Punjabi Trucking Magazine - January - March 2024 by Punjabi Trucking

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January - March 2024

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January - March 2024

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January - March 2024

FROM THE EDITOR Raman S. Dhillon "ROLLING INTO 2024 - A YEAR OF HOPE, UNITY, AND SAFE TRUCKING" As we welcome a new year, the team at Punjabi Trucking Magazine extends warm wishes to all our dedicated readers, contributors, and the entire trucking community. Happy New Year! May 2024 bring you prosperity, joy, and countless opportunities for success. The new year is a moment to reflect on the challenges we've overcome and the triumphs we've celebrated. It's also an opportunity to embrace the future with hope, unity, and a commitment to making our community stronger than ever. In the spirit of optimism, let us carry forward the lessons learned from the past and channel our collective strength into creating a better, more prosperous future. Together, as a united trucking community, we can overcome any obstacles that may come our way. 2023 was a year of resilience, and we salute the unwavering dedication of our truckers who kept our nation moving despite the odds. As we move forward into 2024, let us focus on collaboration and growth. Together, we can achieve more, share knowledge, and elevate the entire trucking industry to new heights. However, as we look ahead with optimism, we must also prioritize safety. The well-being of our truckers is paramount,

and safety should always be at the forefront of our minds. Each journey is an opportunity to reinforce our commitment to safe driving practices and to protect not only ourselves but also the communities we serve. In the coming year, let's continue to invest in training programs, embrace new technologies that enhance safety measures, and encourage open communication within our community. By prioritizing safety, we ensure that every driver returns home safely to their loved ones at the end of each journey. As we collaborate and grow together in 2024, let's foster an environment where every member of the trucking community feels supported and empowered. Whether you're an experienced driver, a fleet owner, or a newcomer to the industry, your contribution is invaluable, and together we can make a significant impact. May 2024 be a year of prosperity, unity, and above all, safety for the trucking community. As we embark on this new journey, let us embrace the opportunities that arise, learn from each other, and continue to rise together. Wishing you a Happy and Safe New Year!

EDITOR Raman S. Dhillon

GRAPHIC DESIGN Orangebox Media Group

press@punjabitruckingusa.com

Official Magazine for: North America Punjabi Trucking Association

ASSOCIATE-EDITOR Satnam Bussan

sales@punjabitruckingusa.com

CONTRIBUTORS Rhea Randhawa Pash Brar Michael Smith Ravinder Dhillon Rupinder Kaur Satnam Bussan

MAGAZINE LAYOUT Ranjit Singh Bhamra

CIRCULATION MANAGER Jessie Dhillon

CONTENT MANAGER Rupinder Kaur Published quarterly by Primetime Multimedia Company LLC 143 Darcy Parkway, Lathrop, CA 95330 Tel: 001 877 806 2525 | Email: info@punjabitruckingusa.com

All Rights Reserved. No material herein or portions thereof may be printed without the written consent of the publisher. DISCLAIMER: Primetime Multimedia Company LLC assumes all advertisers to be reliable and responsible for any and all liability for their claims. The publisher reserves the right to refuse any advertisement it may find unfit for publication. The opinions expressed in articles and features are of the writers and may not be those of the publisher.

TRANSLATIONS Orangebox Media Group

ADVERTISING SALES Raman S. Dhillon

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January - March 2024

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January - March 2024

INDUSTRY NEWS

CONTENTS

Connect with Us

Automann ....................................................... 47

ARTICLES

AWAKO ......................................................... 05

Big Rig Tires & Alignment ......................... 39 BP Lab Services ............................................ 28 CDL Jobs Guru ............................................ 17

tr~k ieMfstrI dy nvyN suqMqr TykydwrW inXmW ƒ iml irhw hY imilAw juilAw huMgwrw[

Gillson Trucking Inc. ..................................... 19

Golden State Peterbilt ................................... 03 Golden Land Trans. Insurance .................... 21 Jagdeep Singh Insurance Agency ................ 45 Kam-Way Transportation Inc .................... 41

Load Broker 411 ........................................... 25 Load Stop ..................................................... 07 Lotus Benefits Corp ..................................... 39 NAPTA ......................................................... 23

NEXA Mortgages ........................................ 35 Orangebox Media ....................................... 15 Prime Drug Testing ...................................... 02 Punjabi Trucking 360 ................................... 27 Primelink Express ........................................ 45 Rev Capital ................................................. 35 Singh Financing .......................................... 29

Driver Recruiting and Retention Still an Issue for Trucking Industry

16 3PL GlobalTranz Asks SCOTUS to Deny Petition on Broker Liability

Eaton Cummins Transmissions Now Available for Daimler Trucks

33 zIro AYimSn Biv~K leI kYlIPornIAw iqAwr nhIN hY[

mhWmwrI qoN bwAd p~CmI q~t qy mwl BwVy dI mMg muV Awaux l~g peI hY

Freight Demand Shifts Back to West Coast After Pandemic

Transcap ........................................................ 13 Sonsray Parts & Service .............................. 24 Volvo Trucks ................................................. 48 Zoom Financial ............................................ 44 6

January - March 2024

Cummins Settles with Feds and CARB for $1.675 Billion in Fines for Emissions Violations in Dodge Pickup Trucks www.punjabitruckingusa.com

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January - March 2024

COVER ARTICLE

tr~k ieMfstrI dy nvyN suqMqr TykydwrW inXmW ƒ iml irhw hY imilAw juilAw huMgwrw[ iek suqMqr Tykydwr ƒ tr~ikMg audXog iv~c ipCly kuJ swlW iv~c v~DdI jWc dw swhmxw krnw pY irhw hY[ ey bI 5 dy igg vrkr kwƒn ny kYlIPornIAW iv~c lwgU kIqw igAw sI ny suqMqr Tykydwr mwfl dI hoNd ƒ Kqrw pYdw kr id~qw hY[ ieh audXog ipCly do dhwikAW qoN ies audXog dw mh~qvpUrn ih~sw irhw hY[

leI pUrI koiSSW kIqIAW hn[ keI swry ivSlySkW dw mMnxw hY qy auhnW ieh is~tw k~iFAw hY ik trMp pRSwsn dy dOr iv~c purwxy inXm vDyry rUVIvwdI sI qy hux ibfyn pRSwsn dy dOr iv~c ieh nvyN inXm jo lwgU kIqy gey auh krmcwrIAW dIAW zrUrqW ƒ iDAwn iv~c r~Kky lwgU kIqy gey hn[

iPr vI ikrq ivBwg ny suqMqr TykydwrW dy pRsqwivq sMGI inXmW dy swry AnumwnW, mu~kdmybwzI dy nwl 55,000 qoN v~D it~pxIAW dy huMdy hoey ies ƒ bdlx

ircrf rIbstweIn ivSlySk ny Awpxy blOg iv~c iliKAw suqMqr TykydwrW dy glq vrgIkrn Aqy pwlxw bwry d~isAw ey ik: AmrIkw iv~c suqMqr Tykydwr dI

January - March 2024

pirBwSw ƒ sMboDn krn vwlw ieh inXm iek krmcwrI AnukUl sMskrn hY jo AYfvokyt sMsQvW Aqy XUnIAnW iv~c KuSI pYdw krygw pr jo bhuq swry kwrobwrW jo AweI sI dI siQqI ƒ brkrwr r~Kxw cwhuMdy hn, auhnw leI icMqw dw ivSw bxygw[ Awpxy Agly ih~sy dy blOg iv~c rIbstweIt kihMdw hY ik: AKIrlw inXm dw kwƒnI pRBwv pwxIAW ƒ muSikl nwl phuMcweygw[ auhnW iliKAw ik ieh rYgUlytrI eyjMsIAW nhIN hn jo ies ivSy www.punjabitruckingusa.com

