Trucking Industry

State DOTs Request Relief Funding as Transportation Revenue Faces Major Losses

June 4, 2020 by Levinson and Stefani Leave a Comment

As we continue to see the coronavirus pandemic’s impact across the country, many state departments of transportation have begun reporting losses of revenue while more Americans adhere to stay-at-home orders.

In an effort to fight these losses, the American Association of State Highway and Transportation Officials (AASHTO) asked Congress to provide $50 billion in emergency relief, as well as a six-year, $800 billion surface transportation reauthorization bill, earlier this month.

This revenue request will aim to avoid any disruptions in state DOTs’ operations, and will also work to keep transportation systems operating as usual during COVID-19.

Transportation analytics group Inrix Inc. has recently released data showing that overall personal travel across the country dropped by 20% during the week of March 14th, and 42% by March 21st.

“That’s going to directly translate into a lot fewer gas tax dollars for states–and sometimes for local governments, too–to repair and expand their infrastructure networks with,” said Institute on Taxation and Economic Policy research director, Carl Davis. “This is all happening so fast. We don’t have a lot of hard data yet, but the early indications are already clear, and it’s going to be ugly.”

Inrix’s data also indicated that truck travel has had large drops as well, with figures showing long-haul truck traveling down 20% in the week ending March 27th, and commercial travel down 16% in the same week

“We expect it has to do with retailers [that] still need their inventory, [and] pharmacies [that] still need medicine,” said senior policy analyst at the Tax Foundation, Ulrik Boesen.

Toll revenue will also see major losses with fewer drivers out on the road–according to Boesen, there is currently little incentive for people to pay for express lanes with so many fewer vehicles sharing the highway.

“It’s almost hard to imagine an area of state and local tax that isn’t getting pummeled right now by what’s happening in the economy,” said Davis. “All these revenue sources are going to be dropping, and dropping very sharply.”

Right now, state DOTs are estimated to lose around 30% of their transportation revenues over the next 18 months. AASHTO’s $50 billion request is based on the revenue collecting methods of state DOTs, which, according to 2018 numbers, included 43% in highway user fees and tools, ($78.4 billion), 23% in federal grants ($42 billion), 18% in other state funding ($33.6 billion), 13% in bond issuance (23.8 billion), and 3% in local governments’ payments ($4.7 billion). With a total of around $112 billion in state DOT revenue, a 30% reduction would mean falling short by almost $50 billion.

“AASHTO is very concerned about the situation, and we see a phase 4 stimulus as a way of helping to provide immediate funding to prevent major cuts in the near-term for projects across the country,” said Tony Dorsey, AASHTO spokesman. “Our big concern is that if we don’t get this immediate backstop, as we’re calling it, we’re going to see possible project delays and a ripple effect throughout the entire economy.”

In addition to the $50 billion in emergency relief funds, AASHTO requested a six-year, $800 billion surface transportation reauthorization bill, which would work to eradicate the current investment backlog by 2030–while supporting overall economic recovery. AASHTO cites a $786 billion backlog in highway needs and a $116 billion backlog in transit needs under the US DOT Conditions and Performance Report.

Approval of these efforts will eliminate the longstanding backlog while addressing current condition and performance needs, which would support long-term economic growth–although the request calls for double the amount of federal funding within the FAST Act.

America’s road and bridge needs are also currently underfunded, with a $836 billion backlog of highway and bridge capital needs. Of the backlog, $420 billion is in repairing present highways, $123 billion is in bridge repair, $167 billion is in system expansion, and $126 is in system enhancement. Transit systems have also been extremely underfunded, bringing a $90 billion backlog in their rehabilitations. These numbers are likely to worsen as the pandemic continues.

On March 27th, President Trump signed the Congress-approved stimulus of $2.2 trillion. Now, lawmakers are working to decide upon the next phase of their COVID-19 response legislation.

Elaine Chao Details DOT’s Methods of Helping Truckers During COVID-19 Crisis

May 29, 2020 by Levinson and Stefani Leave a Comment

Transportation Secretary Elaine Chao says she is planning to amp up the Department of Transportation’s efforts in supporting truckers throughout the country during this pandemic.

According to Chao, the federal government will soon begin working on new methods of improving national infrastructure, possibly by using funds from the COVID-19 relief package of $2.2 trillion. Chao also emphasized the importance of recognizing the efforts of truckers who are working harder than ever to meet the demands of this challenging time.

