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What's Behind the Lowest Diesel Prices in Years?
kscarbel2 replied to kscarbel2's topic in Trucking News
U.S. diesel and gasoline prices keep dropping Fleet Owner / December 23, 2014 Average retail pump prices for both diesel and gasoline continued falling this week, according to data tracked by the Energy Information Administration (EIA), with the agency projecting annual motor fuel expenditures for U.S. households could fall to their lowest level in 11 years in 2015. The national retail pump price average for diesel fell 13.8 cents this week to $3.281 per gallon, EIA reported, which is 59.2 cents cheaper when compared to the same week in 2013. Diesel prices declined in every region of the country, the agency noted, falling the most in the Midwest by 17.9 cents to $3.294 per gallon. The second and third largest declines occurred in the Rocky Mountain region followed with a 16.6 cent decline to $3.338 per gallon, followed by the Gulf Coast with a 15.3 cent dip to $3.175 per gallon – the cheapest price for diesel in the U.S., EIA reported. The national retail pump price average for gasoline dropped 15.1 cents this week to $2.403 per gallon – marking the 88th day of continued price declines – which is 86.8 cents per gallon cheaper when compared to the same week in 2013, the agency said. Gasoline prices declined in every region of the country, dipping the most in the Rocky Mountains by 20.2 cents to $2.384 per gallon. The Midwest posted the second-largest drop in gasoline prices at 19.3 cents to $2.224 per gallon, followed by the Gulf Coast with a 15.2 cent decrease to $2.176 per gallon, which is the cheapest price for gasoline in the nation, EIA noted. Based on current fuel price trends, the agency now expects the average U.S. household will spend about $550 less on gasoline in 2015 compared with 2014 – a drop attributable to a combination of falling retail gasoline prices and more fuel-efficient cars and trucks. The EIA said household gasoline costs are forecast to average $1,962 next year – the first time such expenditures dipped below $2,000 since 2009, according to EIA's December 2014 Short-Term Energy Outlook (STEO). The agency added that the price for U.S. regular gasoline has fallen 11 weeks in a row to $2.55 per gallon as of December 15, down $1.16 per gallon from its 2014 peak in late April and the lowest price since October 2009, with gasoline prices forecast to go even lower in 2015. EIA reiterated that U.S. gasoline prices are falling largely because of lower crude oil prices – now estimated to average $68 per barrel in 2015 – which accounts for about two-thirds of the price U.S. drivers pay for a gallon of gasoline. -
Heavy Duty Trucking / December 23, 2014 Since the summer, the price of oil has plummeted 50 percent, hitting its lowest level in more than five years about a week before Christmas. Riding along has been a drop in fuel costs, with diesel falling from the high of the year at $4.021 in March to $3.419 in mid-December, according to U.S. Energy Department figures. The result has been billions of dollars in savings -- not just for the trucking industry ($350 million to $375 million annually for each one-cent decline, according to the American Trucking Associations), but also for consumers. They have seen gasoline prices fall by an even greater margin, translating into a “consumer windfall” totaling $125 billion, according to research from investment banking firm Goldman Sachs, which called the drop a “middle class tax cut.” One of the main factors behind all this is a worldwide glut of crude oil that’s expected to peak in the spring or summer of 2015, according to Tom Kloza, global head of energy analysis with the Oil Price Information Service. The glut is due in large part to Saudi Arabia and other OPEC member nations not cutting back on crude production. “One theory is the Saudis would like to do as much collateral damage [as possible] to Iran, one of their main rivals in the region, and to Russia, which is one of the big meddlers in the region," Kloza says. "There [also] is the idea they maybe they want to make North American shale producers realize that finding shale oil is not necessarily a layup, and it’s certainly not a layup when prices are where they are right now.” Kloza noted increasing U.S. production of oil from shale formations is another cause for the drop in prices, and that growth is expected to continue into 2015. “We are going to get to the highest U.S. crude production since 1973 when Richard Nixon was president,” he says, though growth in the new year could be slower than it was in 2014. The third, and possibly biggest factor for these declines, has been an easing of worldwide demand for crude. This is due in part to some economies overseas throttling back, according to a U.S. Energy Department outlook issued in December, as well as some emerging economies not performing as strongly as earlier predicted, according to Kloza. Kloza expects the ride of lower prices will continue well into 2015, though it will likely bottom out in mid-January. “We’ll see prices rebound nominally in the first quarter…but generally, without question, 2015 is going to see much deeper valleys for prices and much lower peaks, so it should be a good situation for everyone who is one the end user side.” Kloza, however, said projections of actual prices into 2015, including a recent one from the U.S. Energy Department that on-highway diesel will retail for an average of $3.07 per gallon next year “is very difficult to say.” For many trucking companies the decline in fuel prices has been a welcome development, even though the fuel surcharge of their rates has declined, according to Bob Costello, chief economist at the American Trucking Associations. “It’s a win not only for the trucking companies, because they don’t recapture 100% of the fuel spent, but it’s also a win for the shippers,” he said. “It also comes at a great time because fleets are paying drivers more, which they need to because they are in high demand, therefore this kind of helps with that as well." According to Costello, the downside of lower diesel prices is trucking companies involved in oil field operations are not expected to see the kind of growth next year that they have seen over the last few years, because a lot of oil companies are slowing down the growth in fracking as a result of lower oil prices. The best thing about lower oil and fuel prices, he said, may be for the overall consumer. “There is the indirect benefit that you and I have more money in our pockets, because we are not spending as much at the gas pump and hopefully we are spending that somewhere else. And of course we know whatever we are buying, trucks are going to bring it."
