Economy, government regulation top issues for truckers

The troubled national economy and impact of government regulation were cited as the top issues facing the U.S. trucking sector according to a recent report by the American Transportation Research Institute (ATRI).

ATRI surveyed more than 5,000 industry execs to gather the list of top 10 issues facing the trucking sector. The list also included proposed strategies the industry could take to address the issues. The survey was commissioned by the American Trucking Associations’.

“As the U.S. economy slowly recovers from the worst recession since the 1930s, the industry’s long-term rebound is still challenged by recalcitrant consumer confidence, high unemployment and a credit crunch,” noted the opening statement in the ATRI report. “Secondary and tertiary impacts include rare driver lay-offs, excess freight capacity and decreasing fuel costs. Nevertheless, the trucking industry is well accepted as a leading indicator or barometer of general economic health, and many core indicators reflect improving conditions over the last two quarters.”

TOP 10 ISSUES
• Economy
ATRI noted: “Last year’s debut of the economy as the second most pressing issue facing the industry was clearly a bellwether of events to come.”

• Government regulation
ATRI noted: “This year’s ascension of government regulation could be attributed to the changes in the national political landscape and election results at the federal, state and local levels.”

• Fuel issues
ATRI noted: “Reflecting the ongoing volatility of energy prices, “fuel issues” ranked 1 in 2005 and again in 2008, but dropped to 3rd in 2009.”

• Congestion/highway infrastructure
ATRI noted: “Despite significant drops in both truck and automobile vehicle miles traveled in 2008, congestion/highway infrastructure went up to 4th place from its previous 6th place position in 2008.”

• Hours-of-service
ATRI noted: “Rules regulating commercial driver Hours-of-Service (HOS) remain in the 5 spot in 2009. … Given the costs incurred by the industry in adapting operations to several HOS rules changes since 2005, the industry is closely monitoring HOS and related EOBR issues.”

• Commercial driver issues
ATRI noted: “Historically, the classic shortage of truck drivers has kept ‘Driver Issues’ near the top of the list. In 2009, however, the economic recession basically eliminated driver shortages; in fact, many carriers either cut driver wages, or laid drivers off altogether.”

• Environmental issues
ATRI noted: “The proliferation of anti-idling regulations, federal and state equipment mandates, and the ongoing debate on carbon taxing and cap and trade legislation has created concern that compliance costs may significantly exceed benefits.”

• Tolls/highway funding
ATRI noted: “Tolls/highway funding issues stayed in the limelight this year through headlines and debates on state and federal transportation funding shortfalls and new programs for raising revenue, including GPS-based mileage taxes.”

• Truck size/weight
ATRI noted: “There is new interest by the industry, shippers and many environmentalists to revise size and weight limitations imposed by the federal government in 1991 as a mechanism for improving freight efficiency.”

• Onboard truck technology
ATRI noted: “In 2009, both the U.S and Canadian governments continued their ongoing assessments on the role of certain onboard truck technologies, namely Electronic Onboard Recorders (EOBRs), which could be mandated in the future for certain segments of the industry.”

Strategies to address the 10 issues include promoting tort reform and healthcare reform to lower costs, seek federal stimulus money for “freight transportation initiatives,” oppose the Employee Free Choice Act, encourage expanded exploration and production of domestic oil supplies, educate and inform officials about impacts of congestion and “deteriorating state of the U.S. transportation system,” and advocate for credible cost/benefit analysis for environmental regulations.

“On every legislative and regulatory topic, issues come and go so quickly today,” Bill Graves, ATA president and CEO, said in a statement.  “If we’re not at the table with sound, science-based information and a common sense plan of action, then we’re going to get left behind, and saddled with solutions that have no bearing on moving America’s freight safely and efficiently.”

Steve Williams, chairman and CEO of Little Rock-based Maverick USA (trucking company), serves on the ATRI board of directors. Arkansas members of the 23-member 2009-2010 ATRI research advisory committee are John Culp, Maverick USA, and Greer Woodruff, Lowell-based J.B. Hunt Transport Services Inc.