“I don’t think many Americans think about the supply chain much during ordinary times,” she said, “But now that phrase–the supply chain–is being talked about everywhere. So many more people now understand that it’s due to truckers and trucking companies that food shelves in a supermarket get stocked, or that gasoline stations are able to sell gasoline.”

So far, the DOT has temporarily waived of the hours-of-service requirements that were amended in mid-March by the Federal Motor Carrier Safety Administration, provided temporary enforcement discretion for drivers transporting hazardous cargo (such as lithium batteries and gasoline, and highly-sought-after goods like hand sanitizers), and has given hazmat drivers a 90-day relief period from taking hazardous material refresher courses that are typically required every three years.

Chao said the reasoning behind these decisions is that efficient delivery of these materials, as well as household goods, food, water, and medical supplies, is especially important right now.

“All these products don’t appear by magic,” she explained. “We are able to live and take care of our families during this very special time because of the hard work of truckers throughout the country.”

The FMCSA has also granted certain exceptions until at least June 30th for some expired commercial driver licenses and learner’s permit medical certifications, and has also restructured current guidance around drug and alcohol testing requirement compliance.

Chao also praised the efforts of the interim chief of the FMCSA and his work with individual states to keep rest areas open.

“We’ve heard from a lot of people in the industry about concerns that some states may close rest areas,” she said. “So, I’ve had FMCSA acting Administrator Jim Mullen reach out and work with the state departments of transportation and other relevant entities to keep this critical infrastructure open, so that more carrier drivers have a safe place to rest.”

In addition to these regulation relaxations, the CARES (Coronavirus Aid, Relief, and Economic Security) Act is providing small business loans and a Paycheck Protection Program to many small trucking companies.

“After an initial sharp rise in demand to restock shelves and deliver supplies, the decline in economic activity has had negative consequences for the industry with decreases in freight volumes and rates since their peak during the public health emergency in the 3rd week of March,” said Chao in a DOT blog post. “Certain sectors of the industry have been hit harder than others, and the emergency affects trucking companies of all sizes. Many independent drivers and smaller trucking firms, which employ 90 percent of all truck drivers, are struggling to survive.”

Chao also mentioned that trucking firms can utilize loan opportunities from the Small Business Administration, which has made additional funds available during this crisis.

“We hope that truckers and others can see that the U.S. Department of Transportation is looking out for their interests and helping the country regain our economic vitality and vibrancy,” said Chao.

The allocations from the CARES Act could also potentially go into infrastructure, according to Chao.

“The monies have not gone out yet,” she explained. “Let’s see how that will help people. We hope it will help a lot. The Department of Transportation has a mandate to get out transit grant dollars, and we are hard at work. We’re going to meet the deadline to get that money out.”

Chao also wanted to offer her gratitude to the truckers erving the country at this time.

“I know that it has not been easy, but the whole country is just cheering on America’s truckers,” Chao said. “I want the families and the loved ones [of] trucker drivers to know that we’re thinking about them as well. We appreciate so much their support for their loves ones–the truck drivers–so that they can perform an essential service for our country during this critical time.”

Mobile Apps Work to Help Truckers, Waive Fees During Pandemic

May 28, 2020 by Levinson and Stefani Leave a Comment

As the demand for essential goods deliveries continues to climb in the midst of the coronavirus pandemic, truckers are busier than ever. What many people may not realize, however, is how big a role mobile apps can play in the success of a truck driver’s day.

The trucking industry has already had multiple apps in place that allow truck drivers to hop onto digital platforms and find anything from potential gig opportunities to traffic updates. While the pandemic has boosted the workload for truckers across the country, many methods of increased efficiency, such as these kinds of apps, have come to the forefront.

“Truckers are essential to our economy, and they want the latest information about trucking and coronavirus in one convenient place,” Frank Adelman, CEO of the app Transflo, said. “We are listening and now provide free resources to help the industry manage business and stay up-to-date with this constantly changing situation.

Transflo recently launched a new suite of digital tools, such as electronic logging systems and document upload capability–free of charge.

Trucker Tools, an application focusing on freight matching and digital load tracking, recently released a new version of its app in an effort to help drivers access information regarding fuel prices, industry news in relation to COVID-19, how to find open loads, and more.

“During this stressful time, it’s important to reduce face-to-face contact and access real-time information quickly when you’re out on the road,” said Trucker Tools on its website. “If you’re like most truckers, you may be struggling to find open rest areas, food, and supplies along your route due to the COVID-19 pandemic.” The company says this app has over 17 different features to help truckers find solutions to these issues.

