Skip to Content

Category Archives: News

ELD Provision in Transportation Bill Missing Crucial Support in Congress

A provision in a House funding bill that would delay implementation of electronic logging devices for carriers that serve the agricultural sector faces an uphill battle and drew immediate criticism from the trucking industry.

Language in the same bill that would pre-empt state laws for meal and rest breaks for truckers faces a clearer path forward, however, as it already has backing in the Senate.

A report accompanying the 2018 funding measure, advanced by the House on July 17, includes a provision that would require a study of the Federal Motor Carrier Safety Administration’s mandate for adoption of ELDs, but it has not gained traction among House leaders and senior senators. Lacking such endorsements just a few months before the mandate’s Dec. 18 implementation hurts the chances of any changes to it reaching the president’s desk.

The report directs FMCSA to provide Congress with a study within 60 days of the bill’s enactment into law that would outline options for delaying the mandate. If the legislation is reported out of the chamber, any provisions different from what Senators approve in their bill would need to be reconciled before a final bill reaches the president. If the ELD provision clears those hurdles and the bill is signed into law, FMCSA would then have two months to deliver the report to Congress.

“Many carriers have delayed purchase and installation of ELDs until they can be certain the technology will be compliant,” according to the bill’s report. FMCSA strongly backs the ELD mandate, as do industry stakeholders, including American Trucking Associations.

With carriers already preparing for the mandate, the House provision might raise alarm within the industry. However, ATA Executive Vice president for Advocacy Bill Sullivan told Transport Topics in a July 19 interview that the narrow exemption sought by a small sector of the agricultural industry is not a delay of the ELD mandate.

“Concerns about ELD compliance from some quarters of the industry, we believe, are wrongly directed at electronic logging, when they’re in fact concerns about hours-of-service rules,” Sullivan said. “The electronic logging device was a rule mandated by Congress. … Congress is who brought this to the attention of the agency. Congress is going to back it up.”

The House bill would not fund in fiscal 2018 enforcement of the mandate for carriers transporting livestock and insects. The report explained that lawmakers sought to address concerns raised by livestock haulers by calling on FMCSA to continue using its “regulatory tools to grant relief that appropriately reconciles highway safety with the unique needs of these carriers” and the livestock.

The scope of the meal and rest break provision is more far-reaching and benefits from a companion provision in a Senate aviation reauthorization bill. That provision is sponsored by Deb Fischer (R-Neb.), chairwoman of the Surface Transportation Subcommittee, which oversees trucking regulations.

The legislation calls on a “state, political subdivision of a state, or political authority of two or more states” to not enact or enforce a law having to do with meal and rest break requirements. ATA is among the groups supporting the provision and noted to its membership that it would clarify a requirement in a 1994 aviation law to block a California law signed in 2011.

The California law requires employers to provide a “duty-free” 30-minute meal break for employees who work more than five hours a day as well as a second “duty-free” 30-minute meal break for those who work more than 10 hours a day.

An attempt by Rep. David Price (D-N.C.) to strip the meal and rest break provision from the bill was rejected along party lines.

The panel also rejected an amendment by Rep. Rosa DeLauro (D-Conn.) that would have restored the Transportation Investment Generating Economic Recovery (TIGER) grants in fiscal 2018. The House bill would cancel the TIGER grants, for which Congress authorized $500 million in fiscal 2017.

Other trucking provisions tucked into the bill included prohibiting FMCSA from proceeding with a safety fitness determination rule until the DOT’s inspector general issues certain certifications required under law.

The measure, which would fund the U.S. Department of Transportation through fiscal 2018, was reported to the House floor on a 31-20 vote, mostly along party lines.

It would provide $17.8 billion for the DOT’s discretionary budget for the next fiscal year. The request from the Trump administration came in at $16.2 billion for the department.

The bill also would provide FMCSA with $758 million, a $113.6 million increase over fiscal 2017. Nearly half that funding would go toward safety assistance programs. Also, $31.8 million would go for a commercial driver license implementation program, and $43.1 million would be earmarked for high-priority activities.

The National Highway Traffic Safety Administration would receive $927 million, which would be $15 million above the fiscal 2017 level, and the Pipelines and Hazardous Materials Safety Administration would receive $268 million, which would be $3.7 million above the fiscal 2017 level.

“We have targeted funding in this bill to essential investments in safety, infrastructure and housing assistance for our most vulnerable populations,” said Rep. Mario Diaz-Balart (R-Fla.), the chamber’s top transportation funding leader.

“Safety is also a priority in this bill, with responsible increases provided for DOT’s various transportation safety programs and essential funding maintained for rail safety,” Appropriations Committee Chairman Rodney Frelinghuysen (R-N.J.) said.