COVER ARTICLE

qy kwƒn bxwauNdIAW hn sgoN AdwlqW hn tr~ikMg kMpnI dy vkIl, inXmW dI Awlocnw lgwqwr krdy Aw rhy hn[ ikRs spIAr jo ik AmrIkn tr~ikMg AYsosIeySn dy pRDwn hn ny ikhw ik, ieh pRSwsn ny byh~d mMdBwgw PYslw lYNdy hoey swP qy is~Dy imAwr iv~c ies inXm ƒ bdlx dI cox kIqI hY jo swfI splweI ƒ Fwh lwvygw Aqy dyS Br iv~c sYNkVy hzwrW tr~krW dI rozI rotI ƒ kmzor krygw[ 1“1 kWgrs dy mYNbrW Aqy hor skytholfrW nwl iml ky ies glq PYsly vwly inXm ƒ bdlx jW hrwaux iv~c kMm krygw[ AKIrly inXm iv~c iek qbdIlI ieh vI kIqI geI hY ik aupkrnW iv~c invyS krn vwly mwlk Aqy Tykydwr ie~k mwlk vWg hI mMinAw jwvygw[ tr~ikMg Kyqr iv~c rIAl vumYn dI iek it~pxI ny ikhw ik, jo tr~k frweIvr tr~k dy mwlk jW ies qy invyS krdy hn auh hI mwlk Aqy auprytr mMny jWdy hn[ ikauNik auhnW dw invyS aunHW ƒ Awpxy tr~k r~Kx dy Xog bxwauNdw hY[ Agr auh iksy Kws kMpnI leI Awpxw kMm bMd krn dw PYslw krdy hn qW auhnW ƒ ies leI pUrw h~k jW pUrI qrHW suqMqrqw hovygI[

iesdy AKrIly inXm iv~c fIEAYl fwlr dI rkm qy ivcwr krky invyS dy guxwqmk FMg nwl ies inXmW iv~c sihmq ho igAw hY[ krmcwrI leI ieh iek ibhqr mOkw hY ik auh cox kry ik auh ruzgwrdwqw qy AwriQk qOr qy inrBr hY jW Awpxy kwrobwr iv~c[ nvyN inXmW dy mu~K Cy kwrk hn jo purwxy inXmW dy Anuswr hn qy iek suqMqr Tykydwr ƒ pirBwiSq krdy hn[ • mwlk qy kwrobwr iv~c svwlW dI h~d iek Ain~KVvW AMg hY[ • TykydwrW v~loN suivDwvW qy aupkrnW iv~c kIqy invyS dI ku~l mwqrw[ • kudrq Aqy inXMqrx dI ifgrI jo ik ipRMsIpl v~loN id~qI geI hovy[ • lwB jW nukswn dy mOky[ • suqMqr au~dmW dI sPlqw leI loVINdy pihlkdmI PYsly Aqy dUrdrSqw dI mwqrw[ • irSiqAW iv~c sQirqw[ nvyN inXmW iv~c purwxy inXmW dy pihly vwly hI Cy kwrk vrqy hn[ ivSlySkW dw mMnxw hY ik ieh fIEAYl dw nvW inXm jdoN pyS kIqw igAw sI qW ieh is~D hoieAw sI ik ieh inXm purwxy inXm qoN v~Krw hY[ ies inXm iv~c au~c mu~dy Aqy munwPy dy mOky horW ƒ id~qy gey hn[

tr~ikMg audXog dy mu~idAW dy mwhr lwA Prm skopYlwieits ny ies nvyN inXm ƒ bhuq psMd kIqw hY Aqy ikhw ik ies kwƒn iv~c iek qbdIlI hoxI cwhIdI hY ik iksy Kws kwƒn jW inXmW dI pwlxw krn dw audyS inXMqrx dw sMkyq nw hovy[ iesdy nwl hI mwlk dI sur~iKAw jW guxv~qw leI kIqIAW kwrvweIAW ies inXMqrx dw sMkyq ho skdIAW hn[ Prm ny ieh vI is~tw kiFAw hY ik fIEAYl ifpwrmYNt ieh sp~St krdw hY ik AweI tI iek iv~lKx pRikrqI ƒ mwnqw dy irhw hY[ auh ieh vI mMn irhw hY ik frweIvrW ƒ sMBwivq qOr qy Aijhy lwiesYNsW dI loV hY jo frweIvrW dy mukwbly ivSyS hunr dI vrqoN krn[ sIfIAYl vwly frweIvr Awpxy kwrobwr ƒ pihlkdmI idMdy hoey ivSys hunr dI vrqoN krdy hn[ rIbstweIn Awpxy blOg iv~c tr~ikMg audXog dy ih~sydwrW ƒ ieh kihMdw hY ik ieh suqMqr Tykydwr ƒ pyS krn leI rYgUlytrI audXog dy hukm AKIrly nhIN hn ieh fIEAYl dw iek Aijhw inXm hY nw ik iek kwƒn[ ijvyN kYlIPornIAW iv~c eybI5 nwl Adwlq PYslw kr rhI hY ausy qrHW iehnW kwƒnW dw PYslw vI AdwlqW hI krngIAW[

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January - March 2024

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New Independent Contractor Rule Receives Mixed Response from Trucking Industry

he definition of an independent contractor in the trucking industry has faced increased scrutiny in recent years. In California, AB5, the gig worker law, has threatened the very existence of the independent contractor model that has been an important part of the industry for decades. Yet, with all of the conjecture, litigation, and over 55,000 comments on the proposed federal rule on independent contractors, the Department of Labor (DOL) has done very little to change it. Many analysts have concluded the new rule from the Biden Administration which tends to lean toward the needs of employees, is actually very similar to the old rule that was under effect during the more conservative Trump Administration. 10

January - March 2024

In his blog, Independent Contractor Misclassification and Compliance, analyst Richard Reibstein writes, “The final rule addressing the independent ‎contractor (IC) status of workers in the U.S. is an ‘employee-friendly’ version that will ‎undoubtedly prompt jubilation among worker advocate organizations and unions while creating ‎consternation on the part of many businesses and otherwise legitimate ICs that want to retain IC ‎status.” In the next portion of his blog post, however, Reibstein writes, “The legal impact of the final rule, however, will hardly ripple the waters. After all, it is ‎the courts that create law on this subject, not regulatory agencies.” Trucking company advocates were

quick to criticize the rule. American Trucking Associations President Chris Spear said, “It’s unfortunate that the Administration has chosen to replace a clear and straightforward standard with a tangled mess that weakens our supply chain and undermines the livelihoods of hundreds of thousands of truckers across the country. ATA will work with members of Congress and other stakeholders to defeat this ill-advised rule.” One change in the final rule was that a contractor’s investment in equipment could be considered the same as an employer. A comment from Real Women in Trucking said, “Truck drivers who wholly own or independently finance a truck are true owner-operators because ‘[t]his type of investment gives [them] the ability www.punjabitruckingusa.com

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to keep their truck if they decide to stop working for any particular company, and accordingly some measure of economic independence.’”

• Amount of initiative judgment or foresight required for the success of the claimed independent enterprise • Permanency of the relationship

In its final rule, DOL seems to have agreed with that idea by considering the “qualitative” manner (rather than dollar amount) of an investment “is a better indicator of whether the worker is economically dependent on the employer for work or is in business for themselves.”

The old rule used the same six factors as the new rule. But when the new DOL rule was first proposed, analysts said it differed from the old rule in that the latter elevated issues of control and opportunity to profit above the others. The totality of the circumstances approach in the new rule has all six factors as equal.

The six key factors in the new rule that define an independent contractor are quite similar to the old rule. Those factors include: • Extent to which the services in question are an integral part of the employer’s business • Amount of the contractor’s investment in facilities and equipment • Nature and degree of control by the principal • Opportunities for profit or loss

The law firm Scopelitis, which specializes in trucking industry issues, liked the new rule, saying, “The final rule includes a change so that actions taken for the sole purposes of compliance with a specific law or regulation are not indicative of control. However, actions beyond compliance with a specific law or regulation and those taken for the putative employer’s safety or quality

control standards may be indicative of control.” The firm concluded, “The Department [DOL] clarifies that it recognizes the distinctive nature of CDLs and further recognizes that drivers performing work requiring such licenses are likely using specialized skills as compared to drivers generally. As with any worker, consideration of whether a driver with a CDL uses that specialized skill in connection with business-like initiative determines whether this factor indicates employee or independent contractor status.” In his blog, Reibstein reminded trucking industry stakeholders that regulatory industry edicts are not the final say in what defines an independent contractor and that DOL’s rule is simply an interpretation and not an actual law. In the end, courts will decide, as they are currently doing in California with AB5.

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January - March 2024

INDUSTRY NEWS

Driver Recruiting and Retention Still an Issue for Trucking Industry

wo years ago, the American Trucking Associations (ATA) estimated that the U.S. needed to recruit over 80,000 new truck drivers to make up for shortages in the industry. This year that number has dropped to less than 60,000 but remains a lingering problem. In comments at the 2023 Management Conference and Exhibition in October in Austin, Texas, ATA Chief Economist Bob Costello noted the new estimates are “cyclical trends” and the “underlying problems of the driver market have not gone away.” One reason for the change in numbers was the recent bankruptcy of LTL carrier Yellow Corp. which released some 30,000 workers, most of them members of the International Brotherhood of Teamsters, into the labor pool. 12

January - March 2024

According to Costello, the recruiting and retention of drivers is an international problem, and while the labor market has gotten easier for carriers, it’s still “not easy,” he said.

