Posted on January 13, 2020
Several major cities have floated the idea of congestion pricing as a means to ease the number of vehicles choking already busy streets. The idea is simple—much like tolls on highly traveled highways, cities would begin charging fees to drive in the city center during peak travel hours. For trucking companies, this may have several significant implications.
Pros and Cons of Congestion Pricing
Some industry experts think these fees may make it even more difficult to for smaller firms to compete with major fleets that can absorb those added expenses with less difficulty. Larger operations might be able to more adeptly transfer the costs than smaller trucking businesses or owner operators. Winners in the congestion pricing paradigm shift will theoretically benefit from less traffic and easier deliveries.
There are additional benefits to congestion pricing. In crowded cities like New York City, truckers face the very real risk of incurring parking tickets due to limited legitimate parking and overly congested streets. With congestion pricing, there should be more available parking to eliminate this headache.
Looking to Other Cities for Insights
With New York City poised to enact congestion pricing in 2021, lawmakers are comparing other congestion pricing practices to ensure a smooth process. Major cities such as London and Stockholm have established such laws with relative success, but they also identified pain points to avoid. In the beginning, for example, London exempted or discounted several types of vehicles due to their lesser effect on the environment. Emergency service vehicles, motorcycles, and taxis are exempt while disabled people, city residents, and low-CO2 vehicles can apply for a significant discount.
London encountered some trouble with the rise of ridesharing. Since taxis are exempt, London offered the same exemption to ride sharers. However, the number of these vehicles on the roads doubled over the course of the decade, so London amended the exemption.
Beyond New York City, congestion pricing is catching on across the nation in other high-traffic urban areas. Contact the experts at Interstate Motor Carriers to learn how we can help with your manage risk and improve your bottom line!
Posted on September 17, 2019
A rise in technology and shifting customer expectations have dramatically changed the landscape of the trucking industry. As a result, many of the trends driving business decisions in the trucking industry are leaving fleet managers and carriers frustrated and with fewer options. However, it isn’t all bad news as fleets learn to navigate the changes affecting their businesses. The following are leading trends influencing the trucking industry:
- The driver shortage. This has been a challenge for years and trucking companies have taken numerous steps to try to address it. Some opted to entice new talent pools such as veterans or women. Others are trying to change regulations to allow drivers under 21 to operate on interstate highways. Now, nearly two-thirds of the industry are increasing benefits, pay, and more, to try to entice qualified drivers.
- Competition undercutting prices. When polled, 66% of trucking companies reported losing contracts to unprofitably low competitor offers. Fleets need to continue to find unique ways to improve efficiency and economies of scale to lower costs.
- Confidence in expansion. Not every trend is negative for fleets. Over a third expect to expand by 11-25% despite a predicted economic slowdown for the industry.
- Reducing costs with technology. Technology has been able to save fleets money in a variety of ways. With ELDs and telematics, fleets are able to identify gas-guzzling behaviors, pinpoint unsafe drivers, and provide better maintenance. Not only does technology help fleets stay on top of preventative maintenance, but it can also provide predictive maintenance suggestions as well. For example, artificial intelligence can run detailed analytics to compare the service history of fleets and isolate moments when brakes, tires, or other components will likely need servicing or replacement to avoid blowouts and accidents.
Keeping up with the latest trends affecting the industry can be a challenge. While not all trends withstand the test of time, some have been a thorn in the industry’s side for years such as the driver shortage. Interstate Motor Carriers knows that fleets have enough things to keep track of without adding new and challenging developments to their plate. Contact us to learn how we can help your trucking business.
Posted on June 25, 2019
The trucking industry is undergoing massive and rapid changes as truck designs become more complex and nuanced. As a result, repairs to these advanced machines need to keep pace, employing more finesse and deeper diagnosis. Today’s trucks are vastly different from the ones in production twenty years ago. Yet with many repairs, mechanics and technicians are treating modern vehicles as they did with previous generations.
