Toll discount bill passes House, but not a done deal

A bill designed to give local commuters a toll discount while making truckers and out-of-towners foot the bill has passed the U.S. House. While the intent of the bill is noble in an ongoing battle over excessive tolls, highway user groups say it ignores the negative consequences the action could have on interstate commerce, tourism and the economy.

HR897, which was introduced more than a year ago by U.S. Rep. Michael Grimm, R-NY, aimed to give Staten Island residents a break from excessive bridge tolls. The bill passed by voice vote in the House on Wednesday, Aug. 1.

Greg Cohen, president of the American Highway Users Alliance, says the idea of cutting people a break on tolls is one thing, but the bill has far broader consequences in the way it is written.

“The language of the bill is drafted so broadly as to give the green light to any state or private tolling entity that wants to create separate tiers of pricing based on the residency of the drivers,” Cohen told Land Line.

I like the general idea of the bill. There is a toll road that makes my morning commute much more pleasant, but I rarely take it because I'd end up spending over $500 a year in tolls! I think locals should get a break. Tourists plan on spending money and won’t mind the one-time charge. But it can definitely take a toll on daily commuters, no pun intended. The part I disagree with is that truck drivers will also face higher tolls. Although they may not be daily commuters, they are just trying to do their job and with the rises cost of transportation, they have enough to worry about! What do you think?

Read the full story here.

ATA reports seasonally adjusted tonnage is up 1.2 percent in June

Even with sequential growth occurring from May to June, overall trucking growth remains at a standstill to a large degree, based on data released today by the American Trucking Associations (ATA).

Seasonally-adjusted (SA) truck tonnage in June was up 1.2 percent on the heels of a 1.0 percent (revised from an original reading of -1.7 percent) decline in May. ATA officials said that June’s 1.2 percent SA bump represents the largest month-to-month increase in 2012 year-to-date. But even with the gain it pointed out that that the SA contracted a cumulative 1.2 percent in April and May. June’s SA reading was 119.0 (2000=100), which was ahead of May’s 117.5. The SA is 3.2 percent above June 2011, marking the smallest annual SA gain since May 2012. Through the first six months of the year SA tonnage is up 3.7 percent.

The ATA’s not seasonally-adjusted (NSA) index, which represents the change in tonnage actually hauled by fleets before any seasonal adjustment, fell 0.9 percent from May to come in at 123.0 in June. This was up 0.7 percent on an annual basis.

As defined by the ATA, the not seasonally-adjusted index is assembled by adding up all the monthly tonnage data reported by the survey respondents (ATA member carriers) for the latest two months. Then a monthly percent change is calculated and then applied to the index number for the first month.

“June’s increase was a pleasant surprise, but the lower year-over-year gain fits with an economy that has slowed,” ATA Chief Economist Bob Costello said in a statement. “Manufacturing output was strong in June, which helped tonnage levels.”

Read the full article here.
Story by Jeff Berman

Fourth Mexican carrier admitted to cross-border program

The Federal Motor Carrier Safety Administration has accepted a fourth carrier to its cross-border trucking pilot program and responded to comments over the most recent round of Mexican carriers applying for authority.

Transportes Del Valle De Guadalupe of Baja California will operate one truck and one driver beyond the commercial border zone, as have the other three program participants.

The FMCSA published a May 11 Federal Register Notice and Request for Comment on Transportes’ Pre-Authorization Safety Audit, required of Mexican carriers applying to operate beyond the border zone. The notice also provided the PASAs of Higienicos Y Desechables Del Bajio and Servicios Refrigerados Internacionales.

Read more here.

Finally, good new for gas prices!

Diesel Drops to Lowest Price of 2012

Diesel and gasoline prices fell for the ninth straight week, bringing diesel prices to their lowest so far for 2012 and gasoline prices to their lowest since February. Oil prices fell again this week due to skepticism about Europe's debt crisis.