Data Download According to a report published in October from Nashville, Tennesseebased hiring and retention gurus Professional Driver Agency (PDA) and Conversion Interactive Agency, the current “freight recession of 2023 continues to affect the entire industry and influence driver recruiting and retention.” The report is the result of thousands of phone calls with drivers discussing their issues and recording their feedback. The report offers advice on how trucking companies can be ready when

this current freight recession is over, and the industry is again dealing with driver shortages. Another big problem is retaining drivers when times are slow. One of the first things that companies should do, according to PDA, is not “turn off recruiting efforts” because it will take “twice as long to rebuild their driver recruiting pipeline than carriers who invest in their employer brand.” Second, the report advises companies to invest in technology that will make recruiting easier and “smarter.” At a time when a company may want to downsize its recruiting personnel, it’s wise to replace those recruiters with “today’s technology.” Third, companies need to keep drivers on the road. The report says, “If drivers are not moving, they are not making money” and www.punjabitruckingusa.com

that maintenance issues should not become a “compensation problem. Communicating with drivers is essential. The report says, “A little coaching and communication can go a long way with reducing driver frustration.” It reminds companies that the “longer a driver goes without communication, the longer they can sit and look at offers from other carriers.

Use Social Media In the recruiting category, PDA recommends that companies establish a footprint on top mobile apps such as YouTube, Facebook, TikTok and Instagram because these are the most widely used apps by drivers. According to the report, “Social media advertising was the #2 best performing cost-perhire strategy” in 2023. Search engine marketing (ads on Google or Bing) was the top performing strategy. Another excellent recruiting strategy is for companies to feature images of their equipment in ads. The

report recommends that a company should build an “asset library,” pictures of the actual equipment that drivers will be using. Such a library “shines through the noise of the same stock photos of drivers all over the internet.” One of the key frustrations for many drivers is inadequate or malfunctioning equipment. Above all, bad equipment costs drivers’ money. Maybe the most important part of the driver recruiting game is pay. To that end, PDA urges companies to understand driver pay in the regions of the country where they are recruiting. The report says, “Average weekly driver pay is a valuable data set” for both recruiters and the company’s sales team. Pay has risen significantly since the beginning of the pandemic with retention bonuses increasing nearly 90% since 2019.

Use New Technology Dallas, Texas-based Solera Fleet Solutions argues the key to driver retention is to give drivers modern technology. The company’s Omnitracs software offers a “single place to enter and access load information, logbooks, navigation and more. Solera contends that, “On the road, drivers are only paid when moving. By employing a driver workflow application that connects systems and processes, you'll limit the time their rigs sit idle. Solera boasts that their driver workflow application can make drivers’ lives easier. Many companies are already expanding their use of technology, from more efficient logging devices to dual-facing dash cameras which can document and support drivers’ actions in the event of a crash. Increased use of technology will help to recruit younger drivers who have grown up in a digital world.

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January - March 2024

INDUSTRY NEWS

tr~k ieMfstrI audXog leI frweIvrW dI BrqI krnw Aqy Dwrnw Ajy vI iek mu~dw hY[ AmrIkn tr~ikMg AYsosIeySnW ey.tI. ey. ny do swl pihlW Anumwn lgwieAw sI ik kwrobwr dI Gwt ƒ pUrw krn leI AmrIkw ƒ 80,000 qoN v~D nvyN tr~k frweIvrW dI BrqI krn dI loV hY[ ies swl ieh igxqI G~t ky 60,000 ho geI hY pr ieh Ajy vI iek muSikl bxI hoeI h[ 2023 AkqUbr iv~c eytIey dy mu~K ArQ SwsqrI bOb kOstyly ny AOsitn, tYksws iv~c hoeI mYnyjmYNt kwnPrMs Aqy pRdrSnI dOrwn not kIqw sI ik ieh nvyN Anumwn ''c~krvrqI ruJwn'' hn Aqy frweIvr dI kmI mwrkIt dIAW buinAwdI sm~isAwvW qoN dUr nhIN hoeIAW hn[ ies dI qbdIlI dw ie~k v~fw kwrn sI ik AYl tI sI kYrIAr XYlo kwrporySn dw hwl hI iv~c dIvwlIAwpn hoxw | ies dy nwl qkrIbn 30,000 kwimAW ƒ C~f id~qw igAw[ iehnW iv~c izAwdwqr mYNbr AMqrrwStrI bRdrhu~f dy tImstrW dy sn, ijMnHW ƒ muV lybr pUl iv~c Swiml kIqw igAw sI[

January - March 2024

bOb kOstylo dy Anuswr, frweIvrW dI BrqI Aqy Dwrnw iek AMqrrwStrI sm~isAw hY[ kOstyly ny ikhw ik lybr mwrkIt kYrIArW leI srl ho geI hY pr Ajy vI ieMnI Awswn nhIN ijMnI AsIN smJdy hW[

fwtw fwaUnlof kro[ nYSivl, tYnsI ADwrq hwieirMg Aqy irtynSn gurU pRoPYSnl frweIvr eyjMsI pIfIey Aqy pirvrqn ieMtrAYkitv eyjMsI ny AkqUbr iv~c iek irport pRkwiSq kIqI[ ijs dy Anuswr mOjUdw 2023 dI mwl FuAweI dI mMdI pUry audXog ƒ pRBwivq krdI hY Aqy iesdy nwl hI frweIvr dI BrqI Aqy ausdI Dwrnw ƒ vI pRBwivq krdI hY[ ieh nqIjw hzwrW Pon kwlW dOrwn drj kIqw igAw hY jo frweIvrW dy mu~idAW qy crcw krdy hn Aqy auhnW dy PIfbYk ƒ irkwrf krdy hn[ ieh irport tr~ikMg kMpnIAW ƒ ieh slwh idMdI hY ik mOjUdw BwVy dI jdoN mMdI Kqm ho jWdI hY qW tr~ikMg kMpnIAW ikvyN iqAwr ho skdIAW hn[ iesdy nwl hI

ieMfstrI frweIvrW dI kmI nwl nij~T irhw hY | smyN dy Gwt hox nwl frweIvrW ƒ brkwr r~Kxw iek v~fI sm~isAw hY[ PDA dy Anuswr, kMpnIAW v~loN kIqI jwx vwlI s~B qoN pihlI cIz ik auh ''BrqI dy XqnW ƒ bMd krnw'' nhIN hY | ikauNik auh Awpxy mwlk dy bRWf iv~c invyS krn nwloN, frweIvr dI BrqI ƒ dubwrw SurU krn iv~c izAwdw smW lvygw[ dUsrw q~Q ieh hY ik irport, kMpnIAW ƒ tYknwlojI iv~c invyS krn dI slwh dy rhI hY[ ies nwl ieh BrqI ƒ Awswn bxwieAw jwvygw[ Aijhy smyN iv~c jdoN koeI kMpnI Awpxy BrqI krn vwly krmcwrIAW ƒ G~t krn bwry soc rhI hYY[ auh BrqI krn vwly krmcwrIAW ƒ 'A~j dI qknwlojI' nwl joVnw AklmMdI dI g~l hY[ qIsrw, irport Anuswr, frweIvrW ƒ sVk qy r~Kx dI loV huMdI hY | Agr frweIvr sVk qy nhIN c~l rhy jW koeI kMm nhIN kr rhy qW auh pYsy nhIN kmw rhy hn[ www.punjabitruckingusa.com

irport Anuswr ieh ikhw igAw hY ik, frweIvrW nwl g~lbwq rwhIN sMcwr krnw bhuq zrUrI hY | irport Anuswr, frweIvrW ƒ QoVI ijhI koicMg Aqy g~lbwq dy sMcwr nwl frweIvrW dI inrwSw ƒ Gtwaux iv~c kwPI lwhyvMd hovygI[ ies nwl hI frweIvr iek lMbw sPr qYA kr skdy hn[ iesdy nwl kMpnIAW ƒ ieh Xwd rhygw ik, 'iek frweIvr ijMnI dyr q~k sMcwr qoN ibnW jWdw hY, auhnW hI smW auh bYT skdw hY Aqy dUjy kYrIArW ƒ Awaux vwlI pySkSW ƒ dyK skdy hn[

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nvIN qknIk dI vrqoN kro f~lws, solyrw PlIt soilaUSnz jo ik tYksws ADwrq hY ny frweIvrW ƒ

