CALTRUX Q2 Summer 2023 - California Trucking Association

Caltrux

Karen Vellutini Devine Intermodal Celebrating 100 Years

CTA in Action

TDC Coverage

CTA Members Respond to ATRI's Critical Issues Survey

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Chief Executive Officer

Eric Sauer

Senior Vice President of Government Affairs

Chris Shimoda

Vice President, Finance & Administration

Matt Mandell

Accounts Receivable & Member Invoicing

Desiree Ochotorena

Accounts Payable & Staff Accountant

Vira Melnechuk

Director, Government & Public Affairs

Bernice Jimenez Creager

Government Affairs Associate

Nick Chiappe

Program Assistant

Hayden Tallman

Director of Membership & Business Development

Dana Brooks

Membership & Marketing Manager

Jeneca Kretchman

Membership & Events Specialists

Tina Ferguson

Heather Schreindl

TSC Outside Sales Executive

Levi Ochotorena

TSC Programs Manager

Karina Fernandez Publisher Jennifer Matthews-Drake jennifer@matthewspublishing.com www.matthewspublishing.com

Creative Director Fran Sherman

Graphic Designer

Barbara Negron

Production Manager

Bernice Creager

Contributing Writers

Steve Brawner

Dan Calabrese

David Lee Cullen

Kevin Jones

David Monteith

Jack Roberts

John Schultz

Lacey C. Thacker

Photographers

Christian Koszko, Blake Wilson

President's Message

ACTIVE PARTICIPATION

As a longstanding member of CTA, I have always known the value that our association offers. However, since assuming the role of president, I have had the privilege of learning more about the ins and outs of CTA.

These initial months have provided me with a more indepth understanding and profound appreciation of the incredible work we do collectively. It has also brought to light many exciting opportunities and challenges that lie ahead in our industry’s future.

In order to thrive in this ever-evolving landscape, it is essential that we come together as a unified force, embracing new communication tools, actively participating in CTA events, and staying informed about crucial issues impacting the trucking community.

The world around us is changing at an unprecedented pace, it is crucial that we adapt accordingly. One of the key aspects of this adaptation is utilizing communication tools effectively. In today’s interconnected world, it is essential that we leverage the power of technology to enhance our operations and stay connected with one another. Whether it’s through CTA’s social media platforms, electronic communications or opening Spotify for the latest episode of the Inside the Cab Podcast, we must make the most of these tools to learn what the association is doing for us and gain valuable industry updates. By doing so, we can foster collaboration and collectively strengthen our position in California.

Active participation is another vital way to Transition to the Future successfully. CTA provides various opportunities to participate and showcase our professionalism in the industry, including the recent Truck Driving Championships. These are valuable ways for members to network, learn and shape the direction of our industry. Through active participation, you not only expand your knowledge and skills but also contribute to the growth and development of CTA as a whole. Your presence and input makes a difference, I encourage each and every one of you to engage actively and make your voices heard to continue a transition into the future that takes into account our industry and the many contributions to our state.

I want to emphasize one issue that demands our attention and active involvement, the Advanced Clean Fleets (ACF) Rule (ACF). As a forward-thinking industry, we have stayed ahead of the curve in terms of environmental sustainability by transitioning to newer technologies and embracing cleaner, more efficient practices, which not only benefits the environment but also enhances our reputation. Unfortunately, our industry is once again under attack and the demands of implementing this new regulation will be challenging.

I want to emphasize that the future belongs to those who take action and I challenge you to seize the opportunities presented. Having the association work for you through effective communication, active participation, and staying informed, we can all collectively shape a prosperous and sustainable future for our industry. Together, we can overcome any challenges and realize the immense potential that lies ahead.

Thank you for your unwavering support and dedication to our association. I look forward to witnessing our collective success as we transition into a brighter future.

Devon Ades, Apex Logistics, LLC

President, California Trucking Association

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5TH WHEEL E-NEWSLETTER

From the CEO

KEEPING CTA INFORMED & ENGAGED

As we move into the second quarter of the year, I am pleased to report that the California Trucking Association continues to make progress on several fronts. Our commitment to keeping you informed and engaged is stronger than ever, and we are excited to continue growing our communication tools to help you stay informed and connected.

One of these tools is our podcast, Inside the Cab which is available on Spotify. This podcast is dedicated to exploring the issues that matter most to our members, including the latest developments in the trucking industry, government regulations, and technology. Each month I sit down with a guest to discuss a variety of issues that are either impacting our industry, or issues that we need to be prepared for and respond to. Recently I had the honor to have the first interview with Sean Duryee after he was appointed as the new California Highway Patrol Commissioner by Governor Newsom. Guests have also included our 2023 CTA President Devon Ades; NextGen Co-founder Dave Dein and our very own Senior Vice President of Government Affairs Chris Shimoda who provided an indepth look into the Advanced Clean Fleets Regulation during on our inaugural episode. At the time of writing the CEO Message, we are scheduled to have as a guest, Brian Maas, President of the California New Car Dealers Association. You may be asking yourself, “why is Mr. Maas joining the CTA podcast, he represents car dealerships?” Yes, we do transport his members cars to their dealerships, however his members have been the tip of the spear on working to get major reforms to the Private Attorney General Act (PAGA). I’m looking forward to having him tell us about the 2024 PAGA reform ballot initiative campaign “Stop the Shakedowns” and how the business community can work together to get the reform past the finish line. We are excited to have this podcast platform to share valuable insights and perspectives with our members, and we hope you will tune in regularly.

