign-on bonuses and guaranteed minimum weekly pay. It’s all this sort of stuff. But as I say over and over and over, if this was only about pay, this would be easy to fix.”

According to Costello, the trucking industry lost around 32,000 overall jobs in 2020, with most of those positions being those of truck drivers. Only a small number of jobs have been added since then, including in sectors where roles were cut–production jobs, nonsupervisory roles, for-hire trucking jobs and non-local trucking jobs. As of now, the official number of truck drivers let go or who left the industry in 2020 is not yet available.

“Back at the end of last year, we were actually at the height of all this in terms of drivers coming back,” noted FTR Transportation Intelligence vice president of trucking research, Avery Vise. “[During] the fourth quarter of last year, trucking added almost 29,000 payroll jobs. And that’s actually the most that have been added in any three-month period in 25 years. That was actually the middle of what seemed to be a speedy recovery.”

Trucking companies now need to prioritize retention, Costello explained, as companies throughout the country are working with the same pool of candidates and a limited number of new truckers entering the industry. Additionally, for driver recruitment to see any significant increases, potential employees and contractors need to know that their quality of life on the job will be high, in addition to attractive benefits and pay.

“I think it was a hole that we got dug into,” said Costello in regards to 2020’s obstacles. “Now that the vaccine is more prevalent and getting around, I think we can make some headway in this area. But what I’m saying is you’re not going to dig out of this hole–that training gap hole–any time soon.”

Capacity Under Intense Pressure With Various COVID-19-Related Obstacles

June 15, 2021 by Levinson and Stefani Leave a Comment

The capacity market is seeing major additional obstacles regarding the high-demand trends brought about by the coronavirus pandemic.

As manufacturers and retailers continue to boost their inventories in the booming era of e-commerce (made much more prevalent during the country’s stay-at-home orders), the economy is beginning to finally recover–but capacity is under more pressure than ever.

“There are short-term and longer-term implications,” said CH Robinson’s vice president of retail and supply chain solutions, Noah Hoffman. “The retail space continues to put demand on all suppliers. The retail community can’t keep up with both inbound and outbound constraints and e-commerce continues to fuel that space. So, certain inventory for retailers are at record lows.”

Economic growth is being boosted, currently, by government stimuli and the opening-up of the economy after the COVID-19 vaccine has been more widely distributed. This means that the ways in which consumers purchase their goods is shifting–rapidly–including the kinds of items people are beginning to buy again.

“This is going to compound the demands on capacity that’s already not readily available,” Hoffman added.

Additionally, now, infrastructure spending is coming back at a rapid rate, and construction efforts are now underway on a large scale.

“What we’re seeing right now versus last year is capacity is coming back,” explained Hoffman. “This is positive news. The thing is, it’s just not fast enough to keep up with demand.”

In mid-2020, nationwide lockdowns caused the marketplace’s supply to plummet, with many truck drivers out of work. Now, capacity improvements have come often at the hands of small carriers, and capacity itself is seeing major shifts in a positive direction although it isn’t meeting the current demand as much as the industry would like–yet.

“As it relates to the Southeast region of the U.S., we had the cold snap in February,” Hoffman noted. “That delayed the production season–call it two to three weeks. On top of that, we had a rebound floral season that led to a $2.6 billion Mother’s Day and floral season–which is a record high. And so, you have compounding volumes of looming produce season, [and] a blooming floral season that puts a ton of pressure on the [temperature] control capacity.”

Still, with capacity under so much stress, new challenges are arising–especially with the recent shutdowns along the oil pipeline affecting pallet availability.

“I would say it’s not only just the increase in demand, it’s the volatility and the unanticipated levels of the demand,” said Douglas Kent, Association for Supply Chain Management‘s executive vice president of strategy and alliances. “Managing the supply chain networks for known demand is much easier than managing unknown demand.”

Now, with difficulty in predicting the long-term effects of these changes, there is a wide array of disruption possibilities.

“So, we’ve got variability and volatility in demand,” Kent added. “When you combine that with the concerns around capacity in the overall network, this is like the perfect storm of chaos.”

Although a variety of consumer trends can change demand, the key to capacity is equipment and drivers. Not only has the nationwide driver shortage been a long-term obstacle for the trucking industry, but the current shortage in semiconductor chips has been an added difficulty.

