Punjabi Trucking Magazine - March April 2022

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March & April 2022

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March & April 2022

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GOLDEN STATE PETERBILT

EPIQ Aerodynamic Performance OUR

High Efficiency PACCAR Engine

L O C AT I O N S

FRESNO

PORTERVILLE

BAKERSFIELD

4390 South Bagley Ave. Fresno, CA 93725 Tel (559) 442-1590 Fax (559) 237-1621

15243 Road 192 Porterville, CA 93257 Tel (559) 782-5800 Fax (559) 784-5672

1450 South Union Avenue Bakersfield, CA 93307 Tel (661) 833-1700 Fax (661) 833-2788

www.punjabitruckingusa.com

www.emtharp.com/peterbilt/

March & April 2022

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FROM THE EDITOR Raman S. Dhillon

The trucking and transportation industry is not only a profession but it is a community as well. Any individual action can make a huge impact on this community, good or bad. We are human beings and we always think our own benefits first, it is natural. We have right to think about ourselves first but let’s not make such individual decisions that might be beneficial to you but harm this trucking community as a whole. There is a problem of undercutting of prices and although this is an issue in almost every industry, it is very prevalent in trucking. Remember that if there is a problem, there is a solution and our priority should be to keep our head calm and find the right solution to solve the problem. Punjabi Trucking Magazine will continue to provide an in depth and meaning full analysis of the industry

and market. It’s not enough to know how regulations and economic factors are changing the market, it’s more important to know the why behind the change. Many great things can be accomplished when we work together for a common goal. Strength comes in unity and I believe our new administration will bring the change we need in the trucking industry. After Covid hit world in 2020, we have not seen any gatherings until this year and The 2022 American Trucking Show is just around the corner, slated for April 15th and 16th at The Fresno Fairgrounds in Fresno, CA. This year, The American Trucking Show promises to be a packed, fun-filled and a memorable event. Stay safe on the road, share the roads, and keep on trucking!

EDITOR Raman S. Dhillon

Official Magazine for: North America Punjabi Trucking Association

Published Bi-monthly by Primetime Multimedia Company LLC 4709 North El Capitan #104, Fresno, CA 93722 Tel: 001 877 806 2525 | Email: info@punjabitruckingusa.com

press@punjabitruckingusa.com

GRAPHIC DESIGN Maxx Printing, LLC Harshpal Brar

ASSOCIATE-EDITOR Sunny Vraitch

TRANSLATIONS Harjinder Dhesi

CONTENT MANAGER Rhea Randhawa

CONTRIBUTORS Rhea Randhawa Harkiran Sidhu Harjit Kaur Ruchika Kashyap Pash Brar Raman Singh Ravi Dhillon Michael Smith

OFFICE MANAGER Melissa Nolasco info@punjabitruckingusa.com

All Rights Reserved. No material herein or portions thereof may be printed without the written consent of the publisher. DISCLAIMER: Primetime Multimedia Company LLC assumes all advertisers to be reliable and responsible for any and all liability for their claims. The publisher reserves the right to refuse any advertisement it may find unfit for publication. The opinions expressed in articles and features are of the writers and may not be those of the publisher. THE PUBLISHER ASSUMES NO RESPONSIBILITY OF ANY KIND.

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March & April 2022

ADVERTISING SALES Raman S. Dhillon sales@punjabitruckingusa.com

CIRCULATION MANAGER Jessie Dhillon

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LOAD NE NE TTLOAD 5

March & April 2022

A Product A Product of of


INDUSTRY NEWS

CONTENTS

Connect with Us

American Trucking Show ....................... 24-25

ARTICLES

Apex (Nextload) .......................................... 05

09

Automann ....................................................... 45

ibfyn pRSwsn dy iblf bYk bYtr plwn nwl rYgUlytrI gqIivDIAW iv`c AweI iF`l

Big Rig Tires & Alignment ............................. 27 BP Lab Services ............................................ 28

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Flat Rate Dispatching ................................. 21

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Gillson Trucking Inc. ..................................... 15

v`D rhI mihMgweI kwrn Coty kYrIArW Aqy kwrobwrW 'qy pvygw vDyry pRBwv

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Golden State Peterbilt ................................... 03 Golden Land Trans. Insurance .................... 20 Jagdeep Singh Insurance Agency ................ 37 Jumbo Logistics ............................................ 22 Kal Trailers ................................................... 47 Kam-Way Transportation Inc .................... 41 Legend Transportation Inc. ......................... 46

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Load Stop ..................................................... 11 Lotus Benefits Corp ..................................... 35 Maxx Printing ............................................... 38 NAPTA .................................................... 29, 36

39

Punjabi Trucking 360 .............................. 07, 44 Punjabi Trucking App ................................... 33 Primelink Express ........................................ 02 Revolution Capital ................................. 13, 39

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12 nvyN ienPrwstRkcr ib`l pws hox dy bwvjUd vI tr`k frweIvrW leI pwrikMg iv`c koeI suDwr nhIN AwieAw

15 ip`Cly swl dy tr`k inrIKxW iv`c mùK doSI dI pCwx

30 klIAirMg hwaUs dy fwtw Anuswr fr`g tYst dI aulMGxw 10 pRqISq v`D geI hY

34 ApRYl q`k id`qIAW jwxgIAW nvyN buinAwdI FWcy leI ArzIAW

Speedy Truck Wash Inc. ............................... 43 The Driver Services ....................................... 23 Timex Inc ...................................................... 19 Volvo Trucks ................................................. 48 6

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42 lMby smyN 'qoN aufIky jWdy tRyinMg stYNfrfz PrvrI ivc kIqy gey lwgU www.punjabitruckingusa.com


NEW EPISODES, EVERY WEEK

For Advertisement and Sponsorships Send inquiries to

info@ramandhillonshow.com

(559) 701-8000

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March & April 2022

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INDUSTRY NEWS

Regulatory activity dormant as Biden administration pushes Build Back Better Plan;

Joshi out, Hutcheson in at FMCSA

W

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The new acting administrator is Robin Hutcheson, who has both public and private expertise in managing fleets and lobbying for transport issues. She has held posts in Minneapolis and Salt Lake City.

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hile the Biden administration has been busy for the last year working on its ambitious domestic agenda, including the recently passed $1.2 trillion Bipartisan Infrastructure Bill and the yet to be passed $3 trillion Build Back Better plan, there has been little time to consider transportation related regulations, although new regulatory activity will certainly accompany the money that comes from the infrastructure bill. Biden’s time, however, may be running out as midterm elections loom and the party that holds the White House has historically lost seats in these contests. In fact, the Democrats hold the House of Representatives because of the 41 seats they gained in 2018. Most of what the Department of Transportation (DOT) has done so far under Biden is to address supply chain issues and look at ways to improve highway safety, with fatalities up 18% in 2021. To that end, DOT recently unveiled a National Roadway Safety Strategy to deal with the increased danger on the nation’s roadways. According to the DOT website, the “National Roadway Safety Strategy (NRSS) outlines the Department’s comprehensive approach to significantly reducing serious injuries and deaths on our Nation’s highways, roads, and streets. This is the first step in working toward an ambitious long-term goal of reaching zero roadway fatalities.” While analysts believe a zero-fatality goal is unreachable, Transportation Secretary Pete Buttigieg cited Hoboken, New Jersey, a city of 60,000, which “has seen multiple years with zero deaths.” Hoboken’s Vision Zero plan includes ways to reduce speeding and protect pedestrians and bikers. Meanwhile, the Federal Motor Carrier Safety Administration (FMCSA) has seen more turnover. Meera Joshi, who had been on the threshold of becoming the agency’s first Senate-confirmed administrator since Ray Martinez, resigned recently to become the deputy mayor of New York City. The new acting administrator is Robin Hutcheson, who has both public and private expertise in managing fleets and lobbying for transport issues. She has held posts in Minneapolis and Salt Lake City. Rulemaking at FMCSA continues despite the topsy-turvy nature of the top spot. One such rule would move forward the ability of under-21 age drivers to get commercial driver’s licenses to operate on interstate roadways.