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In my mind, this is the definitive Nissan Patrol. http://www.autoplusdigital.com.ar/uploads/img/patrol.jpg http://image.motortrend.com/f/blogs/1402_happy_80th_birthday_nissan/63681183/05-1961-nissan-patrol.jpg
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Financial Times / December 23, 2014 Europe’s biggest truckmakers operated a cartel over 14 years going back to 1997 that held up the progress of emissions-reducing technology, according to leaked documents seen by the Financial Times. EU officials carried out raids on several truckmakers in 2011, kicking off an anti-trust investigation that led to a charge sheet being sent last month to the main manufacturers. A “statement of objections” document states the scale and longevity of collusion alleged to have taken place between January 1997 and January 2011. It involved DAF, Daimler, Iveco, Scania, Volvo, which also owns and Renault trucks, and MAN, the whistleblower in the case. “All competitors participated directly and throughout the full duration in all the constituent elements of the cartel,” the document said. Officials had previously indicated only that the alleged cartel was “very old”, involved a “large number” of companies and peaked about a decade ago. The document also states the truckmakers “agreed the timing and price increase levels for the introduction of new emission technologies” to comply with tougher Euro 3 rules on nitrogen oxide and other emissions in 2000. EU regulations are essential to driving down these pollutants, which can cause respiratory problems. Each wave of standards brings in advanced technology that allows truckmakers to command a higher price for their vehicles and, according to some in the industry, maintain a high barrier of entry. The six truckmakers have a market share of close to 100 percent and there are no US or Asian rivals present in Europe. Details of the alleged cartel surfaced after truckmakers won a partial delay on new weight and dimension measures for heavy trucks, arguing that long lead times needed to be taken into account. Manufacturers have set aside cash to deal with any potential fines, which could be up to 10 percent of annual sales. Daimler last week said that, having reviewed the statement of objections, it would increase an undisclosed provision made in 2011 to €600m (US$731 million). Volvo last month said it had made a provision of SKr3.7bn (US$473 million) related to the antitrust inquiry. “Settlements will be extremely difficult here,” said Margrethe Vestager, Europe’s new competition commissioner, speaking at a press conference to announce the “statement of objections” last month. “If the case is proven, we have a very serious infringement of our antitrust rules.” The truckmakers said they were unable to comment on the investigation, which is still under way. Emissions and fuel economy are sensitive issues in road transport. While truckmakers have been meeting regulations on harmful pollutants, critics say they have made limited advances in fuel economy and carbon dioxide emissions, even though this represents a third of the cost consideration for haulers. According to a European Commission strategy document published in May, CO2 emissions from heavy goods trucks rose by about 36 percent between 1990 and 2010. This was a result of greater freight demand and what the commission called “stable” fuel consumption, despite the potential for a 35 percent improvement in fuel performance using the latest technologies. The six truckmakers contacted by the Financial Times rejected those claims, saying that advances had been made even while reducing nitrogen oxides and other pollutants, which requires special filters and exhaust recovery systems that sap fuel economy. Acea, the European automotive manufacturers’ trade body, said: “European commercial vehicle manufacturers are world leaders in fuel efficiency, with fuel consumption down 60 percent since 1965.” It added that truckmakers were on track to further reduce fuel consumption from new vehicles by 20 percent between 2005 and 2020. Heavy trucks are tested for emissions compliance. But unlike passenger cars, trucks are not tested for their fuel economy performance, nor is their efficiency advertised in the same way. The industry is developing a simulation tool, known as Vecto, that uses real-world emissions data and allows customers to compare models.
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First of all, allow me to take a moment to warmly wish all a very Merry Christmas and a happy New Year. The one to watch in the medium truck segment is Daimler. With a market share around 36% for heavy trucks, and a fast-growing medium duty market share of 27%, Daimler has the determination and endless financial resources to ensure they are as successful with medium trucks in the US market as they are in the heavy segment. Navistar's Terrastar is certainly no success story, but Durastar (4000 series) sales have held up well. With all the issues that GM has on its plate right now, compounded by a CEO (Mary Barra) that is in no way qualified for her position, I can't imagine GM getting back into medium-duty. With slim profit margins, you can only make money in medium-duty if you are extremely efficient (Daimler is, while GM and Navistar are not). If GM re-entered medium-duty, the writing is on the wall that the company would only have a small market share, prohibiting meaningful profitability..........thus, what would be the point of such an exercise by cash-strapped Government Motors? No doubt the termination of F-650/750 production and failure of the CAT truck project are felt at Navistar's Escobedo, Mexico plant. But frankly that doesn't concern me, because the only Navistar product I would consider purchasing are trucks produced in Springfield, Ohio by American workers. I've no interest in supporting Mexico's industrial base. Ford only has the fleet market share that they do in medium-duty because they are accepting low margins. Ford's not making any money in it. They're giving them away to remain active in the segment. And they've no way other then price with which to compete against arguably superior competition. And now, consider the deletion of Cummins engines and Allison transmissions from the Ford medium-duty trucks...........that's going to hurt them (the decision is certainly supporting Cummins ISB-powered Durastar sales).
