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Lifestyle Trucker News

Tax credits for electric trucks, anti-idling

Idling comes from idle which means absence of motion. In the present case IDLING relates to a running engine that is powering a vehicle when it is not moving. An idling engine consumes only enough power to keep itself and its accessories running, therefore, producing no usable power to the drive train. On a school bus, the practice is actually beneficial to the engine during pre-route. It warms the engine and circulates the fluids, preventing the interaction of cold parts, reducing friction and maintaining maximum driving efficiency during route.

U.S. Sen. Herb Kohl recently introduced legislation to provide tax credits for buying hybrid, plug-in hybrid and electric trucks, and idling reduction devices.The Wisconsin Democrat’s bill, the Hybrid and Electric Trucks and Infrastructure Act, was referred to the finance committee with one co-sponsor.

The tax credits would include application to trucks with a gross vehicle weights in several classes, includes those with rating of more than 26,000 pounds and more than 33,000 pounds with a maximum credit of $24,000.The bill also creates a tax incentive of up to $3,500 for anti-idling infrastructure and anti-idling devices installed on trucks, which would expire before 2014. An example of this credit for infrastructure would apply to truck stops installing electrification units.

Finally, S.1285 would extend the tax credit for recharging and refueling infrastructure for plug-in and alternative fuel vehicles.Kohl introduced a similar bill in 2009, which was referred to committee with five co-sponsors.

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Freight Brokers Lifestyle

Freight Broker Revenue Grows 17.1%

A freight broker is an individual or company that serves as a liaison between another individual or company that needs shipping services and an authorized motor carrier. Though a freight broker plays an important role in the movement of cargo, the broker doesn’t function as a shipper or a carrier. Instead, a freight broker works to determine the needs of a shipper and connects that shipper with a carrier willing to transport the items at an acceptable price.

Freight brokers increased their revenue 17.1 percent in the first quarter from the same period a year ago as the third-party logistics companies expanded fastest in business beyond their core truckload sales, according to an industry report.

The Transportation Intermediaries Association said the shipment count in its quarterly survey of 3PLs increased 7.4 percent in the first three months of the year but that the overall profit margin for the brokers slipped back to 14.9 percent from 15.3 percent a year ago.

But revenue per shipment grew at a sharp rate, including 10.3 percent growth in truckload business, a sign of tight capacity in a growing market at the start of 2011.

The strongest shipment growth came in less-than-truckload arena, which soared 24.5 percent over last year, and brokered intermodal shipments jumped 11.7 percent in the first quarter. Truckload shipments, which bring 3PLs some 98 percent of their operating revenue, grew 5.3 percent.

“The report indicates that 3PLs expanded their services into intermodal and LTL to meet customer needs,” said TIA President and CEO Robert Voltmann.

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Business Lifestyle

ATA offers driver pay study

The American Trucking Associations released the ATA Driver Compensation Study with the first look at the state of the trucking labor market since the end of the recession with data from 2010 and 2011, the new driver compensation study updates the previous report from 2007 and 2008.

It is the trucking lobby’s first report on driver compensation in six years, gleaned from data from publicly held and privately owned nationwide less-than-truckload (LTL), regional LTL, nationwide truckload (TL), regional TL, dedicated carriers, logistic providers, and other companies.

“The trucking industry faces many challenges in 2009,” said ATA president & CEO Gov. Bill Graves. “Appropriately compensating and retaining top-notch drivers is a necessity for companies trying to weather the current economic storm. This study provides very important national and regional data the industry desperately needs today and during the subsequent economic recovery.”

The 96-page report synthesizes information from 155 motor carriers of all types and sizes and includes a variety of data, including:

• Employee driver salaries on national and regional levels;
• Employee driver salaries by carrier type (flatbed, refrigerated, tank truck and more);
• Employee driver benefits, including bonuses, insurance, retirement and vacation;
• Employee driver recruitment, training and retention practices;
Owner-operator employment and compensation structure; and
• Technician employment, salaries and benefits.

