Are unnecessary trucking regulations burdening our industry and our economy?

By
Richard Wilson of Trans Products and Services

Physical year 2010 saw the highest upswing in regulatory costs in our country’s history. This Administration has singlehandedly increased regulatory spending by 1.75 trillion Dollars. (US Chamber of Commerce figures) In these tough times of economic rebuilding we need to cut spending and utilize our current regulations as they have proven to work and reduce highway deaths, serious injuries, and improve loss ratios of companies for damage to equipment.

CSA was developed and introduced in December 2010, to improve and make drivers accountable for their personal actions. The FMCSA guaranteed that Driver Data would be held in the strictest confidence so only current or prospective employers would have access to this information. We now find out that that was a LIE! John Hill, the former FMCSA Administrator said,” The agency intended years ago to go public with driver data.” Currently the FMCSA has requested with the submission of the Highway reauthorizations’ bill that it grant FMCSA the authority to release publicly the Drivers DSMS information.

When asked if the intention was to create a public driver ranking system similar to the agency’s CSA motor carrier percentile ranking system, FMCSA spokeswoman Candice Tolliver said, “The Department of Transportation is committed to working with Congress to address this issue as part of a comprehensive push to update transportation programs and maintain the highest standards of safety for the American public.”When asked to clarify her answer, as usual dead silence!
With the FMCSA putting committees together of Law enforcement, Safety Advocacy, groups, Trucking organizations (representing only a small fraction of regulated commercial carriers, the very large ones), and a few token of so called representatives from the trucking side; (remember the organization, that represented the large carriers? Those carriers) to set regulations on the requirements of how to obtain EOBR Data from the on boards of the mandatory EOBR’s that EVERY, that’s right EVERY Commercial vehicle that is currently required to, or has ever done a log.

This would include vehicles 10,001 or greater that went outside of the 150 air mile exemption to travel to sites to do construction or other service related to their profession, not for hire or private revenue generated motor carriers. In essence, companies using commercial motor vehicle to move manpower and supplies not FREIGHT! The additional cost factors of installation and the additional cost of either internet, or satellite base data transfer with no way to recoup costs. This equipment doesn’t generate revenue off of hauling.
So, again we need more regulations that will cost more money with no way to recoup it, we need more regulations that the FMCSA will have to be appropriated more money from the working Americans to enforce and lose drivers because of the information that will be plastered all over the DATA network. These are solutions to decrease the already declining accident rate, and or fatality rate of our industry. Messing with what works, costing more money without increased revenue to help replace costs, no new tax breaks for small or medium carriers to install EOBR’s, sounds to me like a disaster waiting to happen, not a cure for a struggling economy! Andy Card, former White House Staff for the Bush administration put it in perspective, “every new regulation will cost the American small business employer, with less than 20 employees, $10,000 per employee.” I say every new regulation the FMCSA sneaks by will cost the American Small Trucker as well as the largest freight company and average of $250,000 in equipment, Training, and qualifying of new employees to replace those lost to the new regulations.

NOTE:  Richard Wilson is the well known speaker on DOT regulations who will be presenting at the 2011 Truck Driver Convention in October. Richard will be a part of the expert panel that will also be taking questions as part of the 3 Hour Open Forum Discussion at the convention.

© 2011, AskTheTrucker. All rights reserved.

: CSA, DOT, EOBR, FMCSA regulations, Richard Wilson, Trans Products, truck drivers, trucking, trucking regulations

Tagged with: CSA • DOT • EOBR • FMCSA regulations • Richard Wilson • Trans Products • truck drivers • trucking • trucking regulations

Filed under: DOT • FMCSA • Politics • trucking

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Outlook remains choppy-- for economy and truck freight

Experts are saying motor carriers should expect uneven conditions where truck freight is concerned for the foreseeable future.  That is the case even as the fundamentals supporting strong freight demand remain intact.

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?Though industry pricing continues to trend positively, slowing demand trends have limited the upside opportunity in our 3% to 5% rate growth expectation in contractual truckload rates for 2011,? Benjamin Hartford, analyst with Wall Street investment firm Robert W. Baird & Co., noted in the firm?s most recent Freight Flows brief.

?That said, industry conditions remain favorable for carriers given tight capacity and lean inventory levels, which can reaccelerate pricing if a strong demand catalyst were to emerge,? he added.