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EU truck safety and efficiency law faces delay until 2022 Economic Times / December 11, 2014 A European Union law agreed on Wednesday to make trucks safer and more aerodynamic, aimed at cutting fuel bills, emissions and saving lives, will be delayed by around eight years after the industry pushed for more time to develop new vehicles. The law will allow trucks to have longer, more aerodynamic noses similar to the shape of high-speed trains from around 2022. Until now, new designs had been hampered by limits on the weight and size of vehicles. Member states, led by France and Sweden, had originally pushed for a five-year moratorium on the new designs, which would have delayed their introduction to around 2024, because of the need to develop new safety requirements first. Truckmakers such as Sweden's Volvo and France's Renault had said the introduction of new cab sizes should be delayed to create a level playing field for all, pointing to the long life cycle of trucks. However, the European Commission, which proposed the law, and the European Parliament wanted to allow the new cab designs as soon as possible, arguing that trucks' brick-shaped cabs hamper drivers' visibility, leading to cyclist and pedestrian deaths. The compromise reached on Wednesday includes a three-year delay, although the Commission will first have to develop new safety requirements for lorries. EU lawmakers and environmental campaigners said the entire process would delay the introduction of the new lorries, originally expected around 2017, to about 2022. "This deal signals the end of dangerous and inefficient brick-shaped trucks," said William Todts of environmental campaign group Transport & Environment. "But the absurd and unprecedented decision to impose a ban on new lorry designs until 2022 casts a dark shadow over the agreement." Volvo, for instance, began rolling out new designs in 2012, so it could be at a disadvantage if competitors introduce more up-to-date models in the near future. Additionally, the new cab designs will no longer be mandatory, as the Parliament had demanded, but merely voluntary. Transport & Environment said that delays would be at the expense of the economy because fuel bills would be higher, as well as road safety and the environment. Lorries are twice as deadly as cars, accounting for 15 percent of all fatal collisions in Europe, according to the European Transport Safety Council. The European Automobile Manufacturers' Association (ACEA), however, said that an industry with long product cycles needed 10 years to develop the best designs. Wednesday's compromise needs to be formally approved by member states on Friday.
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While Ford's current activities in Russia have no connection with that of the past (a short period from 1926 to 1938), the company has a solid heavy truck opportunity there. Russia has superb truck engineers, however the truckmakers have no funding. With imported new European brands are too expensive for many operators, Russia has been a popular destination for second-hand European trucks. Competitively powered by Iveco Cursor 11 and 13 liter engines, the Cargo should be able to price itself between the new and used European trucks. ________________________________________________ Henry Ford had made a name for himself in Russia with the introduction of the Fordson tractor there. Introduced in 1926, the Fordson tractor helped to quickly modernize the Soviet Union’s agricultural methods. Although Ford had refused an offer to build a Fordson tractor plant in the Soviet Union, he did agree in 1929 to form a joint venture car and light truck plant. The Soviet Union agreed to purchase $13 million worth of cars and trucks (72,000 CKD kits) and spare parts, while Ford agreed to guide the construction of a plant (in the city of Nizhny Novgorod to Moscow’s east) with a 100,000 unit annual production capacity, and provide technical assistance until 1938. The joint venture was called NAZ (Nizhegorodsky Avtomobilny Zavod) and utilized the Ford logo. Production of Ford Model A cars and Model AA light trucks began in 1932. In 1933, the joint venture’s name changed to GAZ (Gorkovsky Avtomobilny Zavod). A Model AAA 6x4 truck was produced from 1934.
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I assume that Ford gave Daimler exclusive usage rights to the (last generation) Cargo cab in the US market for 10 years. Ford sold Daimler the cabs (supplied by Ford Brazil). But fast forwarding to the present, we have an all-new Cargo COE cab that Ford could sell in the US today.