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January - March 2024

INDUSTRY ARTICLE

3PL GlobalTranz Asks SCOTUS to Deny Petition on Broker Liability

n a recent filing with the U.S. Supreme Court, freight broker GlobalTranz Enterprises, Inc. is asking the high court to deny certiorari (petitioning a higher court to review a lower court decision) that would prompt a decision on whether GlobalTranz should be held liable in a 2017 death of a motorcycle rider who was killed by a truck from Global Sunrise, a carrier hired by GlobalTranz. The case holds important ramifications for the future of brokerages who have rarely been held liable in carrier accidents or wrongful death suits. In Nov. 2017, a Global Sunrise driver carrying freight for GlobalTranz just north of Houston, Texas, made an illegal turn across two lanes of traffic, colliding with a motorcycle ridden by Shawn Lin, who died from injuries sustained in the crash. In 2019, Lin’s widow, Ying Ye, received $10 million in damages from Global Sunrise. Ye also filed claims against GlobalTranz for negligent hiring of an unsafe carrier. Ye alleged that GlobalTranz was negligent in its 16

January - March 2024

selection of Global Sunrise to transport the goods because GlobalTranz knew or should have known that Global Sunrise was an unsafe company based on its history of hours of service and unsafe driving violations. Ye’s claim against GlobalTranz was denied by both the U.S. District Court of the Northern District of Illinois and by the Seventh Circuit. But, in light of a recent decision by the Ninth Circuit in Miller v. C.H. Robinson which did hold the broker liable, Ye is asking the Supreme Court to review the case. GlobalTranz, however, is hoping to put off any reckoning by the high court. Their main argument is that more lower court decisions need to be made before the Miller case can be considered either a precedent or an outlier that should be repealed. GlobalTranz does agrees there are significant issues involved in her litigation and the decision of the courts, both lower and appellate, to exclude the broker from liability. The court decision in Miller raises the stakes, according to GlobalTranz.

“The current uncertainty profoundly affects the core business functions of freight brokers, which serve a central role in the efficient operation of supply chains throughout the United States,” GlobalTranz said in its brief. The brief continues, “Despite the importance of the question presented, however, there are reasons why the Court may wish to allow the question to percolate further in the lower courts.” In its denial of Ye’s case, the Seventh Circuit dismissed the negligent hiring claim by Ye, holding that the claim was barred by the Federal Aviation Administration Authorization Act (F4A), which preempts state laws “related to a price, route, or service of any motor carrier.” In contrast, the 9th Circuit came to a different conclusion in the Miller case saying that F4A does not preempt a broker from liability from hiring an unsafe carrier. The Ninth Circuit held that the claim is not preempted because it falls within the exception for the safety regulatory authority of a state. C.H. Robinson then filed a petition seeking review in the Supreme Courts which was subsequently denied. www.punjabitruckingusa.com

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INDUSTRY NEWS

Federal Court Rules Sleeper Berth Time Beyond Eight Hours Should be Compensated

n a class action lawsuit filed in 2016 against Cedar Rapids, Iowabased CRST Expedited and CRST International, the First Circuit Court of Appeals ruled in December that trucking companies must pay drivers for time spent in a sleeper berth “in excess of eight hours within a full 24hour period.” The ruling upholds a previous decision by a lower court. CRST argued that it follows Department of Transportation hours-ofservice (HOS) rules requiring drivers to be relieved from work during the 10hour off-duty period, and specifically exclude time spent resting in a sleeper berth from that on-duty time. The drivers who filed the suit, including Juan Carlos Montoya, argued that confinement to the restrictive environment of the sleeper berth meant that such time essentially benefits the carrier. CRST uses a team driving model with one driver behind the wheel while the other driver is in the sleeper berth, allowing a truck to stay on the road. The court ruled that while HOS rules govern driver and road safety, they should not be used to determine pay rates. Instead, the Fair Labor Standards Act (FLSA) governs compensation. The court’s ruling argued, “CRST does not count time spent in the sleeper berth as hours worked and so does not 18

January - March 2024

include the sleeper berth hours in the calculation of the drivers’ hourly wage. If the sleeper berth time is counted as hours worked, however, CRST's drivers receive an hourly wage that falls short of the minimum wage under the FLSA.” Montoya alleged that CRST didn’t pay drivers for hours spent in the sleeper berth beyond the Department of Labor’s excludable eight-hour sleeping period, falling short of the hourly minimum wage required by the FLSA. A previous ruling by the U.S. District Court for the District of Massachusetts also sided with the drivers, ruling that sleeper berth time that exceeds eight hours is compensable under the FLSA. CRST appealed the ruling. The appeals court argued that drivers’ time was controlled by the employer even while in the sleeper berth. The court cited a Supreme Court decision that described work under the FLSA as “physical or mental exertion (whether burdensome or not) controlled or required by the employer and pursued necessarily and primarily for the benefit of the employer and his business.” In other words, a driver is “engaged to wait,” by being in a sleeper berth after eight hours simply waiting to go on duty. One of the main factors in this is that the employee cannot leave his physical location. In previous cases this has been important.

One factor that helps determine if the employee’s time is spent to benefit the employer is the employee’s physical location. The employee’s ability to leave the workplace has also been important in previous cases, along with an employee’s ability to engage in personal activities during time spent in a sleeper berth. In addition, while drivers might be able to engage in some leisure activities, the nature of those activities is restricted by the driver’s presence in the berth which provides only basic living essentials. The court cited precedence, writing, “CRST's argument overlooks the Supreme Court's jurisprudence establishing that the ability to engage in some leisure activities does not, in and of itself, render an employee's time for the employee's own benefit. In [the case] Armour, the Court found that the employee firefighters' time benefited the employer and was compensable work even though they could play cards, listen to the radio, or eat while waiting for the next alarm.” The court further said, “Similarly, here, the drivers' time is not their own merely because they can pass the time spent in the sleeper-berth by watching a movie or surfing the internet, activities that are the modern-day equivalents of cards and the radio.” www.punjabitruckingusa.com

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January - March 2024

INDUSTRY NEWS

Presidential Hopeful Ramaswamy Holds ‘Trucker Summit’ at Iowa 80

epublican presidential candidate Vivek Ramaswamy drove up in a gleaming white semi with the emblem of a rolled-up U.S. Constitution on the grill. The upstart biotech billionaire, who is currently polling at about 3.5% nationwide, was at the I-80 Truck Stop in Iowa in mid-December for what was labeled the “Trucker’s Summit.” The event was hosted by CDL-Drivers Unlimited, a coalition of over 4 million drivers. Iowa is the first Republican primary. Like most Republicans, Ramaswamy began the townhall by complaining that the trucking industry is burdened by over regulation. “The ideas I’m sharing with you, these aren’t Black ideas or white ideas,” Ramaswamy said. “These aren’t even Democrat ideas or Republican ideas. They shouldn’t be. This is common-sense. American ideas say that every person should be free from regulatory overreach, that every person should be free to achieve the maximum of their potential without anybody standing in their way. Truckers of this country should not be an exception to that standard,” he said. Ramaswamy attacked current Biden administration goals that would bring the world toward a zero-emissions future. Ramaswamy has labeled what he calls the “climate change agenda” as a “hoax,” and more about acquiescing to China. He told ABC News, "I think that with due respect, 'Do you believe in climate 20

January - March 2024

change?' is not really a meaningful question because climate change has existed as long as the Earth has existed. Do I believe it is a fact that global surface temperatures are rising over the course of the last century or the last half century? Yes, I think that that is an established fact." Ramaswamy also weighed in on truck driver recruitment, saying it is more a problem of retention than recruitment. He complained that current Department of Transportation (DOT) policies are misguided in focusing on recruiting. “We don’t have a trucker shortage as we’re taught to believe,” he said. “What we really have is a retention problem. And what we have right now, especially post-COVID, is an environment where, in that short window where there was a sharp demand, a lot of people were able to get a truck and use debt potentially to do it. But now, we’re burned on the opposite side when we have a glut of supply.” Large trucking companies see consistent turnover of drivers at a rate of about 94% in the last 25 years. Recent studies, however, have shown that higher turnover of drivers is more profitable for those big companies than to keep drivers by paying them more. Ramaswamy argued that less turnover equals safer roads because less experienced drivers are more likely to cause accidents. Analysts say that a driver with less than three years on the

road was 47% more likely to be involved in an accident. Ramaswamy also criticized hours-ofservice regulations, saying that a driver is the best judge of when he should be on the road. Truck driver advocates have said that HOS rules make the roads less safe. Federal studies disagree, saying that the rules prevent 24 crash related deaths every year. His solution is to provide better parking for truck drivers. He believes more parking options would actually keep drivers on the road. A recent study concluded that drivers spend an average of nearly an hour a day looking for suitable parking, resulting in about $4,600 in lost wages. Ramaswamy attacked the bureaucracy which, he says, has robbed America of its greatest asset, which is the worker. In a swipe at the Biden Administration and DOT Secretary Pete Buttigieg, Ramaswamy said, “One thing basic…is that the Department of Transportation should be run by someone with expertise, actual knowledge, and not a failed mayor who knows more about paternity leave policies than the thing they are regulating.” Ramaswamy is currently fourth in the race for the Republican nomination behind former President Donald Trump, Florida Governor Ron DeSantis and former South Carolina Governor Nikki Hailey.