Diesel prices dropped 6.5 cents this week to $3.781 per gallon, according to a weekly report from the U.S. Department of Energy. California saw the biggest regional decrease, with prices dropping 12 cents to $3.902. Diesel prices are down more than 17 cents from a year ago.

U.S. gasoline prices also fell this week, by an average of 4 cents to $3.572. The West Coast had the biggest decrease with a drop of 9.2 cents to $4.093. Currently, the Gulf Coast is the region with the lowest gasoline prices, an average of $3.311.

Despite a boost for Spain's economy in the form of a $125 billion bailout loan for its banking system, analysts are still skeptical about the debt crisis in Europe. That skepticism caused oil prices to fall this week. Benchmark oil fell $1.40 to $82.70 per barrel in New York. Brent crude settled at 81 cents to $98.66 per barrel in London.

Spain is the fourth European country to request financial help since the start of the debt crisis, after Greece, Portugal and Ireland.

Story from truckinginfo.com

Fuel Prices Keep Falling, Greek Economy Affects Oil Prices

Diesel and gasoline prices dropped for the fifth straight week, but oil prices continue to fall due to concerns over Europe, particularly Greece's economy.

Diesel fuel prices dropped by an average of 5.3 cents to $4.004 a gallon, according the the Energy Information Administration's weekly fuel upstate. This is the lowest the average price of diesel has been since late February. Prices are down by an average of 5.7 cents from a year ago.

Gasoline prices dropped by 3.6 cents this week to $3.754 a gallon. That's more than 20 cents lower than gasoline prices a year ago. Prices in the West Coast, the only region to see an increase, went up 12 cents.

Light, sweet crude oil for June delivery on the New York Mercantile Exchange settled $1.35 lower, at $94.78 a barrel, a new low for 2012. The decrease is due to mounting concerns about Greece's economy and rising global oil supplies.

Traders said oil prices are heading for a critical juncture around $92.50 a barrel. This could clear the way for prices as low as $85 a barrel, a level not touched since last October.

Story from truckinginfo.com. To see the EIA's complete weekly fuel update, click here.

More signs the economy is improving

According to a new report by The Boston Consulting Group (BCG), improved U.S. competitiveness and rising costs in China will put the United States in a strong position by around 2015 to eventually add 2 million to 3 million jobs and an estimated $100bn in annual output in a range of industries. The study explained how 15 to 20 percent annual increases in Chinese wages and other factors were rapidly eroding China's manufacturing cost advantage over the U.S.

Seeing this study gives me more confidence for the U.S. and our future. The trend is still in its early stages, so it’s not exactly a crystal ball seeing the future, but nonetheless intriguing. It predicts that production of 10 to 30 percent of U.S. imports from China, which in 2010 accounted for nearly $200bn worth of products, could move to the U.S.

Definitely worth the read - https://www.bcgperspectives.com/content/articles/manufacturing_supply_chain_management_us_manufacturing_nears_the_tipping_point/

The economy continues to recover

Given that transportation more than 10% of the national GDP, it’s no surprise that as we continue to see trucking rise, the economy is rising with it. Manufactured goods as well as petroleum and coal are on the rise. Unfortunately, nothing so far this year has been consistent. January new orders for manufactured durable goods declined 3.7%, and new orders for nondurable goods rose 1.3%. Flatter rates indicate a sluggish economy and adequate capacity. Fuel costs have risen, but total spending does not seem to reflect this increase, and some think this has to do with fuel rising. Some experts conclude that carriers have eased up on base rates to compensate for higher fuel charges.

So although transportation and the economy are on their steady path to recovery, an immediate turnaround is unlikely. Unemployment is dropping but consumers are still spending their biggest share of their paychecks on necessities. We can only hope that transportation will continue to rise despite the cost of fuel and will continue to help grow the over economy.

Read more here: http://truckinginfo.com/news/news-detail.asp?news_id=76287