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Financial Times / December 11, 2014 European Union governments have agreed new rules that could put an end to the cab-over-engine (COE) trucks that campaign groups say are environmentally inefficient and endanger other road users. But fierce industry lobbying put back implementation of the measures by five years, including a three-year moratorium, despite the rules being voluntary. Current regulations on truck weights and dimensions restrict the length of heavy goods vehicles. Thus to maximize cargo space, truckmakers utilize COE cab designs. Critics claim that this creates dangerous blind spots and blunt front ends, increasing the risk of fatal accidents with pedestrians and cyclists. Trucks are twice as deadly as other road-going vehicles in countries such as the UK, France and Sweden, according to the European Transport Safety Council, and heavy trucks accounted for 14 percent of all fatal collisions in Europe in 2011. The new rules will allow truck cabs to be 80cm to 90cm longer (31.5 to 35.4 inches longer), bringing European trucks closer to their US counterparts, which are distinguished by their extended bonnets and tend to be about 1.5m longer than heavy tractor-trailer combinations in the EU. This could lead to curved, more streamlined noses, which campaigners say could improve pedestrian protection, crash performance and increase the driver’s field of view by 50 percent. The new rules will also allow for aerodynamic flaps at the rear of the vehicle, which are commonly used in the US and guide the airflow around the vehicle. While heavy trucks make up only 3 percent of vehicles in Europe, they account for 25 percent of road transport carbon dioxide emissions, according to Transport & Environment, a think-tank. “This is a big thing that’s going to happen to trucks, it’s a fundamental change to an industry that’s fairly conservative,” said William Todts, senior policy officer at T&E. Brussels had initially planned to phase in the rules from 2017. But concerted opposition from France and Sweden brought about a delay to 2022. The two countries, home to truckmakers Renault and Volvo which recently launched new model ranges, had been seeking to delay the rules until 2025. Member states will meet later this month to formally approve the new rules but finalization of the legislation will not come until 2019, followed by a three-year moratorium. Campaign groups said it was highly unusual to have such a moratorium on voluntary regulations. Acea, the European automotive manufacturers’ trade body, said that while the industry was “fully committed to improving fuel efficiency and safety”, the three-year lead time — from finalizing the rules in 2019 to implementation in 2022 — would be “challenging” for truckmakers to meet. Erik Jonnaert, Acea secretary-general, said: “This industry requires a predictable and supportive regulatory framework. Truck manufacturers may have to make significant changes to their vehicles after this legislation passes. Trucks are not developed overnight, but instead are the product of long-term research and development.” The rules on weights and dimensions were initially implemented to protect highways from excessively large tractor-trailer combinations.
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Bloomberg / December 12, 2014 As shippers of everything from toys to tools enjoy as much as $24 billion in savings from lower diesel surcharges next year, trucking companies see an opening to raise freight rates at a pace not seen in about a decade. The American Trucking Associations calculates that each 1-cent drop spurs industrywide annual fuel savings of $350 million. Diesel last week averaged $2.15 a gallon, down from $2.85 in the last 12 months. About 85 percent of the savings goes to shippers through lower fuel surcharges. That may soften shippers’ resistance to higher rates that trucking companies say they need to cover rising expenses for salaries, health care and new regulations that limit driving hours. Unlike previous times when fuel prices fell, stronger economic growth is increasing demand for cargo space while drivers are scarce, which spurs higher rates. “If the overall cost for the shipper, which is your rate plus your fuel charge, is going to go down, then they may be a little bit more willing to pay that increase,” according to Eric Fuller, chief operating officer for Chattanooga, Tennessee-based U.S. Xpress Enterprises Inc. “It definitely won’t hurt our ability to get rate increases,” Fuller, whose company operates about 7,000 trucks, said in a Dec. 8 phone interview. The decline in diesel adds earning power to an industry bolstered by cargo demand that’s exceeding capacity. A Bloomberg index of so-called truckload operators -- those that fill trailers with goods just from one customer -- rose 41 percent this year, outpacing a 10 percent gain for the Standard & Poor’s 500 Index. The gauge, which has nine carriers including Swift Transportation, rose 2 percent today, the most since Oct. 28. Large truckers boosted freight prices on average between 3 and 4 percent this year, and they may rise 5 to 6 percent in 2015, Jason Seidl, an analyst with Cowen & Co. in New York, estimated in a Dec. 4 interview. “In this environment, the economy is decent and fuel is falling, which is the perfect combination for a truckload guy,” Seidl said. The fuel was last below yesterday’s closing price of $204.64 a gallon in 2010 when the U.S. was still recovering from the recession. Landstar Systems, a Jacksonville, Florida-based long-haul carrier, this month declared a special $1 a share dividend, citing a “strong balance sheet and financial strength.” A surge of U.S. crude production from shale formations in states such as North Dakota and Texas has caused the price of West Texas Intermediate crude to drop to as low as $59.95 today, the cheapest since July 2009. The U.S. economy expanded 3.9 percent on an annualized basis in the third quarter, while freight expenditures rose 5 percent in November from a year earlier, according to Cass Information Systems Inc. data compiled by Bloomberg. Truckers have added fuel surcharges to contracts since the 1990s to protect against rising expenses. Under most agreements, shippers pay the difference between the current price and $1.05 a gallon, Fuller of U.S. Xpress said. The surcharges don’t cover fuel for hauling empty trailers and idling trucks, which is about 15 percent of the diesel expense. Fuel is the largest expense for long-haul trucking companies before the surcharges, followed closely by labor, said Bob Costello, chief economist for the trucking association. Companies are combating a driver shortage with annual pay increases that could be close to 10 percent over the next few years, Costello said. “We’re just in the beginning stages of a prolonged run for higher driver wages,” he said in a Dec. 3 telephone interview. Independent truckload companies make up about 38 percent of the $680 billion industry and private fleets account for 37 percent, according to a Stifel Financial Corp. report in September. The drop in fuel surcharges is a windfall for shippers, who have been grappling with higher freight rates and difficulty obtaining transport services, said Bruce Carlton, president of the National Industrial Transportation League, a shippers’ advocacy group based in Arlington, Virginia. The impact is more immediate for trucks, which adjust the charges weekly, than for railroads, which take up to 60 days to reset surcharges. “Everyone is smiling,” Carlton said in a Dec. 3 telephone interview. “It’s been a very long time since any of us have experienced such a significant drop in fuel prices.”
