CRITICAL ISSUES IN THE TRUCKING INDUSTRY …

1 CRITICAL ISSUES IN THE. TRUCKING INDUSTRY 2017. Presented to the American TRUCKING Associations Prepared by The American Transportation Research Institute October 2017. 950 North Glebe Road Arlington, VA 22203. (703)838-1966. ATRI BOARD OF DIRECTORS. Judy McReynolds Robert E. Low Chairman of the President and CEO. ATRI Board Prime Inc. Chairman, President and CEO Springfield, MO. ArcBest Corporation Fort Smith, AR Rich McArdle President David S. Congdon UPS Freight Vice Chairman and CEO Richmond, VA. Old Dominion Freight Line Thomasville, NC Gregory L.

2 Owen Head Coach and CEO. Michael L. Ducker Ability/ Tri-Modal Transportation President and CEO Services FedEx Freight Carson, CA. Memphis, TN. Annette Sandberg Rich Freeland President and CEO. President and COO Transsafe Consulting, LLC. Cummins Inc. Davenport, WA. Columbus, IN. Rebecca M. Brewster Hugh H. Fugleberg President and COO. President and COO American Transportation Great West Casualty Company Research Institute South Sioux City, NE Atlanta, GA. Dave Huneryager Chris Spear President and CEO President and CEO.

3 Tennessee TRUCKING Association American TRUCKING Associations Nashville, TN. Derek Leathers President and CEO. Werner Enterprises Omaha, NE. ATRI RESEARCH ADVISORY COMMITTEE. Scott Mugno, RAC Chairman Sanford Hodes Karen Rasmussen Vice President, Safety, Ryder System, Inc. President and CEO. Sustainability and Vehicle Senior Vice President and Deputy HELP Inc. Maintenance General Counsel FedEx Ground Wellington F. Roemer, III. Ken Howden President and CEO. Jon Blackham Director, 21st Century Truck Wellington F.

4 Roemer Insurance, Policy and Government Affairs Partnership Inc. Canadian TRUCKING Alliance Department of Energy Lee Sarratt Amy Boerger Kelly Killingsworth Director of Safety Vice President, Sales VP of Inbound Transportation Hunt Cummins, Inc. Wal-mart Stores, Inc. Mark Savage Bill Brown Victoria King Deputy Chief Manager of Fleet Telematics VP Public Affairs Colorado State Patrol Southeastern Freight Lines UPS. Andrea Sequin Michael Conyngham Dustin Koehl Director, Regulatory Services Director of Research Vice President, Sales and Schneider National, Inc.

5 International Brotherhood of Marketing Teamsters Total Transportation of Mississippi Carl Stebbins Corporate Director of Bob Costello Caroline Mays Admissions and Marketing Senior Vice President and Chief Director, Freight and International New England Tractor Trailer Economist Trade Section Training School American TRUCKING Associations Texas DOT. Harold Sumerford, Jr. Tom Cuthbertson Brian McLaughlin Chief Executive Officer Vice President, Regulatory President J&M Tank Lines Compliance Trimble Transportation Mobility Omnitracs, LLC Minnetonka, MN James E.

6 Ward President and CEO. Dennis Dellinger Lisa Mullings Bowman President President and CEO. Cargo Transporters National Association of Truck Stop Tom Weakley Operators Director of Operations Chip Duden Owner-Operator Independent Vice President, Strategic Business Tom Murtha Drivers Association Foundation Analytics Senior Planner Werner Enterprises Chicago Metropolitan Agency for Planning Paul J. Enos Chief Executive Officer Brenda Neville Nevada TRUCKING Association President Iowa Motor Truck Association Scott George Chief Executive Officer Dean Newell TCW, Inc.

7 Vice President, Safety Maverick, Inc. Mike Golias Director for Research, Steve Raetz Intermodal Freight Transportation Director of Research and Market Institute Intelligence University of Memphis Robinson Worldwide, Inc. Victor Hart Director of Safety DOT Transportation, Inc. CRITICAL ISSUES in the TRUCKING INDUSTRY 2017. The past year has seen continued legislative and regulatory activity affecting the TRUCKING INDUSTRY . However, unlike recent years, much of the regulatory activity in 2017. brought resolution to several CRITICAL INDUSTRY challenges.

8 Chief among these actions was a final determination on the Federal Motor Carrier Safety Administration (FMCSA). Hours-of-Service (HOS) provisions, the removal of the barriers toward the implementation of FMCSA's Electronic Logging Device (ELD) mandate, and a final rule on the minimum entry-level CDL training requirements. In March of this year, FMCSA released findings from their study on the impacts of the HOS restart provisions as mandated by Congress in December FMCSA's study did not find that the requirement for at least two nighttime periods of rest and the prohibition on taking more than one restart per week provided a greater net safety benefit than the previous restart regulations while also finding that the restarts benefitted the ability of drivers to recover from fatigue and sleep loss regardless of the restart provision used.

9 2 As such, the 34-hour restart rule was restored in full force, while the other restart provisions will not be FMCSA's ELD mandate also overcame several last-minute challenges to its implementation, ending a protracted process and ensuring that the mandate will go into effect on December 18, 2017. The Supreme Court denied the Owner-Operator Independent Drivers Association's request for a rejection of the rule on June 12, A final effort to delay the ELD mandate by members of the House of Representatives also failed to pass in September of this FMCSA's Entry-Level Driver Training (ELDT) rule finally went into effect on June 5, The rule, which has a compliance date of February 7, 2020, states that no entry- level driver can take a Commercial Driver License (CDL)

10 Skills test without first completing a mandatory knowledge and behind-the-wheel training The three-year compliance window provides time for commercial driver training entities to come into compliance with the rule's requirements and be certified and listed on FMCSA's Training Provider Registry. 1 Frequently Asked Questions: Commercial Motor Vehicle (CMV) Driver Restart Study. Federal Motor Carrier Safety Administration. Washington DC. 8 March, 2017. Available online: analysis/research/frequently-asked-quest ions-commercial-motor-vehicle-cmv-driver 2 Ibid.