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ivc mwrkIt EvrsplweIf sI[ ieh siQqI lgBg 10-12 mhIinAW q~k rhI pr hux dy mukwbly ies 'qy mihMgweI dw bhuq G~t Asr vyKx ƒ imilAw sI[ hwlWik 2018 iv~c AweIAW mMgW Aqy hux qwzw mMgW iv~c bhuq AMqr hY pr AMq iv~c nqIjy vjoN bhuq swrIAW smwn sm~isAwvW swhmxy Aw skdIAW hn[ 2018 -19 iv~c mMg ƒ pUrw krn leI smr~Qw ƒ vDwieAw igAw sI[ audXoigk gqIvDIAW 'coN bhuq izAwdw auqSwihq pUMjI invyS vwqwvrx ƒ GtwieAw igAw pr ies lMby smyN ny bhuq swry PlItW ƒ ibnW iksy rok dy qyzI nwl A~gy vDx leI pRyirq vI kIqw sI jo ik hux dI siQqI nwloN iblkul ault hY ijs iv~c swmwn dy auqpwdn leI Aqy hor BrqIAW krn leI splweI cyn rukwvtW lgw ky ies ƒ sIimq kIqw igAw hY[ 2019 dI PRyt mwrkIt bhuq izAwdw Gwty ivc rhI ijs ivc iekrwrnwmy dI kImq qoN Cot dy ky smwn ƒ bhuq G~t ryt 'qy k~iFAw igAw[ AYkitv spwt mwrkIt Coty kYrIArW leI bhuq izAwdw mh~qvpUrn hn ikauNik auhnW kol ^rIddwr izAwdw nhIN hn Aqy auhnW leI v~fy iS~pr Aqy nY~tvrkW nwl sMquln bxwauxw bhuq muSkl hY[ jdoN mwrkIt iv~c loVH qoN v~D splweI kIqI jWdI hY qW spwt

mwrkIt G~t BrosymMd vOlXUm pRdwn krdw hY ijs nwl Coty kYrIAr gYr-lwBkwrI lof dw swhmxw krdy hn[ mwrkIt ivc AweI igrwvt swry kYrIArW ƒ nkwrwqmk qOr 'qy pRBwvq krdI hY pr iPr vI Coty PlItW mukwbly v~fy PlItW kol Awpxw bcwA krn dy bhuq vDIAw mOky huMdy hn[ ieh spSt hY ik ieh Biv~K iv~c Awaux vwlw iek mu~K ^qrw hY pr Awaux vwly kuJ smyN ivc qyzI nwl v~D rhI mihMgweI kwrn ivkws 'qy ies dw bhuq pRBwv pvygw[ v~fy PlItW vWg Coty kYrIArW kol nvyN tr~k KrIdx dI smrQw nhIN hY ijs kwrn ivkws vjoN auh pihlW qoN vrqy gey tr~k KrIdxgy Aqy ies smyN iv~c kIqI geI AijhI koeI vI ^rIddwrI dw pRBwv Awaux vwly keI swlW dI bYlyNs SIt 'qy pvygw[ cwhy hux tr~k kImqW iv~c igrwvt AwauNdI hY pr i&r vI ies kwrn krzy Aqy Gwty dw swhmxw krnw pY skdw hY[ jykr tr~k lof spwt mwrkIt ryt Aqy vOlXUm iv~c igrwvt AwauNdI hY qW iPr vI iehnW vDIAW kImqW iv~c koeI igrwvt nhIN AwvygI[ bhuq swry v~fy kYrIArW ny vrqy gey tr~k mwrkIt dw Pwiedw auTwieAw Aqy kuJ smwn Anlof kIqw ijs nwl auh nkd iek~Tw krn jW hor cIjW iv~c pYsy lgwaux ivc kwmXwb rhy[ www.punjabitruckingusa.com


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March & April 2022

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March & April 2022

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nhIN r~Ky hn, pr rwj ieh PYslw kr skdw hY ik auh &Yfrl pYsw ik~Qy Aqy ikvyN Krcxw cwhuMdw hY[ imnIsotw rwj ƒ ies swl 30% hor PMf pRwpq hoxgy[ imnIsotw tr~ikMg AYsosIeySn (AYm.tI.ey.) dy pRDwn jOn hwauslwfyn ny ikhw ik auh aumId krdy sn ik kMm krn leI G~to G~t kuJ pYsy qW id~qy gey hn[ auh ^ws qOr 'qy icMqq hn ik imnIAwpoils vWg bhuq swry SihrI KyqrW ny irhwieSI ielwikAW iv~c tr~k pwrikMg 'qy pwbMdI lgw id~qI hY[ ausny ikhw, "ie~k bhuq izAwdw AwbwdI vwly Sihr iv~c tr~k pwrikMg bxwaux leI bhuq swrI zmIn auplbD nhIN huMdI Aqy ibnW iksy pRyrxw jW srkwrI shwieqw dy ies kMm ƒ A~gy nhIN vDwieAw jw skdw[" frweIvrW dI BrqI dI sm~isAw iv~c irhwieSI ielwikAW iv~c pwrikMg dI qMgI hoxw vI iek mu~K kwrn hY[ bhuq swry frweIvr kMm qoN Cu~tI hox dy bwAd tr~k Awpxy GrW dy nyVy pwrk krnw cwhuMdy hn[ www.punjabitruckingusa.com


ivskwnisn-ADwrq rohl tRWsport dy frweIvr ruzgwr dy aup pRDwn, itm nOriln ny ikhw ik ie~Qy keI lok Aijhy hn jo tr~k frweIvr bxnw cwhuMdy hn pr pwrikMg dI koeI shI jgHw nw imlx kwrn auh frweIvr nhIN bx pwauNdy hn[ vpwrk frweIvrW iv~coN 7% frweIvr AOrqW hn jo sur~iKAw sMbMDI keI prySwnIAW dw swhmxw kr rhIAW hn Aqy sur~iKAq pwrikMg dI mMg krdIAW hn ijs iv~c rOSnI, vwV Aqy rYstrUm Swiml hox[ qknwlojI hwlWik nvIN qknIk dy ifvYlpr tr~k frweIvrW leI mddgwr tUl bxw skdy hn, pr auh sQwnk srkwrW ƒ vDyry tr~k pwrikMg dI jgHw dyx leI nhIN kih skdy hn ijsdI ies smyN sB qoN v~D loV hY[ ^ws qOr 'qy tr~k stwpW, Aqy tRYvl plwizAW ƒ pwrikMg leI hor QW bxwaux leI, vwqwvrx pRBwv irportW, zoinMg primtW Aqy hor keI cIjW dI loV hY[ tr~kr pwQ jo ik ie~k qknIkI tUl hY, ies iv~c swfI mdd kr skdw hY[ auh ies g~l 'qy mwx kridAW d~sdw hY ik auh "mwrkIt iv~c ie~ko ie~k tr~k pwrikMg mwhr hY ijs iv~c 6,00,000 'qoN v~D tr~kr, tr~k pwrikMg sQwnW ƒ A~pfyt kr rhy hn[" tr~kr pwQ ieh inrDwrq krn leI kRwaUfsorisMg dI vrqoN krdw hY ik pwrikMg leI QW ik~Qy l~BI jw skdI hY[ ieh frweIvrW ƒ AYp 'qy pOp-A~p svwlW dy jvwb dyx leI kihMdw hY, ijvyN ik AijhIAW QwvW ijQy pwrikMg bxweI jw skdI hY Aqy nwl hI AijhIAW QwvW vI jo pUrI qrHW BrIAW hoeIAW hn[ tr~kr pwQ dy mu~K mwrkIitMg APsr, ikRs ElIvr, ny ikhw, "ieh cIz jIEPYNs duAwrw sMBv hoeI hY jo ik auhnW swry jwxy-pCwxy pwrikMg sQwnW dy Awly-duAwly sQwipq kIqy sn[" tr~kr pwQ ivSlySx dI vrqoN krky ieh Anumwn lgwauNdw hY ik KwlI QWvW ik~Qy auplbD hoxgIAW[ tr~kr pwQ AwpxI vY~bsweIt 'qy kihMdw hY, "swfI nvIN tr~k pwrikMg pUrv-Anumwn ivSySqw nwl tr~k pwrikMg l~Bx dw AMdwzw lgwE[ 8,000 qoN v~D sQwnW 'qy nzdIkI tr~k pwrikMg dI auplbDI dyKo[” BweIvwlI dI loV kYrIArW, irsIvrW Aqy vyArhwaUsW ƒ frweIvrW ƒ FukvIN pwrikMg l~Bx iv~c mdd krn leI vDyry sihXog dI loV huMdI hY[ audwhrn leI, vyArhwaUsW ƒ frweIvrW dI mdd krn dI loV huMdI www.punjabitruckingusa.com

