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New Bill Introduced to Support Female Truckers

Lawmakers are introducing new legislation that will aim to support women working in trucking.

The Promoting Women in Trucking Workforce Act would work toward directing the Federal Motor Carrier Safety Administration to create a Women of Trucking Advisory Board, which would potentially break down the obstacles many women face while entering the industry. It would also work to collaborate with trucking companies, trucking associations, and other organizations in order to put into place new education and training techniques, as well as to develop mentorship and outreach programs for female-identifying employees in the trucking world.

Senators Jerry Moran (R-Kan.) and Tammy Baldwin (D-Wis.), who both serve on the Senate Committee on Commerce, Science, and Transportation, introduced the act on November 14th.

According to the Department of Labor, women made up about 47% of the civilian labor force in 2016. However, the Women in Trucking Association’s data show that less than 8% of truck drivers are women.

The bill would make sure the FMCSA administrator submits a report to Congress in full detail of the board’s findings and proposals.

“In Wisconsin, we make things, and we need to ensure we have a strong workforce to transport our goods to market,” said Sen. Baldwin. “Women currently make up less than 10% of the truck driving workforce, and removing the barriers that get in the way of women pursuing and retaining careers in trucking is key.”

Sen. Moran explained that the current truck driver shortage not only highlights a strong need to find new ways to recruit and retain drivers, but that there is a specific need to motivate more women to jump into the industry.

“Because women are substantially underrepresented in the trucking industry,” he said, “Congress should explore every opportunity to encourage and support the pursuit of careers in trucking by women.”

Moran has also helped lead a method of promoting women in aviation, which was included in the FAA Reauthorization Act of 2018.

The American Trucking Associations and the Women In Trucking Association are supporting the new legislation. ATA President Chris Spear said in a letter to the senators who introduced the bill, that although women are still underrepresented in trucking, the overall number of female truck drivers has increased by 68% since 2010.

Spear also noted that women tend to work more safely as truck drivers in comparison to their male counterparts. For example, the American Transportation Research Institute’s Crash Predictor Model was updated to show that men are 88% more likely to have a reckless driving conviction. Additionally, the research showed that men are 20% more likely to be involved in a crash.

The Women In Trucking Association’s president, Ellen Voie, was able to offer her own input on the new legislation, and said she was beyond happy to have her voice heard.

“By creating an advisory board to utilize the expertise and resources of the [FMCSA] and the members of the board, we can increase the opportunities for women as drivers, technicians, owners, trainers, and in other relevant career roles,” she said. “This’ll help us at a much higher level. It’ll also get other people involved.”

This bill comes soon after the FMCSA announced in July its plan to research violent crimes against women and minority truck drivers in the U.S., an assessment which the agency says will help to increase the number of qualified potential drivers.

“FMCSA needs to explore and validate the problem of harassment- and assault-related crimes, especially against female and minority male truckers for two reasons,” said the agency in its July 23rd announcement. “First, there seems to be a perception among these sub-populations of truckers that they are more vulnerable than others. Second, there is a critical shortage of truckers, and helping these sub-populations of tuckers protect themselves from crimes could draw more truckers from these sub-populations, while stemming turnover, to alleviate the shortage.”

The FMCSA is currently seeking White House approval to begin assessing the scope of this issue, and has since started collaborating with nonprofit research group Battelle to execute the study. As of now, the agency cites documentary and anecdotal evidence of these crimes, but does not yet provide methods of how women can protect themselves.

The Women in Trucking Association is now working with FMSCA to help the study get up and running, and is offering an anti-harassment employment guide to carriers that are working to address these issues among driver teams of all genders.

Ken & Jay Recognized as Leading Lawyers for 2019

Ken and Jay were once again named as Leading Lawyers by Law Bulletin Media. Their selection was the result of a rigorous process involving peer recommendation, the lawyer’s standing in the legal community within the state, and a review by the Advisory Board. Fewer that 5% of all lawyers in the state receive the distinction of being a Leading Lawyer.

Ken has been honored as a Leading Lawyer for multiple years, most recently in 2017 and 2018. Jay was also named a Leading Lawyer in 2018, after being recognized as an Emerging Lawyer in 2017.

Trucking Industry Slowdown: Especially Difficult Quarter for Knight-Swift Transportation

Capacity has increased due to big rig orders hitting a record high last year, with both major and independent trucking companies upping capacity in correlation with higher rates. This was caused mostly by the trade war, which led to a change in regular shipping patterns.

Overcapacity has proven itself a huge cause in the current challenging freight industry of 2019.

David Jackson, CEO of the country’s largest trucking company, Knight-Swift Transportation, is predicting overcapacity to make for a highly difficult next quarter for the industry.

As Knight-Swift gears up to report its earnings for the third quarter of the year, Jackson says he is currently working with the company’s investors to prepare for instability.

“The freight environment is difficult,” he explains. “It has been more difficult than people expect from an earnings standpoint.”

Jackson says the trucking industry is about to hit his leading company’s bottom line, while he also expects truck and rail stocks to experience a similar negative impact.

