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3/18/2010Cities and suburbs across America are plagued by rail-induced traffic congestion, as railroad advertising continues to seek even more traffic on their tracks.
The Fort Worth Star-Telegram recently reported that a rail bottleneck southeast of the city is so bad that “children walking to and from Nash Elementary School sometimes crawl under rail cars or climb between them because the path to classes frequently is blocked by stalled trains.” According to the article, the “entire Rock Island/Samuels Avenue neighborhood is sometimes isolated, blocked from entry by even emergency vehicles, because of trains that block roads for hours.”
Alice Cuellar, who grew up in the neighborhood and is raising her family there, told the Star-Telegram she has taught her children how to crawl under the trains. She said, "You have to learn to listen for the little squeaks that tell you the train is getting ready to move and you can't go under it."
Despite the numerous dangers and the traffic nightmares imposed on Fort Worth residents, the Union Pacific and Fort Worth-based BNSF railroads that own these lines have no plans to improve the situation unless it meets their economic criteria for investment. According to the Star-Telegram, a Union Pacific spokesperson said that they have many areas in the system that are problematic and the company must "assess the return on investment" and "determine if it's a viable project."
3/17/2010It is easy to tell that the Teamsters-endorsed Los Angeles clean trucks model has nothing to do with clean air because the theme of their argument has shifted away from the environment to caring for reportedly low-income drivers, writes the Long Beach Press Telegram in their March 16 editorial.
However, “The low-income driver argument never made sense. Anybody in the business can tell you that the hardest-working independent drivers who own or lease their trucks make $100,000 a year or better, and some can make a living by working only a few days a week,” the Press Telegram said.
The 80 percent reduction in truck pollution that has occurred nearly two years ahead of schedule negates the claim from Teamsters and their supporters in local government that banning owner operators from the Port is necessary for success.
“The argument between the ports of Long Beach and L.A. isn't about clean air -- that issue has been settled by simply getting rid of dirty trucks. It's about labor and politics,” said the Press-Telegram.
“Drivers at the ports who prefer to work as employees rather than independent operators are a small minority, but about 300 of them already are members of the Teamsters. They have that right. But independent drivers have rights as well. This does not include being shut out by political operatives,” said the Press-Telegram.
The battle has now moved to the east coast. Despite the fact that the Port of New York and New Jersey last week adopted a clean truck program without the Teamsters supported ban on owner operators, a political port commission appointee nevertheless publically called for a change in federal transportation law that would allow the banning of independent small businesses from ports around the nation. “The argument is over whether to back the L.A. Clean Trucks plan, which outlaws independent drivers in favor of unionized employee drivers, or Long Beach's, which allows both,” said the Press-Telegram.
“In other words it's all about politics and the connection between pols and the Teamsters Union,” the editorial said.
3/12/2010Security Magazine, a leading industry magazine examining security threats and solutions, ranked Ryder #1 for security practices in the Transportation, Logistics, Supply Chain, and Warehousing industry sector. The ranking is published as part of the magazine’s fourth annual Security 500 feature.
“Ryder’s number one ranking validates our efforts to implement world-class security processes and standards that ensure the safety and security of our own and our customers’ people, products, and assets,” said Greg Swienton, Ryder Chairman and Chief Executive Officer. “We commend Security Magazine for continuing to track emerging trends, benchmark enterprise security performance, and share best practices that improve business results.”
Ryder’s Global Security team is charged with identifying and implementing proactive measures to reduce theft and losses; improve supply chain, cargo, and fleet security; and protect the Company’s and customers’ physical, personal, and intellectual assets. In the interest of national security and as a responsible business entity, Ryder has a number of programs in place to improve security around the Company’s rental and lease vehicle fleet.
Ryder is also certified as a Third Party Logistics Provider (3PL) in the Customs-Trade Partnership Against Terrorism (C-TPAT) for logistics operations in the U.S., Canada, and Mexico. C-TPAT is a joint government-business initiative supported by the Department of Homeland Security and U.S. Customs and Border Protection.
Find Security Magazine's top ten list for Transportation - Logistics - Supply Chain - Warehousing here
3/10/2010The American Trucking Associations’ advance seasonally adjusted (SA) For-Hire Truck Tonnage Index jumped 3.1 percent in January, following a revised 1.3 percent increase in December 2009. The latest gain boosted the SA index from 107 (2000=100) in December to 110.4 in January, its highest level since September 2008. The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 99.5 in January, down 3.3 percent from the previous month.