Of course, our work goes beyond just providing information and insights. We are also proud to have a dedicated Government Affairs team that advocates tirelessly to represent your interests in the State Capitol. With more than 2,800 measures introduced this year, our team is focused on defeating bad bills, supporting good measures, and combating bad policies that harm the trucking industry. Check out the latest edition of CTA in Action for a summary of some of the Hot Bills including CTA sponsored AB 376 and job killer AB 627 which would have imposed an outright ban on diesel trucks.

This issue also features the latest on the California Air Resources Board’s Advanced Clean Fleet Rule (ACF). As you know, the ACF imposes strict emissions standards on trucks and other vehicles, which will have a significant impact on your operations. CTA has been engaged on this unrealistic and impractical proposal for 7 years. We established an ACF Working Group, made up of many of our national fleet members which proposed a realistic approach. Unfortunately, and to no surprise, the agency didn’t entertain our suggestions. CTA is committed to fighting against this rule that threatens the viability of our industry and are actively raising litigation fund to challenge this measure. Following the direction of our Board during the 2023 Annual Membership Conference, the team has been working on identifying legal challenges to the rule that we could pursue. It’s disappointing that an industry that has already spent billions of dollars cleaning up their fleet, removing 98.5% of pollutants from its “tailpipes” Is being asked again to do more. Our Association knows there is more to be done but it has to be realistic on how we get there.

In addition to our advocacy efforts, we are also committed to providing our members with the resources they need to succeed. Whether you need help navigating complex regulations, accessing training programs, becoming a member leader or a leader at your company or finding new business opportunities, our membership team is here to support you. In the coming weeks, the Membership team will be rolling out its revised membership on-boarding plan that provides CTA members (and prospects) the tools that come with being a CTA member.

I want to thank each and every one of our members for your continued support of the California Trucking Association. Together, we can overcome many of the challenges that come our way and continue to thrive in this dynamic industry.

Eric Sauer CEO California Trucking Association

LEGISLATIVE UPDATE

2023 Legistlative Session Off To A Great Start

As the first half of the 2023-24 Legislative session kicked off, CTA’s Government Affairs Team undertook the challenge of reviewing 2,645 bills that were introduced in January to identify the legislative priorities for the year.

This session CTA is placing significant emphasis on addressing the ongoing driver shortage and safeguarding the industry from potentially detrimental legislation.

CTA collaborated with Assemblymember Carlos Villapudua (D – Stockton) to address the issue of driver shortage plaguing the trucking industry and introduced legislation to provide funding for entry-level driver programs.

Our team also played a crucial role in leading a coalition of more than 60 industry stakeholders to safeguard the industry from potentially detrimental legislation that would have uprooted the state’s entire supply chain.

Below are a few of our top legislative priorities and their status at the time of publication:

SPONSORED:

AB 376 (Villapudua):

Assembly Bill 376 extends Cal Grant C eligibility to students enrolled in entry-level driver training programs of less than four months at a qualifying post-secondary institution and contains oversight provisions for the California Student Aid Commission. This bill has a sunset date of January 1, 2028. Programs must comply with FMCSA driver training requirements and be offered at a qualifying institution to receive a Cal Grant award. The bill passed the Assembly floor on a unanimous vote and has received zero ‘no’ votes throughout the process.

Status: Senate Education

SUPPORT:

SB 68 (McGuire): Vehicles: safety regulations

Senate Bill 68 authorizes the California Highway Patrol to allow a driver to exceed the hours-of-service limits for tank vehicles transporting flammable liquid during a declared state of emergency. This proposal passed through the Senate with unanimous support. We expect SB 68 to continue making its way through the legislature and reach the governor for a signature. This

measure has also made its way out of the Senate without any opposition.

Status: Assembly Transportation

AB 1748 (Ramos): Logistics use projects: sensitive receptors

AB 1748 requires specified local agencies to impose a 300-foot setback requirement on parcels that are adjacent to sensitive receptors and include a warehouse that is larger than 400,000 square feet unless the local agency adopts specified alternative policies. CTA has worked with the author on amendments that make it a better solution than other warehouse- related measures.

Status: Failed House of Origin Deadline (May be acted upon Jan 2024)

OPPOSE:

AB 627 (Jackson): Heavy-duty trucks: grant program: operating requirements

Disguised as a grant program, AB 627 proposed an outright ban on diesel truck operations and created a grant program without a funding mechanism. CTA led a coalition of more than 60 organizations and worked with members of the Assembly Transportation Committee to ensure the failure of the bill before a

hearing was even granted.

Status: Hearing canceled at the request of the author – failed policy deadline

AB 1000 (Reyes): Qualifying logistics use projects

AB 1000 would prohibit local agency approval of a “qualifying logistics use” (e.g., a warehouse of 100,000 or more square feet) within 1,000 feet of a sensitive receptor or 750ft with prescribed mitigation measures. These measures include conducting cumulative analysis of the air quality impacts of the warehouse development project and for a local agency to post information on its website that is easily accessible and understandable by the public and at least one scoping meeting within a mile of the project site.

Status: Failed House of Origin Deadline (May be acted upon Jan 2024)

Above Photo, Clockwise: Chris Shimoda, Sr. Vice President of Government Affairs / Bernice Creager, Director of Government & Public Affairs / Nick Chiappe, Government Affairs Associate / Hayden Tallman, Government Affairs Coordinator continues

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GRASSROOTS EFFORTS

In January, CTA Member Western States Oil hosted Senator Dave Cortese at their facility in San Jose. Senator Cortese is the Chair of the Senate Labor Committee and a member of the Senate Transportation Committee. The Senator has been serving in the legislature since 2020 representing District 15, which encompasses the majority of Santa Clara County. Prior to serving in the legislature, he served on the Santa Clara County Board of Supervisors for 12 years.