In the new version of the app, many features are updated, such as notifications regarding “if a particular shipper is doing something special for these guys, or truck stops that say ‘We are still open 24/7, but instead of a buffet, now we have packed meals for drivers to pick up” said Trucker Tools founder, Prasad Gollapalli.

A startup in Lincoln, Nebraska has also been working to offer free services to truckers via its mobile app, BasicBlock.

“Oftentimes, [truckers are] having to go into truck stops to use fax machines or having to interact with back offices and handle physical documents,” said Taylor Monks, BasicBlock founder and CEO. “For us, we provide this tool that they can use from the safety of their cab, to put a barrier between them and the high traffic areas of a truck stop.”

On BasicBlock, all of a truck driver’s necessary paperwork can be filed directly on the app, as opposed to in an office or truck stop service.

During a crisis such as this, driver wellness programs are working to get information out to all drivers–for free.

“We have been distributing that content through an email distribution list,” said Steve Kane, President of driver wellness program provider, Rolling Strong. “We’ve created our own COVID-19 wellness tips web page.”

According to Kane, these efforts were implemented early on in the pandemic, as its developers knew these resources would be needed by drivers right away.

“We’ve focused on things that are very specific to the driver community, like reducing touch points at truck stops, because there are a lot of those, educating people on how long the virus lives on different types of metals and plastics and surfaces, how they can protect themselves, how they can deal with the stress–not only for themselves, but [for] their families,” Kane explained.

Rolling Strong is also working to inform drivers on topics such as nutrition choices that help boost immune systems, truck stop hours of operation during the lockdown, open locations for drivers to get exercise, and where drivers can have a physical exam in compliance with commercial driver’s license medical requirements.

Relay On Demand is another helpful mobile app providing an electronic payment system for freight handlers and waiving all transaction fees through April, at least.

“What we have seen is [that] volumes are up, especially at grocery and cold storage distribution centers,” said Spencer Barkoff, President of Relay. “We’re doing our part to help brokers and carriers.”

Free Food and Parking Offered to Truckers Due to COVID-19 Challenges

May 27, 2020 by Levinson and Stefani Leave a Comment

In the midst of the nationwide battle against COVID-19, our truck drivers are busier than ever ensuring we get our necessary medical and household supplies, food, and much more. Because of this, truck stops, along with state and federal associations, are doing what they can to help these truckers along the way.

Many restaurants have limited service to just drive-through and carry-out meals at the same time grocery stores are struggling to keep shelves stocked. Because of this, truckers have expressed their concerns regarding the challenges of finding accessible food while on the road.

In response, various travel center chains along particularly busy freight corridors are offering truck drivers free meals and parking while they make these important deliveries.

For example, The Nebraska Trucking Association has partnered with chains like Sapp Bros., Shoemaker’s Travel Center, and Bosselman Enterprises to implement a voucher program to provide free lunches for truckers working along Interstate 80–an expansive freight route between San Francisco and Teaneck, New Jersey.

“That is a long stretch of important corridor,” said association president, Kent Grisham, of Nebraska’s interstate. “Tens of thousands of trucks are traveling our state every day. We take that responsibility very seriously. We need to take care of the drivers. They’re part of the truck driving community. If [you’re] a driver, here’s your free lunch.”

Grisham explained that truckers are often working along the more than 450 miles of I-80 that spread across Nebraska, and that many Nebraska Trucking Association members, who had previously agreed to sponsor the association’s spring conference, decided to donate their money instead to the free lunch program when COVID-19 caused the cancellation of the event.

Sapp Bros. also decided to provide free parking at each of its 17 locations between Utah and Pennsylvania–also along I-80.

“All truck parking is free for now,” said the company on its website. “We remain open at all locations to serve you. Thank you, drivers!”

The company said its restaurants would stay open for however long governments allow. It will also boost all sanitizing methods around food contact surfaces, soda fountains, and other areas of interaction. Employees must also wear gloves whenever handling food and money. The company has discontinued the use of refillable cups and mugs and is bleaching showers after every single use.

Additionally, The Iowa Truck Association has provided 2,000 free boxed lunches for truckers at two weigh-in stations on I-80–the Jasper County Scale and the Dallas County Scale–over a two-day period. The association used a drive-through setup in order to comply with CDC guidelines.

“We want to show our appreciation to the professional men and women that are playing a critically important role as the COVID-19 pandemic unfolds,” said Iowa Motor Truck Association president and CEO, Brenda Neville. “We believe that providing a boxed lunched seemed to be the best way to achieve that goal, since getting food on the road has become a bit more difficult in the current situation.”

