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DOT Awards $900 Million in BUILD Grants

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Traffic in Aurora, Colo. This stretch was one recipient of a BUILD grant. Traffic stopped due to weather on Interstate 70 in Aurora, Colo. This stretch will benefit from a BUILD grant. (David Zalubowski/Associated Press)

Transportation Secretary Elaine Chao has announced the latest recipients of the Better Utilizing Investments to Leverage Development discretionary grants.

Some $900 million will be dispersed across 35 states to support 55 infrastructure projects. The grants, announced Nov. 12, help fund road, bridge, transit, rail, port and intermodal transportation projects. The BUILD program is meant as a replacement for the Transportation Investment Generating Economic Recovery (TIGER) program, which was popular with state and local agencies.

FMCSA’s hours-of-service (HOS) proposal was released.

“The Administration is targeting BUILD transportation grants to repair, rebuild and revitalize significant infrastructure projects across the country,” Chao said.

No individual grant was more than $25 million, and no state was awarded more than $90 million. Half of the funding was awarded to projects in rural areas.

North Carolina received three grants. One, for $22.5 million, was awarded to the North Carolina Department of Transportation to make various improvements to Interstate 95, such as widening 27 miles of the route and rebuilding overpasses. A second grant, for $15 million, will be used to reconstruct roadways and realign intersections in Greenville to improve mobility and safety in the city. Some $13 million will be used to construct connector roads in the town of Mooresville, which straddles I-77.

The port of Massachusetts will benefit from a BUILD Grant.

A crane lifts a container at the Conley Terminal. (Massachusetts Port Authority.)

“The highly competitive BUILD grant program provides federal funding for major infrastructure projects — including multimodal and multijurisdictional projects — that improve our transportation networks and enhance quality of life,” said Rep. David Price (D-N.C.), chairman of the House appropriations subcommittee on Transportation, Housing and Urban Development and Related Agencies.

In Colorado, the city of Aurora was awarded $25 million to build a new interchange at the intersection of I-70 and Piccadilly Road, which is meant to ease congestion in the growing area. I-70 is Colorado’s main east-west corridor.

A $20 million grant will help the Massachusetts Port Authority expand the Conley Container Terminal in Boston. The federal funding is expected to help the terminal increase its volume capacity by 100,000 containers.

“As someone who previously worked at Conley Terminal as an ironworker, I am especially pleased to see Massport receive this major federal grant to help expand our freight facilities,” said Rep. Stephen Lynch (D-Mass.). “This $20 million will help increase capacity and efficiency at Conley Container Terminal and continue to provide high quality blue-collar jobs for our state and the New England region.”

Some $18 million was awarded to help extend a three-mile portion of U.S. Route 30 in East Canton, Ohio, which is about 65 miles southeast of Cleveland. The extension is meant to increase economic opportunities in the area.

“This grant will help complete the important expansion work that the city is undertaking and boost opportunities for economic growth and job creation,” said Sen. Rob Portman (R-Ohio). “Opening access to the trucking industry on Route 30 is critical for the safety conditions and growing energy industry in the Marcellus and Utica shale region in Northeast Ohio.”

Projects are selected on the basis of a number of factors, including safety, economic competitiveness, environmental sustainability, innovation and partnerships with industry representatives.