What are the Differences?
In previous decades, not many truck developers or repair mechanics gave much consideration to the first second of a crash. They were more concerned with the aftermath and ensuring the vehicle could be returned in good working order, as quickly as possible. Today, however, technological advancements have changed how trucks react to crashes within the first second, to keep the driver as safe as possible while improving overall fuel economy and performance. These include:
- Lighter weight material to save on fuel
- Upgrades such as foams, seam sealers, and rivet attachments to change how the cab reacts to a crash
- Upgrades to comply with stricter regulations for greenhouse gases
- Advanced steel with unique welding properties
Why These Differences Matter
Repair technicians need to consider these differences, or the repairs of today can become severe risks for tomorrow. For example, advancements in welding can create holes for rivets which may stretch during a crash. Sometimes, they’re only meant for one use and need to be replaced. While customers want their trucks back as soon as possible, expedience in this case can result in unsafe trucks on the road.
One of the biggest roadblocks is a simple lack of knowledge or training. The heavy-duty vehicles of today are vastly different than the ones most technicians worked on to learn their trade. Like any big change in the industry, fleets need to take the time to ensure their repair mechanics have proper training to keep vehicles in good working order without compromising safety.
Fleets can’t afford to overlook risks like outdated repair techniques. The experts at Interstate Motor Carriers are intimately familiar with the issues facing the ever-evolving trucking industry and we are here to help. Contact us to learn more about reducing your trucking company’s risks with our innovative solutions.
Posted on May 22, 2019
Truck drivers and carriers have complained that many of the existing hours of service (HOS) regulations are too restrictive if not outright impossible to adhere to while maintaining customer expectations for deliveries. However, it is not these complaints that sparked the Federal Motor Carrier Safety Administration’s interest in revising the rulings. Instead, the DOT is pulling data from the much-contested electronic logging devices (ELDs) to guide their proposed changes.
How ELDs are Affecting HOS Regulations
ELDs are tamper-proof, unlike their paper records predecessor. The devices wrought an almost instantaneous decrease in HOS violations, resulting in less weary and therefore safer drivers. However, the data also revealed some truths about the transportation industry to FMCSA. Primarily that times and technology have changed customer expectations, and how people do business.
FMCSA’s Advanced Notice of Proposed Rulemaking
FMCSA is seeking commentary on proposed changes in an effort to reduce excessive burdens on truck drivers to remain compliant but without compromising safety on the roads. The proposed revisions include:
- Lengthening the short-haul 100 air-mile exemption from 12 to 14 hours on-duty. This would make the exemption consistent with existing regulations for long-haul commercial drivers.
- Permit a temporary two-hour increase for the 14-hour on-duty limitation when drivers encounter unfavorable driving conditions.
- Reinstating the option to allow truck drivers to split the mandatory 10-hour off-duty rest time so long as the driver’s truck has a sleeper-berth.
- Amending the existing ruling requiring a 30-minute break after eight hours of unbroken driving.
FMCSA’s primary concern is always to keep roads safe for drivers and the motoring public. However, they understand the difficulties truck drivers encounter while operating their vehicles. After reviewing the data from ELDs, the DOT agency is proposing changes to keep pace with modern challenges, expectations, and business requirements without increasing risk.
Since releasing their advanced notice of proposed rulemaking (ANPR), FMCSA received over 5000 comments. Most of the comments focused on known pain-points for truck drivers, underscoring just how challenging existing HOS regulations are for drivers.
Interstate Motor Carriers is intimately familiar with the challenges both fleets and independent operators encounter when trying to remain compliant with HOS regulations while running a successful business. Contact us today to learn more about our innovative solutions designed to help reduce your transportation risk without adding undue stress to drivers.