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TRUCKING NEWS

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January - March 2024

INDUSTRY NEWS

Convoy Collapse a Big Topic at Transportation Logistics Conference

he collapse of Seattle-based digital freight brokerage Convoy was the hot topic of discussion at the third annual Investing in the Transportation & Logistics Industry Conference sponsored by the Benesch Law Firm held in December in New York City. Convoy went from a valuation of $3.8 billion in early 2022 to total collapse this October when it closed its doors, laid off nearly 500 employees and left several carriers unpaid. The topic came up during a panel held by moderator Marc Blubaugh, the head of the transportation group at Benesch. The panel, titled Innovative Technology Disrupting the World of Transportation & Logistics, included executives from logistics company’s such as CloudTrucks, Truckstop and Echo Global Logistics.

position hauling short-haul freight put it at a disadvantage because it was not contracting with big carriers such as Knight-Swift Transportation which offers brokerages the best pricing. Doug Waggoner, CEO of Echo Global, noted that Convoy’s technology was “gold-plated,” he concluded that because it didn’t deal with the nation’s biggest carriers it was at a “disadvantage.” Waggoner explained the average haul at Convoy was about 350 miles while Echo Global handles hauls of up to 760 miles. He said, “The big carriers are more sophisticated in how they price. So as long as we’re smart and know where to look, we can get the best pricing.”

One of Blubaugh’s first questions to the panel was about what happened to Convoy. There were three major conclusions made during the discussion.

Second, the panel agreed that the influx of venture capital was both a blessing and a curse for Convoy. Kendra Tucker, CEO of Truckstop, said that for venture capital transportation investment became “quite sexy” between 2017 and 2022.

First, Although Convoy’s innovative technology was excellent, its market

The problem with VC, however, is that these investors are looking for

January - March 2024

quick profits. Tucker said “one of the things that makes third-party logistics providers really great is the discipline with which they run their business. And venture capital is not necessarily known for that.” Tobenna Arodiogbu, the CEO of CloudTrucks, said for VC investors, “there is a very thin line between success and failure. Like, change a few things here and there, change rates a little bit and maybe you’ll be a really large brokerage.” Arodiogbu said the takeaway from the Convoy collapse is that “things change very rapidly, and we should change things very rapidly as well.” He questioned Convoy’s discipline, saying they made missteps, including not “cutting their research and development costs fast enough.” The final conclusion made by the panel is that Convoy’s legacy, according to Arodiogbu, is that it has prodded logistics companies to improve their technology. He said, “It forced everyone else to be really aggressive on how much they have to invest in technology. And that’s benefited everyone.” www.punjabitruckingusa.com

TRUCKING NEWS

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January - March 2024

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January - March 2024

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January - March 2024

INDUSTRY NEWS

Eaton Cummins Transmissions Now Available for Daimler Trucks

he Endurant XD automated transmission from Eaton Cummins can now be paired with three vocational trucks from Daimler Truck North America (DTNA), according to a press release from the company. Eaton Cummins is a joint venture between the two manufacturers. The transmission can be paired with the Cummins’ X12 or X15 engines on the Western Star 47X and 49X as well as the Freightliner 114SD Plus. The Endurant XD and XD Pro feature 18-speeds and are part of the Cummins’ integrated powertrain. “We offer our vocational customers reliable products that can be outfitted to suit their needs,” said Aaron Scates, vice president of vocational and mediumduty market development at DTNA.

“By offering the Eaton Cummins Endurant XD series transmissions in our Western Star and Freightliner vehicles, our customers will have more options when spec’ing for their specific application.”

Endurant XD transmissions had already been available with a Cummins’ engine in the Freightliner Cascadia. Other truck makers are also now offering the Eaton Cummins powertrain package.

According to the Eaton Cummins website, the Endurant XD “is designed to deliver comfort, drivability, and efficiency in on-highway applications up to 166,000 pounds Gross Combined Weight Rating (GCWR).”

Peterbilt trucks 567, 579,365, 367 and 369 as well as Kenworth T680, Y880 and W990 models can also be outfitted with the Endurant XD option. Navistar offers the option for its LT, HV and HX models.

The Western Star 47X had previously used a Detroit engine and transmission. Detroit is a subsidiary of DTNA. The 49X previously used a Detroit DD13, DD15 or DD16 as well as an X12 or X15 engine. Transmission options included the Detroit DT12-V or DT12-VX or Eaton or Allison products.

“The Endurant XD Series is designed to excel on the balance sheet by taking on two of the biggest expense areas: fuel and maintenance costs. To mitigate fuel costs, we designed the Endurant XD Series to be the most efficient, heavy-haul transmission we’ve ever produced,” boasts the Eaton Cummins website.

EVs ‘Stacking Up’ on Car Dealer Lots Across U.S.

espite the push from climate scientists, environmentalists and the Biden administration, car dealers are not selling as many electric vehicles (EVs) as had been expected with inventories higher than normal on lots across the nation. Dealers currently have a 114-day supply of EVs, more than twice what it was at this time last year and double the inventory for most of the auto industry. Statistics for Tesla Inc. and Rivian Automotive Inc. are not included in these figures because they sell directly to customers. Ford Motor Co. has already slashed its production of the F-15 Lightning plug-in pickup, the automaker’s best26

January - March 2024

selling EV. Likewise, General Motors Co. is delaying the production of new EVs, including the Equinox SUV and Silverado pickup. In November, a group of auto dealers wrote a letter to President Biden, saying that “electric vehicle demand today is not keeping up with the large influx of BEVs [battery electric vehicles] arriving at our dealerships prompted by the current regulations. BEVs are stacking up on our lots.” The letter continues, “Today, the supply of unsold BEVs is surging, as they are not selling nearly as fast as they are arriving at our dealerships— even with deep price cuts, manufacturer incentives, and generous government

incentives.” In November, inventory was the highest at 284 days for Ford’s electric Mustang Mach-E. The company’s F-150 Lightning had a 111-day supply. The Nissan Leaf had 183 days of supply, while the Kia EV6 had 145 days of supply, according to statistics from Cox Automotive, which helps dealers track inventory. In California, the California Air Resources Board is providing a number of ways to assist customers, including up to $9,500 in tax credits and up to $7,500 for a down payment on an EV, combined with special financing and a charger for low income families. www.punjabitruckingusa.com

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January - March 2024

INDUSTRY NEWS

NHTSA Focuses on New Technology to Keep Drunk Drivers Off the Road

n December, the National Highway Traffic Safety Administration (NHTSA) announced it will take steps toward requiring technology in all new passenger vehicles that will prevent drivers from operating the vehicle while drunk. The new safety standard, which was part of the 2021 Bipartisan Infrastructure Bill, would be in place at a point when the technology is fully functional. As with any new safety requirement it could take several years for the standard to be fully implemented. The NHTSA says an advance notice of proposed rulemaking will help it gather information about the development of devices that can detect

impaired driving. In a statement, the agency indicated it would set standards for the devices once the technology is “mature.” In the most recent statistics about drunk driving, over 13,000 people lost their lives in alcohol related driving accidents in 2021. The problem costs the nation $280 billion in medical costs, lost wages, and general quality of life. Crash deaths were at a nearly 15-year high at the end of the 2021, according to the statistics. “It’s going to keep drunk drivers off the road and we’re going to keep people from dying because somebody’s drunk,” said U.S. Rep. Debbie Dingell (D-Michigan) who has been a consistent advocate for the emerging technology.