Western States Oil is a family-run company headquartered in San Jose that hauls fuel, lubricants as well as other materials throughout the state. We were joined by CTA members Valley Pacific Petroleum Services and Cemex to discuss the Advanced Clean Fleet (ACF) regulation with the Senator.

During the tour, the Senator had the opportunity to see firsthand the deployment of electric charging infrastructure and the limitations of deploying the current technology for heavy-duty vehicles during ACF’s proposed timeline. The discussion that followed the tour was focused on the impacts the ACF rule will have on the industry, providing feedback on the challenges each member will face implementing such a disastrous policy.

As part of our grassroots efforts, CTA member All-State Tank Lines hosted Senator Mike McGuire at their facility in Santa Rosa in February. All State Tank Lines is a family-operated business specializing in hauling aviation fuel for various entities including CAL FIRE during wildfire emergencies to refuel firesuppressing aircraft.

During the tour, All-State Tank Lines shared the limitations that Intrastate Hours-of-Service Regulations had on their operations during wildfire emergencies, where only interstate hours of service were waived. This issue caused delays in the transportation of aviation fuel that CalFire needed to effectively fight the wildfires in Northern California.

Senator McGuire listened to this concern and acted to remedy this issue by introducing SB 68.

These are the critical outcomes from legislative tours and why CTA values all our members’ help in making these happen. We greatly appreciate the William family and All-State Tank Lines for meeting with the Senator and sharing this and other issues our industry is facing.

If you are interested in hosting a legislative tour, contact Nick Chiappe at nchiappe@caltrux.org. continues

LITIGATION UPDATE

Transport Refrigeration Unit Fees

The Transport Refrigeration Unit (TRU) litigation supported by the Refrigeration Carriers Conference will argue that CARB does not have the legal authority to establish fees in new programs without explicit legislative intent. A ruling in this case will set precedent for CARB’s authority to establish fees in future programs. The case will be heard in July and a ruling should come shortly after the hearing.

Warehouse Indirect Source Rule

CTA filed litigation against the South Coast Air Quality Management District (SCAQMD) in August 2021 for their illegal warehouse tax for larger sized facilities located in the South Coast Air Basin called the Warehouse Indirect Source Rule. The rule requires facility

owners and operators to acquire zeroemission vehicles, equipment, charging infrastructure or pay a mitigation fee to comply. Other air districts such as San Diego Air Pollution Control District and even the State are considering a warehouse indirect source rule. CTA’s partial motion for summary judgment was heard in April 2023 and is now waiting for the judge’s ruling on the issue.

AB 5 – IOO Ban

CTA continues our fight to rescind the onerous AB 5 law which ruled independent truck drivers should be classified as employees. CTA recently refiled our complaint in court to reflect new evidence that can be submitted to the record following the decision of Olson v. California. In this case, a court unanimously upheld the plaintiffs (Uber and Postmates) had credible

standing that AB 5 violated their rights under the equal protection clause of the Constitution. What differs in Olson, the court determined there was enough evidence found in tweets and comments made by AB 5’s author Lorena Gonzalez to plausibly allege AB 5 unfairly targeted companies. The hearing schedule for our case is now pushed back to Fall 2023.

ADVANCED CLEAN FLEETS RULE

On Friday, April 28, 2023, the California Air Resources Board (CARB) adopted the Advanced Clean Fleets (ACF) rule, which requires 100% of new mediumand heavy-duty vehicle sales to be zero-emission vehicles (ZEVs) by 2045. This groundbreaking move sets a new standard for clean transportation and will significantly reduce greenhouse gas emissions and air pollution in California. The ACF rule builds on California’s existing regulations, which already

require a percentage of new vehicles sold to be ZEVs. Under the new rule, California will require fleets to purchase ZEVs when they replace or add vehicles, with larger fleets required to transition more quickly than smaller fleets. By 2035, all public transit fleets and large private fleets will be required to operate 100% ZEVs.

While the ACF rule is a significant step forward for California’s efforts to combat climate change, it also poses challenges for the supply chain.

CTA has, for years, urged CARB to listen to trucking experts regarding how the industry can successfully deploy

zero-emission trucks. However, CARB has outright ignored the nation’s leading fleets and has put forth an overly ambitious, unrealistic, and unfeasible proposal.

The ACF rule adopted by CARB is deeply flawed and did not take into account the lack of charging infrastructure, the low availability of electric trucks, the added weight batteries will add to these vehicles, the environmental impact of battery production and disposal, and the potential impact on smaller trucking companies that do not have the resources to overturn their operation in such a rushed timeframe.

Over the following weeks, CTA’s leadership has been setting the record straight talking with various journalists to spread the word on the disastrous effect this rule will have on the trucking industry.

CTA is hosting meetings throughout the state to gauge the interest of members to pursue the next steps including challenging the rule in court.

For additional information on this rule and potential litigation please contact Hayden Tallman by emailing: htallman@ caltrux.org

ONCE IN A CENTURY OPPORTUNITY

In honor of Kenworth’s 100 year anniversary, they are releasing a special edition T680 truck. The T680 Signature Edition is only available this year. If you want to reward a driver in a memorable way, here is your chance. But hurry, trucks like these only come around once every 100 years.

TOP CRITICAL INDUSTRY ISSUES

ATRI survey shows driver shortage top concern in California

BY STEVE BRAWNER CONTRIBUTING WRITER

The driver shortage was the top concern among California’s motor carrier officials, suppliers and other trucking stakeholders in the latest American Transportation Research Institute’s “Critical Issues in the Trucking Industry –2022” survey, while fuel prices was the top concern across the industry nationally.

Fuel prices was number four in California. The state’s second-ranking issue, independent contractor status, and thirdranking issue, zero-emission trucks, were not in the top 10 nationally.