Posted on April 03, 2019
Every year, the Commercial Vehicle Safety Alliance (CVSA) holds an International Roadcheck event to inspect common areas of safety violations in trucking. This year, the event will run from June 4-6 and will focus on steering and suspension. These two components are critical to the safe operation of a commercial vehicle as they help ensure a truck can support heavy loads while maintaining stability while driving.
What to Expect During an Inspection
During International Roadchecks, CVSA sends certified inspectors to perform a Level I Inspection (North American Standard), although he or she may opt to conduct a different type of inspection depending on his or her initial evaluation. A Level I Inspection is the most common type of inspection and drivers should be prepared to provide several documents including:
- Their commercial driver’s license (CDL)
- Their medical certification and card/waiver if appropriate
- Their logs for the previous eight on-duty days to confirm their hours of service (HOS)
The inspection includes 37 steps and takes around 45 minutes to an hour to complete. In addition to the above documents, the inspector will check for drugs or alcohol as well as inspect several aspects of the vehicle such as the seat belts, exhaust system, brake system, various lights, and more.
Is an International Roadcheck Different from Standard Inspections?
While drivers may feel some trepidation going into a CVSA inspection, it is no different from the usual inspections they experience at any other time of the year. The only notable difference is that CVSA will issue an official decal for display upon completing a successful inspection. While there will be more inspections than usual, the inspections themselves are the same as always.
The intent of highlighting steering and suspension safety is to increase drivers’ awareness of those critical elements of operating a truck. CVSA announces the dates of the increased inspections to allow drivers to ensure they’re safe and compliant well in advance. It’s also to remind drivers that maximum safety is something they should strive for year-round.
Contact the experts at Interstate Motor Carriers to learn more about our innovative truck insurance solutions.
Posted on February 21, 2019
The driver shortage is a problem for all trucking companies. As many drivers gear up for retirement, fleets need to fill their driver seats with new truckers. Unfortunately, recruiting millennials has been something of a challenge for many fleets. If trucking companies want to attract this demographic, they’re going to have to make some changes to increase their appeal.
- Simplify the application process. Many companies now offer online applications that are easy to fill out and understand. Millennials work with and use technology on a daily basis. If a trucking company’s application process can’t keep up with modern technology standards, millennials aren’t going to bother applying.
- Be more social. Millennials spend a significant portion of their day on social media. They use it to keep in touch as well as look for jobs (62%). Truckers themselves report using social media platforms daily (75%) so the opportunity for crossover is huge. Posting about job openings on social media and encouraging existing employees to share the post can help spread awareness and increase millennial interest.
- Emphasize work-life balance. Millennials are the first generation that is willing to take a cut in pay in order to be happy while working than to make more money but be miserable while doing it. Trucking companies will need to underscore aspects of the job that appeals to younger applicants such as flexible hours, the opportunity to travel and see new places, and time with family.
- Push high-tech systems. The existing pool of truck drivers may grumble about learning new technology, but millennials prefer it to antiquated systems. Trucking companies need to emphasize that driving a truck is much more than sitting behind a wheel. Highlighting apps, software, and other high-tech advancements can pique younger generations’ interest.
- Cultivate an irresistible company culture. Applicants want their potential employers to see them as more than just another resume. Millennials will overlook a smaller salary in favor of benefits and perks like mentoring programs, appreciation events, and employee outings.
Trucking companies need to address all the challenges and risks facing their operation. To learn more about managing recruitment challenges and trucking risk, contact the experts at Interstate Motor Carriers.
Posted on February 07, 2019
Although native to China, India, and Vietnam, the spotted lanternfly has invaded eastern Pennsylvania and southwestern New Jersey. In their indigenous countries, natural predators keep the spotted lanternfly population in check. However, such predators don’t exist in PA or NJ. Because of this, in combination with their voracious eating habits, both states have labeled the spotted lanternfly an invasive species.
