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Diesel Jumps 9.1¢, Vaults Past $4 a Gallon
Gasoline Leaps 13¢ to $3.721 for Ninth Gain in 10 Weeks
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Diesel jumped 9.1 cents to $4.051, the first time it has topped $4 since November and the highest price since May, the Department of Energy said Monday.
Gasoline prices soared 13 cents to $3.721 a gallon in the largest weekly increase in nearly a year, DOE said following its weekly survey of filling stations.
Diesel’s seventh increase in eight weeks left it 33.5 cents over the same week last year. Gasoline is now 33.8 cents higher than a year ago after its ninth gain in 10 weeks.
Diesel has posted a net gain of 26.8 cents in the past two months, following a cumulative drop of 22.7 cents in six weeks before that.
Gasoline has gained a cumulative 49.2 cents in the past 10 weeks. Monday’s increase was the biggest since a 13.7-cent jump March 7, 2011, and the price was the highest since June
Wednesday, February 29, 2012
Tuesday, February 28, 2012
Consumer confidence up in February - Source Retail AP
Consumer confidence up in February
By ANNE D'INNOCENZIO AP Retail WriterAssociated Press
NEW YORK—A private research group says that consumer confidence in February rose dramatically from last month to the highest level since a year ago when the U.S. economy's outlook started to look brighter before souring again.
The Conference Board's Consumer Confidence Index now stands at 70.8, up from a revised 61.5 in January, helped by consumers' improving assessment of the job market. Analysts had expected a reading of 63. The February reading marks the highest level since February 2011 when it was 72.0.
The index, which is closely watched because consumer confidence makes up the majority of U.S. economic activity, is still far below the 90 that indicates a healthy economy. But it's closer to levels that indicate a steady economy than not. The index has risen slowly since hitting an all-time low of 25.3 in February of 2009. And in the past 12 months, it's jumped from the high 60s to the low 40s amid continued worries about the health of the U.S. economy.
"Consumers are considerably less pessimistic about current business and labor market conditions that they were in January," said Lynn Franco, director of The Conference Board Consumer Research Center in a statement. "Despite further increases in gas prices, they are more optimistic about the short-term outlook for the economy, job prospects and their financial situation."
One gauge of the Consumer Confidence Index, which measures how shoppers feel now about the economy, rose to 45.0 from 38.8. The other gauge, which measures shoppers' assessment over the next six months, jumped to 88.0 from 76.7 in January.
According to the survey of consumers, conducted from Feb. 1 through Feb. 15, shoppers are optimistic about the job market. Those anticipating more jobs in the months ahead increased to 18.7 percent from 16.4 percent, while those anticipating fewer jobs declined to 16.9 percent from 19.1 percent.
There are reasons for optimism. The government says 243,000 jobs were added in January, pushing down the unemployment rate to 8.3 percent, the lowest in three years. Unemployment has fallen five months in a row for the first time since 1994. Job figures for February are due out next week.
Even the housing market, though still weak, is showing signs of recovery. Home values remain depressed, according to the latest snapshot from a widely followed Standard & Poor's/Case-Shiller home price index. But more people signed contracts to buy homes in January than in nearly two years, according to seasonally adjusted figures from The National Association of Realtors.
But there also are reasons for caution. The European debt crisis threatens to hurt the U.S. economy. And rising gas prices could limit spending by middle- and lower-income shoppers. The average U.S. price of a gallon of gasoline rose 18 cents to $3.69 from two weeks earlier, according to the Lundberg Survey of fuel prices released Sunday.Please feel free to comment to any of the posts on this blog. The intent is to start discussions on the subject content. If you have articles for post or comments about the blog in general please contact: Thank you Preferred Logistics----------- www.preferredlogistics.biz
Formosa Confirms US Cracker Plans
Formosa Confirms US Cracker Plans
By Malini Hariharan
One more US cracker and propane dehydrogenation (PDH) project has been confirmed. After months of speculation Formosa Plastics has announced that plans to build a 800,000 tonnes/year ethane cracker, a 600,000 tonnes/year PDH plant and a 300,000 tonnes/year low density polyethylene (LDPE) plant at Point Comfort, Texas. The $1.7bn investment is due to be completed in 2016.
Ethylene from the cracker will feed the LDPE unit and other existing downstream plants at the site. The company did not identify plans for the propylene from the PDH unit but said the additional propylene will provide 'operational flexibility'
Formosa joins Chevron Phillips Chemical, Shell Chemicals and Dow Chemicals with plans for new crackers in the US during 2016-17.
South Africa-based Sasol is undergoing a feasibility study, due in the second half of 2013, for a $3.5bn-$4.5bn cracker of 1.0-1.4m tonnes/year at Lake Charles, Louisiana. Sasol already has a 470,000 tonne/year cracker at the site.
Dow Chemicals also plans to restart its 390,000 tonne/year cracker in St. Charles, Louisiana, by the end of 2012.
The shale gas fueled ethane boom has also prompted companies to plan expansions or debottlenecks at existing sites, including Westlake Chemical, LyondellBasell and INEOS. Other companies who have said they are evaluating new crackers include Saudi Arabia's SABIC, Brazil's Braskem, as well as US-based start-up Aither Chemicals.
The expansions and new projects add up to an estimated 29% increase in US ethylene capacity by 2017. The extra ethylene will also trigger a wave of capacity addition downstream. Given the capacity additions planned elsewhere in the world, including China, it is perhaps time for some rational thinking in the US.
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Intermodal loads gain in December - Source Trucking Data
Intermodal loads gain in December
February 2, 2012
International container movements led the way with a strong month-over-month improvement. International volume improved year-over-year for the second straight month, while Domestic notched strong gains.
Data from the Association of American Railroads (AAR) indicate some slowing occurring in early 2012. There are often wild gyrations at the end of the year as holiday timing is critical. General indications are that the very high comparisons of recent weeks will not be sustained.
OutlookIntermodal loadings are forecast to continue a string of record-setting levels in 2012, especially in the domestic movements. It will continue growing over the next two years at a similar rate. After dropping 14.3% in 2009, volumes rebounded strongly in 2010 and surged 14.1%. The pace of growth slowed during 2011 but remained above trucking, rising 5.6%. We expect the growth rate to remain near this mark for the next several years, growing 5.9% in 2012 and 4.5% in 2013. We are introducing our 2014 outlook with further growth of 5.0%.
The growth rate remains above that of trucking, but the recent improvement of the truck outlook has narrowed the gap between the two modes.
AnalysisHow indicative is the strong December performance? The strength in December was real. Intermodal’s strong December performance, when coupled to the also strong truck loadings that were reported indicate that the economy has quite a bit of momentum going into 2012. Nevertheless, we should be aware of several factors that should inspire some caution. For one, cautious retailers went into the peak shopping season with very lean inventories that provided little room for any upside surprises. With the holiday season being reasonably strong in aggregate, we are probably seeing some restocking in December that will continue into January, but not indefinitely. Also, keep in mind that the Chinese New Year fell very early in 2012, which would also have the effect of pushing intermodal activity, International volume in particular, into December and early January.
AAR weekly data provides the most timely information on recent intermodal activity. Data is issued on Thursday of each week covering the prior week’s movements.
AAR figures indicate a slow-down in January. Volume has declined from the strong levels seen at the end of the year. The Chinese New Year shutdown will hurt volumes in the latter part of January. But decent growth is still underway.
Comparing the current 4-week moving average volume with the average for the same period for the years 2006 through 2008, North American comparisons have retreated in recent weeks after a brief excursion into record territory at the end of the year.
NOTE:
Intermodal is rail intermodal units originated, seasonally adjusted. It contains International and Domestic containers as well as Trailers shipped via rail. The transfer of a container or trailer to another railroad for the purpose of terminating the shipment or passing it to another railroad is only counted as one loading. Intermodal is defined as a movement of a container or trailer via more than one mode of transportation (i.e. rail and truck).
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Why the Keystone pipeline would boost pump prices
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Why the Keystone pipeline would boost pump prices
By John W. Schoen, Senior Producer
Rising gasoline prices have helped proponents of a controversial pipeline proposal press their case that the project would help ease supply bottlenecks and lower prices for consumers.
They’re half right.
The proposed pipeline would relieve a glut of crude oil backing up in the Midwest and redirect those barrels to Gulf of Mexico ports. From there they could be shipped to world markets and repriced at higher global prices.
But that likely would mean higher prices for drivers in the nation's midsection, who currently are enjoying an unusual discount stemming from a lack of pipeline capacity.
since October largely because of tightening sanctions on Iran being imposed by the U.S. and European countries over its suspected development of nuclear weapons.
"Basically, we're locked into what appears to be an end game with Iran in some form or another,” sad Dan Yergin, chairman of Cambridge Energy Research Associates. “The sanctions really start to kick in over the next several months, and the whole aim is to choke off Iran's oil revenues and that means choke off its exports."
The result is that pump prices have jumped 20 cents a gallon in the past month alone, according to data from the Energy Information Administration, and Republicans are beginning to use the energy inflation as a political talking point.
But the pain has been inflicted unevenly across the country, with consumers on the coasts paying much higher prices than those in the Midwest and Rocky Mountain regions, where supplies of oil are plentiful.
One reason crude is so plentiful in the Midwest is that new production technologies have boosted production in oilfields that were once thought to be exhausted or too costly to develop. After two decades of steady decline, total U.S. oil production began rising again in 2009, according to the EIA. Increased production from Canadian tar sands fields also has boosted Midwest supplies.
But as domestic and Canadian production have risen, pipeline bottlenecks have cropped up – especially over the 500 miles from Cushing, Okla., to Houston, the nation’s largest oil shipping port and home to about half its refining capacity.
“We lack infrastructure to catch up with the fact that there's been this big change in oil production,” said Yergin. “Eight years ago, North Dakota was not the fourth-largest oil producing state in the country. So we need new pipelines, and the lack of those pipelines -- the lack of catching up -- is reflected in the disparity (in prices).”
Until last year, the benchmark price of U.S. crude based on Cushing delivery, known as West Texas Intermediate, closely tracked the global benchmark, called Brent North Sea.
But in the past year, as rising supplies of captive Midwest supplies depressed prices, the gap widened to once-unimaginable levels. By last fall, the discount for West Texas Intermediate had widened to as much as $30 a barrel before shrinking back to about half as much.
CNBC's Eamon Javers reports on the high cost of oil and whether speculation is driving prices higher. Also, how to play oil's rise, with Dan Dicker, MercBloc president.
All of which has helped oil refiners in the Midwest keep pump prices lower than on the coasts, where refiners pay the higher Brent price, regardless of where the oil came from.
The regional difference in pump prices has been substantial. At the end of last month, the average price for a gallon of gasoline in the Rockies was 41 cents below the U.S. average -- the biggest gap since the Energy Department began tracking regional prices in 1992.
That’s where the Keystone pipeline comes in. Proponents of the pipeline have argued it will help wean the U.S. off foreign imports and lower pump prices. But rather than pushing Gulf Coast prices lower, it will let oil producers charge more for their crude.
TransCanada Corp. estimates the pipeline would boost sales of Canadian-produced crude by $2 billion to $4 billion a year, according to an assessment submitted to Canada's National Energy Board.
“The prices for those crudes in North Dakota and Canada will fetch closer to Gulf Coast prices, which are tied into the higher international market price,” said Tim Hess, an Energy Department analyst.
The reason is fairly simple. Even at maximum capacity, the Keystone line will move some 400,000 barrels per day of crude from Canada and the Midwest to global oil market. With the transportation discount removed, those barrels likely will be repriced to the higher global benchmark.
And with or without the Keystone pipeline, the “Midwest discount” that consumers now enjoy may go away later this year.
To help alleviate the Cushing bottleneck, the owner of a pipeline that now flows north from Houston plans to reverse the flow in June.
In a recent research report, analysts at Goldman Sachs predict the reversal of Enterprise Products' Seaway pipeline will help cut the spread between the price of U.S. and Brent crude to $5 a barrel in six months.
Why the Keystone pipeline would boost pump prices
By John W. Schoen, Senior Producer
Rising gasoline prices have helped proponents of a controversial pipeline proposal press their case that the project would help ease supply bottlenecks and lower prices for consumers.
They’re half right.
The proposed pipeline would relieve a glut of crude oil backing up in the Midwest and redirect those barrels to Gulf of Mexico ports. From there they could be shipped to world markets and repriced at higher global prices.
But that likely would mean higher prices for drivers in the nation's midsection, who currently are enjoying an unusual discount stemming from a lack of pipeline capacity.
since October largely because of tightening sanctions on Iran being imposed by the U.S. and European countries over its suspected development of nuclear weapons.
"Basically, we're locked into what appears to be an end game with Iran in some form or another,” sad Dan Yergin, chairman of Cambridge Energy Research Associates. “The sanctions really start to kick in over the next several months, and the whole aim is to choke off Iran's oil revenues and that means choke off its exports."
The result is that pump prices have jumped 20 cents a gallon in the past month alone, according to data from the Energy Information Administration, and Republicans are beginning to use the energy inflation as a political talking point.
But the pain has been inflicted unevenly across the country, with consumers on the coasts paying much higher prices than those in the Midwest and Rocky Mountain regions, where supplies of oil are plentiful.