The survey of drivers, motor carrier personnel and other industry stakeholders was open for responses from Sept. 6 through Oct. 7, 2022. Respondents were asked to choose between 28 critical issues. The issues they ranked as most important were valued at three points, while those ranked second were assigned two points and those ranked third received one point.

In California, 74 industry officials and suppliers responded. ATRI’s California report includes all respondents except drivers. The Institute does not include drivers in any of its state reports because, compared to motor carrier officials and others, drivers are not as closely associated with a particular state.

Respondents also ranked three preferred strategies selected by ATRI for each issue. They could write in

their own preferred strategy.

The top strategy for addressing the driver shortage, both in California and nationally, was “Support outreach initiatives targeting high school students and young adults.” The report noted that a third of truck drivers are over age 55.

The second most preferred strategy in California and third nationally was “Advocate for regulatory changes to allow a state to administer a driving skills test to any out-of-state commercial driver’s license (CDL) applicant, regardless of where the applicant received driver training.”

The third most preferred strategy in California and second nationally was “Work with industry insurers to identify ways to expand coverage for younger drivers as part of the Safe Driver Apprenticeship

The top 10 issues nationally were as follows:

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Program.” That program allows up to 3,000 18-20-year-olds to engage in interstate freight commerce at any one time, but ATRI has found that 50% of small fleets and 30% of large ones said insurance costs are a significant barrier.

The independent contractor status issue ranked second in California, where the environment is especially challenging. A state Supreme Court decision in 2018 and a state law passed in 2019 presume that a worker is an employee unless their arrangement satisfies all three criteria of an “ABC” test:

(a) the worker is free from control and direction in doing the work;

(b) the worker performs work outside the hiring company’s usual course of business; and

(c) the worker is customarily engaged in an

TOP CRITICAL ISSUES

independent trade, occupation or business. Some occupations are excepted, but trucking is not one of them.

To address the independent contractor status issue, the top-ranking strategy in California was “Continue to defend against legislation that limits the use of bona fide independent contractors in the trucking industry.” Second was “Encourage state laws that establish a safe harbor for bona fide independent contracting and/ or an appropriate trucking-specific test for independent contractor status and allow motor carriers to require safety training or mandate equipment without jeopardizing the independent contractor’s status.” Third was “Research the impact on the driver shortage when independent contractor status is severely narrowed or banned.”

Zero-emission trucks was the third-ranking issue in California but, like the independent contractor status issue, did not appear in the national top 10. The top strategy among the state’s respondents was “Analyze the total cost of ownership for zero-emission trucks.” Second was “Advocate for market-based approaches for advancing zero-emission

Results among motor carrier personnel nationally were as follows:

1. Driver shortage

2. Driver retention

3. Fuel prices

4. CSA

5. Economy

6. Lawsuit abuse reform

7. Insurance cost/availability

8. Diesel technician shortage

9. Detention/delay at customer facilities

10. Truck parking

trucks and fueling infrastructure, including federal and state financial incentives.”

Third was “Assess how zero-emission truck purchases may impact diesel and ZET aftermarkets, residual equipment values, and fleet turnover cycles.”

The national results of the 18th annual survey were released Oct. 22 at the American Trucking Associations’ Management Conference & Exhibition in San Diego. More than 4,200 responded to the survey, the most ever. Last year, more than 2,500 responded.

Professional truck drivers represented

Among commercial drivers, the results were as follows:

1. Truck parking

2. Fuel prices

3. Driver compensation

4. Detention/delay at customer facilities

5. Speed limiters

6. Economy

7. Hours-of-service rules

8. Electronic logging device mandate

9. Driver training standards

47.2% of the respondents nationally, while motor carrier executives and personnel were 38.8% and other industry stakeholders were 14%. Those included industry suppliers, driver trainers and law enforcement.

This year’s survey saw a significant increase in commercial drivers, who in 2021 represented 24.1% of respondents – about half of this year’s percentage. With more driver respondents, issues such as fuel prices and truck parking ranked higher than they

10. Transportation infrastructure/ congestion/funding continues

have in the past. Many of the respondents were owner-operators, who had been especially hard hit by high diesel prices.

Four issues appeared in the top 10 nationally among both motor carrier personnel and commercial drivers. Fuel prices was second among drivers and third among motor carriers, while the economy was fifth among motor carriers and sixth among drivers. Truck parking was ranked by drivers as their top concern, and its growing importance to the industry was reflected in its number 10 ranking by motor carriers. The other shared concern nationally was detention/delay at customer facilities, which was fourth among drivers and ninth among motor carriers.

The driver shortage fell to number two after five years on top. While it was no longer the top-ranking critical issue nationally, it received a higher percentage of first-place votes at 12.2% than fuel prices. It was number one among motor carriers but was not in the top 10 among drivers. The American Trucking Associations says the industry currently is short 78,000 drivers, an amount that could reach 160,000 by 2031.

ATRI President and Chief Operating Officer Rebecca Brewster noted that workforce issues continue to be top of mind for motor carrier personnel nationally, with the driver shortage and driver retention at numbers one and two and the diesel technician shortage at number eight. That was similar to last year’s results, when the driver shortage and driver retention were the top two among motor carrier personnel while the diesel technician shortage was seventh.

Fuel prices, which had not been in the top 10 nationally since 2013 when it was number eight, jumped to the top of the list nationally and was fourth in California as fleets and owner-operators dealt with high fuel costs in 2022. Nationally, motor carrier personnel ranked it third while commercial drivers ranked it second. Owner-operators ranked it as their top concern for the second year in the row.

“It’s interesting because the very first one of these surveys we did in 2005, the number one and number two issues overall were fuel costs and driver shortage,” Brewster said. “Fast forward to

2022, that’s the same top two issues.”

