Janet T. Mills, governor of the State of Maine, has declared – through proclamation – the current shortage of propane gas constitutes a civil emergency. This transportation exemption effective from Nov. 26 through Dec. 10 enables propane gas delivery crews to transport such gas more effectively to Maine homes and businesses.

From a Reuters article dated Nov. 22.

A strike at Canada’s biggest railroad, Canadian National Railway Co, entered its fourth day on Friday as talks continued with no signs of a deal and analysts warned that a prolonged dispute would weigh on economic growth. …

Canada’s biggest rail strike in a decade has sparked concerns that farmers and homeowners may run short of propane, although the union claims the railroad has manufactured that shortage.

The State of Maine’s proclamation is available as a PDF download at the State of Maine website and Federal Motor Carrier Safety Administration website.

 

The following press release from the American Transportation Research Institute (ATRI) was sent Nov. 4, including a review of their most recent Ops Costs report. A free copy of the full report is available at the ATRI website. (Free registration is required.)

ATRI’s Newest “Operational Costs of Trucking” Research Shows Dramatic Increases in Industry Costs

Arlington, Virginia – The American Transportation Research Institute today released the findings of its 2019 update to “An Analysis of the Operational Costs of Trucking.” Using detailed financial data provided directly by motor carriers of all sectors and fleet sizes, this “Ops Costs” research annually documents and analyzes trucking costs from 2008 through 2018. ATRI’s analysis provides industry stakeholders with an essential benchmarking tool, and government agencies with input on industry finances necessary for comprehensive transportation planning and infrastructure improvement analyses.

ATRI’s newest 2019 Ops Costs report documents the extremely robust economic environment that carriers and drivers experienced in 2018, but these same economic conditions put considerable upward pressure on nearly every line-item cost center experienced by carriers.

The average marginal cost per mile incurred by motor carriers in 2018 increased 7.7 percent to $1.82. Costs rose in every cost center except tires, with fuel costs experiencing the highest year-over-year growth of 17.7 percent. Not surprisingly, insurance costs saw the second fastest year-over-year growth at 12 percent. As a strategic response to the severe driver shortage that existed in 2018, driver wages and benefits increased 7.0 and 4.7 percent, respectively – representing 43 percent of all marginal costs in 2018.

Repair & maintenance (R&M) costs, at 17.1 cents per mile in 2018, have increased 24 percent since 2012 – a counterintuitive increase given the record sales of new trucks and trailers. From 2012 to 2018, overall motor carrier operational costs have increased more than 11.6 percent – exceeding the 10.8 percent inflation rate for that same time period.

ATRI’s 2019 report again includes an “Industry Sector in Focus” analysis for tank fleet operators.

“ATRI’s 2019 Operational Costs research highlights the extent of the cost increases our industry experienced in 2018. Savvy carriers will continue to use this cost data as a benchmarking tool, and to better educate our customers on the financial and operating pressures our industry faces,” said Jerry Sigmon, Executive Vice President of Cargo Transporters, Inc. “The new 2019 report also gives us important explanations and hints on how to better manage the cost volatility we’ve been experiencing.”

Since its original publication in 2008, ATRI has received over 16,000 requests for the Operational Costs reports.

A copy of this report is available from ATRI at TruckingResearch.org.

ATRI is the trucking industry’s 501(c)(3) not-for-profit research organization. It is engaged in critical research relating to freight transportation’s essential role in maintaining a safe, secure and efficient transportation system.

As the Massachusetts legislature picks up its pace, TAM continues to do the same on the legislative front. At the moment, TAM has been focused on its rolling stock initiative, the transportation finance discussion and the governor’s CDL reform legislation.

On the first item, TAM has begun to broaden our reach to elected officials and non-government organizations that support stronger environmental and public safety initiatives. While rolling stock has a tremendous economic development upside, we have been making a concerted effort to ensure that the initiative receives support from a wide range of interests.

With respect to transportation finance, TAM has been meeting with House and Senate leadership to share TAM’s views on the need for transportation finance and, as importantly, which funding mechanisms will provide for shared responsibility and accountability. As you may know, TAM is a participant in the Massachusetts Business Coalition for Transportation with many of the leading business organizations in the Commonwealth.

Finally, with respect the governor’s CDL reform legislation, TAM continues to await the public hearing on the new filed matter. Currently before the Joint Committee on Transportation, this legislation would have a number of positive public safety impacts, but also may cause a couple unintended consequences. TAM has been reaching out to other impacted industries and associations to ensure they know of both the benefits and potential shortcomings of this legislation.

Stay tuned for more information as the Massachusetts legislature enters the Fall rush of business.

Produced by the Massachusetts Emergency Management Agency (MEMA), the monthly newsletter helps keep the public safety community of the state informed about emergency management issues.

This edition of MEMA’s newsletter includes information on emergency preparedness month, hurricane season, the July Cape Cod tornadoes, Merrimack Valley Natural Gas Emergency anniversary, hazard mitigation grants, upcoming training classes, and more.

Most information is available on the MEMA website, and you can download the current edition (PDF) right here. You can also access past monthly reports online at the MEMA website.

On Aug. 19, Chris Johnson from the Cleveland Research Company updated their trend analysis for the transportation industry. The full report is available as a PDF [2.7 MB]

The report details trends for the global airfreight, containerized ocean traffic, rail and trucking segments. An overview of US trucking trends was provided, and includes the following information:

• Truckload tonnage growth in June rose 1.5% Y/Y, its slowest growth rate since April 2017, and continues to remain below the high-single digit growth during most of 2018. Tonnage declined M/M for the sixth month out of the last eight. While June’s growth rate was the 26th consecutive month of Y/Y growth, the 3 month moving average (3MMA) growth rate slowed to 4% (was growing 7%+ from October 2017 to June 2018). 3MMA tonnage was up 0.5% M/M.
• Spot market dry-van TL rates in July and early August were down 21% Y/Y, consistent with year-to-date trend, as the market lapped significant year-ago rate increases (rates were up 20-30% Y/Y in 1H18). After 2018 contract rates likely increased 8-11% Y/Y, our work indicates TL contract rates are likely down 0-5% Y/Y in 2019 (slowing from modest growth in early 2019), with risk to the downside as spot market rates likely remain lower Y/Y and brokers are likely offering price declines of 5-15% Y/Y (prior estimate was down 5-10%).

Cleveland Research Company (CRC) is an independent research firm headquartered in Cleveland, Ohio. The company has a reputation for exceptional ground-level intelligence across the consumer, agriculture, industrial, healthcare, retail, foodservice, and technology industries.