One reason crude is so plentiful in the Midwest is that new production technologies have boosted production in oilfields that were once thought to be exhausted or too costly to develop. After two decades of steady decline, total U.S. oil production began rising again in 2009, according to the EIA. Increased production from Canadian tar sands fields also has boosted Midwest supplies.
But as domestic and Canadian production have risen, pipeline bottlenecks have cropped up – especially over the 500 miles from Cushing, Okla., to Houston, the nation’s largest oil shipping port and home to about half its refining capacity.
“We lack infrastructure to catch up with the fact that there's been this big change in oil production,” said Yergin. “Eight years ago, North Dakota was not the fourth-largest oil producing state in the country. So we need new pipelines, and the lack of those pipelines -- the lack of catching up -- is reflected in the disparity (in prices).”
Until last year, the benchmark price of U.S. crude based on Cushing delivery, known as West Texas Intermediate, closely tracked the global benchmark, called Brent North Sea.
But in the past year, as rising supplies of captive Midwest supplies depressed prices, the gap widened to once-unimaginable levels. By last fall, the discount for West Texas Intermediate had widened to as much as $30 a barrel before shrinking back to about half as much.
CNBC's Eamon Javers reports on the high cost of oil and whether speculation is driving prices higher. Also, how to play oil's rise, with Dan Dicker, MercBloc president.
All of which has helped oil refiners in the Midwest keep pump prices lower than on the coasts, where refiners pay the higher Brent price, regardless of where the oil came from.
The regional difference in pump prices has been substantial. At the end of last month, the average price for a gallon of gasoline in the Rockies was 41 cents below the U.S. average -- the biggest gap since the Energy Department began tracking regional prices in 1992.
That’s where the Keystone pipeline comes in. Proponents of the pipeline have argued it will help wean the U.S. off foreign imports and lower pump prices. But rather than pushing Gulf Coast prices lower, it will let oil producers charge more for their crude.
TransCanada Corp. estimates the pipeline would boost sales of Canadian-produced crude by $2 billion to $4 billion a year, according to an assessment submitted to Canada's National Energy Board.
“The prices for those crudes in North Dakota and Canada will fetch closer to Gulf Coast prices, which are tied into the higher international market price,” said Tim Hess, an Energy Department analyst.
The reason is fairly simple. Even at maximum capacity, the Keystone line will move some 400,000 barrels per day of crude from Canada and the Midwest to global oil market. With the transportation discount removed, those barrels likely will be repriced to the higher global benchmark.
And with or without the Keystone pipeline, the “Midwest discount” that consumers now enjoy may go away later this year.
To help alleviate the Cushing bottleneck, the owner of a pipeline that now flows north from Houston plans to reverse the flow in June.
In a recent research report, analysts at Goldman Sachs predict the reversal of Enterprise Products' Seaway pipeline will help cut the spread between the price of U.S. and Brent crude to $5 a barrel in six months.
Sunday, February 26, 2012
Transcore's Canadian Freight Index Starts 2012 with Uptick-Source Trucking Info
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Cummins Expands Natural-Gas Engine Line-up - Source Trucking Info
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Tracking trends with HDT's Top 20 - Source HDT
Tracking trends with HDT's Top 20
"All That's Trucking" blog by Deborah Lockridge, Editor in Chief
Each year, Heavy Duty Trucking's editors pore through the pages of the last 12 months of product announcements we've run in the magazine and click through the pages of Truckinginfo.com, in search of the most innovative, significant and useful equipment and other items to honor as our Top 20.
It's not an easy job, and we get help from a number of real-world fleet executives and maintenance chiefs to narrow it down.
In writing up the descriptions for this year's winners, I was struck by a few trends:
1. Fuel efficiency. Trailer side skirts, a transmission that claims it will be thriftier with fuel than competitors, an aerodynamic truck van body and a drivetrain that takes the concept of "gear fast/run slow" to new heights made the list this year.
2. Productivity. Truckers in some applications want to squeeze every pound they can out of the truck to get more payload, so we see lightweight drive axles and a lighter suspension for lowboys. There's a decking system to fit more freight into the oft-unused top part of a van trailer, and a new less-expensive, easy-to-install onboard scale that can help operators get the most load possible without going over the legal limit.
3. Keeping tabs on equipment. There are several telematics systems in this year's awards that send real-time data from the truck to alert fleets to problems with the vehicle, among other things. There's also reefer fuel monitoring and a versatile handheld diagnostic tool.
4. Drivers. We've got new in-cab navigation devices, EOBRs, electronic inspection reports and the latest collision-avoidance and mitigation system.
5. Longer-life equipment. Fleet managers like products that say they'll stay trouble-free longer, such as a brushless fuel pump that's supposed to last 20 times longer than a conventional pump and a steer tire guaranteed to go 30% farther. Plus, a tool to help keep wheel bearings adjusted properly will help tires last longer and keep the wheels on the truck where they belong.
We're handing out the awards this week at the Technology & Maintenance Council's annual meeting in Tampa, Fla. You can read about the winners in the February issue of HDT, or see the online listing here.
Please feel free to comment to any of the posts on this blog. The intent is to start discussions on the subject content. If you have articles for post or comments about the blog in general please contact: Thank you Preferred Logistics----------- www.preferredlogistics.biz
"All That's Trucking" blog by Deborah Lockridge, Editor in Chief
Each year, Heavy Duty Trucking's editors pore through the pages of the last 12 months of product announcements we've run in the magazine and click through the pages of Truckinginfo.com, in search of the most innovative, significant and useful equipment and other items to honor as our Top 20.
It's not an easy job, and we get help from a number of real-world fleet executives and maintenance chiefs to narrow it down.
In writing up the descriptions for this year's winners, I was struck by a few trends:
1. Fuel efficiency. Trailer side skirts, a transmission that claims it will be thriftier with fuel than competitors, an aerodynamic truck van body and a drivetrain that takes the concept of "gear fast/run slow" to new heights made the list this year.
2. Productivity. Truckers in some applications want to squeeze every pound they can out of the truck to get more payload, so we see lightweight drive axles and a lighter suspension for lowboys. There's a decking system to fit more freight into the oft-unused top part of a van trailer, and a new less-expensive, easy-to-install onboard scale that can help operators get the most load possible without going over the legal limit.
3. Keeping tabs on equipment. There are several telematics systems in this year's awards that send real-time data from the truck to alert fleets to problems with the vehicle, among other things. There's also reefer fuel monitoring and a versatile handheld diagnostic tool.
4. Drivers. We've got new in-cab navigation devices, EOBRs, electronic inspection reports and the latest collision-avoidance and mitigation system.
5. Longer-life equipment. Fleet managers like products that say they'll stay trouble-free longer, such as a brushless fuel pump that's supposed to last 20 times longer than a conventional pump and a steer tire guaranteed to go 30% farther. Plus, a tool to help keep wheel bearings adjusted properly will help tires last longer and keep the wheels on the truck where they belong.
We're handing out the awards this week at the Technology & Maintenance Council's annual meeting in Tampa, Fla. You can read about the winners in the February issue of HDT, or see the online listing here.
Please feel free to comment to any of the posts on this blog. The intent is to start discussions on the subject content. If you have articles for post or comments about the blog in general please contact: Thank you Preferred Logistics----------- www.preferredlogistics.biz
TransCore's January North American Freight Index Up 5%
TransCore's January North American Freight Index Up 5%
TransCore's North American Freight Index was up 5% in January compared to the same month in 2011. This is the third consecutive year of increases in same-month spot market freight volume and marks a record high for the month of January.
Compared to December 2011, spot market freight volume slipped 8% in January. It is typical for spot market freight volume to decline seasonally in January, but this year's dip was shallower than the 10-year average of 14%.
Truckload freight rates increased year-over-year on the spot market for vans and flatbeds, while declining slightly for reefer vans. Compared to December, however, rates slipped seasonally for all three equipment types.
For dry vans, the predominant equipment type, rates rose 7.3% compared to January 2011, and slipped 1.5% compared to December. Flatbed rates increased 4.5% compared to the same month in 2011, but declined 2.4% in the most recent 31 days. Reefer van rates declined 0.7% year-over-year and 6.5% month-over-month. These rates do not include fuel surcharges.
For March, the best combination of relatively high freight volume and a favorable ratio of outbound loads are expected to emerge in Illinois, Georgia, Indiana, New York and Alabama.
Please feel free to comment to any of the posts on this blog. The intent is to start discussions on the subject content. If you have articles for post or comments about the blog in general please contact: Thank you Preferred Logistics----------- www.preferredlogistics.biz
TransCore's North American Freight Index was up 5% in January compared to the same month in 2011. This is the third consecutive year of increases in same-month spot market freight volume and marks a record high for the month of January.
Compared to December 2011, spot market freight volume slipped 8% in January. It is typical for spot market freight volume to decline seasonally in January, but this year's dip was shallower than the 10-year average of 14%.
Truckload freight rates increased year-over-year on the spot market for vans and flatbeds, while declining slightly for reefer vans. Compared to December, however, rates slipped seasonally for all three equipment types.
For dry vans, the predominant equipment type, rates rose 7.3% compared to January 2011, and slipped 1.5% compared to December. Flatbed rates increased 4.5% compared to the same month in 2011, but declined 2.4% in the most recent 31 days. Reefer van rates declined 0.7% year-over-year and 6.5% month-over-month. These rates do not include fuel surcharges.
For March, the best combination of relatively high freight volume and a favorable ratio of outbound loads are expected to emerge in Illinois, Georgia, Indiana, New York and Alabama.
Please feel free to comment to any of the posts on this blog. The intent is to start discussions on the subject content. If you have articles for post or comments about the blog in general please contact: Thank you Preferred Logistics----------- www.preferredlogistics.biz
Results of Largest Ever Fuel Economy Benchmarking Study Released-Source HDT
Results of Largest Ever Fuel Economy Benchmarking Study Released
By Jim Park, Equipment Editor
The North American Council for Freight Efficiency has released the results of its first fleet fuel efficiency study, representing 75,000 OTR tractors and 130,000 53-ft trailers from eight fleets. The study highlights successful applications of products and practices that provide fuel savings during real-world usage. It analyzed the adoption of 60 known technologies and practices available to fleets over the past eight years.
Fleets participating in the study were C.R. England, Challenger Motor Freight, Con-way Truckload, Frito Lay, Gordon Trucking, Ryder, Schneider National and Werner Enterprises. To illustrate the scope of the study, in 2010, participating fleets ran a combined 3.1 billion miles and consumed 496 million gallons of fuel.
The goal of the study was to illustrate technology implementation experiences from uptake to full implementation -- and in some cases rejection, and to identify best practices shared by these fleets in terms of how they manage their fuel expenses and take advantage of opportunities to reduce them.
The study also offers insights for others considering the adoption of these products (widebase single tires, trailer aero devices, anti-idle hardware, etc.) and practices (driver training, routing software, etc.) and gives feedback to manufacturers on customer requirements and expectations for future products. The report found that these fleets saved on average $4,400 per year or $22,000 in fuel expenses over five years.
"The economic value that the NACFE Fuel Efficiency study represents to us is significant as it provides specific ideas for execution as we continue to lower our fuel costs," says Mike O'Connell, national senior director for fleet capability at Frito Lay, and NACFE board chair. "The environmental opportunities are equally exciting, and since our fleet is known for its environmental leadership, we look forward to receiving both economic and environmental benefits from this report."
Fuel Economy Guinea Pigs
Fleets that took part in the study were all early adopters of various fuel savings practices and technologies, and they continue to profit today from those experiences. Some early adopters of certain technologies later rejected them as either too costly in terms of acquisition cost versus percentage of fuel saved, too expensive to maintain, or simply ineffective. Some later reintroduced previously abandoned technologies as subsequent generations of the product improved and became more cost effective.
While specific products or technologies were not identified during the press conference (savings accrued by individual fleets were not quantified for the study, just the adoption and retention rates), the study reveals very wide acceptance and retention of some technologies, while others were widely adopted by some fleets, but not others. Further, it was shown that acceptance and ramp up rates varied across participating fleets, indicating that while some found certain technologies useful, others did not.
"We tried to drill down to the actual "value" of each technology or practice as experienced by individual fleets, but found that to be too difficult within the structure of the study," said O'Connell. "Instead, we chose to gauge the effectiveness of each by the fleets ramp-up and retention rates. That a fleet kept a certain technology in service was a signal that the fleet saw some value there."
Among the study's findings were:
~ When the study began in 2003, about 30 percent of the available technologies were adopted. Current adoption rates are significantly higher.
~ Between the time fuel peaked in 2008 and declined in 2009, fleets continued to invest in fuel saving technology and even increased their adoption of various technologies after fuel prices subsided.
~ Average fleet fuel economy showed a 2 to 3 percent decline during the period following the first round of EPA-mandated emissions reduction regulations, but in comparisons between adopters and non-adopters of various technologies between 2007 and 2010, fuel economy showed improvement in fleets with greater acceptance of fuel saving technology than those without.
As a stand-alone tool, the benchmarking study would be valuable to fleets lacking the resources of the very large participating fleets.