She noted that the inaugural survey came after Hurricane Katrina struck New Orleans. Fuel supplies were down and prices had increased.

Californians and national respondents both said the top strategy for addressing the issue was “Advocate for federal actions that help stabilize the supply of fuel and minimize price volatility.” Second nationally was “Research potential factors that may be affecting fuel availability and pricing volatility.” That was Californians’ third choice.

Californians’ second choice was “Promote financial incentives for alternative and renewable fuels to support growth and reduce costs during development and market expansion.” Nationally, only 6.8% chose that strategy. ATRI’s 2022 Operational Costs of Trucking report found only 7% of respondents used some form of alternative fuel.

Ranking number five in California and number eight overall nationally was the Federal Motor Carrier Safety Administration’s Compliance, Safety, Accountability

measurement system. CSA first appeared in 2010 as the number two issue, was number four in 2011, and was number one in 2012. It has not left the top 10 since.

Driver retention was sixth in California and seventh nationally, while driver compensation was seventh in California and fourth nationally. Driver compensation entered the top five nationally in 2019 and hasn’t left. It was ranked third by commercial drivers but was not in the top 10 among motor carriers. Company drivers ranked it first while owner-operators/independent contractors ranked it third.

The economy was tied for eighth in California, while it was fifth nationally. It made its first appearance in the top 10 nationally since 2020. Brewster said the high ranking nationally was the result of a number of factors: inflation, fuel prices, and, as demonstrated by many of the write-in comments, difficulties in obtaining equipment and parts because of supply chain issues.

Rounding out the top in California was lawsuit abuse reform, which was tied for eighth here and was number 10 nationally,

and detention/delay at customer facilities, which was 10th in California and sixth nationally. It entered the top 10 nationally in 2019 and has remained there since.

Two issues appeared in the top 10 nationally but not in California’s top 10. Number three was truck parking, which has been a top five issue since 2015. Nationally, it was the top concern among truck drivers, who were not included in California’s results. Both company drivers and owneroperators/independent contractors ranked it second, with company drivers ranking driver compensation first while owner-operators/ independent contractors chose fuel prices.

Brewster noted that truck parking reached number 10 among motor carrier personnel nationally after long being ranked high by drivers.

“That, I think, is a reflection of the fact that they realize this is a big issue that’s impacting their ability to find and keep drivers,” she said. “We talk about wanting more women in the industry, but if we can’t provide safe parking, it’s not going to attract a lot of women into the industry.”

TOP CRITICAL ISSUES

Speed limiters, which was number nine nationally, entered the top 10 for the first time after being ranked there by drivers for several years. Drivers this year ranked it fifth, and more than one out of five ranked it as their top concern. The ranking comes after the FMCSA issued a notice of intent to move forward on a speed limiter rulemaking in 2023.

Falling out of the top 10 nationally were the diesel technician shortage, which in 2021 was 10th, and transportation infrastructure/congestion/funding, which ranked eighth the previous year. It was number 10 on the driver list but didn’t make the motor carrier list.

Brewster said that result may be tied to the passage of the federal Infrastructure Investment and Jobs Act in late 2021.

“Maybe that is a reflection of the fact on the carrier side, they feel like, ‘Well, we now finally have a signed infrastructure law in place, and so now we’re going to finally start to address the issues,’” Brewster said. “And maybe on the driver side, it’s, ‘Well, we’re still sitting stuck in traffic congestion.’”

Looking Ahead

Devine’s Vellutini celebrating the past, looking to the future

BY STEVE BRAWNER CONTRIBUTING WRITER

PHOTOGRAPHY BY CHRISTIAN KOSZKA HISTORICAL TRUCK IMAGES COURTESY DEVINE INTERMODAL

Even as Devine Intermodal celebrates 100 years in business, its president, Karen Vellutini, has her eyes on the future.

“We’ve survived a hundred years because we’re always looking ahead,” she said. “What’s ahead of us, and how can we best adapt. How can we be nimble to get to where we need to be? What’s on the horizon? What’s the next thing? We’re always looking ahead. … It’s part of our DNA.”

The company’s official name is Devine & Son Trucking Company. As Vellutini explained, Jim Devine was already thinking about the future when he started the company with one truck in 1923, the year the “& Son’ – Jim Devine Jr. – was born.

Devine Intermodal operates roughly 250 trucks, about half driven by employee drivers and the rest owner-operators. It has about 35 office staff members. About 75% of its business is intermodal, 20% is truckload and the remaining 5% is warehousing. It serves all ports and rail ramps in Northern California and Northern Nevada. It mostly handles agricultural products and processed foods on the exports side and mostly consumer goods on the imports side. While it has 48-state operating authority, Vellutini said it focuses on operations in California, Nevada, and Arizona.

The company started in the Sacramento area and has reinvented itself every 20 years, Vellutini said. The 1920s and ‘30s were focused on establishing itself and developing its footprint. The company started by hauling mostly lumber and agricultural products and added trucks and drivers during those years, even during the Great Depression. In the 1940s and 1950s, it grew its fleet size and expanded its geographical service area.

In the 1960s and 1970s, the company adapted to intermodalism, and then in the 1980s and 1990s it grew its intermodal brand. Also, during that time, the Devine’s sold their stake in the company to John Drewes, its CEO and owner.

The 2000s and 2010s were focused on acquisitions. Devine acquired a like-sized company in the Central Valley, a truckload carrier, a Reno-based trucking company, and a Fresno-based drayage company.

“We’d always served those markets, but having a base of operations in those places really helped us grow even more than we were doing organically,” she said. “And, John’s leadership through our evolution and

acquisitions has been instrumental in the growth path of Devine.”