“Now, with this chip situation, which is fallout from the pandemic and China, they’re not able to make enough [semiconductors] for the demand out there,” explained chief operating officer for Aim Integrated Logisitics, David Gurska. “Fortunately, we have a leasing arm, Aim NationaLease, so we’re fortunate to have slots and everything available, but if you’re just the average company, trying to buy a semi right now isn’t the easiest thing.”

This limitation within capacity means the industry needs to boost its overall optimization–any volatility will make it difficult to efficiently allocate resources and employees when they are readily available.

“A lot of it is course-correcting the last couple of years,” said FourKites’ senior vice president of customer success, Glenn Koepke. “So, it was a buyer’s market for a couple of years. And then, typically, what happens is there’s some sort of…black swan event that triggers the change because it was a buyer’s market for so long.”

Additionally, motor carriers have seen more of an ability to increase compensation for workers with the disruptions coming at a time of such high demand–and this isn’t likely to stop any time soon.

“Why is capacity continuing to crunch? A lot of it is just [an] imbalance of supply,” explained Koepke. “There’s always talk over whether we have a true trucking shortage or not. I think one could argue it’s just an imbalance.”

Colonial Pipeline Cyberattack Brings Array of Waivers at State and Federal Levels

June 14, 2021 by Levinson and Stefani Leave a Comment

The recent Colonial Pipeline cyberattack is causing state and federal government organizations to take effective courses of actions in response, including methods to help ease disruptions in truck movement. The ransomware attack, which is believed to have ties to a criminal gang, caused the network reaching from Texas all the way to New Jersey to immediately cease its operations.

For states that have been particularly impacted, a solution to help these effects is being offered by the U.S. Department of Transportation. States covered by presidential declarations of disaster–declarations released within the last four months–are able to transport overweight fuel and gasoline loads by using interstate highways, DOT announced.

“Each state must continue to follow its own procedures for issuance of special permits authorizing the loads, but the added flexibility announced today lawfully permits these trucks to run on the interstate highway system and other federal highways,” explained DOT in its announcement.

This state comes after another recent announcement released by the Federal Motor Carrier Safety Administration aiming to offer hours-of-service regulation relief to truck drivers operating within East Coast petroleum supply chains. The hours-of-service flexibility applied to the states of Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, New Jersey, New York, North Dakota, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington D.C., and West Virginia.

To efficiently assess the capacity of railroad operators to transport fuel between inland communities and coastal ports, the Federal Railroad administration has implemented a specific emergency action plan, and other DOT organizations have been actively making efforts as well.

For the permission of trucks to operate on interstate highways, previous presidential declarations have allowed such emergency protocol updates to last for up to four months, and those instated will be expiring at different times throughout the year. For example. Alabama, Georgia, Kentucky, Louisiana, Maryland, Mississippi, New Jersey, North Carolina, Tennessee, and Virginia are covered for a while, but Maryland’s 120-day period will end in early June and Virginia’s in early September.

Pipeline operator qualification regulations have been temporarily relaxed for emergency workers needed to help the partial manual of the system get back up and running. This announcement, set forth by the Pipeline and Hazardous Materials Safety Administration, is only applicable to places operating without appropriate resources for the Colonial Pipeline–a result of the recent cyberattack.

The incident has brought forth responses from many state officials, including Georgia Governor Brian Kemp’s signing of a state of emergency which suspended state fuel taxes and permitted fuel haulers to bypass weigh stations. The state of emergency also prohibited fuel price gouging. In Florida, Governor Ron DeSantis signed a state of emergency allowing the Florida Department of Transportation to waive restrictions on weight and size for divisible loads on vehicles that are actively helping in emergency response efforts.

Additionally, executive orders were signed by Virginia Governor Ralph Northam to allow state agencies to offer waivers to marshal public resources, by North Carolina Governor Roy Cooper to suspend motor vehicle regulations in an effort to allow state fuel supplies to be sufficient, and by Maryland Governor Larry Hogan to waive hours-of-service requirements and weight restrictions for carriers.

“Many states are working in concert to minimize the disruption of fuel supplies,” said Kentucky Transportation Cabinet Secretary Jim Gray. “Our cabinet is doing its part to help ensure that needed relief gets to the affected areas.” Gray signed an order to suspend motor carrier restrictions involving the transportation of ethanol and petroleum to states that have been impacted by these interruptions.