Weak employment data released by the U.S. Bureau of Labor Statistics for May, showing that just 54,000 jobs were added last month after 232,000 in April, is the latest piece of evidence that the U.S. economy's ?soft patch? is proving softer than feared, said Nigel Gault, analyst with consulting firm IHS Global Insight.

?The slowdown in job creation reflected weakness across the board [and] there was no one culprit to single out,? Gault noted, pointing out that the U.S. unemployment rate has now increased to 9.1%.

?The loss of economic momentum probably reflects the cumulative impact of surging commodity costs, which have squeezed consumer spending power and raised business costs, leading employers to become more cautious in hiring,? Gault added. ?We expect U.S. GDP [gross domestic product] growth of just 2.0% in the second quarter, little different from 1.8% in the first [quarter].?

Yet Eric Starks, president of research firm FTR Associates, told Fleet Owner that this ?up-and-down? trend has been a hallmark of the current economic recovery for some time ? and will be a hallmark of the freight market as well.

?We?re going to see some choppiness in the overall economy and in the freight numbers, too,? Starks said. ?How much the recent employment report and other data affects freight activity overall is unclear at this moment, but the fundamentals [for freight demand] are still solid.?

Indeed, IHS?s Gault stressed that the weak employment report, among other economic metrics, may make things look worse than they actually are.

?It will naturally lead to concerns that this is more than a [economic] soft patch, perhaps the dreaded double-dip downturn,? he said. ?But we still take the view that we are seeing a soft patch within an underlying modestly paced recovery. Fortunately, we are now seeing some relief on commodity prices; if this relief persists, we expect growth to improve in the second half of the year.?

One ?crumb of comfort? in the recent employment report, added Gault, is that the workweek held steady overall, and actually rose in manufacturing. ?In an economy tipping into recession, the workweek is normally one of the first indicators to head south,? he said.

Baird?s Hartford said truck freight trends are now ?normalizing? from robust activity between February and March of this year, consistent with what Baird describes as a ?slow-growth? economy. For example, Baird?s Freight Index has now dropped back to 2% growth year-over-year for the second quarter as opposed to the 5% year-over-year pace exhibited in the first quarter, he noted.

?Southeast and Midwest [truck freight] demand levels remain relatively healthy, while West Coast demand improving though still relatively soft,? Hartford added. ?Public truckload carriers remain optimistic that seasonal volume build will continue through the remainder of 2Q11, though pace of seasonal build remains uncertain [and the] likelihood for pricing above expectations muted.?

However, he pointed out that capacity tightness persists, which is supporting 3% to 5% pricing growth expectations. However, the degree of capacity tightness has moderated as less robust demand trends emerge. So  an upside to expected pricing growth appears muted absent a reemergence of robust volume trends, Hartford added.

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Bucket Truck Tires Rolling Towards Greater Fuel Economy!

When record gasoline costs hit the market price a few years back, the overall effect on consumers was overwhelming. As a result of this, the government established new regulations such as Corporate Average Fuel Economy (CAFE). This directive set a new standard for corporate trucks, elevating their fuel efficiency by up to 20 percent before 2018. In addition, manufacturers are required to produce vehicle models that are fuel-efficient by the year 2014.

Utility companies are very dependent on their bucket trucks; as a result, they are looking for ways to cut down on gas consumption. In turn, this has caused many manufacturers to produce their particular vehicle parts to have a greater positive impact on truck fuel economy. Following are some areas of impact noted by commercial tire manufacturers in their effort to contribute towards greater commercial vehicle fuel efficiency and economy:

Rolling Resistance

The tire rolling resistance is one factor that directly impacts energy consumption. By decreasing this particular driving factor, bucket truck fuel consumption can be lowered. For commercial vehicles, an improvement with its rolling effort is paramount to an overall improvement in fuel efficiency. Approximately 5 to 15 percent of gasoline consumption is necessary for a typical commercial vehicle to overcome this impediment. For this reason, manufacturers are working diligently to put together low rolling resistance tires; however, there are challenges that come with this effort in the area of safety and other areas.

Tire Design

Commercial design specialists are looking forward to producing a drive with reduced levels of rolling resistance. Patterns such as open shoulder ones, though attractive with the vehicle's performance, are not beneficial in terms of fuel economy. This type of tire design has three major problem areas as follows: the many number of absent treads results in less rubber contact with the road; there are more gripping edges or 'sipes' which contributes to higher rolling resistance; and the wheels are exposed to uneven wear which reduces the lifespan of the tread. The only way to achieve a sustainable element is by changing the lug nut dynamics and creating a stiffer lug nut than what is currently marketed. Such a design could try to balance better rolling resistance while maintaining good traction.