ATA recently revised the seasonally adjusted index back five years as part of its annual revision.
Compared with January 2009, SA tonnage surged 5.7 percent, which was the best year-over-year reading since January 2005 and the second consecutive increase. For all of 2009, the tonnage index was down 8.7 percent (slightly larger than the previously reported 8.3 percent drop), which was the largest annual decrease since a 12.3 percent plunge in 1982.
ATA Chief Economist Bob Costello said that the latest tonnage reading, coupled with anecdotal reports from carriers, indicates that both the industry and the economy are clearly in a recovery mode. “While I don’t expect tonnage to continue growing as robustly as it did in January, the industry is finally moving in the right direction. Although there are still risks that could throw the rebound off track, the likelihood of that happening continues to diminish.”
To listen to the blogcast, click the link below. To download to your computer, right click and choose "save as."
http://www.truckline.com/Newsroom/Industry Documents/03 10 10 tonnage podcast.mp3
3/3/2010Navistar International Corp. presented a $10,000 check to ATA in support of its initiative to recruit returning military personnel into the trucking industry, TheTrucker.com reported last week.
“We’re proud to support the ATA’s driver recruitment effort,” said Jim Hebe, Senior Vice President, North American sales operations, Navistar. “Through this initiative the ATA is taking a proactive step to address the challenges that will face the trucking industry in the years to come.”
Though driver retention is up due to the current U.S. economic recession, the trucking industry has and will continue to face driver shortages as freight volumes begin to increase.
“Navistar launched its ‘Drive for Jobs’ program late last year in conjunction with the first customer delivery of the International LoneStar Harley-Davidson Special Edition and in celebration of Truck Driver Appreciation Week,” TheTrucker.com said.
“Through the ‘Drive for Jobs’ program, owner-operator Chris Hawker, the first to purchase the one-of-a-kind truck, began his journey from the Harley-Davidson Museum in Milwaukee to his regular work route from Westfield, N.Y., to Jacksonville, Fla.” For each mile that Hawker drove during the trip, Navistar made a contribution to ATA’s recruitment campaign, said the article.
“We appreciate Navistar’s support for ATA’s initiative to promote truck driving as a career option,” said Bill Graves, ATA president and CEO. “The men and women of the U.S. Armed Forces are ideal candidates to become trucking industry professionals — they have all the motivation and tools necessary to move successfully from the military into our industry.”
2/17/2010Los Angeles Mayor Antonio Villaraigosa called for additional job cuts last week to help mend the city’s current $212 million budget shortfall that is expected to double next year, reported the Los Angeles Times.
“Villaraigosa's threats provided the clearest sign yet that he has decided to take a more aggressive approach to the worsening financial crisis, which threatens the city's credit rating and ability to borrow,” the Times said.
Despite the city’s dire budget crisis, Los Angeles continues to spend millions of taxpayer dollars to help the Teamsters unionize truck drivers at the Port of Los Angeles.
At the urging of the union, the mayor has spent more than $5 million in legal fees to pursue a truck concession plan that the U.S. District Court of Appeals ruled is illegal. The mayor is also spending hundreds of thousands of dollars to lobby the federal government to change federal transportation law and allow ports and municipalities to regulate interstate trucking.
If enacted, the Port of Los Angeles would then have the authority to ban independent owner operator truck drivers, mandating that only large companies be allowed to haul freight at the port. The authority to regulate interstate trucking currently lies only with the federal government, in order to protect businesses from a national patchwork of differing regulations that would inhibit commerce.
The Mayor’s crusade to ban owner operators from the Port not only depletes city resources but, if it succeeds, would force thousands of owner operators out of business at a time when unemployment in the LA area is over 10 percent.
2/12/2010Rifts between ports, cities, and labor unions will make it harder to bend federal transportation law to force the unionizing of the harbor trucking industry, according to a Feb. 8 Journal of Commerce (JOC) article, Rift in the Road.
“Ports, cities and labor unions are sharply at odds not only with each other but within their own ranks over efforts to overhaul regulation of harbor trucking, and the rifts will make it even harder for groups proposing changes to win an amendment to federal law,” JOC said.
Last month the Association of American Port Authorities, a group that represents port authorities nationwide, voted not to support efforts by one of its largest members, the Port of Los Angeles, to amend the federal law that prohibits state and local regulation of interstate trucking.