hY[ ies qoN ielwvw, frweIvrW ƒ nw isr& pwrikMg QWvW dI zrUrq huMdI hY, sgoN hor shUlqW ijvyN ik rYstrUm Aqy Swvr dI vI loV huMdI hY[ AYm.tI.ey. dy hOslwfyn ny ikhw, “slIpr brQ smyq tr~k clwaux nwl quhwfIAW jIvn dIAW swrIAW buinAwdI loVW dIAW sm~isAwvW ^qm nhIN huMdIAW [ jykr qusIN ifaUtI 'qy nhIN ho, qW dUijAW nwl g~lbwq krn leI quhwƒ Bojn, rYstrUm Aqy Swvr dI vI loV huMdI hY[" kuJ kMpnIAW iSipMg dOrwn imlx vwlIAW shUlqW Aqy pwrikMg ivklpW bwry pihlW hI frweIvrW nwl g~lbwq kr lYNdIAW hn[

sI.Awr. ieMglYNf ivKy auh iPaUl dI shUlq vI pRdwn krdy hn[ rohl noriln dw kihxw hY ik frweIvrW ƒ Xwqrw dI Xojnw bxwaux l~igAW pwrikMg ƒ ie~k mh~qvpUrn ih~sw mMnxw cwhIdw hY[ ausny ikhw, “iksy QW 'qy jWdy hoey ibnHW iksy Xojnw dy pwrikMg l~Bx dI aumId nw kro sgoN Awpxy AnuBv qoN pihlW hI pwrikMg dI QW bwry pqw kro[ swƒ frweIvrW leI tr~k pwrk krn leI gyt l~gI hoeI iksy sur~iKAq QW dI zrUrq huMdI hY, Aqy frweIvrW leI iehnW ƒ l~Bxw AOKw huMdw jw irhw hY["

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March & April 2022

13


INDUSTRY NEWS

Lighting the key culprit in last year’s truck inspections

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ut of nearly 250,000 North American roadside inspections conducted by highway safety officials in 2021, the most common violation involved broken lights, according to the Federal Motor Carrier Safety Administration. Nearly 12% of the total violations found by inspectors involved inoperable lamps, with signal lights the second highest violation. Lamp violations made up a total of 344,225 violations with more than 400 types recorded. Obviously, lights are the easiest violation for inspectors to spot in a roadside inspection. U.S. trucks had 300,433 violations out of 212,256 inspections, Mexican trucks had 40,235 violations in 27,963 violations and Canadian trucks accounted for 3,269 violations in 2,768 inspections. 14

March & April 2022

“It’s important to note, commercial motor vehicles coming in from Mexico are checked regularly as they cross the border and generally have better lighting compliance,” said Ericka Miller, press secretary for the Texas Department of Public Safety. In fact, most commercial truck owners, especially highway fleets, use LED headlamps, tail lamps and marker lights even though there is a higher upfront cost than using incandescent lamps. LED diodes can last up to ten years, require less voltage, run at lower temperatures and are more resistant to shock and vibration. Of the U.S. truck inspections, California led the way with 21%, Texas followed with 15%, then New York with 4%, Maryland with 4% and North

Carolina and Florida with 3%. States with the least violations were Wyoming, Vermont, Alaska, Rhode Island and Hawaii.

One of the main reasons for so many lighting violations is that most big rigs today use LED lights, which include clusters of diodes. The cluster doesn’t need to be changed if only a few diodes are out. Unfortunately, many drivers and maintenance lots wait too long to replace individual diodes, leading to an entire panel of lights failing.

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&Yfrl motr kYrIAr syPtI AYfiminstRySn dy Anuswr, 2021 iv~c hweIvy sur~iKAw AiDkwrIAW duAwrw kIqy gey lgBg 2,50,000 au~qrI AmrIkw dy sVk iknwry inrIKxW iv~coN, sB qoN Awm aulMGxw iv~c tu~tIAW lweItW Swiml sn[ ieMspYktrW duAwrw pweIAW geIAW ku~l aulMGxwvW iv~coN lgBg 12% iv~c nw c~lxXog lweIt lYNp Swiml sn jo ik isgnl lweItW nwloN dUjI sB qoN v~D aulMGxw sI[ jykr lYNp SRyxI dI g~l krIey qW ies iv~c ku~l 3,44,225 aulMGxw kIqIAW geIAW hn ijnHW iv~c 400 qoN v~D iksmW drj kIqIAW geIAW hn[ sp~St qOr qy ieMspYktrW leI sVk dy iknwry inrIKx dOrwn lweItW dI aulMGxw dw pqw lgwauxw sB qoN Awswn hY[ XU.AYs tr~kW ny 2,12,256 inrIKxW iv~coN 3,00,433 aulMGxw kIqIAW, mYksIkn tr~kW ny 27,963 inrIKxW iv~c 40,235 aulMGxw kIqIAW Aqy kYnyfIAn tr~kW ny 2,768 inrIKxW iv~c 3,269 aulMGxw kIqIAW[

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15


INDUSTRY NEWS

Lack of affordable used trucks could put drayage companies out of business as CARB deadline looms

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onsistently ranked as one of the busiest ports in the nation, the Port of Oakland may see changes as drayage truckers that serve the port are put under pressure by the impending deadline from the California Air Resources Board (CARB) to upgrade their trucks to meet new emissions regulations. Some are finding it difficult to upgrade because they simply cannot afford brand new trucks and with supply chain and semiconductor issues still a problem, used trucks are at a premium and are also very expensive. With high demand and low supply, used truck prices are up nearly 100% from pre-pandemic levels and that is for trucks with higher average miles and age. Trucking companies that cannot upgrade right now are hoping for an extension from CARB. The deadline is still Dec. 31. A provision in the Truck and Bus rule allows an extension for new 16

March & April 2022

truck purchases if there are manufacturer delays. This, however, does not help those who planned on upgrading to newer used trucks. Truck fleet budgets that used to be able to buy two or three used trucks for $100,000 now can only afford one. This reality has led to estimates that over 40,000 trucks could be put out of service in California after the deadline. Bill Aboudi, president of AB Trucking in Oakland said, “Port truckers are under a lot of stress already and we need an extension to the CARB rule by a year or two to let prices of trucks drop a little and we can rest a little easier.” For some truckers, however, the soaring prices for used trucks have led them to sell their trucks and retire or move to other jobs. Meanwhile, solutions to supply chain problems at the port have been slow to mitigate continuing slowdowns. Drayage companies and agricultural

product exporters blame steamship lines and terminal operators for appointment cancellations and delays. In response, the Department of Agriculture announced that it is partnering with the port to fund a 25-acre container staging area for farm exports. The USDA failed to mention that more than a dozen trucking companies were evicted from the Howard Terminal to make this space available. One drayage company owner said the cost of moving his company to the Howard Terminal last year was about $10,000, including moving his trucks and office trailers and hooking up to utilities. Now he may be forced to move and pay those costs once again.

www.punjabitruckingusa.com


INDUSTRY NEWS

Funds raised for Freedom Convoy are blocked amid violence on U.S.-Canada border

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ue to reports of “violence and other unlawful activities,” the American crowdfunding platform GoFundMe has shut down the Freedom Convoy 2022 fund which had been helping support truck drivers during their protests at the U.S.-Canada border over COVID-19 vaccine mandates. On its website, GoFundMe said, “We now have evidence from law enforcement that the previously peaceful demonstration has become an occupation. Following a review of relevant facts and multiple discussions with local law enforcement and city officials, this fundraiser is now in violation of our terms of service (Term 8, which prohibits the promotion of violence and harassment) and has been removed from our platform.” The Freedom Convoy originally consisted of owner-operators who staged a peaceful protest in Ottawa, Ontario against

mandates by the U.S. and Canada which required drivers crossing the border to provide proof of vaccination. The truckers’ protest, however, soon became a gathering place for a variety of protesters, including extremists and secessionists. Swastikas and inverted Canadian flags were seen among these groups while some protesters danced on the Canadian Tomb of the Unknown Soldier. The fund had already released CA$1 million to organizers with about CA$4.7 million of the funds that were raised now frozen and expected to be returned to donors. The platform said, “To simplify the process for our users, we will be refunding all donations to the Freedom Convoy 2022 fundraiser. This refund will happen automatically—you do not need to submit a request. Donors can expect to see refunds within 7-10 business days.”