What This Means for Trucking Companies
While insect populations may not seem like a significant concern to fleets, this is not the case for trucking companies that do business in PA, NJ, and parts of VA. Several counties issued quarantines, which require truckers to undergo spotted lanternfly training. Once drivers complete the training, they receive a permit allowing them to travel for work in and out of the affected areas.
The following is a list of quarantined counties:
Pennsylvania: Berks, Bucks, Carbon, Chester, Delaware, Lancaster,
Lebanon, Lehigh, Monroe, Montgomery, Northampton, Philadelphia, Schuylkill
New Jersey: Hunterdon,
How to Receive a Permit
The Pennsylvania Department of Agriculture (PDA) offers the training for management for free, and it takes about two hours to complete. The Train the Trainer course educates the business owner, manager, or supervisor on how to conduct training for relevant staff. They can then teach their drivers the rules required for the quarantine in affected counties.
Who Needs a Permit?
With the numerous regulations truck drivers have to juggle already, many trucking companies may be wondering if they have to add spotted lanternfly training to their list of responsibilities. While PDA provided a very in-depth explanation for this question, the simple answer is any business that moves vehicles, equipment, or goods in or out of the quarantine zones needs a permit.
PDA also encourages anyone traveling through the affected areas to learn how to identify this pest to avoid spreading it elsewhere. To learn more about rules and regulations affecting the trucking industry, contact the experts at Interstate Motor Carriers.
Posted on January 25, 2019
The Tax Cuts and Jobs Act has resulted in significant changes to tax law not seen since the Reform Act of 1986. With modifications made to multiple tax codes, trucking companies need to be ready to address the changes. The following are some of the most significant alterations trucking businesses need to prepare for:
- Depreciation and equipment deals. Prior to the new tax law, businesses could only take advantage of bonus depreciation for new equipment. Now, lawmakers expanded this coverage to used equipment as well. In addition, trucking companies will be able to write off 100% of the cost of depreciation under the new rules. This write-off will decrease by 20% starting in 2023 before closing out entirely by the close of 2026.
- Updates to per diem rates. The IRS issued increases to special per diem rates effective through September 30, 2019. They increased per diem rates for travel within the continental United States from $63 to $66 and travel outside of the continent from $68 to $71. Another significant change is employee drivers can no longer take the per diem deduction. Considering the driver shortage and retention challenges, this is a benefit trucking companies should consider carefully.
- Changes to tax rates. One of the primary objects of the tax reform was to encourage competition by reducing the corporate tax rate. C corporations now enjoy a tax rate of 21%, a significant decrease from the previous 35%. S corporations saw a 20% deduction for domestic business income that meets certain qualifications.
These tax changes will affect planning and budgeting for trucking companies in 2019 and beyond. Fleets need to develop long-term strategies to address these changes or they run the risk of missing out on potential tax savings. As always, we recommend you speak to your accountant and tax advisor to make sure these changes are applicable to you and your trucking operation. To learn more about risk management strategies and innovative truck insurance solutions, contact Interstate Motor Carriers today.
Posted on November 07, 2018
There is some confusion among motor carriers regarding commercial vehicle rentals. The Federal Motor Carrier Safety Administration (FMCSA) exempts short-term rentals from needing to use Electronic Logging Devices (ELDs) due to the duration of usage. Drivers who fall under this exemption may continue to use paper records of duty status (RODS) in lieu of an ELD; however, there are some limitations.
Updates to the TRALA Exemption
Some motor carriers are under the impression that the exemption applies to rentals for up to 30 days. This is incorrect. In March of this year, the 30-day exemption for short-term rentals expired. While the Truck Rental And Leasing Association (TRALA) petitioned FMSCA to extend the 30-day exemption through the end of 2018, FMCSA denied the request and an 8-day exemption went into effect.
Terms and Conditions of the Exemption
FMCSA provides some basic guidelines for commercial motor vehicle (CMV) rentals.
- The exemption applies to CMV rentals for eight days or less. Attempts to release the same CMV after eight days is a violation of the exemption.