"I can tell you, fleet that don't have the resources of a Werner or a Frito Lay could quickly apply some of the practices and technologies illustrated in the study and feel much more confident that they will work in their application," says Steve Phillips, senior vice president of operations at Werner Enterprises and NACFE board member. "There are just so many products on the market today. Werner looked closely at the comparisons from the seven other peer fleets, and when we saw other fleets using technology we dropped, it made us ask a lot of questions about why some products worked here and not there, and vice versa. This study is a great way to take advantage of a lot of accumulated expertise."
NACFE Academy
Dovetailing with the release of the benchmarking study report, NACFE will offer an online learning environment called the NACFE Academy, where industry personnel can learn about technologies and practices that are improving the efficiency of North American goods movement.
The Academy will be the Council's virtual source for successful applications of new products and practices that provide fuel savings during real-world usage. Findings will include technology benefits, their specific applicability in real-world duty cycles, adverse consequences in use, and other important data.
"Through our unbiased approach to aggregating information on fuel efficient technologies, we are adding direct value to the fleets' bottom lines and helping suppliers communicate the value of their offerings in the marketplace," says NACFE Executive Director, Mike Roeth. "The NACFE Academy offers a creative, e-learning place for this information sharing."
The initial report from the NACFE Academy, a 2011 Fleet Fuel Study, "Real Fleets. Real Experience" will be available as of February 20th as a document for download, as an online course and in a question-and-answer session with the study team in a small group webinar.
"The study can be purchased as a package that includes the report for download, an online course that will help bring the findings to life, data sets on adoption and a question-and-answer session with the Study team in a small group webinar," Roeth says.
It can found on the NACFE Academy website at http://academy.nacfe.org/
Who is NACFE?
The North American Council for Freight Efficiency is a non-profit organization dedicated to doubling the freight efficiency of transportation industry by improving the quality of information available to members and by highlighting the success of high efficiency technologies.
Formed by Industry, NACFE's mission is to:
- Help Define freight efficiency metrics
- Build and maintain easy-to-access to information
- Evaluate improvements to configurations and maintenance
- Develop new methods and gather information
- Rate technologies or methods
- Educate drivers and fleets
- Predict efficiency gains of combinations
Please feel free to comment to any of the posts on this blog. The intent is to start discussions on the subject content. If you have articles for post or comments about the blog in general please contact: Thank you Preferred Logistics----------- www.preferredlogistics.biz
By Jim Park, Equipment Editor
The North American Council for Freight Efficiency has released the results of its first fleet fuel efficiency study, representing 75,000 OTR tractors and 130,000 53-ft trailers from eight fleets. The study highlights successful applications of products and practices that provide fuel savings during real-world usage. It analyzed the adoption of 60 known technologies and practices available to fleets over the past eight years.
Fleets participating in the study were C.R. England, Challenger Motor Freight, Con-way Truckload, Frito Lay, Gordon Trucking, Ryder, Schneider National and Werner Enterprises. To illustrate the scope of the study, in 2010, participating fleets ran a combined 3.1 billion miles and consumed 496 million gallons of fuel.
The goal of the study was to illustrate technology implementation experiences from uptake to full implementation -- and in some cases rejection, and to identify best practices shared by these fleets in terms of how they manage their fuel expenses and take advantage of opportunities to reduce them.
The study also offers insights for others considering the adoption of these products (widebase single tires, trailer aero devices, anti-idle hardware, etc.) and practices (driver training, routing software, etc.) and gives feedback to manufacturers on customer requirements and expectations for future products. The report found that these fleets saved on average $4,400 per year or $22,000 in fuel expenses over five years.
"The economic value that the NACFE Fuel Efficiency study represents to us is significant as it provides specific ideas for execution as we continue to lower our fuel costs," says Mike O'Connell, national senior director for fleet capability at Frito Lay, and NACFE board chair. "The environmental opportunities are equally exciting, and since our fleet is known for its environmental leadership, we look forward to receiving both economic and environmental benefits from this report."
Fuel Economy Guinea Pigs
Fleets that took part in the study were all early adopters of various fuel savings practices and technologies, and they continue to profit today from those experiences. Some early adopters of certain technologies later rejected them as either too costly in terms of acquisition cost versus percentage of fuel saved, too expensive to maintain, or simply ineffective. Some later reintroduced previously abandoned technologies as subsequent generations of the product improved and became more cost effective.
While specific products or technologies were not identified during the press conference (savings accrued by individual fleets were not quantified for the study, just the adoption and retention rates), the study reveals very wide acceptance and retention of some technologies, while others were widely adopted by some fleets, but not others. Further, it was shown that acceptance and ramp up rates varied across participating fleets, indicating that while some found certain technologies useful, others did not.
"We tried to drill down to the actual "value" of each technology or practice as experienced by individual fleets, but found that to be too difficult within the structure of the study," said O'Connell. "Instead, we chose to gauge the effectiveness of each by the fleets ramp-up and retention rates. That a fleet kept a certain technology in service was a signal that the fleet saw some value there."
Among the study's findings were:
~ When the study began in 2003, about 30 percent of the available technologies were adopted. Current adoption rates are significantly higher.
~ Between the time fuel peaked in 2008 and declined in 2009, fleets continued to invest in fuel saving technology and even increased their adoption of various technologies after fuel prices subsided.
~ Average fleet fuel economy showed a 2 to 3 percent decline during the period following the first round of EPA-mandated emissions reduction regulations, but in comparisons between adopters and non-adopters of various technologies between 2007 and 2010, fuel economy showed improvement in fleets with greater acceptance of fuel saving technology than those without.
As a stand-alone tool, the benchmarking study would be valuable to fleets lacking the resources of the very large participating fleets.
"I can tell you, fleet that don't have the resources of a Werner or a Frito Lay could quickly apply some of the practices and technologies illustrated in the study and feel much more confident that they will work in their application," says Steve Phillips, senior vice president of operations at Werner Enterprises and NACFE board member. "There are just so many products on the market today. Werner looked closely at the comparisons from the seven other peer fleets, and when we saw other fleets using technology we dropped, it made us ask a lot of questions about why some products worked here and not there, and vice versa. This study is a great way to take advantage of a lot of accumulated expertise."
NACFE Academy
Dovetailing with the release of the benchmarking study report, NACFE will offer an online learning environment called the NACFE Academy, where industry personnel can learn about technologies and practices that are improving the efficiency of North American goods movement.
The Academy will be the Council's virtual source for successful applications of new products and practices that provide fuel savings during real-world usage. Findings will include technology benefits, their specific applicability in real-world duty cycles, adverse consequences in use, and other important data.
"Through our unbiased approach to aggregating information on fuel efficient technologies, we are adding direct value to the fleets' bottom lines and helping suppliers communicate the value of their offerings in the marketplace," says NACFE Executive Director, Mike Roeth. "The NACFE Academy offers a creative, e-learning place for this information sharing."
The initial report from the NACFE Academy, a 2011 Fleet Fuel Study, "Real Fleets. Real Experience" will be available as of February 20th as a document for download, as an online course and in a question-and-answer session with the study team in a small group webinar.
"The study can be purchased as a package that includes the report for download, an online course that will help bring the findings to life, data sets on adoption and a question-and-answer session with the Study team in a small group webinar," Roeth says.
It can found on the NACFE Academy website at http://academy.nacfe.org/
Who is NACFE?
The North American Council for Freight Efficiency is a non-profit organization dedicated to doubling the freight efficiency of transportation industry by improving the quality of information available to members and by highlighting the success of high efficiency technologies.
Formed by Industry, NACFE's mission is to:
- Help Define freight efficiency metrics
- Build and maintain easy-to-access to information
- Evaluate improvements to configurations and maintenance
- Develop new methods and gather information
- Rate technologies or methods
- Educate drivers and fleets
- Predict efficiency gains of combinations
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I-64 Sherman Minton Bridge Reopens to Traffic
I-64 Sherman Minton Bridge Reopens to Traffic
The I-64 Sherman Minton Bridge over the Ohio River between Southern Indiana and Louisville has reopened to traffic, says the Indiana Department of Transportation.
The bridge was closed Sept. 9 after a significant crack was discovered in a load-carrying element of the bridge. Inspection, testing and analysis recommended reinforcing the bridge with steel plates, which are anticipated to extend the service life of the bridge at least 20 years.
Although the bridge is reopened, construction is not complete. Subcontractors need to finish painting the new steel plates and remove working platforms attached to the bridge.
During off-peak hours, one lane of eastbound I-64 will be temporarily closed on the lower deck of the bridge entering Louisville from New Albany. All lanes will be open each weekday morning for peak traffic between 6 a.m. and 9 a.m. Temperature-sensitive painting operations will occur during 30 work days as weather permits this winter and spring.
Incentives, favorable weather conditions and efficient work by contractors reduced repairs from an estimated six months to less than four months. It is anticipated that Hall Contracting of Louisville, Ken., will receive $1.3 million in incentives for reopening the bridge to traffic early.
"Thanks to the workers, contractors, and the people of INDOT, the Sherman Minton Bridge is back in operation, 12 days ahead of the target date," says Indiana Gov. Mitch Daniels. "We've never been happier to pay a contractor incentive dollars for an ahead-of-schedule performance. And thanks also to all the citizens who endured so much inconvenience in order to make 100% sure that no one was ever put at risk."
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The I-64 Sherman Minton Bridge over the Ohio River between Southern Indiana and Louisville has reopened to traffic, says the Indiana Department of Transportation.
The bridge was closed Sept. 9 after a significant crack was discovered in a load-carrying element of the bridge. Inspection, testing and analysis recommended reinforcing the bridge with steel plates, which are anticipated to extend the service life of the bridge at least 20 years.
Although the bridge is reopened, construction is not complete. Subcontractors need to finish painting the new steel plates and remove working platforms attached to the bridge.
During off-peak hours, one lane of eastbound I-64 will be temporarily closed on the lower deck of the bridge entering Louisville from New Albany. All lanes will be open each weekday morning for peak traffic between 6 a.m. and 9 a.m. Temperature-sensitive painting operations will occur during 30 work days as weather permits this winter and spring.
Incentives, favorable weather conditions and efficient work by contractors reduced repairs from an estimated six months to less than four months. It is anticipated that Hall Contracting of Louisville, Ken., will receive $1.3 million in incentives for reopening the bridge to traffic early.
"Thanks to the workers, contractors, and the people of INDOT, the Sherman Minton Bridge is back in operation, 12 days ahead of the target date," says Indiana Gov. Mitch Daniels. "We've never been happier to pay a contractor incentive dollars for an ahead-of-schedule performance. And thanks also to all the citizens who endured so much inconvenience in order to make 100% sure that no one was ever put at risk."
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Saturday, February 25, 2012
Universal Lubricants Offers Product Line for CNG Fleets - Source HDT
Universal Lubricants Offers Product Line for CNG Fleets
Universal Lubricants launched an engine oil line designed for compressed natural gas vehicles.
Fleet operators can choose from Orion, a traditional lubricant produced from virgin base oil, or Eco Ultra CNG, which consists of up to 83% re-refined material. Both Orion and Eco Ultra CNG are low ash and are included in the company's proprietary "closed-loop" system.
The product line has been formulated to provide deposit, wear, oil oxidation and oil nitration control in the typically turbocharged engines fueled by natural gas. Low in phosphorous, the Eco Ultra line is available in SAE 30, 40 and 15W40.
"It's sometimes easy to forget that there's still a petroleum-based product in CNG engines, so lubricants often slip from sustainability and budget conversations," says John Wesley, CEO of Universal Lubricants. "But engine oil represents a critical piece of the puzzle for fleet operators. Both Orion and Eco Ultra offer notable economic advantages and the security of a reliable vendor that -- with our closed loop refining system -- not only supplies the product, but collects it, too."
Each year, the U.S. produces approximately 1.3 billion gallons of used engine oils, only 10% of which is re-refined. The rest is either improperly disposed of (damaging the environment) or burned as an industrial fuel, wasting limited petroleum reserves and perpetuating the need to import foreign oil, according to the company.
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Universal Lubricants launched an engine oil line designed for compressed natural gas vehicles.
Fleet operators can choose from Orion, a traditional lubricant produced from virgin base oil, or Eco Ultra CNG, which consists of up to 83% re-refined material. Both Orion and Eco Ultra CNG are low ash and are included in the company's proprietary "closed-loop" system.
The product line has been formulated to provide deposit, wear, oil oxidation and oil nitration control in the typically turbocharged engines fueled by natural gas. Low in phosphorous, the Eco Ultra line is available in SAE 30, 40 and 15W40.
"It's sometimes easy to forget that there's still a petroleum-based product in CNG engines, so lubricants often slip from sustainability and budget conversations," says John Wesley, CEO of Universal Lubricants. "But engine oil represents a critical piece of the puzzle for fleet operators. Both Orion and Eco Ultra offer notable economic advantages and the security of a reliable vendor that -- with our closed loop refining system -- not only supplies the product, but collects it, too."
Each year, the U.S. produces approximately 1.3 billion gallons of used engine oils, only 10% of which is re-refined. The rest is either improperly disposed of (damaging the environment) or burned as an industrial fuel, wasting limited petroleum reserves and perpetuating the need to import foreign oil, according to the company.
