Are bigger trucks the answer?

Business pushes Congress to clear bigger trucks




WASHINGTON | Tue May 3, 2011 2:24pm EDT
The United States Capitol in Washington, D.C.Image via Wikipedia 
(Reuters) - Manufacturers, retailers, and other businesses are quietly working with truckers in renewing a push for government permission to operate bigger and heavier rigs, to the dismay of unions and safety advocates.
Lobbying coalitions for hundreds of companies hope an improving economy will underscore the case that inefficiency associated with trucking capacity shortages and higher fuel expenses adds costs for shippers and consumers.

They are behind proposals taking shape in Congress to lift size restrictions. They also want to restore the flexibility of states to decide which trucks can operate on their roads.

Union and safety groups vocally oppose any change, saying bigger trucks would erode hard-won regulations and pose new hazards for truck drivers and other motorists just as U.S. traffic deaths are falling noticeably.
Also, smaller independent truckers say new size allowances would hurt their businesses by adding costs for equipment necessary to win business and compete with bigger rivals.

Randy Mullett, government relations vice president for trucking company Con-Way Inc, said business interests are working together on a range of changes in law that would affect regions and businesses differently.

"We don't want to run triples (trailers) through Washington, D.C., but we might want to in the cornfields of the Midwest," said Mullett, whose company is based in Michigan.

Mullett added the larger goal is to "find a way to make this part of the supply chain more efficient," especially with diesel fuel prices above $4 per gallon and other costs going up.

Shipping costs rose by almost 35 percent from 2004 through 2006, which translated into a 2 percent price increase for retail goods. A decrease during the subsequent economic downturn has been followed by an 8 percent shipping cost rise since 2009 due to capacity shortages, higher fuel prices and other factors, according to FTR Associates.

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The economic recovery is taking root...its a start

Commentary on " Positive Outlook for Trucking"

I think the recovery is taking root. No economy is perfect even in the greatest of boom times BUT steady signs of improvement are showing. As far as how this improvement is affecting truckers and carhaulers, the simple fact is goods have be shipped. Even after considerable damage was done to the economy in 2008 and 2009, life has gone on and food and services have to be delivered.

This alone is a stepping stone to a greater recovery.While there are challenges like high fuel costs, regulation fears , and driver shortages, they are surmountable challenges.The part of the economy that has survived the recession is growing again.
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All things considered..still signs of improvement for transportation and trucking

Positive Outlook for Trucking Industry Tempered by Rising Operating Expenses, Says GE Capital Survey

The sleeper berth is the area toward the rear ...IRVING, Texas--(BUSINESS WIRE)--Nearly three-quarters (71%) of trucking company executives surveyed by GE Capital, Transportation Finance expect business conditions to improve in 2011 but they are concerned about the impact of external and internal factors on their profit margins. The rising price of diesel, a nationwide shortage of drivers and the twin costs of complying with government regulations and maintaining their own aging fleets are all significant concerns.

For the original article click HERE


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It was bound to happen...


I have seen this coming down the pike for about a year now. Regulation after regulation is taking its toll on American Trucking companies including the Autohaulers. Simply put the economy will grind to a halt if regulation sends the costs of transporting goods skyrocketing.

In an industry like Automobiles the need to keep prices as a low as possible is paramount to success.

From KBND.com
Thursday, April 21st 2011 09:53am Greg WaldenImage via Wikipedia


This week Oregon Congressman Greg Walden is hearing some tough stories from truckers in Oregon. On a trip through his District, Walden spoke with the owner of a trucking company in southern Oregon who is forced to close because of the cost of fuel and mounting state and federal regulations. "Its was pretty depressing meeting if you want to know the truth in terms of federal regulations and the price of fuel are doing as we try to get this economy going again." Original Article


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Rep. DeFazio Cites Concerns on Mexican Truck Program | Transport Topics Online | Trucking, Freight Transportation and Logistics News


From Transport Topics
4/18/2011
 
Rep. Peter DeFazio (D-Ore.) has sent a letter to the Federal Motor Carrier Safety Administration asking the agency to address “serious concerns about the safety of Mexican trucks on U.S. roads and the potential loss of American jobs” related to the cross-border trucking program with Mexico.

The letter follows details released earlier this month by the Obama Administration on its cross-border trucking pilot program with Mexico.

DeFazio’s letter, dated Friday and addressed to FMCSA Administrator Anne Ferro, stated that the starts the “full liberalization of cross-border trucking” without addressing concerns raised by Congress.

Peter DeFazio
He also wrote he “strongly support(s)” Mexican trucks using electronic onboard recorders, but said it is “outrageous that U.S. truckers, through the federal fuel tax, will subsidize the cost of doing business” for Mexican Carriers by buying EOBR's using FMSCA money.


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Tire Business - U.S. truck orders hit 5-year high

From Tire Business.com
Staff Report

motor vehicles with permissible maximum weight...Image via Wikipedia
COLUMBUS, Ind. (April 7, 2011) — Orders for class 8 commercial vehicles in the U.S. more than doubled in March from a year ago to their highest level in nearly five years, according to preliminary data compiled by Americas Commercial Transportation Research Co. L.L.C. (ACT).

Net orders in March hit 29,200 units, ACT said, a gain of 159 percent from March 2010, putting the industry on a pace to exceed 300,000 units this year. Preliminary order numbers are subject to revision and are typically accurate to within 5 percent plus or minus, ACT added.

truck parts: rims
“With the uptrend firmly established, the question for 2011 is now the industry’s ability to meet demand, instead of whether demand would rise to expectations,” said Kenny Vieth, ACT president and senior analyst. “History shows that production always chases demand at the beginning of the cycle. Unlike orders, the industry needs to work in unison to raise production.”

The growth in truck orders comes on top of higher demand for commercial trailers, ACT said.

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The price of diesel is on the rise....



From Truckinginfo.com
NANJING, CHINA - FEBRUARY 20:  A petrol attend...Image by Getty Images via @daylife4/5/2011

National on-highway diesel prices climbed for the second week in a row, rising 4.4 cents to $3.976. The national average is up almost 96 cents from last year.

New England experienced the smallest cost increase at 1.4 cents; California prices rose the most, 6.7 cents, to $4.323, up $1.17 from last year.


Trucking part: Clearance light, Pete Light
 


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