Canadian officials have grown increasingly frustrated with the protest and the trucks which are blocking portions of downtown Ottawa. Canadian President Trudeau, however, has ruled out any use of the military in breaking up the protest.

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March & April 2022

17


INDUSTRY NEWS

Infrastructure Law has provision for task force to examine truck leasing agreements

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s part of the Bipartisan Infrastructure Law passed last November, a task force of stakeholders will examine the fairness of lease and lease-option agreements involving carriers, lease companies, owneroperators and drayage drivers. A ten-person panel will be convened by mid-May and assigned with looking at truck leasing to develop a long-term plan to solve any equity problems within the system. They are expected to produce a report for the Department of Transportation, Department of Labor and Congress. The panel will include representatives from labor groups, owner-operators, shippers, consumer protection groups, consumer finance lawyers and leasing businesses. “The availability of owner-operators and their equipment is critical to the supply chain, but the ability of hard-working men and women choosing to own their own 18

March & April 2022

business is even more critical to the country and our industry,” said Nick Geale, vice president for workforce policy at American Trucking Associations (ATA), in a recent press release.

“We look forward to working with FMCSA [Federal Motor Carrier Safety Administration] on ensuring a balanced task force that looks at the issue in an objective manner to make recommendations that maintain that opportunity with appropriate safeguards.” The Owner-Operators Independent Drivers Association (OOIDA) has complained about predatory leasing for many years, according to spokeswoman

Norita Taylor. She said, “While the supposed goal is for the driver to eventually own the truck and become a full-fledged owner-operator at the end of the lease, the agreements rarely end that way. The lack of oversight often leads to disastrous results for the truck driver.” The task force will examine common truck leasing practices that involve commercial drivers, looking for agreements that are skewed toward the lessor and against the driver. The law gives the task force the ability to determine if truck leasing agreements properly incentivize safety, including driver compliance with hours-of-service (HOS) regulations and laws governing speed. The law also asks the task force to explore whether lease agreements allow drivers to earn the same rate as other drivers performing the same task.

www.punjabitruckingusa.com


INDUSTRY NEWS

More indictments made in staged accident investigation involving commercial trucks in Louisiana

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ederal prosecutors have handed down more indictments in the investigation of a series of staged accidents in Louisiana, bringing the number of defendants charged to 47. Filed in the Eastern District of Louisiana, these are the first indictments since last September. The defendants, who range in age from 30-70, were charged with Conspiracy to Commit Mail Fraud. According to court documents, three of the defendants served as intermediaries who directed passengers to participate in staged automobile accidents. One of the defendants helped to arrange collisions that took place in the spring of 2017. Two others helped to coordinate the collisions.

Four of them falsely claimed they were passengers in a car that was hit by a tractor-trailer. In reality, the defendants conspired with others to collide with the tractor-trailer in the New Orleans area. The defendants made a false police report, lied in their depositions and filed fraudulent lawsuits against the owner of the tractor-trailer. Those indicted were Joseph Brewton of Houma, Louisiana, David Brown and Gilda Henderson of Morgan City, Louisiana, Latrell Johnson of New Orleans, Larry Picou and Florence Randle of Gibson, Louisiana and Stacie Wheaten of Atlanta. Since 2020, there have been 30 convictions of individuals involved in

the staged accidents with some now in jail and others on home detention. Prison sentences have ranged from 10 months to four years. Trucking companies which were targeted by the hoaxes include Covenant Transportation, Southern Refrigerated Transportation, B.A.H. Express, Tennessee Commercial Warehouse, HMNG Trucking and Stevie B’s Trucking. Attorneys, who allegedly carried out the lawsuits and doctors, who allegedly performed unnecessary surgeries on supposed victims have yet to be charged. Only attorney Danny Keating has been prosecuted so far. He pleaded guilty last June.

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March & April 2022

19


INDUSTRY NEWS

FreightVana adds trailers, strives for transparency

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ounded by two former executives from Knight-Swift Transportation, Phoenix-based third-party logistics company FrieghtVana announced plans in February to purchase 1,250 53-ft. dry van trailers in an expansion of its power-only brokerage firm, FreightVana x. After leaving Knight-Swift early last year, Shannon Breen

20

March & April 2022

and John Gamero, who grew up in Phoenix, formed Freightvana which they envisioned would bring “greater transparency to the world of freight.” A power-only brokerage relies on pre-loaded trailers which a carrier leases from a third-party, such as FreightVana x in order to haul to a destination. The arrangement is excellent for carriers who simply arrive at a facility and hook-up a pre-loaded trailer without having to endure endless detention time. The “x” in the company’s name stands for collaboration. Breen, who is also FreightVana’s CEO, said, "Shippers are typically forced to work with large asset-based Carriers to establish drop trailer programs, while most small to mediumsized truckload providers are unable to operationalize these offerings because of equipment availability and financing constraints.” Breen added, “We started FreightVana x, in collaboration with our supply chain partners, to help alleviate this specific issue so that Shippers can now enjoy a scalable and strategic drop trailer program, backed by smaller trucking fleets, who represent most of the available capacity in the market." FrightVana began operating last year between California, Nevada and Arizona. They will make 250 trailers available to carriers by the end of May, with another 1,000 trailers expected to be on the road by the end of the year. While one stated goal is transparency, FreightVana is also hoping to provide a larger share for carriers without overcharging the shipper. FreightVana’s model of providing pre-loaded trailers to its customers comes at a time when capacity is tight, yet new equipment costs have soared during the pandemic and subsequent supply chain chaos. “Fleets with fewer than 100 trucks struggled to buy new equipment,” said Breen. “They’re trying to keep what they do have on the road and rolling.” Other companies that are now operating drop trailer networks include Convoy, Uber Freight, J.B Hunt and Schneider. www.punjabitruckingusa.com


INDUSTRY NEWS

Drug test violations up 10% according to data from Clearinghouse

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n its first comparison of yearto-year data, the federal Drug & Alcohol Clearinghouse found that drug violations for truck drivers increased over 10% from 2020 to 2021. Positive tests were up only 3.1% while the remaining increase in violations were for drivers who refused to be tested. The year-to-year comparison included 15 drug categories. Cocaine accounted for the largest increase, up 10.4% to more than 8,700 individuals. Marijuana was second with an increase of 5.3% to 31,000. MDA, a synthetic hallucinogen, was the only other drug to show an increase, going up about 10%. In contrast, alcohol violations were way up, soaring over 26%. While not all drivers are yet part of the Clearinghouse, full employment queries rose by 42% in 2021. 77% of drivers who have at least one violation have not yet completed the return-to-duty process and are blocked from driving commercially. Not surprisingly, marijuana accounts for the largest increase in drug violations, 25% higher than any other substance. Marijuana is legal in 18 states, but the federal government has yet to legalize it nationwide. Clearinghouse data indicates there were 60,596 marijuana violations, 16,705 cocaine violations, 10,269 methamphetamine violations, 9,857 amphetamine violations. Other categories had less than 3,000 violations. A new study, backed by The Trucking Alliance (board members include J.B. Hunt, Knight Transportation and Swift) concluded that the number of cocaine violations is far higher, because hair testing is not an accepted test by the Department of Transportation. While most employers would like to see hair testing included in the Clearinghouse, the Owner-Operator Independent Drivers Association disputed the study, saying “it found no reason to believe that crashes would be reduced” if hair testing was federally www.punjabitruckingusa.com

sanctioned. “What the Trucking Alliance is claiming cannot possibly be extrapolated to the entire industry,” said OOIDA President Todd Spencer. “They really should be

taking a closer look at why their carriers are so attractive to potential employees that use illegal drugs. And, any shipper that uses those companies might also take note.”

