Trucking Industry

2020 Shows True Capability and Dedication of Trucking Industry

March 16, 2021 by Levinson and Stefani Leave a Comment

2020 was a year of many tests for the trucking industry as the COVID-19 pandemic sent more customers than ever online for shopping, and grocery stores and medical centers needing boosted supplies of household goods and medical gear.

Because of this, publicly-traded fleets saw rising spot rates and financial results throughout the course of the year.

Additionally, workers throughout the industry, including suppliers, logistics providers, truck manufacturers, and fleets themselves did their part to lower the potential spread of the coronavirus within their workspaces and in public. These protocols brought about social distancing and remote work where applicable, and trucks and facilities are now regularly and more vigorously sanitized and cleaned. Drivers and other industry workers have also been provided with plenty of masks and cleaning supplies.

These changes didn’t mean challenges didn’t continue on for the industry, though.

“In February, we were coming off an all-time record unit year in 2019, and still going flat-out,” said Utility Trailer Manufacturing Co. senior vice president, Craig Bennett. “Then, in March, the bottom fell out, and numerous orders were canceled and delayed. We furloughed or laid off around 1,100 people and reassigned all other teams.”

These difficulties brought about a record low of 209 industry trailer orders in April, with Class 8 orders dropping to 4,251–as compared to 14,859 the year prior–during the same month. Still, as fleets added trucks for replacement, Class 8 sales stayed mostly consistent throughout 2020.

In regards to laid-off or furloughed workers, around 70% have been rehired, with new employees onboarded as well, according to Bennett.

Because of truckers’ boosted efforts to deliver the most important freight for our nation’s well-being, they understandably were considered heroes during 2020 with truckload carriers receiving the most work and benefit, according to SJ Consulting Group founder Satish Jindel.

Less-than-truckload carriers that rely on retail or heavier industrial shipments in the public sectors saw more decline in the second quarter of the year, with a revenue drop of 17.9% and a 16% year-over-year shipment decline.

“The pandemic effect on LTLs was significant,” Jindel said.

Although the virus’s long-term effects were felt industry-wide, Bob Costello, chief economist for American Trucking Associations, assured that already-in-place business practices were not a factor.

“It was a health crisis that morphed,” he said. “We have to get solutions to the health issues for trucking to come out of this completely. Eventually, the economy is going to grow at a really strong clip to historic highs.”

As oil prices rose in the later end of 2020, hopes surrounding the COVID-19 vaccine remained high, and industry experts expected the global fuel demand would relax as these vaccines became available.

“We’re seeing a rebound in demand, and refiners have been tightening to the [oil] supply,” said Phil Flynn, an industry analyst based in Chicago. “The refiners had to work off a lot of diesel supply, and they have done all they can to draw down those inventories because there’s been a glut. We’re also seeing demand here in the U.S. and China start to go through the roof again.”

As the virus began showing up across North America, oil demand was not quickly considered anything to worry about.

“The reality is that, at first, there was not much attention paid to it,” said John Lyboldt, president of the Truckload Carriers Association. “But after a week, COVID-19 became the buzzword and we were grateful to have concluded a successful event just before the virus grew into the global pandemic that it became.”

During this time, communication throughout the industry and its relationships with collaborators were forced to evolve, according to North American council for Freight Efficiency executive director, Mike Roeth. Work was still completed as usual, but the majority of contact between fleets, employers, distributors, manufacturers, and customers became digital and distant.

“I am so proud of how this industry continued its great collaborative work during this pandemic,” said Roeth. “It is just extraordinary and a testament to this industry and our ability to get things done.”

COVID-19’s Impact on Trucking in 2020–A Look Back

March 15, 2021 by Levinson and Stefani Leave a Comment

Throughout the one-of-a-kind year that 2020 turned out to be, truckers received much more attention and praise than ever before thanks to their efforts throughout the coronavirus pandemic.

“American truckers are the foot soldiers who are really carrying us to victory,” said Donald Trump at a White House ceremony early on the pandemic. “They’ve done an incredible job.”

Truck drivers played a key role in ensuring individuals, hospitals, and supermarkets received all of the vital items they needed during the country’s shelter-in-place mandates, and American citizens often made sure to thank drivers for their boosted efforts in whatever way they could.