The association also ordered these lunches from restaurants that had to shut down operations due to the virus. Neville explained that she wants to continue working with other state transportation officials in finding other ways to serve more areas around Iowa.

“We’re very appreciative of folks that are stepping up and helping, especially right now in these challenging times,” Neville said. “Our main objective was to do something for the drivers that we thought would be impactful. It was something that we felt was a really appropriate way to show our appreciation.”

The Quail Creek Fire Department in Little Rock, Arkansas has also been offering free hot meals to truckers off of Interstate 530. In Jackson, Tennessee, locals offered sandwiches and chips to drivers on Interstate 40. A group of volunteers (and barbecue aficionados) in the Texas panhandle served brisket, ribs, pulled pork, beans, potato salad, and homemade roles to truckers in the area.

On top of these acts of gratitude, the federal government has also allowed states to operate food trucks in rest areas in order to help feed truckers.

On April 3rd, the Federal Highway Administration announced it would suspend enforcement measures in its Federal-aid Highway Program to allow states to decide whether or not they would permit commercial food trucks to sell food in designated, federally funded rest areas.

“America’s commercial truck drivers are working day and night during this pandemic to ensure critical relief supplies are being delivered to our communities,” said Nicole Nason, FHWA Administrator. “I am grateful to our state transportation partners for bringing this idea to the Department, and for their leadership in thinking outside the box. It is critical to make sure truck drivers continue to have access to food services while they’re on the job serving our nation during thee challenging times.”

The Arkansas Department of Transportation has already announced it would give temporary permits for certified food truck operators to serve truckers at two rest stops–the eastbound and westbound exits at Social Hill rest area on I-30, and the eastbound and westbound exits and Big Piney rest area on I-40.

ATA Praises Trucking Industry Efforts During Pandemic, Prepares for Challenges Ahead

May 26, 2020 by Levinson and Stefani Leave a Comment

The trucking industry has been making waves throughout the crisis of the pandemic–with truckers working over time, delivery services modifying procedures, and agencies changing rules to allow for more efficient deliveries of necessary medical supplies, food, and household goods.

Chris Spear, President of the American Trucking Associations, said he is proud of the help that the industry is giving to Americans during this time, but also said that there are many more obstacles ahead for both the business and the government as a whole.

“This certainly brings again what our industry does for the entire American economy to help us get through it,” said Spear. “If you want those shelves restocked, if you want the medical supplies and the test kits brought to the front line, you’ll need our industry, and I think people now have a laser focus on that and that is very appreciated.”

Spear expressed his gratitude for the 3.5 million truck drivers who are working far from their homes and families, and bringing those supplies to the people sheltering in their homes and doing their part to slow the spread of COVID-19.

“This is unprecedented,” said Spear of the industry’s experience. “This is clearly our time to shine.”

Still, although the current challenges have forced the industry to step up to a whole new level, there are more difficulties ahead.

“I think it takes some foresight to really anticipate where this is headed, and if it does change, it’s going to change rather quickly,” said Spear. “I think we are in a phase now where we are seeing an uptick for a number of industry segments, such as truckload [and] refrigerated. But you also see less consumption of fuel. We’re not seeing flatbed or agriculture benefit from this as much as we’d like. We’re seeing a lot of sectors that are not seeing that growth. It’s not across the board, and I think it’s very responsible for us to be looking two, three quarters ahead at what this may be looking like.”

A major factor in the success of these operations, Spear said, is the ability to work together with government agencies.

“I’ve had several calls with (Department of Homeland Security) officials, White House officials,” he said. “Our state executives have been very helpful [with] dealing with governors and mayors that also have a role, and make decisions that can be adverse to our industry if they are not done correctly.”

Because the $2.2 trillion congressional stimulus package includes $377 billion in small business loans, Spear said he believes this will be helpful to many smaller trucking companies, especially in terms of payroll.

“I’m very appreciative of the decision-makers, including Capitol Hill, with the legislation they just passed, recognizing that our industry is welcomed,” he explained. “Making certain we can do our jobs successfully through this pandemic is very important.”

Last month, The Federal Motor Carrier Safety Administration made a major decision to relax guidelines around hours-of-service regulations for trucks transporting essential supplies during the pandemic.

“How long the HOS and other exemptions go on–we’ll have to wait and see,” said Spear. “I don’t think it’s indefinite. Certainly, I believe the federal government is going to give us the relief we need to continue to do our [jobs] and serve the economy while this crisis unfolds.”