A multi-agency response has also been implemented by the Biden administration, and includes the departments of Justice, Homeland Security, Treasury, Energy, and Defense; the Cybersecurity and Infrastructure Security Agency; the Environmental Protection Agency; the Federal Energy Regulatory Commission; and the Department of Transportation.  To gain a better understanding of the cyberattack and its effects on energy and fuel supply, these organizations have been meeting regularly.

“ATA is aware of some locations being temporarily out of diesel fuel, but we are not hearing reports of it being a widespread issue yet,” said spokesman for American Trucking Associations, Sean McNally, who noted that other freight industry members are also doing their part to solve this problem. “We are closely monitoring the situation and are providing information to our members as needed.”

Surface Transportation, DRIVE-Safe, Truck Parking Bill Support Requested by ATA’s Chris Spear

June 14, 2021 by Levinson and Stefani Leave a Comment

“America’s supply chain yields tremendous potential,” said American Trucking Associations President Chris Spear during a hearing before the Senate Commerce Committee earlier this month. “It’s a catalyst for economic growth, beyond that of any other nation. For that to happen, however, I ask this committee to consider four key elements that both feed and benefit our nation’s supply chain: infrastructure, safety, workforce development, and environmental stewardship. Together, these elements shape and define the resiliency of our supply chain.”

Spear has also made known his belief that new legislation allowing commercial truck drivers under 21 years old to work across state lines is especially necessary at this time. Spear argues that this legislation would be incredibly beneficial to the nation’s supply chain and that it would help solve the long-term challenges surrounding the current driver shortage still intact throughout the trucking industry.

The trucking sector has been working to push forward a bill to secure long-term highway program funding and to ensure improved commercial corridor connectivity capabilities, as well.

“Stop blaming each other for the things you don’t do and start taking credit for the things you should do,” said Spear in an effort to highlight the current bipartisan efforts taking place in relation to boosted infrastructure upgrade funding and enhanced operation technology. “These investments are long overdue. They are the things Americans–your constituents–need, use, and rely on every single day. They’ll be grateful.”

Truck drivers clearly carried the nation’s economic health on its back during the coronavirus pandemic by ensuring grocery stores and hospitals stayed stocked with the supplies they needed, and many policymakers at both the state and federal levels have recognized these efforts. Still, though, truck drivers will continue to be the country’s most prominent freight transporters, with the trucking industry likely to ship around 70% of America’s freight throughout the next year. Trucks are also likely to move around 2.4 billion tons of more freight over the next decade than they have in recent years, according to ATA.

Now, a shortage of automobile sector-used semiconductor chips and disruptions in refined petroleum distribution have caused the nation’s supply chain to face a variety of obstacles as it works to keep shipments running smoothly during this time of boosted e-commerce.

“Without trucks, our cities, towns, and communities would fail to thrive, and would lack essential necessities such as food and drinking water. There would be no clothes to purchase, nor parts to build automobiles or fuel to power them [without trucks],” Spear lamented when he urged lawmakers to pass bipartisan surface transportation infrastructure policies for 2021.

Because the current driver shortage is also likely to not only continue but to grow as more truckers reach retirement age (and as e-commerce continues to boom), the trucking industry must hire an additional 1.1. million new truck drivers over the next ten years (around 110,000 each year).

At the recent hearing, Spear discussed the Developing Responsible Individuals for a Vibrant Economy (DRIVE)-Safe Act, which would allow truckers younger than the age of 21 to cross state lines while operating their commercial vehicles–an effort that is believed to be able to ease the difficulty of the shortage.

This program would permit under-21-year-old commercial driver license holders to work within interstate commerce, and DRIVE-Safe Act co-sponsors also touted the benefits of this measure during the meeting.

“This shortage directly impacts the supply chain of goods,” said Senator Rick Scott of Florida. “It causes delays for the manufacturers, consumers, and corporations across the U.S.”

Another major issue that was a topic of the discussion–truck parking access. The recent Truck Parking Safety Improvement Act will allocate U.S. Department of Transportation funding to certain state agencies in an effort to boost parking availability for commercial truck drivers. $125 million would be allocated for the year 2022, with annual increases taking place until 2026.

“It’s a huge problem,” said Spear of current parking capabilities. ”It definitely needs to be part of any legislation that you consider. This component really is key, and our entire industry is very much behind it.”