Vellutini said the company’s culture has enabled it to expand and succeed. Soon after it opened its Reno office, it hired a manager with warehousing and thirdparty logistics experience who asked if the company had ever considered running those kinds of operations. That question led to Devine offering those services.

“I’m really proud of our company culture,” she said. “It fosters people being creative and generating ideas. We’ll throw something on the wall and see if it sticks. And it’s fun. This is a tough business. It’s a stressful business. But, we have fun in the process. We’re a place that fosters collaboration within departments, across departmentally, with our drivers as well. I’m really proud of the team we have. It really is a team atmosphere.”

Looking ahead, Vellutini expects the next 20 years to be a time of increased adaptation – to zero emissions vehicles, regulations, and technologies such as driver interfaces, self-driving and real-time cargo tracking.

Vellutini came to the company in 2002 after working nearly 14 years in the industry. She grew up in Sonora, CA in the foothills with no trucking background and then studied international business at San Diego State University, ultimately graduating from Fresno State University.

Vellutini then went to work as a sales representative in San Francisco for Singapore-based Neptune Orient Lines (NOL) and remained with the container shipping company for nearly ten years. When she started in the industry, the biggest ships were 4,500 TEUs, or twenty-

"FOR ME, IT WASN’T ABOUT PROMOTING WOMEN IN THE INDUSTRY AS MUCH AS IT WAS PROMOTING THE INDUSTRY AS A WHOLE AND EDUCATING PEOPLE AND TRYING TO BRING NEW PEOPLE INTO THIS INDUSTRY. IT WAS ABOUT PROMOTING IT AND TEACHING PEOPLE HOW INTERESTING IT REALLY IS."

foot equivalent units, and were about the size of three football fields. Now the biggest liners are nearing 24,000 TEUs.

“I still remember being on the bridge of a ship my very first time and watching containers get loaded and unloaded on the ship and being completely in awe of the whole process, and so I was smitten,” she said. “That was it. I was in it.”

After NOL acquired American President Lines (APL) in 1998, she worked under the APL umbrella for an additional four years.

In late 2001, Vellutini moved to Sacramento and was telecommuting and making the long train ride commute to Oakland. A mutual customer connected her with Devine Intermodal’s thenpresident, Dick Coyle. She was looking to end the commute, while he was looking for someone with her skill sets and business acumen.

“It was win-win,” Coyle remembered from his current home in Boise. “She filled the role, the void that we had in our company right away, and it was good for her because we were local and it was a good continues

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OFFICIALLY

Circa 1957 Lumber Loading

Circa 1960s Late Parade

Circa 1980 Circa 1970s

company. She had the autonomy from the get-go in her role to kind of make the most of it herself.”

She decided to “jump ship” to use her words and join Devine as its director of sales and marketing. Her experience helped her interact with clientele and navigate the complex webs of international shipping relationships involving ocean carriers, cargo owners, government agencies, unions and others. She later became vice president of sales and marketing and then executive vice president. In that position, she managed sales, customer service, operations, billing, human resources and information technology.

Coyle said she was highly respected throughout Devine Intermodal and was active in the industry. He knew he would be leaving the company in good hands after 32 years as president.

“I never said to myself at one point, ‘Gosh, I’m going to groom Karen,’” he said. “It just kind of happened naturally. Over the years, I tendered more and more of the responsibility to her, and she always rose to the challenge.”

When Coyle left in 2021, Vellutini became president. That’s where she is today, though it wasn’t her intention to be in logistics when she graduated college.

“Logistics, I always say, is something that you tend to fall into,” she said. “Maybe not so much now with logistics being an actual field of study, but it was with my contemporaries. You sort of fell into logistics, and if you’re in it for more than two years, then you’re in it for life. You’re kind of struck. You’re fascinated by the process. And I enjoy logistics. I enjoy the puzzle. I enjoy putting a service together that fits our customers and our drivers. I also enjoy now,

in this stage, leading this amazing team. The folks here in this office, they come in with two goals every day. One of them is to bring value to our customers every single day, and the other is to make sure that our drivers have the smoothest, most efficient day possible. And I really enjoy leading this team and coaching these people.”

Along the way, Vellutini became involved in Women in Logistics, where she served as president for about a dozen years and now serves as chair. When the group was founded in 1983, its focus was promoting women. That changed as women became more prevalent in the industry. Vellutini said success comes because of aptitude and attitude and, as one boss once told her, opportunity.

“For me, it wasn’t about promoting women in the industry as much as it was promoting the industry as a whole and educating people and trying to bring new people into this industry. It was about promoting it and teaching people how interesting it really is,” she said.

Vellutini and Devine Intermodal have been active in the CTA, the Nevada Trucking Association, and the American Trucking Associations. When someone is needed to talk to lawmakers,

Circa 1957 Fleet

"THIS IS A TOUGH BUSINESS. IT’S A STRESSFUL BUSINESS. BUT, WE HAVE FUN IN THE PROCESS."

—KAREN VELLATUNI, PRESIDENT, DEVINE INTERMODAL

she is ready to do her part.

“We need to collectively have a voice at our state Legislature, at the various regulatory bodies in California that regulate trucking, and to be an advocate for the trucking industry,” she said. “[CTA staff are] very knowledgeable with all of the different regulatory bodies and legislators and what’s coming down the pipe. They’re very involved in that process. And, in return, they educate us on what we need to be on the lookout for, how we need to adapt and change to these ever-changing rules and regulations. Part of being a member of the industry is being part of the CTA.”

Eric Sauer, the CTA’s CEO, said Vellutini last year was a big reason the association was able to help pass a new California law reducing detention and demurrage charges for containers not picked up or returned to their ports during a specified time. The new law prohibits intermodal equipment providers and terminal operators from charging fees in certain circumstances when the delay is not the hauler’s fault, such as when the container isn’t available for pickup or when the terminal is too congested to accept the container and turns the carrier away.

