EPA Approves CA Particle Pollution Regulations

 The U.S. EPA has approved plans to reduce particle pollution in the San Joaquin Valley and along the Southern California coast. Originally outlined in a California Interstate Transport State Implementation Plan (SIP), these new regulations will require the state to reduce particle pollution to levels described in the SIP by 2015.

The EPA’s decision is largely a response to a California Air Resources Board study attributing an annual 9,200 premature deaths statewide to microscopic particles caused by diesel emissions. These particles are small enough to travel deep into the lungs when inhaled, and they can aggravate chronic conditions such as asthma and emphysema.

New emissions requirements will affect mobile diesel equipment used in a variety of industries, including trucking, shipping, and constructions. Operations that travel in the San Joaquin Valley or in Southern California can expect aggressive state regulatory measures in the near future.

For more information, visit the U.S. EPA’s website at:

http://www.epa.gov/region9/air/actions/ca.html

Driver Churn Reaches 79% According to ATA

The American Trucking Association (ATA) reported yesterday that the turnover rate for on-road drivers rose to an astonishing 79% for the second quarter. According to the ATA, this marks the third straight quarter of churn increase.

This means that, even in a today’s economic landscape, fleets are competing over a shrinking number of qualified drivers. If turnover rate remains high, driver shortages will become an even larger problem as the economy recovers. “The slowdown of the economic recovery has affected the turnover rate, but if the economy continues to improve we’ll see further tightening in the driver market and a renewed risk of a severe driver shortage,” explained Bob Costello, ATA chief economist in an ATA press release.

To read more on increasing driver churn rates, visit:

http://www.truckline.com/pages/article.aspx?id=937%2F%7b8E1C7279-ED27-4C03-B189-CEEEE26BBB12%7d

Crude Oil Prices Up 5% in Response to Europe's Plans for Debt Management

An optimistic outlook on the ability of European leaders to contain the European debt crisis is responsible for a significant surge in crude oil prices today. Greece winning the release of bailout loans from the International Monetary Fund and the European Union, allowing the country to avoid its impending default, is largely responsible for the investor confidence that caused crude oil to jump to $84.45 a barrel in New York. This 5% increase is the largest gain since May 9 according to Bloomberg Businessweek.

Crude oil prices have reached startling lows this year, and today’s increase indicates hopes that the financial landscape is improving and that energy demand will rise with the economy; however, economists warn that any failures on the part of European leaders to manage their debt as promised could again cause crude oil prices to plummet.

Natural Gas Could Become an Economically Viable Alternative to Diesel for Commercial Fleets

Due to limitations in infrastructure and high premiums for natural gas engines, the idea of integrating natural gas vehicles (NGVs) into commercial truck fleets was originally met with skepticism by many. In today’s economic climate, however, it seems that the skyrocketing demand for cheaper fuel sources is pushing the development of viable alternatives to diesel vehicles, and economically advantageous NGVs are appearing in the marketplace, particularly for regional and refuse applications.

In the past, resistance to NGVs in commercial fleets has been the result of high costs for natural gas engine production and a lack of filling stations that are equipped to supply the fuel to run those engines. With the premiums for spark-ignited compressed natural gas (CNG) and liquefied natural gas (LNG) technology diminishing—and the price gap between natural gas and diesel widening—many NGVs are now financially viable for a number of fleets.

Because one of the major drawbacks to compressed natural gas is its relatively low energy density (approximately 25% that of diesel fuel), attempts to integrate CNS vehicles into long haul operations is not feasible; however, for regional fleets with trucks that return to a single location daily, the cost savings associated with using natural gas as fuel can more than make up for an NGV’s inefficiency. For refuse operations that convert landfill gas into fuel, cost savings can be dramatically increased.

While liquefied natural gas has a greater energy density than CNG (approximately 40% that of diesel), the lack of filling stations that dispense LNG still make the fuel an unacceptable alterative to diesel for long hauls. However, efforts are underway to develop LNG infrastructure; Shell is currently working to boost LNG production and distribution in North America.

To learn more, read FleetOwner’s article “Economics Driving Natural Gas Truck Market” at http://fleetowner.com/green/archive/economics-natural-gas-truck-market-0908/.

Idealease Safety Bulletin: Drivers with Compensated Outside Work Can Affect Your Compliance with FMCSA Regulations and Liability Exposure

Do any of your drivers have a part-time job outside of your company? If you don’t know, you should find out. Motor carriers that unwittingly employ drivers that receive compensation from other commercial vehicle outfits can also be inadvertently violating hours of service regulations. Too many motor carriers only become aware of this dangerous situation when an onsite compliance review or accident occurs, and, by that time, the financial repercussions can be significant.

Any compensated commercial vehicle operation is considered in a driver’s hours of service by FMCSA officials, regardless of whether those hours are logged with one motor carrier or spread between two or more carriers. This means that fleet owners and managers who unknowingly employ drivers with other jobs are still liable for hours of service violations during compliance reviews, which can result in fines. Moreover, motor carriers will be held liable for any accidents that occur involving their vehicles under the operation of drivers that are violating hours of service regulations.

To avoid fines and minimize risk of liability, motor carriers should, as a term of employment, ask their drivers to sign a statement that they will report compensated hours logged with outside carriers in their hours-of-service documentation. These signed statements should be retained in the driver’s qualification file.

To read more, visit:

http://www.idealease.com/safetycompliance/04_29_2011.pdf

Driver Shortage Limiting Hauling Capacity, Potential Growth

In its Q3 2011 Fleet Sentiment Report, CK Commercial Vehicle Research—an organization that regularly polls a group of small, medium, and large for-hire, private, and government fleet operators to determine their purchasing plans, as well as the overall condition of their businesses—released figures indicating that 40 percent of fleets reporting to the organization are experiencing a driver shortage. Additionally, 25 percent of the polled fleets indicated that they believe that this shortage will have a negative impact on future growth.

Of those fleets that reported a driver shortage, 75 percent have an immediate need for drivers to fill vacant seats, 63 percent reported an inability to add capacity, and 42 percent have changed the way that they deploy their fleets (such as reducing their number of long hauls and focusing instead on regional and local freight opportunities).

Regarding the shortage, CKCVR’s founder, Chris Kemmer, remarked, “Freight demand is good among the majority of fleets that report to us, but some could definitely haul more if they could find good drivers. Even for those that have a full complement of drivers now, there is concern that this scarce resource will likely impact their future growth potential.”

The Q3 2011 Fleet Sentiment Buying Index, which measures of the number of motor carriers planning to add power units and trailers to their fleets within the next three months, rose to 104.3. This increase is primarily due to a large number of fleets planning trailer orders. The FSR Buying Index Table can be accessed at http://www.ckcvr.com/.

ATA Trucking Index Shows a Rise in Tonnage Hauled

According to the American Trucking Association (ATA), in the first half of 2011, the trucking industry experienced significant growth over the same six month period in 2010. This is evident in the ATA Truck Tonnage Index, which is a factor of the monthly tonnage hauled by motor carriers that are ATA members.

The net growth is largely thanks to a significant increase in the Index in June 2011 over June 2010. The 6.8% jump made June the strongest month for growth since January.

While an increase in the ATA Truck Tonnage Index is good news for the industry, the tonnage hauled for the second half of 2011 will depend largely on the overall strength of the economy. If sectors such as manufacturing continue to increase, then the tonnage hauled by motor carriers is expected to do the same.

For more information, visit http://www.truckline.com/pages/article.aspx?id=914%2F{8E1C7279-ED27-4C03-B189-CEEEE26BBB12}.