New Legislation Introduced to Fight Driver Abuses at Ports

Photo via Rep. Jerry Nadler (D-NY) Twitter

Rep. Grace Napolitano (D-CA) and Rep. Jerry Nadler (D-NY) introduced two separate bills on Capitol Hill Thursday that are aimed at addressing labor and environmental issues at our nation's ports.

At a gathering in front of the capitol building with truckers and representatives from the Teamsters union, the two members of Congress announced the Port Drivers Bill of Rights and the Clean Ports Act. The Port Drivers Bill of Rights would create a federal task force to investigate and provide recommendations on the prevalence and use of abusive independent-contractor lease agreements and low wages in the port trucking industry.

“Hundreds of port truck drivers are being forced into working as independent operators as a way for their employer to pay them below minimum wage and deny them benefits,” said Rep. Napolitano. “It is unthinkable that companies can continue to get away with this scheme to underpay hard working truck drivers.”

Napolitano cited a driver receiving $150 per day in wages but needing to pay $140 per day to lease a truck from the company his or she is contracted to work for, effectively bringing home well less than the minimum wage. Back in June, a USA Today report exposed some abuses within the independent contractor port trucking world, comparing some of the drivers' work situations to a kind of indentured servitude.

Port trucking companies and associations have called this report into question and said that it was an attempt by labor unions to organize port workers. After that report came out, a Harbor Trucking Association representative told HDT that USA Today had cherry picked cases for their extremeness and that they were not representative of the typical port truck driver's situation.

In response to this latest legislation, HTA Executive Director Weston LaBar challenged the assertions ...Read the rest of this story

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USPS Awards Spartan Motors $214M for Delivery Vehicles

The U.S. Postal Service has ordered 2,000 fleet vehicles from Spartan Motors on a $214 million contract for two types of delivery trucks with Utilimaster bodies, the vehicle manufacturer announced.

The Charlotte, Mich.-based company's Spartan Fleet Vehicles and Services business unit will begin building the trucks after April 1. They will be delivered over the next two years. The contract includes an option for a third year.

The order includes a combination of cab over engine and cab behind engine trucks in a variety of 18-foot and 24-foot configurations.

"Our ability to design, custom engineer, and build commercial trucks across classes 1-6, in addition to providing custom vocation-specific upfits uniquely positions us to serve the growing last mile delivery fleet that is in demand by today's ecommerce retailers," said Tom Ninneman, president of Spartan Fleet Vehicles and Services.

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Earnings Watch: ODFL Earnings Increase Almost 20%, UPS Profit Remains Strong

The mainly less-than-truckload fleet Old Dominion Freight Line Inc. reported its profit rose nearly 20% in the third quarter of the year due in part to a better overall economy and freight rates.

Net income was $102.3 million, or $1.24 per share, compared to $85.6 million, or $1.03 per share, a year earlier. Revenue in the most recent quarter increased 11.5% to $873 million.

Operating income in the third quarter of 2017 improved 19.3% from a year earlier, totaling $163.9 million.

“The strengthening economy supported our third quarter revenue growth, but we also believe that tightening industry capacity and pricing increases accelerated the pace of our revenue growth for September,” said David S. Congdon, vice chairman and CEO.

The company's revenue grew despite having one less operating day than the third quarter of 2016. The growth was attributable to an 8.6% increase in LTL tonnage per day, as well as a 3.6% increase in LTL revenue per hundredweight. LTL revenue per hundredweight, excluding fuel surcharges, rose 2.4%, despite a 1.8% increase in LTL weight per shipment and a 0.6% decrease in length of haul.

Increases in weight per shipment and decreases in length of haul typically reduce LTL revenue per hundredweight metrics, according to ODFL.

At trucking and parcel delivery goliath UPS Inc., third quarter profit dipped just 0.5% to $1.26 billion, or $1.45 per share, compared to $1.46 per share a year earlier.

This happened as total revenue improved 7% from a year earlier to nearly $16 billion. Operating profit was flat at $2 billion.

"UPS produced another solid quarter of financial performance, despite the impact of several natural disasters that slowed regional economic activity and damaged infrastructure,” said David Abney, chairman and CEO. “Our business segments adapted quickly to changing conditions this quarter, taking advantage of market opportunities while minimizing cost ...Read the rest of this story

Is White House Considering Fuel Tax Increase for Infrastructure?

Photo: Jim Park

Published reports indicate that the Trump administration may be willing to push for a hike in the fuel tax to help pay for the president's promised $1 trillion in infrastructure investments.

President Trump's economic adviser Gary Cohn told moderate House lawmakers at a private meeting on Wednesday that they'll get a chance to vote on a gas tax hike early next year as part of an infrastructure bill, according to two lawmakers who were present, reports The Hill.

The meeting was with the Problem Solvers Caucus, U.S. Representative Tom Reed, a New York Republican who is co-chairman of the caucus, told Bloomberg.

The fuel tax hasn't been increased since 1993, and revenue from the federal per-gallon taxes of 18.4 cents on gasoline and 24.4 cents on diesel has declined as vehicles have gotten more fuel efficient. But despite the fact that infrastructure improvement as a general concept seems to have bipartisan support, proposals to raise the fuel tax have faced stiff opposition from congressional Republicans and others loath to raise taxes.

Bloomberg asked House Ways and Means Chairman Kevin Brady about the possibility. “Hm. I'm going to stay focused on tax reform right now,” he said.

Proponents, however, point out that it's really a user fee rather than a tax.

A survey of 800 registered voters in June showed Americans increasingly view the condition of the nation's transportation infrastructure as a problem and believe it should be a spending priority, said pollster Neil Newhouse, who authored the survey, to an audience at American Trucking Associations' annual Management Conference & Exhibition this week. “In September 2014, 61% of Americans opposed this,” Newhouse said. “Now it's 55% in favor. There is a reason for optimism.”

Earlier this year, President Trump said he was open to the idea in an interview, but ...Read the rest of this story

Trump Adminstration Moves to Establish Drone Policy

A new drone policy proposed by the Trump Administration allows drone operations up to 200 feet above ground or even 400 feet where appropriate. Photo: UPS

The Trump Administration is making moves to establish a coherent federal policy governing the use of drones in delivery applications, according to the political blog Politico. The report notes that a presidential memorandum, issued Wednesday, Oct. 25th, directs the Department of Transportation to establish a pilot program inviting state and local governments, in partnership with private entities, to enter into agreements with the Federal Aviation Administration for sweeping waivers of current regulations on activities like flying at night and over people.

Politco says DOT has six months to enter into at least five agreements pertaining to delivery drone operation, and the program is set to last three years. The information gathered from local and state experiments with drone operations will inform future regulatory actions, but the report notes, FAA has been clear that it thinks state and local participation will be necessary for the foreseeable future. The memorandum allows for proposals for drone operations up to 200 feet above ground or even 400 feet where appropriate. More details will come in a federal register notice in the coming days or weeks.

Rep. Jason Lewis (R-Minn.), who had previously proposed a similar program, said the pilot should go even further in allowing states and municipalities to set restrictions on drone flights. "Amazon wants to take that delivery right down your avenue on Sunday morning," Lewis told POLITICO. "The question is, who should decide that?"

Additionally, Politico reports, FAA is looking for applications submitted jointly from a state or municipality and a private entity for a specific program. Ideally, the applications would be from "a commercial operation or first responder operation or, quite frankly, anything innovative that a ...Read the rest of this story