Transport Topics

Truck tonnage in October declined a seasonally adjusted 8.7% when compared with year-ago levels, according to the American Trucking Associations index released yesterday. This marks the seventh consecutive month of year-over-year declines. When measured month-to-month, the ATA For-Hire Truck Tonnage Index decreased 6.3% after an increase of 5.7% in September. Still, analysts are holding off from sounding the alarm. ATA Chief Economist Bob Costello said, “While there are indications that the economy is losing momentum, I believe October’s tonnage softness was more of a seasonal issue during a pandemic than anything else.” Learn more about your ad choices. Visit podcastchoices.com/adchoices

The national average price of diesel rose again, this time by 2.1 cents per gallon, according to the Energy Information Administration’s weekly data released yesterday. Diesel now costs an average of $2.462, which is its most expensive mark since April 20. The increase follows a spike reported by the EIA last week, when diesel shot up 5.8 cents — more than twice the previous weekly increase high for the year. Despite the recent upturn, a gallon of diesel is still about 60 cents cheaper now than at this point a year ago. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Manufacturing has improved greatly since the onset of the coronavirus pandemic, but a lot of work remains, experts said during a panel discussion Nov. 19. The National Association of Manufacturers, in its quarterly industry survey released Sept. 10, found that 66% of manufacturers were positive about their outlook. That is up from 33.9% in May. Respondents were asked in the survey when they expect to return to pre-pandemic levels. One-fourth of the association members said they were already back or were expecting to get back in the third quarter, but roughly 62% said they won’t get back to pre-pandemic levels until at least next year if not 2022 or later. Learn more about your ad choices. Visit podcastchoices.com/adchoices

A case that alleges ocean carriers are overcharging truckers for use of container chassis at ports will proceed after a judge denied a request for dismissal filed by the defendants. An administrative law judge with the Federal Maritime Commission this week rejected a motion from the Ocean Carriers Equipment Management Association seeking dismissal of a claim filed by the Intermodal Motor Carriers Conference of American Trucking Associations. In the case, IMCC alleges that OCEMA and 11 international ocean carriers violated the Shipping Act of 1984 by inflating prices for intermodal chassis at dozens of ports nationwide. IMCC says this has cost the trucking industry $1.8 billion over the past three years. The decision was welcomed by ATA, and clears the way for its case to continue. Learn more about your ad choices. Visit podcastchoices.com/adchoices

The U.S. Federal Communications Commission voted Nov. 18 to redeploy airwaves assigned 21 years ago for a vehicle safety system that hasn’t come to fruition, rejecting carmakers’ efforts to hold onto the frequencies. With its vote, FCC opened the way for billions of Wi-Fi devices to use frequencies once destined for a safety system to be used by vehicles linked to roadside gadgets. The change follows years of lobbying by carmakers such as Ford Motor Co. and General Motors Co. to retain their exclusive hold on the rich airwaves swath. Among the stakeholders that were pushing back on FCC’s proposal were transportation leaders on Capitol Hill and the American Association of State Highway and Transportation Officials. Learn more about your ad choices. Visit podcastchoices.com/adchoices

State and federal transportation officials are contributing to an emergency response effort after a truck crash damaged the Brent Spence Bridge, which links northern Kentucky and Cincinnati and carries interstates 71 and 75 over the Ohio River. The double-decker span has been closed since a fiery crash involving two commercial motor vehicles occurred Nov. 11. Inspections showed that the structure remains sound. A construction contract has been awarded, and the bridge is scheduled to reopen Dec. 23. According to the U.S. Department of Transportation, the Brent Spence Bridge carries about 165,000 vehicles per day. Learn more about your ad choices. Visit podcastchoices.com/adchoices

The Federal Motor Carrier Safety Administration has determined that Washington state’s meal-and-rest-break rules for commercial truck drivers are pre-empted by federal hours-of-service regulations. The determination, included in a notice scheduled for publication in the Federal Register on Nov. 17, honors a petition submitted by Washington Trucking Associations in April 2019. According to the notice, FMCSA has determined that Washington’s meal-and-rest-break laws have no safety benefits that extend beyond those provided by the Federal Motor Carrier Safety Regulations, are incompatible with federal HOS rules and place an “unreasonable burden” on interstate commerce. Learn more about your ad choices. Visit podcastchoices.com/adchoices

U.S. trailer orders for October soared to 54,200, the third-best month in industry history, according to an ACT Research report. A year ago, orders were 31,786. The all-time record is 58,228, set in September 2018, with that October claiming the second-highest volume with 55,399. Frank Maly, director of commercial vehicle analysis and research at ACT, said, “Current production rates would result in industry backlogs extending into next July. Expect OEMs to adjust build rates upward to take advantage of this positive shift in fleet investment.” Learn more about your ad choices. Visit podcastchoices.com/adchoices

Class 8 U.S. retail sales in October remained 18.4% below year-ago levels, but closed in on 19,000, according to a WardsAuto.com report yesterday. Sales were 18,774 compared with 23,001 a year earlier. It was the second-highest tally of the year, trailing only 19,126 in September. All truck makers in the month posted lower year-over-year sales except Western Star, the smallest, which rose 2.8% to 484 units compared with 471 a year earlier. Western Star earned a 2.6% market share. For the first 11 months of the year, all OEMs except International and Peterbilt have notched gains in market share compared with 2019. Learn more about your ad choices. Visit podcastchoices.com/adchoices

