Trucking and COVID-19: What Happens Next?

We are at a critical time in the history of the world. The COVID-19 pandemic has raced across the globe and forced closures of entire countries. Starting in China, the virus quickly spread throughout the population of the city of Wuhan, then out into China. Then the virus arrived in Italy and the rest of the world. The result has been no less than catastrophic.

Fortunately, one of the bright spots in this crisis is the food supply. Although the U.S. food system is frequently criticized for being big and unwieldy, the crop surpluses in the United States means the country has plenty of food for the long haul, and truck drivers to haul them. Yet, big changes are already affecting the lives of millions of people across the country.

At the time of this writing both California and New York are under stay-at-home orders. All non-essential services, from nail salons to gyms, restaurants, and so much more – it has all been shut down in the nation’s two largest states. Much of the rest of the global economy has ground to a halt. Europe is undergoing an unprecedented continent-wide shut down and the U.S. government is proposing extraordinary measures.

The federal government wants to give cash payouts to individuals and families.
The tax filing deadline has been extended from April to July with no interest or penalties.
Student loan interest has been put on hold.

These are just a few examples of the measures being taken to stem the tide of this outbreak. States are taking even harder lines. The question now is, what will become of the trucking industry? As workers across the country wake up to a no-paycheck situation, will the transportation industry still be standing when all of this is over?

Guidelines from the FMCSA

We feel it is important for you to know exactly what the federal government has in mind for the trucking industry. The biggest news surrounds hours of service. On March 18, the FMCSA issued an expanded national emergency declaration to provide hours of service relief to truck drivers transporting emergency relief supplies in response to the outbreak. Whether it be food, fuel, or raw materials, those hauling these materials are exempt from regulations.

Still, questions remain around what parts of the rule remain in effect and how truck drivers should manage different situations. The FMCSA has stated that mixed loads with only a nominal qualifying amount of emergency relief will be covered. So, if you have half or more, you are good to go.

Truck drivers are also not required to take their 30-minute break if they are providing direct assistance under the emergency relief exemption, nor do the hours impact the 60/70- hour rule. Additionally:

The 34-hour restart requirement is on hold for those aiding under the emergency declaration.
Paper logbook and ELD entries are also suspended for those aiding under the declaration.
Livestock is covered as a precursor to food.
The transportation of household and medical waste is also covered.
No specific documentation is required to enforce or prove a truck driver or fleet operator is covered.
Truck drivers still must take a minimum 10-hour break after they have dropped off their emergency loads.
If at any point a truck driver feels drowsy, they must stop driving and take a break.

There have also been questions regarding how truck drivers should count these hours on their ELDs. The following specific guidelines have come straight from the FMCSA:

Use the “authorized personal use” (personal conveyance) function of the ELD to record all of the time providing direct assistance under the exemption. Use of this function will result in the time being recorded as off duty and requires an annotation.
Use the ELD in its normal mode and annotate the ELD record to indicate they were driving under the emergency relief exemption; or
Turn off the ELD, in which case the carrier would address the unassigned miles in accordance with the current regulation.

With the FMCSA updating their guidelines, the question now turns to whether trucks will even be on the roads to carry out those instructions. We have news for you: They most definitely will be.

The State of Trucking

If there could be good to come out of such a bad situation, some has. The trucking industry is more in need now than ever before. The demand for hospital equipment, groceries and, yes, toilet paper has big semis rolling and truck stops adapting. Even more, normally gridlocked areas like Los Angeles and Chicago are now seeing a smooth flow of traffic. Trucks are moving around easier than ever before.

Ask any transportation analyst worth their salt and they will tell you this outbreak is causing the biggest supply chain disruption in generations. Consider how flows of goods will need to change. Emergency medical supplies like masks, ventilators, antibacterial soap, and other disinfectant material must be shipped from manufacturers to medical centers.

Let’s think for a moment about raw materials. The plastics, metals, chemicals, and other raw materials used in the manufacturing of these products need to be brought to the plants. Grocery stores and pharmacies are still open. They still need to receive deliveries as essential services remain open. And where else can you see all this big increase? In the spot rate market.

In fact, spot rates have jumped 6.1 percent since late February. Even more, rates for 63 of the nation’s 100 most high-volume truck routes have risen since February. And nowhere does that trend seem to be letting up. Load-to-truck ratios have climbed by big margins since February. Any trucking company executive will tell you this is not normal for March. Truckers are finding long lines at distribution centers.

Trucking companies are also looking closely at how they will manage their truck drivers’ exposure to the virus. Many do not want to put onerous restrictions on their truck drivers. Although some shippers have toyed with the idea of forcing truck drivers to take a temperature check when they pick up, it hasn’t materialized across most of the country.

Fortunately, fleets are stepping up their truck cleaning efforts. Beyond that, it is important to educate your front-line operators on how to mitigate their chance of getting the virus. Distributing hand sanitizer to truck drivers is not a bad idea.

What Happens to the Truck Stop?

One place that could find life altered in this new environment is the truck stop. Truck stops are an essential feature of truck drivers’ lives. Yet, with public officials closing restaurants, bars, and other places where people gather, what happens to truck stops? Truck drivers still rely on these facilities for many of their needs while they are out on the road.

There have already been problems. The state of Pennsylvania last week shut down public and interstate and turnpike stops, which creates a huge problem for truck drivers passing through that state. After the American Trucking Associations (ATA) and Owner-Operator Independent Drivers Association (OOIDA) both complained to the state, the Pennsylvania DOT said it would reopen 13 of the 30 they closed.

Yet, truck drivers have more to worry about than the occasional rest stop being closed. TA-Petro is one of the country’s largest travel center operators and they have shut down most operations truck drivers find essential, from the driver lounges to fitness centers and buffets. Fortunately, truck drivers can still order take-out and use the showers at TA-Petro facilities.

Pilot Company, another large operator of travel stops for truck drivers and other travelers, has closed its gaming rooms in Illinois, Louisiana and Nevada. Truck drivers are also now discouraged from using refillable Pilot mugs at the truck stops.

The increase in emergency goods has created a bit of a fuel windfall for truck stop and travel center operators that sell fuel. TA-Petro has seen diesel sales climb by high single digits since the crisis began. Trucks now dominate the nation’s roads and highways as municipalities scramble to ensure supplies remain stocked.

The moral of the story is that truck drivers are needed now more than ever. During a time like this, truck drivers are the true heroes, ensuring food, supplies, and medical equipment is delivered to those who need it, when they need it.

Here at QuickTSI, we would like to wish all of you well. Please be safe and healthy as we all navigate through this crisis. We are optimistic that this too shall pass.

from Quick Transport Solutions Trucking Blog https://ift.tt/3db2w0f

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