0 0 Continue Reading →

Buying – and Riding – American

American manufacturing jobs are getting a boost thanks to the Federal Transit Administration’s (FTA) Buy America provisions.  Grounded in federal law, Buy America ensures that when U.S. taxpayers invest in public transportation, American workers in communities big and small benefit. The law requires that when federal taxpayer dollars are used for public transportation projects, the iron, steel, and manufactured products used must be “Made in America.” For instance, all rail cars and buses must be assembled in the U.S., and more than 60 percent of a new transit vehicle’s parts by cost must be American-made. Next year, the percentage of U.S. content required increases to 65 percent, and by FY 2020 it will rise to 70 percent. Many manufacturers already exceed that minimum, creating and supporting jobs at suppliers across the country. Just think of all the parts that go into a typical bus: besides the chassis and engine, there’s also wheels, brakes, seats, auxiliary power systems, air conditioning, windows, doors, instrumentation, and much more.

To help make this effort successful, the FTA works to bring final manufacturers and potential suppliers together. In June, more than 60 attendees took part in FTA’s Buy America Transit Supply Chain Connectivity Forum in Baltimore, Maryland, presented in partnership with the National Institute of Standards and Technology’s Manufacturing Extension Partnership. The attendees represented manufacturing firms and participated in speed networking with larger transit equipment. The next such gathering will take place during the American Public Transportation Association’s Annual Meeting and Expo[external link], October 8-11, 2017, in Atlanta, Georgia. The goal of these events is to bring manufacturers together and help make the domestic supply chain of U.S. transit systems stronger and more robust.

Public transportation not only connects Americans with jobs and services, it also supports our nation’s manufacturing sector. Buying American means riding American, too.

0 0 Continue Reading →

Bill to delay ELD mandate two years filed in House

A bill has been filed in the U.S. House to delay the compliance date of the federal government’s electronic logging device mandate two years, to December 2019. The change, if enacted, would give owner-operators two additional years to switch from paper logs to an electronic logging device.

The legislation was introduced Tuesday and referred to the House’s Transportation and Infrastructure Committee.

Texas Republican Rep. Brian Babin filed the ELD Extension Act of 2017. Babin’s introduction of the bill came a day after a House panel recommended that the U.S. DOT study whether a “full or targeted delay” of the mandate is needed. Both developments signal that efforts to engage Congress on the issue have gained traction. In a report issued Monday, members of the House cited the burden placed on smaller carriers, like owner-operators, and questions surrounding enforcement and “technological concerns” as reasons to delay the ELD mandate.

For Babin’s ELD delay bill to become law, it must be passed by the House and Senate and signed by President Trump.

Other than passed as a standalone bill, the legislation could also be attached to broader legislation, such as the DOT appropriations bills currently in the works in both chambers of Congress.

Lawmakers have used the DOT funding bills as avenues to enact trucking policy reforms in recent years, such as the reversal of some of the hours of service changes implemented in 2013.

0 0 Continue Reading →

US transportation infrastructure to end 2017 on high note

Dive Brief:

  • The U.S. surface infrastructure sector is on a growth track for the rest of the year, despite uncertainty around President Donald Trump’s much-touted $1 trillion infrastructure plan, according to Logistics Management, citing a mid-year report from Fitch Ratings.
  • The financial research company said airports and ports should continue to experience strong activity through the end of 2017. Toll roads will see a more modest boost in revenue due to toll increases and will continue to face resistance from groups opposed to tolling.
  • Despite enthusiasm for public-private partnerships in some quarters, state and local governments remain hesitant to explore the structure for infrastructure projects due to the lack of funding sources and misconceptions about how P3s work. Most public agencies will continue to finance such projects through traditional lending mechanisms.

Dive Insight:

Increased traffic through airports and ports has helped to drive related construction spending on upgrades and expansions.

For example, in May, the Broward County (FL) Board of County Commissioners authorized a $437 million expansion of Port Everglades, in Fort Lauderdale, FL. The expansion will allow the port to better accommodate the larger post-Panamax ships through the installation of new berths and the tripling of existing deepwater turnaround areas.

Port Everglades processed more than 1 million 20-foot shipping containers in 2016, bringing in $163 million in revenue.

The Federal Aviation Administration allocates money to airports across the country for infrastructure improvements like runway upgrades and repairs as well as changes to marking, signage and lighting. However, major terminal-replacement projects must be financed by the local governing authority through traditional loans or bond funding, a public-private partnership, or a mix.

Los Angeles International Airport is the second-busiest airport in the U.S., and it is currently undertaking a $14 billion overhaul. The huge spend includes the $5 billion Landside Access Modernization Program and the $1.6 billion Midfield Satellite Concourse. The new concourse will connect passengers to the airport’s main terminal by way of an underground tunnel; it will be able to service jumbo airliners from two of the 12 new gates included in the project.

The joint venture of Turner Construction and PCL Construction will build the Midfield concourse. A $2.7 billion, 2.25-mile-long people-mover included in the Landside program is expected to be delivered through a P3 but the consortium has yet to be named. That portion of the project is facing legal pushback regarding its environmental review.