March & April 2022

21


INDUSTRY NEWS

Inflation reaches 40-year high; interest rate hike on the horizon

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ecause of increases in the price of consumer items, including food and electricity, inflation soared to its highest rate in 40 years in January. The main inflation measurement, the consumer price index, shows that prices have gone up 7.5% in the previous 12 months. Experts have consistently underestimated the rate of inflation over the last year, with prices rising faster than any time since the early 1980’s. The persistent increases should lead the Federal Reserve to raise interest rates, which it could do during its next meeting in March. Higher prices on everything from gas to groceries has wiped out much of the gain in the average American’s wealth, even at a time when wages have risen, and many Americans have received benefits from

22

March & April 2022

the federal government because of the COVID-19 pandemic. President Joe Biden, however, believes that inflation will drop in 2022. In a recent press release, he said, “While today’s report is elevated, forecasters continue to project inflation easing substantially by the end of 2022. And fortunately, we saw positive real wage growth last month, and moderation in auto prices, which have made up about a quarter of headline inflation over the last year.” Inflation occurs when supply does not meet demand, and since Americans had more money in their pockets last year, they wanted to make household purchases, straining factories and global supply chains. And, at the same time as factories were attempting to produce more, they found themselves with a smaller labor pool.

Unemployment is currently at just 4%, which most economists usually refer to as “full employment.” With this tight labor pool comes the inevitable higher wages. In fact, wages grew higher than they had since 2000. Unfortunately, inflation rates have outstripped wage gains over the last year. Food prices continued their rise in January, up 0.9% with similar rises in energy costs with electricity increasing higher than any time since 2006. The continued rise of inflation could mean the end of any hopes that Biden might pass his Build Back Better Plan, which would pump another $3.2 trillion into the economy over the next 10 years. Sen. Joe Manchin (D-West Virginia) has cited inflation as a reason why he won’t vote for the plan.

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March & April 2022

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March & April 2022

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March & April 2022

25


TRUCK PARKING ARTICLE

Parking remains problematic for truck drivers despite passage of new infrastructure bill

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dequate parking for big rigs has long been a thorny issue for the trucking industry, especially after the recently passed Bipartisan Infrastructure Bill didn’t provide a penny of funding for new parking. The original bill had provided $1 billion in parking money, but it was cut during negotiations. Some “discretionary funding” may be available, although it will have to compete with money for new roads and bridges. Trucking is an even more integral part of the nation’s economy with the rise of e-commerce, making parking a challenge that will need a variety of solutions. 26

March & April 2022

Last year, the American Transportation Research Institute released research on how truckers use parking and their opinions on how truck parking information is distributed. The research relied on surveys of more than 1,100 drivers. According to the report, “Truck Parking Information Systems: Truck Driver Use and Perceptions,” the lack of available truck parking has been consistently rated as a top- five industry concern. The report and analysis from other trucking analysts have identified areas that need to be addressed, including the availability of public and private

investments, an increased use of technology and more partnerships that will bring all stakeholders together to find solutions. Investments While the new federal infrastructure package did not earmark funds directly for parking, states can decide how they want to spend the federal money. In Minnesota, the state will get 30% more funding this year. John Hausladen, president of the Minnesota Trucking Association (MTA) said he was “hopeful that at least there is a pool [of money] to work with.” He is particularly concerned that many www.punjabitruckingusa.com


TRUCK PARKING ARTICLE

urban areas, such as Minneapolis, have banned truck parking in residential areas. He said, “As a highly populated urban center, there isn’t a lot of available land to just create truck parking without some sort of incentives or government support that move it forward.” Parking in residential areas is also a problem in the recruitment of drivers. Many drivers would like to park near their homes when they are off work. “There are people who want to be truck drivers, but sometimes they can’t become drivers because they don’t know where to park,” said Tim Norlin, vice president of driver employment for Wisconsin-based Roehl Transport. The recruitment of women, who make up only about 7% of commercial drivers, also hinges on the availability of safe and secure parking spaces which include lighting, fences and restrooms. Technology Although developers of new technology can create helpful tools for truck drivers, they cannot get local governments to allow more truck parking where it is

www.punjabitruckingusa.com

most needed. In particular, truck stops, and travel plazas need environmental impact reports, zoning permits and other requirements to build more spaces. One tech tool can help. Trucker Path boasts that it “is the only truck parking expert on the market. With over 600K truckers updating truck parking spots.” Trucker Path uses crowdsourcing to determine where parking availability can be found. It asks drivers to answer pop-up questions on the app, such as whether a lot has open spaces or where a lot is full. Chris Oliver, chief marketing officer for Trucker Path, said, “This is made possible via geofences we’ve established around all of the known parking locations.” Trucker Path also uses analytics to predict where empty spaces will be available. On its website, Trucker Path says, “Take the guesswork out of finding truck parking with our new Truck Parking Prediction feature. Know when there is nearby truck parking at over 8,000 locations.” Need for Partnerships Carriers, receivers and warehouses

need more cooperation to help drivers find suitable parking. For example, warehouses need to help drivers. In addition, drivers not only need parking spaces but also other amenities, such as restrooms and showers. “Just because you drive a truck with a sleeper berth, it doesn’t solve your problems for all of life’s basic necessities. You need access to food, restrooms and showers. If you’re not on duty, being able to interact with others,” said MTA’s Hausladen. Some companies communicate with drivers in advance about parking options at shipping and receiving facilities. At C.R. England they also provide fueling options. Roehl’s Norlin says drivers should make parking an important part of trip planning. He said, “Don’t just drive to an area and hope to park. Plan or know from experience where to park.” He added, “We need gated, secured locations for drivers to park, and it is getting harder and harder for drivers to find these.”

March & April 2022

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INDUSTRY NEWS

Delivery platform Lula helps put brick and mortar stores back in the driver’s seat

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ith the COVID-19 pandemic wreaking havoc in the spring of 2020, retail stores throughout the nation shuttered. Out of this catastrophe came an innovative new way to help brick and mortar stores get their goods into the hands of customers who could not shop because of lockdowns. Philadelphia-based Lula, the brainchild of two Drexel University students, Adit Gupta and Tom Falzani, provides an app for convenience stores to provide last-mile delivery of online orders. Partnered with a wholesale distributor of fresh sandwiches, salads, snacks, cigarettes, frozen and

refrigerated goods and a variety of other perishable items, Lula has more than 14,000 retail customers in eleven states. Recently, the e-commerce delivery technology company announced a new round of seed funding that netted $5.5 million from Ripple Ventures, Outlander VC and Up Partners. Lula now has $6.5 million in total funding. Seed money is a form of securities offering in which an investor invests capital in a startup in exchange for an equity stake in the company. “I’m excited to see Lula ramping up to make delivery services accessible to