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Business Lifestyle Trucker News

Trucking adds 4,400 jobs

A lot of people in this country have been laid off because of job cuts and the lagging economy. A lot of the people who were affected have found it very hard to find work. Many have ended up in the unemployment lines, but a few have decided to be proactive and are considering a career change. Some of the proactive people are getting training from a truck driving school. Our focus here is to help those that attended a truck driving school find a great trucking job.

The surge in trucking employment didn’t just resume in June; apparently it never stopped. While last month’s job report from the U.S. Department of Labor’s Bureau of Labor Statistics indicated for-hire trucking companies had added only 100 jobs in May, the latest BLS report released July 8 revised those numbers to a 3,000-job increase in May and pegged the growth in June over May at 4,400.

Since the end of December, payroll employment in trucking is up nearly 27,000, according to the preliminary BLS figures. Since trucking employment bottomed out in March 2010, the industry has added 55,500 jobs.

Job growth in the rest of the economy isn’t so healthy. Nonfarm payroll employment edged up by just 18,000 jobs in June, and the unemployment rate actually ticked higher by one-tenth of a percentage point to 9.2 percent, according to initial BLS estimates. Modest gains in private employment were offset by 39,000 jobs lost in federal and state governments.

Compared to June 2010, payroll employment in trucking is up 3.9 percent. Total employment in trucking in June was nearly 1.283 million – down 170,500, or 11.7 percent, from peak trucking employment in January 2007.

The BLS numbers reflect all payroll employment in for-hire trucking, but they don’t include trucking-related jobs in other industries, such as a truck driver for a private fleet. Nor do the numbers reflect the total amount of hiring since they only include new jobs, not replacements for existing positions.

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Lifestyle Trucker News

Commercial vehicle orders remain at healthy

A commercial vehicle is a type of motor vehicle that may be used for transporting goods or passengers. The European Union defines “commercial motor vehicle” as any motorized road vehicle, which by its type of construction and equipment is designed for, and capable of transporting.

COLUMBUS, Ind. — A preliminary reading of commercial vehicle net orders in June for North American markets indicated continued strength in demand for medium and heavy-duty vehicles according to ACT Research Co.

When final June data are released in mid July, North American Class 8 orders are anticipated at 21,200 units and Classes 5-7 orders at 14,600 units. In both markets, the current period of stronger demand stretches back to the fourth quarter last year. Preliminary net order numbers are subject to revision and are typically accurate to within 5 percent plus or minus.

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Lifestyle Trucker News

CARB extends trailer fleet registration

The California Air Resources Board on July 1 announced that trailer fleet owners have an extra 30 days – until Aug. 1 – to register their fleets if they want to take advantage of a flexible phase-in option for a new California regulation designed to reduce greenhouse gas emissions.

The Tractor-Trailer Greenhouse Gas regulation requires tractors with 53-foot or longer trailers that travel in California to be equipped with U.S. Environmental Protection Agency SmartWay-verified aerodynamic technologies, including low rolling-resistance tires, skirts and fairings.
“CARB has designed this regulation so that flexible options are available to businesses for planning purposes,” said Mary Nichols, CARB chairman. “This way, businesses can add this equipment and start saving money on fuel and reducing greenhouse gas emissions.”

Fleets with 21 or more trailers may take advantage of a flexible option that allows fleet compliance to be phased in over five years, from 2011 through 2015. To take advantage of this phase-in option, owners must submit a compliance plan to CARB that includes a list of trailers in the fleet and the scheduled percentage of trailers to be brought into compliance each year. Fleets with 21 or more trailers that do not choose this option must bring all of their pre-2011 model year trailers into compliance by Jan. 1, 2013.

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Lifestyle Trucker News

Minnesota shuts rest areas in budget battle

Truckers cannot park at an estimated 67 Minnesota rest areas after state officials shut the facilities down along with most state services at midnight June 30 until a funding crisis is resolved.

John Hausladen, president of the Minnesota Trucking Association, said he was unaware of accommodations made for truckers coping with the situation.”Truck drivers are caught between a federal government eager to do its job with hours-of-service and a state unwilling to provide the resources to do the job,” Hausladen said.

