Author: Vitaliy Dadalyan

Bill Would Create Pathway for Under-21 Truck Drivers

Two U.S. House representatives from California have introduced a bill that would create a training pathway for truck drivers between the ages of 18 and 21 to be able to operate in interstate commerce.

Republicans Duncan Hunter and Trey Hollingsworth, with support from the International Foodservice Distributors Association and the American Trucking Associations, today introduced the Drive Safe Act.

Most states allow individuals to obtain a commercial driver's license at age 18, but federal regulations prevent those operators from moving goods from state to state until they are 21. This restriction on interstate deliveries is particularly problematic in regions like the greater D.C. metro area, where a younger driver would be prohibited from making a quick trip between Arlington, Virginia, and Bethesda, Maryland. But the same driver could haul a load from Arlington to Norfolk, Virginia, a more than three-hour drive.

In response, the Drive Safe Act would help train younger drivers far and above current standards, and in return would be allowed to drive interstate not only once the program is completed, but during the supervised training as well.

Under the legislation, officially named the Developing Responsible Individuals for a Vibrant Economy Act, once a driver has met the requirements to obtain a CDL, he or she may begin a two-step program of additional training that includes rigorous performance benchmarks. The program will require drivers to complete at least 400 hours of on-duty time and 240 hours of driving time with an experienced driver in the cab with them. All trucks used for training in the program must be equipped with safety technology including active braking collision mitigation systems, video event capture and a speed governor set at 65 mph or below.

The bill has the support of the International Foodservice Distributors Association and the American Trucking Associations.

IFDA says the driver shortage has ...Read the rest of this story

Truckload Linehaul, Intermodal Rates Remain High Despite Slip

Freight rates for truckload linehaul and intermodal movements continued showing great strength in February, according to figures released Wednesday from one freight payment processor.

February's Cass Truckload Linehaul Index continued the year-over-year acceleration established in November, December, and January, up 6.3%, 6.2%, and 6.5%, respectively, by posting another 6.5% increase.

This puts the measure at a reading of 131.1, which is down from 133.5 in January and 134.5 in December, the latter being the highest in more than a decade.

After being negative on a sequential basis for 13 months in a row, from March 2016 through March 2017, the index has not only been positive now for eleven straight months, but pricing for trucking continues to increase.

"In just the last seven months, our pricing forecast for 2018 has improved from negative 1% to 2%, to [increasing between] 6% to 8%, and we now have reason to believe the risk to our estimate may be to the upside," said Donald Broughton, analyst and commentator for the Cass indexes.

He said the current strength being reported in spot rates is leading him to believe contract pricing rates should keep rates in positive territory well into 2018.

The Cass Truckload Linehaul Index measures market fluctuations in per-mile truckload pricing that isolates the linehaul component of full truckload costs from others, such as fuel and accessorials, providing a reflection of trends in baseline truckload prices.

Meantime, on the intermodal side of trucking, latest data point shows total intermodal pricing rose 5.4% in February from the same time a year earlier, putting the Cass Intermodal Price Index at a reading of 137.9. This marked the 17th consecutive month of year-over-year gains, an indication pricing momentum is strengthening.

Tight truckload capacity and higher diesel prices are creating incremental demand and pricing power for domestic intermodal, according to ...Read the rest of this story