Punjabi Trucking 360 .............................. 07

SCOTUS Refusal on AB5 Brings Uncertainty to Trucking Industry

In 2020, ride sharing apps Uber and Lyfft, as well as food delivery services such as DoorDash, won their battle against AB5 through the direct referendum process in California. With a whopping 59% of the vote, Prop. 22 passed, allowing these companies to continue with their business model and not hire their drivers as regular employees. AB5 uses the ABC test, codified by the California Supreme Court in the Dynamex decision, in determining whether a worker can be considered a regular employee, due minimum wage protections and all benefits, or an independent contractor. The U.S. Ninth Circuit denied a petition from the California Trucking Association (CTA) in its attempt to make truck drivers exempt from AB5. Earlier this year, the U.S. Supreme Court (SCOTUS) refused to hear CTA’s appeal. As other states look to pass similar laws—Massachusetts is a prime example—legal experts believe SCOTUS will revisit the same issues involved in AB5. Lawyers against an AB5 type ruling point to the Federal Aviation Administration Authorization Act which says that individual states cannot interfere with interstate trucking by setting the prices, routes, or services of any motor carrier. In California, about 70,000 truck drivers are considered independent contractors. Enforcement of AB5 would mean that most of these drivers, who cannot meet the ABC test, must be classified as employees by the carriers who hire them on a regular basis. In many instances, including a case involving a driver working for Schneider National in Wisconsin, it is in the best interests of a driver to be classified as a regular employee who will then gain wage protections and be eligible for full benefits. However, in response to the refusal of SCOTUS to hear CTA’s appeal, nearly 1,000 drivers blockaded the Port of Oakland from incoming or outgoing traffic, further snarling that port’s supply chain problems. These drivers were protesting AB5 as it is set to go into effect. Analysts say that many owner-operators fear being classified as employees because they think they won’t earn as much money and won’t be able to take time off. Likewise, trucking company owners fear the law because of what it means for their business models. One thing seems certain, if SCOTUS continues to punt on this issue, chaos will reign in the U.S. trucking industry.

International Introduces Its ‘Last Combustion Engine’ With S13

Lisle, Illinois-based Navistar’s subsidiary, International Trucks, recently introduced its brand new S13 Integrated Powertrain. It is the first integrated powertrain from International in several years. The new product utilizes a modular design that encourages customization. It consists of three components, engine, transmission and an aftertreatment system which were developed at the same time to allow for compatibility and integration. The 13-liter engine offers up to 515 horsepower and 1,850 lb.-ft. of torque. “We see the future as predominantly a 13-liter market because it offers the best weight to power ratio,” said Navistar Vice President of Operations Michael Grahe. Navistar will phase out its 12.4-liter A26 engine as the new powertrain comes online. Navistar’s goal is for half of its new truck sales by 2030 to be zero-emission with total decarbonization by 2040. Navistar, however, realizes that diesel will still be needed in the meantime. “The internal combustion engine will be required for many years,” said Navistar CEO Mathias Carlbaum, indicating the S13 “is the last combustion engine that we will ever develop.” The S13 emulates the 12.7-liter displacement of the Navistar Scania Super, including a low-rev, high-torque setup for fewer fuel injections and lower fuel consumption. The S13 flows all its exhaust to the turbocharger. This process makes for a more complete fuel burn and allows cleaner air to enter the combustion chamber. The lack of EGR cooling eliminates about $6,000 in potential repairs, according to Navistar Director of On-highway Marketing Darin Vehlewald. Other features of the S13 include a dual overhead cam design and cast aluminum cam cover and oil pan, 23:1 compression ratio (A26 is 20.5:1) and a compression release brake for maximum engine braking power. The compacted graphite iron block combines with a cast aluminum cam cover and oil pan which help make this the lightest 13-liter powertrain available. It’s also 30 pounds lighter than the combination of International’s A26 engine, the Eaton 12-speed Endurant and the Cummins aftertreatment system.