The current shutdown is under a Democrat governor and a Republican majority in both legislative branches. In 2005 an eight-day partial shutdown of Minnesota state services was under a Republican governor and a Democrat majority in the state House and Senate, he noted.

The Minnesota State Patrol is fully operational for roadside enforcement, but weigh stations staffing is likely to be minimal, Hausladen said.

The Minnesota DOT posted that permits for oversize and overweight trucks will be available, but it had halted all highway construction and closed work zones.

A Federal Motor Carrier Safety Administration spokesman had no comment when asked if truckers would be afforded any leniency from HOS enforcement in Minnesota during the shutdown.

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Lifestyle Trucker News

DOT offers $527M in grants

The U.S. Department of Transportation on June 30 announced that $527 million will be available for a third round of the TIGER (Transportation Investment Generating Economic Recovery) competitive grant program, which funds innovative transportation projects that address job creation and making a significant impact on the nation, a region or a metropolitan area.

In the FY11 budget President Obama signed in April, $527 million was directed to DOT for critical investments in the nation’s transportation infrastructure. States, cities, local governments and other partnerships and groups will have until this fall to prepare their applications for the TIGER program, which has funded high-impact projects including roads, bridges, freight rail, transit buses and streetcars, ports, and bicycle and pedestrian paths.

The previous two rounds of the TIGER grant program provided $2.1 billion to 126 transportation projects in all 50 states and the District of Columbia. Demand for the program has been overwhelming, and during the previous two rounds, DOT received more than 2,500 applications requesting more than $79 billion for transportation projects across the country.

Projects will be selected based on their ability to contribute to the long-term economic competitiveness of the nation, improve the condition of existing transportation facilities and systems, improve energy efficiency and reducing greenhouse gas emissions, improve the safety of U.S. transportation facilities and improve the quality of living and working environments of communities through increased transportation choices and connections. DOT also will focus on projects that are expected to quickly create and preserve jobs and spur rapid increases in economic activity.

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Carriers Lifestyle

Kansas speed limit rises to 75

Road speed limits are used in most countries to regulate the speed of road vehicles. Speed limits may define maximum (which may be variable), minimum or no speed limit and are normally indicated using a traffic sign. Speed limits are commonly set by the legislative bodies of nations or provincial governments and enforced by national or regional police and / or judicial bodies.

Beginning July 1, speed limits on divided four-lane highways in Kansas will increase to 75 mph from 70.The more than 800 miles covered under the new law include most of the Kansas Turnpike from the Kansas-Oklahoma border to Kansas City, Kan., and rural sections of interstates 70 and 35. Lawmakers wanted to increase the speed limit to make the state more competitive and in line with other Western states that have high limits. Neighboring states Colorado, Nebraska and Oklahoma are among states that have 75 mph speed limits on rural sections of Interstates. The Kansas Motor Carriers Association remained neutral toward the faster speed, as long as the limit applied to all vehicles. The KMCA said it doubted many carriers would increase the governed speed on trucks to accommodate the higher limit.

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Carriers Lifestyle

Used truck sales, trailer orders drop

Used truck sales in all sales channels dropped about 15 percent in May from April, due to a lack of available inventory, according to ACT Research Co.

ACT also reported U.S. trailer net orders fell 9 percent in May from April, the second consecutive monthly decline for the industry. Despite that decline, commercial trailer backlogs grew 1 percent from April to 102,500 units.

New truck sales should help ease used truck supplies and pricing, said Steve Tam, ACT vice president-commercial vehicle. “Due to new truck buyers holding on to their equipment longer, used truck mileage continues to trend upward. Vehicle age and mileage are expected to increase throughout 2011,” Tam said.

ACT noted trailer build was up 87 percent from May 2010, while industry backlog was 122 percent higher for the same time period.

“The decline in net orders was actually in line with what would be expected from normal industry patterns,” said Frank Maly, director of CV Transportation Analysis and Research. “The order board continues to appear solid, as supported by extremely low order cancellations.”