“We obviously have an industry filled with some of the hardest-working, patriotic people in the U.S.,” said Chris Spear, American Trucking Associations president, during the ceremony at the White House. “Those drivers are moms, dads; they’re husbands, wives. They’re involved in their communities. They’re very charitable. They are the essence of the American spirit and to see it recognized like this in a time of crisis–I have to say–I think that is really an extraordinarily important thing for the leader of our country to do.”

Within the nation’s government, officials worked to help the COVID-19 response. Regulators and legislators moved to pass emergency aid bills and regulatory relief packages in order to help the transportation industry’s efforts be as impactful and efficient as possible.

In fact, a huge multi-trillion dollar aid measure was passed in Congress after policymakers had already approved multi-billion dollar packages; the $2 trillion bill was approved in the spring and included $4 billion for cargo airlines and $25 billion for passenger airlines. Congress was later pressured for further transportation industry emergency aid, especially by Amtrak, port officials, state highway agencies, and transit operators who requested the approval billions of dollars for relief programs within new legislation.

Following these efforts, ATA urged congressional leaders to safeguard motor carriers from particular liability risks affiliated with the COVID-19 virus.

“The trucking industry is proud to play an outsized role in COVID-19 response and recovery efforts, and we ask that you consider the essential nature of the trucking industry as you consider the inclusion of reasonable liability protections in any future legislation,” said ATA’s Spear while Congress worked on new relief packages in December.

Now, President Biden’s “Build Back Better” infrastructure proposal aims to improve commercial corridor access–a topic Trump also showed passion towards. Now, Biden enters office while infrastructure funding policy is discussed within the congressional and executive branches and while America’s highway law reauthorization efforts continue to be negotiated. The majority of those within the transportation industry have pushed policymakers to create further investments throughout mobility grids, and these discussions are continuing into the new year.

During 2020, new exemptions, regulation changes, and waivers came to the forefront of transportation industry discussion as industry regulators made many changes in response to the pandemic.

The most controversial, perhaps, is the update on hours-of-service regulation, which were announced by Transportation Secretary Elaine Chao and former Federal Motor Carrier Safety Administration acting administrator Jim Mullen in May.

This final rule decision came after more than a year of agency debate and public comment, and was based on a proposed rulemaking announcement that was made public in August of 2019.

This updated regulation brings much more flexibility to truckers, especially in regards to 30-minute rest break rules, sleeper berth time requirements, and extended on-duty driving time limits. Many safety advocates have proceeded with legal action and continue to object to the increased flexibility, claiming that truckers will be expected to work for longer hours with less rest, making roads much more dangerous.

Also in August, FMCSA released an announcement stating that Mullen would be leaving his post as acting administrator, and that Wiley Deck, former DOT Office of the Secretary senior policy adviser, would take over as deputy administrator for the agency. The following month, TuSimple, an automated technology developer, announced Mullen would be working as the company’s chief legal and risk officer.

Additionally, it was announced that crashes involving not-at-fault drivers could be permitted from FMCSA’s safety profile through its crash preventability program. FMCSA also launched its Drug and Alcohol Clearinghouse database with more than 46,000 drug violations logged within the base’s first year of operation. Additionally, the agency started its military pilot program focusing on younger drivers. Finally, FMCSA officials also announced their intention to begin a Large Truck Crash Causal Factors Study, which would be the first update regarding this kind of data in 17 years.

Dedication of Truckers During 2020 Expected to Pay Off Politically in 2021

March 15, 2021 by Levinson and Stefani Leave a Comment

“What made this year unique was the conditions our industry was forced to work in,” said Chris Spear, President of American Trucking Associations. “Consumers have witnessed now, firsthand, what we do all the time. Unfortunately, it takes a worldwide pandemic for that to come to the surface, but the recognition is so well-earned and deserved.”

Throughout 2020, the response and action made by the trucking industry in regards to the COVID-19 pandemic has shown a revamped perception of the public in regards to truckers and their efforts. This perception is expected to carry on in the coming years, which, many industry experts believe, will likely boost trucking’s infrastructure policy efforts–and their support–on Capitol Hill.

“2020 was a very defining year for trucking,” Spear added.

There have been, of course, a myriad of obstacles truckers have had to defy throughout 2020, including adapting to restrictions made in order to help prevent the spread of the coronavirus, like social distancing and more virtual communication, as well as rest break, meal, and shower location limitations or even closures.