Those HOS changes are a bit controversial–as relaxing guidelines means truckers can potentially work longer hours on less rest, allowing for more fatigued truck drivers to be on the roads and creating more dangerous driving environments for themselves and for other drivers.

Regardless, the trucking industry is as busy as ever. According to DAT Solutions, spot rates roses by 12.6% throughout the month of March during a rapid increase in demand to keep stores and hospitals regularly restocked.

The trucking industry will continue to work hard to keep up with demands, Spear said. “This is what we do every day. Our drivers–our industry–are really stepping up to do what [they do] best, and that’s to help us get through this as quickly as possible.”

Truckers with Learner’s Permits Receive COVID-19 Waivers from FMCSA

May 22, 2020 by Levinson and Stefani Leave a Comment

Due to the current COVID-19 pandemic, standards have been relaxed by the Federal Motor Carrier Safety Administration in regards to commercial learner’s permit holders and how they obtain a commercial driver’s license.

The waiver, which will last until June 30th, will allow truckers with learner permits to operate during the coronavirus emergency without needing a commercially-licensed driver in the front seat of the cab–as long as that licensed driver is present in the truck.

With the waiver, the permit-holding driver must also have proof showing that he or she has passed the CDL driving skills test.

The three-month waiver aims to prevent a shortage of commercial truck drivers “from becoming a transportation emergency, and to continue the ability of intrastate and interstate CDL and CLP holders to transport goods in response to the COVID-19 emergency,” said the FMCSA in the waiver, released on March 28th.

“FMCSA has determined that it is in the public interest to issue a waiver, until June 30, 2020, limited in scope in circumstances, that is likely to achieve a level of safety that is equivalent to, or greater than, the level of safety that would be obtained in the absence of the waiver,” the agency explained.

Not only will the waiver not require a learner’s permit holder to have a licensed commercial driver in the front seat whenever the permit holder is driving on public roads or highways, but the state will not need to administer a driving skills test to any out-of-state commercial license applicant who has taken driver training in that state.

Still, permit-holding drivers must always have on hand their non-commercial driver’s license, their learner’s permit, and a medical certificate. Additionally, to make the commercial driver’s licensing process quicker, states can administer driving tests to any applicant, regardless of the state in which they received their training.

“A state driver licensing agency that elects to administer a CDL driving skills test to a non-domiciled CMV applicant under this waiver must transmit the test results electronically directly from the testing state to the licensing state in an efficient and secure manner,” said the waiver.

Still, some states with increased employee absences and office closures have DMVs that are unable to process and issue commercial driver’s licenses at this time.

“Given the national emergency, there is a public need for immediate transportation of essential supplies, equipment, and persons, which requires adequate and sustained supply of drivers eligible to operate a CMV,” said the FMCSA. “This waiver provides needed relief from specified FMCSRs for states and CLP holders.”

According to Don Lefeve, Commercial Vehicle Training Association President, the waiver is not an overall solution to any commercial driver shortage.

“[While the waiver is] a great first step,” he explained, “it doesn’t solve the problem of somebody who needs to get that commercial learner’s permit from the 22 states whose state driver licensing agencies are closed due to the virus.”

Lefeve also explained that CDL holders would still need to be in a sleeper berth, but not necessarily the jump seat, while a permit-holder is operating a truck. As of now, Lefeve believes those drivers-in-training won’t be able to easily move on to driving on their own.

“Typically, new drivers will be paired with a driver trainer for three to eight weeks. depending on the company and individual’s skill progression,” in a “finishing school,” a company providing additional training for drivers who have recently received their CDL, he said.

Lefeve continued: “I think the problem is that if the states’ DMVs remain closed, once that driver could move on to being a solo driver, they could only do so if they have an actual CDL, which, as of now, is near impossible in 22 states because of the DMVs being closed.”

The 22 states that have closed their DMVS also have driver training schools with much more limited operations. “So, it’s critical that governors understand that they need to keep the state driver license agencies open,” Lefeve said.

According to the FMCSA, the waiver does not apply to CMV operators with these endorsements: T (double/triple trailers), P (passenger), N (tank vehicle), H (hazardous materials), X (combination of tank vehicle and hazardous materials), and S (school bus).

“To put all this in perspective, each year–the statistics vary–anywhere from 200,000 to 480,000 CDL are issued,” said Lefeve. “To use conservative numbers, say, 25,000 a month aren’t going to be licensed to do anything in the response or recovery effort.”