“Her input and engagement on that bill really helped us get the ball across the goal line,” Sauer said.

Sauer said Devine Intermodal has a

long history of supporting the CTA. Jim Devine Jr. was the association’s president in 1966, while Coyle was president in 2015. When CTA hires a new employee, it takes them on a tour of Devine’s nearby Sacramento facility to see how a trucking operation works.

“They are one of those members that whenever you need their assistance or expertise and their knowledge on the industry and how proposals and laws are going to impact the trucking industry, they’ve been one of our go-to members. … They’re very accommodating to our requests to be involved,” he said.

In addition to her CTA involvement, Vellutini also is the second vice president of the American Trucking Associations’ Intermodal Carrier Conference, a member of the Port of Oakland’s Port Efficiency Taskforce, a member of the World Economic Forum’s Blockchain for Supply Chain working group, a member of the U.S. State Department’s International Speaker Program, and an advisory board member for California Maritime Academy’s school of International Business and Logistics. She is also a guest lecturer at California State University, San Francisco. Her company becomes involved in community charities that are important to its employees.

Vellutini said her various involvements have two things in common: driving change and advancement in the logistics industry,

and educating others about it.

“Nobody knew what supply chain was until we had a supply chain meltdown,” she said. “You go to family events, and everyone was like, ‘Well, I don’t know. She does something with, like, moving freight. I don’t really know what that is.’ And all of a sudden, you’re the most interesting person in the room,” she said with a laugh.

“All of a sudden now, everybody wants to know about supply chains, and so I think that it’s important to be involved in the industry just to get the general public informed about what it means, what the supply chain is, how it’s important to everyday life, how your cargo manages

“I NEVER SAID TO MYSELF AT ONE POINT, ‘GOSH, I’M GOING TO GROOM KAREN.’ IT JUST KIND OF HAPPENED NATURALLY. OVER THE YEARS, I TENDERED MORE AND MORE OF THE RESPONSIBILITY TO THE CHALLENGE."

—DICK COYLE, FORMER PRESIDENT, DEVINE INTERMODAL

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Vellutini has spent three and a half decades working in the supply chain, so she’s an expert in the field. She said the COVID-19 pandemic exposed both the supply chain’s weaknesses and its resiliency.

“Baling wire, duct tape and sheer will held the supply chain together for a long time, and then we had a meltdown,” she said. “And I think it showcased something needs to be done. We can’t just turn a blind eye and expect sheer will to continue to move freight. But I also think it showcased the resilience. There’s been lots of turmoil in the industry, and it demonstrated how the various stakeholders have stepped up to keep things moving. Cargo was still moving and ships were still moving – not as speedily as they once were – but everybody in the supply chain, all the stakeholders, had to change. They

had to do things differently, had to think about things differently. They had to use more technology than they were in the past and collaborate more than they were in the past. They had to share ideas and do things differently.”

Some of the lessons learned have stuck, including the awareness of the need for more collaboration, she said. Other changes are needed, including densifying marine terminal operations as land is not being added to accommodate larger and larger ships. More visibility is needed for all stakeholders to plan better.

While running an intermodal company is an all-consuming occupation, Vellutini does have other interests. For example, she and husband Elliott Roberts like to cook.

“He’s the gardener of the two of us, and so my job is harvest,” she said. “He grows some really wonderful tomatoes, and then my job is to figure out what to do with them and how to best utilize our tomato harvest. I get creative. I’ve made tomato basil jam, chutney, even my own ketchup.”

A son, daughter-in-law and two grandchildren live in Dallas, with a third grandchild coming in June. She visits them either in Dallas or somewhere in between at least four times a year. They call her “Yaya.”

It’s a job she loves.

“You get all of the joy without any of the responsibility,” she said.

Meanwhile, she’s still thinking of ways to celebrate the company’s 100 years in

business. The milestone is mentioned on the company’s website and in its newsletters, and when interviewed in early April she was still considering what kind of event the company should hold in September. The frontrunners at that point were a Devine Intermodal minor league baseball game and a 1920s “speakeasy” themed party.

Either way, she’ll come up with something. She and her company are always looking to the future, even when the future is only a few months away, and even when the future means celebrating the past.

“I was telling someone the other day, I’m talking about it everywhere and to everyone who will listen to me,” she said. “It’s an impressive milestone to be a hundred years old for any company, much less a trucking company.”

CTA EVENTS: Annual Membership Conference

In January, the California Trucking Association and our members gathered in Las Vegas for the 69th Annual Membership Conference. Kicking off the conference was an informative breakout session of the lead by Wayne Partello, Co-founder and CEO of Cuento Marketing and Jamie Reid, a broker for Trucking Proud. During this session, Partello and Reid discussed the importance of having a strong team and various ways to align one’s workforce despite strained resources. After this session, the Safety, Security, and Human Resources Policy Committee met to support CTA’s commitment to safety followed by the President’s Lunch. During the President’s Lunch, the Joe Kent Award was given to the 2022 CTA President Ron Faulkner for his exceptional year as President of the California Trucking Association. During the days second breakout session, Members heard from a panelist of experts on the impact California’s labor laws, the issues facing the trucking industry, the status of the California Fair Pay and Employer Accountability Act, and what to expect in the coming year. The day ended with CTA’s CARGO PAC reception, where Senator Josh Newman joined our members for a celebratory and complementary dinner. CTA’s members, supporters, and friends