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Bloomberg / December 11, 2014 http://www.bloomberg.com/video/bill-ford-on-detroit-techstars-partnerhip-auto-mergers-RGKQJKhORPanRWKDQzycNQ.html
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Original Mack fuel cap
kscarbel2 replied to xdudebrahx's topic in Antique and Classic Mack Trucks General Discussion
The brass 16MF219A Mack fuel tank cap has not been available for some time. -
Daily News / December 11, 2014 Turkey-based heavy truckmaker Ford Otosan signed a deal on December 9 with Kaliningrad-based Avtotor Holding for the production of heavy commercial trucks in Russia. Production is set to begin at the end of December. Ford Otosan is a joint venture between the Ford Motor Company and Koc Holding. Ford Otosan is targeting Russian state-run companies, such as Gazprom, which currently operate Russian trucks. By producing Ford Cargo heavy trucks in Russia, Ford Otosan can avoid the 10 percent tariff placed on imported trucks by Russian authorities. “The Ford Trucks brand will move one step further with this deal. We have invested in Russia, the largest truck market in Europe, to increase our competitiveness and to manufacture trucks in Kaliningrad,” said Ford Otosan CEO Haydar Yenigün. Initially, Ford-Otosan will assembly heavy trucks from SKD (semi-knocked down) kits, and then transition to CKD (completely knocked down) production using a growing amount of locally-sourced parts as soon suitable suppliers can be identified. With Kaliningrad designated as a free trade zone, Ford Otosan will also be able to enter two new country markets, Kazakhstan and Belarus, Yenigün said. “The biggest advantage for us to have production in Russia will be to avoid the 10 percent import tax, which Russia charges for heavy commercial truck imports. Moreover, we will be able to sell heavy trucks to huge state-run companies in Russia, including Gazprom, which have to date purchased Russian brand trucks,” he said. Ford Otosan aims to sell over 7,000 units in Russia annually by 2020. Avtotor Holding, Russia’s first private vehicle manufacturer, has a 20 year history, said Avtotor CEO Valeriy Gorbunov. Avtotor has an annual production capacity of 15,000 heavy trucks. Ford Motor Company sold its European heavy truck unit to Iveco in 1986, and U.S. market heavy truck unit to Daimler in 1996. However, Ford continued to produce trucks in Brazil and Turkey. With a Ford relationship dating back to 1928, Ford Otosan began producing Ford F-600 based conventional models in 1960, low-cab-forward D-Series in 1966, and Cargo Series commercial trucks from 1983. Under the Global Cargo Agreement between Ford and Koc Holding, Ford Otosan is responsible for Ford's international market heavy truck development, production and sales. Ford Otosan exports Ford vehicles to 106 countries around the world, including Ford heavy trucks to over 30 countries. Ford Heavy Truck (Turkey): http://www.ford.com.tr/agir-ticari-araclar Ford Heavy Truck (Russia): http://www.ford.ru/Heavys Ford-Otosan - 2013 Annual Report: http://www.fordotosan.com.tr/downloads/yatirimciiliskileri/2013_Annual%20Report_.pdf .