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UPS Looking to Buy European Rival - Source Trucking Today
UPS Looking to Buy European Rival
UPS made an unsolicited bid to buy Dutch package shipper TNT Express NV. TNT rejected the bid, worth about $6.4 billion, but the companies reportedly are still talking about a possible deal.
UPS said Friday that "discussions between the parties concerning this proposal are ongoing, although there is currently no certainty that any agreement will be reached." Such a deal would be the largest in UPS history.
The Wall Street Journal reports that there has been regular speculation about interest in TNT by UPS and FedEx, but this is the first time either has confirmed talks. UPS and FedEx, it notes, look at the company as a way to round out investments in Asia with a larger European presence.
As Reuters notes, TNT has suffered as the global economic slowdown led customers to look for cheaper shipping alternatives to air transport.
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UPS made an unsolicited bid to buy Dutch package shipper TNT Express NV. TNT rejected the bid, worth about $6.4 billion, but the companies reportedly are still talking about a possible deal.
UPS said Friday that "discussions between the parties concerning this proposal are ongoing, although there is currently no certainty that any agreement will be reached." Such a deal would be the largest in UPS history.
The Wall Street Journal reports that there has been regular speculation about interest in TNT by UPS and FedEx, but this is the first time either has confirmed talks. UPS and FedEx, it notes, look at the company as a way to round out investments in Asia with a larger European presence.
As Reuters notes, TNT has suffered as the global economic slowdown led customers to look for cheaper shipping alternatives to air transport.
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$38 Grand? That Oughtta Make Drivers Flock to Your Shop - Source Trucking Info
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The New Hours Rule: Did FMCSA Find A Sweet Spot? - Source HDT
The New Hours Rule: Did FMCSA Find A Sweet Spot?
By Oliver B. Patton, Washington Editor
Almost no one is happy about the new hours of service rule. Maybe that means the Federal Motor Carrier Safety Administration made the moves that will lead to stability, at long last.
Or maybe not.
At press time, the key parties were still huddled, deciding whether to take their issues to court.
Advocacy groups and the Teamsters union are considering renewing their suit against the agency because the new rule preserves the 11-hour daily driving limit.
American Trucking Associations is expected by the end of January to decide if it will sue over the new 30-minute break requirement and restrictions on the 34-hour restart.
But from ATA's perspective, the new rule is not nearly as bad as it would have been if the agency had followed through on its inclination to cut the 11-hour limit to 10 hours. And the safety advocates think the agency found a reasonable compromise on cumulative fatigue when it limited the 34-hour restart to once a week with two sleep periods from 1 a.m. to 5 a.m., and added the 30-minute rest break after eight hours of driving.
So maybe it's possible that all would be willing to live with the rule's respective shortcomings for the sake of predictable hours of service and the chance to focus on regulations that are likely to produce greater gains in safety.
That may be too much to wish for, given the mix of science, politics and business that drives the issue.
Lost productivity
The rule does not fall with equal weight across all sectors of the industry. Long-haul, irregular route carriers are the most affected. According to transportation analyst John Larkin of Stifel Nicolaus, the new restart rule could produce a 17% reduction in theoretical work time per week for these carriers.
"If you're trying to run hard in a traditional irregular route market, from 700-mile to 1,200-mile length of haul, the new rule really throws a crimp into your productivity," he says.
Other types of carriers find the changes simply a problem to be solved.
Expedited carrier Bolt Express, for example, sees the new 30-minute break requirement as a little burdensome, requiring changes in systems and operations to accommodate time-critical plant deliveries.
"It will cause a little bit of an issue because there's another 30 minutes in this that we didn't have before," says CEO Ben Bauman.
And as far as dedicated carrier Cardinal Logistics is concerned, the new rule is, in a word, terrific.
"Any law that further professionalizes our industry and gets the right people driving on the highway and gets the wrong people off of the highways, we're a massive fan of," says chairman Vin McLoughlin.
That said, Cardinal, with its 250-mile range, is not particularly affected by the new restart provision. And the half-hour break is a minor inconvenience, McLoughlin says. "We think it does a good thing for the driver."
Cardinal President and COO Jerry Bowman added another perspective: The rule gives certain large, tightly managed carriers an edge in the market. "Frankly, anything that makes the regulatory environment cleaner and causes people to operate much more safely, we're in favor of because we think that's a competitive advantage for us," he says.
To the extent that the new rule puts pressure on driver availability, that's a good thing for Cardinal. "From our standpoint, our jobs are more desirable than other (carriers') jobs. They're well-paying and have a dependable schedule."
Bowman has a dim view of trucking interests taking FMCSA to court over the rule.
"I think the industry would be idiots to go after this," he says. "I don't know what basis they would have for attacking it, and from a (public relations) perspective, the industry doesn't need that kind of PR over what's basically a non-issue, as we see it."
For Maverick Transportation, which offers an array of truckload services, the rule is going to require significant adjustments, says Dean Newell, vice president of safety and driver training.
During the past six months, for instance, about 15% of Maverick drivers' restarts would not have complied with the new rule.
The half-hour break will require work, too. Maverick's review of more than 186,000 driver logs showed that about 30% would be out of compliance with that requirement because drivers drove for more than eight hours straight. They may have stopped for load checks or smaller breaks, but they did not get the full 30 minutes, he says.
What is required to make the adjustments? "That's the hard question to answer," Newell says. "We don't know yet. We still have plenty of work to do to figure all that out."
Maverick is like most companies in this respect: It's going to take a while to figure it out.
John Conley, president of the National Tank Truck Carriers, says the members of his group still are studying the rule.
Many tank carriers that deliver gasoline work at night, so they are concerned about the impact of the restart provision, he says.
One tanker reported that its drivers could lose a half of a shift per week as a consequence of limiting the restart. A driver who usually works a sixth day and usually starts his shift before 5 a.m. will have to postpone his start, which will delay the start of the night shift. That, in turn, will force more trucks onto the road during the day.
This observation echoes the message that many carriers sent to FMCSA during the rulemaking process: The rule will reduce productivity and driver income, and increase highway congestion.
Getting in FMCSA's head
The agency's response in its analysis of the more than 20,000 comments on the proposed rule illustrates a gap between the perceptions of the regulator and the regulated.
To the issue raised by this tank carrier, for instance, the agency had a blunt answer: "A driver who is regularly working the longest hours will lose hours under the final rule: That is the intention of the rule changes."
Most drivers will not be affected, though, the agency says. Drivers still will be able to average 70 hours a week.
"A driver on the 70-hour/8-day schedule working maximum hours under the 2003 rule would lose one shift every two weeks," the agency says. "Few drivers work that hard, and they don't do so consistently. Income of drivers averaging less than 60 hours a week will not be affected."
On another point of contention, the agency challenged cost estimates for the proposed rule submitted by publicly traded carriers. The costs these carriers cited came to a small fraction of 1% of the carriers' revenues, the agency says.
"None of the commenters provided an explanation of how a reduction in weekly driving hours of about 5% for those working the longest hours could produce revenue declines of the magnitude claimed."
FMCSA also challenged ATA's assertion that the agency had overstated the number of drivers who work long hours. ATA's own data indicates an average work week of less than 44 hours, the agency says.
"The industry, in effect, made two contradictory arguments - that the long hours allowed by the current rule are rarely used so that fatigue is not a problem and rule changes are not necessary, and that any reduction in those hours will have serious economic impacts. Both arguments cannot be true."
The agency also went after industry claims of lost productivity under the rule by citing inefficiencies in the supply chain.
It says carriers and drivers claim they spend from 10% to 50% of their time each week waiting to be loaded and unloaded. If this is correct, the agency says, it is an inefficiency that absorbs more driver on-duty time than all of the changes in the final rule.
The "relatively small" impact of the rule could be offset if shippers and receivers set and kept appointment times for loading and unloading, the agency says.
"FMCSA has no obligation to allow drivers to work excessively long hours a week to compensate for delays in the supply chain."
The agency added that it intends to examine the impact of detention time on hours of service violations.
The agency acknowledged that, as the industry contends, the new rule may require some carriers to take on more drivers, and that new drivers are riskier than experienced drivers.
However, the number of new drivers who will be needed as a consequence of the rule will be relatively small compared to the number needed as a matter of course in the industry, the agency says.
"The real issue for the industry is that many of the new drivers leave the industry within a few months because of long hours, the weeks away from home, and low pay."
The agency was not impressed by the industry's argument that the restart provision will lead to increased rush hour traffic. It says that most drivers who routinely work at night do not work enough hours to require a restart.
But the agency was sensitive to carriers' concerns about the two-night restart taking away operational flexibility. The issue, carriers say, is that drivers will be reluctant to take a restart when they are on the road, and that would lead to more empty miles as carriers reschedule to get drivers home for their break.
The agency's response was to ease the terms of the restart. It had proposed that the successive two-night breaks be from midnight to 6 a.m., but changed that to 1 a.m. to 5 a.m.
"FMCSA acknowledges that this revised restart provision will slightly reduce the flexibility available under the previous rule, but recent research has suggested that two consecutive nights off duty would be necessary to ensure that the drivers who take a restart are adequately rested," the agency says.
The safety question
There would be less resistance to this rule if it were clear to individual carriers that the additional time it gives the driver will improve safety.
Dean Newell of Maverick says his company just came out of its safest year ever. Its reportable accident rate for 2011 was 0.31, DOT reportable accidents per million miles and its preventable accident rate was 0.1.
"So I don't see their logic in it," he says. "In our fleet I don't think that it will make that significant a difference."
Mark Rourke, president of Truckload at Schneider National, says the current rule should have been kept as is.
"If there are clear safety benefits, it's worth the time, energy and cost to make the change," he says in a statement. "However, it's unclear whether these rules will yield any safety improvement."
The industry went into the rulemaking arguing that because fatalities have been dropping since the 2003, the current rule is safe and does not need to be changed.
The agency disagrees. It says that crash rates have been falling for four decades due to a complex mix of factors ranging from highway and vehicle design to increased use of seat belts and carriers laying off riskier drivers during the recession.
Further, the agency says, while the industry assumes that fatigue-related crashes declined as crashes as a whole declined, the data shows that the drop in fatigue-related crashes has not been as consistent as the drop in crashes.
The industry questioned the agency's assumption that drivers do not get enough sleep and says the old restart provision provides enough time for rest. The agency replied that research shows that most drivers do not get enough sleep, and that sleep taken during the day is not as restorative as sleep taken at night.
Drivers who work the long daily and weekly hours that trigger a restart may build up a sleep debt that cannot be paid up during the current 34-hour restart, the agency says.
"These drivers are more likely to be chronically fatigued, with the performance deficits associated with fatigue, and are subject to a range of health effects linked to sleep loss."
Schneider's Rourke raised a concern that many close observers share: The hours of service rule is important, but it is not the main game for safety improvement.
"We do not believe (the rule) addresses the real issue surrounding professional driver safety: compliance under the existing rules," he says.
The industry needs a universal electronic onboard recorder mandate (now being drafted) to take compliance issues off the table and give regulators the information they need to assess the hours of service rule, he says.
"While this work is being done, we believe dollars would be better spent on other safety technologies and fatigue management and distracted driving management programs that truly benefit and improve safety," Rourke says.
Another view
Noel Perry, an economist and consultant with FTR Associates, believes the new rule will lead to a 2% to 3% reduction in overall industry productivity.
It will take about 80,000 to 90,000 new full-time drivers to make up the difference, he says. That's about half the number required after the 2003 rule kicked in, and about half of what it would have been had the agency stuck with the rule it initially proposed.
This is not necessarily bad news for carriers, Perry says. "There's a belief that fleets won't be able to pass on cost increases, which is rubbish."
He cited carriers' experience with the 2003 rule change, which gave them a great story for rate increases, more than enough to cover any productivity effects. He acknowledged that there is a lag between when the carrier incurs the cost and when it can recoup it, which threatens fleets that are less well-managed.
"On the other hand, well-managed fleets have shown the ability to get the word out and use this as cover to get rate increases that they needed anyway, for other reasons."
He says that in a sense the agency is doing carriers a favor: "It is providing them with a good explanation that they can give their customers when they start asking for the higher rates it will take to get the driver home."
Getting drivers home is expensive. It costs $35,000 a year to make it happen every week, compared to every other week, he says.
Perry thinks the additional time the rule gives drivers will improve safety - "you'd be a fool to describe the long-haul truck driver's lifestyle as healthy" - and that in the long run this will lower trucking costs.
"Right now, some of those costs are not being borne by the consumer. They're being borne by individuals, families and the health care system. What this says is that in order to lower costs for the whole system, we're going to charge the consumer the full cost of operating safely."
Enforcement's perspective
"FMCSA did a really good job justifying what they did and why they did it," says Steve Keppler, president of the Commercial Vehicle Safety Alliance, which represents the interests of the enforcement community. "I give them credit for really doing a very thorough job."
Still, CVSA has some concerns that it may raise in a petition for reconsideration, he says.
While the agency had reasonable scientific justification for the changes it made, the enforcement community wants the rule to require drivers to keep supporting documents for the restart, rest break and new definition of on-duty time, he says.
"Without some way for us to verify (driver) activities, it will be much more of a challenge to enforce those particular provisions," he says.