STATE CITY/COUNTY PROJECT GRANT FUNDING EST. PROJECT COSTS
AK Anchorage Petroleum and Cement Terminal $25,000,000 $171,578,584
AL Florence Additional Lanes on US-72 (Florence Boulevard) $14,880,000 $19,850,000
AL Madison County Blake Bottom Road Widening Project $9,268,804 $11,586,005
AL Baldwin Waterway Village Multimodal Access Project $14,404,831 $23,000,000
AZ Florence Inland Port Arizona Improvement Project $15,373,698 $18,073,699
AZ Phoenix Phoenix Sky Harbor Northside Rail Expansion $24,000,000 $239,057,522
CA Lancaster GROW LIFE: Growing Regional Opportunity with Leveraged-Infrastructure Fleet Expansion $8,683,480 $14,014,352
CA Fresno Veterans Boulevard Interchange, Extension and Grade Separation Project $10,540,582 $71,663,764
CO Colorado Springs Colorado Military Access, Mobility and Safety Improvement Project $18,350,000 $127,400,000
CO Aurora I-70/Picadilly Interchange $25,000,000 $56,600,000
FL Jacksonville International Cargo Terminal Modernization Project $20,000,000 $72,700,000
FL Orlando The Orange County Local Alternative Mobility Network Project $20,000,000 $40,009,169
FL Miami The Underline Multimodal Mobility Corridor $22,360,552 $69,941,592
HI Honolulu Ala Moana Boulevard Elevated Pedestrian Walkway $20,000,000 $30,000,000
IA Des Moines Central Iowa Water Trail: Phase 1 Dam Mitigation and User Access Project $25,000,000 $31,250,000
IA Dubuque Northwest Arterial/John Deere Road Corridor $5,452,023 $10,545,029
IL Carbondale Southern Illinois Multi-Modal Station (SIMMS) $13,986,000 $17,482,500
IL Normal The Underpass Project at Uptown Station $13,000,000 $22,692,120
IN Boone County I-65 Mobility and Access Project $16,000,000 $50,600,000
KS Olathe Interstate 35 & 119th Street Interchange Reconfiguration Project $10,000,000 $25,400,000
KS Hays Northwest Business Corridor Truck Route Road Improvements $6,506,686 $10,787,131
KY Paris BUILD US 460 $10,200,000 $17,318,000
KY Campbellsville Heartland Parkway $9,800,000 $21,250,000
KY Paducah Paducah Riverfront Infrastructure Improvement Project $10,400,000 $11,492,296
LA Ruston Monroe Street Corridor Project $17,191,530 $23,699,899
LA Baton Rouge Plank-Nicholson Bus Rapid Transit $15,000,000 $40,218,000
MA Boston Conley Terminal Container Storage and Freight Corridor $20,000,000 $65,841,791
ME Lubec Lubec Safe Harbor $19,650,000 $19,689,750
ME Augusta Station 46 Bridge Replacement Project $25,000,000 $30,000,000
MO Milan East Locust Creek Reservoir (ELCR) Improvements $13,459,009 $22,686,610
MO Springfield Grant Avenue Connect Parkway Project $20,960,822 $26,201,028
MS Gulfport Interconnecting Gulfport $20,460,000 $32,220,000
MS Starkville MS 182/MLK Corridor Revitalization Project $12,655,840 $15,818,724
MT Missoula County Mullan BUILD: Proactively and Collaboratively Building a Better Missoula $13,000,000 $28,372,000
NC Robeson and Cumberland Counties I-95 Resiliency and Innovative Technology Improvements $22,500,000 $685,115,000
NC Mooresville Silicon Shores East-West Connector Road $13,609,131 $21,730,195
NC Greenville Transportation Accessibility, Safety and Connectivity (TASC) Project $15,000,000 $24,000,000
NE Omaha 120th Street Improvements $16,960,000 $21,200,000
NH/VT Hinsdale, N.H., and Brattleboro, Vt. Vermont/New Hampshire Route 119 Bridge Project $12,000,000 $50,000,000
NM Santa Fe US285 Safety and Resiliency Project $12,500,000 $115,000,000
OH Canton US Route 30 Freeway Extension Project $18,000,000 $116,675,110
OR Medford Southern Oregon Corridor Resiliency and Congestion Relief Project $15,500,000 $39,370,000
PA Philadelphia PATCO Franklin Square Station Reopening Project $12,580,000 $25,160,000
PA Allegheny County PIT Cargo Building 4 Intermodal Freight Transfer Facilities Development $18,690,047 $23,362,559
RI Providence Washington Bridge Rehabilitation and Redevelopment Project $25,000,000 $70,000,000
SC Charleston Ashley River Crossing $18,149,750 $22,749,750
SD Brookings Bridging the Interstate Divide $18,677,630 $23,347,037
TN Memphis Memphis Innovation Corridor $12,000,000 $73,831,000
TX Beaumont Multimodal Corridor Expansion and Improvement Project $18,000,000 $101,245,000
TX Houston Shepherd and Durham Major Investment Project $25,000,000 $50,000,000
WA Everett Mills to Maritime Property Acquisition $15,500,000 $27,700,000
WA Spokane Rail-Truck Transload Facility Project $11,300,000 $16,900,000
WI Odanah Old Odanah Road (County A) Bear Trap Road Project $2,376,808 $2,704,808
WV Charleston I-64 Widening: Nitro to St. Albans Project $20,000,000 $265,000,000
WY Sublette County Dry Piney Creek Wildlife Habitat Connectivity $14,544,000 $18,180,000

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Thank you to all our Veterans here in the USA and across the World!

