A VIBRANT and healthy trucking industry is absolutely vital to a strong US economy. However, trucking faces some serious challenges that could significantly hamper its ability to deliver the high service levels (such as just in time deliveries) on which shippers now rely.
Patrick E Quinn, chairman of the American Trucking Associations (ATA) and co-chairman of US Xpress Enterprises Inc, gave a sobering assessment of the state of the US trucking industry during the National Tank Truck Carriers 59th annual conference May 7-9 in Las Vegas, Nevada.
On the plus side, trucking is the dominant mode of transport in the United States. Trucking's share of freight tonnage is projected to reach 14 billion tons by 2017, a 31% increase when compared with 2005 levels. Rail remains a distant second with 2017 freight tonnage estimated at approximately three billion tons. All other modes (pipeline, water, rail intermodal, and air) trail far behind.
Unfortunately, freight tonnage is increasing at the same time productivity is slipping. Quinn said three key factors are to blame: traffic congestion, driver hours of service rule changes, and a growing shortage of drivers.
Traffic congestion already costs the United States $168.3 billion a year, and the cost is rising almost by the day. “By 2020, we are going to have gridlock in the major metropolitan areas of this country,” Quinn said. “We don't have enough road to handle the growing volume of traffic — both trucks and automobiles.”
The problem must be addressed, because truck transport is the only mode that makes sense in many areas. Quinn pointed out that 85% of freight moves less than 700 miles, and railroads typically are not efficient in shorthaul operations.
ATA believes the federal government must take aggressive action when the highway bill comes up for reauthorization in 2009. ATA remains opposed to most toll roads and highway privatization initiatives. However, these steps may be the best options in some cases.
For instance, ATA has proposed a federal truck road network that would be supported by fuel taxes and tolls. ATA also is suggesting that new sources of tax revenue may be needed to fund the federal highway system. “With the growth of tax-exempt biofuels, we realize that the current fuel tax may not be enough to cover our future highway infrastructure needs,” Quinn said.
Turning to driver hours of service, he said he hopes the status of the regulations will be resolved soon. The Department of Transportation was on the losing end of a federal lawsuit and may be forced to issue a new hours-of-service regulation.
Quinn said ATA supports a rule that contains an 11-hour driving maximum and a 34-hour restart. Research is still underway on the split sleeper berth rule that would provide more flexibility for solo and team drivers.
Uncertainty over hours of service is just one of many factors contributing to growing dissatisfaction in the driver ranks. In turn, job dissatisfaction has contributed to an increasing shortage of truck drivers.
“We have an aging driver population, and we need to attract younger people,” Quinn said. “ATA recently launched a new web site (GetDriving.com) in an effort to reach out to a range of generations. Truck driving can be a new career for Baby Boomers displaced in the workforce, and we're taking a fresh look at younger age groups.
“The United States still has the most dynamic economy in the world. That may not be true 25 years from now if we don't take action now to address key issues, such as driver shortages and highway congestion.”