The alliance also wants the agency to reconsider its decision to change the definition of on-duty time starting Feb. 27.
"To try and get the entire country trained on that change in 60 days is really not realistic," he says. "States can't ramp up the training on a dime. We hope that FMCSA will reconsider that date and push it back to July 2013 (when the rest of the rule goes into effect)."
Further, the new restart provision creates another problem for enforcement officers. Under the rule, drivers must keep their log for the current day and the previous seven days. However, seven days' history is not enough to cover a driver's schedule if he took a restart during that period, Keppler says.
The requirement probably should be 14 days, as it is in Canada, he says.
What's next?
As the main antagonists consider whether to sue, there is a third strand in the narrative that says the agency did a pretty good job, all things considered.
"Let's give the DOT a little credit," says John Conley of the tank carrier association. "They knew they would take some heat no matter what they did. Safety would not have been hampered by not making any changes, but the agency could not have come back with no changes or the game would have continued."
He continued: "Politically it would have been easy for the agency to simply publish what they proposed and say, go ahead and sue. They did not take the easy way out."
Conley was echoing the view of many in the industry that this is essentially a political decision, rather than one based purely on science.
In this view, the serial lawsuits against the rule by Advocates of Highway and Auto Safety and the Teamsters union have less to do with safety than with the control struggle between labor and management. And FMCSA is reacting to political pressure from a labor-friendly Obama administration.
The agency clearly disagrees.
"The goal of this rulemaking is to reduce excessively long work hours that increase both the risk of fatigue-related crashes and long-term health problems for drivers," it says.
And the agency's reasoning on the details of the rule is thick with references to research on fatigue - although the industry takes issue with the quality and relevance of some of that material.
The way John Larkin and other observers see it, the agency may have struck a respectable compromise.
"The highway safety lobbyists almost don't care what it costs (but) FMCSA has to measure costs," he says.
Larkin, an analyst by profession, says there is a "fudge factor" in the type of economic analysis used to judge a rule such as hours of service. "You can almost justify whatever you want to justify," he says.
By not cutting the 11-hour limit back to 10 hours, the agency may have engineered a compromise "that has irritated all of the stakeholders a little bit but no one a great amount," Larkin says.
"Maybe (FMCSA Administrator) Anne Ferro walked along the fence pretty well on this one."
The 18-month phase-in is a big help, he says. It will give the industry plenty of time to adjust.
Noel Perry echoed Larkin: "I think it's pretty clear that the FMCSA has neutralized the playing field," he says. The 18-month phase in is a big help, he says. It will give the industry plenty of time to adjust.
Maybe so. But fair warning: There will be more to come.
While the industry is deeply relieved that the agency did not cut the 11-hour limit to 10 hours, the reprieve may be temporary.
The agency kept the 11-hour limit because its cost-benefit analysis showed that 11 hours offered a greater net benefit than either 10 hours or nine hours.
Although research shows that crash risk increases with work hours, it does not show a statistically significant distinction between the risk associated with any two adjacent hours of work, the agency says.
But FMCSA is committed to conducting a comprehensive analysis of risk, hour-by-hour, and it does not consider the case for the 10-hour limit closed.
"Future research may provide a basis for reconsidering the daily driving limit," the agency says.
From the February 2012 issue of HDT.
Please feel free to comment to any of the posts on this blog. The intent is to start discussions on the subject content. If you have articles for post or comments about the blog in general please contact: Thank you Preferred Logistics----------- www.preferredlogistics.biz
By Oliver B. Patton, Washington Editor
Almost no one is happy about the new hours of service rule. Maybe that means the Federal Motor Carrier Safety Administration made the moves that will lead to stability, at long last.
Or maybe not.
At press time, the key parties were still huddled, deciding whether to take their issues to court.
Advocacy groups and the Teamsters union are considering renewing their suit against the agency because the new rule preserves the 11-hour daily driving limit.
American Trucking Associations is expected by the end of January to decide if it will sue over the new 30-minute break requirement and restrictions on the 34-hour restart.
But from ATA's perspective, the new rule is not nearly as bad as it would have been if the agency had followed through on its inclination to cut the 11-hour limit to 10 hours. And the safety advocates think the agency found a reasonable compromise on cumulative fatigue when it limited the 34-hour restart to once a week with two sleep periods from 1 a.m. to 5 a.m., and added the 30-minute rest break after eight hours of driving.
So maybe it's possible that all would be willing to live with the rule's respective shortcomings for the sake of predictable hours of service and the chance to focus on regulations that are likely to produce greater gains in safety.
That may be too much to wish for, given the mix of science, politics and business that drives the issue.
Lost productivity
The rule does not fall with equal weight across all sectors of the industry. Long-haul, irregular route carriers are the most affected. According to transportation analyst John Larkin of Stifel Nicolaus, the new restart rule could produce a 17% reduction in theoretical work time per week for these carriers.
"If you're trying to run hard in a traditional irregular route market, from 700-mile to 1,200-mile length of haul, the new rule really throws a crimp into your productivity," he says.
Other types of carriers find the changes simply a problem to be solved.
Expedited carrier Bolt Express, for example, sees the new 30-minute break requirement as a little burdensome, requiring changes in systems and operations to accommodate time-critical plant deliveries.
"It will cause a little bit of an issue because there's another 30 minutes in this that we didn't have before," says CEO Ben Bauman.
And as far as dedicated carrier Cardinal Logistics is concerned, the new rule is, in a word, terrific.
"Any law that further professionalizes our industry and gets the right people driving on the highway and gets the wrong people off of the highways, we're a massive fan of," says chairman Vin McLoughlin.
That said, Cardinal, with its 250-mile range, is not particularly affected by the new restart provision. And the half-hour break is a minor inconvenience, McLoughlin says. "We think it does a good thing for the driver."
Cardinal President and COO Jerry Bowman added another perspective: The rule gives certain large, tightly managed carriers an edge in the market. "Frankly, anything that makes the regulatory environment cleaner and causes people to operate much more safely, we're in favor of because we think that's a competitive advantage for us," he says.
To the extent that the new rule puts pressure on driver availability, that's a good thing for Cardinal. "From our standpoint, our jobs are more desirable than other (carriers') jobs. They're well-paying and have a dependable schedule."
Bowman has a dim view of trucking interests taking FMCSA to court over the rule.
"I think the industry would be idiots to go after this," he says. "I don't know what basis they would have for attacking it, and from a (public relations) perspective, the industry doesn't need that kind of PR over what's basically a non-issue, as we see it."
For Maverick Transportation, which offers an array of truckload services, the rule is going to require significant adjustments, says Dean Newell, vice president of safety and driver training.
During the past six months, for instance, about 15% of Maverick drivers' restarts would not have complied with the new rule.
The half-hour break will require work, too. Maverick's review of more than 186,000 driver logs showed that about 30% would be out of compliance with that requirement because drivers drove for more than eight hours straight. They may have stopped for load checks or smaller breaks, but they did not get the full 30 minutes, he says.
What is required to make the adjustments? "That's the hard question to answer," Newell says. "We don't know yet. We still have plenty of work to do to figure all that out."
Maverick is like most companies in this respect: It's going to take a while to figure it out.
John Conley, president of the National Tank Truck Carriers, says the members of his group still are studying the rule.
Many tank carriers that deliver gasoline work at night, so they are concerned about the impact of the restart provision, he says.
One tanker reported that its drivers could lose a half of a shift per week as a consequence of limiting the restart. A driver who usually works a sixth day and usually starts his shift before 5 a.m. will have to postpone his start, which will delay the start of the night shift. That, in turn, will force more trucks onto the road during the day.
This observation echoes the message that many carriers sent to FMCSA during the rulemaking process: The rule will reduce productivity and driver income, and increase highway congestion.
Getting in FMCSA's head
The agency's response in its analysis of the more than 20,000 comments on the proposed rule illustrates a gap between the perceptions of the regulator and the regulated.
To the issue raised by this tank carrier, for instance, the agency had a blunt answer: "A driver who is regularly working the longest hours will lose hours under the final rule: That is the intention of the rule changes."
Most drivers will not be affected, though, the agency says. Drivers still will be able to average 70 hours a week.
"A driver on the 70-hour/8-day schedule working maximum hours under the 2003 rule would lose one shift every two weeks," the agency says. "Few drivers work that hard, and they don't do so consistently. Income of drivers averaging less than 60 hours a week will not be affected."
On another point of contention, the agency challenged cost estimates for the proposed rule submitted by publicly traded carriers. The costs these carriers cited came to a small fraction of 1% of the carriers' revenues, the agency says.
"None of the commenters provided an explanation of how a reduction in weekly driving hours of about 5% for those working the longest hours could produce revenue declines of the magnitude claimed."
FMCSA also challenged ATA's assertion that the agency had overstated the number of drivers who work long hours. ATA's own data indicates an average work week of less than 44 hours, the agency says.
"The industry, in effect, made two contradictory arguments - that the long hours allowed by the current rule are rarely used so that fatigue is not a problem and rule changes are not necessary, and that any reduction in those hours will have serious economic impacts. Both arguments cannot be true."
The agency also went after industry claims of lost productivity under the rule by citing inefficiencies in the supply chain.
It says carriers and drivers claim they spend from 10% to 50% of their time each week waiting to be loaded and unloaded. If this is correct, the agency says, it is an inefficiency that absorbs more driver on-duty time than all of the changes in the final rule.
The "relatively small" impact of the rule could be offset if shippers and receivers set and kept appointment times for loading and unloading, the agency says.
"FMCSA has no obligation to allow drivers to work excessively long hours a week to compensate for delays in the supply chain."
The agency added that it intends to examine the impact of detention time on hours of service violations.
The agency acknowledged that, as the industry contends, the new rule may require some carriers to take on more drivers, and that new drivers are riskier than experienced drivers.
However, the number of new drivers who will be needed as a consequence of the rule will be relatively small compared to the number needed as a matter of course in the industry, the agency says.
"The real issue for the industry is that many of the new drivers leave the industry within a few months because of long hours, the weeks away from home, and low pay."
The agency was not impressed by the industry's argument that the restart provision will lead to increased rush hour traffic. It says that most drivers who routinely work at night do not work enough hours to require a restart.
But the agency was sensitive to carriers' concerns about the two-night restart taking away operational flexibility. The issue, carriers say, is that drivers will be reluctant to take a restart when they are on the road, and that would lead to more empty miles as carriers reschedule to get drivers home for their break.
The agency's response was to ease the terms of the restart. It had proposed that the successive two-night breaks be from midnight to 6 a.m., but changed that to 1 a.m. to 5 a.m.
"FMCSA acknowledges that this revised restart provision will slightly reduce the flexibility available under the previous rule, but recent research has suggested that two consecutive nights off duty would be necessary to ensure that the drivers who take a restart are adequately rested," the agency says.
The safety question
There would be less resistance to this rule if it were clear to individual carriers that the additional time it gives the driver will improve safety.
Dean Newell of Maverick says his company just came out of its safest year ever. Its reportable accident rate for 2011 was 0.31, DOT reportable accidents per million miles and its preventable accident rate was 0.1.
"So I don't see their logic in it," he says. "In our fleet I don't think that it will make that significant a difference."
Mark Rourke, president of Truckload at Schneider National, says the current rule should have been kept as is.
"If there are clear safety benefits, it's worth the time, energy and cost to make the change," he says in a statement. "However, it's unclear whether these rules will yield any safety improvement."
The industry went into the rulemaking arguing that because fatalities have been dropping since the 2003, the current rule is safe and does not need to be changed.
The agency disagrees. It says that crash rates have been falling for four decades due to a complex mix of factors ranging from highway and vehicle design to increased use of seat belts and carriers laying off riskier drivers during the recession.
Further, the agency says, while the industry assumes that fatigue-related crashes declined as crashes as a whole declined, the data shows that the drop in fatigue-related crashes has not been as consistent as the drop in crashes.
The industry questioned the agency's assumption that drivers do not get enough sleep and says the old restart provision provides enough time for rest. The agency replied that research shows that most drivers do not get enough sleep, and that sleep taken during the day is not as restorative as sleep taken at night.
Drivers who work the long daily and weekly hours that trigger a restart may build up a sleep debt that cannot be paid up during the current 34-hour restart, the agency says.
"These drivers are more likely to be chronically fatigued, with the performance deficits associated with fatigue, and are subject to a range of health effects linked to sleep loss."
Schneider's Rourke raised a concern that many close observers share: The hours of service rule is important, but it is not the main game for safety improvement.
"We do not believe (the rule) addresses the real issue surrounding professional driver safety: compliance under the existing rules," he says.
The industry needs a universal electronic onboard recorder mandate (now being drafted) to take compliance issues off the table and give regulators the information they need to assess the hours of service rule, he says.
"While this work is being done, we believe dollars would be better spent on other safety technologies and fatigue management and distracted driving management programs that truly benefit and improve safety," Rourke says.
Another view
Noel Perry, an economist and consultant with FTR Associates, believes the new rule will lead to a 2% to 3% reduction in overall industry productivity.
It will take about 80,000 to 90,000 new full-time drivers to make up the difference, he says. That's about half the number required after the 2003 rule kicked in, and about half of what it would have been had the agency stuck with the rule it initially proposed.