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Fleet Owner / December 4, 2014 A new white paper compiled by the American Transportation Research Institute (ATRI) indicates that truck driver demographic trends are rapidly approaching an alarming “cliff” as too few younger workers are on hand to replace a driver population rapidly approaching retirement age. ATRI’s analysis of U.S. Census Bureau data found that the trucking industry is disproportionately dependent on employees 45 years of age or older, many of whom are expected to retire in the next 10 to 20 years, complicated by a simultaneous sharp decrease in the number of younger drivers, particularly those 35 and under. “There’s not a lot of time between where we are now and the cliff,” Rebecca Brewster, ATRI’s president and COO, told Fleet Owner. “This industry has relied on a loyal cohort to stay behind the wheel because we as an industry still haven’t figured out how to backfill the [driver] population with younger folks.” While this is not a new problem, Brewster argued that it is one rapidly reaching a tipping point of sorts as rising freight demand is colliding with trucking capacity limits. “Now however we have U.S. Census data to back this up,” she added. ATRI’s white paper, written by Jeffrey Short, a senior research associate with the group, noted that while the U.S. labor market has nearly recovered from the Great Recession, employment gaps still remain. Of the 155.9 million people in the U.S. civilian labor force, 146.9 million are employed and 8.9 million are unemployed – with 92.5 million additional persons not in the labor force, a figure that has grown by nearly 2 million people over the past year, according to ATRI’s analysis of Census data. Out of the total U.S. labor pool, approximately 7 million persons hold trucking-related jobs with 3.2 million employed as truck drivers. With freight volumes on the rise, however, American Trucking Associations (ATA) data indicates that the industry is suffering a shortage of between 30,000 and 35,000 drivers right now, which could grow to 240,000 drivers by 2022 when aligned with freight growth forecasts. “On average, trucking will need to recruit nearly 100,000 new drivers every year to keep up with demand for drivers, with nearly two-thirds of the need coming from industry growth and retirements,” noted Bob Costello, ATA’s chief economist. On top of that, the U.S. Bureau of Labor Statistics (BLS) estimates that employment of heavy and tractor-trailer truck drivers is projected to grow 21% from 2010 to 2020 – faster than the average of all other occupations. "The average age of our current driver workforce is 52 and we're noticing fewer and fewer younger individuals applying for jobs in recent years," noted Keith Tuttle, the founder of Motor Carrier Service, Inc. and a member of ATRI's research advisory committee, in a statement. "If the industry doesn't collectively figure out how to recruit younger drivers, we may not have anyone left to haul freight in the coming decade,” he stressed. “With more and more of the nation's freight being hauled by trucks now and in the future, this is a piece of the puzzle we have to solve." Short’s analysis indicates that perhaps the single biggest obstacle to enticing younger workers to become truck drivers is the federal requirement that interstate commercial driver’s license (CDL) holders be aged 21 or older. “The resulting three-year post-high school gap precludes many from considering a career in truck driving,” he wrote. “There are additional institutional limitations on how old you must be to participate in certain sectors of the industry as well. Examples include hazmat or long-haul trucking, where 25 years of age is a common insurance-based expectation.” Yet ATRI’s Brewster pointed out that other trends – particularly the rapid escalation of college costs and student loan debt – may help trucking companies start tackling that “gap” more effectively. “This is where we need to make a point, particularly as the idea of the vocational education [path] is revisited across the country,” she explained. “From that standpoint, the industry needs to get more ‘irons in the fire’ in the vocational area, especially in high schools. We need to show that driving a truck is a great career option for them.”
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New Acco range adds some contemporary touches to a classic design Australasian Transport News / December 10, 2014 Iveco has unveiled its new, modernised range of Acco trucks designed specifically for the local market. The new Accos come in 4x2, 6x4 and 8x4 configurations, and feature a number of practical and aesthetic improvements. "While Iveco engineers have introduced many new improvements in the latest release, certain aspects about the Acco – qualities that have worked year after year – remain unchanged. The model’s low tare weight is the most competitive in the market and cabin entry and egress is completed with minimum effort required – an important consideration for the driver that’s in and out of the cabin all day," Iveco product manager Joel Read says. The new Acco retains the basic cab shape of its classic 1972 predecessor, but has borrowed some newer design elements from other Iveco truck ranges. On a practical level, a number of exterior components have been improved such as the addition of side deflectors, bumper-encased indicators and a three-piece steel bumper. Unlike the rest of the range, the agitator variant of the Acco will also feature electronic stability control (ESC). "We’re very pleased to have begun introducing ESC to the Acco range. We identified the rollout would start with the 8x4 agitator specification and will evolve to other models in the future. Agitator owners can now rest assured that they have this important additional safety feature," Read adds. Iveco says that the agitator spec was given priority for this feature because of its higher centre of gravity. Power output remains mostly the same as previous models, with power options ranging between 280hp (209kW) and 340hp (254kW). Under the hood is an 8.9-litre, Euro 5 engine that uses selective catalytic reduction (SCR). Further, the Acco range uses a fully automatic, 6-speed Allison generation 5 transmission. Iveco says that a key advantage for the Acco range is designed and built locally, and that over 85 per cent of its componentry is from Australian sources. "The flexibility offered through local manufacturing has made the ACCO a favourite platform for body manufacturers to work with," Iveco national key accounts manager Lloyd Reeman says. "Over 78,000 Acco units have been produced at the Dandenong factory since the first model was released commercially (by International Harvester) in 1961." .
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Overdrive / December 10, 2014 Utility Trailer Manufacturing Co. announced the addition of trailer roll stability protection from Bendix Commercial Vehicle Systems as a standard base specification on its 3000R refrigerated trailer. The Bendix TABS-6 Advanced with Bendix Trailer Roll Stability Program (TRSP) system combines anti-lock braking with trailer sensors and is available in single-channel and optional multi-channel configurations. Utility says it is the first trailer manufacturer to include roll stability as standard on its refrigerated trailers. “Trailer roll stability systems can dramatically improve a fleet’s safety, and we believe that the technology is ready to begin integrating this specification as a standard and not as an optional feature,” said Craig Bennett, senior vice president of sales and marketing. “We will begin by adding this important safety component on our base model reefer trailers beginning with orders received in January 2015.” http://www.bendix.com/en/products/absstability/trailer/trailer_1.jsp http://www.bendixvrc.com/itemDisplay.asp?documentID=6300
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Transport Topics / December 9, 2014 Diesel will average $3.07 a gallon next year, the Department of Energy said Dec. 9, lowering its most recent forecast by 31 cents. Trucking’s main fuel, which has averaged $3.86 per gallon this year and is now about $3.53, will slide under $3 next spring, DOE said in its monthly short-term energy outlook. The price will bottom out at $2.97 in April and May before climbing slowly to $3.17 by the end of 2015, the report said. The declines will be led by lower crude oil prices, the department said, cutting its forecast by $15 to an average $62.75 per barrel next year. DOE’s Energy Information Administration, which releases the outlook, said it “expects global oil inventories to continue to build over the next year, keeping downward pressure on oil prices.” Gasoline will drop even more precipitously, to an average $2.60 next year from its current national average $2.68, EIA said. Gasoline has averaged $3.45 this year and its pump price averaged below $3 in November for the first time in almost four years.