“Year-to-year, we’re accustomed to challenges, but I think the environment we had to perform in was so different–it was something we had to adjust to,” Spear continued. “There’s been a mental toll that this has had on everyone, particularly for drivers being out on the road, away from their families. They can’t telecommute. This is their office. This is where they do their jobs.”

Fortunately, many people across the nation made their appreciation for truck drivers heard, especially during events like Truck Driver Appreciation Week which gained traction across social media and saw companies, groups, and individuals offering food, drinks, discounts, and other goodies to truckers in an effort to show gratitude for their boosted efforts throughout the pandemic and all that was asked of them.

As the country saw truckers stepping up to help deliver the exponentially higher numbers of home deliveries, shipments to medical centers and hospitals, and stock needed in grocery stores and restaurants, their appreciation kept truckers pushing forward.

“In every community across the country, there have been hot meals being made for our drivers, police escorting drivers to where they can get a shower, kids handing out cookies to drivers at truck stops,” said Spear. “You just can’t make it up. It’s such a heartwarming story.”

Spear believes that this recognition, albeit more than ever before, will have lasting effects through this year and beyond.

“It is so different than any other year,” he said. “I believe we will be able to ride this crest into 2021 and it will pay forward. We need to ensure that the public recognizes the importance of our industry and what we do”

Now, the trucking industry’s vital responsibilities include ensuring the shipments of new COVID-19 vaccines to citizens throughout the United States.

“A number of our members, those particularly that are equipped with air logistics capabilities–UPS and FedEx are perhaps two of the most notable in terms of providing support globally–this is what they do, they do it day in and day out,” said Spear.

He also noted that truckers, and other professionals in the transportation sector, are doing their best to bring this new resource to where it’s needed as fast as they can.

“It’s not just the ground; it’s also air. Here we are again, not only making sure we survived the pandemic, but as we transition, we’re that bridge to recovery that stems from the vaccine. Our industry will play a key role so Americans have it as quickly as possible.”

Now, as more and more bills are brought to Washington and other state capitals in attempts to grow, expand, and improve the trucking industry, Spear believes that the industry’s now-glowing reputation will help these efforts become successful more easily.

“Our message is not aligned solely with one political party over another,” Spear explained. “Our message, our narrative, our story speaks to Americans. Our story should resonate with either party, no matter who is in charge. They should have an incentive to work with us. When you are 7.6 million strong, one in 16 jobs in the U.S., where the top job in 29 states is a truck driver, and you’re moving 71% of the economy–you need us. Now, we’re transitioning to distribute the vaccine–they need us.”

ATA is hopeful that President Biden’s administration will push forward major infrastructure legislation as the pandemic eases, and Spear notes that his team has been working with Congressional leaders on Capitol Hill as often as possible.

“We will–in April, May, June–switch gears to an infrastructure bill,” said Spear. “We’ve already been working with the Biden transition team and House Democratic leaders. I have a good understanding of what that bill will look like and the provisions we need to be aggressive to get a fully-funded bill done. It will be good for the economy, [and will help with] the job [losses] we have experienced in 2020, putting people back to work, and I can’t think of a better way to do that than with an infrastructure bill.”

All in all, ATA is looking forward to action in the new year.

“I am very optimistic about where we are heading,” Spear said.

FMCSA Makes Updates to Drug and Alcohol Clearinghouse Website

March 8, 2021 by Levinson and Stefani Leave a Comment

The FMCSA made some changes to its Drug and Alcohol Clearinghouse website and registration process based on feedback it has received from drivers, motor carriers, and service agents. The Clearinghouse is a database that allows government regulators, law enforcement, and companies that employ commercial vehicle drivers access to those drivers’ drug and alcohol program record. It is meant to keep track of any violations and compliance with rules related to those violations.

If a driver violates Federal regulations regarding drug and alcohol prohibitions in Title 49 of the Federal Regulations, Part 382, Subpart B, which include testing positive for drug or alcohol use and refusal to take a test the database will be able to show current status in real time. The database also contains information about a driver’s compliance with the return-to-duty process and follow-up testing.

Some of the changes to the website include a new look for the homepage that places the “Register” and “Log In” buttons in a prominent place. There is also a section titled, “Learn More” containing links to informational resources.