The U.S. Government Accountability Office has overturned the award of a potential nine-year, $19.9 billion contract to a New Jersey company for moving military household goods worldwide. The lucrative Global Household Goods Contract, first awarded in April to American Roll-on Roll-off Carrier Group, or ARC, of Parsippany, N.J., is intended to address military families’ long-standing problems with delays and damaged goods during moves to assignments, according to the Department of Defense U.S. Transportation Command. The GAO decision came in response to protests lodged by two of ARC’s competitors, alleging that ARC lacks the experience and capability to move the estimated 400,000 members of the military and their families, as well as DOD employees, across the globe each year. Learn more about your ad choices. Visit podcastchoices.com/adchoices

The truck making world will soon have a new kid on the block. Fully embracing an alliance begun in 2017, the boards of directors at Traton SE and Navistar International approved over the weekend a definitive agreement to merge. The merger is subject to Navistar shareholder approval, but major shareholders in that company have already agreed to vote their shares in favor of the transaction. The deal is expected to close in mid-2021, and when it does, company officials say the new entity will have an enhanced ability to meet the demands of new regulations and rapidly emerging technologies for connectivity, propulsion and autonomous driving for customers globally. Learn more about your ad choices. Visit podcastchoices.com/adchoices

A previously unidentified New Orleans attorney alleged to be a co-conspirator in a sweeping federal investigation into staged accidents with tractor-trailers was named in a federal indictment last week for his alleged role in the conspiracy. Danny Patrick Keating Jr., 51, unnamed but only identified as “Attorney A” in several previous indictments, was accused of being a participant in as many as 31 staged accidents in the New Orleans area in recent years. He became the 33rd individual charged in the complex conspiracy. Federal authorities specifically charged Keating with one count of conspiracy to commit mail and wire fraud, for conspiring with alleged ringleader Damian Labeaud and others to defraud insurance companies, commercial carriers and trucking companies in a scheme involving intentionally staging automobile accident crashes. If convicted, Keating faces up to five years in prison and a $250,000 fine. Learn more about your ad choices. Visit podcastchoices.com/adchoices

While the presidential race remained up in the air Nov. 5, a number of Congressional campaigns had already claimed victory. For the top transportation decision-makers on Capitol Hill up for re-election, a majority of voters responded favorably to their campaigns, sending them back to Washington to work on an agenda that includes an update of the country’s highway and infrastructure policies. In Maine, incumbent Republican Senator Susan Collins, the chamber’s transportation funding leader, earned a fifth term to serve. In Michigan, incumbent Democratic Senator Gary Peters, who is a member of the Commerce Committee that handles trucking policy, won re-election as well. On the House of Representatives side, the top politicians for each party on the Transportation and Infrastructure Committee — Democrat Peter DeFazio of Oregon and Republican Sam Graves of Missouri — claimed victory. Could 2021 be the year for infrastructure? Maybe. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Though the presidential election was coming down to the wire Nov. 4, the fates of two transportation-related issues in two states were officially settled at ballot boxes on Election Day. In Arkansas, 55% percent of voters approved a measure to make permanent a sales tax dedicated to supplying revenue to state and local transportation infrastructure purposes. The existing 0.5% sales tax was established in 2012 and had been set to expire in 2023. In California, 58% of voters approved Proposition 22, handing ridesharing companies such as Uber and Lyft a win. The measure classifies the drivers of such businesses as independent contractors rather than employees. However, it does stipulate that gig-economy companies must provide certain minimum payments and benefits to these drivers. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Volvo Trucks North America and other industry associations and companies have helped facilitate the modification of California utility rules to give private entities the ability to sell electricity as a motor fuel. The rule modification would apply at publicly accessible charging stations for medium- and heavy-duty electric vehicles. Electric utilities in the state had been guided by a California Public Utilities Commission decision in 2010 that exempted light-duty vehicle charging station providers from being regulated as a utility, but did not explicitly exempt medium- and heavy-duty charging station providers. Learn more about your ad choices. Visit podcastchoices.com/adchoices

An election year marked by a historic health crisis and often-contentious political rhetoric will come to a head today as remaining voters cast their ballots. Undoubtedly the transportation industry will be watching the results closely, as the two top presidential candidates hold vastly different visions for infrastructure. President Donald Trump and his reelection team have touted a persistent push to reform environmental permitting guidance, as well as an intent to advance a multiyear comprehensive highway policy update should he win election. Former Vice President Joe Biden, on the other hand, is pursuing a multitrillion-dollar, multidecade infrastructure plan that aims to deliver a massive fleet of electric vehicles. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Legislation that aims to promote the adoption of new technologies throughout the country’s transportation networks was recently introduced in the U.S. House of Representatives. The Strengthening Methods to Advance Research and Technology, or SMART, Act, introduced by Rep. Troy Balderson, would aim to advance innovation, efficiency and new safety programs across transportation corridors. Specifically, the bill would authorize several programs at the U.S. Department of Transportation, pertaining to advanced technologies, connected vehicles, automated driving systems and digital construction management systems. Rural areas would be covered under the bill, according to background provided by the congressman’s office. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Today marks the end of Anne Reinke’s first week as new president and CEO of the Transportation Intermediaries Association. She will be responsible for the day-to-day leadership, including working with key stakeholders to advance TIA’s mission of advocating for the third-party logistics sector. Reinke’s prior experience includes two years in the U.S. Department of Transportation and 16 years with CSX. When asked about how she would lead TIA, Reinke said, quote, “I will be listening, learning and appreciating what their experience with the association is and what they would like to see more or less of. Same with our members and board, etc. How can I be helpful? What do you want to see the association do that I can help with?” Learn more about your ad choices. Visit podcastchoices.com/adchoices