Knight-Swift has lowered its earnings plan for the rest of 2019–previously, its earnings guidance was between 54 and 57 cents per share now, its forecast falls between 47 and 48 cents.

The trucking company is also expecting to make even less during its fourth quarter, lowering its prediction of earning between 73 and 77 cents per share to between 62 and 65 cents.

According to Jackson, overcapacity is the culprit. Capacity has increased due to big rig orders hitting a record high last year, with both major and independent trucking companies upping capacity in correlation with higher rates. This was caused mostly by the trade war, which led to a change in regular shipping patterns.

Additionally, while the trucking market is working to correct itself, employment rates given by the U.S. Department of Labor indicate a for-hire reduction of 4,200 trucking industry jobs last month–the third month in a row the industry has retracted open employment opportunities.

In August, the trucking industry dropped 5,100 jobs, on top of 300 back in July.

Jackson says these reductions aim to improve the carrier operating environment. “People in the industry and investors are looking for when that inflection point will come. [The] general consensus is, that is happening the second quarter of the year.”

Because capacity will most likely reduce after this challenging period, Jackson expects freight rates to return to stability during the first half of 2020.

Until this upswing, company earnings will continue to reflect the repercussions of overcapacity.

While Knight-Swifts’ overall business is comprised of 90% contract trucking, its revenue per truck declined 3% in the second quarter of 2019. The company’s brokerage revenues–where it uses the spot market to directly connect drivers and customers–decreased by 10%.

“There is going to continue to be near-term pressure on freight rates, but capacity is leaving the space and that is reducing the oversupply problem,” explained Jackson, whose comments come while the American Trucking Associations is also warning the industry of a continuation truck driver shortage.

The American Transportation Research Institute’s list of critical issues shows truck driver shortage leading the industry’s concerns for the third year in a row.

The list comes after the ATRI collects over 2,000 surveys from industry stakeholders, with 51% of responses from trucking companies and another 35% from professional commercial truck drivers.

However, there is a fierce debate regarding the validity of this issue. The ATA has been fighting against a study by the Bureau of Labor Statistics, which finds that the driver shortage is in fact a myth.

In the BLS study, findings show the labor shortage within long-haul trucking would potentially be solved with proper wages that meet truckers’ demands and working conditions.

The Owner Operator Independent Drivers Association (OOIDA) also believes the idea of driver shortage is a farce backed by major carriers refusing to admit to large industry problems–such as those surrounding driver retention and recruitment, poor working conditions, wages not keeping up with inflation, and unsatisfactory employee treatment.

The ATA currently estimates that there is a need for over 60,000 drivers, with a possible shortage of 100,000 drivers over the next five years.

The ATA also says it supports the ‘Drive-Safe Act’ legislation, otherwise known as the Developing Responsible Individuals for a Vibrant Economy Act, which works to allow 18-year-old drivers to have a CDL and contract as regular employees in the industry.

Critics say the driver shortage myth aims to win lawmakers’ support in legislation such as this, which they say will not remedy the industry’s chronically excessive driver turnover rate.

Second Listening Session for Hours-of-Service Proposal

WASHINGTON – On September 17th, the Federal Motor Carrier Safety Administration will hold a second listening session regarding changes to its hours-of-service rules for commercial drivers.

In the original August 23rd session in Dallas, commercial drivers suggested they be given new flexibility in their mandatory 30-minute rest breaks, and be allowed to split their 10-hour off-duty time in sleeper berths into an eight hour period of rest and two hours of non-driving.

The new proposal suggests drivers be able to break that time up into a 6-4 or 5-5 hour split–arguing that drivers should be able to decide how they use their non-working time, and that this be made clear in the new regulation.

It isn’t all about how to divide rest time, though: this proposed flexibility would also extend duty time for drivers working in inclement weather by two hours, as well as lengthen the maximum on-duty period from 12 to 14 hours and the distance limit from 100 air miles to 150.

Candace Marley, and independent contractor and company driver, said at the session that she believes 30 minutes is longer than needed for a break, explaining she favors shorter breaks more frequently. “Let’s encourage more movement throughout the day,” she plead. 

ABF Freight System driver, Steve Smalley, said drivers making pickups and deliveries in urban areas need to drive more often, and explained that the mandatory 30-minute break “restricts [drivers].” 

However, some are concerned the proposal’s definition of adverse conditions (e.g., severe weather) is not clear enough and that drivers may abuse the flexibility. 

Riky Von Honaker, TX Loadrunners’ director of risk management, said he agrees drivers should make their own decisions, but worries some may want to use the review factor “for anything and everything.” He explained that a forecasted hurricane should not be considered an adverse condition, insinuating drivers may abuse the rule with such excuses to add more driving time to their routes.

During an early June roadcheck across the U.S. and Canada, 2,874 drivers were placed out of service for driver-related issues–over 37 percent of those were “Hours of Service” violations.

These new proposals come from the Trump Administration and trucking lobbyists’ beliefs surrounding regulation becoming too strict in regards to poor weather, heavy traffic, and drivers’ abilities to complete deliveries promptly.

Upon softening of these rules, truck drivers will not only need to stay on the road for hours longer, but safety measures will fall onto self-regulation by drivers themselves.