The website also has an entirely new page called “Before You Register” that gives drivers who are enrolling a list of information they will need in order to properly register. This page also has information about how to create an account. These changes are meant to make the user experience easier.

Of course, anything that makes using the Clearinghouse database easier and keeping it current is a good thing. This is not only a plus for public safety, but streamlining the process for properly qualified drivers to be able to register and keep current allows CDL workers, who are essential to our economy, to avoid being unnecessarily restricted from duty.

It is additionally imperative that proper measures can be taken to prevent a driver who violates drug or alcohol use provisions from getting behind the wheel of a commercial vehicle. As important as professional truck drivers are to keeping things moving in this country, it is also a dangerous profession. CDL drivers have a duty to keep themselves and their colleagues safe as well as all other travelers. Government and industry should work together to keep the Clearinghouse database as user friendly as possible. It may seem like a simple thing, but it can hopefully save lives.

Annual Roadcheck Campaign Finds Higher Out-of-Service Rates than 2019

March 6, 2021 by Levinson and Stefani Leave a Comment

2020’s Commercial Vehicle Safety Alliance’s International Roadcheck event, which was originally set to take place in May, was postponed due to the COVID-19 pandemic and took place in early September. Now, reports from the three-day event have been released and show a 20.9% rate of overall out-of-service vehicles throughout the continent of North America–an increase from 2019’s rate of 17.9%.

International Roadcheck is an enforcement and inspection initiative taking place over the course of 72 hours and is conducted by CVSA-certified inspectors. These inspectors examine motor vehicles and drivers’ compliance regarding safety and health protocols throughout the United States, Mexico, and Canada.

In 2020, over 50,000 inspections took place, and include the examination of vehicles such as large trucks, non-hazmat cargo tanks, cargo tanks transporting hazardous materials, and passenger vehicles.

Out of the 50,151 inspections done, 26,451 were Level I inspections, 11,224 were Level II, 11,364 were Level III, and 1,112 were Level V.

When releasing the results of the event, CVSA said that the International Roadcheck “highlights the daily work of the more than 13,000 commercial motor vehicle inspectors throughout North America and acknowledges the safety compliance of motor carriers and professional drivers through the issuance of the CVSA decal on eligible vehicles.”

These decals are given to vehicles that are not found to have any critical vehicle inspection item violations following a Level I or Level V inspection. For 2020, 9,303 power units, 3,662 trailers, and 123 passenger vehicles were issued a decal.

During the course of the 45,046 Level I, II, and III inspections that occurred throughout the United States, 7,256 vehicles and 2,365 total drivers were removed from American roadways.

Issues regarding brake systems made up the largest number of out-of-service violations throughout the U.S., a number which comprised over a quarter of all out-of-service vehicle violations. For drivers in particular, hours of service regulation violations were the most common, as these violations made up 32.5% of overall out-of-service driver violations.

Across the continent, the five most common vehicle-related out-of-service violations found upon inspection had to do with tires, lights, cargo securement, brake adjustment, and overall brake systems. The top five for drivers were, of course, hours-of-service violations, as well as wrong class license, suspended license, false logs, and “other” violations–mistakes like cell phone use and moving violations.

“Although the coronavirus pandemic understandably shifted priorities and personnel during the spring, the commercial motor vehicle law enforcement community has reasserted its focus on the roadside inspection program and enforcement duties,” said CVSA President, Sgt. John Samis, at the time the postponement was announced. “Jurisdictions are nearly back to their pre-pandemic capacity with a strengthened concentration on identifying and removing unfit vehicles and drivers from our roadways using federal safety standards and the out-of-service criteria.”

This is the first year in 32 years that the International Roadcheck event did not occur on schedule. The decision to postpone was “thoroughly and thoughtfully discussed,” according to Samis. “The experience is unprecedented in our modern society, and we all need to do all that we can to help stop the spread of this global pandemic.”

While adhering to strict safety precautions, inspections worked to collect and verify drivers’ documents, identify motor carriers, check records-of-duty statuses, examine driver’s licenses, and carefully check periodic inspection reports.

Inspectors also checked Medical Examiner’s Certificates, daily vehicle inspection reports, and Skill Performance Evaluation Certificates when necessary.

Illness, fatigue, drug or alcohol possession or impairment, and proper seat belt usage were also checked for.