This is not necessarily bad news for carriers, Perry says. "There's a belief that fleets won't be able to pass on cost increases, which is rubbish."
He cited carriers' experience with the 2003 rule change, which gave them a great story for rate increases, more than enough to cover any productivity effects. He acknowledged that there is a lag between when the carrier incurs the cost and when it can recoup it, which threatens fleets that are less well-managed.
"On the other hand, well-managed fleets have shown the ability to get the word out and use this as cover to get rate increases that they needed anyway, for other reasons."
He says that in a sense the agency is doing carriers a favor: "It is providing them with a good explanation that they can give their customers when they start asking for the higher rates it will take to get the driver home."
Getting drivers home is expensive. It costs $35,000 a year to make it happen every week, compared to every other week, he says.
Perry thinks the additional time the rule gives drivers will improve safety - "you'd be a fool to describe the long-haul truck driver's lifestyle as healthy" - and that in the long run this will lower trucking costs.
"Right now, some of those costs are not being borne by the consumer. They're being borne by individuals, families and the health care system. What this says is that in order to lower costs for the whole system, we're going to charge the consumer the full cost of operating safely."
Enforcement's perspective
"FMCSA did a really good job justifying what they did and why they did it," says Steve Keppler, president of the Commercial Vehicle Safety Alliance, which represents the interests of the enforcement community. "I give them credit for really doing a very thorough job."
Still, CVSA has some concerns that it may raise in a petition for reconsideration, he says.
While the agency had reasonable scientific justification for the changes it made, the enforcement community wants the rule to require drivers to keep supporting documents for the restart, rest break and new definition of on-duty time, he says.
"Without some way for us to verify (driver) activities, it will be much more of a challenge to enforce those particular provisions," he says.
The alliance also wants the agency to reconsider its decision to change the definition of on-duty time starting Feb. 27.
"To try and get the entire country trained on that change in 60 days is really not realistic," he says. "States can't ramp up the training on a dime. We hope that FMCSA will reconsider that date and push it back to July 2013 (when the rest of the rule goes into effect)."
Further, the new restart provision creates another problem for enforcement officers. Under the rule, drivers must keep their log for the current day and the previous seven days. However, seven days' history is not enough to cover a driver's schedule if he took a restart during that period, Keppler says.
The requirement probably should be 14 days, as it is in Canada, he says.
What's next?
As the main antagonists consider whether to sue, there is a third strand in the narrative that says the agency did a pretty good job, all things considered.
"Let's give the DOT a little credit," says John Conley of the tank carrier association. "They knew they would take some heat no matter what they did. Safety would not have been hampered by not making any changes, but the agency could not have come back with no changes or the game would have continued."
He continued: "Politically it would have been easy for the agency to simply publish what they proposed and say, go ahead and sue. They did not take the easy way out."
Conley was echoing the view of many in the industry that this is essentially a political decision, rather than one based purely on science.
In this view, the serial lawsuits against the rule by Advocates of Highway and Auto Safety and the Teamsters union have less to do with safety than with the control struggle between labor and management. And FMCSA is reacting to political pressure from a labor-friendly Obama administration.
The agency clearly disagrees.
"The goal of this rulemaking is to reduce excessively long work hours that increase both the risk of fatigue-related crashes and long-term health problems for drivers," it says.
And the agency's reasoning on the details of the rule is thick with references to research on fatigue - although the industry takes issue with the quality and relevance of some of that material.
The way John Larkin and other observers see it, the agency may have struck a respectable compromise.
"The highway safety lobbyists almost don't care what it costs (but) FMCSA has to measure costs," he says.
Larkin, an analyst by profession, says there is a "fudge factor" in the type of economic analysis used to judge a rule such as hours of service. "You can almost justify whatever you want to justify," he says.
By not cutting the 11-hour limit back to 10 hours, the agency may have engineered a compromise "that has irritated all of the stakeholders a little bit but no one a great amount," Larkin says.
"Maybe (FMCSA Administrator) Anne Ferro walked along the fence pretty well on this one."
The 18-month phase-in is a big help, he says. It will give the industry plenty of time to adjust.
Noel Perry echoed Larkin: "I think it's pretty clear that the FMCSA has neutralized the playing field," he says. The 18-month phase in is a big help, he says. It will give the industry plenty of time to adjust.
Maybe so. But fair warning: There will be more to come.
While the industry is deeply relieved that the agency did not cut the 11-hour limit to 10 hours, the reprieve may be temporary.
The agency kept the 11-hour limit because its cost-benefit analysis showed that 11 hours offered a greater net benefit than either 10 hours or nine hours.
Although research shows that crash risk increases with work hours, it does not show a statistically significant distinction between the risk associated with any two adjacent hours of work, the agency says.
But FMCSA is committed to conducting a comprehensive analysis of risk, hour-by-hour, and it does not consider the case for the 10-hour limit closed.
"Future research may provide a basis for reconsidering the daily driving limit," the agency says.
From the February 2012 issue of HDT.
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FHWA Chooses Third State in Interstate Tolling Program-Source Truckinginfo
FHWA Chooses Third State in Interstate Tolling Program
By Truckinginfo Staff
The Federal Highway Administration has chosen North Carolina as the last of three states eligible to place tolls on interstates under a federal pilot program, joining Virginia and Missouri.
Usually, states are not allowed to add tolls to existing interstate highways. The Interstate System Reconstruction and Rehabilitation Pilot Program allows the conversion of free Interstate highways into toll facilities in conjunction with needed reconstruction or rehabilitation that is only possible with the collection of tolls. The program is limited to three Interstates, each in a different state, to be tolled under this program, and the state's collection of tolls must be for a specified term exceeding 10 years.
The other two slots for this program have been reserved for I-95 in Virginia and I-70 in Missouri. Missouri's program was approved in 2005, but the state legislature has not yet given the Missouri DOT the go-ahead. Virginia's project was just approved last September.
North Carolina officials say tolls will generate $4.4 billion to add travel lanes, raise and rebuild bridges, and improve interchanges on the heavily traveled I-95.
North Carolina initiated the I-95 Corridor Planning and Finance Study in 2009. The study was a comprehensive evaluation of the interstate determining how to improve the safety, connectivity and efficiency of all 182 miles of I-95 in North Carolina. FHWA approved the study's Environmental Assessment in January and the department has begun a second round of public hearings to let citizens along the corridor know what the results of the study are and enable them to provide input.
The Environmental Assessment recommends widening the interstate to six and eight lanes, repairing pavement, raising and rebuilding bridges, improving interchanges and bringing I-95 up to current safety standards for interstates. The total cost for making these improvements to I-95 is $4.4 billion. Current funding only covers about 10% of the costs of these improvements.
The next steps include completing the standard environmental and permitting process. NCDOT will then submit a tolling plan for I-95 that includes pricing, project identification and scheduling, and a detailed description of how toll revenues would be applied to projects along the corridor.
According to published reports, the North Carolina tolls are scheduled to be added in 2019, after additional lanes are built on nearly 50 miles of highway between St. Pauls in Robeson County and the Interstate 40 interchange in Benson.
North Carolina has a website devote to the project, www.driving95.com/.
The FHWA rejected Rhode Island's proposal to toll I-95. Gov. Lincoln Chafee's administration asked in June for permission to place tollbooths on I-95 near the Connecticut border.
Officials in Connecticut said the move would unfairly burden motorists from their state, and critics feared an increase in traffic on local roads as drivers tried to avoid the tolls. However, the state DOT says it will continue to study the toll proposal with the goal of it being approved in future rounds of toll projects.
One of the reasons cited for the decision was that North Carolina is further ahead in the planning process on its project than Rhode Island.
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By Truckinginfo Staff
The Federal Highway Administration has chosen North Carolina as the last of three states eligible to place tolls on interstates under a federal pilot program, joining Virginia and Missouri.
Usually, states are not allowed to add tolls to existing interstate highways. The Interstate System Reconstruction and Rehabilitation Pilot Program allows the conversion of free Interstate highways into toll facilities in conjunction with needed reconstruction or rehabilitation that is only possible with the collection of tolls. The program is limited to three Interstates, each in a different state, to be tolled under this program, and the state's collection of tolls must be for a specified term exceeding 10 years.
The other two slots for this program have been reserved for I-95 in Virginia and I-70 in Missouri. Missouri's program was approved in 2005, but the state legislature has not yet given the Missouri DOT the go-ahead. Virginia's project was just approved last September.
North Carolina officials say tolls will generate $4.4 billion to add travel lanes, raise and rebuild bridges, and improve interchanges on the heavily traveled I-95.
North Carolina initiated the I-95 Corridor Planning and Finance Study in 2009. The study was a comprehensive evaluation of the interstate determining how to improve the safety, connectivity and efficiency of all 182 miles of I-95 in North Carolina. FHWA approved the study's Environmental Assessment in January and the department has begun a second round of public hearings to let citizens along the corridor know what the results of the study are and enable them to provide input.
The Environmental Assessment recommends widening the interstate to six and eight lanes, repairing pavement, raising and rebuilding bridges, improving interchanges and bringing I-95 up to current safety standards for interstates. The total cost for making these improvements to I-95 is $4.4 billion. Current funding only covers about 10% of the costs of these improvements.
The next steps include completing the standard environmental and permitting process. NCDOT will then submit a tolling plan for I-95 that includes pricing, project identification and scheduling, and a detailed description of how toll revenues would be applied to projects along the corridor.
According to published reports, the North Carolina tolls are scheduled to be added in 2019, after additional lanes are built on nearly 50 miles of highway between St. Pauls in Robeson County and the Interstate 40 interchange in Benson.
North Carolina has a website devote to the project, www.driving95.com/.
The FHWA rejected Rhode Island's proposal to toll I-95. Gov. Lincoln Chafee's administration asked in June for permission to place tollbooths on I-95 near the Connecticut border.
Officials in Connecticut said the move would unfairly burden motorists from their state, and critics feared an increase in traffic on local roads as drivers tried to avoid the tolls. However, the state DOT says it will continue to study the toll proposal with the goal of it being approved in future rounds of toll projects.
One of the reasons cited for the decision was that North Carolina is further ahead in the planning process on its project than Rhode Island.
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New-home sales dip after 4 straight monthly gains
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Sunday, February 12, 2012
Weekly Intermodal Traffic Soars 16.8% Source HDT
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Weekly Intermodal Traffic Soars 16.8%
Tom Biery/Trans Pixs
U.S. intermodal traffic jumped 16.8% for the week ended Saturday from a year ago, the Association of American Railroads reported.
Container traffic leaped 20.4% to 201,325 units, while trailer traffic slipped 1.7% to 31,265 units.
Railroad carloads excluding intermodal climbed 6.2% to 284,546 units, the rail trade group said in its weekly report.
AAR noted that the comparison week in 2011 was affected by significant winter weather events.
Railroad volume is considered an important economic indicator. Intermodal traffic, which tends to be higher-valued merchandise than bulk commodities, uses trains for the long haul and trucks for the shorter distance at either end of the trip.tact:Thank you Preferred Logistics-----------www.preferredlogistics.biz
Weekly Intermodal Traffic Soars 16.8%
Tom Biery/Trans Pixs
U.S. intermodal traffic jumped 16.8% for the week ended Saturday from a year ago, the Association of American Railroads reported.
Container traffic leaped 20.4% to 201,325 units, while trailer traffic slipped 1.7% to 31,265 units.
Railroad carloads excluding intermodal climbed 6.2% to 284,546 units, the rail trade group said in its weekly report.
AAR noted that the comparison week in 2011 was affected by significant winter weather events.
Railroad volume is considered an important economic indicator. Intermodal traffic, which tends to be higher-valued merchandise than bulk commodities, uses trains for the long haul and trucks for the shorter distance at either end of the trip.tact:Thank you Preferred Logistics-----------www.preferredlogistics.biz
Saturday, February 11, 2012
Trimac Purchases Interest in Northern Resource Trucking - Source Trucking Today
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Class 8 Orders for January Down 17% from December - Source Trucking Today
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Cass Index: Linehaul Rates Highest since 2005
Cass Index: Linehaul Rates Highest since 2005
The rise in linehaul rates leveled off a bit during January, according to the Cass Truckload Linehaul Index, but nevertheless hit their highest point since the January 2005 date where the Cass Index data begins.
Cass, which puts together its index from data it compiles as the nation's largest payer of freight bills, says the January Index was up just slightly from December at 109.4. On a year-over-year basis, the growth rate was 8% vs. 8.6% from December. "We believe this data reaffirms that capacity remains tight," says the report.
Meanwhile, Cass reports, intermodal rates continue to be stable. For January, the Cass Intermodal Linehaul Index registered a value of 100.4, which was down from December's 101.2. On a year-over-year basis, January costs were down 0.3%, compared to December's increase of 1.9%.
"We believe that moderation in diesel prices, along with more containers coming on line and aggressive pricing by carriers focused on ramping up their intermodal businesses are keeping pricing grounded," Cass predicts.
With regulations in the truckload market raising driver standards and tightening capacity, more and more truckload companies are trying to grow their intermodal service offering to supplement their overall ability to handle volume.