0 0 Continue Reading →

Latest ‘uber for trucking’ launches app — this time, it’s from Uber itself

“Uber for trucking,” long considered a freight-matching unicorn, has come to a kind of fruition, with the ride-sharing giant today unveiling its brokerage’s Uber Freight matching app aimed at the owner-operator market with a focus on dry van and reefer loads.

The unveiling comes as one of the company’s other initiatives, its autonomous vehicle development subsidiary Otto, is embroiled in a lawsuit with Google, who claims Uber and Otto stole trade secrets related to autonomous truck tech.

Uber Freight Senior Product Manager Eric Berdinis says the company leaned on its expertise in matching supply and demand and building pricing algorithms in the passenger market, transforming that process into matching freight with owner-operators and small fleets.

“We’re technically a brokerage,” Berdinis says, “and we do that so we can take ownership of the freight and pay our drivers and carriers quickly.”

That aspect, Berdinis says, is what Uber Freight believes will differentiate the company from similar services already in the marketplace.

“We value [prompt payment for delivery] as one of our big promises to our app users,” he says. “Regardless of when the shipper pays us, we’ll pay out for any load that is taken out on our app within a couple days, no questions asked.”

Launched in Beta mode last year, Uber Freight partnered mostly with Texas-based owner-operators/small fleets to refine the platform ahead of Thursday’s public debut.

Caty, Texas-based Minnie Gilmore, owner-operator with her husband, Edwin, of Gilmore and Long Enterprises, came to Uber Freight via load boards she commonly utilized to book loads to fill their 2012 Freightliner Cascadia and dry van. They got a call from an Uber Freight sales rep early on, then “saw a load on a board and it turned out it was an Uber load,” Minnie Gilmore says.

Since, she and Edwin have relied on the Uber Freight app for a lot of their loads outbound from the Houston area, utilizing other brokers or load boards to get back. (Minnie says they stay mostly regional – venturing into Arkansas, Louisiana, and occasionally Memphis, where the couple lived until 2013.)

Interest from carriers “has been overwhelming,” Berdinis says. “The challenge has been scaling out to meet the demand” with freight. Owner-operators and fleets nationwide interested in matching with loads through Uber Freight can now start the process of signing up with the brokerage via this link.

“We are a registered broker so we do go through the normal vetting process,” Uber Freight Director Bill Driegert says. Uber Freight will not work with Conditional or Unsatisfactory-rated carriers. Others, once approved, will be able to see available truckload dry van and reefer loads, paired with non-negotiable fixed rates to the truck. However, Driegert adds feedback from beta users could warrant the company considering rate flexibility and in-app negotiation tools later, as have been utilized by a variety of other brokers in the tech-enabled “uber for trucking” space to date

Gilmore, who works the phones at the home base in Caty while her husband operates the truck, says in-Texas freight is somewhat plentiful, at least in their area. Gilmore and Long relies on the app today for most of Edwin’s outbound hauls, and Minnie Gilmore appreciates the quick book-now options in-app, which cut out most needs for a phone call. It’s taken a bit of the home-dispatch burden off of her shoulders, as Edwin’s better able to do a lot of it on the road. Constant check calls, too, are eliminated under loads booked through the app, as progress on the load is automatically tracked. 

Minnie Gilmore adds that rates delivered by the company’s pricing algorithm, thus far, seem to be “a little better” on average than what she’s been seeing from brokers working the load boards.

Uber Freight inks contract rates with its shippers but delivers more dynamic, market-based pricing to carriers, Driegert says, based on proprietary algorithms developed in part by the company specialist who led development of the surge-pricing methodology in Uber’s passenger vehicle service.

With launch today, the app enables searches for nearby loads based on a user’s current location, and likewise in origin/destination pairs, making some modicum of advance load planning possible. Berdinis says that more sophisticated planning features will emerge as the inevitable result of taking user feedback into account.

The primary limiting factor, at least as of now, Minnie Gilmore says, has been freight availability outside of Texas, something Berdinis suggests is changing with shipper interest around the nation.

In some ways, Uber Freight’s betting on the owner-operator base to answer the chicken-egg question of any freight-matching platform – which comes first, the freight or the driver?

“One of the tenants of building out Uber Freight is making drivers’ lives easier and helping them grow their business,” Berdinis says. “Our users are everything.”

“Our goal is to keep any of our users completely running and completely utilized,” Driegert adds.

If freight was plentiful enough in the network, via the app, to keep the Gilmore and Long van loaded all the time, would they use it exclusively? Yes, Minnie Gilmore says, believing “it’s always easier if you stick with one broker rather than having to be all over the load boards. Right now, they don’t have the freight to do it, but if they did, we would.”

0 0 Continue Reading →

YOUR SHOPPING BAG