“As we urgently respond to this time-sensitive crisis, we must remain diligent and committed to ensuring that the commercial motor vehicles and drivers providing essential goods and services to our communities are following motor carrier safety regulations,” Samis explained. “Safety doesn’t take a break. It is always our top priority.”

More than 1.7 million roadside inspections have been conducted throughout International Roadcheck events since the beginning of the campaign in 1988. The Federal Motor Carrier Safety Administration, the Canadian Council of Motor Transport Administrators, Transport Canada, Mexico’s National guard, and the Mexico Ministry of Communications and Transportation all participate each year in CVSA’s Roadcheck.

The next International Roadcheck campaign will take place between May 4th and 6th of 2021, pandemic permitting.

Final Rule Relaxes CDL Skills Training and Testing Restrictions

March 5, 2021 by Levinson and Stefani Leave a Comment

The final rule aiming to relax commercial driver license skills testing requirements has been implemented by the Federal Motor Carrier Safety Administration.

This final rule will officially permit states to allow third-party test examiners to test CDL applicants on their skills once the examiner has already provided skills training to the applicant.

This final rule has been long-awaited throughout the COVID-19 pandemic as more truckers than ever have been needed on the nation’s frontlines. The U.S. Department of Transportation announced the final rule on December 17th, citing the need for flexibility being due to truckers transporting the first loads of coronavirus vaccines.

“Under [Transportation] Secretary [Elaine] Chao’s leadership, the Trump administration has continued to examine ways to provide commonsense regulatory reform and help individuals seeking to enter the commercial driver industry,” said Wiley Deck, FMCSA Deputy Administrator. “This new rule will provide states more flexibility during the ongoing public health emergency to test CDL applicants and allow more drivers to safely enter the industry.”

An earlier federal restriction did now allow an instructor of commercial driver license skills authorized by a particular state to also administer a CDL skills test to the same applicant. Now, the final rule releases that restriction, permitting states to decide for themselves whether or not they will allow a third-party trainer to also administer skills testing for one person.

The argument behind the final relaxation of the restriction is that drivers entering the industry will be able to find gainful employment much sooner than they would have otherwise–something the industry deems vital right now.

“During the COVID-19 public health emergency, truckers have been American heroes,” said Secretary Chao, “and the department is committed to helping our economy by reducing unnecessary barriers for those interested in obtaining jobs in the trucking industry.”

FMCSA, in the announcement of the final rule, ensured that the validity and integrity of CDL skills training and testing will not be compromised by this boosted flexibility.

“The agency believes that allowing states to permit this practice may alleviate CDL skill testing delays, and reduce inconvenience and cost for third-party testers and CDL applicants without negatively impacting safety,” said FMCSA’s document explaining the final rule.

If a state decides not to allow third-party test examiners to provide CDL testing, they are not required to do so under the new rule. As of now, FMCSA says 10 states do not authorize any third-party testing methods.

The final rule document will explain the public comments in opposition to the proposal, which detail worries regarding fraud and conflict of interest. The document follows the Notice of Proposed Rulemaking on this rule, which was originally announced in June of 2019. The final rule took place immediately following FMCSA’s publication in the Federal Register.

Further commentary in support of the new rule showed confidence in safety and explained the current methods in place that work to determine fraud within CDL skills testing. Examples of what was noted include the regulation indicating that states must do one of the following at least once every other year: use a third-party to administer a skills test for state employees; or, on a sample of drivers being tested by a third-party group, compare testing results by having the third-party examiner co-score an applicant on a CDL skills test with state employees also scoring the same applicant.

Driver testing and licensing has faced many obstacles during the coronavirus pandemic, with many licensing offices having to adhere to safety guidelines and require testing by appointment only. These particular delays are believed to have worsened the current truck driver shortage–which has become exaggerated as more deliveries are being made than ever during a time when so many people are shopping online.

This shortage also, of course, brings further challenges to the shipments needed to keep grocery stores stocked with food and household goods and hospitals stocked with personal protective equipment, medical equipment, medication, and, now, COVID-19 vaccines.

Additionally, FMCSA claims this is only part of a series of steps “focused on reducing regulatory barriers for CDL applicants,” noting that “In March 2019, the agency authored a final rule streamlining the process and reducing costs to upgrade from a Class B to a Class A CDL–a deregulatory action that will save eligible driver trainees and motor carriers $18 million annually.”