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The rise in linehaul rates leveled off a bit during January, according to the Cass Truckload Linehaul Index, but nevertheless hit their highest point since the January 2005 date where the Cass Index data begins.
Cass, which puts together its index from data it compiles as the nation's largest payer of freight bills, says the January Index was up just slightly from December at 109.4. On a year-over-year basis, the growth rate was 8% vs. 8.6% from December. "We believe this data reaffirms that capacity remains tight," says the report.
Meanwhile, Cass reports, intermodal rates continue to be stable. For January, the Cass Intermodal Linehaul Index registered a value of 100.4, which was down from December's 101.2. On a year-over-year basis, January costs were down 0.3%, compared to December's increase of 1.9%.
"We believe that moderation in diesel prices, along with more containers coming on line and aggressive pricing by carriers focused on ramping up their intermodal businesses are keeping pricing grounded," Cass predicts.
With regulations in the truckload market raising driver standards and tightening capacity, more and more truckload companies are trying to grow their intermodal service offering to supplement their overall ability to handle volume.
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Mexico Cargo Theft Increased 13% Year-Over-Year, Lower Than Normal- Source TruckingInfo
Mexico Cargo Theft Increased 13% Year-Over-Year, Lower Than Normal
Total cargo thefts in Mexico rose 13% for the year, according to the FreightWatch International 2011 Mexico Cargo Theft Report.
While that number might seem high, it's actually a slowdown from recent years, possibly a result of an increasing number of companies adopting security measures and increasing investments in security technology.
From 2006 to 2010, Mexico cargo theft has increased 20% to 40% per year. This has created challenges for companies operating in Mexico and made cargo theft one of the most serious threats to the supply chain industry in Mexico, according to FreightWatch. More than 10,000 hijackings occur each year with losses estimated at $9 billion USD.
Theft Location
The top areas for cargo theft incidents in 2011 were the State of Mexico, the Federal District, and the states of Jalisco, Puebla, Veracruz and Nuevo Leon. The Federal District and the State of Mexico together experienced a 9% decrease in cargo theft activity, while Jalisco saw an 11% decrease. Theft rates increased in all the other statewide hot spots for cargo crime: Puebla's rose 118%, Veracruz's jumped by 38%, and the rate in Nuevo Leon increased by 27%.
The four highway routes that reported the highest number of incidents in 2011 were Mexico-Queretaro, Mexico-Puebla, Guadalajara-Colima and Puebla-Orizaba.
Products
Food and drink products were most targeted by cargo thieves for the second year in a row, claiming 24% of all 2011 theft incidents. Building and industrial products accounted for 22% of thefts. The products most stolen in 2011 were sugar, meat, milk, grains, steel, copper, cell phones, televisions and electrodomestics (mainly refrigerators and air conditioners).
Overall, the average loss value per theft incident increased by 23% during the reporting period, from $154,000 in 2010 to $189,510 in 2011.
Major Trends
FreightWatch reported four other major trends for Mexico cargo theft in 2011:
Rail theft increased by 120%.
One of the most notable trends for 2011 was the sharp increase in rail thefts over 2010. Containers carrying metals, textiles, grains and electronics were the most targeted in 2011.
-Theft of scrap metal on the rise.
Mostly moved by rail in Mexico, scrap metal is increasing being targeted by cargo thieves. Annual losses from this type of theft are now estimated at $50 million USD.
-Natural gas condensate becomes a main target.
Mexico's state‐owned petroleum company Petroleos Mexicanos (Pemex) estimates losses resulting from stolen natural gas condensate total $300 million USD from 2006 through 2011.
-Thieves targeting trucks on clients' behalf.
According to Mexico's National Chamber of Freight and Auto Transport, cargo theft gangs are increasingly targeting loads at the request of clients. These "clients" often include the original, legitimate purchaser of the goods, who makes a deal with the thieves to buy the stolen load at a price lower than he would have paid the company that sold the goods.
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Total cargo thefts in Mexico rose 13% for the year, according to the FreightWatch International 2011 Mexico Cargo Theft Report.
While that number might seem high, it's actually a slowdown from recent years, possibly a result of an increasing number of companies adopting security measures and increasing investments in security technology.
From 2006 to 2010, Mexico cargo theft has increased 20% to 40% per year. This has created challenges for companies operating in Mexico and made cargo theft one of the most serious threats to the supply chain industry in Mexico, according to FreightWatch. More than 10,000 hijackings occur each year with losses estimated at $9 billion USD.
Theft Location
The top areas for cargo theft incidents in 2011 were the State of Mexico, the Federal District, and the states of Jalisco, Puebla, Veracruz and Nuevo Leon. The Federal District and the State of Mexico together experienced a 9% decrease in cargo theft activity, while Jalisco saw an 11% decrease. Theft rates increased in all the other statewide hot spots for cargo crime: Puebla's rose 118%, Veracruz's jumped by 38%, and the rate in Nuevo Leon increased by 27%.
The four highway routes that reported the highest number of incidents in 2011 were Mexico-Queretaro, Mexico-Puebla, Guadalajara-Colima and Puebla-Orizaba.
Products
Food and drink products were most targeted by cargo thieves for the second year in a row, claiming 24% of all 2011 theft incidents. Building and industrial products accounted for 22% of thefts. The products most stolen in 2011 were sugar, meat, milk, grains, steel, copper, cell phones, televisions and electrodomestics (mainly refrigerators and air conditioners).
Overall, the average loss value per theft incident increased by 23% during the reporting period, from $154,000 in 2010 to $189,510 in 2011.
Major Trends
FreightWatch reported four other major trends for Mexico cargo theft in 2011:
Rail theft increased by 120%.
One of the most notable trends for 2011 was the sharp increase in rail thefts over 2010. Containers carrying metals, textiles, grains and electronics were the most targeted in 2011.
-Theft of scrap metal on the rise.
Mostly moved by rail in Mexico, scrap metal is increasing being targeted by cargo thieves. Annual losses from this type of theft are now estimated at $50 million USD.
-Natural gas condensate becomes a main target.
Mexico's state‐owned petroleum company Petroleos Mexicanos (Pemex) estimates losses resulting from stolen natural gas condensate total $300 million USD from 2006 through 2011.
-Thieves targeting trucks on clients' behalf.
According to Mexico's National Chamber of Freight and Auto Transport, cargo theft gangs are increasingly targeting loads at the request of clients. These "clients" often include the original, legitimate purchaser of the goods, who makes a deal with the thieves to buy the stolen load at a price lower than he would have paid the company that sold the goods.
Please feel free to comment to any of the posts on this blog. The intent is to start discussions on the subject content. If you have articles for post or comments about the blog in general please contact: Thank you Preferred Logistics----------- www.preferredlogistics.biz
DOT Freight Index Shows Largest Monthly Hike in 17 Years
DOT Freight Index Shows Largest Monthly Hike in 17 Years
The amount of freight carried by the for-hire transportation industry rose 3.9% in December from November, the largest monthly rise in 17 years, bringing the level of freight shipments to an all-time high, according to the U.S. Department of Transportation's Bureau of Transportation Statistics' Freight Transportation Services Index.
BTS, a part of the Research and Innovative Technology Administration, reported that the level of freight shipments measured by the Freight TSI, 113.7, surpassed the previous high of 113.3 in January 2005.
The Freight TSI measures the month-to-month changes in freight shipments in ton-miles, which are then combined into one index. The index measures the output of the for-hire freight transportation industry and consists of data from for-hire trucking, rail, inland waterways, pipelines and air freight.
Shipments in December 2011 (113.7 on the index) were at the highest level in the 22-year history of the series. After dipping to a recent low in April 2009 (94.3), freight shipments increased in 22 of the last 32 months, rising 20.6 percent during that period.
For the full year 2011, freight shipments measured by the index were up 6.4%, the highest full-year growth rate since 2002, and marked the third consecutive year with an increase.
Please feel free to comment to any of the posts on this blog. The intent is to start discussions on the subject content. If you have articles for post or comments about the blog in general please contact: Thank you Preferred Logistics----------- www.preferredlogistics.biz
The amount of freight carried by the for-hire transportation industry rose 3.9% in December from November, the largest monthly rise in 17 years, bringing the level of freight shipments to an all-time high, according to the U.S. Department of Transportation's Bureau of Transportation Statistics' Freight Transportation Services Index.
BTS, a part of the Research and Innovative Technology Administration, reported that the level of freight shipments measured by the Freight TSI, 113.7, surpassed the previous high of 113.3 in January 2005.
The Freight TSI measures the month-to-month changes in freight shipments in ton-miles, which are then combined into one index. The index measures the output of the for-hire freight transportation industry and consists of data from for-hire trucking, rail, inland waterways, pipelines and air freight.
Shipments in December 2011 (113.7 on the index) were at the highest level in the 22-year history of the series. After dipping to a recent low in April 2009 (94.3), freight shipments increased in 22 of the last 32 months, rising 20.6 percent during that period.
For the full year 2011, freight shipments measured by the index were up 6.4%, the highest full-year growth rate since 2002, and marked the third consecutive year with an increase.
Please feel free to comment to any of the posts on this blog. The intent is to start discussions on the subject content. If you have articles for post or comments about the blog in general please contact: Thank you Preferred Logistics----------- www.preferredlogistics.biz
Sunday, February 5, 2012
YRC Becomes YRC Freight - Source Trucking Info
YRC Becomes YRC Freight
YRC Inc., a subsidiary of YRC Worldwide, is rebranding itself as YRC Freight.
The brand was introduced to employees in late January at a company event. In addition to the new name, a new logo, uniforms, equipment and signage will be rolled out across North America.
"Moving freight is our heritage, what we do best and the key to our future," said Jeff Rogers, president of YRC Freight. "Our new name, logo and branding program publicly demonstrate the unification of a new company and culture that aligns perfectly with our strategy moving forward."
YRC Freight will invest in a new driver uniform program, rebrand road equipment and add new terminal signage. The company will begin the rebranding process immediately and convert equipment as part of regularly scheduled maintenance and refurbishing schedules. The new driver uniforms and building signs will feature bright blue, white and orange colors that will proudly be accompanied by the addition of "Freight" incorporated into the brand name.
The company launched the brand internally at a kick-off meeting with several hundred field and headquarter employees.
YRC Freight plans to emphasize three top priorities in 2012, including improved service, better safety and excellent customer experience.
"In the four months that new leadership has been in place, we have experienced month-over-month increases in our on-time service performance, our customer satisfaction scores, and in our market share position," said Rick Mathews, senior vice president of sales and marketing at YRC Freight. "As shipment counts trend upward for 2012, we will continue to emphasize picking up and delivering shipments on time and delivering them damage-free."
Please feel free to comment to any of the posts on this blog. The intent is to start discussions on the subject content. If you have articles for post or comments about the blog in general please contact: Thank you Preferred Logistics----------- www.preferredlogistics.biz
YRC Inc., a subsidiary of YRC Worldwide, is rebranding itself as YRC Freight.
The brand was introduced to employees in late January at a company event. In addition to the new name, a new logo, uniforms, equipment and signage will be rolled out across North America.
"Moving freight is our heritage, what we do best and the key to our future," said Jeff Rogers, president of YRC Freight. "Our new name, logo and branding program publicly demonstrate the unification of a new company and culture that aligns perfectly with our strategy moving forward."
YRC Freight will invest in a new driver uniform program, rebrand road equipment and add new terminal signage. The company will begin the rebranding process immediately and convert equipment as part of regularly scheduled maintenance and refurbishing schedules. The new driver uniforms and building signs will feature bright blue, white and orange colors that will proudly be accompanied by the addition of "Freight" incorporated into the brand name.
The company launched the brand internally at a kick-off meeting with several hundred field and headquarter employees.
YRC Freight plans to emphasize three top priorities in 2012, including improved service, better safety and excellent customer experience.
"In the four months that new leadership has been in place, we have experienced month-over-month increases in our on-time service performance, our customer satisfaction scores, and in our market share position," said Rick Mathews, senior vice president of sales and marketing at YRC Freight. "As shipment counts trend upward for 2012, we will continue to emphasize picking up and delivering shipments on time and delivering them damage-free."
Please feel free to comment to any of the posts on this blog. The intent is to start discussions on the subject content. If you have articles for post or comments about the blog in general please contact: Thank you Preferred Logistics----------- www.preferredlogistics.biz
Old Dominion Adds 10 Asian Ports to Pacific Promise Service - Source Trucking Info
Old Dominion Adds 10 Asian Ports to Pacific Promise Service
Old Dominion Freight Line expanded its Pacific Promise less-than-container load service to 10 additional ports in eight countries in Asia. This follows a 40% increase in shipments from the continent in 2011.
The new ports are located in Manila, Philippines; Singapore; Jakarta and Surabaya Indonesia; Penang, Malaysia; Port Klang, Kuala Lumpur; Ho Chi Minh, Vietnam; Bangkok, Thailand; Phnom Penh, Cambodia; and Busan, Korea. With the expansion, Old Dominion now serves 23 ports in 10 countries throughout Asia.
Launched in China in 2009, Pacific Promise provides businesses with standard guaranteed transit times and simplified rates from the 23 ports in Asia to any destination in the United States. The service also includes port-to-door tracking of all shipments.