In 2022 the National Transportation Safety Board recommended that all new vehicles be equipped with alcohol monitoring systems which will keep a potential drunk driver from starting their car. It is unclear whether there will be devices which can sense whether a driver is under the influence of another drug or substance. Technology already exists that can measure intoxication, but the driver has to blow into a tube. The NHTSA and 16 automakers are funding a study researching technology that can automatically test a driver’s breath as soon as they get behind the wheel. Another potential new device could test for blood alcohol levels in a driver’s finger.

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NHTSA Delays Decision on Side Underride Guards

decision on whether to require trucking companies to install side underride guards on all trailers and semi trailers has been postponed until October. Guards are intended to keep passenger cars from sliding under a trailer during a collision. According to the U.S. Department of Transportation’s regulatory agenda, the National Highway Traffic Safety Administration (NHTSA) is still analyzing comments which were filed during a 90-day period in the spring and summer of 2023. The timeline indicates that any potential mandate on side underride guards is at least a year away despite arguments from highway safety advocates and insurance analysts

that the guards would help save lives. Trucking industry groups, however, have urged the NHTSA to drop the matter, considering the high cost of installing guards on the nation’s fleet of trucks. Industry stakeholders have argued guards are expensive to install and add weight to a truck which ends up costing more in fuel. They also assert that guards are not effective at highway speeds. NHTSA estimates that guards would raise the cost of a new trailer by at least $3,700 with a total annual cost of about $1 billion. The proposed rulemaking last April indicated that the mandate would apply to 260,000 new trailers per year.

“Despite trucks being just 4% of the vehicles on our highways and twothirds of the accidents involving trucks being caused by passenger vehicles, the trucking industry still spends $9.5 billion conservatively each year on safety,” said Chris Spear, the president of the American Trucking Associations. Groups in favor of requiring guards have argued that NHTSA statistics on how many lives would be saved by guards have been underestimated. According to the Insurance Institute for Highway Safety ten times as many lives could be saved. In 2021, 488 fatalities were caused by cars sliding under a trailer.

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January - March 2024

INDUSTRY ARTICLE

California Not Ready for Zero-Emissions Future

ew research out of the American Transportation Research Institute (ATRI) asks whether California is “ready for an electric vehicle future.” The study, which was an addendum to the institute’s 2022 report, Charging Infrastructure Challenges for the U.S. Electric Vehicle Fleet, appears to answer in the negative. In fact, the state would need to generate more electricity than is currently being produced to meet its zero-emission goals. The report presents several other challenges which face California. The state has proposed 2045 as the date when it has phased out virtually all carbon burning transportation. California needs to generate 57.2% more electricity than today’s output, which is insufficient to meet present demand. The state must import electricity from other states, much of that from the Intermountain Power Project which uses a coal fired plant in Utah.

Plans are in the works to open new solar facilities as well as floating wind farms off the coast near Morro Bay in San Luis Obispo County and in the ocean off Humboldt County. The state has also relicensed Diablo Canyon, a nuclear power plant that had been set to shut down. Another serious conclusion of the report is that the state will need more battery electric trucks to transport the same amount of cargo as today. ATRI notes “that if today’s diesel tractors were replaced with much heavier electric trucks—one-third of the truckload sector would suddenly be too heavy for U.S. roads. The result—additional electric trucks would be needed to move the same amount of freight as a diesel truck. For every 1,000 trucks, an additional 343 trucks would be required due to battery weight.” The current cost of battery-electric cars and trucks is also an impediment to

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future goals. The report says, “With new battery-electric vehicle trucks costing more than $425,000—more than double the cost of a comparable diesel truck— California’s supply chain will get more expensive. Additionally, the cost to power a battery-electric truck, including equipment, installation, utility upgrades and electricity, could be as high as $1.21 per mile, nearly double the cost per mile of diesel fuel. Finally, the infrastructure needed to power all of these vehicles is not close to being sufficient, despite efforts by the federal government to install more chargers. ATRI says, “The nation currently faces a significant truck parking shortage, with an estimated one parking space for every 11 truck drivers. Adding a charger at each of California’s 13,144 truck parking spaces would cost between $1.472 billion and $2.878 billion for just the purchase and installation of the charging units.”

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INDUSTRY NEWS

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January - March 2024

INDUSTRY NEWS

House of Representatives Fails to Advance Important Trucking Industry Legislation

ep. Chip Roy (R-Texas) recently tore into his Republican colleagues complaining that the House of Representatives, which is controlled by his party, has basically accomplished nothing in 2023. He said, "One thing: I want my Republican colleagues to give me one thing— one—that I can go campaign on and say we did. One!" Indeed, Republicans have spent more time feuding with each other than dealing with legislation which would improve Americans’ lives, including several bills that are important to the trucking industry. For example, the final legislation that would simply fund federal transportation agencies was pushed to 2024. New House Speaker Mike Johnson (R-Louisiana), who rose to power after the ouster of former speaker Kevin McCarthy (R-California), passed a short-term bill in October to avoid a government shutdown and pledged to get full funding by early this year. In reference to the short-term funding bill, Johnson said, “You gotta fight fights that you can win. And we’re going to. And you’re going to see this House majority stand together on our principle. Look, it took decades to get into this mess. I’ve been at the job less than three weeks.” One of the casualties of Republican infighting was a truck parking bill. 32

January - March 2024

Experts have estimated that a trucker can spend an average of nearly an hour looking for suitable parking. The bill would help to add more truck parking throughout the nation. Several agencies have urged Congress to take up the matter. Iowa Motor Truck Association President Brenda Neville said, “we have 313,000 parking spaces and 3.5 million drivers. So, the shortage is real in every single state. And the option that truck drivers have now is that if they can’t find a space, they are parking on the side of the road. They’re parking on an off-ramp.” Last March, American Trucking Associations President said, “The lack of safe and accessible truck parking places an enormous and costly burden on our nation’s truck drivers as they work to deliver for the American people. Given the chronic nature of this issue and its national scope, it is imperative Congress takes action to provide dedicated funding to expand commercial truck parking capacity.” Another big issue for the industry was the repeal of the 12% federal excise tax on the purchase of new trucks. At a time when the nation is moving toward expensive new technology, repealing the tax would allow for fleets to modernize without a burdensome tax. A letter from the Clean Freight Coalition said, “Removing the [federal excise tax] is a critical step to deploying

these environmentally friendly technologies faster across the entire industry.” The Modern, Clean and Safe Trucks Act, proposed by a bipartisan group of senators would have repealed the tax, which dates to the early 1900’s. “The current federal excise tax has become a barrier to our progress in encouraging cleaner and greener technology,” said Sen. Ben Cardin (D-Maryland) in March. “I am proud to support tax policy that enables Maryland manufacturers to innovate and deploy cleaner and safer technologies in our trucking industry. Our legislation will spur growth and competitiveness while making our roads safer and less polluted.” Finally, there was no action taken on the bipartisan Railway Safety Act which would help modernize the nation’s rail infrastructure amid a spate of highprofile derailments, including the one in Ohio which resulted in the burning of vinyl chloride tanks and the forced evacuation of about 2,000 nearby residents. “Railroads support items of this bill and remain fully committed to working with the committee and all members of the Senate to build on these improvements, with the ultimate goal of ensuring all provisions result in meaningful data-driven safety advancements that all can support,” said Association of American Railroads President and CEO Ian Jefferies. www.punjabitruckingusa.com

INDUSTRY NEWS

FMCSA Issues ‘Enforcement Policy’ on Sexual Assault

s only the second woman to hold the position of fulltime Federal Motor Carrier Safety Administration (FMCSA) Administrator, Robin Hutcheson brings a different outlook to the job compared to her male predecessors. To that end, she is focusing on the problem of sexual assault among truck drivers. A new policy statement from the agency is meant “to increase awareness of sexual assault against commercial motor vehicle (CMV) drivers and to emphasize that Federal law requires that persons who are convicted of using a CMV to commit a felony must be disqualified from operating a CMV requiring a commercial driver’s license (CDL) or commercial learner’s permit (CLP).” Issued on Dec. 7, the “Notice of Enforcement Policy” reminds the industry that the “safety of CMV operators is a critical aspect of FMCSA’s safety mission.” The policy statement

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contends that sexual assault has been perpetrated in a variety of settings, including at truck stops, fueling areas and during CMV driver training. The term “sexual assault” is defined as “any nonconsensual sexual act proscribed by state law.” In regard to commercial motor vehicles, examples include: • felony sexual assault occurring in or upon a CMV or towed unit • use of a CMV to transport a victim to a site where felony sexual assault is committed • use of a CMV to conceal a felony sexual assault—e.g., the CMV serves as a shield from public view while the sexual assault is taking place The notice is part of the final report from the Women in Trucking Advisory Board which originated with The Promoting Women in Trucking Workforce Act written by Sen. Jerry Moran (R-Kansas) and sponsored by

Sen. Tammy Baldwin (D-Wisconsin). The policy requires women to make criminal complaints if faced with sexual assault. It also acknowledges that further education is needed for law enforcement to take such complaints more seriously. The advisory board also recommended that trainers and trainees never share the same sleeping quarters during training, including hotel rooms or sleeping berths. In addition, the board recommended removing drivers with documented cases of sexual harassment or assault by setting up a way for complaints to be made outside the company structure. Analysts in the industry warn that sexual assault is an ongoing issue because it has never been fully addressed. The board hopes these recommendations will shed further light on the problem and provide transparency for the industry.

