Commerce Express Weekly Road Map:
February 6th, 2024
Keeping you informed on the latest news/insights in our industry.
Trucking —
- As of February 5th, the national average price of diesel is $3.899.
- Seeing a 3.2 cent increase, compared to the week prior.
- FMCSA rulemaking on truck speed limiters is delayed again, set to be published in May.
- In Q3 of 2023, parts and labor costs rose 1.9% – per a report by ATA Technology & Maintenance Council and Decisiv Inc.
- On a year-over-year basis, part costs were up 0.9% and labor costs increased by 4.9%, with a combined increase of 2.5%.
Rail —
- Norfolk Southern will stop domestic/international intermodal service to Birmingham, Alabama and New Orleans on February 19th, due to low volumes transiting through cities – per the JOC.
- NS also plans to re-route traffic between Allentown, PA; Memphis, Kansas City, and St. Louis, and between Elizabeth, New Jersey; and Toledo, Ohio.
- BNSF announces nearly $4 billion in their 2024 capital investment plan.
- Some of the maintenance projects include: replacing and upgrading rail; track infrastructure; and maintaining its rolling stock, per Railway Age.
FMCSA Proposing More Flexibility for CDL Applicants
The Federal Motor Carrier Safety Administration has announced a new proposed rulemaking.
Some of the revisions included in the publication would propose easing current CDL testing regulations by:
- Allow commercial learner’s permit (CLP) holders who have passed the CDL skills test to operate a trucking without having a CDL holder in the passenger seat. (ie. Would allow CLP holders who have passed the CDL skills test to operate a CMV – for any reason – as long as a CDL holder is physically present in the vehicle).
- Remove the requirement that an applicant must have obtained training in the testing state, in order to take the CDL skills test in that state.
- Eliminate the requirement that an applicant wait at least 14 days after being issued a CLP to take the CDL skills test.
Another major proposed rulemaking would be in relation to third-party testers and examiners. The FMCSA proposes an additional requirement that third-party testers or examiners administer the knowledge test only by electronic means.
Truckers in Mexico Plan to Strike Against Cargo Theft
The planned Monday (February 5th) strike slated to begin around 7am, according to Freightwaves, and is in an effort to protest the increase of cargo theft and violence against truckers, or those transporting freight, along the roads in Mexico.
There could potentially be thousands of truckers, that represent various trucking industry organizations, to show up during this nationwide strike – though it is unconfirmed how many actually will show up.
Those affiliated with this strike say they want stricter penalties on cargo thieves, more patrols out on roads that have higher chances of theft, and more support for the families of truckers who may (or have) been hurt or killed by cargo thieves.
Back in August of last year, around 300,000 truckers were planning on participating in a strike and protest over labor concerns, as well as concerns over the increase in cargo theft. Read more about this here.
Commerce Blog
According to the bill, the new requirement takes effect on “the first day of the sixth month next following the date of enactment”. While an exact date was not confirmed by state officials, this language implies the minimum insurance requirement of $1.5 million will come into play July 1.
Commercial vehicles in excess of 26,000 pounds (Class 8 heavy-duty trucks) will be subject to this requirement.
Norfolk Southern Releases 12-Month Progress Report on Ohio Derailment
February 3rd, 2024 marked the one year anniversary of the train derailment in East Palestine, Ohio. Now, Norfolk Southern has released a report on their progress in the past 12 months.
“We’re now focused on our long term initiatives to address health concerns, protect home values, and safeguard area drinking water. [and the economic development of the community],” NS said in a statement.
NS has committed more than $103 million to East Palestine, Ohio and the surrounding areas. NS has also:
- Provided $500,000 in a grant for economic development
- Broke ground on the First Responder Training Center in East Palestine, which will be used as a regional asset
- Completed the initial intensive phase of environmental remediation and announced the next phase of their community assistance program
For more details you can read the progress report, here.
Total Rail Traffic for the Week Ending January 27th, 2024:
- For the week ending on January 27th, total rail traffic was 467,222 carloads and intermodal units – up slightly at 0.7 percent from the same time last year.
- U.S. weekly intermodal volume was 259,091 carloads and trailers – up 10.1 percent, per AAR data.
- Petroleum and petroleum products plus motor vehicles and parts saw increases from this time last year. Coal, non-metallic minerals, and grain all posted decreases.
- For the first four weeks of this year, North American rail volume was 2,431,427 carloads and intermodal units – down 4.2 percent.
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