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FMCSA Receives More Than 2,600 Comments on HOS Proposal

FMCSA Receives More Than 2,600 Comments on HOS Proposal

Trucks park for a rest break along the side of Interstate 66 in Manassas, Va. (Jim Galligan for Transport Topics)

The variety of the more than 2,600 written public comments on the Federal Motor Carrier Safety Administration’s proposed changes to its hours-of-service rules FMCSA HOS policiesillustrate the challenge of finding solutions that address the concerns of the trucking industry’s different segments.

The agency’s request for public comment on the HOS Notice of Proposed Rulemaking ended on Oct. 21, and the agency must now digest the comments and craft a final rule, a process that could take months.

The proposal, announced Aug. 14, would allow truck drivers more flexibility with their 30-minute rest break and with dividing their time in the sleeper berth. It also would extend by two hours the duty time for drivers encountering adverse weather and extend the shorthaul exemption by lengthening the drivers’ maximum on-duty period from 12 hours to 14 hours and increasing the distance limit in which drivers can operate from 100 air miles to 150 air miles.

American Trucking Associations said it mostly supports the proposed changes, but had a few precautionary comments on some of the provisions.

While ATA fully supports the agency’s proposed 7/3 split of the 10-hour sleeper berth period, it said that FMCSA should conduct a field pilot program and only propose further flexibility — such as a 6/4 or 5/5 split — if the results demonstrate that additional splits would not harm driver performance or road safety. FMCSA had planned to conduct such a pilot, but has since decided it has enough data to make a determination.

The Owner-Operator Independent Drivers Association and some drivers would like to see the final rule offer an option of 5/5 hour or 6/4 hour split.

“Beyond expanding the split sleeper provision to 7/3, FMCSA should also include 6/4 and 5/5 splits in any final rulemaking,” OOIDA wrote, noting that 85% of members surveyed in 2019 supported the idea. “Drivers said they would use the 5/5 split an average of 2.02 times per week and the 6/4 split an average of 1.86 times per week,” the group said.

The Commercial Vehicle Safety Alliance expressed concern about potential confusion regarding changes to the 30-minute rest break rule. “FMCSA’s proposed change to the 30-minute rest break requirement eliminates the need for the existing exemptions to the rule,” it wrote. “Upon finalization of the change, FMCSA should revoke all existing applicable on-duty exemptions to the 30-minute rest break requirement.”

ATA said it supports the proposed expansion of the shorthaul exemption, but expressed concern that it could increase the number of drivers who would be no longer be required to use electronic logging devices or records of duty status relative to current rules.

The Truckload Carriers Association also expressed concern about the impact of this proposal on the ELD mandate.

“Many drivers who are currently required to log their HOS with an ELD could be exempted from this obligation under the proposed rule change. TCA is opposed to any proposal which would weaken the ELD mandate,” it said in its comments.

Like several other driver and trade organizations that filed comments, ATA and other trade organizations also expressed a lack of clarity regarding the adverse driving conditions provision in the proposal that would give drivers an extra two hours of driving time in bad weather.

“Although ATA supports the proposed changes allowing a driver to extend their on-duty time up to two additional hours, the agency should review and revise the existing definition and provide guidance on what constitutes ‘adverse conditions,’ ” ATA wrote.

Some organizations — including the National Transportation Safety Board, National Safety Council, Teamsters Union, Advocates for Auto and Highway Safety, and Road Safe America — oppose any changes to the HOS rules.

“Given this rulemaking combined with the FMCSA’s inaction on sleep apnea, fatigue risk management, and other fatigue countermeasures, the NTSB is concerned about the FMCSA’s efforts to mitigate fatigued driving among commercial drivers,” NTSB wrote. “The NTSB encourages the FMCSA to emphasize safety over flexibility in this and any future rulemaking pertaining to HOS and other fatigue rulemakings.”

The National Safety Council wrote, “If enacted, this rule would have a direct impact on driving safety by raising the risk for commercial motor vehicle drivers and all those who share the road with them.”