Los Angeles is spending hundreds of thousands of taxpayers’ dollars to lobby congress to allow ports and municipalities to regulate interstate trucking. That authority currently lies only with the federal government, in order to protect transportation from a national patchwork of differing regulations that would inhibit commerce and stifle business.
At the request of the Teamsters, Los Angeles’ Mayor is pushing for the change in federal law to advance the Teamsters’ goal to unionize the harbor trucking industry – a segment currently dominated by independent owner-operators. The Teamsters’ goal is to change federal law and permit ports and other government entities to ban owner-operators.
The Teamsters’ and the Mayor’s cover story is that owner-operators need to be outlawed to permit improvements in diesel truck emissions in the port to continue. The AAPA’s recent policy statement said “ports have all the authority they need under existing law to ban old, polluting trucks from marine terminals,” reported JOC. The successes of the Clean Truck Programs in both Los Angeles and Long Beach are proof of that.
A rift also exists within the labor community. The International Longshore and Warehouse Union (ILWU) objected to the Teamsters’ inclusion of the word “security” into its proposed amendment to federal transportation law, the JOC reported.
An ILWU spokesperson stated that “there are already a number of layers of security requirements at ports that directly affect longshoremen, and the industry does not need another layer,” JOC said.
2/10/2010NOTE: The entry below was written by Randy Mullett, Vice President, Government Relations and Public Affairs, for Con-way Inc. and appears originally at www.freightpublicpolicy.org.
Last Wednesday, I spoke on behalf of the American Trucking Associations (ATA) at a press conference sponsored by the Derivatives Reform Alliance. This organization is advocating for tougher regulation of commodity derivatives trading, which includes crude oil and refined products like diesel fuel.
If that sounds like some arcane financial manipulation practice, you're right. But it affects anyone who uses diesel fuel, since the effect of this practice is to encourage excessive speculation in the trading and pricing of energy-based commodities.
Transportation companies already are under pressure from tight margins, excess supply and slack demand for services. Throw in volatile diesel fuel prices and it's no wonder many companies are struggling to stay afloat. To deliver virtually all of the country's consumer goods, the trucking industry consumes 34 billion gallons of diesel fuel annually. Fuel is generally considered the second highest expense incurred by trucking companies. Every one-cent increase in the price of diesel fuel costs the trucking industry an additional $340 million a year.
One year ago, the price of oil was $42 a barrel. Today that price is up over 70 percent, despite the fact that global demand is down, crude oil inventories are well above average, and the dollar has declined by only 8 percent relative to the Euro. What's driving the higher prices? Excessive speculation is the only other variable left unaccounted for.
While there is no good metric that will quantify how much of the volatility and increased price of crude oil can be attributed to the influence of excessive speculation, it's clear that this is part of the problem. To address this market disconnect, we believe that the federal government should take steps to increase the transparency of the derivatives markets. Reasonable aggregate position limits should be set. The Commodity Futures Trading Commission (CFTC) has proposed position limits for energy trades on certain commodities exchanges; however, this step by itself is insufficient to curb the problem of excessive speculation. There are still loopholes which allow destructive practices and leave the buyers of diesel fuel - and ultimately consumers - on the hook for the cost.
It is time for Congress to strengthen the Commission's authority and eliminate trading loopholes. We encourage mandated transparency and stated aggregate position limits for all markets (including over-the-counter and foreign exchanges) that trade energy commodity derivatives. If we do not enforce position limits, the practice of excessive speculation will continue beyond the control of government regulators.
Importantly, the CFTC or Congress also must clarify and define the difference between a commercial participant and a legitimate hedger. A commercial participant -- such as a trucking company -- must take physical possession of a petroleum product. The trucking industry typically hedges diesel fuel by purchasing heating oil and crude oil derivatives. Recognizing these hedging surrogates is important in determining the status of various commercial participants. Those who purchase petroleum derivative contracts as a hedge against inflation -- but who never take possession of the products -- are more akin to pure speculators and should not be considered commercial participants. This destructive practice cries out for more legislative or regulatory oversight.
Transparency that distinguishes between commercial and non-commercial participants has no potential downside. Trading markets are improved and the price of oil remains unaffected. Tougher regulation would likely reduce speculative bubbles, restore investor confidence and strengthen the link between commodity prices and market fundamentals. We call on Congress to do the right thing and protect the commodities markets from destructive, excessive speculation through derivatives practices that add no value.