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March & April 2022

local businesses. The pandemic has hit Main Street hard, and Lula is a great way for local merchants to access the rapidly growing delivery space. Adit and Tom have identified a huge opportunity and I’m extremely proud of Adit’s journey through Ripple X,” said Matt Cohen, managing partner of Ripple Ventures. On its website, Lula claims it “empowers stores to modernize, serve, and thrive in order to delight their customers locally and beyond.” Gupta and Falzani concluded that small stores needed help after they witnessed Gupta’s grandparents’ store in New Jersey close because of COVID. “There are over 150,000 convenience stores across the United States, and over 90% of the population lives within 1 mile of a store. It’s baffling how hard it is for stores to take advantage of online delivery. Lula aims to make convenience stores just a little more convenient by helping them deliver on every delivery platform online in the easiest way possible,” said Gupta. Lula helps convenience stores digitize their entire inventory in one location. It then uses third-party delivery companies, such as Uber Eats, to provide on-demand delivery of goods from any convenience store in Lula’s network. Not only that, but it also offers a zero-commission platform that does everything, including customer service, account management, marketing and delivery. www.punjabitruckingusa.com


www.punjabitruckingusa.com

March & April 2022

29


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aulMGxw dI sMiKAw ikqy v~D hY ikauNik vwlW dI jWc AwvwjweI ivBwg duAwrw ie~k pRvwinq tYst nhIN hY[ jdoN ik izAwdwqr mwlk klIAirMg hwaUs iv~c vwlW dI jWc ƒ Swiml krnw cwhuMdy hn, Enr Aprytr ieMifpYNfYNt frweIvr AYsosIASn ny AiDAYn ƒ ivvwidq krdy hoey ibAwn id~qw hY Aqy ikhw, "ies qy ivSvws krn dw koeI kwrn nhIN imilAw ik kRYSW ƒ GtwieAw jw skdw hY" jykr vwlW dI jWc ƒ sMGI qOr qy mnzUrI id~qI jWdI hY[ E.E.AweI.fI.ey. dy pRDwn tOf spYNsr ny ikhw, “tr~ikMg AlwieMs duAwrw kIqy gey dwAvy smu~cy sYktr qy lwgU nhIN kIqy jw skdy hn" “aunHW ƒ Asl iv~c ies g~l qy fUMGweI nwl ivcwr krnw cwhIdw hY ik aunHW dy kYrIAr sMBwvI krmcwrIAW leI ieMny AwkrSk ikauN hn jo gYr-kwƒnI dvweIAW dI vrqoN krdy hn[ koeI vI iSpr jo auhnW PrmW dI vrqoN krdw hY, ies bwry sucyq hoxw cwhIdw hY[” www.punjabitruckingusa.com


INDUSTRY NEWS

Refrigerated carrier Hirshbach gets bigger with acquisition of John Christner Trucking

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ith its recent acquisition of John Christner Trucking (JCT), Dubuque, Iowabased Hirschbach is now one of the largest refrigerated carriers in the U.S. Hirschbach adds 3,200 units to its fleet which will now have over 3,000 trucks and 5,000 trailers. It will also have revenue of more than $1 billion. While the financial specifics have not yet been announced, the deal will close in April. JCT was estimated to be worth nearly $350 million with a brokerage platform that brings in $150 million in revenue annually. The brokerage component of JCT will be run separately and retain the Christner name. It will look to combine revenue and operations wherever possible with Hirschbach.

The purchase of JCT will expand Hirschbach operations into the West and South. Currently, Hirschbach operates east of the Rocky Mountains. The fleets service many of the same customers and, according to company officials, nothing will change as far as service. “These two organizations should be united and fit together like two puzzle pieces,” said Brad Pinchuk, CEO and owner of Hirschbach. “Culturally, these two organizations are in perfect alignment. We’re both driver-centric organizations that focus on taking care of our people so they can take care of our customers.” JCT founder John Christner started hauling produce on the West Coast in the 1960’s. Along with his two sons, Christner formed the logistics unit about 15 years

ago. Danny Christner will still be in charge of the brokerage platform. Hirschbach also recently purchased Minnesota-based temperature-controlled operator Lessors Inc., absorbing 200 drivers and 300 units into its fold. More than 80% of those drivers stayed with Hirschbach along with many of Lessors’ customers. “It’s truly an honor to have been selected by the Christner family to be entrusted with their baby,” said Pinchuk. “JCT has a proud history.” “We’re excited and honored that [Hirschbach] had the belief in us,” said Danny Christner. “At the same time, I wanted to retain our identity and our brand value in the marketplace. The deal that Brad [Pinchuk] and I put together allows us to do both of those things.”

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March & April 2022

31


INDUSTRY NEWS

Pilot program would allow younger truck drivers go interstate

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hile some may hesitate to turn our nation’s roads over to teenage truck drivers, a new federal program which would do precisely that could make those roads safer in the long run. The Safe Driver Apprenticeship Pilot (SDAP) Program would train a group of 18–20-year-old drivers to operate commercial trucks across state lines. Currently, most states allow these younger drivers to carry freight only within state lines. The three-year program will have about 3,000 students with a training regimen more difficult and safety technology better than current standards. Apprentice drivers will need to complete two probationary periods—one for 120 hours and the other for 280 hours. During that time, these young drivers may transport goods across state lines but only with an experienced driver in the

passenger seat. This supervisor needs to be at least 26 years old, with a minimum of five years of interstate driving experience. Apprentices will also be required to have specific vehicle safety technologies installed on their trucks, such as added incab cameras to monitor driver behavior. While the requirement for added technology may keep smaller companies from hiring 18-20-year-old drivers, analysts believe these costs will decline over time. Companies participating in the SDAP Program must submit monthly data on their apprentice’s driver activity and notify the Federal Motor Carrier Safety Administration within 24 hours of any injury or fatal crash involving an apprentice. These apprentices will also have to be registered with the Drug & Alcohol Clearinghouse. The program comes at a time when the U.S. has a serious driver shortage. Some

analysts estimate 80,000 new drivers are needed and that both younger drivers and women could fill these roles in the future, especially if safety is made a high priority during training. In the federal register announcement of the pilot program, nearly 200 comments were generated with more than two to one favoring the program. Support also came from trucking groups such as the American Trucking Associations, Commercial Vehicle Training Association, National Grocer Association and several more. Those that voiced opposition to allowing 18-20-year-olds to participate in interstate commerce included Advocates for Highway and Auto Safety, Citizens for Reliable and Safe Highways, the National Safety Council, National Transportation Safety Board, the Owner-Operator Independent Drivers Association, Parents Against Tired Truckers, and the Truck Safety Coalition.

Ohio bill to give $25,000 in tax credits for training new drivers, now heads to the State Senate

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mid a chronic driver’s shortage, the Ohio House of Representatives has unanimously passed legislation offering trucking companies a $25,000 tax credit for training new drivers. The bill now goes to the Ohio Senate for final passage. The credit would cap out at $1.5 million. I would also mean the state’s general fund would lose $1.45 million and local jurisdictions would lose $50,000 from their funding. “I am a small business owner, and the hardest position to fill in my company has always been a CDL truck driver because 32

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they are in such great demand,” said Rep. Reggie Stoltzfus (R-Paris Township) in testimony before the House Ways and Means Committee. “After getting frustrated because I could not find drivers, I started training current employees to be drivers on my own dime. Having trained several employees of my own, I know what a huge expense this can be to a company.” Trucking analysts have estimated that the U.S. faces a shortage of about 80,000 drivers as many older drivers retired during the pandemic and younger workers and

women have been slow to take up driving as a profession. “This is a problem sweeping the nation, yet, unfortunately, many states, including Ohio, do not have adequate support established for individuals to overcome the financial barriers when trying to become a commercial vehicle driver,” said Edwin Nagle, chair of the Ohio Trucking Association and president of Nagle Companies in Walbridge, Ohio. The bill has major support from the Ohio Chamber of Commerce and several trucking and business organizations. www.punjabitruckingusa.com


www.punjabitruckingusa.com

March & April 2022

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March & April 2022

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INDUSTRY NEWS

Canadian logistics company expands with acquisition of Texas-based Arnold Transportation

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ntario, Canada-based Pride Group Logistics (PGL) recently announced the purchase of Grand Prairie, Texas-based Arnold Transportation Services. Arnold has a fleet of more than 400 tractors and 1,400 dry vans. On its website, PGL said, “Our strategy of operating only ‘current year’ equipment gives us the most fuel-efficient fleet on the road today. The new technology significantly reduces our carbon footprint.” "The acquisition of Arnold Transportation Services will allow us to expand our U.S. domestic transportation offering to new and existing customers. We look forward to providing Arnold with many additional resources that will help grow the fleet and continue to provide safe and high-quality transportation services

to customers,” said PGL Vice President Aman Johal. “I am also happy to announce that Michael DelBovo will remain President of Arnold Transportation Services.” Arnold is a full-service asset-based carrier which was originally established in the 1930’s when it put, according to a press release, a premium on safety and regional service. The company’s operation is based in the south central and Midwest portion of the U.S. DelBovo said, “Arnold operates in regional markets for customers who require a flexible, performance-driven carrier." PGL will add new equipment to Arnold’s fleet with plans to add refrigerated units in the near future. As a result of the acquisition, PGL will now have 805 trucks

and 2,600 trailers. "We understand the growing needs of the industry and the need to continue to grow and scale up our business to do our part to keep the supply chain moving for our customers. This acquisition is an exciting step in our company’s history; however, it is just one of the many steps that we will be taking to ensure the longevity and ongoing high-quality service our clients have come to expect,” said Johal. On its website, PGL boasts that it “invests heavily in the use of technology within its operations to achieve industryleading safety performance, customer satisfaction and driver retention. [PGL] is a leader in sustainable transportation with heavy investments in electric vehicles and infrastructure.”