But Rachel Snow, a truck driver who lives in Tooele, Utah, filed comments that appeared to represent a widespread feeling about the proposal.

“I have been driving for 21 going on 22 years, accident-free,” Snow wrote. “I am 42 years old and I have always found the restrictions of the FMCSA HOS to be a burdensome restraint on my abilities. I understand that what is being proposed is not everything I would like to see offered, but it is a step in the right direction.

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UPS Predicts Record Holiday Season

UPS Predicts Record Holiday Season

 John Sommers II for Transport Topics
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UPS Inc. says it has been preparing for what it expects to be a record-breaking holiday shipping season by building additional automated facilities and adding jets to its fleet to handle more packages as online shopping continues to grow.

UPS Worldport

The shipping giant said retail sales are forecast to grow more than 5%, and online holiday retail sales are likely to reach a new high.

EARNINGS: UPS Net Income Up 15.9%, Revenue Rises 5%

The addition of automated facilities allows the company to handle another 400,000 pieces per hour, UPS said. The company expects to deliver more than 32 million packages a day, up 50% over its regular daily volume.

The company is hiring 100,000 seasonal workers for the holiday shipping season, which starts the week of Thanksgiving, spikes the following week and lasts past Christmas with returns and purchases using gift cards. This year, however, a late Thanksgiving means a shorter holiday shopping season overall.

UPS also expects that a shift toward more widespread next-day delivery will drive increased demand for its services.

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Indiana DOT Announces $99 Million for Local Roads

Indiana DOT Announces $99 Million for Local Roads

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Indiana DOT announces funding for local projects. The Indiana Department of Transportation and Gov. Eric Holcomb recently announced the distribution of $99.2 million in state matching funds across local government agencies to fund infrastructure construction projects.

The funding, made possible through the Next Level Roads: Community Crossings Initiative, will be dispersed across 229 cities, towns and counties, according to an INDOT press release issued Oct. 10. Community Crossings, which Holcomb signed into law in April 2017, has awarded more than $612 million in state matching funds to local government agencies.

The purpose of the program is to boost economic vitality by helping communities with projects such as road resurfacing and preservation, bridge rehabilitation and replacement and road reconstruction to comply with the Americans with Disabilities Act. Material costs associated with crack filling and chip sealing also are eligible for funding. Chip sealing involves adding a coating of liquid asphalt and aggregate to protect the surface of the road.

“High-quality local roads and bridges are an important part of our formula for attracting jobs, growing our economy and building strong communities,” Holcomb said. “Our fully funded Next Level Roads plan and record-b

Holcomb

reaking level of construction has gained Indiana national recognition for our approach to infrastructure, and Community Crossings takes that commitment to the local level all across the state.”

The Community Crossings program has grown in popularity since its inception. According to the press release, the latest round of funding attracted more applications than there were dollars available. INDOT accepts applications for the program twice a year, in January and July. There is a $1 million cap annually per community for local government agencies interested in applying.

There will be an estimated $100 million available to communities that apply during the January 2020 call for projects. INDOT evaluates projects on a basis of need, traffic volume, local support, regional economics and impact on mobility.

“Efficiently and safely moving people and commerce is vital to the quality of life and vitality of our communities,” said Indiana DOT Commissioner Joe McGuinness. “INDOT is excited to partner with communities through this matching grant program to make infrastructure investments that contribute to the success of all Hoosier cities, towns and counties.”

Indiana DOT announces funding for local projects.

In order to be considered for funding, local government agencies must provide matching funds from a source approved for road and bridge construction. Larger communities must match 50%, while smaller ones must match 25%. They also are required to submit an asset management plan approved by INDOT for maintaining existing roads and bridges.

The funding is meant to help smaller communities, although all Indiana city, town and county government agencies are eligible to apply. State law requires that 50% of the available matching funds annually get awarded to places within counties that have populations of 50,000 or fewer people.

In November 2018, INDOT divided $100 million across 283 cities, towns and counties for local road projects through the Next Level Roads: Community Crossings Initiative.

INDOT also has used federal funds to support local road projects. In March 2018, the agency directed $161 million to rural road, bridge and sidewalk projects. The money was divided among 66 towns, cities and counties to support bridge rehabilitations, resurfacing efforts and traffic safety projects. The federal funds were supplemented with local funds, creating $212 million for those infrastructure projects.