January - March 2024

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San Joaquin County Considering New Truck Parking Near Lathrop

ith truck parking legislation bottled up in a dysfunctional federal government, local officials are looking to themselves to cure the problem that has plagued the trucking industry for years. In San Joaquin County, the planning commission will hear a proposal for a 34-acre facility about 15 minutes south of Stockton near the town of Lathrop. The project is in response to the Board of Supervisors directive to solve the problem of illegal truck parking in the county. The project would be located on the southwest corner of Frewert Road and South Manthey Road, which runs parallel to Interstate-5. The hearing will take place in early January in Stockton. A recent study concluded there is only one reliably safe truck 34

January - March 2024

parking spot for every eleven trucks on the road. Congress had been considering a $755 million bill to provide competitive grants to build or improve public parking facilities for commercial motor vehicles across the U.S., but that legislation was shelved until sometime in 2024. The new facility will be just south of the I-5 and Roth Road interchange which is the primary access point to the Union Pacific Railroad intermodal facility between Lathrop and Manteca. The intermodal facility is under expansion and would eventually be able to handle 730,000 truck trips per year. The Union Pacific facility utilizes lifts to place truck trailers on railcars and shipping containers onto trailers. The parking project will be constructed in two phases over about five years and will have enough spaces for a total of 711 trucks. The first phase

includes a fueling station, maintenance shop, a guard house and a caretaker’s unit. Improvements will need to be made to existing road intersections. Locations that were considered needed to be within a mile of a freeway interchange, away from residential communities and outside of new development. Proposed sites also needed to be close to distribution and logistics centers, which continue to grow throughout the county. The proximity to the intermodal facility made the project near Lathrop a perfect fit for the county. Not all residents of the area, however, are thrilled with the location. A petition, signed by 120 residents and six letters of opposition have been received by the county. Another issue was the potential of heat spikes to surrounding areas caused by a large, paved area, but experts have discounted this concern. www.punjabitruckingusa.com

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January - March 2024

INDUSTRY NEWS

Spate of Bankruptcies, Closures Plague Trucking Industry in 2023

n the wake of a collapse in freight rates post pandemic, many highprofile trucking industry companies filed for bankruptcy, closed down, or both, in 2023. Leading the way was the stunning collapse of less-thantruckload carrier Yellow Corp. who ceased operations on July 30 and filed for Chapter 11 bankruptcy in August in a Delaware Court. Yellow Corp. had assets of about $2.15 million and liabilities of $2.59 billion. The company laid off some 30,000 drivers, including 22,000 teamsters despite having received a $700 million COVID relief loan. “It is with profound disappointment that Yellow announces that it is closing after nearly 100 years in business,” said Yellow CEO Darren Hawkins at the time. “Today, it is not common for someone to work at one company for 20, 30, or even 40 years, yet many at Yellow did. For generations, Yellow provided hundreds of thousands of Americans with solid, good-paying jobs and fulfilling careers.” 36

January - March 2024

Just this past December, Sacramento-based Matheson Trucking announced it would be closing down at the end of January. Matheson had been a contractor with the U.S. Postal Service since 1998. The company, which has been family owned since 1962, filed for bankruptcy in 2022 and has laid off about 3,500 workers. Another surprising closure was that of Seattle-based digital freight broker Convoy who went from a valuation of $3.8 billion in early 2022 to total collapse this October. The company left some 80,000 drivers scrambling to find business and others simply looking to get paid for loads carried under a Convoy contract. By the beginning of 2023, Convoy was losing about $10 million a month. The closure in October caused 500 company employees to lose their jobs. As late as 2022, business giants such as Jeff Bezos and Bill Gates had invested in the company. Another digital freight broker, Jacksonville, Florida-based Surge

Transportation filed for bankruptcy while slashing rates and laying off workers in July 2023. According to court filings, “In the first half of 2022, demand for excess motor carrier capacity dramatically contracted. In an effort to maintain volume, [Surge] cut its rates. While lower rates resulted in more brokered jobs, they also reduced [Surge’s] profit margins and its previous robust financial situation quickly began to erode.” Pittsburgh-based Elite Transit Solutions also closed when the Federal Motor Carrier Safety Administration revoked the company’s broker authority for not paying its bills. Many former employees were eventually compensated but many carriers were left uncompensated. Similarly, Montana-based Meadow Lark Transport left $800,000 in unpaid wages to its employees and about $2.7 billion in unpaid contracts to 1,300 carriers. The company’s broker authority was revoked in August and its contract carrier authority in October. www.punjabitruckingusa.com

TRUCKING NEWS

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Freight Demand Shifts Back to West Coast After Pandemic

hile spiking during the pandemic years, freight market volume has fallen for ports on the East Coast that had benefited from gridlock at the major ports in California. Atlanta’s volume plummeted more than 11% in the last year. In contrast, volume in Ontario, California has recovered over 14%, representing most of the share it lost in the last few years. Before the pandemic, West Coast ports such as Long Beach, Los Angeles and Oakland received the majority of freight volume being shipped from Asia. In 2020 that volume overwhelmed those ports, sending prices higher and shippers scrambling to find cheaper www.punjabitruckingusa.com

routes. Amazingly, prices were so high on the West Coast that it was cheaper to send goods through the Panama Canal to the port of Savannah, which feeds the Atlanta market. Many analysts believed that Savannah’s volume would remain high, but under current conditions, it has dropped back to slightly above 2019 volumes. One reason for the drop is that the Panama Canal has been the victim of drought affecting its larger locks. In the Middle East, shipping through the Suez Canal has been impacted by Yemeni rebels as well as the war in Gaza. These realities make Los Angeles and Long Beach more desirable. The ports have worked out many of the supply chain issues they suffered with

during the pandemic. In fact, Inbound Ocean TEUs Volume Index has skyrocketed by 73% year over year at the Port of Los Angeles. Maritime container rates can fluctuate but when they are lower it favors East Coast ports. The cost of surface transportation is a major factor. In 2021, the rate for an average dry van truckload from Los Angeles to Philadelphia can be as much as three times higher than the rate from Savannah to Philadelphia. Today, the savings are still there, but to the extent that many shippers are taking advantage of it. Many are content to ship to the larger West Coast ports. This means that volume has continue to drop in the Atlanta market. January - March 2024

INDUSTRY NEWS

New Warehouse Emissions Rule Upheld by California Court

n a case involving emissions regulations in Southern California warehouses, a federal district court has upheld a rule approved in 2021 by the South Coast Air Quality Management District. The California Trucking Association (CTA) had filed a lawsuit against the new regulations claiming they were a zero-emission mandate. The new rules are intended to incentivize the move away from dieselfueled trucks to zero-emission vehicles (ZEVs). The regulation in question, the Warehouse Indirect Source Rule (ISR) has the goal of reducing nitrogen oxides (NOx) and diesel particulate matter emissions connected to warehouse activity. As in other high-profile California cases surrounding the state’s controversial gig worker law AB5, the Central District Court of California rejected CTA’s argument that the regulation should be preempted by the Federal Aviation Administration

January 2024 January--February March 2024

Authorization Act (F4A). CTA was joined in the lawsuit by airline trade group Airlines for America who used a similar law, the Airline Deregulation Act, to argue that federal law should preempt local laws because such laws require operational changes and would disrupt “prices, routes or services.” They claim that companies would need to purchase more expensive ZEVs instead of cheaper conventional trucks to comply. The IRS sets standards for emissions and then awards points for steps taken to reach those goals, such as using ZEVs at the warehouse, having ZEVs make deliveries or pick up cargo. Points can also be awarded by utilizing solar panels on the roof or near a warehouse Another option is to buy points that can be used to meet the individual warehouse mandate. There is no explicit ZEV mandate in the IRS. Under the Warehouse Actions and Investments to Reduce Emissions

(WAIRE) Program, each warehouse needs to earn a number of points under the WAIRE Points Compliance Obligation. In his decision, Central District Court Judge John Kronstadt noted that warehouses had increased ZEV usage as a result of the rule by companies seeking to meet their WPCO target. “But many did not,” he wrote. The judge’s decision included a statistical summary counting how many warehouses earned WPCO points using ZEVs, how many earned points by being visited by ZEV vehicles and how many hit their WPCO target all or in part by purchasing points. The summary said preliminary reports indicate that more than 87% of the WPCO points earned by warehouses in the early months of the program came from the use of ZEV or NZEV vehicles.

