In August 2022, we expect to follow a significant transportation update. We saw FMCSA take on a request to allow hair testing for carriers. Shipping trends are beginning to moderate with shifts in how consumers shop as the fourth quarter begins. Also, the Inflation Reduction Act will offer an incentive to increase Electric Truck adoption, and The United States will work with supply chain firms to alleviate the port congestion. All while celebrating National Truck Driver Appreciation Week next month.
Check out July’s trending transportation update on the shipping industry if you missed it.
FMCSA Takes on Request to Allow Hair Tests into Drug Clearinghouse
Trucking companies are pushing to allow hair testing for drugs to determine to see if a person is fit to drive. The trucking Alliance carriers have long contended that hair testing is significantly more accurate in determining if a person is a habitual drug user.
“My clients have knowledge of hundreds of thousands of positive drug tests that they’re not able to share under the current system, and those drivers are all out on the road right now,” according to an attorney representing the Trucking Alliance group.
A recent study has found that FMXSA’s clearinghouse may be underreporting the use of harder drugs by truck divers because of the exclusion of hair testing. Initially, FMCSA felt that because of their lack of jurisdiction publishing the Trucking Alliance’s request “would be misleading to the agency’s stakeholders and other interested parties.”
Check out more about the request to allow drug hair tests.
Freight Demand is Moderating, Heading Toward the Fourth Quarter
Freight demand is beginning to flatten as the peak shipping season is fast approaching. Due to the pandemic changing shopping habits, shipping was at an all-time high to meet people’s shopping needs at home. Since then, consumer shopping habits have shifted from goods to transport to services.
“We’ve seen a weakening due to the shift in consumption into services instead of goods,” according to Avery Vice, a Vice President at FTR Transportation Intelligence.
Because of the increase in shipping due to the pandemic, the rates and shipments were at an all-time high. The markets are seeming to slow and flatten out. According to Bob Biesterfield, chief executive of C.H. Robinson Worldwide Inc., the slowing growth may suggest the market is returning to normal rather than retrenching after two years of upheaval.
Check out more about how freight demand is moderating.
Alleviating Port Congestion with FLOW
Earlier this month, the United States Transportation Department (USDOT) announced a project they have been working on all summer. According to the White House, their goal was to create a “proof-of-concept freight information exchange.”
This project is called the Freight Logistics Optimization Works (FLOW).
FLOW will work with shippers, truckers, retailers, wholesalers, and ports to create helpful digital tools. They will provide supply chain companies with additional details on the note or reign’s condition.
This project will be the first to share this kind of information. It will also help move all products more quickly and less expensive.
Check out more about the United States alleviating port congestion.
Increasing Electric Truck Adoption: Transportation Update
On August 7, 2022, the Inflation Reduction Act was signed and will activate in 2023. The purpose of the Inflation Reduction Act is to help businesses convert to electrical trucks by the federal legislation offering an incentive to make their goal come true.
Vice President and a council member for American Trucking Associations, Glen Kedzie, said that this bill “…will assist those companies seeking the financial means to do so.”
Starting early next year, these are the following items that will be part of the signed bill:
- Any business purchasing a new medium and heavy electric truck will receive a tax credit of up to $40,000. The bill will stream billions of dollars into decreasing greenhouse gas emissions nationwide.
- To be a qualified investment energy project. This bill is a 30% maximum tax credit. It includes clean vehicles, batteries, Electric Vehicles (EV) charging, and infrastructure renewable fuels.
- For energy and climate-related programs, the Inflation Reduction Act will provide a rough incentive of $369,000,000.
Read more about the Inflation Reduction Act.
National Truck Driver Appreciation Week: Transportation Update
Every year in September, Truck Drivers get a week of appreciation for delivering the goods and resources that customers need daily.
The American people plan to show appreciation towards our professional truck drivers in many ways throughout the United States. Some examples of their appreciation are children passing out lunches to truck drivers and initiatives to display “I Heart Truck” Signs across the United States Highways.
We wouldn’t be where we are today if it wasn’t for the 3.6 million men and women who track our deliveries safely and securely. If you know a truck driver, make sure you take the time to thank them for everything they have done for us.
The National Truck Driver Appreciation Week 2022 is from Sunday, September 11, through Saturday, September 17.
Learn more about Celebrating this year’s America’s Truck Drivers.