FMCSA Administrator Raymond Martinez said during a telephone news conference last month that these changes are meant to allow drivers to manage challenges in their day-to-day responsibilities on their own. “They need some level of flexibility that allows them to work around,” he said. “Many of them felt they were racing the clock with those AOBRDs or ELDs.” He explains that this proposal will hopefully put more power back into drivers’ hands and allow them “to make smart decisions with regard to safety.”

The question remains, though, is the ability to choose less sleep and longer driving hours better for drivers, or will it just increase potential transport revenue? Will drivers allow themselves sufficient rest? Will they use the review factor just to add more hours onto their timesheets, thus driving even longer with possibly fewer hours of sleep?

Although breaktime flexibility is understandable, there isn’t a way to ensure drivers will be getting the rest they need to drive safely and alertly with lenient non-driving period regulation.

After PBS found in July that 60 truckers involved in fatal crashes in 2017 were either asleep or extremely fatigued, these changes don’t appear as if they’ll make a positive impact. When the effects of exhaustion are this serious and common, extending hours seems to be the last thing commercial drivers need.

General President of the International Brotherhood of Teamsters, Jim Hoffa, opposed the changes in an August 14th press release. He expressed that the labor union has “serious concerns,” and that “the FMCSA is abandoning safety and allowing drivers to push themselves to the limit even further.”

Martinez admits this proposed flexibility will not be a cure-all for safety concerns in the trucking industry, but believes they will improve overall safety. He urges participants to submit their views and research–on both what they like and dislike about the proposal. 

He also says he can’t predict how long it will take to analyze stakeholder comments and decide on a final rule, but currently believes they are ahead of schedule. “Don’t give up because of the length of this process,” he urges.

Those interested in the FMCSA’s Notice of Proposed Rulemaking can present their comments at the September 17th session at the U.S. Department of Transportation in Washington, which will stream online for remote participation as well.

Public comment is set to close October 7th; American Trucking Associations and the Commercial Vehicle Safety Alliance are asking for a 30-day extension on this period. Submit thoughts on Hours-of-Service regulation changes to the Federal Register Docket here.

Truck Crash Insurance Minimums Should Increase to Meet Rising Medical Costs

Medical costs have consistently been going up in America in recent years while the minimum liability insurance policy limits that interstate shipping companies are required to carry for their trucks have not followed suit. A bill has been introduced in the House of Representatives that aims to fix this gap in coverage. Representatives, Jesus “Chuy” Garcia from Illinois and Matt Cartwright from Pennsylvania have both put their names on a bill known as the “Insurance Act.”

The purpose of the bill is to expand the minimum limits of liability insurance coverage for trucks that cross state lines from $750,000 to nearly $5,000,000, a number more in line with anticipated medical costs from devastating injuries that can result from a catastrophic crash with a semi-truck.

Some independent shipping companies are concerned that the higher insurance premiums that would result from this bill becoming law could drive smaller companies out of business, leaving only larger outfits in operation.

The Cost of Doing Business

Every business has operation costs. Some are higher than others. The trucking and shipping industry has a lot of overhead. Shippers have to pay for gas, drivers’ wages, and insurance, just to name a few. However, these companies normally pass these costs on to their customers. What we are talking about here is raising the cost of shipping in order to protect individuals and families that are hurt by large truck crashes. Higher insurance coverage limits benefits other professional truck drivers as well, since they also often get injured in these major crashes.  

Additionally, trucking companies that are faced with higher insurance payments will be incentivized to make safety an even greater priority, since insurance companies usually base premium rates on their insured’s track record.

High Insurance Costs Already Affecting Trucking Companies

Carney Trucking Company, based in Alabama recently announced it was shutting down after having been in business since 1983 because of the high cost of insurance premiums. A major accident in 2018 resulted in an insurance quote that was so high it made continuing to operate unaffordable. The company’s fleet had around 25 drivers, all who will have to find other places to work now. Considering the high demand for truck drivers, hopefully these workers will be able to quickly land on their feet.

In the case of this trucking company, according to U.S. Department of Transportation records, their vehicles had a higher out-of-service rate than the national average. Whether these statistics had anything to do with the fate of the company would require additional research and analysis, but there is one thing that likely most people can agree on – better safety precautions will save companies money over time.

There are also low-cost tactics trucking companies can use to increase efficiency, save money, and increase safety. One way to do this is to encourage truck drivers to concentrate on their health. With long hours and limited food choices, drivers may find it hard to take care of their health, which is one of their most valuable assets. Additionally, drivers and trucking companies should plan routes that make sure drivers have enough time to sleep and comply with time limits so that they can remain on duty in a safer manner.

These factors can help keep drivers in their best condition. With good rest and good nutrition, they can be more alert and, therefore, ready to properly react in all types of traffic situations to better avoid hazards and prevent crashes.

We shouldn’t prioritize cheaper shipping costs over driver safety. Additionally, in the event that someone is severely injured in a crash with a semi-truck, we shouldn’t favor lower business costs over providing adequate insurance coverage for high medical costs and the after effects of a debilitating injury.

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