- Rental drivers need a copy of the exemption letter while operating the CMV.
- Drivers must carry a copy of their rental agreement clearly stating who is renting the vehicle and the dates of the rental.
- Drivers must keep copies of their RODS for the current day and any preceding days during the applicable eight-day period.
- All other FMCSA regulations apply during the rental.
Another provision of the rental exemption is the carrier renting the CMVs must report any accident to FMCSA within five business days. When notifying FMCSA of the incident, motor carriers need to provide the following information:
- Provide the exemption explanation (TRALA)
- Date of the accident
- Location of the accident
- Name and license number of the driver and co-driver
- Number and state license number for the vehicle
- Number of people injured
- Number of fatalities
- The cause of the accident as reported by the police
- Any citations issued to the driver
- Total time the driver spent operating the vehicle as well as their on-duty time leading up to the accident
Carriers need to submit this information via email to MCPSD@dot.gov. Failing to comply with the above provisions can lead to FMCSA revoking exemption privileges. To learn more about this exemption, other safety provisions, and truck insurance solutions, contact the experts at Interstate Motor Carriers.
Posted on October 10, 2018
Uber launched its innovative trucking app “Uber Freight” a little over a year ago with the intention of revolutionizing how truck drivers perform their jobs. The app works much like standard Uber services. However, instead of pairing a rider with a driver, the app pairs a truck driver looking for a job with nearby freight. Truck drivers can plan these jobs weeks in advance or the day of if they so desire.
Why is Uber Freight Good for Owner Operators?
One of the key differences for truck drivers booking a load with Uber Freight versus on their own is that they don’t have to negotiate the fare with shippers. Uber Freight predetermines and guarantees prices before the shipment begins. Once the driver delivers the freight, the app starts the reimbursement process and guarantees payment within seven days.
How Does Uber Freight Calculate Prices?
Uber Freight takes a number of factors into consideration when developing a delivery price. These include:
- Distance. This is one of the biggest elements in determining a price for a delivery.
- Cargo type. Some cargo is more valuable or sensitive and thus nets a higher rate.
- Location. Certain areas generate higher prices much like any other service.
- Surge pricing. Uber Freight understands supply and demand and adjusts prices to reflect the marketplace.
How Does the App Work?
Traditional Uber services don’t give the rider many options when it comes to their driver. However, Uber Freight offers Owner Operators many options to secure the best load for their rig. Drivers can swipe through a variety of available jobs rather than the app pairing them with one like Uber does for traditional riders. The app also recognizes the need for fine-tuning and allows drivers to sort by date, time, and location.
Uber Freight Perks Program
Uber Freight developed a reward program called Uber Freight Plus for drivers that frequent app users. The app offers different discounts based upon frequency such as:
- Uber Freight Plus fuel card. So long as drivers book one load per month, the app saves them 20 cents per gallon at TA/Petro truck stops and 15 cents per gallon in participating Roady’s gas stations in California, Texas, and Illinois. These individuals can also save up to 30% on Goodyear tires.
- Savings on truck purchases. Once an individual hits 10 loads per month, they can save up to $16,000 at Navistar on new trucks or earn a $4000 rebate for used trucks from participating brands. Navistar also offers 20-50% off the cost of parts and vehicle maintenance.
- Other perks and benefits. There are several bonuses for drivers who use the Uber Freight Plus app such as discounts on phone plans with Sprint.
The app also learns driver preferences over time much like Pandora creates unique stations for its users. The app pays attention to the driver’s preferences, such as where they prefer to travel, and makes recommendations on available jobs. Drivers can also list their availability to help companies match with them.
Uber Freight can be a major benefit to independent operators and small fleets. Harnessing the power of innovative trucking technology can help truck drivers decrease the amount of time they spend looking for jobs and improve their overall bottom line. To learn more about enhancing and protecting your trucking operation, contact the experts at Interstate Motor Carriers.