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Perspective: Connecting the Trucking Industry

This is an interesting article from TransportTopics.  Use www.eTruckBook.com and the Transportation Directory on www.TFSMall.com to get networking and connected!

https://www.ttnews.com/articles/perspective-connecting-trucking-industry/

October 9, 2019 1:15 PM, EDT

Perspective: Connecting the Trucking Industry

The business of moving freight is all about connection. The connection between shipper and carrier, between driver and vehicle, between technician and engine — all of these are critical.

As an intermodal carrier, I see these connections in practice every day. Living in that space between the port and the railhead or highway and distribution center is part of the rhythm of my daily life.

As I take up the responsibility of being American Trucking Associations’ chairman, I have spent a lot of time thinking about the importance of connections. We have important connections — to our fellow members, to our state associations, to our affiliates — and those connections help us raise our collective voice to connect to lawmakers, regulators and law enforcement to move our industry forward.

Randy Guillot

To me, it is those connections that make our federation strong. They allow us to, when we work together to strengthen them, effect change. Just look at what we have been able to accomplish since we gathered last in Austin: We were able to secure critical relief from onerous state meal-and-rest-break rules; we changed and shaped the conversation on infrastructure; we made the case for sensible hours-of-service reform, resulting in a proposal to provide flexibility for our drivers.

Our industry, despite our differences and diversity, faces the same challenges — finding and keeping good drivers; congestion; proliferation of tolls; over-regulation; and increasing threats from an aggressive plaintiff’s bar that sees our trucks as rolling piggy banks.

As chairman, I plan to spend the next year working to bring our industry even closer together to make progress on as many fronts as possible. Despite the uncertainty that comes with a national election, I firmly believe we can do so much if we work together.

It would be easy to throw our collective hands up and walk away, put our feet on the desk and wait to see how things shake out next November. But that’s not in our DNA as truckers.

Most of us have been in this business our whole lives. Growing up, my family vacations were with my father to see customers. Delaware, Michigan, California, Tennessee … we would hit the road to see the country, but also to connect with shippers.

From those earliest days, trucking has been part of my life. When I was 13 I learned to type so I could work in the billing department. I worked my way through the business as I went through school — dispatch, safety, sales — connecting with as many parts of our trucking company as I could.

I even, for a short time, drove a truck for our company. That brief experience taught me a lot about trucking — notably, that while I can drive a truck, I am not a good truck driver. Certainly not when compared to the million-mile champions on our America’s Road Team or at the National Truck Driving Championships. It gave me a real appreciation for what the men and women who literally make our industry go do on a daily basis.

That knowledge inspires me to work on their behalf to improve this industry. To bring more of our resources to bear on issues like developing our next generation of drivers and finding new, young, energetic men and women to drive our trucks. To safely and responsibly integrate technology into our industry. To ease pressure on those drivers with the hours-of-service by working with FMCSA to safely bring flexibility to their daily lives.

These goals are achievable if we work together, and that is my challenge to you. Come together. Deepen our connections to each other and to this federation. Share your time and your talent with your fellow executives by joining ATA or coming to a Call on Washington, or reaching out to your representative on the issues critical to your business.

Being at the table is important — not just to ATA, but to your businesses. From personal experience, I can tell you the connections you make as part of this federation can serve not just the larger industry; it will benefit your company.

Through my work at ATA and the Louisiana Motor Transport Association, I have been able to participate in some great undertakings on behalf of trucking: The rebuilding of the Intermodal Motor Carriers Conference, the founding of the North American Chassis Pool Cooperative and, now, it has given me the privilege of serving as ATA chairman.

It was my connection to trucking, to my colleagues in ATA and LMTA, to our customers, to our friends in the industry, that allowed these things to happen.

Those connections are important, and I encourage you to join me in deepening and developing those connections this year.

Guillot is president of Triple G Express Inc., an intermodal motor carrier based in the New Orleans area. American Trucking Associations is the largest trade federation in the trucking industry and has headquarters in Arlington, Va., as well as affiliated associations in every state. ATA owns Transport Topics.