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INDUSTRY NEWS

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INDUSTRY NEWS

New Report from Environmental Group Calls for Increases in Intermodal Freight Transport

ccording to Conservation International, 2023 was the hottest year on record “by a wide margin.” A warming planet means that disasters such as floods, wildfires, droughts, and storms are intensified. Because of this reality, the U.S., and especially California, are working toward a zero-emission future. One way to hasten decarbonization is by utilizing intermodal rail to move more of the nation’s freight in place of trucks which contribute about onethird of the carbon emitted into the atmosphere every year. Intermodal is the long-haul movement of shipping containers and truck trailers by rail, combined with a truck or ship at one or both ends. A new goal proposed by the Environmental Defense Fund (EDF) is to increase intermodal by at least 25% in the next six years. According to the Association of American Railroads, “Intermodal combines the best attributes of different transportation modes to yield an efficient, cost-effective total movement. Intermodal transports various goods Americans use daily.” The best thing about intermodal for shippers is that it offers higher carrying capacities and longer reach that give rail a lower cost-per-ton-mile compared with long-haul trucking. Most importantly there is a 75% difference 40

January - March 2024

in emissions between conventional rail and transport by truck. Maximizing the effort to use intermodal is a key component in the U.S. Department of Energy’s National Blueprint for Transportation Decarbonization. The major rail carriers, including BNSF, Canadian National, CPKC, CSX, Norfolk Southern, and Union Pacific are all currently adopting climate targets using public funding, some of which is available through the Department of Transportation’s discretionary grants.

• Develop a network of intermodal hubs: more hubs are required to facilitate rail to truck transfers. One intermodal hub needs only about 2550 acres and can cost as little as $510 million. A $1 billion investment could build 100 such facilities that would greatly expand intermodal rail infrastructure and access. • Expand the use of new technologies: autonomous rail cars and technology that improves traffic management are essential for a smarter intermodal experience.

To further the use of intermodal rail, the EDF commissioned a new study by Supply Chain Ecology, titled “Decarbonizing Long Haul Freight: A Study on intermodal rail as a viable option for freight decarbonization” provides a comprehensive outlook on the future of intermodal freight movement.

• Implement better freight intelligence tools: new software can improve shipper data quality and allow for more effective mode decisions.

The new research, which includes 14 recommendations, focuses on five key points:

If properly done, the extended usage of intermodal movement of freight can provide lower costs and reduced emissions, according to the report. The report warns that missing the opportunity to increase intermodal shipping through increased investment will end up costing more in the long run because the path to decarbonization will be slower.

• Integrate short-line and class I rail networks: new haulage agreements that allow short-line and class I carriers to exchange cargo can not only reduce the distance traveled by trucks moving cargo from rail to final destination but can also save money on first- and lastmile deliveries.

• Provide an updated regulatory climate: allow for integration of shortline and class I carriers by updating performance and service standards.

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TRUCKING NEWS

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INDUSTRY NEWS

Convoy’s Abrupt Closing Left Carriers Without Payment for Freight Already Delivered

eattle-based digital freight broker Convoy went from a valuation of $3.8 billion in early 2022 to total collapse this October, leaving some carriers behind who were not paid for loads they delivered.

By the beginning of this year Convoy was estimated to be losing about $10 million a month. Attempts were made by the company’s executives to find new funding or to sell the company outright, but those efforts failed.

The company had high hopes in 2022 with funding from the likes of Jeff Bezos and Bill Gates. Amid the freight boom prompted by the pandemic, Convoy seemed poised to do well with its model of moving high-volume, low margin freight by making it easy to find a truck and booking shipments in a totally digital environment. At one point, Convoy had 80,000 carriers in its network

The company closed on Oct. 19, laying off some 500 employees without severance pay and turning over its technology to digital freight forwarder Flexport. The abrupt shuttering of the company left many carriers without regular loads and some who are still owed thousands of dollars from Convoy.

But reality set in as demand collapsed because of high inflation and soaring gas prices at the end of 2022. 42

January - March 2024

Even though Convoy appears to have made efforts to get its carriers paid, many were not. It’s uncertain how many carriers were left to be paid when the company closed. Biljana Filipov of Oswego, Illinois-based carrier Eagle

Radovish claims her company is owed almost $160,000 covering 203 loads up to Oct. 18th. The large amount seems to have resulted from Eagle using an outside factoring company to process payments rather than Convoy’s Quick Pay system which most carriers utilized. Most carriers who are owed payments were paid up until the last days the company was in business. Founded in 2015 by two former Amazon.com workers, Convoy has retained only a small group of employees as it tries to sell the company’s technology. California-based Hercules Capital is now monitoring the sale of Convoy’s assets including its software.

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TRUCKING NEWS

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AkqUbr q~k 203 lofW ƒ kvr krn leI qkrIbn $160,000 bkwieAw hY[ eIgl duAwrw BugqwnW dy bkwey dI pRikirAw leI v~fI rkm qihq iek bwhrI PYktirMg kMpnI dI vrqoN krn dy nqIjy vjoN pihcwxI geI hY[ ies kMpnI dy kOnvOeyz kiv~k py isstm dI vrqoN izAwdwqr kYrIArW v~loN kIqI geI hY[ keI kYrIArW v~loN AwKrI idnW q~k bkwey Bugqwn kIqy gey sn, aus smyN kMpnI iv~c kwrobwr c~l irhw sI[ swl 2015 iv~c Amazon.com dy do swbkw krmcwrIAW v~loN sQwipq kIqI geI kOnvoey ny Awpxy mulwzmW dy iek Coty smUh ƒ Awpxy nwl brkrwr r~iKAw, ikauNk ieh kMpnI dI qknwlojI ƒ vycx dI koiSS krdw hY[ hrikaUls kYpItl jo ik kYlPornIAW ADwrq hY, jo ik hux kwPly dy sOPtvyArW smyq aus dIAW jwiedwdW ƒ vycx dI koiSS iv~c hY[

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INDUSTRY NEWS

Cummins Settles with Feds and CARB for $1.675 Billion in Fines for Emissions Violations in Dodge Pickup Trucks

olumbus, Indiana-based truck engine manufacturer Cummins Inc. will pay a $1.675 billion fine for equipping Dodge Ram pickup trucks with devices that allowed them to spew excess pollution beyond the limits set by the federal government in the Clean Air Act. Money will be paid to both the feds as well as the California Air Resources Board (CARB). It is the largest civil fine levied on a company since the passage of the Clean Air Act in 1970. Only the $2.8 billion criminal penalty against Volkswagen in the 2017 “Dieselgate” emissions scandal was larger. The U.S. Department of Justice (DOJ) indicated that Cummins allegedly installed “defeat devices” on the Dodge trucks to bypass or disable emissions sensors on 630,000 2013 to 2019 Ram 2500 and 3500 pickups as well as

January - March 2024

undisclosed auxiliary emission control devices on 330,000 2019 to 2023 Ram 2500 and 3500 pickup engines. In a DOJ press release, Attorney General Merrick Garland said, “Defeat devices on some Cummins engines have caused them to produce thousands of tons of excess emissions of nitrogen oxides. The cascading effect of those pollutants can, over long-term exposure, lead to breathing issues like asthma and respiratory infections.” Environmental Protection Agency (EPA) Administrator Michael Regan said, "vulnerable communities are more likely to reside near highways where these harmful emissions are concentrated, making this agreement critical to advancing our environmental justice agenda." For its part, Cummins has not

admitted any wrongdoing in the settlement and an internal investigation did not point to anyone in the company acting in bad faith. The issue was discovered in 2019 when Cummins received questions from the EPA and CARB about its emissions certification and compliance process for its pickup truck engines. Cummins said it fully complied with both the Justice Department and CARB during the more than four-year investigation. A Spokesman from the company said that Cummins prides itself on reducing emissions in its engines and said it is committed to a “zero-emissions” future. The company will take a $2 billion loss in the fourth quarter of 2023 to help settle the fine and pay for recalls on the trucks in question.

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