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INDUSTRY NEWS

Battery power is the future for Navistar

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hether sooner or later, battery-electric trucks are the future of the commercial trucking industry, according to Navistar CEO Mathias Carlbaum. Although the company continues progress on fuel cell projects it started before being acquired by Volkswagen’s Traton Group, it has now come down firmly on the side of batteries like its parent company. “There is a window there, but over time because of the better energy efficiency, batteries will prevail,” Carlbaum told a virtual press conference recently in his first public comments since becoming CEO last September. In a study done in 2020 by the management consultancy group Horváth & Partners, battery power outperformed fuel cells. The study showed that 70-80% of electricity generated by batteries goes

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toward propulsion, while only about 2535% of the energy makes it to the wheels of a fuel cell vehicle. Nevertheless, Navistar still has two fuel cell projects underway. One is with Cummins Inc. to build a Class 8 fuel cell truck for Werner Enterprises. The other is with General Motors to use fuel cells on Navistar LT tractors for J.B. Hunt Transport. “We do believe there is a user case for hydrogen for certain very long distances,” Carlbaum said. “We are working our partnerships to have our solutions in the market to cover that period of time that hydrogen is going to be a part of the longhaul market.” While Daimler and Volvo are working on a joint fuel cell partnership to build hydrogen-powered trucks, Volkswagen has gone full throttle into battery power,

investing in startup QuantumScape, which promises to build a battery with greater range than current technology. Navistar, however, is in no rush to build a Class 8 battery-electric truck. The company is now engaged with building electric school buses and a medium-duty battery powered eMV Class 6 Truck. The eMV will be the first truck to be assembled at the company’s new facility in San Antonio, Texas. A Class 8 LT tractor waits in the wings and could soon be developed for regional hauling, like trucks made by Daimler, Volvo and Paccar. A long-haul battery powered (400-500 miles on a single charge) Class 8 truck is not in the immediate future. “We won’t be late when it’s the moment for it,” Carlbaum said. “But we don’t really see the need for trying that tech before there’s a user case for it.”

www.punjabitruckingusa.com


INDUSTRY NEWS

With $5 billion in federal money, states can start building charging stations along highways

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nvisioning a future where electric cars will have no problem traveling up and down the nation’s roadways, states are gearing up to build thousands of electric vehicle charging stations as part of the Biden administration’s investment in battling climate change. In February, the administration announced that $5 billion in federal money will be made available to states over the next five years. The money would pay for a network of stations every 50 miles along interstate highways. States can begin construction as early as this fall if they build on highways rather than in residential areas. Each station would be required to have fast charging ports which would allow for full recharging within an hour. Biden had originally promised $15 billion in funding and 500,000 charging stations built by 2030. Now it looks as though private investment will have to be used to meet that goal. “A century ago, America ushered in the modern automotive era; now America must lead the electric vehicle revolution,” said Transportation Secretary Pete Buttigieg, who oversees the funding. An additional $2.5 billion, which will be made available later this year, is earmarked for building stations in rural areas and disadvantaged communities. The administration hopes the added stations will spur drivers in those areas to purchase electric vehicles, though this will be difficult because these new cars and trucks are still far more expensive than gaspowered vehicles. To that end, Biden has set a goal of 50% electric vehicle sales by 2030. The ultimate goal is to become a totally zero emission economy by 2050. In the president’s Build Back Better plan, a $7,500 tax credit would be available for those who purchase an electric vehicle. That plan, however, has stalled in Congress. In recent comments, Biden said, “China has been leading the race up to now, but this is about to change. Because America is building convenient, reliable, equitable national public charging networks. So, wherever you live, charging an electric vehicle will be quick and easy.” Under the Transportation Department plan, states would be eligible to build charging stations in neighborhoods and cities as soon as the agency is able to certify they have built a network of stations on major highways, referred to as alternative fuel corridors. Fast charging stations which can provide an 80% charge within 20-40 minutes are expensive, costing as much as $100,000 per unit. Currently, Tesla operates over 1,200 www.punjabitruckingusa.com

stations across the nation with the ability to charge a Tesla electric car in about 15 minutes.

March & April 2022

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INDUSTRY NEWS

California oil distributor files bankruptcy, leaves debts of up to $100 million

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nce hailed as a hero because of its production of hand sanitizer at the height of the COVID-19 pandemic, Bloomington, California-based RPP Products Inc., a distributor for oil, lubricants and other automotive products, has filed for Chapter 7 bankruptcy, leaving millions of dollars of debt to a variety of creditors. Eric Zwigart is the owner and president of RPP (also known as RacePro Products). In the filing by Zwigart’s attorney Michael G. Spector with the U.S. Bankruptcy Court for the Central District of California, RPP listed assets of just $50,000 with liabilities of $50 to $100 million. It claims that no funds will be available for creditors after court administrative fees are paid. Among RPP’s creditors includes

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Gibraltar Business Capital LLC which is owed more than $9.6 million. Several trucking and logistics companies are also owed millions by RPP. FedEx Freight of Palatine, Illinois is owed more than $4.4 million, NW Logistics LLC of Newport Beach, California is also owed about $4.4 million while Nationwide Logistics of Ontario, California is owed nearly $3.2 million. Not surprisingly, at least three breach-of-contract lawsuits were filed against RPP last year. In October, RPP was ordered to pay Illinoisbased Old World Industries, which manufactures automotive and chemical

products, nearly $1.1 million. In addition, RPP was ordered to pay Ontario, Canada-based Servco Solid Surfaces $147,000 last September. Servco filed its suit in California. A creditors’ meeting is scheduled for March 15.

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INDUSTRY NEWS

Milwaukee-based fuel company owner to plead guilty for wire fraud

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dmitting he bilked investors out of more than $6 million, the CEO of a Milwaukee-based company that offered fuel and maintenance services to trucking companies has agreed to plead guilty to three counts of wire fraud in the U.S. District Court for the Eastern District of Wisconsin. Acting as CEO for Exit7c, 35-year-old Blessing K. Egbon used fake profit numbers and forged bank statements to lure investors into giving him money, which he used for chartering private jets, visiting “luxury nightclubs” and renting private villas.

Formerly CoOp Fuel, Exit7c provided onsite fuel and maintenance for truckers and rental car agencies. Egbon changed the name of the company when he moved from Colorado to Wisconsin in 2015 to take advantage of support from gener8tor,

a startup accelerator in the Milwaukee area that helped new businesses. Egbon consistently used fake documents to deal with potential investors, claiming his company’s total sales revenue topped $91 million in 2018-2019. The actual number was under $400,000. Federal prosecutors from the U.S. Securities and Exchange Commission filed the lawsuit against Egbon. He faces a maximum penalty of 20 years in prison for each of the three counts, a $250,000 fine. Egbon has also agreed to pay restitution to several of the investors.