 

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Ryder System’s Ruth Lopez named winner of Influential Woman in Trucking award

Ryder System’s Ruth Lopez named winner of Influential Woman in Trucking award

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California Passes Bill That May Affect Independent Contractor Status for Truckers

California Passes Bill That May Affect Independent Contractor Status for Truckers

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California lawmakers have passed a bill that codifies into law a 2018 state Supreme Court decision that makes it easier for independent contractors to become reclassified as employees of motor carriers.

Assembly Bill 5, passed along party lines by the state Senate on Sept. 10 and Assembly on Sept. 11, was the latest development by officials in California attempting to reduce what they have called widespread misclassification of independent contractors.

The bill was signed into law on Sept. 18 by Democratic Gov. Gavin Newsom, who had publicly voiced his support for the legislation.

California has passed a bill to reclassify independent contractors, owner-operators working for motor carriers.

The bill has been opposed by the California Trucking Association because the trade organization said it will require many motor carriers to use an employee standard known as the “ABC test” that truckers have said makes it difficult, if not impossible, to continue the use of independent contractors.

The test was upheld by the California high court in a case styled Dynamex Operations West Inc. v. Superior Court of Los Angeles.

The B-prong of the ABC test is the most troublesome, carriers have said. It dictates that for a motor carrier to establish that a worker is an independent contractor that the worker must perform work that is outside the usual course of the hiring entity’s business.

Greg Feary, a partner in the Indianapolis-based trucking law firm Scopelitis, Garvin, Light, Hanson & Feary, P.C., called the California legislation “Dynamex on steroids.”

“I think it will ripple through the industry and cause some changes for sure,” Feary told Transport Topics. “For the most part, the ABC test would be used under this statute for courts or other adjudicators in the government to determine whether an owner-operator providing truck driving services to a motor carrier is an independent contractor. It’s a controversial bill.”

“AB 5 could have been amended to address worker misclassification issues, as well as protect the 70,000 [predominantly minority] truckers currently operating as independent contractors,” California Trucking Association’s CEO Shawn Yadon said in a statement. “There is no reason why protecting workers does not include defending the right of tens of thousands of drivers who have built their businesses as independent truckers, invested hundreds of thousands of dollars in clean trucks and have operated successfully.”

Fuel Tax Hike Repeal

Yadon added, “AB 5 will have implications that will go beyond worker classification. Like the rest of the nation, California is experiencing a shortage of truck drivers, this measure will aggravate the problem by removing thousands of drivers from rosters as many have indicated they will move to other states or seek a different line of work altogether.”

AB 5 proponents created a scenario in which they chose winners and losers by carving out exemptions for some professions while excluding others, California Trucking Association said.

It added that AB 5 was amended to allow drivers working within the construction industry a narrow window to continue operating as independent truckers for a two-year grace period. However, the bill will severely limit work opportunities for tens of thousands of independent owner-operators in other business sectors.

In California, more than 136,950 trucking companies remain primarily small, locally owned businesses with small fleets and independent drivers, according to California Trucking Association.

“Today the Legislature made it clear: we will not in good conscience allow free-riding businesses to profit off depriving millions of workers from basic employee rights that lead to a middle-class job,” said Assemblywoman Lorena Gonzalez, the bill’s author. “Employers looking to cut costs at the expense of workers have misclassified more than a million Californians and in turn, we have seen income inequality increase, union membership decline and the power of working people diminish.”

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What is USMCA?

The United States-Mexico-Canada Agreement, also known as the USMCA, is a trade deal between the three nations which was signed on November 30, 2018. The USMCA replaces the North American Free Trade Agreement (NAFTA), which had been in effect since January of 1994. Under the terms of NAFTA, tariffs on many goods passing between North America’s three major economic powers were gradually phased out. By 2008, tariffs on various agricultural and textiles products, automobiles, and other goods were reduced or eliminated. USMCA came about as a result of U.S. President Donald Trump’s efforts to replace NAFTA based on an argument that the terms of NAFTA were unfair to the United States. USMCA began as the U.S.-Mexico Trade Agreement, announced in late August of 2018. A few weeks later, on September 30, 2018, the United States and Canada formally agreed to replace NAFTA with the new agreement, and the USMCA was finalized a few weeks later.

On May 31, 2019, a day after the three countries began the formal process for the revision of NAFTA, Trump said starting June 10 the U.S. will impose a 5% tariff on all Mexican imports. The tariff will gradually increase until Mexico stops migrants from crossing the border into the U.S. Experts say this policy will jeopardize the ratification of the trade deal.

