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Trade Trends | February 2022



Driver Shortages Aren’t Easing Up. Should We Turn To Smart Innovation And Technology For Help?


A driver shortage and training drivers to fill such a shortage continue to challenge truck fleet operators.


According to the American Trucking Association, the trucking industry is about 80,000 drivers short in order to meet demand and help ease the supply chain shortage. In the near term, driver shortage is and will remain a formidable challenge for carriers as well as the end-to-end supply chain that relies heavily on trained and licensed drivers to keep the supply chain moving.


One Commercial Driver's License (CDL) training instructor at Virginia Highlands Community College told the Washington News that the demand for professional drivers is so great that the students who graduate are hired immediately. Some HR hiring managers call the school asking to speak to students directly before they even complete the class.


This has prompted carriers to find innovative ways to hire drivers. In an article in the Wall Street Journal, recruiters are considering artificial intelligence to help with the hiring process. A driver sitting in his rig at a truck stop may be a candidate for a new job and better recruitment tools are making it easier for transportation companies to make it easier to recruit drivers.


Artificial intelligence (AI) tools can do the sifting and perform some of the legwork in finding and recruiting new drivers. The article cited U.S. Xpress who operates a fleet of more than 6,500 trucks and 13,000 trailers (they have about 7,000 drivers) and who bumped its driver hires by 40% over a year earlier using AI. They utilize an AI platform to get drivers through the application process and onboard in less time. In the end, it helps get drivers onboard sooner and helps the fleet meet demand.




Are Truck Emissions Slated To Become an Even Hotter Issues of Concern in the Months and Years Ahead?



It seems they already have. Truck emissions continue to be a concerning issue as all stakeholders within the supply chain become conscious of climate change and continue to look for more ways to improve the environment and curb carbon emissions.


Six states: New Jersey, California, Oregon, Washington, Massachusetts and New York are focused on truck sales by introducing legislation and requirements for truck sellers to meet sales levels of zero-emission trucks.


In the Northeastern U.S., Massachusetts is about to tighten down on truck emissions. The Commonwealth has set out in the new year with stricter rules to cut down on engine emissions. Their Department of Environmental Protection are seeking to stay at pace with California’s accelerated truck standards. In California, all medium and heavy-duty trucks are sold to be zero-emission starting in 2025.


When new Massachusetts regulations go into full swing, new truck sales in the commonwealth will face a phase-in of zero-emission trucks: 30% to 50% by 2030 and 40% to 75% by 2035.


New York state is not far behind. At the end of 2020, Governor Kathy Hochul unveiled the finale of New York's Advanced Clean Truck Rule. The new regulations were introduced a few months earlier and target lower truck emissions, much like their neighbor to the east and their far distant cousin (California) in the west. They are setting aggressive emissions targets in their Climate Leadership and Community Protection Act (CLCPA). It phases in the sales and use of zero-emission trucks, seeking to curb the prevalence of such emissions to curb their harm to the environment and help cut global warming.


Some shippers may be throwing their hat in the ring to support this trend. In the past, Walmart and Pepsi, both operators of large fleets, threw their support to policies that support zero emissions. Recently, the food service supply giant Sysco, who operates nearly 9,000 freight tractors, committed to electrify 35% of the trucks in its fleet by 2030.


It's still early for the rest of the U.S. but zero-emissions (possibly electrification) is trending towards a large percentage of fleets with zero emissions tractors.



At Issue: Infrastructure And Parking For Trucks?



In late 2021, the American Trucking Association (ATA) set off on an assertive campaign which includes a comprehensive media campaign to push for infrastructure improvements. It coincided with the President Biden's introduction of the Build Back Better bill which incorporates wide scale infrastructure improvement.


Infrastructure affects trucking industry in many ways. At the outset of the campaign, ATA's CEO stated: “The dismal state of our nation’s roads and bridges forces the average commuter to waste 42 hours a year sitting in traffic,” said ATA President and CEO, Chris Spear. “Between time lost and the $1600 in vehicle damage and wasted gas the average American is saddled with, we are no longer at the brink – we are living in a crisis. The ATA is launching this campaign to highlight the very personal impact of poor roads and the urgency necessary for Congress and the Administration to take action.”


Infrastructure improvements directly or indirectly influence the safety of the transport by truck as well as other factors such as timely delivery and fuel consumption. Many state trucking associations have joined the ATA in their efforts.


A more specific issue related to infrastructure is parking. According to research conducted by the American Transportation Research Institute and a joint partner, a hefty 44% of survey respondents ranked truck parking as “much harder” or “somewhat harder” to find during the pandemic. Their research also indicated that the ATA says drivers lose nearly an hour each day of their allowable drive time by parking early at an available spot rather than risk not finding appropriate parking.


An article in Fleet Equipment stated that approximately "313,000 trucking spaces are available to accommodate over 3 million truck drivers in the U.S. The shortage has impacted the transportation industry for decades, costing drivers an average of $5,500 or 12% of their pay each year."


Other entities that serve professional drivers – such as truck stops may be following in suit. According to an article in CDL Life, Love’s Travel Stops plan to open more than 40 locations across the country and to add more than 3,000 truck parking spaces to their network this year.


In Indiana, the consortium that operates the Indiana Toll Road has launched a smart parking network to help guide professional drivers and provide them with better places to park and rest while traveling. They've installed smart signage that uses sensors and cameras to allow professional drivers to see how many parking spaces are available at upcoming exits. Drivers normally get sleep while parked in their trucks at rest stops, truck stops and similar spots.


As the transportation industry continues to grow, it will continue to be strained. As that occurs, things such as infrastructure and parking will become more prominent and important policy issues for industry advocates, private entities and federal, as well as state governments, to take on to keep the supply chains moving.

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