Tire Casing

Another component which contributes significantly to road driving management is the construction of the tire casing. Ideally, one that is designed to be free rolling while having long-lasting treads would be absolutely ideal; unfortunately, each one of those possible conceptions places a different stress on the tire with differing outcomes. The resolution of the dichotomy could change the way casings are constructed and treads are designed.

Proper Inflation

Fleet operators have to consider many factors in the overall fuel economy of their company. One overlooked simple solution rests with maintaining proper inflation which can reflect a three-fold benefit to the bucket truck: safer driving; longer tire life; and greater gasoline consumption savings. Regularly checking and maintaining accurate pressure using a gauge will certainly contribute to increased driving miles. If continuous inflation loss is noticed, a bucket truck operator should have the tire checked by a professional. Other related care such as balancing, alignment, rotation, and repair are also important and should be handled by certified service personnel.

The importance on focusing the fleet's function on becoming more efficient will greatly contribute toward increasing the miles of travel per gallon of each vehicle that is driven by a fleet of commercial vehicles and certainly should be given a high priority by any company. By considering the factors mentioned above, finding the best available tire to meet these requirements will greatly contribute to bucket truck safety, comfort, performance and fuel savings. Now keep those tires rolling!

Christopher M. Hunter is an expert in commercial specialty trucks. Click here to find out more about Bucket Trucks.

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Growth in “goods” sector of economy strengthening truck freight

Analysts with FTR Associates took great pains to delineate the difference between GDP and truck freight growth in the current economic recovery during the transportation-forecasting firm?s latest Freight Focus webinar held yesterday.  Noel Perry, senior consultant at FTR Associates and principal of Transport Fundamentals, pointed out that while certain ?structural reasons? explain why the economic recovery overall will be slow, the ?strength of the goods side of the economy has [already] made this a strong freight recovery.?

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Perry said the ?slow recovery on now is expected by most economists to continue.? He explained that GDP growth ?accelerated rapidly? but then slowed over the last three quarters?staying below 3% growth. A key reason that growth slowed is because consumption (of goods and services) has been weak so far compared to earlier recessions.

He then explained there are three structural ?drags? on the economy right now: tight credit, a slow-to-recover housing market (which accounts for a whopping 15% of the economy) and unemployment.

On the other hand, Perry stated that ?the number of jobs is not the only arbiter? of growth. ?We can see the evidence of rising incomes in spending on consumer durables, he pointed out, adding that the U.S. economy is also getting a boost from economic growth overseas, especially in China and other economically emerging nations especially Brazil Russia and India.

?But the best news is the prospects for capital spending by business [here],? he continued. Yet already, Perry pointed out, ?The strength of the goods side of the economy has made this a strong freight recovery.? Backing this up, an FTR chart laying out the average quarterly GDP growth in the recovery through 2010?s Q3 showed that while GDP growth was just below 3%, truck tonnage hit 7%.

As the recovery continues, Perry expects GDP growth to be aligned with earlier recoveries (specifically 1983-4 and 2002-03) in that it will come back slowly. ?It is perfectly normal to have a slow quarter [GDP below 3%] or two during the first two years of recovery,? he stressed.

Turning specifically to trucking, Perry said its recovery will be hampered not by freight levels, but by ?conservative capacity additions? [of equipment and drivers by fleets and the impact of several new] federal regulations.?

Per another FTR chart, Perry detailed  ?truck loadings growth? from 2011 Q1 through Q3 as being essentially just shy of 5% with that target being hit straight on in Q4. ?This growth is more than enough to create a tight truck [capacity] market in 2011 and 2012,? he observed

And because Perry sees ?trucking management as having big scars? from what they have been through in this downturn, he expects that a ?conservative? approach to adding equipment will continue. But the biggest issue facing fleets going into 2011 and well beyond will be ?the constricted pipeline for driver supply? now in place. He explained that in the downturn many fleets disassembled their driver-recruitment infrastructure and must now scramble to get people in place to process driver paperwork and to train drivers.

On top of that, Perry pointed out, there is the negative impact new federal safety regulations from CSA to further hours-of-service reform will have on the existing and prospective driver labor pool to keep in mind.

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Truck Driving Jobs in a Downward Economy - Apr 07,2009

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