are the foundation for CARGO PAC’s success and critical to ensuring the trucking industry has a voice in Sacramento. The following day members enjoyed lunch while the FMCSA’s Executive Director and Chief Safety Officer Jack Van Steenburg provided an update on truck safety regulations and initiatives. Spouses of our members had an opportunity for some fun during the spouse networking event at Annie Oakley Women’s Shooting Range, where they were taught how to use various firearms in a safe and controlled setting. The last day of the conference began with the Golden Jubilee Breakfast, where the long-standing leaders and innovators of the industry gather to celebrate their collective achievements and welcome new

pioneers to the club. Afterward, members sat in on a panel discussion regarding the transition to electric trucks. Members were able to hear from experts in the process of interfacing with utilities, OEMs, and learn about the issues one can expect when first bringing an electric vehicle into daily operations. During Lunch, ATA’s president and CEO Chris Spear gave an update from the American Trucking Association and had a casual conversation about the trucking industry as a whole with CTA CEO Eric Sauer. Finally, during the Inaugural Reception, CTA honored and welcomed its 2023 CTA President, Devon Ades. Devon is following in the footsteps of her father, a former CTA President, and is leading CTA’s transition to the future.

CTA EVENTS: Annual Membership Conference

ATA & CTA CEO, Eric Sauer

ATA President & CEO, Chris Spear at podium

Bruce Mac Rae, UPS introducing Chris Spear

Board Meeting

Members cheer on Devon

CTA EVENTS: Annual Membership Conference

SPOUSE EVENT

Attendee Spouses joined San Bernardino Sheriff and ClA'S first Gentleman Jon Ades at the Annie Oaklie Shooting Range for a fun evening.

CTA EVENTS: Annual Membership Conference

CARGO PAC RECEPTION

The Concerned Americans for Responsible Government Political Action Committee hosted a reception at AMC to thank attendees who contributed to the PAC in 2022

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Contributions to CARGO PAC are not tax deductible for federal or California tax purposes. California state PAC’s may accept a maximum of $9,100 per contributor, per calendar year for candidate support purposes. Corporate Contributions may be accepted and will be used for California elections only. Contributors of $10,000 or more to CARGO PAC and all other California state or local candidates, PAC’s, political party committees or ballot measures in a calendar year must file a California “Major Donor Committee” report as required by law. Membership is valid upon receipt of your contribution. Contributions are non-refundable. Contributions are not deductible as charitable contributions for income tax purposes but may be deducted under other IRS codes. Consult your tax advisor.

CTA EVENTS: Annual Membership Conference

AMC Inaugural Party

CONFERENCE SPONSORS

CTA EVENTS: 2023 Truck Driving Campionships

The 2023 California Truck Driving Championships held on Sunday, June 4 in West Sacramento, witnessed an impressive display of skill, professionalism, and precision as the state’s finest truck drivers competed for the opportunity to represent the Golden State at the National Championships on August 16 -19.

After a fierce day of competition, the winners emerged securing their spots at Nationals including Trino Moreno with Old Dominion Freight Line, who received first place in the four-axle division and took home the coveted 2023 Grand Champion Award.

These exceptional drivers will now represent California and compete against the nation’s best in a bid to claim the national titles:

CATEGORY WINNER

Three-Axle Alfonso Saavedra, XPO

Four-Axle Trino Moreno, Old Dominion Freight Line

Five-Axle Alfonso Pedregon,UPS

Flatbed Johny Pearson, Martin Brower

Sleeper Chris Graham, Walmart Transportation

Straight Truck Ryan Ybarra, UPS

Tanker Truck Sebastian Mora, Mulberry Motor Freight

Twins Alejandro Fonseca, UPS

Package Van Jose Lopez, FexEx Ground

Trino Moreno – 2023 Grand Champion

Winner w CTA President and CTA CEO

Gabriel Baca – 2023 Rookie of the Year

Three-Axle – Winners - Left to Right: Laura Gallardo, UPS (3rd Place) / Alfonso Savedra, XPO (1st Place) / Daniel Nguyen, XPO (2nd Place)

Three-Axle

CTA EVENTS: 2023 Truck Driving Campionships

Tanker Truck – Winners - Left to Right: Brandon Scott Hirst, Walmart Transportation (3rd Place) / Sebastian Mora, Mulberry Motor Freight (1st Place) / Jose Gastelum, Cox Petroleum Transport (2nd Place)

Straight Truck  - Winners - Left to Right: Ruben Tinajero, XPO (3rd Place) / Ryan Ybarra, UPS (1st Place) / Christopher Blystra, FedEx Freight (2nd Place)

Sleeper - Winners - Left to Right: Wayne Bracz, FedEx Ground (3rd Place) / Chris Graham, Walmart Transportation (1st Place) / Luis Garcia, FedEx Ground (2nd Place)

Flatbed - Winners - Left to Right: Louie Loera, McLane (3rd Place) / Johny Pearson, Martin Brower (1st Place) / Ellis Michael, Elite HR Logistics (2nd Place)

Five-Axle - Winners - Left to Right: Adriana Ordaz, J.B. Hunt Transport (3rd Place) / Alfonso Pedregon, UPS (1st Place) /Oscar Blanco, Shamrock Foods (2nd Place)

Four-Axle - Winners - Left to Right: Kristan Pimentel, FedEx Ground (3rd Place) / Trino Moreno, Old Dominion Freight Line (1st Place) / Gabriel Baca, DHE (2nd Place)

CTA EVENTS: 2023 Truck Driving Campionships

Welcome New CTA Members

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28 Bay Area Unit Golf Tournament & President's Dinner

Honoring CTA President Devon Ades

SEPTEMBER

18 Los Angeles/Orange Unit 55th Annual Golf Tournament & Dinner Noon - 6:00pm Coyote Hills Golf Course

21 Virtual Seminar: Sailing Through Your BIT

- 2:00pm

ADVERTISING RESOURCE INDEX

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