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Prime Mover Magazine / December 9, 2014 Iveco Trucks Australia has introduced an upgraded version of its Iveco Acco series range, which has undergone a number of enhancements. Chief among the improvements has been the introduction of Electronic Stability Control (ESC) to the 5.1 metre wheelbase 8x4 agitator variant. According to Iveco, the ESC is planned for a roll out across all models and that the initial adoption of the ESC system using Knorr-Bremse components was regarded as a priority due to the high centre of gravity of agitator applications. “There are many things to like about the new Acco range,” said Joel Read, Iveco Product Manager. “The development and testing phase has been extremely thorough and we are very confident that the latest range will take the Acco’s performance to a new level in terms of functionality, reliability and safety.” The range of available Cummins engines remained unchanged with 280HP, 320Hp and 340HP specifications available. Despite the same power ratings the engines have had calibration revisions to eliminate the occasional idle “hunting” that affected some earlier models following the introduction of the Euro 5 engines. There are a number of suspensions available – including the Hendrickson Haulmaax HMX460 rubber block suspension that delivers a number of advantages in suitable applications. Not only 45 kg lighter than others, it is rated at 46,000 lbs, which is 6,000 higher than alternatives. The Haulmaax suspension has been designed to reduce load transfer during braking and provides 17 inches of articulation. The cab exterior now comes with the three piece steel bumper from the Trakker off road trucks and headlights from the Stralis which are protected by steel mesh and feature a swing out design for easy maintenance. Inside the cab the steering wheel has been changed to one similar to the Iveco Eurocargo, which incorporates the same, stalk control and trim panels. Dual control models for the waste industry have also benefitted from upgrades to the mitre box that now uses a sealed roller bearing that replaced the previous needle bearing to provide better lubrication and lower friction. .
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Bloomberg / December 9, 2014 The U.S. government is trying to give truckers a break, doing away with a 62-year-old paperwork rule that was costing the industry as much as $1.7 billion annually. Truck drivers will no longer have to file daily reports after routine pre- and post-trip inspections if there aren’t safety defects or maintenance concerns, the U.S. Transportation Department said. A final regulation being issued today will take effect Dec. 18, ending a requirement implemented by the Interstate Commerce Commission during the Truman era in 1952. President Obama challenged federal agencies in a 2011 executive order to identify rules that are “outmoded, insufficient or excessively burdensome.” The reports on trucks without safety problems fit the target of red tape and waste, Transportation Secretary Anthony Foxx said in an interview. “This is one of the leading paperwork regulations in government right now,” Foxx said. “We have put this rule through the paces, and we’re satisfied there will be no reduction in safety.” About 95 percent of the current inspection reports indicate no safety concerns, according to the Transportation Department. Truck drivers spend about 46.7 million hours a year completing those reports, the department said. The time saved would be worth about $1.7 billion a year to the industry, according to the department. Free from filing the reports, drivers should be able to stay focused on their jobs and the safety of everyone else on the road, Scott Darling, acting chief of the Federal Motor Carrier Safety Administration, said in a statement. Data Recorders The American Trucking Associations, while supportive of the effort, questioned the estimated economic benefit. About 40 percent of the 600,000 to 800,000 electronic data recorders in use by the industry have the means to file driver reports electronically, the Arlington, Virginia-based trade group said. About 35 percent of the group’s members said they would continue filing reports even without a regulation, saying they help to maintain effective maintenance. Advocates for Highway and Auto Safety, a Washington-based watchdog group, urged the Transportation Department to continue to require the reports as a daily reminder to drivers to be on the lookout for potential maintenance problems. “We have to make sure, where there are rules that are burdensome and don’t add to the bottom line on safety, that we’re clear-eyed enough to be in a position to relieve those burdens,” Foxx said. Commercial drivers who operate passenger-carrying buses will still have to file the inspection reports in all cases, even if there’s no defect or maintenance issue.