"In an average month, we move shipments between the U.S. and more than 40 countries, with a significant amount of that freight to and from Asia," says Greg Plemmons, vice president of OD-Global, an international shipping division of Old Dominion.
Please feel free to comment to any of the posts on this blog. The intent is to start discussions on the subject content. If you have articles for post or comments about the blog in general please contact: Thank you Preferred Logistics----------- www.preferredlogistics.biz
Old Dominion Freight Line expanded its Pacific Promise less-than-container load service to 10 additional ports in eight countries in Asia. This follows a 40% increase in shipments from the continent in 2011.
The new ports are located in Manila, Philippines; Singapore; Jakarta and Surabaya Indonesia; Penang, Malaysia; Port Klang, Kuala Lumpur; Ho Chi Minh, Vietnam; Bangkok, Thailand; Phnom Penh, Cambodia; and Busan, Korea. With the expansion, Old Dominion now serves 23 ports in 10 countries throughout Asia.
Launched in China in 2009, Pacific Promise provides businesses with standard guaranteed transit times and simplified rates from the 23 ports in Asia to any destination in the United States. The service also includes port-to-door tracking of all shipments.
"In an average month, we move shipments between the U.S. and more than 40 countries, with a significant amount of that freight to and from Asia," says Greg Plemmons, vice president of OD-Global, an international shipping division of Old Dominion.
Please feel free to comment to any of the posts on this blog. The intent is to start discussions on the subject content. If you have articles for post or comments about the blog in general please contact: Thank you Preferred Logistics----------- www.preferredlogistics.biz
House Highway Bill Challenges Hours of Service Restart Provision - Source HDT
House Highway Bill Challenges Hours of Service Restart Provision
By Oliver B. Patton, Washington Editor
In the House highway bill unveiled yesterday, Rep. John Mica, R-Fla., finally revealed what he meant when he said he will challenge the new hours of service rule. The bill could force the Federal Motor Carrier Safety Administration to rewrite the 34-hour restart provision of the rule, which limits the restart to once a week with two sleep periods from 1 a.m. to 5 a.m.
The bill would require the agency to do a field study of the provision. The study would have to be completed by March 31, 2013, three months before the rule is scheduled to go into effect. If the study supports the rule, then the provision would go into effect on schedule.
But if the study does not support the change, the agency would have to go through another rulemaking to modify the rule. The current restart rule would remain in effect during the rulemaking process.
This clarifies Mica's intent following his warning last September that the House Transportation and Infrastructure Committee "will aggressively oversee" changes to the hours of service rules.
Productivity Provisions
The bill also includes language that would allow states to increase the truck weight limit on Interstate highways from 80,000 pounds to 97,000 pounds, provided the truck has a sixth axle.
The Department of Transportation would be able to establish fees for these trucks, based on the increased cost of wear and tear on the road. The fees would go into the Highway Trust Fund.
Another productivity provision would permit states that already allow longer combination vehicles to add more routes for these trucks.
A third provision would allow states to issue special permits for gross vehicle weight up to 126,000 pounds on Interstate segments of 25 miles or less.
This provision already is a political lightning rod, with the American Automobile Association and the Owner-Operator Independent Drivers Association joining the Teamsters union, highway safety advocates and the railroad industry in opposition.
"Truck drivers know firsthand that heavier and longer trucks are much harder to maneuver and put additional stress on our already deteriorating highways and bridges," said Todd Spencer, OOIDA executive vice president, in a statement.
The group contends that the weight increase would force small carriers to buy new equipment they cannot afford. "When choosing between a trucker bringing home $40,000 a year on average and a bailout for multibillion- dollar corporations, I hope Congress will make the right decision and side with small-business truckers," Spencer said.
Other trucking interests, including American Trucking Associations and the Coalition for Transportation Productivity, applauded the provision.
John Runyan, executive director of CTP, said the provision will give states the option of putting more productive and safer trucks on the road - the addition of the sixth axle gives the vehicle the same braking capability as an 80,000-pound truck, he said.
"American truck weight limits trail all other developed countries, which widely use six-axle trucks to carry heavier loads," Runyan said in a statement.
He cited a study of international truck weights that suggests the use of more productive trucks has reduced truck traffic and benefited safety and the environment.
"Since the United Kingdom raised its gross vehicle weight limit to 97,000 pounds for six-axle vehicles in 2001, fatal truck-related accident rates have declined by 35%," he said. "More freight has been shipped, while the vehicle miles traveled to deliver each ton of freight has declined. That's just what we need here in the U.S."
The coalition's membership includes some 200 shippers, shipping associations and trucking companies.
Other Provisions
The bill takes on a number of additional truck-related issues.
It tells DOT to start researching the need for occupant protection standards for tractors, an initiative that has been pushed by trucking interests including ATA and OOIDA.
Of prominent interest to tank carriers, it says the Pipeline and Hazardous Materials Safety Administration must review its pending rule to require carriers to drain gasoline from loading lines, the so-called "wetlines" rule.
The agency would have to hire an "objective non-profit organization" to study the situation, the bill says. The study would have to count the frequency of wetlines incidents over the past decade and evaluate alternatives to carrying flammables in wetlines.
"We are obviously pleased with the T&I Committee language to halt publication of the wetlines ban rule," said John Conley, president of the National Tank Truck Carriers.
"This regulation is a prime example of a politically driven issue that wastes dedicated Department of Transportation employee and industry time for no real safety reason. We hope that PHMSA will pay attention to this language and not publish a final rule later this year, as planned."
The bill also challenges regulators to take greater account of small carriers and owner operators.
In one provision, it tells the Government Accountability Office to study the extent to which federal truck safety rules hamper the operations of small carriers and owner operators. GAO would have nine months from passage of the law to produce the report and make recommendations to reduce adverse regulatory impacts on small carriers.
No FMCSA regulations affecting small carriers or owner-operators could go into effect in the six months after GAO finishes the study, this provision says.
Another provision orders DOT to produce a report on what it's doing to balance truck competition with safety, particularly in relation to the impact of the hours of service rules on small carriers and owner-operators.
In other provisions, the bill:
* Directs DOT to study the effectiveness of crash-avoidance technologies to counter distracted driving, and to expand an ongoing study of collision mitigation systems to include systems that sense a stopped vehicle.
* Orders FMCSA to establish a national clearinghouse for drug and alcohol test results, underscoring a rulemaking that already is under way at the agency.
* Orders the agency to set minimum training standards for truck drivers, also underscoring a rulemaking that is under way.
* Tells DOT to work the Defense Department to establish an accelerated truck driver licensing procedure for military veterans.
* Tells FMCSA that it must include performance standards and certification criteria for electronic onboard recorders in the pending eobr rule.
What's Next
This bill is a long way from becoming law.
Today the House T&I Committee will debate the measure and surely vote to clear it. It then must be joined with other provisions of the highway bill from the House Natural Resources Committee, which is working on finding funding, and the Ways and Means Committee, which has responsibility for the tax portion. Then it must go the floor of the House for debate and passage.
Meanwhile, the Senate still is working on its version of the bill. When that's done, the two bills must be hammered into one and passed as a whole.
That process could affect any of these provisions in ways that cannot be predicted.
Please feel free to comment to any of the posts on this blog. The intent is to start discussions on the subject content. If you have articles for post or comments about the blog in general please contact: Thank you Preferred Logistics----------- www.preferredlogistics.biz
By Oliver B. Patton, Washington Editor
In the House highway bill unveiled yesterday, Rep. John Mica, R-Fla., finally revealed what he meant when he said he will challenge the new hours of service rule. The bill could force the Federal Motor Carrier Safety Administration to rewrite the 34-hour restart provision of the rule, which limits the restart to once a week with two sleep periods from 1 a.m. to 5 a.m.
The bill would require the agency to do a field study of the provision. The study would have to be completed by March 31, 2013, three months before the rule is scheduled to go into effect. If the study supports the rule, then the provision would go into effect on schedule.
But if the study does not support the change, the agency would have to go through another rulemaking to modify the rule. The current restart rule would remain in effect during the rulemaking process.
This clarifies Mica's intent following his warning last September that the House Transportation and Infrastructure Committee "will aggressively oversee" changes to the hours of service rules.
Productivity Provisions
The bill also includes language that would allow states to increase the truck weight limit on Interstate highways from 80,000 pounds to 97,000 pounds, provided the truck has a sixth axle.
The Department of Transportation would be able to establish fees for these trucks, based on the increased cost of wear and tear on the road. The fees would go into the Highway Trust Fund.
Another productivity provision would permit states that already allow longer combination vehicles to add more routes for these trucks.
A third provision would allow states to issue special permits for gross vehicle weight up to 126,000 pounds on Interstate segments of 25 miles or less.
This provision already is a political lightning rod, with the American Automobile Association and the Owner-Operator Independent Drivers Association joining the Teamsters union, highway safety advocates and the railroad industry in opposition.
"Truck drivers know firsthand that heavier and longer trucks are much harder to maneuver and put additional stress on our already deteriorating highways and bridges," said Todd Spencer, OOIDA executive vice president, in a statement.
The group contends that the weight increase would force small carriers to buy new equipment they cannot afford. "When choosing between a trucker bringing home $40,000 a year on average and a bailout for multibillion- dollar corporations, I hope Congress will make the right decision and side with small-business truckers," Spencer said.
Other trucking interests, including American Trucking Associations and the Coalition for Transportation Productivity, applauded the provision.
John Runyan, executive director of CTP, said the provision will give states the option of putting more productive and safer trucks on the road - the addition of the sixth axle gives the vehicle the same braking capability as an 80,000-pound truck, he said.
"American truck weight limits trail all other developed countries, which widely use six-axle trucks to carry heavier loads," Runyan said in a statement.
He cited a study of international truck weights that suggests the use of more productive trucks has reduced truck traffic and benefited safety and the environment.
"Since the United Kingdom raised its gross vehicle weight limit to 97,000 pounds for six-axle vehicles in 2001, fatal truck-related accident rates have declined by 35%," he said. "More freight has been shipped, while the vehicle miles traveled to deliver each ton of freight has declined. That's just what we need here in the U.S."
The coalition's membership includes some 200 shippers, shipping associations and trucking companies.
Other Provisions
The bill takes on a number of additional truck-related issues.
It tells DOT to start researching the need for occupant protection standards for tractors, an initiative that has been pushed by trucking interests including ATA and OOIDA.
Of prominent interest to tank carriers, it says the Pipeline and Hazardous Materials Safety Administration must review its pending rule to require carriers to drain gasoline from loading lines, the so-called "wetlines" rule.
The agency would have to hire an "objective non-profit organization" to study the situation, the bill says. The study would have to count the frequency of wetlines incidents over the past decade and evaluate alternatives to carrying flammables in wetlines.
"We are obviously pleased with the T&I Committee language to halt publication of the wetlines ban rule," said John Conley, president of the National Tank Truck Carriers.
"This regulation is a prime example of a politically driven issue that wastes dedicated Department of Transportation employee and industry time for no real safety reason. We hope that PHMSA will pay attention to this language and not publish a final rule later this year, as planned."
The bill also challenges regulators to take greater account of small carriers and owner operators.
In one provision, it tells the Government Accountability Office to study the extent to which federal truck safety rules hamper the operations of small carriers and owner operators. GAO would have nine months from passage of the law to produce the report and make recommendations to reduce adverse regulatory impacts on small carriers.
No FMCSA regulations affecting small carriers or owner-operators could go into effect in the six months after GAO finishes the study, this provision says.
Another provision orders DOT to produce a report on what it's doing to balance truck competition with safety, particularly in relation to the impact of the hours of service rules on small carriers and owner-operators.
In other provisions, the bill:
* Directs DOT to study the effectiveness of crash-avoidance technologies to counter distracted driving, and to expand an ongoing study of collision mitigation systems to include systems that sense a stopped vehicle.
* Orders FMCSA to establish a national clearinghouse for drug and alcohol test results, underscoring a rulemaking that already is under way at the agency.
* Orders the agency to set minimum training standards for truck drivers, also underscoring a rulemaking that is under way.
* Tells DOT to work the Defense Department to establish an accelerated truck driver licensing procedure for military veterans.
* Tells FMCSA that it must include performance standards and certification criteria for electronic onboard recorders in the pending eobr rule.
What's Next
This bill is a long way from becoming law.
Today the House T&I Committee will debate the measure and surely vote to clear it. It then must be joined with other provisions of the highway bill from the House Natural Resources Committee, which is working on finding funding, and the Ways and Means Committee, which has responsibility for the tax portion. Then it must go the floor of the House for debate and passage.
Meanwhile, the Senate still is working on its version of the bill. When that's done, the two bills must be hammered into one and passed as a whole.
That process could affect any of these provisions in ways that cannot be predicted.
Please feel free to comment to any of the posts on this blog. The intent is to start discussions on the subject content. If you have articles for post or comments about the blog in general please contact: Thank you Preferred Logistics----------- www.preferredlogistics.biz
Hiring surges in January; jobless rate at 8.3 pct.- Source AP Writer
Please feel free to comment to any of the posts on this blog. The intent is to start discussions on the subject content. If you have articles for post or comments about the blog in general please contact: Thank you Preferred Logistics----------- www.preferredlogistics.biz
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