C. Randal (Randy) Mullett is Vice President, Government Relations and Public Affairs, for Con-way Inc. As Con-way's senior policy manager and executive representative in Washington, D.C. Mullett is responsible for the company's relationships with national business and trade associations, as well as federal legislative and regulatory advocacy efforts on homeland security, business sustainability, freight transportation and other policy issues important to the enterprise and its employees.
2/2/2010The American Association of Port Authorities (AAPA) will not join efforts by the Ports of Los Angeles (POLA) and Oakland to amend federal transportation law, the Journal of Commerce reported Jan. 27.
“At issue in this debate is an effort by the Ports … to amend federal preemption authority over interstate commerce to give ports regulatory control over harbor trucking in matters relating to security, congestion and the environment,” said JOC.
The Teamsters Union seeks the change in federal law so ports and local jurisdictions can ban owner-operators and make it easier to unionize port truck drivers.
“This labor issue is dividing the port industry … [and] the AAPA, which represents more than 140 public port authorities, determined it should take a position on the issue that is dividing the industry. Susan Monteverde, AAPA's vice president of government relations, said the issue boiled down to whether ports should be able to regulate the vehicle or the motor carrier,” said the magazine.
Port Authorities can regulate the types of trucks that drive into ports. Clean Truck Programs at the Ports of Los Angeles and Long Beach ban trucks with older diesel engines to reduce truck pollution. However, Port Authorities can not regulate the type of drivers that are behind to wheel.
The Port of Los Angeles attempted to require all harbor truck companies to replace independent contractor drivers with employee drivers. The U.S. Court of Appeals determined this requirement violated federal law. Now Los Angeles and its allies are lobbying the federal government to change the law.
According to the Journal of Commerce, since the Port of Long Beach has proven it can reduce truck pollution by about 80 percent 2 years ahead of schedule without banning independent contractors, “AAPA does not believe it is necessary to engage in a costly and controversial effort to amend the law, Monteverde said.” A majority of the six-member AAPA Legislative Policy Committee voted not to seek an amendment and that is now the position of the AAPA, Monteverde said.
1/29/2010A CNN/Opinion Research Corporation survey released Jan. 29 indicates that 80 percent of Americans support spending stimulus funds from the American Recovery and Reinvestment Act of 2009 to build or repair roads and bridges, justifying the American Trucking Associations’ (ATA) support for these projects that provide jobs and make transportation more efficient. Only 62 percent of those polled approved of stimulus spending on trains, buses or mass transit.
On Jan. 25 CNN released poll results showing that nearly three out of four Americans think that much of the money spent in the federal stimulus plan has been wasted, largely because they have not seen tangible benefits from the widespread government spending. Just $26.6 billion – a mere 3.3 percent – of the total $787 billion stimulus package enacted in February 2009 was made available for highway, road and bridge projects.
“There is much skepticism that the bill is wasteful, full of politically-motivated projects, and has benefitted fat cats at the expense of ordinary Americans," said CNN Polling Director Keating Holland.
ATA Past Chairman Charles "Shorty" Whittington told President Obama at the National Jobs Summit in December that investing in highways is the quickest, most efficient way to create jobs and restore the economy. He encouraged the President to consider the economic benefits of longer-term spending as well, not just a one-time stimulus. “Infrastructure spending makes U.S. businesses more competitive,” said Whittington. “Every dollar invested in the nation’s highway system yields $5.40 in economic benefits as a result of reduced delays, improved safety and lower vehicle operating costs.” Traffic congestion caused by freight bottlenecks poses a great threat to U.S. productivity. Last year the Texas Transportation Institute (TTI) estimated that Americans wasted $87 billion in the form of 2.8 billion gallons of fuel and 4.2 billion hours because of traffic congestion in the 439 urban ‘chokepoints’ identified across the country. TTI reports that 12,676 new lane-miles of highways and roads are needed to keep up with congestion.
According to the American Association of State Highway and Transportation Officials, there are nearly 7,500 highway projects throughout the country worth more than $47 billion that could be started almost immediately. The Federal Highway Administration estimates that each billion dollars invested in federal-aid highway projects generates approximately 30,000 jobs. Therefore, this spending level could, in a very short time span, create at least 1.4 million good jobs, while also making our highways safer and less congested.
ATA urges Congress and the Obama Administration to expedite funding for ready-to-go highway projects while continuing to work toward quick passage of a long-term highway bill with robust funding for highway projects that yield significant national and regional economic benefits.
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