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I’m glad to see this is becoming an industry-wide available feature. There’s a lot of fuel savings available here. Scania introduced it back in 2011 – Scania Active Prediction System. In countries where topographical data is lacking, Scania Ecocruise is available, adapting the cruising speed to the topography by sensing the load on the engine. Both systems are used in conjunction with Scania 8-, 12- and 14-speed Opticruise AMT transmissions. https://www.youtube.com/watch?v=L1nqKakM74w http://www.scania.com/images/Scania%20Active%20Prediction%20-%20Presentation_tcm40-287549.pdf http://www.scania.com/Images/P13303EN_Opticruise_tcm40-358169.pdf
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Fleet Owner / December 8, 2014 Detroit Diesel Corp. is making its Intelligent Powertrain Management (IPM) system standard on all Detroit DT12 automated manual transmissions paired with any heavy-duty Detroit engine, beginning in March 2015. IPM helps the powertrain operate as efficiently as possible, based on the truck’s momentum generated by the terrain. It integrates pre-loaded terrain maps and GPS into engine and transmission functions to know the route ahead, up to one mile. The main goal of IPM is to use the momentum of the truck most efficiently to reduce fuel consumption, Detroit said. It achieves this by preventing unnecessary shifts, predictively engine braking and fueling, shifting optimally, and precisely controlling eCoast events. IPM is automatically ‘on’ once the driver engages cruise control, so benefits of IPM are variable based on the percent of time the driver operates in cruise control, and the variably of the route traveled. Since Intelligent Powertrain Management uses the momentum of the truck to most efficiently move down the road, a route with varied topography (but no extreme change in elevations) provides the optimal opportunity for IPM to improve fuel economy, the company said. “Intelligent Powertrain Management technology employs many of the same behaviors that an experienced driver uses behind the wheel, but in many situations take actions that even the most experienced driver would be unable to employ such as engaging eCoast before cresting a hill. Ultimately actions like this will help all drivers achieve greater efficiency with less fatigue,” said Brad Williamson, manager, engine and component marketing for Daimler Trucks North America. “We want to give our customers the most advanced technologies available to lower to their ‘Real Cost of Ownership’, and IPM is a key part of that strategy.” For example, when approaching a grade, IPM will increase road speed to allow the vehicle to climb the hill with the fewest downshifts possible. IPM will also engage eCoast or stop fueling the engine before cresting a hill, using the truck’s momentum instead. When heading down a hill, IPM plans for this by automatically accelerating to increase the truck’s momentum, based on the approaching terrain. IPM will also keep eCoast engaged for longer periods of time with fewer interruptions, further benefiting fuel economy. .
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Heavy Duty Trucking / December 8, 2014 With Congress up against a December 11 deadline to pass an appropriations bill, trucking interests and safety groups are battling over an amendment that would suspend the current 34-hour restart provision of the hours of service rule. American Trucking Associations and its affiliate, the Truckload Carriers Association, are challenging assertions of the safety groups that oppose the amendment. And Transportation Secretary Anthony Foxx registered his “strong objection” to the amendment. At issue is the provision in the 2013 hours of service rule that requires drivers to take two periods off between 1 a.m. and 5 a.m. during their 34-hour restart, and limits use of the restart to once a week. ATA contends that the provision reduces productivity for some carriers and may increase risk by putting more trucks on the road during Monday morning rush hour. The Federal Motor Carrier Safety Administration says the provision will improve safety because nighttime sleep is more restorative than daytime sleep. Sen. Susan Collins, R-Maine, has championed ATA’s effort to suspend the provision and revert to the pre-2013 restart, which does not contain those restrictions. Under her amendment to the appropriations bill, FMCSA would study the restart by comparing the work schedules and fatigue of drivers who operate under the old restart and the new one. The study also would compare five months of work schedules and safety critical events, such as crashes and near-crashes, for fleets of all sizes and types of operations. As decision time approaches this week, safety groups have been pressing Congress to reject the amendment. In a letter to congressional leaders, Advocates for Highway Safety and other groups described the suspension as an “assault” on truck safety that would significantly increase working hours for truck drivers. “While the proposed change to the HOS rule has been portrayed as a ‘minor tweak’ to the rule, it is, in fact, a major change,” said Jacqueline Gillan, president of Advocates and numerous other signatories to the letter. “Working and driving hours will increase from 70 to 84 hours.” ATA responded with a letter to the same leaders saying that the safety groups are attempting to mislead Congress. “This language does not, as critics suggest, eliminate use of this rest provision,” said ATA President and CEO Bill Graves. “Instead, it would suspend unwarranted restrictions on the use of the provision while FMCSA conducts a mandated study of the net safety impacts of them.” Over the weekend, the Truckload Carriers Association joined the fray with a call for a grassroots effort to support the amendment. Meanwhile, DOT Secretary Foxx registered his strong objections to the amendment in a letter to Sen. Barbara Mikulski, D-Md., chair of the Appropriations Committee. “The provision at issue is a central element of a comprehensive rule that ensures that truck drivers have adequate rest,” he said. “The evidence clearly shows that truck drivers are better rested and more alert after two night of sleep than one night, and that unending 80-hour work weeks lead to driver fatigue and compromise highway safety,” he said. FMCSA wants to keep the provision in place while it conducts the study that Collins called for in her amendment. More details about the appropriations bill will come clear this week as the Thursday deadline nears.
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