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March & April 2022

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INDUSTRY NEWS

CALSTART report anticipates immediate growth of zero-emission vehicles

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n a new report from CALSTART and funded by the California Air Resources Board, the trucking industry should see “significant increases” in the use of zero-emission trucks or vans (ZETs) in the near future. The report said, “Key factors, such as model availability, technical capability, and vehicle cost, are changing rapidly and show that ZETs are ready to deploy across multiple commercial vehicle market segments.” Currently, however, there are only about 1,200 ZETs in work settings, although some of these may already be out of service, according to the report. The number represents a tiny fraction (0.005%) of medium- and heavy-duty trucks on the nation’s roads with 75% of these in the medium-duty variety. 20% of ZETs are yard-based tractors, meaning that only about 4% of the nation’s heavyduty long-haul trucks are zero-emissions. Most heavy-duty zero-emission trucks are part of pilot projects to demonstrate their efficiency. The report does indicate that another 140,000 ZETs are now on order by both public and private fleets. Many of these orders are for heavy-duty models. Of these orders, delivery times fluctuate from one to 10 years.

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The report’s optimism anticipates the influx of federal dollars on charging infrastructure and the implementation across the nation of new clean truck regulations. In California, commercial fleets will be getting $873 million in zeroemission purchase incentives. While manufacturers such as Daimler, Navistar and Volvo continue to experiment with hydrogen fuel cell trucks, the broad majority of ZETs currently on the road are battery electric. The industry hopes that fuel cells will be the answer for longerhaul and regional trucking since batteries sill have limited range. More than 30 manufacturers are offering a variety of different ZET models, a rapid increase over just two years ago. Unfortunately, several manufacturers have gone out of business because of inability to develop its technology, leaving fleets to reconsider large purchases.

“The actual number of deployed vehicles is still quite low, and we do expect to see shifts in delivery dates and actual delivery of those on order as the market players continue to evolve,” said Kevin

Walkowicz, senior director of truck programs at CALSTART, in a press release. “However, the numbers demonstrate that there is demand that will support significant growth in the industry.” ZET deployments are currently centered in states with supportive state officials such as California, New York, New Jersey and Illinois, but other states who have received federal funding are purchasing ZETs. California is the leader with 61% of all ZETs now on the nation’s roads. The market for ZETs should grow rapidly in coming years, because of three factors. First, batteries are becoming cheaper and will continue to slide in price as they become more in demand. Second, fuel cell technology is improving and will allow for longer range vehicles. Finally, “transportation-as-a-service model” takes into account that operators don’t have to pay the full upfront cost of a vehicle or the charging equipment it needs because of government grants and incentives.

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INDUSTRY NEWS

Cummins continues growth in natural gas engines with buyout of Westport

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fter a ten-year partnership, Indiana-based heavy duty truck engine manufacturer Cummins Inc. has bought out Westport Fuel Systems from its share in a natural gas engine joint venture between the two companies which ended last December. Cummins compensated Westport $20 million and will let them retain their share of the intellectual property from the venture. While not totally zero-emission, natural gas-powered engines can reduce pollutants by 90%. Last year, Cummins and Westport introduced the ISX12N+Endurant HD N engine with a fully integrated natural gas powertrain. At the time, Cummins-Westport President Thomas Hodek said, “The ultra-low emissions of the ISX12N combined with the Endurant HD N transmission provides the optimal powertrain solution for customers working to lower their carbon footprint. The deep powertrain integration delivers improved launch, low speed maneuverability, and smoother shifts that drivers will appreciate.”

Cummins is also introducing a 15-liter natural gas engine it sells in China. The engine offers ratings of up to 500 horsepower and 1,850-pound feet of torque. It will be up to 500 pounds less than comparable diesel engines. Natural gas-powered engines are one way that Cummins is looking to address climate change. In 2019 they introduced their Planet 2050 Strategy. Cummins CEO Tom Linebarger said, “Our communities and our business depend on our collective response to improve the health of the planet while creating prosperity for all. It’s clear that government, businesses, nongovernmental organizations, and communities must unite behind swift, decisive action to address the environmental threats we face.” Cummins has also set up other partnerships with work on hydrogen fuel cell capabilities. Linebarger said his company is “trying to create increased availability for systems that can actually store and transport fuel on vehicles.”

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March & April 2022

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INDUSTRY NEWS

Long awaited training standards became effective in February

N

ew baselines for entry-level truck driver training (ELDT) became effective on Feb. 7, after years of delay. Training schools should have had plenty of time to come up to speed with the new requirements.

have to be listed in the TPR. These schools certify that they comply with new ELDT standards. Training at nonregistered entities will be rejected by licensing agencies. Schools that falsely claim they are using updated curriculum

Information can be found on the Federal Motor Carrier Safety Administration’s (FMCSA) ELDT webpage and from the Commercial Vehicle Training Association. The new regulations are not retroactive, so if a driver completed their training requirements and was issued a commercial driver’s license (CDL) or a commercial learner’s permit (CLP) before the deadline, they are not responsible for the new requirements. Training requirements have changed in five areas: Curriculum Entry-level drivers are responsible for mastering a new prescribed program of theory and behind-the-wheel lessons before taking the CDL skills test provided by a school listed on the FMCSA’s Training Provider Registry (TPR). Registration in the TPR Driver training programs will now

could face federal prosecution. Use of qualified instructors Instructors should hold an appropriate

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CDL and have at least two years of commercial driving experience or two years of experience as a behind-thewheel instructor. ELDT does not mandate a certain number of hours behind-thewheel, giving the instructor the decision on student proficiency. Use of proper equipment and facilities A training school must deploy trucks which comply with federal and state safety requirements. They must also have trucks in the same class as the driver intends to operate when they are employed. School classrooms and training yards must also be up to government requirements. Records Training documents must be held in a database for at least three years. This includes driver-trainee documentation, self-certifications of compliance and copy of CLP. Instructor qualification documents should also be kept along with a copy of the registration submitted to the TPR. Finally, lesson plans for theory and behind-the-wheel instruction.

March & April 2022

43


INDUSTRY NEWS

New infrastructure grant applications due in April;

House gets to work on supply chain solutions

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merican communities deserve a RAISE when it comes to expensive projects that involve the movement of freight and passengers. The U.S. Department of Transportation (DOT) is now taking applications for a $1.5 billion pool of money which is labeled Rebuilding American Infrastructure with Sustainability and Equity (RAISE). The deadline for applications is April 14 with winners announced no later than August. RAISE grants were previously known as TIGER (Transportation Generating Economic Recovery) grants. In its Notice of Funding Opportunity, DOT said, “Funds for the FY 2022 RAISE grant program are to be awarded on a competitive basis for surface transportation infrastructure projects that will have a significant local or regional impact.” DOT Secretary Pete Buttigieg said, “The RAISE program helps communities large and small fix and modernize their infrastructure. This year, thanks to the 44

March & April 2022

president’s bipartisan infrastructure law, we can support more projects than ever, and help make our transportation system safer, more accessible and more sustainable for people across the country.” RAISE applications will be “rigorously reviewed” and “evaluated on the criteria of mobility and community connectivity,” according to DOT. “The department will assess projects for universal design and accessibility for travelers, as well as consider how proposals increase mobility for freight and supply chain efficiency.” Meanwhile, Congress is back at work trying to pass President Joe Biden’s supply chain relief measure and other parts of the president’s Build Back Better plan. New legislation in the House of Representatives would authorize $45 billion in grants and loans that would help solve supply chain problems if passed. The America COMPETES Act would not only assist in increased

semiconductor manufacturing in the U.S. but would also establish a federal post in charge of monitoring the supply chain.

“House Democrats will not sit back and let China and other competitors out-research, out-innovate and outbuild us in the 21st century, which is why we are putting forward the America COMPETES Act of 2022,” said House Majority Leader Steny Hoyer (D-Maryland.). “This bill will help secure our supply chains, ensure the microchips and semiconductors that have become vital in an increasingly digital world are made here in America, promote the advanced research to fuel an entrepreneurial spirit that is the envy of the world, and expand career apprenticeships to prepare our workers for jobs they will create.” www.punjabitruckingusa.com


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