Finally, the issue of freight bottlenecks and the economic obstacles they present was brought to light by Senator Cynthia Lummis of Wyoming, who noted a recent American Transportation Research Institute study showing that the smooth movement of commercial trucks is significantly hindered by traffic problems. Freight bottlenecks currently bring about $75 million in costs to freight distribution and 1.2 billion hours of lost trucking industry productivity each year, according to both ATA and ATRI.

“Trucks can sit for hours on the way to Wyoming and…that drives up prices, and sometimes delays business, for people in my state,” explained Lummis.

Governor Pritzker Announces $15 Million to be Allocated to Illinois Manufacturing Training

June 13, 2021 by Levinson and Stefani Leave a Comment

$15 million will be invested in the construction of two downstate Illinois manufacturing training academies, as announced recently by Illinois Governor J.B. Pritzker.

This funding comes as a boost to the state’s manufacturing workforce, and will aim to help Illinois locals gain easier opportunities within advanced manufacturing careers and have boosted access in regards to developing the skills necessary for such employment.

“I’m proud to announce the winning projects of a $15 million Rebuild Illinois investment to establish two new downstate manufacturing training academies, [Southwestern Illinois College] in the Metro East and Heartland CC and Rivian here in Normal,” tweeted Pritzker.

The two academies–which will be located at Southwestern Illinois College in Belleville and Heartland Community College in Normal– will start enrolling new students as soon as this year, announced Pritzker, along with the Illinois Department of Commerce and Economic Opportunity.

Jumping into these career possibilities as soon as possible is key for these students, explained the Illinois Department of Commerce and Economic Opportunity’s acting director, Sylvia Garcia. 

“As the electric vehicle industry and other advanced manufacturing roles see increasing demand in Illinois, we are preparing to seize those jobs with investments made across our communities and to maintain our state as a top destination for companies to grow and invest,” she said.

$7.5 million of this funding will be allocated to Heartland Community College to aid the development of its Electric Vehicle/Energy Storage Manufacturing Training Academy. These efforts are in collaboration with Rivian, an electric vehicle manufacturer, and the college will match state funds up to $1.5 million for the development of an electric vehicle manufacturing training-based auto shop–an effort set to bring in around 1,600 jobs by 2023.

“HCC will be the home of the Electric Vehicle/Energy Storage Systems (EVES) Manufacturing Training Academy,” said Heartland Community College in a tweet. “HCC received a grant from the Illinois DCEO and a commitment in private funding from regional partners, including Rivian.”

The future of clean energy possibilities relies on programs like these, which offer students the opportunities and training they need to be ready for the industry upon graduation, explained Rivian’s vice president of public policy and chief regulatory counsel, James Chen. 

“This project will help prepare local workers for the well-paid technical jobs that the clean energy transition requires,” he said.

Chen also noted that these efforts align strongly with his company’s goals to help this industry reach its full potential, which starts at the hands of educated, forward-thinking individuals.

“This project also reflects Rivian’s core values of community empowerment, innovation, and a strong foundation for the continued growth and success of the electric vehicle industry,” he added.

The remaining funding will be funneled into a manufacturing-focused education hub to be implemented at Southwestern Illinois College, which will break ground as soon as this year and open to students by 2022. The Advanced Manufacturing Center will also include career training services for students, with opportunities within welding manufacturing and the industrial electricity industry. Additionally, the college’s program will bring about boosted efforts to recruit women and other minorities in order to adequately address industry equity concerns.

“One of Southwestern Illinois College’s primary goals is to train students for well-paying, highly-skilled, in-demand career fields, and the construction of a manufacturing training academy will bolster these efforts,” explained Nick Mance, President of Southwestern Illinois College. 

Mance added that these funds will bring direct positive impact to the state of Illinois’ economic development–including to the boost that it has needed following challenges brought about from the COVID-19 pandemic. 

“In light of the unemployment rate and economic distress in the area, it is more crucial than ever that students embark on a viable career pathway that leads directly to steady employment paying a living wage or better,” he said.

This funding comes from Pritzker’s Rebuild Illinois plan, which was approved in 2019 as an effort to improve overall state infrastructure and allocate funds to projects working to rebuild, repair, or boost state parks, historic sites, roads, bridges, education, clean water infrastructure, and transit. For the funding of Rebuild Illinois, Illinois saw doubled fuel tax rates in 2019, which continued to rise in 2020.

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