The USMCA is a result of U.S. President Donald Trump’s efforts to replace NAFTA based on an argument that the terms of NAFTA were unfair to the United States.

Important Provisions

Per the Office of the United States Trade Representative, the USMCA is a “mutually beneficial win for North American workers, farmers, ranchers, and businesses.” NAFTA aimed to create a free trade zone between the U.S., Canada, and Mexico, and the USMCA utilizes NAFTA as a basis for a new agreement. While the USMCA has a broad impact on trade of all kinds between the three named nations, some of the agreement’s most important provisions include the following:

  1. Dairy and Agriculture
    Under the terms of the USMCA, the U.S. enjoys tariff-free access to 3.6% of Canada’s dairy market. U.S. farmers can now sell more of their agricultural products in Canada without being subject to Canadian pricing provisions which place limits on imports of some of those products. U.S. agricultural exports to Canada may increase by about $70 million; while this is not an insignificant figure, it nonetheless represents just a fraction of a percent of U.S. GDP. On average, the U.S. has sent well over $600 million worth of dairy products to Canada for each of the past several years.
  2. Automobiles
    One of the most significant portions of the USMCA stipulates new trade regulations for automobiles and automotive parts. Under NAFTA, cars and trucks with at least 62.5% of their components manufactured in one of the three participating countries could be sold free of tariffs. The USMCA increases that minimum requirement to 75%. A major reason behind the change in policy was a desire among all three nations to incentivize the manufacturing of cars in North America. At the same time, the USMCA stipulates minimum wages for workers in the automotive manufacturing process: 30% of the work done on eligible vehicles must be accomplished by workers earning at least $16 (USD) per hour, as of 2020. The agreement stipulates an increase in wages over subsequent years, as well.
  3. Intellectual Property
    The USMCA makes provisions for intellectual property and digital trade which were not included in NAFTA. Among other changes to trade policy, the new agreement extends the copyright period to 70 years beyond the life of the creator, an increase of 20 years in some cases. The USMCA also addresses new products which were not part of international trade when NAFTA was drafted in the early 1990s: the new agreement prohibits duties on music, e-books and other digital products. Internet companies were also removed from liability for content generated by their users.
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Boost Driver Safety and Your Bottom Line

Boost Driver Safety and Your Bottom Line

Focus on safety and risk management to control rising insurance costs

Many commercial fleets are seeing premium increases for the second or third year in a row, and some have even seen rates double – the direct result of increasingly high legal settlements and skyrocketing auto repairs.1 Fearing loss of profits (or no profit at all), insurance companies are being very selective when it comes to renewals and new quotes.  It’s important to work with an insurance broker who understands the market and can advocate on your behalf.

HUB International has identified several ways to help you navigate the current hard insurance market. Follow these 10 best practices to get ahead of your next policy renewal.

  1. Keep CSA safety scores low.  Address the easiest and most preventable violations – maintenance for tires and lights. Pre-trip vehicle inspections can prevent most of these issues. Tackle unsafe driving violations through training and accountability programs.
  2. Implement a safety program across your fleet.  Keep safety concepts at the forefront of your driver’s minds and actions by instituting training on vehicle inspections, hours of service regulations and defensive driving concepts during training.
  3. Hold drivers accountable.  Drivers need to know about both best practices and company rules. They also need to know what will happen when violations occur.
  4. Hire good people. Make sure the drivers you bring in are a good fit for your organization. This is especially critical if your organization does not have an extensive onboarding or ongoing training program.
  5. Manage your losses. Manage and report all claims in a timely manner and keep good documentation.
  6. Know your numbers and tell their story. Make sure you are familiar with your loss trends so you can talk to the insurance carrier about them.
  7. Be proud of what you’re doing right – and talk about it.  If your fleet is utilizing best practices, let the insurance carrier know what you’re doing well so they can include it in your pricing model.
  8. Incentivize your drivers. Create an incentive program that rewards clean roadside inspections, no preventable crashes over various intervals and positive citizen comments.
  9. Prevent driver turnover.  Know your turnover rates and be able to explain why they are what they are.
  10. Be as transparent as possible. Let your insurance broker know what your fleet does and what changes you’ve made over the last year so there are no surprises at renewal time.

 

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